Rep. Robert Rita
Filed: 5/25/2018
 
 


 




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1
AMENDMENT TO SENATE BILL 7




2 AMENDMENT NO. ______. Amend Senate Bill 7 by replacing 
3everything after the enacting clause with the following:


4
"Article 1.  Chicago Casino Development Authority Act


5 Section 1-1. Short title. This Article may be cited as the 
6Chicago Casino Development Authority Act. References in this 
7Article 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 
10of Chicago and the State of Illinois by assisting economic 
11development and promoting tourism and by increasing the amount 
12of revenues available to the City and the State to assist and 
13support the City's pension obligation in accordance with Public 
14Act 99-506.

15 (b) While authorization of casino gambling in Chicago will 
 
 
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1enhance investment, development, and tourism in Illinois, it is 
2recognized that it will do so successfully only if public 
3confidence and trust in the credibility and integrity of the 
4gambling operations and the regulatory process is maintained. 
5Therefore, the provisions of this Act are designed to allow the 
6Illinois Gaming Board to strictly regulate the facilities, 
7persons, associations, and practices related to gambling 
8operations pursuant to the police powers of the State, 
9including comprehensive law enforcement supervision. 
10Consistent with the Gaming Board's authority, the Gaming Board 
11alone shall regulate any Chicago casino, just as it now 
12regulates every other casino in Illinois.

13 Section 1-5. Definitions.
As used in this Act: 
14 "Authority" means the Chicago Casino Development Authority 
15created by this
Act.

16 "Casino" means one temporary land-based or water-based 
17facility and one permanent land-based or water-based facility 
18and airport gaming locations pursuant to Section 1-67 of this 
19Act at which lawful gambling is authorized
and licensed as 
20provided in the Illinois Gambling Act.

21 "Casino Board" means the board appointed pursuant to this 
22Act to govern and control
the Authority.
23 "Casino management contract" means a legally binding

24agreement between the Authority and a casino operator licensee 
25to operate or manage a casino.
 
 
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1 "Casino operator licensee" means any person or entity 
2selected by the Authority and approved and licensed by the 
3Gaming Board to manage and operate a casino within the City of 
4Chicago pursuant to a casino management contract.
5 "City" means the City of Chicago.

6 "Entity" means a corporation, joint venture, partnership, 
7limited liability company, trust, or unincorporated 
8association.
9 "Executive director" means the person appointed by the 
10Casino Board to oversee the
daily operations of the Authority.

11 "Gaming Board" means the Illinois Gaming Board created by 
12the Illinois Gambling Act.

13 "Mayor" means the Mayor of the City.


14 Section 1-12. Creation of the Authority. There is hereby 
15created a political subdivision, unit of local government with 
16only the powers authorized by law, body politic, and municipal 
17corporation, by the name and style of the Chicago Casino 
18Development Authority.

19 Section 1-13. Duties of the Authority. It shall be the duty 
20of the Authority, as an owners licensee under the Illinois 
21Gambling Act, to promote and maintain a casino in the City. The 
22Authority shall own, acquire, construct, lease, equip, and 
23maintain grounds, buildings, and facilities for that purpose. 
24However, the Authority shall contract with a casino operator 
 
 
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1licensee to manage and operate the casino and in no event shall 
2the Authority or City manage or operate the casino. The 
3Authority may contract pursuant to the procedures set forth in 
4Section 1-115 with other third parties in order to fulfill its 
5purpose. The Authority is responsible for the payment of any 
6fees required of a casino operator under subsection (a) of 
7Section 7.9 of the Illinois Gambling Act if the casino operator 
8licensee is late in paying any such fees. The Authority is 
9granted all rights and powers necessary to perform such duties. 
10Subject to the provisions of this Act, the Authority and casino 
11operator licensee are subject to the Illinois Gambling Act and 
12all of the rules of the Gaming Board, which shall be applied to 
13the Authority and the casino operator licensee in a manner 
14consistent with that of other owners licensees under the 
15Illinois Gambling Act. Nothing in this Act shall confer 
16regulatory authority on the Chicago Casino Development 
17Authority. The Illinois Gaming Board shall have exclusive 
18regulatory authority over all gambling operations governed by 
19this Act.

20 Section 1-15. Casino Board. 
21 (a) The governing and administrative powers of the 
22Authority shall be vested
in a body known as the Chicago Casino 
23Development Board. The Casino Board shall
consist of 5 members 
24appointed by the Mayor. One of these
members shall be 
25designated
by the Mayor to serve as chairperson.
All of the 
 
 
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1members
appointed by the Mayor shall be residents of the City.
2 Each Casino Board appointee shall be subject to a 
3preliminary background investigation completed by the Gaming 
4Board within 30 days after the appointee's submission of his or 
5her application to the Gaming Board. If the Gaming Board 
6determines that there is a substantial likelihood that it will 
7not find the appointee to be suitable to serve on the Casino 
8Board (applying the same standards for suitability to the

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


7 (b) Casino Board members shall receive $300 for each day 
8the Authority meets and
shall be entitled to reimbursement of 
9reasonable expenses incurred in the
performance of their 
10official duties. A Casino Board member who serves in the office

11of secretary-treasurer may also receive compensation for 
12services provided
as that officer.

13 Section 1-20. Terms of appointments; resignation and 
14removal. 
15 (a) The Mayor shall appoint 2 members of the Casino Board 
16for an initial term expiring July 1 of the year following final 
17approval by the Gaming Board, 2 members for an initial term 
18expiring July 1 three years following final approval by the 
19Gaming Board, and one member for an initial term expiring July 
201 five years following final approval by the Gaming Board.

21 (b) All successors shall be appointed by the Mayor to hold 
22office for a term of 5 years from the first day of July of the 
23year in which they are appointed, except in the case of an 
24appointment to fill a vacancy. Each member, including the 
25chairperson, shall hold office until the expiration of his or 
 
 
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1her term and until his or her successor is appointed and 
2qualified. Nothing shall preclude a member from serving 
3consecutive terms. Any member may resign from office, to take 
4effect when a successor has been appointed and qualified. A 
5vacancy in office shall occur in the case of a member's death 
6or indictment, conviction, or plea of guilty to a felony. A 
7vacancy shall be filled for the unexpired term by the Mayor 
8subject to the approval of the Gaming Board as provided in this 
9Section.

10 (c) Members of the Casino Board shall serve at the pleasure 
11of the Mayor. The Mayor or the Gaming Board may remove any 
12member of the Casino Board upon a finding of incompetence, 
13neglect of duty, or misfeasance or malfeasance in office or for 
14a violation of this Act. The Gaming Board may remove any member 
15of the Casino Board for any violation of the Illinois Gambling 
16Act or the rules and regulations of the Gaming Board.

17 (d) No member of the Casino Board shall engage in any 
18political activity. For the purpose of this Section, "political 
19activity" means any activity in support of or in connection 
20with any campaign for federal, State, or local elective office 
21or any political organization, but does not include activities 
22(i) relating to the support or opposition of any executive, 
23legislative, or administrative action, as those terms are 
24defined in Section 2 of the Lobbyist Registration Act, (ii) 
25relating to collective bargaining, or (iii) that are otherwise 
26in furtherance of the person's official duties or governmental 
 
 
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1and public service functions.

2 Section 1-25. Organization of Casino Board; meetings. 
3After appointment by the Mayor, the Casino Board shall organize 
4for the transaction of business, provided that the Casino Board 
5shall not take any formal action until after the Gaming Board 
6has completed its preliminary background investigation of at 
7least a quorum of the Casino Board as provided in subsection 
8(a) of Section 1-15. The Casino Board shall prescribe the time 
9and place for meetings, the manner in which special meetings 
10may be called, and the notice that must be given to members. 
11All actions and meetings of the Casino Board shall be subject 
12to the provisions of the Open Meetings Act. Three members of 
13the Casino Board shall constitute a quorum. All substantive 
14action of the Casino Board shall be by resolution with an 
15affirmative vote of a majority of the members.

16 Section 1-30. Executive director; officers. 
17 (a) The Casino Board shall appoint
an executive director, 
18who shall be the chief executive officer of the
Authority.
19 The executive director shall be subject to a preliminary 
20background investigation to be completed by the Gaming Board 
21within 30 days after the executive director's submission of his 
22or her application to the Gaming Board. If the Gaming Board 
23determines that there is a substantial likelihood that it will 
24not find the executive director to be suitable to serve in that 
 
 
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1position (applying the same standards for suitability as the

2Gaming Board would apply to an owners licensee key person under 
3the Gaming Board's adopted rules), then the Gaming Board shall 
4provide a written notice of such determination to the appointee 
5and the Corporation Counsel of the City. The Casino Board may 
6then appoint a new executive director. If no such notice is 
7delivered, then commencing on the 31st day following the date 
8of the executive director's submission of his or her 
9application to the Gaming Board, the executive director shall 
10commence all duties as the acting executive director of the 
11Authority.
12 The executive director shall be subject to a full 
13background investigation and final approval by the Gaming Board 
14prior to the opening of the casino. The Gaming Board shall 
15complete its full background investigation of the executive 
16director within 3 months after the date of the executive 
17director's submission of his or her application to the Gaming 
18Board. If the Gaming Board does not complete its background 
19investigation within the 3-month period, then the Gaming Board 
20shall give a written explanation to the appointee, as well as 
21the Mayor, the Governor, the President of the Senate, and the 
22Speaker of the House of Representatives, as to why it has not 
23reached a final determination and set forth a reasonable time 
24when such determination shall be made.

25 (b) The Casino Board shall fix the compensation of the 
26executive director.
Subject to the general control of the 
 
 
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1Casino Board, the executive director shall be
responsible for 
2the management of the business, properties, and
employees of 
3the Authority. The executive director shall direct the

4enforcement of all resolutions, rules, and regulations of the 
5Casino Board, and shall
perform such other duties as may be 
6prescribed from
time to time by the Casino Board. All employees 
7and independent contractors,
consultants, engineers, 
8architects, accountants, attorneys, financial experts,

9construction experts and personnel, superintendents, managers, 
10and other
personnel appointed or employed pursuant to this Act 
11shall
report to the executive director. In addition to any 
12other duties set forth in
this Act, the executive director 
13shall do or shall delegate to an employee or agent of the 
14Authority to do all of the following:


15  (1) Direct and supervise the administrative affairs 
16 and activities of the
Authority in accordance with its 
17 rules, regulations, and policies.


18  (2) Attend meetings of the Casino Board.


19  (3) Keep minutes of all proceedings of the Casino 
20 Board.


21  (4) Approve all accounts for salaries, per diem 
22 payments, and allowable
expenses of the Casino Board and 
23 its employees and consultants.


24  (5) Report and make recommendations to the Casino Board 
25 concerning the terms and
conditions of any casino 
26 management contract.


 
 
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1  (6) Perform any other duty that the Casino Board 
2 requires for carrying out the
provisions of this Act.


3  (7) Devote his or her full time to the duties of the 
4 office and not hold
any other office or employment.

5 (c) The Casino Board may select a secretary-treasurer and 
6other officers to hold office at the pleasure of the Casino 
7Board. The Casino Board
shall fix the duties of such officers.

8 Section 1-31. General rights and powers of the Authority. 
9 (a) In addition to the duties and powers set forth in this 
10Act, the Authority shall have the following rights and powers:
11  (1) Adopt and alter an official seal.
12  (2) Establish and change its fiscal year.
13  (3) Sue and be sued, plead and be impleaded, all in its 
14 own name, and agree to binding arbitration of any dispute 
15 to which it is a party. 
16  (4) Adopt, amend, and repeal bylaws, rules, and 
17 regulations consistent with the furtherance of the powers 
18 and duties provided for.
19  (5) Maintain its principal office within the City and 
20 such other offices as the Casino Board may designate.
21  (6) Select locations in the City for a temporary and a 
22 permanent casino.
23  (7) Subject to the bidding procedures of Section 1-115 
24 of this Act, retain or employ, either as regular employees 
25 or independent contractors, consultants, engineers, 
 
 
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1 architects, accountants, attorneys, financial experts, 
2 construction experts and personnel, superintendents, 
3 managers and other professional personnel, and such other 
4 personnel as may be necessary in the judgment of the Casino 
5 Board, and fix their compensation; however, employees of 
6 the Authority shall be hired pursuant to and in accordance 
7 with the rules and policies the Authority may adopt.
8  (8) Pursuant to Section 1-115 of this Act, own, 
9 acquire, construct, equip, lease, operate, manage, and 
10 maintain grounds, buildings, and facilities to carry out 
11 its corporate purposes and duties.
12  (9) Pursuant to Section 1-115, and subject to the 
13 oversight, review, and approval of the Gaming Board, enter 
14 into, revoke, and modify contracts in accordance with the 
15 rules of the Gaming Board as consistently applied to all 
16 owners licensees under the Illinois Gambling Act, provided 
17 that the Authority may enter into contracts for the design, 
18 construction, and outfitting of a temporary casino prior to 
19 the Gaming Board's final approval of the Authority's 
20 executive director and the members of the Casino Board and 
21 prior to the Gaming Board's issuance of the Authority's 
22 owners license. Provided further that the entities 
23 selected by the Authority for the design, construction,
and 
24 outfitting of the temporary casino shall be subject to a 
25 preliminary background investigation to
be completed by 
26 the Gaming Board within 30 days after the Gaming Board is 
 
 
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1 provided the
identities of the entities. If the Gaming 
2 Board determines that there is a substantial likelihood

3 that the entities are not suitable or acceptable to perform 
4 their respective functions, then the
Gaming Board shall 
5 immediately provide notice of that determination to the 
6 Authority. If no such
notice is delivered, then, commencing 
7 on the 31st day following the date on which the information

8 identifying such entities is provided to the Gaming Board, 
9 such entities shall be permitted to
commence the services 
10 contemplated for the design, construction, and outfitting 
11 of the temporary
casino. In no event, however, shall the 
12 Authority open a casino until after the Gaming Board has 
13 finally approved the Authority's executive director and 
14 the members of the Casino Board and the Gaming Board has 
15 issued the Authority's owners license and the casino 
16 operator's casino operator license.
17  (10) Enter into a casino management contract subject to 
18 the provisions of Section 1-45 of this Act.
19  (11) Negotiate and enter into intergovernmental 
20 agreements with the State and its agencies, the City, and 
21 other units of local government, in furtherance of the 
22 powers and duties of the Casino Board. 
23  (12) Receive and disburse funds for its own corporate 
24 purposes or as otherwise specified in this Act.
25  (13) Borrow money from any source, public or private, 
26 for any corporate purpose, including, without limitation, 
 
 
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1 working capital for its operations, reserve funds, or 
2 payment of interest, and to mortgage, pledge, or otherwise 
3 encumber the property or funds of the Authority and to 
4 contract with or engage the services of any person in 
5 connection with any financing, including financial 
6 institutions, issuers of letters of credit, or insurers and 
7 enter into reimbursement agreements with this person or 
8 entity which may be secured as if money were borrowed from 
9 the person or entity.
10  (14) Issue bonds as provided for under this Act.
11  (15) Receive and accept from any source, private or 
12 public, contributions, gifts, or grants of money or 
13 property to the Authority.
14  (16) Provide for the insurance of any property, 
15 operations, officers, members, agents, or employees of the 
16 Authority against any risk or hazard, to self-insure or 
17 participate in joint self-insurance pools or entities to 
18 insure against such risk or hazard, and to provide for the 
19 indemnification of its officers, members, employees, 
20 contractors, or agents against any and all risks.
21  (17) Exercise all the corporate powers granted 
22 Illinois corporations under the Business Corporation Act 
23 of 1983, except to the extent that powers are inconsistent 
24 with those of a body politic and municipal corporation.
25  (18) Do all things necessary or convenient to carry out 
26 the powers granted by this Act.
 
 
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1 (b) The Casino Board shall comply with all applicable legal 
2requirements imposed on other owners licensees to conduct all 
3background investigations required under the Illinois Gambling 
4Act and the rules of the Gaming Board. This requirement shall 
5also extend to senior legal, financial, and administrative 
6staff of the Authority.

7 Section 1-32. Ethical conduct.
8 (a) Casino Board members and employees of the Authority 
9must carry out their duties and responsibilities in such a 
10manner as to promote and preserve public trust and confidence 
11in the integrity and conduct of gaming.
12 (b) Except as may be required in the conduct of official 
13duties, Casino Board members and employees of the Authority 
14shall not engage in gambling on any riverboat, in any casino, 
15or in an organization gaming facility licensed by the Illinois 
16Gaming Board or engage in legalized gambling in any 
17establishment identified by Gaming Board action that, in the 
18judgment of the Gaming Board, could represent a potential for a 
19conflict of interest. 
20 (c) A Casino Board member or employee of the Authority 
21shall not use or attempt to use his or her official position to 
22secure or attempt to secure any privilege, advantage, favor, or 
23influence for himself or herself or others. 
24 (d) Casino Board members and employees of the Authority 
25shall not hold or pursue employment, office, position, 
 
 
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1business, or occupation that may conflict with his or her 
2official duties. Employees may engage in other gainful 
3employment so long as that employment does not interfere or 
4conflict with their duties. Such employment must be disclosed 
5to the executive director and approved by the Casino Board. 
6 (e) Casino Board members, employees of the Authority, and 
7elected officials and employees of the City may not engage in 
8employment, communications, or any activity identified by the 
9Casino Board or Gaming Board that, in the judgment of either 
10entity, could represent the potential for or the appearance of 
11a conflict of interest. 
12 (f) Casino Board members, employees of the Authority, and 
13elected officials and employees of the City may not have a 
14financial interest, directly or indirectly, in his or her own 
15name or in the name of any other person, partnership, 
16association, trust, corporation, or other entity in any 
17contract or subcontract for the performance of any work for the 
18Authority. This prohibition shall extend to the holding or 
19acquisition of an interest in any entity identified by the 
20Casino Board or the Gaming Board that, in the judgment of 
21either entity, could represent the potential for or the 
22appearance of a financial interest. The holding or acquisition 
23of an interest in such entities through an indirect means, such 
24as through a mutual fund, shall not be prohibited, except that 
25the Gaming Board may identify specific investments or funds 
26that, in its judgment, are so influenced by gaming holdings as 
 
 
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1to represent the potential for or the appearance of a conflict 
2of interest. 
3 (g) Casino Board members, employees of the Authority, and 
4elected officials and employees of the City may not accept any 
5gift, gratuity, service, compensation, travel, lodging, or 
6thing of value, with the exception of unsolicited items of an 
7incidental nature, from any person, corporation, or entity 
8doing business with the Authority. 
9 (h) No Casino Board member, employee of the Authority, or 
10elected official or employee of the City may, during employment 
11or within a period of 2 years immediately after termination of 
12employment, knowingly accept employment or receive 
13compensation or fees for services from a person or entity, or 
14its parent or affiliate, that has engaged in business with the 
15Authority that resulted in contracts with an aggregate value of 
16at least $25,000 or if that Casino Board member or employee has 
17made a decision that directly applied to the person or entity, 
18or its parent or affiliate. 
19 (i) A spouse, child, or parent of a Casino Board member, 
20employee of the Authority, or elected official or employee of 
21the City may not have a financial interest, directly or 
22indirectly, in his or her own name or in the name of any other 
23person, partnership, association, trust, corporation, or other 
24entity in any contract or subcontract for the performance of 
25any work for the Authority. This prohibition shall extend to 
26the holding or acquisition of an interest in any entity 
 
 
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1identified by the Casino Board or Gaming Board that, in the 
2judgment of either entity, could represent the potential for or 
3the appearance of a conflict of interest. The holding or 
4acquisition of an interest in such entities through an indirect 
5means, such as through a mutual fund, shall not be prohibited, 
6except that the Gaming Board may identify specific investments 
7or funds that, in its judgment, are so influenced by gaming 
8holdings as to represent the potential for or the appearance of 
9a conflict of interest. 
10 (j) A spouse, child, or parent of a Casino Board member, 
11employee of the Authority, or elected official or employee of 
12the City may not accept any gift, gratuity, service, 
13compensation, travel, lodging, or thing of value, with the 
14exception of unsolicited items of an incidental nature, from 
15any person, corporation, or entity doing business with the 
16Authority. 
17 (k) A spouse, child, or parent of a Casino Board member, 
18employee of the Authority, or elected official or employee of 
19the City may not, while the person is a Board member or 
20employee of the spouse or within a period of 2 years 
21immediately after termination of employment, knowingly accept 
22employment or receive compensation or fees for services from a 
23person or entity, or its parent or affiliate, that has engaged 
24in business with the Authority that resulted in contracts with 
25an aggregate value of at least $25,000 or if that Casino Board 
26member, employee, or elected official or employee of the City 
 
 
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1has made a decision that directly applied to the person or 
2entity, or its parent or affiliate. 
3 (l) No Casino Board member, employee of the Authority, or 
4elected official or employee of the City may attempt, in any 
5way, to influence any person or entity doing business with the 
6Authority or any officer, agent, or employee thereof to hire or 
7contract with any person or entity for any compensated work. 
8 (m) No Casino Board member, employee of the Authority, or 
9elected official or employee of the City shall use or attempt 
10to use his or her official position to secure, or attempt to 
11secure, any privilege, advantage, favor, or influence for 
12himself or herself or others. No Casino Board member, employee 
13of the Authority, or elected official or employee of the City 
14shall, within one year immediately preceding appointment by the 
15Mayor or employment, have been employed or received 
16compensation or fees for services from a person or entity, or 
17its parent or affiliate, that has engaged in business with the 
18Casino Board, a licensee under this Act, or a licensee under 
19the Illinois Gambling Act.
20 (n) Any communication between an elected official of the 
21City and any applicant for or party to a casino management 
22contract with the Authority, or an officer, director, or 
23employee thereof, concerning any matter relating in any way to 
24gaming or the Authority shall be disclosed to the Casino Board 
25and the Gaming Board. Such disclosure shall be in writing by 
26the official within 30 days after the communication and shall 
 
 
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1be filed with the Casino Board and the Gaming Board. Disclosure 
2must consist of the date of the communication, the identity and 
3job title of the person with whom the communication was made, a 
4brief summary of the communication, the action requested or 
5recommended, all responses made, the identity and job title of 
6the person making the response, and any other pertinent 
7information. In addition, if the communication is written or 
8digital, then the entire communication shall be disclosed.
9 Public disclosure of the written summary provided to the 
10Casino Board and the Gaming Board shall be subject to the 
11exemptions provided under Section 7 of the Freedom of 
12Information Act. 
13 This subsection (n) shall not apply to communications 
14regarding traffic, law enforcement, security, environmental 
15issues, City services, transportation, or other routine 
16matters concerning the ordinary operations of the casino. 
17 (o) For purposes of this Section:
18 "Ordinary operations" means operations relating to the 
19casino facility other than the conduct of gambling activities.
20 "Routine matters" includes the application for, issuance, 
21renewal, and other processes associated with City permits and 
22licenses.
23 "Employee of the City" means only those employees of the 
24City who provide services to the Authority or otherwise 
25influence the decisions of the Authority or the Casino Board.
26 (p) Any Casino Board member or employee of the Authority 
 
 
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1who violates any provision of this Section is guilty of a Class 
24 felony.


3 Section 1-45. Casino management contracts. 

4 (a) The Casino Board shall enter into a casino management 
5contract with a casino operator subject to a background 
6investigation and approval by the Gaming Board and payment by 
7the proposed casino operator of a fee of $50,000,000, which 
8shall be deposited into the Gaming Facilities Fee Revenue Fund. 
9The Gaming Board shall complete its background investigation 
10and approval of the casino operator within 6 months after the 
11date that the proposed casino operator submits its application 
12to the Gaming Board. If the Gaming Board does not complete its 
13background investigation and approval within the 6-month 
14period, then the Gaming Board shall give a written explanation 
15to the proposed casino operator and the chief legal officer of 
16the Authority as to why it has not reached a final 
17determination and when it reasonably expects to make a final 
18determination. Validity of the casino management contract is 
19contingent upon the issuance of a casino operator license. If 
20the Gaming Board grants a casino operator license, the Casino 
21Board shall transmit a copy of the executed casino management 
22contract to the Gaming Board.
23 (b) After (1) the Authority has been issued an owners 
24license, (2) the Gaming Board has issued a casino operator 
25license, and (3) the Gaming Board has approved the members of 
 
 
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1the Casino Board, the Authority may conduct gaming operations 
2at a temporary facility, subject to the adopted rules of the 
3Gaming Board, for no longer than 24 months after gaming 
4operations begin. The Gaming Board may, after holding a public 
5hearing, grant an extension so long as a permanent facility is 
6not operational and the Authority is working in good faith to 
7complete the permanent facility. The Gaming Board may grant 
8additional extensions following further public hearings. Each 
9extension may be for a period of no longer than 6 months.

10 Section 1-47. Freedom of Information Act. The Authority 
11shall be a public body as defined in the Freedom of Information 
12Act and shall be subject to the provisions of the Freedom of 
13Information Act.

14 Section 1-50. Transfer of funds.  The revenues received by 
15the Authority (other than amounts required to be paid pursuant 
16to the Illinois Gambling Act and amounts required to pay the

17operating expenses of the Authority, to pay amounts due the 
18casino operator licensee pursuant to a casino management 
19contract, to repay any borrowing of the Authority
made pursuant 
20to Section 1-31, to pay debt service on any bonds issued under

21Section
1-75, and to pay any expenses in connection with the 
22issuance of such bonds
pursuant to Section 1-75 or derivative 
23products pursuant to Section 1-85) shall
be transferred
to the

24City by the Authority. Moneys transferred to the City pursuant 
 
 
10000SB0007ham003- 23 -LRB100 06307 SMS 40923 a


1to this Section shall be expended or obligated by the City for 
2pension payments in accordance with Public Act 99-506.

3 Section 1-60. Auditor General. 
4 (a) Prior to the issuance of bonds under this Act, the 
5Authority shall submit to the Auditor General a certification 
6that:
7  (1) it is legally authorized to issue bonds;
8  (2) scheduled annual payments of principal and 
9 interest on the bonds to be issued meet the requirements of 
10 Section 1-75 of this Act;
11  (3) no bond shall mature later than 30 years; and
12  (4) after payment of costs of issuance and necessary 
13 deposits to funds and accounts established with respect to 
14 debt service on the bonds, the net bond proceeds (exclusive 
15 of any proceeds to be used to refund outstanding bonds) 
16 will be used only for the purposes set forth in this Act.
17 The Authority also shall submit to the Auditor General its 
18projections on revenues to be generated and pledged to 
19repayment of the bonds as scheduled and such other information 
20as the Auditor General may reasonably request.
21 The Auditor General shall examine the certifications and 
22information submitted and submit a report to the Authority and 
23the Gaming Board indicating whether the required 
24certifications, projections, and other information have been 
25submitted by the Authority and whether the assumptions 
 
 
10000SB0007ham003- 24 -LRB100 06307 SMS 40923 a


1underlying the projections are not unreasonable in the 
2aggregate. The Auditor General shall submit the report no later 
3than 60 days after receiving the information required to be 
4submitted by the Authority.
5 The Auditor General shall submit a bill to the Authority 
6for costs associated with the examinations and report required 
7under this Section. The Authority shall reimburse in a timely 
8manner.
9 (b) The Authority shall enter into an intergovernmental 
10agreement with the Auditor General authorizing the Auditor 
11General to, every 2 years, (i) review the financial audit of 
12the Authority performed by the Authority's certified public 
13accountants, (ii) perform a management audit of the Authority, 
14and (iii) perform a management audit of the casino operator 
15licensee. The Auditor General shall provide the Authority and 
16the General Assembly with the audits and shall post on his or 
17her Internet website such portions of the audit or other 
18financial information as generally would be made publicly 
19available for other owners licensees under the Illinois 
20Gambling Act. The Auditor General shall submit a bill to the 
21Authority for costs associated with the review and the audit 
22required under this Section, and the Authority shall reimburse 
23the Auditor General for such costs in a timely manner.

24 Section 1-62. Advisory committee. An Advisory Committee is 
25established to monitor, review, and report on (1) the 
 
 
10000SB0007ham003- 25 -LRB100 06307 SMS 40923 a


1Authority's utilization of minority-owned business enterprises 
2and female-owned business enterprises, (2) employment of 
3females, and (3) employment of minorities with regard to the 
4development and construction of the casino as authorized under 
5Section 7 of the Illinois Gambling Act. The Authority shall 
6work with the Advisory Committee in accumulating necessary 
7information for the Committee to submit reports, as necessary, 
8to the General Assembly and to the City.

9 The Committee shall consist of 9 members as provided in 
10this Section. Five members shall be selected by the Governor 
11and 4 members shall be selected by the Mayor. The Governor and 
12Mayor shall each appoint at least one current member of the 
13General Assembly. The Advisory Committee shall meet 
14periodically and shall report the information to the Mayor of 
15the City and to the General Assembly by December 31st of every 
16year.
17 The Advisory Committee shall be dissolved on the date that 
18casino gambling operations are first conducted at a permanent 
19facility under the license authorized under Section 7 of the 
20Illinois Gambling Act. For the purposes of this Section, the 
21terms "female" and "minority person" have the meanings provided 
22in Section 2 of the Business Enterprise for Minorities, 
23Females, and Persons with Disabilities Act.

24 Section 1-65. Acquisition of property; eminent domain 
25proceedings. For the lawful purposes of this Act, the City may 
 
 
10000SB0007ham003- 26 -LRB100 06307 SMS 40923 a


1acquire, by eminent
domain or by condemnation proceedings in 
2the manner provided by the Eminent Domain Act, real or personal 
3property or interests in real
or personal property located in 
4the City, and the City may convey to the Authority
property so 
5acquired. The acquisition of property under this Section is

6declared to be for a public use.


7 Section 1-67. Limitations on gaming at Chicago airports. 
8The Authority may conduct gaming operations in an airport under 
9the administration or control of the Chicago Department of 
10Aviation. Gaming operations may be conducted pursuant to this 
11Section so long as (i) gaming operations are conducted in a 
12secured area that is beyond the Transportation Security 
13Administration security checkpoints and only available to 
14airline passengers at least 21 years of age who are members of 
15a private club, and not to the general public, (ii) gaming 
16operations are limited to slot machines, as defined in Section 
174 of the Illinois Gambling Act, and (iii) the combined number 
18of gaming positions operating in the City at the airports and 
19at the temporary and permanent casino facility does not exceed 
20the maximum number of gaming positions authorized pursuant to 
21subsection (h) of Section 7 of the Illinois Gambling Act. 
22Gaming operations at an airport are subject to all applicable 
23laws and rules that apply to any other gaming facility under 
24this Act or the Illinois Gambling Act.

 
 
10000SB0007ham003- 27 -LRB100 06307 SMS 40923 a


1 Section 1-70. Local regulation.  In addition to this Act, 
2the Illinois Gambling Act, and all of the rules of the Gaming 
3Board, the casino facilities and operations therein
shall be 
4subject to all ordinances and regulations of the City. The

5construction, development, and operation of the casino shall 
6comply with all
ordinances, regulations, rules, and controls of 
7the City, including, but not
limited to, those relating to 
8zoning and planned development, building, fire
prevention, and 
9land use. However, the regulation of gaming operations is

10subject to the exclusive jurisdiction of the Gaming Board. The 
11Gaming Board shall be responsible for the investigation for and 
12issuance of all licenses required by this Act and the Illinois 
13Gambling Act. 

14 Section 1-75. Borrowing. 
15 (a) The Authority may borrow money and
issue bonds as 
16provided in this Section. Bonds of the Authority may be issued

17to provide funds for land acquisition, site assembly and 
18preparation, and the design and construction of the casino, as 
19defined in the Illinois Gambling Act, all ancillary and related 
20facilities comprising the casino complex, and all on-site and 
21off-site infrastructure improvements required in connection 
22with the development of the casino; to refund (at the time or 
23in advance of any maturity or
redemption) or redeem any bonds 
24of the Authority; to provide or increase a
debt
service reserve 
25fund or other reserves with respect to any or all of its bonds;

 
 
10000SB0007ham003- 28 -LRB100 06307 SMS 40923 a


1or to pay the legal, financial, administrative, bond
insurance, 
2credit enhancement, and other legal expenses of the 
3authorization,
issuance, or delivery of bonds. In this Act, the 
4term "bonds" also includes
notes of any kind, interim 
5certificates, refunding bonds, or any other evidence
of 
6obligation for borrowed money issued under this Section. Bonds 
7may be
issued in one or more series and may be payable and 
8secured either on a parity
with or separately from other bonds. 

9 (b) The bonds of the Authority shall be payable from one or 
10more of
the following sources: (i) the property or revenues of 
11the Authority; (ii)
revenues derived from the casino; (iii) 
12revenues derived from any casino
operator licensee; (iv) fees, 
13bid proceeds, charges, lease payments, payments required 
14pursuant to any
casino management contract or other revenues 
15payable to the
Authority, or any
receipts of the Authority; (v) 
16payments by financial institutions, insurance
companies, or 
17others pursuant to letters or lines of credit, policies of

18insurance, or purchase agreements; (vi) investment earnings 
19from funds or
accounts maintained pursuant to a bond resolution 
20or trust indenture; (vii)
proceeds of refunding bonds; (viii) 
21any other revenues derived from or payments by the City; and 
22(ix) any payments by any casino operator licensee or others 
23pursuant to any guaranty agreement.

24 (c) Bonds shall be authorized by a resolution of the 
25Authority and may be
secured by a trust indenture by and 
26between the Authority and a corporate
trustee or trustees, 
 
 
10000SB0007ham003- 29 -LRB100 06307 SMS 40923 a


1which may be any trust company or bank having the powers
of a 
2trust company within or without the State. Bonds shall meet the 
3following requirements:


4  (1) Bonds may bear interest payable at any time or 
5 times and at any rate or rates, notwithstanding any other 
6 provision of law to the contrary, and may be subject to 
7 such other terms and conditions as may be provided by the 
8 resolution or indenture authorizing the issuance of such 
9 bonds.


10  (2) Bonds issued pursuant to this Section may be 
11 payable on such dates and times as may be provided for by 
12 the resolution or indenture authorizing the issuance of 
13 such bonds; provided, however, that such bonds shall mature 
14 no later than 30 years from the date of issuance.
15  (3) Bonds issued pursuant to this Section may be sold 
16 pursuant to notice of sale and public bid or by negotiated 
17 sale.


18  (4) Bonds shall be payable at a time or times, in the 
19 denominations and form,
including book entry form, either 
20 coupon, registered, or both, and carry the
registration and 
21 privileges as to exchange, transfer or conversion, and

22 replacement of mutilated, lost, or destroyed bonds as the 
23 resolution or trust
indenture may provide.


24  (5) Bonds shall be payable in lawful money of the 
25 United States at a designated
place.


26  (6) Bonds shall be subject to the terms of purchase, 
 
 
10000SB0007ham003- 30 -LRB100 06307 SMS 40923 a


1 payment, redemption, refunding,
or refinancing that the 
2 resolution or trust indenture provides.


3  (7) Bonds shall be executed by the manual or facsimile 
4 signatures of the officers
of the Authority designated by 
5 the Board, which signatures shall be valid at
delivery even

6 for one who has ceased to hold office.


7  (8) Bonds shall be sold at public or private sale in 
8 the manner and upon the terms
determined by the Authority.


9  (9) Bonds shall be issued in accordance with the 
10 provisions of the Local
Government Debt Reform Act.

11 (d) The Authority shall adopt a procurement program with 
12respect to contracts relating to underwriters, bond counsel, 
13financial advisors, and accountants. The program shall include 
14goals for the payment of not less than 30% of the total dollar 
15value of the fees from these contracts to minority-owned 
16businesses and female-owned businesses as defined in the 
17Business Enterprise for Minorities, Females, and Persons with 
18Disabilities Act. The Authority shall conduct outreach to 
19minority-owned businesses and female-owned businesses. 
20Outreach shall include, but is not limited to, advertisements 
21in periodicals and newspapers, mailings, and other appropriate 
22media. The Authority shall submit to the General Assembly a 
23comprehensive report that shall include, at a minimum, the 
24details of the procurement plan, outreach efforts, and the 
25results of the efforts to achieve goals for the payment of 
26fees.
 
 
10000SB0007ham003- 31 -LRB100 06307 SMS 40923 a


1 (e) Subject to the Illinois Gambling Act and rules of the 
2Gaming Board regarding pledging
of interests in holders of 
3owners licenses, any resolution or trust indenture may contain 
4provisions that may be a part of
the contract with the holders 
5of the bonds as to the following:


6  (1) Pledging, assigning, or directing the use, 
7 investment, or disposition
of revenues of the Authority or 
8 proceeds or benefits of any contract, including
without 
9 limitation any rights in any casino management
contract.


10  (2) The setting aside of loan funding deposits, debt 
11 service reserves, replacement or operating reserves, cost 
12 of
issuance accounts and sinking funds, and the regulation, 
13 investment, and
disposition thereof.


14  (3) Limitations on the purposes to which or the 
15 investments in which the
proceeds of sale of any issue of 
16 bonds or the Authority's revenues and
receipts may be 
17 applied or made.


18  (4) Limitations on the issue of additional bonds, the 
19 terms upon which
additional bonds may be issued and 
20 secured, the terms upon which additional
bonds may rank on 
21 a parity with, or be subordinate or superior to, other 
22 bonds.


23  (5) The refunding, advance refunding, or refinancing 
24 of outstanding bonds.


25  (6) The procedure, if any, by which the terms of any 
26 contract with
bondholders may be altered or amended and the 
 
 
10000SB0007ham003- 32 -LRB100 06307 SMS 40923 a


1 amount of bonds and holders of
which must consent thereto 
2 and the manner in which consent shall be given.


3  (7) Defining the acts or omissions that shall 
4 constitute a default in the
duties of the Authority to 
5 holders of bonds and providing the rights or
remedies of 
6 such holders in the event of a default, which may include

7 provisions
restricting individual rights of action by 
8 bondholders.


9  (8) Providing for guarantees, pledges of property, 
10 letters of credit, or
other security,
or insurance for the 
11 benefit of bondholders.

12 (f) No member of the Casino Board, nor any person executing 
13the bonds, shall be
liable personally on the bonds or subject 
14to any personal liability by reason
of the issuance of the 
15bonds.

16 (g) The Authority may issue and secure bonds in accordance 
17with the
provisions of the Local Government Credit Enhancement 
18Act.

19 (h) A pledge by the Authority of revenues and receipts as 
20security for an
issue of bonds or for the performance of its 
21obligations under any casino
management contract shall
be valid 
22and binding from the time when the pledge is made. The revenues 
23and
receipts pledged shall immediately be subject to the lien 
24of the pledge without
any physical delivery or further act,
and 
25the lien of any pledge shall be valid and binding against any 
26person having
any claim of any kind in tort, contract, or 
 
 
10000SB0007ham003- 33 -LRB100 06307 SMS 40923 a


1otherwise against the Authority,
irrespective of whether the 
2person has notice. No resolution, trust indenture,
management 
3agreement or financing statement, continuation statement, or 
4other
instrument adopted or entered into by the Authority need 
5be filed or recorded
in any public record other than the 
6records of the Authority in order to
perfect the lien against 
7third persons, regardless of any contrary provision of
law.

8 (i) Bonds that are being paid or retired by issuance, sale, 
9or delivery of
bonds, and bonds for which sufficient funds have 
10been deposited with the paying
agent or trustee to provide for 
11payment of principal and interest thereon, and
any redemption 
12premium, as provided in the authorizing resolution, shall not 
13be
considered outstanding for the purposes of this subsection.

14 (j) The bonds of the Authority shall not be indebtedness of 
15the
State.
The bonds of the Authority are not general 
16obligations of the State and are not secured by a pledge of the 
17full faith and
credit of the State and the holders of bonds of 
18the Authority may
not require the application of State revenues 
19or
funds to the payment of bonds of the Authority. The 
20foregoing non-recourse language must be printed in bold-face 
21type on the face of the bonds and in the preliminary and final 
22official statements on the bonds.

23 (k) The State of
Illinois pledges and agrees with the 
24owners of the bonds that it will not limit
or alter the rights 
25and powers vested in the Authority by this Act so as to
impair 
26the terms of any contract made by the Authority with the owners 
 
 
10000SB0007ham003- 34 -LRB100 06307 SMS 40923 a


1or in
any way impair the rights and remedies of the owners 
2until the bonds, together
with interest on them, and all costs 
3and expenses in connection with any action
or proceedings by or 
4on behalf of the owners, are fully met and discharged.
The 
5Authority is authorized to include this pledge and
agreement in 
6any contract with the owners of bonds issued under this 
7Section.

8 (l) No person holding an elective office in the City, in 
9Cook County, or in this State, holding a seat in the General 
10Assembly, or serving as a board member, trustee, officer, or 
11employee of the Authority, including the spouse of that person, 
12may receive a legal, banking, consulting, or other fee related 
13to the issuance of bonds. This prohibition shall also apply to 
14a company or firm that employs a person holding an elective 
15office in the City, in Cook County, or in this State, holding a 
16seat in the General Assembly, or serving as a board member, 
17trustee, officer, or employee of the Authority, including the 
18spouse of that person, if the person or his or her spouse has 
19greater than 7.5% ownership of the company or firm.

20 Section 1-85. Derivative products.  With respect to all or 
21part of any issue
of its bonds, the Authority may enter into 
22agreements or contracts with any
necessary or appropriate 
23person, which will have the benefit of providing to
the

24Authority an interest rate basis, cash flow basis, or other 
25basis different
from that provided in the bonds for the payment 
 
 
10000SB0007ham003- 35 -LRB100 06307 SMS 40923 a


1of interest. Such agreements
or contracts may include, without 
2limitation, agreements or contracts commonly
known as 
3"interest rate swap agreements", "forward payment conversion

4agreements", "futures", "options", "puts", or "calls" and 
5agreements or
contracts providing for payments based on levels 
6of or changes in interest
rates, agreements or contracts to 
7exchange cash flows or a series of payments,
or to hedge 
8payment, rate spread, or similar exposure. Any such agreement 
9or contract shall be solely an obligation or indebtedness of 
10the Authority and shall not be an obligation or indebtedness of 
11the State, nor shall any party thereto have any recourse 
12against the State in connection with the agreement or contract.

13 Section 1-90. Legality for investment. The State of 
14Illinois, all
governmental entities, all public officers, 
15banks, bankers, trust companies,
savings banks and 
16institutions, building and loan associations, savings and
loan 
17associations, investment companies, and other persons carrying 
18on a
banking
business, insurance companies, insurance 
19associations, and other persons
carrying on an insurance 
20business, and all executors, administrators,
guardians, 
21trustees, and other fiduciaries may legally invest any sinking

22funds,
moneys, or other funds belonging to them or within their 
23control in
any bonds issued under this Act. However, nothing in 
24this Section shall be
construed as relieving any person or 
25entity from any duty of
exercising reasonable care in selecting 
 
 
10000SB0007ham003- 36 -LRB100 06307 SMS 40923 a


1securities for purchase or investment.

2 Section 1-105. Budgets and reporting. 

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

4fiscal year. The budget may be modified from time to time in 
5the same manner
and upon the same vote as it may be adopted. 
6The budget shall include the
Authority's available funds and 
7estimated revenues and shall provide for
payment of its 
8obligations and estimated expenditures for the fiscal year,

9including, without limitation, expenditures for 
10administration, operation,
maintenance and repairs, debt 
11service, and deposits into reserve and other
funds
and capital 
12projects.

13 (b) The Casino Board shall annually cause the finances of 
14the Authority to be
audited by a firm of certified public 
15accountants selected by the Casino Board in accordance with the 
16rules of the Gaming Board and post on the Authority's Internet 
17website such financial information as is required to be posted 
18by all other owners licensees under the Illinois Gambling Act.

19 (c) The Casino Board shall, for each fiscal year, prepare 
20an annual report
setting forth information concerning its 
21activities in the fiscal year and the
status of the development 
22of the casino. The annual report shall include financial 
23information of the Authority consistent with that which is 
24required for all other owners licensees under the Illinois 
25Gambling Act, the budget
for the succeeding fiscal year, and 
 
 
10000SB0007ham003- 37 -LRB100 06307 SMS 40923 a


1the current capital plan as of the date of
the report. Copies 
2of the annual report shall be made available to persons who

3request them and shall be submitted not later than 120 days 
4after the end of
the Authority's fiscal year or, if the audit 
5of the Authority's financial statements is not completed within 
6120 days after the end of the Authority's fiscal year, as soon 
7as practical after completion of the audit, to the Governor, 
8the Mayor, the General Assembly, and the Commission on 
9Government Forecasting and Accountability.


10 Section 1-110. Deposit and withdrawal of funds.
11 (a) All funds deposited by the Authority in any bank or 
12savings and loan
association shall be placed in the name of the 
13Authority and shall be withdrawn
or paid out only by check or 
14draft upon the bank or savings and loan
association, signed by 
152 officers or employees designated by the Casino Board.

16Notwithstanding any other provision of this Section, the Casino 
17Board may designate
any of its members or any officer or 
18employee of the Authority to authorize the
wire transfer of 
19funds deposited by the secretary-treasurer of funds in a bank

20or savings and loan association for the payment of payroll and 
21employee
benefits-related expenses.

22 No bank or savings and loan association shall receive 
23public funds as
permitted by this Section unless it has 
24complied with the requirements
established pursuant to Section 
256 of the Public
Funds Investment Act.

 
 
10000SB0007ham003- 38 -LRB100 06307 SMS 40923 a


1 (b) If any officer or employee whose signature appears upon 
2any check
or draft issued pursuant to this Act ceases (after 
3attaching his signature) to
hold his or her office before the 
4delivery of such a check or draft to the
payee, his or her 
5signature shall nevertheless be valid and sufficient for all

6purposes with the same effect as if he or she had remained in 
7office until
delivery thereof.


8 Section 1-112. Contracts with the Authority or casino 
9operator licensee; disclosure requirements. 
10 (a) A bidder, respondent, offeror, or contractor for 
11contracts with the Authority or casino operator licensee shall 
12disclose the identity of all officers and directors and every 
13owner, beneficiary, or person with beneficial interest of more 
14than 1% or shareholder entitled to receive more than 1% of the 
15total distributable income of any corporation having any 
16interest in the contract or in the bidder, respondent, offeror, 
17or contractor. The disclosure shall be in writing and attested 
18to by an owner, trustee, corporate official, or agent. If stock 
19in a corporation is publicly traded and there is no readily 
20known individual having greater than a 1% interest, then a 
21statement to that effect attested to by an officer or agent of 
22the corporation shall fulfill the disclosure statement 
23requirement of this Section. A bidder, respondent, offeror, or 
24contractor shall notify the Authority of any changes in 
25officers, directors, ownership, or individuals having a 
 
 
10000SB0007ham003- 39 -LRB100 06307 SMS 40923 a


1beneficial interest of more than 1%. Notwithstanding the 
2provisions of this subsection (a), the Gaming Board may adopt 
3rules in connection with contractors for contracts with the 
4Authority or the casino operator licensee.
5 (b) A bidder, respondent, offeror, or contractor for 
6contracts with an annual value of $25,000 or more or for a 
7period to exceed one year shall disclose all political 
8contributions of the bidder, respondent, offeror, or 
9contractor and any affiliated person or entity. Disclosure 
10shall include at least the names and addresses of the 
11contributors and the dollar amounts of any contributions to any 
12political committee made within the previous 2 years. The 
13disclosure must be submitted to the Gaming Board with a copy of 
14the contract. All such disclosures shall be posted on the 
15websites of the Authority and the Gaming Board.
16 (c) As used in this Section:
17 "Contribution" means contribution as defined in Section 
189-1.4 of the Election Code.
19 "Affiliated person" means (i) any person with any ownership 
20interest or distributive share of the bidding, responding, or 
21contracting entity in excess of 1%, (ii) executive employees of 
22the bidding, responding, or contracting entity, and (iii) the 
23spouse, minor children, and parents of any such persons.
24 "Affiliated entity" means (i) any parent or subsidiary of 
25the bidding or contracting entity, (ii) any member of the same 
26unitary business group, or (iii) any political committee for 
 
 
10000SB0007ham003- 40 -LRB100 06307 SMS 40923 a


1which the bidding, responding, or contracting entity is the 
2sponsoring entity.
3 (d) The Gaming Board may direct the Authority or a casino 
4operator licensee to void a contract if a violation of this 
5Section occurs. The Authority may direct a casino operator 
6licensee to void a contract if a violation of this Section 
7occurs.
8 (e) All contracts pertaining to the actual operation of the 
9casino and related gaming activities shall be entered into by 
10the casino operator licensee and not the Authority and shall be 
11subject to the regulation, oversight, and approval of the 
12Gaming Board, applying the same regulation, oversight, and 
13approval requirements as would be applied to any other owners 
14licensee under the Illinois Gambling Act.

15 Section 1-115. Purchasing. 
16 (a) The Casino Board shall designate an officer of the 
17Authority to serve as the Chief Procurement Officer for the 
18Authority. The Chief Procurement Officer shall have all powers 
19and duties set forth in Section 15 of Division 10 of Article 8 
20of the Illinois Municipal Code. Except as otherwise provided in 
21this Section, the Chief Procurement Officer of the Authority 
22shall conduct procurements on behalf of the Authority subject 
23to Title 2, Chapter 92 of the Municipal Code of Chicago, which 
24by its terms incorporates Division 10 of Article 8 of the 
25Illinois Municipal Code.
 
 
10000SB0007ham003- 41 -LRB100 06307 SMS 40923 a


1 (b) All contracts for amounts greater than $25,000 must be 
2approved by the Casino Board and executed by the chairperson of 
3the Casino Board and executive director of the Authority. 
4Contracts for amounts of $25,000 or less may be approved and 
5executed by the Chief Procurement Officer for the Authority and 
6executive director of the Authority, with approval by the chief 
7legal counsel for the Authority as to form and legality.
8 (c) All construction contracts and contracts for supplies, 
9materials,
equipment, and services for amounts greater than 
10$25,000 shall be let by a competitive selection process to
the 
11lowest responsible proposer, after advertising for proposals, 
12except for the
following:


13  (1) when repair parts, accessories, equipment, or 
14 services are required
for
equipment or services previously 
15 furnished or contracted for;


16  (2) when services such as water, light, heat, power, 
17 telephone (other than
long-distance service), or telegraph 
18 are required;


19  (3) casino management contracts, which shall be 
20 awarded as
set forth in Section 1-45 of this Act;

21  (4) contracts where there is only one economically 
22 feasible source;
23  (5) when a purchase is needed on an immediate, 
24 emergency basis because there exists a threat to public 
25 health or public safety, or when immediate expenditure is 
26 necessary for repairs to Authority property in order to 
 
 
10000SB0007ham003- 42 -LRB100 06307 SMS 40923 a


1 protect against further loss of or damage to Authority 
2 property, to prevent or minimize serious disruption in 
3 Authority services or to ensure the integrity of Authority 
4 records;
5  (6) contracts for professional services other than for 
6 management of the casino, except such contracts described 
7 in subsection (d) of this Section; and
8  (7) contracts for the use, purchase, delivery, 
9 movement, or installation of (i) data processing 
10 equipment, software, and services and (ii) 
11 telecommunications equipment, software, and services.

12 (d) Contracts for professional services for a term of more 
13than one year or contracts that may require payment in excess 
14of $25,000 in one year shall be let by a competitive bidding 
15process to the most highly qualified firm that agrees to 
16compensation and other terms of engagement that are both 
17reasonable and acceptable to the Casino Board.
18 (e) All contracts involving less than $25,000 shall be let 
19by competitive
selection process whenever possible, and in any 
20event in a manner calculated to ensure
the best interests of 
21the public.

22 (f) In determining the responsibility of any proposer, the 
23Authority may take
into account the proposer's (or an 
24individual having a beneficial interest,
directly or 
25indirectly, of more than 1% in such proposing entity) past 
26record of
dealings with the Authority, the proposer's 
 
 
10000SB0007ham003- 43 -LRB100 06307 SMS 40923 a


1experience, adequacy of equipment,
and ability to complete 
2performance within the time set, and other factors
besides 
3financial responsibility. No such contract shall be awarded to 
4any proposer other than the lowest proposer (in case of 
5purchase or
expenditure) unless authorized or approved by a 
6vote of at least 3 members of
the Casino Board and such action 
7is accompanied by a written statement setting forth the reasons 
8for not awarding the contract to the highest or
lowest 
9proposer, as the case
may be. The statement shall be kept on 
10file in the principal office of the
Authority and open to 
11public inspection.

12 (g) The Authority shall have the right to reject all 
13proposals and to
re-advertise for proposals. If after
any such 
14re-advertisement, no responsible and satisfactory proposals, 
15within the
terms of the re-advertisement, is received, the 
16Authority may award such
contract without competitive 
17selection. The contract must not be less
advantageous to the 
18Authority than any valid proposal received pursuant to

19advertisement.

20 (h) Advertisements for proposals and re-proposals shall be 
21published at least once in
a daily newspaper of general 
22circulation published in the City
at least 10 calendar days 
23before the time for
receiving proposals and in an online 
24bulletin published on the Authority's website. Such

25advertisements shall state the time and
place for receiving and 
26opening of proposals and, by reference to plans and

 
 
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1specifications on file at the time of the first publication or 
2in the
advertisement itself, shall describe the character of 
3the proposed contract in
sufficient detail to fully advise 
4prospective proposers of their obligations and
to ensure free 
5and open competitive selection.

6 (i) All proposals in response to advertisements shall be 
7sealed and shall be
publicly opened by the Authority. All 
8proposers shall be entitled to be present
in person or by 
9representatives. Cash or a certified or satisfactory cashier's

10check, as a deposit of good faith, in a reasonable amount to be 
11fixed by the
Authority before advertising for proposals, shall 
12be required with the proposal. A bond for faithful performance 
13of the contract with surety or
sureties satisfactory to the

14Authority and adequate insurance may be required in reasonable 
15amounts to be
fixed by the Authority before advertising for 
16proposals.

17 (j) The contract shall be awarded as promptly as possible 
18after the opening
of proposals. The proposal of the successful 
19proposer, as well as the bids of the
unsuccessful proposers, 
20shall be placed on file and be open to public inspection 
21subject to the exemptions from disclosure provided under 
22Section 7 of the Freedom of Information Act.
All proposals 
23shall be void if any disclosure of the terms of any proposals 
24in response
to an advertisement is made or permitted to be made 
25by the Authority before the
time fixed for opening proposals.

26 (k) Notice of each and every contract that is
offered, 
 
 
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1including renegotiated contracts and change orders,
shall be 
2published in an online bulletin. The online bulletin must 
3include at least the date first offered,
the date submission of 
4offers is due, the location that offers are to be
submitted to, 
5a brief purchase description, the method of source selection,

6information of how to obtain a comprehensive purchase 
7description and any
disclosure and contract forms, and 
8encouragement to prospective vendors to hire qualified 
9veterans, as defined by Section 45-67 of the Illinois 
10Procurement Code, and Illinois residents discharged from any 
11Illinois adult correctional center subject to Gaming Board 
12licensing and eligibility rules. Notice of each and every 
13contract that is let
or awarded, including renegotiated 
14contracts and change orders, shall be
published in the online 
15bulletin and
must include at least all of the
information 
16specified in this subsection (k), as well as the name of the 
17successful
responsible proposer or offeror, the contract 
18price, and the number of unsuccessful
responsive proposers and 
19any other disclosure specified in this Section. This notice 
20must be posted in the online electronic bulletin prior to 
21execution of the contract.


22 Section 1-130. Affirmative action and equal opportunity 
23obligations of
Authority. 
24 (a) The Authority is subject to the requirements of Article 
25IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720 
 
 
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1inclusive) of the Chicago Municipal Code, as now or hereafter 
2amended, renumbered, or succeeded, concerning a Minority-Owned 
3and Women-Owned Business Enterprise Procurement Program for 
4construction contracts, and Section 2-92-420 et seq. of the 
5Chicago Municipal Code, as now or hereafter amended, 
6renumbered, or succeeded, concerning a Minority-Owned and 
7Women-Owned Business Enterprise Procurement Program.

8 (b) The Authority is authorized to enter into agreements 
9with contractors'
associations, labor unions, and the 
10contractors working on the development of
the casino to 
11establish an apprenticeship preparedness training program to

12provide for an increase in the number of minority and female 
13journeymen and
apprentices in the building trades and to enter 
14into agreements with
community college districts or other 
15public or private institutions to provide
readiness training. 
16The Authority is further authorized to enter into
contracts 
17with public and private educational institutions and persons in 
18the
gaming, entertainment, hospitality, and tourism industries 
19to provide training
for employment in those industries.


20 Section 1-135. Transfer of interest. Neither the Authority 
21nor the City may sell, lease, rent, transfer, exchange, or 
22otherwise convey any interest that they have in the casino 
23without prior approval of the General Assembly.

24 Section 1-140. Home rule. The regulation and licensing of 
 
 
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1casinos and casino gaming, casino gaming facilities, and casino 
2operator licensees under this Act are exclusive powers and 
3functions of the State. A home rule unit may not regulate or 
4license casinos, casino gaming, casino gaming facilities, or 
5casino operator licensees under this Act, except as provided 
6under this Act. This Section is a denial and limitation of home 
7rule powers and functions under subsection (h) of Section 6 of 
8Article VII of the Illinois Constitution.


9
Article 5.  Fantasy Sports Contest Act


10 Section 5-1. Short title. This Article may be cited as the 
11Fantasy Sports Contest Act. References in
this Article to "this 
12Act" mean this Article.

13
Article 10.  Internet Gaming Act


14 Section 10-1. Short title. This Article may be cited as the 
15Internet Gaming Act. References in
this Article to "this Act" 
16mean this Article.

17
Article 15.  Sports Wagering Act


18 Section 15-1. Short title. This Article may be cited as the 
19Sports Wagering Act. References in this Article to "this Act" 
20mean this Article.

 
 
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1
Article 90.  Miscellaneous Provisions


2 Section 90-1. Findings. The General Assembly makes all of 
3the following findings:
4  (1) That the cumulative reduction to pre-K through 12 
5 education funding since 2009 is approximately 
6 $861,000,000.
7  (2) That general state aid to Illinois common schools 
8 has been underfunded as a result of budget cuts, resulting 
9 in pro-rated payments to school districts that are less 
10 than the foundational level of $6,119 per pupil, which 
11 represents the minimum each pupil needs to be educated.
12  (3) That a significant infusion of new revenue is 
13 necessary in order to fully fund the foundation level and 
14 to maintain and support education in Illinois.
15  (4) That the decline of the Illinois horse racing and 
16 breeding program, a $2.5 billion industry, would be 
17 reversed if this amendatory Act of the 100th General 
18 Assembly would be enacted.
19  (5) That the Illinois horse racing industry is on the 
20 verge of extinction due to fierce competition from fully 
21 developed horse racing and gaming operations in other 
22 states.
23  (6) That allowing the State's horse racing venues to 
24 maximize their capacities with gaming machines, would 
 
 
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1 generate up to $120 million to $200 million for the State 
2 in the form of extra licensing fees, plus an additional 
3 $100 million to $300 million in recurring annual tax 
4 revenue for the State to help ensure that school, road, and 
5 other building projects promised under the capital plan 
6 occur on schedule.
7  (7) That Illinois agriculture and other businesses 
8 that support and supply the horse racing industry, already 
9 a sector that employs over 37,000 Illinoisans, also stand 
10 to substantially benefit and would be much more likely to 
11 create additional jobs should Illinois horse racing once 
12 again become competitive with other states.
13  (8) That by keeping these projects on track, the State 
14 can be sure that significant job and economic growth will 
15 in fact result from the previously enacted legislation.
16  (9) That gaming machines at Illinois horse racing 
17 tracks would create an estimated 1,200 to 1,500 permanent 
18 jobs, and an estimated capital investment of up to $200 
19 million to $400 million at these racetracks would prompt 
20 additional trade organization jobs necessary to construct 
21 new facilities or remodel racetracks for the purpose of 
22 conducting gaming.

23 Section 90-3. The State Officials and Employees Ethics Act 
24is amended by changing Section 5-45 as follows:

 
 
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1 (5 ILCS 430/5-45)

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

3 (a) No former officer, member, or State employee, or spouse 
4or
immediate family member living with such person, shall, 
5within a period of one
year immediately after termination of 
6State employment, knowingly accept
employment or receive 
7compensation or fees for services from a person or entity
if 
8the officer, member, or State employee, during the year 
9immediately
preceding termination of State employment, 
10participated personally and
substantially in the award of State 
11contracts, or the issuance of State contract change orders, 
12with a cumulative value
of $25,000
or more to the person or 
13entity, or its parent or subsidiary.


14 (b) No former officer of the executive branch or State 
15employee of the
executive branch with regulatory or
licensing 
16authority, or spouse or immediate family member living with 
17such
person, shall, within a period of one year immediately 
18after termination of
State employment, knowingly accept 
19employment or receive compensation or fees
for services from a 
20person or entity if the officer
or State
employee, during the 
21year immediately preceding
termination of State employment, 
22participated personally and substantially in making a 
23regulatory or licensing decision that
directly applied to the 
24person or entity, or its parent or subsidiary. 

25 (c) Within 6 months after the effective date of this 
26amendatory Act of the 96th General Assembly, each executive 
 
 
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1branch constitutional officer and legislative leader, the 
2Auditor General, and the Joint Committee on Legislative Support 
3Services shall adopt a policy delineating which State positions 
4under his or her jurisdiction and control, by the nature of 
5their duties, may have the authority to participate personally 
6and substantially in the award of State contracts or in 
7regulatory or licensing decisions. The Governor shall adopt 
8such a policy for all State employees of the executive branch 
9not under the jurisdiction and control of any other executive 
10branch constitutional officer.


11 The policies required under subsection (c) of this Section 
12shall be filed with the appropriate ethics commission 
13established under this Act or, for the Auditor General, with 
14the Office of the Auditor General.
15 (d) Each Inspector General shall have the authority to 
16determine that additional State positions under his or her 
17jurisdiction, not otherwise subject to the policies required by 
18subsection (c) of this Section, are nonetheless subject to the 
19notification requirement of subsection (f) below due to their 
20involvement in the award of State contracts or in regulatory or 
21licensing decisions.
22 (e) The Joint Committee on Legislative Support Services, 
23the Auditor General, and each of the executive branch 
24constitutional officers and legislative leaders subject to 
25subsection (c) of this Section shall provide written 
26notification to all employees in positions subject to the 
 
 
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1policies required by subsection (c) or a determination made 
2under subsection (d): (1) upon hiring, promotion, or transfer 
3into the relevant position; and (2) at the time the employee's 
4duties are changed in such a way as to qualify that employee. 
5An employee receiving notification must certify in writing that 
6the person was advised of the prohibition and the requirement 
7to notify the appropriate Inspector General in subsection (f).
8 (f) Any State employee in a position subject to the 
9policies required by subsection (c) or to a determination under 
10subsection (d), but who does not fall within the prohibition of 
11subsection (h) below, who is offered non-State employment 
12during State employment or within a period of one year 
13immediately after termination of State employment shall, prior 
14to accepting such non-State employment, notify the appropriate 
15Inspector General. Within 10 calendar days after receiving 
16notification from an employee in a position subject to the 
17policies required by subsection (c), such Inspector General 
18shall make a determination as to whether the State employee is 
19restricted from accepting such employment by subsection (a) or 
20(b). In making a determination, in addition to any other 
21relevant information, an Inspector General shall assess the 
22effect of the prospective employment or relationship upon 
23decisions referred to in subsections (a) and (b), based on the 
24totality of the participation by the former officer, member, or 
25State employee in those decisions. A determination by an 
26Inspector General must be in writing, signed and dated by the 
 
 
10000SB0007ham003- 53 -LRB100 06307 SMS 40923 a


1Inspector General, and delivered to the subject of the 
2determination within 10 calendar days or the person is deemed 
3eligible for the employment opportunity. For purposes of this 
4subsection, "appropriate Inspector General" means (i) for 
5members and employees of the legislative branch, the 
6Legislative Inspector General; (ii) for the Auditor General and 
7employees of the Office of the Auditor General, the Inspector 
8General provided for in Section 30-5 of this Act; and (iii) for 
9executive branch officers and employees, the Inspector General 
10having jurisdiction over the officer or employee. Notice of any 
11determination of an Inspector General and of any such appeal 
12shall be given to the ultimate jurisdictional authority, the 
13Attorney General, and the Executive Ethics Commission.
14 (g) An Inspector General's determination regarding 
15restrictions under subsection (a) or (b) may be appealed to the 
16appropriate Ethics Commission by the person subject to the 
17decision or the Attorney General no later than the 10th 
18calendar day after the date of the determination.
19 On appeal, the Ethics Commission or Auditor General shall 
20seek, accept, and consider written public comments regarding a 
21determination. In deciding whether to uphold an Inspector 
22General's determination, the appropriate Ethics Commission or 
23Auditor General shall assess, in addition to any other relevant 
24information, the effect of the prospective employment or 
25relationship upon the decisions referred to in subsections (a) 
26and (b), based on the totality of the participation by the 
 
 
10000SB0007ham003- 54 -LRB100 06307 SMS 40923 a


1former officer, member, or State employee in those decisions. 
2The Ethics Commission shall decide whether to uphold an 
3Inspector General's determination within 10 calendar days or 
4the person is deemed eligible for the employment opportunity.
5 (h) The following officers, members, or State employees 
6shall not, within a period of one year immediately after 
7termination of office or State employment, knowingly accept 
8employment or receive compensation or fees for services from a 
9person or entity if the person or entity or its parent or 
10subsidiary, during the year immediately preceding termination 
11of State employment, was a party to a State contract or 
12contracts with a cumulative value of $25,000 or more involving 
13the officer, member, or State employee's State agency, or was 
14the subject of a regulatory or licensing decision involving the 
15officer, member, or State employee's State agency, regardless 
16of whether he or she participated personally and substantially 
17in the award of the State contract or contracts or the making 
18of the regulatory or licensing decision in question:
19  (1) members or officers;
20  (2) members of a commission or board created by the 
21 Illinois Constitution;
22  (3) persons whose appointment to office is subject to 
23 the advice and consent of the Senate;
24  (4) the head of a department, commission, board, 
25 division, bureau, authority, or other administrative unit 
26 within the government of this State;
 
 
10000SB0007ham003- 55 -LRB100 06307 SMS 40923 a


1  (5) chief procurement officers, State purchasing 
2 officers, and their designees whose duties are directly 
3 related to State procurement; and
4  (6) chiefs of staff, deputy chiefs of staff, associate 
5 chiefs of staff, assistant chiefs of staff, and deputy 
6 governors; .
7  (7) employees of the Illinois Racing Board; and
8  (8) employees of the Illinois Gaming Board.
9 (i) For the purposes of this Section, with respect to 
10officers or employees of a regional transit board, as defined 
11in this Act, the phrase "person or entity" does not include: 
12(i) the United States government, (ii) the State, (iii) 
13municipalities, as defined under Article VII, Section 1 of the 
14Illinois Constitution, (iv) units of local government, as 
15defined under Article VII, Section 1 of the Illinois 
16Constitution, or (v) school districts. 
17(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)

18 Section 90-5. The Alcoholism and Other Drug Abuse and 
19Dependency Act is amended by changing Section 5-20 as follows:




20 (20 ILCS 301/5-20)



21 Sec. 5-20. Compulsive gambling program. 

22 (a) Subject to appropriation, the Department shall 
23establish a program for
public education, research, and 
24training regarding problem and compulsive
gambling and the 
 
 
10000SB0007ham003- 56 -LRB100 06307 SMS 40923 a


1treatment and prevention of problem and compulsive gambling.

2Subject to specific appropriation for these stated purposes, 
3the program must
include all of the following:


4  (1) Establishment and maintenance of a toll-free "800" 
5 telephone number
to provide crisis counseling and referral 
6 services to families experiencing
difficulty as a result of 
7 problem or compulsive gambling.


8  (2) Promotion of public awareness regarding the 
9 recognition and
prevention of problem and compulsive 
10 gambling.


11  (3) Facilitation, through in-service training and 
12 other means, of the
availability of effective assistance 
13 programs for problem and compulsive
gamblers.


14  (4) Conducting studies to identify adults and 
15 juveniles in this
State who are, or who are at risk of 
16 becoming, problem or compulsive gamblers.

17 (b) Subject to appropriation, the Department shall either 
18establish and
maintain the program or contract with a private 
19or public entity for the
establishment and maintenance of the 
20program. Subject to appropriation, either
the Department or the 
21private or public entity shall implement the toll-free

22telephone number, promote public awareness, and conduct 
23in-service training
concerning problem and compulsive 
24gambling.

25 (c) Subject to appropriation, the Department shall produce 
26and supply the
signs specified in Section 10.7 of the Illinois 
 
 
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1Lottery Law, Section 34.1 of
the Illinois Horse Racing Act of 
21975, Section 4.3 of the Bingo License and Tax
Act, Section 8.1 
3of the Charitable Games Act, and Section 13.1 of the Illinois 
4Riverboat
Gambling Act.

5(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)


6 Section 90-6. The Department of Commerce and Economic 
7Opportunity Law of the
Civil Administrative Code of Illinois is 
8amended by adding Sections 605-530 and 605-535 as follows:

9 (20 ILCS 605/605-530 new)
10 Sec. 605-530. The Depressed Communities Economic 
11Development Board.
12 (a) The Depressed Communities Economic Development Board 
13is created as an advisory board within the Department of 
14Commerce and Economic Opportunity. The Board shall consist of 
15the following members:
16  (1) 3 members appointed by the Governor, one of whom 
17 shall be appointed to serve an initial term of one year and 
18 2 of whom shall be appointed to serve an initial term of 2 
19 years;
20  (2) 2 members appointed by the Speaker of the House of 
21 Representatives, one of whom shall be appointed to serve an 
22 initial term of one year and one of whom shall be appointed 
23 to serve an initial term of 2 years;
24  (3) 2 members appointed by the President of the Senate, 
 
 
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1 one of whom shall be appointed to serve an initial term of 
2 one year and one of whom shall be appointed to serve an 
3 initial term of 2 years;
4  (4) 2 members appointed by the Minority Leader of the 
5 House of Representatives, one of whom shall be appointed to 
6 serve an initial term of one year and one of whom shall be 
7 appointed to serve an initial term of 2 years; and
8  (5) 2 members appointed by the Minority Leader of the 
9 Senate, one of whom shall be appointed to serve an initial 
10 term of one year and one of whom shall be appointed to 
11 serve an initial term of 2 years.
12 The members of the Board shall elect a member to serve as 
13chair of the Board. The members of the Board shall reflect the 
14composition of the Illinois population with regard to ethnic 
15and racial composition.
16 After the initial terms, each member shall be appointed to 
17serve a term of 2 years and until his or her successor has been 
18appointed and assumes office. If a vacancy occurs in the Board 
19membership, then the vacancy shall be filled in the same manner 
20as the initial appointment. No member of the Board shall, at 
21the time of his or her appointment or within 2 years before the 
22appointment, hold elected office or be appointed to a State 
23board, commission, or agency. All Board members are subject to 
24the State Officials and Employees Ethics Act.
25 (b) Board members shall serve without compensation, but may 
26be reimbursed for their reasonable travel expenses from funds 
 
 
10000SB0007ham003- 59 -LRB100 06307 SMS 40923 a


1available for that purpose. The Department of Commerce and 
2Economic Opportunity shall provide staff and administrative 
3support services to the Board.
4 (c) The Board must make recommendations, which must be 
5approved by a majority of the Board, to the Department of 
6Commerce and Economic Opportunity concerning the award of 
7grants from amounts appropriated to the Department from the 
8Depressed Communities Economic Development Fund, a special 
9fund created in the State treasury. The Department must make 
10grants to public or private entities submitting proposals to 
11the Board to revitalize an Illinois depressed community. Grants 
12may be used by these entities only for those purposes 
13conditioned with the grant. For the purposes of this subsection 
14(c), plans for revitalizing an Illinois depressed community 
15include plans intended to curb high levels of poverty, 
16unemployment, job and population loss, and general distress. An 
17Illinois depressed community is an area where the poverty rate, 
18as determined by using the most recent data released by the 
19United States Census Bureau, is at least 3% greater than the 
20State poverty rate as determined by using the most recent data 
21released by the United States Census Bureau. 

22 (20 ILCS 605/605-535 new)
23 Sec. 605-535. The Commission on the Future of Economic 
24Development of the Latino Community.
25 (a) There is hereby created the Commission on the Future of 
 
 
10000SB0007ham003- 60 -LRB100 06307 SMS 40923 a


1Economic Development of the Latino Community within the 
2Department. The purpose of the Commission shall be to maintain 
3and develop the economy of Latinos and to provide opportunities 
4for this community, which will enhance and expand the quality 
5of their lives.
6 The Commission shall concentrate its major efforts on 
7strategic planning, policy research and analysis, advocacy, 
8evaluation, and promoting coordination and collaboration.
9 During each regular legislative session, the Commission 
10must consult with appropriate legislative committees about the 
11State's economic development needs and opportunities in the 
12Latino community.
13 By October 1st of each even-numbered year, the Commission 
14must submit to the Governor and the General Assembly a biennial 
15comprehensive statewide economic development strategy for the 
16Latino community with a report on progress from the previous 
17comprehensive strategy.
18 The comprehensive statewide economic development strategy 
19may include, but is not limited to:
20  (1) an assessment of the Latino community's economic 
21 vitality;
22  (2) recommended goals, objectives, and priorities for 
23 the next biennium and the future;
24  (3) a common set of outcomes and benchmarks for the 
25 economic development system as a whole for the Latino 
26 community;
 
 
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1  (4) recommendations for removing barriers for Latinos 
2 in employment;
3  (5) an inventory of existing relevant programs 
4 compiled by the Commission from materials submitted by 
5 agencies;
6  (6) recommendations for expanding, discontinuing, or 
7 redirecting existing programs or adding new programs to 
8 better serve the Latino community; and
9  (7) recommendations of best practices and public and 
10 private sector roles in implementing the comprehensive 
11 statewide economic development strategy.
12 In developing the biennial statewide economic development 
13strategy, goals, objectives, priorities, and recommendations, 
14the Commission shall consult, collaborate, and coordinate with 
15relevant State agencies, private sector business, nonprofit 
16organizations involved in economic development, trade 
17associations, associate development organizations, and 
18relevant local organizations in order to avoid duplication of 
19effort.
20 State agencies shall cooperate with the Commission and 
21provide information as the Commission may reasonably request.
22 The Commission shall review and make budget 
23recommendations to the Governor's Office of Management and 
24Budget and the General Assembly in areas relating to the 
25economic development in the State's Latino community.
26 The Commission shall evaluate its own performance on a 
 
 
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1regular basis.
2 The Commission may accept gifts, grants, donations, 
3sponsorships, or contributions from any federal, State, or 
4local governmental agency or program, or any private source, 
5and expend the same for any purpose consistent with this 
6Section.
7 (b) The Commission shall consist of the following voting 
8members:
9  (1) 12 members appointed by the Governor, 4 of whom 
10 shall be appointed to serve an initial term of one year, 4 
11 of whom shall be appointed to serve an initial term of 2 
12 years, and 4 of whom shall be appointed to serve an initial 
13 term of 3 years; after the initial term, each member shall 
14 be appointed to a term of 3 years; members of the 
15 Commission shall serve at the pleasure of the Governor for 
16 not more than 2 consecutive 3-year terms; in appointing 
17 members, the Governor shall appoint individuals from the 
18 following private industry sectors:
19   (A) production agriculture;
20   (B) at least 2 individuals from manufacturing, one 
21 of whom shall represent a company with no more than 75 
22 employees;
23   (C) transportation, construction, and logistics;
24   (D) travel and tourism;
25   (E) financial services and insurance;
26   (F) information technology and communications; and
 
 
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1   (G) biotechnology;
2  (2) 2 members appointed by the Speaker of the House of 
3 Representatives, one of whom shall be appointed to serve an 
4 initial term of one year and one of whom shall be appointed 
5 to serve an initial term of 2 years;
6  (3) 2 members appointed by the President of the Senate, 
7 one of whom shall be appointed to serve an initial term of 
8 one year and one of whom shall be appointed to serve an 
9 initial term of 2 years;
10  (4) 2 members appointed by the Minority Leader of the 
11 House of Representatives, one of whom shall be appointed to 
12 serve an initial term of one year and one of whom shall be 
13 appointed to serve an initial term of 2 years; and
14  (5) 2 members appointed by the Minority Leader of the 
15 Senate, one of whom shall be appointed to serve an initial 
16 term of one year and one of whom shall be appointed to 
17 serve an initial term of 2 years. 
18 The members of the Commission shall choose a member to 
19serve as chair of the Commission. The members of the Commission 
20shall be representative, to the extent possible, of the various 
21geographic areas of the State. The Director shall serve as an 
22ad hoc nonvoting member of the Commission. Vacancies shall be 
23filled in the same manner as the original appointments. The 
24members of the Commission shall serve without compensation.
25 (c) The Commission shall meet at least 4 times per year, 
26with at least one meeting each calendar quarter, at the call of 
 
 
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1the director or 4 voting members of the Commission. The staff 
2and support for the Commission shall be provided by the 
3Department.
4 (d) The Commission and Department are encouraged to involve 
5other essential groups in the work of the Commission, 
6including, but not limited to:
7  (1) public universities;
8  (2) community colleges;
9  (3) other educational institutions; and
10  (4) the Department of Labor.
11 (e) The Commission shall make recommendations, which must 
12be approved by a majority of the members of the Commission, to 
13the Department concerning the award of grants from amounts 
14appropriated to the Department from the Latino Community 
15Economic Development Fund, a special fund in the State 
16treasury. The Department shall make grants to public or private 
17entities submitting proposals to the Commission to assist in 
18the economic development of the Latino community. Grants may be 
19used by these entities only for those purposes conditioned with 
20the grant. The Commission shall coordinate with the Department 
21to develop grant criteria.
22 (f) For the purposes of this Section:
23 "Department" means the Department of Commerce and Economic 
24Development.
25 "Director" means the Director of Commerce and Economic 
26Development.
 
 
10000SB0007ham003- 65 -LRB100 06307 SMS 40923 a


1 "Educational institutions" means nonprofit public and 
2private colleges, community colleges, State colleges, and 
3universities in this State.

4 Section 90-8. The Illinois Lottery Law is amended by 
5changing Section 9.1 as follows:

6 (20 ILCS 1605/9.1)
7 Sec. 9.1. Private manager and management agreement.
8 (a) As used in this Section:
9 "Offeror" means a person or group of persons that responds 
10to a request for qualifications under this Section.
11 "Request for qualifications" means all materials and 
12documents prepared by the Department to solicit the following 
13from offerors:
14  (1) Statements of qualifications.
15  (2) Proposals to enter into a management agreement, 
16 including the identity of any prospective vendor or vendors 
17 that the offeror intends to initially engage to assist the 
18 offeror in performing its obligations under the management 
19 agreement.
20 "Final offer" means the last proposal submitted by an 
21offeror in response to the request for qualifications, 
22including the identity of any prospective vendor or vendors 
23that the offeror intends to initially engage to assist the 
24offeror in performing its obligations under the management 
 
 
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1agreement. 
2 "Final offeror" means the offeror ultimately selected by 
3the Governor to be the private manager for the Lottery under 
4subsection (h) of this Section.
5 (b) By September 15, 2010, the Governor shall select a 
6private manager for the total management of the Lottery with 
7integrated functions, such as lottery game design, supply of 
8goods and services, and advertising and as specified in this 
9Section.
10 (c) Pursuant to the terms of this subsection, the 
11Department shall endeavor to expeditiously terminate the 
12existing contracts in support of the Lottery in effect on the 
13effective date of this amendatory Act of the 96th General 
14Assembly in connection with the selection of the private 
15manager. As part of its obligation to terminate these contracts 
16and select the private manager, the Department shall establish 
17a mutually agreeable timetable to transfer the functions of 
18existing contractors to the private manager so that existing 
19Lottery operations are not materially diminished or impaired 
20during the transition. To that end, the Department shall do the 
21following:
22  (1) where such contracts contain a provision 
23 authorizing termination upon notice, the Department shall 
24 provide notice of termination to occur upon the mutually 
25 agreed timetable for transfer of functions;
26  (2) upon the expiration of any initial term or renewal 
 
 
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1 term of the current Lottery contracts, the Department shall 
2 not renew such contract for a term extending beyond the 
3 mutually agreed timetable for transfer of functions; or
4  (3) in the event any current contract provides for 
5 termination of that contract upon the implementation of a 
6 contract with the private manager, the Department shall 
7 perform all necessary actions to terminate the contract on 
8 the date that coincides with the mutually agreed timetable 
9 for transfer of functions.
10 If the contracts to support the current operation of the 
11Lottery in effect on the effective date of this amendatory Act 
12of the 96th General Assembly are not subject to termination as 
13provided for in this subsection (c), then the Department may 
14include a provision in the contract with the private manager 
15specifying a mutually agreeable methodology for incorporation.
16 (c-5) The Department shall include provisions in the 
17management agreement whereby the private manager shall, for a 
18fee, and pursuant to a contract negotiated with the Department 
19(the "Employee Use Contract"), utilize the services of current 
20Department employees to assist in the administration and 
21operation of the Lottery. The Department shall be the employer 
22of all such bargaining unit employees assigned to perform such 
23work for the private manager, and such employees shall be State 
24employees, as defined by the Personnel Code. Department 
25employees shall operate under the same employment policies, 
26rules, regulations, and procedures, as other employees of the 
 
 
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1Department. In addition, neither historical representation 
2rights under the Illinois Public Labor Relations Act, nor 
3existing collective bargaining agreements, shall be disturbed 
4by the management agreement with the private manager for the 
5management of the Lottery. 
6 (d) The management agreement with the private manager shall 
7include all of the following:
8  (1) A term not to exceed 10 years, including any 
9 renewals.
10  (2) A provision specifying that the Department:
11   (A) shall exercise actual control over all 
12 significant business decisions; 
13   (A-5) has the authority to direct or countermand 
14 operating decisions by the private manager at any time;
15   (B) has ready access at any time to information 
16 regarding Lottery operations;
17   (C) has the right to demand and receive information 
18 from the private manager concerning any aspect of the 
19 Lottery operations at any time; and
20   (D) retains ownership of all trade names, 
21 trademarks, and intellectual property associated with 
22 the Lottery.
23  (3) A provision imposing an affirmative duty on the 
24 private manager to provide the Department with material 
25 information and with any information the private manager 
26 reasonably believes the Department would want to know to 
 
 
10000SB0007ham003- 69 -LRB100 06307 SMS 40923 a


1 enable the Department to conduct the Lottery.
2  (4) A provision requiring the private manager to 
3 provide the Department with advance notice of any operating 
4 decision that bears significantly on the public interest, 
5 including, but not limited to, decisions on the kinds of 
6 games to be offered to the public and decisions affecting 
7 the relative risk and reward of the games being offered, so 
8 the Department has a reasonable opportunity to evaluate and 
9 countermand that decision.
10  (5) A provision providing for compensation of the 
11 private manager that may consist of, among other things, a 
12 fee for services and a performance based bonus as 
13 consideration for managing the Lottery, including terms 
14 that may provide the private manager with an increase in 
15 compensation if Lottery revenues grow by a specified 
16 percentage in a given year.
17  (6) (Blank).
18  (7) A provision requiring the deposit of all Lottery 
19 proceeds to be deposited into the State Lottery Fund except 
20 as otherwise provided in Section 20 of this Act.
21  (8) A provision requiring the private manager to locate 
22 its principal office within the State.
23  (8-5) A provision encouraging that at least 20% of the 
24 cost of contracts entered into for goods and services by 
25 the private manager in connection with its management of 
26 the Lottery, other than contracts with sales agents or 
 
 
10000SB0007ham003- 70 -LRB100 06307 SMS 40923 a


1 technical advisors, be awarded to businesses that are a 
2 minority-owned business, a women-owned business, or a 
3 business owned by a person with disability, as those terms 
4 are defined in the Business Enterprise for Minorities, 
5 Women, and Persons with Disabilities Act. 
6  (9) A requirement that so long as the private manager 
7 complies with all the conditions of the agreement under the 
8 oversight of the Department, the private manager shall have 
9 the following duties and obligations with respect to the 
10 management of the Lottery:
11   (A) The right to use equipment and other assets 
12 used in the operation of the Lottery.
13   (B) The rights and obligations under contracts 
14 with retailers and vendors.
15   (C) The implementation of a comprehensive security 
16 program by the private manager.
17   (D) The implementation of a comprehensive system 
18 of internal audits.
19   (E) The implementation of a program by the private 
20 manager to curb compulsive gambling by persons playing 
21 the Lottery.
22   (F) A system for determining (i) the type of 
23 Lottery games, (ii) the method of selecting winning 
24 tickets, (iii) the manner of payment of prizes to 
25 holders of winning tickets, (iv) the frequency of 
26 drawings of winning tickets, (v) the method to be used 
 
 
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1 in selling tickets, (vi) a system for verifying the 
2 validity of tickets claimed to be winning tickets, 
3 (vii) the basis upon which retailer commissions are 
4 established by the manager, and (viii) minimum 
5 payouts.
6  (10) A requirement that advertising and promotion must 
7 be consistent with Section 7.8a of this Act.
8  (11) A requirement that the private manager market the 
9 Lottery to those residents who are new, infrequent, or 
10 lapsed players of the Lottery, especially those who are 
11 most likely to make regular purchases on the Internet as 
12 permitted by law.
13  (12) A code of ethics for the private manager's 
14 officers and employees.
15  (13) A requirement that the Department monitor and 
16 oversee the private manager's practices and take action 
17 that the Department considers appropriate to ensure that 
18 the private manager is in compliance with the terms of the 
19 management agreement, while allowing the manager, unless 
20 specifically prohibited by law or the management 
21 agreement, to negotiate and sign its own contracts with 
22 vendors.
23  (14) A provision requiring the private manager to 
24 periodically file, at least on an annual basis, appropriate 
25 financial statements in a form and manner acceptable to the 
26 Department.
 
 
10000SB0007ham003- 72 -LRB100 06307 SMS 40923 a


1  (15) Cash reserves requirements.
2  (16) Procedural requirements for obtaining the prior 
3 approval of the Department when a management agreement or 
4 an interest in a management agreement is sold, assigned, 
5 transferred, or pledged as collateral to secure financing.
6  (17) Grounds for the termination of the management 
7 agreement by the Department or the private manager.
8  (18) Procedures for amendment of the agreement.
9  (19) A provision requiring the private manager to 
10 engage in an open and competitive bidding process for any 
11 procurement having a cost in excess of $50,000 that is not 
12 a part of the private manager's final offer. The process 
13 shall favor the selection of a vendor deemed to have 
14 submitted a proposal that provides the Lottery with the 
15 best overall value. The process shall not be subject to the 
16 provisions of the Illinois Procurement Code, unless 
17 specifically required by the management agreement.
18  (20) The transition of rights and obligations, 
19 including any associated equipment or other assets used in 
20 the operation of the Lottery, from the manager to any 
21 successor manager of the lottery, including the 
22 Department, following the termination of or foreclosure 
23 upon the management agreement.
24  (21) Right of use of copyrights, trademarks, and 
25 service marks held by the Department in the name of the 
26 State. The agreement must provide that any use of them by 
 
 
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1 the manager shall only be for the purpose of fulfilling its 
2 obligations under the management agreement during the term 
3 of the agreement.
4  (22) The disclosure of any information requested by the 
5 Department to enable it to comply with the reporting 
6 requirements and information requests provided for under 
7 subsection (p) of this Section. 
8 (e) Notwithstanding any other law to the contrary, the 
9Department shall select a private manager through a competitive 
10request for qualifications process consistent with Section 
1120-35 of the Illinois Procurement Code, which shall take into 
12account:
13  (1) the offeror's ability to market the Lottery to 
14 those residents who are new, infrequent, or lapsed players 
15 of the Lottery, especially those who are most likely to 
16 make regular purchases on the Internet;
17  (2) the offeror's ability to address the State's 
18 concern with the social effects of gambling on those who 
19 can least afford to do so;
20  (3) the offeror's ability to provide the most 
21 successful management of the Lottery for the benefit of the 
22 people of the State based on current and past business 
23 practices or plans of the offeror; and
24  (4) the offeror's poor or inadequate past performance 
25 in servicing, equipping, operating or managing a lottery on 
26 behalf of Illinois, another State or foreign government and 
 
 
10000SB0007ham003- 74 -LRB100 06307 SMS 40923 a


1 attracting persons who are not currently regular players of 
2 a lottery.
3 (f) The Department may retain the services of an advisor or 
4advisors with significant experience in financial services or 
5the management, operation, and procurement of goods, services, 
6and equipment for a government-run lottery to assist in the 
7preparation of the terms of the request for qualifications and 
8selection of the private manager. Any prospective advisor 
9seeking to provide services under this subsection (f) shall 
10disclose any material business or financial relationship 
11during the past 3 years with any potential offeror, or with a 
12contractor or subcontractor presently providing goods, 
13services, or equipment to the Department to support the 
14Lottery. The Department shall evaluate the material business or 
15financial relationship of each prospective advisor. The 
16Department shall not select any prospective advisor with a 
17substantial business or financial relationship that the 
18Department deems to impair the objectivity of the services to 
19be provided by the prospective advisor. During the course of 
20the advisor's engagement by the Department, and for a period of 
21one year thereafter, the advisor shall not enter into any 
22business or financial relationship with any offeror or any 
23vendor identified to assist an offeror in performing its 
24obligations under the management agreement. Any advisor 
25retained by the Department shall be disqualified from being an 
26offeror.
The Department shall not include terms in the request 
 
 
10000SB0007ham003- 75 -LRB100 06307 SMS 40923 a


1for qualifications that provide a material advantage whether 
2directly or indirectly to any potential offeror, or any 
3contractor or subcontractor presently providing goods, 
4services, or equipment to the Department to support the 
5Lottery, including terms contained in previous responses to 
6requests for proposals or qualifications submitted to 
7Illinois, another State or foreign government when those terms 
8are uniquely associated with a particular potential offeror, 
9contractor, or subcontractor. The request for proposals 
10offered by the Department on December 22, 2008 as 
11"LOT08GAMESYS" and reference number "22016176" is declared 
12void.
13 (g) The Department shall select at least 2 offerors as 
14finalists to potentially serve as the private manager no later 
15than August 9, 2010. Upon making preliminary selections, the 
16Department shall schedule a public hearing on the finalists' 
17proposals and provide public notice of the hearing at least 7 
18calendar days before the hearing. The notice must include all 
19of the following:
20  (1) The date, time, and place of the hearing.
21  (2) The subject matter of the hearing.
22  (3) A brief description of the management agreement to 
23 be awarded.
24  (4) The identity of the offerors that have been 
25 selected as finalists to serve as the private manager.
26  (5) The address and telephone number of the Department.
 
 
10000SB0007ham003- 76 -LRB100 06307 SMS 40923 a


1 (h) At the public hearing, the Department shall (i) provide 
2sufficient time for each finalist to present and explain its 
3proposal to the Department and the Governor or the Governor's 
4designee, including an opportunity to respond to questions 
5posed by the Department, Governor, or designee and (ii) allow 
6the public and non-selected offerors to comment on the 
7presentations. The Governor or a designee shall attend the 
8public hearing. After the public hearing, the Department shall 
9have 14 calendar days to recommend to the Governor whether a 
10management agreement should be entered into with a particular 
11finalist. After reviewing the Department's recommendation, the 
12Governor may accept or reject the Department's recommendation, 
13and shall select a final offeror as the private manager by 
14publication of a notice in the Illinois Procurement Bulletin on 
15or before September 15, 2010. The Governor shall include in the 
16notice a detailed explanation and the reasons why the final 
17offeror is superior to other offerors and will provide 
18management services in a manner that best achieves the 
19objectives of this Section. The Governor shall also sign the 
20management agreement with the private manager.
21 (i) Any action to contest the private manager selected by 
22the Governor under this Section must be brought within 7 
23calendar days after the publication of the notice of the 
24designation of the private manager as provided in subsection 
25(h) of this Section.
26 (j) The Lottery shall remain, for so long as a private 
 
 
10000SB0007ham003- 77 -LRB100 06307 SMS 40923 a


1manager manages the Lottery in accordance with provisions of 
2this Act, a Lottery conducted by the State, and the State shall 
3not be authorized to sell or transfer the Lottery to a third 
4party.
5 (k) Any tangible personal property used exclusively in 
6connection with the lottery that is owned by the Department and 
7leased to the private manager shall be owned by the Department 
8in the name of the State and shall be considered to be public 
9property devoted to an essential public and governmental 
10function.
11 (l) The Department may exercise any of its powers under 
12this Section or any other law as necessary or desirable for the 
13execution of the Department's powers under this Section.
14 (m) Neither this Section nor any management agreement 
15entered into under this Section prohibits the General Assembly 
16from authorizing forms of gambling that are not in direct 
17competition with the Lottery. The forms of gambling authorized 
18by this amendatory Act of the 100th General Assembly constitute 
19authorized forms of gambling that are not in direct competition 
20with the Lottery.
21 (n) The private manager shall be subject to a complete 
22investigation in the third, seventh, and tenth years of the 
23agreement (if the agreement is for a 10-year term) by the 
24Department in cooperation with the Auditor General to determine 
25whether the private manager has complied with this Section and 
26the management agreement. The private manager shall bear the 
 
 
10000SB0007ham003- 78 -LRB100 06307 SMS 40923 a


1cost of an investigation or reinvestigation of the private 
2manager under this subsection.
3 (o) The powers conferred by this Section are in addition 
4and supplemental to the powers conferred by any other law. If 
5any other law or rule is inconsistent with this Section, 
6including, but not limited to, provisions of the Illinois 
7Procurement Code, then this Section controls as to any 
8management agreement entered into under this Section. This 
9Section and any rules adopted under this Section contain full 
10and complete authority for a management agreement between the 
11Department and a private manager. No law, procedure, 
12proceeding, publication, notice, consent, approval, order, or 
13act by the Department or any other officer, Department, agency, 
14or instrumentality of the State or any political subdivision is 
15required for the Department to enter into a management 
16agreement under this Section. This Section contains full and 
17complete authority for the Department to approve any contracts 
18entered into by a private manager with a vendor providing 
19goods, services, or both goods and services to the private 
20manager under the terms of the management agreement, including 
21subcontractors of such vendors.
22 Upon receipt of a written request from the Chief 
23Procurement Officer, the Department shall provide to the Chief 
24Procurement Officer a complete and un-redacted copy of the 
25management agreement or any contract that is subject to the 
26Department's approval authority under this subsection (o). The 
 
 
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1Department shall provide a copy of the agreement or contract to 
2the Chief Procurement Officer in the time specified by the 
3Chief Procurement Officer in his or her written request, but no 
4later than 5 business days after the request is received by the 
5Department. The Chief Procurement Officer must retain any 
6portions of the management agreement or of any contract 
7designated by the Department as confidential, proprietary, or 
8trade secret information in complete confidence pursuant to 
9subsection (g) of Section 7 of the Freedom of Information Act. 
10The Department shall also provide the Chief Procurement Officer 
11with reasonable advance written notice of any contract that is 
12pending Department approval. 
13 Notwithstanding any other provision of this Section to the 
14contrary, the Chief Procurement Officer shall adopt 
15administrative rules, including emergency rules, to establish 
16a procurement process to select a successor private manager if 
17a private management agreement has been terminated. The 
18selection process shall at a minimum take into account the 
19criteria set forth in items (1) through (4) of subsection (e) 
20of this Section and may include provisions consistent with 
21subsections (f), (g), (h), and (i) of this Section. The Chief 
22Procurement Officer shall also implement and administer the 
23adopted selection process upon the termination of a private 
24management agreement. The Department, after the Chief 
25Procurement Officer certifies that the procurement process has 
26been followed in accordance with the rules adopted under this 
 
 
10000SB0007ham003- 80 -LRB100 06307 SMS 40923 a


1subsection (o), shall select a final offeror as the private 
2manager and sign the management agreement with the private 
3manager. 
4 Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and 
521.9, the Department shall distribute all proceeds of lottery 
6tickets and shares sold in the following priority and manner:
7  (1) The payment of prizes and retailer bonuses.
8  (2) The payment of costs incurred in the operation and 
9 administration of the Lottery, including the payment of 
10 sums due to the private manager under the management 
11 agreement with the Department.
12  (3) On the last day of each month or as soon thereafter 
13 as possible, the State Comptroller shall direct and the 
14 State Treasurer shall transfer from the State Lottery Fund 
15 to the Common School Fund an amount that is equal to the 
16 proceeds transferred in the corresponding month of fiscal 
17 year 2009, as adjusted for inflation, to the Common School 
18 Fund.
19  (4) On or before the last day of each fiscal year, 
20 deposit any remaining proceeds, subject to payments under 
21 items (1), (2), and (3) into the Capital Projects Fund each 
22 fiscal year. 
23 (p) The Department shall be subject to the following 
24reporting and information request requirements:
25  (1) the Department shall submit written quarterly 
26 reports to the Governor and the General Assembly on the 
 
 
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1 activities and actions of the private manager selected 
2 under this Section;
3  (2) upon request of the Chief Procurement Officer, the 
4 Department shall promptly produce information related to 
5 the procurement activities of the Department and the 
6 private manager requested by the Chief Procurement 
7 Officer; the Chief Procurement Officer must retain 
8 confidential, proprietary, or trade secret information 
9 designated by the Department in complete confidence 
10 pursuant to subsection (g) of Section 7 of the Freedom of 
11 Information Act; and
12  (3) at least 30 days prior to the beginning of the 
13 Department's fiscal year, the Department shall prepare an 
14 annual written report on the activities of the private 
15 manager selected under this Section and deliver that report 
16 to the Governor and General Assembly.
17(Source: P.A. 99-933, eff. 1-27-17; 100-391, eff. 8-25-17.)

18 Section 90-10. The Department of Revenue Law of the
Civil 
19Administrative Code of Illinois is amended by changing Section 
202505-305 as follows:




21 (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)



22 Sec. 2505-305. Investigators. 

23 (a) The Department has the power to
appoint investigators 
24to conduct all investigations,
searches, seizures, arrests, 
 
 
10000SB0007ham003- 82 -LRB100 06307 SMS 40923 a


1and other duties imposed under the provisions
of any law 
2administered by the Department.
Except as provided in 
3subsection (c), these investigators have
and
may exercise all 
4the powers of peace officers solely for the purpose of

5enforcing taxing measures administered by the Department.

6 (b) The Director must authorize to each investigator 
7employed under this
Section and
to any other employee of the 
8Department exercising the powers of a peace
officer a
distinct 
9badge that, on its face, (i) clearly states that the badge is

10authorized
by the
Department and (ii)
contains a unique 
11identifying number.
No other badge shall be authorized by
the 
12Department.

13 (c) The Department may enter into agreements with the 
14Illinois Gaming Board providing that investigators appointed 
15under this Section shall exercise the peace officer powers set 
16forth in paragraph (20.6) of subsection (c) of Section 5 of the 
17Illinois Riverboat Gambling Act.


18(Source: P.A. 96-37, eff. 7-13-09.)


19 Section 90-12. The Illinois State Auditing Act is amended 
20by changing Section 3-1 as follows:




21 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)


22 Sec. 3-1. Jurisdiction of Auditor General. The Auditor 
23General has
jurisdiction over all State agencies to make post 
24audits and investigations
authorized by or under this Act or 
 
 
10000SB0007ham003- 83 -LRB100 06307 SMS 40923 a


1the Constitution.

2 The Auditor General has jurisdiction over local government 
3agencies
and private agencies only:


4  (a) to make such post audits authorized by or under 
5 this Act as are
necessary and incidental to a post audit of 
6 a State agency or of a
program administered by a State 
7 agency involving public funds of the
State, but this 
8 jurisdiction does not include any authority to review
local 
9 governmental agencies in the obligation, receipt, 
10 expenditure or
use of public funds of the State that are 
11 granted without limitation or
condition imposed by law, 
12 other than the general limitation that such
funds be used 
13 for public purposes;


14  (b) to make investigations authorized by or under this 
15 Act or the
Constitution; and


16  (c) to make audits of the records of local government 
17 agencies to verify
actual costs of state-mandated programs 
18 when directed to do so by the
Legislative Audit Commission 
19 at the request of the State Board of Appeals
under the 
20 State Mandates Act.

21 In addition to the foregoing, the Auditor General may 
22conduct an
audit of the Metropolitan Pier and Exposition 
23Authority, the
Regional Transportation Authority, the Suburban 
24Bus Division, the Commuter
Rail Division and the Chicago 
25Transit Authority and any other subsidized
carrier when 
26authorized by the Legislative Audit Commission. Such audit
may 
 
 
10000SB0007ham003- 84 -LRB100 06307 SMS 40923 a


1be a financial, management or program audit, or any combination 
2thereof.

3 The audit shall determine whether they are operating in 
4accordance with
all applicable laws and regulations. Subject to 
5the limitations of this
Act, the Legislative Audit Commission 
6may by resolution specify additional
determinations to be 
7included in the scope of the audit.

8 In addition to the foregoing, the Auditor General must also 
9conduct a
financial audit of
the Illinois Sports Facilities 
10Authority's expenditures of public funds in
connection with the 
11reconstruction, renovation, remodeling, extension, or

12improvement of all or substantially all of any existing 
13"facility", as that
term is defined in the Illinois Sports 
14Facilities Authority Act.

15 The Auditor General may also conduct an audit, when 
16authorized by
the Legislative Audit Commission, of any hospital 
17which receives 10% or
more of its gross revenues from payments 
18from the State of Illinois,
Department of Healthcare and Family 
19Services (formerly Department of Public Aid), Medical 
20Assistance Program.

21 The Auditor General is authorized to conduct financial and 
22compliance
audits of the Illinois Distance Learning Foundation 
23and the Illinois
Conservation Foundation.

24 As soon as practical after the effective date of this 
25amendatory Act of
1995, the Auditor General shall conduct a 
26compliance and management audit of
the City of
Chicago and any 
 
 
10000SB0007ham003- 85 -LRB100 06307 SMS 40923 a


1other entity with regard to the operation of Chicago O'Hare

2International Airport, Chicago Midway Airport and Merrill C. 
3Meigs Field. The
audit shall include, but not be limited to, an 
4examination of revenues,
expenses, and transfers of funds; 
5purchasing and contracting policies and
practices; staffing 
6levels; and hiring practices and procedures. When
completed, 
7the audit required by this paragraph shall be distributed in

8accordance with Section 3-14.

9 The Auditor General shall conduct a financial and 
10compliance and program
audit of distributions from the 
11Municipal Economic Development Fund
during the immediately 
12preceding calendar year pursuant to Section 8-403.1 of
the 
13Public Utilities Act at no cost to the city, village, or 
14incorporated town
that received the distributions.

15 The Auditor General must conduct an audit of the Health 
16Facilities and Services Review Board pursuant to Section 19.5 
17of the Illinois Health Facilities Planning
Act.

18 The Auditor General must conduct an audit of the Chicago 
19Casino Development Authority pursuant to Section 1-60 of the 
20Chicago Casino Development Authority Act. 
21 The Auditor General of the State of Illinois shall annually 
22conduct or
cause to be conducted a financial and compliance 
23audit of the books and records
of any county water commission 
24organized pursuant to the Water Commission Act
of 1985 and 
25shall file a copy of the report of that audit with the Governor 
26and
the Legislative Audit Commission. The filed audit shall be 
 
 
10000SB0007ham003- 86 -LRB100 06307 SMS 40923 a


1open to the public
for inspection. The cost of the audit shall 
2be charged to the county water
commission in accordance with 
3Section 6z-27 of the State Finance Act. The
county water 
4commission shall make available to the Auditor General its 
5books
and records and any other documentation, whether in the 
6possession of its
trustees or other parties, necessary to 
7conduct the audit required. These
audit requirements apply only 
8through July 1, 2007.

9 The Auditor General must conduct audits of the Rend Lake 
10Conservancy
District as provided in Section 25.5 of the River 
11Conservancy Districts Act.

12 The Auditor General must conduct financial audits of the 
13Southeastern Illinois Economic Development Authority as 
14provided in Section 70 of the Southeastern Illinois Economic 
15Development Authority Act.

16 The Auditor General shall conduct a compliance audit in 
17accordance with subsections (d) and (f) of Section 30 of the 
18Innovation Development and Economy Act. 
19(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09; 
2096-939, eff. 6-24-10.)


21 Section 90-15. The State Finance Act is amended by adding 
22Sections 5.886, 5.887, 5.888, and 6z-105 and by changing 
23Section 6z-45 as follows:

24 (30 ILCS 105/5.886 new)
 
 
10000SB0007ham003- 87 -LRB100 06307 SMS 40923 a


1 Sec. 5.886. The Gaming Facilities Fee Revenue Fund.

2 (30 ILCS 105/5.887 new)
3 Sec. 5.887. The Depressed Communities Economic Development 
4Fund.

5 (30 ILCS 105/5.888 new)
6 Sec. 5.888. The Latino Community Economic Development 
7Fund.




8 (30 ILCS 105/6z-45)



9 Sec. 6z-45. The School Infrastructure Fund. 

10 (a) The School Infrastructure Fund is created as a special 
11fund
in the State Treasury.

12 In addition to any other deposits authorized by law, 
13beginning January
1, 2000, on the first day of each month, or 
14as soon thereafter as may be
practical, the State Treasurer and 
15State Comptroller shall transfer the sum of
$5,000,000 from the 
16General Revenue Fund to the School Infrastructure Fund, except 
17that, notwithstanding any other provision of law, and in 
18addition to any other transfers that may be provided for by 
19law, before June 30, 2012, the Comptroller and the Treasurer 
20shall transfer $45,000,000 from the General Revenue Fund into 
21the School Infrastructure Fund, and, for fiscal year 2013 only, 
22the Treasurer and the Comptroller shall transfer $1,250,000 
23from the General Revenue Fund to the School Infrastructure Fund 
 
 
10000SB0007ham003- 88 -LRB100 06307 SMS 40923 a


1on the first day of each month;
provided, however, that no such 
2transfers shall be made from July 1, 2001
through June 30, 
32003.

4 (a-5) Money in the School Infrastructure Fund may be used 
5to pay the expenses of the State Board of Education, the 
6Governor's Office of Management and Budget, and the Capital 
7Development Board in administering programs under the School 
8Construction Law, the total expenses not to exceed $1,315,000 
9in any fiscal year. 
10 (b) Subject to the transfer provisions set forth below, 
11money in the
School Infrastructure Fund shall, if and when the 
12State of Illinois incurs
any bonded indebtedness for the 
13construction of school improvements under subsection (e) of 
14Section 5 of the General Obligation Bond Act, be set aside and 
15used for the purpose of
paying and discharging annually the 
16principal and interest on that bonded
indebtedness then due and 
17payable, and for no other purpose.

18 In addition to other transfers to the General Obligation 
19Bond Retirement and
Interest Fund made pursuant to Section 15 
20of the General Obligation Bond Act,
upon each delivery of bonds 
21issued for construction of school improvements
under the School 
22Construction Law, the State Comptroller shall
compute and 
23certify to the State Treasurer the total amount of principal 
24of,
interest on, and premium, if any, on such bonds during the 
25then current and
each succeeding fiscal year.
With respect to 
26the interest payable on variable rate bonds, such

 
 
10000SB0007ham003- 89 -LRB100 06307 SMS 40923 a


1certifications shall be calculated at the maximum rate of 
2interest that
may be payable during the fiscal year, after 
3taking into account any credits
permitted in the related 
4indenture or other instrument against the amount of
such 
5interest required to be appropriated for that period.

6 On or before the last day of each month, the State 
7Treasurer and State
Comptroller shall transfer from the School 
8Infrastructure Fund to the General
Obligation Bond Retirement 
9and Interest Fund an amount sufficient to pay the
aggregate of 
10the principal of, interest on, and premium, if any, on the 
11bonds
payable on their next payment date, divided by the number 
12of monthly transfers
occurring between the last previous 
13payment date (or the delivery date if no
payment date has yet 
14occurred) and the next succeeding payment date.
Interest 
15payable on variable rate bonds shall be calculated at the 
16maximum
rate of interest that may be payable for the relevant 
17period, after taking into
account any credits permitted in the 
18related indenture or other instrument
against the amount of 
19such interest required to be appropriated for that
period.

20Interest for which moneys have already been deposited into the 
21capitalized
interest account within the General Obligation 
22Bond Retirement and Interest
Fund shall not be included in the 
23calculation of the amounts to be transferred
under this 
24subsection. 

25 (b-5) The money deposited into the School Infrastructure 
26Fund from transfers pursuant to subsections (c-30) and (c-35) 
 
 
10000SB0007ham003- 90 -LRB100 06307 SMS 40923 a


1of Section 13 of the Illinois Riverboat Gambling Act shall be 
2applied, without further direction, as provided in subsection 
3(b-3) of Section 5-35 of the School Construction Law. 
4 (c) The surplus, if any, in the School Infrastructure Fund 
5after payments made pursuant to subsections (a-5), (b), and 
6(b-5) of this Section shall, subject to appropriation, be used 
7as follows:

8 First - to make 3 payments to the School Technology 
9Revolving Loan Fund as
follows:

10  Transfer of $30,000,000 in fiscal year 1999;

11  Transfer of $20,000,000 in fiscal year 2000; and 

12  Transfer of $10,000,000 in fiscal year 2001.

13 Second - to pay any amounts due for grants for school 
14construction projects
and debt service under the School 
15Construction Law.

16 Third - to pay any amounts due for grants for school 
17maintenance projects
under the School Construction Law.

18(Source: P.A. 100-23, eff. 7-6-17.)


19 (30 ILCS 105/6z-105 new)
20 Sec. 6z-105. The Gaming Facilities Fee Revenue Fund.
21 (a) The Gaming Facilities Fee Revenue Fund is created as a 
22special fund in the State treasury.
23 (b) The revenues in the Fund shall be used, subject to 
24appropriation, by the Comptroller for the purpose of providing 
25appropriations to the Illinois Gaming Board for the 
 
 
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1administration and enforcement of the Illinois Gambling Act and 
2the applicable provisions of the Chicago Casino Development 
3Authority Act, with any remaining amounts transferred in equal 
4amounts to the State Construction Account Fund, the Pension 
5Stabilization Fund, and the Common School Fund.
6 (c) The Fund shall consist of fee revenues received 
7pursuant to subsection (a) of Section 1-45 of the Chicago 
8Casino Development Authority Act and pursuant to subsections 
9(e-10), (e-15), (h), and (h-5) of Section 7 and subsections 
10(b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling 
11Act. All interest earned on moneys in the Fund shall be 
12deposited into the Fund.
13 (d) Except as otherwise provided in Section 6z-27 of the 
14State Finance Act, the Fund shall not be subject to 
15administrative charges or chargebacks, including, but not 
16limited to, those authorized under subsection (h) of Section 8 
17of this Act.

18 Section 90-20. The Illinois Income Tax Act is amended by 
19changing Sections 201, 303, 304 and 710 as follows:

20 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
21 Sec. 201. Tax imposed. 
22 (a) In general. A tax measured by net income is hereby 
23imposed on every
individual, corporation, trust and estate for 
24each taxable year ending
after July 31, 1969 on the privilege 
 
 
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1of earning or receiving income in or
as a resident of this 
2State. Such tax shall be in addition to all other
occupation or 
3privilege taxes imposed by this State or by any municipal

4corporation or political subdivision thereof.
5 (b) Rates. The tax imposed by subsection (a) of this 
6Section shall be
determined as follows, except as adjusted by 
7subsection (d-1):
8  (1) In the case of an individual, trust or estate, for 
9 taxable years
ending prior to July 1, 1989, an amount equal 
10 to 2 1/2% of the taxpayer's
net income for the taxable 
11 year.
12  (2) In the case of an individual, trust or estate, for 
13 taxable years
beginning prior to July 1, 1989 and ending 
14 after June 30, 1989, an amount
equal to the sum of (i) 2 
15 1/2% of the taxpayer's net income for the period
prior to 
16 July 1, 1989, as calculated under Section 202.3, and (ii) 
17 3% of the
taxpayer's net income for the period after June 
18 30, 1989, as calculated
under Section 202.3.
19  (3) In the case of an individual, trust or estate, for 
20 taxable years
beginning after June 30, 1989, and ending 
21 prior to January 1, 2011, an amount equal to 3% of the 
22 taxpayer's net
income for the taxable year.
23  (4) In the case of an individual, trust, or estate, for 
24 taxable years beginning prior to January 1, 2011, and 
25 ending after December 31, 2010, an amount equal to the sum 
26 of (i) 3% of the taxpayer's net income for the period prior 
 
 
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1 to January 1, 2011, as calculated under Section 202.5, and 
2 (ii) 5% of the taxpayer's net income for the period after 
3 December 31, 2010, as calculated under Section 202.5.
4  (5) In the case of an individual, trust, or estate, for 
5 taxable years beginning on or after January 1, 2011, and 
6 ending prior to January 1, 2015, an amount equal to 5% of 
7 the taxpayer's net income for the taxable year.
8  (5.1) In the case of an individual, trust, or estate, 
9 for taxable years beginning prior to January 1, 2015, and 
10 ending after December 31, 2014, an amount equal to the sum 
11 of (i) 5% of the taxpayer's net income for the period prior 
12 to January 1, 2015, as calculated under Section 202.5, and 
13 (ii) 3.75% of the taxpayer's net income for the period 
14 after December 31, 2014, as calculated under Section 202.5. 
15  (5.2) In the case of an individual, trust, or estate, 
16 for taxable years beginning on or after January 1, 2015, 
17 and ending prior to July 1, 2017, an amount equal to 3.75% 
18 of the taxpayer's net income for the taxable year. 
19  (5.3) In the case of an individual, trust, or estate, 
20 for taxable years beginning prior to July 1, 2017, and 
21 ending after June 30, 2017, an amount equal to the sum of 
22 (i) 3.75% of the taxpayer's net income for the period prior 
23 to July 1, 2017, as calculated under Section 202.5, and 
24 (ii) 4.95% of the taxpayer's net income for the period 
25 after June 30, 2017, as calculated under Section 202.5. 
26  (5.4) In the case of an individual, trust, or estate, 
 
 
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1 for taxable years beginning on or after July 1, 2017, an 
2 amount equal to 4.95% of the taxpayer's net income for the 
3 taxable year. 
4  (6) In the case of a corporation, for taxable years

5 ending prior to July 1, 1989, an amount equal to 4% of the

6 taxpayer's net income for the taxable year.
7  (7) In the case of a corporation, for taxable years 
8 beginning prior to
July 1, 1989 and ending after June 30, 
9 1989, an amount equal to the sum of
(i) 4% of the 
10 taxpayer's net income for the period prior to July 1, 1989,

11 as calculated under Section 202.3, and (ii) 4.8% of the 
12 taxpayer's net
income for the period after June 30, 1989, 
13 as calculated under Section
202.3.
14  (8) In the case of a corporation, for taxable years 
15 beginning after
June 30, 1989, and ending prior to January 
16 1, 2011, an amount equal to 4.8% of the taxpayer's net 
17 income for the
taxable year.
18  (9) In the case of a corporation, for taxable years 
19 beginning prior to January 1, 2011, and ending after 
20 December 31, 2010, an amount equal to the sum of (i) 4.8% 
21 of the taxpayer's net income for the period prior to 
22 January 1, 2011, as calculated under Section 202.5, and 
23 (ii) 7% of the taxpayer's net income for the period after 
24 December 31, 2010, as calculated under Section 202.5. 
25  (10) In the case of a corporation, for taxable years 
26 beginning on or after January 1, 2011, and ending prior to 
 
 
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1 January 1, 2015, an amount equal to 7% of the taxpayer's 
2 net income for the taxable year. 
3  (11) In the case of a corporation, for taxable years 
4 beginning prior to January 1, 2015, and ending after 
5 December 31, 2014, an amount equal to the sum of (i) 7% of 
6 the taxpayer's net income for the period prior to January 
7 1, 2015, as calculated under Section 202.5, and (ii) 5.25% 
8 of the taxpayer's net income for the period after December 
9 31, 2014, as calculated under Section 202.5. 
10  (12) In the case of a corporation, for taxable years 
11 beginning on or after January 1, 2015, and ending prior to 
12 July 1, 2017, an amount equal to 5.25% of the taxpayer's 
13 net income for the taxable year. 
14  (13) In the case of a corporation, for taxable years 
15 beginning prior to July 1, 2017, and ending after June 30, 
16 2017, an amount equal to the sum of (i) 5.25% of the 
17 taxpayer's net income for the period prior to July 1, 2017, 
18 as calculated under Section 202.5, and (ii) 7% of the 
19 taxpayer's net income for the period after June 30, 2017, 
20 as calculated under Section 202.5. 
21  (14) In the case of a corporation, for taxable years 
22 beginning on or after July 1, 2017, an amount equal to 7% 
23 of the taxpayer's net income for the taxable year. 
24 The rates under this subsection (b) are subject to the 
25provisions of Section 201.5. 
26 (b-5) Surcharge; sale or exchange of assets, properties, 
 
 
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1and intangibles of organization gaming licensees. For each of 
2taxable years 2018 through 2026, a surcharge is imposed on all 
3taxpayers on income arising from the sale or exchange of 
4capital assets, depreciable business property, real property 
5used in the trade or business, and Section 197 intangibles (i) 
6of an organization licensee under the Illinois Horse Racing Act 
7of 1975 and (ii) of an organization gaming licensee under the 
8Illinois Gambling Act. The amount of the surcharge is equal to 
9the amount of federal income tax liability for the taxable year 
10attributable to those sales and exchanges. The surcharge 
11imposed shall not apply if: 
12  (1) the organization gaming license, organization 
13 license, or racetrack property is transferred as a result 
14 of any of the following:
15   (A) bankruptcy, a receivership, or a debt 
16 adjustment initiated by or against the initial 
17 licensee or the substantial owners of the initial 
18 licensee;
19   (B) cancellation, revocation, or termination of 
20 any such license by the Illinois Gaming Board or the 
21 Illinois Racing Board;
22   (C) a determination by the Illinois Gaming Board 
23 that transfer of the license is in the best interests 
24 of Illinois gaming;
25   (D) the death of an owner of the equity interest in 
26 a licensee;
 
 
10000SB0007ham003- 97 -LRB100 06307 SMS 40923 a


1   (E) the acquisition of a controlling interest in 
2 the stock or substantially all of the assets of a 
3 publicly traded company;
4   (F) a transfer by a parent company to a wholly 
5 owned subsidiary; or
6   (G) the transfer or sale to or by one person to 
7 another person where both persons were initial owners 
8 of the license when the license was issued; or 
9  (2) the controlling interest in the organization 
10 gaming license, organization license, or racetrack 
11 property is transferred in a transaction to lineal 
12 descendants in which no gain or loss is recognized or as a 
13 result of a transaction in accordance with Section 351 of 
14 the Internal Revenue Code in which no gain or loss is 
15 recognized; or
16  (3) live horse racing was not conducted in 2010 at a 
17 racetrack located within 3 miles of the Mississippi River 
18 under a license issued pursuant to the Illinois Horse 
19 Racing Act of 1975. 
20 The transfer of an organization gaming license, 
21organization license, or racetrack property by a person other 
22than the initial licensee to receive the organization gaming 
23license is not subject to a surcharge. The Department shall 
24adopt rules necessary to implement and administer this 
25subsection. 
26 (c) Personal Property Tax Replacement Income Tax.

 
 
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1Beginning on July 1, 1979 and thereafter, in addition to such 
2income
tax, there is also hereby imposed the Personal Property 
3Tax Replacement
Income Tax measured by net income on every 
4corporation (including Subchapter
S corporations), partnership 
5and trust, for each taxable year ending after
June 30, 1979. 
6Such taxes are imposed on the privilege of earning or
receiving 
7income in or as a resident of this State. The Personal Property

8Tax Replacement Income Tax shall be in addition to the income 
9tax imposed
by subsections (a) and (b) of this Section and in 
10addition to all other
occupation or privilege taxes imposed by 
11this State or by any municipal
corporation or political 
12subdivision thereof.
13 (d) Additional Personal Property Tax Replacement Income 
14Tax Rates.
The personal property tax replacement income tax 
15imposed by this subsection
and subsection (c) of this Section 
16in the case of a corporation, other
than a Subchapter S 
17corporation and except as adjusted by subsection (d-1),
shall 
18be an additional amount equal to
2.85% of such taxpayer's net 
19income for the taxable year, except that
beginning on January 
201, 1981, and thereafter, the rate of 2.85% specified
in this 
21subsection shall be reduced to 2.5%, and in the case of a

22partnership, trust or a Subchapter S corporation shall be an 
23additional
amount equal to 1.5% of such taxpayer's net income 
24for the taxable year.
25 (d-1) Rate reduction for certain foreign insurers. In the 
26case of a
foreign insurer, as defined by Section 35A-5 of the 
 
 
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1Illinois Insurance Code,
whose state or country of domicile 
2imposes on insurers domiciled in Illinois
a retaliatory tax 
3(excluding any insurer
whose premiums from reinsurance assumed 
4are 50% or more of its total insurance
premiums as determined 
5under paragraph (2) of subsection (b) of Section 304,
except 
6that for purposes of this determination premiums from 
7reinsurance do
not include premiums from inter-affiliate 
8reinsurance arrangements),
beginning with taxable years ending 
9on or after December 31, 1999,
the sum of
the rates of tax 
10imposed by subsections (b) and (d) shall be reduced (but not

11increased) to the rate at which the total amount of tax imposed 
12under this Act,
net of all credits allowed under this Act, 
13shall equal (i) the total amount of
tax that would be imposed 
14on the foreign insurer's net income allocable to
Illinois for 
15the taxable year by such foreign insurer's state or country of

16domicile if that net income were subject to all income taxes 
17and taxes
measured by net income imposed by such foreign 
18insurer's state or country of
domicile, net of all credits 
19allowed or (ii) a rate of zero if no such tax is
imposed on such 
20income by the foreign insurer's state of domicile.
For the 
21purposes of this subsection (d-1), an inter-affiliate includes 
22a
mutual insurer under common management.
23  (1) For the purposes of subsection (d-1), in no event 
24 shall the sum of the
rates of tax imposed by subsections 
25 (b) and (d) be reduced below the rate at
which the sum of:
26   (A) the total amount of tax imposed on such foreign 
 
 
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1 insurer under
this Act for a taxable year, net of all 
2 credits allowed under this Act, plus
3   (B) the privilege tax imposed by Section 409 of the 
4 Illinois Insurance
Code, the fire insurance company 
5 tax imposed by Section 12 of the Fire
Investigation 
6 Act, and the fire department taxes imposed under 
7 Section 11-10-1
of the Illinois Municipal Code,
8 equals 1.25% for taxable years ending prior to December 31, 
9 2003, or
1.75% for taxable years ending on or after 
10 December 31, 2003, of the net
taxable premiums written for 
11 the taxable year,
as described by subsection (1) of Section 
12 409 of the Illinois Insurance Code.
This paragraph will in 
13 no event increase the rates imposed under subsections
(b) 
14 and (d).
15  (2) Any reduction in the rates of tax imposed by this 
16 subsection shall be
applied first against the rates imposed 
17 by subsection (b) and only after the
tax imposed by 
18 subsection (a) net of all credits allowed under this 
19 Section
other than the credit allowed under subsection (i) 
20 has been reduced to zero,
against the rates imposed by 
21 subsection (d).
22 This subsection (d-1) is exempt from the provisions of 
23Section 250.
24 (e) Investment credit. A taxpayer shall be allowed a credit

25against the Personal Property Tax Replacement Income Tax for

26investment in qualified property.
 
 
10000SB0007ham003- 101 -LRB100 06307 SMS 40923 a


1  (1) A taxpayer shall be allowed a credit equal to .5% 
2 of
the basis of qualified property placed in service during 
3 the taxable year,
provided such property is placed in 
4 service on or after
July 1, 1984. There shall be allowed an 
5 additional credit equal
to .5% of the basis of qualified 
6 property placed in service during the
taxable year, 
7 provided such property is placed in service on or
after 
8 July 1, 1986, and the taxpayer's base employment
within 
9 Illinois has increased by 1% or more over the preceding 
10 year as
determined by the taxpayer's employment records 
11 filed with the
Illinois Department of Employment Security. 
12 Taxpayers who are new to
Illinois shall be deemed to have 
13 met the 1% growth in base employment for
the first year in 
14 which they file employment records with the Illinois

15 Department of Employment Security. The provisions added to 
16 this Section by
Public Act 85-1200 (and restored by Public 
17 Act 87-895) shall be
construed as declaratory of existing 
18 law and not as a new enactment. If,
in any year, the 
19 increase in base employment within Illinois over the

20 preceding year is less than 1%, the additional credit shall 
21 be limited to that
percentage times a fraction, the 
22 numerator of which is .5% and the denominator
of which is 
23 1%, but shall not exceed .5%. The investment credit shall 
24 not be
allowed to the extent that it would reduce a 
25 taxpayer's liability in any tax
year below zero, nor may 
26 any credit for qualified property be allowed for any
year 
 
 
10000SB0007ham003- 102 -LRB100 06307 SMS 40923 a


1 other than the year in which the property was placed in 
2 service in
Illinois. For tax years ending on or after 
3 December 31, 1987, and on or
before December 31, 1988, the 
4 credit shall be allowed for the tax year in
which the 
5 property is placed in service, or, if the amount of the 
6 credit
exceeds the tax liability for that year, whether it 
7 exceeds the original
liability or the liability as later 
8 amended, such excess may be carried
forward and applied to 
9 the tax liability of the 5 taxable years following
the 
10 excess credit years if the taxpayer (i) makes investments 
11 which cause
the creation of a minimum of 2,000 full-time 
12 equivalent jobs in Illinois,
(ii) is located in an 
13 enterprise zone established pursuant to the Illinois

14 Enterprise Zone Act and (iii) is certified by the 
15 Department of Commerce
and Community Affairs (now 
16 Department of Commerce and Economic Opportunity) as 
17 complying with the requirements specified in
clause (i) and 
18 (ii) by July 1, 1986. The Department of Commerce and

19 Community Affairs (now Department of Commerce and Economic 
20 Opportunity) shall notify the Department of Revenue of all 
21 such
certifications immediately. For tax years ending 
22 after December 31, 1988,
the credit shall be allowed for 
23 the tax year in which the property is
placed in service, 
24 or, if the amount of the credit exceeds the tax
liability 
25 for that year, whether it exceeds the original liability or 
26 the
liability as later amended, such excess may be carried 
 
 
10000SB0007ham003- 103 -LRB100 06307 SMS 40923 a


1 forward and applied
to the tax liability of the 5 taxable 
2 years following the excess credit
years. The credit shall 
3 be applied to the earliest year for which there is
a 
4 liability. If there is credit from more than one tax year 
5 that is
available to offset a liability, earlier credit 
6 shall be applied first.
7  (2) The term "qualified property" means property 
8 which:
9   (A) is tangible, whether new or used, including 
10 buildings and structural
components of buildings and 
11 signs that are real property, but not including
land or 
12 improvements to real property that are not a structural 
13 component of a
building such as landscaping, sewer 
14 lines, local access roads, fencing, parking
lots, and 
15 other appurtenances;
16   (B) is depreciable pursuant to Section 167 of the 
17 Internal Revenue Code,
except that "3-year property" 
18 as defined in Section 168(c)(2)(A) of that
Code is not 
19 eligible for the credit provided by this subsection 
20 (e);
21   (C) is acquired by purchase as defined in Section 
22 179(d) of
the Internal Revenue Code;
23   (D) is used in Illinois by a taxpayer who is 
24 primarily engaged in
manufacturing, or in mining coal 
25 or fluorite, or in retailing, or was placed in service 
26 on or after July 1, 2006 in a River Edge Redevelopment 
 
 
10000SB0007ham003- 104 -LRB100 06307 SMS 40923 a


1 Zone established pursuant to the River Edge 
2 Redevelopment Zone Act; and
3   (E) has not previously been used in Illinois in 
4 such a manner and by
such a person as would qualify for 
5 the credit provided by this subsection
(e) or 
6 subsection (f).
7  (3) For purposes of this subsection (e), 
8 "manufacturing" means
the material staging and production 
9 of tangible personal property by
procedures commonly 
10 regarded as manufacturing, processing, fabrication, or

11 assembling which changes some existing material into new 
12 shapes, new
qualities, or new combinations. For purposes of 
13 this subsection
(e) the term "mining" shall have the same 
14 meaning as the term "mining" in
Section 613(c) of the 
15 Internal Revenue Code. For purposes of this subsection
(e), 
16 the term "retailing" means the sale of tangible personal 
17 property for use or consumption and not for resale, or

18 services rendered in conjunction with the sale of tangible 
19 personal property for use or consumption and not for 
20 resale. For purposes of this subsection (e), "tangible 
21 personal property" has the same meaning as when that term 
22 is used in the Retailers' Occupation Tax Act, and, for 
23 taxable years ending after December 31, 2008, does not 
24 include the generation, transmission, or distribution of 
25 electricity.
26  (4) The basis of qualified property shall be the basis

 
 
10000SB0007ham003- 105 -LRB100 06307 SMS 40923 a


1 used to compute the depreciation deduction for federal 
2 income tax purposes.
3  (5) If the basis of the property for federal income tax 
4 depreciation
purposes is increased after it has been placed 
5 in service in Illinois by
the taxpayer, the amount of such 
6 increase shall be deemed property placed
in service on the 
7 date of such increase in basis.
8  (6) The term "placed in service" shall have the same

9 meaning as under Section 46 of the Internal Revenue Code.
10  (7) If during any taxable year, any property ceases to

11 be qualified property in the hands of the taxpayer within 
12 48 months after
being placed in service, or the situs of 
13 any qualified property is
moved outside Illinois within 48 
14 months after being placed in service, the
Personal Property 
15 Tax Replacement Income Tax for such taxable year shall be

16 increased. Such increase shall be determined by (i) 
17 recomputing the
investment credit which would have been 
18 allowed for the year in which
credit for such property was 
19 originally allowed by eliminating such
property from such 
20 computation and, (ii) subtracting such recomputed credit

21 from the amount of credit previously allowed. For the 
22 purposes of this
paragraph (7), a reduction of the basis of 
23 qualified property resulting
from a redetermination of the 
24 purchase price shall be deemed a disposition
of qualified 
25 property to the extent of such reduction.
26  (8) Unless the investment credit is extended by law, 
 
 
10000SB0007ham003- 106 -LRB100 06307 SMS 40923 a


1 the
basis of qualified property shall not include costs 
2 incurred after
December 31, 2018, except for costs incurred 
3 pursuant to a binding
contract entered into on or before 
4 December 31, 2018.
5  (9) Each taxable year ending before December 31, 2000, 
6 a partnership may
elect to pass through to its
partners the 
7 credits to which the partnership is entitled under this 
8 subsection
(e) for the taxable year. A partner may use the 
9 credit allocated to him or her
under this paragraph only 
10 against the tax imposed in subsections (c) and (d) of
this 
11 Section. If the partnership makes that election, those 
12 credits shall be
allocated among the partners in the 
13 partnership in accordance with the rules
set forth in 
14 Section 704(b) of the Internal Revenue Code, and the rules

15 promulgated under that Section, and the allocated amount of 
16 the credits shall
be allowed to the partners for that 
17 taxable year. The partnership shall make
this election on 
18 its Personal Property Tax Replacement Income Tax return for

19 that taxable year. The election to pass through the credits 
20 shall be
irrevocable.
21  For taxable years ending on or after December 31, 2000, 
22 a
partner that qualifies its
partnership for a subtraction 
23 under subparagraph (I) of paragraph (2) of
subsection (d) 
24 of Section 203 or a shareholder that qualifies a Subchapter 
25 S
corporation for a subtraction under subparagraph (S) of 
26 paragraph (2) of
subsection (b) of Section 203 shall be 
 
 
10000SB0007ham003- 107 -LRB100 06307 SMS 40923 a


1 allowed a credit under this subsection
(e) equal to its 
2 share of the credit earned under this subsection (e) during

3 the taxable year by the partnership or Subchapter S 
4 corporation, determined in
accordance with the 
5 determination of income and distributive share of
income 
6 under Sections 702 and 704 and Subchapter S of the Internal 
7 Revenue
Code. This paragraph is exempt from the provisions 
8 of Section 250.
9 (f) Investment credit; Enterprise Zone; River Edge 
10Redevelopment Zone.
11  (1) A taxpayer shall be allowed a credit against the 
12 tax imposed
by subsections (a) and (b) of this Section for 
13 investment in qualified
property which is placed in service 
14 in an Enterprise Zone created
pursuant to the Illinois 
15 Enterprise Zone Act or, for property placed in service on 
16 or after July 1, 2006, a River Edge Redevelopment Zone 
17 established pursuant to the River Edge Redevelopment Zone 
18 Act. For partners, shareholders
of Subchapter S 
19 corporations, and owners of limited liability companies,

20 if the liability company is treated as a partnership for 
21 purposes of
federal and State income taxation, there shall 
22 be allowed a credit under
this subsection (f) to be 
23 determined in accordance with the determination
of income 
24 and distributive share of income under Sections 702 and 704 
25 and
Subchapter S of the Internal Revenue Code. The credit 
26 shall be .5% of the
basis for such property. The credit 
 
 
10000SB0007ham003- 108 -LRB100 06307 SMS 40923 a


1 shall be available only in the taxable
year in which the 
2 property is placed in service in the Enterprise Zone or 
3 River Edge Redevelopment Zone and
shall not be allowed to 
4 the extent that it would reduce a taxpayer's
liability for 
5 the tax imposed by subsections (a) and (b) of this Section 
6 to
below zero. For tax years ending on or after December 
7 31, 1985, the credit
shall be allowed for the tax year in 
8 which the property is placed in
service, or, if the amount 
9 of the credit exceeds the tax liability for that
year, 
10 whether it exceeds the original liability or the liability 
11 as later
amended, such excess may be carried forward and 
12 applied to the tax
liability of the 5 taxable years 
13 following the excess credit year.
The credit shall be 
14 applied to the earliest year for which there is a

15 liability. If there is credit from more than one tax year 
16 that is available
to offset a liability, the credit 
17 accruing first in time shall be applied
first.
18  (2) The term qualified property means property which:
19   (A) is tangible, whether new or used, including 
20 buildings and
structural components of buildings;
21   (B) is depreciable pursuant to Section 167 of the 
22 Internal Revenue
Code, except that "3-year property" 
23 as defined in Section 168(c)(2)(A) of
that Code is not 
24 eligible for the credit provided by this subsection 
25 (f);
26   (C) is acquired by purchase as defined in Section 
 
 
10000SB0007ham003- 109 -LRB100 06307 SMS 40923 a


1 179(d) of
the Internal Revenue Code;
2   (D) is used in the Enterprise Zone or River Edge 
3 Redevelopment Zone by the taxpayer; and
4   (E) has not been previously used in Illinois in 
5 such a manner and by
such a person as would qualify for 
6 the credit provided by this subsection
(f) or 
7 subsection (e).
8  (3) The basis of qualified property shall be the basis 
9 used to compute
the depreciation deduction for federal 
10 income tax purposes.
11  (4) If the basis of the property for federal income tax 
12 depreciation
purposes is increased after it has been placed 
13 in service in the Enterprise
Zone or River Edge 
14 Redevelopment Zone by the taxpayer, the amount of such 
15 increase shall be deemed property
placed in service on the 
16 date of such increase in basis.
17  (5) The term "placed in service" shall have the same 
18 meaning as under
Section 46 of the Internal Revenue Code.
19  (6) If during any taxable year, any property ceases to 
20 be qualified
property in the hands of the taxpayer within 
21 48 months after being placed
in service, or the situs of 
22 any qualified property is moved outside the
Enterprise Zone 
23 or River Edge Redevelopment Zone within 48 months after 
24 being placed in service, the tax
imposed under subsections 
25 (a) and (b) of this Section for such taxable year
shall be 
26 increased. Such increase shall be determined by (i) 
 
 
10000SB0007ham003- 110 -LRB100 06307 SMS 40923 a


1 recomputing
the investment credit which would have been 
2 allowed for the year in which
credit for such property was 
3 originally allowed by eliminating such
property from such 
4 computation, and (ii) subtracting such recomputed credit

5 from the amount of credit previously allowed. For the 
6 purposes of this
paragraph (6), a reduction of the basis of 
7 qualified property resulting
from a redetermination of the 
8 purchase price shall be deemed a disposition
of qualified 
9 property to the extent of such reduction.
10  (7) There shall be allowed an additional credit equal 
11 to 0.5% of the basis of qualified property placed in 
12 service during the taxable year in a River Edge 
13 Redevelopment Zone, provided such property is placed in 
14 service on or after July 1, 2006, and the taxpayer's base 
15 employment within Illinois has increased by 1% or more over 
16 the preceding year as determined by the taxpayer's 
17 employment records filed with the Illinois Department of 
18 Employment Security. Taxpayers who are new to Illinois 
19 shall be deemed to have met the 1% growth in base 
20 employment for the first year in which they file employment 
21 records with the Illinois Department of Employment 
22 Security. If, in any year, the increase in base employment 
23 within Illinois over the preceding year is less than 1%, 
24 the additional credit shall be limited to that percentage 
25 times a fraction, the numerator of which is 0.5% and the 
26 denominator of which is 1%, but shall not exceed 0.5%.

 
 
10000SB0007ham003- 111 -LRB100 06307 SMS 40923 a


1 (g) (Blank).
2 (h) Investment credit; High Impact Business.
3  (1) Subject to subsections (b) and (b-5) of Section
5.5 
4 of the Illinois Enterprise Zone Act, a taxpayer shall be 
5 allowed a credit
against the tax imposed by subsections (a) 
6 and (b) of this Section for
investment in qualified

7 property which is placed in service by a Department of 
8 Commerce and Economic Opportunity
designated High Impact 
9 Business. The credit shall be .5% of the basis
for such 
10 property. The credit shall not be available (i) until the 
11 minimum
investments in qualified property set forth in 
12 subdivision (a)(3)(A) of
Section 5.5 of the Illinois

13 Enterprise Zone Act have been satisfied
or (ii) until the 
14 time authorized in subsection (b-5) of the Illinois

15 Enterprise Zone Act for entities designated as High Impact 
16 Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and 
17 (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone 
18 Act, and shall not be allowed to the extent that it would

19 reduce a taxpayer's liability for the tax imposed by 
20 subsections (a) and (b) of
this Section to below zero. The 
21 credit applicable to such investments shall be
taken in the 
22 taxable year in which such investments have been completed. 
23 The
credit for additional investments beyond the minimum 
24 investment by a designated
high impact business authorized 
25 under subdivision (a)(3)(A) of Section 5.5 of
the Illinois 
26 Enterprise Zone Act shall be available only in the taxable 
 
 
10000SB0007ham003- 112 -LRB100 06307 SMS 40923 a


1 year in
which the property is placed in service and shall 
2 not be allowed to the extent
that it would reduce a 
3 taxpayer's liability for the tax imposed by subsections
(a) 
4 and (b) of this Section to below zero.
For tax years ending 
5 on or after December 31, 1987, the credit shall be
allowed 
6 for the tax year in which the property is placed in 
7 service, or, if
the amount of the credit exceeds the tax 
8 liability for that year, whether
it exceeds the original 
9 liability or the liability as later amended, such
excess 
10 may be carried forward and applied to the tax liability of 
11 the 5
taxable years following the excess credit year. The 
12 credit shall be
applied to the earliest year for which 
13 there is a liability. If there is
credit from more than one 
14 tax year that is available to offset a liability,
the 
15 credit accruing first in time shall be applied first.
16  Changes made in this subdivision (h)(1) by Public Act 
17 88-670
restore changes made by Public Act 85-1182 and 
18 reflect existing law.
19  (2) The term qualified property means property which:
20   (A) is tangible, whether new or used, including 
21 buildings and
structural components of buildings;
22   (B) is depreciable pursuant to Section 167 of the 
23 Internal Revenue
Code, except that "3-year property" 
24 as defined in Section 168(c)(2)(A) of
that Code is not 
25 eligible for the credit provided by this subsection 
26 (h);
 
 
10000SB0007ham003- 113 -LRB100 06307 SMS 40923 a


1   (C) is acquired by purchase as defined in Section 
2 179(d) of the
Internal Revenue Code; and
3   (D) is not eligible for the Enterprise Zone 
4 Investment Credit provided
by subsection (f) of this 
5 Section.
6  (3) The basis of qualified property shall be the basis 
7 used to compute
the depreciation deduction for federal 
8 income tax purposes.
9  (4) If the basis of the property for federal income tax 
10 depreciation
purposes is increased after it has been placed 
11 in service in a federally
designated Foreign Trade Zone or 
12 Sub-Zone located in Illinois by the taxpayer,
the amount of 
13 such increase shall be deemed property placed in service on

14 the date of such increase in basis.
15  (5) The term "placed in service" shall have the same 
16 meaning as under
Section 46 of the Internal Revenue Code.
17  (6) If during any taxable year ending on or before 
18 December 31, 1996,
any property ceases to be qualified

19 property in the hands of the taxpayer within 48 months 
20 after being placed
in service, or the situs of any 
21 qualified property is moved outside
Illinois within 48 
22 months after being placed in service, the tax imposed
under 
23 subsections (a) and (b) of this Section for such taxable 
24 year shall
be increased. Such increase shall be determined 
25 by (i) recomputing the
investment credit which would have 
26 been allowed for the year in which
credit for such property 
 
 
10000SB0007ham003- 114 -LRB100 06307 SMS 40923 a


1 was originally allowed by eliminating such
property from 
2 such computation, and (ii) subtracting such recomputed 
3 credit
from the amount of credit previously allowed. For 
4 the purposes of this
paragraph (6), a reduction of the 
5 basis of qualified property resulting
from a 
6 redetermination of the purchase price shall be deemed a 
7 disposition
of qualified property to the extent of such 
8 reduction.
9  (7) Beginning with tax years ending after December 31, 
10 1996, if a
taxpayer qualifies for the credit under this 
11 subsection (h) and thereby is
granted a tax abatement and 
12 the taxpayer relocates its entire facility in
violation of 
13 the explicit terms and length of the contract under Section

14 18-183 of the Property Tax Code, the tax imposed under 
15 subsections
(a) and (b) of this Section shall be increased 
16 for the taxable year
in which the taxpayer relocated its 
17 facility by an amount equal to the
amount of credit 
18 received by the taxpayer under this subsection (h).
19 (i) Credit for Personal Property Tax Replacement Income 
20Tax.
For tax years ending prior to December 31, 2003, a credit 
21shall be allowed
against the tax imposed by
subsections (a) and 
22(b) of this Section for the tax imposed by subsections (c)
and 
23(d) of this Section. This credit shall be computed by 
24multiplying the tax
imposed by subsections (c) and (d) of this 
25Section by a fraction, the numerator
of which is base income 
26allocable to Illinois and the denominator of which is
Illinois 
 
 
10000SB0007ham003- 115 -LRB100 06307 SMS 40923 a


1base income, and further multiplying the product by the tax 
2rate
imposed by subsections (a) and (b) of this Section.
3 Any credit earned on or after December 31, 1986 under
this 
4subsection which is unused in the year
the credit is computed 
5because it exceeds the tax liability imposed by
subsections (a) 
6and (b) for that year (whether it exceeds the original

7liability or the liability as later amended) may be carried 
8forward and
applied to the tax liability imposed by subsections 
9(a) and (b) of the 5
taxable years following the excess credit 
10year, provided that no credit may
be carried forward to any 
11year ending on or
after December 31, 2003. This credit shall be

12applied first to the earliest year for which there is a 
13liability. If
there is a credit under this subsection from more 
14than one tax year that is
available to offset a liability the 
15earliest credit arising under this
subsection shall be applied 
16first.
17 If, during any taxable year ending on or after December 31, 
181986, the
tax imposed by subsections (c) and (d) of this 
19Section for which a taxpayer
has claimed a credit under this 
20subsection (i) is reduced, the amount of
credit for such tax 
21shall also be reduced. Such reduction shall be
determined by 
22recomputing the credit to take into account the reduced tax

23imposed by subsections (c) and (d). If any portion of the

24reduced amount of credit has been carried to a different 
25taxable year, an
amended return shall be filed for such taxable 
26year to reduce the amount of
credit claimed.
 
 
10000SB0007ham003- 116 -LRB100 06307 SMS 40923 a


1 (j) Training expense credit. Beginning with tax years 
2ending on or
after December 31, 1986 and prior to December 31, 
32003, a taxpayer shall be
allowed a credit against the
tax 
4imposed by subsections (a) and (b) under this Section
for all 
5amounts paid or accrued, on behalf of all persons
employed by 
6the taxpayer in Illinois or Illinois residents employed
outside 
7of Illinois by a taxpayer, for educational or vocational 
8training in
semi-technical or technical fields or semi-skilled 
9or skilled fields, which
were deducted from gross income in the 
10computation of taxable income. The
credit against the tax 
11imposed by subsections (a) and (b) shall be 1.6% of
such 
12training expenses. For partners, shareholders of subchapter S

13corporations, and owners of limited liability companies, if the 
14liability
company is treated as a partnership for purposes of 
15federal and State income
taxation, there shall be allowed a 
16credit under this subsection (j) to be
determined in accordance 
17with the determination of income and distributive
share of 
18income under Sections 702 and 704 and subchapter S of the 
19Internal
Revenue Code.
20 Any credit allowed under this subsection which is unused in 
21the year
the credit is earned may be carried forward to each of 
22the 5 taxable
years following the year for which the credit is 
23first computed until it is
used. This credit shall be applied 
24first to the earliest year for which
there is a liability. If 
25there is a credit under this subsection from more
than one tax 
26year that is available to offset a liability the earliest

 
 
10000SB0007ham003- 117 -LRB100 06307 SMS 40923 a


1credit arising under this subsection shall be applied first. No 
2carryforward
credit may be claimed in any tax year ending on or 
3after
December 31, 2003.
4 (k) Research and development credit. For tax years ending 
5after July 1, 1990 and prior to
December 31, 2003, and 
6beginning again for tax years ending on or after December 31, 
72004, and ending prior to January 1, 2022, a taxpayer shall be

8allowed a credit against the tax imposed by subsections (a) and 
9(b) of this
Section for increasing research activities in this 
10State. The credit
allowed against the tax imposed by 
11subsections (a) and (b) shall be equal
to 6 1/2% of the 
12qualifying expenditures for increasing research activities
in 
13this State. For partners, shareholders of subchapter S 
14corporations, and
owners of limited liability companies, if the 
15liability company is treated as a
partnership for purposes of 
16federal and State income taxation, there shall be
allowed a 
17credit under this subsection to be determined in accordance 
18with the
determination of income and distributive share of 
19income under Sections 702 and
704 and subchapter S of the 
20Internal Revenue Code.
21 For purposes of this subsection, "qualifying expenditures" 
22means the
qualifying expenditures as defined for the federal 
23credit for increasing
research activities which would be 
24allowable under Section 41 of the
Internal Revenue Code and 
25which are conducted in this State, "qualifying
expenditures for 
26increasing research activities in this State" means the
excess 
 
 
10000SB0007ham003- 118 -LRB100 06307 SMS 40923 a


1of qualifying expenditures for the taxable year in which 
2incurred
over qualifying expenditures for the base period, 
3"qualifying expenditures
for the base period" means the average 
4of the qualifying expenditures for
each year in the base 
5period, and "base period" means the 3 taxable years
immediately 
6preceding the taxable year for which the determination is
being 
7made.
8 Any credit in excess of the tax liability for the taxable 
9year
may be carried forward. A taxpayer may elect to have the

10unused credit shown on its final completed return carried over 
11as a credit
against the tax liability for the following 5 
12taxable years or until it has
been fully used, whichever occurs 
13first; provided that no credit earned in a tax year ending 
14prior to December 31, 2003 may be carried forward to any year 
15ending on or after December 31, 2003.
16 If an unused credit is carried forward to a given year from 
172 or more
earlier years, that credit arising in the earliest 
18year will be applied
first against the tax liability for the 
19given year. If a tax liability for
the given year still 
20remains, the credit from the next earliest year will
then be 
21applied, and so on, until all credits have been used or no tax

22liability for the given year remains. Any remaining unused 
23credit or
credits then will be carried forward to the next 
24following year in which a
tax liability is incurred, except 
25that no credit can be carried forward to
a year which is more 
26than 5 years after the year in which the expense for
which the 
 
 
10000SB0007ham003- 119 -LRB100 06307 SMS 40923 a


1credit is given was incurred.
2 No inference shall be drawn from this amendatory Act of the 
391st General
Assembly in construing this Section for taxable 
4years beginning before January
1, 1999.
5 It is the intent of the General Assembly that the research 
6and development credit under this subsection (k) shall apply 
7continuously for all tax years ending on or after December 31, 
82004 and ending prior to January 1, 2022, including, but not 
9limited to, the period beginning on January 1, 2016 and ending 
10on the effective date of this amendatory Act of the 100th 
11General Assembly. All actions taken in reliance on the 
12continuation of the credit under this subsection (k) by any 
13taxpayer are hereby validated. 
14 (l) Environmental Remediation Tax Credit.
15  (i) For tax years ending after December 31, 1997 and on 
16 or before
December 31, 2001, a taxpayer shall be allowed a 
17 credit against the tax
imposed by subsections (a) and (b) 
18 of this Section for certain amounts paid
for unreimbursed 
19 eligible remediation costs, as specified in this 
20 subsection.
For purposes of this Section, "unreimbursed 
21 eligible remediation costs" means
costs approved by the 
22 Illinois Environmental Protection Agency ("Agency") under

23 Section 58.14 of the Environmental Protection Act that were 
24 paid in performing
environmental remediation at a site for 
25 which a No Further Remediation Letter
was issued by the 
26 Agency and recorded under Section 58.10 of the 
 
 
10000SB0007ham003- 120 -LRB100 06307 SMS 40923 a


1 Environmental
Protection Act. The credit must be claimed 
2 for the taxable year in which
Agency approval of the 
3 eligible remediation costs is granted. The credit is
not 
4 available to any taxpayer if the taxpayer or any related 
5 party caused or
contributed to, in any material respect, a 
6 release of regulated substances on,
in, or under the site 
7 that was identified and addressed by the remedial
action 
8 pursuant to the Site Remediation Program of the 
9 Environmental Protection
Act. After the Pollution Control 
10 Board rules are adopted pursuant to the
Illinois 
11 Administrative Procedure Act for the administration and 
12 enforcement of
Section 58.9 of the Environmental 
13 Protection Act, determinations as to credit
availability 
14 for purposes of this Section shall be made consistent with 
15 those
rules. For purposes of this Section, "taxpayer" 
16 includes a person whose tax
attributes the taxpayer has 
17 succeeded to under Section 381 of the Internal
Revenue Code 
18 and "related party" includes the persons disallowed a 
19 deduction
for losses by paragraphs (b), (c), and (f)(1) of 
20 Section 267 of the Internal
Revenue Code by virtue of being 
21 a related taxpayer, as well as any of its
partners. The 
22 credit allowed against the tax imposed by subsections (a) 
23 and
(b) shall be equal to 25% of the unreimbursed eligible 
24 remediation costs in
excess of $100,000 per site, except 
25 that the $100,000 threshold shall not apply
to any site 
26 contained in an enterprise zone as determined by the 
 
 
10000SB0007ham003- 121 -LRB100 06307 SMS 40923 a


1 Department of
Commerce and Community Affairs (now 
2 Department of Commerce and Economic Opportunity). The 
3 total credit allowed shall not exceed
$40,000 per year with 
4 a maximum total of $150,000 per site. For partners and

5 shareholders of subchapter S corporations, there shall be 
6 allowed a credit
under this subsection to be determined in 
7 accordance with the determination of
income and 
8 distributive share of income under Sections 702 and 704 and

9 subchapter S of the Internal Revenue Code.
10  (ii) A credit allowed under this subsection that is 
11 unused in the year
the credit is earned may be carried 
12 forward to each of the 5 taxable years
following the year 
13 for which the credit is first earned until it is used.
The 
14 term "unused credit" does not include any amounts of 
15 unreimbursed eligible
remediation costs in excess of the 
16 maximum credit per site authorized under
paragraph (i). 
17 This credit shall be applied first to the earliest year
for 
18 which there is a liability. If there is a credit under this 
19 subsection
from more than one tax year that is available to 
20 offset a liability, the
earliest credit arising under this 
21 subsection shall be applied first. A
credit allowed under 
22 this subsection may be sold to a buyer as part of a sale
of 
23 all or part of the remediation site for which the credit 
24 was granted. The
purchaser of a remediation site and the 
25 tax credit shall succeed to the unused
credit and remaining 
26 carry-forward period of the seller. To perfect the

 
 
10000SB0007ham003- 122 -LRB100 06307 SMS 40923 a


1 transfer, the assignor shall record the transfer in the 
2 chain of title for the
site and provide written notice to 
3 the Director of the Illinois Department of
Revenue of the 
4 assignor's intent to sell the remediation site and the 
5 amount of
the tax credit to be transferred as a portion of 
6 the sale. In no event may a
credit be transferred to any 
7 taxpayer if the taxpayer or a related party would
not be 
8 eligible under the provisions of subsection (i).
9  (iii) For purposes of this Section, the term "site" 
10 shall have the same
meaning as under Section 58.2 of the 
11 Environmental Protection Act.
12 (m) Education expense credit. Beginning with tax years 
13ending after
December 31, 1999, a taxpayer who
is the custodian 
14of one or more qualifying pupils shall be allowed a credit

15against the tax imposed by subsections (a) and (b) of this 
16Section for
qualified education expenses incurred on behalf of 
17the qualifying pupils.
The credit shall be equal to 25% of 
18qualified education expenses, but in no
event may the total 
19credit under this subsection claimed by a
family that is the

20custodian of qualifying pupils exceed (i) $500 for tax years 
21ending prior to December 31, 2017, and (ii) $750 for tax years 
22ending on or after December 31, 2017. In no event shall a 
23credit under
this subsection reduce the taxpayer's liability 
24under this Act to less than
zero. Notwithstanding any other 
25provision of law, for taxable years beginning on or after 
26January 1, 2017, no taxpayer may claim a credit under this 
 
 
10000SB0007ham003- 123 -LRB100 06307 SMS 40923 a


1subsection (m) if the taxpayer's adjusted gross income for the 
2taxable year exceeds (i) $500,000, in the case of spouses 
3filing a joint federal tax return or (ii) $250,000, in the case 
4of all other taxpayers. This subsection is exempt from the 
5provisions of Section 250 of this
Act.
6 For purposes of this subsection:
7 "Qualifying pupils" means individuals who (i) are 
8residents of the State of
Illinois, (ii) are under the age of 
921 at the close of the school year for
which a credit is 
10sought, and (iii) during the school year for which a credit
is 
11sought were full-time pupils enrolled in a kindergarten through 
12twelfth
grade education program at any school, as defined in 
13this subsection.
14 "Qualified education expense" means the amount incurred
on 
15behalf of a qualifying pupil in excess of $250 for tuition, 
16book fees, and
lab fees at the school in which the pupil is 
17enrolled during the regular school
year.
18 "School" means any public or nonpublic elementary or 
19secondary school in
Illinois that is in compliance with Title 
20VI of the Civil Rights Act of 1964
and attendance at which 
21satisfies the requirements of Section 26-1 of the
School Code, 
22except that nothing shall be construed to require a child to

23attend any particular public or nonpublic school to qualify for 
24the credit
under this Section.
25 "Custodian" means, with respect to qualifying pupils, an 
26Illinois resident
who is a parent, the parents, a legal 
 
 
10000SB0007ham003- 124 -LRB100 06307 SMS 40923 a


1guardian, or the legal guardians of the
qualifying pupils.
2 (n) River Edge Redevelopment Zone site remediation tax 
3credit.

4  (i) For tax years ending on or after December 31, 2006, 
5 a taxpayer shall be allowed a credit against the tax 
6 imposed by subsections (a) and (b) of this Section for 
7 certain amounts paid for unreimbursed eligible remediation 
8 costs, as specified in this subsection. For purposes of 
9 this Section, "unreimbursed eligible remediation costs" 
10 means costs approved by the Illinois Environmental 
11 Protection Agency ("Agency") under Section 58.14a of the 
12 Environmental Protection Act that were paid in performing 
13 environmental remediation at a site within a River Edge 
14 Redevelopment Zone for which a No Further Remediation 
15 Letter was issued by the Agency and recorded under Section 
16 58.10 of the Environmental Protection Act. The credit must 
17 be claimed for the taxable year in which Agency approval of 
18 the eligible remediation costs is granted. The credit is 
19 not available to any taxpayer if the taxpayer or any 
20 related party caused or contributed to, in any material 
21 respect, a release of regulated substances on, in, or under 
22 the site that was identified and addressed by the remedial 
23 action pursuant to the Site Remediation Program of the 
24 Environmental Protection Act. Determinations as to credit 
25 availability for purposes of this Section shall be made 
26 consistent with rules adopted by the Pollution Control 
 
 
10000SB0007ham003- 125 -LRB100 06307 SMS 40923 a


1 Board pursuant to the Illinois Administrative Procedure 
2 Act for the administration and enforcement of Section 58.9 
3 of the Environmental Protection Act. For purposes of this 
4 Section, "taxpayer" includes a person whose tax attributes 
5 the taxpayer has succeeded to under Section 381 of the 
6 Internal Revenue Code and "related party" includes the 
7 persons disallowed a deduction for losses by paragraphs 
8 (b), (c), and (f)(1) of Section 267 of the Internal Revenue 
9 Code by virtue of being a related taxpayer, as well as any 
10 of its partners. The credit allowed against the tax imposed 
11 by subsections (a) and (b) shall be equal to 25% of the 
12 unreimbursed eligible remediation costs in excess of 
13 $100,000 per site.
14  (ii) A credit allowed under this subsection that is 
15 unused in the year the credit is earned may be carried 
16 forward to each of the 5 taxable years following the year 
17 for which the credit is first earned until it is used. This 
18 credit shall be applied first to the earliest year for 
19 which there is a liability. If there is a credit under this 
20 subsection from more than one tax year that is available to 
21 offset a liability, the earliest credit arising under this 
22 subsection shall be applied first. A credit allowed under 
23 this subsection may be sold to a buyer as part of a sale of 
24 all or part of the remediation site for which the credit 
25 was granted. The purchaser of a remediation site and the 
26 tax credit shall succeed to the unused credit and remaining 
 
 
10000SB0007ham003- 126 -LRB100 06307 SMS 40923 a


1 carry-forward period of the seller. To perfect the 
2 transfer, the assignor shall record the transfer in the 
3 chain of title for the site and provide written notice to 
4 the Director of the Illinois Department of Revenue of the 
5 assignor's intent to sell the remediation site and the 
6 amount of the tax credit to be transferred as a portion of 
7 the sale. In no event may a credit be transferred to any 
8 taxpayer if the taxpayer or a related party would not be 
9 eligible under the provisions of subsection (i).
10  (iii) For purposes of this Section, the term "site" 
11 shall have the same meaning as under Section 58.2 of the 
12 Environmental Protection Act.
13 (o) For each of taxable years during the Compassionate Use 
14of Medical Cannabis Pilot Program, a surcharge is imposed on 
15all taxpayers on income arising from the sale or exchange of 
16capital assets, depreciable business property, real property 
17used in the trade or business, and Section 197 intangibles of 
18an organization registrant under the Compassionate Use of 
19Medical Cannabis Pilot Program Act. The amount of the surcharge 
20is equal to the amount of federal income tax liability for the 
21taxable year attributable to those sales and exchanges. The 
22surcharge imposed does not apply if:
23  (1) the medical cannabis cultivation center 
24 registration, medical cannabis dispensary registration, or 
25 the property of a registration is transferred as a result 
26 of any of the following:
 
 
10000SB0007ham003- 127 -LRB100 06307 SMS 40923 a


1   (A) bankruptcy, a receivership, or a debt 
2 adjustment initiated by or against the initial 
3 registration or the substantial owners of the initial 
4 registration;
5   (B) cancellation, revocation, or termination of 
6 any registration by the Illinois Department of Public 
7 Health;
8   (C) a determination by the Illinois Department of 
9 Public Health that transfer of the registration is in 
10 the best interests of Illinois qualifying patients as 
11 defined by the Compassionate Use of Medical Cannabis 
12 Pilot Program Act;
13   (D) the death of an owner of the equity interest in 
14 a registrant;
15   (E) the acquisition of a controlling interest in 
16 the stock or substantially all of the assets of a 
17 publicly traded company;
18   (F) a transfer by a parent company to a wholly 
19 owned subsidiary; or
20   (G) the transfer or sale to or by one person to 
21 another person where both persons were initial owners 
22 of the registration when the registration was issued; 
23 or
24  (2) the cannabis cultivation center registration, 
25 medical cannabis dispensary registration, or the 
26 controlling interest in a registrant's property is 
 
 
10000SB0007ham003- 128 -LRB100 06307 SMS 40923 a


1 transferred in a transaction to lineal descendants in which 
2 no gain or loss is recognized or as a result of a 
3 transaction in accordance with Section 351 of the Internal 
4 Revenue Code in which no gain or loss is recognized.
5(Source: P.A. 100-22, eff. 7-6-17.)




6 (35 ILCS 5/303) (from Ch. 120, par. 3-303)



7 Sec. 303. (a) In general. Any item of capital gain or loss, 
8and any
item of income from rents or royalties from real or 
9tangible personal
property, interest, dividends, and patent or 
10copyright royalties, and prizes
awarded under the Illinois 
11Lottery Law, and, for taxable years ending on or after December 
1231, 2018, wagering and gambling winnings from Illinois sources 
13as set forth in subsection (e-1) of this Section, to the extent 
14such item constitutes
nonbusiness income, together with any 
15item of deduction directly allocable
thereto, shall be 
16allocated by any person other than a resident as provided
in 
17this Section.

18 (b) Capital gains and losses. 
19  (1) Real property. Capital gains and
losses from sales 
20 or exchanges of real property are allocable to this State

21 if the property is located in this State.

22  (2) Tangible personal property. Capital gains and 
23 losses from sales
or exchanges of tangible personal 
24 property are allocable to this State if,
at the time of 
25 such sale or exchange:

 
 
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1   (A) The property had its situs in this State; or

2   (B) The taxpayer had its commercial domicile in 
3 this State and was not
taxable in the state in which 
4 the property had its situs.

5  (3) Intangibles. Capital gains and losses from sales or 
6 exchanges of
intangible personal property are allocable to 
7 this State if the taxpayer
had its commercial domicile in 
8 this State at the time of such sale or
exchange.

9 (c) Rents and royalties.
10  (1) Real property. Rents and royalties
from real 
11 property are allocable to this State if the property is 
12 located
in this State.

13  (2) Tangible personal property. Rents and royalties 
14 from tangible
personal property are allocable to this 
15 State:

16   (A) If and to the extent that the property is 
17 utilized in this State; or

18   (B) In their entirety if, at the time such rents or 
19 royalties were paid
or accrued, the taxpayer had its 
20 commercial domicile in this State and was
not organized 
21 under the laws of or taxable with respect to such rents 
22 or
royalties in the state in which the property was 
23 utilized.
The extent of utilization of tangible 
24 personal property in a state is
determined by 
25 multiplying the rents or royalties derived from such 
26 property
by a fraction, the numerator of which is the 
 
 
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1 number of days of physical
location of the property in 
2 the state during the rental or royalty period
in the 
3 taxable year and the denominator of which is the number 
4 of days of
physical location of the property everywhere 
5 during all rental or royalty
periods in the taxable 
6 year. If the physical location of the property
during 
7 the rental or royalty period is unknown or 
8 unascertainable by the
taxpayer, tangible personal 
9 property is utilized in the state in which the
property 
10 was located at the time the rental or royalty payer 
11 obtained
possession.

12 (d) Patent and copyright royalties.

13  (1) Allocation. Patent and copyright royalties are 
14 allocable to this
State:

15   (A) If and to the extent that the patent or 
16 copyright is utilized by the
payer in this State; or

17   (B) If and to the extent that the patent or 
18 copyright is utilized by the
payer in a state in which 
19 the taxpayer is not taxable with respect to such

20 royalties and, at the time such royalties were paid or 
21 accrued, the
taxpayer had its commercial domicile in 
22 this State.

23  (2) Utilization.

24   (A) A patent is utilized in a state to the extent 
25 that it is employed in
production, fabrication, 
26 manufacturing or other processing in the state or
to 
 
 
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1 the extent that a patented product is produced in the 
2 state. If the
basis of receipts from patent royalties 
3 does not permit allocation to
states or if the 
4 accounting procedures do not reflect states of

5 utilization, the patent is utilized in this State if 
6 the taxpayer has its
commercial domicile in this State.

7   (B) A copyright is utilized in a state to the 
8 extent that printing or
other publication originates 
9 in the state. If the basis of receipts from
copyright 
10 royalties does not permit allocation to states or if 
11 the
accounting procedures do not reflect states of 
12 utilization, the copyright
is utilized in this State if 
13 the taxpayer has its commercial domicile in
this State.

14 (e) Illinois lottery prizes. Prizes awarded under the 
15Illinois Lottery Law are allocable to this State. Payments 
16received in taxable years ending on or after December 31, 2013, 
17from the assignment of a prize under Section 13.1 of the 
18Illinois Lottery Law are allocable to this State.

19 (e-1) Wagering and gambling winnings. Payments received in 
20taxable years ending on or after December 31, 2018 of winnings 
21from pari-mutuel wagering conducted at a wagering facility 
22licensed under the Illinois Horse Racing Act of 1975 and from 
23gambling games conducted on a riverboat or in a casino or 
24organization gaming facility licensed under the Illinois 
25Gambling Act are allocable to this State. 
26 (e-5) Unemployment benefits. Unemployment benefits paid by 
 
 
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1the Illinois Department of Employment Security are allocable to 
2this State. 
3 (f) Taxability in other state. For purposes of allocation 
4of income
pursuant to this Section, a taxpayer is taxable in 
5another state if:

6  (1) In that state he is subject to a net income tax, a 
7 franchise tax
measured by net income, a franchise tax for 
8 the privilege of doing
business, or a corporate stock tax; 
9 or

10  (2) That state has jurisdiction to subject the taxpayer 
11 to a net income
tax regardless of whether, in fact, the 
12 state does or does not.

13 (g) Cross references. 
14  (1) For allocation of interest and dividends by
persons 
15 other than residents, see Section 301(c)(2).

16  (2) For allocation of nonbusiness income by residents, 
17 see Section
301(a).

18(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)





19 (35 ILCS 5/304) (from Ch. 120, par. 3-304)


20 Sec. 304. Business income of persons other than residents. 

21 (a) In general. The business income of a person other than 
22a
resident shall be allocated to this State if such person's 
23business
income is derived solely from this State. If a person 
24other than a
resident derives business income from this State 
25and one or more other
states, then, for tax years ending on or 
 
 
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1before December 30, 1998, and
except as otherwise provided by 
2this Section, such
person's business income shall be 
3apportioned to this State by
multiplying the income by a 
4fraction, the numerator of which is the sum
of the property 
5factor (if any), the payroll factor (if any) and 200% of the

6sales factor (if any), and the denominator of which is 4 
7reduced by the
number of factors other than the sales factor 
8which have a denominator
of zero and by an additional 2 if the 
9sales factor has a denominator of zero.
For tax years ending on 
10or after December 31, 1998, and except as otherwise
provided by 
11this Section, persons other than
residents who derive business 
12income from this State and one or more other
states shall 
13compute their apportionment factor by weighting their 
14property,
payroll, and sales factors as provided in
subsection 
15(h) of this Section.

16 (1) Property factor.

17  (A) The property factor is a fraction, the numerator of 
18 which is the
average value of the person's real and 
19 tangible personal property owned
or rented and used in the 
20 trade or business in this State during the
taxable year and 
21 the denominator of which is the average value of all
the 
22 person's real and tangible personal property owned or 
23 rented and
used in the trade or business during the taxable 
24 year.

25  (B) Property owned by the person is valued at its 
26 original cost.
Property rented by the person is valued at 8 
 
 
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1 times the net annual rental
rate. Net annual rental rate is 
2 the annual rental rate paid by the
person less any annual 
3 rental rate received by the person from
sub-rentals.

4  (C) The average value of property shall be determined 
5 by averaging
the values at the beginning and ending of the 
6 taxable year but the
Director may require the averaging of 
7 monthly values during the taxable
year if reasonably 
8 required to reflect properly the average value of the

9 person's property.

10 (2) Payroll factor.

11  (A) The payroll factor is a fraction, the numerator of 
12 which is the
total amount paid in this State during the 
13 taxable year by the person
for compensation, and the 
14 denominator of which is the total compensation
paid 
15 everywhere during the taxable year.

16  (B) Compensation is paid in this State if:

17   (i) The individual's service is performed entirely 
18 within this
State;

19   (ii) The individual's service is performed both 
20 within and without
this State, but the service 
21 performed without this State is incidental
to the 
22 individual's service performed within this State; or

23   (iii) Some of the service is performed within this 
24 State and either
the base of operations, or if there is 
25 no base of operations, the place
from which the service 
26 is directed or controlled is within this State,
or the 
 
 
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1 base of operations or the place from which the service 
2 is
directed or controlled is not in any state in which 
3 some part of the
service is performed, but the 
4 individual's residence is in this State.

5   (iv) Compensation paid to nonresident professional 
6 athletes.
7   (a) General. The Illinois source income of a 
8 nonresident individual who is a member of a 
9 professional athletic team includes the portion of the 
10 individual's total compensation for services performed 
11 as a member of a professional athletic team during the 
12 taxable year which the number of duty days spent within 
13 this State performing services for the team in any 
14 manner during the taxable year bears to the total 
15 number of duty days spent both within and without this 
16 State during the taxable year.
17   (b) Travel days. Travel days that do not involve 
18 either a game, practice, team meeting, or other similar 
19 team event are not considered duty days spent in this 
20 State. However, such travel days are considered in the 
21 total duty days spent both within and without this 
22 State.
23   (c) Definitions. For purposes of this subpart 
24 (iv):
25    (1) The term "professional athletic team" 
26 includes, but is not limited to, any professional 
 
 
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1 baseball, basketball, football, soccer, or hockey 
2 team.
3    (2) The term "member of a professional 
4 athletic team" includes those employees who are 
5 active players, players on the disabled list, and 
6 any other persons required to travel and who travel 
7 with and perform services on behalf of a 
8 professional athletic team on a regular basis. 
9 This includes, but is not limited to, coaches, 
10 managers, and trainers.
11    (3) Except as provided in items (C) and (D) of 
12 this subpart (3), the term "duty days" means all 
13 days during the taxable year from the beginning of 
14 the professional athletic team's official 
15 pre-season training period through the last game 
16 in which the team competes or is scheduled to 
17 compete. Duty days shall be counted for the year in 
18 which they occur, including where a team's 
19 official pre-season training period through the 
20 last game in which the team competes or is 
21 scheduled to compete, occurs during more than one 
22 tax year.
23     (A) Duty days shall also include days on 
24 which a member of a professional athletic team 
25 performs service for a team on a date that does 
26 not fall within the foregoing period (e.g., 
 
 
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1 participation in instructional leagues, the 
2 "All Star Game", or promotional "caravans"). 
3 Performing a service for a professional 
4 athletic team includes conducting training and 
5 rehabilitation activities, when such 
6 activities are conducted at team facilities.
7     (B) Also included in duty days are game 
8 days, practice days, days spent at team 
9 meetings, promotional caravans, preseason 
10 training camps, and days served with the team 
11 through all post-season games in which the team 
12 competes or is scheduled to compete.
13     (C) Duty days for any person who joins a 
14 team during the period from the beginning of 
15 the professional athletic team's official 
16 pre-season training period through the last 
17 game in which the team competes, or is 
18 scheduled to compete, shall begin on the day 
19 that person joins the team. Conversely, duty 
20 days for any person who leaves a team during 
21 this period shall end on the day that person 
22 leaves the team. Where a person switches teams 
23 during a taxable year, a separate duty-day 
24 calculation shall be made for the period the 
25 person was with each team.
26     (D) Days for which a member of a 
 
 
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1 professional athletic team is not compensated 
2 and is not performing services for the team in 
3 any manner, including days when such member of 
4 a professional athletic team has been 
5 suspended without pay and prohibited from 
6 performing any services for the team, shall not 
7 be treated as duty days.
8     (E) Days for which a member of a 
9 professional athletic team is on the disabled 
10 list and does not conduct rehabilitation 
11 activities at facilities of the team, and is 
12 not otherwise performing services for the team 
13 in Illinois, shall not be considered duty days 
14 spent in this State. All days on the disabled 
15 list, however, are considered to be included in 
16 total duty days spent both within and without 
17 this State.
18    (4) The term "total compensation for services 
19 performed as a member of a professional athletic 
20 team" means the total compensation received during 
21 the taxable year for services performed:
22     (A) from the beginning of the official 
23 pre-season training period through the last 
24 game in which the team competes or is scheduled 
25 to compete during that taxable year; and
26     (B) during the taxable year on a date which 
 
 
10000SB0007ham003- 139 -LRB100 06307 SMS 40923 a


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


6 (3) Sales factor.

7  (A) The sales factor is a fraction, the numerator of 
8 which is the
total sales of the person in this State during 
9 the taxable year, and the
denominator of which is the total 
10 sales of the person everywhere during
the taxable year.

11  (B) Sales of tangible personal property are in this 
12 State if:

13   (i) The property is delivered or shipped to a 
14 purchaser, other than
the United States government, 
15 within this State regardless of the f. o.
b. point or 
16 other conditions of the sale; or

17   (ii) The property is shipped from an office, store, 
18 warehouse,
factory or other place of storage in this 
19 State and either the purchaser
is the United States 
20 government or the person is not taxable in the
state of 
21 the purchaser; provided, however, that premises owned 
22 or leased
by a person who has independently contracted 
23 with the seller for the printing
of newspapers, 
24 periodicals or books shall not be deemed to be an 
25 office,
store, warehouse, factory or other place of 
26 storage for purposes of this
Section.
Sales of tangible 
 
 
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1 personal property are not in this State if the
seller 
2 and purchaser would be members of the same unitary 
3 business group
but for the fact that either the seller 
4 or purchaser is a person with 80%
or more of total 
5 business activity outside of the United States and the

6 property is purchased for resale.

7  (B-1) Patents, copyrights, trademarks, and similar 
8 items of intangible
personal property.

9   (i) Gross receipts from the licensing, sale, or 
10 other disposition of a
patent, copyright, trademark, 
11 or similar item of intangible personal property, other 
12 than gross receipts governed by paragraph (B-7) of this 
13 item (3),
are in this State to the extent the item is 
14 utilized in this State during the
year the gross 
15 receipts are included in gross income.

16   (ii) Place of utilization.

17    (I) A patent is utilized in a state to the 
18 extent that it is employed
in production, 
19 fabrication, manufacturing, or other processing in 
20 the state or
to the extent that a patented product 
21 is produced in the state. If a patent is
utilized 
22 in
more than one state, the extent to which it is 
23 utilized in any one state shall
be a fraction equal 
24 to the gross receipts of the licensee or purchaser 
25 from
sales or leases of items produced, 
26 fabricated, manufactured, or processed
within that 
 
 
10000SB0007ham003- 142 -LRB100 06307 SMS 40923 a


1 state using the patent and of patented items 
2 produced within that
state, divided by the total of 
3 such gross receipts for all states in which the

4 patent is utilized.

5    (II) A copyright is utilized in a state to the 
6 extent that printing or
other publication 
7 originates in the state. If a copyright is utilized 
8 in more
than one state, the extent to which it is 
9 utilized in any one state shall be a
fraction equal 
10 to the gross receipts from sales or licenses of 
11 materials
printed or published in that state 
12 divided by the total of such gross receipts
for all 
13 states in which the copyright is utilized.

14    (III) Trademarks and other items of intangible 
15 personal property
governed by this paragraph (B-1) 
16 are utilized in the state in which the
commercial 
17 domicile of the licensee or purchaser is located.

18   (iii) If the state of utilization of an item of 
19 property governed by
this paragraph (B-1) cannot be 
20 determined from the taxpayer's books and
records or 
21 from the books and records of any person related to the 
22 taxpayer
within the meaning of Section 267(b) of the 
23 Internal Revenue Code, 26 U.S.C.
267, the gross

24 receipts attributable to that item shall be excluded 
25 from both the numerator
and the denominator of the 
26 sales factor.

 
 
10000SB0007ham003- 143 -LRB100 06307 SMS 40923 a


1  (B-2) Gross receipts from the license, sale, or other 
2 disposition of
patents, copyrights, trademarks, and 
3 similar items of intangible personal
property, other than 
4 gross receipts governed by paragraph (B-7) of this item 
5 (3), may be included in the numerator or denominator of the 
6 sales factor
only if gross receipts from licenses, sales, 
7 or other disposition of such items
comprise more than 50% 
8 of the taxpayer's total gross receipts included in gross

9 income during the tax year and during each of the 2 
10 immediately preceding tax
years; provided that, when a 
11 taxpayer is a member of a unitary business group,
such 
12 determination shall be made on the basis of the gross 
13 receipts of the
entire unitary business group.

14  (B-5) For taxable years ending on or after December 31, 
15 2008, except as provided in subsections (ii) through (vii), 
16 receipts from the sale of telecommunications service or 
17 mobile telecommunications service are in this State if the 
18 customer's service address is in this State.
19   (i) For purposes of this subparagraph (B-5), the 
20 following terms have the following meanings:
21   "Ancillary services" means services that are 
22 associated with or incidental to the provision of 
23 "telecommunications services", including but not 
24 limited to "detailed telecommunications billing", 
25 "directory assistance", "vertical service", and "voice 
26 mail services".
 
 
10000SB0007ham003- 144 -LRB100 06307 SMS 40923 a


1   "Air-to-Ground Radiotelephone service" means a 
2 radio service, as that term is defined in 47 CFR 22.99, 
3 in which common carriers are authorized to offer and 
4 provide radio telecommunications service for hire to 
5 subscribers in aircraft.
6   "Call-by-call Basis" means any method of charging 
7 for telecommunications services where the price is 
8 measured by individual calls.
9   "Communications Channel" means a physical or 
10 virtual path of communications over which signals are 
11 transmitted between or among customer channel 
12 termination points.
13   "Conference bridging service" means an "ancillary 
14 service" that links two or more participants of an 
15 audio or video conference call and may include the 
16 provision of a telephone number. "Conference bridging 
17 service" does not include the "telecommunications 
18 services" used to reach the conference bridge.
19   "Customer Channel Termination Point" means the 
20 location where the customer either inputs or receives 
21 the communications.
22   "Detailed telecommunications billing service" 
23 means an "ancillary service" of separately stating 
24 information pertaining to individual calls on a 
25 customer's billing statement.
26   "Directory assistance" means an "ancillary 
 
 
10000SB0007ham003- 145 -LRB100 06307 SMS 40923 a


1 service" of providing telephone number information, 
2 and/or address information.
3   "Home service provider" means the facilities based 
4 carrier or reseller with which the customer contracts 
5 for the provision of mobile telecommunications 
6 services.
7   "Mobile telecommunications service" means 
8 commercial mobile radio service, as defined in Section 
9 20.3 of Title 47 of the Code of Federal Regulations as 
10 in effect on June 1, 1999.
11   "Place of primary use" means the street address 
12 representative of where the customer's use of the 
13 telecommunications service primarily occurs, which 
14 must be the residential street address or the primary 
15 business street address of the customer. In the case of 
16 mobile telecommunications services, "place of primary 
17 use" must be within the licensed service area of the 
18 home service provider.
19   "Post-paid telecommunication service" means the 
20 telecommunications service obtained by making a 
21 payment on a call-by-call basis either through the use 
22 of a credit card or payment mechanism such as a bank 
23 card, travel card, credit card, or debit card, or by 
24 charge made to a telephone number which is not 
25 associated with the origination or termination of the 
26 telecommunications service. A post-paid calling 
 
 
10000SB0007ham003- 146 -LRB100 06307 SMS 40923 a


1 service includes telecommunications service, except a 
2 prepaid wireless calling service, that would be a 
3 prepaid calling service except it is not exclusively a 
4 telecommunication service.
5   "Prepaid telecommunication service" means the 
6 right to access exclusively telecommunications 
7 services, which must be paid for in advance and which 
8 enables the origination of calls using an access number 
9 or authorization code, whether manually or 
10 electronically dialed, and that is sold in 
11 predetermined units or dollars of which the number 
12 declines with use in a known amount.
13   "Prepaid Mobile telecommunication service" means a 
14 telecommunications service that provides the right to 
15 utilize mobile wireless service as well as other 
16 non-telecommunication services, including but not 
17 limited to ancillary services, which must be paid for 
18 in advance that is sold in predetermined units or 
19 dollars of which the number declines with use in a 
20 known amount.
21   "Private communication service" means a 
22 telecommunication service that entitles the customer 
23 to exclusive or priority use of a communications 
24 channel or group of channels between or among 
25 termination points, regardless of the manner in which 
26 such channel or channels are connected, and includes 
 
 
10000SB0007ham003- 147 -LRB100 06307 SMS 40923 a


1 switching capacity, extension lines, stations, and any 
2 other associated services that are provided in 
3 connection with the use of such channel or channels.
4   "Service address" means:
5    (a) The location of the telecommunications 
6 equipment to which a customer's call is charged and 
7 from which the call originates or terminates, 
8 regardless of where the call is billed or paid;
9    (b) If the location in line (a) is not known, 
10 service address means the origination point of the 
11 signal of the telecommunications services first 
12 identified by either the seller's 
13 telecommunications system or in information 
14 received by the seller from its service provider 
15 where the system used to transport such signals is 
16 not that of the seller; and
17    (c) If the locations in line (a) and line (b) 
18 are not known, the service address means the 
19 location of the customer's place of primary use.
20   "Telecommunications service" means the electronic 
21 transmission, conveyance, or routing of voice, data, 
22 audio, video, or any other information or signals to a 
23 point, or between or among points. The term 
24 "telecommunications service" includes such 
25 transmission, conveyance, or routing in which computer 
26 processing applications are used to act on the form, 
 
 
10000SB0007ham003- 148 -LRB100 06307 SMS 40923 a


1 code or protocol of the content for purposes of 
2 transmission, conveyance or routing without regard to 
3 whether such service is referred to as voice over 
4 Internet protocol services or is classified by the 
5 Federal Communications Commission as enhanced or value 
6 added. "Telecommunications service" does not include:
7    (a) Data processing and information services 
8 that allow data to be generated, acquired, stored, 
9 processed, or retrieved and delivered by an 
10 electronic transmission to a purchaser when such 
11 purchaser's primary purpose for the underlying 
12 transaction is the processed data or information;
13    (b) Installation or maintenance of wiring or 
14 equipment on a customer's premises;
15    (c) Tangible personal property;
16    (d) Advertising, including but not limited to 
17 directory advertising;
18    (e) Billing and collection services provided 
19 to third parties;
20    (f) Internet access service;
21    (g) Radio and television audio and video 
22 programming services, regardless of the medium, 
23 including the furnishing of transmission, 
24 conveyance and routing of such services by the 
25 programming service provider. Radio and television 
26 audio and video programming services shall include 
 
 
10000SB0007ham003- 149 -LRB100 06307 SMS 40923 a


1 but not be limited to cable service as defined in 
2 47 USC 522(6) and audio and video programming 
3 services delivered by commercial mobile radio 
4 service providers, as defined in 47 CFR 20.3;
5    (h) "Ancillary services"; or
6    (i) Digital products "delivered 
7 electronically", including but not limited to 
8 software, music, video, reading materials or ring 
9 tones.
10   "Vertical service" means an "ancillary service" 
11 that is offered in connection with one or more 
12 "telecommunications services", which offers advanced 
13 calling features that allow customers to identify 
14 callers and to manage multiple calls and call 
15 connections, including "conference bridging services".
16   "Voice mail service" means an "ancillary service" 
17 that enables the customer to store, send or receive 
18 recorded messages. "Voice mail service" does not 
19 include any "vertical services" that the customer may 
20 be required to have in order to utilize the "voice mail 
21 service".
22   (ii) Receipts from the sale of telecommunications 
23 service sold on an individual call-by-call basis are in 
24 this State if either of the following applies:
25    (a) The call both originates and terminates in 
26 this State.
 
 
10000SB0007ham003- 150 -LRB100 06307 SMS 40923 a


1    (b) The call either originates or terminates 
2 in this State and the service address is located in 
3 this State.
4   (iii) Receipts from the sale of postpaid 
5 telecommunications service at retail are in this State 
6 if the origination point of the telecommunication 
7 signal, as first identified by the service provider's 
8 telecommunication system or as identified by 
9 information received by the seller from its service 
10 provider if the system used to transport 
11 telecommunication signals is not the seller's, is 
12 located in this State.
13   (iv) Receipts from the sale of prepaid 
14 telecommunications service or prepaid mobile 
15 telecommunications service at retail are in this State 
16 if the purchaser obtains the prepaid card or similar 
17 means of conveyance at a location in this State. 
18 Receipts from recharging a prepaid telecommunications 
19 service or mobile telecommunications service is in 
20 this State if the purchaser's billing information 
21 indicates a location in this State.
22   (v) Receipts from the sale of private 
23 communication services are in this State as follows:
24    (a) 100% of receipts from charges imposed at 
25 each channel termination point in this State.
26    (b) 100% of receipts from charges for the total 
 
 
10000SB0007ham003- 151 -LRB100 06307 SMS 40923 a


1 channel mileage between each channel termination 
2 point in this State.
3    (c) 50% of the total receipts from charges for 
4 service segments when those segments are between 2 
5 customer channel termination points, 1 of which is 
6 located in this State and the other is located 
7 outside of this State, which segments are 
8 separately charged.
9    (d) The receipts from charges for service 
10 segments with a channel termination point located 
11 in this State and in two or more other states, and 
12 which segments are not separately billed, are in 
13 this State based on a percentage determined by 
14 dividing the number of customer channel 
15 termination points in this State by the total 
16 number of customer channel termination points.
17   (vi) Receipts from charges for ancillary services 
18 for telecommunications service sold to customers at 
19 retail are in this State if the customer's primary 
20 place of use of telecommunications services associated 
21 with those ancillary services is in this State. If the 
22 seller of those ancillary services cannot determine 
23 where the associated telecommunications are located, 
24 then the ancillary services shall be based on the 
25 location of the purchaser. 
26   (vii) Receipts to access a carrier's network or 
 
 
10000SB0007ham003- 152 -LRB100 06307 SMS 40923 a


1 from the sale of telecommunication services or 
2 ancillary services for resale are in this State as 
3 follows:
4    (a) 100% of the receipts from access fees 
5 attributable to intrastate telecommunications 
6 service that both originates and terminates in 
7 this State.
8    (b) 50% of the receipts from access fees 
9 attributable to interstate telecommunications 
10 service if the interstate call either originates 
11 or terminates in this State.
12    (c) 100% of the receipts from interstate end 
13 user access line charges, if the customer's 
14 service address is in this State. As used in this 
15 subdivision, "interstate end user access line 
16 charges" includes, but is not limited to, the 
17 surcharge approved by the federal communications 
18 commission and levied pursuant to 47 CFR 69.
19    (d) Gross receipts from sales of 
20 telecommunication services or from ancillary 
21 services for telecommunications services sold to 
22 other telecommunication service providers for 
23 resale shall be sourced to this State using the 
24 apportionment concepts used for non-resale 
25 receipts of telecommunications services if the 
26 information is readily available to make that 
 
 
10000SB0007ham003- 153 -LRB100 06307 SMS 40923 a


1 determination. If the information is not readily 
2 available, then the taxpayer may use any other 
3 reasonable and consistent method. 
4  (B-7) For taxable years ending on or after December 31, 
5 2008, receipts from the sale of broadcasting services are 
6 in this State if the broadcasting services are received in 
7 this State. For purposes of this paragraph (B-7), the 
8 following terms have the following meanings:
9   "Advertising revenue" means consideration received 
10 by the taxpayer in exchange for broadcasting services 
11 or allowing the broadcasting of commercials or 
12 announcements in connection with the broadcasting of 
13 film or radio programming, from sponsorships of the 
14 programming, or from product placements in the 
15 programming.
16   "Audience factor" means the ratio that the 
17 audience or subscribers located in this State of a 
18 station, a network, or a cable system bears to the 
19 total audience or total subscribers for that station, 
20 network, or cable system. The audience factor for film 
21 or radio programming shall be determined by reference 
22 to the books and records of the taxpayer or by 
23 reference to published rating statistics provided the 
24 method used by the taxpayer is consistently used from 
25 year to year for this purpose and fairly represents the 
26 taxpayer's activity in this State.
 
 
10000SB0007ham003- 154 -LRB100 06307 SMS 40923 a


1   "Broadcast" or "broadcasting" or "broadcasting 
2 services" means the transmission or provision of film 
3 or radio programming, whether through the public 
4 airwaves, by cable, by direct or indirect satellite 
5 transmission, or by any other means of communication, 
6 either through a station, a network, or a cable system.
7   "Film" or "film programming" means the broadcast 
8 on television of any and all performances, events, or 
9 productions, including but not limited to news, 
10 sporting events, plays, stories, or other literary, 
11 commercial, educational, or artistic works, either 
12 live or through the use of video tape, disc, or any 
13 other type of format or medium. Each episode of a 
14 series of films produced for television shall 
15 constitute separate "film" notwithstanding that the 
16 series relates to the same principal subject and is 
17 produced during one or more tax periods.
18   "Radio" or "radio programming" means the broadcast 
19 on radio of any and all performances, events, or 
20 productions, including but not limited to news, 
21 sporting events, plays, stories, or other literary, 
22 commercial, educational, or artistic works, either 
23 live or through the use of an audio tape, disc, or any 
24 other format or medium. Each episode in a series of 
25 radio programming produced for radio broadcast shall 
26 constitute a separate "radio programming" 
 
 
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1 notwithstanding that the series relates to the same 
2 principal subject and is produced during one or more 
3 tax periods.
4    (i) In the case of advertising revenue from 
5 broadcasting, the customer is the advertiser and 
6 the service is received in this State if the 
7 commercial domicile of the advertiser is in this 
8 State.
9    (ii) In the case where film or radio 
10 programming is broadcast by a station, a network, 
11 or a cable system for a fee or other remuneration 
12 received from the recipient of the broadcast, the 
13 portion of the service that is received in this 
14 State is measured by the portion of the recipients 
15 of the broadcast located in this State. 
16 Accordingly, the fee or other remuneration for 
17 such service that is included in the Illinois 
18 numerator of the sales factor is the total of those 
19 fees or other remuneration received from 
20 recipients in Illinois. For purposes of this 
21 paragraph, a taxpayer may determine the location 
22 of the recipients of its broadcast using the 
23 address of the recipient shown in its contracts 
24 with the recipient or using the billing address of 
25 the recipient in the taxpayer's records.
26    (iii) In the case where film or radio 
 
 
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1 programming is broadcast by a station, a network, 
2 or a cable system for a fee or other remuneration 
3 from the person providing the programming, the 
4 portion of the broadcast service that is received 
5 by such station, network, or cable system in this 
6 State is measured by the portion of recipients of 
7 the broadcast located in this State. Accordingly, 
8 the amount of revenue related to such an 
9 arrangement that is included in the Illinois 
10 numerator of the sales factor is the total fee or 
11 other total remuneration from the person providing 
12 the programming related to that broadcast 
13 multiplied by the Illinois audience factor for 
14 that broadcast.
15    (iv) In the case where film or radio 
16 programming is provided by a taxpayer that is a 
17 network or station to a customer for broadcast in 
18 exchange for a fee or other remuneration from that 
19 customer the broadcasting service is received at 
20 the location of the office of the customer from 
21 which the services were ordered in the regular 
22 course of the customer's trade or business. 
23 Accordingly, in such a case the revenue derived by 
24 the taxpayer that is included in the taxpayer's 
25 Illinois numerator of the sales factor is the 
26 revenue from such customers who receive the 
 
 
10000SB0007ham003- 157 -LRB100 06307 SMS 40923 a


1 broadcasting service in Illinois.
2    (v) In the case where film or radio programming 
3 is provided by a taxpayer that is not a network or 
4 station to another person for broadcasting in 
5 exchange for a fee or other remuneration from that 
6 person, the broadcasting service is received at 
7 the location of the office of the customer from 
8 which the services were ordered in the regular 
9 course of the customer's trade or business. 
10 Accordingly, in such a case the revenue derived by 
11 the taxpayer that is included in the taxpayer's 
12 Illinois numerator of the sales factor is the 
13 revenue from such customers who receive the 
14 broadcasting service in Illinois.
15  (B-8) Gross receipts from winnings under the Illinois 
16 Lottery Law from the assignment of a prize under Section 
17 13.1 of the Illinois Lottery Law are received in this 
18 State. This paragraph (B-8) applies only to taxable years 
19 ending on or after December 31, 2013. 
20  (B-9) For taxable years ending on or after December 31, 
21 2018, gross receipts from winnings from pari-mutuel 
22 wagering conducted at a wagering facility licensed under 
23 the Illinois Horse Racing Act of 1975 or from winnings from 
24 gambling games conducted on a riverboat or in a casino or 
25 organization gaming facility licensed under the Illinois 
26 Gambling Act are in this State.
 
 
10000SB0007ham003- 158 -LRB100 06307 SMS 40923 a


1  (C) For taxable years ending before December 31, 2008, 
2 sales, other than sales governed by paragraphs (B), (B-1), 
3 (B-2), and (B-8) are in
this State if:

4   (i) The income-producing activity is performed in 
5 this State; or

6   (ii) The income-producing activity is performed 
7 both within and
without this State and a greater 
8 proportion of the income-producing
activity is 
9 performed within this State than without this State, 
10 based
on performance costs.

11  (C-5) For taxable years ending on or after December 31, 
12 2008, sales, other than sales governed by paragraphs (B), 
13 (B-1), (B-2), (B-5), and (B-7), are in this State if any of 
14 the following criteria are met:
15   (i) Sales from the sale or lease of real property 
16 are in this State if the property is located in this 
17 State.
18   (ii) Sales from the lease or rental of tangible 
19 personal property are in this State if the property is 
20 located in this State during the rental period. Sales 
21 from the lease or rental of tangible personal property 
22 that is characteristically moving property, including, 
23 but not limited to, motor vehicles, rolling stock, 
24 aircraft, vessels, or mobile equipment are in this 
25 State to the extent that the property is used in this 
26 State.
 
 
10000SB0007ham003- 159 -LRB100 06307 SMS 40923 a


1   (iii) In the case of interest, net gains (but not 
2 less than zero) and other items of income from 
3 intangible personal property, the sale is in this State 
4 if:
5    (a) in the case of a taxpayer who is a dealer 
6 in the item of intangible personal property within 
7 the meaning of Section 475 of the Internal Revenue 
8 Code, the income or gain is received from a 
9 customer in this State. For purposes of this 
10 subparagraph, a customer is in this State if the 
11 customer is an individual, trust or estate who is a 
12 resident of this State and, for all other 
13 customers, if the customer's commercial domicile 
14 is in this State. Unless the dealer has actual 
15 knowledge of the residence or commercial domicile 
16 of a customer during a taxable year, the customer 
17 shall be deemed to be a customer in this State if 
18 the billing address of the customer, as shown in 
19 the records of the dealer, is in this State; or
20    (b) in all other cases, if the 
21 income-producing activity of the taxpayer is 
22 performed in this State or, if the 
23 income-producing activity of the taxpayer is 
24 performed both within and without this State, if a 
25 greater proportion of the income-producing 
26 activity of the taxpayer is performed within this 
 
 
10000SB0007ham003- 160 -LRB100 06307 SMS 40923 a


1 State than in any other state, based on performance 
2 costs.
3   (iv) Sales of services are in this State if the 
4 services are received in this State. For the purposes 
5 of this section, gross receipts from the performance of 
6 services provided to a corporation, partnership, or 
7 trust may only be attributed to a state where that 
8 corporation, partnership, or trust has a fixed place of 
9 business. If the state where the services are received 
10 is not readily determinable or is a state where the 
11 corporation, partnership, or trust receiving the 
12 service does not have a fixed place of business, the 
13 services shall be deemed to be received at the location 
14 of the office of the customer from which the services 
15 were ordered in the regular course of the customer's 
16 trade or business. If the ordering office cannot be 
17 determined, the services shall be deemed to be received 
18 at the office of the customer to which the services are 
19 billed. If the taxpayer is not taxable in the state in 
20 which the services are received, the sale must be 
21 excluded from both the numerator and the denominator of 
22 the sales factor. The Department shall adopt rules 
23 prescribing where specific types of service are 
24 received, including, but not limited to, publishing, 
25 and utility service.

26  (D) For taxable years ending on or after December 31, 
 
 
10000SB0007ham003- 161 -LRB100 06307 SMS 40923 a


1 1995, the following
items of income shall not be included 
2 in the numerator or denominator of the
sales factor: 
3 dividends; amounts included under Section 78 of the 
4 Internal
Revenue Code; and Subpart F income as defined in 
5 Section 952 of the Internal
Revenue Code.
No inference 
6 shall be drawn from the enactment of this paragraph (D) in

7 construing this Section for taxable years ending before 
8 December 31, 1995.

9  (E) Paragraphs (B-1) and (B-2) shall apply to tax years 
10 ending on or
after December 31, 1999, provided that a 
11 taxpayer may elect to apply the
provisions of these 
12 paragraphs to prior tax years. Such election shall be made

13 in the form and manner prescribed by the Department, shall 
14 be irrevocable, and
shall apply to all tax years; provided 
15 that, if a taxpayer's Illinois income
tax liability for any 
16 tax year, as assessed under Section 903 prior to January
1, 
17 1999, was computed in a manner contrary to the provisions 
18 of paragraphs
(B-1) or (B-2), no refund shall be payable to 
19 the taxpayer for that tax year to
the extent such refund is 
20 the result of applying the provisions of paragraph
(B-1) or 
21 (B-2) retroactively. In the case of a unitary business 
22 group, such
election shall apply to all members of such 
23 group for every tax year such group
is in existence, but 
24 shall not apply to any taxpayer for any period during
which 
25 that taxpayer is not a member of such group.

26 (b) Insurance companies.

 
 
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1  (1) In general. Except as otherwise
provided by 
2 paragraph (2), business income of an insurance company for 
3 a
taxable year shall be apportioned to this State by 
4 multiplying such
income by a fraction, the numerator of 
5 which is the direct premiums
written for insurance upon 
6 property or risk in this State, and the
denominator of 
7 which is the direct premiums written for insurance upon

8 property or risk everywhere. For purposes of this 
9 subsection, the term
"direct premiums written" means the 
10 total amount of direct premiums
written, assessments and 
11 annuity considerations as reported for the
taxable year on 
12 the annual statement filed by the company with the
Illinois 
13 Director of Insurance in the form approved by the National

14 Convention of Insurance Commissioners
or such other form as 
15 may be
prescribed in lieu thereof.

16  (2) Reinsurance. If the principal source of premiums 
17 written by an
insurance company consists of premiums for 
18 reinsurance accepted by it,
the business income of such 
19 company shall be apportioned to this State
by multiplying 
20 such income by a fraction, the numerator of which is the

21 sum of (i) direct premiums written for insurance upon 
22 property or risk
in this State, plus (ii) premiums written 
23 for reinsurance accepted in
respect of property or risk in 
24 this State, and the denominator of which
is the sum of 
25 (iii) direct premiums written for insurance upon property

26 or risk everywhere, plus (iv) premiums written for 
 
 
10000SB0007ham003- 163 -LRB100 06307 SMS 40923 a


1 reinsurance accepted
in respect of property or risk 
2 everywhere. For purposes of this
paragraph, premiums 
3 written for reinsurance accepted in respect of
property or 
4 risk in this State, whether or not otherwise determinable,

5 may, at the election of the company, be determined on the 
6 basis of the
proportion which premiums written for 
7 reinsurance accepted from
companies commercially domiciled 
8 in Illinois bears to premiums written
for reinsurance 
9 accepted from all sources, or, alternatively, in the

10 proportion which the sum of the direct premiums written for 
11 insurance
upon property or risk in this State by each 
12 ceding company from which
reinsurance is accepted bears to 
13 the sum of the total direct premiums
written by each such 
14 ceding company for the taxable year. The election made by a 
15 company under this paragraph for its first taxable year 
16 ending on or after December 31, 2011, shall be binding for 
17 that company for that taxable year and for all subsequent 
18 taxable years, and may be altered only with the written 
19 permission of the Department, which shall not be 
20 unreasonably withheld.

21 (c) Financial organizations.

22  (1) In general. For taxable years ending before 
23 December 31, 2008, business income of a financial

24 organization shall be apportioned to this State by 
25 multiplying such
income by a fraction, the numerator of 
26 which is its business income from
sources within this 
 
 
10000SB0007ham003- 164 -LRB100 06307 SMS 40923 a


1 State, and the denominator of which is its business
income 
2 from all sources. For the purposes of this subsection, the

3 business income of a financial organization from sources 
4 within this
State is the sum of the amounts referred to in 
5 subparagraphs (A) through
(E) following, but excluding the 
6 adjusted income of an international banking
facility as 
7 determined in paragraph (2):

8   (A) Fees, commissions or other compensation for 
9 financial services
rendered within this State;

10   (B) Gross profits from trading in stocks, bonds or 
11 other securities
managed within this State;

12   (C) Dividends, and interest from Illinois 
13 customers, which are received
within this State;

14   (D) Interest charged to customers at places of 
15 business maintained
within this State for carrying 
16 debit balances of margin accounts,
without deduction 
17 of any costs incurred in carrying such accounts; and

18   (E) Any other gross income resulting from the 
19 operation as a
financial organization within this 
20 State. In computing the amounts
referred to in 
21 paragraphs (A) through (E) of this subsection, any 
22 amount
received by a member of an affiliated group 
23 (determined under Section
1504(a) of the Internal 
24 Revenue Code but without reference to whether
any such 
25 corporation is an "includible corporation" under 
26 Section
1504(b) of the Internal Revenue Code) from 
 
 
10000SB0007ham003- 165 -LRB100 06307 SMS 40923 a


1 another member of such group
shall be included only to 
2 the extent such amount exceeds expenses of the

3 recipient directly related thereto.

4  (2) International Banking Facility. For taxable years 
5 ending before December 31, 2008:

6   (A) Adjusted Income. The adjusted income of an 
7 international banking
facility is its income reduced 
8 by the amount of the floor amount.

9   (B) Floor Amount. The floor amount shall be the 
10 amount, if any,
determined
by multiplying the income of 
11 the international banking facility by a fraction,
not 
12 greater than one, which is determined as follows:

13    (i) The numerator shall be:

14    The average aggregate, determined on a 
15 quarterly basis, of the
financial
organization's 
16 loans to banks in foreign countries, to foreign 
17 domiciled
borrowers (except where secured 
18 primarily by real estate) and to foreign

19 governments and other foreign official 
20 institutions, as reported for its
branches, 
21 agencies and offices within the state on its 
22 "Consolidated Report
of Condition", Schedule A, 
23 Lines 2.c., 5.b., and 7.a., which was filed with

24 the Federal Deposit Insurance Corporation and 
25 other regulatory authorities,
for the year 1980, 
26 minus

 
 
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1    The average aggregate, determined on a 
2 quarterly basis, of such loans
(other
than loans of 
3 an international banking facility), as reported by 
4 the financial
institution for its branches, 
5 agencies and offices within the state, on
the 
6 corresponding Schedule and lines of the 
7 Consolidated Report of Condition
for the current 
8 taxable year, provided, however, that in no case 
9 shall the
amount determined in this clause (the 
10 subtrahend) exceed the amount determined
in the 
11 preceding clause (the minuend); and

12    (ii) the denominator shall be the average 
13 aggregate, determined on a
quarterly basis, of the 
14 international banking facility's loans to banks in

15 foreign countries, to foreign domiciled borrowers 
16 (except where secured
primarily by real estate) 
17 and to foreign governments and other foreign

18 official institutions, which were recorded in its 
19 financial accounts for
the current taxable year.

20   (C) Change to Consolidated Report of Condition and 
21 in Qualification.
In the event the Consolidated Report 
22 of Condition which is filed with the
Federal Deposit 
23 Insurance Corporation and other regulatory authorities 
24 is
altered so that the information required for 
25 determining the floor amount
is not found on Schedule 
26 A, lines 2.c., 5.b. and 7.a., the financial
institution 
 
 
10000SB0007ham003- 167 -LRB100 06307 SMS 40923 a


1 shall notify the Department and the Department may, by

2 regulations or otherwise, prescribe or authorize the 
3 use of an alternative
source for such information. The 
4 financial institution shall also notify
the Department 
5 should its international banking facility fail to 
6 qualify as
such, in whole or in part, or should there 
7 be any amendment or change to
the Consolidated Report 
8 of Condition, as originally filed, to the extent
such 
9 amendment or change alters the information used in 
10 determining the floor
amount.

11  (3) For taxable years ending on or after December 31, 
12 2008, the business income of a financial organization shall 
13 be apportioned to this State by multiplying such income by 
14 a fraction, the numerator of which is its gross receipts 
15 from sources in this State or otherwise attributable to 
16 this State's marketplace and the denominator of which is 
17 its gross receipts everywhere during the taxable year. 
18 "Gross receipts" for purposes of this subparagraph (3) 
19 means gross income, including net taxable gain on 
20 disposition of assets, including securities and money 
21 market instruments, when derived from transactions and 
22 activities in the regular course of the financial 
23 organization's trade or business. The following examples 
24 are illustrative:

25   (i) Receipts from the lease or rental of real or 
26 tangible personal property are in this State if the 
 
 
10000SB0007ham003- 168 -LRB100 06307 SMS 40923 a


1 property is located in this State during the rental 
2 period. Receipts from the lease or rental of tangible 
3 personal property that is characteristically moving 
4 property, including, but not limited to, motor 
5 vehicles, rolling stock, aircraft, vessels, or mobile 
6 equipment are from sources in this State to the extent 
7 that the property is used in this State.
8   (ii) Interest income, commissions, fees, gains on 
9 disposition, and other receipts from assets in the 
10 nature of loans that are secured primarily by real 
11 estate or tangible personal property are from sources 
12 in this State if the security is located in this State.
13   (iii) Interest income, commissions, fees, gains on 
14 disposition, and other receipts from consumer loans 
15 that are not secured by real or tangible personal 
16 property are from sources in this State if the debtor 
17 is a resident of this State.
18   (iv) Interest income, commissions, fees, gains on 
19 disposition, and other receipts from commercial loans 
20 and installment obligations that are not secured by 
21 real or tangible personal property are from sources in 
22 this State if the proceeds of the loan are to be 
23 applied in this State. If it cannot be determined where 
24 the funds are to be applied, the income and receipts 
25 are from sources in this State if the office of the 
26 borrower from which the loan was negotiated in the 
 
 
10000SB0007ham003- 169 -LRB100 06307 SMS 40923 a


1 regular course of business is located in this State. If 
2 the location of this office cannot be determined, the 
3 income and receipts shall be excluded from the 
4 numerator and denominator of the sales factor.

5   (v) Interest income, fees, gains on disposition, 
6 service charges, merchant discount income, and other 
7 receipts from credit card receivables are from sources 
8 in this State if the card charges are regularly billed 
9 to a customer in this State.
10   (vi) Receipts from the performance of services, 
11 including, but not limited to, fiduciary, advisory, 
12 and brokerage services, are in this State if the 
13 services are received in this State within the meaning 
14 of subparagraph (a)(3)(C-5)(iv) of this Section.
15   (vii) Receipts from the issuance of travelers 
16 checks and money orders are from sources in this State 
17 if the checks and money orders are issued from a 
18 location within this State.
19   (viii) Receipts from investment assets and 
20 activities and trading assets and activities are 
21 included in the receipts factor as follows:
22    (1) Interest, dividends, net gains (but not 
23 less than zero) and other income from investment 
24 assets and activities from trading assets and 
25 activities shall be included in the receipts 
26 factor. Investment assets and activities and 
 
 
10000SB0007ham003- 170 -LRB100 06307 SMS 40923 a


1 trading assets and activities include but are not 
2 limited to: investment securities; trading account 
3 assets; federal funds; securities purchased and 
4 sold under agreements to resell or repurchase; 
5 options; futures contracts; forward contracts; 
6 notional principal contracts such as swaps; 
7 equities; and foreign currency transactions. With 
8 respect to the investment and trading assets and 
9 activities described in subparagraphs (A) and (B) 
10 of this paragraph, the receipts factor shall 
11 include the amounts described in such 
12 subparagraphs.
13     (A) The receipts factor shall include the 
14 amount by which interest from federal funds 
15 sold and securities purchased under resale 
16 agreements exceeds interest expense on federal 
17 funds purchased and securities sold under 
18 repurchase agreements.
19     (B) The receipts factor shall include the 
20 amount by which interest, dividends, gains and 
21 other income from trading assets and 
22 activities, including but not limited to 
23 assets and activities in the matched book, in 
24 the arbitrage book, and foreign currency 
25 transactions, exceed amounts paid in lieu of 
26 interest, amounts paid in lieu of dividends, 
 
 
10000SB0007ham003- 171 -LRB100 06307 SMS 40923 a


1 and losses from such assets and activities.
2    (2) The numerator of the receipts factor 
3 includes interest, dividends, net gains (but not 
4 less than zero), and other income from investment 
5 assets and activities and from trading assets and 
6 activities described in paragraph (1) of this 
7 subsection that are attributable to this State.
8     (A) The amount of interest, dividends, net 
9 gains (but not less than zero), and other 
10 income from investment assets and activities 
11 in the investment account to be attributed to 
12 this State and included in the numerator is 
13 determined by multiplying all such income from 
14 such assets and activities by a fraction, the 
15 numerator of which is the gross income from 
16 such assets and activities which are properly 
17 assigned to a fixed place of business of the 
18 taxpayer within this State and the denominator 
19 of which is the gross income from all such 
20 assets and activities.
21     (B) The amount of interest from federal 
22 funds sold and purchased and from securities 
23 purchased under resale agreements and 
24 securities sold under repurchase agreements 
25 attributable to this State and included in the 
26 numerator is determined by multiplying the 
 
 
10000SB0007ham003- 172 -LRB100 06307 SMS 40923 a


1 amount described in subparagraph (A) of 
2 paragraph (1) of this subsection from such 
3 funds and such securities by a fraction, the 
4 numerator of which is the gross income from 
5 such funds and such securities which are 
6 properly assigned to a fixed place of business 
7 of the taxpayer within this State and the 
8 denominator of which is the gross income from 
9 all such funds and such securities.
10     (C) The amount of interest, dividends, 
11 gains, and other income from trading assets and 
12 activities, including but not limited to 
13 assets and activities in the matched book, in 
14 the arbitrage book and foreign currency 
15 transactions (but excluding amounts described 
16 in subparagraphs (A) or (B) of this paragraph), 
17 attributable to this State and included in the 
18 numerator is determined by multiplying the 
19 amount described in subparagraph (B) of 
20 paragraph (1) of this subsection by a fraction, 
21 the numerator of which is the gross income from 
22 such trading assets and activities which are 
23 properly assigned to a fixed place of business 
24 of the taxpayer within this State and the 
25 denominator of which is the gross income from 
26 all such assets and activities.
 
 
10000SB0007ham003- 173 -LRB100 06307 SMS 40923 a


1     (D) Properly assigned, for purposes of 
2 this paragraph (2) of this subsection, means 
3 the investment or trading asset or activity is 
4 assigned to the fixed place of business with 
5 which it has a preponderance of substantive 
6 contacts. An investment or trading asset or 
7 activity assigned by the taxpayer to a fixed 
8 place of business without the State shall be 
9 presumed to have been properly assigned if:
10      (i) the taxpayer has assigned, in the 
11 regular course of its business, such asset 
12 or activity on its records to a fixed place 
13 of business consistent with federal or 
14 state regulatory requirements;
15      (ii) such assignment on its records is 
16 based upon substantive contacts of the 
17 asset or activity to such fixed place of 
18 business; and
19      (iii) the taxpayer uses such records 
20 reflecting assignment of such assets or 
21 activities for the filing of all state and 
22 local tax returns for which an assignment 
23 of such assets or activities to a fixed 
24 place of business is required.
25     (E) The presumption of proper assignment 
26 of an investment or trading asset or activity 
 
 
10000SB0007ham003- 174 -LRB100 06307 SMS 40923 a


1 provided in subparagraph (D) of paragraph (2) 
2 of this subsection may be rebutted upon a 
3 showing by the Department, supported by a 
4 preponderance of the evidence, that the 
5 preponderance of substantive contacts 
6 regarding such asset or activity did not occur 
7 at the fixed place of business to which it was 
8 assigned on the taxpayer's records. If the 
9 fixed place of business that has a 
10 preponderance of substantive contacts cannot 
11 be determined for an investment or trading 
12 asset or activity to which the presumption in 
13 subparagraph (D) of paragraph (2) of this 
14 subsection does not apply or with respect to 
15 which that presumption has been rebutted, that 
16 asset or activity is properly assigned to the 
17 state in which the taxpayer's commercial 
18 domicile is located. For purposes of this 
19 subparagraph (E), it shall be presumed, 
20 subject to rebuttal, that taxpayer's 
21 commercial domicile is in the state of the 
22 United States or the District of Columbia to 
23 which the greatest number of employees are 
24 regularly connected with the management of the 
25 investment or trading income or out of which 
26 they are working, irrespective of where the 
 
 
10000SB0007ham003- 175 -LRB100 06307 SMS 40923 a


1 services of such employees are performed, as of 
2 the last day of the taxable year.

3  (4) (Blank).
4  (5) (Blank).
5 (c-1) Federally regulated exchanges. For taxable years 
6ending on or after December 31, 2012, business income of a 
7federally regulated exchange shall, at the option of the 
8federally regulated exchange, be apportioned to this State by 
9multiplying such income by a fraction, the numerator of which 
10is its business income from sources within this State, and the 
11denominator of which is its business income from all sources. 
12For purposes of this subsection, the business income within 
13this State of a federally regulated exchange is the sum of the 
14following: 
15  (1) Receipts attributable to transactions executed on 
16 a physical trading floor if that physical trading floor is 
17 located in this State. 
18  (2) Receipts attributable to all other matching, 
19 execution, or clearing transactions, including without 
20 limitation receipts from the provision of matching, 
21 execution, or clearing services to another entity, 
22 multiplied by (i) for taxable years ending on or after 
23 December 31, 2012 but before December 31, 2013, 63.77%; and 
24 (ii) for taxable years ending on or after December 31, 
25 2013, 27.54%. 
26  (3) All other receipts not governed by subparagraphs 
 
 
10000SB0007ham003- 176 -LRB100 06307 SMS 40923 a


1 (1) or (2) of this subsection (c-1), to the extent the 
2 receipts would be characterized as "sales in this State" 
3 under item (3) of subsection (a) of this Section. 
4 "Federally regulated exchange" means (i) a "registered 
5entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B), 
6or (C), (ii) an "exchange" or "clearing agency" within the 
7meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such 
8entities regulated under any successor regulatory structure to 
9the foregoing, and (iv) all taxpayers who are members of the 
10same unitary business group as a federally regulated exchange, 
11determined without regard to the prohibition in Section 
121501(a)(27) of this Act against including in a unitary business 
13group taxpayers who are ordinarily required to apportion 
14business income under different subsections of this Section; 
15provided that this subparagraph (iv) shall apply only if 50% or 
16more of the business receipts of the unitary business group 
17determined by application of this subparagraph (iv) for the 
18taxable year are attributable to the matching, execution, or 
19clearing of transactions conducted by an entity described in 
20subparagraph (i), (ii), or (iii) of this paragraph. 
21 In no event shall the Illinois apportionment percentage 
22computed in accordance with this subsection (c-1) for any 
23taxpayer for any tax year be less than the Illinois 
24apportionment percentage computed under this subsection (c-1) 
25for that taxpayer for the first full tax year ending on or 
26after December 31, 2013 for which this subsection (c-1) applied 
 
 
10000SB0007ham003- 177 -LRB100 06307 SMS 40923 a


1to the taxpayer. 
2 (d) Transportation services. For taxable years ending 
3before December 31, 2008, business income derived from 
4furnishing
transportation services shall be apportioned to 
5this State in accordance
with paragraphs (1) and (2):

6  (1) Such business income (other than that derived from

7 transportation by pipeline) shall be apportioned to this 
8 State by
multiplying such income by a fraction, the 
9 numerator of which is the
revenue miles of the person in 
10 this State, and the denominator of which
is the revenue 
11 miles of the person everywhere. For purposes of this

12 paragraph, a revenue mile is the transportation of 1 
13 passenger or 1 net
ton of freight the distance of 1 mile 
14 for a consideration. Where a
person is engaged in the 
15 transportation of both passengers and freight,
the 
16 fraction above referred to shall be determined by means of 
17 an
average of the passenger revenue mile fraction and the 
18 freight revenue
mile fraction, weighted to reflect the 
19 person's

20   (A) relative railway operating income from total 
21 passenger and total
freight service, as reported to the 
22 Interstate Commerce Commission, in
the case of 
23 transportation by railroad, and

24   (B) relative gross receipts from passenger and 
25 freight
transportation, in case of transportation 
26 other than by railroad.

 
 
10000SB0007ham003- 178 -LRB100 06307 SMS 40923 a


1  (2) Such business income derived from transportation 
2 by pipeline
shall be apportioned to this State by 
3 multiplying such income by a
fraction, the numerator of 
4 which is the revenue miles of the person in
this State, and 
5 the denominator of which is the revenue miles of the
person 
6 everywhere. For the purposes of this paragraph, a revenue 
7 mile is
the transportation by pipeline of 1 barrel of oil, 
8 1,000 cubic feet of
gas, or of any specified quantity of 
9 any other substance, the distance
of 1 mile for a 
10 consideration.

11  (3) For taxable years ending on or after December 31, 
12 2008, business income derived from providing 
13 transportation services other than airline services shall 
14 be apportioned to this State by using a fraction, (a) the 
15 numerator of which shall be (i) all receipts from any 
16 movement or shipment of people, goods, mail, oil, gas, or 
17 any other substance (other than by airline) that both 
18 originates and terminates in this State, plus (ii) that 
19 portion of the person's gross receipts from movements or 
20 shipments of people, goods, mail, oil, gas, or any other 
21 substance (other than by airline) that originates in one 
22 state or jurisdiction and terminates in another state or 
23 jurisdiction, that is determined by the ratio that the 
24 miles traveled in this State bears to total miles 
25 everywhere and (b) the denominator of which shall be all 
26 revenue derived from the movement or shipment of people, 
 
 
10000SB0007ham003- 179 -LRB100 06307 SMS 40923 a


1 goods, mail, oil, gas, or any other substance (other than 
2 by airline). Where a taxpayer is engaged in the 
3 transportation of both passengers and freight, the 
4 fraction above referred to shall first be determined 
5 separately for passenger miles and freight miles. Then an 
6 average of the passenger miles fraction and the freight 
7 miles fraction shall be weighted to reflect the taxpayer's:
8   (A) relative railway operating income from total 
9 passenger and total freight service, as reported to the 
10 Surface Transportation Board, in the case of 
11 transportation by railroad; and
12   (B) relative gross receipts from passenger and 
13 freight transportation, in case of transportation 
14 other than by railroad.

15  (4) For taxable years ending on or after December 31, 
16 2008, business income derived from furnishing airline

17 transportation services shall be apportioned to this State 
18 by
multiplying such income by a fraction, the numerator of 
19 which is the
revenue miles of the person in this State, and 
20 the denominator of which
is the revenue miles of the person 
21 everywhere. For purposes of this
paragraph, a revenue mile 
22 is the transportation of one passenger or one net
ton of 
23 freight the distance of one mile for a consideration. If a

24 person is engaged in the transportation of both passengers 
25 and freight,
the fraction above referred to shall be 
26 determined by means of an
average of the passenger revenue 
 
 
10000SB0007ham003- 180 -LRB100 06307 SMS 40923 a


1 mile fraction and the freight revenue
mile fraction, 
2 weighted to reflect the person's relative gross receipts 
3 from passenger and freight
airline transportation.

4 (e) Combined apportionment. Where 2 or more persons are 
5engaged in
a unitary business as described in subsection 
6(a)(27) of
Section 1501,
a part of which is conducted in this 
7State by one or more members of the
group, the business income 
8attributable to this State by any such member
or members shall 
9be apportioned by means of the combined apportionment method.

10 (f) Alternative allocation. If the allocation and 
11apportionment
provisions of subsections (a) through (e) and of 
12subsection (h) do not, for taxable years ending before December 
1331, 2008, fairly represent the
extent of a person's business 
14activity in this State, or, for taxable years ending on or 
15after December 31, 2008, fairly represent the market for the 
16person's goods, services, or other sources of business income, 
17the person may
petition for, or the Director may, without a 
18petition, permit or require, in respect of all or any part
of 
19the person's business activity, if reasonable:

20  (1) Separate accounting;

21  (2) The exclusion of any one or more factors;

22  (3) The inclusion of one or more additional factors 
23 which will
fairly represent the person's business 
24 activities or market in this State; or

25  (4) The employment of any other method to effectuate an 
26 equitable
allocation and apportionment of the person's 
 
 
10000SB0007ham003- 181 -LRB100 06307 SMS 40923 a


1 business income.

2 (g) Cross reference. For allocation of business income by 
3residents,
see Section 301(a).

4 (h) For tax years ending on or after December 31, 1998, the 
5apportionment
factor of persons who apportion their business 
6income to this State under
subsection (a) shall be equal to:

7  (1) for tax years ending on or after December 31, 1998 
8 and before December
31, 1999, 16 2/3% of the property 
9 factor plus 16 2/3% of the payroll factor
plus
66 2/3% of 
10 the sales factor;

11  (2) for tax years ending on or after December 31, 1999 
12 and before December
31,
2000, 8 1/3% of the property factor 
13 plus 8 1/3% of the payroll factor plus 83
1/3%
of the sales 
14 factor;

15  (3) for tax years ending on or after December 31, 2000, 
16 the sales factor.

17If, in any tax year ending on or after December 31, 1998 and 
18before December
31, 2000, the denominator of the payroll, 
19property, or sales factor is zero,
the apportionment
factor 
20computed in paragraph (1) or (2) of this subsection for that 
21year shall
be divided by an amount equal to 100% minus the 
22percentage weight given to each
factor whose denominator is 
23equal to zero.

24(Source: P.A. 99-642, eff. 7-28-16; 100-201, eff. 8-18-17.)





25 (35 ILCS 5/710) (from Ch. 120, par. 7-710)



 
 
10000SB0007ham003- 182 -LRB100 06307 SMS 40923 a


1 Sec. 710. Withholding from lottery winnings. 
2 (a) In general. 
3  (1) Any person
making a payment to a resident or 
4 nonresident of winnings under the Illinois
Lottery Law and 
5 not required to withhold Illinois income tax from such 
6 payment
under Subsection (b) of Section 701 of this Act 
7 because those winnings are
not subject to Federal income 
8 tax withholding, must withhold Illinois income
tax from 
9 such payment at a rate equal to the percentage tax rate for 
10 individuals
provided in subsection (b) of Section 201, 
11 provided that withholding is
not required if such payment 
12 of winnings is less than $1,000.

13  (2) In the case of an assignment of a lottery prize 
14 under Section 13.1 of the Illinois Lottery Law, any person 
15 making a payment of the purchase price after December 31, 
16 2013, shall withhold from the amount of each payment at a 
17 rate equal to the percentage tax rate for individuals 
18 provided in subsection (b) of Section 201.
19  (3) Any person making a payment after December 31, 2018 
20 to a resident or nonresident of
winnings from pari-mutuel 
21 wagering conducted at a wagering facility licensed under 
22 the Illinois Horse
Racing Act of 1975 or from gambling 
23 games conducted on a riverboat or in a casino or 
24 organization gaming
facility licensed under the Illinois 
25 Gambling Act must withhold Illinois income tax from such 
26 payment at a
rate equal to the percentage tax rate for 
 
 
10000SB0007ham003- 183 -LRB100 06307 SMS 40923 a


1 individuals provided in subsection (b) of Section 201, 
2 provided that
the person making the payment is required to 
3 withhold under Section 3402(q) of the Internal Revenue 
4 Code. 
5 (b) Credit for taxes withheld. Any amount withheld under 
6Subsection (a)
shall be a credit against the Illinois income 
7tax liability of the person
to whom the payment of winnings was 
8made for the taxable year in which that
person incurred an 
9Illinois income tax liability with respect to those winnings.

10(Source: P.A. 98-496, eff. 1-1-14.)


11 Section 90-23. The Property Tax Code is amended by adding 
12Section 15-144 as follows:

13 (35 ILCS 200/15-144 new)
14 Sec. 15-144. Chicago Casino Development Authority. All 
15property owned by the Chicago Casino Development Authority is 
16exempt. Any property owned by the Chicago Casino Development 
17Authority and leased to any other entity is not exempt.

18 Section 90-24. The Illinois Municipal Code is amended by 
19adding Section 8-10-2.6 as follows:

20 (65 ILCS 5/8-10-2.6 new)
21 Sec. 8-10-2.6. Chicago Casino Development Authority. 
22Except as otherwise provided in the Chicago Casino Development 
 
 
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1Authority Act, this Division 10 applies to purchase orders and 
2contracts relating to the Chicago Casino Development 
3Authority.

4 Section 90-25. The Joliet Regional Port District Act is 
5amended by changing Section 5.1 as follows:




6 (70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)



7 Sec. 5.1. Riverboat and casino gambling. Notwithstanding 
8any other provision of
this Act, the District may not regulate 
9the operation, conduct, or
navigation of any riverboat gambling 
10casino licensed under the Illinois Riverboat
Gambling Act, and 
11the District
may not license, tax, or otherwise levy any 
12assessment of any kind on
any riverboat gambling casino 
13licensed under the Illinois Riverboat Gambling Act. The
General 
14Assembly declares that the powers to regulate the operation,

15conduct, and navigation of riverboat gambling casinos and to 
16license, tax,
and levy assessments upon riverboat gambling 
17casinos are exclusive powers of
the State of Illinois and the 
18Illinois Gaming Board as provided in the
Illinois Riverboat 
19Gambling Act.

20(Source: P.A. 87-1175.)


21 Section 90-30. The Consumer Installment Loan Act is amended 
22by changing Section 12.5 as follows:




 
 
10000SB0007ham003- 185 -LRB100 06307 SMS 40923 a


1 (205 ILCS 670/12.5)



2 Sec. 12.5. Limited purpose branch. 

3 (a) Upon the written approval of the Director, a licensee 
4may maintain a
limited purpose branch for the sole purpose of 
5making loans as permitted by
this Act. A limited purpose branch 
6may include an automatic loan machine. No
other activity shall 
7be conducted at the site, including but not limited to,

8accepting payments, servicing the accounts, or collections.

9 (b) The licensee must submit an application for a limited 
10purpose branch to
the Director on forms prescribed by the 
11Director with an application fee of
$300. The approval for the 
12limited purpose branch must be renewed concurrently
with the 
13renewal of the licensee's license along with a renewal fee of 
14$300 for
the limited purpose branch.

15 (c) The books, accounts, records, and files of the limited 
16purpose branch's
transactions shall be maintained at the 
17licensee's licensed location. The
licensee shall notify the 
18Director of the licensed location at which the books,
accounts, 
19records, and files shall be maintained.

20 (d) The licensee shall prominently display at the limited 
21purpose branch the
address and telephone number of the 
22licensee's licensed location.

23 (e) No other business shall be conducted at the site of the 
24limited purpose
branch unless authorized by the Director.

25 (f) The Director shall make and enforce reasonable rules 
26for the conduct of
a limited purpose branch.

 
 
10000SB0007ham003- 186 -LRB100 06307 SMS 40923 a


1 (g) A limited purpose branch may not be located
within 
21,000 feet of a facility operated by an inter-track wagering 
3licensee or
an organization licensee subject to the Illinois 
4Horse Racing Act of 1975,
on a riverboat or in a casino subject 
5to
the Illinois Riverboat Gambling Act, or within 1,000 feet of 
6the location at which the
riverboat docks or within 1,000 feet 
7of a casino.

8(Source: P.A. 90-437, eff. 1-1-98.)


9 Section 90-35. The Illinois Horse Racing Act of 1975 is 
10amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19, 
1120, 21, 24, 25, 26, 26.8, 26.9, 27, 30, 30.5, 31, 32.1, 36, 40, 
12and 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.34, 19.5, 
1334.3, and 56 as follows:




14 (230 ILCS 5/1.2)



15 Sec. 1.2. Legislative intent. This Act is intended to 
16benefit the people of the State of Illinois by
encouraging the 
17breeding and production of race horses, assisting economic

18development and promoting Illinois tourism.
The General 
19Assembly finds and declares it to be the public policy
of the 
20State
of Illinois to:

21 (a) support and enhance Illinois' horse racing industry, 
22which is a
significant
component within the agribusiness 
23industry;

24 (b) ensure that Illinois' horse racing industry remains 
 
 
10000SB0007ham003- 187 -LRB100 06307 SMS 40923 a


1competitive with
neighboring states;

2 (c) stimulate growth within Illinois' horse racing 
3industry, thereby
encouraging
new investment and development 
4to produce additional tax revenues and to
create additional 
5jobs;

6 (d) promote the further growth of tourism;

7 (e) encourage the breeding of thoroughbred and 
8standardbred horses in this
State; and

9 (f) ensure that public confidence and trust in the 
10credibility and integrity
of
racing operations and the 
11regulatory process is maintained.

12(Source: P.A. 91-40, eff. 6-25-99.)





13 (230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)



14 Sec. 3.11. 
"Organization Licensee" means any person 
15receiving
an organization license from the Board to conduct a 
16race meeting or meetings. With respect only to organization 
17gaming, "organization licensee" includes the authorization for 
18an organization gaming license under subsection (a) of Section 
1956 of this Act. 

20(Source: P.A. 79-1185.)





21 (230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)


22 Sec. 3.12. Pari-mutuel system of
wagering.
"Pari-mutuel 
23system of
wagering" means a form of wagering on the outcome of

24horse races in which
wagers are made in various
denominations 
 
 
10000SB0007ham003- 188 -LRB100 06307 SMS 40923 a


1on a horse or horses
and
all wagers for each race are pooled 
2and held by a licensee
for distribution in a manner approved by 
3the Board. "Pari-mutuel system of wagering" shall not include 
4wagering on historic races. Wagers may be placed via any method 
5or at any location authorized under this Act.

6(Source: P.A. 96-762, eff. 8-25-09.)


7 (230 ILCS 5/3.31 new)
8 Sec. 3.31. Adjusted gross receipts. "Adjusted gross 
9receipts" means the gross receipts less winnings paid to 
10wagerers.

11 (230 ILCS 5/3.32 new)
12 Sec. 3.32. Gross receipts. "Gross receipts" means the total 
13amount of money exchanged for the purchase of chips, tokens, or 
14electronic cards by riverboat or casino patrons or organization 
15gaming patrons.

16 (230 ILCS 5/3.33 new)
17 Sec. 3.33. Organization gaming facility. "Organization 
18gaming facility" means that portion of an organization 
19licensee's racetrack facilities at which gaming authorized 
20under Section 7.7 of the Illinois Gambling Act is conducted.

21 (230 ILCS 5/3.34 new)
22 Sec. 3.34. Organization gaming license. "Organization 
 
 
10000SB0007ham003- 189 -LRB100 06307 SMS 40923 a


1gaming license" means a license issued by the Illinois Gaming 
2Board under Section 7.7 of the Illinois Gambling Act 
3authorizing gaming pursuant to that Section at an organization 
4gaming facility.




5 (230 ILCS 5/6) (from Ch. 8, par. 37-6)


6 Sec. 6. Restrictions on Board members.  
7 (a) No person shall be appointed a member of the Board or 
8continue to be a member of the Board if the person or any 
9member of their immediate family is a member of the Board of 
10Directors, employee, or financially interested in any of the 
11following: (i) any licensee or other person who has applied for 
12racing dates to the Board, or the operations thereof including, 
13but not limited to, concessions, data processing, track 
14maintenance, track security, and pari-mutuel operations, 
15located, scheduled or doing business within the State of 
16Illinois, (ii) any race horse competing at a meeting under the 
17Board's jurisdiction, or (iii) any licensee under the Illinois 
18Gambling Act. No person shall be appointed a member of the 
19Board or continue
to be
a member of the Board who is (or any 
20member of whose family is) a member of the
Board of Directors 
21of, or who is a person financially interested in, any
licensee 
22or other person who has applied for racing dates to the
Board, 
23or the operations thereof including, but not
limited to, 
24concessions, data
processing, track maintenance, track 
25security and pari-mutuel operations,
located, scheduled
or 
 
 
10000SB0007ham003- 190 -LRB100 06307 SMS 40923 a


1doing business within the State of Illinois, or in any race 
2horse competing
at a meeting
under the Board's jurisdiction. No 
3Board member shall hold any other public
office for which he

4shall receive compensation other than necessary travel or other 
5incidental
expenses. 

6 (b) No person shall be a member of the Board who is not of 
7good moral
character or who
has been convicted of, or is under 
8indictment for, a felony under the laws
of Illinois or any

9other state, or the United States.

10 (c) No member of the Board or employee shall engage in any 
11political activity.
12 For the purposes of this subsection (c):
13 "Political" means any activity in support of or in 
14connection with any campaign for State or local elective office 
15or any political organization, but does not include activities 
16(i) relating to the support or opposition of any executive, 
17legislative, or administrative action (as those terms are 
18defined in Section 2 of the Lobbyist Registration Act), (ii) 
19relating to collective bargaining, or (iii) that are otherwise 
20in furtherance of the person's official State duties or 
21governmental and public service functions.
22 "Political organization" means a party, committee, 
23association, fund, or other organization (whether or not 
24incorporated) that is required to file a statement of 
25organization with the State Board of Elections or county clerk 
26under Section 9-3 of the Election Code, but only with regard to 
 
 
10000SB0007ham003- 191 -LRB100 06307 SMS 40923 a


1those activities that require filing with the State Board of 
2Elections or county clerk. 
3 (d) Board members and employees may not engage in 
4communications or any activity that may cause or have the 
5appearance of causing a conflict of interest. A conflict of 
6interest exists if a situation influences or creates the 
7appearance that it may influence judgment or performance of 
8regulatory duties and responsibilities. This prohibition shall 
9extend to any act identified by Board action that, in the 
10judgment of the Board, could represent the potential for or the 
11appearance of a conflict of interest.
12 (e) Board members and employees may not accept any gift, 
13gratuity, service, compensation, travel, lodging, or thing of 
14value, with the exception of unsolicited items of an incidental 
15nature, from any person, corporation, limited liability 
16company, or entity doing business with the Board.
17 (f) A Board member or employee shall not use or attempt to 
18use his or her official position to secure, or attempt to 
19secure, any privilege, advantage, favor, or influence for 
20himself or herself or others. No Board member or employee, 
21within a period of one year immediately preceding nomination by 
22the Governor or employment, shall have been employed or 
23received compensation or fees for services from a person or 
24entity, or its parent or affiliate, that has engaged in 
25business with the Board, a licensee or a licensee under the 
26Illinois Gambling Act. In addition, all Board members and 
 
 
10000SB0007ham003- 192 -LRB100 06307 SMS 40923 a


1employees are subject to the restrictions set forth in Section 
25-45 of the State Officials and Employees Ethics Act. 
3(Source: P.A. 89-16, eff. 5-30-95.)





4 (230 ILCS 5/9) (from Ch. 8, par. 37-9)



5 Sec. 9. 
The Board shall have all powers necessary and 
6proper to fully and
effectively execute the provisions of this 
7Act, including, but not
limited to, the following:

8 (a) The Board is vested with jurisdiction and supervision 
9over all race
meetings in this State, over all licensees doing 
10business
in this
State, over all occupation licensees, and over 
11all persons on the
facilities of any licensee. Such 
12jurisdiction shall
include the power to issue licenses to the 
13Illinois Department of
Agriculture authorizing the pari-mutuel 
14system of wagering
on harness and Quarter Horse races held (1) 
15at the Illinois State Fair in
Sangamon County, and (2) at the 
16DuQuoin State Fair in Perry County. The
jurisdiction of the 
17Board shall also include the power to issue licenses to
county 
18fairs which are eligible to receive funds pursuant to the

19Agricultural Fair Act, as now or hereafter amended, or their 
20agents,
authorizing the pari-mutuel system of wagering on horse

21races
conducted at the county fairs receiving such licenses. 
22Such licenses shall be
governed by subsection (n) of this 
23Section.

24 Upon application, the Board shall issue a license to the 
25Illinois Department
of Agriculture to conduct harness and 
 
 
10000SB0007ham003- 193 -LRB100 06307 SMS 40923 a


1Quarter Horse races at the Illinois State
Fair and at the 
2DuQuoin State Fairgrounds
during the scheduled dates of each 
3fair. The Board shall not require and the
Department of 
4Agriculture shall be exempt from the requirements of Sections

515.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5), 
6(e-10), (f),
(g), and (h) of Section 20, and Sections 21, 24 
7and 25. The Board and the Department
of
Agriculture may extend 
8any or all of these exemptions to any contractor or
agent 
9engaged by the Department of Agriculture to conduct its race 
10meetings
when the Board determines that this would best serve 
11the public interest and
the interest of horse racing.

12 Notwithstanding any provision of law to the contrary, it 
13shall be lawful for
any licensee to operate pari-mutuel 
14wagering
or
contract with the Department of Agriculture to 
15operate pari-mutuel wagering at
the DuQuoin State Fairgrounds 
16or for the Department to enter into contracts
with a licensee, 
17employ its owners,
employees
or
agents and employ such other 
18occupation licensees as the Department deems
necessary in 
19connection with race meetings and wagerings.

20 (b) The Board is vested with the full power to promulgate 
21reasonable
rules and regulations for the purpose of 
22administering the provisions of
this Act and to prescribe 
23reasonable rules, regulations and conditions
under which all 
24horse race meetings or wagering in the State shall be

25conducted. Such reasonable rules and regulations are to provide 
26for the
prevention of practices detrimental to the public 
 
 
10000SB0007ham003- 194 -LRB100 06307 SMS 40923 a


1interest and to promote the best
interests of horse racing and 
2to impose penalties for violations thereof.

3 (c) The Board, and any person or persons to whom it 
4delegates
this power, is vested with the power to enter the 
5facilities and other places of business of any licensee to 
6determine whether there has been compliance with
the provisions 
7of this Act and its rules and regulations.

8 (d) The Board, and any person or persons to whom it 
9delegates this
power, is vested with the authority to 
10investigate alleged violations of
the provisions of this Act, 
11its reasonable rules and regulations, orders
and final 
12decisions; the Board shall take appropriate disciplinary 
13action
against any licensee or occupation licensee for 
14violation
thereof or
institute appropriate legal action for the 
15enforcement thereof.

16 (e) The Board, and any person or persons to whom it 
17delegates this power,
may eject or exclude from any race 
18meeting or
the facilities of any licensee, or any part
thereof, 
19any occupation licensee or any
other individual whose conduct 
20or reputation is such that his presence on
those facilities 
21may, in the opinion of the Board, call into question
the 
22honesty and integrity of horse racing or wagering or interfere 
23with the
orderly
conduct of horse racing or wagering; provided, 
24however, that no person
shall be
excluded or ejected from the 
25facilities of any licensee solely on the grounds of
race, 
26color, creed, national origin, ancestry, or sex. The power to 
 
 
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1eject
or exclude an occupation licensee or other individual may

2be exercised for just cause by the licensee or the Board, 
3subject to subsequent hearing by the
Board as to the propriety 
4of said exclusion.

5 (f) The Board is vested with the power to acquire,

6establish, maintain and operate (or provide by contract to

7maintain and operate) testing laboratories and related 
8facilities,
for the purpose of conducting saliva, blood, urine 
9and other tests on the
horses run or to be run in any horse race 
10meeting, including races run at county fairs, and to purchase 
11all
equipment and supplies deemed necessary or desirable in 
12connection with
any such testing laboratories and related 
13facilities and all such tests.

14 (g) The Board may require that the records, including 
15financial or other
statements of any licensee or any person 
16affiliated with the licensee who is
involved directly or 
17indirectly in the activities of any licensee as regulated
under 
18this Act to the extent that those financial or other statements 
19relate to
such activities be kept in
such manner as prescribed 
20by the Board, and that Board employees shall have
access to 
21those records during reasonable business
hours. Within 120 days 
22of the end of its fiscal year, each licensee shall
transmit to

23the Board
an audit of the financial transactions and condition 
24of the licensee's total
operations. All audits shall be 
25conducted by certified public accountants.
Each certified 
26public accountant must be registered in the State of Illinois

 
 
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1under the Illinois Public Accounting Act. The compensation for 
2each certified
public accountant shall be paid directly by the 
3licensee to the certified
public accountant. A licensee shall 
4also submit any other financial or related
information the 
5Board deems necessary to effectively administer this Act and

6all rules, regulations, and final decisions promulgated under 
7this Act.

8 (h) The Board shall name and appoint in the manner provided 
9by the rules
and regulations of the Board: an Executive 
10Director; a State director
of mutuels; State veterinarians and 
11representatives to take saliva, blood,
urine and other tests on 
12horses; licensing personnel; revenue
inspectors; and State 
13seasonal employees (excluding admission ticket
sellers and 
14mutuel clerks). All of those named and appointed as provided
in 
15this subsection shall serve during the pleasure of the Board; 
16their
compensation shall be determined by the Board and be paid 
17in the same
manner as other employees of the Board under this 
18Act.

19 (i) The Board shall require that there shall be 3 stewards 
20at each horse
race meeting, at least 2 of whom shall be named 
21and appointed by the Board.
Stewards appointed or approved by 
22the Board, while performing duties
required by this Act or by 
23the Board, shall be entitled to the same rights
and immunities 
24as granted to Board members and Board employees in Section
10 
25of this Act.

26 (j) The Board may discharge any Board employee
who fails or 
 
 
10000SB0007ham003- 197 -LRB100 06307 SMS 40923 a


1refuses for any reason to comply with the rules and
regulations 
2of the Board, or who, in the opinion of the Board,
is guilty of 
3fraud, dishonesty or who is proven to be incompetent.
The Board 
4shall have no right or power to determine who shall be 
5officers,
directors or employees of any licensee, or their 
6salaries
except the Board may, by rule, require that all or any 
7officials or
employees in charge of or whose duties relate to 
8the actual running of
races be approved by the Board.

9 (k) The Board is vested with the power to appoint
delegates 
10to execute any of the powers granted to it under this Section

11for the purpose of administering this Act and any rules or 
12regulations
promulgated in accordance with this Act.

13 (l) The Board is vested with the power to impose civil 
14penalties of up to
$5,000 against an individual and up to 
15$10,000 against a
licensee for each
violation of any provision 
16of this Act, any rules adopted by the Board, any
order of the 
17Board or any other action which, in the Board's discretion, is

18a detriment or impediment to horse racing or wagering. 
19Beginning on the date when any organization licensee begins 
20conducting gaming pursuant to an organization gaming license 
21issued under the Illinois Gambling Act, the power granted to 
22the Board pursuant to this subsection (l) shall authorize the 
23Board to impose penalties of up to $10,000 against an 
24individual and up to $25,000 against a licensee. All such civil 
25penalties shall be deposited into the Horse Racing Fund. 

26 (m) The Board is vested with the power to prescribe a form 
 
 
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1to be used
by licensees as an application for employment for 
2employees of
each licensee.

3 (n) The Board shall have the power to issue a license
to 
4any county fair, or its
agent, authorizing the conduct of the 
5pari-mutuel system of
wagering. The Board is vested with the 
6full power to promulgate
reasonable rules, regulations and 
7conditions under which all horse race
meetings licensed 
8pursuant to this subsection shall be held and conducted,

9including rules, regulations and conditions for the conduct of 
10the
pari-mutuel system of wagering. The rules, regulations and

11conditions shall provide for the prevention of practices 
12detrimental to the
public interest and for the best interests 
13of horse racing, and shall
prescribe penalties for violations 
14thereof. Any authority granted the
Board under this Act shall 
15extend to its jurisdiction and supervision over
county fairs, 
16or their agents, licensed pursuant to this subsection.
However, 
17the Board may waive any provision of this Act or its rules or

18regulations which would otherwise apply to such county fairs or 
19their agents.

20 (o) Whenever the Board is authorized or
required by law to 
21consider some aspect of criminal history record
information for 
22the purpose of carrying out its statutory powers and

23responsibilities, then, upon request and payment of fees in 
24conformance
with the requirements of Section 2605-400 of
the 
25Department of State Police Law (20 ILCS 2605/2605-400), the 
26Department of State Police is
authorized to furnish, pursuant 
 
 
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1to positive identification, such
information contained in 
2State files as is necessary to fulfill the request.

3 (p) To insure the convenience, comfort, and wagering 
4accessibility of
race track patrons, to provide for the 
5maximization of State revenue, and
to generate increases in 
6purse allotments to the horsemen, the Board shall
require any 
7licensee to staff the pari-mutuel department with
adequate 
8personnel. 

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 
12occupation
licenses
to horse owners, trainers, harness 
13drivers, jockeys, agents, apprentices,
grooms, stable foremen, 
14exercise persons, veterinarians, valets, blacksmiths,

15concessionaires and others designated by the Board whose work, 
16in whole or in
part, is conducted upon facilities within the 
17State. Such occupation licenses
will
be obtained prior to the

18persons engaging in their vocation upon such facilities. The

19Board shall not license pari-mutuel clerks, parking 
20attendants, security
guards and employees of concessionaires. 
21No occupation license shall be
required of
any person who works 
22at facilities within this
State as a pari-mutuel
clerk, parking 
23attendant, security guard or as an employee of a 
24concessionaire.
Concessionaires of the Illinois State Fair and 
25DuQuoin State Fair and
employees of the Illinois Department of 
 
 
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1Agriculture shall not be required to
obtain an occupation 
2license by the Board.

3 (b) Each application for an occupation license shall be on 
4forms
prescribed by the Board. Such license, when issued, shall 
5be for the
period ending December 31 of each year, except that 
6the Board in its
discretion may grant 3-year licenses. The 
7application shall
be accompanied
by a fee of not more than $25 
8per year
or, in the case of 3-year occupation
license

9applications, a fee of not more than $60. Each applicant shall 
10set forth in
the application his full name and address, and if 
11he had been issued prior
occupation licenses or has been 
12licensed in any other state under any other
name, such name, 
13his age, whether or not a permit or license issued to him
in 
14any other state has been suspended or revoked and if so whether 
15such
suspension or revocation is in effect at the time of the 
16application, and
such other information as the Board may 
17require. Fees for registration of
stable names shall not exceed 
18$50.00. Beginning on the date when any organization licensee 
19begins conducting gaming pursuant to an organization gaming 
20license issued under the Illinois Gambling Act, the fee for 
21registration of stable names shall not exceed $150, and the 
22application fee for an occupation license shall not exceed $75, 
23per year or, in the case of a 3-year occupation license 
24application, the fee shall not exceed $180. 

25 (c) The Board may in its discretion refuse an occupation 
26license
to any person:


 
 
10000SB0007ham003- 201 -LRB100 06307 SMS 40923 a


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 
20to the
Department
of State Police in the form and manner 
21prescribed by the Department of State
Police. These 
22fingerprints shall be checked against the fingerprint records

23now and hereafter filed in the Department of State
Police and 
24Federal Bureau of Investigation criminal history records

25databases. The Department of State Police shall charge
a fee 
26for conducting the criminal history records check, which shall 
 
 
10000SB0007ham003- 202 -LRB100 06307 SMS 40923 a


1be
deposited in the State Police Services Fund and shall not 
2exceed the actual
cost of the records check. The Department of 
3State Police shall furnish,
pursuant to positive 
4identification, records of conviction to the Board.
Each 
5applicant for licensure shall submit with his occupation

6license
application, on forms provided by the Board, 2 sets of 
7his fingerprints.
All such applicants shall appear in person at 
8the location designated by
the Board for the purpose of 
9submitting such sets of fingerprints; however,
with the prior 
10approval of a State steward, an applicant may have such sets
of 
11fingerprints taken by an official law enforcement agency and 
12submitted to
the Board.

13 (f) The Board may, in its discretion, issue an occupation 
14license without
submission of fingerprints if an applicant has 
15been duly licensed in another
recognized racing jurisdiction 
16after submitting fingerprints that were
subjected to a Federal 
17Bureau of Investigation criminal history background
check
in

18that jurisdiction.

19 (g) Beginning on the date when any organization licensee 
20begins conducting gaming pursuant to an organization gaming 
21license issued under the Illinois Gambling Act, the Board may 
22charge each applicant a reasonable non-refundable fee to defray 
23the costs associated with the background investigation 
24conducted by the Board. This fee shall be exclusive of any 
25other fee or fees charged in connection with an application for 
26and, if applicable, the issuance of, an organization gaming 
 
 
10000SB0007ham003- 203 -LRB100 06307 SMS 40923 a


1license. If the costs of the investigation exceed the amount of 
2the fee charged, the Board shall immediately notify the 
3applicant of the additional amount owed, payment of which must 
4be submitted to the Board within 7 days after such 
5notification. All information, records, interviews, reports, 
6statements, memoranda, or other data supplied to or used by the 
7Board in the course of its review or investigation of an 
8applicant for a license or renewal under this Act shall be 
9privileged, strictly confidential, and shall be used only for 
10the purpose of evaluating an applicant for a license or a 
11renewal. Such information, records, interviews, reports, 
12statements, memoranda, or other data shall not be admissible as 
13evidence, nor discoverable, in any action of any kind in any 
14court or before any tribunal, board, agency, or person, except 
15for 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 
19for racing dates
shall deliver to the Board a certified check 
20or bank draft payable to the order
of the Board for $1,000. In 
21the event the applicant applies for racing dates
in 2 or 3 
22successive calendar years as provided in subsection (b) of 
23Section
21, the fee shall be $2,000. Filing fees shall not be 
24refunded in the event
the application is denied. Beginning on 
25the date when any organization licensee begins conducting 
 
 
10000SB0007ham003- 204 -LRB100 06307 SMS 40923 a


1gaming pursuant to an organization gaming license issued under 
2the Illinois Gambling Act, the application fee for racing dates 
3imposed by this subsection (a) shall be $10,000 and the 
4application fee for racing dates in 2 or 3 successive calendar 
5years as provided in subsection (b) of Section 21 shall be 
6$20,000. All filing fees shall be deposited into the Horse 
7Racing Fund. 

8 (b) In addition to the filing fee imposed by subsection (a) 
9of $1000 and the fees provided in
subsection (j) of Section 20, 
10each organization licensee shall pay a license
fee of $100 for 
11each 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 
14handle is $700,000 or more.
The
additional fees required to be 
15paid under this Section by this amendatory Act
of 1982 shall be 
16remitted by the organization licensee to the Illinois Racing

17Board with each day's graduated privilege tax or pari-mutuel 
18tax and
breakage as provided under
Section 27. Beginning on the 
19date when any organization licensee begins conducting gaming 
20pursuant to an organization gaming license issued under the 
21Illinois Gambling Act, the license fee imposed by this 
22subsection (b) shall be $200 for each racing program on which 
23the organization licensee's daily pari-mutuel handle is 
24$100,000 or more, but less than $400,000, and the license fee 
25imposed by this subsection (b) shall be $400 for each racing 
26program on which the organization licensee's daily pari-mutuel 
 
 
10000SB0007ham003- 205 -LRB100 06307 SMS 40923 a


1handle is $400,000 or more. 

2 (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois 
3Municipal Code,"
approved May 29, 1961, as now or hereafter 
4amended, 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 
8conduct 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 
 
 
10000SB0007ham003- 206 -LRB100 06307 SMS 40923 a


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 
19unless authorized by
ordinance or referendum of the 
20municipality in which a race track or any
of its appurtenances 
21or facilities are located, or utilized.

22 (c) If any person is ineligible to receive an
organization

23license because of any of the matters set forth in subsection 
24(a) (2) or
subsection (a) (3) of this Section, any other or 
25separate person that
either (i) controls, directly or 
26indirectly, such ineligible person
or (ii) is controlled, 
 
 
10000SB0007ham003- 207 -LRB100 06307 SMS 40923 a


1directly or indirectly, by such ineligible
person or by a 
2person which controls, directly or indirectly, such
ineligible 
3person shall also be ineligible.

4(Source: P.A. 88-495; 89-16, eff. 5-30-95.)


5 (230 ILCS 5/19.5 new)
6 Sec. 19.5. Standardbred racetrack in Cook County. 
7Notwithstanding anything in this Act to the contrary, in 
8addition to organization licenses issued by the Board on the 
9effective date of this amendatory Act of the 100th General 
10Assembly, the Board shall issue an organization license limited 
11to standardbred racing to a racetrack located in Cook County. 
12The organization license shall be granted upon application, and 
13the licensee shall have all of the current and future rights of 
14existing Illinois racetracks, including, but not limited to, 
15the ability to obtain an inter-track wagering license, the 
16ability to obtain inter-track wagering location licenses, the 
17ability to obtain an organization gaming license pursuant to 
18the Illinois Gambling Act, and the ability to offer internet 
19wagering on horse racing.




20 (230 ILCS 5/20) (from Ch. 8, par. 37-20)



21 Sec. 20. 
(a) Any person desiring to conduct a horse race 
22meeting may
apply to the Board for an organization license. The 
23application shall be
made on a form prescribed and furnished by 
24the Board. The application shall
specify:


 
 
10000SB0007ham003- 208 -LRB100 06307 SMS 40923 a


1  (1) the dates on which
it intends to conduct the horse 
2 race meeting, which
dates shall be provided
under Section 
3 21;


4  (2) the hours of each racing day between which it 
5 intends to
hold or
conduct horse racing at such meeting;


6  (3) the location where it proposes to conduct the

7 meeting; and


8  (4) any other information the Board may reasonably 
9 require.

10 (b) A separate application for an organization license 
11shall be filed
for each horse race meeting
which such person 
12proposes to hold. Any such application, if made by an

13individual, or by any individual as trustee, shall be
signed 
14and verified under oath by such individual. If the application 
15is
made by individuals, then it shall be signed and verified 
16under oath by at least 2 of the individuals; if the application 
17is made by or a partnership, it shall be signed and
verified 
18under oath by at least 2 of such individuals or members of such

19partnership as the case may be. If made by an association, a 
20corporation, a
corporate trustee, a limited liability company, 
21or any other entity, it shall be signed by an authorized 
22officer, a partner, a member, or a manager, as the case may be, 
23of the entity the president
and attested by the secretary or 
24assistant secretary under the seal
of such association, trust 
25or corporation if it has a seal, and shall
also be verified 
26under oath by one of the signing officers.

 
 
10000SB0007ham003- 209 -LRB100 06307 SMS 40923 a


1 (c) The application shall specify: 
2  (1) the name of the
persons, association, trust, or 
3 corporation making such application; and 
4  (2) the principal
post office address of the applicant; 
5  (3) if the applicant is a trustee, the
names and 
6 addresses of the beneficiaries; if the applicant is a 
7 corporation, the names and
post office addresses of all 
8 officers, stockholders and directors; or if
such

9 stockholders hold stock as a nominee or fiduciary, the 
10 names and post
office addresses of the parties these 
11 persons, partnerships, corporations, or trusts
who are the 
12 beneficial owners thereof or who are beneficially 
13 interested
therein; and if the applicant is a partnership, 
14 the names and post office addresses of all
partners, 
15 general or limited; if the applicant is a limited liability 
16 company, the names and addresses of the manager and 
17 members; and if the applicant is any other entity, the 
18 names and addresses of all officers or other authorized 
19 persons of the entity corporation, the name
of the state of 
20 its incorporation shall be specified.

21 (d) The applicant shall execute and file with the Board a 
22good faith
affirmative action plan to recruit, train, and 
23upgrade minorities in all
classifications within the 
24association.

25 (e) With such
application there shall be delivered to the 
26Board a
certified check or bank draft payable to the order of 
 
 
10000SB0007ham003- 210 -LRB100 06307 SMS 40923 a


1the Board for an
amount equal to $1,000. All applications for

2the issuance of an organization license shall be filed with the 
3Board before
August 1 of the year prior to the year for which 
4application is made and shall be acted
upon by the Board at a 
5meeting to be held on such date as shall be fixed
by the Board 
6during the last 15 days of September of such prior year.
At 
7such meeting, the Board shall announce
the award of the racing 
8meets, live racing schedule, and designation of host
track to 
9the applicants and its approval or disapproval of each

10application. No announcement shall
be considered binding until 
11a formal order is executed by the Board, which
shall be 
12executed no later than October 15 of that prior year.
Absent 
13the agreement of
the affected organization licensees, the Board 
14shall not grant overlapping
race meetings to 2 or more tracks 
15that are within 100 miles of each
other to conduct the 
16thoroughbred racing.

17 (e-1) In awarding standardbred racing dates for calendar 
18year 2019, the Board shall award at least 160 racing dates, and 
19each organization licensee shall average at least 10 races for 
20each racing date awarded. In awarding standardbred racing dates 
21for calendar year 2020, the Board shall award at least 200 
22racing dates, and each organization licensee shall average at 
23least 11 races for each racing date awarded. In awarding 
24standardbred racing dates for calendar year 2021 and 
25thereafter, the Board shall award at least 260 racing dates, 
26and each organization licensee shall average at least 11 races 
 
 
10000SB0007ham003- 211 -LRB100 06307 SMS 40923 a


1for each racing date awarded unless a lesser schedule of live 
2racing is a result of an agreement with the organization 
3representing the largest number of standardbred owners, 
4breeders, trainers, drivers, caretakers in the State. 
5Standardbred racing conducted in Sangamon County shall not be 
6considered races under this subsection (e-1).
7 (e-2) In awarding racing dates for calendar year 2019 and 
8thereafter, the Board shall award thoroughbred racing days to 
9Cook County organization licensees commensurate with these 
10organization licensees' requirement that they shall run at 
11least 1,950 thoroughbred races in the aggregate, so long as 2 
12organization licensees are conducting gaming operations 
13pursuant to an organization license. Additionally, if the 
14organization licensees that run thoroughbred races in Cook 
15County are conducting gaming operations pursuant to an 
16organization license under the Illinois Gambling Act, the Board 
17shall increase the number of thoroughbred races to be run in 
18Cook County in the aggregate to at least the following:
19  (i) 2,050 races in any year following the most recent 
20 preceding complete calendar year when the combined 
21 adjusted gross receipts of the organization gaming 
22 licensees operating at Cook County racetracks total in 
23 excess of $200,000,000, but do not exceed $250,000,000; 
24  (ii) 2,125 races in any year following the most recent 
25 preceding complete calendar year when the combined 
26 adjusted gross receipts of the organization gaming 
 
 
10000SB0007ham003- 212 -LRB100 06307 SMS 40923 a


1 licensees operating at Cook County racetracks total in 
2 excess of $250,000,000, but do not exceed $300,000,000; 
3  (iii) 2,200 races in any year following the most recent 
4 preceding complete calendar year when the combined 
5 adjusted gross receipts of the organization gaming 
6 licensees operating at Cook County racetracks total in 
7 excess of $300,000,000, but do not exceed $350,000,000; 
8  (iv) 2,300 races in any year following the most recent 
9 preceding complete calendar year when the combined 
10 adjusted gross receipts of the organization gaming 
11 licensees operating at Cook County racetracks total in 
12 excess of $350,000,000, but do not exceed $400,000,000; 
13  (v) 2,375 races in any year following the most recent 
14 preceding complete calendar year when the combined 
15 adjusted gross receipts of the organization gaming 
16 licensees operating at Cook County racetracks total in 
17 excess of $400,000,000, but do not exceed $450,000,000; 
18  (vi) 2,450 races in any year following the most recent 
19 preceding complete calendar year when the combined 
20 adjusted gross receipts of the organization gaming 
21 licensees operating at Cook County racetracks total in 
22 excess of $450,000,000, but do not exceed $500,000,000; 
23  (vii) 2,550 races in any year following the most recent 
24 preceding complete calendar year when the combined 
25 adjusted gross receipts of the organization gaming 
26 licensees operating at Cook County racetracks exceed 
 
 
10000SB0007ham003- 213 -LRB100 06307 SMS 40923 a


1 $500,000,000. 
2 In awarding racing dates under this subsection (e-2), the 
3Board shall have the discretion to allocate those thoroughbred 
4racing dates among these Cook County organization licensees. 
5 (e-3) In awarding racing dates for calendar year 2019 and 
6thereafter in connection with a racetrack in Madison County, 
7the Board shall award racing dates and such organization 
8licensee shall run at least 700 thoroughbred races at the 
9racetrack in Madison County each year. 
10 Notwithstanding Section 7.7 of the Illinois Gambling Act or 
11any provision of this Act other than subsection (e-4.5), for 
12each calendar year for which an organization gaming licensee 
13located in Madison County requests racing dates resulting in 
14less than 700 live thoroughbred races at its racetrack 
15facility, the organization gaming licensee may not conduct 
16gaming pursuant to an organization gaming license issued under 
17the Illinois Gambling Act for the calendar year of such 
18requested live races. 
19 (e-4) Notwithstanding the provisions of Section 7.7 of the 
20Illinois Gambling Act or any provision of this Act other than 
21subsections (e-3) and (e-4.5), for each calendar year for which 
22an organization gaming licensee requests thoroughbred racing 
23dates which results in a number of live races under its 
24organization license that is less than the total number of live 
25races which it conducted in 2017 at its racetrack facility, the 
26organization gaming licensee may not conduct gaming pursuant to 
 
 
10000SB0007ham003- 214 -LRB100 06307 SMS 40923 a


1its organization gaming license for the calendar year of such 
2requested live races. 
3 (e-4.1) Notwithstanding the provisions of Section 7.7 of 
4the Illinois Gambling Act or any provision of this Act other 
5than subsections (e-3) and (e-4.5), for each calendar year for 
6which an organization licensee requests racing dates for 
7standardbred racing which results in a number of live races 
8that is less than the total number of live races required in 
9subsection (e-1), the organization gaming licensee may not 
10conduct gaming pursuant to its organization gaming license for 
11the calendar year of such requested live races. 
12 (e-4.5) The Board shall ensure that each organization 
13licensee shall individually run a sufficient number of races 
14per year to qualify for an organization gaming license under 
15this Act. The General Assembly finds that the minimum live 
16racing guarantees contained in subsections (e-1), (e-2), and 
17(e-3) are in the best interest of the sport of horse racing, 
18and that such guarantees may only be reduced in the limited 
19circumstances described in this subsection. The Board may 
20decrease the number of racing days without affecting an 
21organization licensee's ability to conduct gaming pursuant to 
22an organization gaming license issued under the Illinois 
23Gambling Act only if the Board determines, after notice and 
24hearing, that: 
25  (i) a decrease is necessary to maintain a sufficient 
26 number of betting interests per race to ensure the 
 
 
10000SB0007ham003- 215 -LRB100 06307 SMS 40923 a


1 integrity of racing; 
2  (ii) there are unsafe track conditions due to weather 
3 or acts of God;
4  (iii) there is an agreement between an organization 
5 licensee and the breed association that is applicable to 
6 the involved live racing guarantee, such association 
7 representing either the largest number of thoroughbred 
8 owners and trainers or the largest number of standardbred 
9 owners, trainers and drivers who race horses at the 
10 involved organization licensee's racing meeting, so long 
11 as the agreement does not compromise the integrity of the 
12 sport of horse racing; or
13  (iv) the horse population or purse levels are 
14 insufficient to provide the number of racing opportunities 
15 otherwise required in this Act. 
16 In decreasing the number of racing dates in accordance with 
17this subsection, the Board shall hold a hearing and shall 
18provide the public and all interested parties notice and an 
19opportunity to be heard. The Board shall accept testimony from 
20all interested parties, including any association representing 
21owners, trainers, jockeys, or drivers who will be affected by 
22the decrease in racing dates. The Board shall provide a written 
23explanation of the reasons for the decrease and the Board's 
24findings. The written explanation shall include a listing and 
25content of all communication between any party and any Illinois 
26Racing Board member or staff that does not take place at a 
 
 
10000SB0007ham003- 216 -LRB100 06307 SMS 40923 a


1public meeting of the Board. 
2 (e-5) In reviewing an application for the purpose of 
3granting an
organization license consistent with
the best 
4interests of the public and the
sport of horse racing, the 
5Board shall consider:


6  (1) the character, reputation, experience, and 
7 financial integrity of the
applicant and of any other 
8 separate person that either:


9   (i) controls the applicant, directly or 
10 indirectly, or


11   (ii) is controlled, directly or indirectly, by 
12 that applicant or by a
person who controls, directly or 
13 indirectly, that applicant;


14  (2) the applicant's facilities or proposed facilities 
15 for conducting
horse
racing;


16  (3) the total revenue without regard to Section 32.1 to 
17 be derived by
the State and horsemen from the applicant's

18 conducting a race meeting;


19  (4) the applicant's good faith affirmative action plan 
20 to recruit, train,
and upgrade minorities in all employment 
21 classifications;


22  (5) the applicant's financial ability to purchase and 
23 maintain adequate
liability and casualty insurance;


24  (6) the applicant's proposed and prior year's 
25 promotional and marketing
activities and expenditures of 
26 the applicant associated with those activities;


 
 
10000SB0007ham003- 217 -LRB100 06307 SMS 40923 a


1  (7) an agreement, if any, among organization licensees 
2 as provided in
subsection (b) of Section 21 of this Act; 
3 and


4  (8) the extent to which the applicant exceeds or meets 
5 other standards for
the issuance of an organization license 
6 that the Board shall adopt by rule.

7 In granting organization licenses and allocating dates for 
8horse race
meetings, the Board shall have discretion to 
9determine an overall schedule,
including required simulcasts 
10of Illinois races by host tracks that will, in
its judgment, be 
11conducive to the best interests of
the public and the sport of 
12horse racing.

13 (e-10) The Illinois Administrative Procedure Act shall 
14apply to
administrative procedures of the Board under this Act 
15for the granting of an
organization license, except that (1) 
16notwithstanding the provisions of
subsection (b) of Section 
1710-40 of the Illinois Administrative Procedure Act
regarding 
18cross-examination, the
Board may prescribe rules limiting the 
19right of an applicant or participant in
any proceeding to award 
20an organization license to conduct cross-examination of

21witnesses at that proceeding where that cross-examination 
22would unduly obstruct
the timely award of an organization 
23license under subsection (e) of Section 20
of this Act; (2) the 
24provisions of Section 10-45 of the Illinois Administrative

25Procedure Act regarding proposals for decision are excluded 
26under this Act; (3)
notwithstanding the provisions of 
 
 
10000SB0007ham003- 218 -LRB100 06307 SMS 40923 a


1subsection (a) of Section 10-60 of the
Illinois Administrative 
2Procedure Act regarding ex parte communications, the
Board may 
3prescribe rules allowing ex parte communications with 
4applicants or
participants in a proceeding to award an 
5organization license where conducting
those communications 
6would be in the best interest of racing, provided all
those 
7communications are made part of the record of that proceeding 
8pursuant
to subsection (c) of Section 10-60 of the Illinois 
9Administrative
Procedure Act; (4) the provisions of Section 14a 
10of this Act and the rules of
the Board promulgated under that 
11Section shall apply instead of the provisions
of Article 10 of 
12the Illinois Administrative Procedure Act regarding

13administrative law judges; and (5) the provisions of subsection 
14(d)
of Section 10-65 of the Illinois Administrative Procedure 
15Act that prevent
summary suspension of a license pending 
16revocation or other action shall not
apply.

17 (f) The Board may allot racing dates to an organization 
18licensee for more
than one calendar year but for no more than 3 
19successive calendar years in
advance, provided that the Board 
20shall review such allotment for more than
one calendar year 
21prior to each year for which such allotment has been
made. The 
22granting of an organization license to a person constitutes a

23privilege to conduct a horse race meeting under the provisions 
24of this Act, and
no person granted an organization license 
25shall be deemed to have a vested
interest, property right, or 
26future expectation to receive an organization
license in any 
 
 
10000SB0007ham003- 219 -LRB100 06307 SMS 40923 a


1subsequent year as a result of the granting of an organization

2license. Organization licenses shall be subject to revocation 
3if the
organization licensee has violated any provision of this 
4Act
or the rules and regulations promulgated under this Act or 
5has been convicted
of a crime or has failed to disclose or has 
6stated falsely any information
called for in the application 
7for an organization license. Any
organization license 
8revocation
proceeding shall be in accordance with Section 16 
9regarding suspension and
revocation of occupation licenses.

10 (f-5) If, (i) an applicant does not file an acceptance of 
11the racing dates
awarded by the Board as required under part 
12(1) of subsection (h) of this
Section 20, or (ii) an 
13organization licensee has its license suspended or
revoked 
14under this Act, the Board, upon conducting an emergency hearing 
15as
provided for in this Act, may reaward on an emergency basis 
16pursuant to
rules established by the Board, racing dates not 
17accepted or the racing
dates
associated with any suspension or 
18revocation period to one or more organization
licensees, new 
19applicants, or any combination thereof, upon terms and

20conditions that the Board determines are in the best interest 
21of racing,
provided, the organization licensees or new 
22applicants receiving the awarded
racing dates file an 
23acceptance of those reawarded racing dates as
required under 
24paragraph (1) of subsection (h) of this Section 20 and comply

25with the other provisions of this Act. The Illinois 
26Administrative Procedure
Act shall not apply to the 
 
 
10000SB0007ham003- 220 -LRB100 06307 SMS 40923 a


1administrative procedures of the Board in conducting
the 
2emergency hearing and the reallocation of racing dates on an 
3emergency
basis.

4 (g) (Blank).

5 (h) The Board shall send the applicant a copy of its 
6formally
executed order by certified mail addressed to the 
7applicant at the
address stated in his application, which 
8notice shall be mailed within 5 days
of the date the formal 
9order is executed.

10 Each applicant notified shall, within 10 days after receipt 
11of the
final executed order of the Board awarding
racing dates:


12  (1) file with the Board an acceptance of such
award in

13 the form
prescribed by the Board;


14  (2) pay to the Board an additional amount equal to $110 
15 for each
racing date awarded; and


16  (3) file with the Board the bonds required in Sections 
17 21
and 25 at least
20 days prior to the first day of each 
18 race meeting.

19Upon compliance with the provisions of paragraphs (1), (2), and 
20(3) of
this subsection (h), the applicant shall be issued an

21organization license.

22 If any applicant fails to comply with this Section or fails

23to pay the organization license fees herein provided, no 
24organization
license shall be issued to such applicant.

25(Source: P.A. 97-333, eff. 8-12-11.)





 
 
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1 (230 ILCS 5/21) (from Ch. 8, par. 37-21)



2 Sec. 21. 
(a) Applications for organization licenses must be 
3filed with
the Board at a time and place prescribed by the 
4rules and regulations of
the Board. The Board shall examine the 
5applications within 21 days
after
the date allowed for filing 
6with respect to their conformity with this Act
and such rules 
7and regulations as may be prescribed by the Board. If any

8application does not comply with this Act or the rules and 
9regulations
prescribed by the Board, such application may be 
10rejected and an
organization license refused to the applicant, 
11or the Board may, within 21
days of the receipt of such 
12application, advise the applicant of the
deficiencies of the 
13application under the Act or the rules and regulations of
the 
14Board,
and require the submittal of an amended application 
15within a reasonable time
determined by the Board; and upon 
16submittal of the amended application by the
applicant, the 
17Board may consider the
application consistent with the process 
18described in subsection (e-5) of
Section 20 of this Act. If it

19is found to be in compliance with this Act and the rules and 
20regulations of
the Board, the Board may then issue an 
21organization license to such applicant.

22 (b) The Board may exercise discretion in granting racing

23dates to qualified applicants different from those requested by 
24the
applicants in their
applications. However, if all eligible 
25applicants for organization
licenses whose tracks are located 
26within 100 miles of each other execute
and submit to the Board 
 
 
10000SB0007ham003- 222 -LRB100 06307 SMS 40923 a


1a written agreement among such applicants as to
the award of 
2racing dates, including where applicable racing
programs, for

3up to 3 consecutive years, then subject to annual review of 
4each
applicant's compliance with Board rules and regulations, 
5provisions of this
Act and conditions contained in annual dates 
6orders issued by the Board,
the Board may grant such dates and 
7programs
to such applicants
as so agreed by them if the Board 
8determines that the grant of these racing
dates is in the best

9interests of racing. The Board shall treat any such agreement 
10as the
agreement signatories' joint and several application for 
11racing dates
during the term of the agreement.

12 (c) Where 2 or more applicants propose to conduct horse

13race meetings within 35 miles of each other, as certified to 
14the Board
under Section 19 (a) (1) of this Act, on conflicting 
15dates, the Board may
determine and grant the number of racing 
16days to be awarded to
the several
applicants in accordance with 
17the provisions of subsection (e-5) of Section
20 of this
Act.

18 (d) (Blank).

19 (e) Prior to the issuance of an organization license, the 
20applicant
shall file with the Board a bond payable to the State 
21of Illinois in the
sum of $200,000, executed by the applicant 
22and a surety company or
companies authorized to do business in 
23this State, and conditioned upon the
payment by the 
24organization licensee of all taxes due under Section 27,
other 
25monies due and payable under this Act, all purses due and 
26payable,
and that the organization licensee will upon 
 
 
10000SB0007ham003- 223 -LRB100 06307 SMS 40923 a


1presentation of the winning
ticket or
tickets distribute all 
2sums due to the patrons of pari-mutuel pools. Beginning on the 
3date when any organization licensee begins conducting gaming 
4pursuant to an organization gaming license issued under the 
5Illinois Gambling Act, the amount of the bond required under 
6this subsection (e) shall be $500,000. 

7 (f) Each organization license shall specify the person to 
8whom it is
issued, the dates upon which horse racing is 
9permitted, and the location,
place, track, or enclosure where 
10the horse race meeting is to be held.

11 (g) Any person who owns one or more race tracks
within the 
12State
may seek, in its own name, a separate organization 
13license
for each race track.

14 (h) All racing conducted under such organization license is 
15subject to
this Act and to the rules and regulations from time 
16to time prescribed by
the Board, and every such organization 
17license issued by the Board shall
contain a recital to that 
18effect.

19 (i) Each such organization licensee may provide
that at 
20least one race per day may be devoted to
the racing of quarter 
21horses, appaloosas, arabians, or paints.

22 (j) In acting on applications for organization licenses, 
23the Board shall
give weight to an organization license which 
24has
implemented a good faith affirmative
action effort to 
25recruit, train and upgrade minorities in all classifications

26within the organization license.

 
 
10000SB0007ham003- 224 -LRB100 06307 SMS 40923 a


1(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)





2 (230 ILCS 5/24) (from Ch. 8, par. 37-24)



3 Sec. 24. 
(a) No license shall be issued to or held by an 
4organization
licensee unless all of its officers, directors, 
5and holders of ownership
interests of at least 5% are first 
6approved by the Board. The Board shall not
give approval of an 
7organization license application to any person who has been

8convicted of or is under an indictment for a crime of moral 
9turpitude or has
violated any provision of the racing law of 
10this State or any rules of the
Board. 

11 (b) An organization licensee must notify the Board within 
1210 days of any
change in the holders of a direct or indirect 
13interest in the ownership of the
organization licensee. The 
14Board may, after hearing, revoke the organization
license of 
15any
person who registers on its books or knowingly permits a 
16direct or indirect
interest in the ownership of that person 
17without notifying the Board of the
name of the holder in 
18interest within this period.

19 (c) In addition to the provisions of subsection
(a) of this 
20Section, no person shall be granted an
organization
license if

21any public official of the State or member of his
or her family 
22holds any ownership or financial interest, directly or

23indirectly, in the person.

24 (d) No person which has been granted an organization

25license
to hold a race meeting shall give to any public 
 
 
10000SB0007ham003- 225 -LRB100 06307 SMS 40923 a


1official or member of his
family, directly or indirectly, for 
2or without consideration, any interest in the person. The Board 
3shall, after hearing, revoke
the organization license granted 
4to a person which has
violated this subsection.

5 (e) (Blank).

6 (f) No organization licensee or concessionaire or officer, 
7director or
holder or controller of
5% or more legal or 
8beneficial interest in any organization licensee or
concession

9shall make any sort of
gift or contribution that is prohibited 
10under Article 10 of the State Officials and Employees Ethics 
11Act of any kind or pay or give any money or other thing
of value 
12to any
person who is a public official, or a candidate or 
13nominee for public office if that payment or gift is prohibited 
14under Article 10 of the State Officials and Employees Ethics 
15Act.

16(Source: P.A. 89-16, eff. 5-30-95.)





17 (230 ILCS 5/25) (from Ch. 8, par. 37-25)



18 Sec. 25. Admission charge; bond; fine. 
19 (a) There shall be paid to the Board at such time or times 
20as
it shall prescribe, the sum of fifteen cents (15¢) for each 
21person entering
the grounds or enclosure of each organization 
22licensee and
inter-track wagering licensee upon a ticket of 
23admission except as provided
in subsection (g) of Section 27 of 
24this Act. If
tickets are issued for more than one day then the 
25sum of fifteen cents
(15¢) shall be paid for each person using 
 
 
10000SB0007ham003- 226 -LRB100 06307 SMS 40923 a


1such ticket on each day that the
same shall be used. Provided, 
2however, that no charge shall be made on
tickets of admission 
3issued to and in the name of directors, officers,
agents or 
4employees of the organization licensee, or inter-track 
5wagering
licensee, or to owners, trainers, jockeys,
drivers and 
6their employees or to any person or persons entering the

7grounds or enclosure for the transaction of business in 
8connection with such
race meeting. The organization licensee or 
9inter-track wagering licensee
may, if it desires, collect such 
10amount from
each ticket holder in addition to the amount or 
11amounts charged for such
ticket of admission. Beginning on the 
12date when any organization licensee begins conducting gaming 
13pursuant to an organization gaming license issued under the 
14Illinois Gambling Act, the admission charge imposed by this 
15subsection (a) shall be 40 cents for each person entering the 
16grounds or enclosure of each organization licensee and 
17inter-track wagering licensee upon a ticket of admission, and 
18if such tickets are issued for more than one day, 40 cents 
19shall be paid for each person using such ticket on each day 
20that the same shall be used. 

21 (b) Accurate records and books shall at all times be kept 
22and maintained by
the organization licensees and inter-track 
23wagering licensees
showing the admission tickets issued and 
24used on each racing
day and the attendance thereat of each 
25horse racing meeting. The Board or
its duly authorized 
26representative or representatives shall at all
reasonable 
 
 
10000SB0007ham003- 227 -LRB100 06307 SMS 40923 a


1times have access to the admission records of any organization

2licensee and inter-track wagering licensee for
the purpose of 
3examining and checking the same and ascertaining whether or
not 
4the proper amount has been or is being paid the State of 
5Illinois as
herein provided. The Board shall also require, 
6before issuing any license,
that the licensee shall execute and 
7deliver to it a bond, payable to the
State of Illinois, in such 
8sum as it shall determine, not, however, in
excess of fifty 
9thousand dollars ($50,000), with a surety or sureties to be

10approved by it, conditioned for the payment of all sums due and 
11payable or
collected by it under this Section upon admission 
12fees received for any
particular racing meetings. The Board may 
13also from time to time require sworn
statements of the number 
14or numbers of such admissions and may prescribe blanks
upon 
15which such reports shall be made. Any organization licensee or

16inter-track wagering licensee failing or
refusing to pay the 
17amount found to be due as herein provided, shall be
deemed 
18guilty of a business offense and upon conviction shall be 
19punished by a
fine of not more than five thousand dollars 
20($5,000) in addition to the amount
due from such organization 
21licensee or inter-track wagering licensee as
herein provided. 
22All fines paid into court by an organization
licensee or 
23inter-track wagering licensee found guilty of violating this

24Section shall be transmitted and paid
over by the clerk of the 
25court to the Board. Beginning on the date when any organization 
26licensee begins conducting gaming pursuant to an organization 
 
 
10000SB0007ham003- 228 -LRB100 06307 SMS 40923 a


1gaming license issued under the Illinois Gambling Act, any fine 
2imposed pursuant to this subsection (b) shall not exceed 
3$10,000. 

4(Source: P.A. 88-495; 89-16, eff. 5-30-95.)





5 (230 ILCS 5/26) (from Ch. 8, par. 37-26)


6 Sec. 26. Wagering. 

7 (a) Any licensee may conduct and supervise the pari-mutuel 
8system of
wagering, as defined in Section 3.12 of this Act, on 
9horse races conducted by
an Illinois organization
licensee or 
10conducted at a racetrack located in another state or country 
11and
televised in Illinois in accordance with subsection (g) of 
12Section 26 of this
Act. Subject to the prior consent of the 
13Board, licensees may supplement any
pari-mutuel pool in order 
14to guarantee a minimum distribution. Such
pari-mutuel method of 
15wagering shall not,
under any circumstances if conducted under 
16the provisions of this Act,
be held or construed to be 
17unlawful, other statutes of this State to the
contrary 
18notwithstanding.
Subject to rules for advance wagering 
19promulgated by the Board, any
licensee
may accept wagers in 
20advance of the day of
the race wagered upon occurs.

21 (b) Except for those gaming activities for which a license 
22is obtained and authorized under the Illinois Lottery Law, the 
23Charitable Games Act, the Raffles and Poker Runs Act, or the 
24Illinois Gambling Act, no No other method of betting, pool 
25making, wagering or
gambling shall be used or permitted by the 
 
 
10000SB0007ham003- 229 -LRB100 06307 SMS 40923 a


1licensee. Each licensee
may retain, subject to the payment of 
2all applicable
taxes and purses, an amount not to exceed 17% of 
3all money wagered
under subsection (a) of this Section, except 
4as may otherwise be permitted
under this Act.

5 (b-5) An individual may place a wager under the pari-mutuel 
6system from
any licensed location authorized under this Act 
7provided that wager is
electronically recorded in the manner 
8described in Section 3.12 of this Act.
Any wager made 
9electronically by an individual while physically on the 
10premises
of a licensee shall be deemed to have been made at the 
11premises of that
licensee.

12 (c) Until January 1, 2000, the sum held by any licensee for 
13payment of
outstanding pari-mutuel tickets, if unclaimed prior 
14to December 31 of the
next year, shall be retained by the 
15licensee for payment of
such tickets until that date. Within 10 
16days thereafter, the balance of
such sum remaining unclaimed, 
17less any uncashed supplements contributed by such
licensee for 
18the purpose of guaranteeing minimum distributions
of any 
19pari-mutuel pool, shall be
paid to the
Illinois
Veterans'

20Rehabilitation Fund of the State treasury, except as provided 
21in subsection
(g) of Section 27 of this Act.

22 (c-5) Beginning January 1, 2000, the sum held by any 
23licensee for payment
of
outstanding pari-mutuel tickets, if 
24unclaimed prior to December 31 of the
next year, shall be 
25retained by the licensee for payment of
such tickets until that 
26date. Within 10 days thereafter, the balance of
such sum 
 
 
10000SB0007ham003- 230 -LRB100 06307 SMS 40923 a


1remaining unclaimed, less any uncashed supplements contributed 
2by such
licensee for the purpose of guaranteeing minimum 
3distributions
of any pari-mutuel pool, shall be evenly 
4distributed to the purse account of
the organization licensee 
5and the organization licensee.

6 (d) A pari-mutuel ticket shall be honored until December 31 
7of the
next calendar year, and the licensee shall pay the same 
8and may
charge the amount thereof against unpaid money 
9similarly accumulated on account
of pari-mutuel tickets not 
10presented for payment.

11 (e) No licensee shall knowingly permit any minor, other

12than an employee of such licensee or an owner, trainer,
jockey, 
13driver, or employee thereof, to be admitted during a racing

14program unless accompanied by a parent or guardian, or any 
15minor to be a
patron of the pari-mutuel system of wagering 
16conducted or
supervised by it. The admission of any 
17unaccompanied minor, other than
an employee of the licensee or 
18an owner, trainer, jockey,
driver, or employee thereof at a 
19race track is a Class C
misdemeanor.

20 (f) Notwithstanding the other provisions of this Act, an

21organization licensee may contract
with an entity in another 
22state or country to permit any legal
wagering entity in another 
23state or country to accept wagers solely within
such other 
24state or country on races conducted by the organization 
25licensee
in this State.
Beginning January 1, 2000, these wagers

26shall not be subject to State
taxation. Until January 1, 2000,

 
 
10000SB0007ham003- 231 -LRB100 06307 SMS 40923 a


1when the out-of-State entity conducts a pari-mutuel pool

2separate from the organization licensee, a privilege tax equal 
3to 7 1/2% of
all monies received by the organization licensee 
4from entities in other states
or countries pursuant to such 
5contracts is imposed on the organization
licensee, and such 
6privilege tax shall be remitted to the
Department of Revenue

7within 48 hours of receipt of the moneys from the simulcast. 
8When the
out-of-State entity conducts a
combined pari-mutuel 
9pool with the organization licensee, the tax shall be 10%
of 
10all monies received by the organization licensee with 25% of 
11the
receipts from this 10% tax to be distributed to the county

12in which the race was conducted.

13 An organization licensee may permit one or more of its 
14races to be
utilized for
pari-mutuel wagering at one or more 
15locations in other states and may
transmit audio and visual 
16signals of races the organization licensee
conducts to one or

17more locations outside the State or country and may also permit 
18pari-mutuel
pools in other states or countries to be combined 
19with its gross or net
wagering pools or with wagering pools 
20established by other states.

21 (g) A host track may accept interstate simulcast wagers on

22horse
races conducted in other states or countries and shall 
23control the
number of signals and types of breeds of racing in 
24its simulcast program,
subject to the disapproval of the Board. 
25The Board may prohibit a simulcast
program only if it finds 
26that the simulcast program is clearly
adverse to the integrity 
 
 
10000SB0007ham003- 232 -LRB100 06307 SMS 40923 a


1of racing. The host track
simulcast program shall
include the 
2signal of live racing of all organization licensees.
All 
3non-host licensees and advance deposit wagering licensees 
4shall carry the signal of and accept wagers on live racing of 
5all organization licensees. Advance deposit wagering licensees 
6shall not be permitted to accept out-of-state wagers on any 
7Illinois signal provided pursuant to this Section without the 
8approval and consent of the organization licensee providing the 
9signal. For one year after August 15, 2014 (the effective date 
10of Public Act 98-968), non-host licensees may carry the host 
11track simulcast program and
shall accept wagers on all races 
12included as part of the simulcast
program of horse races 
13conducted at race tracks located within North America upon 
14which wagering is permitted. For a period of one year after 
15August 15, 2014 (the effective date of Public Act 98-968), on 
16horse races conducted at race tracks located outside of North 
17America, non-host licensees may accept wagers on all races 
18included as part of the simulcast program upon which wagering 
19is permitted. Beginning August 15, 2015 (one year after the 
20effective date of Public Act 98-968), non-host licensees may 
21carry the host track simulcast program and shall accept wagers 
22on all races included as part of the simulcast program upon 
23which wagering is permitted.
All organization licensees shall 
24provide their live signal to all advance deposit wagering 
25licensees for a simulcast commission fee not to exceed 6% of 
26the advance deposit wagering licensee's Illinois handle on the 
 
 
10000SB0007ham003- 233 -LRB100 06307 SMS 40923 a


1organization licensee's signal without prior approval by the 
2Board. The Board may adopt rules under which it may permit 
3simulcast commission fees in excess of 6%. The Board shall 
4adopt rules limiting the interstate commission fees charged to 
5an advance deposit wagering licensee. The Board shall adopt 
6rules regarding advance deposit wagering on interstate 
7simulcast races that shall reflect, among other things, the 
8General Assembly's desire to maximize revenues to the State, 
9horsemen purses, and organizational licensees. However, 
10organization licensees providing live signals pursuant to the 
11requirements of this subsection (g) may petition the Board to 
12withhold their live signals from an advance deposit wagering 
13licensee if the organization licensee discovers and the Board 
14finds reputable or credible information that the advance 
15deposit wagering licensee is under investigation by another 
16state or federal governmental agency, the advance deposit 
17wagering licensee's license has been suspended in another 
18state, or the advance deposit wagering licensee's license is in 
19revocation proceedings in another state. The organization 
20licensee's provision of their live signal to an advance deposit 
21wagering licensee under this subsection (g) pertains to wagers 
22placed from within Illinois. Advance deposit wagering 
23licensees may place advance deposit wagering terminals at 
24wagering facilities as a convenience to customers. The advance 
25deposit wagering licensee shall not charge or collect any fee 
26from purses for the placement of the advance deposit wagering 
 
 
10000SB0007ham003- 234 -LRB100 06307 SMS 40923 a


1terminals. The costs and expenses
of the host track and 
2non-host licensees associated
with interstate simulcast

3wagering, other than the interstate
commission fee, shall be 
4borne by the host track and all
non-host licensees
incurring 
5these costs.
The interstate commission fee shall not exceed 5% 
6of Illinois handle on the
interstate simulcast race or races 
7without prior approval of the Board. The
Board shall promulgate 
8rules under which it may permit
interstate commission
fees in 
9excess of 5%. The interstate commission
fee and other fees 
10charged by the sending racetrack, including, but not
limited 
11to, satellite decoder fees, shall be uniformly applied
to the 
12host track and all non-host licensees.

13 Notwithstanding any other provision of this Act, through 
14December 31, 2018, an organization licensee, with the consent 
15of the horsemen association representing the largest number of 
16owners, trainers, jockeys, or standardbred drivers who race 
17horses at that organization licensee's racing meeting, may 
18maintain a system whereby advance deposit wagering may take 
19place or an organization licensee, with the consent of the 
20horsemen association representing the largest number of 
21owners, trainers, jockeys, or standardbred drivers who race 
22horses at that organization licensee's racing meeting, may 
23contract with another person to carry out a system of advance 
24deposit wagering. Such consent may not be unreasonably 
25withheld. Only with respect to an appeal to the Board that 
26consent for an organization licensee that maintains its own 
 
 
10000SB0007ham003- 235 -LRB100 06307 SMS 40923 a


1advance deposit wagering system is being unreasonably 
2withheld, the Board shall issue a final order within 30 days 
3after initiation of the appeal, and the organization licensee's 
4advance deposit wagering system may remain operational during 
5that 30-day period. The actions of any organization licensee 
6who conducts advance deposit wagering or any person who has a 
7contract with an organization licensee to conduct advance 
8deposit wagering who conducts advance deposit wagering on or 
9after January 1, 2013 and prior to June 7, 2013 (the effective 
10date of Public Act 98-18) taken in reliance on the changes made 
11to this subsection (g) by Public Act 98-18 are hereby 
12validated, provided payment of all applicable pari-mutuel 
13taxes are remitted to the Board. All advance deposit wagers 
14placed from within Illinois must be placed through a 
15Board-approved advance deposit wagering licensee; no other 
16entity may accept an advance deposit wager from a person within 
17Illinois. All advance deposit wagering is subject to any rules 
18adopted by the Board. The Board may adopt rules necessary to 
19regulate advance deposit wagering through the use of emergency 
20rulemaking in accordance with Section 5-45 of the Illinois 
21Administrative Procedure Act. The General Assembly finds that 
22the adoption of rules to regulate advance deposit wagering is 
23deemed an emergency and necessary for the public interest, 
24safety, and welfare. An advance deposit wagering licensee may 
25retain all moneys as agreed to by contract with an organization 
26licensee. Any moneys retained by the organization licensee from 
 
 
10000SB0007ham003- 236 -LRB100 06307 SMS 40923 a


1advance deposit wagering, not including moneys retained by the 
2advance deposit wagering licensee, shall be paid 50% to the 
3organization licensee's purse account and 50% to the 
4organization licensee. With the exception of any organization 
5licensee that is owned by a publicly traded company that is 
6incorporated in a state other than Illinois and advance deposit 
7wagering licensees under contract with such organization 
8licensees, organization licensees that maintain advance 
9deposit wagering systems and advance deposit wagering 
10licensees that contract with organization licensees shall 
11provide sufficiently detailed monthly accountings to the 
12horsemen association representing the largest number of 
13owners, trainers, jockeys, or standardbred drivers who race 
14horses at that organization licensee's racing meeting so that 
15the horsemen association, as an interested party, can confirm 
16the accuracy of the amounts paid to the purse account at the 
17horsemen association's affiliated organization licensee from 
18advance deposit wagering. If more than one breed races at the 
19same race track facility, then the 50% of the moneys to be paid 
20to an organization licensee's purse account shall be allocated 
21among all organization licensees' purse accounts operating at 
22that race track facility proportionately based on the actual 
23number of host days that the Board grants to that breed at that 
24race track facility in the current calendar year. To the extent 
25any fees from advance deposit wagering conducted in Illinois 
26for wagers in Illinois or other states have been placed in 
 
 
10000SB0007ham003- 237 -LRB100 06307 SMS 40923 a


1escrow or otherwise withheld from wagers pending a 
2determination of the legality of advance deposit wagering, no 
3action shall be brought to declare such wagers or the 
4disbursement of any fees previously escrowed illegal.
5  (1) Between the hours of 6:30 a.m. and 6:30 p.m. an

6 inter-track wagering
licensee other than the host track may 
7 supplement the host track simulcast
program with 
8 additional simulcast races or race programs, provided that 
9 between
January 1 and the third Friday in February of any 
10 year, inclusive, if no live
thoroughbred racing is 
11 occurring in Illinois during this period, only

12 thoroughbred races may be used
for supplemental interstate 
13 simulcast purposes. The Board shall withhold
approval for a 
14 supplemental interstate simulcast only if it finds that the

15 simulcast is clearly adverse to the integrity of racing. A 
16 supplemental
interstate simulcast may be transmitted from 
17 an inter-track wagering licensee to
its affiliated 
18 non-host licensees. The interstate commission fee for a

19 supplemental interstate simulcast shall be paid by the 
20 non-host licensee and
its affiliated non-host licensees 
21 receiving the simulcast.

22  (2) Between the hours of 6:30 p.m. and 6:30 a.m. an

23 inter-track wagering
licensee other than the host track may 
24 receive supplemental interstate
simulcasts only with the 
25 consent of the host track, except when the Board
finds that 
26 the simulcast is
clearly adverse to the integrity of 
 
 
10000SB0007ham003- 238 -LRB100 06307 SMS 40923 a


1 racing. Consent granted under this
paragraph (2) to any 
2 inter-track wagering licensee shall be deemed consent to

3 all non-host licensees. The interstate commission fee for 
4 the supplemental
interstate simulcast shall be paid
by all 
5 participating non-host licensees.

6  (3) Each licensee conducting interstate simulcast 
7 wagering may retain,
subject to the payment of all 
8 applicable taxes and the purses, an amount not to
exceed 
9 17% of all money wagered. If any licensee conducts the 
10 pari-mutuel
system wagering on races conducted at 
11 racetracks in another state or country,
each such race or 
12 race program shall be considered a separate racing day for

13 the purpose of determining the daily handle and computing 
14 the privilege tax of
that daily handle as provided in 
15 subsection (a) of Section 27.
Until January 1, 2000,
from 
16 the sums permitted to be retained pursuant to this 
17 subsection, each
inter-track wagering location licensee 
18 shall pay 1% of the pari-mutuel handle
wagered on simulcast 
19 wagering to the Horse Racing Tax Allocation Fund, subject

20 to the provisions of subparagraph (B) of paragraph (11) of 
21 subsection (h) of
Section 26 of this Act.

22  (4) A licensee who receives an interstate simulcast may 
23 combine its gross
or net pools with pools at the sending 
24 racetracks pursuant to rules established
by the Board. All 
25 licensees combining their gross pools
at a
sending 
26 racetrack shall adopt the take-out percentages of the 
 
 
10000SB0007ham003- 239 -LRB100 06307 SMS 40923 a


1 sending
racetrack.
A licensee may also establish a separate 
2 pool and takeout structure for
wagering purposes on races 
3 conducted at race tracks outside of the
State of Illinois. 
4 The licensee may permit pari-mutuel wagers placed in other

5 states or
countries to be combined with its gross or net 
6 wagering pools or other
wagering pools.

7  (5) After the payment of the interstate commission fee 
8 (except for the
interstate commission
fee on a supplemental 
9 interstate simulcast, which shall be paid by the host
track 
10 and by each non-host licensee through the host-track) and 
11 all applicable
State and local
taxes, except as provided in 
12 subsection (g) of Section 27 of this Act, the
remainder of 
13 moneys retained from simulcast wagering pursuant to this

14 subsection (g), and Section 26.2 shall be divided as 
15 follows:

16   (A) For interstate simulcast wagers made at a host 
17 track, 50% to the
host
track and 50% to purses at the 
18 host track.

19   (B) For wagers placed on interstate simulcast 
20 races, supplemental
simulcasts as defined in 
21 subparagraphs (1) and (2), and separately pooled races

22 conducted outside of the State of Illinois made at a 
23 non-host
licensee, 25% to the host
track, 25% to the 
24 non-host licensee, and 50% to the purses at the host 
25 track.

26  (6) Notwithstanding any provision in this Act to the 
 
 
10000SB0007ham003- 240 -LRB100 06307 SMS 40923 a


1 contrary, non-host
licensees
who derive their licenses 
2 from a track located in a county with a population in

3 excess of 230,000 and that borders the Mississippi River 
4 may receive
supplemental interstate simulcast races at all 
5 times subject to Board approval,
which shall be withheld 
6 only upon a finding that a supplemental interstate

7 simulcast is clearly adverse to the integrity of racing.

8  (7) Notwithstanding any provision of this Act to the 
9 contrary, after
payment of all applicable State and local 
10 taxes and interstate commission fees,
non-host licensees 
11 who derive their licenses from a track located in a county

12 with a population in excess of 230,000 and that borders the 
13 Mississippi River
shall retain 50% of the retention from 
14 interstate simulcast wagers and shall
pay 50% to purses at 
15 the track from which the non-host licensee derives its

16 license as follows:

17   (A) Between January 1 and the third Friday in 
18 February, inclusive, if no
live thoroughbred racing is 
19 occurring in Illinois during this period, when the

20 interstate simulcast is a standardbred race, the purse 
21 share to its
standardbred purse account;

22   (B) Between January 1 and the third Friday in 
23 February, inclusive, if no
live thoroughbred racing is 
24 occurring in Illinois during this period, and the

25 interstate simulcast is a thoroughbred race, the purse 
26 share to its interstate
simulcast purse pool to be 
 
 
10000SB0007ham003- 241 -LRB100 06307 SMS 40923 a


1 distributed under paragraph (10) of this subsection

2 (g);

3   (C) Between January 1 and the third Friday in 
4 February, inclusive, if
live thoroughbred racing is 
5 occurring in Illinois, between 6:30 a.m. and 6:30
p.m. 
6 the purse share from wagers made during this time 
7 period to its
thoroughbred purse account and between 
8 6:30 p.m. and 6:30 a.m. the purse share
from wagers 
9 made during this time period to its standardbred purse 
10 accounts;

11   (D) Between the third Saturday in February and 
12 December 31, when the
interstate simulcast occurs 
13 between the hours of 6:30 a.m. and 6:30 p.m., the
purse 
14 share to its thoroughbred purse account;

15   (E) Between the third Saturday in February and 
16 December 31, when the
interstate simulcast occurs 
17 between the hours of 6:30 p.m. and 6:30 a.m., the
purse 
18 share to its standardbred purse account.

19  (7.1) Notwithstanding any other provision of this Act 
20 to the contrary,
if
no
standardbred racing is conducted at 
21 a racetrack located in Madison County
during any
calendar 
22 year beginning on or after January 1, 2002, all
moneys 
23 derived by
that racetrack from simulcast wagering and 
24 inter-track wagering that (1) are to
be used
for purses and 
25 (2) are generated between the hours of 6:30 p.m. and 6:30 
26 a.m.
during that
calendar year shall
be paid as follows:

 
 
10000SB0007ham003- 242 -LRB100 06307 SMS 40923 a


1   (A) If the licensee that conducts horse racing at 
2 that racetrack
requests from the Board at least as many 
3 racing dates as were conducted in
calendar year 2000, 
4 80% shall be paid to its thoroughbred purse account; 
5 and

6   (B) Twenty percent shall be deposited into the 
7 Illinois Colt Stakes
Purse
Distribution
Fund and shall 
8 be paid to purses for standardbred races for Illinois 
9 conceived
and foaled horses conducted at any county 
10 fairgrounds.
The moneys deposited into the Fund 
11 pursuant to this subparagraph (B) shall be
deposited

12 within 2
weeks after the day they were generated, shall 
13 be in addition to and not in
lieu of any other
moneys 
14 paid to standardbred purses under this Act, and shall 
15 not be commingled
with other moneys paid into that 
16 Fund. The moneys deposited
pursuant to this 
17 subparagraph (B) shall be allocated as provided by the

18 Department of Agriculture, with the advice and 
19 assistance of the Illinois
Standardbred
Breeders Fund 
20 Advisory Board.

21  (7.2) Notwithstanding any other provision of this Act 
22 to the contrary, if
no
thoroughbred racing is conducted at 
23 a racetrack located in Madison County
during any
calendar 
24 year beginning on or after January 1,
2002, all
moneys 
25 derived by
that racetrack from simulcast wagering and 
26 inter-track wagering that (1) are to
be used
for purses and 
 
 
10000SB0007ham003- 243 -LRB100 06307 SMS 40923 a


1 (2) are generated between the hours of 6:30 a.m. and 6:30 
2 p.m.
during that
calendar year shall
be deposited as 
3 follows:

4   (A) If the licensee that conducts horse racing at 
5 that racetrack
requests from the
Board at least
as many 
6 racing dates as were conducted in calendar year 2000, 
7 80%
shall be deposited into its standardbred purse

8 account; and

9   (B) Twenty percent shall be deposited into the 
10 Illinois Colt Stakes
Purse
Distribution Fund. Moneys 
11 deposited into the Illinois Colt Stakes Purse

12 Distribution Fund
pursuant to this subparagraph (B) 
13 shall be paid to Illinois
conceived and foaled 
14 thoroughbred breeders' programs
and to thoroughbred 
15 purses for races conducted at any county fairgrounds 
16 for
Illinois conceived
and foaled horses at the 
17 discretion of the
Department of Agriculture, with the 
18 advice and assistance of
the Illinois Thoroughbred 
19 Breeders Fund Advisory
Board. The moneys deposited 
20 into the Illinois Colt Stakes Purse Distribution
Fund

21 pursuant to this subparagraph (B) shall be deposited 
22 within 2 weeks
after the day they were generated, shall 
23 be in addition to and not in
lieu of any other moneys 
24 paid to thoroughbred purses
under this Act, and shall 
25 not be commingled with other moneys deposited into
that 
26 Fund.

 
 
10000SB0007ham003- 244 -LRB100 06307 SMS 40923 a


1  (7.3) If no live standardbred racing is conducted at a 
2 racetrack located
in
Madison
County in calendar year 2000 
3 or 2001,
an organization licensee who is licensed
to 
4 conduct horse racing at that racetrack shall, before 
5 January 1, 2002, pay
all
moneys derived from simulcast 
6 wagering and inter-track wagering in calendar
years 2000 
7 and 2001 and
paid into the licensee's standardbred purse 
8 account as follows:

9   (A) Eighty percent to that licensee's thoroughbred 
10 purse account to
be used for thoroughbred purses; and

11   (B) Twenty percent to the Illinois Colt Stakes 
12 Purse Distribution
Fund.

13  Failure to make the payment to the Illinois Colt Stakes 
14 Purse Distribution
Fund before January 1, 2002
shall
result 
15 in the immediate revocation of the licensee's organization

16 license, inter-track wagering license, and inter-track 
17 wagering location
license.

18  Moneys paid into the Illinois
Colt Stakes Purse 
19 Distribution Fund pursuant to this
paragraph (7.3) shall be 
20 paid to purses for standardbred
races for Illinois 
21 conceived and foaled horses conducted
at any county

22 fairgrounds.
Moneys paid into the Illinois
Colt Stakes 
23 Purse Distribution Fund pursuant to this
paragraph (7.3) 
24 shall be used as determined by the
Department of 
25 Agriculture, with the advice and assistance of the
Illinois 
26 Standardbred Breeders Fund Advisory Board, shall be in 
 
 
10000SB0007ham003- 245 -LRB100 06307 SMS 40923 a


1 addition to
and not in lieu of any other moneys paid to 
2 standardbred purses under this Act,
and shall not be 
3 commingled
with any other moneys paid into that Fund.

4  (7.4) If live standardbred racing is conducted at a 
5 racetrack located in
Madison
County at any time in calendar 
6 year 2001 before the payment required
under
paragraph (7.3) 
7 has been made, the organization licensee who is licensed to

8 conduct
racing at that racetrack shall pay all moneys 
9 derived by that racetrack from
simulcast
wagering and 
10 inter-track wagering during calendar years 2000 and 2001 
11 that (1)
are to be
used for purses and (2) are generated 
12 between the hours of 6:30 p.m. and 6:30
a.m.
during 2000 or 
13 2001 to the standardbred purse account at that
racetrack to

14 be used for standardbred purses.

15  (8) Notwithstanding any provision in this Act to the 
16 contrary, an
organization licensee from a track located in 
17 a county with a population in
excess of 230,000 and that 
18 borders the Mississippi River and its affiliated
non-host 
19 licensees shall not be entitled to share in any retention 
20 generated on
racing, inter-track wagering, or simulcast 
21 wagering at any other Illinois
wagering facility.

22  (8.1) Notwithstanding any provisions in this Act to the 
23 contrary, if 2
organization licensees
are conducting 
24 standardbred race meetings concurrently
between the hours 
25 of 6:30 p.m. and 6:30 a.m., after payment of all applicable

26 State and local taxes and interstate commission fees, the 
 
 
10000SB0007ham003- 246 -LRB100 06307 SMS 40923 a


1 remainder of the
amount retained from simulcast wagering 
2 otherwise attributable to the host
track and to host track 
3 purses shall be split daily between the 2
organization 
4 licensees and the purses at the tracks of the 2 
5 organization
licensees, respectively, based on each 
6 organization licensee's share
of the total live handle for 
7 that day,
provided that this provision shall not apply to 
8 any non-host licensee that
derives its license from a track 
9 located in a county with a population in
excess of 230,000 
10 and that borders the Mississippi River.

11  (9) (Blank).

12  (10) (Blank).

13  (11) (Blank).

14  (12) The Board shall have authority to compel all host 
15 tracks to receive
the simulcast of any or all races 
16 conducted at the Springfield or DuQuoin State
fairgrounds 
17 and include all such races as part of their simulcast 
18 programs.

19  (13) Notwithstanding any other provision of this Act, 
20 in the event that
the total Illinois pari-mutuel handle on 
21 Illinois horse races at all wagering
facilities in any 
22 calendar year is less than 75% of the total Illinois

23 pari-mutuel handle on Illinois horse races at all such 
24 wagering facilities for
calendar year 1994, then each 
25 wagering facility that has an annual total
Illinois 
26 pari-mutuel handle on Illinois horse races that is less 
 
 
10000SB0007ham003- 247 -LRB100 06307 SMS 40923 a


1 than 75% of
the total Illinois pari-mutuel handle on 
2 Illinois horse races at such wagering
facility for calendar 
3 year 1994, shall be permitted to receive, from any amount

4 otherwise
payable to the purse account at the race track 
5 with which the wagering facility
is affiliated in the 
6 succeeding calendar year, an amount equal to 2% of the

7 differential in total Illinois pari-mutuel handle on 
8 Illinois horse
races at the wagering facility between that 
9 calendar year in question and 1994
provided, however, that 
10 a
wagering facility shall not be entitled to any such 
11 payment until the Board
certifies in writing to the 
12 wagering facility the amount to which the wagering
facility 
13 is entitled
and a schedule for payment of the amount to the 
14 wagering facility, based on:
(i) the racing dates awarded 
15 to the race track affiliated with the wagering
facility 
16 during the succeeding year; (ii) the sums available or 
17 anticipated to
be available in the purse account of the 
18 race track affiliated with the
wagering facility for purses 
19 during the succeeding year; and (iii) the need to
ensure 
20 reasonable purse levels during the payment period.
The 
21 Board's certification
shall be provided no later than 
22 January 31 of the succeeding year.
In the event a wagering 
23 facility entitled to a payment under this paragraph
(13) is 
24 affiliated with a race track that maintains purse accounts 
25 for both
standardbred and thoroughbred racing, the amount 
26 to be paid to the wagering
facility shall be divided 
 
 
10000SB0007ham003- 248 -LRB100 06307 SMS 40923 a


1 between each purse account pro rata, based on the
amount of 
2 Illinois handle on Illinois standardbred and thoroughbred 
3 racing
respectively at the wagering facility during the 
4 previous calendar year.
Annually, the General Assembly 
5 shall appropriate sufficient funds from the
General 
6 Revenue Fund to the Department of Agriculture for payment 
7 into the
thoroughbred and standardbred horse racing purse 
8 accounts at
Illinois pari-mutuel tracks. The amount paid to 
9 each purse account shall be
the amount certified by the 
10 Illinois Racing Board in January to be
transferred from 
11 each account to each eligible racing facility in
accordance 
12 with the provisions of this Section. Beginning in the 
13 calendar year in which an organization licensee that is 
14 eligible to receive payment under this paragraph (13) 
15 begins to receive funds from gaming pursuant to an 
16 organization gaming license issued under the Illinois 
17 Gambling Act, the amount of the payment due to all wagering 
18 facilities licensed under that organization licensee under 
19 this paragraph (13) shall be the amount certified by the 
20 Board in January of that year. An organization licensee and 
21 its related wagering facilities shall no longer be able to 
22 receive payments under this paragraph (13) beginning in the 
23 year subsequent to the first year in which the organization 
24 licensee begins to receive funds from gaming pursuant to an 
25 organization gaming license issued under the Illinois 
26 Gambling Act.

 
 
10000SB0007ham003- 249 -LRB100 06307 SMS 40923 a


1 (h) The Board may approve and license the conduct of 
2inter-track wagering
and simulcast wagering by inter-track 
3wagering licensees and inter-track
wagering location licensees 
4subject to the following terms and conditions:

5  (1) Any person licensed to conduct a race meeting (i) 
6 at a track where
60 or more days of racing were conducted 
7 during the immediately preceding
calendar year or where 
8 over the 5 immediately preceding calendar years an
average 
9 of 30 or more days of racing were conducted annually may be 
10 issued an
inter-track wagering license; (ii) at a track

11 located in a county that is bounded by the Mississippi 
12 River, which has a
population of less than 150,000 
13 according to the 1990 decennial census, and an
average of 
14 at least 60 days of racing per year between 1985 and 1993 
15 may be
issued an inter-track wagering license; or (iii) at 
16 a track awarded standardbred racing dates; or (iv) at a 
17 track
located in Madison
County that conducted at least 100 
18 days of live racing during the immediately
preceding

19 calendar year may be issued an inter-track wagering 
20 license, unless a lesser
schedule of
live racing is the 
21 result of (A) weather, unsafe track conditions, or other

22 acts of God; (B)
an agreement between the organization 
23 licensee and the associations
representing the
largest 
24 number of owners, trainers, jockeys, or standardbred 
25 drivers who race
horses at
that organization licensee's 
26 racing meeting; or (C) a finding by the Board of

 
 
10000SB0007ham003- 250 -LRB100 06307 SMS 40923 a


1 extraordinary circumstances and that it was in the best 
2 interest of the public
and the sport to conduct fewer than 
3 100 days of live racing. Any such person
having operating 
4 control of the racing facility may receive
inter-track 
5 wagering
location licenses. An
eligible race track located 
6 in a county that has a population of more than
230,000 and 
7 that is bounded by the Mississippi River may establish up 
8 to 9
inter-track wagering locations, an eligible race track 
9 located in Stickney Township in Cook County may establish 
10 up to 16 inter-track wagering locations, and an eligible 
11 race track located in Palatine Township in Cook County may 
12 establish up to 18 inter-track wagering locations. An 
13 eligible racetrack conducting standardbred racing may have 
14 up to 16 inter-track wagering locations.
An application for

15 said license shall be filed with the Board prior to such 
16 dates as may be
fixed by the Board. With an application for 
17 an inter-track
wagering
location license there shall be 
18 delivered to the Board a certified check or
bank draft 
19 payable to the order of the Board for an amount equal to 
20 $500.
The application shall be on forms prescribed and 
21 furnished by the Board. The
application shall comply with 
22 all other rules,
regulations and conditions imposed by the 
23 Board in connection therewith.

24  (2) The Board shall examine the applications with 
25 respect to their
conformity with this Act and the rules and 
26 regulations imposed by the
Board. If found to be in 
 
 
10000SB0007ham003- 251 -LRB100 06307 SMS 40923 a


1 compliance with the Act and rules and regulations
of the 
2 Board, the Board may then issue a license to conduct 
3 inter-track
wagering and simulcast wagering to such 
4 applicant. All such applications
shall be acted upon by the 
5 Board at a meeting to be held on such date as may be
fixed 
6 by the Board.

7  (3) In granting licenses to conduct inter-track 
8 wagering and simulcast
wagering, the Board shall give due 
9 consideration to
the best interests of the
public, of horse 
10 racing, and of maximizing revenue to the State.

11  (4) Prior to the issuance of a license to conduct 
12 inter-track wagering
and simulcast wagering,
the applicant 
13 shall file with the Board a bond payable to the State of 
14 Illinois
in the sum of $50,000, executed by the applicant 
15 and a surety company or
companies authorized to do business 
16 in this State, and conditioned upon
(i) the payment by the 
17 licensee of all taxes due under Section 27 or 27.1
and any 
18 other monies due and payable under this Act, and (ii)

19 distribution by the licensee, upon presentation of the 
20 winning ticket or
tickets, of all sums payable to the 
21 patrons of pari-mutuel pools.

22  (5) Each license to conduct inter-track wagering and 
23 simulcast
wagering shall specify the person
to whom it is 
24 issued, the dates on which such wagering is permitted, and

25 the track or location where the wagering is to be 
26 conducted.

 
 
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1  (6) All wagering under such license is subject to this 
2 Act and to the
rules and regulations from time to time 
3 prescribed by the Board, and every
such license issued by 
4 the Board shall contain a recital to that effect.

5  (7) An inter-track wagering licensee or inter-track 
6 wagering location
licensee may accept wagers at the track 
7 or location
where it is licensed, or as otherwise provided 
8 under this Act.

9  (8) Inter-track wagering or simulcast wagering shall 
10 not be
conducted
at any track less than 4 5 miles from a 
11 track at which a racing meeting is in
progress.

12  (8.1) Inter-track wagering location
licensees who 
13 derive their licenses from a particular organization 
14 licensee
shall conduct inter-track wagering and simulcast 
15 wagering only at locations that
are within 160 miles of 
16 that race track
where
the particular organization licensee 
17 is licensed to conduct racing. However, inter-track 
18 wagering and simulcast wagering
shall not
be conducted by 
19 those licensees at any location within 5 miles of any race

20 track at which a
horse race meeting has been licensed in 
21 the current year, unless the person
having operating 
22 control of such race track has given its written consent
to 
23 such inter-track wagering location licensees,
which 
24 consent
must be filed with the Board at or prior to the 
25 time application is made. In the case of any inter-track 
26 wagering location licensee initially licensed after 
 
 
10000SB0007ham003- 253 -LRB100 06307 SMS 40923 a


1 December 31, 2013, inter-track wagering and simulcast 
2 wagering shall not be conducted by those inter-track 
3 wagering location licensees that are located outside the 
4 City of Chicago at any location within 8 miles of any race 
5 track at which a horse race meeting has been licensed in 
6 the current year, unless the person having operating 
7 control of such race track has given its written consent to 
8 such inter-track wagering location licensees, which 
9 consent must be filed with the Board at or prior to the 
10 time application is made. 

11  (8.2) Inter-track wagering or simulcast wagering shall 
12 not be
conducted by an inter-track
wagering location 
13 licensee at any location within 500 feet of an
existing

14 church, an or existing elementary or secondary public 
15 school, or an existing elementary or secondary private 
16 school registered with or recognized by the State Board of 
17 Education school, nor within 500 feet of the residences
of 
18 more than 50 registered voters without
receiving written 
19 permission from a majority of the registered
voters at such 
20 residences.
Such written permission statements shall be 
21 filed with the Board. The
distance of 500 feet shall be 
22 measured to the nearest part of any
building
used for 
23 worship services, education programs, residential 
24 purposes, or
conducting inter-track wagering by an 
25 inter-track wagering location
licensee, and not to 
26 property boundaries. However, inter-track wagering or

 
 
10000SB0007ham003- 254 -LRB100 06307 SMS 40923 a


1 simulcast wagering may be conducted at a site within 500 
2 feet of
a church, school or residences
of 50 or more 
3 registered voters if such church, school
or residences have 
4 been erected
or established, or such voters have been 
5 registered, after
the Board issues
the original 
6 inter-track wagering location license at the site in 
7 question.
Inter-track wagering location licensees may 
8 conduct inter-track wagering
and simulcast wagering only 
9 in areas that are zoned for
commercial or manufacturing 
10 purposes or
in areas for which a special use has been 
11 approved by the local zoning
authority. However, no license 
12 to conduct inter-track wagering and simulcast
wagering 
13 shall be
granted by the Board with respect to any 
14 inter-track wagering location
within the jurisdiction of 
15 any local zoning authority which has, by
ordinance or by 
16 resolution, prohibited the establishment of an inter-track

17 wagering location within its jurisdiction. However, 
18 inter-track wagering
and simulcast wagering may be 
19 conducted at a site if such ordinance or
resolution is 
20 enacted after
the Board licenses the original inter-track 
21 wagering location
licensee for the site in question.

22  (9) (Blank).

23  (10) An inter-track wagering licensee or an 
24 inter-track wagering
location licensee may retain, subject 
25 to the
payment of the privilege taxes and the purses, an 
26 amount not to
exceed 17% of all money wagered. Each program 
 
 
10000SB0007ham003- 255 -LRB100 06307 SMS 40923 a


1 of racing conducted by
each inter-track wagering licensee 
2 or inter-track wagering location
licensee shall be 
3 considered a separate racing day for the purpose of

4 determining the daily handle and computing the privilege 
5 tax or pari-mutuel
tax on such daily
handle as provided in 
6 Section 27.

7  (10.1) Except as provided in subsection (g) of Section 
8 27 of this Act,
inter-track wagering location licensees 
9 shall pay 1% of the
pari-mutuel handle at each location to 
10 the municipality in which such
location is situated and 1% 
11 of the pari-mutuel handle at each location to
the county in 
12 which such location is situated. In the event that an

13 inter-track wagering location licensee is situated in an 
14 unincorporated
area of a county, such licensee shall pay 2% 
15 of the pari-mutuel handle from
such location to such 
16 county.

17  (10.2) Notwithstanding any other provision of this 
18 Act, with respect to inter-track
wagering at a race track 
19 located in a
county that has a population of
more than 
20 230,000 and that is bounded by the Mississippi River ("the 
21 first race
track"), or at a facility operated by an 
22 inter-track wagering licensee or
inter-track wagering 
23 location licensee that derives its license from the

24 organization licensee that operates the first race track, 
25 on races conducted at
the first race track or on races 
26 conducted at another Illinois race track
and 
 
 
10000SB0007ham003- 256 -LRB100 06307 SMS 40923 a


1 simultaneously televised to the first race track or to a 
2 facility operated
by an inter-track wagering licensee or 
3 inter-track wagering location licensee
that derives its 
4 license from the organization licensee that operates the 
5 first
race track, those moneys shall be allocated as 
6 follows:

7   (A) That portion of all moneys wagered on 
8 standardbred racing that is
required under this Act to 
9 be paid to purses shall be paid to purses for

10 standardbred races.

11   (B) That portion of all moneys wagered on 
12 thoroughbred racing
that is required under this Act to 
13 be paid to purses shall be paid to purses
for 
14 thoroughbred races.

15  (11) (A) After payment of the privilege or pari-mutuel 
16 tax, any other
applicable
taxes, and
the costs and expenses 
17 in connection with the gathering, transmission, and

18 dissemination of all data necessary to the conduct of 
19 inter-track wagering,
the remainder of the monies retained 
20 under either Section 26 or Section 26.2
of this Act by the 
21 inter-track wagering licensee on inter-track wagering

22 shall be allocated with 50% to be split between the
2 
23 participating licensees and 50% to purses, except
that an 
24 inter-track wagering licensee that derives its
license 
25 from a track located in a county with a population in 
26 excess of 230,000
and that borders the Mississippi River 
 
 
10000SB0007ham003- 257 -LRB100 06307 SMS 40923 a


1 shall not divide any remaining
retention with the Illinois 
2 organization licensee that provides the race or
races, and 
3 an inter-track wagering licensee that accepts wagers on 
4 races
conducted by an organization licensee that conducts a 
5 race meet in a county
with a population in excess of 
6 230,000 and that borders the Mississippi River
shall not 
7 divide any remaining retention with that organization 
8 licensee.

9  (B) From the
sums permitted to be retained pursuant to 
10 this Act each inter-track wagering
location licensee shall 
11 pay (i) the privilege or pari-mutuel tax to the
State; (ii) 
12 4.75% of the
pari-mutuel handle on inter-track wagering at 
13 such location on
races as purses, except that
an 
14 inter-track wagering location licensee that derives its 
15 license from a
track located in a county with a population 
16 in excess of 230,000 and that
borders the Mississippi River 
17 shall retain all purse moneys for its own purse
account 
18 consistent with distribution set forth in this subsection 
19 (h), and inter-track
wagering location licensees that 
20 accept wagers on races
conducted
by an organization 
21 licensee located in a county with a population in excess of

22 230,000 and that borders the Mississippi River shall 
23 distribute all purse
moneys to purses at the operating host 
24 track; (iii) until January 1, 2000,
except as
provided in

25 subsection (g) of Section 27 of this Act, 1% of the

26 pari-mutuel handle wagered on inter-track wagering and 
 
 
10000SB0007ham003- 258 -LRB100 06307 SMS 40923 a


1 simulcast wagering at
each inter-track wagering
location 
2 licensee facility to the Horse Racing Tax Allocation Fund, 
3 provided
that, to the extent the total amount collected and 
4 distributed to the Horse
Racing Tax Allocation Fund under 
5 this subsection (h) during any calendar year
exceeds the 
6 amount collected and distributed to the Horse Racing Tax 
7 Allocation
Fund during calendar year 1994, that excess 
8 amount shall be redistributed (I)
to all inter-track 
9 wagering location licensees, based on each licensee's

10 pro-rata share of the total handle from inter-track 
11 wagering and simulcast
wagering for all inter-track 
12 wagering location licensees during the calendar
year in 
13 which this provision is applicable; then (II) the amounts 
14 redistributed
to each inter-track wagering location 
15 licensee as described in subpart (I)
shall be further 
16 redistributed as provided in subparagraph (B) of paragraph 
17 (5)
of subsection (g) of this Section 26 provided first, 
18 that the shares of those
amounts, which are to be 
19 redistributed to the host track or to purses at the
host 
20 track under subparagraph (B) of paragraph (5) of subsection 
21 (g) of this
Section 26 shall be
redistributed based on each 
22 host track's pro rata share of the total
inter-track

23 wagering and simulcast wagering handle at all host tracks 
24 during the calendar
year in question, and second, that any 
25 amounts redistributed as described in
part (I) to an 
26 inter-track wagering location licensee that accepts
wagers 
 
 
10000SB0007ham003- 259 -LRB100 06307 SMS 40923 a


1 on races conducted by an organization licensee that 
2 conducts a race meet
in a county with a population in 
3 excess of 230,000 and that borders the
Mississippi River 
4 shall be further redistributed as provided in 
5 subparagraphs
(D) and (E) of paragraph (7) of subsection 
6 (g) of this Section 26, with the
portion of that
further 
7 redistribution allocated to purses at that organization 
8 licensee to be
divided between standardbred purses and 
9 thoroughbred purses based on the
amounts otherwise 
10 allocated to purses at that organization licensee during 
11 the
calendar year in question; and (iv) 8% of the 
12 pari-mutuel handle on
inter-track wagering wagered at
such 
13 location to satisfy all costs and expenses of conducting 
14 its wagering. The
remainder of the monies retained by the 
15 inter-track wagering location licensee
shall be allocated 
16 40% to the location licensee and 60% to the organization

17 licensee which provides the Illinois races to the location, 
18 except that an inter-track
wagering location
licensee that 
19 derives its license from a track located in a county with a

20 population in excess of 230,000 and that borders the 
21 Mississippi River shall
not divide any remaining retention 
22 with the organization licensee that provides
the race or 
23 races and an inter-track wagering location licensee that 
24 accepts
wagers on races conducted by an organization 
25 licensee that conducts a race meet
in a county with a 
26 population in excess of 230,000 and that borders the

 
 
10000SB0007ham003- 260 -LRB100 06307 SMS 40923 a


1 Mississippi River shall not divide any remaining retention 
2 with the
organization licensee.
Notwithstanding the 
3 provisions of clauses (ii) and (iv) of this
paragraph, in 
4 the case of the additional inter-track wagering location 
5 licenses
authorized under paragraph (1) of this subsection 
6 (h) by Public Act 87-110, those licensees shall pay the 
7 following amounts as purses:
during the first 12 months the 
8 licensee is in operation, 5.25% of
the
pari-mutuel handle 
9 wagered at the location on races; during the second 12

10 months, 5.25%; during the third 12 months, 5.75%;
during

11 the fourth 12 months,
6.25%; and during the fifth 12 months 
12 and thereafter, 6.75%. The
following amounts shall be 
13 retained by the licensee to satisfy all costs
and expenses 
14 of conducting its wagering: during the first 12 months the

15 licensee is in operation, 8.25% of the pari-mutuel handle 
16 wagered
at the
location; during the second 12 months, 
17 8.25%; during the third 12
months, 7.75%;
during the fourth 
18 12 months, 7.25%; and during the fifth 12 months
and

19 thereafter, 6.75%.
For additional inter-track wagering 
20 location licensees authorized under Public Act 89-16, 
21 purses for the first 12 months the licensee is in operation 
22 shall
be 5.75% of the pari-mutuel wagered
at the location, 
23 purses for the second 12 months the licensee is in 
24 operation
shall be 6.25%, and purses
thereafter shall be 
25 6.75%. For additional inter-track location
licensees

26 authorized under Public Act 89-16, the licensee shall be 
 
 
10000SB0007ham003- 261 -LRB100 06307 SMS 40923 a


1 allowed to retain to satisfy
all costs and expenses: 7.75% 
2 of the pari-mutuel handle wagered at
the location
during 
3 its first 12 months of operation, 7.25% during its second

4 12
months of
operation, and 6.75% thereafter.

5  (C) There is hereby created the Horse Racing Tax 
6 Allocation Fund
which shall remain in existence until 
7 December 31, 1999. Moneys
remaining in the Fund after 
8 December 31, 1999
shall be paid into the
General Revenue 
9 Fund. Until January 1, 2000,
all monies paid into the Horse 
10 Racing Tax Allocation Fund pursuant to this
paragraph (11) 
11 by inter-track wagering location licensees located in park

12 districts of 500,000 population or less, or in a 
13 municipality that is not
included within any park district 
14 but is included within a conservation
district and is the 
15 county seat of a county that (i) is contiguous to the state

16 of Indiana and (ii) has a 1990 population of 88,257 
17 according to the United
States Bureau of the Census, and 
18 operating on May 1, 1994 shall be
allocated by 
19 appropriation as follows:

20   Two-sevenths to the Department of Agriculture. 
21 Fifty percent of
this two-sevenths shall be used to 
22 promote the Illinois horse racing and
breeding 
23 industry, and shall be distributed by the Department of 
24 Agriculture
upon the advice of a 9-member committee 
25 appointed by the Governor consisting of
the following 
26 members: the Director of Agriculture, who shall serve 
 
 
10000SB0007ham003- 262 -LRB100 06307 SMS 40923 a


1 as
chairman; 2 representatives of organization 
2 licensees conducting thoroughbred
race meetings in 
3 this State, recommended by those licensees; 2 
4 representatives
of organization licensees conducting 
5 standardbred race meetings in this State,
recommended 
6 by those licensees; a representative of the Illinois

7 Thoroughbred Breeders and Owners Foundation, 
8 recommended by that
Foundation; a representative of 
9 the Illinois Standardbred Owners and
Breeders 
10 Association, recommended
by that Association; a 
11 representative of
the Horsemen's Benevolent and 
12 Protective Association or any successor
organization 
13 thereto established in Illinois comprised of the 
14 largest number of
owners and trainers, recommended by 
15 that
Association or that successor organization; and a

16 representative of the Illinois Harness Horsemen's

17 Association, recommended by that Association. 
18 Committee members shall
serve for terms of 2 years, 
19 commencing January 1 of each even-numbered
year. If a 
20 representative of any of the above-named entities has 
21 not been
recommended by January 1 of any even-numbered 
22 year, the Governor shall
appoint a committee member to 
23 fill that position. Committee members shall
receive no 
24 compensation for their services as members but shall be

25 reimbursed for all actual and necessary expenses and 
26 disbursements incurred
in the performance of their 
 
 
10000SB0007ham003- 263 -LRB100 06307 SMS 40923 a


1 official duties. The remaining 50% of this

2 two-sevenths shall be distributed to county fairs for 
3 premiums and
rehabilitation as set forth in the 
4 Agricultural Fair Act;

5   Four-sevenths to park districts or municipalities 
6 that do not have a
park district of 500,000 population 
7 or less for museum purposes (if an
inter-track wagering 
8 location licensee is located in such a park district) 
9 or
to conservation districts for museum purposes (if an 
10 inter-track wagering
location licensee is located in a 
11 municipality that is not included within any
park 
12 district but is included within a conservation 
13 district and is the county
seat of a county that (i) is 
14 contiguous to the state of Indiana and (ii) has a
1990 
15 population of 88,257 according to the United States 
16 Bureau of the Census,
except that if the conservation 
17 district does not maintain a museum, the monies
shall 
18 be allocated equally between the county and the 
19 municipality in which the
inter-track wagering 
20 location licensee is located for general purposes) or 
21 to a
municipal recreation board for park purposes (if 
22 an inter-track wagering
location licensee is located 
23 in a municipality that is not included within any
park 
24 district and park maintenance is the function of the 
25 municipal recreation
board and the municipality has a 
26 1990 population of 9,302 according to the
United States 
 
 
10000SB0007ham003- 264 -LRB100 06307 SMS 40923 a


1 Bureau of the Census); provided that the monies are 
2 distributed
to each park district or conservation 
3 district or municipality that does not
have a park 
4 district in an amount equal to four-sevenths of the 
5 amount
collected by each inter-track wagering location 
6 licensee within the park
district or conservation 
7 district or municipality for the Fund. Monies that
were 
8 paid into the Horse Racing Tax Allocation Fund before 
9 August 9, 1991 (the effective date
of Public Act 
10 87-110) by an inter-track wagering location licensee

11 located in a municipality that is not included within 
12 any park district but is
included within a conservation 
13 district as provided in this paragraph shall, as
soon 
14 as practicable after August 9, 1991 (the effective date 
15 of Public Act 87-110), be
allocated and paid to that 
16 conservation district as provided in this paragraph.

17 Any park district or municipality not maintaining a 
18 museum may deposit the
monies in the corporate fund of 
19 the park district or municipality where the

20 inter-track wagering location is located, to be used 
21 for general purposes;
and

22   One-seventh to the Agricultural Premium Fund to be 
23 used for distribution
to agricultural home economics 
24 extension councils in accordance with "An
Act in 
25 relation to additional support and finances for the 
26 Agricultural and
Home Economic Extension Councils in 
 
 
10000SB0007ham003- 265 -LRB100 06307 SMS 40923 a


1 the several counties of this State and
making an 
2 appropriation therefor", approved July 24, 1967.

3  Until January 1, 2000, all other
monies paid into the 
4 Horse Racing Tax
Allocation Fund pursuant to
this paragraph 
5 (11) shall be allocated by appropriation as follows:

6   Two-sevenths to the Department of Agriculture. 
7 Fifty percent of this
two-sevenths shall be used to 
8 promote the Illinois horse racing and breeding

9 industry, and shall be distributed by the Department of 
10 Agriculture upon the
advice of a 9-member committee 
11 appointed by the Governor consisting of the
following 
12 members: the Director of Agriculture, who shall serve 
13 as chairman; 2
representatives of organization 
14 licensees conducting thoroughbred race meetings
in 
15 this State, recommended by those licensees; 2 
16 representatives of
organization licensees conducting 
17 standardbred race meetings in this State,
recommended 
18 by those licensees; a representative of the Illinois 
19 Thoroughbred
Breeders and Owners Foundation, 
20 recommended by that Foundation; a
representative of 
21 the Illinois Standardbred Owners and Breeders 
22 Association,
recommended by that Association; a 
23 representative of the Horsemen's Benevolent
and 
24 Protective Association or any successor organization 
25 thereto established
in Illinois comprised of the 
26 largest number of owners and trainers,
recommended by 
 
 
10000SB0007ham003- 266 -LRB100 06307 SMS 40923 a


1 that Association or that successor organization; and a

2 representative of the Illinois Harness Horsemen's 
3 Association, recommended by
that Association. 
4 Committee members shall serve for terms of 2 years,

5 commencing January 1 of each even-numbered year. If a 
6 representative of any of
the above-named entities has 
7 not been recommended by January 1 of any
even-numbered 
8 year, the Governor shall appoint a committee member to 
9 fill that
position. Committee members shall receive no 
10 compensation for their services
as members but shall be 
11 reimbursed for all actual and necessary expenses and

12 disbursements incurred in the performance of their 
13 official duties. The
remaining 50% of this 
14 two-sevenths shall be distributed to county fairs for

15 premiums and rehabilitation as set forth in the 
16 Agricultural Fair Act;

17   Four-sevenths to museums and aquariums located in 
18 park districts of over
500,000 population; provided 
19 that the monies are distributed in accordance with
the 
20 previous year's distribution of the maintenance tax 
21 for such museums and
aquariums as provided in Section 2 
22 of the Park District Aquarium and Museum
Act; and

23   One-seventh to the Agricultural Premium Fund to be 
24 used for distribution
to agricultural home economics 
25 extension councils in accordance with "An Act
in 
26 relation to additional support and finances for the 
 
 
10000SB0007ham003- 267 -LRB100 06307 SMS 40923 a


1 Agricultural and
Home Economic Extension Councils in 
2 the several counties of this State and
making an 
3 appropriation therefor", approved July 24, 1967.
This 
4 subparagraph (C) shall be inoperative and of no force 
5 and effect on and
after January 1, 2000.

6   (D) Except as provided in paragraph (11) of this 
7 subsection (h),
with respect to purse allocation from 
8 inter-track wagering, the monies so
retained shall be 
9 divided as follows:

10    (i) If the inter-track wagering licensee, 
11 except an inter-track
wagering licensee that 
12 derives its license from an organization
licensee 
13 located in a county with a population in excess of 
14 230,000 and bounded
by the Mississippi River, is 
15 not conducting its own
race meeting during the same 
16 dates, then the entire purse allocation shall be
to 
17 purses at the track where the races wagered on are 
18 being conducted.

19    (ii) If the inter-track wagering licensee, 
20 except an inter-track
wagering licensee that 
21 derives its license from an organization
licensee 
22 located in a county with a population in excess of 
23 230,000 and bounded
by the Mississippi River, is 
24 also
conducting its own
race meeting during the 
25 same dates, then the purse allocation shall be as

26 follows: 50% to purses at the track where the races 
 
 
10000SB0007ham003- 268 -LRB100 06307 SMS 40923 a


1 wagered on are
being conducted; 50% to purses at 
2 the track where the inter-track
wagering licensee 
3 is accepting such wagers.

4    (iii) If the inter-track wagering is being 
5 conducted by an inter-track
wagering location 
6 licensee, except an inter-track wagering location 
7 licensee
that derives its license from an 
8 organization licensee located in a
county with a 
9 population in excess of 230,000 and bounded by the 
10 Mississippi
River, the entire purse allocation for 
11 Illinois races shall
be to purses at the track 
12 where the race meeting being wagered on is being

13 held.

14  (12) The Board shall have all powers necessary and 
15 proper to fully
supervise and control the conduct of

16 inter-track wagering and simulcast
wagering by inter-track 
17 wagering licensees and inter-track wagering location

18 licensees, including, but not
limited to the following:

19   (A) The Board is vested with power to promulgate 
20 reasonable rules and
regulations for the purpose of 
21 administering the
conduct of this
wagering and to 
22 prescribe reasonable rules, regulations and conditions 
23 under
which such wagering shall be held and conducted. 
24 Such rules and regulations
are to provide for the 
25 prevention of practices detrimental to the public

26 interest and for
the best interests of said wagering 
 
 
10000SB0007ham003- 269 -LRB100 06307 SMS 40923 a


1 and to impose penalties
for violations thereof.

2   (B) The Board, and any person or persons to whom it 
3 delegates this
power, is vested with the power to enter 
4 the
facilities of any licensee to determine whether 
5 there has been
compliance with the provisions of this 
6 Act and the rules and regulations
relating to the 
7 conduct of such wagering.

8   (C) The Board, and any person or persons to whom it 
9 delegates this
power, may eject or exclude from any 
10 licensee's facilities, any person whose
conduct or 
11 reputation
is such that his presence on such premises 
12 may, in the opinion of the Board,
call into the 
13 question the honesty and integrity of, or interfere 
14 with the
orderly conduct of such wagering; provided, 
15 however, that no person shall
be excluded or ejected 
16 from such premises solely on the grounds of race,

17 color, creed, national origin, ancestry, or sex.

18   (D) (Blank).

19   (E) The Board is vested with the power to appoint 
20 delegates to execute
any of the powers granted to it 
21 under this Section for the purpose of
administering 
22 this wagering and any
rules and
regulations

23 promulgated in accordance with this Act.

24   (F) The Board shall name and appoint a State 
25 director of this wagering
who shall be a representative 
26 of the Board and whose
duty it shall
be to supervise 
 
 
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1 the conduct of inter-track wagering as may be provided 
2 for
by the rules and regulations of the Board; such 
3 rules and regulation shall
specify the method of 
4 appointment and the Director's powers, authority and

5 duties.

6   (G) The Board is vested with the power to impose 
7 civil penalties of up
to $5,000 against individuals and 
8 up to $10,000 against
licensees for each violation of 
9 any provision of
this Act relating to the conduct of 
10 this wagering, any
rules adopted
by the Board, any 
11 order of the Board or any other action which in the 
12 Board's
discretion, is a detriment or impediment to 
13 such wagering.

14  (13) The Department of Agriculture may enter into 
15 agreements with
licensees authorizing such licensees to 
16 conduct inter-track
wagering on races to be held at the 
17 licensed race meetings conducted by the
Department of 
18 Agriculture. Such
agreement shall specify the races of the 
19 Department of Agriculture's
licensed race meeting upon 
20 which the licensees will conduct wagering. In the
event 
21 that a licensee
conducts inter-track pari-mutuel wagering 
22 on races from the Illinois State Fair
or DuQuoin State Fair 
23 which are in addition to the licensee's previously
approved 
24 racing program, those races shall be considered a separate 
25 racing day
for the
purpose of determining the daily handle 
26 and computing the privilege or
pari-mutuel tax on
that 
 
 
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1 daily handle as provided in Sections 27
and 27.1. Such

2 agreements shall be approved by the Board before such 
3 wagering may be
conducted. In determining whether to grant 
4 approval, the Board shall give
due consideration to the 
5 best interests of the public and of horse racing.
The 
6 provisions of paragraphs (1), (8), (8.1), and (8.2) of

7 subsection (h) of this
Section which are not specified in 
8 this paragraph (13) shall not apply to
licensed race 
9 meetings conducted by the Department of Agriculture at the

10 Illinois State Fair in Sangamon County or the DuQuoin State 
11 Fair in Perry
County, or to any wagering conducted on
those 
12 race meetings.
13  (14) An inter-track wagering location license 
14 authorized by the Board in 2016 that is owned and operated 
15 by a race track in Rock Island County shall be transferred 
16 to a commonly owned race track in Cook County on August 12, 
17 2016 (the effective date of Public Act 99-757). The 
18 licensee shall retain its status in relation to purse 
19 distribution under paragraph (11) of this subsection (h) 
20 following the transfer to the new entity. The pari-mutuel 
21 tax credit under Section 32.1 shall not be applied toward 
22 any pari-mutuel tax obligation of the inter-track wagering 
23 location licensee of the license that is transferred under 
24 this paragraph (14).

25 (i) Notwithstanding the other provisions of this Act, the 
26conduct of
wagering at wagering facilities is authorized on all 
 
 
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1days, except as limited by
subsection (b) of Section 19 of this 
2Act.

3(Source: P.A. 99-756, eff. 8-12-16; 99-757, eff. 8-12-16; 
4100-201, eff. 8-18-17.)


5 (230 ILCS 5/26.8)
6 Sec. 26.8. Beginning on February 1, 2014 and through 
7December 31, 2018, each wagering licensee may impose a 
8surcharge of up to 0.5% on winning wagers and winnings from 
9wagers. The surcharge shall be deducted from winnings prior to 
10payout. All amounts collected from the imposition of this 
11surcharge shall be evenly distributed to the organization 
12licensee and the purse account of the organization licensee 
13with which the licensee is affiliated. The amounts distributed 
14under this Section shall be in addition to the amounts paid 
15pursuant to paragraph (10) of subsection (h) of Section 26, 
16Section 26.3, Section 26.4, Section 26.5, and Section 26.7.

17(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)

18 (230 ILCS 5/26.9)
19 Sec. 26.9. Beginning on February 1, 2014 and through 
20December 31, 2018, in addition to the surcharge imposed in 
21Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each 
22licensee shall impose a surcharge of 0.2% on winning wagers and 
23winnings from wagers. The surcharge shall be deducted from 
24winnings prior to payout. All amounts collected from the 
 
 
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1surcharges imposed under this Section shall be remitted to the 
2Board. From amounts collected under this Section, the Board 
3shall deposit an amount not to exceed $100,000 annually into 
4the Quarter Horse Purse Fund and all remaining amounts into the 
5Horse Racing Fund.

6(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)

7 (230 ILCS 5/27) (from Ch. 8, par. 37-27)
8 Sec. 27. (a) In addition to the organization license fee 
9provided
by this Act, until January 1, 2000, a
graduated 
10privilege tax is hereby
imposed for conducting
the pari-mutuel 
11system of wagering permitted under this
Act. Until January 1, 
122000, except as provided in subsection (g) of
Section 27 of 
13this Act, all of
the breakage of each racing day held by any 
14licensee in the State shall be paid
to the State.
Until January 
151, 2000, such daily graduated privilege tax shall be paid by

16the
licensee from the amount permitted to be retained under 
17this Act.
Until January 1, 2000, each day's
graduated privilege 
18tax, breakage, and Horse Racing Tax Allocation
funds shall be 
19remitted to the Department of Revenue within 48 hours after the

20close of the racing day upon which it is assessed or within 
21such other time as
the Board prescribes. The privilege tax 
22hereby imposed, until January
1, 2000, shall be a flat tax at

23the rate of 2% of the daily pari-mutuel handle except as 
24provided in Section
27.1.
25 In addition, every organization licensee, except as

 
 
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1provided in Section 27.1 of this Act, which conducts multiple

2wagering shall pay, until January 1, 2000,
as a privilege tax 
3on multiple
wagers an amount
equal to 1.25% of all moneys 
4wagered each day on such multiple wagers,
plus an additional 
5amount equal to 3.5% of the amount wagered each day on any

6other multiple wager which involves a single
betting interest 
7on 3 or more horses. The licensee shall remit the amount of

8such taxes to the Department of Revenue within 48 hours after 
9the close of
the racing day on which it is assessed or within 
10such other time as the Board
prescribes.
11 This subsection (a) shall be inoperative and of no force 
12and effect on and
after January 1, 2000.
13 (a-5) Beginning on January 1, 2000, a
flat
pari-mutuel tax 
14at the rate of 1.5% of
the daily
pari-mutuel handle is imposed 
15at all pari-mutuel wagering facilities and on advance deposit 
16wagering from a location other than a wagering facility, except 
17as otherwise provided for in this subsection (a-5). In addition 
18to the pari-mutuel tax imposed on advance deposit wagering 
19pursuant to this subsection (a-5), beginning on August 24, 2012 
20(the effective date of Public Act 97-1060) and through December 
2131, 2018, an additional pari-mutuel tax at the rate of 0.25% 
22shall be imposed on advance deposit wagering. Until August 25, 
232012, the additional 0.25% pari-mutuel tax imposed on advance 
24deposit wagering by Public Act 96-972 shall be deposited into 
25the Quarter Horse Purse Fund, which shall be created as a 
26non-appropriated trust fund administered by the Board for 
 
 
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1grants to thoroughbred organization licensees for payment of 
2purses for quarter horse races conducted by the organization 
3licensee. Beginning on August 26, 2012, the additional 0.25% 
4pari-mutuel tax imposed on advance deposit wagering shall be 
5deposited into the Standardbred Purse Fund, which shall be 
6created as a non-appropriated trust fund administered by the 
7Board, for grants to the standardbred organization licensees 
8for payment of purses for standardbred horse races conducted by 
9the organization licensee. Thoroughbred organization licensees 
10may petition the Board to conduct quarter horse racing and 
11receive purse grants from the Quarter Horse Purse Fund. The 
12Board shall have complete discretion in distributing the 
13Quarter Horse Purse Fund to the petitioning organization 
14licensees. Beginning on July 26, 2010 (the effective date of 
15Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of 
16the daily pari-mutuel handle is imposed at a pari-mutuel 
17facility whose license is derived from a track located in a 
18county that borders the Mississippi River and conducted live 
19racing in the previous year. The pari-mutuel tax imposed by 
20this subsection (a-5)
shall be remitted to the Department of

21Revenue within 48 hours after the close of the racing day upon 
22which it is
assessed or within such other time as the Board 
23prescribes.
24 (a-10) Beginning on the date when an organization licensee 
25begins conducting gaming pursuant to an organization gaming 
26license, the following pari-mutuel tax is imposed upon an 
 
 
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1organization licensee on Illinois races at the licensee's 
2racetrack: 
3  1.5% of the pari-mutuel handle at or below the average 
4 daily pari-mutuel handle for 2011. 
5  2% of the pari-mutuel handle above the average daily 
6 pari-mutuel handle for 2011 up to 125% of the average daily 
7 pari-mutuel handle for 2011. 
8  2.5% of the pari-mutuel handle 125% or more above the 
9 average daily pari-mutuel handle for 2011 up to 150% of the 
10 average daily pari-mutuel handle for 2011. 
11  3% of the pari-mutuel handle 150% or more above the 
12 average daily pari-mutuel handle for 2011 up to 175% of the 
13 average daily pari-mutuel handle for 2011. 
14  3.5% of the pari-mutuel handle 175% or more above the 
15 average daily pari-mutuel handle for 2011. 
16 The pari-mutuel tax imposed by this subsection (a-10) shall 
17be remitted to the Board within 48 hours after the close of the 
18racing day upon which it is assessed or within such other time 
19as the Board prescribes. 
20 (b) On or before December 31, 1999, in
the event that any 
21organization
licensee conducts
2 separate programs
of races on 
22any day, each such program shall be considered a separate

23racing day for purposes of determining the daily handle and 
24computing
the privilege tax on such daily handle as provided in 
25subsection (a) of
this Section.
26 (c) Licensees shall at all times keep accurate
books
and 
 
 
10000SB0007ham003- 277 -LRB100 06307 SMS 40923 a


1records of all monies wagered on each day of a race meeting and 
2of
the taxes paid to the Department of Revenue under the 
3provisions of this
Section. The Board or its duly authorized 
4representative or
representatives shall at all reasonable 
5times have access to such
records for the purpose of examining 
6and checking the same and
ascertaining whether the proper 
7amount of taxes is being paid as
provided. The Board shall 
8require verified reports and a statement of
the total of all 
9monies wagered daily at each wagering facility upon which
the 
10taxes are assessed and may prescribe forms upon which such 
11reports
and statement shall be made.
12 (d) Before a license is issued or re-issued, the licensee 
13shall post a bond in the sum of $500,000 to the State of 
14Illinois. The bond shall be used to guarantee that the licensee 
15faithfully makes the payments, keeps the books and records and 
16makes reports, and conducts games of chance in conformity with 
17this Act and the rules adopted by the Board. The bond shall not 
18be canceled by a surety on less than 30 days' notice in writing 
19to the Board. If a bond is canceled and the licensee fails to 
20file a new bond with the Board in the required amount on or 
21before the effective date of cancellation, the licensee's 
22license shall be revoked. The total and aggregate liability of 
23the surety on the bond is limited to the amount specified in 
24the bond. Any licensee failing or refusing to pay the amount
of 
25any tax due under this Section shall be guilty of a business 
26offense
and upon conviction shall be fined not more than $5,000 
 
 
10000SB0007ham003- 278 -LRB100 06307 SMS 40923 a


1in addition to
the amount found due as tax under this Section. 
2Each day's violation
shall constitute a separate offense. All 
3fines paid into Court by a licensee hereunder shall be 
4transmitted and paid over by
the Clerk of the Court to the 
5Board.
6 (e) No other license fee, privilege tax, excise tax, or

7racing fee, except as provided in this Act, shall be assessed 
8or
collected from any such licensee by the State.
9 (f) No other license fee, privilege tax, excise tax or 
10racing fee shall be
assessed or collected from any such 
11licensee by units of local government
except as provided in 
12paragraph 10.1 of subsection (h) and subsection (f) of
Section 
1326 of this Act. However, any municipality that has a Board 
14licensed
horse race meeting at a race track wholly within its 
15corporate boundaries or a
township that has a Board licensed 
16horse race meeting at a race track wholly
within the 
17unincorporated area of the township may charge a local

18amusement tax not to exceed 10¢ per admission to such horse 
19race meeting
by the enactment of an ordinance. However, any 
20municipality or county
that has a Board licensed inter-track 
21wagering location facility wholly
within its corporate 
22boundaries may each impose an admission fee not
to exceed $1.00 
23per admission to such inter-track wagering location facility,

24so that a total of not more than $2.00 per admission may be 
25imposed.
Except as provided in subparagraph (g) of Section 27 
26of this Act, the
inter-track wagering location licensee shall 
 
 
10000SB0007ham003- 279 -LRB100 06307 SMS 40923 a


1collect any and all such fees
and within 48 hours remit the 
2fees to the Board as the Board prescribes, which shall, 
3pursuant to
rule, cause the fees to be distributed to the 
4county or municipality.
5 (g) Notwithstanding any provision in this Act to the 
6contrary, if in any
calendar year the total taxes and fees from 
7wagering on live racing and from
inter-track wagering required 
8to be collected from
licensees and distributed under this Act 
9to all State and local governmental
authorities exceeds the 
10amount of such taxes and fees distributed to each State
and 
11local governmental authority to which each State and local 
12governmental
authority was entitled under this Act for calendar 
13year 1994, then the first
$11 million of that excess amount 
14shall be allocated at the earliest possible
date for 
15distribution as purse money for the succeeding calendar year.

16Upon reaching the 1994 level, and until the excess amount of 
17taxes and fees
exceeds $11 million, the Board shall direct all 
18licensees to cease paying the
subject taxes and fees and the 
19Board shall direct all licensees to allocate any such excess 
20amount for purses as
follows:
21  (i) the excess amount shall be initially divided 
22 between thoroughbred and
standardbred purses based on the 
23 thoroughbred's and standardbred's respective
percentages 
24 of total Illinois live wagering in calendar year 1994;
25  (ii) each thoroughbred and standardbred organization 
26 licensee issued an
organization licensee in that 
 
 
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1 succeeding allocation year shall
be
allocated an amount 
2 equal to the product of its percentage of total
Illinois

3 live thoroughbred or standardbred wagering in calendar 
4 year 1994 (the total to
be determined based on the sum of 
5 1994 on-track wagering for all organization
licensees 
6 issued organization licenses in both the allocation year 
7 and the
preceding year) multiplied by
the total amount 
8 allocated for standardbred or thoroughbred purses, 
9 provided
that the first $1,500,000 of the amount allocated 
10 to standardbred
purses under item (i) shall be allocated to 
11 the Department of
Agriculture to be expended with the 
12 assistance and advice of the Illinois
Standardbred 
13 Breeders Funds Advisory Board for the purposes listed in

14 subsection (g) of Section 31 of this Act, before the amount 
15 allocated to
standardbred purses under item (i) is 
16 allocated to standardbred
organization licensees in the 
17 succeeding allocation year.
18 To the extent the excess amount of taxes and fees to be 
19collected and
distributed to State and local governmental 
20authorities exceeds $11 million,
that excess amount shall be 
21collected and distributed to State and local
authorities as 
22provided for under this Act.
23(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756, 
24eff. 8-12-16.)




25 (230 ILCS 5/30) (from Ch. 8, par. 37-30)



 
 
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1 Sec. 30. 
(a) The General Assembly declares that it is the 
2policy of
this State to encourage the breeding of thoroughbred 
3horses in this
State and the ownership of such horses by 
4residents of this State in
order to provide for: sufficient 
5numbers of high quality thoroughbred
horses to participate in 
6thoroughbred racing meetings in this State,
and to establish 
7and preserve the agricultural and commercial benefits
of such 
8breeding and racing industries to the State of Illinois. It is

9the intent of the General Assembly to further this policy by 
10the
provisions of this Act.

11 (b) Each organization licensee conducting a thoroughbred

12racing meeting
pursuant to this Act shall provide at least two 
13races each day limited
to Illinois conceived and foaled horses 
14or Illinois foaled horses or
both. A minimum of 6 races shall 
15be conducted each week limited to
Illinois conceived and foaled 
16or Illinois foaled horses or both. No
horses shall be permitted 
17to start in such races unless duly registered
under the rules 
18of the Department of Agriculture.

19 (c) Conditions of races under subsection (b) shall be

20commensurate
with past performance, quality, and class of 
21Illinois conceived and foaled
and Illinois foaled horses

22available. If, however, sufficient competition cannot be had 
23among
horses of that class on any day, the races may, with 
24consent of the
Board, be eliminated for that day and substitute 
25races provided.

26 (d) There is hereby created a special fund of the State 
 
 
10000SB0007ham003- 282 -LRB100 06307 SMS 40923 a


1Treasury to
be known as the Illinois Thoroughbred Breeders 
2Fund. 

3 Beginning on the effective date of this amendatory Act of 
4the 100th General Assembly, the Illinois Thoroughbred Breeders 
5Fund shall become a non-appropriated trust fund held separately 
6from State moneys. Expenditures from this Fund shall no longer 
7be subject to appropriation. 
8 Except as provided in subsection (g) of Section 27 of this 
9Act, 8.5% of all
the monies received by the State as
privilege 
10taxes on Thoroughbred racing meetings shall be paid into the 
11Illinois
Thoroughbred Breeders Fund.

12 Notwithstanding any provision of law to the contrary, 
13amounts deposited into the Illinois Thoroughbred Breeders Fund 
14from revenues generated by gaming pursuant to an organization 
15gaming license issued under the Illinois Gambling Act after the 
16effective date of this amendatory Act of the 100th General 
17Assembly shall be in addition to tax and fee amounts paid under 
18this Section for calendar year 2018 and thereafter. 
19 (e) The Illinois Thoroughbred Breeders Fund shall be 
20administered by
the Department of Agriculture
with the advice 
21and assistance of the
Advisory Board created in subsection (f) 
22of this Section.

23 (f) The Illinois Thoroughbred Breeders Fund Advisory Board 
24shall
consist of the Director of the Department of Agriculture, 
25who shall
serve as Chairman; a member of the Illinois Racing 
26Board, designated by
it; 2 representatives of the organization 
 
 
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1licensees
conducting thoroughbred
racing meetings, recommended 
2by them; 2 representatives of the Illinois
Thoroughbred 
3Breeders and Owners Foundation, recommended by it; one 
4representative and 2
representatives of the Horsemen's 
5Benevolent Protective Association; and one representative from 
6the Illinois Thoroughbred Horsemen's Association or any

7successor organization established in Illinois comprised of 
8the largest number
of owners and trainers,
recommended
by it, 
9with one representative of the Horsemen's Benevolent and 
10Protective
Association to come from its Illinois Division, and 
11one from its Chicago
Division. Advisory Board members shall 
12serve for 2 years commencing January 1
of
each odd numbered 
13year. If representatives of the organization licensees

14conducting thoroughbred racing meetings, the Illinois 
15Thoroughbred Breeders and
Owners Foundation, and the 
16Horsemen's Benevolent Protection Association, and the Illinois 
17Thoroughbred Horsemen's Association have
not been recommended 
18by January 1, of each odd numbered year, the Director of
the 
19Department of Agriculture shall make an appointment for the 
20organization
failing to so recommend a member of the Advisory 
21Board. Advisory Board members
shall receive no compensation for 
22their services as members but shall be
reimbursed for all 
23actual and necessary expenses and disbursements incurred in
the 
24execution of their official duties.

25 (g) No monies shall be expended from the Illinois 
26Thoroughbred
Breeders Fund except as appropriated by the 
 
 
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1General Assembly. Monies expended
appropriated from the 
2Illinois Thoroughbred Breeders Fund shall be
expended by the 
3Department of Agriculture,
with the advice and
assistance of 
4the Illinois Thoroughbred Breeders Fund Advisory Board,
for the 
5following purposes only:

6  (1) To provide purse supplements to owners of horses 
7 participating
in races limited to Illinois conceived and 
8 foaled and Illinois foaled
horses. Any such purse 
9 supplements shall not be included in and shall
be paid in 
10 addition to any purses, stakes, or breeders' awards offered

11 by each organization licensee as determined by agreement 
12 between such
organization licensee and an organization 
13 representing the horsemen. No
monies from the Illinois 
14 Thoroughbred Breeders Fund shall be used to provide
purse 
15 supplements for claiming races in which the minimum 
16 claiming price is
less than $7,500.

17  (2) To provide stakes and awards to be paid to the 
18 owners of the
winning horses in certain races limited to 
19 Illinois conceived and foaled
and Illinois foaled horses 
20 designated as stakes races. 

21  (2.5) To provide an award to the owner or owners of an 
22 Illinois
conceived and foaled or Illinois foaled horse that 
23 wins a
maiden special weight, an allowance, overnight 
24 handicap race, or
claiming race with claiming price of 
25 $10,000 or more providing the race
is not restricted
to 
26 Illinois conceived and foaled or Illinois foaled horses.

 
 
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1 Awards shall
also be provided to the owner or owners of 
2 Illinois conceived and foaled and
Illinois foaled horses 
3 that place second or third in those races. To the
extent

4 that additional moneys are required to pay the minimum 
5 additional awards of 40%
of the purse the horse earns for 
6 placing first, second or third in those races
for Illinois 
7 foaled horses and of 60% of the purse the horse earns for 
8 placing
first, second or third in those races for Illinois

9 conceived and foaled horses, those moneys shall be provided 
10 from the purse
account at the track where earned.

11  (3) To provide stallion awards to the owner or owners 
12 of any
stallion that is duly registered with the Illinois 
13 Thoroughbred Breeders
Fund Program prior to the effective 
14 date of this amendatory Act of 1995 whose
duly registered 
15 Illinois conceived and foaled offspring wins a race 
16 conducted
at an Illinois
thoroughbred racing meeting other 
17 than a claiming race, provided that the stallion stood 
18 service within Illinois at the time the offspring was 
19 conceived and that the stallion did not stand for service 
20 outside of Illinois at any time during the year in which 
21 the offspring was conceived. Such
award
shall not be paid 
22 to the owner or owners of an Illinois stallion that served

23 outside this State at any time during the calendar year in 
24 which such race was
conducted.

25  (4) To provide $75,000 annually for purses to be

26 distributed to
county fairs that provide for the running of 
 
 
10000SB0007ham003- 286 -LRB100 06307 SMS 40923 a


1 races during each county
fair exclusively for the 
2 thoroughbreds conceived and foaled in
Illinois. The 
3 conditions of the races shall be developed by the county

4 fair association and reviewed by the Department with the 
5 advice and
assistance of
the Illinois Thoroughbred 
6 Breeders Fund Advisory Board. There shall be no
wagering of 
7 any kind on the running
of
Illinois conceived and foaled 
8 races at county fairs.

9  (4.1) To provide purse money for an Illinois stallion 
10 stakes program.

11  (5) No less than 90% 80% of all monies appropriated 
12 from the Illinois
Thoroughbred Breeders Fund shall be 
13 expended for the purposes in (1), (2),
(2.5), (3), (4), 
14 (4.1), and (5) as shown above.

15  (6) To provide for educational programs regarding the 
16 thoroughbred
breeding industry.

17  (7) To provide for research programs concerning the 
18 health,
development and care of the thoroughbred horse.

19  (8) To provide for a scholarship and training program 
20 for students
of equine veterinary medicine.

21  (9) To provide for dissemination of public information 
22 designed to
promote the breeding of thoroughbred horses in 
23 Illinois.

24  (10) To provide for all expenses incurred in the 
25 administration of
the Illinois Thoroughbred Breeders Fund.

26 (h) The Illinois Thoroughbred Breeders Fund is not subject 
 
 
10000SB0007ham003- 287 -LRB100 06307 SMS 40923 a


1to administrative charges or chargebacks, including, but not 
2limited to, those authorized under Section 8h of the State 
3Finance Act. Whenever the Governor finds that the amount in the 
4Illinois
Thoroughbred Breeders Fund is more than the total of 
5the outstanding
appropriations from such fund, the Governor 
6shall notify the State
Comptroller and the State Treasurer of 
7such fact. The Comptroller and
the State Treasurer, upon 
8receipt of such notification, shall transfer
such excess amount 
9from the Illinois Thoroughbred Breeders Fund to the
General 
10Revenue Fund.

11 (i) A sum equal to 13% of the first prize money of every 
12purse won by an Illinois foaled or Illinois conceived and 
13foaled horse in races not limited to Illinois foaled horses or 
14Illinois conceived and foaled horses, or both, shall be paid by 
15the organization licensee conducting the horse race meeting. 
16Such sum shall be paid 50% from the organization licensee's 
17share of the money wagered and 50% from the purse account as 
18follows: 11 1/2% to the breeder of the winning horse and 1 1/2% 
19to the organization representing thoroughbred breeders and 
20owners who representative serves on the Illinois Thoroughbred 
21Breeders Fund Advisory Board for verifying the amounts of 
22breeders' awards earned, ensuring their distribution in 
23accordance with this Act, and servicing and promoting the 
24Illinois thoroughbred horse racing industry. Beginning in the 
25calendar year in which an organization licensee that is 
26eligible to receive payments under paragraph (13) of subsection 
 
 
10000SB0007ham003- 288 -LRB100 06307 SMS 40923 a


1(g) of Section 26 of this Act begins to receive funds from 
2gaming pursuant to an organization gaming license issued under 
3the Illinois Gambling Act, a sum equal to 21 1/2% of the first 
4prize money of every purse won by an Illinois foaled or an 
5Illinois conceived and foaled horse in races not limited to an 
6Illinois conceived and foaled horse, or both, shall be paid 30% 
7from the organization licensee's account and 70% from the purse 
8account as follows: 20% to the breeder of the winning horse and 
91 1/2% to the organization representing thoroughbred breeders 
10and owners whose representatives serve on the Illinois 
11Thoroughbred Breeders Fund Advisory Board for verifying the 
12amounts of breeders' awards earned, ensuring their 
13distribution in accordance with this Act, and servicing and 
14promoting the Illinois Thoroughbred racing industry. A sum 
15equal to 12 1/2% of the first prize money of every purse
won by 
16an Illinois foaled or an Illinois conceived and foaled horse in

17races not limited to Illinois foaled horses or Illinois 
18conceived and
foaled horses, or both, shall be paid by the 
19organization licensee
conducting the horse race meeting. Such 
20sum shall be paid from the organization
licensee's share of the 
21money wagered as follows: 11 1/2% to the breeder of
the winning 
22horse and 1% to the organization representing thoroughbred 
23breeders
and owners whose representative serves on the Illinois 
24Thoroughbred Breeders
Fund Advisory Board for verifying the 
25amounts of breeders' awards earned,
assuring their 
26distribution in accordance with this Act, and servicing and

 
 
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1promoting the Illinois thoroughbred horse racing industry. The

2organization representing thoroughbred breeders and owners 
3shall cause all
expenditures of monies received under this 
4subsection (i) to be audited
at least annually by a registered 
5public accountant. The organization
shall file copies of each 
6annual audit with the Racing Board, the Clerk of
the House of 
7Representatives and the Secretary of the Senate, and shall
make 
8copies of each annual audit available to the public upon 
9request
and upon payment of the reasonable cost of photocopying 
10the requested
number of copies. Such payments shall not reduce 
11any award to the owner of the
horse or reduce the taxes payable 
12under this Act. Upon completion of its
racing meet, each 
13organization licensee shall deliver to the organization

14representing thoroughbred breeders and owners whose 
15representative serves on
the Illinois Thoroughbred Breeders 
16Fund Advisory Board a listing of all the
Illinois foaled and 
17the Illinois conceived and foaled horses which won
breeders' 
18awards and the amount of such breeders' awards under this 
19subsection
to verify accuracy of payments and assure proper 
20distribution of breeders'
awards in accordance with the 
21provisions of this Act. Such payments shall be
delivered by the 
22organization licensee within 30 days of the end of each race

23meeting.

24 (j) A sum equal to 13% of the first prize money won in 
25every race limited to Illinois foaled horses or Illinois 
26conceived and foaled horses, or both, shall be paid in the 
 
 
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1following manner by the organization licensee conducting the 
2horse race meeting, 50% from the organization licensee's share 
3of the money wagered and 50% from the purse account as follows: 
411 1/2% to the breeders of the horses in each such race which 
5are the official first, second, third, and fourth finishers and 
61 1/2% to the organization representing thoroughbred breeders 
7and owners whose representatives serve on the Illinois 
8Thoroughbred Breeders Fund Advisory Board for verifying the 
9amounts of breeders' awards earned, ensuring their proper 
10distribution in accordance with this Act, and servicing and 
11promoting the Illinois horse racing industry. Beginning in the 
12calendar year in which an organization licensee that is 
13eligible to receive payments under paragraph (13) of subsection 
14(g) of Section 26 of this Act begins to receive funds from 
15gaming pursuant to an organization gaming license issued under 
16the Illinois Gambling Act, a sum of 21 1/2% of every purse in a 
17race limited to Illinois foaled horses or Illinois conceived 
18and foaled horses, or both, shall be paid by the organization 
19licensee conducting the horse race meeting. Such sum shall be 
20paid 30% from the organization licensee's account and 70% from 
21the purse account as follows: 20% to the breeders of the horses 
22in each such race who are official first, second, third and 
23fourth finishers and 1 1/2% to the organization representing 
24thoroughbred breeders and owners whose representatives serve 
25on the Illinois Thoroughbred Breeders Fund Advisory Board for 
26verifying the amounts of breeders' awards earned, ensuring 
 
 
10000SB0007ham003- 291 -LRB100 06307 SMS 40923 a


1their proper distribution in accordance with this Act, and 
2servicing and promoting the Illinois thoroughbred horse racing 
3industry. The organization representing thoroughbred breeders 
4and owners shall cause all expenditures of moneys received 
5under this subsection (j) to be audited at least annually by a 
6registered public accountant. The organization shall file 
7copies of each annual audit with the Racing Board, the Clerk of 
8the House of Representatives and the Secretary of the Senate, 
9and shall make copies of each annual audit available to the 
10public upon request and upon payment of the reasonable cost of 
11photocopying the requested number of copies. The copies of the 
12audit to the General Assembly shall be filed with the Clerk of 
13the House of Representatives and the Secretary of the Senate in 
14electronic form only, in the manner that the Clerk and the 
15Secretary shall direct. A sum equal to 12 1/2% of the first 
16prize money won in each race
limited to Illinois foaled horses 
17or Illinois conceived and foaled
horses, or both, shall be paid 
18in the following manner by the
organization licensee conducting 
19the horse race meeting, from the
organization licensee's share 
20of the money wagered: 11 1/2% to the breeders of
the horses in 
21each such race which are the official first, second, third
and 
22fourth finishers and 1% to the organization representing 
23thoroughbred
breeders and owners whose representative serves 
24on the Illinois Thoroughbred
Breeders Fund Advisory Board for 
25verifying the amounts of breeders' awards
earned, assuring 
26their proper distribution in accordance with this Act, and

 
 
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1servicing and promoting the Illinois thoroughbred horse racing 
2industry. The
organization representing thoroughbred breeders 
3and owners shall cause all
expenditures of monies received 
4under this subsection (j) to be audited
at least annually by a 
5registered public accountant. The organization
shall file 
6copies of each annual audit with the Racing Board, the Clerk of

7the House of Representatives and the Secretary of the Senate, 
8and shall
make copies of each annual audit available to the 
9public upon request
and upon payment of the reasonable cost of 
10photocopying the requested
number of copies.

11 The amounts 11 1/2% paid to the breeders in accordance with 
12this subsection
shall be distributed as follows:

13  (1) 60% of such sum shall be paid to the breeder of the 
14 horse which
finishes in the official first position;

15  (2) 20% of such sum shall be paid to the breeder of the 
16 horse which
finishes in the official second position;

17  (3) 15% of such sum shall be paid to the breeder of the 
18 horse which
finishes in the official third position; and

19  (4) 5% of such sum shall be paid to the breeder of the 
20 horse which
finishes in the official fourth position.

21 Such payments shall not reduce any award to the owners of a 
22horse or
reduce the taxes payable under this Act. Upon 
23completion of its racing meet,
each organization licensee shall 
24deliver to the organization representing
thoroughbred breeders 
25and owners whose representative serves on the Illinois

26Thoroughbred Breeders Fund Advisory Board a listing of all the 
 
 
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1Illinois foaled
and the Illinois conceived and foaled horses 
2which won breeders' awards and the
amount of such breeders' 
3awards in accordance with the provisions of this Act.
Such 
4payments shall be delivered by the organization licensee within 
530 days of
the end of each race meeting.

6 (k) The term "breeder", as used herein, means the owner of 
7the mare at
the time the foal is dropped. An "Illinois foaled 
8horse" is a foal
dropped by a mare which enters this State on 
9or before December 1, in the
year in which the horse is bred,

10provided the mare remains continuously in this State until its 
11foal is born. An
"Illinois
foaled
horse" also means a foal born 
12of a mare in the same year
as the
mare enters this State on or 
13before March 1,
and remains in this State at
least 30
days 
14after foaling, is bred back during the season of the foaling to

15an
Illinois Registered Stallion (unless a veterinarian 
16certifies that the mare
should not be bred for health reasons), 
17and is not bred to a stallion
standing in any other state 
18during the season of foaling. An "Illinois
foaled horse" also 
19means a foal born in Illinois of a mare purchased at public

20auction
subsequent to the mare entering this State on or before 
21March 1 prior to February 1 of the foaling
year providing the 
22mare is owned solely by one or more Illinois residents or an

23Illinois
entity that is entirely owned by one or more Illinois 
24residents. 

25 (l) The Department of Agriculture shall, by rule, with the 
26advice
and assistance of the Illinois Thoroughbred Breeders 
 
 
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1Fund Advisory
Board:

2  (1) Qualify stallions for Illinois breeding; such 
3 stallions to stand for
service within the State of Illinois 
4 at the time of a foal's conception. Such
stallion must not 
5 stand for service at any place outside the State of 
6 Illinois
during the calendar year in which the foal is 
7 conceived.
The Department of Agriculture may assess and 
8 collect an application fee of up to $500 fees for the

9 registration of Illinois-eligible stallions. All fees 
10 collected are to be held in trust accounts for the purposes 
11 set forth in this Act and in accordance with Section 205-15 
12 of the Department of Agriculture Law paid
into the Illinois 
13 Thoroughbred Breeders Fund.

14  (2) Provide for the registration of Illinois conceived 
15 and foaled
horses and Illinois foaled horses. No such horse 
16 shall compete in
the races limited to Illinois conceived 
17 and foaled horses or Illinois
foaled horses or both unless 
18 registered with the Department of
Agriculture. The 
19 Department of Agriculture may prescribe such forms as
are 
20 necessary to determine the eligibility of such horses. The 
21 Department of
Agriculture may assess and collect 
22 application fees for the registration of
Illinois-eligible 
23 foals. All fees collected are to be held in trust accounts 
24 for the purposes set forth in this Act and in accordance 
25 with Section 205-15 of the Department of Agriculture Law 
26 paid into the Illinois
Thoroughbred Breeders Fund. No 
 
 
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1 person
shall knowingly prepare or cause preparation of an 
2 application for
registration of such foals containing 
3 false information.

4 (m) The Department of Agriculture, with the advice and 
5assistance of
the Illinois Thoroughbred Breeders Fund Advisory 
6Board, shall provide that certain races
limited to Illinois 
7conceived and foaled and Illinois foaled horses be
stakes races 
8and determine the total amount of stakes and awards to be paid

9to the owners of the winning horses in such races.

10 In determining the stakes races and the amount of awards 
11for such races,
the Department of Agriculture shall consider 
12factors, including but not
limited to, the amount of money 
13appropriated for the Illinois Thoroughbred
Breeders Fund 
14program, organization licensees' contributions,
availability 
15of stakes caliber horses as demonstrated by past performances,

16whether the race can be coordinated into the proposed racing 
17dates within
organization licensees' racing dates, opportunity 
18for
colts and fillies
and various age groups to race, public 
19wagering on such races, and the
previous racing schedule.

20 (n) The Board and the organizational licensee shall
notify 
21the Department of the conditions and minimum purses for races

22limited to Illinois conceived and foaled and Illinois foaled 
23horses
conducted for each organizational licensee conducting a 
24thoroughbred racing
meeting. The Department of Agriculture 
25with the advice and assistance of
the Illinois Thoroughbred 
26Breeders Fund Advisory Board may allocate monies
for purse 
 
 
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1supplements for such races. In determining whether to allocate

2money and the amount, the Department of Agriculture shall 
3consider factors,
including but not limited to, the amount of 
4money appropriated for the
Illinois Thoroughbred Breeders Fund 
5program, the number of races that may
occur, and the 
6organizational licensee's purse structure.

7 (o) (Blank).

8(Source: P.A. 98-692, eff. 7-1-14.)





9 (230 ILCS 5/30.5)



10 Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund. 

11 (a) The General Assembly declares that it is the policy of 
12this State to
encourage the breeding of racing quarter horses 
13in this State and the ownership
of such horses by residents of 
14this State in order to provide for sufficient
numbers of high 
15quality racing quarter horses in this State and to establish

16and
preserve the agricultural and commercial benefits of such 
17breeding and racing
industries to the State of Illinois. It is 
18the intent of the General Assembly
to
further this policy by 
19the provisions of this Act.

20 (b) There is hereby created non-appropriated trust a 
21special fund in the State Treasury to be
known as the Illinois 
22Racing Quarter Horse Breeders Fund, which is held separately 
23from State moneys. Except as provided
in
subsection (g) of 
24Section 27 of this Act, 8.5% of all the moneys received by
the

25State as pari-mutuel taxes on quarter horse racing shall be 
 
 
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1paid into the
Illinois
Racing Quarter Horse Breeders Fund. The 
2Illinois Racing Quarter Horse Breeders Fund shall not be 
3subject to administrative charges or chargebacks, including, 
4but not
limited to, those authorized under Section 8h of the 
5State Finance Act.

6 (c) The Illinois Racing Quarter Horse Breeders Fund shall 
7be administered
by the Department of Agriculture with the 
8advice and assistance of the Advisory
Board created in 
9subsection (d) of this Section.

10 (d) The Illinois Racing Quarter Horse Breeders Fund 
11Advisory Board shall
consist of the Director of the Department 
12of Agriculture, who shall serve as
Chairman; a member of the 
13Illinois Racing Board, designated by it; one
representative of 
14the organization licensees conducting pari-mutuel
quarter 
15horse racing meetings,
recommended by them; 2 representatives 
16of the Illinois Running Quarter Horse
Association, recommended 
17by it; and the Superintendent of Fairs and Promotions
from the 
18Department of Agriculture. Advisory Board members shall serve 
19for 2
years commencing January 1 of each odd numbered year. If 
20representatives have
not
been recommended by January 1 of each 
21odd numbered year, the Director of the
Department of 
22Agriculture may make an appointment for the organization 
23failing
to
so recommend a member of the Advisory Board. 
24Advisory Board members shall
receive
no compensation for their 
25services as members but may be reimbursed for all
actual and 
26necessary expenses and disbursements incurred in the execution 
 
 
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1of
their official duties.

2 (e) Moneys in No moneys shall be expended from the Illinois 
3Racing Quarter Horse
Breeders Fund except as appropriated by 
4the General Assembly. Moneys
appropriated
from the Illinois 
5Racing Quarter Horse Breeders Fund shall be expended by the

6Department of Agriculture, with the advice and assistance of 
7the Illinois
Racing
Quarter Horse Breeders Fund Advisory Board, 
8for the following purposes only:


9  (1) To provide stakes and awards to be paid to the

10 owners of the winning horses in certain races. This 
11 provision
is limited to Illinois conceived and foaled 
12 horses.


13  (2) To provide an award to the owner or owners of an 
14 Illinois
conceived and foaled horse that wins a race when 
15 pari-mutuel wagering is
conducted; providing the race is 
16 not restricted to Illinois conceived and
foaled horses.


17  (3) To provide purse money for an Illinois stallion 
18 stakes program.


19  (4) To provide for purses to be distributed for the 
20 running of races
during the Illinois State Fair and the 
21 DuQuoin State Fair exclusively for
quarter horses 
22 conceived and foaled in Illinois.


23  (5) To provide for purses to be distributed for the 
24 running of races
at Illinois county fairs exclusively for 
25 quarter horses conceived and foaled
in Illinois.


26  (6) To provide for purses to be distributed for running 
 
 
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1 races
exclusively for quarter horses conceived and foaled 
2 in Illinois at locations
in Illinois determined by the 
3 Department of Agriculture with advice and
consent of the 
4 Illinois Racing Quarter Horse Breeders Fund Advisory 
5 Board.


6  (7) No less than 90% of all moneys appropriated from 
7 the Illinois
Racing Quarter Horse Breeders Fund shall be 
8 expended for the purposes in
items (1), (2), (3), (4), and 
9 (5) of this subsection (e).


10  (8) To provide for research programs concerning the 
11 health,
development, and care of racing quarter horses.


12  (9) To provide for dissemination of public information 
13 designed to
promote the breeding of racing quarter horses 
14 in Illinois.


15  (10) To provide for expenses incurred in the 
16 administration of the
Illinois Racing Quarter Horse 
17 Breeders Fund.

18 (f) The Department of Agriculture shall, by rule, with the 
19advice and
assistance of the Illinois Racing Quarter Horse 
20Breeders Fund Advisory Board:


21  (1) Qualify stallions for Illinois breeding; such 
22 stallions to stand
for service within the State of 
23 Illinois, at the time of a foal's
conception. Such stallion 
24 must not stand for service at any place outside
the State 
25 of Illinois during the calendar year in which the foal is

26 conceived. The Department of Agriculture may assess and 
 
 
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1 collect application
fees for the registration of 
2 Illinois-eligible stallions. All fees collected
are to be 
3 paid into the Illinois Racing Quarter Horse Breeders Fund.


4  (2) Provide for the registration of Illinois conceived 
5 and foaled
horses. No such horse shall compete in the races 
6 limited to Illinois
conceived and foaled horses unless it 
7 is registered with the Department of
Agriculture. The 
8 Department of Agriculture may prescribe such forms as are

9 necessary to determine the eligibility of such horses. The 
10 Department of
Agriculture may assess and collect 
11 application fees for the registration of
Illinois-eligible 
12 foals. All fees collected are to be paid into the Illinois

13 Racing Quarter Horse Breeders Fund. No person shall 
14 knowingly prepare or
cause preparation of an application 
15 for registration of such foals that
contains false 
16 information.

17 (g) The Department of Agriculture, with the advice and 
18assistance of the
Illinois Racing Quarter Horse Breeders Fund 
19Advisory Board, shall provide that
certain races limited to 
20Illinois conceived and foaled be stakes races and
determine the 
21total amount of stakes and awards to be paid to the owners of 
22the
winning horses in such races.

23(Source: P.A. 98-463, eff. 8-16-13.)





24 (230 ILCS 5/31) (from Ch. 8, par. 37-31)



25 Sec. 31. 
(a) The General Assembly declares that it is the 
 
 
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1policy of
this State to encourage the breeding of standardbred 
2horses in this
State and the ownership of such horses by 
3residents of this State in
order to provide for: sufficient 
4numbers of high quality standardbred
horses to participate in 
5harness racing meetings in this State, and to
establish and 
6preserve the agricultural and commercial benefits of such

7breeding and racing industries to the State of Illinois. It is 
8the
intent of the General Assembly to further this policy by 
9the provisions
of this Section of this Act.

10 (b) Each organization licensee conducting a harness
racing 
11meeting pursuant to this Act shall provide for at least two 
12races each
race program limited to
Illinois conceived and 
13foaled horses. A minimum of 6 races shall be
conducted each 
14week limited to Illinois conceived and foaled horses. No
horses 
15shall be permitted to start in such races unless duly 
16registered
under the rules of the Department of Agriculture.

17 (b-5) Organization licensees, not including the Illinois 
18State Fair or the DuQuoin State Fair, shall provide stake races 
19and early closer races for Illinois conceived and foaled horses 
20so that purses distributed for such races shall be no less than 
2117% of total purses distributed for harness racing in that 
22calendar year in addition to any stakes payments and starting 
23fees contributed by horse owners. 
24 (b-10) Each organization licensee conducting a harness 
25racing meeting
pursuant to this Act shall provide an owner 
26award to be paid from the purse
account equal to 25% of the 
 
 
10000SB0007ham003- 302 -LRB100 06307 SMS 40923 a


1amount earned by Illinois conceived and foaled
horses in races 
2that are not restricted to Illinois conceived and foaled

3horses. The owner awards shall not be paid on races below the 
4$10,000 claiming class. 
5 (c) Conditions of races under subsection (b) shall be 
6commensurate
with past performance, quality and class of 
7Illinois conceived and
foaled horses available. If, however, 
8sufficient competition cannot be
had among horses of that class 
9on any day, the races may, with consent
of the Board, be 
10eliminated for that day and substitute races provided.

11 (d) There is hereby created a special fund of the State 
12Treasury to
be known as the Illinois Standardbred Breeders 
13Fund. 

14 During the calendar year 1981, and each year thereafter, 
15except as provided
in subsection (g) of Section 27 of this Act, 
16eight and one-half
per cent of all the monies received by the 
17State as privilege taxes on
harness racing meetings shall be 
18paid into the Illinois Standardbred
Breeders Fund.

19 (e) The Illinois Standardbred Breeders Fund shall be 
20administered by
the Department of Agriculture with the 
21assistance and advice of the
Advisory Board created in 
22subsection (f) of this Section.

23 (f) The Illinois Standardbred Breeders Fund Advisory Board 
24is hereby
created. The Advisory Board shall consist of the 
25Director of the
Department of Agriculture, who shall serve as 
26Chairman; the
Superintendent of the Illinois State Fair; a 
 
 
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1member of the Illinois
Racing Board, designated by it; a 
2representative of the largest association of Illinois 
3standardbred owners and breeders, recommended by it; a

4representative of a statewide association representing 
5agricultural fairs in Illinois,
recommended by it, such 
6representative to be from a fair at which
Illinois conceived 
7and foaled racing is conducted; a representative of
the 
8organization licensees conducting harness racing
meetings, 
9recommended by them; a representative of the Breeder's 
10Committee of the association representing the largest number of 
11standardbred owners, breeders, trainers, caretakers, and 
12drivers, recommended by it;
and a representative of the 
13association representing the largest number of standardbred 
14owners, breeders, trainers, caretakers, and drivers,

15recommended by it. Advisory Board members shall serve for 2 
16years
commencing January 1 of each odd numbered year. If 
17representatives of
the largest association of Illinois 
18standardbred owners and breeders, a statewide association of 
19agricultural fairs in Illinois, the association representing 
20the largest number of standardbred owners, breeders, trainers, 
21caretakers, and drivers, a member of the Breeder's Committee of 
22the association representing the largest number of 
23standardbred owners, breeders, trainers, caretakers, and 
24drivers, and the organization licensees conducting
harness 
25racing meetings
have not been recommended by January 1 of each 
26odd numbered year, the
Director of the Department of 
 
 
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1Agriculture shall make an appointment for
the organization 
2failing to so recommend a member of the Advisory Board.

3Advisory Board members shall receive no compensation for their 
4services
as members but shall be reimbursed for all actual and 
5necessary expenses
and disbursements incurred in the execution 
6of their official duties.

7 (g) No monies shall be expended from the Illinois 
8Standardbred
Breeders Fund except as appropriated by the 
9General Assembly. Monies
appropriated from the Illinois 
10Standardbred Breeders Fund shall be
expended by the Department 
11of Agriculture, with the assistance and
advice of the Illinois 
12Standardbred Breeders Fund Advisory Board for the
following 
13purposes only:

14  1. To provide purses for races limited to Illinois 
15 conceived and
foaled horses at the State Fair and the 
16 DuQuoin State Fair. 

17  2. To provide purses for races limited to Illinois 
18 conceived and
foaled horses at county fairs. 

19  3. To provide purse supplements for races limited to 
20 Illinois
conceived and foaled horses conducted by 
21 associations conducting harness
racing meetings. 

22  4. No less than 75% of all monies in the Illinois 
23 Standardbred
Breeders Fund shall be expended for purses in 
24 1, 2 and 3 as shown above.

25  5. In the discretion of the Department of Agriculture 
26 to provide
awards to harness breeders of Illinois conceived 
 
 
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1 and foaled horses which
win races conducted by organization 
2 licensees
conducting harness racing meetings.
A breeder is 
3 the owner of a mare at the time of conception. No more
than 
4 10% of all monies appropriated from the Illinois

5 Standardbred Breeders Fund shall
be expended for such 
6 harness breeders awards. No more than 25% of the
amount 
7 expended for harness breeders awards shall be expended for

8 expenses incurred in the administration of such harness 
9 breeders awards.

10  6. To pay for the improvement of racing facilities 
11 located at the
State Fair and County fairs.

12  7. To pay the expenses incurred in the administration 
13 of the
Illinois Standardbred Breeders Fund.

14  8. To promote the sport of harness racing, including 
15 grants up to a
maximum of $7,500 per fair per year for 
16 conducting pari-mutuel wagering during the advertised 
17 dates of a
county fair.

18  9. To pay up to $50,000 annually for the Department of 
19 Agriculture to conduct drug testing at county fairs racing 
20 standardbred horses.
21 (h) (Blank) Whenever the Governor finds that the amount in 
22the Illinois
Standardbred Breeders Fund is more than the total 
23of the outstanding
appropriations from such fund, the Governor 
24shall notify the State
Comptroller and the State Treasurer of 
25such fact. The Comptroller and
the State Treasurer, upon 
26receipt of such notification, shall transfer
such excess amount 
 
 
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1from the Illinois Standardbred Breeders Fund to the
General 
2Revenue Fund.

3 (i) A sum equal to 13% 12 1/2% of the first prize money of 
4the gross every purse
won by an Illinois conceived and foaled 
5horse shall be paid 50% by the
organization licensee conducting 
6the horse race meeting to the breeder
of such winning horse 
7from the organization licensee's account and 50% from the purse 
8account of the licensee share of the
money wagered.
Such 
9payment
shall not reduce any award to the owner of
the horse or 
10reduce the taxes payable under this Act. Such payment
shall be 
11delivered by the organization licensee at the end of each 
12quarter race
meeting.

13 (j) The Department of Agriculture shall, by rule, with the

14assistance and advice of the Illinois Standardbred Breeders 
15Fund
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 
 
 
10000SB0007ham003- 307 -LRB100 06307 SMS 40923 a


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 
9assistance of the
Illinois
Standardbred Breeders Fund Advisory 
10Board, may allocate monies for purse
supplements for such 
11races. In determining whether to allocate money and
the amount, 
12the Department
of Agriculture shall consider factors, 
13including but not limited to, the
amount of money appropriated 
14for the Illinois Standardbred Breeders Fund
program, the number 
15of races that may occur, and an organizational
licensee's purse 
16structure. The organizational licensee shall notify the

17Department of Agriculture of the conditions and minimum purses 
18for races
limited to Illinois conceived and foaled horses to be 
19conducted by each
organizational licensee conducting a harness 
20racing meeting for which purse
supplements have been 
21negotiated.

22 (l) All races held at county fairs and the State Fair which 
23receive funds
from the Illinois Standardbred Breeders Fund 
24shall be conducted in
accordance with the rules of the United 
25States Trotting Association unless
otherwise modified by the 
26Department of Agriculture.

 
 
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1 (m) At all standardbred race meetings held or conducted 
2under authority of a
license granted by the Board, and at all 
3standardbred races held at county
fairs which are approved by 
4the Department of Agriculture or at the
Illinois or DuQuoin 
5State Fairs, no one shall jog, train, warm up or drive
a 
6standardbred horse unless he or she is wearing a protective 
7safety helmet,
with the
chin strap fastened and in place, which 
8meets the standards and
requirements as set forth in the 1984 
9Standard for Protective Headgear for
Use in Harness Racing and 
10Other Equestrian Sports published by the Snell
Memorial 
11Foundation, or any standards and requirements for headgear the

12Illinois Racing Board may approve. Any other standards and 
13requirements so
approved by the Board shall equal or exceed 
14those published by the Snell
Memorial Foundation. Any 
15equestrian helmet bearing the Snell label shall
be deemed to 
16have 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 
20real estate
equalization.

21 (a) In order to encourage new investment in Illinois 
22racetrack facilities and
mitigate differing real estate tax 
23burdens among all racetracks, the licensees
affiliated or 
24associated with each racetrack that has been awarded live 
25racing
dates in the current year shall receive an immediate 
 
 
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1pari-mutuel tax credit in
an amount equal to the greater of (i) 
250% of the amount of the real estate
taxes paid in the prior 
3year attributable to that racetrack, or (ii) the amount
by 
4which the real estate taxes paid in the prior year attributable 
5to that
racetrack exceeds 60% of the average real estate taxes 
6paid in the prior year
for all racetracks awarded live horse 
7racing meets in the current year.

8 Each year, regardless of whether the organization licensee 
9conducted live
racing in the year of certification, the
Board 
10shall certify in writing, prior to December 31, the real
estate 
11taxes paid in that year for each racetrack and the amount of 
12the
pari-mutuel tax credit that each organization licensee, 
13inter-track wagering
licensee, and inter-track wagering 
14location licensee that derives its license
from such racetrack 
15is entitled in the succeeding calendar year. The real
estate 
16taxes considered under this Section
for any racetrack shall be 
17those taxes on the real estate parcels and related
facilities 
18used to conduct a horse race meeting and inter-track wagering 
19at
such
racetrack under this Act.
In no event shall the amount 
20of the tax credit under this Section exceed the
amount of 
21pari-mutuel taxes otherwise calculated under this Act.
The 
22amount of the tax credit under this Section
shall be retained 
23by each licensee and shall not be subject to any reallocation

24or further distribution under this Act. The Board may 
25promulgate emergency
rules to implement this Section.

26 (b) If the organization licensee is operating gaming 
 
 
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1pursuant to an organization gaming license issued under the 
2Illinois Gambling Act, except the organization licensee 
3described in Section 19.5, then, for the 5-year period 
4beginning on the January 1 of the calendar year immediately 
5following the calendar year during which an organization 
6licensee begins conducting gaming operations pursuant to an 
7organization gaming license issued under the Illinois Gambling 
8Act, the organization licensee shall make capital 
9expenditures, in an amount equal to no less than 50% of the tax 
10credit under this Section, to the improvement and maintenance 
11of the backstretch, including, but not limited to, backstretch 
12barns, dormitories, and services for backstretch workers. 
13Those capital expenditures must be in addition to, and not in 
14lieu of, the capital expenditures made for backstretch 
15improvements in calendar year 2015, as reported to the Board in 
16the organization licensee's application for racing dates and as 
17certified by the Board. The organization licensee is required 
18to annually submit the list and amounts of these capital 
19expenditures to the Board by January 30th of the year following 
20the expenditure. 
21 (c) If the organization licensee is conducting gaming in 
22accordance with paragraph (b), then, after the 5-year period 
23beginning on January 1 of the calendar year immediately 
24following the calendar year during which an organization 
25licensee begins conducting gaming operations pursuant to an 
26organization gaming license issued under the Illinois Gambling 
 
 
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1Act, the organization license is ineligible to receive a tax 
2credit under this Section.
3(Source: P.A. 100-201, eff. 8-18-17.)


4 (230 ILCS 5/34.3 new)
5 Sec. 34.3. Drug testing. The Illinois Racing Board and the 
6Department of Agriculture shall jointly establish a program for 
7the purpose of conducting drug testing of horses at county 
8fairs and shall adopt any rules necessary for enforcement of 
9the program. The rules shall include appropriate penalties for 
10violations.




11 (230 ILCS 5/36)
 (from Ch. 8, par. 37-36)



12 Sec. 36. (a) Whoever administers or conspires to administer 
13to
any horse a hypnotic, narcotic, stimulant, depressant or any 
14chemical
substance which may affect the speed of a horse at any 
15time in any race
where the purse or any part of the purse is 
16made of money authorized by any
Section of this Act, except 
17those chemical substances permitted by ruling of
the Board, 
18internally, externally or by hypodermic method in a race or 
19prior
thereto, or whoever knowingly enters a horse in any race 
20within a period of 24
hours after any hypnotic, narcotic, 
21stimulant, depressant or any other chemical
substance which may 
22affect the speed of a horse at any time, except those
chemical 
23substances permitted by ruling of the Board, has been 
24administered to
such horse either internally or externally or 
 
 
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1by hypodermic method for the
purpose of increasing or retarding 
2the speed of such horse shall be guilty of a
Class 4 felony. 
3The Board shall suspend or revoke such violator's license.

4 (b) The term "hypnotic" as used in this Section includes 
5all barbituric
acid preparations and derivatives.

6 (c) The term "narcotic" as used in this Section includes 
7opium and
all its alkaloids, salts, preparations and 
8derivatives, cocaine
and all its salts, preparations and 
9derivatives and substitutes.

10 (d) The provisions of this Section and the treatment 
11authorized in this Section
apply to horses entered in and 
12competing in race meetings as defined in
Section 3.07 of this 
13Act and to horses entered in and competing at any county
fair.

14(Source: P.A. 79-1185.)




15 (230 ILCS 5/40) (from Ch. 8, par. 37-40)



16 Sec. 40. 
(a) The imposition of any fine or penalty provided 
17in this Act
shall not preclude the Board in its rules and 
18regulations from imposing a
fine or penalty for any other 
19action which, in the Board's discretion, is a
detriment or 
20impediment to horse racing.

21 (b) The Director of Agriculture or his or her authorized 
22representative
shall impose the following monetary penalties 
23and hold administrative
hearings as required for failure to 
24submit the following applications,
lists, or reports within the 
25time period, date or manner required by
statute or rule or for 
 
 
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1removing a foal from Illinois prior to inspection:

2  (1) late filing of a renewal application for offering 
3 or standing
stallion for service:

4   (A) if an application is submitted no more than 30 
5 days late, $50;

6   (B) if an application is submitted no more than 45 
7 days late, $150; or

8   (C) if an application is submitted more than 45 
9 days late, if filing
of the application is allowed 
10 under an administrative hearing, $250;

11  (2) late filing of list or report of mares bred:

12   (A) if a list or report is submitted no more than 
13 30 days late, $50;

14   (B) if a list or report is submitted no more than 
15 60 days late, $150; or

16   (C) if a list or report is submitted more than 60 
17 days late, if filing
of the list or report is allowed 
18 under an administrative hearing, $250;

19  (3) filing an Illinois foaled thoroughbred mare status 
20 report after the statutory deadline as provided in 
21 subsection (k) of Section 30 of this Act
December 31:

22   (A) if a report is submitted no more than 30 days 
23 late, $50;

24   (B) if a report is submitted no more than 90 days 
25 late, $150;

26   (C) if a report is submitted no more than 150 days 
 
 
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1 late, $250; or

2   (D) if a report is submitted more than 150 days 
3 late, if filing of
the report is allowed under an 
4 administrative hearing, $500;

5  (4) late filing of application for foal eligibility 
6 certificate:

7   (A) if an application is submitted no more than 30 
8 days late, $50;

9   (B) if an application is submitted no more than 90 
10 days late, $150;

11   (C) if an application is submitted no more than 150 
12 days late, $250; or

13   (D) if an application is submitted more than 150 
14 days late, if
filing of the application is allowed 
15 under an administrative hearing, $500;

16  (5) failure to report the intent to remove a foal from 
17 Illinois prior
to inspection, identification and 
18 certification by a Department of
Agriculture investigator, 
19 $50; and

20  (6) if a list or report of mares bred is incomplete, 
21 $50 per mare not
included on the list or report.

22 Any person upon whom monetary penalties are imposed under 
23this Section 3
times within a 5-year period shall have any 
24further monetary penalties
imposed at double the amounts set 
25forth above. All monies assessed and
collected for violations 
26relating to thoroughbreds shall be paid into the
Illinois 
 
 
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1Thoroughbred Breeders Fund. All monies assessed and collected 
2for
violations relating to standardbreds shall be paid into the 
3Illinois Standardbred
Breeders Fund.

4(Source: P.A. 99-933, eff. 1-27-17; 100-201, eff. 8-18-17.)


5 (230 ILCS 5/54.75)

6 Sec. 54.75. Horse Racing Equity Trust Fund.
7 (a) There is created a Fund to be known as the Horse
Racing

8Equity Trust Fund, which is a non-appropriated trust fund held 
9separate and apart from State moneys. The Fund shall consist of 
10moneys paid into it by owners licensees under
the Illinois 
11Riverboat Gambling Act for the purposes described in this 
12Section. The Fund shall
be administered
by the Board. Moneys in 
13the Fund shall be distributed as directed and certified by the 
14Board in accordance with the provisions of subsection (b).
15 (b) The moneys deposited into the Fund, plus any accrued 
16interest on those moneys, shall be distributed
within 10 days 
17after those moneys are deposited into the Fund as follows: 
18  (1) Sixty percent of all moneys distributed under this 
19 subsection shall be
distributed to organization licensees 
20 to be distributed at their race
meetings as purses. 
21 Fifty-seven percent of the amount distributed under this

22 paragraph (1) shall be distributed for thoroughbred race 
23 meetings and
43% shall be distributed for standardbred race 
24 meetings. Within each
breed, moneys shall be allocated to 
25 each organization licensee's purse
fund in accordance with 
 
 
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1 the ratio between the purses generated for that
breed by 
2 that licensee during the prior calendar year and the total 
3 purses
generated throughout the State for that breed during 
4 the prior calendar
year by licensees in the current 
5 calendar year. 
6  (2) The remaining 40% of the moneys distributed under 
7 this
subsection (b) shall be distributed as follows: 
8   (A) 11% shall be distributed to any person (or its 
9 successors or assigns) who had operating control of a 
10 racetrack that conducted live racing in 2002 at a 
11 racetrack in a
county with at least 230,000 inhabitants 
12 that borders the Mississippi River and is a licensee in 
13 the current year; and 
14   (B) the remaining 89% shall be distributed pro rata

15 according to the aggregate
proportion of total handle 
16 from wagering on live races conducted in Illinois 
17 (irrespective of where the wagers are placed) for 
18 calendar years 2004 and 2005
to any person (or its

19 successors or assigns) who (i) had
majority operating 
20 control of a racing facility at which live racing was 
21 conducted in
calendar year 2002, (ii) is a licensee in 
22 the current
year, and (iii) is not eligible to receive 
23 moneys under subparagraph (A) of this paragraph (2). 
24   The moneys received by an organization licensee 
25 under this paragraph (2) shall be used by each 
26 organization licensee to improve, maintain, market, 
 
 
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1 and otherwise operate its racing facilities to conduct 
2 live racing, which shall include backstretch services 
3 and capital improvements related to live racing and the 
4 backstretch. Any organization licensees sharing common 
5 ownership may pool the moneys received and spent at all 
6 racing facilities commonly owned in order to meet these 
7 requirements. 
8  If any person identified in this paragraph (2) becomes

9 ineligible to receive moneys from the Fund, such amount 
10 shall be redistributed
among the remaining persons in 
11 proportion to their percentages otherwise
calculated. 
12 (c) The Board shall monitor organization licensees to 
13ensure that moneys paid to organization licensees under this 
14Section are distributed by the organization licensees as 
15provided in subsection (b). 

16(Source: P.A. 95-1008, eff. 12-15-08.)

17 (230 ILCS 5/56 new)
18 Sec. 56. Gaming pursuant to an organization gaming license.
19 (a) A person, firm, corporation, or limited liability 
20company having operating control of a racetrack may apply to 
21the Gaming Board for an organization gaming license. An 
22organization gaming license shall authorize its holder to 
23conduct gaming on the grounds of the racetrack of which the 
24organization gaming licensee has operating control. Only one 
25organization gaming license may be awarded for any racetrack. A 
 
 
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1holder of an organization gaming license shall be subject to 
2the Illinois Gambling Act and rules of the Illinois Gaming 
3Board concerning gaming pursuant to an organization gaming 
4license issued under the Illinois Gambling Act. If the person, 
5firm, corporation, or limited liability company having 
6operating control of a racetrack is found by the Illinois 
7Gaming Board to be unsuitable for an organization gaming 
8license under the Illinois Gambling Act and rules of the Gaming 
9Board, that person, firm, corporation, or limited liability 
10company shall not be granted an organization gaming license. 
11Each license shall specify the number of gaming positions that 
12its holder may operate.
13 An organization gaming licensee may not permit persons 
14under 21 years of age to be present in its organization gaming 
15facility, but the licensee may accept wagers on live racing and 
16inter-track wagers at its organization gaming facility.
17 (b) For purposes of this subsection, "adjusted gross 
18receipts" means an organization gaming licensee's gross 
19receipts less winnings paid to wagerers and shall also include 
20any amounts that would otherwise be deducted pursuant to 
21subsection (a-9) of Section 13 of the Illinois Gambling Act. 
22The adjusted gross receipts by an organization gaming licensee 
23from gaming pursuant to an organization gaming license issued 
24under the Illinois Gambling Act remaining after the payment of 
25taxes under Section 13 of the Illinois Gambling Act shall be 
26distributed as follows:
 
 
10000SB0007ham003- 321 -LRB100 06307 SMS 40923 a


1  (1) Amounts shall be paid to the purse account at the 
2 track at which the organization licensee is conducting 
3 racing equal to the following:
4   12.75% of annual adjusted gross receipts up to and 
5 including $75,000,000;
6   20% of annual adjusted gross receipts in excess of 
7 $75,000,000 but not exceeding $100,000,000;
8   26.5% of annual adjusted gross receipts in excess 
9 of $100,000,000 but not exceeding $125,000,000; and
10   20.5% of annual adjusted gross receipts in excess 
11 of $125,000,000.
12  (2) The remainder shall be retained by the organization 
13 gaming licensee.
14 (c) Gaming receipts from gaming pursuant to an organization 
15gaming license placed into the purse account of an organization 
16licensee racing thoroughbred horses shall be used for purses, 
17for health care services or worker's compensation for racing 
18industry workers, for equine research, for programs to care for 
19and transition injured and retired thoroughbred horses that 
20race at the racetrack, or for horse ownership promotion, in 
21accordance with the agreement of the horsemen's association 
22representing the largest number of owners and trainers who race 
23at that organization licensee's race meetings.
24 Annually, from the purse account of an organization 
25licensee racing thoroughbred horses in this State, except for 
26in Madison County, an amount equal to 12% of the gaming 
 
 
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1receipts from gaming pursuant to an organization gaming license 
2placed into the purse accounts shall be paid to the Illinois 
3Thoroughbred Breeders Fund and shall be used for owner awards; 
4a stallion program pursuant to paragraph (3) of subsection (g) 
5of Section 30 of this Act; and Illinois conceived and foaled 
6stakes races pursuant to paragraph (2) of subsection (g) of 
7Section 30 of this Act, as specifically designated by the 
8horsemen's association representing the largest number of 
9owners and trainers who race at the organization licensee's 
10race meetings.
11 Annually, from the purse account of an organization 
12licensee racing thoroughbred horses in Madison County, an 
13amount equal to 10% of the gaming receipts from gaming pursuant 
14to an organization gaming license placed into the purse 
15accounts shall be paid to the Illinois Thoroughbred Breeders 
16Fund and shall be used for owner awards; a stallion program 
17pursuant to paragraph (3) of subsection (g) of Section 30 of 
18this Act; and Illinois conceived and foaled stakes races 
19pursuant to paragraph (2) of subsection (g) of Section 30 of 
20this Act, as specifically designated by the horsemen's 
21association representing the largest number of owners and 
22trainers who race at the organization licensee's race meetings. 
23 Annually, from the purse account of an organization 
24licensee conducting thoroughbred races at a racetrack in 
25Madison County, an amount equal to 1% of the gaming receipts 
26from gaming pursuant to an organization gaming license 
 
 
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1distributed to purses per subsection (b) of this Section 56 
2shall be paid as follows: 0.33 1/3% to Southern Illinois 
3University Department of Animal Sciences for equine research 
4and education, an amount equal to 0.33 1/3% of the gaming 
5receipts from gaming pursuant to an organization gaming license 
6shall be used to operate laundry facilities or a kitchen for 
7backstretch workers at that racetrack, and an amount equal to 
80.33 1/3% of the gaming receipts from gaming pursuant to an 
9organization gaming license shall be paid to R.A.C.E., Inc., a 
10501(c)(3) non-profit organization that cares for injured and 
11unwanted horses that race at that racetrack.
12 Annually, from the purse account of organization licensees 
13conducting thoroughbred races at racetracks in Cook County, 
14$100,000 shall be paid for division and equal distribution to 
15the animal sciences department of each Illinois public 
16university system engaged in equine research and education on 
17or before the effective date of this amendatory Act of the 
18100th General Assembly for equine research and education.
19 (d) Annually, from the purse account of an organization 
20licensee racing standardbred horses, an amount equal to 15% of 
21the gaming receipts from gaming pursuant to an organization 
22gaming license placed into that purse account shall be paid to 
23the Illinois Colt Stakes Purse Distribution Fund. Moneys 
24deposited into the Illinois Colt Stakes Purse Distribution Fund 
25shall be used for standardbred racing as authorized in 
26paragraphs 1, 2, 3, 8, 9, 10, and 11 of subsection (g) of 
 
 
10000SB0007ham003- 324 -LRB100 06307 SMS 40923 a


1Section 31 of this Act and for bonus awards as authorized under 
2paragraph 6 of subsection (j) of Section 31 of this Act.

3 Section 90-40. The Riverboat Gambling Act is amended by 
4changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11, 
511.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23, 
6and 24 and by adding Sections 5.3, 7.7, 7.8, 7.9, 7.10, 7.11, 
77.12, 7.13, and 25 as follows:




8 (230 ILCS 10/1) (from Ch. 120, par. 2401)



9 Sec. 1. Short title. This Act shall be known and may be 
10cited as the
Illinois Riverboat Gambling Act.

11(Source: P.A. 86-1029.)





12 (230 ILCS 10/2) (from Ch. 120, par. 2402)



13 Sec. 2. Legislative Intent. 

14 (a) This Act is intended to benefit the
people of the State 
15of Illinois
by assisting economic development, and promoting 
16Illinois tourism,
and by increasing the amount of revenues 
17available to the State to assist and
support education, and to 
18defray State expenses.

19 (b) While authorization of riverboat and casino gambling 
20will enhance investment,
beautification, development and 
21tourism in Illinois, it is recognized that it will do so

22successfully only if public confidence and trust in the 
23credibility and
integrity of the gambling operations and the 
 
 
10000SB0007ham003- 325 -LRB100 06307 SMS 40923 a


1regulatory process is
maintained. Therefore, regulatory 
2provisions of this Act are designed to
strictly regulate the 
3facilities, persons, associations and practices
related to 
4gambling operations pursuant to the police powers of the State,

5including comprehensive law enforcement supervision.

6 (c) The Illinois Gaming Board established under this Act 
7should, as soon
as possible, inform each applicant for an 
8owners license of the Board's
intent to grant or deny a 
9license.

10(Source: P.A. 93-28, eff. 6-20-03.)





11 (230 ILCS 10/3) (from Ch. 120, par. 2403)



12 Sec. 3. Riverboat Gambling Authorized. 

13 (a) Riverboat and casino gambling
operations and gaming 
14operations pursuant to an organization gaming license and the 
15system of wagering
incorporated therein, as defined in this 
16Act, are hereby authorized to the
extent that they are carried 
17out in accordance with the provisions of this
Act.

18 (b) This Act does not apply to the pari-mutuel system of 
19wagering used
or intended to be used in connection with the 
20horse-race meetings as
authorized under the Illinois Horse 
21Racing Act of 1975, lottery games
authorized under the Illinois 
22Lottery Law, bingo authorized under the Bingo
License and Tax 
23Act, charitable games authorized under the Charitable Games
Act 
24or pull tabs and jar games conducted under the Illinois Pull 
25Tabs and Jar
Games Act. This Act applies to gaming by an 
 
 
10000SB0007ham003- 326 -LRB100 06307 SMS 40923 a


1organization gaming licensee authorized under the Illinois 
2Horse Racing Act of 1975 to the extent provided in that Act and 
3in this Act. 

4 (c) Riverboat gambling conducted pursuant to this Act may 
5be authorized
upon any water within the State of Illinois or 
6any
water other than Lake Michigan which constitutes a boundary 
7of the State
of Illinois.
Notwithstanding any provision in this 
8subsection (c) to the contrary, a
licensee that receives its 
9license pursuant to subsection (e-5) of Section 7
may
conduct 
10riverboat gambling on Lake Michigan from a home dock located on 
11Lake
Michigan subject to any limitations contained in Section 
127. Notwithstanding any provision in this subsection (c) to the 
13contrary, a licensee may conduct gambling at its home dock 
14facility as provided in Sections 7 and 11. A licensee may 
15conduct riverboat gambling authorized under this Act

16regardless of whether it conducts excursion cruises. A licensee 
17may permit
the continuous ingress and egress of passengers for 
18the purpose of
gambling.

19 (d) Gambling that is conducted in accordance with this Act 
20using slot machines and video games of chance and other 
21electronic gambling games as defined in both this Act and the 
22Illinois Horse Racing Act of 1975 is authorized. 
23(Source: P.A. 91-40, eff. 6-25-99.)





24 (230 ILCS 10/4) (from Ch. 120, par. 2404)



25 Sec. 4. Definitions. As used in this Act:

 
 
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1 (a) "Board" means the Illinois Gaming Board.

2 (b) "Occupational license" means a license issued by the 
3Board to a
person or entity to perform an occupation which the 
4Board has identified as
requiring a license to engage in 
5riverboat gambling, casino gambling, or gaming pursuant to an 
6organization gaming license issued under this Act in Illinois.

7 (c) "Gambling game" includes, but is not limited to, 
8baccarat,
twenty-one, poker, craps, slot machine, video game of 
9chance, roulette
wheel, klondike table, punchboard, faro 
10layout, keno layout, numbers
ticket, push card, jar ticket, or 
11pull tab which is authorized by the Board
as a wagering device 
12under this Act.

13 (d) "Riverboat" means a self-propelled excursion boat, a

14permanently moored barge, or permanently moored barges that are 
15permanently
fixed together to operate as one vessel, on which 
16lawful gambling is
authorized and licensed as
provided in this 
17Act.

18 "Slot machine" means any mechanical, electrical, or other 
19device, contrivance, or machine that is authorized by the Board 
20as a wagering device under this Act which, upon insertion of a 
21coin, currency, token, or similar object therein, or upon 
22payment of any consideration whatsoever, is available to play 
23or operate, the play or operation of which may deliver or 
24entitle the person playing or operating the machine to receive 
25cash, premiums, merchandise, tokens, or anything of value 
26whatsoever, whether the payoff is made automatically from the 
 
 
10000SB0007ham003- 328 -LRB100 06307 SMS 40923 a


1machine or in any other manner whatsoever. A slot machine:
2  (1) may utilize spinning reels or video displays or 
3 both;
4  (2) may or may not dispense coins, tickets, or tokens 
5 to winning patrons;
6  (3) may use an electronic credit system for receiving 
7 wagers and making payouts; and
8  (4) may simulate a table game. 
9 "Slot machine" does not include table games authorized by 
10the Board as a wagering device under this Act. 
11 (e) "Managers license" means a license issued by the Board 
12to a person or
entity
to manage gambling operations conducted 
13by the State pursuant to Section 7.3.

14 (f) "Dock" means the location where a riverboat moors for 
15the purpose of
embarking passengers for and disembarking 
16passengers from the riverboat.

17 (g) "Gross receipts" means the total amount of money 
18exchanged for the
purchase of chips, tokens, or electronic 
19cards by riverboat patrons.

20 (h) "Adjusted gross receipts" means the gross receipts less

21winnings paid to wagerers.

22 (i) "Cheat" means to alter the selection of criteria which 
23determine the
result of a gambling game or the amount or 
24frequency of payment in a gambling
game.

25 (j) (Blank).

26 (k) "Gambling operation" means the conduct of authorized 
 
 
10000SB0007ham003- 329 -LRB100 06307 SMS 40923 a


1gambling games authorized under this Act
upon a riverboat or in 
2a casino or authorized under this Act and the Illinois Horse 
3Racing Act of 1975 at an organization gaming facility.

4 (l) "License bid" means the lump sum amount of money that 
5an applicant
bids and agrees to pay the State in return for an 
6owners license that is issued or
re-issued on or after July 1, 
72003.

8 "Table game" means a live gaming apparatus upon which 
9gaming is conducted or that determines an outcome that is the 
10object of a wager, including, but not limited to, baccarat, 
11twenty-one, blackjack, poker, craps, roulette wheel, klondike 
12table, punchboard, faro layout, keno layout, numbers ticket, 
13push card, jar ticket, pull tab, or other similar games that 
14are authorized by the Board as a wagering device under this 
15Act. "Table game" does not include slot machines or video games 
16of chance.
17 (m) The terms "minority person", "woman", and "person with 
18a disability" shall have the same meaning
as
defined in
Section 
192 of the Business Enterprise for Minorities, Women, and Persons 
20with
Disabilities Act.

21 "Authority" means the Chicago Casino Development 
22Authority. 
23 "Casino" means a facility at which lawful gambling is 
24authorized as provided in this Act. 
25 "Owners license" means a license to conduct riverboat or 
26casino gambling operations, but does not include an 
 
 
10000SB0007ham003- 330 -LRB100 06307 SMS 40923 a


1organization gaming license.
2 "Licensed owner" means a person who holds an owners 
3license.
4 "Organization gaming facility" means that portion of an

5organization licensee's racetrack facilities at which gaming 
6authorized under Section 7.7 is conducted.
7 "Organization gaming license" means a license issued by the

8Illinois Gaming Board under Section 7.7 of this Act authorizing 
9gaming pursuant to that Section at an organization gaming

10facility.
11 "Organization gaming licensee" means an entity that holds

12an organization gaming license.
13 "Organization licensee" means an entity authorized by the 
14Illinois Racing Board to conduct pari-mutuel wagering in 
15accordance with the Illinois Horse Racing Act of 1975. With 
16respect only to gaming pursuant to an organization gaming 
17license, "organization licensee" includes the authorization 
18for gaming created under subsection (a) of Section 56 of the 
19Illinois Horse Racing Act of 1975. 
20 "Casino operator license" means the license held by the 
21person or entity selected by the Authority to manage and 
22operate a riverboat or casino within the geographic area of the 
23authorized municipality pursuant to this Act and the Chicago 
24Casino Development Authority Act. 
25 "Wide area progressive system" means a method of linking 
26progressive slot machines or electronic gaming machines across 
 
 
10000SB0007ham003- 331 -LRB100 06307 SMS 40923 a


1telecommunication lines as part of a network connecting 
2participating facilities. Wide area progressive systems offer 
3a common progressive jackpot at all participating locations and 
4the award of the jackpot is at random.
5(Source: P.A. 100-391, eff. 8-25-17.)




6 (230 ILCS 10/5) (from Ch. 120, par. 2405)


7 Sec. 5. Gaming Board. 

8 (a) (1) There is hereby established the
Illinois Gaming 
9Board, which shall have the powers and duties specified in
this 
10Act and in the Chicago Casino Development Authority Act, and 
11all other powers necessary and proper to fully and
effectively 
12execute this Act for the purpose of administering, regulating,

13and enforcing the system of riverboat and casino gambling 
14established by this Act and by the Chicago Casino Development 
15Authority Act and gaming pursuant to an organization gaming 
16license issued under this Act. Its
jurisdiction shall extend 
17under this Act and the Chicago Casino Development Authority Act 
18to every person, association,
corporation, partnership and 
19trust involved in riverboat and casino gambling
operations and 
20gaming pursuant to an organization gaming license issued under 
21this Act in the State of Illinois.

22 (2) The Board shall consist of 5 members to be appointed by 
23the Governor
with the advice and consent of the Senate, one of 
24whom shall be designated
by the Governor to be chairperson 
25chairman. Each member shall have a reasonable
knowledge of the 
 
 
10000SB0007ham003- 332 -LRB100 06307 SMS 40923 a


1practice, procedure and principles of gambling operations.

2Each member shall either be a resident of Illinois or shall 
3certify that he or she
will become a resident of Illinois 
4before taking office.
5 On and after the effective date of this amendatory Act of 
6the 100th General Assembly, new appointees to the Board must 
7include the following:
8  (A) One member who has received, at a minimum, a 
9 bachelor's degree from an accredited school and at least 10 
10 years of verifiable training and experience in the fields 
11 of investigation and law enforcement.
12  (B) One member who is a certified public accountant 
13 with experience in auditing and with knowledge of complex 
14 corporate structures and transactions.
15  (C) One member who has 5 years' experience as a 
16 principal, senior officer, or director of a company or 
17 business with either material responsibility for the daily 
18 operations and management of the overall company or 
19 business or material responsibility for the policy making 
20 of the company or business.
21  (D) One member who is a lawyer licensed to practice law 
22 in Illinois.
23 Notwithstanding any provision of this subsection (a), the 
24requirements of subparagraphs (A) through (D) of this paragraph 
25(2) shall not apply to any person reappointed pursuant to 
26paragraph (3).
 
 
10000SB0007ham003- 333 -LRB100 06307 SMS 40923 a


1 No more than 3 members of the Board may be from the same 
2political party. The Board should reflect the ethnic, cultural, 
3and geographic diversity of the State. No Board member shall, 
4within a period of one year immediately preceding nomination, 
5have been employed or received compensation or fees for 
6services from a person or entity, or its parent or affiliate, 
7that has engaged in business with the Board, a licensee, or a 
8licensee under the Illinois Horse Racing Act of 1975. Board 
9members must publicly disclose all prior affiliations with 
10gaming interests, including any compensation, fees, bonuses, 
11salaries, and other reimbursement received from a person or 
12entity, or its parent or affiliate, that has engaged in 
13business with the Board, a licensee, or a licensee under the 
14Illinois Horse Racing Act of 1975. This disclosure must be made 
15within 30 days after nomination but prior to confirmation by 
16the Senate and must be made available to the members of the 
17Senate. At least one member
shall be experienced in law 
18enforcement and criminal investigation, at
least one member 
19shall be a certified public accountant experienced in

20accounting and auditing, and at least one member shall be a 
21lawyer licensed
to practice law in Illinois.

22 (3) The terms of office of the Board members shall be 3 
23years, except
that the terms of office of the initial Board 
24members appointed pursuant to
this Act will commence from the 
25effective date of this Act and run as
follows: one for a term 
26ending July 1, 1991, 2 for a term ending July 1,
1992, and 2 for 
 
 
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1a term ending July 1, 1993. Upon the expiration of the

2foregoing terms, the successors of such members shall serve a 
3term for 3
years and until their successors are appointed and 
4qualified for like terms.
Vacancies in the Board shall be 
5filled for the unexpired term in like
manner as original 
6appointments. Each member of the Board shall be
eligible for 
7reappointment at the discretion of the Governor with the
advice 
8and consent of the Senate.

9 (4) Each member of the Board shall receive $300 for each 
10day the
Board meets and for each day the member conducts any 
11hearing pursuant to
this Act. Each member of the Board shall 
12also be reimbursed for all actual
and necessary expenses and 
13disbursements incurred in the execution of official
duties.

14 (5) No person shall be appointed a member of the Board or 
15continue to be
a member of the Board who is, or whose spouse, 
16child or parent is, a member
of the board of directors of, or a 
17person financially interested in, any
gambling operation 
18subject to the jurisdiction of this Board, or any race
track, 
19race meeting, racing association or the operations thereof 
20subject
to the jurisdiction of the Illinois Racing Board. No 
21Board member shall
hold any other public office. No person 
22shall be a
member of the Board who is not of good moral 
23character or who has been
convicted of, or is under indictment 
24for, a felony under the laws of
Illinois or any other state, or 
25the United States.

26 (5.5) No member of the Board shall engage in any political 
 
 
10000SB0007ham003- 335 -LRB100 06307 SMS 40923 a


1activity. For the purposes of this Section, "political" means 
2any activity in support
of or in connection with any campaign 
3for federal, State, or local elective office or any political

4organization, but does not include activities (i) relating to 
5the support or
opposition of any executive, legislative, or 
6administrative action (as those
terms are defined in Section 2 
7of the Lobbyist Registration Act), (ii) relating
to collective 
8bargaining, or (iii) that are
otherwise
in furtherance of the 
9person's official
State duties or governmental and public 
10service functions.

11 (6) Any member of the Board may be removed by the Governor 
12for neglect
of duty, misfeasance, malfeasance, or nonfeasance 
13in office or for engaging in any political activity.

14 (7) Before entering upon the discharge of the duties of his 
15office, each
member of the Board shall take an oath that he 
16will faithfully execute the
duties of his office according to 
17the laws of the State and the rules and
regulations adopted 
18therewith and shall give bond to the State of Illinois,

19approved by the Governor, in the sum of $25,000. Every such 
20bond, when
duly executed and approved, shall be recorded in the 
21office of the
Secretary of State. Whenever the Governor 
22determines that the bond of any
member of the Board has become 
23or is likely to become invalid or
insufficient, he shall 
24require such member forthwith to renew his bond,
which is to be 
25approved by the Governor. Any member of the Board who fails
to 
26take oath and give bond within 30 days from the date of his 
 
 
10000SB0007ham003- 336 -LRB100 06307 SMS 40923 a


1appointment,
or who fails to renew his bond within 30 days 
2after it is demanded by the
Governor, shall be guilty of 
3neglect of duty and may be removed by the
Governor. The cost of 
4any bond given by any member of the Board under this
Section 
5shall be taken to be a part of the necessary expenses of the 
6Board.

7 (7.5) For the examination of all mechanical, 
8electromechanical, or electronic table games, slot machines, 
9slot accounting systems, and other electronic gaming equipment 
10for compliance with this Act, the Board may utilize the 
11services of one or more independent outside testing 
12laboratories that have been accredited by a national 
13accreditation body and that, in the judgment of the Board, are 
14qualified to perform such examinations. 
15 (8) The Board shall employ such
personnel as may be 
16necessary to carry out its functions and shall determine the 
17salaries of all personnel, except those personnel whose 
18salaries are determined under the terms of a collective 
19bargaining agreement. No
person shall be employed to serve the 
20Board who is, or whose spouse, parent
or child is, an official 
21of, or has a financial interest in or financial
relation with, 
22any operator engaged in gambling operations within this
State 
23or any organization engaged in conducting horse racing within 
24this
State. For the one year immediately preceding employment, 
25an employee shall not have been employed or received 
26compensation or fees for services from a person or entity, or 
 
 
10000SB0007ham003- 337 -LRB100 06307 SMS 40923 a


1its parent or affiliate, that has engaged in business with the 
2Board, a licensee, or a licensee under the Illinois Horse 
3Racing Act of 1975. Any employee violating these prohibitions 
4shall be subject to
termination of employment. In addition, all 
5Board members and employees are subject to the restrictions set 
6forth in Section 5-45 of the State Officials and Employees 
7Ethics Act.

8 (9) An Administrator shall perform any and all duties that 
9the Board
shall assign him. The salary of the Administrator 
10shall be determined by
the Board and, in addition,
he shall be 
11reimbursed for all actual and necessary expenses incurred by

12him in discharge of his official duties. The Administrator 
13shall keep
records of all proceedings of the Board and shall 
14preserve all records,
books, documents and other papers 
15belonging to the Board or entrusted to
its care. The 
16Administrator shall devote his full time to the duties of
the 
17office and shall not hold any other office or employment.

18 (b) The Board shall have general responsibility for the 
19implementation
of this Act. Its duties include, without 
20limitation, the following:


21  (1) To decide promptly and in reasonable order all 
22 license applications.
Any party aggrieved by an action of 
23 the Board denying, suspending,
revoking, restricting or 
24 refusing to renew a license may request a hearing
before 
25 the Board. A request for a hearing must be made to the 
26 Board in
writing within 5 days after service of notice of 
 
 
10000SB0007ham003- 338 -LRB100 06307 SMS 40923 a


1 the action of the Board.
Notice of the action of the Board 
2 shall be served either by personal
delivery or by certified 
3 mail, postage prepaid, to the aggrieved party.
Notice 
4 served by certified mail shall be deemed complete on the 
5 business
day following the date of such mailing. The Board 
6 shall conduct all
requested hearings promptly and in 
7 reasonable order;


8  (2) To conduct all hearings pertaining to civil 
9 violations of this Act
or rules and regulations promulgated 
10 hereunder;


11  (3) To promulgate such rules and regulations as in its 
12 judgment may be
necessary to protect or enhance the 
13 credibility and integrity of gambling
operations 
14 authorized by this Act and the regulatory process 
15 hereunder;


16  (4) To provide for the establishment and collection of 
17 all license and
registration fees and taxes imposed by this 
18 Act and the rules and
regulations issued pursuant hereto. 
19 All such fees and taxes shall be
deposited into the State 
20 Gaming Fund;


21  (5) To provide for the levy and collection of penalties 
22 and fines for the
violation of provisions of this Act and 
23 the rules and regulations
promulgated hereunder. All such 
24 fines and penalties shall be deposited
into the Education 
25 Assistance Fund, created by Public Act 86-0018, of the

26 State of Illinois;


 
 
10000SB0007ham003- 339 -LRB100 06307 SMS 40923 a


1  (6) To be present through its inspectors and agents any 
2 time gambling
operations are conducted on any riverboat, in 
3 any casino, or at any organization gaming
facility for the 
4 purpose of certifying the
revenue thereof, receiving 
5 complaints from the public, and conducting such
other 
6 investigations into the conduct of the gambling games and 
7 the
maintenance of the equipment as from time to time the 
8 Board may deem
necessary and proper;


9  (7) To review and rule upon any complaint by a licensee

10 regarding any investigative procedures of the State which 
11 are unnecessarily
disruptive of gambling operations. The 
12 need to inspect and investigate
shall be presumed at all 
13 times. The disruption of a licensee's operations
shall be 
14 proved by clear and convincing evidence, and establish 
15 that: (A)
the procedures had no reasonable law enforcement 
16 purposes, and (B) the
procedures were so disruptive as to 
17 unreasonably inhibit gambling operations;


18  (8) To hold at least one meeting each quarter of the 
19 fiscal
year. In addition, special meetings may be called by 
20 the Chairman or any 2
Board members upon 72 hours written 
21 notice to each member. All Board
meetings shall be subject 
22 to the Open Meetings Act. Three members of the
Board shall 
23 constitute a quorum, and 3 votes shall be required for any

24 final determination by the Board. The Board shall keep a 
25 complete and
accurate record of all its meetings. A 
26 majority of the members of the Board
shall constitute a 
 
 
10000SB0007ham003- 340 -LRB100 06307 SMS 40923 a


1 quorum for the transaction of any business, for the

2 performance of any duty, or for the exercise of any power 
3 which this Act
requires the Board members to transact, 
4 perform or exercise en banc, except
that, upon order of the 
5 Board, one of the Board members or an
administrative law 
6 judge designated by the Board may conduct any hearing

7 provided for under this Act or by Board rule and may 
8 recommend findings and
decisions to the Board. The Board 
9 member or administrative law judge
conducting such hearing 
10 shall have all powers and rights granted to the
Board in 
11 this Act. The record made at the time of the hearing shall 
12 be
reviewed by the Board, or a majority thereof, and the 
13 findings and decision
of the majority of the Board shall 
14 constitute the order of the Board in
such case;


15  (9) To maintain records which are separate and distinct 
16 from the records
of any other State board or commission. 
17 Such records shall be available
for public inspection and 
18 shall accurately reflect all Board proceedings;


19  (10) To file a written annual report with the Governor 
20 on or before
March 1 each year and such additional reports 
21 as the Governor may request.
The annual report shall 
22 include a statement of receipts and disbursements
by the 
23 Board, actions taken by the Board, and any additional 
24 information
and recommendations which the Board may deem 
25 valuable or which the Governor
may request;


26  (11) (Blank);


 
 
10000SB0007ham003- 341 -LRB100 06307 SMS 40923 a


1  (12) (Blank);


2  (13) To assume responsibility for administration and 
3 enforcement of the
Video Gaming Act; and
4  (13.1) To assume responsibility for the administration 
5 and enforcement
of operations at organization gaming 
6 facilities pursuant to this Act and the
Illinois Horse 
7 Racing Act of 1975; 
8  (13.2) To assume responsibility for the administration 
9 and enforcement of gambling operations at the Chicago 
10 Casino Development Authority's casino pursuant to this Act 
11 and the Chicago Casino Development Authority Act; and
12  (14) To adopt, by rule, a code of conduct governing 
13 Board members and employees that ensure, to the maximum 
14 extent possible, that persons subject to this Code avoid 
15 situations, relationships, or associations that may 
16 represent or lead to a conflict of interest.

17 Internal controls and changes submitted by licensees must 
18be reviewed and either approved or denied with cause within 90 
19days after receipt of submission is deemed final by the 
20Illinois Gaming Board. In the event an internal control 
21submission or change does not meet the standards set by the 
22Board, staff of the Board must provide technical assistance to 
23the licensee to rectify such deficiencies within 90 days after 
24the initial submission and the revised submission must be 
25reviewed and approved or denied with cause within 90 days after 
26the date the revised submission is deemed final by the Board. 
 
 
10000SB0007ham003- 342 -LRB100 06307 SMS 40923 a


1For the purposes of this paragraph, "with cause" means that the 
2approval of the submission would jeopardize the integrity of 
3gaming. In the event the Board staff has not acted within the 
4timeframe, the submission shall be deemed approved.
5 (c) The Board shall have jurisdiction over and shall 
6supervise all
gambling operations governed by this Act and the 
7Chicago Casino Development Authority Act. The Board shall have 
8all powers
necessary and proper to fully and effectively 
9execute the provisions of
this Act and the Chicago Casino 
10Development Authority Act, including, but not limited to, the 
11following:


12  (1) To investigate applicants and determine the 
13 eligibility of
applicants for licenses and to select among 
14 competing applicants the
applicants which best serve the 
15 interests of the citizens of Illinois.


16  (2) To have jurisdiction and supervision over all 
17 riverboat gambling
operations authorized under this Act 
18 and the Chicago Casino Development Authority Act in this 
19 State and all persons in places on riverboats where 
20 gambling
operations are conducted.


21  (3) To promulgate rules and regulations for the purpose 
22 of administering
the provisions of this Act and the Chicago 
23 Casino Development Authority Act and to prescribe rules, 
24 regulations and
conditions under which all riverboat 
25 gambling operations subject to this
Act and the Chicago 
26 Casino Development Authority Act in the State shall be

 
 
10000SB0007ham003- 343 -LRB100 06307 SMS 40923 a


1 conducted. Such rules and regulations are to provide for 
2 the prevention of
practices detrimental to the public 
3 interest and for the best interests of
riverboat gambling, 
4 including rules and regulations regarding the
inspection 
5 of organization gaming facilities, casinos, and such 
6 riverboats, and the review of any permits or licenses

7 necessary to operate a riverboat, casino, or organization 
8 gaming facility under any laws or regulations applicable
to 
9 riverboats, casinos, or organization gaming facilities and 
10 to impose penalties for violations thereof.


11  (4) To enter the office, riverboats, casinos, 
12 organization gaming facilities, and
other facilities, or 
13 other
places of business of a licensee, where evidence of 
14 the compliance or
noncompliance with the provisions of this 
15 Act and the Chicago Casino Development Authority Act is 
16 likely to be found.


17  (5) To investigate alleged violations of this Act, the 
18 Chicago Casino Development Authority Act, or the
rules of 
19 the Board and to take appropriate disciplinary
action 
20 against a licensee or a holder of an occupational license 
21 for a
violation, or institute appropriate legal action for 
22 enforcement, or both.


23  (6) To adopt standards for the licensing of all persons 
24 and entities under this Act and the Chicago Casino 
25 Development Authority Act,
as well as for electronic or 
26 mechanical gambling games, and to establish
fees for such 
 
 
10000SB0007ham003- 344 -LRB100 06307 SMS 40923 a


1 licenses.


2  (7) To adopt appropriate standards for all 
3 organization gaming facilities, riverboats, casinos,
and 
4 other facilities authorized under this Act and the Chicago 
5 Casino Development Authority Act.


6  (8) To require that the records, including financial or 
7 other statements
of any licensee under this Act and the 
8 Chicago Casino Development Authority Act, shall be kept in 
9 such manner as prescribed
by the Board and that any such 
10 licensee involved in the ownership or
management of 
11 gambling operations submit to the Board an annual balance

12 sheet and profit and loss statement, list of the 
13 stockholders or other
persons having a 1% or greater 
14 beneficial interest in the gambling
activities of each 
15 licensee, and any other information the Board deems

16 necessary in order to effectively administer this Act and 
17 the Chicago Casino Development Authority Act and all rules,

18 regulations, orders and final decisions promulgated under 
19 this Act and the Chicago Casino Development Authority Act.


20  (9) To conduct hearings, issue subpoenas for the 
21 attendance of
witnesses and subpoenas duces tecum for the 
22 production of books, records
and other pertinent documents 
23 in accordance with the Illinois
Administrative Procedure 
24 Act, and to administer oaths and affirmations to
the 
25 witnesses, when, in the judgment of the Board, it is 
26 necessary to
administer or enforce this Act, the Chicago 
 
 
10000SB0007ham003- 345 -LRB100 06307 SMS 40923 a


1 Casino Development Authority Act, or the Board rules.


2  (10) To prescribe a form to be used by any licensee 
3 involved in the
ownership or management of gambling 
4 operations as an
application for employment for their 
5 employees.


6  (11) To revoke or suspend licenses, other than the 
7 license issued to the Chicago Casino Development 
8 Authority, as the Board may see fit and in
compliance with 
9 applicable laws of the State regarding administrative

10 procedures, and to review applications for the renewal of 
11 licenses. The
Board may suspend an owners license (other 
12 than the license issued to the Chicago Casino Development 
13 Authority), organization gaming license, or casino 
14 operator license, without notice or hearing upon a

15 determination that the safety or health of patrons or 
16 employees is
jeopardized by continuing a gambling 
17 operation conducted under that license riverboat's 
18 operation. The suspension may
remain in effect until the 
19 Board determines that the cause for suspension
has been 
20 abated. The Board may revoke an the owners license (other 
21 than the license issued to the Chicago Casino Development 
22 Authority), organization
gaming
license, or casino 
23 operator license upon a
determination that the licensee 
24 owner has not made satisfactory progress toward
abating the 
25 hazard.


26  (12) To eject or exclude or authorize the ejection or 
 
 
10000SB0007ham003- 346 -LRB100 06307 SMS 40923 a


1 exclusion of, any
person from riverboat gambling 
2 facilities where that such person is in violation
of this 
3 Act or the Chicago Casino Development Authority Act, rules 
4 and regulations thereunder, or final orders of the
Board, 
5 or where such person's conduct or reputation is such that 
6 his or her
presence within the riverboat gambling 
7 facilities may, in the opinion of
the Board, call into 
8 question the honesty and integrity of the gambling

9 operations or interfere with the orderly conduct thereof; 
10 provided that the
propriety of such ejection or exclusion 
11 is subject to subsequent hearing
by the Board.


12  (13) To require all licensees of gambling operations to 
13 utilize a
cashless wagering system whereby all players' 
14 money is converted to tokens,
electronic cards, or chips 
15 which shall be used only for wagering in the
gambling 
16 establishment.


17  (14) (Blank).


18  (15) To suspend, revoke or restrict licenses, other 
19 than the license issued to the Chicago Casino Development 
20 Authority, to require the
removal of a licensee or an 
21 employee of a licensee for a violation of this
Act, the 
22 Chicago Casino Development Authority Act, or a Board rule 
23 or for engaging in a fraudulent practice, and to
impose 
24 civil penalties of up to $5,000 against individuals and up 
25 to
$10,000 or an amount equal to the daily gross receipts, 
26 whichever is
larger, against licensees for each violation 
 
 
10000SB0007ham003- 347 -LRB100 06307 SMS 40923 a


1 of any provision of the Act, the Chicago Casino Development 
2 Authority Act,
any rules adopted by the Board, any order of 
3 the Board or any other action
which, in the Board's 
4 discretion, is a detriment or impediment to riverboat

5 gambling operations.


6  (16) To hire employees to gather information, conduct 
7 investigations
and carry out any other tasks contemplated 
8 under this Act or the Chicago Casino Development Authority 
9 Act.


10  (17) To establish minimum levels of insurance to be 
11 maintained by
licensees.


12  (18) To authorize a licensee to sell or serve alcoholic 
13 liquors, wine or
beer as defined in the Liquor Control Act 
14 of 1934 on board a riverboat or in a casino
and to have 
15 exclusive authority to establish the hours for sale and

16 consumption of alcoholic liquor on board a riverboat or in 
17 a casino, notwithstanding any
provision of the Liquor 
18 Control Act of 1934 or any local ordinance, and
regardless 
19 of whether the riverboat makes excursions. The

20 establishment of the hours for sale and consumption of 
21 alcoholic liquor on
board a riverboat or in a casino is an 
22 exclusive power and function of the State. A home
rule unit 
23 may not establish the hours for sale and consumption of 
24 alcoholic
liquor on board a riverboat or in a casino. This 
25 subdivision (18) amendatory Act of 1991 is a denial and

26 limitation of home rule powers and functions under 
 
 
10000SB0007ham003- 348 -LRB100 06307 SMS 40923 a


1 subsection (h) of
Section 6 of Article VII of the Illinois 
2 Constitution.


3  (19) After consultation with the U.S. Army Corps of 
4 Engineers, to
establish binding emergency orders upon the 
5 concurrence of a majority of
the members of the Board 
6 regarding the navigability of water, relative to

7 excursions,
in the event
of extreme weather conditions, 
8 acts of God or other extreme circumstances.


9  (20) To delegate the execution of any of its powers 
10 under this Act or the Chicago Casino Development Authority 
11 Act for
the purpose of administering and enforcing this 
12 Act, the Chicago Casino Development Authority Act, and the 
13 its rules adopted by the Board under both Acts and

14 regulations hereunder.

15  (20.5) To approve any contract entered into on its 
16 behalf.

17  (20.6) To appoint investigators to conduct 
18 investigations, searches, seizures, arrests, and other 
19 duties imposed under this Act, as deemed necessary by the 
20 Board. These investigators have and may exercise all of the 
21 rights and powers of peace officers, provided that these 
22 powers shall be limited to offenses or violations occurring 
23 or committed in a casino, in an organization gaming 
24 facility, or on a riverboat or dock, as defined in 
25 subsections (d) and (f) of Section 4, or as otherwise 
26 provided by this Act, the Chicago Casino Development 
 
 
10000SB0007ham003- 349 -LRB100 06307 SMS 40923 a


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

20  (21) To adopt rules concerning the conduct of gaming 
21 pursuant to an organization gaming license issued under 
22 this Act. 
23  (22) To have the same jurisdiction and supervision over 
24 casinos and organization gaming facilities as the Board has 
25 over riverboats, including, but not limited to, the power 
26 to (i) investigate, review, and approve contracts as that 
 
 
10000SB0007ham003- 350 -LRB100 06307 SMS 40923 a


1 power is applied to riverboats, (ii) adopt rules for 
2 administering the provisions of this Act or the Chicago 
3 Casino Development Authority Act, (iii) adopt standards 
4 for the licensing of all persons involved with a casino or 
5 organization gaming facility, (iv) investigate alleged 
6 violations of this Act by any person involved with a casino 
7 or organization gaming facility, and (v) require that 
8 records, including financial or other statements of any 
9 casino or organization gaming facility, shall be kept in 
10 such manner as prescribed by the Board. 
11  (23) To supervise and regulate the Chicago Casino 
12 Development Authority in accordance with the Chicago 
13 Casino Development Authority Act and the provisions of this 
14 Act. 

15  (24) (21) To take any other action as may be reasonable 
16 or appropriate to
enforce this Act, the Chicago Casino 
17 Development Authority Act, and the rules adopted by the 
18 Board under both Acts and regulations hereunder.

19 All Board powers enumerated in this Section in relation to 
20licensees shall apply equally to the holder of any casino 
21management contract entered into pursuant to the Chicago Casino 
22Development Authority Act. 
23 (d) The Board may seek and shall receive the cooperation of 
24the
Department of State Police in conducting background 
25investigations of
applicants and in fulfilling its 
26responsibilities under
this Section. Costs incurred by the 
 
 
10000SB0007ham003- 351 -LRB100 06307 SMS 40923 a


1Department of State Police as
a result of such cooperation 
2shall be paid by the Board in conformance
with the requirements 
3of Section 2605-400 of the Department of State Police Law
(20 
4ILCS 2605/2605-400).

5 (e) The Board must authorize to each investigator and to 
6any other
employee of the Board exercising the powers of a 
7peace officer a distinct badge
that, on its face, (i) clearly 
8states that the badge is authorized by the Board
and
(ii) 
9contains a unique identifying number. No other badge shall be 
10authorized
by the Board.

11(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)





12 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)


13 Sec. 5.1. Disclosure of records. 

14 (a) Notwithstanding any applicable statutory provision to 
15the contrary,
the Board shall, on written request from any 
16person, provide
information furnished by an applicant or 
17licensee concerning the applicant
or licensee, his products, 
18services or gambling enterprises and his
business holdings, as 
19follows:


20  (1) The name, business address and business telephone 
21 number of any
applicant or licensee.


22  (2) An identification of any applicant or licensee 
23 including, if an
applicant or licensee is not an 
24 individual, the names and addresses of all stockholders and 
25 directors, if the entity is a corporation; the names and 
 
 
10000SB0007ham003- 352 -LRB100 06307 SMS 40923 a


1 addresses of all members, if the entity is a limited 
2 liability company; the names and addresses of all partners, 
3 both general and limited, if the entity is a partnership; 
4 and the names and addresses of all beneficiaries, if the 
5 entity is a trust the state of incorporation or

6 registration, the corporate officers, and the identity of 
7 all shareholders
or participants. If an applicant or 
8 licensee has a pending registration
statement filed with 
9 the Securities and Exchange Commission, only the names
of 
10 those persons or entities holding interest of 5% or more 
11 must be provided.


12  (3) An identification of any business, including, if 
13 applicable, the
state of incorporation or registration, in 
14 which an applicant or licensee
or an applicant's or 
15 licensee's spouse or children has an equity interest
of 
16 more than 1%. If an applicant or licensee is a corporation, 
17 partnership
or other business entity, the applicant or 
18 licensee shall identify any
other corporation, partnership 
19 or business entity in which it has an equity
interest of 1%

20 or more, including, if applicable, the state of

21 incorporation or registration. This information need not 
22 be provided by a
corporation, partnership or other business 
23 entity that has a pending
registration statement filed with 
24 the Securities and Exchange Commission.


25  (4) Whether an applicant or licensee has been indicted, 
26 convicted,
pleaded guilty or nolo contendere, or forfeited 
 
 
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1 bail concerning any
criminal offense under the laws of any 
2 jurisdiction, either felony or
misdemeanor (except for 
3 traffic violations), including the date, the name
and 
4 location of the court, arresting agency and prosecuting 
5 agency, the
case number, the offense, the disposition and 
6 the location and length of
incarceration.


7  (5) Whether an applicant or licensee has had any 
8 license or
certificate issued by a licensing authority in 
9 Illinois or any other
jurisdiction denied, restricted, 
10 suspended, revoked or not renewed and a
statement 
11 describing the facts and circumstances concerning the 
12 denial,
restriction, suspension, revocation or 
13 non-renewal, including the licensing
authority, the date 
14 each such action was taken, and the reason for each
such 
15 action.


16  (6) Whether an applicant or licensee has ever filed or 
17 had filed against
it a proceeding in bankruptcy or has ever 
18 been involved in any formal
process to adjust, defer, 
19 suspend or otherwise work out the payment of any
debt 
20 including the date of filing, the name and location of the 
21 court, the
case and number of the disposition.


22  (7) Whether an applicant or licensee has filed, or been 
23 served with a
complaint or other notice filed with any 
24 public body, regarding the
delinquency in the payment of, 
25 or a dispute over the filings concerning the
payment of, 
26 any tax required under federal, State or local law, 
 
 
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1 including
the amount, type of tax, the taxing agency and 
2 time periods involved.


3  (8) A statement listing the names and titles of all 
4 public officials
or officers of any unit of government, and 
5 relatives of said
public officials or officers who, 
6 directly or indirectly, own
any financial interest in, have 
7 any beneficial interest in, are the
creditors of or hold 
8 any debt instrument issued by, or hold or have any
interest 
9 in any contractual or service relationship with, an 
10 applicant
or licensee.


11  (9) Whether an applicant or licensee has made, directly 
12 or indirectly,
any political contribution, or any loans, 
13 donations or other payments, to
any candidate or office 
14 holder, within 5 years from the date of filing the

15 application, including the amount and the method of 
16 payment.


17  (10) The name and business telephone number of the 
18 counsel
representing an applicant or licensee in matters 
19 before the Board.


20  (11) A description of any proposed or approved gambling 
21 riverboat
gaming operation, including the type of boat, 
22 home dock, or casino or gaming location, expected
economic 
23 benefit to the community, anticipated or actual number of

24 employees, any statement from an applicant or licensee 
25 regarding compliance
with federal and State affirmative 
26 action guidelines, projected or actual
admissions and 
 
 
10000SB0007ham003- 355 -LRB100 06307 SMS 40923 a


1 projected or actual adjusted gross gaming receipts.


2  (12) A description of the product or service to be 
3 supplied by an
applicant for a supplier's license.

4 (b) Notwithstanding any applicable statutory provision to 
5the contrary,
the Board shall, on written request from any 
6person, also provide
the following information:


7  (1) The amount of the wagering tax and admission tax 
8 paid daily to the
State of Illinois by the holder of an 
9 owner's license.


10  (2) Whenever the Board finds an applicant for an 
11 owner's license
unsuitable for licensing, a copy of the 
12 written letter outlining the
reasons for the denial.


13  (3) Whenever the Board has refused to grant leave for 
14 an applicant to
withdraw his application, a copy of the 
15 letter outlining the reasons for
the refusal.

16 (c) Subject to the above provisions, the Board shall not 
17disclose any
information which would be barred by:


18  (1) Section 7 of the Freedom of Information Act; or


19  (2) The statutes, rules, regulations or 
20 intergovernmental agreements
of any jurisdiction.

21 (d) The Board may assess fees for the copying of 
22information in
accordance with Section 6 of the Freedom of 
23Information Act.

24(Source: P.A. 96-1392, eff. 1-1-11.)



25 (230 ILCS 10/5.3 new)
 
 
10000SB0007ham003- 356 -LRB100 06307 SMS 40923 a


1 Sec. 5.3. Ethical conduct.
2 (a) Officials and employees of the corporate authority of a 
3host community must carry out their duties and responsibilities 
4in such a manner as to promote and preserve public trust and 
5confidence in the integrity and conduct of gaming.
6 (b) Officials and employees of the corporate authority of a 
7host community shall not use or attempt to use his or her 
8official position to secure or attempt to secure any privilege, 
9advantage, favor, or influence for himself or herself or 
10others.
11 (c) Officials and employees of the corporate authority of a 
12host community may not have a financial interest, directly or 
13indirectly, in his or her own name or in the name of any other 
14person, partnership, association, trust, corporation, or other 
15entity in any contract or subcontract for the performance of 
16any work for a riverboat or casino that is located in the host 
17community. This prohibition shall extend to the holding or 
18acquisition of an interest in any entity identified by Board 
19action that, in the Board's judgment, could represent the 
20potential for or the appearance of a financial interest. The 
21holding or acquisition of an interest in such entities through 
22an indirect means, such as through a mutual fund, shall not be 
23prohibited, except that the Board may identify specific 
24investments or funds that, in its judgment, are so influenced 
25by gaming holdings as to represent the potential for or the 
26appearance of a conflict of interest.
 
 
10000SB0007ham003- 357 -LRB100 06307 SMS 40923 a


1 (d) Officials and employees of the corporate authority of a 
2host community may not accept any gift, gratuity, service, 
3compensation, travel, lodging, or thing of value, with the 
4exception of unsolicited items of an incidental nature, from 
5any person, corporation, or entity doing business with the 
6riverboat or casino that is located in the host community.
7 (e) Officials and employees of the corporate authority of a 
8host community shall not, during the period that the person is 
9an official or employee of the corporate authority or for a 
10period of 2 years immediately after leaving such office, 
11knowingly accept employment or receive compensation or fees for 
12services from a person or entity, or its parent or affiliate, 
13that has engaged in business with the riverboat or casino that 
14is located in the host community that resulted in contracts 
15with an aggregate value of at least $25,000 or if that official 
16or employee has made a decision that directly applied to the 
17person or entity, or its parent or affiliate.
18 (f) A spouse, child, or parent of an official or employee 
19of the corporate authority of a host community may not have a 
20financial interest, directly or indirectly, in his or her own 
21name or in the name of any other person, partnership, 
22association, trust, corporation, or other entity in any 
23contract or subcontract for the performance of any work for a 
24riverboat or casino in the host community. This prohibition 
25shall extend to the holding or acquisition of an interest in 
26any entity identified by Board action that, in the judgment of 
 
 
10000SB0007ham003- 358 -LRB100 06307 SMS 40923 a


1the Board, could represent the potential for or the appearance 
2of a conflict of interest. The holding or acquisition of an 
3interest in such entities through an indirect means, such as 
4through a mutual fund, shall not be prohibited, expect that the 
5Board may identify specific investments or funds that, in its 
6judgment, are so influenced by gaming holdings as to represent 
7the potential for or the appearance of a conflict of interest.
8 (g) A spouse, child, or parent of an official or employee 
9of the corporate authority of a host community may not accept 
10any gift, gratuity, service, compensation, travel, lodging, or 
11thing of value, with the exception of unsolicited items of an 
12incidental nature, from any person, corporation, or entity 
13doing business with the riverboat or casino that is located in 
14the host community.
15 (h) A spouse, child, or parent of an official or employee 
16of the corporate authority of a host community may not, during 
17the period that the person is an official of the corporate 
18authority or for a period of 2 years immediately after leaving 
19such office or employment, knowingly accept employment or 
20receive compensation or fees for services from a person or 
21entity, or its parent or affiliate, that has engaged in 
22business with the riverboat or casino that is located in the 
23host community that resulted in contracts with an aggregate 
24value of at least $25,000 or if that official or employee has 
25made a decision that directly applied to the person or entity, 
26or its parent or affiliate.
 
 
10000SB0007ham003- 359 -LRB100 06307 SMS 40923 a


1 (i) Officials and employees of the corporate authority of a 
2host community shall not attempt, in any way, to influence any 
3person or entity doing business with the riverboat or casino 
4that is located in the host community or any officer, agent, or 
5employee thereof to hire or contract with any person or entity 
6for any compensated work.
7 (j) Any communication between an official of the corporate 
8authority of a host community and any applicant for an owners 
9license in the host community, or an officer, director, or 
10employee of a riverboat or casino in the host community, 
11concerning any matter relating in any way to gaming shall be 
12disclosed to the Board. Such disclosure shall be in writing by 
13the official within 30 days after the communication and shall 
14be filed with the Board. Disclosure must consist of the date of 
15the communication, the identity and job title of the person 
16with whom the communication was made, a brief summary of the 
17communication, the action requested or recommended, all 
18responses made, the identity and job title of the person making 
19the response, and any other pertinent information. Public 
20disclosure of the written summary provided to the Board and the 
21Gaming Board shall be subject to the exemptions provided under 
22the Freedom of Information Act.
23 This subsection (j) shall not apply to communications 
24regarding traffic, law enforcement, security, environmental 
25issues, city services, transportation, or other routine 
26matters concerning the ordinary operations of the riverboat or 
 
 
10000SB0007ham003- 360 -LRB100 06307 SMS 40923 a


1casino. For purposes of this subsection (j), "ordinary 
2operations" means operations relating to the casino or 
3riverboat facility other than the conduct of gambling 
4activities, and "routine matters" includes the application 
5for, issuance of, renewal of, and other processes associated 
6with municipal permits and licenses. 
7 (k) Any official or employee who violates any provision of 
8this Section is guilty of a Class 4 felony.
9 (l) For purposes of this Section, "host community" or "host 
10municipality" means a unit of local government that contains a 
11riverboat or casino within its borders, but does not include 
12the City of Chicago or the Chicago Casino Development 
13Authority. 




14 (230 ILCS 10/6) (from Ch. 120, par. 2406)



15 Sec. 6. Application for Owners License. 

16 (a) A qualified person may
apply to the Board for an owners 
17license to
conduct a riverboat gambling operation as provided 
18in this Act. The
application shall be made on forms provided by 
19the Board and shall contain
such information as the Board 
20prescribes, including but not limited to the
identity of the 
21riverboat on which such gambling operation is to be
conducted, 
22if applicable, and the exact location where such riverboat or 
23casino will be located docked, a
certification that the 
24riverboat will be registered under this Act at all
times during 
25which gambling operations are conducted on board, detailed

 
 
10000SB0007ham003- 361 -LRB100 06307 SMS 40923 a


1information regarding the ownership and management of the 
2applicant, and
detailed personal information regarding the 
3applicant. Any application for an
owners license to be 
4re-issued on or after June 1, 2003 shall also
include the 
5applicant's license bid in a form prescribed by the Board.

6Information
provided on the application shall be used as a 
7basis for a thorough
background investigation which the Board 
8shall conduct with respect to each
applicant. An incomplete 
9application shall be cause for denial of a license
by the 
10Board.

11 (a-5) In addition to any other information required under 
12this Section, each application for an owners license must 
13include the following information:
14  (1) The history and success of the applicant and each 
15 person and entity disclosed under subsection (c) of this 
16 Section in developing tourism facilities ancillary to 
17 gaming, if applicable.
18  (2) The likelihood that granting a license to the 
19 applicant will lead to the creation of quality, living wage 
20 jobs and permanent, full-time jobs for residents of the 
21 State and residents of the unit of local government that is 
22 designated as the home dock of the proposed facility where 
23 gambling is to be conducted by the applicant.
24  (3) The projected number of jobs that would be created 
25 if the license is granted and the projected number of new 
26 employees at the proposed facility where gambling is to be 
 
 
10000SB0007ham003- 362 -LRB100 06307 SMS 40923 a


1 conducted by the applicant.
2  (4) The record, if any, of the applicant and its 
3 developer in meeting commitments to local agencies, 
4 community-based organizations, and employees at other 
5 locations where the applicant or its developer has 
6 performed similar functions as they would perform if the 
7 applicant were granted a license.
8  (5) Identification of adverse effects that might be 
9 caused by the proposed facility where gambling is to be 
10 conducted by the applicant, including the costs of meeting 
11 increased demand for public health care, child care, public 
12 transportation, affordable housing, and social services, 
13 and a plan to mitigate those adverse effects.
14  (6) The record, if any, of the applicant and its 
15 developer regarding compliance with:
16   (A) federal, state, and local discrimination, wage 
17 and hour, disability, and occupational and 
18 environmental health and safety laws; and
19   (B) state and local labor relations and employment 
20 laws.
21  (7) The applicant's record, if any, in dealing with its 
22 employees and their representatives at other locations.
23  (8) A plan concerning the utilization of 
24 minority-owned and female-owned businesses and concerning 
25 the hiring of minorities and females. 
26  (9) Evidence the applicant used its best efforts to 
 
 
10000SB0007ham003- 363 -LRB100 06307 SMS 40923 a


1 reach a goal of 25% ownership representation by minority 
2 persons and 5% ownership representation by females. 
3 (b) Applicants shall submit with their application all 
4documents,
resolutions, and letters of support from the 
5governing body that represents
the municipality or county 
6wherein the licensee will be located dock.

7 (c) Each applicant shall disclose the identity of every 
8person or entity ,
association, trust or corporation having a 
9greater than 1% direct or
indirect pecuniary interest in the 
10riverboat gambling operation with
respect to which the license 
11is sought. If the disclosed entity is a
trust, the application 
12shall disclose the names and addresses of all the

13beneficiaries; if a corporation, the names and
addresses of all 
14stockholders and directors; if a partnership, the names
and 
15addresses of all partners, both general and limited.

16 (d) An application shall be filed and considered in 
17accordance with the rules of the Board. Each application shall 
18be accompanied by a non-refundable An
application fee of 
19$100,000. In addition, a non-refundable fee of $50,000 shall be 
20paid at the time of filing
to defray the costs associated with 
21the
background investigation conducted by the Board. If the 
22costs of the
investigation exceed $50,000, the applicant shall 
23pay the additional amount
to the Board within 7 days after 
24requested by the Board. If the costs of the investigation are 
25less than $50,000, the
applicant shall receive a refund of the 
26remaining amount. All
information, records, interviews, 
 
 
10000SB0007ham003- 364 -LRB100 06307 SMS 40923 a


1reports, statements, memoranda or other
data supplied to or 
2used by the Board in the course of its review or
investigation 
3of an application for a license or a renewal under this Act 
4shall be
privileged, strictly confidential and shall be used 
5only for the purpose of
evaluating an applicant for a license 
6or a renewal. Such information, records, interviews, reports,

7statements, memoranda or other data shall not be admissible as 
8evidence,
nor discoverable in any action of any kind in any 
9court or before any
tribunal, board, agency or person, except 
10for any action deemed necessary
by the Board. The application 
11fee shall be deposited into the Gaming Facilities Fee Revenue 
12Fund.

13 (e) The Board shall charge each applicant a fee set by the 
14Department of
State Police to defray the costs associated with 
15the search and
classification of fingerprints obtained by the 
16Board with respect to the
applicant's application. These fees 
17shall be paid into the State Police
Services Fund. In order to 
18expedite the application process, the Board may establish rules 
19allowing applicants to acquire criminal background checks and 
20financial integrity reviews as part of the initial application 
21process from a list of vendors approved by the Board. 

22 (f) The licensed owner shall be the person primarily 
23responsible for the
boat or casino itself. Only one riverboat 
24gambling operation may be authorized
by the Board on any 
25riverboat or in any casino. The applicant must identify the 
26each riverboat or premises
it intends to use and certify that 
 
 
10000SB0007ham003- 365 -LRB100 06307 SMS 40923 a


1the riverboat or premises: (1) has the authorized
capacity 
2required in this Act; (2) is accessible to persons with 
3disabilities; and
(3) is fully registered and licensed in 
4accordance
with any applicable laws.

5 (g) A person who knowingly makes a false statement on an 
6application is
guilty of a Class A misdemeanor.

7(Source: P.A. 99-143, eff. 7-27-15.)






8 (230 ILCS 10/7) (from Ch. 120, par. 2407)


9 Sec. 7. Owners licenses. 

10 (a) The Board shall issue owners licenses to persons or 
11entities , firms or
corporations which apply for such licenses 
12upon payment to the Board of the
non-refundable license fee as 
13provided in subsection (e) or (e-5) set by the Board, upon 
14payment of a $25,000
license fee for the first year of 
15operation and a $5,000 license fee for
each succeeding year and 
16upon a determination by the Board that the
applicant is 
17eligible for an owners license pursuant to this Act, the 
18Chicago Casino Development Authority Act, and the
rules of the 
19Board. From the effective date of this amendatory Act of the 
2095th General Assembly until (i) 3 years after the effective 
21date of this amendatory Act of the 95th General Assembly, (ii) 
22the date any organization licensee begins to operate a slot 
23machine or video game of chance under the Illinois Horse Racing 
24Act of 1975 or this Act, (iii) the date that payments begin 
25under subsection (c-5) of Section 13 of the Act, or (iv) the 
 
 
10000SB0007ham003- 366 -LRB100 06307 SMS 40923 a


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

23  (1) the person has been convicted of a felony under the 
24 laws of this
State, any other state, or the United States;

25  (2) the person has been convicted of any violation of 
26 Article 28 of the
Criminal Code of 1961 or the Criminal 
 
 
10000SB0007ham003- 367 -LRB100 06307 SMS 40923 a


1 Code of 2012, or substantially similar laws of any other 
2 jurisdiction;

3  (3) the person has submitted an application for a 
4 license under this
Act or the Chicago Casino Development 
5 Authority Act which contains false information;

6  (4) the person is
a member of the Board;

7  (5) a person defined in (1), (2), (3) or (4) is an 
8 officer, director or
managerial employee of the entity firm 
9 or corporation;

10  (6) the entity firm or corporation employs a person 
11 defined in (1), (2), (3) or
(4) who participates in the 
12 management or operation of gambling operations
authorized 
13 under this Act or the Chicago Casino Development Authority 
14 Act;

15  (7) (blank); or

16  (8) a license of the person or entity , firm or 
17 corporation issued under
this Act or the Chicago Casino 
18 Development Authority Act, or a license to own or operate 
19 gambling facilities
in any other jurisdiction, has been 
20 revoked.

21 The Board is expressly prohibited from making changes to 
22the requirement that licensees make payment into the Horse 
23Racing Equity Trust Fund without the express authority of the 
24Illinois General Assembly and making any other rule to 
25implement or interpret this amendatory Act of the 95th General 
26Assembly. For the purposes of this paragraph, "rules" is given 
 
 
10000SB0007ham003- 368 -LRB100 06307 SMS 40923 a


1the meaning given to that term in Section 1-70 of the Illinois 
2Administrative Procedure Act.
3 (a-1) Upon approval of the members of the Chicago Casino 
4Development Board, the Chicago Casino Development Authority's 
5executive director, and the Chicago casino operator licensee, 
6the Board shall issue an owners license to the Chicago Casino 
7Development Authority that authorizes the conduct of gambling 
8operations in a casino or in an airport located in the City of 
9Chicago.
10 (b) In determining whether to grant an owners license to an 
11applicant other than the Chicago Casino Development Authority, 
12the
Board shall consider:

13  (1) the character, reputation, experience and 
14 financial integrity of the
applicants and of any other or 
15 separate person that either:

16   (A) controls, directly or indirectly, such 
17 applicant, or

18   (B) is controlled, directly or indirectly, by such 
19 applicant or by a
person which controls, directly or 
20 indirectly, such applicant;

21  (2) the facilities or proposed facilities for the 
22 conduct of riverboat
gambling;

23  (3) the highest prospective total revenue to be derived 
24 by the State
from the conduct of riverboat gambling;

25  (4) the extent to which the ownership of the applicant 
26 reflects the
diversity of the State by including minority 
 
 
10000SB0007ham003- 369 -LRB100 06307 SMS 40923 a


1 persons, women, and persons with a disability
and the good 
2 faith affirmative action plan of
each applicant to recruit, 
3 train and upgrade minority persons, women, and persons with 
4 a disability in all employment classifications;

5  (5) the financial ability of the applicant to purchase 
6 and maintain
adequate liability and casualty insurance;

7  (6) whether the applicant has adequate capitalization 
8 to provide and
maintain, for the duration of a license, a 
9 riverboat or casino;

10  (7) the extent to which the applicant exceeds or meets 
11 other standards
for the issuance of an owners license which 
12 the Board may adopt by rule;
and

13  (8) the The amount of the applicant's license bid; .

14  (9) the extent to which the applicant or the proposed 
15 host municipality plans to enter into revenue sharing 
16 agreements with communities other than the host 
17 municipality; and
18  (10) the extent to which the ownership of an applicant 
19 includes the most qualified number of minority persons, 
20 females, and persons with a disability.
21 (c) Each owners license shall specify the place where the 
22casino riverboats shall
operate or the riverboat shall operate 
23and dock.

24 (d) Each applicant shall submit with his application, on 
25forms
provided by the Board, 2 sets of his fingerprints.

26 (e) In addition to any licenses authorized under subsection 
 
 
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1(e-5) of this Section, the The Board may issue up to 10 
2licenses authorizing the holders of such
licenses to own 
3riverboats. In the application for an owners license, the

4applicant shall state the dock at which the riverboat is based 
5and the water
on which the riverboat will be located. The Board 
6shall issue 5 licenses to
become effective not earlier than 
7January 1, 1991. Three of such licenses
shall authorize 
8riverboat gambling on the Mississippi River, or, with approval

9by the municipality in which the
riverboat was docked on August 
107, 2003 and with Board approval, be authorized to relocate to a 
11new location,
in a
municipality that (1) borders on the 
12Mississippi River or is within 5
miles of the city limits of a 
13municipality that borders on the Mississippi
River and (2), on 
14August 7, 2003, had a riverboat conducting riverboat gambling 
15operations pursuant to
a license issued under this Act; one of 
16which shall authorize riverboat
gambling from a home dock in 
17the city of East St. Louis. One other license
shall
authorize 
18riverboat gambling on
the Illinois River in Tazewell County or, 
19with Board approval, shall authorize the riverboat to relocate 
20to a new location that is no more than 10 miles away from its 
21original location, in a municipality that borders on the 
22Illinois River or is within 5 miles of the city limits of a 
23municipality that borders on the Illinois River south of 
24Marshall County. The Board shall issue one
additional license 
25to become effective not earlier than March 1, 1992, which
shall 
26authorize riverboat gambling on the Des Plaines River in Will 
 
 
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1County.
The Board may issue 4 additional licenses to become 
2effective not
earlier than
March 1, 1992. In determining the 
3water upon which riverboats will operate,
the Board shall 
4consider the economic benefit which riverboat gambling confers

5on the State, and shall seek to assure that all regions of the 
6State share
in the economic benefits of riverboat gambling.

7 In granting all licenses, the Board may give favorable 
8consideration to
economically depressed areas of the State, to 
9applicants presenting plans
which provide for significant 
10economic development over a large geographic
area, and to 
11applicants who currently operate non-gambling riverboats in

12Illinois.
The Board shall review all applications for owners 
13licenses,
and shall inform each applicant of the Board's 
14decision.
The Board may grant an owners license to an
applicant 
15that has not submitted the highest license bid, but if it does 
16not
select the highest bidder, the Board shall issue a written 
17decision explaining
why another
applicant was selected and 
18identifying the factors set forth in this Section
that favored 
19the winning bidder. The fee for issuance or renewal of a 
20license pursuant to this subsection (e) shall be $100,000.

21 (e-5) In addition to licenses authorized under subsection 
22(e) of this Section:
23  (1) the Board shall issue one owners license 
24 authorizing the conduct of casino gambling in the City of 
25 Chicago;
26  (2) the Board may issue one owners license authorizing 
 
 
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1 the conduct of riverboat gambling in the City of Danville;
2  (3) the Board may issue one owners license authorizing 
3 the conduct of riverboat gambling located in the City of 
4 Waukegan;
5  (4) the Board may issue one owners license authorizing 
6 the conduct of riverboat gambling in the City of Rockford;
7  (5) the Board may issue one owners license authorizing 
8 the conduct of riverboat gambling in a municipality that is 
9 wholly or partially located in one of the following 
10 townships of Cook County: Bloom, Bremen, Calumet, Rich, 
11 Thornton, or Worth Township; and
12  (6) the Board may issue one owners license authorizing 
13 the conduct of riverboat gambling in the unincorporated 
14 area of Williamson County adjacent to the Big Muddy River.
15 Each application for a license pursuant to this subsection 
16(e-5) shall be submitted to the Board no later than 120 days 
17after the effective date of this amendatory Act of the 100th 
18General Assembly and shall include the non-refundable 
19application fee and the non-refundable background 
20investigation fee as provided in subsection (d) of Section 6 of 
21this Act. In the event that an applicant submits an application 
22for a license pursuant to this subsection (e-5) prior to the 
23effective date of this amendatory Act of the 100th General 
24Assembly, such applicant shall submit the non-refundable 
25application fee and background investigation fee as provided in 
26subsection (d) of Section 6 of this Act no later than 6 months 
 
 
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1after the effective date of this amendatory Act of the 100th 
2General Assembly. 
3 The Board shall consider issuing a license pursuant to 
4paragraphs (2) through (6) of this subsection only after the 
5corporate authority of the municipality or the county board of 
6the county in which the riverboat shall be located has 
7certified to the Board the following:
8  (i) that the applicant has negotiated with the 
9 corporate authority or county board in good faith;
10  (ii) that the applicant and the corporate authority or 
11 county board have mutually agreed on the permanent location 
12 of the riverboat;
13  (iii) that the applicant and the corporate authority or 
14 county board have mutually agreed on the temporary location 
15 of the riverboat;
16  (iv) that the applicant and the corporate authority or 
17 the county board have mutually agreed on the percentage of 
18 revenues that will be shared with the municipality or 
19 county, if any;
20  (v) that the applicant and the corporate authority or 
21 county board have mutually agreed on any zoning, licensing, 
22 public health, or other issues that are within the 
23 jurisdiction of the municipality or county; and
24  (vi) that the corporate authority or county board has 
25 passed a resolution or ordinance in support of the 
26 riverboat in the municipality or county. 
 
 
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1 At least 7 days before the corporate authority of a 
2municipality or county board of the county submits a 
3certification to the Board concerning items (i) through (vi) of 
4this subsection, it shall hold a public hearing to discuss 
5items (i) through (vi), as well as any other details concerning 
6the proposed riverboat in the municipality or county. The 
7corporate authority or county board must subsequently 
8memorialize the details concerning the proposed riverboat in a 
9resolution that must be adopted by a majority of the corporate 
10authority or county board before any certification is sent to 
11the Board. The Board shall not alter, amend, change, or 
12otherwise interfere with any agreement between the applicant 
13and the corporate authority of the municipality or county board 
14of the county regarding the location of any temporary or 
15permanent facility. 
16 In addition, prior to the Board issuing the owners license 
17authorized under paragraph (4) of subsection (e-5), an impact 
18study shall be completed to determine what location in the city 
19will provide the greater impact to the region, including the 
20creation of jobs and the generation of tax revenue. 
21 The first preference for an owners license issued under 
22this subsection (e-5) shall be given to an applicant who, on 
23the effective date of this amendatory Act of the 100th General 
24Assembly, does not operate and is not licensed as an owners 
25licensee in Illinois, whose main corporate headquarters has 
26been located within the county of the proposed permanent 
 
 
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1location of the riverboat for more than 3 years, and whose 
2principals have regulated gaming experience within the State. 
3 (e-10) The licenses authorized under subsection (e-5) of 
4this Section shall be issued within 12 months after the date 
5the license application is submitted. If the Board does not 
6issue the licenses within that time period, then the Board 
7shall give a written explanation to the applicant as to why it 
8has not reached a determination and when it reasonably expects 
9to make a determination. The fee for the issuance or renewal of 
10a license issued pursuant to this subsection (e-10) shall be 
11$100,000. Additionally, a licensee located outside of Cook 
12County shall pay a minimum initial fee of $17,500 per gaming 
13position, and a licensee located in Cook County shall pay a 
14minimum initial fee of $30,000 per gaming position. The initial 
15fees payable under this subsection (e-10) shall be deposited 
16into the Gaming Facilities Fee Revenue Fund.
17 (e-15) Each licensee of a license authorized under 
18subsection (e-5) of this Section shall make a reconciliation 
19payment 3 years after the date the licensee begins operating in 
20an amount equal to 75% of the adjusted gross receipts for the 
21most lucrative 12-month period of operations, minus an amount 
22equal to the initial payment per gaming position paid by the 
23specific licensee. If this calculation results in a negative 
24amount, then the licensee is not entitled to any
reimbursement 
25of fees previously paid. This reconciliation payment may be 
26made in installments over a period of no more than 2 years, 
 
 
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1subject to Board approval. Any installment payments shall 
2include an annual market interest rate as determined by the 
3Board. All payments by licensees under this subsection (e-15) 
4shall be deposited into the Gaming Facilities Fee Revenue Fund.
5 (e-20) In addition to any other revocation powers granted 
6to the Board under this
Act,
the Board may revoke the owners 
7license of a licensee, other than the Chicago Casino 
8Development Authority, which fails
to begin conducting 
9gambling within 15 months
of receipt of the
Board's approval of 
10the application if the Board determines that license
revocation 
11is in the best interests of the State.

12 (f) The first 10 owners licenses issued under this Act 
13shall permit the
holder to own up to 2 riverboats and equipment 
14thereon
for a period of 3 years after the effective date of the 
15license. Holders of
the first 10 owners licenses must pay the 
16annual license fee for each of
the 3
years during which they 
17are authorized to own riverboats.

18 (g) Upon the termination, expiration, or revocation of each 
19of the first
10 licenses, which shall be issued for a 3 year 
20period, all licenses are
renewable annually upon payment of the 
21fee and a determination by the Board
that the licensee 
22continues to meet all of the requirements of this Act and the

23Board's rules.
However, for licenses renewed on or after May 1, 
241998, including casino operator licenses, renewal shall be
for 
25a period of 4 years, unless the Board sets a shorter period. 
26Notwithstanding any provision in this subsection (g) to the 
 
 
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1contrary, any license that is awarded to the Chicago Casino 
2Development Authority shall not expire, but it shall be subject 
3to the provisions of this Act and the rules of the Board.

4 (h) An owners license, except for an owners license issued 
5under subsection (e-5) of this Section, shall entitle the 
6licensee to own up to 2
riverboats. 
7 An owners licensee of a casino or riverboat that is located 
8in the City of Chicago pursuant to paragraph (1) of subsection 
9(e-5) of this Section shall limit the number of gaming 
10positions to 4,000 for such owner. An owners licensee 
11authorized under subsection (e) or paragraph (2), (3), (4), or 
12(5) of subsection (e-5) of this Section shall limit the number 
13of gaming positions to 1,600 for any such owners license, 
14except as further provided in subsection (h-10) of this 
15Section. An owners licensee authorized under paragraph (6) of 
16subsection (e-5) of this Section A licensee shall limit the 
17number of gaming positions gambling participants to
1,200 for 
18any such owner. The initial fee for each gaming position 
19obtained on or after the effective date of this amendatory Act 
20of the 100th General Assembly shall be a minimum of $17,500 for 
21licensees not located in Cook County and a minimum of $30,000 
22for licensees located in Cook County, in addition to the 
23reconciliation payment, as set forth in subsections (e-15) or 
24(h-5) of this Section owners license. The fees under this 
25subsection (h) shall be deposited into the Gaming Facilities 
26Fee Revenue
Fund.
 
 
10000SB0007ham003- 378 -LRB100 06307 SMS 40923 a


1 Each owners licensee shall reserve its gaming positions 
2within 90 days after issuance of its owners license. The Board 
3may grant an extension to this 90-day period, provided that the 
4owners licensee submits a written request and explanation as to 
5why it is unable to reserve its positions within the 90-day 
6period.
7 A licensee may operate both of its riverboats concurrently, 
8provided that the
total number of gaming positions gambling 
9participants on both riverboats does not exceed the limit 
10established pursuant to this subsection and subsection (h-10) 
11of this Section
1,200. Riverboats licensed to operate on the

12Mississippi River and the Illinois River south of Marshall 
13County shall
have an authorized capacity of at least 500 
14persons. Any other riverboat
licensed under this Act shall have 
15an authorized capacity of at least 400
persons.

16 (h-5) An owners licensee who conducted gambling operations 
17prior to January 1, 2012 and purchases positions pursuant to 
18subsection (h-10) of this Section on or after the effective 
19date of this amendatory Act of the 100th General Assembly must 
20pay a minimum initial fee of $17,500 per additional gaming 
21position if the licensee is located outside Cook County and a 
22minimum initial fee of $30,000 per additional gaming position 
23if the licensee is located in Cook County, as stated in 
24subsection (h) of this Section. These initial fees shall be 
25deposited into the Gaming Facilities Fee Revenue Fund. 
26Additionally, that owners licensee shall make a reconciliation 
 
 
10000SB0007ham003- 379 -LRB100 06307 SMS 40923 a


1payment 3 years after any additional gaming positions obtained 
2pursuant to subsection (h-10) begin operating in an amount 
3equal to 75% of the owners licensee's average gross receipts 
4for the most lucrative 12-month period of operations minus an 
5amount equal to the initial fee that the owners licensee paid 
6per additional gaming position. For purposes of this subsection 
7(h-5), "average gross receipts" means (i) the increase in 
8adjusted gross receipts for the most lucrative 12-month period 
9of operations over the adjusted gross receipts for 2017, 
10multiplied by (ii) the percentage derived by dividing the 
11number of additional gaming positions that an owners licensee 
12had obtained pursuant to subsection (h-10) by the total number 
13of gaming positions operated by the owners licensee. If this 
14calculation results in a negative amount, then the owners 
15licensee is not entitled to any reimbursement of fees 
16previously paid. This reconciliation payment may be made in 
17installments over a period of no more than 2 years, subject to 
18Board approval. Any installment payments shall include an 
19annual market interest rate as determined by the Board. These 
20reconciliation payments shall be deposited into the Gaming 
21Facilities Fee Revenue Fund.
22 (h-10) For owners licensees authorized under paragraphs 
23(2) through (5) of subsection (e-5) of this Section, the 
24application for such new owners licenses shall ask the 
25applicants to stipulate in their applications the number of 
26gaming positions each applicant would like to reserve, up to 
 
 
10000SB0007ham003- 380 -LRB100 06307 SMS 40923 a


11,600 gaming positions. Once the last winning applicant for 
2each of these owners licenses has been selected by the Board, 
3the Board shall publish the number of gaming positions reserved 
4and unreserved by each winning applicant, shall accept requests 
5for additional gaming positions from any winning applicants or 
6owners licensee who initially reserved 1,600 gaming positions, 
7and shall allocate expeditiously the unreserved gaming 
8positions to such requesting winning applicants or owners 
9licensees in a manner to maximize revenue to the State; 
10provided, however, that no owners licensee (other than the 
11Chicago Casino Development Authority) shall obtain more than 
122,000 positions total.
13 In the event that not all of the unreserved gaming 
14positions described in the first and second paragraphs of this 
15subsection (h-10) were requested by owners licensees and 
16applicants, then until there are no longer unreserved gaming 
17positions, the Board periodically shall govern a process to 
18allocate the unreserved gaming positions in a manner to 
19maximize revenue to the State.
20 Unreserved gaming positions retained from and allocated to 
21owners licensees by the Board pursuant to this subsection 
22(h-10) shall not be allocated to organization gaming licensees 
23pursuant to subsection (e) of Section 7.7 of this Act.
24 (i) A licensed owner is authorized to apply to the Board 
25for and, if
approved therefor, to receive all licenses from the 
26Board necessary for the
operation of a riverboat or casino, 
 
 
10000SB0007ham003- 381 -LRB100 06307 SMS 40923 a


1including a liquor license, a license
to prepare and serve food 
2for human consumption, and other necessary
licenses. All use, 
3occupation and excise taxes which apply to the sale of
food and 
4beverages in this State and all taxes imposed on the sale or 
5use
of tangible personal property apply to such sales aboard 
6the riverboat or in the casino.

7 (j) The Board may issue or re-issue a license authorizing a 
8riverboat to
dock
in a municipality or approve a relocation 
9under Section 11.2 only if, prior
to the issuance or 
10re-issuance of
the license or approval, the governing body of 
11the municipality in which
the riverboat will dock has by a 
12majority vote approved the docking of
riverboats in the 
13municipality. The Board may issue or re-issue a license

14authorizing a
riverboat to dock in areas of a county outside 
15any municipality or approve a
relocation under Section 11.2 
16only if, prior to the issuance or re-issuance
of the license
or 
17approval, the
governing body of the county has by a majority 
18vote approved of the docking of
riverboats within such areas.

19 (k) An owners licensee may conduct land-based gambling 
20operations upon approval by the Board. 
21 (l) An owners licensee may conduct gaming at a temporary 
22facility pending the construction of a permanent facility or 
23the remodeling or relocation of an existing facility to 
24accommodate gaming participants for up to 24 months after the 
25temporary facility begins to conduct gaming. Upon request by an 
26owners licensee and upon a showing of good cause by the owners 
 
 
10000SB0007ham003- 382 -LRB100 06307 SMS 40923 a


1licensee, the Board shall extend the period during which the 
2licensee may conduct gaming at a temporary facility by up to 12 
3months. The Board shall make rules concerning the conduct of 
4gaming from temporary facilities.
5(Source: P.A. 100-391, eff. 8-25-17.)






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 
9license, the
Board determines that the highest prospective 
10total revenue to the State would
be derived from State conduct 
11of the gambling operation in lieu of re-issuing
the license, 
12the Board shall inform each applicant of its decision. The 
13Board
shall thereafter have the authority, without obtaining an 
14owners license, to
conduct casino or riverboat gambling 
15operations as
previously authorized by the terminated, 
16expired, revoked, or nonrenewed
license through a licensed 
17manager selected pursuant to an open and competitive
bidding

18process as set forth in Section 7.5 and as provided in Section 
197.4.

20 (b) The Board may locate any casino or riverboat on which a 
21gambling operation is
conducted by the State in any home dock 
22or other location authorized by Section 3(c)
upon receipt of 
23approval from a majority vote of the governing body of the

24municipality or county, as the case may be, in which the 
25riverboat will dock.

 
 
10000SB0007ham003- 383 -LRB100 06307 SMS 40923 a


1 (c) The Board shall have jurisdiction over and shall 
2supervise all
gambling operations conducted by the State 
3provided for in this Act and the Chicago Casino Development 
4Authority Act and shall
have all powers necessary and proper to 
5fully and effectively execute the
provisions of this Act and 
6the Chicago Casino Development Authority Act relating to 
7gambling operations conducted by the State.

8 (d) The maximum number of owners licenses authorized under 
9Section 7
7(e)
shall be reduced by one for each instance in 
10which the Board authorizes the
State to conduct a casino or 
11riverboat gambling operation under subsection (a) in lieu of

12re-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 
16that (i) it will re-issue an owners license pursuant to
an
open 
17and competitive bidding process, as set forth in Section 7.1, 
18(ii) or that it
will issue a managers license pursuant to an 
19open and competitive bidding
process, as set forth in Section 
207.4, or (iii) it will issue an owners license pursuant to an 
21open
and competitive bidding process, as set forth in Section 
227.12, the open and competitive bidding process
shall adhere to 
23the following procedures:

24 (1) The Board shall make applications for owners and 
25managers
licenses available to the public and allow a 
 
 
10000SB0007ham003- 384 -LRB100 06307 SMS 40923 a


1reasonable time for applicants to
submit applications to the 
2Board.

3 (2) During the filing period for owners or managers license 
4applications,
the
Board may retain the services of an 
5investment banking firm to assist the Board
in conducting the 
6open and competitive bidding process.

7 (3) After receiving all of the bid proposals, the Board 
8shall open all of
the
proposals in a public forum and disclose 
9the prospective owners or managers
names, venture partners, if 
10any, and, in the case of applicants for owners
licenses, the 
11locations of the proposed development sites.

12 (4) The Board shall summarize the terms of the proposals 
13and may make this
summary available to the public.

14 (5) The Board shall evaluate the proposals within a 
15reasonable time and
select no
more than 3 final applicants to 
16make presentations of their
proposals to the Board.

17 (6) The final applicants shall make their presentations to 
18the
Board on
the same day during an open session of the Board.

19 (7) As soon as practicable after the public presentations 
20by the final
applicants,
the Board, in its
discretion, may 
21conduct further negotiations among the 3 final applicants.

22During such negotiations, each final applicant may increase its 
23license bid or
otherwise enhance its bid proposal. At the 
24conclusion of such
negotiations, the Board shall
select the 
25winning proposal. In the case of negotiations for
an owners 
26license, the Board may, at the conclusion of such negotiations,

 
 
10000SB0007ham003- 385 -LRB100 06307 SMS 40923 a


1make the determination allowed under Section 7.3(a).

2 (8) Upon selection of a winning bid, the Board shall 
3evaluate the winning
bid
within a reasonable period of time for 
4licensee suitability in accordance with
all applicable 
5statutory and regulatory criteria.

6 (9) If the winning bidder is unable or otherwise fails to

7consummate the transaction, (including if the Board determines 
8that the winning
bidder does not satisfy the suitability 
9requirements), the Board may, on the
same criteria, select from 
10the remaining bidders or make the determination
allowed under 
11Section 7.3(a).

12(Source: P.A. 93-28, eff. 6-20-03.)


13 (230 ILCS 10/7.7 new)
14 Sec. 7.7. Organization gaming licenses.
15 (a) The General Assembly finds that the horse racing and 
16riverboat gambling industries share many similarities and 
17collectively comprise the bulk of the State's gaming industry. 
18One feature common to both industries is that each is highly 
19regulated by the State of Illinois. The General Assembly 
20further finds, however, that despite their shared features each 
21industry is distinct from the other in that horse racing is and 
22continues to be intimately tied to Illinois' agricultural 
23economy and is, at its core, a spectator sport. This 
24distinction requires the General Assembly to utilize different 
25methods to regulate and promote the horse racing industry 
 
 
10000SB0007ham003- 386 -LRB100 06307 SMS 40923 a


1throughout the State. The General Assembly finds that in order 
2to promote live horse racing as a spectator sport in Illinois 
3and the agricultural economy of this State, it is necessary to 
4allow gaming at Illinois racetracks as an ancillary use given 
5the success of other states in increasing live racing purse 
6accounts and improving the quality of horses participating in 
7horse race meetings.
8 (b) The Illinois Gaming Board shall award one organization 
9gaming license to each person or entity having operating 
10control of a racetrack that applies under Section 56 of the 
11Illinois Horse Racing Act of 1975, subject to the application 
12and eligibility requirements of this Section. Within 60 days 
13after the effective date of this amendatory Act of the 100th 
14General Assembly, a person or entity having operating control 
15of a racetrack may submit an application for an organization 
16gaming license. The application shall be made on such forms as 
17provided by the Board and shall contain such information as the 
18Board prescribes, including, but not limited to, the identity 
19of any racetrack at which gaming will be conducted pursuant to 
20an organization gaming license, detailed information regarding 
21the ownership and management of the applicant, and detailed 
22personal information regarding the applicant. The application 
23shall specify the number of gaming positions the applicant 
24intends to use and the place where the organization gaming 
25facility will operate. A person who knowingly makes a false 
26statement on an application is guilty of a Class A misdemeanor.
 
 
10000SB0007ham003- 387 -LRB100 06307 SMS 40923 a


1 Each applicant shall disclose the identity of every person 
2or entity having a direct or indirect pecuniary interest 
3greater than 1% in any racetrack with respect to which the 
4license is sought. If the disclosed entity is a corporation, 
5the applicant shall disclose the names and addresses of all 
6stockholders and directors. If the disclosed entity is a 
7limited liability company, the applicant shall disclose the 
8names and addresses of all members and managers. If the 
9disclosed entity is a partnership, the applicant shall disclose 
10the names and addresses of all partners, both general and 
11limited. If the disclosed entity is a trust, the applicant 
12shall disclose the names and addresses of all beneficiaries.
13 An application shall be filed and considered in accordance 
14with the rules of the Board. Each application for an 
15organization gaming license shall include a non-refundable 
16application fee of $100,000. In addition, a non-refundable fee 
17of $50,000 shall be paid at the time of filing to defray the 
18costs associated with background investigations conducted by 
19the Board. If the costs of the background investigation exceed 
20$50,000, the applicant shall pay the additional amount to the 
21Board within 7 days after a request by the Board. If the costs 
22of the investigation are less than $50,000, the applicant shall 
23receive a refund of the remaining amount. All information, 
24records, interviews, reports, statements, memoranda, or other 
25data supplied to or used by the Board in the course of this 
26review or investigation of an applicant for an organization 
 
 
10000SB0007ham003- 388 -LRB100 06307 SMS 40923 a


1gaming license under this Act shall be privileged and strictly 
2confidential and shall be used only for the purpose of 
3evaluating an applicant for an organization gaming license or a 
4renewal. Such information, records, interviews, reports, 
5statements, memoranda, or other data shall not be admissible as 
6evidence nor discoverable in any action of any kind in any 
7court or before any tribunal, board, agency or person, except 
8for any action deemed necessary by the Board. The application 
9fee shall be deposited into the Gaming Facilities Fee Revenue 
10Fund.
11 Each applicant shall submit with his or her application, on 
12forms provided by the Board, 2 sets of his or her fingerprints. 
13The Board shall charge each applicant a fee set by the 
14Department of State Police to defray the costs associated with 
15the search and classification of fingerprints obtained by the 
16Board with respect to the applicant's application. This fee 
17shall be paid into the State Police Services Fund. 
18 (c) The Board shall determine within 120 days after 
19receiving an application for an organization gaming license 
20whether to grant an organization gaming license to the 
21applicant. If the Board does not make a determination within 
22that time period, then the Board shall give a written 
23explanation to the applicant as to why it has not reached a 
24determination and when it reasonably expects to make a 
25determination.
26 The organization gaming licensee shall purchase up to the 
 
 
10000SB0007ham003- 389 -LRB100 06307 SMS 40923 a


1amount of gaming positions authorized under this Act within 120 
2days after receiving its organization gaming license. If an 
3organization gaming licensee is prepared to purchase the gaming 
4positions, but is temporarily prohibited from doing so by order 
5of a court of competent jurisdiction or the Board, then the 
6120-day period is tolled until a resolution is reached.
7 An organization gaming license shall authorize its holder 
8to conduct gaming under this Act at its racetracks on the same 
9days of the year and hours of the day that owners licenses are 
10allowed to operate under approval of the Board. 
11 An organization gaming license and any renewal of an 
12organization gaming license shall authorize gaming pursuant to 
13this Section for a period of 4 years. The fee for the issuance 
14or renewal of an organization gaming license shall be $100,000.
15 (d) To be eligible to conduct gaming under this Section, a 
16person or entity having operating control of a racetrack must 
17(i) obtain an organization gaming license, (ii) hold an 
18organization license under the Illinois Horse Racing Act of 
191975, (iii) hold an inter-track wagering license, (iv) pay an 
20initial fee of $30,000 per gaming position from organization 
21gaming licensees where gaming is conducted in Cook County and 
22$17,500 for organization gaming licensees where gaming is 
23conducted outside of Cook County before beginning to conduct 
24gaming plus make the reconciliation payment required under 
25subsection (k), (v) conduct live racing in accordance with 
26subsections (e-1), (e-2), and (e-3) of Section 20 of the 
 
 
10000SB0007ham003- 390 -LRB100 06307 SMS 40923 a


1Illinois Horse Racing Act of 1975 or for a licensee that is 
2only authorized 350 gaming positions pursuant to subsection (d) 
3of Section 7.7 of this Act, have a fully operational facility 
4running at least 96 live races over a period of at least 15 
5days per year until such time as the total number of gaming 
6positions is increased to 900, (vi) meet the requirements of 
7subsection (a) of Section 56 of the Illinois Horse Racing Act 
8of 1975, (vii) for organization licensees conducting 
9standardbred race meetings, keep backstretch barns and 
10dormitories open and operational year-round unless a lesser 
11schedule is mutually agreed to by the organization licensee and 
12the horsemen's association racing at that organization 
13licensee's race meeting, (viii) for organization licensees 
14conducting thoroughbred race meetings, the organization 
15licensee must maintain accident medical expense liability 
16insurance coverage of $1,000,000 for jockeys, and (ix) meet all 
17other requirements of this Act that apply to owners licensees.
18 An organization gaming licensee may enter into a joint 
19venture with a licensed owner to own, manage, conduct, or 
20otherwise operate the organization gaming licensee's 
21organization gaming facilities, unless the organization gaming 
22licensee has a parent company or other affiliated company that 
23is, directly or indirectly, wholly owned by a parent company 
24that is also licensed to conduct organization gaming, casino 
25gaming, or their equivalent in another state. 
26 All payments by licensees under this subsection (c) shall 
 
 
10000SB0007ham003- 391 -LRB100 06307 SMS 40923 a


1be deposited into the Gaming Facilities Fee Revenue Fund. 
2 (d-5) The Board may not issue an organization gaming 
3license to a racetrack located in Madison County until it 
4receives an executed copy of a contractual agreement between 
5the racetrack in Madison County and an owners licensee 
6conducting riverboat gambling from a home dock in the City of 
7East St. Louis to operate authorized gaming
at the racetrack in 
8Madison County to support the continued viability of the City 
9of East St. Louis' local portion of gaming
taxes generated by 
10the owners licensee. 
11 (e) A person or entity is ineligible to receive an 
12organization gaming license if:
13  (1) the person or entity has been convicted of a felony 
14 under the laws of this State, any other state, or the 
15 United States, including a conviction under the Racketeer 
16 Influenced and Corrupt Organizations Act;
17  (2) the person or entity has been convicted of any 
18 violation of Article 28 of the Criminal Code of 2012, or 
19 substantially similar laws of any other jurisdiction;
20  (3) the person or entity has submitted an application 
21 for a license under this Act that contains false 
22 information;
23  (4) the person is a member of the Board;
24  (5) a person defined in (1), (2), (3), or (4) of this 
25 subsection (e) is an officer, director, or managerial 
26 employee of the entity;
 
 
10000SB0007ham003- 392 -LRB100 06307 SMS 40923 a


1  (6) the person or entity employs a person defined in 
2 (1), (2), (3), or (4) of this subsection (e) who 
3 participates in the management or operation of gambling 
4 operations authorized under this Act; or
5  (7) a license of the person or entity issued under this 
6 Act or a license to own or operate gambling facilities in 
7 any other jurisdiction has been revoked. 
8 (f) The Board may approve gaming positions pursuant to an 
9organization gaming license statewide as provided in this 
10Section. The authority to operate gaming positions under this 
11Section shall be allocated as follows: up to 1,200 gaming 
12positions for any organization gaming licensee in Cook County; 
13up to 900 gaming positions for any organization gaming licensee 
14outside of Cook County; and up to 350 gaming positions for any 
15organization gaming licensee whose organization gaming license 
16originates with an organization licensee that did not conduct 
17live racing in calendar year 2010 and is located within 3 miles 
18of the Mississippi River, which shall increase to 900 gaming 
19positions in the calendar year following the year in which the 
20organization gaming licensee conducts 96 live races.
21 (g) Each applicant for an organization gaming license shall 
22specify in its application for licensure the number of gaming 
23positions it will operate, up to the applicable limitation set 
24forth in subsection (f) of this Section. Any unreserved gaming 
25positions that are not specified shall be forfeited and 
26retained by the Board. For the purposes of this subsection (g), 
 
 
10000SB0007ham003- 393 -LRB100 06307 SMS 40923 a


1an organization gaming licensee that did not conduct live 
2racing in 2010 and is located within 3 miles of the Mississippi 
3River may reserve up to 900 positions and shall not be 
4penalized under this Section for not operating those positions 
5until it meets the requirements of subsection (f) of this 
6Section, but such licensee shall not request unreserved gaming 
7positions under this subsection (g) until its 900 positions are 
8all operational. 
9 Thereafter, the Board shall publish the number of 
10unreserved gaming positions and shall accept requests for 
11additional positions from any organization gaming licensee 
12that initially reserved all of the positions that were offered. 
13The Board shall allocate expeditiously the unreserved gaming 
14positions to requesting organization gaming licensees in a 
15manner that maximizes revenue to the State. The Board may 
16allocate any such unused gaming positions pursuant to an open 
17and competitive bidding process, as provided under Section 7.5 
18of this Act. This process shall continue until all unreserved 
19gaming positions have been purchased. All positions obtained 
20pursuant to this process and all positions the organization 
21gaming licensee specified it would operate in its application 
22must be in operation within 18 months after they were obtained 
23or the organization gaming licensee forfeits the right to 
24operate those positions, but is not entitled to a refund of any 
25fees paid. The Board may, after holding a public hearing, grant 
26extensions so long as the organization gaming licensee is 
 
 
10000SB0007ham003- 394 -LRB100 06307 SMS 40923 a


1working in good faith to make the positions operational. The 
2extension may be for a period of 6 months. If, after the period 
3of the extension, the organization gaming licensee has not made 
4the positions operational, then another public hearing must be 
5held by the Board before it may grant another extension. 
6 Unreserved gaming positions retained from and allocated to 
7organization gaming licensees by the Board pursuant to this 
8subsection (g) shall not be allocated to owners licensees 
9pursuant to subsection (h-10) of Section 7 of this Act. 
10 For the purpose of this subsection (g), the unreserved 
11gaming positions for each organization gaming licensee shall be 
12the applicable limitation set forth in subsection (f) of this 
13Section, less the number of reserved gaming positions by such 
14organization gaming licensee, and the total unreserved gaming 
15positions shall be the aggregate of the unreserved gaming 
16positions for all organization gaming licensees. 
17 (g-5) An organization gaming licensee is authorized to 
18conduct the following at a racetrack:
19  (1) slot machine gambling;
20  (2) video game of chance gambling;
21  (3) gambling with electronic gambling games as defined 
22 in this Act or defined by the Illinois Gaming Board; and
23  (4) table games. 
24 (h) Subject to the approval of the Illinois Gaming Board, 
25an organization gaming licensee may make modification or 
26additions to any existing buildings and structures to comply 
 
 
10000SB0007ham003- 395 -LRB100 06307 SMS 40923 a


1with the requirements of this Act. The Illinois Gaming Board 
2shall make its decision after consulting with the Illinois 
3Racing Board. In no case, however, shall the Illinois Gaming 
4Board approve any modification or addition that alters the 
5grounds of the organizational licensee such that the act of 
6live racing is an ancillary activity to gaming authorized under 
7this Section.
Gaming authorized under this Section may take 
8place in existing structures where inter-track wagering is 
9conducted at the racetrack or a facility within 300 yards of 
10the racetrack in accordance with the provisions of this Act and 
11the Illinois Horse Racing Act of 1975.
12 (i) An organization gaming licensee may conduct gaming at a 
13temporary facility pending the construction of a permanent 
14facility or the remodeling or relocation of an existing 
15facility to accommodate gaming participants for up to 24 months 
16after the temporary facility begins to conduct gaming 
17authorized under this Section. Upon request by an organization 
18gaming licensee and upon a showing of good cause by the 
19organization gaming licensee, the Board shall extend the period 
20during which the licensee may conduct gaming authorized under 
21this Section at a temporary facility by up to 12 months. The 
22Board shall make rules concerning the conduct of gaming 
23authorized under this Section from temporary facilities.
24 The gaming authorized under this Section may take place in 
25existing structures where inter-track wagering is conducted at 
26the racetrack or a facility within 300 yards of the racetrack 
 
 
10000SB0007ham003- 396 -LRB100 06307 SMS 40923 a


1in accordance with the provisions of this Act and the Illinois 
2Horse Racing Act of 1975.
3 (i-5) Under no circumstances shall an organization gaming 
4licensee conduct gaming at any State or county fair. 
5 (j) The Illinois Gaming Board must adopt emergency rules in 
6accordance with Section 5-45 of the Illinois Administrative 
7Procedure Act as necessary to ensure compliance with the 
8provisions of this amendatory Act of the 100th General Assembly

9concerning the conduct of gaming by an organization gaming 
10licensee. The adoption of emergency rules authorized by this 
11subsection (j) shall be deemed to be necessary for the public 
12interest, safety, and welfare.
13 (k) Each organization gaming licensee who obtains gaming 
14positions must make a reconciliation payment 3 years after the 
15date the organization gaming licensee begins operating the 
16positions in an amount equal to 75% of the difference between 
17its adjusted gross receipts from gaming authorized under this 
18Section and amounts paid to its purse accounts pursuant to item 
19(1) of subsection (b) of Section 56 of the Illinois Horse 
20Racing Act of 1975 for the 12-month period for which such 
21difference was the largest, minus an amount equal to the 
22initial per position fee paid by the organization gaming 
23licensee. If this calculation results in a negative amount, 
24then the organization gaming licensee is not entitled to any 
25reimbursement of fees previously paid. This reconciliation 
26payment may be made in installments over a period of no more 
 
 
10000SB0007ham003- 397 -LRB100 06307 SMS 40923 a


1than 2 years, subject to Board approval. Any installment 
2payments shall include an annual market interest rate as 
3determined by the Board.
4 All payments by licensees under this subsection (i) shall 
5be deposited into the Gaming Facilities Fee Revenue Fund. 
6 (l) As soon as practical after a request is made by the 
7Illinois Gaming Board, to minimize duplicate submissions by the 
8applicant, the Illinois Racing Board must provide information 
9on an applicant for an organization gaming license to the 
10Illinois Gaming Board.

11 (230 ILCS 10/7.8 new)

12 Sec. 7.8. Home rule. The regulation and licensing of 
13organization gaming licensees and gaming conducted pursuant to 
14an organization gaming license are exclusive powers and 
15functions of the State. A home rule unit may not regulate or 
16license such gaming or organization gaming licensees. This 
17Section is a denial and limitation of home rule powers and 
18functions under subsection (h) of Section
6 of Article VII of 
19the Illinois Constitution.

20 (230 ILCS 10/7.9 new)
21 Sec. 7.9. Casino operator license.
22 (a) A qualified person may apply to the Board for a casino 
23operator license to
operate
and manage any gambling operation 
24conducted by the Authority. The application shall
be
made on 
 
 
10000SB0007ham003- 398 -LRB100 06307 SMS 40923 a


1forms provided by the Board and shall contain such information 
2as the
Board
prescribes, including but not limited to 
3information required in Sections 6(a),
(b), and
(c) and 
4information relating to the applicant's proposed price to 
5manage the Authority's gambling
operations and to provide the 
6casino, gambling equipment, and supplies
necessary to
conduct 
7Authority gambling operations. The application shall also 
8include a non-refundable application fee of $100,000. This 
9application fee shall be deposited into the Gaming Facilities 
10Fee Revenue Fund.
11 (b) A person or entity is ineligible to receive a casino 
12operator license if:


13  (1) the person has been convicted of a felony under the 
14 laws of this
State, any other state, or the United States;


15  (2) the person has been convicted of any violation of 
16 Article 28 of
the Criminal Code of 2012, or substantially 
17 similar laws of any other
jurisdiction;


18  (3) the person has submitted an application for a 
19 license under this
Act or the Chicago Casino Development 
20 Authority Act which contains false information;


21  (4) the person is a member of the Board or the Chicago 
22 Casino Development Board or the person is an official or 
23 employee of the Chicago Casino Development Authority or the 
24 City of Chicago;


25  (5) a person defined in (1), (2), (3), or (4) is an 
26 officer, director, or
managerial employee of the entity;


 
 
10000SB0007ham003- 399 -LRB100 06307 SMS 40923 a


1  (6) the entity employs a person defined in (1), (2), 
2 (3),
or (4) who participates in the management or operation 
3 of gambling
operations authorized under this Act; or


4  (7) a license of the person or entity issued under this 
5 Act,
or
a license to own or operate gambling facilities in 
6 any other jurisdiction, has
been revoked.

7 (c) In determining whether to grant a casino operator 
8license, the
Board shall consider:


9  (1) the character, reputation, experience and 
10 financial integrity of the
applicants and of any other or 
11 separate person that either:


12   (A) controls, directly or indirectly, such 
13 applicant, or


14   (B) is controlled, directly or indirectly, by such 
15 applicant or by a
person which controls, directly or 
16 indirectly, such applicant;


17  (2) the facilities or proposed facilities for the 
18 conduct of
gambling;


19  (3) the preference of the municipality in which the 
20 licensee will operate;


21  (4) the extent to which the ownership of the applicant 
22 reflects the
diversity of the State by including minority 
23 persons and females
and the good faith affirmative action 
24 plan of
each applicant to recruit, train, and upgrade 
25 minority persons and females in all employment 
26 classifications;


 
 
10000SB0007ham003- 400 -LRB100 06307 SMS 40923 a


1  (5) the financial ability of the applicant to purchase 
2 and maintain
adequate liability and casualty insurance;


3  (6) whether the applicant has adequate capitalization 
4 to provide and
maintain, for the duration of a license, a 
5 casino; and


6  (7) the extent to which the applicant exceeds or meets 
7 other standards
for the issuance of a casino operator 
8 license that the Board may adopt by rule.

9 (d) Each applicant shall submit with his or her 
10application, on forms
prescribed by
the Board, 2 sets of his or 
11her fingerprints. The Board shall charge each applicant a fee 
12set by the Department of State Police to defray the costs 
13associated with the search and classification of fingerprints 
14obtained by the Board with respect to the applicant's 
15application. This fee shall be paid into the State Police 
16Services Fund.

17 (e) A person who knowingly makes a false statement on an 
18application is
guilty of a Class A misdemeanor.

19 (f) The Board shall charge each applicant a non-refundable 
20fee of $50,000 to defray the costs associated with the 
21background investigation conducted by the Board. This fee shall 
22be exclusive of any other fee or fees charged in connection 
23with an application for and, if applicable, the issuance of, a 
24casino operator license. If the costs of the investigation 
25exceed $50,000, the Board shall immediately notify the 
26applicant of the additional amount owed, payment of which must 
 
 
10000SB0007ham003- 401 -LRB100 06307 SMS 40923 a


1be submitted to the Board within 7 days after such 
2notification. All information, records, interviews, reports, 
3statements, memoranda, or other data supplied to or used by the 
4Board in the course of its review or investigation of an 
5application for a license or a renewal under this Act shall be 
6privileged and strictly confidential and shall be used only for 
7the purpose of evaluating an applicant for a license or a 
8renewal. Such information, records, interviews, reports, 
9statements, memoranda, or other data shall not be admissible as 
10evidence, nor discoverable in any action of any kind in any 
11court or before any tribunal, board, agency, or person, except 
12for any action deemed necessary by the Board. 
13 (g) The casino operator license shall be issued only upon 
14proof that the applicant has entered into a labor peace 
15agreement with each labor organization that is actively engaged 
16in representing and attempting to represent casino and 
17hospitality industry workers in this State. The labor peace 
18agreement must be a valid and enforceable agreement under 29 
19U.S.C. 185 that protects the city's and State's revenues from 
20the operation of the casino facility by prohibiting the labor 
21organization and its members from engaging in any picketing, 
22work stoppages, boycotts, or any other economic interference 
23with the casino facility for at least the first 5 years of the 
24casino license and must cover all operations at the casino 
25facility that are conducted by lessees or tenants or under 
26management agreements. 
 
 
10000SB0007ham003- 402 -LRB100 06307 SMS 40923 a


1 (h) The casino operator license shall be for a term of 4 
2years, shall
be
renewable by the Board, and shall contain such 
3terms and
provisions as the Board deems necessary to protect or 
4enhance the
credibility and integrity of State gambling 
5operations, achieve the highest
prospective total revenue to 
6the State, and otherwise serve the interests of
the citizens of 
7Illinois. The Board may suspend, restrict, or revoke the 
8license:
9  (1) for violation of any provision of this Act;
10  (2) for violation of any rules of the Board; 
11  (3) for any cause which, if known to the Board, would 
12 have disqualified the applicant from receiving the 
13 license; or
14  (4) for any other just cause. 

15 (230 ILCS 10/7.10 new)
16 Sec. 7.10. Diversity program.
17 (a) Each owners licensee, organization gaming licensee, 
18casino operator licensee, and suppliers licensee shall 
19establish and maintain a diversity program to ensure 
20non-discrimination in the award and administration of 
21contracts. The programs shall establish goals of awarding not 
22less than 20% of the annual dollar value of all contracts, 
23purchase orders, or other agreements to minority-owned 
24businesses and 5% of the annual dollar value of all contracts 
25to female-owned businesses.
 
 
10000SB0007ham003- 403 -LRB100 06307 SMS 40923 a


1 (b) Each owners licensee, organization gaming licensee, 
2casino operator licensee, and suppliers licensee shall 
3establish and maintain a diversity program designed to promote 
4equal opportunity for employment. The program shall establish 
5hiring goals as the Board and each licensee determines 
6appropriate. The Board shall monitor the progress of the gaming 
7licensee's progress with respect to the program's goals.
8 (c) No later than May 31 of each year, each licensee shall 
9report to the Board (1) the number of respective employees and 
10the number of its respective employees who have designated 
11themselves as members of a minority group and gender and (2) 
12the total goals achieved under subsection (a) of this Section 
13as a percentage of the total contracts awarded by the license. 
14In addition, all licensees shall submit a report with respect 
15to the minority-owned and female-owned businesses program 
16created in this Section to the Board.
17 (d) When considering whether to re-issue or renew a license 
18to an owners licensee, organization gaming licensee, casino 
19operator licensee, or suppliers licensee, the Board shall take 
20into account the licensee's success in complying with the 
21provisions of this Section. If an owners licensee, organization 
22gaming licensee, casino operator licensee, or suppliers 
23licensee has not satisfied the goals contained in this Section, 
24the Board shall require a written explanation as to why the 
25licensee is not in compliance and shall require the licensee to 
26file multi-year metrics designed to achieve compliance with the 
 
 
10000SB0007ham003- 404 -LRB100 06307 SMS 40923 a


1provisions by the next renewal period, consistent with State 
2and federal law.

3 (230 ILCS 10/7.11 new)
4 Sec. 7.11. Annual report on diversity.
5 (a) Each licensee that receives a license under Sections 7, 
67.1, and 7.7 shall execute and file a report with the Board no 
7later than December 31 of each year that shall contain, but not 
8be limited to, the following information:
9  (i) a good faith affirmative action plan to recruit, 
10 train, and upgrade minority persons, females, and persons 
11 with a disability in all employment classifications;
12  (ii) the total dollar amount of contracts that were 
13 awarded to businesses owned by minority persons, females, 
14 and persons with a disability;
15  (iii) the total number of businesses owned by minority 
16 persons, females, and persons with a disability that were 
17 utilized by the licensee;
18  (iv) the utilization of businesses owned by minority 
19 persons, females, and persons with disabilities during the 
20 preceding year; and
21  (v) the outreach efforts used by the licensee to 
22 attract investors and businesses consisting of minority 
23 persons, females, and persons with a disability.
24 (b) The Board shall forward a copy of each licensee's 
25annual reports to the General Assembly no later than February 1 
 
 
10000SB0007ham003- 405 -LRB100 06307 SMS 40923 a


1of each year. The reports to the General Assembly shall be 
2filed with the Clerk of the House of Representatives and the 
3Secretary of the Senate in electronic form only, in the manner 
4that the Clerk and the Secretary shall direct.

5 (230 ILCS 10/7.12 new)
6 Sec. 7.12. Issuance of new owners licenses.
7 (a) Except for the owners license issued to the Chicago 
8Casino Development Authority, owners licenses newly authorized 
9pursuant to this amendatory Act of the 100th General Assembly 
10may be issued by the Board to a qualified applicant pursuant to 
11an open and competitive bidding process, as set forth in 
12Section 7.5, and subject to the maximum number of authorized 
13licenses set forth in subsection (e-5) of Section 7 of this 
14Act.
15 (b) To be a qualified applicant, a person or entity may not 
16be ineligible to receive an owners license under subsection (a) 
17of Section 7 of this Act and must submit an application for an 
18owners license that complies with Section 6 of this Act.
19 (c) In determining whether to grant an owners license to an 
20applicant, the Board shall consider all of the factors set 
21forth in subsections (b) and (e-10) of Section 7 of this Act, 
22as well as the amount of the applicant's license bid. The Board 
23may grant the owners license to an applicant that has not 
24submitted the highest license bid, but if it does not select 
25the highest bidder, the Board shall issue a written decision 
 
 
10000SB0007ham003- 406 -LRB100 06307 SMS 40923 a


1explaining why another applicant was selected and identifying 
2the factors set forth in subsections (b) and (e-10) of Section 
37 of this Act that favored the winning bidder.

4 (230 ILCS 10/7.13 new)
5 Sec. 7.13. Environmental standards.  All permanent 
6casinos, riverboats, and organization gaming facilities shall 
7consist of buildings that are certified as meeting the U.S. 
8Green Building Council's Leadership in Energy and 
9Environmental Design standards. The provisions of this Section 
10apply to a holder of an owners license, casino operator 
11license, or organization gaming license that (i) begins 
12operations on or after January 1, 2018 or (ii) relocates its 
13facilities on or after the effective date of this amendatory 
14Act of the 100th General Assembly.




15 (230 ILCS 10/8) (from Ch. 120, par. 2408)



16 Sec. 8. Suppliers licenses. 

17 (a) The Board may issue a suppliers license to such 
18persons, firms or
corporations which apply therefor upon the 
19payment of a non-refundable
application fee set by the Board, 
20upon a determination by the Board that
the applicant is 
21eligible for a suppliers license and upon payment of a
$5,000 
22annual license
fee.

23 (b) The holder of a suppliers license is authorized to sell 
24or lease,
and to contract to sell or lease, gambling equipment 
 
 
10000SB0007ham003- 407 -LRB100 06307 SMS 40923 a


1and supplies to any
licensee involved in the ownership or 
2management of gambling operations.

3 (c) Gambling supplies and equipment may not be distributed

4unless supplies and equipment conform to standards adopted by

5rules of the Board.

6 (d) A person, firm or corporation is ineligible to receive 
7a suppliers
license if:


8  (1) the person has been convicted of a felony under the 
9 laws of this
State, any other state, or the United States;


10  (2) the person has been convicted of any violation of 
11 Article 28 of the
Criminal Code of 1961 or the Criminal 
12 Code of 2012, or substantially similar laws of any other 
13 jurisdiction;


14  (3) the person has submitted an application for a 
15 license under this
Act which contains false information;


16  (4) the person is a member of the Board;


17  (5) the entity firm or corporation is one in which a 
18 person defined in (1),
(2), (3) or (4), is an officer, 
19 director or managerial employee;


20  (6) the firm or corporation employs a person who 
21 participates in the
management or operation of riverboat 
22 gambling authorized under this Act or the Chicago Casino 
23 Development Authority Act;


24  (7) the license of the person, firm or corporation 
25 issued under
this Act or the Chicago Casino Development 
26 Authority Act, or a license to own or operate gambling 
 
 
10000SB0007ham003- 408 -LRB100 06307 SMS 40923 a


1 facilities
in any other jurisdiction, has been revoked.

2 (e) Any person that supplies any equipment, devices, or 
3supplies to a
licensed riverboat gambling operation must first 
4obtain a suppliers
license. A supplier shall furnish to the 
5Board a list of all equipment,
devices and supplies offered for 
6sale or lease in connection with gambling
games authorized 
7under this Act. A supplier shall keep books and records
for the 
8furnishing of equipment, devices and supplies to gambling

9operations separate and distinct from any other business that 
10the supplier
might operate. A supplier shall file a quarterly 
11return with the Board
listing all sales and leases. A supplier 
12shall permanently affix its name or a distinctive logo or other 
13mark or design element identifying the manufacturer or supplier

14to all its equipment, devices, and supplies, except gaming 
15chips without a value impressed, engraved, or imprinted on it, 
16for gambling operations.
The Board may waive this requirement 
17for any specific product or products if it determines that the 
18requirement is not necessary to protect the integrity of the 
19game. Items purchased from a licensed supplier may continue to 
20be used even though the supplier subsequently changes its name, 
21distinctive logo, or other mark or design element; undergoes a 
22change in ownership; or ceases to be licensed as a supplier for 
23any reason. Any supplier's equipment, devices or supplies which 
24are used by any person
in an unauthorized gambling operation 
25shall be forfeited to the State. A holder of an owners license 
26or an organization gaming license A
licensed owner may own its 
 
 
10000SB0007ham003- 409 -LRB100 06307 SMS 40923 a


1own equipment, devices and supplies. Each
holder of an owners 
2license or an organization gaming license under the Act shall 
3file an annual report
listing its inventories of gambling 
4equipment, devices and supplies.

5 (f) Any person who knowingly makes a false statement on an 
6application
is guilty of a Class A misdemeanor.

7 (g) Any gambling equipment, devices and supplies provided 
8by any
licensed supplier may either be repaired on the 
9riverboat, in the casino, or at the organization gaming 
10facility or removed from
the riverboat, casino, or organization 
11gaming facility to a an on-shore facility owned by the holder 
12of an owners
license or organization gaming license for repair.

13(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13; 
1498-756, eff. 7-16-14.)





15 (230 ILCS 10/9) (from Ch. 120, par. 2409)



16 Sec. 9. Occupational licenses. 

17 (a) The Board may issue an occupational license to an 
18applicant upon the
payment of a non-refundable fee set by the 
19Board, upon a determination by
the Board that the applicant is 
20eligible for an occupational license and
upon payment of an 
21annual license fee in an amount to be established. To
be 
22eligible for an occupational license, an applicant must:


23  (1) be at least 21 years of age if the applicant will 
24 perform any
function involved in gaming by patrons. Any 
25 applicant seeking an
occupational license for a non-gaming 
 
 
10000SB0007ham003- 410 -LRB100 06307 SMS 40923 a


1 function shall be at least 18 years
of age;


2  (2) not have been convicted of a felony offense, a 
3 violation of Article
28 of the Criminal Code of 1961 or the 
4 Criminal Code of 2012, or a similar statute of any other

5 jurisdiction;

6  (2.5) not have been convicted of a crime, other than a 
7 crime described in item (2) of this subsection (a), 
8 involving dishonesty or moral turpitude, except that the 
9 Board may, in its discretion, issue an occupational license 
10 to a person who has been convicted of a crime described in 
11 this item (2.5) more than 10 years prior to his or her 
12 application and has not subsequently been convicted of any 
13 other crime; 

14  (3) have demonstrated a level of skill or knowledge 
15 which the Board
determines to be necessary in order to 
16 operate gambling aboard a riverboat, in a casino, or at an 
17 organization gaming facility; and


18  (4) have met standards for the holding of an 
19 occupational license as
adopted by rules of the Board. Such 
20 rules shall provide that any person or
entity seeking an 
21 occupational license to manage gambling operations
under 
22 this Act or the Chicago Casino Development Authority Act 
23 hereunder shall be subject to background inquiries and 
24 further requirements
similar to those required of 
25 applicants for an owners license.
Furthermore, such rules 
26 shall provide that each such entity shall be
permitted to 
 
 
10000SB0007ham003- 411 -LRB100 06307 SMS 40923 a


1 manage gambling operations for only one licensed owner.

2 (b) Each application for an occupational license shall be 
3on forms
prescribed by the Board and shall contain all 
4information required by the
Board. The applicant shall set 
5forth in the application: whether he has been
issued prior 
6gambling related licenses; whether he has been licensed in any

7other state under any other name, and, if so, such name and his 
8age; and
whether or not a permit or license issued to him in 
9any other state has
been suspended, restricted or revoked, and, 
10if so, for what period of time.

11 (c) Each applicant shall submit with his application, on 
12forms provided
by the Board, 2 sets of his fingerprints. The 
13Board shall charge each
applicant a fee set by the Department 
14of State Police to defray the costs
associated with the search 
15and classification of fingerprints obtained by
the Board with 
16respect to the applicant's application. These fees shall be

17paid into the State Police Services Fund.

18 (d) The Board may in its discretion refuse an occupational 
19license to
any person: (1) who is unqualified to perform the 
20duties required of such
applicant; (2) who fails to disclose or 
21states falsely any information
called for in the application; 
22(3) who has been found guilty of a
violation of this Act or the 
23Chicago Casino Development Authority Act or whose prior 
24gambling related license or
application therefor has been 
25suspended, restricted, revoked or denied for
just cause in any 
26other state; or (4) for any other just cause.

 
 
10000SB0007ham003- 412 -LRB100 06307 SMS 40923 a


1 (e) The Board may suspend, revoke or restrict any 
2occupational licensee:
(1) for violation of any provision of 
3this Act; (2) for violation of any
of the rules and regulations 
4of the Board; (3) for any cause which, if
known to the Board, 
5would have disqualified the applicant from receiving
such 
6license; or (4) for default in the payment of any obligation or 
7debt
due to the State of Illinois; or (5) for any other just 
8cause.

9 (f) A person who knowingly makes a false statement on an 
10application is
guilty of a Class A misdemeanor.

11 (g) Any license issued pursuant to this Section shall be 
12valid for a
period of one year from the date of issuance.

13 (h) Nothing in this Act shall be interpreted to prohibit a 
14licensed
owner or organization gaming licensee from entering 
15into an agreement with a public community college or a school 
16approved under the
Private Business and Vocational Schools Act 
17of 2012 for the training of any
occupational licensee. Any 
18training offered by such a school shall be in
accordance with a 
19written agreement between the licensed owner or organization 
20gaming licensee and the school.

21 (i) Any training provided for occupational licensees may be 
22conducted
either at the site of the gambling facility on the 
23riverboat or at a school with which a licensed owner or 
24organization gaming licensee has
entered into an agreement 
25pursuant to subsection (h).

26(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12; 
 
 
10000SB0007ham003- 413 -LRB100 06307 SMS 40923 a


197-1150, eff. 1-25-13.)





2 (230 ILCS 10/11) (from Ch. 120, par. 2411)



3 Sec. 11. Conduct of gambling. Gambling may be conducted by 
4licensed owners or licensed managers on behalf
of the State 
5aboard riverboats. Gambling may be conducted by organization 
6gaming licensees at organization gaming facilities. Gambling 
7may be conducted by a casino operator licensee at a casino. 
8Gambling authorized under this Section is ,
subject to the 
9following standards:


10  (1) A licensee may conduct riverboat gambling 
11 authorized under this Act
regardless of whether it conducts 
12 excursion cruises. A licensee may permit
the continuous 
13 ingress and egress of patrons passengers on a riverboat not 
14 used for excursion cruises for the purpose of gambling. 
15 Excursion cruises shall not exceed 4 hours for a round 
16 trip. However, the Board may grant express approval for an 
17 extended cruise on a case-by-case basis. 


18  (2) (Blank).


19  (3) Minimum and maximum wagers on games shall be set by 
20 the licensee.


21  (4) Agents of the Board and the Department of State 
22 Police may board
and inspect any riverboat, enter and 
23 inspect any portion of a casino, or enter and inspect any 
24 portion of an organization gaming facility at any time for 
25 the purpose of determining
whether this Act or the Chicago 
 
 
10000SB0007ham003- 414 -LRB100 06307 SMS 40923 a


1 Casino Development Authority Act is being complied with. 
2 Every riverboat, if under way and
being hailed by a law 
3 enforcement officer or agent of the Board, must stop

4 immediately and lay to.


5  (5) Employees of the Board shall have the right to be 
6 present on the
riverboat or in the casino or on adjacent 
7 facilities under the control of the licensee and at the 
8 organization gaming facility under the control of the 
9 organization gaming licensee.


10  (6) Gambling equipment and supplies customarily used 
11 in conducting
riverboat gambling must be purchased or 
12 leased only from suppliers licensed
for such purpose under 
13 this Act. The Board may approve the transfer, sale, or 
14 lease of gambling equipment and supplies by a licensed 
15 owner from or to an affiliate of the licensed owner as long 
16 as the gambling equipment and supplies were initially 
17 acquired from a supplier licensed in Illinois. 


18  (7) Persons licensed under this Act or the Chicago 
19 Casino Development Authority Act shall permit no form of 
20 wagering on
gambling games except as permitted by this Act.


21  (8) Wagers may be received only from a person present 
22 on a licensed
riverboat, in a casino, or at an organization 
23 gaming facility. No person present on a licensed riverboat, 
24 in a casino, or at an organization gaming facility shall 
25 place
or attempt to place a wager on behalf of another 
26 person who is not present
on the riverboat, in a casino, or 
 
 
10000SB0007ham003- 415 -LRB100 06307 SMS 40923 a


1 at the organization gaming facility.


2  (9) Wagering, including gaming authorized under 
3 Section 7.7, shall not be conducted with money or other 
4 negotiable
currency.


5  (10) A person under age 21 shall not be permitted on an 
6 area of a
riverboat or casino where gambling is being 
7 conducted or at an organization gaming facility where 
8 gambling is being conducted, except for a person at least

9 18 years of age who is an employee of the riverboat or 
10 casino gambling operation or gaming operation. No
employee 
11 under age 21 shall perform any function involved in 
12 gambling by
the patrons. No person under age 21 shall be 
13 permitted to make a wager under
this Act or the Chicago 
14 Casino Development Authority Act, and any winnings that are 
15 a result of a wager by a person under age 21, whether or 
16 not paid by a licensee, shall be treated as winnings for 
17 the privilege tax purposes, confiscated, and forfeited to 
18 the State and deposited into the Education Assistance Fund.


19  (11) Gambling excursion cruises are permitted only 
20 when the waterway for
which the riverboat is licensed is 
21 navigable, as determined by
the Board in consultation with 
22 the U.S. Army Corps of Engineers.
This paragraph (11) does 
23 not limit the ability of a licensee to conduct
gambling 
24 authorized under this Act when gambling excursion cruises 
25 are not
permitted.


26  (12) All tokens, chips or electronic cards used to make 
 
 
10000SB0007ham003- 416 -LRB100 06307 SMS 40923 a


1 wagers must be
purchased (i) from a licensed owner or 
2 manager, in the case of a riverboat, either aboard a 
3 riverboat or at
an onshore
facility which has been approved 
4 by the Board and which is located where
the riverboat 
5 docks, (ii) in the case of a casino, from a licensed owner 
6 or licensed casino operator at the casino, or (iii) from an 
7 organization gaming licensee at the organization gaming 
8 facility. The tokens, chips or electronic cards may be

9 purchased by means of an agreement under which the owner, 
10 or manager, or licensed casino operator extends
credit to

11 the patron. Such tokens, chips or electronic cards may be 
12 used
while aboard the riverboat, in the casino, or at the 
13 organization gaming facility only for the purpose of making 
14 wagers on
gambling games.


15  (13) Notwithstanding any other Section of this Act or 
16 the Chicago Casino Development Authority Act, in addition 
17 to the
other licenses authorized under this Act or the 
18 Chicago Casino Development Authority Act, the Board may 
19 issue special event
licenses allowing persons who are not 
20 otherwise licensed to conduct
riverboat gambling to 
21 conduct such gambling on a specified date or series
of 
22 dates. Riverboat gambling under such a license may take 
23 place on a
riverboat not normally used for riverboat 
24 gambling. The Board shall
establish standards, fees and 
25 fines for, and limitations upon, such
licenses, which may 
26 differ from the standards, fees, fines and limitations

 
 
10000SB0007ham003- 417 -LRB100 06307 SMS 40923 a


1 otherwise applicable under this Act or the Chicago Casino 
2 Development Authority Act. All such fees shall be deposited 
3 into
the State Gaming Fund. All such fines shall be 
4 deposited into the
Education Assistance Fund, created by 
5 Public Act 86-0018, of the State
of Illinois.


6  (14) In addition to the above, gambling must be 
7 conducted in accordance
with all rules adopted by the 
8 Board.

9(Source: P.A. 96-1392, eff. 1-1-11.)





10 (230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)



11 Sec. 11.1. Collection of amounts owing under credit 
12agreements. Notwithstanding any applicable statutory provision 
13to the contrary, a
licensed owner, licensed or manager, 
14licensed casino operator, or organization gaming licensee who 
15extends credit to a riverboat gambling patron pursuant
to 
16paragraph (12) of Section 11 Section 11 (a) (12) of this Act is 
17expressly authorized to institute a
cause of action to collect 
18any amounts due and owing under the extension of
credit, as 
19well as the licensed owner's, licensed or manager's, licensed 
20casino operator's, or organization gaming licensee's costs, 
21expenses and reasonable
attorney's
fees incurred in 
22collection.

23(Source: P.A. 93-28, eff. 6-20-03.)





24 (230 ILCS 10/12) (from Ch. 120, par. 2412)



 
 
10000SB0007ham003- 418 -LRB100 06307 SMS 40923 a


1 Sec. 12. Admission tax; fees. 

2 (a) A tax is hereby imposed upon admissions to riverboat 
3and casino gambling facilities riverboats operated by
licensed 
4owners authorized pursuant to this Act and the Chicago Casino 
5Development Authority Act. Until July 1, 2002, the
rate is $2 
6per person admitted. From July 1, 2002 until
July 1, 2003, the 
7rate is $3 per person admitted.
From July 1, 2003 until August 
823, 2005 (the effective date of Public Act 94-673), for a 
9licensee that admitted 1,000,000 persons or
fewer in the 
10previous calendar year, the rate is $3 per person admitted; for 
11a
licensee that admitted more than 1,000,000 but no more than 
122,300,000 persons
in the previous calendar year, the rate is $4 
13per person admitted; and for
a licensee that admitted more than 
142,300,000 persons in the previous calendar
year, the rate is $5 
15per person admitted.
Beginning on August 23, 2005 (the 
16effective date of Public Act 94-673), for a licensee that 
17admitted 1,000,000 persons or
fewer in calendar year 2004, the 
18rate is $2 per person admitted, and for all other
licensees, 
19including licensees that were not conducting gambling 
20operations in 2004, the rate is $3 per person admitted.
This 
21admission tax is imposed upon the
licensed owner conducting 
22gambling.


23  (1) The admission tax shall be paid for each admission, 
24 except that a person who exits a riverboat gambling 
25 facility and reenters that riverboat gambling facility 
26 within the same gaming day shall be subject only to the 
 
 
10000SB0007ham003- 419 -LRB100 06307 SMS 40923 a


1 initial admission tax.


2  (2) (Blank).


3  (3) The riverboat licensee may issue tax-free passes to

4 actual and necessary officials and employees of the 
5 licensee or other
persons actually working on the 
6 riverboat.


7  (4) The number and issuance of tax-free passes is 
8 subject to the rules
of the Board, and a list of all 
9 persons to whom the tax-free passes are
issued shall be 
10 filed with the Board.

11 (a-5) A fee is hereby imposed upon admissions operated by 
12licensed
managers on behalf of the State pursuant to Section 
137.3 at the rates provided
in
this subsection (a-5). For a 
14licensee that
admitted 1,000,000 persons or fewer in the 
15previous calendar year, the rate is
$3 per person admitted; for 
16a licensee that admitted more than 1,000,000 but no
more than 
172,300,000 persons
in the previous calendar year, the rate is $4 
18per person admitted; and for
a licensee that admitted more than 
192,300,000 persons in the previous calendar
year, the rate is $5 
20per person admitted.


21  (1) The admission fee shall be paid for each admission.


22  (2) (Blank).


23  (3) The licensed manager may issue fee-free passes to 
24 actual and necessary
officials and employees of the manager 
25 or other persons actually working on the
riverboat.


26  (4) The number and issuance of fee-free passes is 
 
 
10000SB0007ham003- 420 -LRB100 06307 SMS 40923 a


1 subject to the rules
of the Board, and a list of all 
2 persons to whom the fee-free passes are
issued shall be 
3 filed with the Board.

4 (b) Except as provided in subsection (b-5), from From the 
5tax imposed under subsection (a) and the fee imposed under

6subsection (a-5), a municipality shall receive from the State 
7$1 for each
person embarking on a riverboat docked within the 
8municipality or entering a casino located within the 
9municipality, and a county
shall receive $1 for each person 
10entering a casino or embarking on a riverboat docked within the

11county but outside the boundaries of any municipality. The 
12municipality's or
county's share shall be collected by the 
13Board on behalf of the State and
remitted quarterly by the 
14State, subject to appropriation, to the treasurer of
the unit 
15of local government for deposit in the general fund.

16 (b-5) From the tax imposed under subsection (a) and the fee 
17imposed under subsection (a-5), $1 for each person embarking on 
18a riverboat designated in paragraph (4) of subsection (e-5) of 
19Section 7 shall be divided as follows: $0.70 to the City of 
20Rockford, $0.05 to the City of Loves Park, $0.05 to the Village 
21of Machesney Park, and $0.20 to Winnebago County.
22 The municipality's or county's share shall be collected by 
23the Board on behalf of the State and remitted monthly by the 
24State, subject to appropriation, to the treasurer of the unit 
25of local government for deposit in the general fund. 
26 (c) The licensed owner shall pay the entire admission tax 
 
 
10000SB0007ham003- 421 -LRB100 06307 SMS 40923 a


1to the Board and
the licensed manager or the casino operator 
2licensee shall pay the entire admission fee to the Board.
Such 
3payments shall be made daily. Accompanying each payment shall 
4be a
return on forms provided by the Board which shall include 
5other
information regarding admissions as the Board may 
6require. Failure to
submit either the payment or the return 
7within the specified time may
result in suspension or 
8revocation of the owners or managers license.

9 (c-5) A tax is imposed on admissions to organization gaming 
10facilities at the rate of $3 per person admitted by an 
11organization gaming licensee. The tax is imposed upon the 
12organization gaming licensee.
13  (1) The admission tax shall be paid for each admission, 
14 except that a person who exits an organization gaming 
15 facility and reenters that organization gaming facility 
16 within the same gaming day, as the term "gaming day" is 
17 defined by the Board by rule, shall be subject only to the 
18 initial admission tax. The Board shall establish, by rule, 
19 a procedure to determine whether a person admitted to an 
20 organization gaming facility has paid the admission tax.
21  (2) An organization gaming licensee may issue tax-free 
22 passes to actual and necessary officials and employees of 
23 the licensee and other persons associated with its gaming 
24 operations.
25  (3) The number and issuance of tax-free passes is 
26 subject to the rules of the Board, and a list of all 
 
 
10000SB0007ham003- 422 -LRB100 06307 SMS 40923 a


1 persons to whom the tax-free passes are issued shall be

2 filed with the Board.
3  (4) The organization gaming licensee shall pay the 
4 entire admission tax to the Board.
5 Such payments shall be made daily. Accompanying each 
6payment shall be a return on forms provided by the Board, which 
7shall include other information regarding admission as the 
8Board may require. Failure to submit either the payment or the 
9return within the specified time may result in suspension or 
10revocation of the organization gaming license.
11 From the tax imposed under this subsection (c-5), a 
12municipality other than the Village of Stickney or the City of 
13Collinsville in which an organization gaming facility is 
14located, or if the organization gaming facility is not located 
15within a municipality, then the county in which the 
16organization gaming facility is located, except as otherwise 
17provided in this Section, shall receive, subject to 
18appropriation, $1 for each person who enters the organization 
19gaming facility. For each admission to the organization gaming 
20facility in excess of 1,500,000 in a year, from the tax imposed 
21under this subsection (c-5), the county in which the 
22organization gaming facility is located shall receive, subject 
23to appropriation, $0.30, which shall be in addition to any 
24other moneys paid to the county under this Section.
25 From the tax imposed under this subsection (c-5) on an 
26organization gaming facility located in the Village of 
 
 
10000SB0007ham003- 423 -LRB100 06307 SMS 40923 a


1Stickney, $1 for each person who enters the organization gaming 
2facility shall be distributed as follows, subject to 
3appropriation: $0.24 to the Village of Stickney, $0.49 to the 
4Town of Cicero, $0.05 to the City of Berwyn, and $0.17 to the 
5Stickney Public Health District, and $0.05 to the City of 
6Bridgeview. 
7 From the tax imposed under this subsection (c-5) on an 
8organization gaming facility located in the City of 
9Collinsville, $1 for each person who enters the organization 
10gaming facility shall be distributed as follows, subject to 
11appropriation: $0.45 to the City of Alton, $0.45 to the City of 
12East St. Louis, and $0.10 to the City of Collinsville. 
13 After payments required under this subsection (c-5) have 
14been made, all remaining amounts shall be transferred in equal 
15amounts to the State Construction Account Fund, the Pension 
16Stabilization Fund, and the Common School Fund. 
17 (d) The Board shall administer and collect the admission 
18tax imposed by
this Section, to the extent practicable, in a 
19manner consistent with the
provisions of Sections 4, 5, 5a, 5b, 
205c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a,
6b, 6c, 8, 9 and 10 of the 
21Retailers' Occupation Tax Act and
Section 3-7 of the Uniform 
22Penalty and Interest Act.

23(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)





24 (230 ILCS 10/13) (from Ch. 120, par. 2413)


25 Sec. 13. Wagering tax; rate; distribution. 

 
 
10000SB0007ham003- 424 -LRB100 06307 SMS 40923 a


1 (a) Until January 1, 1998, a tax is imposed on the adjusted 
2gross
receipts received from gambling games authorized under 
3this Act at the rate of
20%.

4 (a-1) From January 1, 1998 until July 1, 2002, a privilege 
5tax is
imposed on persons engaged in the business of conducting 
6riverboat gambling
operations, based on the adjusted gross 
7receipts received by a licensed owner
from gambling games 
8authorized under this Act at the following rates:


9  15% of annual adjusted gross receipts up to and 
10 including $25,000,000;


11  20% of annual adjusted gross receipts in excess of 
12 $25,000,000 but not
exceeding $50,000,000;


13  25% of annual adjusted gross receipts in excess of 
14 $50,000,000 but not
exceeding $75,000,000;


15  30% of annual adjusted gross receipts in excess of 
16 $75,000,000 but not
exceeding $100,000,000;


17  35% of annual adjusted gross receipts in excess of 
18 $100,000,000.

19 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax 
20is imposed on
persons engaged in the business of conducting 
21riverboat gambling operations,
other than licensed managers 
22conducting riverboat gambling operations on behalf
of the 
23State, based on the adjusted gross receipts received by a 
24licensed
owner from gambling games authorized under this Act at 
25the following rates:


26  15% of annual adjusted gross receipts up to and 
 
 
10000SB0007ham003- 425 -LRB100 06307 SMS 40923 a


1 including $25,000,000;


2  22.5% of annual adjusted gross receipts in excess of 
3 $25,000,000 but not
exceeding $50,000,000;


4  27.5% of annual adjusted gross receipts in excess of 
5 $50,000,000 but not
exceeding $75,000,000;


6  32.5% of annual adjusted gross receipts in excess of 
7 $75,000,000 but not
exceeding $100,000,000;


8  37.5% of annual adjusted gross receipts in excess of 
9 $100,000,000 but not
exceeding $150,000,000;


10  45% of annual adjusted gross receipts in excess of 
11 $150,000,000 but not
exceeding $200,000,000;


12  50% of annual adjusted gross receipts in excess of 
13 $200,000,000.

14 (a-3) Beginning July 1, 2003, a privilege tax is imposed on 
15persons engaged
in the business of conducting riverboat 
16gambling operations, other than
licensed managers conducting 
17riverboat gambling operations on behalf of the
State, based on 
18the adjusted gross receipts received by a licensed owner from

19gambling games authorized under this Act at the following 
20rates:


21  15% of annual adjusted gross receipts up to and 
22 including $25,000,000;


23  27.5% of annual adjusted gross receipts in excess of 
24 $25,000,000 but not
exceeding $37,500,000;


25  32.5% of annual adjusted gross receipts in excess of 
26 $37,500,000 but not
exceeding $50,000,000;


 
 
10000SB0007ham003- 426 -LRB100 06307 SMS 40923 a


1  37.5% of annual adjusted gross receipts in excess of 
2 $50,000,000 but not
exceeding $75,000,000;


3  45% of annual adjusted gross receipts in excess of 
4 $75,000,000 but not
exceeding $100,000,000;


5  50% of annual adjusted gross receipts in excess of 
6 $100,000,000 but not
exceeding $250,000,000;


7  70% of annual adjusted gross receipts in excess of 
8 $250,000,000.

9 An amount equal to the amount of wagering taxes collected 
10under this
subsection (a-3) that are in addition to the amount 
11of wagering taxes that
would have been collected if the 
12wagering tax rates under subsection (a-2)
were in effect shall 
13be paid into the Common School Fund.

14 The privilege tax imposed under this subsection (a-3) shall 
15no longer be
imposed beginning on the earlier of (i) July 1, 
162005; (ii) the first date
after June 20, 2003 that riverboat 
17gambling operations are conducted
pursuant to a dormant 
18license; or (iii) the first day that riverboat gambling

19operations are conducted under the authority of an owners 
20license that is in
addition to the 10 owners licenses initially 
21authorized under this Act.
For the purposes of this subsection 
22(a-3), the term "dormant license"
means an owners license that 
23is authorized by this Act under which no
riverboat gambling 
24operations are being conducted on June 20, 2003.

25 (a-4) Beginning on the first day on which the tax imposed 
26under
subsection (a-3) is no longer imposed and ending upon the 
 
 
10000SB0007ham003- 427 -LRB100 06307 SMS 40923 a


1imposition of the privilege tax under subsection (a-5) of this 
2Section, a privilege tax is imposed on persons
engaged in the 
3business of conducting riverboat gambling operations, other

4than licensed managers conducting riverboat gambling 
5operations on behalf of
the State, based on the adjusted gross 
6receipts received by a licensed owner
from gambling games 
7authorized under this Act at the following rates:


8  15% of annual adjusted gross receipts up to and 
9 including $25,000,000;


10  22.5% of annual adjusted gross receipts in excess of 
11 $25,000,000 but not
exceeding $50,000,000;


12  27.5% of annual adjusted gross receipts in excess of 
13 $50,000,000 but not
exceeding $75,000,000;


14  32.5% of annual adjusted gross receipts in excess of 
15 $75,000,000 but not
exceeding $100,000,000;


16  37.5% of annual adjusted gross receipts in excess of 
17 $100,000,000 but not
exceeding $150,000,000;


18  45% of annual adjusted gross receipts in excess of 
19 $150,000,000 but not
exceeding $200,000,000;


20  50% of annual adjusted gross receipts in excess of 
21 $200,000,000.

22 For the imposition of the privilege tax in this subsection 
23(a-4), amounts paid pursuant to item (1) of subsection (b) of 
24Section 56 of the Illinois Horse Racing Act of 1975 shall not 
25be included in the determination of adjusted gross receipts. 
26 (a-4.5) Beginning on the first day of the calendar month 
 
 
10000SB0007ham003- 428 -LRB100 06307 SMS 40923 a


1immediately following 24 months after the effective date of 
2this amendatory Act of the 100th General Assembly and ending on 
3the date gambling operations commence at a permanent facility 
4with respect to the owners license authorized under paragraph 
5(1) of subsection (e-5) of Section 7 of this Act, a privilege 
6tax is imposed on persons engaged in the business of conducting 
7gambling operations, other than licensed managers conducting 
8riverboat gambling operations on behalf of the State, based on 
9the adjusted gross receipts received by such licensee from the 
10gambling games authorized under this Act. The privilege tax 
11shall be the average of the privilege tax, in terms of dollar 
12amounts, calculated pursuant to subsection (a-4) and 
13subsection (a-5). 
14 (a-5) Beginning on January 1 following the opening of the 
15permanent casino at which gambling operations are conducted 
16pursuant to the Chicago Casino Development Authority Act, a 
17privilege tax is imposed on persons engaged in the business of 
18conducting gambling operations, other than licensed managers 
19conducting riverboat gambling operations on behalf of the 
20State, based on the adjusted gross receipts received by such 
21licensee from the gambling games authorized under this Act and 
22the Chicago Casino Development Authority Act. The privilege tax 
23for all gambling games other than table games, including, but 
24not limited to, slot machines, video game of chance gambling, 
25and electronic gambling games shall be at the following rates:
26  10% of annual adjusted gross receipts up to and 
 
 
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1 including $25,000,000;
2  17.5% of annual adjusted gross receipts in excess of 
3 $25,000,000 but not exceeding $50,000,000;
4  22.5% of annual adjusted gross receipts in excess of 
5 $50,000,000 but not exceeding $75,000,000;
6  27.5% of annual adjusted gross receipts in excess of 
7 $75,000,000 but not exceeding $100,000,000;
8  32.5% of annual adjusted gross receipts in excess of 
9 $100,000,000 but not exceeding $150,000,000;
10  35% of annual adjusted gross receipts in excess of 
11 $150,000,000 but not exceeding $200,000,000;
12  40% of annual adjusted gross receipts in excess of 
13 $200,000,000 but not exceeding $300,000,000;
14  30% of annual adjusted gross receipts in excess of 
15 $300,000,000 but not exceeding $350,000,000;
16  20% of annual adjusted gross receipts in excess of 
17 $350,000,000, but not exceeding $800,000,000;
18  50% of annual adjusted gross receipts in excess of 
19 $800,000,000.
20 The privilege tax for table games shall be at the following 
21rates:
22  10% of annual adjusted gross receipts up to and 
23 including $25,000,000;
24  17.5% of annual adjusted gross receipts in excess of 
25 $25,000,000 but not exceeding $50,000,000;
26  22.5% of annual adjusted gross receipts in excess of 
 
 
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1 $50,000,000 but not exceeding $70,000,000;
2  16% of annual adjusted gross receipts in excess of 
3 $70,000,000.
4 For the imposition of the privilege tax in this subsection 
5(a-5), amounts paid pursuant to item (1) of subsection (b) of 
6Section 56 of the Illinois Horse Racing Act of 1975 shall not 
7be included in the determination of adjusted gross receipts.
8 (a-6) From the effective date of this amendatory Act of the 
9100th General Assembly until June 30, 2022, an owners licensee 
10that conducted gambling operations prior to January 1, 2011 
11shall receive a dollar-for-dollar credit against the tax 
12imposed under this Section for any renovation or construction 
13costs paid by the owners licensee, but in no event shall the 
14credit exceed $2,000,000.
15 Additionally, from the effective date of this amendatory 
16Act of the 100th General Assembly until December 31, 2021, an 
17owners licensee that (i) is located within 15 miles of the 
18Missouri border, and (ii) has at least 3 riverboats, casinos, 
19or their equivalent within a 45-mile radius, may be authorized 
20to relocate to a new location with the approval of both the 
21unit of local government designated as the home dock and the 
22Board, so long as the new location is within the same unit of 
23local government and no more than 3 miles away from its 
24original location. Such owners licensee shall receive a credit 
25against the tax imposed under this Section equal to 8% of the 
26total project costs, as approved by the Board, for any 
 
 
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1renovation or construction costs paid by the owners licensee 
2for the construction of the new facility, provided that the new 
3facility is operational by July 1, 2021. In determining whether 
4or not to approve a relocation, the Board must consider the 
5extent to which the relocation will diminish the gaming 
6revenues received by other Illinois gaming facilities.
7 (a-7) Beginning in the initial adjustment year and through 
8the final adjustment year, if the total obligation imposed 
9pursuant to either subsection (a-5) or (a-6) will result in an 
10owners licensee receiving less after-tax adjusted gross 
11receipts than it received in calendar year 2017, then the total 
12amount of privilege taxes that the owners licensee is required 
13to pay for that calendar year shall be reduced to the extent 
14necessary so that the after-tax adjusted gross receipts in that 
15calendar year equals the after-tax adjusted gross receipts in 
16calendar year 2017, but the privilege tax reduction shall not 
17exceed the annual adjustment cap. If pursuant to this 
18subsection (a-7), the total obligation imposed pursuant to 
19either subsection (a-5) or (a-6) shall be reduced, then the 
20owners licensee shall not receive a refund from the State at 
21the end of the subject calendar year but instead shall be able 
22to apply that amount as a credit against any payments it owes 
23to the State in the following calendar year to satisfy its 
24total obligation under either subsection (a-5) or (a-6). The 
25credit for the final adjustment year shall occur in the 
26calendar year following the final adjustment year. 
 
 
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1 If an owners licensee that conducted gambling operations 
2prior to January 1, 2018 expands its riverboat or casino, 
3including, but not limited to, with respect to its gaming 
4floor, additional non-gaming amenities such as restaurants, 
5bars, and hotels and other additional facilities, and incurs 
6construction and other costs related to such expansion from the 
7effective date of this amendatory Act of the 100th General 
8Assembly until the 5th anniversary of the effective date of 
9this amendatory Act of the 100th General Assembly, then for 
10each $15,000,000 spent for any such construction or other costs 
11related to expansion paid by the owners licensee, the final 
12adjustment year shall be extended by one year and the annual 
13adjustment cap shall increase by 0.2% of adjusted gross 
14receipts during each calendar year until and including the 
15final adjustment year. No further modifications to the final 
16adjustment year or annual adjustment cap shall be made after 
17$75,000,000 is incurred in construction or other costs related 
18to expansion so that the final adjustment year shall not extend 
19beyond the 9th calendar year after the initial adjustment year, 
20not including the initial adjustment year, and the annual 
21adjustment cap shall not exceed 4% of adjusted gross receipts 
22in a particular calendar year. Construction and other costs 
23related to expansion shall include all project related costs, 
24including, but not limited to, all hard and soft costs, 
25financing costs, on or off-site ground, road or utility work, 
26cost of gaming equipment and all other personal property, 
 
 
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1initial fees assessed for each incremental gaming position, and 
2the cost of incremental land acquired for such expansion. Soft 
3costs shall include, but not be limited to, legal fees, 
4architect, engineering and design costs, other consultant 
5costs, insurance cost, permitting costs, and pre-opening costs 
6related to the expansion, including, but not limited to, any of 
7the following: marketing, real estate taxes, personnel, 
8training, travel and out-of-pocket expenses, supply, 
9inventory, and other costs, and any other project related soft 
10costs. 
11 Notwithstanding any other provision of this subsection 
12(a-7), this subsection (a-7) does not apply to an owners 
13licensee unless such owners licensee spends at least 
14$15,000,000 on construction and other costs related to its 
15expansion, excluding the initial fees assessed for each 
16incremental gaming position. 
17 This subsection (a-7) does not apply to owners licensees

18authorized pursuant to subsection (e-5) of Section 7 of this

19Act.
20 For purposes of this subsection (a-7):
21 "Initial adjustment year" means the year commencing on 
22January 1 of the calendar year immediately following the 
23earlier of the following: 
24  (1) the commencement of gambling operations, either in 
25 a temporary or permanent facility, with respect to the 
26 owners license authorized under paragraph (1) of 
 
 
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1 subsection (e-5) of Section 7 of this Act; or
2  (2) 36 months after the effective date of this 
3 amendatory Act of the 100th General Assembly, provided the 
4 initial adjustment year shall not commence earlier than 24 
5 months after the effective date of this amendatory Act of 
6 the 100th General Assembly. 
7 "Final adjustment year" means the 4th calendar year after 
8the initial adjustment year, not including the initial 
9adjustment year, and as may be extended further as described in 
10this subsection (a-7). 
11 "After-tax adjusted gross receipts" means, for calendar 
12year 2017, the adjusted
gross receipts less privilege taxes 
13paid to the State and for
subsequent calendar years, the 
14adjusted gross receipts less
privilege taxes paid to the State, 
15then divided by the owners
licensee's average number of gaming 
16positions operating in that
calendar year and then multiplied 
17by the owners licensee's
average number of gaming positions 
18operating in calendar year
2017. 
19 "Annual adjustment cap" means 3% of adjusted gross receipts 
20in a particular calendar year, and as may be increased further 
21as otherwise described in this subsection (a-7). 
22 (a-8) Riverboat gambling operations conducted by a 
23licensed manager on
behalf of the State are not subject to the 
24tax imposed under this Section.

25 (a-9) Beginning on January 1, 2019, the calculation of 
26gross receipts or adjusted gross receipts, for the purposes of 
 
 
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1this Section, for a riverboat, a casino, or an organization 
2gaming facility shall not include the dollar amount of 
3non-cashable vouchers, coupons, and electronic promotions 
4redeemed by wagerers upon the riverboat, in the casino, or in 
5the organization gaming facility up to and including an amount 
6not to exceed 30% of a riverboat's, a casino's, or an 
7organization gaming facility's adjusted gross receipts.
8 The Illinois Gaming Board shall submit to the General 
9Assembly a comprehensive report no later than March 31, 2022 
10detailing, at a minimum, the effect of removing non-cashable 
11vouchers, coupons, and electronic promotions from this 
12calculation on net gaming revenues to the State in calendar 
13years 2019 through 2021, the increase or reduction in wagerers 
14as a result of removing non-cashable vouchers, coupons, and 
15electronic promotions from this calculation, the effect of the 
16tax rates in subsection (a-5) on net gaming revenues to this 
17State, and proposed modifications to the calculation. 
18 (a-10) The taxes imposed by this Section shall be paid by 
19the licensed
owner or the organization gaming licensee to the 
20Board not later than 5:00 o'clock p.m. of the day after the day

21when the wagers were made.

22 (a-15) If the privilege tax imposed under subsection (a-3) 
23is no longer imposed pursuant to item (i) of the last paragraph 
24of subsection (a-3), then by June 15 of each year, each owners 
25licensee, other than an owners licensee that admitted 1,000,000 
26persons or
fewer in calendar year 2004, must, in addition to 
 
 
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1the payment of all amounts otherwise due under this Section, 
2pay to the Board a reconciliation payment in the amount, if 
3any, by which the licensed owner's base amount exceeds the 
4amount of net privilege tax paid by the licensed owner to the 
5Board in the then current State fiscal year. A licensed owner's 
6net privilege tax obligation due for the balance of the State 
7fiscal year shall be reduced up to the total of the amount paid 
8by the licensed owner in its June 15 reconciliation payment. 
9The obligation imposed by this subsection (a-15) is binding on 
10any person, firm, corporation, or other entity that acquires an 
11ownership interest in any such owners license. The obligation 
12imposed under this subsection (a-15) terminates on the earliest 
13of: (i) July 1, 2007, (ii) the first day after the effective 
14date of this amendatory Act of the 94th General Assembly that 
15riverboat gambling operations are conducted pursuant to a 
16dormant license, (iii) the first day that riverboat gambling 
17operations are conducted under the authority of an owners 
18license that is in addition to the 10 owners licenses initially 
19authorized under this Act, or (iv) the first day that a 
20licensee under the Illinois Horse Racing Act of 1975 conducts 
21gaming operations with slot machines or other electronic gaming 
22devices. The Board must reduce the obligation imposed under 
23this subsection (a-15) by an amount the Board deems reasonable 
24for any of the following reasons: (A) an act or acts of God, 
25(B) an act of bioterrorism or terrorism or a bioterrorism or 
26terrorism threat that was investigated by a law enforcement 
 
 
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1agency, or (C) a condition beyond the control of the owners 
2licensee that does not result from any act or omission by the 
3owners licensee or any of its agents and that poses a hazardous 
4threat to the health and safety of patrons. If an owners 
5licensee pays an amount in excess of its liability under this 
6Section, the Board shall apply the overpayment to future 
7payments required under this Section.
8 For purposes of this subsection (a-15):
9 "Act of God" means an incident caused by the operation of 
10an extraordinary force that cannot be foreseen, that cannot be 
11avoided by the exercise of due care, and for which no person 
12can be held liable.

13 "Base amount" means the following:
14  For a riverboat in Alton, $31,000,000.

15  For a riverboat in East Peoria, $43,000,000.

16  For the Empress riverboat in Joliet, $86,000,000.

17  For a riverboat in Metropolis, $45,000,000.

18  For the Harrah's riverboat in Joliet, $114,000,000.

19  For a riverboat in Aurora, $86,000,000.

20  For a riverboat in East St. Louis, $48,500,000.

21  For a riverboat in Elgin, $198,000,000.

22 "Dormant license" has the meaning ascribed to it in 
23subsection (a-3).

24 "Net privilege tax" means all privilege taxes paid by a 
25licensed owner to the Board under this Section, less all 
26payments made from the State Gaming Fund pursuant to subsection 
 
 
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1(b) of this Section.
2 The changes made to this subsection (a-15) by Public Act 
394-839 are intended to restate and clarify the intent of Public 
4Act 94-673 with respect to the amount of the payments required 
5to be made under this subsection by an owners licensee to the 
6Board.

7 (b) Until January 1, 1998, 25% of the tax revenue deposited 
8in the State
Gaming Fund under this Section shall be paid, 
9subject to appropriation by the
General Assembly, to the unit 
10of local government which is designated as the
home dock of the 
11riverboat. Beginning January 1, 1998, from the tax revenue from 
12riverboat or casino gambling
deposited in the State Gaming Fund 
13under this Section, an amount equal to 5% of
adjusted gross 
14receipts generated by a riverboat or a casino other than a 
15riverboat designated in paragraph (3) or (4) of subsection 
16(e-5) of Section 7, shall be paid monthly, subject
to 
17appropriation by the General Assembly, to the unit of local 
18government in which the casino is located or that
is designated 
19as the home dock of the riverboat. From the tax revenue

20deposited in the State Gaming Fund pursuant to riverboat or 
21casino gambling operations
conducted by a licensed manager on 
22behalf of the State, an amount equal to 5%
of adjusted gross 
23receipts generated pursuant to those riverboat or casino 
24gambling
operations shall be paid monthly,
subject to 
25appropriation by the General Assembly, to the unit of local

26government that is designated as the home dock of the riverboat 
 
 
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1upon which
those riverboat gambling operations are conducted or 
2in which the casino is located. From the tax revenue from 
3riverboat or casino gambling deposited in the State Gaming Fund 
4under this Section, an amount equal to 5% of the adjusted gross 
5receipts generated by a riverboat designated in paragraph (3) 
6of subsection (e-5) of Section 7 shall be divided and remitted 
7monthly, subject to appropriation, as follows: 75% to Waukegan, 
810% to Park City, and 15% to North Chicago. From the tax 
9revenue from riverboat or casino gambling deposited in the 
10State Gaming Fund under this Section, an amount equal to 5% of 
11the adjusted gross receipts generated by a riverboat designated 
12in paragraph (4) of subsection (e-5) of Section 7 shall be 
13remitted monthly, subject to appropriation, as follows: 70% to 
14the City of Rockford, 5% to the City of Loves Park, 5% to the 
15Village of Machesney, and 20% to Winnebago County. Units of 
16local government may refund any portion of the payment that 
17they receive pursuant to this subsection (b) to the riverboat 
18or casino.

19 (b-5) Beginning on the effective date of this amendatory 
20Act of the 100th General Assembly, from the tax revenue

21deposited in the State Gaming Fund under this Section, an 
22amount equal to 3% of
adjusted gross receipts generated by each 
23organization gaming facility located outside Madison County 
24shall be paid monthly, subject
to appropriation by the General 
25Assembly, to a municipality other than the Village of Stickney 
26in which each organization gaming facility is located or, if 
 
 
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1the organization gaming facility is not located within a 
2municipality, to the county in which the organization gaming 
3facility is located, except as otherwise provided in this 
4Section. From the tax revenue deposited in the State Gaming 
5Fund under this Section, an amount equal to 3% of adjusted 
6gross receipts generated by an organization gaming facility 
7located in the Village of Stickney shall be paid monthly, 
8subject to appropriation by the General Assembly, as follows: 
925% to the Village of Stickney, 5% to the City of Berwyn, 50% 
10to the Town of Cicero, and 20% to the Stickney Public Health 
11District.
12 From the tax revenue deposited in the State Gaming Fund 
13under this Section, an amount equal to 5% of adjusted gross 
14receipts generated by an organization gaming facility located 
15in the City of Collinsville shall be paid monthly, subject to 
16appropriation by the General Assembly, as follows: 45% to the 
17City of Alton, 45% to the City of East St. Louis, and 10% to the 
18City of Collinsville. 
19 Municipalities and counties may refund any portion of the 
20payment that they receive pursuant to this subsection (b-5) to 
21the organization gaming facility. 
22 (b-6) Beginning on the effective date of this amendatory 
23Act of the 100th General Assembly, from the tax revenue 
24deposited in the State Gaming Fund under this Section, an 
25amount equal to 2% of adjusted gross receipts generated by an 
26organization gaming facility located outside Madison County 
 
 
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1shall be paid monthly, subject to appropriation by the General 
2Assembly, to the county in which the organization gaming 
3facility is located for the purposes of its criminal justice 
4system or health care system. 
5 Counties may refund any portion of the payment that they 
6receive pursuant to this subsection (b-6) to the organization 
7gaming facility. 
8 (c) Appropriations, as approved by the General Assembly, 
9may be made
from the State Gaming Fund to the Board (i) for the 
10administration and enforcement of this Act, the Chicago Casino 
11Development Authority Act, and the Video Gaming Act, (ii) for 
12distribution to the Department of State Police and to the 
13Department of Revenue for the enforcement of this Act, the 
14Chicago Casino Development Authority Act, and the Video Gaming 
15Act, and (iii) to the
Department of Human Services for the 
16administration of programs to treat
problem gambling. The 
17Board's annual appropriations request must separately state 
18its funding needs for the regulation of gaming authorized under 
19Section 7.7, riverboat gaming, casino gaming within the City of 
20Chicago, and video gaming. From the tax revenue deposited in 
21the Gaming Facilities Fee Revenue Fund, the first $50,000,000 
22shall be paid to the Board, subject to appropriation, for the 
23administration and enforcement of the provisions of this 
24amendatory Act of the 100th General Assembly.

25 (c-3) Appropriations, as approved by the General Assembly, 
26may be made from the tax revenue deposited into the State 
 
 
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1Gaming Fund from organization gaming licensees pursuant to this 
2Section for the administration and enforcement of this Act. 

3 (c-4) After payments required under subsections (b), 
4(b-5), (b-6), (c), and (c-3) have been made from the tax 
5revenue from organization gaming licensees deposited into the 
6State Gaming Fund under this Section, all remaining amounts 
7from gaming licensees shall be transferred in equal amounts to 
8the State Construction Account Fund, the Pension Stabilization 
9Fund, and the Common School Fund.
10 (c-5) Before May 26, 2006 (the effective date of Public Act 
1194-804) and beginning on the effective date of this amendatory 
12Act of the 95th General Assembly, unless any organization 
13licensee under the Illinois Horse Racing Act of 1975 begins to 
14operate a slot machine or video game of chance under the 
15Illinois Horse Racing Act of 1975 or this Act, after the 
16payments required under subsections (b) and (c) have been
made, 
17an amount equal to 15% of the adjusted gross receipts of (1) an 
18owners
licensee that relocates pursuant to Section 11.2,
(2) an 
19owners licensee
conducting riverboat gambling operations

20pursuant to an
owners license that is initially issued after 
21June
25, 1999,
or (3) the first
riverboat gambling operations 
22conducted by a licensed manager on behalf of the
State under 
23Section 7.3,
whichever comes first, shall be paid from the 
24State
Gaming Fund into the Horse Racing Equity Fund.

25 (c-10) Each year the General Assembly shall appropriate 
26from the General
Revenue Fund to the Education Assistance Fund 
 
 
10000SB0007ham003- 443 -LRB100 06307 SMS 40923 a


1an amount equal to the amount
paid into the Horse Racing Equity 
2Fund pursuant to subsection (c-5) in the
prior calendar year.

3 (c-15) After the payments required under subsections (b), 
4(c), and (c-5)
have been made, an amount equal to 2% of the 
5adjusted gross receipts of (1)
an owners licensee that 
6relocates pursuant to Section 11.2, (2) an owners
licensee 
7conducting riverboat gambling operations pursuant to
an
owners 
8license that is initially issued after June 25, 1999,
or (3) 
9the first
riverboat gambling operations conducted by a licensed 
10manager on behalf of the
State under Section 7.3,
whichever 
11comes first, shall be paid, subject to appropriation
from the 
12General Assembly, from the State Gaming Fund to each home rule

13county with a population of over 3,000,000 inhabitants for the 
14purpose of
enhancing the county's criminal justice system.

15 (c-20) Each year the General Assembly shall appropriate 
16from the General
Revenue Fund to the Education Assistance Fund 
17an amount equal to the amount
paid to each home rule county 
18with a population of over 3,000,000 inhabitants
pursuant to 
19subsection (c-15) in the prior calendar year.

20 (c-25) On July 1, 2013 and each July 1 thereafter, 
21$1,600,000 shall be transferred from the State Gaming Fund to 
22the Chicago State University Education Improvement Fund.

23 (c-30) On July 1, 2013 or as soon as possible thereafter, 
24$92,000,000 shall be transferred from the State Gaming Fund to 
25the School Infrastructure Fund and $23,000,000 shall be 
26transferred from the State Gaming Fund to the Horse Racing 
 
 
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1Equity Fund. 
2 (c-35) Beginning on July 1, 2013, in addition to any amount 
3transferred under subsection (c-30) of this Section, 
4$5,530,000 shall be transferred monthly from the State Gaming 
5Fund to the School Infrastructure Fund. 
6 (d) From time to time, the
Board shall transfer the 
7remainder of the funds
generated by this Act in equal amounts 
8to the State Construction Account Fund, the Pension 
9Stabilization Fund, and the Common School Fund into the 
10Education
Assistance Fund, created by Public Act 86-0018, of 
11the State of Illinois.

12 (e) Nothing in this Act shall prohibit the unit of local 
13government
designated as the home dock of the riverboat from 
14entering into agreements
with other units of local government 
15in this State or in other states to
share its portion of the 
16tax revenue.

17 (f) To the extent practicable, the Board shall administer 
18and collect the
wagering taxes imposed by this Section in a 
19manner consistent with the
provisions of Sections 4, 5, 5a, 5b, 
205c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
6c, 8, 9, and 10 of the 
21Retailers' Occupation Tax Act and Section 3-7 of the
Uniform 
22Penalty and Interest Act.

23(Source: P.A. 98-18, eff. 6-7-13.)





24 (230 ILCS 10/14) (from Ch. 120, par. 2414)



25 Sec. 14. Licensees - Records - Reports - Supervision. 

 
 
10000SB0007ham003- 445 -LRB100 06307 SMS 40923 a


1 (a) Licensed owners and organization gaming licensees A 
2licensed owner shall keep his books and records so as to 
3clearly
show the following:

4 (1) The amount received daily from admission fees.

5 (2) The total amount of gross receipts.

6 (3) The total amount of the adjusted gross receipts.

7 (b) Licensed owners and organization gaming licensees The 
8licensed owner shall furnish to the Board reports and 
9information as
the Board may require with respect to its 
10activities on forms designed and
supplied for such purpose by 
11the Board.

12 (c) The books and records kept by a licensed owner as 
13provided by this Section are
public records and the 
14examination, publication, and dissemination of the
books and 
15records are governed by the provisions of The Freedom of 
16Information Act.

17(Source: P.A. 86-1029.)





18 (230 ILCS 10/15) (from Ch. 120, par. 2415)


19 Sec. 15. Audit of Licensee Operations. Annually, the 
20licensed owner, or manager, or organization gaming licensee 
21shall
transmit to the Board an audit of the financial 
22transactions
and condition of the licensee's or manager's total 
23operations. Additionally, within 90 days after the end of each 
24quarter of each fiscal year, the licensed owner, or manager, or 
25organization gaming licensee shall transmit to the Board a 
 
 
10000SB0007ham003- 446 -LRB100 06307 SMS 40923 a


1compliance report on engagement procedures determined by the 
2Board. All audits and compliance engagements shall be
conducted 
3by certified public accountants selected by the Board. Each

4certified public accountant must be registered in the State of

5Illinois under the Illinois Public Accounting Act.
The 
6compensation for each certified public accountant shall be paid

7directly by the licensed owner, or manager, or organization 
8gaming licensee to the certified public
accountant.

9(Source: P.A. 96-1392, eff. 1-1-11.)





10 (230 ILCS 10/16) (from Ch. 120, par. 2416)



11 Sec. 16. Annual Report of Board. The Board shall make an

12annual report to the Governor, for the period ending December 
1331 of each
year. Included in the report shall be an account of 
14the Board
actions, its financial position and results of 
15operation under this Act and the Chicago Casino Development 
16Authority Act,
the practical results attained under this Act 
17and the Chicago Casino Development Authority Act and any 
18recommendations for
legislation which the Board deems 
19advisable.

20(Source: P.A. 86-1029.)





21 (230 ILCS 10/17) (from Ch. 120, par. 2417)


22 Sec. 17. Administrative Procedures. The Illinois 
23Administrative Procedure
Act shall apply to all administrative 
24rules and procedures of the Board under
this Act, the Chicago 
 
 
10000SB0007ham003- 447 -LRB100 06307 SMS 40923 a


1Casino Development Authority Act, and or the Video Gaming Act, 
2except that: (1) subsection (b) of Section 5-10 of the Illinois

3Administrative Procedure Act does not apply to final orders, 
4decisions and
opinions of the Board; (2) subsection (a) of 
5Section 5-10 of the Illinois
Administrative Procedure Act does 
6not apply to forms established by the Board
for use under this 
7Act, the Chicago Casino Development Authority Act, and or the 
8Video Gaming Act; (3) the provisions of Section 10-45 of the 
9Illinois
Administrative Procedure Act regarding proposals for 
10decision are excluded
under this Act, the Chicago Casino 
11Development Authority Act, and or the Video Gaming Act; and (4) 
12the provisions of subsection (d) of Section
10-65 of the 
13Illinois Administrative Procedure Act do not apply so as to

14prevent summary suspension of any license pending revocation or 
15other action,
which suspension shall remain in effect unless 
16modified by the Board or unless
the Board's decision is 
17reversed on the merits upon judicial review.

18(Source: P.A. 96-34, eff. 7-13-09.)





19 (230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)



20 Sec. 17.1. Judicial Review. 

21 (a) Jurisdiction and venue for the judicial
review of a 
22final order of the Board relating to licensed owners, 
23suppliers, organization gaming licensees, and or
special event 
24licenses is vested in the Appellate Court of
the judicial 
25district in which Sangamon County is located. A
petition for 
 
 
10000SB0007ham003- 448 -LRB100 06307 SMS 40923 a


1judicial review of a final order of the Board must be filed in

2the Appellate Court, within 35 days from the date that a copy 
3of the decision
sought to be reviewed was served upon the party 
4affected by the decision.

5 (b) Judicial review of all other final orders of the Board 
6shall be
conducted in accordance with the Administrative Review 
7Law.

8(Source: P.A. 88-1.)





9 (230 ILCS 10/18) (from Ch. 120, par. 2418)



10 Sec. 18. Prohibited Activities - Penalty. 

11 (a) A person is guilty of a Class A misdemeanor for doing 
12any of the
following:


13  (1) Conducting gambling where wagering
is used or to be 
14 used
without a license issued by the Board.


15  (2) Conducting gambling where wagering
is permitted 
16 other
than in the manner specified by Section 11.

17 (b) A person is guilty of a Class B misdemeanor for doing 
18any of the
following:


19  (1) permitting a person under 21 years to make a wager; 
20 or


21  (2) violating paragraph (12) of subsection (a) of 
22 Section 11 of this Act.

23 (c) A person wagering or accepting a wager at any location 
24outside the
riverboat, casino, or organization gaming facility 
25in violation of paragraph is subject to the penalties in 
 
 
10000SB0007ham003- 449 -LRB100 06307 SMS 40923 a


1paragraphs (1) or (2) of
subsection (a) of Section 28-1 of the 
2Criminal Code of 2012 is subject to the penalties provided in 
3that Section.

4 (d) A person commits a Class 4 felony and, in addition, 
5shall be barred
for life from gambling operations riverboats 
6under the jurisdiction of the
Board, if the person does any of 
7the following:


8  (1) Offers, promises, or gives anything of value or 
9 benefit to a person
who is connected with a riverboat or 
10 casino owner or organization gaming licensee, including, 
11 but
not limited to, an officer or employee of a licensed 
12 owner, organization gaming licensee, or holder of an

13 occupational license pursuant to an agreement or 
14 arrangement or with the
intent that the promise or thing of 
15 value or benefit will influence the
actions of the person 
16 to whom the offer, promise, or gift was made in order
to 
17 affect or attempt to affect the outcome of a gambling game, 
18 or to
influence official action of a member of the Board.


19  (2) Solicits or knowingly accepts or receives a promise 
20 of anything of
value or benefit while the person is 
21 connected with a riverboat, casino, or organization gaming 
22 facility,
including, but not limited to, an officer or 
23 employee of a licensed owner or organization gaming 
24 licensee,
or the holder of an occupational license, 
25 pursuant to an understanding or
arrangement or with the 
26 intent that the promise or thing of value or
benefit will 
 
 
10000SB0007ham003- 450 -LRB100 06307 SMS 40923 a


1 influence the actions of the person to affect or attempt to

2 affect the outcome of a gambling game, or to influence 
3 official action of a
member of the Board.


4  (3) Uses or possesses with the intent to use a device 
5 to assist:


6   (i) In projecting the outcome of the game.


7   (ii) In keeping track of the cards played.


8   (iii) In analyzing the probability of the 
9 occurrence of an event
relating to the gambling game.


10   (iv) In analyzing the strategy for playing or 
11 betting to be used in the
game except as permitted by 
12 the Board.


13  (4) Cheats at a gambling game.


14  (5) Manufactures, sells, or distributes any cards, 
15 chips, dice, game or
device which is intended to be used to 
16 violate any provision of this Act or the Chicago Casino 
17 Development Authority Act.


18  (6) Alters or misrepresents the outcome of a gambling 
19 game on which
wagers have been made after the outcome is 
20 made sure but before it is
revealed to the players.


21  (7) Places a bet after acquiring knowledge, not 
22 available to all players,
of the outcome of the gambling 
23 game which is subject of the bet or to aid a
person in 
24 acquiring the knowledge for the purpose of placing a bet

25 contingent on that outcome.


26  (8) Claims, collects, or takes, or attempts to claim, 
 
 
10000SB0007ham003- 451 -LRB100 06307 SMS 40923 a


1 collect, or take,
money or anything of value in or from the 
2 gambling games, with intent to
defraud, without having made 
3 a wager contingent on winning a gambling game,
or claims, 
4 collects, or takes an amount of money or thing of value of

5 greater value than the amount won.


6  (9) Uses counterfeit chips or tokens in a gambling 
7 game.


8  (10) Possesses any key or device designed for the 
9 purpose of opening,
entering, or affecting the operation of 
10 a gambling game, drop box, or an
electronic or mechanical 
11 device connected with the gambling game or for
removing 
12 coins, tokens, chips or other contents of a gambling game. 
13 This
paragraph (10) does not apply to a gambling licensee 
14 or employee of a
gambling licensee acting in furtherance of 
15 the employee's employment.

16 (e) The possession of more than one of the devices 
17described in
subsection (d), paragraphs (3), (5), or (10) 
18permits a rebuttable
presumption that the possessor intended to 
19use the devices for cheating.

20 (f) A person under the age of 21 who, except as authorized 
21under paragraph (10) of Section 11, enters upon a riverboat or 
22in a casino or organization gaming facility commits a petty 
23offense and is subject to a fine of not less than $100 or more 
24than $250 for a first offense and of not less than $200 or more 
25than $500 for a second or subsequent offense. 
26 An action to prosecute any crime occurring on a riverboat

 
 
10000SB0007ham003- 452 -LRB100 06307 SMS 40923 a


1shall be tried in the county of the dock at which the riverboat 
2is based. An action to prosecute any crime occurring in a 
3casino or organization gaming facility
shall be tried in the 
4county in which the casino or organization gaming facility is 
5located.

6(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)


7 (230 ILCS 10/18.1)
8 Sec. 18.1. Distribution of certain fines. If a fine is 
9imposed on an owners owner licensee or an organization gaming 
10licensee for knowingly sending marketing or promotional 
11materials to any person placed on the self-exclusion list, then 
12the Board shall distribute an amount equal to 15% of the fine 
13imposed to the unit of local government in which the casino, 
14riverboat, or organization gaming facility is located for the 
15purpose of awarding grants to non-profit entities that assist 
16gambling addicts.

17(Source: P.A. 96-224, eff. 8-11-09.)




18 (230 ILCS 10/19) (from Ch. 120, par. 2419)



19 Sec. 19. Forfeiture of property. 
20 (a) Except as provided in
subsection (b), any riverboat, 
21casino, or organization gaming facility
used for the conduct of 
22gambling games in violation of this Act shall be
considered a 
23gambling place in violation of Section 28-3 of the Criminal

24Code of 2012. Every gambling device found on
a riverboat, in a 
 
 
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1casino, or at an organization gaming facility operating 
2gambling games in violation of this
Act and every slot machine 
3and video game of chance found at an organization gaming 
4facility operating gambling games in violation of this Act or 
5the Chicago Casino Development Authority Act shall be subject 
6to seizure, confiscation and destruction as provided
in Section 
728-5 of the Criminal Code of 2012.

8 (b) It is not a violation of this Act for a riverboat or 
9other
watercraft which is licensed for gaming by a contiguous 
10state to dock on
the shores of this State if the municipality 
11having jurisdiction of the
shores, or the county in the case of 
12unincorporated areas, has granted
permission for docking and no 
13gaming is conducted on the riverboat or other
watercraft while 
14it is docked on the shores of this State.
No gambling device 
15shall be subject to seizure, confiscation or
destruction if the 
16gambling device is located on a riverboat or other
watercraft 
17which is licensed for gaming by a contiguous state and which is

18docked on the shores of this State if the municipality having 
19jurisdiction
of the shores, or the county in the case of 
20unincorporated areas, has
granted permission for docking and no

21gaming is conducted on the riverboat or other watercraft while 
22it is docked on
the shores of this State.

23(Source: P.A. 97-1150, eff. 1-25-13.)





24 (230 ILCS 10/20) (from Ch. 120, par. 2420)



25 Sec. 20. Prohibited activities - civil penalties. Any 
 
 
10000SB0007ham003- 454 -LRB100 06307 SMS 40923 a


1person who
conducts a gambling operation without first 
2obtaining a
license to do so, or who continues to conduct such 
3games after revocation
of his license, or any licensee who 
4conducts or allows to be
conducted any unauthorized gambling 
5games on a riverboat, in a casino, or at an organization gaming 
6facility where it is
authorized to conduct its riverboat 
7gambling operation, in addition to
other penalties provided, 
8shall be subject to a civil penalty equal to the
amount of 
9gross receipts derived from wagering on the gambling games,

10whether unauthorized or authorized, conducted on that day as 
11well as
confiscation and forfeiture of all gambling game 
12equipment used in the
conduct of unauthorized gambling games.

13(Source: P.A. 86-1029.)





14 (230 ILCS 10/21) (from Ch. 120, par. 2421)



15 Sec. 21. Limitation on taxation of licensees. Licensees 
16shall not be
subjected to any excise tax, license tax,
permit 
17tax, privilege tax, occupation tax or excursion tax which is 
18imposed
exclusively upon the licensee by the State or any 
19political
subdivision thereof, except as provided in this Act 
20or the Chicago Casino Development Authority Act.

21(Source: P.A. 86-1029.)





22 (230 ILCS 10/23) (from Ch. 120, par. 2423)


23 Sec. 23. The State Gaming Fund. On or after the effective 
24date of
this Act, except as provided for payments into the 
 
 
10000SB0007ham003- 455 -LRB100 06307 SMS 40923 a


1Horse Racing Equity Trust Fund under subsection (a) of Section 
27, all of the fees and taxes collected pursuant to
this Act or 
3the Chicago Casino Development Authority Act shall be deposited 
4into the State Gaming Fund, a
special fund in the State 
5Treasury, which is hereby created. The adjusted
gross receipts 
6of any riverboat gambling operations conducted by a licensed

7manager on behalf of the State remaining after the payment of 
8the fees and
expenses of the licensed manager shall be 
9deposited into the State Gaming
Fund. Fines and
penalties 
10collected pursuant to this Act or the Chicago Casino 
11Development Authority Act shall be deposited into the
Education 
12Assistance Fund, created by Public Act 86-0018, of the State of

13Illinois.

14(Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)


15 (230 ILCS 10/24)

16 Sec. 24. Applicability of this Illinois Riverboat Gambling 
17Act. The provisions of the this Illinois Riverboat Gambling 
18Act, and all rules promulgated thereunder, shall apply to the 
19Chicago Casino Development Authority Act and the Video Gaming 
20Act, except where there is a conflict between the 2 Acts. In 
21the event of a conflict between this Act and the Chicago Casino 
22Development Authority Act, the terms of the Chicago Casino 
23Development Authority Act shall prevail. In the event of a 
24conflict between this Act and the Video Gaming Act, the terms 
25of this Act shall prevail. 

 
 
10000SB0007ham003- 456 -LRB100 06307 SMS 40923 a


1(Source: P.A. 96-37, eff. 7-13-09.)

2 (230 ILCS 10/25 new)
3 Sec. 25. Wide area progressive systems. The operation of a 
4wide area progressive system is permitted in gambling 
5operations authorized under this Act subject to the following 
6conditions:
7  (1) The method of communication over the wide area 
8 progressive system must consist of dedicated on-line 
9 communication lines or the equivalent, as determined by the 
10 Administrator, or wireless communication, which may be 
11 subject to certain restrictions imposed by the 
12 Administrator.
13  (2) All communication between each facility location 
14 and the central system site must be encrypted.
15  (3) The central system site must be located within the 
16 State of Illinois and be equipped with a non-interruptible 
17 power supply and the central computer must be capable of 
18 on-line data redundancy should hard disk peripherals fail 
19 during operation. The office containing the central 
20 computer shall be equipped with a surveillance system that 
21 has been approved by the Administrator. The wide area 
22 progressive system provider shall be required to keep and 
23 maintain an entry and exit log for the office containing 
24 the central computer. The wide area progressive system 
25 provider shall provide access to the office containing the 
 
 
10000SB0007ham003- 457 -LRB100 06307 SMS 40923 a


1 central computer to the Administrator and shall make 
2 available to the Administrator all books, records, and 
3 information required by the Administrator in fulfilling 
4 his or her regulatory purpose.
5  (4) A wide area progressive system provider must 
6 suspend play on the wide area progressive system if a 
7 communication failure of the system cannot be corrected 
8 within 24 consecutive hours.
9  (5) Approval by the Board of any wide area progressive 
10 system shall occur only after the Administrator has 
11 reviewed the wide area progressive system software and 
12 hardware and is satisfied that the operation of the system 
13 meets accepted industry standards for wide area 
14 progressive system products, as well as any other 
15 requirements that the Administrator may impose to ensure 
16 the integrity, security, and legal operation of the wide 
17 area progressive system.
18  (6) A meter that shows the amount of the common 
19 progressive jackpot must be conspicuously displayed at or 
20 near the machines to which the jackpot applies. The common 
21 progressive jackpot meter need not precisely show the 
22 actual moneys in the common progressive jackpot award at 
23 each instant. Nothing shall prohibit the use of an odometer 
24 or other paced updating progressive display to show updates 
25 to the jackpot. When a paced updating display is used and 
26 the remote site is communicating to the central computer, 
 
 
10000SB0007ham003- 458 -LRB100 06307 SMS 40923 a


1 the common progressive jackpot meter must display the 
2 winning value after the jackpot broadcast is received from 
3 the central system. If a common progressive jackpot is 
4 recognized in the middle of a systemwide poll cycle, the 
5 common progressive jackpot display may contain a value less 
6 than the aggregated amount calculated by the central 
7 system. The fund values from the remaining portion of the 
8 poll cycle shall be received by the central system, but not 
9 the local site, in which case the common progressive 
10 jackpot amount paid shall always be the higher of the 2 
11 reporting amounts.
12  (7) When a common progressive jackpot is won, the wide 
13 area progressive system provider shall have the 
14 opportunity to inspect the machine, storage media, the 
15 error events received by the central system, and any other 
16 data which could reasonably be used to ascertain the 
17 validity of the jackpot.
18   (A) The central system shall produce reports that 
19 clearly demonstrate the method of arriving at the 
20 payoff amount. This shall include the funds 
21 contributed beginning with the polling cycle 
22 immediately following the previous jackpot and all 
23 funds contributed up to and including the polling cycle 
24 that includes the jackpot signal. Funds contributed to 
25 and registered by the system before the jackpot message 
26 is received shall be deemed to have been contributed to 
 
 
10000SB0007ham003- 459 -LRB100 06307 SMS 40923 a


1 the progressive amount prior to the current jackpot. 
2 Funds contributed to the system subsequent to the 
3 jackpot message's being received, as well as funds 
4 contributed to the system before the jackpot message is 
5 received by the system but registered after the jackpot 
6 message is received at the system, shall be deemed to 
7 have been contributed to the progressive amount of the 
8 next jackpot.
9   (B) The common progressive jackpot may be 
10 disbursed in periodic payments as long as each machine 
11 clearly displays the fact that the jackpot shall be 
12 paid in such periodic payments. In addition, the number 
13 of periodic payments and time between payments must be 
14 clearly displayed on the slot machine in a 
15 non-misleading manner.
16   (C) A wide area progressive system provider must, 
17 upon request, supply to the Board reports that support 
18 and verify the economic activity of the system.
19  (8) In calculating adjusted gross revenue, a facility 
20 may deduct its pro rata share of the present value of any 
21 common progressive jackpots awarded. The deduction shall 
22 be listed on the detailed accounting records provided by 
23 the wide area progressive system provider. A facility's pro 
24 rata share is based on the number of funds in from that 
25 facility's machines on the wide area progressive system, 
26 compared to the total amount of funds in on the whole 
 
 
10000SB0007ham003- 460 -LRB100 06307 SMS 40923 a


1 system for the time period between jackpots awarded.
2  (9) In the event a facility ceases operations and a 
3 progressive jackpot is awarded subsequent to the last day 
4 of the final month of operation, the facility may not file 
5 an amended wagering tax submission or make a claim for a 
6 wagering tax refund based on its contributions to that 
7 particular progressive prize pool.
8  (10) A facility, or an entity that is licensed as a 
9 manufacturer or distributor, shall provide the wide area 
10 progressive system in accordance with a written agreement 
11 that shall be reviewed and approved by the Board prior to 
12 offering the jackpots.
13  (11) The payment of any common progressive jackpot 
14 offered on a wide area progressive system shall be 
15 administered by the wide area progressive system provider, 
16 and the provider shall have primary liability for payment 
17 of any common progressive jackpot the person administers.
18  (12) A wide area progressive system provider shall 
19 comply with the following:
20   (A) A reserve shall be established and maintained 
21 by the provider of the wide area progressive system in 
22 an amount of not less than the sum of the following 
23 amounts:
24    (i) the present value of the aggregate 
25 remaining balances owed on all jackpots previously 
26 won by patrons on the wide area progressive system;
 
 
10000SB0007ham003- 461 -LRB100 06307 SMS 40923 a


1    (ii) the present value of the amount currently 
2 reflected on the jackpot meters of the wide area 
3 progressive system; and
4    (iii) the present value of one additional 
5 reset of the wide area progressive system.
6   (B) The reserve shall continue to be maintained 
7 until all payments owed to winners of the common 
8 progressive jackpots have been made.
9   (C) For common progressive jackpots disbursed in 
10 periodic payments, any qualified investment shall be 
11 purchased within 90 days following notice of the win of 
12 the common progressive jackpot, and a copy of such 
13 qualified investment shall be provided to the Board 
14 within 30 days of purchase. Any qualified investment 
15 shall have a surrender value at maturity and shall have 
16 a maturity date prior to the date the periodic jackpot 
17 payment is required to be made.
18   (D) The person authorized to provide the wide area 
19 progressive system shall not be permitted to sell, 
20 trade, or otherwise dispose of any qualified 
21 investments prior to their maturity unless approval to 
22 do so is first obtained from the Board.
23   (E) Upon becoming aware of an event of 
24 noncompliance with the terms of the reserve 
25 requirement mandated by subparagraph (A) in this 
26 paragraph (12), the wide area progressive system 
 
 
10000SB0007ham003- 462 -LRB100 06307 SMS 40923 a


1 provider must immediately notify the Board of such 
2 event. An event of noncompliance includes a 
3 non-payment of a jackpot periodic payment or a 
4 circumstance which may cause the wide area progressive 
5 system provider to be unable to fulfill, or which may 
6 otherwise impair the person's ability to satisfy, the 
7 person's jackpot payment obligations.
8   (F) On a quarterly basis, the wide area progressive 
9 system provider must deliver to the Board a calculation 
10 of system reserves required under subparagraph (A) in 
11 this paragraph (12). The calculation shall come with a 
12 certification of financial compliance signed by a duly 
13 authorized financial officer of the wide area 
14 progressive system provider, on a form prescribed by 
15 the Board, validating the calculation. 
16  (13) For common progressive jackpots disbursed in 
17 periodic payments, subsequent to the date of the win, a 
18 winner may be offered the option to receive, in lieu of 
19 periodic payments, a discounted single cash payment in the 
20 form of a qualified prize option, as that term is defined 
21 in Section 451(h) of the Internal Revenue Code of 1986. The 
22 wide area progressive system provider shall calculate the 
23 single cash payment based on the discount rate. Until the 
24 new discount rate becomes effective, the discount rate 
25 selected by the wide area progressive system provider shall 
26 be used to calculate the single cash payment for all 
 
 
10000SB0007ham003- 463 -LRB100 06307 SMS 40923 a


1 qualified prizes that occur subsequent to the date of the 
2 selected discount rate. 

3 Section 90-42. The Video Gaming
Act is amended by changing 
4Sections 5, 20, 25, 35, 45, 60, 79, and 80 and by adding 
5Section 90 as follows:



6 (230 ILCS 40/5)


7 Sec. 5. Definitions.  As used in this Act:

8 "Board" means the Illinois Gaming Board.

9 "Credit" means one, 5, 10, or 25 cents either won or 
10purchased by a player.

11 "Distributor" means an individual, partnership, 
12corporation, or limited liability company licensed under
this 
13Act to buy, sell, lease, or distribute video gaming terminals 
14or major
components or parts of video gaming terminals to or 
15from terminal
operators.

16 "Electronic card" means a card purchased from a licensed 
17establishment, licensed fraternal establishment, licensed 
18veterans establishment, or licensed truck stop establishment 
19for use in that establishment as a substitute for cash in the 
20conduct of gaming on a video gaming terminal. 
21 "Electronic voucher" means a voucher printed by an 
22electronic video game machine that is redeemable in the 
23licensed establishment for which it was issued. 
24 "Terminal operator" means an individual, partnership, 
 
 
10000SB0007ham003- 464 -LRB100 06307 SMS 40923 a


1corporation, or limited liability company that is
licensed 
2under this Act and that owns, services, and maintains video

3gaming terminals for placement in licensed establishments, 
4licensed truck stop establishments, licensed fraternal

5establishments, or licensed veterans establishments.

6 "Licensed technician" means an individual
who
is licensed 
7under this Act to repair,
service, and maintain
video gaming 
8terminals.

9 "Licensed terminal handler" means a person, including but 
10not limited to an employee or independent contractor working 
11for a manufacturer, distributor, supplier, technician, or 
12terminal operator, who is licensed under this Act to possess or 
13control a video gaming terminal or to have access to the inner 
14workings of a video gaming terminal. A licensed terminal 
15handler does not include an individual, partnership, 
16corporation, or limited liability company defined as a 
17manufacturer, distributor, supplier, technician, or terminal 
18operator under this Act. 
19 "Manufacturer" means an individual, partnership, 
20corporation, or limited liability company that is
licensed 
21under this Act and that manufactures or assembles video gaming

22terminals.

23 "Supplier" means an individual, partnership, corporation, 
24or limited liability company that is
licensed under this Act to 
25supply major components or parts to video gaming
terminals to 
26licensed
terminal operators.

 
 
10000SB0007ham003- 465 -LRB100 06307 SMS 40923 a


1 "Net terminal income" means money put into a video gaming 
2terminal minus
credits paid out to players.

3 "Video gaming terminal" means any electronic video game 
4machine
that, upon insertion of cash, electronic cards or 
5vouchers, or any combination thereof, is available to play or 
6simulate the play of
a video game, including but not limited to 
7video poker, line up, and blackjack, as
authorized by the Board 
8utilizing a video display and microprocessors in
which the 
9player may receive free games or credits that can be
redeemed 
10for cash. The term does not include a machine that directly

11dispenses coins, cash, or tokens or is for amusement purposes 
12only.

13 "Licensed establishment" means any licensed retail 
14establishment where
alcoholic liquor is drawn, poured, mixed, 
15or otherwise served for consumption
on the premises, whether 
16the establishment operates on a nonprofit or for-profit basis. 
17"Licensed establishment" includes any such establishment that 
18has a contractual relationship with an inter-track wagering 
19location licensee licensed under the Illinois Horse Racing Act 
20of 1975, provided any contractual relationship shall not 
21include any transfer or offer of revenue from the operation of 
22video gaming under this Act to any licensee licensed under the 
23Illinois Horse Racing Act of 1975. Provided, however, that the 
24licensed establishment that has such a contractual 
25relationship with an inter-track wagering location licensee 
26may not, itself, be (i) an inter-track wagering location 
 
 
10000SB0007ham003- 466 -LRB100 06307 SMS 40923 a


1licensee, (ii) the corporate parent or subsidiary of any 
2licensee licensed under the Illinois Horse Racing Act of 1975, 
3or (iii) the corporate subsidiary of a corporation that is also 
4the corporate parent or subsidiary of any licensee licensed 
5under the Illinois Horse Racing Act of 1975. "Licensed 
6establishment" does not include a facility operated by an 
7organization licensee, an inter-track wagering licensee, or an 
8inter-track wagering location licensee licensed under the 
9Illinois Horse Racing Act of 1975 or a riverboat licensed under 
10the Illinois Riverboat Gambling Act, except as provided in this 
11paragraph. The changes made to this definition by Public Act 
1298-587 are declarative of existing law.

13 "Licensed fraternal establishment" means the location 
14where a qualified
fraternal organization that derives its 
15charter from a national fraternal
organization regularly 
16meets.

17 "Licensed veterans establishment" means the location where 
18a qualified
veterans organization that derives its charter from 
19a national veterans
organization regularly meets.

20 "Licensed truck stop establishment" means a facility (i) 
21that is at least a
3-acre facility with a convenience store, 
22(ii) with separate diesel
islands for fueling commercial motor 
23vehicles, (iii) that sells at retail more than 10,000 gallons 
24of diesel or biodiesel fuel per month, and (iv) with parking 
25spaces for commercial
motor vehicles. "Commercial motor 
26vehicles" has the same meaning as defined in Section 18b-101 of 
 
 
10000SB0007ham003- 467 -LRB100 06307 SMS 40923 a


1the Illinois Vehicle Code. The requirement of item (iii) of 
2this paragraph may be met by showing that estimated future 
3sales or past sales average at least 10,000 gallons per month. 

4(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 
598-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff. 
67-16-14.)


7 (230 ILCS 40/20)

8 Sec. 20. Direct dispensing of receipt tickets only. A video 
9gaming
terminal may not
directly dispense coins, cash, tokens, 
10or any other article of exchange or
value except for receipt 
11tickets. Tickets shall be dispensed by
pressing the ticket 
12dispensing button on the video gaming terminal at the end
of 
13one's turn or play. The ticket shall indicate the total amount 
14of credits
and the cash award, the time of day in a 24-hour 
15format showing hours and
minutes, the date, the
terminal serial 
16number, the sequential number of the ticket, and an encrypted

17validation number from which the validity of the prize may be 
18determined.
The player shall turn in this ticket to the 
19appropriate
person at the licensed establishment, licensed 
20truck stop establishment, licensed fraternal establishment,
or

21licensed veterans establishment
to receive the cash award. The 
22cost
of the credit shall be one cent, 5 cents, 10 cents, or 25 
23cents, and the maximum
wager played per hand shall not exceed 
24$4 $2.
No cash award for the maximum wager on any
individual 
25hand shall exceed $1,199, except in the case of a wide area 
 
 
10000SB0007ham003- 468 -LRB100 06307 SMS 40923 a


1progressive system, as defined in the Illinois Gambling Act, 
2which shall have no limits for cash awards $500.

3(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)



4 (230 ILCS 40/25)


5 Sec. 25. Restriction of licensees.

6 (a) Manufacturer. A person may not be licensed as a 
7manufacturer of a
video gaming terminal in Illinois unless the 
8person has a valid
manufacturer's license issued
under this 
9Act. A manufacturer may only sell video gaming terminals for 
10use
in Illinois to
persons having a valid distributor's 
11license.

12 (b) Distributor. A person may not sell, distribute, or 
13lease
or market a video gaming terminal in Illinois unless the 
14person has a valid
distributor's
license issued under this Act. 
15A distributor may only sell video gaming
terminals for use in

16Illinois to persons having a valid distributor's or terminal 
17operator's
license.

18 (c) Terminal operator. A person may not own, maintain, or 
19place a video gaming terminal unless he has a valid terminal 
20operator's
license issued
under this Act. A terminal operator 
21may only place video gaming terminals for
use in
Illinois in 
22licensed establishments, licensed truck stop establishments, 
23licensed fraternal establishments,
and
licensed veterans 
24establishments.
No terminal operator may give anything of 
25value, including but not limited to
a loan or financing 
 
 
10000SB0007ham003- 469 -LRB100 06307 SMS 40923 a


1arrangement, to a licensed establishment, licensed truck stop 
2establishment,
licensed fraternal establishment, or licensed 
3veterans establishment as
any incentive or inducement to locate 
4video terminals in that establishment.
Of the after-tax profits

5from a video gaming terminal, 50% shall be paid to the terminal

6operator and 50% shall be paid to the licensed establishment, 
7licensed truck stop establishment,
licensed fraternal 
8establishment, or
licensed veterans establishment, 
9notwithstanding any agreement to the contrary.
A video terminal 
10operator that violates one or more requirements of this 
11subsection is guilty of a Class 4 felony and is subject to 
12termination of his or her license by the Board. 

13 (d) Licensed technician. A person may not service, 
14maintain, or repair a
video gaming terminal
in this State 
15unless he or she (1) has a valid technician's license issued

16under this Act, (2) is a terminal operator, or (3) is employed 
17by a terminal
operator, distributor, or manufacturer.

18 (d-5) Licensed terminal handler. No person, including, but 
19not limited to, an employee or independent contractor working 
20for a manufacturer, distributor, supplier, technician, or 
21terminal operator licensed pursuant to this Act, shall have 
22possession or control of a video gaming terminal, or access to 
23the inner workings of a video gaming terminal, unless that 
24person possesses a valid terminal handler's license issued 
25under this Act. 
26 (e) Licensed establishment. No video gaming terminal may be 
 
 
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1placed in any licensed establishment, licensed veterans 
2establishment, licensed truck stop establishment,
or licensed 
3fraternal establishment
unless the owner
or agent of the owner 
4of the licensed establishment, licensed veterans 
5establishment, licensed truck stop establishment, or licensed

6fraternal establishment has entered into a
written use 
7agreement with the terminal operator for placement of the

8terminals. A copy of the use agreement shall be on file in the 
9terminal
operator's place of business and available for 
10inspection by individuals
authorized by the Board. A licensed 
11establishment, licensed truck stop establishment, licensed 
12veterans establishment,
or
licensed
fraternal
establishment 
13may operate up to 6 5 video gaming terminals on its premises at 
14any
time.

15 (f) (Blank).

16 (g) Financial interest restrictions.
As used in this Act, 
17"substantial interest" in a partnership, a corporation, an

18organization, an association, a business, or a limited 
19liability company means:


20  (A) When, with respect to a sole proprietorship, an 
21 individual or
his or her spouse owns, operates, manages, or 
22 conducts, directly
or indirectly, the organization, 
23 association, or business, or any part thereof;
or


24  (B) When, with respect to a partnership, the individual 
25 or his or
her spouse shares in any of the profits, or 
26 potential profits,
of the partnership activities; or


 
 
10000SB0007ham003- 471 -LRB100 06307 SMS 40923 a


1  (C) When, with respect to a corporation, an individual 
2 or his or her
spouse is an officer or director, or the 
3 individual or his or her spouse is a holder, directly or 
4 beneficially, of 5% or more of any class
of stock of the 
5 corporation; or


6  (D) When, with respect to an organization not covered 
7 in (A), (B) or
(C) above, an individual or his or her 
8 spouse is an officer or manages the
business affairs, or 
9 the individual or his or her spouse is the
owner of or 
10 otherwise controls 10% or more of the assets of the 
11 organization;
or


12  (E) When an individual or his or her spouse furnishes

13 5% or more of the capital, whether in cash, goods, or 
14 services, for the
operation of any business, association, 
15 or organization during any calendar
year; or
16  (F) When, with respect to a limited liability company, 
17 an individual or his or her
spouse is a member, or the 
18 individual or his or her spouse is a holder, directly or 
19 beneficially, of 5% or more of the membership interest of 
20 the limited liability company. 

21 For purposes of this subsection (g), "individual" includes 
22all individuals or their spouses whose combined interest would 
23qualify as a substantial interest under this subsection (g) and 
24whose activities with respect to an organization, association, 
25or business are so closely aligned or coordinated as to 
26constitute the activities of a single entity. 
 
 
10000SB0007ham003- 472 -LRB100 06307 SMS 40923 a


1 (h) Location restriction. A licensed establishment, 
2licensed truck stop establishment, licensed
fraternal

3establishment, or licensed veterans establishment that is (i) 
4located within 1,000
feet of a facility operated by an 
5organization licensee licensed under the Illinois Horse Racing 
6Act of 1975 or the home dock of a riverboat licensed under the 
7Illinois Riverboat
Gambling Act or (ii) located within 100 feet 
8of a school or a place of worship under the Religious 
9Corporation Act, is ineligible to operate a video gaming 
10terminal. The location restrictions in this subsection (h) do 
11not apply if (A) a facility operated by an organization 
12licensee, a school, or a place of worship moves to or is 
13established within the restricted area after a licensed 
14establishment, licensed truck stop establishment, licensed 
15fraternal establishment, or licensed veterans establishment 
16becomes licensed under this Act or (B) a school or place of 
17worship moves to or is established within the restricted area 
18after a licensed establishment, licensed truck stop 
19establishment, licensed fraternal establishment, or licensed 
20veterans establishment obtains its original liquor license. 
21For the purpose of this subsection, "school" means an 
22elementary or secondary public school, or an elementary or 
23secondary private school registered with or recognized by the 
24State Board of Education.
25 Notwithstanding the provisions of this subsection (h), the 
26Board may waive the requirement that a licensed establishment, 
 
 
10000SB0007ham003- 473 -LRB100 06307 SMS 40923 a


1licensed truck stop establishment, licensed fraternal 
2establishment, or licensed veterans establishment not be 
3located within 1,000 feet from a facility operated by an 
4organization licensee licensed under the Illinois Horse Racing 
5Act of 1975 or the home dock of a riverboat licensed under the 
6Illinois Riverboat Gambling Act. The Board shall not grant such 
7waiver if there is any common ownership or control, shared 
8business activity, or contractual arrangement of any type 
9between the establishment and the organization licensee or 
10owners licensee of a riverboat. The Board shall adopt rules to 
11implement the provisions of this paragraph.
12 (h-5) Restrictions on licenses in malls. The Board shall 
13not grant an application to become a licensed video gaming 
14location if the Board determines that granting the application 
15would more likely than not cause a terminal operator, 
16individually or in combination with other terminal operators, 
17licensed video gaming location, or other person or entity, to 
18operate the video gaming terminals in 2 or more licensed video 
19gaming locations as a single video gaming operation.
20  (1) In making determinations under this subsection 
21 (h-5), factors to be considered by the Board shall include, 
22 but not be limited to, the following:
23   (A) the physical aspects of the location;
24   (B) the ownership, control, or management of the 
25 location;
26   (C) any arrangements, understandings, or 
 
 
10000SB0007ham003- 474 -LRB100 06307 SMS 40923 a


1 agreements, written or otherwise, among or involving 
2 any persons or entities that involve the conducting of 
3 any video gaming business or the sharing of costs or 
4 revenues; and
5   (D) the manner in which any terminal operator or 
6 other related entity markets, advertises, or otherwise 
7 describes any location or locations to any other person 
8 or entity or to the public.
9  (2) The Board shall presume, subject to rebuttal, that 
10 the granting of an application to become a licensed video 
11 gaming location within a mall will cause a terminal 
12 operator, individually or in combination with other 
13 persons or entities, to operate the video gaming terminals 
14 in 2 or more licensed video gaming locations as a single 
15 video gaming operation if the Board determines that 
16 granting the license would create a local concentration of 
17 licensed video gaming locations.
18 For the purposes of this subsection (h-5):
19 "Mall" means a building, or adjoining or connected 
20buildings, containing 4 or more separate locations.
21 "Video gaming operation" means the conducting of video 
22gaming and all related activities.
23 "Location" means a space within a mall containing a 
24separate business, a place for a separate business, or a place 
25subject to a separate leasing arrangement by the mall owner.
26 "Licensed video gaming location" means a licensed 
 
 
10000SB0007ham003- 475 -LRB100 06307 SMS 40923 a


1establishment, licensed fraternal establishment, licensed 
2veterans establishment, or licensed truck stop.
3 "Local concentration of licensed video gaming locations" 
4means that the combined number of licensed video gaming 
5locations within a mall exceed half of the separate locations 
6within the mall. 
7 (i) Undue economic concentration. In addition to 
8considering all other requirements under this Act, in deciding 
9whether to approve the operation of video gaming terminals by a 
10terminal operator in a location, the Board shall consider the 
11impact of any economic concentration of such operation of video 
12gaming terminals. The Board shall not allow a terminal operator 
13to operate video gaming terminals if the Board determines such 
14operation will result in undue economic concentration. For 
15purposes of this Section, "undue economic concentration" means 
16that a terminal operator would have such actual or potential 
17influence over video gaming terminals in Illinois as to:
18  (1) substantially impede or suppress competition among 
19 terminal operators;
20  (2) adversely impact the economic stability of the 
21 video gaming industry in Illinois; or
22  (3) negatively impact the purposes of the Video Gaming 
23 Act.
24 The Board shall adopt rules concerning undue economic 
25concentration with respect to the operation of video gaming 
26terminals in Illinois. The rules shall include, but not be 
 
 
10000SB0007ham003- 476 -LRB100 06307 SMS 40923 a


1limited to, (i) limitations on the number of video gaming 
2terminals operated by any terminal operator within a defined 
3geographic radius and (ii) guidelines on the discontinuation of 
4operation of any such video gaming terminals the Board 
5determines will cause undue economic concentration. 

6 (j) The provisions of the Illinois Antitrust Act are fully 
7and equally applicable to the activities of any licensee under 
8this Act. 

9(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77, 
10eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)


11 (230 ILCS 40/35)

12 Sec. 35. Display of license; confiscation; violation as 
13felony.  
14 (a) Each
video gaming terminal shall be licensed by the 
15Board before placement
or operation on the premises of a 
16licensed establishment, licensed truck stop
establishment, 
17licensed
fraternal establishment, or licensed veterans 
18establishment. The license of
each video gaming terminal shall 
19be maintained
at the location where the video gaming terminal 
20is operated. Failure to do so
is a petty offense with a fine

21not to exceed $100.
Any licensed establishment, licensed truck 
22stop establishment, licensed
fraternal establishment, or 
23licensed
veterans establishment
used for the conduct of 
24gambling games in violation of this Act shall be
considered a 
25gambling place in violation of Section 28-3 of the Criminal

 
 
10000SB0007ham003- 477 -LRB100 06307 SMS 40923 a


1Code of 2012. Every gambling device found in
a licensed 
2establishment, licensed truck stop establishment, licensed 
3fraternal
establishment, or licensed
veterans establishment 
4operating gambling games in violation of this
Act shall be 
5subject to seizure, confiscation, and destruction as provided

6in Section 28-5 of the Criminal Code of 2012.
Any license 
7issued under the Liquor Control Act
of 1934 to any owner or 
8operator of a licensed establishment, licensed truck
stop 
9establishment, licensed
fraternal establishment, or licensed 
10veterans establishment that operates or
permits the operation 
11of a video gaming terminal within its establishment in

12violation of this Act shall be immediately revoked.
No person 
13may own, operate, have in his or her possession or custody or 
14under
his or her control, or permit to be kept in any place 
15under his or her
possession or control, any
device that awards 
16credits and contains a circuit, meter, or switch capable of

17removing and recording the removal of credits when the award of 
18credits is
dependent upon chance. 
19 Nothing in this Section shall be deemed to prohibit the use 
20of a game device only if the game device is used in an activity 
21that is not gambling under subsection (b) of Section 28-1 of 
22the Criminal Code of 2012. A licensee under this Act shall not 
23be in violation of this Act or Illinois Gaming Board rules and 
24shall not be subject to disciplinary action for operating a 
25game device if it is in compliance with and not considered 
26gambling under subsection (b) of Section 28-1 of the Criminal 
 
 
10000SB0007ham003- 478 -LRB100 06307 SMS 40923 a


1Code of 2012. 
2 A violation of this Section is a Class 4 felony. All

3devices that are owned, operated, or possessed in violation of 
4this Section are
hereby declared to be public nuisances and 
5shall be subject to seizure,
confiscation, and destruction as 
6provided in Section 28-5 of the Criminal Code
of 2012.

7 The provisions of this Section do not apply to devices or 
8electronic video
game terminals licensed pursuant to this Act. 
9A video gaming terminal operated for amusement only and bearing 
10a valid amusement tax sticker shall not be subject to this 
11Section until 30 days after the Board establishes that the 
12central communications system is functional. 

13 (b) (1) The odds of winning each video game shall be posted 
14on or near each video gaming terminal. The manner in which the 
15odds are calculated and how they are posted shall be determined 
16by the Board by rule.
17 (2) No video gaming terminal licensed under this Act may be 
18played except during the legal hours of operation allowed for 
19the consumption of alcoholic beverages at the licensed 
20establishment, licensed fraternal establishment, or licensed 
21veterans establishment. A licensed establishment, licensed 
22fraternal establishment, or licensed veterans establishment 
23that violates this subsection is subject to termination of its 
24license by the Board. 
25(Source: P.A. 97-1150, eff. 1-25-13; 98-111, eff. 1-1-14.)



 
 
10000SB0007ham003- 479 -LRB100 06307 SMS 40923 a


1 (230 ILCS 40/45)



2 Sec. 45. Issuance of license.

3 (a) The burden is upon each applicant to
demonstrate his 
4suitability for licensure. Each video gaming terminal

5manufacturer, distributor, supplier, operator, handler, 
6licensed establishment, licensed truck stop establishment, 
7licensed
fraternal
establishment, and licensed veterans 
8establishment shall be
licensed by the Board.
The Board may 
9issue or deny a license under this Act to any person pursuant 
10to the same criteria set forth in Section 9 of the Illinois 
11Riverboat Gambling Act. 

12 (a-5) The Board shall not grant a license to a person who 
13has facilitated, enabled, or participated in the use of 
14coin-operated devices for gambling purposes or who is under the 
15significant influence or control of such a person. For the 
16purposes of this Act, "facilitated, enabled, or participated in 
17the use of coin-operated amusement devices for gambling 
18purposes" means that the person has been convicted of any 
19violation of Article 28 of the Criminal Code of 1961 or the 
20Criminal Code of 2012. If there is pending legal action against 
21a person for any such violation, then the Board shall delay the 
22licensure of that person until the legal action is resolved. 
23 (b) Each person seeking and possessing a license as a video 
24gaming terminal manufacturer, distributor, supplier, operator, 
25handler, licensed establishment, licensed truck stop 
26establishment, licensed fraternal establishment, or licensed 
 
 
10000SB0007ham003- 480 -LRB100 06307 SMS 40923 a


1veterans establishment shall submit to a background 
2investigation conducted by the Board with the assistance of the 
3State Police or other law enforcement. To the extent that the 
4corporate structure of the applicant allows, the background 
5investigation shall include any or all of the following as the 
6Board deems appropriate or as provided by rule for each 
7category of licensure: (i) each beneficiary of a trust, (ii) 
8each partner of a partnership, (iii) each member of a limited 
9liability company, (iv) each director and officer of a publicly 
10or non-publicly held corporation, (v) each stockholder of a 
11non-publicly held corporation, (vi) each stockholder of 5% or 
12more of a publicly held corporation, or (vii) each stockholder 
13of 5% or more in a parent or subsidiary corporation.
14 (c) Each person seeking and possessing a license as a video 
15gaming terminal manufacturer, distributor, supplier, operator, 
16handler, licensed establishment, licensed truck stop 
17establishment, licensed fraternal establishment, or licensed 
18veterans establishment shall disclose the identity of every 
19person, association, trust, corporation, or limited liability 
20company having a greater than 1% direct or indirect pecuniary 
21interest in the video gaming terminal operation for which the 
22license is sought. If the disclosed entity is a trust, the 
23application shall disclose the names and addresses of the 
24beneficiaries; if a corporation, the names and addresses of all 
25stockholders and directors; if a limited liability company, the 
26names and addresses of all members; or if a partnership, the 
 
 
10000SB0007ham003- 481 -LRB100 06307 SMS 40923 a


1names and addresses of all partners, both general and limited.
2 (d) No person may be licensed as a video gaming terminal 
3manufacturer, distributor, supplier, operator, handler, 
4licensed establishment, licensed truck stop establishment, 
5licensed fraternal establishment, or licensed veterans 
6establishment if that person has been found by the Board to:
7  (1) have a background, including a criminal record, 
8 reputation, habits, social or business associations, or 
9 prior activities that pose a threat to the public interests 
10 of the State or to the security and integrity of video 
11 gaming;
12  (2) create or enhance the dangers of unsuitable, 
13 unfair, or illegal practices, methods, and activities in 
14 the conduct of video gaming; or
15  (3) present questionable business practices and 
16 financial arrangements incidental to the conduct of video 
17 gaming activities. 
18 (e) Any applicant for any license under this Act has the 
19burden of proving his or her qualifications to the satisfaction 
20of the Board. The Board may adopt rules to establish additional 
21qualifications and requirements to preserve the integrity and 
22security of video gaming in this State. 
23 (f) A non-refundable application fee shall be paid at the 
24time an
application for a license is filed with the Board in 
25the following amounts:

26  (1) Manufacturer..........................$5,000

 
 
10000SB0007ham003- 482 -LRB100 06307 SMS 40923 a


1  (2) Distributor...........................$5,000

2  (3) Terminal operator.....................$5,000

3  (4) Supplier..............................$2,500

4  (5) Technician..............................$100

5  (6) Terminal Handler..............................$50
6 (g) The Board shall establish an
annual fee for each 
7license not to exceed the following:
8  (1) Manufacturer.........................$10,000

9  (2) Distributor..........................$10,000

10  (3) Terminal operator.....................$5,000

11  (4) Supplier..............................$2,000

12  (5) Technician..............................$100

13  (6) Licensed establishment, licensed truck stop

14 establishment, licensed fraternal establishment,

15 or licensed veterans establishment..............$100

16  (7) Video gaming terminal...................$100

17  (8) Terminal Handler..............................$50

18 (h) A terminal operator and a licensed establishment, 
19licensed truck stop establishment, licensed fraternal 
20establishment,
or licensed veterans establishment shall 
21equally split the fees specified in item (7) of subsection (g). 
22(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13; 
2398-587, eff. 8-27-13; 98-756, eff. 7-16-14.)


24 (230 ILCS 40/60)

25 Sec. 60. Imposition and distribution of tax.

 
 
10000SB0007ham003- 483 -LRB100 06307 SMS 40923 a


1 (a) A tax of 35% 30% is imposed on net terminal income
and 
2shall be collected by the Board.

3 (b) Of the tax collected under this Section, five-sixths 
4shall be
deposited into the Capital Projects Fund and one-sixth 
5shall be deposited into the Local Government Video Gaming 
6Distributive Fund. Of the amount deposited into the Local 
7Government Video Gaming Distributive Fund, half of the deposits 
8may be used by each municipality for contributions under 
9Sections 4-118 and 5-168 of the Illinois Pension Code. 

10 (c) Revenues generated from the play of video gaming 
11terminals shall be
deposited by the terminal operator, who is 
12responsible for tax payments, in
a specially created, separate 
13bank account maintained by the video gaming
terminal operator

14to allow for electronic fund transfers of moneys for tax 
15payment.

16 (d) Each licensed establishment, licensed truck stop 
17establishment, licensed fraternal establishment,
and licensed 
18veterans establishment shall maintain an adequate video gaming

19fund, with the amount to be determined by the Board.

20 (e) The State's percentage of net terminal income shall be 
21reported and remitted to the Board within 15 days after the 
2215th day of each month and within 15 days after the end of each 
23month by the video terminal operator. A video terminal operator 
24who falsely reports or fails to report the amount due required 
25by this Section is guilty of a Class 4 felony and is subject to 
26termination of his or her license by the Board. Each video 
 
 
10000SB0007ham003- 484 -LRB100 06307 SMS 40923 a


1terminal operator shall keep a record of net terminal income in 
2such form as the Board may require. All payments not remitted 
3when due shall be paid together with a penalty assessment on 
4the unpaid balance at a rate of 1.5% per month. 
5(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)

6 (230 ILCS 40/79)
7 Sec. 79. Investigators. Investigators appointed by the 
8Board pursuant to the powers conferred upon the Board by 
9paragraph (20.6) of subsection (c) of Section 5 of the Illinois 
10Riverboat Gambling Act and Section 80 of this Act shall have 
11authority to conduct investigations, searches, seizures, 
12arrests, and other duties imposed under this Act and the 
13Illinois Riverboat Gambling Act, as deemed necessary by the 
14Board. These investigators have and may exercise all of the 
15rights and powers of peace officers, provided that these powers 
16shall be (1) limited to offenses or violations occurring or 
17committed in connection with conduct subject to this Act, 
18including, but not limited to, the manufacture, distribution, 
19supply, operation, placement, service, maintenance, or play of 
20video gaming terminals and the distribution of profits and 
21collection of revenues resulting from such play, and (2) 
22exercised, to the fullest extent practicable, in cooperation 
23with the local police department of the applicable municipality 
24or, if these powers are exercised outside the boundaries of an 
25incorporated municipality or within a municipality that does 
 
 
10000SB0007ham003- 485 -LRB100 06307 SMS 40923 a


1not have its own police department, in cooperation with the 
2police department whose jurisdiction encompasses the 
3applicable locality.

4(Source: P.A. 97-809, eff. 7-13-12.)



5 (230 ILCS 40/80)


6 Sec. 80. Applicability of Illinois Riverboat Gambling Act. 
7The provisions of the Illinois Riverboat Gambling Act, and all 
8rules promulgated thereunder, shall apply to the Video Gaming 
9Act, except where there is a conflict between the 2 Acts. In 
10the event of a conflict between the 2 Acts, the provisions of 
11the Illinois Gambling Act shall prevail. All provisions of the 
12Uniform Penalty and Interest Act shall apply, as far as 
13practicable, to the subject matter of this Act to the same 
14extent as if such provisions were included herein.

15(Source: P.A. 96-37, eff. 7-13-09.)


16 (230 ILCS 40/90 new)
17 Sec. 90. Wide area progressive systems. The operation of a 
18wide area progressive system, as defined in the Illinois 
19Gambling Act, is permitted, subject to the provisions of the 
20Illinois Gambling Act, and the following conditions:
21  (1) Licensed terminal operators and manufacturer or 
22 supplier licensees may operate one or more wide area 
23 progressive systems in licensed establishments, licensed 
24 truck stop establishments, licensed veterans 
 
 
10000SB0007ham003- 486 -LRB100 06307 SMS 40923 a


1 establishments, and licensed fraternal establishments. A 
2 designated portion of a player's wager may be allocated to 
3 the jackpot. The jackpot may be awarded to a player on any 
4 of the video gaming terminals that are linked to the wide 
5 area progressive system.
6  (2) A wide area progressive system shall at all times 
7 be installed and operated in accordance with relevant 
8 requirements of this Act and technical standards of wide 
9 area progressive systems.
10  (3) A wide area progressive system shall be operated 
11 and administered by participating licensees in accordance 
12 with the terms and conditions of a written approved policy, 
13 which must be submitted in writing and approved by the 
14 Board prior to implementation and must comply with this Act 
15 and technical standards of wide area progressive systems.
16  (4) Approved policies must address:
17   (A) responsibility for the funding and payment of 
18 all jackpots, fees, and taxes associated with the 
19 operation of the wide area progressive system;
20   (B) control and operation of the computer 
21 monitoring room required under paragraph (5); and
22   (C) other requirements in the technical standards 
23 on wide area progressive systems.
24  (5) A wide area progressive system shall be controlled 
25 and operated from a computer monitoring room. The computer 
26 monitoring room must:
 
 
10000SB0007ham003- 487 -LRB100 06307 SMS 40923 a


1   (A) be under the sole possession and control of, 
2 and maintained and operated by, employees of the 
3 licensee designated in the approved policy for that 
4 system; the employees of the licensee may be required 
5 to obtain a terminal handler license if the Board 
6 determines, after a review of the work being performed, 
7 the employees require a license or permit for the 
8 protection of the integrity of gaming;
9   (B) have its monitoring equipment subjected to 
10 surveillance coverage either by the surveillance 
11 system of a licensee or by a dedicated surveillance 
12 system maintained by the terminal operator;
13   (C) be accessible through a locked door; the door 
14 must be alarmed in a manner that audibly signals the 
15 surveillance monitoring room for the surveillance 
16 system elected under subparagraph (B) of this 
17 paragraph (5); and
18   (D) have a computer monitoring room entry log. 
19 This Section shall not be construed to impact the maximum 
20wager as set forth in this Act. 

21 Section 90-45. The Liquor Control Act of 1934 is amended by 
22changing Sections 5-1 and 6-30 as follows:

23 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
24 Sec. 5-1. Licenses issued by the Illinois Liquor Control 
 
 
10000SB0007ham003- 488 -LRB100 06307 SMS 40923 a


1Commission
shall be of the following classes:
2 (a) Manufacturer's license - Class 1.
Distiller, Class 2. 
3Rectifier, Class 3. Brewer, Class 4. First Class Wine

4Manufacturer, Class 5. Second Class Wine Manufacturer,
Class 6. 
5First Class Winemaker, Class 7. Second Class Winemaker, Class 
68.
Limited Wine Manufacturer, Class 9. Craft Distiller, Class 
710. Class 1 Brewer, Class 11. Class 2 Brewer,
8 (b) Distributor's license,
9 (c) Importing Distributor's license,
10 (d) Retailer's license,
11 (e) Special Event Retailer's license (not-for-profit),
12 (f) Railroad license,
13 (g) Boat license,
14 (h) Non-Beverage User's license,
15 (i) Wine-maker's premises license,
16 (j) Airplane license,
17 (k) Foreign importer's license,
18 (l) Broker's license,
19 (m) Non-resident dealer's
license,
20 (n) Brew Pub license,
21 (o) Auction liquor license,
22 (p) Caterer retailer license,
23 (q) Special use permit license,
24 (r) Winery shipper's license,
25 (s) Craft distiller tasting permit.
26 No
person, firm, partnership, corporation, or other legal 
 
 
10000SB0007ham003- 489 -LRB100 06307 SMS 40923 a


1business entity that is
engaged in the manufacturing of wine 
2may concurrently obtain and hold a
wine-maker's license and a 
3wine manufacturer's license.
4 (a) A manufacturer's license shall allow the manufacture,

5importation in bulk, storage, distribution and sale of 
6alcoholic liquor
to persons without the State, as may be 
7permitted by law and to licensees
in this State as follows:
8 Class 1. A Distiller may make sales and deliveries of 
9alcoholic liquor to
distillers, rectifiers, importing 
10distributors, distributors and
non-beverage users and to no 
11other licensees.
12 Class 2. A Rectifier, who is not a distiller, as defined 
13herein, may make
sales and deliveries of alcoholic liquor to 
14rectifiers, importing distributors,
distributors, retailers 
15and non-beverage users and to no other licensees.
16 Class 3. A Brewer may make sales and deliveries of beer to 
17importing
distributors and distributors and may make sales as 
18authorized under subsection (e) of Section 6-4 of this Act.
19 Class 4. A first class wine-manufacturer may make sales and 
20deliveries of
up to 50,000 gallons of wine to manufacturers,

21importing
distributors and distributors, and to no other 
22licensees.
23 Class 5. A second class Wine manufacturer may make sales 
24and deliveries
of more than 50,000 gallons of wine to 
25manufacturers, importing distributors
and distributors and to 
26no other licensees.
 
 
10000SB0007ham003- 490 -LRB100 06307 SMS 40923 a


1 Class 6. A first-class wine-maker's license shall allow the 
2manufacture
of up to 50,000 gallons of wine per year, and the

3storage
and sale of such
wine to distributors in the State and 
4to persons without the
State, as may be permitted by law. A 
5person who, prior to June 1, 2008 (the effective date of Public 
6Act 95-634), is a holder of a first-class wine-maker's license 
7and annually produces more than 25,000 gallons of its own wine 
8and who distributes its wine to licensed retailers shall cease 
9this practice on or before July 1, 2008 in compliance with 
10Public Act 95-634.
11 Class 7. A second-class wine-maker's license shall allow 
12the manufacture
of between 50,000 and 150,000 gallons of wine 
13per year, and
the
storage and sale of such wine
to distributors 
14in this State and to persons without the State, as may be

15permitted by law. A person who, prior to June 1, 2008 (the 
16effective date of Public Act 95-634), is a holder of a 
17second-class wine-maker's license and annually produces more 
18than 25,000 gallons of its own wine and who distributes its 
19wine to licensed retailers shall cease this practice on or 
20before July 1, 2008 in compliance with Public Act 95-634.
21 Class 8. A limited wine-manufacturer may make sales and 
22deliveries not to
exceed 40,000 gallons of wine per year to 
23distributors, and to
non-licensees in accordance with the 
24provisions of this Act.
25 Class 9. A craft distiller license shall allow the 
26manufacture of up to 100,000 gallons of spirits by distillation 
 
 
10000SB0007ham003- 491 -LRB100 06307 SMS 40923 a


1per year and the storage of such spirits. If a craft distiller 
2licensee, including a craft distiller licensee who holds more 
3than one craft distiller license, is not affiliated with any 
4other manufacturer of spirits, then the craft distiller 
5licensee may sell such spirits to distributors in this State 
6and up to 2,500 gallons of such spirits to non-licensees to the 
7extent permitted by any exemption approved by the Commission 
8pursuant to Section 6-4 of this Act. A craft distiller license 
9holder may store such spirits at a non-contiguous licensed 
10location, but at no time shall a craft distiller license holder 
11directly or indirectly produce in the aggregate more than 
12100,000 gallons of spirits per year.
13 A craft distiller licensee may hold more than one craft 
14distiller's license. However, a craft distiller that holds more 
15than one craft distiller license shall not manufacture, in the 
16aggregate, more than 100,000 gallons of spirits by distillation 
17per year and shall not sell, in the aggregate, more than 2,500 
18gallons of such spirits to non-licensees in accordance with an 
19exemption approved by the State Commission pursuant to Section 
206-4 of this Act. 
21 Any craft distiller licensed under this Act who on July 28, 
222010 (the effective date of Public Act 96-1367) was licensed as 
23a distiller and manufactured no more spirits than permitted by 
24this Section shall not be required to pay the initial licensing 
25fee. 
26 Class 10. A class 1 brewer license, which may only be 
 
 
10000SB0007ham003- 492 -LRB100 06307 SMS 40923 a


1issued to a licensed brewer or licensed non-resident dealer, 
2shall allow the manufacture of up to 930,000 gallons of beer 
3per year provided that the class 1 brewer licensee does not 
4manufacture more than a combined 930,000 gallons of beer per 
5year and is not a member of or affiliated with, directly or 
6indirectly, a manufacturer that produces more than 930,000 
7gallons of beer per year or any other alcoholic liquor. A class 
81 brewer licensee may make sales and deliveries to importing 
9distributors and distributors and to retail licensees in 
10accordance with the conditions set forth in paragraph (18) of 
11subsection (a) of Section 3-12 of this Act. 
12 Class 11. A class 2 brewer license, which may only be 
13issued to a licensed brewer or licensed non-resident dealer, 
14shall allow the manufacture of up to 3,720,000 gallons of beer 
15per year provided that the class 2 brewer licensee does not 
16manufacture more than a combined 3,720,000 gallons of beer per 
17year and is not a member of or affiliated with, directly or 
18indirectly, a manufacturer that produces more than 3,720,000 
19gallons of beer per year or any other alcoholic liquor. A class 
202 brewer licensee may make sales and deliveries to importing 
21distributors and distributors, but shall not make sales or 
22deliveries to any other licensee. If the State Commission 
23provides prior approval, a class 2 brewer licensee may annually 
24transfer up to 3,720,000 gallons of beer manufactured by that 
25class 2 brewer licensee to the premises of a licensed class 2 
26brewer wholly owned and operated by the same licensee.
 
 
10000SB0007ham003- 493 -LRB100 06307 SMS 40923 a


1 (a-1) A manufacturer which is licensed in this State to 
2make sales or
deliveries of alcoholic liquor to licensed 
3distributors or importing distributors and which enlists 
4agents, representatives, or
individuals acting on its behalf 
5who contact licensed retailers on a regular
and continual basis 
6in this State must register those agents, representatives,
or 
7persons acting on its behalf with the State Commission.
8 Registration of agents, representatives, or persons acting 
9on behalf of a
manufacturer is fulfilled by submitting a form 
10to the Commission. The form
shall be developed by the 
11Commission and shall include the name and address of
the 
12applicant, the name and address of the manufacturer he or she 
13represents,
the territory or areas assigned to sell to or 
14discuss pricing terms of
alcoholic liquor, and any other 
15questions deemed appropriate and necessary.
All statements in 
16the forms required to be made by law or by rule shall be
deemed 
17material, and any person who knowingly misstates any material 
18fact under
oath in an application is guilty of a Class B 
19misdemeanor. Fraud,
misrepresentation, false statements, 
20misleading statements, evasions, or
suppression of material 
21facts in the securing of a registration are grounds for

22suspension or revocation of the registration. The State 
23Commission shall post a list of registered agents on the 
24Commission's website.
25 (b) A distributor's license shall allow the wholesale 
26purchase and storage
of alcoholic liquors and sale of alcoholic 
 
 
10000SB0007ham003- 494 -LRB100 06307 SMS 40923 a


1liquors to licensees
in this State and to persons without the 
2State, as may be permitted by law. No person licensed as a 
3distributor shall be granted a non-resident dealer's license.
4 (c) An importing distributor's license may be issued to and 
5held by
those only who are duly licensed distributors, upon the 
6filing of an
application by a duly licensed distributor, with 
7the Commission and
the Commission shall, without the
payment of 
8any fee, immediately issue such importing distributor's

9license to the applicant, which shall allow the importation of 
10alcoholic
liquor by the licensee into this State from any point 
11in the United
States outside this State, and the purchase of 
12alcoholic liquor in
barrels, casks or other bulk containers and 
13the bottling of such
alcoholic liquors before resale thereof, 
14but all bottles or containers
so filled shall be sealed, 
15labeled, stamped and otherwise made to comply
with all 
16provisions, rules and regulations governing manufacturers in

17the preparation and bottling of alcoholic liquors. The 
18importing
distributor's license shall permit such licensee to 
19purchase alcoholic
liquor from Illinois licensed non-resident 
20dealers and foreign importers only. No person licensed as an 
21importing distributor shall be granted a non-resident dealer's 
22license.
23 (d) A retailer's license shall allow the licensee to sell 
24and offer
for sale at retail, only in the premises specified in 
25the license,
alcoholic liquor for use or consumption, but not 
26for resale in any form. Nothing in Public Act 95-634 shall 
 
 
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1deny, limit, remove, or restrict the ability of a holder of a 
2retailer's license to transfer, deliver, or ship alcoholic 
3liquor to the purchaser for use or consumption subject to any 
4applicable local law or ordinance. Any retail license issued to 
5a manufacturer shall only
permit the manufacturer to sell beer 
6at retail on the premises actually
occupied by the 
7manufacturer. For the purpose of further describing the type of 
8business conducted at a retail licensed premises, a retailer's 
9licensee may be designated by the State Commission as (i) an on 
10premise consumption retailer, (ii) an off premise sale 
11retailer, or (iii) a combined on premise consumption and off 
12premise sale retailer.

13 Notwithstanding any other provision of this subsection 
14(d), a retail
licensee may sell alcoholic liquors to a special 
15event retailer licensee for
resale to the extent permitted 
16under subsection (e).
17 (e) A special event retailer's license (not-for-profit) 
18shall permit the
licensee to purchase alcoholic liquors from an 
19Illinois licensed distributor
(unless the licensee purchases 
20less than $500 of alcoholic liquors for the
special event, in 
21which case the licensee may purchase the alcoholic liquors
from 
22a licensed retailer) and shall allow the licensee to sell and 
23offer for
sale, at retail, alcoholic liquors for use or 
24consumption, but not for resale
in any form and only at the 
25location and on the specific dates designated for
the special 
26event in the license. An applicant for a special event retailer

 
 
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1license must
(i) furnish with the application: (A) a resale 
2number issued under Section
2c of the Retailers' Occupation Tax 
3Act or evidence that the applicant is
registered under Section 
42a of the Retailers' Occupation Tax Act, (B) a
current, valid 
5exemption identification
number issued under Section 1g of the 
6Retailers' Occupation Tax Act, and a
certification to the 
7Commission that the purchase of alcoholic liquors will be
a 
8tax-exempt purchase, or (C) a statement that the applicant is 
9not registered
under Section 2a of the Retailers' Occupation 
10Tax Act, does not hold a resale
number under Section 2c of the 
11Retailers' Occupation Tax Act, and does not
hold an exemption 
12number under Section 1g of the Retailers' Occupation Tax
Act, 
13in which event the Commission shall set forth on the special 
14event
retailer's license a statement to that effect; (ii) 
15submit with the application proof satisfactory to
the State 
16Commission that the applicant will provide dram shop liability

17insurance in the maximum limits; and (iii) show proof 
18satisfactory to the
State Commission that the applicant has 
19obtained local authority
approval.
20 (f) A railroad license shall permit the licensee to import 
21alcoholic
liquors into this State from any point in the United 
22States outside this
State and to store such alcoholic liquors 
23in this State; to make wholesale
purchases of alcoholic liquors 
24directly from manufacturers, foreign
importers, distributors 
25and importing distributors from within or outside
this State; 
26and to store such alcoholic liquors in this State; provided

 
 
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1that the above powers may be exercised only in connection with 
2the
importation, purchase or storage of alcoholic liquors to be 
3sold or
dispensed on a club, buffet, lounge or dining car 
4operated on an electric,
gas or steam railway in this State; 
5and provided further, that railroad
licensees exercising the 
6above powers shall be subject to all provisions of
Article VIII 
7of this Act as applied to importing distributors. A railroad

8license shall also permit the licensee to sell or dispense 
9alcoholic
liquors on any club, buffet, lounge or dining car 
10operated on an electric,
gas or steam railway regularly 
11operated by a common carrier in this State,
but shall not 
12permit the sale for resale of any alcoholic liquors to any

13licensee within this State. A license shall be obtained for 
14each car in which
such sales are made.
15 (g) A boat license shall allow the sale of alcoholic liquor 
16in
individual drinks, on any passenger boat regularly operated 
17as a common
carrier on navigable waters in this State or on any 
18riverboat operated
under
the Illinois Riverboat Gambling Act, 
19which boat or riverboat maintains a public
dining room or 
20restaurant thereon.
21 (h) A non-beverage user's license shall allow the licensee 
22to
purchase alcoholic liquor from a licensed manufacturer or 
23importing
distributor, without the imposition of any tax upon 
24the business of such
licensed manufacturer or importing 
25distributor as to such alcoholic
liquor to be used by such 
26licensee solely for the non-beverage purposes
set forth in 
 
 
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1subsection (a) of Section 8-1 of this Act, and
such licenses 
2shall be divided and classified and shall permit the
purchase, 
3possession and use of limited and stated quantities of

4alcoholic liquor as follows:
5Class 1, not to exceed ......................... 500 gallons

6Class 2, not to exceed ....................... 1,000 gallons

7Class 3, not to exceed ....................... 5,000 gallons

8Class 4, not to exceed ...................... 10,000 gallons

9Class 5, not to exceed ....................... 50,000 gallons
10 (i) A wine-maker's premises license shall allow a
licensee 
11that concurrently holds a first-class wine-maker's license to 
12sell
and offer for sale at retail in the premises specified in 
13such license
not more than 50,000 gallons of the first-class 
14wine-maker's wine that is
made at the first-class wine-maker's 
15licensed premises per year for use or
consumption, but not for 
16resale in any form. A wine-maker's premises
license shall allow 
17a licensee who concurrently holds a second-class
wine-maker's 
18license to sell and offer for sale at retail in the premises

19specified in such license up to 100,000 gallons of the

20second-class wine-maker's wine that is made at the second-class 
21wine-maker's
licensed premises per year
for use or consumption 
22but not for resale in any form. A wine-maker's premises license 
23shall allow a
licensee that concurrently holds a first-class 
24wine-maker's license or a second-class
wine-maker's license to 
25sell
and offer for sale at retail at the premises specified in 
26the wine-maker's premises license, for use or consumption but 
 
 
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1not for resale in any form, any beer, wine, and spirits 
2purchased from a licensed distributor. Upon approval from the

3State Commission, a wine-maker's premises license
shall allow 
4the licensee to sell and offer for sale at (i) the wine-maker's

5licensed premises and (ii) at up to 2 additional locations for 
6use and
consumption and not for resale. Each location shall 
7require additional
licensing per location as specified in 
8Section 5-3 of this Act. A wine-maker's premises licensee shall

9secure liquor liability insurance coverage in an amount at

10least equal to the maximum liability amounts set forth in

11subsection (a) of Section 6-21 of this Act.

12 (j) An airplane license shall permit the licensee to import

13alcoholic liquors into this State from any point in the United 
14States
outside this State and to store such alcoholic liquors 
15in this State; to
make wholesale purchases of alcoholic liquors 
16directly from
manufacturers, foreign importers, distributors 
17and importing
distributors from within or outside this State; 
18and to store such
alcoholic liquors in this State; provided 
19that the above powers may be
exercised only in connection with 
20the importation, purchase or storage
of alcoholic liquors to be 
21sold or dispensed on an airplane; and
provided further, that 
22airplane licensees exercising the above powers
shall be subject 
23to all provisions of Article VIII of this Act as
applied to 
24importing distributors. An airplane licensee shall also
permit 
25the sale or dispensing of alcoholic liquors on any passenger

26airplane regularly operated by a common carrier in this State, 
 
 
10000SB0007ham003- 500 -LRB100 06307 SMS 40923 a


1but shall
not permit the sale for resale of any alcoholic 
2liquors to any licensee
within this State. A single airplane 
3license shall be required of an
airline company if liquor 
4service is provided on board aircraft in this
State. The annual 
5fee for such license shall be as determined in
Section 5-3.
6 (k) A foreign importer's license shall permit such licensee 
7to purchase
alcoholic liquor from Illinois licensed 
8non-resident dealers only, and to
import alcoholic liquor other 
9than in bulk from any point outside the
United States and to 
10sell such alcoholic liquor to Illinois licensed
importing 
11distributors and to no one else in Illinois;
provided that (i) 
12the foreign importer registers with the State Commission
every

13brand of
alcoholic liquor that it proposes to sell to Illinois 
14licensees during the
license period, (ii) the foreign importer 
15complies with all of the provisions
of Section
6-9 of this Act 
16with respect to registration of such Illinois licensees as may

17be granted the
right to sell such brands at wholesale, and 
18(iii) the foreign importer complies with the provisions of 
19Sections 6-5 and 6-6 of this Act to the same extent that these 
20provisions apply to manufacturers.
21 (l) (i) A broker's license shall be required of all persons

22who solicit
orders for, offer to sell or offer to supply 
23alcoholic liquor to
retailers in the State of Illinois, or who 
24offer to retailers to ship or
cause to be shipped or to make 
25contact with distillers, rectifiers,
brewers or manufacturers 
26or any other party within or without the State
of Illinois in 
 
 
10000SB0007ham003- 501 -LRB100 06307 SMS 40923 a


1order that alcoholic liquors be shipped to a distributor,

2importing distributor or foreign importer, whether such 
3solicitation or
offer is consummated within or without the 
4State of Illinois.
5 No holder of a retailer's license issued by the Illinois 
6Liquor
Control Commission shall purchase or receive any 
7alcoholic liquor, the
order for which was solicited or offered 
8for sale to such retailer by a
broker unless the broker is the 
9holder of a valid broker's license.
10 The broker shall, upon the acceptance by a retailer of the 
11broker's
solicitation of an order or offer to sell or supply or 
12deliver or have
delivered alcoholic liquors, promptly forward 
13to the Illinois Liquor
Control Commission a notification of 
14said transaction in such form as
the Commission may by 
15regulations prescribe.
16 (ii) A broker's license shall be required of
a person 
17within this State, other than a retail licensee,
who, for a fee 
18or commission, promotes, solicits, or accepts orders for

19alcoholic liquor, for use or consumption and not for
resale, to 
20be shipped from this State and delivered to residents outside 
21of
this State by an express company, common carrier, or 
22contract carrier.
This Section does not apply to any person who 
23promotes, solicits, or accepts
orders for wine as specifically 
24authorized in Section 6-29 of this Act.
25 A broker's license under this subsection (l)
shall not 
26entitle the holder to
buy or sell any
alcoholic liquors for his 
 
 
10000SB0007ham003- 502 -LRB100 06307 SMS 40923 a


1own account or to take or deliver title to
such alcoholic 
2liquors.
3 This subsection (l)
shall not apply to distributors, 
4employees of
distributors, or employees of a manufacturer who 
5has registered the
trademark, brand or name of the alcoholic 
6liquor pursuant to Section 6-9
of this Act, and who regularly 
7sells such alcoholic liquor
in the State of Illinois only to 
8its registrants thereunder.
9 Any agent, representative, or person subject to 
10registration pursuant to
subsection (a-1) of this Section shall 
11not be eligible to receive a broker's
license.
12 (m) A non-resident dealer's license shall permit such 
13licensee to ship
into and warehouse alcoholic liquor into this 
14State from any point
outside of this State, and to sell such 
15alcoholic liquor to Illinois licensed
foreign importers and 
16importing distributors and to no one else in this State;

17provided that (i) said non-resident dealer shall register with 
18the Illinois Liquor
Control Commission each and every brand of 
19alcoholic liquor which it proposes
to sell to Illinois 
20licensees during the license period, (ii) it shall comply with 
21all of the provisions of Section 6-9 hereof with
respect to 
22registration of such Illinois licensees as may be granted the 
23right
to sell such brands at wholesale, and (iii) the 
24non-resident dealer shall comply with the provisions of 
25Sections 6-5 and 6-6 of this Act to the same extent that these 
26provisions apply to manufacturers. No person licensed as a 
 
 
10000SB0007ham003- 503 -LRB100 06307 SMS 40923 a


1non-resident dealer shall be granted a distributor's or 
2importing distributor's license.
3 (n) A brew pub license shall allow the licensee to only (i) 
4manufacture up to 155,000 gallons of beer per year only
on the 
5premises specified in the license, (ii) make sales of the
beer 
6manufactured on the premises or, with the approval of the 
7Commission, beer manufactured on another brew pub licensed 
8premises that is wholly owned and operated by the same licensee 
9to importing distributors, distributors,
and to non-licensees 
10for use and consumption, (iii) store the beer upon
the 
11premises, (iv) sell and offer for sale at retail from the 
12licensed
premises for off-premises
consumption no more than 
13155,000 gallons per year so long as such sales are only made 
14in-person, (v) sell and offer for sale at retail for use and 
15consumption on the premises specified in the license any form 
16of alcoholic liquor purchased from a licensed distributor or 
17importing distributor, and (vi) with the prior approval of the 
18Commission, annually transfer no more than 155,000 gallons of 
19beer manufactured on the premises to a licensed brew pub wholly 
20owned and operated by the same licensee.
21 A brew pub licensee shall not under any circumstance sell 
22or offer for sale beer manufactured by the brew pub licensee to 
23retail licensees. 
24 A person who holds a class 2 brewer license may 
25simultaneously hold a brew pub license if the class 2 brewer 
26(i) does not, under any circumstance, sell or offer for sale 
 
 
10000SB0007ham003- 504 -LRB100 06307 SMS 40923 a


1beer manufactured by the class 2 brewer to retail licensees; 
2(ii) does not hold more than 3 brew pub licenses in this State; 
3(iii) does not manufacture more than a combined 3,720,000 
4gallons of beer per year, including the beer manufactured at 
5the brew pub; and (iv) is not a member of or affiliated with, 
6directly or indirectly, a manufacturer that produces more than 
73,720,000 gallons of beer per year or any other alcoholic 
8liquor.
9 Notwithstanding any other provision of this Act, a licensed 
10brewer, class 2 brewer, or non-resident dealer who before July 
111, 2015 manufactured less than 3,720,000 gallons of beer per 
12year and held a brew pub license on or before July 1, 2015 may 
13(i) continue to qualify for and hold that brew pub license for 
14the licensed premises and (ii) manufacture more than 3,720,000 
15gallons of beer per year and continue to qualify for and hold 
16that brew pub license if that brewer, class 2 brewer, or 
17non-resident dealer does not simultaneously hold a class 1 
18brewer license and is not a member of or affiliated with, 
19directly or indirectly, a manufacturer that produces more than 
203,720,000 gallons of beer per year or that produces any other 
21alcoholic liquor. 
22 (o) A caterer retailer license shall allow the holder
to 
23serve alcoholic liquors as an incidental part of a food service 
24that serves
prepared meals which excludes the serving of snacks 
25as
the primary meal, either on or off-site whether licensed or 
26unlicensed.
 
 
10000SB0007ham003- 505 -LRB100 06307 SMS 40923 a


1 (p) An auction liquor license shall allow the licensee to 
2sell and offer
for sale at auction wine and spirits for use or 
3consumption, or for resale by
an Illinois liquor licensee in 
4accordance with provisions of this Act. An
auction liquor 
5license will be issued to a person and it will permit the

6auction liquor licensee to hold the auction anywhere in the 
7State. An auction
liquor license must be obtained for each 
8auction at least 14 days in advance of
the auction date.
9 (q) A special use permit license shall allow an Illinois 
10licensed
retailer to transfer a portion of its alcoholic liquor 
11inventory from its
retail licensed premises to the premises 
12specified in the license hereby
created, and to sell or offer 
13for sale at retail, only in the premises
specified in the 
14license hereby created, the transferred alcoholic liquor for

15use or consumption, but not for resale in any form. A special 
16use permit
license may be granted for the following time 
17periods: one day or less; 2 or
more days to a maximum of 15 days 
18per location in any 12-month period. An
applicant for the 
19special use permit license must also submit with the

20application proof satisfactory to the State Commission that the 
21applicant will
provide dram shop liability insurance to the 
22maximum limits and have local
authority approval.
23 (r) A winery shipper's license shall allow a person
with a 
24first-class or second-class wine manufacturer's
license, a 
25first-class or second-class wine-maker's license,
or a limited 
26wine manufacturer's license or who is licensed to
make wine 
 
 
10000SB0007ham003- 506 -LRB100 06307 SMS 40923 a


1under the laws of another state to ship wine
made by that 
2licensee directly to a resident of this
State who is 21 years 
3of age or older for that resident's
personal use and not for 
4resale. Prior to receiving a
winery shipper's license, an 
5applicant for the license must
provide the Commission with a 
6true copy of its current
license in any state in which it is 
7licensed as a manufacturer
of wine. An applicant for a winery 
8shipper's license must
also complete an application form that 
9provides any other
information the Commission deems necessary. 
10The application form shall include all addresses from which the 
11applicant for a winery shipper's license intends to ship wine, 
12including the name and address of any third party, except for a 
13common carrier, authorized to ship wine on behalf of the 
14manufacturer. The
application form shall include an 
15acknowledgement consenting
to the jurisdiction of the 
16Commission, the Illinois
Department of Revenue, and the courts 
17of this State concerning
the enforcement of this Act and any 
18related laws, rules, and
regulations, including authorizing 
19the Department of Revenue
and the Commission to conduct audits 
20for the purpose of
ensuring compliance with Public Act 95-634, 
21and an acknowledgement that the wine manufacturer is in 
22compliance with Section 6-2 of this Act. Any third party, 
23except for a common carrier, authorized to ship wine on behalf 
24of a first-class or second-class wine manufacturer's licensee, 
25a first-class or second-class wine-maker's licensee, a limited 
26wine manufacturer's licensee, or a person who is licensed to 
 
 
10000SB0007ham003- 507 -LRB100 06307 SMS 40923 a


1make wine under the laws of another state shall also be 
2disclosed by the winery shipper's licensee, and a copy of the 
3written appointment of the third-party wine provider, except 
4for a common carrier, to the wine manufacturer shall be filed 
5with the State Commission as a supplement to the winery 
6shipper's license application or any renewal thereof. The 
7winery shipper's license holder shall affirm under penalty of 
8perjury, as part of the winery shipper's license application or 
9renewal, that he or she only ships wine, either directly or 
10indirectly through a third-party provider, from the licensee's 
11own production.
12 Except for a common carrier, a third-party provider 
13shipping wine on behalf of a winery shipper's license holder is 
14the agent of the winery shipper's license holder and, as such, 
15a winery shipper's license holder is responsible for the acts 
16and omissions of the third-party provider acting on behalf of 
17the license holder. A third-party provider, except for a common 
18carrier, that engages in shipping wine into Illinois on behalf 
19of a winery shipper's license holder shall consent to the 
20jurisdiction of the State Commission and the State. Any 
21third-party, except for a common carrier, holding such an 
22appointment shall, by February 1 of each calendar year and upon 
23request by the State Commission or the Department of Revenue, 
24file with the State Commission a statement detailing each 
25shipment made to an Illinois resident. The statement shall 
26include the name and address of the third-party provider filing 
 
 
10000SB0007ham003- 508 -LRB100 06307 SMS 40923 a


1the statement, the time period covered by the statement, and 
2the following information: 
3  (1) the name, address, and license number of the winery 
4 shipper on whose behalf the shipment was made;
5  (2) the quantity of the products delivered; and
6  (3) the date and address of the shipment. 
7If the Department of Revenue or the State Commission requests a 
8statement under this paragraph, the third-party provider must 
9provide that statement no later than 30 days after the request 
10is made. Any books, records, supporting papers, and documents 
11containing information and data relating to a statement under 
12this paragraph shall be kept and preserved for a period of 3 
13years, unless their destruction sooner is authorized, in 
14writing, by the Director of Revenue, and shall be open and 
15available to inspection by the Director of Revenue or the State 
16Commission or any duly authorized officer, agent, or employee 
17of the State Commission or the Department of Revenue, at all 
18times during business hours of the day. Any person who violates 
19any provision of this paragraph or any rule of the State 
20Commission for the administration and enforcement of the 
21provisions of this paragraph is guilty of a Class C 
22misdemeanor. In case of a continuing violation, each day's 
23continuance thereof shall be a separate and distinct offense. 
24 The State Commission shall adopt rules as soon as 
25practicable to implement the requirements of Public Act 99-904 
26and shall adopt rules prohibiting any such third-party 
 
 
10000SB0007ham003- 509 -LRB100 06307 SMS 40923 a


1appointment of a third-party provider, except for a common 
2carrier, that has been deemed by the State Commission to have 
3violated the provisions of this Act with regard to any winery 
4shipper licensee.
5 A winery shipper licensee must pay to the Department
of 
6Revenue the State liquor gallonage tax under Section 8-1 for

7all wine that is sold by the licensee and shipped to a person

8in this State. For the purposes of Section 8-1, a winery

9shipper licensee shall be taxed in the same manner as a

10manufacturer of wine. A licensee who is not otherwise required 
11to register under the Retailers' Occupation Tax Act must

12register under the Use Tax Act to collect and remit use tax to

13the Department of Revenue for all gallons of wine that are sold

14by the licensee and shipped to persons in this State. If a

15licensee fails to remit the tax imposed under this Act in

16accordance with the provisions of Article VIII of this Act, the

17winery shipper's license shall be revoked in accordance
with 
18the provisions of Article VII of this Act. If a licensee
fails 
19to properly register and remit tax under the Use Tax Act
or the 
20Retailers' Occupation Tax Act for all wine that is sold
by the 
21winery shipper and shipped to persons in this
State, the winery 
22shipper's license shall be revoked in
accordance with the 
23provisions of Article VII of this Act.
24 A winery shipper licensee must collect, maintain, and

25submit to the Commission on a semi-annual basis the
total 
26number of cases per resident of wine shipped to residents
of 
 
 
10000SB0007ham003- 510 -LRB100 06307 SMS 40923 a


1this State.
A winery shipper licensed under this subsection (r)

2must comply with the requirements of Section 6-29 of this Act.
3 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of 
4Section 3-12, the State Commission may receive, respond to, and 
5investigate any complaint and impose any of the remedies 
6specified in paragraph (1) of subsection (a) of Section 3-12.
7 As used in this subsection, "third-party provider" means 
8any entity that provides fulfillment house services, including 
9warehousing, packaging, distribution, order processing, or 
10shipment of wine, but not the sale of wine, on behalf of a 
11licensed winery shipper. 
12 (s) A craft distiller tasting permit license shall allow an 
13Illinois licensed craft distiller to transfer a portion of its 
14alcoholic liquor inventory from its craft distiller licensed 
15premises to the premises specified in the license hereby 
16created and to conduct a sampling, only in the premises 
17specified in the license hereby created, of the transferred 
18alcoholic liquor in accordance with subsection (c) of Section 
196-31 of this Act. The transferred alcoholic liquor may not be 
20sold or resold in any form. An applicant for the craft 
21distiller tasting permit license must also submit with the 
22application proof satisfactory to the State Commission that the 
23applicant will provide dram shop liability insurance to the 
24maximum limits and have local authority approval.
25(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16; 
2699-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff. 
 
 
10000SB0007ham003- 511 -LRB100 06307 SMS 40923 a


11-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17.)




2 (235 ILCS 5/6-30) (from Ch. 43, par. 144f)


3 Sec. 6-30. Notwithstanding any other provision of this Act, 
4the
Illinois Gaming Board shall have exclusive authority to 
5establish the hours
for sale and consumption of alcoholic 
6liquor on board a riverboat during
riverboat gambling 
7excursions and in a casino conducted in accordance with the 
8Illinois Riverboat
Gambling Act.

9(Source: P.A. 87-826.)



10 Section 90-46. The Illinois Public Aid Code is amended by 
11changing Section 10-17.15 as follows:

12 (305 ILCS 5/10-17.15)
13 Sec. 10-17.15. Certification of information to State 
14gaming licensees.
15 (a) For purposes of this Section, "State gaming licensee" 
16means, as applicable, an organization licensee or advance 
17deposit wagering licensee licensed under the Illinois Horse 
18Racing Act of 1975, an owners licensee licensed under the 
19Illinois Riverboat Gambling Act, or a licensee that operates, 
20under any law of this State, one or more facilities or gaming 
21locations at which lawful gambling is authorized and licensed 
22as provided in the Illinois Riverboat Gambling Act.
23 (b) The Department may provide, by rule, for certification 
 
 
10000SB0007ham003- 512 -LRB100 06307 SMS 40923 a


1to any State gaming licensee of past due child support owed by 
2a responsible relative under a support order entered by a court 
3or administrative body of this or any other State on behalf of 
4a resident or non-resident receiving child support services 
5under this Article in accordance with the requirements of Title 
6IV-D, Part D, of the Social Security Act. The State gaming 
7licensee shall have the ability to withhold from winnings 
8required to be reported to the Internal Revenue Service on Form 
9W-2G, up to the full amount of winnings necessary to pay the 
10winner's past due child support. The rule shall provide for 
11notice to and an opportunity to be heard by each responsible 
12relative affected and any final administrative decision 
13rendered by the Department shall be reviewed only under and in 
14accordance with the Administrative Review Law.
15 (c) For withholding of winnings, the State gaming licensee 
16shall be entitled to an administrative fee not to exceed the 
17lesser of 4% of the total amount of cash winnings paid to the 
18gambling winner or $150.
19 (d) In no event may the total amount withheld from the cash 
20payout, including the administrative fee, exceed the total cash 
21winnings claimed by the obligor. If the cash payout claimed is 
22greater than the amount sufficient to satisfy the obligor's 
23delinquent child support payments, the State gaming licensee 
24shall pay the obligor the remaining balance of the payout, less 
25the administrative fee authorized by subsection (c) of this 
26Section, at the time it is claimed.
 
 
10000SB0007ham003- 513 -LRB100 06307 SMS 40923 a


1 (e) A State gaming licensee who in good faith complies with 
2the requirements of this Section shall not be liable to the 
3gaming winner or any other individual or entity. 

4(Source: P.A. 98-318, eff. 8-12-13.)

5 Section 90-47. The Firearm Concealed Carry Act is amended 
6by changing Section 65 as follows:

7 (430 ILCS 66/65)

8 Sec. 65. Prohibited areas. 
9 (a) A licensee under this Act shall not knowingly carry a 
10firearm on or into:
11  (1) Any building, real property, and parking area under 
12 the control of a public or private elementary or secondary 
13 school.
14  (2) Any building, real property, and parking area under 
15 the control of a pre-school or child care facility, 
16 including any room or portion of a building under the 
17 control of a pre-school or child care facility. Nothing in 
18 this paragraph shall prevent the operator of a child care 
19 facility in a family home from owning or possessing a 
20 firearm in the home or license under this Act, if no child 
21 under child care at the home is present in the home or the 
22 firearm in the home is stored in a locked container when a 
23 child under child care at the home is present in the home.
24  (3) Any building, parking area, or portion of a 
 
 
10000SB0007ham003- 514 -LRB100 06307 SMS 40923 a


1 building under the control of an officer of the executive 
2 or legislative branch of government, provided that nothing 
3 in this paragraph shall prohibit a licensee from carrying a 
4 concealed firearm onto the real property, bikeway, or trail 
5 in a park regulated by the Department of Natural Resources 
6 or any other designated public hunting area or building 
7 where firearm possession is permitted as established by the 
8 Department of Natural Resources under Section 1.8 of the 
9 Wildlife Code.
10  (4) Any building designated for matters before a 
11 circuit court, appellate court, or the Supreme Court, or 
12 any building or portion of a building under the control of 
13 the Supreme Court.
14  (5) Any building or portion of a building under the 
15 control of a unit of local government.
16  (6) Any building, real property, and parking area under 
17 the control of an adult or juvenile detention or 
18 correctional institution, prison, or jail.
19  (7) Any building, real property, and parking area under 
20 the control of a public or private hospital or hospital 
21 affiliate, mental health facility, or nursing home.
22  (8) Any bus, train, or form of transportation paid for 
23 in whole or in part with public funds, and any building, 
24 real property, and parking area under the control of a 
25 public transportation facility paid for in whole or in part 
26 with public funds.
 
 
10000SB0007ham003- 515 -LRB100 06307 SMS 40923 a


1  (9) Any building, real property, and parking area under 
2 the control of an establishment that serves alcohol on its 
3 premises, if more than 50% of the establishment's gross 
4 receipts within the prior 3 months is from the sale of 
5 alcohol. The owner of an establishment who knowingly fails 
6 to prohibit concealed firearms on its premises as provided 
7 in this paragraph or who knowingly makes a false statement 
8 or record to avoid the prohibition on concealed firearms 
9 under this paragraph is subject to the penalty under 
10 subsection (c-5) of Section 10-1 of the Liquor Control Act 
11 of 1934.
12  (10) Any public gathering or special event conducted on 
13 property open to the public that requires the issuance of a 
14 permit from the unit of local government, provided this 
15 prohibition shall not apply to a licensee who must walk 
16 through a public gathering in order to access his or her 
17 residence, place of business, or vehicle.
18  (11) Any building or real property that has been issued 
19 a Special Event Retailer's license as defined in Section 
20 1-3.17.1 of the Liquor Control Act during the time 
21 designated for the sale of alcohol by the Special Event 
22 Retailer's license, or a Special use permit license as 
23 defined in subsection (q) of Section 5-1 of the Liquor 
24 Control Act during the time designated for the sale of 
25 alcohol by the Special use permit license.
26  (12) Any public playground.
 
 
10000SB0007ham003- 516 -LRB100 06307 SMS 40923 a


1  (13) Any public park, athletic area, or athletic 
2 facility under the control of a municipality or park 
3 district, provided nothing in this Section shall prohibit a 
4 licensee from carrying a concealed firearm while on a trail 
5 or bikeway if only a portion of the trail or bikeway 
6 includes a public park.
7  (14) Any real property under the control of the Cook 
8 County Forest Preserve District.
9  (15) Any building, classroom, laboratory, medical 
10 clinic, hospital, artistic venue, athletic venue, 
11 entertainment venue, officially recognized 
12 university-related organization property, whether owned or 
13 leased, and any real property, including parking areas, 
14 sidewalks, and common areas under the control of a public 
15 or private community college, college, or university.
16  (16) Any building, real property, or parking area under 
17 the control of a gaming facility licensed under the 
18 Illinois Riverboat Gambling Act or the Illinois Horse 
19 Racing Act of 1975, including an inter-track wagering 
20 location licensee.
21  (17) Any stadium, arena, or the real property or 
22 parking area under the control of a stadium, arena, or any 
23 collegiate or professional sporting event.
24  (18) Any building, real property, or parking area under 
25 the control of a public library.
26  (19) Any building, real property, or parking area under 
 
 
10000SB0007ham003- 517 -LRB100 06307 SMS 40923 a


1 the control of an airport.
2  (20) Any building, real property, or parking area under 
3 the control of an amusement park.
4  (21) Any building, real property, or parking area under 
5 the control of a zoo or museum.
6  (22) Any street, driveway, parking area, property, 
7 building, or facility, owned, leased, controlled, or used 
8 by a nuclear energy, storage, weapons, or development site 
9 or facility regulated by the federal Nuclear Regulatory 
10 Commission. The licensee shall not under any circumstance 
11 store a firearm or ammunition in his or her vehicle or in a 
12 compartment or container within a vehicle located anywhere 
13 in or on the street, driveway, parking area, property, 
14 building, or facility described in this paragraph.
15  (23) Any area where firearms are prohibited under 
16 federal law.
17 (a-5) Nothing in this Act shall prohibit a public or 
18private community college, college, or university from:
19  (1) prohibiting persons from carrying a firearm within 
20 a vehicle owned, leased, or controlled by the college or 
21 university;
22  (2) developing resolutions, regulations, or policies 
23 regarding student, employee, or visitor misconduct and 
24 discipline, including suspension and expulsion;
25  (3) developing resolutions, regulations, or policies 
26 regarding the storage or maintenance of firearms, which 
 
 
10000SB0007ham003- 518 -LRB100 06307 SMS 40923 a


1 must include designated areas where persons can park 
2 vehicles that carry firearms; and
3  (4) permitting the carrying or use of firearms for the 
4 purpose of instruction and curriculum of officially 
5 recognized programs, including but not limited to military 
6 science and law enforcement training programs, or in any 
7 designated area used for hunting purposes or target 
8 shooting.
9 (a-10) The owner of private real property of any type may 
10prohibit the carrying of concealed firearms on the property 
11under his or her control. The owner must post a sign in 
12accordance with subsection (d) of this Section indicating that 
13firearms are prohibited on the property, unless the property is 
14a private residence.
15 (b) Notwithstanding subsections (a), (a-5), and (a-10) of 
16this Section except under paragraph (22) or (23) of subsection 
17(a), any licensee prohibited from carrying a concealed firearm 
18into the parking area of a prohibited location specified in 
19subsection (a), (a-5), or (a-10) of this Section shall be 
20permitted to carry a concealed firearm on or about his or her 
21person within a vehicle into the parking area and may store a 
22firearm or ammunition concealed in a case within a locked 
23vehicle or locked container out of plain view within the 
24vehicle in the parking area. A licensee may carry a concealed 
25firearm in the immediate area surrounding his or her vehicle 
26within a prohibited parking lot area only for the limited 
 
 
10000SB0007ham003- 519 -LRB100 06307 SMS 40923 a


1purpose of storing or retrieving a firearm within the vehicle's 
2trunk. For purposes of this subsection, "case" includes a glove 
3compartment or console that completely encloses the concealed 
4firearm or ammunition, the trunk of the vehicle, or a firearm 
5carrying box, shipping box, or other container.
6 (c) A licensee shall not be in violation of this Section 
7while he or she is traveling along a public right of way that 
8touches or crosses any of the premises under subsection (a), 
9(a-5), or (a-10) of this Section if the concealed firearm is 
10carried on his or her person in accordance with the provisions 
11of this Act or is being transported in a vehicle by the 
12licensee in accordance with all other applicable provisions of 
13law.
14 (d) Signs stating that the carrying of firearms is 
15prohibited shall be clearly and conspicuously posted at the 
16entrance of a building, premises, or real property specified in 
17this Section as a prohibited area, unless the building or 
18premises is a private residence. Signs shall be of a uniform 
19design as established by the Department and shall be 4 inches 
20by 6 inches in size. The Department shall adopt rules for 
21standardized signs to be used under this subsection.

22(Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)

23 Section 90-50.  The Criminal Code of 2012 is amended by 
24changing Sections 28-1, 28-1.1, 28-3,
28-5, and 28-7 as 
25follows:





 
 
10000SB0007ham003- 520 -LRB100 06307 SMS 40923 a


1 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)



2 Sec. 28-1. Gambling. 

3 (a) A person commits gambling when he or she:

4  (1) knowingly plays a game of chance or skill for money 
5 or other thing of
value, unless excepted in subsection (b) 
6 of this Section;

7  (2) knowingly makes a wager upon the result of any 
8 game, contest, or any
political nomination, appointment or 
9 election;

10  (3) knowingly operates, keeps, owns, uses, purchases, 
11 exhibits, rents, sells,
bargains for the sale or lease of, 
12 manufactures or distributes any
gambling device;

13  (4) contracts to have or give himself or herself or 
14 another the option to buy
or sell, or contracts to buy or 
15 sell, at a future time, any grain or
other commodity 
16 whatsoever, or any stock or security of any company,
where 
17 it is at the time of making such contract intended by both 
18 parties
thereto that the contract to buy or sell, or the 
19 option, whenever
exercised, or the contract resulting 
20 therefrom, shall be settled, not by
the receipt or delivery 
21 of such property, but by the payment only of
differences in 
22 prices thereof; however, the issuance, purchase, sale,

23 exercise, endorsement or guarantee, by or through a person 
24 registered
with the Secretary of State pursuant to Section 
25 8 of the Illinois
Securities Law of 1953, or by or through 
 
 
10000SB0007ham003- 521 -LRB100 06307 SMS 40923 a


1 a person exempt from such
registration under said Section 
2 8, of a put, call, or other option to
buy or sell 
3 securities which have been registered with the Secretary of

4 State or which are exempt from such registration under 
5 Section 3 of the
Illinois Securities Law of 1953 is not 
6 gambling within the meaning of
this paragraph (4);

7  (5) knowingly owns or possesses any book, instrument or 
8 apparatus by
means of which bets or wagers have been, or 
9 are, recorded or registered,
or knowingly possesses any 
10 money which he has received in the course of
a bet or 
11 wager;

12  (6) knowingly sells pools upon the result of any game 
13 or contest of skill or
chance, political nomination, 
14 appointment or election;

15  (7) knowingly sets up or promotes any lottery or sells, 
16 offers to sell or
transfers any ticket or share for any 
17 lottery;

18  (8) knowingly sets up or promotes any policy game or 
19 sells, offers to sell or
knowingly possesses or transfers 
20 any policy ticket, slip, record,
document or other similar 
21 device;

22  (9) knowingly drafts, prints or publishes any lottery 
23 ticket or share,
or any policy ticket, slip, record, 
24 document or similar device, except for
such activity 
25 related to lotteries, bingo games and raffles authorized by

26 and conducted in accordance with the laws of Illinois or 
 
 
10000SB0007ham003- 522 -LRB100 06307 SMS 40923 a


1 any other state or
foreign government;

2  (10) knowingly advertises any lottery or policy game, 
3 except for such
activity related to lotteries, bingo games 
4 and raffles authorized by and
conducted in accordance with 
5 the laws of Illinois or any other state;

6  (11) knowingly transmits information as to wagers, 
7 betting odds, or
changes in betting odds by telephone, 
8 telegraph, radio, semaphore or
similar means; or knowingly 
9 installs or maintains equipment for the
transmission or 
10 receipt of such information; except that nothing in this

11 subdivision (11) prohibits transmission or receipt of such 
12 information
for use in news reporting of sporting events or 
13 contests; or

14  (12) knowingly establishes, maintains, or operates an 
15 Internet site that
permits a person to play a game of

16 chance or skill for money or other thing of value by means 
17 of the Internet or
to make a wager upon the
result of any 
18 game, contest, political nomination, appointment, or

19 election by means of the Internet. This item (12) does not 
20 apply to activities referenced in items (6) and (6.1) of 
21 subsection (b) of this Section. 

22 (b) Participants in any of the following activities shall 
23not be
convicted of gambling:

24  (1) Agreements to compensate for loss caused by the 
25 happening of
chance including without limitation contracts 
26 of indemnity or guaranty
and life or health or accident 
 
 
10000SB0007ham003- 523 -LRB100 06307 SMS 40923 a


1 insurance.

2  (2) Offers of prizes, award or compensation to the 
3 actual
contestants in any bona fide contest for the 
4 determination of skill,
speed, strength or endurance or to 
5 the owners of animals or vehicles
entered in such contest.

6  (3) Pari-mutuel betting as authorized by the law of 
7 this State.

8  (4) Manufacture of gambling devices, including the 
9 acquisition of
essential parts therefor and the assembly 
10 thereof, for transportation in
interstate or foreign 
11 commerce to any place outside this State when such

12 transportation is not prohibited by any applicable Federal 
13 law; or the
manufacture, distribution, or possession of 
14 video gaming terminals, as
defined in the Video Gaming Act, 
15 by manufacturers, distributors, and
terminal operators 
16 licensed to do so under the Video Gaming Act.

17  (5) The game commonly known as "bingo", when conducted 
18 in accordance
with the Bingo License and Tax Act.

19  (6) Lotteries when conducted by the State of Illinois 
20 in accordance
with the Illinois Lottery Law. This exemption 
21 includes any activity conducted by the Department of 
22 Revenue to sell lottery tickets pursuant to the provisions 
23 of the Illinois Lottery Law and its rules.

24  (6.1) The purchase of lottery tickets through the 
25 Internet for a lottery conducted by the State of Illinois 
26 under the program established in Section 7.12 of the 
 
 
10000SB0007ham003- 524 -LRB100 06307 SMS 40923 a


1 Illinois Lottery Law.

2  (7) Possession of an antique slot machine that is 
3 neither used nor
intended to be used in the operation or 
4 promotion of any unlawful
gambling activity or enterprise. 
5 For the purpose of this subparagraph
(b)(7), an antique 
6 slot machine is one manufactured 25 years ago or earlier.

7  (8) Raffles and poker runs when conducted in accordance 
8 with the Raffles and Poker Runs Act.

9  (9) Charitable games when conducted in accordance with 
10 the Charitable
Games Act.

11  (10) Pull tabs and jar games when conducted under the 
12 Illinois Pull
Tabs and Jar Games Act.

13  (11) Gambling games conducted on riverboats when

14 authorized by the Illinois Riverboat Gambling Act.

15  (12) Video gaming terminal games at a licensed 
16 establishment, licensed truck stop establishment,
licensed

17 fraternal establishment, or licensed veterans 
18 establishment when
conducted in accordance with the Video 
19 Gaming Act. 
20  (13) Games of skill or chance where money or other 
21 things of value can be won but no payment or purchase is 
22 required to participate. 
23  (14) Savings promotion raffles authorized under 
24 Section 5g of the Illinois Banking Act, Section 7008 of the 
25 Savings Bank Act, Section 42.7 of the Illinois Credit Union 
26 Act, Section 5136B of the National Bank Act (12 U.S.C. 
 
 
10000SB0007ham003- 525 -LRB100 06307 SMS 40923 a


1 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C. 
2 1463). 
3  (15) Product promotion sweepstakes through an 
4 electronic product promotion sweepstakes kiosk authorized 
5 under the Sweepstakes, Prizes, and Gifts Act. 
6 (c) Sentence.

7 Gambling is a
Class A misdemeanor. A second or
subsequent 
8conviction under subsections (a)(3) through (a)(12),
is a Class 
94 felony.

10 (d) Circumstantial evidence.

11 In prosecutions under
this
Section circumstantial evidence 
12shall have the same validity and weight as
in any criminal 
13prosecution.

14(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)




15 (720 ILCS 5/28-1.1)
 (from Ch. 38, par. 28-1.1)



16 Sec. 28-1.1. Syndicated gambling. 

17 (a) Declaration of Purpose. Recognizing the close 
18relationship between
professional gambling and other organized 
19crime, it is declared to be the
policy of the legislature to 
20restrain persons from engaging in the business
of gambling for 
21profit in this State. This Section shall be liberally
construed 
22and administered with a view to carrying out this policy.

23 (b) A person commits syndicated gambling when he or she 
24operates a "policy
game" or engages in the business of 
25bookmaking.

 
 
10000SB0007ham003- 526 -LRB100 06307 SMS 40923 a


1 (c) A person "operates a policy game" when he or she 
2knowingly uses any
premises or property for the purpose of 
3receiving or knowingly does
receive from what is commonly 
4called "policy":

5  (1) money from a person other than the bettor or player 
6 whose
bets or plays are represented by the money; or

7  (2) written "policy game" records, made or used over 
8 any
period of time, from a person other than the bettor or 
9 player whose bets
or plays are represented by the written 
10 record.

11 (d) A person engages in bookmaking when he or she knowingly 
12receives or accepts more
than five bets or wagers upon the 
13result of any trials or contests of
skill, speed or power of 
14endurance or upon any lot, chance, casualty,
unknown or 
15contingent event whatsoever, which bets or wagers shall be of

16such size that the total of the amounts of money paid or 
17promised to be
paid to the bookmaker on account thereof shall 
18exceed $2,000.
Bookmaking is the receiving or accepting of bets 
19or wagers
regardless of the form or manner in which the 
20bookmaker records them.

21 (e) Participants in any of the following activities shall 
22not be
convicted of syndicated gambling:

23  (1) Agreements to compensate for loss caused by the 
24 happening
of chance including without limitation contracts 
25 of indemnity or
guaranty and life or health or accident 
26 insurance;

 
 
10000SB0007ham003- 527 -LRB100 06307 SMS 40923 a


1  (2) Offers of prizes, award or compensation to the 
2 actual
contestants in any bona fide contest for the 
3 determination of skill,
speed, strength or endurance or to 
4 the owners of animals or vehicles
entered in the contest;

5  (3) Pari-mutuel betting as authorized by law of this 
6 State;


7  (4) Manufacture of gambling devices, including the 
8 acquisition
of essential parts therefor and the assembly 
9 thereof, for transportation
in interstate or foreign 
10 commerce to any place outside this State when
the 
11 transportation is not prohibited by any applicable Federal 
12 law;

13  (5) Raffles and poker runs when conducted in accordance 
14 with the Raffles and Poker Runs Act;

15  (6) Gambling games conducted on riverboats, in 
16 casinos, or at organization gaming facilities when

17 authorized by the Illinois Riverboat Gambling Act;

18  (7) Video gaming terminal games at a licensed 
19 establishment, licensed truck stop establishment,
licensed

20 fraternal establishment, or licensed veterans 
21 establishment
when conducted in accordance with the Video 
22 Gaming Act; and

23  (8) Savings promotion raffles authorized under Section 
24 5g of the Illinois Banking Act, Section 7008 of the Savings 
25 Bank Act, Section 42.7 of the Illinois Credit Union Act, 
26 Section 5136B of the National Bank Act (12 U.S.C. 25a), or 
 
 
10000SB0007ham003- 528 -LRB100 06307 SMS 40923 a


1 Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463). 
2 (f) Sentence. Syndicated gambling is a Class 3 felony.

3(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)






4 (720 ILCS 5/28-3)
 (from Ch. 38, par. 28-3)



5 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is 
6any real
estate, vehicle, boat or any other property whatsoever 
7used for the
purposes of gambling other than gambling conducted 
8in the manner authorized
by the Illinois Riverboat Gambling Act 
9or the Video Gaming Act. Any person who
knowingly permits any 
10premises
or property owned or occupied by him or under his 
11control to be used as a
gambling place commits a Class A 
12misdemeanor. Each subsequent offense is a
Class 4 felony. When 
13any premises is determined by the circuit court to be
a 
14gambling place:

15 (a) Such premises is a public nuisance and may be proceeded 
16against as such,
and

17 (b) All licenses, permits or certificates issued by the 
18State of
Illinois or any subdivision or public agency thereof 
19authorizing the
serving of food or liquor on such premises 
20shall be void; and no license,
permit or certificate so 
21cancelled shall be reissued for such premises for
a period of 
2260 days thereafter; nor shall any person convicted of keeping a

23gambling place be reissued such license
for one year from his 
24conviction and, after a second conviction of keeping
a gambling 
25place, any such person shall not be reissued such license, and

 
 
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1 (c) Such premises of any person who knowingly permits 
2thereon a
violation of any Section of this Article shall be 
3held liable for, and may
be sold to pay any unsatisfied 
4judgment that may be recovered and any
unsatisfied fine that 
5may be levied under any Section of this Article.

6(Source: P.A. 96-34, eff. 7-13-09.)




7 (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)



8 (Text of Section before amendment by P.A. 100-512)

9 Sec. 28-5. Seizure of gambling devices and gambling funds. 

10 (a) Every device designed for gambling which is incapable 
11of lawful use
or every device used unlawfully for gambling 
12shall be considered a
"gambling device", and shall be subject 
13to seizure, confiscation and
destruction by the Department of 
14State Police or by any municipal, or other
local authority, 
15within whose jurisdiction the same may be found. As used
in 
16this Section, a "gambling device" includes any slot machine, 
17and
includes any machine or device constructed for the 
18reception of money or
other thing of value and so constructed 
19as to return, or to cause someone
to return, on chance to the 
20player thereof money, property or a right to
receive money or 
21property. With the exception of any device designed for

22gambling which is incapable of lawful use, no gambling device 
23shall be
forfeited or destroyed unless an individual with a 
24property interest in
said device knows of the unlawful use of 
25the device.

 
 
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1 (b) Every gambling device shall be seized and forfeited to 
2the county
wherein such seizure occurs. Any money or other 
3thing of value integrally
related to acts of gambling shall be 
4seized and forfeited to the county
wherein such seizure occurs.

5 (c) If, within 60 days after any seizure pursuant to 
6subparagraph
(b) of this Section, a person having any property 
7interest in the seized
property is charged with an offense, the 
8court which renders judgment
upon such charge shall, within 30 
9days after such judgment, conduct a
forfeiture hearing to 
10determine whether such property was a gambling device
at the 
11time of seizure. Such hearing shall be commenced by a written

12petition by the State, including material allegations of fact, 
13the name
and address of every person determined by the State to 
14have any property
interest in the seized property, a 
15representation that written notice of
the date, time and place 
16of such hearing has been mailed to every such
person by 
17certified mail at least 10 days before such date, and a
request 
18for forfeiture. Every such person may appear as a party and

19present evidence at such hearing. The quantum of proof required 
20shall
be a preponderance of the evidence, and the burden of 
21proof shall be on
the State. If the court determines that the 
22seized property was
a gambling device at the time of seizure, 
23an order of forfeiture and
disposition of the seized property 
24shall be entered: a gambling device
shall be received by the 
25State's Attorney, who shall effect its
destruction, except that 
26valuable parts thereof may be liquidated and
the resultant 
 
 
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1money shall be deposited in the general fund of the county

2wherein such seizure occurred; money and other things of value 
3shall be
received by the State's Attorney and, upon 
4liquidation, shall be
deposited in the general fund of the 
5county wherein such seizure
occurred. However, in the event 
6that a defendant raises the defense
that the seized slot 
7machine is an antique slot machine described in
subparagraph 
8(b)(7) of Section 28-1 of this Code and therefore he is
exempt 
9from the charge of a gambling activity participant, the seized

10antique slot machine shall not be destroyed or otherwise 
11altered until a
final determination is made by the Court as to 
12whether it is such an
antique slot machine. Upon a final 
13determination by the Court of this
question in favor of the 
14defendant, such slot machine shall be
immediately returned to 
15the defendant. Such order of forfeiture and
disposition shall, 
16for the purposes of appeal, be a final order and
judgment in a 
17civil proceeding.

18 (d) If a seizure pursuant to subparagraph (b) of this 
19Section is not
followed by a charge pursuant to subparagraph 
20(c) of this Section, or if
the prosecution of such charge is 
21permanently terminated or indefinitely
discontinued without 
22any judgment of conviction or acquittal (1) the
State's 
23Attorney shall commence an in rem proceeding for the forfeiture

24and destruction of a gambling device, or for the forfeiture and 
25deposit
in the general fund of the county of any seized money 
26or other things of
value, or both, in the circuit court and (2) 
 
 
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1any person having any
property interest in such seized gambling 
2device, money or other thing
of value may commence separate 
3civil proceedings in the manner provided
by law.

4 (e) Any gambling device displayed for sale to a riverboat 
5gambling
operation, casino gambling operation, or organization 
6gaming facility or used to train occupational licensees of a 
7riverboat gambling
operation, casino gambling operation, or 
8organization gaming facility as authorized under the Illinois 
9Riverboat Gambling Act is exempt from
seizure under this 
10Section.

11 (f) Any gambling equipment, devices and supplies provided 
12by a licensed
supplier in accordance with the Illinois 
13Riverboat Gambling Act which are removed
from a the riverboat, 
14casino, or organization gaming facility for repair are exempt 
15from seizure under this Section.

16 (g) The following video gaming terminals are exempt from 
17seizure under this Section:
18  (1) Video gaming terminals for sale to a licensed 
19 distributor or operator under the Video Gaming Act.
20  (2) Video gaming terminals used to train licensed 
21 technicians or licensed terminal handlers.
22  (3) Video gaming terminals that are removed from a 
23 licensed establishment, licensed truck stop establishment,

24 licensed
fraternal establishment, or licensed veterans 
25 establishment for repair. 
26(Source: P.A. 98-31, eff. 6-24-13.)


 
 
10000SB0007ham003- 533 -LRB100 06307 SMS 40923 a


1 (Text of Section after amendment by P.A. 100-512)

2 Sec. 28-5. Seizure of gambling devices and gambling funds. 

3 (a) Every device designed for gambling which is incapable 
4of lawful use
or every device used unlawfully for gambling 
5shall be considered a
"gambling device", and shall be subject 
6to seizure, confiscation and
destruction by the Department of 
7State Police or by any municipal, or other
local authority, 
8within whose jurisdiction the same may be found. As used
in 
9this Section, a "gambling device" includes any slot machine, 
10and
includes any machine or device constructed for the 
11reception of money or
other thing of value and so constructed 
12as to return, or to cause someone
to return, on chance to the 
13player thereof money, property or a right to
receive money or 
14property. With the exception of any device designed for

15gambling which is incapable of lawful use, no gambling device 
16shall be
forfeited or destroyed unless an individual with a 
17property interest in
said device knows of the unlawful use of 
18the device.

19 (b) Every gambling device shall be seized and forfeited to 
20the county
wherein such seizure occurs. Any money or other 
21thing of value integrally
related to acts of gambling shall be 
22seized and forfeited to the county
wherein such seizure occurs.

23 (c) If, within 60 days after any seizure pursuant to 
24subparagraph
(b) of this Section, a person having any property 
25interest in the seized
property is charged with an offense, the 
 
 
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1court which renders judgment
upon such charge shall, within 30 
2days after such judgment, conduct a
forfeiture hearing to 
3determine whether such property was a gambling device
at the 
4time of seizure. Such hearing shall be commenced by a written

5petition by the State, including material allegations of fact, 
6the name
and address of every person determined by the State to 
7have any property
interest in the seized property, a 
8representation that written notice of
the date, time and place 
9of such hearing has been mailed to every such
person by 
10certified mail at least 10 days before such date, and a
request 
11for forfeiture. Every such person may appear as a party and

12present evidence at such hearing. The quantum of proof required 
13shall
be a preponderance of the evidence, and the burden of 
14proof shall be on
the State. If the court determines that the 
15seized property was
a gambling device at the time of seizure, 
16an order of forfeiture and
disposition of the seized property 
17shall be entered: a gambling device
shall be received by the 
18State's Attorney, who shall effect its
destruction, except that 
19valuable parts thereof may be liquidated and
the resultant 
20money shall be deposited in the general fund of the county

21wherein such seizure occurred; money and other things of value 
22shall be
received by the State's Attorney and, upon 
23liquidation, shall be
deposited in the general fund of the 
24county wherein such seizure
occurred. However, in the event 
25that a defendant raises the defense
that the seized slot 
26machine is an antique slot machine described in
subparagraph 
 
 
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1(b) (7) of Section 28-1 of this Code and therefore he is
exempt 
2from the charge of a gambling activity participant, the seized

3antique slot machine shall not be destroyed or otherwise 
4altered until a
final determination is made by the Court as to 
5whether it is such an
antique slot machine. Upon a final 
6determination by the Court of this
question in favor of the 
7defendant, such slot machine shall be
immediately returned to 
8the defendant. Such order of forfeiture and
disposition shall, 
9for the purposes of appeal, be a final order and
judgment in a 
10civil proceeding.

11 (d) If a seizure pursuant to subparagraph (b) of this 
12Section is not
followed by a charge pursuant to subparagraph 
13(c) of this Section, or if
the prosecution of such charge is 
14permanently terminated or indefinitely
discontinued without 
15any judgment of conviction or acquittal (1) the
State's 
16Attorney shall commence an in rem proceeding for the forfeiture

17and destruction of a gambling device, or for the forfeiture and 
18deposit
in the general fund of the county of any seized money 
19or other things of
value, or both, in the circuit court and (2) 
20any person having any
property interest in such seized gambling 
21device, money or other thing
of value may commence separate 
22civil proceedings in the manner provided
by law.

23 (e) Any gambling device displayed for sale to a riverboat 
24gambling
operation, casino gambling operation, or organization 
25gaming facility or used to train occupational licensees of a 
26riverboat gambling
operation, casino gambling operation, or 
 
 
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1organization gaming facility as authorized under the Illinois 
2Riverboat Gambling Act is exempt from
seizure under this 
3Section.

4 (f) Any gambling equipment, devices and supplies provided 
5by a licensed
supplier in accordance with the Illinois 
6Riverboat Gambling Act which are removed
from a the riverboat, 
7casino, or organization gaming facility for repair are exempt 
8from seizure under this Section.

9 (g) The following video gaming terminals are exempt from 
10seizure under this Section:
11  (1) Video gaming terminals for sale to a licensed 
12 distributor or operator under the Video Gaming Act.
13  (2) Video gaming terminals used to train licensed 
14 technicians or licensed terminal handlers.
15  (3) Video gaming terminals that are removed from a 
16 licensed establishment, licensed truck stop establishment,

17 licensed
fraternal establishment, or licensed veterans 
18 establishment for repair. 
19 (h) Property seized or forfeited under this Section is 
20subject to reporting under the Seizure and Forfeiture Reporting 
21Act. 
22(Source: P.A. 100-512, eff. 7-1-18.)






23 (720 ILCS 5/28-7)
 (from Ch. 38, par. 28-7)



24 Sec. 28-7. Gambling contracts void. 

25 (a) All promises, notes, bills, bonds, covenants, 
 
 
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1contracts, agreements,
judgments, mortgages, or other 
2securities or conveyances made, given,
granted, drawn, or 
3entered into, or executed by any person whatsoever,
where the 
4whole or any part of the consideration thereof is for any
money 
5or thing of value, won or obtained in violation of any Section 
6of
this Article are null and void.

7 (b) Any obligation void under this Section may be set aside 
8and vacated
by any court of competent jurisdiction, upon a 
9complaint filed for that
purpose, by the person so granting, 
10giving, entering into, or executing the
same, or by his 
11executors or administrators, or by any creditor, heir,
legatee, 
12purchaser or other person interested therein; or if a judgment,

13the same may be set aside on motion of any person stated above, 
14on due
notice thereof given.

15 (c) No assignment of any obligation void under this Section 
16may in any
manner affect the defense of the person giving, 
17granting, drawing, entering
into or executing such obligation, 
18or the remedies of any person interested
therein.

19 (d) This Section shall not prevent a licensed owner of a 
20riverboat
gambling operation, a casino gambling operation, or 
21an organization gaming licensee under the Illinois Gambling
Act 
22and the Illinois Horse Racing Act of 1975 from instituting a 
23cause of
action to collect any amount due and owing under an 
24extension of credit to a
riverboat gambling patron as 
25authorized under Section 11.1 of the Illinois
Riverboat 
26Gambling Act.

 
 
10000SB0007ham003- 538 -LRB100 06307 SMS 40923 a


1(Source: P.A. 87-826.)



2 Section 90-55. The Eminent Domain Act is amended by adding 
3Section 15-5-48 as follows:

4 (735 ILCS 30/15-5-48 new)
5 Sec. 15-5-48. Eminent domain powers in new Acts. The 
6following provisions of law may include express grants of the 
7power to acquire property by condemnation or eminent domain:

8 Chicago Casino Development Authority Act; City of Chicago; for 
9 the purposes of the Act.

10 Section 90-60. The Payday Loan Reform Act is amended by 
11changing Section 3-5 as follows:

12 (815 ILCS 122/3-5)

13 Sec. 3-5. Licensure. 
14 (a) A license to make a payday loan shall state the 
15address,
including city and state, at which
the business is to 
16be conducted and shall state fully the name of the licensee.

17The license shall be conspicuously posted in the place of 
18business of the
licensee and shall not be transferable or 
19assignable.

20 (b) An application for a license shall be in writing and in 
21a form
prescribed by the Secretary. The Secretary may not issue 
 
 
10000SB0007ham003- 539 -LRB100 06307 SMS 40923 a


1a payday loan
license unless and until the following findings 
2are made:

3  (1) that the financial responsibility, experience, 
4 character, and general
fitness of the applicant are such as 
5 to command the confidence of the public
and to warrant the 
6 belief that the business will be operated lawfully and

7 fairly and within the provisions and purposes of this Act; 
8 and

9  (2) that the applicant has submitted such other 
10 information as the
Secretary may deem necessary.

11 (c) A license shall be issued for no longer than one year, 
12and no renewal
of a license may be provided if a licensee has 
13substantially violated this
Act and has not cured the violation 
14to the satisfaction of the Department.

15 (d) A licensee shall appoint, in writing, the Secretary as 
16attorney-in-fact
upon whom all lawful process against the 
17licensee may be served with the
same legal force and validity 
18as if served on the licensee. A copy of the
written 
19appointment, duly certified, shall be filed in the office of 
20the
Secretary, and a copy thereof certified by the Secretary 
21shall be sufficient
evidence to subject a licensee to 
22jurisdiction in a court of law. This appointment shall remain 
23in effect while any liability remains
outstanding in this State 
24against the licensee. When summons is served upon
the Secretary 
25as attorney-in-fact for a licensee, the Secretary shall 
26immediately
notify the licensee by registered mail, enclosing 
 
 
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1the summons and specifying
the hour and day of service.

2 (e) A licensee must pay an annual fee of $1,000. In 
3addition to the
license fee, the reasonable expense of any 
4examination or hearing
by the Secretary under any provisions of 
5this Act shall be borne by
the licensee. If a licensee fails to 
6renew its license by December 31,
its license
shall 
7automatically expire; however, the Secretary, in his or her 
8discretion,
may reinstate an expired license upon:

9  (1) payment of the annual fee within 30 days of the 
10 date of
expiration; and

11  (2) proof of good cause for failure to renew.

12 (f) Not more than one place of business shall be maintained 
13under the
same license, but the Secretary may issue more than 
14one license to the same
licensee upon compliance with all the 
15provisions of this Act governing
issuance of a single license. 
16The location, except those locations already in
existence as of 
17June 1, 2005, may not be within one mile of a
horse race track 
18subject to the Illinois Horse Racing Act of 1975,
within one 
19mile of a facility at which gambling is conducted under the 
20Illinois
Riverboat Gambling Act, within one mile of the 
21location at which a
riverboat subject to the Illinois Riverboat 
22Gambling Act docks, or within one mile of
any State of Illinois 
23or United States military base or naval installation.

24 (g) No licensee shall conduct the business of making loans 
25under this
Act within any office, suite, room, or place of 
26business in which (1) any loans are offered or made under the 
 
 
10000SB0007ham003- 541 -LRB100 06307 SMS 40923 a


1Consumer Installment Loan Act other than title secured loans as 
2defined in subsection (a) of Section 15 of the Consumer 
3Installment Loan Act and governed by Title 38, Section 110.330 
4of the Illinois Administrative Code or (2) any other
business 
5is solicited or engaged in unless the other business is 
6licensed by the Department or, in the opinion of the Secretary, 
7the
other business would not be contrary to the best interests 
8of consumers and
is authorized by the Secretary in writing.

9 (g-5) Notwithstanding subsection (g) of this Section, a 
10licensee may obtain a license under the Consumer Installment 
11Loan Act (CILA) for the exclusive purpose and use of making 
12title secured loans, as defined in subsection (a) of Section 15 
13of CILA and governed by Title 38, Section 110.300 of the 
14Illinois Administrative Code. A licensee may continue to 
15service Consumer Installment Loan Act loans that were 
16outstanding as of the effective date of this amendatory Act of 
17the 96th General Assembly. 
18 (h) The Secretary shall maintain a list of licensees that 
19shall be
available to interested consumers and lenders and the 
20public. The Secretary
shall maintain a toll-free number whereby 
21consumers may obtain
information about licensees. The 
22Secretary shall also establish a complaint
process under which 
23an aggrieved consumer
may file a complaint against a licensee 
24or non-licensee who violates any
provision of this Act.

25(Source: P.A. 96-936, eff. 3-21-11.)

 
 
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1 Section 90-65. The Travel Promotion Consumer Protection 
2Act is amended by changing Section 2 as follows:




3 (815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)



4 Sec. 2. Definitions. 

5 (a) "Travel promoter" means a person, including a tour 
6operator, who sells,
provides, furnishes, contracts for, 
7arranges or advertises that he or she will
arrange wholesale or 
8retail transportation by air, land, sea or navigable
stream, 
9either separately or in conjunction with other services. 
10"Travel
promoter" does not include (1) an air carrier; (2) a 
11sea carrier; (3) an
officially appointed agent of an air 
12carrier who is a member in good standing
of the Airline 
13Reporting Corporation; (4) a travel promoter who has in
force 
14$1,000,000 or more of liability insurance coverage for 
15professional
errors and omissions and a surety bond or 
16equivalent surety in the amount of
$100,000 or more for the 
17benefit of consumers in the event of a bankruptcy on
the part 
18of the travel promoter; or (5) a riverboat subject to 
19regulation under
the Illinois Riverboat Gambling Act.

20 (b) "Advertise" means to make any representation in the 
21solicitation of
passengers and includes communication with 
22other members of the same
partnership, corporation, joint 
23venture, association, organization, group or
other entity.

24 (c) "Passenger" means a person on whose behalf money or 
25other
consideration has been given or is to be given to 
 
 
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1another, including
another member of the same partnership, 
2corporation, joint venture,
association, organization, group 
3or other entity, for travel.

4 (d) "Ticket or voucher" means a writing or combination of 
5writings which
is itself good and sufficient to obtain

6transportation and other services for which the passenger has 
7contracted.

8(Source: P.A. 91-357, eff. 7-29-99.)


9 Section 90-67. The Prizes and Gifts Act is amended by 
10changing Sections 1 and 10 and by adding Sections 33 and 45 as 
11follows:




12 (815 ILCS 525/1)



13 Sec. 1. Short title. This Act may be cited as the 
14Sweepstakes, Prizes, and Gifts Act.

15(Source: P.A. 92-436, eff. 1-1-02.)





16 (815 ILCS 525/10)



17 Sec. 10. Definitions. As used in this Act:

18 "Bona fide product" means any item of real value, which may

19include vouchers or coupons, to be used for or towards the

20purchase of a retail item. "Bona fide product" does not include

21Internet access, a telephone card, a calling card, or a phone 
22card. 
23 "Catalog seller" means an
entity (and its subsidiaries) or 
 
 
10000SB0007ham003- 544 -LRB100 06307 SMS 40923 a


1a person at least 50% of whose annual revenues
are derived
from 
2the sale of products sold in connection with the distribution 
3of catalogs
of at least 24 pages,
which contain written 
4descriptions or illustrations and sale prices for each
item of 
5merchandise
and which are distributed in more than one state 
6with a total annual
distribution of at least
250,000.

7 "Electronic product promotion sweepstakes kiosk" means any 
8electronic video machine that, upon the insertion of payment, 
9is used to purchase a bona fide product from a sponsor and 
10offers or awards a prize as a means to promote that sponsor and 
11is otherwise consistent with this Act, paragraphs (13) and (15) 
12of subsection (b) of Section 28-1 of the Criminal Code of 2012, 
13and the Video Gaming Act, and is not capable
of connecting 
14directly or indirectly to the Internet, either by
hardwire or 
15wireless connection, or to a set of interconnected networked 
16devices. 
17 "Instant reveal" means the results of the outcome of a 
18prize offer or reward are immediately displayed. 
19 "Internet access" means a connection of individual 
20computer terminals, computers, mobile devices, and computer 
21networks to the Internet, enabling users to access Internet 
22services, such as email and websites. 
23 "Person" means a corporation, partnership, limited 
24liability company, sole
proprietorship,
or natural person.

25 "Prize" means a gift, award, or other item or service of 
26value that is
offered or awarded to
a participant in a real or 
 
 
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1purported contest, competition, sweepstakes, scheme,
plan, or 
2other
selection process that involves an element of chance.

3 "Retail value" of a prize means:


4  (1) a price at which the sponsor can substantiate
that 
5 a substantial quantity of the item or service offered as a 
6 prize
has been sold to the public;
or


7  (2) if the sponsor is unable to satisfy the
requirement 
8 in subdivision (1), no more than 3 times the amount the 
9 sponsor
paid for the prize in a bona fide purchase from an 
10 unaffiliated
seller.

11 "Sponsor" means a person on whose behalf a promotion is 
12conducted to promote
or advertise goods, services, or property 
13of that person.
"Sponsor" includes a person who conducts a 
14promotion on behalf of another
sponsor.

15 "Sweepstakes" means the promotion of products through a 
16written or electronic manner. 
17 "Telephone card" or "calling card" or "phone card" means 
18any stored-value system capable of being discarded when 
19depleted or recharged for reuse and utilized to place a 
20telephone call. 
21(Source: P.A. 92-436, eff. 1-1-02.)


22 (815 ILCS 525/33 new)
23 Sec. 33. Electronic product promotion sweepstakes kiosks.
24 (a) It is unlawful for a person to operate on any premises 
25more than 10 electronic product promotion sweepstakes kiosks at 
 
 
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1any one time, unless that premises operates as: a racetrack 
2licensed under the Illinois Horse Racing Act of 1975; a 
3licensed fraternal establishment or licensed veterans 
4establishment under the Video Gaming Act; a location under the 
5control of a recognized 501(c)(3) charitable organization as 
6defined in the Internal Revenue Code; or an airport. 
7 (b) No electronic product promotion sweepstakes kiosk 
8shall be capable
of connecting directly or indirectly to the 
9Internet, either by
hardwire or wireless connection, or to a 
10set of interconnected networked devices, and nothing in
this 
11amendatory Act of the 100th General Assembly may be construed 
12to permit
any person to knowingly establish, maintain, or 
13operate an Internet
site that permits a person to play a game 
14of chance or skill
for money or other thing of value by means 
15of the Internet or
to make a wager upon the result of any game, 
16contest, political
nomination, appointment, or election by 
17means of the Internet
in violation of item (12) of subsection 
18(a) of Section 28-1 of
the Criminal Code of 2012.
19 (c) It is unlawful for any person to operate an electronic 
20product promotion sweepstakes kiosk where the sale of a product 
21is a subterfuge for gambling. A subterfuge shall be the sale of 
22Internet access, a telephone card, a calling card, or a phone 
23card.
24 (d) Electronic product promotion sweepstakes kiosks shall 
25provide the option of an instant reveal of the outcome of any 
26prize offer or award. 

 
 
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1 (815 ILCS 525/45 new)
2 Sec. 45. Electronic product promotion sweepstakes kiosk; 
3annual fee. The Department of Revenue is hereby authorized to 
4impose an annual fee of not more than $100 for the use of 
5operating an electronic product promotion sweepstakes kiosk. 
6The Department of Revenue shall share the revenue derived from 
7the annual fees with municipalities.

8 (30 ILCS 105/5.490 rep.)
9 Section 90-70. The State Finance Act is amended by 
10repealing Section 5.490.

11 (230 ILCS 5/2.1 rep.)
12 (230 ILCS 5/54 rep.)
13 Section 90-75. The Illinois Horse Racing Act of 1975 is 
14amended by repealing Sections 2.1 and 54.

15
Article 99.  Nonacceleration; Severability; Effective Date


16 Section 99-95. No acceleration or delay. Where this Act 
17makes changes in a statute that is represented in this Act by 
18text that is not yet or no longer in effect (for example, a 
19Section represented by multiple versions), the use of that text 
20does not accelerate or delay the taking effect of (i) the 
21changes made by this Act or (ii) provisions derived from any 
 
 
10000SB0007ham003- 548 -LRB100 06307 SMS 40923 a


1other Public Act.

2 Section 99-97. Severability. The provisions of this Act are 
3severable under Section 1.31 of the Statute on Statutes.

4 Section 99-99. Effective date. This Act takes effect upon 
5becoming law.".