Rep. Robert Rita
Filed: 6/1/2019
 
 


 




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1
AMENDMENT TO SENATE BILL 690




2 AMENDMENT NO. ______. Amend Senate Bill 690, AS AMENDED, by 
3replacing everything after the enacting clause with the 
4following:


5
"Article 5.  Leveling the Playing Field for Illinois Retail Act


6 Section 5-1. Short title. This Article may be cited as the 
7Leveling the Playing Field for Illinois Retail Act. References 
8in this Article to "this Act" means this Article.

9 Section 5-5. Findings. The General Assembly finds that 
10certified service providers and certified automated systems 
11simplify use and occupation tax compliance for out-of-state 
12sellers, which fosters higher levels of accurate tax collection 
13and remittance and generates administrative savings and new 
14marginal tax revenue for both State and local taxing 
15jurisdictions. By making the services of certified service 
 
 
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1providers and certified automated systems available to remote 
2retailers without charge as provided in this Act, the State 
3will substantially eliminate the burden on those remote 
4retailers to collect and remit both State and local taxing 
5jurisdiction use and occupation taxes. While providing a means 
6for remote retailers to collect and remit tax on an even basis 
7with Illinois retailers, this Act also protects existing local 
8tax revenue streams by retaining origin sourcing for all 
9transactions by retailers maintaining a physical presence in 
10Illinois. 

11 Section 5-10. Definitions. As used in this Act:
12 "Certified service provider" means an agent certified by 
13the Department to perform the remote retailer's use and 
14occupation tax functions, as outlined in the contract between 
15the State and the certified service provider.
16 "Certified automated system" means an automated software 
17system that is certified by the State as meeting all 
18performance and tax calculation standards required by 
19Department rules.
20 "Department" means the Department of Revenue.
21 "Remote retailer" means a retailer as defined in Section 1 
22of the Retailers' Occupation Tax Act that has an obligation to 
23collect State and local retailers' occupation tax under 
24subsection (b) of Section 2 of the Retailers' Occupation Tax 
25Act.
 
 
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1 "Retailers' occupation tax" means the tax levied under the 
2Retailers' Occupation Tax Act and all applicable local 
3retailers' occupation taxes collected by the Department in 
4conjunction with the State retailers' occupation tax.

5 Section 5-15. Certification of certified service 
6providers. The Department shall, no later than December 31, 
72019, establish standards for the certification of certified 
8service providers and certified automated systems and may act 
9jointly with other states to accomplish these ends.
10 The Department may take other actions reasonably required 
11to implement the provisions of this Act, including the adoption 
12of rules and emergency rules and the procurement of goods and 
13services, which also may be coordinated jointly with other 
14states.

15 Section 5-20. Provision of databases. The Department 
16shall, no later than July 1, 2020: 
17  (1) provide and maintain an electronic, downloadable 
18 database of defined product categories that identifies the 
19 taxability of each category;
20  (2) provide and maintain an electronic, downloadable 
21 database of all retailers' occupation tax rates for the 
22 jurisdictions in this State that levy a retailers' 
23 occupation tax; and
24  (3) provide and maintain an electronic, downloadable 
 
 
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1 database that assigns delivery addresses in this State to 
2 the applicable taxing jurisdictions.

3 Section 5-25. Certification. The Department shall, no 
4later than July 1, 2020:
5  (1) provide uniform minimum standards that companies 
6 wishing to be designated as a certified service provider in 
7 this State must meet; those minimum standards must include 
8 an expedited certification process for companies that have 
9 been certified in at least 5 other states;
10  (2) provide uniform minimum standards that certified 
11 automated systems must meet; those minimum standards may 
12 include an expedited certification process for automated 
13 systems that have been certified in at least 5 other 
14 states;
15  (3) establish a certification process to review the 
16 systems of companies wishing to be designated as a 
17 certified service provider in this State or of companies 
18 wishing to use a certified automated process; this 
19 certification process shall provide that companies that 
20 meet all required standards and whose systems have been 
21 tested and approved by the Department for properly 
22 determining the taxability of items to be sold, the correct 
23 tax rate to apply to a transaction, and the appropriate 
24 jurisdictions to which the tax shall be remitted, shall be 
25 certified;
 
 
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1  (4) enter into a contractual relationship with each 
2 company that qualifies as a certified service provider or 
3 that will be using a certified automated system; those 
4 contracts shall, at a minimum, provide:
5   (A) the responsibilities of the certified service 
6 provider and the remote retailers that contract with 
7 the certified service provider or the user of a 
8 certified automated system related to liability for 
9 proper collection and remittance of use and occupation 
10 taxes;
11   (B) the responsibilities of the certified service 
12 provider and the remote retailers that contract with 
13 the certified service provider or the user of a 
14 certified service provider related to record keeping 
15 and auditing;
16   (C) for the protection and confidentiality of tax 
17 information; and
18   (D) compensation equal to 1.75% of the tax dollars 
19 collected and remitted to the State by a certified 
20 service provider on a timely basis on behalf of remote 
21 retailers; remote retailers using a certified service 
22 provider may not claim the vendor's discount allowed 
23 under the Retailers' Occupation Tax Act or the Service 
24 Occupation Tax Act.
25 The provisions of this Section shall supersede the 
26provisions of the Illinois Procurement Code.

 
 
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1 Section 5-30. Relief from liability. Beginning January 1, 
22020, remote retailers using certified service providers or 
3certified automated systems and their certified service 
4providers or certified automated systems providers are 
5relieved from liability to the State for having charged and 
6collected the incorrect amount of use or occupation tax 
7resulting from a certified service provider or certified 
8automated system relying, at the time of the sale, on: (1) 
9erroneous data provided by the State in database files on tax 
10rates, boundaries, or taxing jurisdictions; or (2) erroneous 
11data provided by the State concerning the taxability of 
12products and services.
13 The Department shall, to the best of its ability, assign 
14addresses to the proper local taxing jurisdiction using a 
159-digit zip code identifier. On an annual basis, the Department 
16shall make available to local taxing jurisdictions the taxing 
17jurisdiction boundaries determined by the Department for their 
18verification. If a jurisdiction fails to verify their taxing 
19jurisdiction boundaries to the Department in any given year, 
20the Department shall assign retailers' occupation tax revenue 
21from remote retail sales based on its best information. In that 
22case, tax revenues from remote retail sales remitted to a 
23taxing jurisdiction based on erroneous local tax boundary 
24information will be assigned to the correct taxing jurisdiction 
25on a prospective basis upon notice of the boundary error from a 
 
 
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1local taxing jurisdiction. No certified service provider or 
2remote retailer using a certified automated system shall be 
3subject to a class action brought on behalf of customers and 
4arising from, or in any way related to, an overpayment of 
5retailers' occupation tax collected by the certified service 
6provider if, at the time of the sale, they relied on 
7information provided by the Department, regardless of whether 
8that claim is characterized as a tax refund claim. Nothing in 
9this Section affects a customer's right to seek a refund from 
10the remote retailer as provided in this Act.

11 Section 5-97. Severability. The provisions of this Act are 
12severable under Section 1.31 of the Statute on Statutes.

13
Article 10.  Parking Excise Tax Act


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

17 Section 10-5. Definitions. 
18 "Booking intermediary" means any person or entity that 
19facilitates the processing and fulfillment of reservation 
20transactions between an operator and a person or entity 
21desiring parking in a parking lot or garage of that operator.
22 "Charge or fee paid for parking" means the gross amount of 
 
 
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1consideration for the use or privilege of parking a motor 
2vehicle in or upon any parking lot or garage in the State, 
3collected by an operator and valued in money, whether received 
4in money or otherwise, including cash, credits, property, and 
5services, determined without any deduction for costs or 
6expenses, but not including charges that are added to the 
7charge or fee on account of the tax imposed by this Act or on 
8account of any other tax imposed on the charge or fee. "Charge 
9or fee paid for parking" excludes separately stated charges not 
10for the use or privilege or parking and excludes amounts 
11retained by or paid to a booking intermediary for services 
12provided by the booking intermediary. If any separately stated 
13charge is not optional, it shall be presumed that it is part of 
14the charge for the use or privilege or parking.
15 "Department" means the Department of Revenue.
16 "Operator" means any person who engages in the business of 
17operating a parking area or garage, or who, directly or through 
18an agreement or arrangement with another party, collects the 
19consideration for parking or storage of motor vehicles, 
20recreational vehicles, or other self-propelled vehicles, at 
21that parking place. This includes, but is not limited to, any 
22facilitator or aggregator that collects from the purchaser the 
23charge or fee paid for parking. "Operator" does not include a 
24bank, credit card company, payment processor, booking 
25intermediary, or person whose involvement is limited to 
26performing functions that are similar to those performed by a 
 
 
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1bank, credit card company, payment processor, or booking 
2intermediary.
3 "Parking area or garage" means any real estate, building, 
4structure, premises, enclosure or other place, whether 
5enclosed or not, except a public way, within the State, where 
6motor vehicles, recreational vehicles, or other self-propelled 
7vehicles, are stored, housed or parked for hire, charge, fee or 
8other valuable consideration in a condition ready for use, or 
9where rent or compensation is paid to the owner, manager, 
10operator or lessee of the premises for the housing, storing, 
11sheltering, keeping or maintaining motor vehicles, 
12recreational vehicles, or other self-propelled vehicles. 
13"Parking area or garage" includes any parking area or garage, 
14whether the vehicle is parked by the owner of the vehicle or by 
15the operator or an attendant.
16 "Person" means any natural individual, firm, trust, 
17estate, partnership, association, joint stock company, joint 
18venture, corporation, limited liability company, or a 
19receiver, trustee, guardian, or other representative appointed 
20by order of any court.
21 "Purchase price" means the consideration paid for the 
22purchase of a parking space in a parking area or garage, valued 
23in money, whether received in money or otherwise, including 
24cash, gift cards, credits, and property, and shall be 
25determined without any deduction on account of the cost of 
26materials used, labor or service costs, or any other expense 
 
 
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1whatsoever. 
2 "Purchase price" includes any and all charges that the 
3recipient pays related to or incidental to obtaining the use or 
4privilege of using a parking space in a parking area or garage, 
5including but not limited to any and all related markups, 
6service fees, convenience fees, facilitation fees, 
7cancellation fees, overtime fees, or other such charges, 
8regardless of terminology. However, "purchase price" shall not 
9include consideration paid for:
10  (1) optional, separately stated charges not for the use 
11 or privilege of using a parking space in the parking area 
12 or garage;
13  (2) any charge for a dishonored check;
14  (3) any finance or credit charge, penalty or charge for 
15 delayed payment, or discount for prompt payment;
16  (4) any purchase by a purchaser if the operator is 
17 prohibited by federal or State Constitution, treaty, 
18 convention, statute or court decision from collecting the 
19 tax from such purchaser;
20  (5) the isolated or occasional sale of parking spaces 
21 subject to tax under this Act by a person who does not hold 
22 himself out as being engaged (or who does not habitually 
23 engage) in selling of parking spaces; and
24  (6) any amounts added to a purchaser's bills because of 
25 charges made pursuant to the tax imposed by this Act.
If 
26 credit is extended, then the amount thereof shall be 
 
 
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1 included only as and when payments are made.
2 "Purchaser" means any person who acquires a parking space 
3in a parking area or garage for use for valuable consideration.

4 "Use" means the exercise by any person of any right or 
5power over, or the enjoyment of, a parking space in a parking 
6area or garage subject to tax under this Act.


7 Section 10-10. Imposition of tax; calculation of tax. 
8 (a) Beginning on January 1, 2020, a tax is imposed on the 
9privilege of using in this State a parking space in a parking 
10area or garage for the use of parking one or more motor 
11vehicles, recreational vehicles, or other self-propelled 
12vehicles, at the rate of:
13  (1) 6% of the purchase price for a parking space paid 
14 for on an hourly, daily, or weekly basis; and
15  (2) 9% of the purchase price for a parking space paid 
16 for on a monthly or annual basis.
17 (b) The tax shall be collected from the purchaser by the 
18operator.
19 (c) An operator that has paid or remitted the tax imposed 
20by this Act to another operator in connection with the same 
21parking transaction, or the use of the same parking space, that 
22is subject to tax under this Act, shall be entitled to a credit 
23for such tax paid or remitted against the amount of tax owed 
24under this Act, provided that the other operator is registered 
25under this Act. The operator claiming the credit shall have the 
 
 
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1burden of proving it is entitled to claim a credit.
2 (d) If any operator erroneously collects tax or collects 
3more from the purchaser than the purchaser's liability for the 
4transaction, the purchaser shall have a legal right to claim a 
5refund of such amount from the operator. However, if such 
6amount is not refunded to the purchaser for any reason, the 
7operator is liable to pay such amount to the Department.
8 (e) The tax imposed by this Section is not imposed with 
9respect to any transaction in interstate commerce, to the 
10extent that the transaction may not, under the Constitution and 
11statutes of the United States, be made the subject of taxation 
12by this State.

13 Section 10-15. Filing of returns and deposit of proceeds. 
14On or before the last day of each calendar month, every 
15operator engaged in the business of providing to purchasers 
16parking areas and garages in this State during the preceding 
17calendar month shall file a return with the Department, 
18stating:
19  (1) the name of the operator;
20  (2) the address of its principal place of business and 
21 the address of the principal place of business from which 
22 it provides parking areas and garages in this State;
23  (3) the total amount of receipts received by the 
24 operator during the preceding calendar month or quarter, as 
25 the case may be, from sales of parking spaces to purchasers 
 
 
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1 in parking areas or garages during the preceding calendar 
2 month or quarter;
3  (4) deductions allowed by law;
4  (5) the total amount of receipts received by the 
5 operator during the preceding calendar month or quarter 
6 upon which the tax was computed;
7  (6) the amount of tax due; and
8  (7) such other reasonable information as the 
9 Department may require.
10 If an operator ceases to engage in the kind of business 
11that makes it responsible for filing returns under this Act, 
12then that operator shall file a final return under this Act 
13with the Department on or before the last day of the month 
14after discontinuing such business.
15 All returns required to be filed and payments required to 
16be made under this Act shall be by electronic means. Taxpayers 
17who demonstrate hardship in filing or paying electronically may 
18petition the Department to waive the electronic filing or 
19payment requirement, or both. The Department may require a 
20separate return for the tax under this Act or combine the 
21return for the tax under this Act with the return for other 
22taxes.
23 If the same person has more than one business registered 
24with the Department under separate registrations under this 
25Act, that person shall not file each return that is due as a 
26single return covering all such registered businesses but shall 
 
 
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1file separate returns for each such registered business.
2 If the operator is a corporation, the return filed on 
3behalf of that corporation shall be signed by the president, 
4vice-president, secretary, or treasurer, or by a properly 
5accredited agent of such corporation.
6 The operator filing the return under this Act shall, at the 
7time of filing the return, pay to the Department the amount of 
8tax imposed by this Act less a discount of 1.75%, not to exceed 
9$1,000 per month, which is allowed to reimburse the operator 
10for the expenses incurred in keeping records, preparing and 
11filing returns, remitting the tax, and supplying data to the 
12Department on request.
13 If any payment provided for in this Section exceeds the 
14taxpayer's liabilities under this Act, as shown on an original 
15return, the Department may authorize the taxpayer to credit 
16such excess payment against liability subsequently to be 
17remitted to the Department under this Act, in accordance with 
18reasonable rules adopted by the Department. If the Department 
19subsequently determines that all or any part of the credit 
20taken was not actually due to the taxpayer, the taxpayer's 
21discount shall be reduced by an amount equal to the difference 
22between the discount as applied to the credit taken and that 
23actually due, and that taxpayer shall be liable for penalties 
24and interest on such difference.

25 Section 10-20. Exemptions.  The tax imposed by this Act 
 
 
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1shall not apply to:
2  (1) parking in a parking area or garage operated by the 
3 federal government or its instrumentalities that has been 
4 issued an active tax exemption number by the Department 
5 under Section 1g of the Retailers' Occupation Tax Act; for 
6 this exemption to apply, the parking area or garage must be 
7 operated by the federal government or its 
8 instrumentalities; the exemption under this paragraph (1) 
9 does not apply if the parking area or garage is operated by 
10 a third party, whether under a lease or other contractual 
11 arrangement, or any other manner whatsoever; 
12  (2) residential off-street parking for home or 
13 apartment tenants or condominium occupants, if the 
14 arrangement for such parking is provided in the home or 
15 apartment lease or in a separate writing between the 
16 landlord and tenant, or in a condominium agreement between 
17 the condominium association and the owner, occupant, or 
18 guest of a unit, whether the parking charge is payable to 
19 the landlord, condominium association, or to the operator 
20 of the parking spaces;
21  (3) parking by hospital employees in a parking space 
22 that is owned and operated by the hospital for which they 
23 work; and
24  (4) parking in a parking area or garage where 3 or 
25 fewer motor vehicles are stored, housed, or parked for 
26 hire, charge, fee or other valuable consideration, if the 
 
 
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1 operator of the parking area or garage does not act as the 
2 operator of more than a total of 3 parking spaces located 
3 in the State; if any operator of parking areas or garages, 
4 including any facilitator or aggregator, acts as an 
5 operator of more than 3 parking spaces in total that are 
6 located in the State, then this exemption shall not apply 
7 to any of those spaces.

8 Section 10-25. Collection of tax. 
9 (a) Beginning with bills issued or charges collected for a 
10purchase of a parking space in a parking area or garage on and 
11after January 1, 2020, the tax imposed by this Act shall be 
12collected from the purchaser by the operator at the rate stated 
13in Section 10-10 and shall be remitted to the Department as 
14provided in this Act. All charges for parking spaces in a 
15parking area or garage are presumed subject to tax collection. 
16Operators shall collect the tax from purchasers by adding the 
17tax to the amount of the purchase price received from the 
18purchaser. The tax imposed by the Act shall when collected be 
19stated as a distinct item separate and apart from the purchase 
20price of the service subject to tax under this Act. However, 
21where it is not possible to state the tax separately the 
22Department may by rule exempt such purchases from this 
23requirement so long as purchasers are notified by language on 
24the invoice or notified by a sign that the tax is included in 
25the purchase price.
 
 
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1 (b) Any person purchasing a parking space in a parking area 
2or garage subject to tax under this Act as to which there has 
3been no charge made to him of the tax imposed by Section 10-10, 
4shall make payment of the tax imposed by Section 10-10 of this 
5Act in the form and manner provided by the Department, such 
6payment to be made to the Department in the manner and form 
7required by the Department not later than the 20th day of the 
8month following the month of purchase of the parking space.

9 Section 10-30. Registration of operators. 
10 (a) A person who engages in business as an operator of a 
11parking area or garage in this State shall register with the 
12Department. Application for a certificate of registration 
13shall be made to the Department, by electronic means, in the 
14form and manner prescribed by the Department and shall contain 
15any reasonable information the Department may require. Upon 
16receipt of the application for a certificate of registration in 
17proper form and manner, the Department shall issue to the 
18applicant a certificate of registration. Operators who 
19demonstrate that they do not have access to the Internet or 
20demonstrate hardship in applying electronically may petition 
21the Department to waive the electronic application 
22requirements.
23 (b) The Department may refuse to issue or reissue a 
24certificate of registration to any applicant for the reasons 
25set forth in Section 2505-380 of the Department of Revenue Law 
 
 
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1of the Civil Administrative Code of Illinois.
2 (c) Any person aggrieved by any decision of the Department 
3under this Section may, within 20 days after notice of such 
4decision, protest and request a hearing, whereupon the 
5Department shall give notice to such person of the time and 
6place fixed for such hearing and shall hold a hearing in 
7conformity with the provisions of this Act and then issue its 
8final administrative decision in the matter to such person. In 
9the absence of such a protest within 20 days, the Department's 
10decision shall become final without any further determination 
11being made or notice given.

12 Section 10-35. Revocation of certificate of registration. 
13 (a) The Department may, after notice and a hearing as 
14provided in this Act, revoke the certificate of registration of 
15any operator who violates any of the provisions of this Act or 
16any rule adopted pursuant to this Act. Before revocation of a 
17certificate of registration, the Department shall, within 90 
18days after non-compliance and at least 7 days prior to the date 
19of the hearing, give the operator so accused notice in writing 
20of the charge against him or her, and on the date designated 
21shall conduct a hearing upon this matter. The lapse of such 
2290-day period shall not preclude the Department from conducting 
23revocation proceedings at a later date if necessary. Any 
24hearing held under this Section shall be conducted by the 
25Director or by any officer or employee of the Department 
 
 
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1designated in writing by the Director.
2 (b) The Department may revoke a certificate of registration 
3for the reasons set forth in Section 2505-380 of the Department 
4of Revenue Law of the Civil Administrative Code of Illinois.
5 (c) Upon the hearing of any such proceeding, the Director 
6or any officer or employee of the Department designated in 
7writing by the Director may administer oaths, and the 
8Department may procure by its subpoena the attendance of 
9witnesses and, by its subpoena duces tecum, the production of 
10relevant books and papers. Any circuit court, upon application 
11either of the operator or of the Department, may, by order duly 
12entered, require the attendance of witnesses and the production 
13of relevant books and papers before the Department in any 
14hearing relating to the revocation of certificates of 
15registration. Upon refusal or neglect to obey the order of the 
16court, the court may compel obedience thereof by proceedings 
17for contempt.
18 (d) The Department may, by application to any circuit 
19court, obtain an injunction requiring any person who engages in 
20business as an operator under this Act to obtain a certificate 
21of registration. Upon refusal or neglect to obey the order of 
22the court, the court may compel obedience by proceedings for 
23contempt.

24 Section 10-40. Valet services. 
25 (a) Persons engaged in the business of providing valet 
 
 
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1services are subject to the tax imposed by this Act on the 
2purchase price received in connection with their valet parking 
3operations.
4 (b) Persons engaged in the business of providing valet 
5services are entitled to take the credit in subsection (c) of 
6Section 10-10.
7 (c) Tips received by persons parking cars for persons 
8engaged in the business of providing valet services are not 
9subject to the tax imposed by this Act if the tips are retained 
10by the person receiving the tip. If the tips are turned over to 
11the valet business, the tips shall be included in the purchase 
12price.

13 Section 10-45. Tax collected as debt owed to State. The tax 
14herein required to be collected by any operator or valet 
15business and any such tax collected by that person, shall 
16constitute a debt owed by that person to this State.

17 Section 10-50. Incorporation by reference. All of the 
18provisions of Sections 1, 2a, 2b, 3 (except provisions relating 
19to transaction returns and except for provisions that are 
20inconsistent with this Act), in respect to all provisions 
21therein other than the State rate of tax) 4, 5, 5a, 5b, 5c, 5d, 
225e, 5f, 5g, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 
2313 of the Retailers' Occupation Tax Act that are not 
24inconsistent with this Act, and all provisions of the Uniform 
 
 
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1Penalty and Interest Act shall apply, as far as practicable, to 
2the subject matter of this Act to the same extent as if such 
3provisions were included in this Act.

4 Section 10-55. Deposit of proceeds from parking excise tax. 
5The moneys received by the Department from the tax imposed by 
6this Act shall be deposited into the Capital Projects Fund.

7
Article 15.  Amendatory Provisions


8 Section 15-5. The Illinois Administrative Procedure Act is 
9amended by changing Section 5-45 as follows:

10 (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
11 Sec. 5-45. Emergency rulemaking. 
12 (a) "Emergency" means the existence of any situation that 
13any agency
finds reasonably constitutes a threat to the public 
14interest, safety, or
welfare.
15 (b) If any agency finds that an
emergency exists that 
16requires adoption of a rule upon fewer days than
is required by 
17Section 5-40 and states in writing its reasons for that

18finding, the agency may adopt an emergency rule without prior 
19notice or
hearing upon filing a notice of emergency rulemaking 
20with the Secretary of
State under Section 5-70. The notice 
21shall include the text of the
emergency rule and shall be 
22published in the Illinois Register. Consent
orders or other 
 
 
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1court orders adopting settlements negotiated by an agency
may 
2be adopted under this Section. Subject to applicable 
3constitutional or
statutory provisions, an emergency rule 
4becomes effective immediately upon
filing under Section 5-65 or 
5at a stated date less than 10 days
thereafter. The agency's 
6finding and a statement of the specific reasons
for the finding 
7shall be filed with the rule. The agency shall take
reasonable 
8and appropriate measures to make emergency rules known to the

9persons who may be affected by them.
10 (c) An emergency rule may be effective for a period of not 
11longer than
150 days, but the agency's authority to adopt an 
12identical rule under Section
5-40 is not precluded. No 
13emergency rule may be adopted more
than once in any 24-month 
14period, except that this limitation on the number
of emergency 
15rules that may be adopted in a 24-month period does not apply

16to (i) emergency rules that make additions to and deletions 
17from the Drug
Manual under Section 5-5.16 of the Illinois 
18Public Aid Code or the
generic drug formulary under Section 
193.14 of the Illinois Food, Drug
and Cosmetic Act, (ii) 
20emergency rules adopted by the Pollution Control
Board before 
21July 1, 1997 to implement portions of the Livestock Management

22Facilities Act, (iii) emergency rules adopted by the Illinois 
23Department of Public Health under subsections (a) through (i) 
24of Section 2 of the Department of Public Health Act when 
25necessary to protect the public's health, (iv) emergency rules 
26adopted pursuant to subsection (n) of this Section, (v) 
 
 
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1emergency rules adopted pursuant to subsection (o) of this 
2Section, or (vi) emergency rules adopted pursuant to subsection 
3(c-5) of this Section. Two or more emergency rules having 
4substantially the same
purpose and effect shall be deemed to be 
5a single rule for purposes of this
Section.
6 (c-5) To facilitate the maintenance of the program of group 
7health benefits provided to annuitants, survivors, and retired 
8employees under the State Employees Group Insurance Act of 
91971, rules to alter the contributions to be paid by the State, 
10annuitants, survivors, retired employees, or any combination 
11of those entities, for that program of group health benefits, 
12shall be adopted as emergency rules. The adoption of those 
13rules shall be considered an emergency and necessary for the 
14public interest, safety, and welfare. 
15 (d) In order to provide for the expeditious and timely 
16implementation
of the State's fiscal year 1999 budget, 
17emergency rules to implement any
provision of Public Act 90-587 
18or 90-588
or any other budget initiative for fiscal year 1999 
19may be adopted in
accordance with this Section by the agency 
20charged with administering that
provision or initiative, 
21except that the 24-month limitation on the adoption
of 
22emergency rules and the provisions of Sections 5-115 and 5-125 
23do not apply
to rules adopted under this subsection (d). The 
24adoption of emergency rules
authorized by this subsection (d) 
25shall be deemed to be necessary for the
public interest, 
26safety, and welfare.
 
 
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1 (e) In order to provide for the expeditious and timely 
2implementation
of the State's fiscal year 2000 budget, 
3emergency rules to implement any
provision of Public Act 91-24

4or any other budget initiative for fiscal year 2000 may be 
5adopted in
accordance with this Section by the agency charged 
6with administering that
provision or initiative, except that 
7the 24-month limitation on the adoption
of emergency rules and 
8the provisions of Sections 5-115 and 5-125 do not apply
to 
9rules adopted under this subsection (e). The adoption of 
10emergency rules
authorized by this subsection (e) shall be 
11deemed to be necessary for the
public interest, safety, and 
12welfare.
13 (f) In order to provide for the expeditious and timely 
14implementation
of the State's fiscal year 2001 budget, 
15emergency rules to implement any
provision of Public Act 91-712

16or any other budget initiative for fiscal year 2001 may be 
17adopted in
accordance with this Section by the agency charged 
18with administering that
provision or initiative, except that 
19the 24-month limitation on the adoption
of emergency rules and 
20the provisions of Sections 5-115 and 5-125 do not apply
to 
21rules adopted under this subsection (f). The adoption of 
22emergency rules
authorized by this subsection (f) shall be 
23deemed to be necessary for the
public interest, safety, and 
24welfare.
25 (g) In order to provide for the expeditious and timely 
26implementation
of the State's fiscal year 2002 budget, 
 
 
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1emergency rules to implement any
provision of Public Act 92-10

2or any other budget initiative for fiscal year 2002 may be 
3adopted in
accordance with this Section by the agency charged 
4with administering that
provision or initiative, except that 
5the 24-month limitation on the adoption
of emergency rules and 
6the provisions of Sections 5-115 and 5-125 do not apply
to 
7rules adopted under this subsection (g). The adoption of 
8emergency rules
authorized by this subsection (g) shall be 
9deemed to be necessary for the
public interest, safety, and 
10welfare.
11 (h) In order to provide for the expeditious and timely 
12implementation
of the State's fiscal year 2003 budget, 
13emergency rules to implement any
provision of Public Act 92-597

14or any other budget initiative for fiscal year 2003 may be 
15adopted in
accordance with this Section by the agency charged 
16with administering that
provision or initiative, except that 
17the 24-month limitation on the adoption
of emergency rules and 
18the provisions of Sections 5-115 and 5-125 do not apply
to 
19rules adopted under this subsection (h). The adoption of 
20emergency rules
authorized by this subsection (h) shall be 
21deemed to be necessary for the
public interest, safety, and 
22welfare.
23 (i) In order to provide for the expeditious and timely 
24implementation
of the State's fiscal year 2004 budget, 
25emergency rules to implement any
provision of Public Act 93-20

26or any other budget initiative for fiscal year 2004 may be 
 
 
10100SB0690ham003- 26 -LRB101 04451 SMS 61572 a


1adopted in
accordance with this Section by the agency charged 
2with administering that
provision or initiative, except that 
3the 24-month limitation on the adoption
of emergency rules and 
4the provisions of Sections 5-115 and 5-125 do not apply
to 
5rules adopted under this subsection (i). The adoption of 
6emergency rules
authorized by this subsection (i) shall be 
7deemed to be necessary for the
public interest, safety, and 
8welfare.
9 (j) In order to provide for the expeditious and timely 
10implementation of the provisions of the State's fiscal year 
112005 budget as provided under the Fiscal Year 2005 Budget 
12Implementation (Human Services) Act, emergency rules to 
13implement any provision of the Fiscal Year 2005 Budget 
14Implementation (Human Services) Act may be adopted in 
15accordance with this Section by the agency charged with 
16administering that provision, except that the 24-month 
17limitation on the adoption of emergency rules and the 
18provisions of Sections 5-115 and 5-125 do not apply to rules 
19adopted under this subsection (j). The Department of Public Aid 
20may also adopt rules under this subsection (j) necessary to 
21administer the Illinois Public Aid Code and the Children's 
22Health Insurance Program Act. The adoption of emergency rules 
23authorized by this subsection (j) shall be deemed to be 
24necessary for the public interest, safety, and welfare.

25 (k) In order to provide for the expeditious and timely 
26implementation of the provisions of the State's fiscal year 
 
 
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12006 budget, emergency rules to implement any provision of 
2Public Act 94-48 or any other budget initiative for fiscal year 
32006 may be adopted in accordance with this Section by the 
4agency charged with administering that provision or 
5initiative, except that the 24-month limitation on the adoption 
6of emergency rules and the provisions of Sections 5-115 and 
75-125 do not apply to rules adopted under this subsection (k). 
8The Department of Healthcare and Family Services may also adopt 
9rules under this subsection (k) necessary to administer the 
10Illinois Public Aid Code, the Senior Citizens and Persons with 
11Disabilities Property Tax Relief Act, the Senior Citizens and 
12Disabled Persons Prescription Drug Discount Program Act (now 
13the Illinois Prescription Drug Discount Program Act), and the 
14Children's Health Insurance Program Act. The adoption of 
15emergency rules authorized by this subsection (k) shall be 
16deemed to be necessary for the public interest, safety, and 
17welfare.

18 (l) In order to provide for the expeditious and timely 
19implementation of the provisions of the
State's fiscal year 
202007 budget, the Department of Healthcare and Family Services 
21may adopt emergency rules during fiscal year 2007, including 
22rules effective July 1, 2007, in
accordance with this 
23subsection to the extent necessary to administer the 
24Department's responsibilities with respect to amendments to 
25the State plans and Illinois waivers approved by the federal 
26Centers for Medicare and Medicaid Services necessitated by the 
 
 
10100SB0690ham003- 28 -LRB101 04451 SMS 61572 a


1requirements of Title XIX and Title XXI of the federal Social 
2Security Act. The adoption of emergency rules
authorized by 
3this subsection (l) shall be deemed to be necessary for the 
4public interest,
safety, and welfare.

5 (m) In order to provide for the expeditious and timely 
6implementation of the provisions of the
State's fiscal year 
72008 budget, the Department of Healthcare and Family Services 
8may adopt emergency rules during fiscal year 2008, including 
9rules effective July 1, 2008, in
accordance with this 
10subsection to the extent necessary to administer the 
11Department's responsibilities with respect to amendments to 
12the State plans and Illinois waivers approved by the federal 
13Centers for Medicare and Medicaid Services necessitated by the 
14requirements of Title XIX and Title XXI of the federal Social 
15Security Act. The adoption of emergency rules
authorized by 
16this subsection (m) shall be deemed to be necessary for the 
17public interest,
safety, and welfare.

18 (n) In order to provide for the expeditious and timely 
19implementation of the provisions of the State's fiscal year 
202010 budget, emergency rules to implement any provision of 
21Public Act 96-45 or any other budget initiative authorized by 
22the 96th General Assembly for fiscal year 2010 may be adopted 
23in accordance with this Section by the agency charged with 
24administering that provision or initiative. The adoption of 
25emergency rules authorized by this subsection (n) shall be 
26deemed to be necessary for the public interest, safety, and 
 
 
10100SB0690ham003- 29 -LRB101 04451 SMS 61572 a


1welfare. The rulemaking authority granted in this subsection 
2(n) shall apply only to rules promulgated during Fiscal Year 
32010. 
4 (o) In order to provide for the expeditious and timely 
5implementation of the provisions of the State's fiscal year 
62011 budget, emergency rules to implement any provision of 
7Public Act 96-958 or any other budget initiative authorized by 
8the 96th General Assembly for fiscal year 2011 may be adopted 
9in accordance with this Section by the agency charged with 
10administering that provision or initiative. The adoption of 
11emergency rules authorized by this subsection (o) is deemed to 
12be necessary for the public interest, safety, and welfare. The 
13rulemaking authority granted in this subsection (o) applies 
14only to rules promulgated on or after July 1, 2010 (the 
15effective date of Public Act 96-958) through June 30, 2011. 
16 (p) In order to provide for the expeditious and timely 
17implementation of the provisions of Public Act 97-689, 
18emergency rules to implement any provision of Public Act 97-689 
19may be adopted in accordance with this subsection (p) by the 
20agency charged with administering that provision or 
21initiative. The 150-day limitation of the effective period of 
22emergency rules does not apply to rules adopted under this 
23subsection (p), and the effective period may continue through 
24June 30, 2013. The 24-month limitation on the adoption of 
25emergency rules does not apply to rules adopted under this 
26subsection (p). The adoption of emergency rules authorized by 
 
 
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1this subsection (p) is deemed to be necessary for the public 
2interest, safety, and welfare.
3 (q) In order to provide for the expeditious and timely 
4implementation of the provisions of Articles 7, 8, 9, 11, and 
512 of Public Act 98-104, emergency rules to implement any 
6provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104 
7may be adopted in accordance with this subsection (q) by the 
8agency charged with administering that provision or 
9initiative. The 24-month limitation on the adoption of 
10emergency rules does not apply to rules adopted under this 
11subsection (q). The adoption of emergency rules authorized by 
12this subsection (q) is deemed to be necessary for the public 
13interest, safety, and welfare. 
14 (r) In order to provide for the expeditious and timely 
15implementation of the provisions of Public Act 98-651, 
16emergency rules to implement Public Act 98-651 may be adopted 
17in accordance with this subsection (r) by the Department of 
18Healthcare and Family Services. The 24-month limitation on the 
19adoption of emergency rules does not apply to rules adopted 
20under this subsection (r). The adoption of emergency rules 
21authorized by this subsection (r) is deemed to be necessary for 
22the public interest, safety, and welfare. 
23 (s) In order to provide for the expeditious and timely 
24implementation of the provisions of Sections 5-5b.1 and 5A-2 of 
25the Illinois Public Aid Code, emergency rules to implement any 
26provision of Section 5-5b.1 or Section 5A-2 of the Illinois 
 
 
10100SB0690ham003- 31 -LRB101 04451 SMS 61572 a


1Public Aid Code may be adopted in accordance with this 
2subsection (s) by the Department of Healthcare and Family 
3Services. The rulemaking authority granted in this subsection 
4(s) shall apply only to those rules adopted prior to July 1, 
52015. Notwithstanding any other provision of this Section, any 
6emergency rule adopted under this subsection (s) shall only 
7apply to payments made for State fiscal year 2015. The adoption 
8of emergency rules authorized by this subsection (s) is deemed 
9to be necessary for the public interest, safety, and welfare. 
10 (t) In order to provide for the expeditious and timely 
11implementation of the provisions of Article II of Public Act 
1299-6, emergency rules to implement the changes made by Article 
13II of Public Act 99-6 to the Emergency Telephone System Act may 
14be adopted in accordance with this subsection (t) by the 
15Department of State Police. The rulemaking authority granted in 
16this subsection (t) shall apply only to those rules adopted 
17prior to July 1, 2016. The 24-month limitation on the adoption 
18of emergency rules does not apply to rules adopted under this 
19subsection (t). The adoption of emergency rules authorized by 
20this subsection (t) is deemed to be necessary for the public 
21interest, safety, and welfare. 
22 (u) In order to provide for the expeditious and timely 
23implementation of the provisions of the Burn Victims Relief 
24Act, emergency rules to implement any provision of the Act may 
25be adopted in accordance with this subsection (u) by the 
26Department of Insurance. The rulemaking authority granted in 
 
 
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1this subsection (u) shall apply only to those rules adopted 
2prior to December 31, 2015. The adoption of emergency rules 
3authorized by this subsection (u) is deemed to be necessary for 
4the public interest, safety, and welfare.
5 (v) In order to provide for the expeditious and timely 
6implementation of the provisions of Public Act 99-516, 
7emergency rules to implement Public Act 99-516 may be adopted 
8in accordance with this subsection (v) by the Department of 
9Healthcare and Family Services. The 24-month limitation on the 
10adoption of emergency rules does not apply to rules adopted 
11under this subsection (v). The adoption of emergency rules 
12authorized by this subsection (v) is deemed to be necessary for 
13the public interest, safety, and welfare.
14 (w) In order to provide for the expeditious and timely 
15implementation of the provisions of Public Act 99-796, 
16emergency rules to implement the changes made by Public Act 
1799-796 may be adopted in accordance with this subsection (w) by 
18the Adjutant General. The adoption of emergency rules 
19authorized by this subsection (w) is deemed to be necessary for 
20the public interest, safety, and welfare. 
21 (x) In order to provide for the expeditious and timely 
22implementation of the provisions of Public Act 99-906, 
23emergency rules to implement subsection (i) of Section 16-115D, 
24subsection (g) of Section 16-128A, and subsection (a) of 
25Section 16-128B of the Public Utilities Act may be adopted in 
26accordance with this subsection (x) by the Illinois Commerce 
 
 
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1Commission. The rulemaking authority granted in this 
2subsection (x) shall apply only to those rules adopted within 
3180 days after June 1, 2017 (the effective date of Public Act 
499-906). The adoption of emergency rules authorized by this 
5subsection (x) is deemed to be necessary for the public 
6interest, safety, and welfare. 
7 (y) In order to provide for the expeditious and timely 
8implementation of the provisions of Public Act 100-23, 
9emergency rules to implement the changes made by Public Act 
10100-23 to Section 4.02 of the Illinois Act on the Aging, 
11Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code, 
12Section 55-30 of the Alcoholism and Other Drug Abuse and 
13Dependency Act, and Sections 74 and 75 of the Mental Health and 
14Developmental Disabilities Administrative Act may be adopted 
15in accordance with this subsection (y) by the respective 
16Department. The adoption of emergency rules authorized by this 
17subsection (y) is deemed to be necessary for the public 
18interest, safety, and welfare. 
19 (z) In order to provide for the expeditious and timely 
20implementation of the provisions of Public Act 100-554, 
21emergency rules to implement the changes made by Public Act 
22100-554 to Section 4.7 of the Lobbyist Registration Act may be 
23adopted in accordance with this subsection (z) by the Secretary 
24of State. The adoption of emergency rules authorized by this 
25subsection (z) is deemed to be necessary for the public 
26interest, safety, and welfare. 
 
 
10100SB0690ham003- 34 -LRB101 04451 SMS 61572 a


1 (aa) In order to provide for the expeditious and timely 
2initial implementation of the changes made to Articles 5, 5A, 
312, and 14 of the Illinois Public Aid Code under the provisions 
4of Public Act 100-581, the Department of Healthcare and Family 
5Services may adopt emergency rules in accordance with this 
6subsection (aa). The 24-month limitation on the adoption of 
7emergency rules does not apply to rules to initially implement 
8the changes made to Articles 5, 5A, 12, and 14 of the Illinois 
9Public Aid Code adopted under this subsection (aa). The 
10adoption of emergency rules authorized by this subsection (aa) 
11is deemed to be necessary for the public interest, safety, and 
12welfare. 
13 (bb) In order to provide for the expeditious and timely 
14implementation of the provisions of Public Act 100-587, 
15emergency rules to implement the changes made by Public Act 
16100-587 to Section 4.02 of the Illinois Act on the Aging, 
17Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code, 
18subsection (b) of Section 55-30 of the Alcoholism and Other 
19Drug Abuse and Dependency Act, Section 5-104 of the Specialized 
20Mental Health Rehabilitation Act of 2013, and Section 75 and 
21subsection (b) of Section 74 of the Mental Health and 
22Developmental Disabilities Administrative Act may be adopted 
23in accordance with this subsection (bb) by the respective 
24Department. The adoption of emergency rules authorized by this 
25subsection (bb) is deemed to be necessary for the public 
26interest, safety, and welfare. 
 
 
10100SB0690ham003- 35 -LRB101 04451 SMS 61572 a


1 (cc) In order to provide for the expeditious and timely 
2implementation of the provisions of Public Act 100-587, 
3emergency rules may be adopted in accordance with this 
4subsection (cc) to implement the changes made by Public Act 
5100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois 
6Pension Code by the Board created under Article 14 of the Code; 
7Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by 
8the Board created under Article 15 of the Code; and Sections 
916-190.5 and 16-190.6 of the Illinois Pension Code by the Board 
10created under Article 16 of the Code. The adoption of emergency 
11rules authorized by this subsection (cc) is deemed to be 
12necessary for the public interest, safety, and welfare. 
13 (dd) In order to provide for the expeditious and timely 
14implementation of the provisions of Public Act 100-864, 
15emergency rules to implement the changes made by Public Act 
16100-864 to Section 3.35 of the Newborn Metabolic Screening Act 
17may be adopted in accordance with this subsection (dd) by the 
18Secretary of State. The adoption of emergency rules authorized 
19by this subsection (dd) is deemed to be necessary for the 
20public interest, safety, and welfare. 
21 (ee) In order to provide for the expeditious and timely 
22implementation of the provisions of Public Act 100-1172 this 
23amendatory Act of the 100th General Assembly, emergency rules 
24implementing the Illinois Underground Natural Gas Storage 
25Safety Act may be adopted in accordance with this subsection by 
26the Department of Natural Resources. The adoption of emergency 
 
 
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1rules authorized by this subsection is deemed to be necessary 
2for the public interest, safety, and welfare.
3 (ff) (ee) In order to provide for the expeditious and 
4timely initial implementation of the changes made to Articles 
55A and 14 of the Illinois Public Aid Code under the provisions 
6of Public Act 100-1181 this amendatory Act of the 100th General 
7Assembly, the Department of Healthcare and Family Services may 
8on a one-time-only basis adopt emergency rules in accordance 
9with this subsection (ff) (ee). The 24-month limitation on the 
10adoption of emergency rules does not apply to rules to 
11initially implement the changes made to Articles 5A and 14 of 
12the Illinois Public Aid Code adopted under this subsection (ff) 
13(ee). The adoption of emergency rules authorized by this 
14subsection (ff) (ee) is deemed to be necessary for the public 
15interest, safety, and welfare. 
16 (gg) (ff) In order to provide for the expeditious and 
17timely implementation of the provisions of Public Act 101-1 
18this amendatory Act of the 101st General Assembly, emergency 
19rules may be adopted by the Department of Labor in accordance 
20with this subsection (gg) (ff) to implement the changes made by 
21Public Act 101-1 this amendatory Act of the 101st General 
22Assembly to the Minimum Wage Law. The adoption of emergency 
23rules authorized by this subsection (gg) (ff) is deemed to be 
24necessary for the public interest, safety, and welfare. 
25 (hh) In order to provide for the expeditious and timely 
26implementation of the provisions of the Leveling the Playing 
 
 
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1Field for Illinois Retail Act, emergency rules may be adopted 
2in accordance with this subsection (hh) to implement the 
3changes made by the Leveling the Playing Field for Illinois 
4Retail Act. The adoption of emergency rules authorized by this 
5subsection (hh) is deemed to be necessary for the public 
6interest, safety, and welfare. 
7(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17; 
8100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff. 
96-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18; 
10100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff. 
113-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)

12 Section 15-10. The Department of Commerce and Economic 
13Opportunity Law of the
Civil Administrative Code of Illinois is 
14amended by adding Section 605-1025 as follows:

15 (20 ILCS 605/605-1025 new)
16 Sec. 605-1025. Data center investment.
17 (a) The Department shall issue certificates of exemption 
18from the Retailers' Occupation Tax Act, the Use Tax Act, the 
19Service Use Tax Act, and the Service Occupation Tax Act, all 
20locally-imposed retailers' occupation taxes administered and 
21collected by the Department, the Chicago non-titled Use Tax, 
22the Electricity Excise Tax Act, and a credit certification 
23against the taxes imposed under subsections (a) and (b) of 
24Section 201 of the Illinois Income Tax Act to qualifying 
 
 
10100SB0690ham003- 38 -LRB101 04451 SMS 61572 a


1Illinois data centers. 
2 (b) For taxable years beginning on or after January 1, 
32019, the Department shall award credits against the taxes 
4imposed under subsections (a) and (b) of Section 201 of the 
5Illinois Income Tax Act as provided in Section 229 of the 
6Illinois Income Tax Act. 
7 (c) For purposes of this Section:
8  "Data center" means a facility: (1) whose primary 
9 services are the storage, management, and processing of 
10 digital data; and (2) that is used to house (i) computer 
11 and network systems, including associated components such 
12 as servers, network equipment and appliances, 
13 telecommunications, and data storage systems, (ii) systems 
14 for monitoring and managing infrastructure performance, 
15 (iii) Internet-related equipment and services, (iv) data 
16 communications connections, (v) environmental controls, 
17 (vi) fire protection systems, and (vii) security systems 
18 and services. 
19  "Qualifying Illinois data center" means a new or 
20 existing data center that: 
21   (1) is located in the State of Illinois; 
22   (2) in the case of an existing data center, made a 
23 capital investment of at least $250,000,000 
24 collectively by the data center operator and the 
25 tenants of all of its data centers over the 60-month 
26 period immediately prior to January 1, 2020 or 
 
 
10100SB0690ham003- 39 -LRB101 04451 SMS 61572 a


1 committed to make a capital investment of at least 
2 $250,000,000 over a 60-month period commencing before 
3 January 1, 2020 and ending after January 1, 2020; or 
4   (3) in the case of a new data center, makes a 
5 capital investment of at least $250,000,000 over a 
6 60-month period; and 
7   (4) in the case of both existing and new data 
8 centers, results in the creation of at least 20 
9 full-time or full-time equivalent new jobs over a 
10 period of 60 months by the data center operator and the 
11 tenants of the data center, collectively, associated 
12 with the operation or maintenance of the data center; 
13 those jobs must have a total compensation equal to or 
14 greater than 120% of the median wage paid to full-time 
15 employees in the county where the data center is 
16 located, as determined by the U.S. Bureau of Labor 
17 Statistics; and 
18   (5) is carbon neutral or attains certification 
19 under one or more of the following green building 
20 standards: 
21    (A) BREEAM for New Construction or BREEAM 
22 In-Use; 
23    (B) ENERGY STAR; 
24    (C) Envision; 
25    (D) ISO 50001-energy management; 
26    (E) LEED for Building Design and Construction 
 
 
10100SB0690ham003- 40 -LRB101 04451 SMS 61572 a


1 or LEED for Operations and Maintenance; 
2    (F) Green Globes for New Construction or Green 
3 Globes for Existing Buildings; 
4    (G) UL 3223; or 
5    (H) an equivalent program approved by the 
6 Department of Commerce and Economic Opportunity. 
7  "Full-time equivalent job" means a job in which the new 
8 employee works for the owner, operator, contractor, or 
9 tenant of a data center or for a corporation under contract 
10 with the owner, operator or tenant of a data center at a 
11 rate of at least 35 hours per week. An owner, operator or 
12 tenant who employs labor or services at a specific site or 
13 facility under contract with another may declare one 
14 full-time, permanent job for every 1,820 man hours worked 
15 per year under that contract. Vacations, paid holidays, and 
16 sick time are included in this computation. Overtime is not 
17 considered a part of regular hours. 
18  "Qualified tangible personal property" means: 
19 electrical systems and equipment; climate control and 
20 chilling equipment and systems; mechanical systems and 
21 equipment; monitoring and secure systems; emergency 
22 generators; hardware; computers; servers; data storage 
23 devices; network connectivity equipment; racks; cabinets; 
24 telecommunications cabling infrastructure; raised floor 
25 systems; peripheral components or systems; software; 
26 mechanical, electrical, or plumbing systems; battery 
 
 
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1 systems; cooling systems and towers; temperature control 
2 systems; other cabling; and other data center 
3 infrastructure equipment and systems necessary to operate 
4 qualified tangible personal property, including fixtures; 
5 and component parts of any of the foregoing, including 
6 installation, maintenance, repair, refurbishment, and 
7 replacement of qualified tangible personal property to 
8 generate, transform, transmit, distribute, or manage 
9 electricity necessary to operate qualified tangible 
10 personal property; and all other tangible personal 
11 property that is essential to the operations of a computer 
12 data center. "Qualified tangible personal property" also 
13 includes building materials physically incorporated in to 
14 the qualifying data center.
15 To document the exemption allowed under this Section, the 
16retailer must obtain from the purchaser a copy of the 
17certificate of eligibility issued by the Department. 
18 (d) New and existing data centers seeking a certificate of 
19exemption for new or existing facilities shall apply to the 
20Department in the manner specified by the Department. The 
21Department shall determine the duration of the certificate of 
22exemption awarded under this Act. The duration of the 
23certificate of exemption may not exceed 20 calendar years. The 
24Department and any data center seeking the exemption, including 
25a data center operator on behalf of itself and its tenants, 
26must enter into a memorandum of understanding that at a minimum 
 
 
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1provides: 
2  (1) the details for determining the amount of capital 
3 investment to be made; 
4  (2) the number of new jobs created; 
5  (3) the timeline for achieving the capital investment 
6 and new job goals; 
7  (4) the repayment obligation should those goals not be 
8 achieved and any conditions under which repayment by the 
9 qualifying data center or data center tenant claiming the 
10 exemption will be required; 
11  (5) the duration of the exemption; and 
12  (6) other provisions as deemed necessary by the 
13 Department. 
14 (e) Beginning July 1, 2021, and each year thereafter, the 
15Department shall annually report to the Governor and the 
16General Assembly on the outcomes and effectiveness of this 
17amendatory Act of the 101st General Assembly that shall include 
18the following: 
19  (1) the name of each recipient business; 
20  (2) the location of the project; 
21  (3) the estimated value of the credit; 
22  (4) the number of new jobs and, if applicable, retained 
23 jobs pledged as a result of the project; and 
24  (5) whether or not the project is located in an 
25 underserved area.
26 (f) New and existing data centers seeking a certificate of 
 
 
10100SB0690ham003- 43 -LRB101 04451 SMS 61572 a


1exemption related to the rehabilitation or construction of data 
2centers in the State shall require the contractor and all 
3subcontractors to comply with the requirements of Section 30-22 
4of the Illinois Procurement Code as they apply to responsible 
5bidders and to present satisfactory evidence of that compliance 
6to the Department. 
7 (g) New and existing data centers seeking a certificate of 
8exemption for the rehabilitation or construction of data 
9centers in the State shall require the contractor to enter into 
10a project labor agreement approved by the Department.
11 (h) Any qualifying data center issued a certificate of 
12exemption under this Section must annually report to the 
13Department the total data center tax benefits that are received 
14by the business. Reports are due no later than May 31 of each 
15year and shall cover the previous calendar year. The first 
16report is for the 2019 calendar year and is due no later than 
17May 31, 2020. 
18 To the extent that a business issued a certificate of 
19exemption under this Section has obtained an Enterprise Zone 
20Building Materials Exemption Certificate or a High Impact 
21Business Building Materials Exemption Certificate, no 
22additional reporting for those building materials exemption 
23benefits is required under this Section. 
24 Failure to file a report under this subsection (h) may 
25result in suspension or revocation of the certificate of 
26exemption. The Department shall adopt rules governing 
 
 
10100SB0690ham003- 44 -LRB101 04451 SMS 61572 a


1suspension or revocation of the certificate of exemption, 
2including the length of suspension. Factors to be considered in 
3determining whether a data center certificate of exemption 
4shall be suspended or revoked include, but are not limited to, 
5prior compliance with the reporting requirements, cooperation 
6in discontinuing and correcting violations, the extent of the 
7violation, and whether the violation was willful or 
8inadvertent. 
9 (i) The Department shall not issue any new certificates of 
10exemption under the provisions of this Section after July 1, 
112029. This sunset shall not affect any existing certificates of 
12exemption in effect on July 1, 2029. 

13 Section 15-20. The State Finance Act is amended by adding 
14Sections 5.891, 5.893, and 5.894 as follows:

15 (30 ILCS 105/5.891 new)
16 Sec. 5.891. The Transportation Renewal Fund.

17 (30 ILCS 105/5.893 new)
18 Sec. 5.893. The Regional Transportation Authority Capital 
19Improvement Fund.

20 (30 ILCS 105/5.894 new)
21 Sec. 5.894. The Downstate Mass Transportation Capital 
22Improvement Fund.

 
 
10100SB0690ham003- 45 -LRB101 04451 SMS 61572 a


1 Section 15-25. The Illinois Income Tax Act is amended by 
2adding Section 229 as follows:

3 (35 ILCS 5/229 new)
4 Sec. 229. Data center construction employment tax credit.
5 (a) A taxpayer who has been awarded a credit by the 
6Department of Commerce and Economic Opportunity under Section 
7605-1025 of the Department of Commerce and Economic Opportunity 
8Law of the
Civil Administrative Code of Illinois is entitled to 
9a credit against the taxes imposed under subsections (a) and 
10(b) of Section 201 of this Act. The amount of the credit shall 
11be 20% of the wages paid during the taxable year to a full-time 
12or part-time employee of a construction contractor employed by 
13a certified data center if those wages are paid for the 
14construction of a new data center in a geographic area that 
15meets any one of the following criteria: 
16  (1) the area has a poverty rate of at least 20%, 
17 according to the latest federal decennial census; 
18  (2) 75% or more of the children in the area participate 
19 in the federal free lunch program, according to reported 
20 statistics from the State Board of Education; 
21  (3) 20% or more of the households in the area receive 
22 assistance under the Supplemental Nutrition Assistance 
23 Program (SNAP); or 
24  (4) the area has an average unemployment rate, as 
 
 
10100SB0690ham003- 46 -LRB101 04451 SMS 61572 a


1 determined by the Department of Employment Security, that 
2 is more than 120% of the national unemployment average, as 
3 determined by the U.S. Department of Labor, for a period of 
4 at least 2 consecutive calendar years preceding the date of 
5 the application. 
6 If the taxpayer is a partnership, a Subchapter S 
7corporation, or a limited liability company that has elected 
8partnership tax treatment, the credit shall be allowed to the 
9partners, shareholders, or members in accordance with the 
10determination of income and distributive share of income under 
11Sections 702 and 704 and subchapter S of the Internal Revenue 
12Code, as applicable. The Department, in cooperation with the 
13Department of Commerce and Economic Opportunity, shall adopt 
14rules to enforce and administer this Section. This Section is 
15exempt from the provisions of Section 250 of this Act. 
16 (b) In no event shall a credit under this Section reduce 
17the taxpayer's liability to less than zero. If the amount of 
18the credit exceeds the tax liability for the year, the excess 
19may be carried forward and applied to the tax liability of the 
205 taxable years following the excess credit year. The tax 
21credit shall be applied to the earliest year for which there is 
22a tax liability. If there are credits for more than one year 
23that are available to offset a liability, the earlier credit 
24shall be applied first. 
25 (c) No credit shall be allowed with respect to any 
26certification for any taxable year ending after the revocation 
 
 
10100SB0690ham003- 47 -LRB101 04451 SMS 61572 a


1of the certification by the Department of Commerce and Economic 
2Opportunity. Upon receiving notification by the Department of 
3Commerce and Economic Opportunity of the revocation of 
4certification, the Department shall notify the taxpayer that no 
5credit is allowed for any taxable year ending after the 
6revocation date, as stated in such notification. If any credit 
7has been allowed with respect to a certification for a taxable 
8year ending after the revocation date, any refund paid to the 
9taxpayer for that taxable year shall, to the extent of that 
10credit allowed, be an erroneous refund within the meaning of 
11Section 912 of this Act. 

12 Section 15-30. The Use Tax Act is amended by changing 
13Sections 2 and 3-5 as follows:



14 (35 ILCS 105/2) (from Ch. 120, par. 439.2)


15 Sec. 2. Definitions.
16 "Use" means the exercise by any person of any right or 
17power over
tangible personal property incident to the ownership 
18of that property,
except that it does not include the sale of 
19such property in any form as
tangible personal property in the 
20regular course of business to the extent
that such property is 
21not first subjected to a use for which it was
purchased, and 
22does not include the use of such property by its owner for

23demonstration purposes: Provided that the property purchased 
24is deemed to
be purchased for the purpose of resale, despite 
 
 
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1first being used, to the
extent to which it is resold as an 
2ingredient of an intentionally produced
product or by-product 
3of manufacturing. "Use" does not mean the demonstration
use or 
4interim use of tangible personal property by a retailer before 
5he sells
that tangible personal property. For watercraft or 
6aircraft, if the period of
demonstration use or interim use by 
7the retailer exceeds 18 months,
the retailer
shall pay on the 
8retailers' original cost price the tax imposed by this Act,
and 
9no credit for that tax is permitted if the watercraft or 
10aircraft is
subsequently sold by the retailer. "Use" does not 
11mean the physical
incorporation of tangible personal property, 
12to the extent not first subjected
to a use for which it was 
13purchased, as an ingredient or constituent, into
other tangible 
14personal property (a) which is sold in the regular course of

15business or (b) which the person incorporating such ingredient 
16or constituent
therein has undertaken at the time of such 
17purchase to cause to be transported
in interstate commerce to 
18destinations outside the State of Illinois: Provided
that the 
19property purchased is deemed to be purchased for the purpose of

20resale, despite first being used, to the extent to which it is 
21resold as an
ingredient of an intentionally produced product or 
22by-product of manufacturing.

23 "Watercraft" means a Class 2, Class 3, or Class 4 
24watercraft as defined in
Section 3-2 of the Boat Registration 
25and Safety Act, a personal watercraft, or
any boat equipped 
26with an inboard motor.

 
 
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1 "Purchase at retail" means the acquisition of the ownership 
2of or title
to tangible personal property through a sale at 
3retail.

4 "Purchaser" means anyone who, through a sale at retail, 
5acquires the
ownership of tangible personal property for a 
6valuable consideration.

7 "Sale at retail" means any transfer of the ownership of or 
8title to
tangible personal property to a purchaser, for the 
9purpose of use, and not
for the purpose of resale in any form 
10as tangible personal property to the
extent not first subjected 
11to a use for which it was purchased, for a
valuable 
12consideration: Provided that the property purchased is deemed 
13to
be purchased for the purpose of resale, despite first being 
14used, to the
extent to which it is resold as an ingredient of 
15an intentionally produced
product or by-product of 
16manufacturing. For this purpose, slag produced as
an incident 
17to manufacturing pig iron or steel and sold is considered to be

18an intentionally produced by-product of manufacturing. "Sale 
19at retail"
includes any such transfer made for resale unless 
20made in compliance with
Section 2c of the Retailers' Occupation 
21Tax Act, as incorporated by
reference into Section 12 of this 
22Act. Transactions whereby the possession
of the property is 
23transferred but the seller retains the title as security
for 
24payment of the selling price are sales.

25 "Sale at retail" shall also be construed to include any 
26Illinois
florist's sales transaction in which the purchase 
 
 
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1order is received in
Illinois by a florist and the sale is for 
2use or consumption, but the
Illinois florist has a florist in 
3another state deliver the property to the
purchaser or the 
4purchaser's donee in such other state.

5 Nonreusable tangible personal property that is used by 
6persons engaged in
the business of operating a restaurant, 
7cafeteria, or drive-in is a sale for
resale when it is 
8transferred to customers in the ordinary course of business
as 
9part of the sale of food or beverages and is used to deliver, 
10package, or
consume food or beverages, regardless of where 
11consumption of the food or
beverages occurs. Examples of those 
12items include, but are not limited to
nonreusable, paper and 
13plastic cups, plates, baskets, boxes, sleeves, buckets
or other 
14containers, utensils, straws, placemats, napkins, doggie bags, 
15and
wrapping or packaging
materials that are transferred to 
16customers as part of the sale of food or
beverages in the 
17ordinary course of business.

18 The purchase, employment and transfer of such tangible 
19personal property
as newsprint and ink for the primary purpose 
20of conveying news (with or
without other information) is not a 
21purchase, use or sale of tangible
personal property.

22 "Selling price" means the consideration for a sale valued 
23in money
whether received in money or otherwise, including 
24cash, credits, property
other than as hereinafter provided, and 
25services, but, prior to January 1, 2020, not including the

26value of or credit given for traded-in tangible personal 
 
 
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1property where the
item that is traded-in is of like kind and 
2character as that which is being
sold; beginning January 1, 
32020, "selling price" includes the portion of the value of or 
4credit given for traded-in motor vehicles of the First Division 
5as defined in Section 1-146 of the Illinois Vehicle Code of 
6like kind and character as that which is being sold that 
7exceeds $10,000. "Selling price" , and shall be determined 
8without any deduction on account of the cost
of the property 
9sold, the cost of materials used, labor or service cost or
any 
10other expense whatsoever, but does not include interest or 
11finance
charges which appear as separate items on the bill of 
12sale or sales
contract nor charges that are added to prices by 
13sellers on account of the
seller's tax liability under the 
14"Retailers' Occupation Tax Act", or on
account of the seller's 
15duty to collect, from the purchaser, the tax that
is imposed by 
16this Act, or, except as otherwise provided with respect to any 
17cigarette tax imposed by a home rule unit, on account of the 
18seller's tax liability under any local occupation tax 
19administered by the Department, or, except as otherwise 
20provided with respect to any cigarette tax imposed by a home 
21rule unit on account of the seller's duty to collect, from the 
22purchasers, the tax that is imposed under any local use tax 
23administered by the Department. Effective December 1, 1985, 
24"selling price"
shall include charges that are added to prices 
25by sellers on account of the
seller's tax liability under the 
26Cigarette Tax Act, on account of the seller's
duty to collect, 
 
 
10100SB0690ham003- 52 -LRB101 04451 SMS 61572 a


1from the purchaser, the tax imposed under the Cigarette Use
Tax 
2Act, and on account of the seller's duty to collect, from the 
3purchaser,
any cigarette tax imposed by a home rule unit.

4 Notwithstanding any law to the contrary, for any motor 
5vehicle, as defined in Section 1-146 of the Vehicle Code, that 
6is sold on or after January 1, 2015 for the purpose of leasing 
7the vehicle for a defined period that is longer than one year 
8and (1) is a motor vehicle of the second division that: (A) is 
9a self-contained motor vehicle designed or permanently 
10converted to provide living quarters for recreational, 
11camping, or travel use, with direct walk through access to the 
12living quarters from the driver's seat; (B) is of the van 
13configuration designed for the transportation of not less than 
147 nor more than 16 passengers; or (C) has a gross vehicle 
15weight rating of 8,000 pounds or less or (2) is a motor vehicle 
16of the first division, "selling price" or "amount of sale" 
17means the consideration received by the lessor pursuant to the 
18lease contract, including amounts due at lease signing and all 
19monthly or other regular payments charged over the term of the 
20lease. Also included in the selling price is any amount 
21received by the lessor from the lessee for the leased vehicle 
22that is not calculated at the time the lease is executed, 
23including, but not limited to, excess mileage charges and 
24charges for excess wear and tear. For sales that occur in 
25Illinois, with respect to any amount received by the lessor 
26from the lessee for the leased vehicle that is not calculated 
 
 
10100SB0690ham003- 53 -LRB101 04451 SMS 61572 a


1at the time the lease is executed, the lessor who purchased the 
2motor vehicle does not incur the tax imposed by the Use Tax Act 
3on those amounts, and the retailer who makes the retail sale of 
4the motor vehicle to the lessor is not required to collect the 
5tax imposed by this Act or to pay the tax imposed by the 
6Retailers' Occupation Tax Act on those amounts. However, the 
7lessor who purchased the motor vehicle assumes the liability 
8for reporting and paying the tax on those amounts directly to 
9the Department in the same form (Illinois Retailers' Occupation 
10Tax, and local retailers' occupation taxes, if applicable) in 
11which the retailer would have reported and paid such tax if the 
12retailer had accounted for the tax to the Department. For 
13amounts received by the lessor from the lessee that are not 
14calculated at the time the lease is executed, the lessor must 
15file the return and pay the tax to the Department by the due 
16date otherwise required by this Act for returns other than 
17transaction returns. If the retailer is entitled under this Act 
18to a discount for collecting and remitting the tax imposed 
19under this Act to the Department with respect to the sale of 
20the motor vehicle to the lessor, then the right to the discount 
21provided in this Act shall be transferred to the lessor with 
22respect to the tax paid by the lessor for any amount received 
23by the lessor from the lessee for the leased vehicle that is 
24not calculated at the time the lease is executed; provided that 
25the discount is only allowed if the return is timely filed and 
26for amounts timely paid. The "selling price" of a motor vehicle 
 
 
10100SB0690ham003- 54 -LRB101 04451 SMS 61572 a


1that is sold on or after January 1, 2015 for the purpose of 
2leasing for a defined period of longer than one year shall not 
3be reduced by the value of or credit given for traded-in 
4tangible personal property owned by the lessor, nor shall it be 
5reduced by the value of or credit given for traded-in tangible 
6personal property owned by the lessee, regardless of whether 
7the trade-in value thereof is assigned by the lessee to the 
8lessor. In the case of a motor vehicle that is sold for the 
9purpose of leasing for a defined period of longer than one 
10year, the sale occurs at the time of the delivery of the 
11vehicle, regardless of the due date of any lease payments. A 
12lessor who incurs a Retailers' Occupation Tax liability on the 
13sale of a motor vehicle coming off lease may not take a credit 
14against that liability for the Use Tax the lessor paid upon the 
15purchase of the motor vehicle (or for any tax the lessor paid 
16with respect to any amount received by the lessor from the 
17lessee for the leased vehicle that was not calculated at the 
18time the lease was executed) if the selling price of the motor 
19vehicle at the time of purchase was calculated using the 
20definition of "selling price" as defined in this paragraph. 
21Notwithstanding any other provision of this Act to the 
22contrary, lessors shall file all returns and make all payments 
23required under this paragraph to the Department by electronic 
24means in the manner and form as required by the Department. 
25This paragraph does not apply to leases of motor vehicles for 
26which, at the time the lease is entered into, the term of the 
 
 
10100SB0690ham003- 55 -LRB101 04451 SMS 61572 a


1lease is not a defined period, including leases with a defined 
2initial period with the option to continue the lease on a 
3month-to-month or other basis beyond the initial defined 
4period. 
5 The phrase "like kind and character" shall be liberally 
6construed
(including but not limited to any form of motor 
7vehicle for any form of
motor vehicle, or any kind of farm or 
8agricultural implement for any other
kind of farm or 
9agricultural implement), while not including a kind of item

10which, if sold at retail by that retailer, would be exempt from 
11retailers'
occupation tax and use tax as an isolated or 
12occasional sale.

13 "Department" means the Department of Revenue.

14 "Person" means any natural individual, firm, partnership, 
15association,
joint stock company, joint adventure, public or 
16private corporation, limited
liability company, or a
receiver, 
17executor, trustee, guardian or other representative appointed

18by order of any court.

19 "Retailer" means and includes every person engaged in the 
20business of
making sales at retail as defined in this Section.

21 A person who holds himself or herself out as being engaged 
22(or who habitually
engages) in selling tangible personal 
23property at retail is a retailer
hereunder with respect to such 
24sales (and not primarily in a service
occupation) 
25notwithstanding the fact that such person designs and produces

26such tangible personal property on special order for the 
 
 
10100SB0690ham003- 56 -LRB101 04451 SMS 61572 a


1purchaser and in
such a way as to render the property of value 
2only to such purchaser, if
such tangible personal property so 
3produced on special order serves
substantially the same 
4function as stock or standard items of tangible
personal 
5property that are sold at retail.

6 A person whose activities are organized and conducted 
7primarily as a
not-for-profit service enterprise, and who 
8engages in selling tangible
personal property at retail 
9(whether to the public or merely to members and
their guests) 
10is a retailer with respect to such transactions, excepting
only 
11a person organized and operated exclusively for charitable, 
12religious
or educational purposes either (1), to the extent of 
13sales by such person
to its members, students, patients or 
14inmates of tangible personal property
to be used primarily for 
15the purposes of such person, or (2), to the extent
of sales by 
16such person of tangible personal property which is not sold or

17offered for sale by persons organized for profit. The selling 
18of school
books and school supplies by schools at retail to 
19students is not
"primarily for the purposes of" the school 
20which does such selling. This
paragraph does not apply to nor 
21subject to taxation occasional dinners,
social or similar 
22activities of a person organized and operated exclusively
for 
23charitable, religious or educational purposes, whether or not 
24such
activities are open to the public.

25 A person who is the recipient of a grant or contract under 
26Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and 
 
 
10100SB0690ham003- 57 -LRB101 04451 SMS 61572 a


1serves meals to
participants in the federal Nutrition Program 
2for the Elderly in return for
contributions established in 
3amount by the individual participant pursuant
to a schedule of 
4suggested fees as provided for in the federal Act is not a

5retailer under this Act with respect to such transactions.

6 Persons who engage in the business of transferring tangible 
7personal
property upon the redemption of trading stamps are 
8retailers hereunder when
engaged in such business.

9 The isolated or occasional sale of tangible personal 
10property at retail
by a person who does not hold himself out as 
11being engaged (or who does not
habitually engage) in selling 
12such tangible personal property at retail or
a sale through a 
13bulk vending machine does not make such person a retailer

14hereunder. However, any person who is engaged in a business 
15which is not
subject to the tax imposed by the "Retailers' 
16Occupation Tax Act" because
of involving the sale of or a 
17contract to sell real estate or a
construction contract to 
18improve real estate, but who, in the course of
conducting such 
19business, transfers tangible personal property to users or

20consumers in the finished form in which it was purchased, and 
21which does
not become real estate, under any provision of a 
22construction contract or
real estate sale or real estate sales 
23agreement entered into with some
other person arising out of or 
24because of such nontaxable business, is a
retailer to the 
25extent of the value of the tangible personal property so

26transferred. If, in such transaction, a separate charge is made 
 
 
10100SB0690ham003- 58 -LRB101 04451 SMS 61572 a


1for the
tangible personal property so transferred, the value of 
2such property, for
the purposes of this Act, is the amount so 
3separately charged, but not less
than the cost of such property 
4to the transferor; if no separate charge is
made, the value of 
5such property, for the purposes of this Act, is the cost
to the 
6transferor of such tangible personal property.

7 "Retailer maintaining a place of business in this State", 
8or any like
term, means and includes any of the following 
9retailers:

10  (1) A retailer having or maintaining within this State, 
11 directly or by
a subsidiary, an office, distribution house, 
12 sales house, warehouse or other
place of business, or any 
13 agent or other representative operating within this
State 
14 under the authority of the retailer or its subsidiary, 
15 irrespective of
whether such place of business or agent or 
16 other representative is located here
permanently or 
17 temporarily, or whether such retailer or subsidiary is 
18 licensed
to do business in this State. However, the 
19 ownership of property that is
located at the premises of a 
20 printer with which the retailer has contracted for
printing 
21 and that consists of the final printed product, property 
22 that becomes
a part of the final printed product, or copy 
23 from which the printed product is
produced shall not result 
24 in the retailer being deemed to have or maintain an
office, 
25 distribution house, sales house, warehouse, or other place 
26 of business
within this State.
 
 
10100SB0690ham003- 59 -LRB101 04451 SMS 61572 a


1  (1.1) (Blank). A retailer having a contract with a 
2 person located in this State under which the person, for a 
3 commission or other consideration based upon the sale of 
4 tangible personal property by the retailer, directly or 
5 indirectly refers potential customers to the retailer by 
6 providing to the potential customers a promotional code or 
7 other mechanism that allows the retailer to track purchases 
8 referred by such persons. Examples of mechanisms that allow 
9 the retailer to track purchases referred by such persons 
10 include but are not limited to the use of a link on the 
11 person's Internet website, promotional codes distributed 
12 through the person's hand-delivered or mailed material, 
13 and promotional codes distributed by the person through 
14 radio or other broadcast media. The provisions of this 
15 paragraph (1.1) shall apply only if the cumulative gross 
16 receipts from sales of tangible personal property by the 
17 retailer to customers who are referred to the retailer by 
18 all persons in this State under such contracts exceed 
19 $10,000 during the preceding 4 quarterly periods ending on 
20 the last day of March, June, September, and December. A 
21 retailer meeting the requirements of this paragraph (1.1) 
22 shall be presumed to be maintaining a place of business in 
23 this State but may rebut this presumption by submitting 
24 proof that the referrals or other activities pursued within 
25 this State by such persons were not sufficient to meet the 
26 nexus standards of the United States Constitution during 
 
 
10100SB0690ham003- 60 -LRB101 04451 SMS 61572 a


1 the preceding 4 quarterly periods.
2  (1.2) (Blank). Beginning July 1, 2011, a retailer 
3 having a contract with a person located in this State under 
4 which:
5   (A) the retailer sells the same or substantially 
6 similar line of products as the person located in this 
7 State and does so using an identical or substantially 
8 similar name, trade name, or trademark as the person 
9 located in this State; and
10   (B) the retailer provides a commission or other 
11 consideration to the person located in this State based 
12 upon the sale of tangible personal property by the 
13 retailer.
14 The provisions of this paragraph (1.2) shall apply only if 
15 the cumulative gross receipts from sales of tangible 
16 personal property by the retailer to customers in this 
17 State under all such contracts exceed $10,000 during the 
18 preceding 4 quarterly periods ending on the last day of 
19 March, June, September, and December. 

20  (2) (Blank). A retailer soliciting orders for tangible 
21 personal property by
means of a telecommunication or 
22 television shopping system (which utilizes toll
free 
23 numbers) which is intended by the retailer to be broadcast 
24 by cable
television or other means of broadcasting, to 
25 consumers located in this State.

26  (3) (Blank). A retailer, pursuant to a contract with a 
 
 
10100SB0690ham003- 61 -LRB101 04451 SMS 61572 a


1 broadcaster or publisher
located in this State, soliciting 
2 orders for tangible personal property by
means of 
3 advertising which is disseminated primarily to consumers 
4 located in
this State and only secondarily to bordering 
5 jurisdictions.

6  (4) (Blank). A retailer soliciting orders for tangible 
7 personal property by mail
if the solicitations are 
8 substantial and recurring and if the retailer benefits
from 
9 any banking, financing, debt collection, 
10 telecommunication, or marketing
activities occurring in 
11 this State or benefits from the location in this State
of 
12 authorized installation, servicing, or repair facilities.

13  (5) (Blank). A retailer that is owned or controlled by 
14 the same interests that own
or control any retailer 
15 engaging in business in the same or similar line of

16 business in this State.

17  (6) (Blank). A retailer having a franchisee or licensee 
18 operating under its trade
name if the franchisee or 
19 licensee is required to collect the tax under this
Section.

20  (7) (Blank). A retailer, pursuant to a contract with a 
21 cable television operator
located in this State, 
22 soliciting orders for tangible personal property by
means 
23 of advertising which is transmitted or distributed over a 
24 cable
television system in this State.

25  (8) (Blank). A retailer engaging in activities in 
26 Illinois, which activities in
the state in which the retail 
 
 
10100SB0690ham003- 62 -LRB101 04451 SMS 61572 a


1 business engaging in such activities is located
would 
2 constitute maintaining a place of business in that state.

3  (9) Beginning October 1, 2018 through June 30, 2020, a 
4 retailer making sales of tangible personal property to 
5 purchasers in Illinois from outside of Illinois if: 
6   (A) the cumulative gross receipts from sales of 
7 tangible personal property to purchasers in Illinois 
8 are $100,000 or more; or 
9   (B) the retailer enters into 200 or more separate 
10 transactions for the sale of tangible personal 
11 property to purchasers in Illinois. 
12  The retailer shall determine on a quarterly basis, 
13 ending on the last day of March, June, September, and 
14 December, whether he or she meets the criteria of either 
15 subparagraph (A) or (B) of this paragraph (9) for the 
16 preceding 12-month period. If the retailer meets the 
17 criteria of either subparagraph (A) or (B) for a 12-month 
18 period, he or she is considered a retailer maintaining a 
19 place of business in this State and is required to collect 
20 and remit the tax imposed under this Act and file returns 
21 for one year. At the end of that one-year period, the 
22 retailer shall determine whether the retailer met the 
23 criteria of either subparagraph (A) or (B) during the 
24 preceding 12-month period. If the retailer met the criteria 
25 in either subparagraph (A) or (B) for the preceding 
26 12-month period, he or she is considered a retailer 
 
 
10100SB0690ham003- 63 -LRB101 04451 SMS 61572 a


1 maintaining a place of business in this State and is 
2 required to collect and remit the tax imposed under this 
3 Act and file returns for the subsequent year. If at the end 
4 of a one-year period a retailer that was required to 
5 collect and remit the tax imposed under this Act determines 
6 that he or she did not meet the criteria in either 
7 subparagraph (A) or (B) during the preceding 12-month 
8 period, the retailer shall subsequently determine on a 
9 quarterly basis, ending on the last day of March, June, 
10 September, and December, whether he or she meets the 
11 criteria of either subparagraph (A) or (B) for the 
12 preceding 12-month period. 
13 "Bulk vending machine" means a vending machine,
containing 
14unsorted confections, nuts, toys, or other items designed

15primarily to be used or played with by children
which, when a 
16coin or coins of a denomination not larger than $0.50 are 
17inserted, are dispensed in equal portions, at random and

18without selection by the customer.

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




20 (35 ILCS 105/3-5)


21 Sec. 3-5. Exemptions. Use of the following tangible 
22personal property is exempt from the tax imposed by this Act:

23 (1) Personal property purchased from a corporation, 
24society, association,
foundation, institution, or 
25organization, other than a limited liability
company, that is 
 
 
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1organized and operated as a not-for-profit service enterprise

2for the benefit of persons 65 years of age or older if the 
3personal property was not purchased by the enterprise for the 
4purpose of resale by the
enterprise.

5 (2) Personal property purchased by a not-for-profit 
6Illinois county
fair association for use in conducting, 
7operating, or promoting the
county fair.

8 (3) Personal property purchased by a not-for-profit
arts or 
9cultural organization that establishes, by proof required by 
10the
Department by
rule, that it has received an exemption under 
11Section 501(c)(3) of the Internal
Revenue Code and that is 
12organized and operated primarily for the
presentation
or 
13support of arts or cultural programming, activities, or 
14services. These
organizations include, but are not limited to, 
15music and dramatic arts
organizations such as symphony 
16orchestras and theatrical groups, arts and
cultural service 
17organizations, local arts councils, visual arts organizations,

18and media arts organizations.
On and after July 1, 2001 (the 
19effective date of Public Act 92-35), however, an entity 
20otherwise eligible for this exemption shall not
make tax-free 
21purchases unless it has an active identification number issued 
22by
the Department.

23 (4) Personal property purchased by a governmental body, by 
24a
corporation, society, association, foundation, or 
25institution organized and
operated exclusively for charitable, 
26religious, or educational purposes, or
by a not-for-profit 
 
 
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1corporation, society, association, foundation,
institution, or 
2organization that has no compensated officers or employees
and 
3that is organized and operated primarily for the recreation of 
4persons
55 years of age or older. A limited liability company 
5may qualify for the
exemption under this paragraph only if the 
6limited liability company is
organized and operated 
7exclusively for educational purposes. On and after July
1, 
81987, however, no entity otherwise eligible for this exemption 
9shall make
tax-free purchases unless it has an active exemption 
10identification number
issued by the Department.

11 (5) Until July 1, 2003, a passenger car that is a 
12replacement vehicle to
the extent that the
purchase price of 
13the car is subject to the Replacement Vehicle Tax.

14 (6) Until July 1, 2003 and beginning again on September 1, 
152004 through August 30, 2014, graphic arts machinery and 
16equipment, including
repair and replacement
parts, both new and 
17used, and including that manufactured on special order,

18certified by the purchaser to be used primarily for graphic 
19arts production,
and including machinery and equipment 
20purchased for lease.
Equipment includes chemicals or chemicals 
21acting as catalysts but only if
the
chemicals or chemicals 
22acting as catalysts effect a direct and immediate change
upon a 
23graphic arts product. Beginning on July 1, 2017, graphic arts 
24machinery and equipment is included in the manufacturing and 
25assembling machinery and equipment exemption under paragraph 
26(18). 

 
 
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1 (7) Farm chemicals.

2 (8) Legal tender, currency, medallions, or gold or silver 
3coinage issued by
the State of Illinois, the government of the 
4United States of America, or the
government of any foreign 
5country, and bullion.

6 (9) Personal property purchased from a teacher-sponsored 
7student
organization affiliated with an elementary or 
8secondary school located in
Illinois.

9 (10) A motor vehicle that is used for automobile renting, 
10as defined in the
Automobile Renting Occupation and Use Tax 
11Act.

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

13including that manufactured on special order, certified by the 
14purchaser
to be used primarily for production agriculture or 
15State or federal
agricultural programs, including individual 
16replacement parts for
the machinery and equipment, including 
17machinery and equipment
purchased
for lease,
and including 
18implements of husbandry defined in Section 1-130 of
the 
19Illinois Vehicle Code, farm machinery and agricultural 
20chemical and
fertilizer spreaders, and nurse wagons required to 
21be registered
under Section 3-809 of the Illinois Vehicle Code,

22but excluding other motor
vehicles required to be
registered 
23under the Illinois Vehicle Code.
Horticultural polyhouses or 
24hoop houses used for propagating, growing, or
overwintering 
25plants shall be considered farm machinery and equipment under

26this item (11).
Agricultural chemical tender tanks and dry 
 
 
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1boxes shall include units sold
separately from a motor vehicle 
2required to be licensed and units sold mounted
on a motor 
3vehicle required to be licensed if the selling price of the 
4tender
is separately stated.

5 Farm machinery and equipment shall include precision 
6farming equipment
that is
installed or purchased to be 
7installed on farm machinery and equipment
including, but not 
8limited to, tractors, harvesters, sprayers, planters,
seeders, 
9or spreaders.
Precision farming equipment includes, but is not 
10limited to, soil testing
sensors, computers, monitors, 
11software, global positioning
and mapping systems, and other 
12such equipment.

13 Farm machinery and equipment also includes computers, 
14sensors, software, and
related equipment used primarily in the

15computer-assisted operation of production agriculture 
16facilities, equipment,
and
activities such as, but not limited 
17to,
the collection, monitoring, and correlation of
animal and 
18crop data for the purpose of
formulating animal diets and 
19agricultural chemicals. This item (11) is exempt
from the 
20provisions of
Section 3-90.

21 (12) Until June 30, 2013, fuel and petroleum products sold 
22to or used by an air common
carrier, certified by the carrier 
23to be used for consumption, shipment, or
storage in the conduct 
24of its business as an air common carrier, for a
flight destined 
25for or returning from a location or locations
outside the 
26United States without regard to previous or subsequent domestic

 
 
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1stopovers.

2 Beginning July 1, 2013, fuel and petroleum products sold to 
3or used by an air carrier, certified by the carrier to be used 
4for consumption, shipment, or storage in the conduct of its 
5business as an air common carrier, for a flight that (i) is 
6engaged in foreign trade or is engaged in trade between the 
7United States and any of its possessions and (ii) transports at 
8least one individual or package for hire from the city of 
9origination to the city of final destination on the same 
10aircraft, without regard to a change in the flight number of 
11that aircraft. 
12 (13) Proceeds of mandatory service charges separately

13stated on customers' bills for the purchase and consumption of 
14food and
beverages purchased at retail from a retailer, to the 
15extent that the proceeds
of the service charge are in fact 
16turned over as tips or as a substitute
for tips to the 
17employees who participate directly in preparing, serving,

18hosting or cleaning up the food or beverage function with 
19respect to which
the service charge is imposed.

20 (14) Until July 1, 2003, oil field exploration, drilling, 
21and production
equipment,
including (i) rigs and parts of rigs, 
22rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and 
23tubular goods,
including casing and drill strings, (iii) pumps 
24and pump-jack units, (iv)
storage tanks and flow lines, (v) any 
25individual replacement part for oil
field exploration, 
26drilling, and production equipment, and (vi) machinery and

 
 
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1equipment purchased
for lease; but excluding motor vehicles 
2required to be registered under the
Illinois Vehicle Code.

3 (15) Photoprocessing machinery and equipment, including 
4repair and
replacement parts, both new and used, including that

5manufactured on special order, certified by the purchaser to be 
6used
primarily for photoprocessing, and including

7photoprocessing machinery and equipment purchased for lease.

8 (16) Until July 1, 2023, coal and aggregate exploration, 
9mining, off-highway hauling,
processing, maintenance, and 
10reclamation equipment,
including replacement parts and 
11equipment, and
including equipment purchased for lease, but 
12excluding motor
vehicles required to be registered under the 
13Illinois Vehicle Code. The changes made to this Section by 
14Public Act 97-767 apply on and after July 1, 2003, but no claim 
15for credit or refund is allowed on or after August 16, 2013 
16(the effective date of Public Act 98-456)
for such taxes paid 
17during the period beginning July 1, 2003 and ending on August 
1816, 2013 (the effective date of Public Act 98-456). 

19 (17) Until July 1, 2003, distillation machinery and 
20equipment, sold as a
unit or kit,
assembled or installed by the 
21retailer, certified by the user to be used
only for the 
22production of ethyl alcohol that will be used for consumption

23as motor fuel or as a component of motor fuel for the personal 
24use of the
user, and not subject to sale or resale.

25 (18) Manufacturing and assembling machinery and equipment 
26used
primarily in the process of manufacturing or assembling 
 
 
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1tangible
personal property for wholesale or retail sale or 
2lease, whether that sale
or lease is made directly by the 
3manufacturer or by some other person,
whether the materials 
4used in the process are
owned by the manufacturer or some other 
5person, or whether that sale or
lease is made apart from or as 
6an incident to the seller's engaging in
the service occupation 
7of producing machines, tools, dies, jigs,
patterns, gauges, or 
8other similar items of no commercial value on
special order for 
9a particular purchaser. The exemption provided by this 
10paragraph (18) does not include machinery and equipment used in 
11(i) the generation of electricity for wholesale or retail sale; 
12(ii) the generation or treatment of natural or artificial gas 
13for wholesale or retail sale that is delivered to customers 
14through pipes, pipelines, or mains; or (iii) the treatment of 
15water for wholesale or retail sale that is delivered to 
16customers through pipes, pipelines, or mains. The provisions of 
17Public Act 98-583 are declaratory of existing law as to the 
18meaning and scope of this exemption. Beginning on July 1, 2017, 
19the exemption provided by this paragraph (18) includes, but is 
20not limited to, graphic arts machinery and equipment, as 
21defined in paragraph (6) of this Section. 

22 (19) Personal property delivered to a purchaser or 
23purchaser's donee
inside Illinois when the purchase order for 
24that personal property was
received by a florist located 
25outside Illinois who has a florist located
inside Illinois 
26deliver the personal property.

 
 
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1 (20) Semen used for artificial insemination of livestock 
2for direct
agricultural production.

3 (21) Horses, or interests in horses, registered with and 
4meeting the
requirements of any of the
Arabian Horse Club 
5Registry of America, Appaloosa Horse Club, American Quarter

6Horse Association, United States
Trotting Association, or 
7Jockey Club, as appropriate, used for
purposes of breeding or 
8racing for prizes. This item (21) is exempt from the provisions 
9of Section 3-90, and the exemption provided for under this item 
10(21) applies for all periods beginning May 30, 1995, but no 
11claim for credit or refund is allowed on or after January 1, 
122008
for such taxes paid during the period beginning May 30, 
132000 and ending on January 1, 2008.


14 (22) Computers and communications equipment utilized for 
15any
hospital
purpose
and equipment used in the diagnosis,

16analysis, or treatment of hospital patients purchased by a 
17lessor who leases
the
equipment, under a lease of one year or 
18longer executed or in effect at the
time the lessor would 
19otherwise be subject to the tax imposed by this Act, to a

20hospital
that has been issued an active tax exemption 
21identification number by
the
Department under Section 1g of the 
22Retailers' Occupation Tax Act. If the
equipment is leased in a 
23manner that does not qualify for
this exemption or is used in 
24any other non-exempt manner, the lessor
shall be liable for the

25tax imposed under this Act or the Service Use Tax Act, as the 
26case may
be, based on the fair market value of the property at 
 
 
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1the time the
non-qualifying use occurs. No lessor shall collect 
2or attempt to collect an
amount (however
designated) that 
3purports to reimburse that lessor for the tax imposed by this

4Act or the Service Use Tax Act, as the case may be, if the tax 
5has not been
paid by the lessor. If a lessor improperly 
6collects any such amount from the
lessee, the lessee shall have 
7a legal right to claim a refund of that amount
from the lessor. 
8If, however, that amount is not refunded to the lessee for
any 
9reason, the lessor is liable to pay that amount to the 
10Department.

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

12property, under
a
lease of
one year or longer executed or in 
13effect at the time
the lessor would otherwise be subject to the 
14tax imposed by this Act,
to a governmental body
that has been 
15issued an active sales tax exemption identification number by 
16the
Department under Section 1g of the Retailers' Occupation 
17Tax Act.
If the
property is leased in a manner that does not 
18qualify for
this exemption
or used in any other non-exempt 
19manner, the lessor shall be liable for the
tax imposed under 
20this Act or the Service Use Tax Act, as the case may
be, based 
21on the fair market value of the property at the time the

22non-qualifying use occurs. No lessor shall collect or attempt 
23to collect an
amount (however
designated) that purports to 
24reimburse that lessor for the tax imposed by this
Act or the 
25Service Use Tax Act, as the case may be, if the tax has not been

26paid by the lessor. If a lessor improperly collects any such 
 
 
10100SB0690ham003- 73 -LRB101 04451 SMS 61572 a


1amount from the
lessee, the lessee shall have a legal right to 
2claim a refund of that amount
from the lessor. If, however, 
3that amount is not refunded to the lessee for
any reason, the 
4lessor is liable to pay that amount to the Department.

5 (24) Beginning with taxable years ending on or after 
6December
31, 1995
and
ending with taxable years ending on or 
7before December 31, 2004,
personal property that is
donated for 
8disaster relief to be used in a State or federally declared

9disaster area in Illinois or bordering Illinois by a 
10manufacturer or retailer
that is registered in this State to a 
11corporation, society, association,
foundation, or institution 
12that has been issued a sales tax exemption
identification 
13number by the Department that assists victims of the disaster

14who reside within the declared disaster area.

15 (25) Beginning with taxable years ending on or after 
16December
31, 1995 and
ending with taxable years ending on or 
17before December 31, 2004, personal
property that is used in the 
18performance of infrastructure repairs in this
State, including 
19but not limited to municipal roads and streets, access roads,

20bridges, sidewalks, waste disposal systems, water and sewer 
21line extensions,
water distribution and purification 
22facilities, storm water drainage and
retention facilities, and 
23sewage treatment facilities, resulting from a State
or 
24federally declared disaster in Illinois or bordering Illinois 
25when such
repairs are initiated on facilities located in the 
26declared disaster area
within 6 months after the disaster.

 
 
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1 (26) Beginning July 1, 1999, game or game birds purchased 
2at a "game
breeding
and hunting preserve area" as that term is

3used in
the Wildlife Code. This paragraph is exempt from the 
4provisions
of
Section 3-90.

5 (27) A motor vehicle, as that term is defined in Section 
61-146
of the
Illinois
Vehicle Code, that is donated to a 
7corporation, limited liability company,
society, association, 
8foundation, or institution that is determined by the
Department 
9to be organized and operated exclusively for educational 
10purposes.
For purposes of this exemption, "a corporation, 
11limited liability company,
society, association, foundation, 
12or institution organized and operated
exclusively for 
13educational purposes" means all tax-supported public schools,

14private schools that offer systematic instruction in useful 
15branches of
learning by methods common to public schools and 
16that compare favorably in
their scope and intensity with the 
17course of study presented in tax-supported
schools, and 
18vocational or technical schools or institutes organized and

19operated exclusively to provide a course of study of not less 
20than 6 weeks
duration and designed to prepare individuals to 
21follow a trade or to pursue a
manual, technical, mechanical, 
22industrial, business, or commercial
occupation.

23 (28) Beginning January 1, 2000, personal property, 
24including
food,
purchased through fundraising
events for the 
25benefit of
a public or private elementary or
secondary school, 
26a group of those schools, or one or more school
districts if 
 
 
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1the events are
sponsored by an entity recognized by the school 
2district that consists
primarily of volunteers and includes

3parents and teachers of the school children. This paragraph 
4does not apply
to fundraising
events (i) for the benefit of 
5private home instruction or (ii)
for which the fundraising 
6entity purchases the personal property sold at
the events from 
7another individual or entity that sold the property for the

8purpose of resale by the fundraising entity and that
profits 
9from the sale to the
fundraising entity. This paragraph is 
10exempt
from the provisions
of Section 3-90.

11 (29) Beginning January 1, 2000 and through December 31, 
122001, new or
used automatic vending
machines that prepare and 
13serve hot food and beverages, including coffee, soup,
and
other 
14items, and replacement parts for these machines.
Beginning 
15January 1,
2002 and through June 30, 2003, machines and parts 
16for machines used in
commercial, coin-operated amusement and 
17vending business if a use or occupation
tax is paid on the 
18gross receipts derived from the use of the commercial,

19coin-operated amusement and vending machines.
This
paragraph

20is exempt from the provisions of Section 3-90.

21 (30) Beginning January 1, 2001 and through June 30, 2016, 
22food for human consumption that is to be consumed off the 
23premises
where it is sold (other than alcoholic beverages, soft 
24drinks, and food that
has been prepared for immediate 
25consumption) and prescription and
nonprescription medicines, 
26drugs, medical appliances, and insulin, urine
testing 
 
 
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1materials, syringes, and needles used by diabetics, for human 
2use, when
purchased for use by a person receiving medical 
3assistance under Article V of
the Illinois Public Aid Code who 
4resides in a licensed long-term care facility,
as defined in 
5the Nursing Home Care Act, or in a licensed facility as defined 
6in the ID/DD Community Care Act, the MC/DD Act, or the 
7Specialized Mental Health Rehabilitation Act of 2013.

8 (31) Beginning on August 2, 2001 (the effective date of 
9Public Act 92-227),
computers and communications equipment

10utilized for any hospital purpose and equipment used in the 
11diagnosis,
analysis, or treatment of hospital patients 
12purchased by a lessor who leases
the equipment, under a lease 
13of one year or longer executed or in effect at the
time the 
14lessor would otherwise be subject to the tax imposed by this 
15Act, to a
hospital that has been issued an active tax exemption 
16identification number by
the Department under Section 1g of the 
17Retailers' Occupation Tax Act. If the
equipment is leased in a 
18manner that does not qualify for this exemption or is
used in 
19any other nonexempt manner, the lessor shall be liable for the 
20tax
imposed under this Act or the Service Use Tax Act, as the 
21case may be, based on
the fair market value of the property at 
22the time the nonqualifying use
occurs. No lessor shall collect 
23or attempt to collect an amount (however
designated) that 
24purports to reimburse that lessor for the tax imposed by this

25Act or the Service Use Tax Act, as the case may be, if the tax 
26has not been
paid by the lessor. If a lessor improperly 
 
 
10100SB0690ham003- 77 -LRB101 04451 SMS 61572 a


1collects any such amount from the
lessee, the lessee shall have 
2a legal right to claim a refund of that amount
from the lessor. 
3If, however, that amount is not refunded to the lessee for
any 
4reason, the lessor is liable to pay that amount to the 
5Department.
This paragraph is exempt from the provisions of 
6Section 3-90.

7 (32) Beginning on August 2, 2001 (the effective date of 
8Public Act 92-227),
personal property purchased by a lessor who 
9leases the property,
under a lease of one year or longer 
10executed or in effect at the time the
lessor would otherwise be 
11subject to the tax imposed by this Act, to a
governmental body 
12that has been issued an active sales tax exemption

13identification number by the Department under Section 1g of the 
14Retailers'
Occupation Tax Act. If the property is leased in a 
15manner that does not
qualify for this exemption or used in any 
16other nonexempt manner, the lessor
shall be liable for the tax 
17imposed under this Act or the Service Use Tax Act,
as the case 
18may be, based on the fair market value of the property at the 
19time
the nonqualifying use occurs. No lessor shall collect or 
20attempt to collect
an amount (however designated) that purports 
21to reimburse that lessor for the
tax imposed by this Act or the 
22Service Use Tax Act, as the case may be, if the
tax has not been 
23paid by the lessor. If a lessor improperly collects any such

24amount from the lessee, the lessee shall have a legal right to 
25claim a refund
of that amount from the lessor. If, however, 
26that amount is not refunded to
the lessee for any reason, the 
 
 
10100SB0690ham003- 78 -LRB101 04451 SMS 61572 a


1lessor is liable to pay that amount to the
Department. This 
2paragraph is exempt from the provisions of Section 3-90.

3 (33) On and after July 1, 2003 and through June 30, 2004, 
4the use in this State of motor vehicles of
the second division 
5with a gross vehicle weight in excess of 8,000 pounds and
that 
6are subject to the commercial distribution fee imposed under 
7Section
3-815.1 of the Illinois Vehicle Code. Beginning on July 
81, 2004 and through June 30, 2005, the use in this State of 
9motor vehicles of the second division: (i) with a gross vehicle 
10weight rating in excess of 8,000 pounds; (ii) that are subject 
11to the commercial distribution fee imposed under Section 
123-815.1 of the Illinois Vehicle Code; and (iii) that are 
13primarily used for commercial purposes. Through June 30, 2005, 
14this exemption applies to repair and
replacement parts added 
15after the initial purchase of such a motor vehicle if
that 
16motor
vehicle is used in a manner that would qualify for the 
17rolling stock exemption
otherwise provided for in this Act. For 
18purposes of this paragraph, the term "used for commercial 
19purposes" means the transportation of persons or property in 
20furtherance of any commercial or industrial enterprise, 
21whether for-hire or not.


22 (34) Beginning January 1, 2008, tangible personal property 
23used in the construction or maintenance of a community water 
24supply, as defined under Section 3.145 of the Environmental 
25Protection Act, that is operated by a not-for-profit 
26corporation that holds a valid water supply permit issued under 
 
 
10100SB0690ham003- 79 -LRB101 04451 SMS 61572 a


1Title IV of the Environmental Protection Act. This paragraph is 
2exempt from the provisions of Section 3-90.
3 (35) Beginning January 1, 2010, materials, parts, 
4equipment, components, and furnishings incorporated into or 
5upon an aircraft as part of the modification, refurbishment, 
6completion, replacement, repair, or maintenance of the 
7aircraft. This exemption includes consumable supplies used in 
8the modification, refurbishment, completion, replacement, 
9repair, and maintenance of aircraft, but excludes any 
10materials, parts, equipment, components, and consumable 
11supplies used in the modification, replacement, repair, and 
12maintenance of aircraft engines or power plants, whether such 
13engines or power plants are installed or uninstalled upon any 
14such aircraft. "Consumable supplies" include, but are not 
15limited to, adhesive, tape, sandpaper, general purpose 
16lubricants, cleaning solution, latex gloves, and protective 
17films. This exemption applies only to the use of qualifying 
18tangible personal property by persons who modify, refurbish, 
19complete, repair, replace, or maintain aircraft and who (i) 
20hold an Air Agency Certificate and are empowered to operate an 
21approved repair station by the Federal Aviation 
22Administration, (ii) have a Class IV Rating, and (iii) conduct 
23operations in accordance with Part 145 of the Federal Aviation 
24Regulations. The exemption does not include aircraft operated 
25by a commercial air carrier providing scheduled passenger air 
26service pursuant to authority issued under Part 121 or Part 129 
 
 
10100SB0690ham003- 80 -LRB101 04451 SMS 61572 a


1of the Federal Aviation Regulations. The changes made to this 
2paragraph (35) by Public Act 98-534 are declarative of existing 
3law. 
4 (36) Tangible personal property purchased by a 
5public-facilities corporation, as described in Section 
611-65-10 of the Illinois Municipal Code, for purposes of 
7constructing or furnishing a municipal convention hall, but 
8only if the legal title to the municipal convention hall is 
9transferred to the municipality without any further 
10consideration by or on behalf of the municipality at the time 
11of the completion of the municipal convention hall or upon the 
12retirement or redemption of any bonds or other debt instruments 
13issued by the public-facilities corporation in connection with 
14the development of the municipal convention hall. This 
15exemption includes existing public-facilities corporations as 
16provided in Section 11-65-25 of the Illinois Municipal Code. 
17This paragraph is exempt from the provisions of Section 3-90. 
18 (37) Beginning January 1, 2017, menstrual pads, tampons, 
19and menstrual cups. 
20 (38) Merchandise that is subject to the Rental Purchase 
21Agreement Occupation and Use Tax. The purchaser must certify 
22that the item is purchased to be rented subject to a rental 
23purchase agreement, as defined in the Rental Purchase Agreement 
24Act, and provide proof of registration under the Rental 
25Purchase Agreement Occupation and Use Tax Act. This paragraph 
26is exempt from the provisions of Section 3-90.
 
 
10100SB0690ham003- 81 -LRB101 04451 SMS 61572 a


1 (39) Tangible personal property purchased by a purchaser 
2who is exempt from the tax imposed by this Act by operation of 
3federal law. This paragraph is exempt from the provisions of 
4Section 3-90.
5 (40) Qualified tangible personal property used in the 
6construction or operation of a data center that has been 
7granted a certificate of exemption by the Department of 
8Commerce and Economic Opportunity, whether that tangible 
9personal property is purchased by the owner, operator, or 
10tenant of the data center or by a contractor or subcontractor 
11of the owner, operator, or tenant. Data centers that would have 
12qualified for a certificate of exemption prior to January 1, 
132020 had this amendatory Act of the 101st General Assembly been 
14in effect, may apply for and obtain an exemption for subsequent 
15purchases of computer equipment or enabling software purchased 
16or leased to upgrade, supplement, or replace computer equipment 
17or enabling software purchased or leased in the original 
18investment that would have qualified. 
19 The Department of Commerce and Economic Opportunity shall 
20grant a certificate of exemption under this item (40) to 
21qualified data centers as defined by Section 605-1025 of the 
22Department of Commerce and Economic Opportunity Law of the

23Civil Administrative Code of Illinois. 
24 For the purposes of this item (40): 
25  "Data center" means a building or a series of buildings 
26 rehabilitated or constructed to house working servers in 
 
 
10100SB0690ham003- 82 -LRB101 04451 SMS 61572 a


1 one physical location or multiple sites within the State of 
2 Illinois. 
3  "Qualified tangible personal property" means: 
4 electrical systems and equipment; climate control and 
5 chilling equipment and systems; mechanical systems and 
6 equipment; monitoring and secure systems; emergency 
7 generators; hardware; computers; servers; data storage 
8 devices; network connectivity equipment; racks; cabinets; 
9 telecommunications cabling infrastructure; raised floor 
10 systems; peripheral components or systems; software; 
11 mechanical, electrical, or plumbing systems; battery 
12 systems; cooling systems and towers; temperature control 
13 systems; other cabling; and other data center 
14 infrastructure equipment and systems necessary to operate 
15 qualified tangible personal property, including fixtures; 
16 and component parts of any of the foregoing, including 
17 installation, maintenance, repair, refurbishment, and 
18 replacement of qualified tangible personal property to 
19 generate, transform, transmit, distribute, or manage 
20 electricity necessary to operate qualified tangible 
21 personal property; and all other tangible personal 
22 property that is essential to the operations of a computer 
23 data center. The term "qualified tangible personal 
24 property" also includes building materials physically 
25 incorporated in to the qualifying data center. To document 
26 the exemption allowed under this Section, the retailer must 
 
 
10100SB0690ham003- 83 -LRB101 04451 SMS 61572 a


1 obtain from the purchaser a copy of the certificate of 
2 eligibility issued by the Department of Commerce and 
3 Economic Opportunity. 
4 This item (40) is exempt from the provisions of Section 
53-90. 
6(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; 
7100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff. 
86-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised 
91-8-19.)


10 Section 15-35. The Service Use Tax Act is amended by 
11changing Section 3-5 as follows:



12 (35 ILCS 110/3-5)


13 Sec. 3-5. Exemptions. Use of the following tangible 
14personal property
is exempt from the tax imposed by this Act:

15 (1) Personal property purchased from a corporation, 
16society,
association, foundation, institution, or 
17organization, other than a limited
liability company, that is 
18organized and operated as a not-for-profit service
enterprise 
19for the benefit of persons 65 years of age or older if the 
20personal
property was not purchased by the enterprise for the 
21purpose of resale by the
enterprise.

22 (2) Personal property purchased by a non-profit Illinois 
23county fair
association for use in conducting, operating, or 
24promoting the county fair.

 
 
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1 (3) Personal property purchased by a not-for-profit arts
or 
2cultural
organization that establishes, by proof required by 
3the Department by rule,
that it has received an exemption under 
4Section 501(c)(3) of the Internal
Revenue Code and that is 
5organized and operated primarily for the
presentation
or 
6support of arts or cultural programming, activities, or 
7services. These
organizations include, but are not limited to, 
8music and dramatic arts
organizations such as symphony 
9orchestras and theatrical groups, arts and
cultural service 
10organizations, local arts councils, visual arts organizations,

11and media arts organizations.
On and after July 1, 2001 (the 
12effective date of Public Act 92-35) this amendatory Act of the 
1392nd General
Assembly, however, an entity otherwise eligible 
14for this exemption shall not
make tax-free purchases unless it 
15has an active identification number issued by
the Department.

16 (4) Legal tender, currency, medallions, or gold or silver 
17coinage issued
by the State of Illinois, the government of the 
18United States of America,
or the government of any foreign 
19country, and bullion.

20 (5) Until July 1, 2003 and beginning again on September 1, 
212004 through August 30, 2014, graphic arts machinery and 
22equipment, including
repair and
replacement parts, both new and 
23used, and including that manufactured on
special order or 
24purchased for lease, certified by the purchaser to be used

25primarily for graphic arts production.
Equipment includes 
26chemicals or
chemicals acting as catalysts but only if
the 
 
 
10100SB0690ham003- 85 -LRB101 04451 SMS 61572 a


1chemicals or chemicals acting as catalysts effect a direct and 
2immediate
change upon a graphic arts product. Beginning on July 
31, 2017, graphic arts machinery and equipment is included in 
4the manufacturing and assembling machinery and equipment 
5exemption under Section 2 of this Act.

6 (6) Personal property purchased from a teacher-sponsored 
7student
organization affiliated with an elementary or 
8secondary school located
in Illinois.

9 (7) Farm machinery and equipment, both new and used, 
10including that
manufactured on special order, certified by the 
11purchaser to be used
primarily for production agriculture or 
12State or federal agricultural
programs, including individual 
13replacement parts for the machinery and
equipment, including 
14machinery and equipment purchased for lease,
and including 
15implements of husbandry defined in Section 1-130 of
the 
16Illinois Vehicle Code, farm machinery and agricultural 
17chemical and
fertilizer spreaders, and nurse wagons required to 
18be registered
under Section 3-809 of the Illinois Vehicle Code,

19but
excluding other motor vehicles required to be registered 
20under the Illinois
Vehicle Code.
Horticultural polyhouses or 
21hoop houses used for propagating, growing, or
overwintering 
22plants shall be considered farm machinery and equipment under

23this item (7).
Agricultural chemical tender tanks and dry boxes 
24shall include units sold
separately from a motor vehicle 
25required to be licensed and units sold mounted
on a motor 
26vehicle required to be licensed if the selling price of the 
 
 
10100SB0690ham003- 86 -LRB101 04451 SMS 61572 a


1tender
is separately stated.

2 Farm machinery and equipment shall include precision 
3farming equipment
that is
installed or purchased to be 
4installed on farm machinery and equipment
including, but not 
5limited to, tractors, harvesters, sprayers, planters,
seeders, 
6or spreaders.
Precision farming equipment includes, but is not 
7limited to,
soil testing sensors, computers, monitors, 
8software, global positioning
and mapping systems, and other 
9such equipment.

10 Farm machinery and equipment also includes computers, 
11sensors, software, and
related equipment used primarily in the

12computer-assisted operation of production agriculture 
13facilities, equipment,
and activities such as, but
not limited 
14to,
the collection, monitoring, and correlation of
animal and 
15crop data for the purpose of
formulating animal diets and 
16agricultural chemicals. This item (7) is exempt
from the 
17provisions of
Section 3-75.

18 (8) Until June 30, 2013, fuel and petroleum products sold 
19to or used by an air common
carrier, certified by the carrier 
20to be used for consumption, shipment, or
storage in the conduct 
21of its business as an air common carrier, for a
flight destined 
22for or returning from a location or locations
outside the 
23United States without regard to previous or subsequent domestic

24stopovers.

25 Beginning July 1, 2013, fuel and petroleum products sold to 
26or used by an air carrier, certified by the carrier to be used 
 
 
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1for consumption, shipment, or storage in the conduct of its 
2business as an air common carrier, for a flight that (i) is 
3engaged in foreign trade or is engaged in trade between the 
4United States and any of its possessions and (ii) transports at 
5least one individual or package for hire from the city of 
6origination to the city of final destination on the same 
7aircraft, without regard to a change in the flight number of 
8that aircraft. 
9 (9) Proceeds of mandatory service charges separately 
10stated on
customers' bills for the purchase and consumption of 
11food and beverages
acquired as an incident to the purchase of a 
12service from a serviceman, to
the extent that the proceeds of 
13the service charge are in fact
turned over as tips or as a 
14substitute for tips to the employees who
participate directly 
15in preparing, serving, hosting or cleaning up the
food or 
16beverage function with respect to which the service charge is 
17imposed.

18 (10) Until July 1, 2003, oil field exploration, drilling, 
19and production
equipment, including
(i) rigs and parts of rigs, 
20rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and 
21tubular goods, including casing and
drill strings, (iii) pumps 
22and pump-jack units, (iv) storage tanks and flow
lines, (v) any 
23individual replacement part for oil field exploration,

24drilling, and production equipment, and (vi) machinery and 
25equipment purchased
for lease; but
excluding motor vehicles 
26required to be registered under the Illinois
Vehicle Code.

 
 
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1 (11) Proceeds from the sale of photoprocessing machinery 
2and
equipment, including repair and replacement parts, both new 
3and
used, including that manufactured on special order, 
4certified by the
purchaser to be used primarily for 
5photoprocessing, and including
photoprocessing machinery and 
6equipment purchased for lease.

7 (12) Until July 1, 2023, coal and aggregate exploration, 
8mining, off-highway hauling,
processing,
maintenance, and 
9reclamation equipment, including
replacement parts and 
10equipment, and including
equipment purchased for lease, but 
11excluding motor vehicles required to be
registered under the 
12Illinois Vehicle Code. The changes made to this Section by 
13Public Act 97-767 apply on and after July 1, 2003, but no claim 
14for credit or refund is allowed on or after August 16, 2013 
15(the effective date of Public Act 98-456)
for such taxes paid 
16during the period beginning July 1, 2003 and ending on August 
1716, 2013 (the effective date of Public Act 98-456).

18 (13) Semen used for artificial insemination of livestock 
19for direct
agricultural production.

20 (14) Horses, or interests in horses, registered with and 
21meeting the
requirements of any of the
Arabian Horse Club 
22Registry of America, Appaloosa Horse Club, American Quarter

23Horse Association, United States
Trotting Association, or 
24Jockey Club, as appropriate, used for
purposes of breeding or 
25racing for prizes. This item (14) is exempt from the provisions 
26of Section 3-75, and the exemption provided for under this item 
 
 
10100SB0690ham003- 89 -LRB101 04451 SMS 61572 a


1(14) applies for all periods beginning May 30, 1995, but no 
2claim for credit or refund is allowed on or after January 1, 
32008 (the effective date of Public Act 95-88) this amendatory 
4Act of the 95th General Assembly for such taxes paid during the 
5period beginning May 30, 2000 and ending on January 1, 2008 
6(the effective date of Public Act 95-88) this amendatory Act of 
7the 95th General Assembly.

8 (15) Computers and communications equipment utilized for 
9any
hospital
purpose
and equipment used in the diagnosis,

10analysis, or treatment of hospital patients purchased by a 
11lessor who leases
the
equipment, under a lease of one year or 
12longer executed or in effect at the
time
the lessor would 
13otherwise be subject to the tax imposed by this Act,
to a

14hospital
that has been issued an active tax exemption 
15identification number by the
Department under Section 1g of the 
16Retailers' Occupation Tax Act.
If the
equipment is leased in a 
17manner that does not qualify for
this exemption
or is used in 
18any other non-exempt manner,
the lessor shall be liable for the

19tax imposed under this Act or the Use Tax Act, as the case may

20be, based on the fair market value of the property at the time 
21the
non-qualifying use occurs. No lessor shall collect or 
22attempt to collect an
amount (however
designated) that purports 
23to reimburse that lessor for the tax imposed by this
Act or the 
24Use Tax Act, as the case may be, if the tax has not been
paid by 
25the lessor. If a lessor improperly collects any such amount 
26from the
lessee, the lessee shall have a legal right to claim a 
 
 
10100SB0690ham003- 90 -LRB101 04451 SMS 61572 a


1refund of that amount
from the lessor. If, however, that amount 
2is not refunded to the lessee for
any reason, the lessor is 
3liable to pay that amount to the Department.

4 (16) Personal property purchased by a lessor who leases the

5property, under
a
lease of one year or longer executed or in 
6effect at the time
the lessor would otherwise be subject to the 
7tax imposed by this Act,
to a governmental body
that has been 
8issued an active tax exemption identification number by the

9Department under Section 1g of the Retailers' Occupation Tax 
10Act.
If the
property is leased in a manner that does not 
11qualify for
this exemption
or is used in any other non-exempt 
12manner,
the lessor shall be liable for the
tax imposed under 
13this Act or the Use Tax Act, as the case may
be, based on the 
14fair market value of the property at the time the

15non-qualifying use occurs. No lessor shall collect or attempt 
16to collect an
amount (however
designated) that purports to 
17reimburse that lessor for the tax imposed by this
Act or the 
18Use Tax Act, as the case may be, if the tax has not been
paid by 
19the lessor. If a lessor improperly collects any such amount 
20from the
lessee, the lessee shall have a legal right to claim a 
21refund of that amount
from the lessor. If, however, that amount 
22is not refunded to the lessee for
any reason, the lessor is 
23liable to pay that amount to the Department.

24 (17) Beginning with taxable years ending on or after 
25December
31,
1995
and
ending with taxable years ending on or 
26before December 31, 2004,
personal property that is
donated for 
 
 
10100SB0690ham003- 91 -LRB101 04451 SMS 61572 a


1disaster relief to be used in a State or federally declared

2disaster area in Illinois or bordering Illinois by a 
3manufacturer or retailer
that is registered in this State to a 
4corporation, society, association,
foundation, or institution 
5that has been issued a sales tax exemption
identification 
6number by the Department that assists victims of the disaster

7who reside within the declared disaster area.

8 (18) Beginning with taxable years ending on or after 
9December
31, 1995 and
ending with taxable years ending on or 
10before December 31, 2004, personal
property that is used in the 
11performance of infrastructure repairs in this
State, including 
12but not limited to municipal roads and streets, access roads,

13bridges, sidewalks, waste disposal systems, water and sewer 
14line extensions,
water distribution and purification 
15facilities, storm water drainage and
retention facilities, and 
16sewage treatment facilities, resulting from a State
or 
17federally declared disaster in Illinois or bordering Illinois 
18when such
repairs are initiated on facilities located in the 
19declared disaster area
within 6 months after the disaster.

20 (19) Beginning July 1, 1999, game or game birds purchased 
21at a "game
breeding
and hunting preserve area" as that term is

22used in
the Wildlife Code. This paragraph is exempt from the 
23provisions
of
Section 3-75.

24 (20) A motor vehicle, as that term is defined in Section 
251-146
of the
Illinois Vehicle Code, that is donated to a 
26corporation, limited liability
company, society, association, 
 
 
10100SB0690ham003- 92 -LRB101 04451 SMS 61572 a


1foundation, or institution that is determined by
the Department 
2to be organized and operated exclusively for educational

3purposes. For purposes of this exemption, "a corporation, 
4limited liability
company, society, association, foundation, 
5or institution organized and
operated
exclusively for 
6educational purposes" means all tax-supported public schools,

7private schools that offer systematic instruction in useful 
8branches of
learning by methods common to public schools and 
9that compare favorably in
their scope and intensity with the 
10course of study presented in tax-supported
schools, and 
11vocational or technical schools or institutes organized and

12operated exclusively to provide a course of study of not less 
13than 6 weeks
duration and designed to prepare individuals to 
14follow a trade or to pursue a
manual, technical, mechanical, 
15industrial, business, or commercial
occupation.

16 (21) Beginning January 1, 2000, personal property, 
17including
food,
purchased through fundraising
events for the 
18benefit of
a public or private elementary or
secondary school, 
19a group of those schools, or one or more school
districts if 
20the events are
sponsored by an entity recognized by the school 
21district that consists
primarily of volunteers and includes

22parents and teachers of the school children. This paragraph 
23does not apply
to fundraising
events (i) for the benefit of 
24private home instruction or (ii)
for which the fundraising 
25entity purchases the personal property sold at
the events from 
26another individual or entity that sold the property for the

 
 
10100SB0690ham003- 93 -LRB101 04451 SMS 61572 a


1purpose of resale by the fundraising entity and that
profits 
2from the sale to the
fundraising entity. This paragraph is 
3exempt
from the provisions
of Section 3-75.

4 (22) Beginning January 1, 2000
and through December 31, 
52001, new or used automatic vending
machines that prepare and 
6serve hot food and beverages, including coffee, soup,
and
other 
7items, and replacement parts for these machines.
Beginning 
8January 1,
2002 and through June 30, 2003, machines and parts 
9for machines used in
commercial, coin-operated
amusement
and 
10vending business if a use or occupation tax is paid on the 
11gross receipts
derived from
the use of the commercial, 
12coin-operated amusement and vending machines.
This
paragraph

13is exempt from the provisions of Section 3-75.

14 (23) Beginning August 23, 2001 and through June 30, 2016, 
15food for human consumption that is to be consumed off the

16premises
where it is sold (other than alcoholic beverages, soft 
17drinks, and food that
has been prepared for immediate 
18consumption) and prescription and
nonprescription medicines, 
19drugs, medical appliances, and insulin, urine
testing 
20materials, syringes, and needles used by diabetics, for human 
21use, when
purchased for use by a person receiving medical 
22assistance under Article V of
the Illinois Public Aid Code who 
23resides in a licensed long-term care facility,
as defined in 
24the Nursing Home Care Act, or in a licensed facility as defined 
25in the ID/DD Community Care Act, the MC/DD Act, or the 
26Specialized Mental Health Rehabilitation Act of 2013.

 
 
10100SB0690ham003- 94 -LRB101 04451 SMS 61572 a


1 (24) Beginning on August 2, 2001 (the effective date of 
2Public Act 92-227) this amendatory Act of the 92nd
General 
3Assembly, computers and communications equipment
utilized for 
4any hospital purpose and equipment used in the diagnosis,

5analysis, or treatment of hospital patients purchased by a 
6lessor who leases
the equipment, under a lease of one year or 
7longer executed or in effect at the
time the lessor would 
8otherwise be subject to the tax imposed by this Act, to a

9hospital that has been issued an active tax exemption 
10identification number by
the Department under Section 1g of the 
11Retailers' Occupation Tax Act. If the
equipment is leased in a 
12manner that does not qualify for this exemption or is
used in 
13any other nonexempt manner, the lessor shall be liable for the

14tax imposed under this Act or the Use Tax Act, as the case may 
15be, based on the
fair market value of the property at the time 
16the nonqualifying use occurs.
No lessor shall collect or 
17attempt to collect an amount (however
designated) that purports 
18to reimburse that lessor for the tax imposed by this
Act or the 
19Use Tax Act, as the case may be, if the tax has not been
paid by 
20the lessor. If a lessor improperly collects any such amount 
21from the
lessee, the lessee shall have a legal right to claim a 
22refund of that amount
from the lessor. If, however, that amount 
23is not refunded to the lessee for
any reason, the lessor is 
24liable to pay that amount to the Department.
This paragraph is 
25exempt from the provisions of Section 3-75.

26 (25) Beginning
on August 2, 2001 (the effective date of 
 
 
10100SB0690ham003- 95 -LRB101 04451 SMS 61572 a


1Public Act 92-227) this amendatory Act of the 92nd General 
2Assembly,
personal property purchased by a lessor
who leases 
3the property, under a lease of one year or longer executed or 
4in
effect at the time the lessor would otherwise be subject to 
5the tax imposed by
this Act, to a governmental body that has 
6been issued an active tax exemption
identification number by 
7the Department under Section 1g of the Retailers'
Occupation 
8Tax Act. If the property is leased in a manner that does not

9qualify for this exemption or is used in any other nonexempt 
10manner, the
lessor shall be liable for the tax imposed under 
11this Act or the Use Tax Act,
as the case may be, based on the 
12fair market value of the property at the time
the nonqualifying 
13use occurs. No lessor shall collect or attempt to collect
an 
14amount (however designated) that purports to reimburse that 
15lessor for the
tax imposed by this Act or the Use Tax Act, as 
16the case may be, if the tax has
not been paid by the lessor. If 
17a lessor improperly collects any such amount
from the lessee, 
18the lessee shall have a legal right to claim a refund of that

19amount from the lessor. If, however, that amount is not 
20refunded to the lessee
for any reason, the lessor is liable to 
21pay that amount to the Department.
This paragraph is exempt 
22from the provisions of Section 3-75.

23 (26) Beginning January 1, 2008, tangible personal property 
24used in the construction or maintenance of a community water 
25supply, as defined under Section 3.145 of the Environmental 
26Protection Act, that is operated by a not-for-profit 
 
 
10100SB0690ham003- 96 -LRB101 04451 SMS 61572 a


1corporation that holds a valid water supply permit issued under 
2Title IV of the Environmental Protection Act. This paragraph is 
3exempt from the provisions of Section 3-75.

4 (27) Beginning January 1, 2010, materials, parts, 
5equipment, components, and furnishings incorporated into or 
6upon an aircraft as part of the modification, refurbishment, 
7completion, replacement, repair, or maintenance of the 
8aircraft. This exemption includes consumable supplies used in 
9the modification, refurbishment, completion, replacement, 
10repair, and maintenance of aircraft, but excludes any 
11materials, parts, equipment, components, and consumable 
12supplies used in the modification, replacement, repair, and 
13maintenance of aircraft engines or power plants, whether such 
14engines or power plants are installed or uninstalled upon any 
15such aircraft. "Consumable supplies" include, but are not 
16limited to, adhesive, tape, sandpaper, general purpose 
17lubricants, cleaning solution, latex gloves, and protective 
18films. This exemption applies only to the use of qualifying 
19tangible personal property transferred incident to the 
20modification, refurbishment, completion, replacement, repair, 
21or maintenance of aircraft by persons who (i) hold an Air 
22Agency Certificate and are empowered to operate an approved 
23repair station by the Federal Aviation Administration, (ii) 
24have a Class IV Rating, and (iii) conduct operations in 
25accordance with Part 145 of the Federal Aviation Regulations. 
26The exemption does not include aircraft operated by a 
 
 
10100SB0690ham003- 97 -LRB101 04451 SMS 61572 a


1commercial air carrier providing scheduled passenger air 
2service pursuant to authority issued under Part 121 or Part 129 
3of the Federal Aviation Regulations. The changes made to this 
4paragraph (27) by Public Act 98-534 are declarative of existing 
5law. 
6 (28) Tangible personal property purchased by a 
7public-facilities corporation, as described in Section 
811-65-10 of the Illinois Municipal Code, for purposes of 
9constructing or furnishing a municipal convention hall, but 
10only if the legal title to the municipal convention hall is 
11transferred to the municipality without any further 
12consideration by or on behalf of the municipality at the time 
13of the completion of the municipal convention hall or upon the 
14retirement or redemption of any bonds or other debt instruments 
15issued by the public-facilities corporation in connection with 
16the development of the municipal convention hall. This 
17exemption includes existing public-facilities corporations as 
18provided in Section 11-65-25 of the Illinois Municipal Code. 
19This paragraph is exempt from the provisions of Section 3-75. 
20 (29) Beginning January 1, 2017, menstrual pads, tampons, 
21and menstrual cups. 
22 (30) Tangible personal property transferred to a purchaser 
23who is exempt from the tax imposed by this Act by operation of 
24federal law. This paragraph is exempt from the provisions of 
25Section 3-75. 
26 (31) Qualified tangible personal property used in the 
 
 
10100SB0690ham003- 98 -LRB101 04451 SMS 61572 a


1construction or operation of a data center that has been 
2granted a certificate of exemption by the Department of 
3Commerce and Economic Opportunity, whether that tangible 
4personal property is purchased by the owner, operator, or 
5tenant of the data center or by a contractor or subcontractor 
6of the owner, operator, or tenant. Data centers that would have 
7qualified for a certificate of exemption prior to January 1, 
82020 had this amendatory Act of the 101st General Assembly been 
9in effect, may apply for and obtain an exemption for subsequent 
10purchases of computer equipment or enabling software purchased 
11or leased to upgrade, supplement, or replace computer equipment 
12or enabling software purchased or leased in the original 
13investment that would have qualified. 
14 The Department of Commerce and Economic Opportunity shall 
15grant a certificate of exemption under this item (31) to 
16qualified data centers as defined by Section 605-1025 of the 
17Department of Commerce and Economic Opportunity Law of the

18Civil Administrative Code of Illinois. 
19 For the purposes of this item (31): 
20  "Data center" means a building or a series of buildings 
21 rehabilitated or constructed to house working servers in 
22 one physical location or multiple sites within the State of 
23 Illinois. 
24  "Qualified tangible personal property" means: 
25 electrical systems and equipment; climate control and 
26 chilling equipment and systems; mechanical systems and 
 
 
10100SB0690ham003- 99 -LRB101 04451 SMS 61572 a


1 equipment; monitoring and secure systems; emergency 
2 generators; hardware; computers; servers; data storage 
3 devices; network connectivity equipment; racks; cabinets; 
4 telecommunications cabling infrastructure; raised floor 
5 systems; peripheral components or systems; software; 
6 mechanical, electrical, or plumbing systems; battery 
7 systems; cooling systems and towers; temperature control 
8 systems; other cabling; and other data center 
9 infrastructure equipment and systems necessary to operate 
10 qualified tangible personal property, including fixtures; 
11 and component parts of any of the foregoing, including 
12 installation, maintenance, repair, refurbishment, and 
13 replacement of qualified tangible personal property to 
14 generate, transform, transmit, distribute, or manage 
15 electricity necessary to operate qualified tangible 
16 personal property; and all other tangible personal 
17 property that is essential to the operations of a computer 
18 data center. The term "qualified tangible personal 
19 property" also includes building materials physically 
20 incorporated in to the qualifying data center. To document 
21 the exemption allowed under this Section, the retailer must 
22 obtain from the purchaser a copy of the certificate of 
23 eligibility issued by the Department of Commerce and 
24 Economic Opportunity. 
25 This item (31) is exempt from the provisions of Section 
263-75. 
 
 
10100SB0690ham003- 100 -LRB101 04451 SMS 61572 a


1(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; 
2100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff. 
31-4-19; revised 1-8-19.)


4 Section 15-40. The Service Occupation Tax Act is amended by 
5changing Section 3-5 as follows:



6 (35 ILCS 115/3-5)


7 Sec. 3-5. Exemptions. The following tangible personal 
8property is
exempt from the tax imposed by this Act:

9 (1) Personal property sold by a corporation, society, 
10association,
foundation, institution, or organization, other 
11than a limited liability
company, that is organized and 
12operated as a not-for-profit service enterprise
for the benefit 
13of persons 65 years of age or older if the personal property

14was not purchased by the enterprise for the purpose of resale 
15by the
enterprise.

16 (2) Personal property purchased by a not-for-profit 
17Illinois county fair
association for use in conducting, 
18operating, or promoting the county fair.

19 (3) Personal property purchased by any not-for-profit
arts 
20or cultural organization that establishes, by proof required by 
21the
Department by
rule, that it has received an exemption under 
22Section 501(c)(3) of the
Internal Revenue Code and that is 
23organized and operated primarily for the
presentation
or 
24support of arts or cultural programming, activities, or 
 
 
10100SB0690ham003- 101 -LRB101 04451 SMS 61572 a


1services. These
organizations include, but are not limited to, 
2music and dramatic arts
organizations such as symphony 
3orchestras and theatrical groups, arts and
cultural service 
4organizations, local arts councils, visual arts organizations,

5and media arts organizations.
On and after July 1, 2001 (the 
6effective date of Public Act 92-35) this amendatory Act of the 
792nd General
Assembly, however, an entity otherwise eligible 
8for this exemption shall not
make tax-free purchases unless it 
9has an active identification number issued by
the Department.

10 (4) Legal tender, currency, medallions, or gold or silver 
11coinage
issued by the State of Illinois, the government of the 
12United States of
America, or the government of any foreign 
13country, and bullion.

14 (5) Until July 1, 2003 and beginning again on September 1, 
152004 through August 30, 2014, graphic arts machinery and 
16equipment, including
repair and
replacement parts, both new and 
17used, and including that manufactured on
special order or 
18purchased for lease, certified by the purchaser to be used

19primarily for graphic arts production.
Equipment includes 
20chemicals or chemicals acting as catalysts but only if
the

21chemicals or chemicals acting as catalysts effect a direct and 
22immediate change
upon a graphic arts product. Beginning on July 
231, 2017, graphic arts machinery and equipment is included in 
24the manufacturing and assembling machinery and equipment 
25exemption under Section 2 of this Act.

26 (6) Personal property sold by a teacher-sponsored student 
 
 
10100SB0690ham003- 102 -LRB101 04451 SMS 61572 a


1organization
affiliated with an elementary or secondary school 
2located in Illinois.

3 (7) Farm machinery and equipment, both new and used, 
4including that
manufactured on special order, certified by the 
5purchaser to be used
primarily for production agriculture or 
6State or federal agricultural
programs, including individual 
7replacement parts for the machinery and
equipment, including 
8machinery and equipment purchased for lease,
and including 
9implements of husbandry defined in Section 1-130 of
the 
10Illinois Vehicle Code, farm machinery and agricultural 
11chemical and
fertilizer spreaders, and nurse wagons required to 
12be registered
under Section 3-809 of the Illinois Vehicle Code,

13but
excluding other motor vehicles required to be registered 
14under the Illinois
Vehicle
Code.
Horticultural polyhouses or 
15hoop houses used for propagating, growing, or
overwintering 
16plants shall be considered farm machinery and equipment under

17this item (7).
Agricultural chemical tender tanks and dry boxes 
18shall include units sold
separately from a motor vehicle 
19required to be licensed and units sold mounted
on a motor 
20vehicle required to be licensed if the selling price of the 
21tender
is separately stated.

22 Farm machinery and equipment shall include precision 
23farming equipment
that is
installed or purchased to be 
24installed on farm machinery and equipment
including, but not 
25limited to, tractors, harvesters, sprayers, planters,
seeders, 
26or spreaders.
Precision farming equipment includes, but is not 
 
 
10100SB0690ham003- 103 -LRB101 04451 SMS 61572 a


1limited to,
soil testing sensors, computers, monitors, 
2software, global positioning
and mapping systems, and other 
3such equipment.

4 Farm machinery and equipment also includes computers, 
5sensors, software, and
related equipment used primarily in the

6computer-assisted operation of production agriculture 
7facilities, equipment,
and activities such as, but
not limited 
8to,
the collection, monitoring, and correlation of
animal and 
9crop data for the purpose of
formulating animal diets and 
10agricultural chemicals. This item (7) is exempt
from the 
11provisions of
Section 3-55.

12 (8) Until June 30, 2013, fuel and petroleum products sold 
13to or used by an air common
carrier, certified by the carrier 
14to be used for consumption, shipment,
or storage in the conduct 
15of its business as an air common carrier, for
a flight destined 
16for or returning from a location or locations
outside the 
17United States without regard to previous or subsequent domestic

18stopovers.

19 Beginning July 1, 2013, fuel and petroleum products sold to 
20or used by an air carrier, certified by the carrier to be used 
21for consumption, shipment, or storage in the conduct of its 
22business as an air common carrier, for a flight that (i) is 
23engaged in foreign trade or is engaged in trade between the 
24United States and any of its possessions and (ii) transports at 
25least one individual or package for hire from the city of 
26origination to the city of final destination on the same 
 
 
10100SB0690ham003- 104 -LRB101 04451 SMS 61572 a


1aircraft, without regard to a change in the flight number of 
2that aircraft. 
3 (9) Proceeds of mandatory service charges separately

4stated on customers' bills for the purchase and consumption of 
5food and
beverages, to the extent that the proceeds of the 
6service charge are in fact
turned over as tips or as a 
7substitute for tips to the employees who
participate directly 
8in preparing, serving, hosting or cleaning up the
food or 
9beverage function with respect to which the service charge is 
10imposed.

11 (10) Until July 1, 2003, oil field exploration, drilling, 
12and production
equipment,
including (i) rigs and parts of rigs, 
13rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and 
14tubular goods, including casing and
drill strings, (iii) pumps 
15and pump-jack units, (iv) storage tanks and flow
lines, (v) any 
16individual replacement part for oil field exploration,

17drilling, and production equipment, and (vi) machinery and 
18equipment purchased
for lease; but
excluding motor vehicles 
19required to be registered under the Illinois
Vehicle Code.

20 (11) Photoprocessing machinery and equipment, including 
21repair and
replacement parts, both new and used, including that 
22manufactured on
special order, certified by the purchaser to be 
23used primarily for
photoprocessing, and including 
24photoprocessing machinery and equipment
purchased for lease.

25 (12) Until July 1, 2023, coal and aggregate exploration, 
26mining, off-highway hauling,
processing,
maintenance, and 
 
 
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1reclamation equipment, including
replacement parts and 
2equipment, and including
equipment
purchased for lease, but 
3excluding motor vehicles required to be registered
under the 
4Illinois Vehicle Code. The changes made to this Section by 
5Public Act 97-767 apply on and after July 1, 2003, but no claim 
6for credit or refund is allowed on or after August 16, 2013 
7(the effective date of Public Act 98-456)
for such taxes paid 
8during the period beginning July 1, 2003 and ending on August 
916, 2013 (the effective date of Public Act 98-456).

10 (13) Beginning January 1, 1992 and through June 30, 2016, 
11food for human consumption that is to be consumed off the 
12premises
where it is sold (other than alcoholic beverages, soft 
13drinks and food that
has been prepared for immediate 
14consumption) and prescription and
non-prescription medicines, 
15drugs, medical appliances, and insulin, urine
testing 
16materials, syringes, and needles used by diabetics, for human 
17use,
when purchased for use by a person receiving medical 
18assistance under
Article V of the Illinois Public Aid Code who 
19resides in a licensed
long-term care facility, as defined in 
20the Nursing Home Care Act, or in a licensed facility as defined 
21in the ID/DD Community Care Act, the MC/DD Act, or the 
22Specialized Mental Health Rehabilitation Act of 2013.

23 (14) Semen used for artificial insemination of livestock 
24for direct
agricultural production.

25 (15) Horses, or interests in horses, registered with and 
26meeting the
requirements of any of the
Arabian Horse Club 
 
 
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1Registry of America, Appaloosa Horse Club, American Quarter

2Horse Association, United States
Trotting Association, or 
3Jockey Club, as appropriate, used for
purposes of breeding or 
4racing for prizes. This item (15) is exempt from the provisions 
5of Section 3-55, and the exemption provided for under this item 
6(15) applies for all periods beginning May 30, 1995, but no 
7claim for credit or refund is allowed on or after January 1, 
82008 (the effective date of Public Act 95-88)
for such taxes 
9paid during the period beginning May 30, 2000 and ending on 
10January 1, 2008 (the effective date of Public Act 95-88).

11 (16) Computers and communications equipment utilized for 
12any
hospital
purpose
and equipment used in the diagnosis,

13analysis, or treatment of hospital patients sold to a lessor 
14who leases the
equipment, under a lease of one year or longer 
15executed or in effect at the
time of the purchase, to a

16hospital
that has been issued an active tax exemption 
17identification number by the
Department under Section 1g of the 
18Retailers' Occupation Tax Act.

19 (17) Personal property sold to a lessor who leases the

20property, under a
lease of one year or longer executed or in 
21effect at the time of the purchase,
to a governmental body
that 
22has been issued an active tax exemption identification number 
23by the
Department under Section 1g of the Retailers' Occupation 
24Tax Act.

25 (18) Beginning with taxable years ending on or after 
26December
31, 1995
and
ending with taxable years ending on or 
 
 
10100SB0690ham003- 107 -LRB101 04451 SMS 61572 a


1before December 31, 2004,
personal property that is
donated for 
2disaster relief to be used in a State or federally declared

3disaster area in Illinois or bordering Illinois by a 
4manufacturer or retailer
that is registered in this State to a 
5corporation, society, association,
foundation, or institution 
6that has been issued a sales tax exemption
identification 
7number by the Department that assists victims of the disaster

8who reside within the declared disaster area.

9 (19) Beginning with taxable years ending on or after 
10December
31, 1995 and
ending with taxable years ending on or 
11before December 31, 2004, personal
property that is used in the 
12performance of infrastructure repairs in this
State, including 
13but not limited to municipal roads and streets, access roads,

14bridges, sidewalks, waste disposal systems, water and sewer 
15line extensions,
water distribution and purification 
16facilities, storm water drainage and
retention facilities, and 
17sewage treatment facilities, resulting from a State
or 
18federally declared disaster in Illinois or bordering Illinois 
19when such
repairs are initiated on facilities located in the 
20declared disaster area
within 6 months after the disaster.

21 (20) Beginning July 1, 1999, game or game birds sold at a 
22"game breeding
and
hunting preserve area" as that term is used

23in the
Wildlife Code. This paragraph is exempt from the 
24provisions
of
Section 3-55.

25 (21) A motor vehicle, as that term is defined in Section 
261-146
of the
Illinois Vehicle Code, that is donated to a 
 
 
10100SB0690ham003- 108 -LRB101 04451 SMS 61572 a


1corporation, limited liability
company, society, association, 
2foundation, or institution that is determined by
the Department 
3to be organized and operated exclusively for educational

4purposes. For purposes of this exemption, "a corporation, 
5limited liability
company, society, association, foundation, 
6or institution organized and
operated
exclusively for 
7educational purposes" means all tax-supported public schools,

8private schools that offer systematic instruction in useful 
9branches of
learning by methods common to public schools and 
10that compare favorably in
their scope and intensity with the 
11course of study presented in tax-supported
schools, and 
12vocational or technical schools or institutes organized and

13operated exclusively to provide a course of study of not less 
14than 6 weeks
duration and designed to prepare individuals to 
15follow a trade or to pursue a
manual, technical, mechanical, 
16industrial, business, or commercial
occupation.

17 (22) Beginning January 1, 2000, personal property, 
18including
food,
purchased through fundraising
events for the 
19benefit of
a public or private elementary or
secondary school, 
20a group of those schools, or one or more school
districts if 
21the events are
sponsored by an entity recognized by the school 
22district that consists
primarily of volunteers and includes

23parents and teachers of the school children. This paragraph 
24does not apply
to fundraising
events (i) for the benefit of 
25private home instruction or (ii)
for which the fundraising 
26entity purchases the personal property sold at
the events from 
 
 
10100SB0690ham003- 109 -LRB101 04451 SMS 61572 a


1another individual or entity that sold the property for the

2purpose of resale by the fundraising entity and that
profits 
3from the sale to the
fundraising entity. This paragraph is 
4exempt
from the provisions
of Section 3-55.

5 (23) Beginning January 1, 2000
and through December 31, 
62001, new or used automatic vending
machines that prepare and 
7serve hot food and beverages, including coffee, soup,
and
other 
8items, and replacement parts for these machines.
Beginning 
9January 1,
2002 and through June 30, 2003, machines and parts 
10for
machines used in commercial, coin-operated amusement
and 
11vending business if a use or occupation tax is paid on the 
12gross receipts
derived from
the use of the commercial, 
13coin-operated amusement and vending machines.
This paragraph 
14is exempt from the provisions of Section 3-55.

15 (24) Beginning
on August 2, 2001 (the effective date of 
16Public Act 92-227) this amendatory Act of the 92nd General 
17Assembly,
computers and communications equipment
utilized for 
18any hospital purpose and equipment used in the diagnosis,

19analysis, or treatment of hospital patients sold to a lessor 
20who leases the
equipment, under a lease of one year or longer 
21executed or in effect at the
time of the purchase, to a 
22hospital that has been issued an active tax
exemption 
23identification number by the Department under Section 1g of the

24Retailers' Occupation Tax Act. This paragraph is exempt from 
25the provisions of
Section 3-55.

26 (25) Beginning
on August 2, 2001 (the effective date of 
 
 
10100SB0690ham003- 110 -LRB101 04451 SMS 61572 a


1Public Act 92-227) this amendatory Act of the 92nd General 
2Assembly,
personal property sold to a lessor who
leases the 
3property, under a lease of one year or longer executed or in 
4effect
at the time of the purchase, to a governmental body that 
5has been issued an
active tax exemption identification number 
6by the Department under Section 1g
of the Retailers' Occupation 
7Tax Act. This paragraph is exempt from the
provisions of 
8Section 3-55.

9 (26) Beginning on January 1, 2002 and through June 30, 
102016, tangible personal property
purchased
from an Illinois 
11retailer by a taxpayer engaged in centralized purchasing

12activities in Illinois who will, upon receipt of the property 
13in Illinois,
temporarily store the property in Illinois (i) for 
14the purpose of subsequently
transporting it outside this State 
15for use or consumption thereafter solely
outside this State or 
16(ii) for the purpose of being processed, fabricated, or

17manufactured into, attached to, or incorporated into other 
18tangible personal
property to be transported outside this State 
19and thereafter used or consumed
solely outside this State. The 
20Director of Revenue shall, pursuant to rules
adopted in 
21accordance with the Illinois Administrative Procedure Act, 
22issue a
permit to any taxpayer in good standing with the 
23Department who is eligible for
the exemption under this 
24paragraph (26). The permit issued under
this paragraph (26) 
25shall authorize the holder, to the extent and
in the manner 
26specified in the rules adopted under this Act, to purchase

 
 
10100SB0690ham003- 111 -LRB101 04451 SMS 61572 a


1tangible personal property from a retailer exempt from the 
2taxes imposed by
this Act. Taxpayers shall maintain all 
3necessary books and records to
substantiate the use and 
4consumption of all such tangible personal property
outside of 
5the State of Illinois.

6 (27) Beginning January 1, 2008, tangible personal property 
7used in the construction or maintenance of a community water 
8supply, as defined under Section 3.145 of the Environmental 
9Protection Act, that is operated by a not-for-profit 
10corporation that holds a valid water supply permit issued under 
11Title IV of the Environmental Protection Act. This paragraph is 
12exempt from the provisions of Section 3-55.

13 (28) Tangible personal property sold to a 
14public-facilities corporation, as described in Section 
1511-65-10 of the Illinois Municipal Code, for purposes of 
16constructing or furnishing a municipal convention hall, but 
17only if the legal title to the municipal convention hall is 
18transferred to the municipality without any further 
19consideration by or on behalf of the municipality at the time 
20of the completion of the municipal convention hall or upon the 
21retirement or redemption of any bonds or other debt instruments 
22issued by the public-facilities corporation in connection with 
23the development of the municipal convention hall. This 
24exemption includes existing public-facilities corporations as 
25provided in Section 11-65-25 of the Illinois Municipal Code. 
26This paragraph is exempt from the provisions of Section 3-55. 
 
 
10100SB0690ham003- 112 -LRB101 04451 SMS 61572 a


1 (29) Beginning January 1, 2010, materials, parts, 
2equipment, components, and furnishings incorporated into or 
3upon an aircraft as part of the modification, refurbishment, 
4completion, replacement, repair, or maintenance of the 
5aircraft. This exemption includes consumable supplies used in 
6the modification, refurbishment, completion, replacement, 
7repair, and maintenance of aircraft, but excludes any 
8materials, parts, equipment, components, and consumable 
9supplies used in the modification, replacement, repair, and 
10maintenance of aircraft engines or power plants, whether such 
11engines or power plants are installed or uninstalled upon any 
12such aircraft. "Consumable supplies" include, but are not 
13limited to, adhesive, tape, sandpaper, general purpose 
14lubricants, cleaning solution, latex gloves, and protective 
15films. This exemption applies only to the transfer of 
16qualifying tangible personal property incident to the 
17modification, refurbishment, completion, replacement, repair, 
18or maintenance of an aircraft by persons who (i) hold an Air 
19Agency Certificate and are empowered to operate an approved 
20repair station by the Federal Aviation Administration, (ii) 
21have a Class IV Rating, and (iii) conduct operations in 
22accordance with Part 145 of the Federal Aviation Regulations. 
23The exemption does not include aircraft operated by a 
24commercial air carrier providing scheduled passenger air 
25service pursuant to authority issued under Part 121 or Part 129 
26of the Federal Aviation Regulations. The changes made to this 
 
 
10100SB0690ham003- 113 -LRB101 04451 SMS 61572 a


1paragraph (29) by Public Act 98-534 are declarative of existing 
2law. 
3 (30) Beginning January 1, 2017, menstrual pads, tampons, 
4and menstrual cups. 
5 (31) Tangible personal property transferred to a purchaser 
6who is exempt from tax by operation of federal law. This 
7paragraph is exempt from the provisions of Section 3-55. 
8 (32) Qualified tangible personal property used in the 
9construction or operation of a data center that has been 
10granted a certificate of exemption by the Department of 
11Commerce and Economic Opportunity, whether that tangible 
12personal property is purchased by the owner, operator, or 
13tenant of the data center or by a contractor or subcontractor 
14of the owner, operator, or tenant. Data centers that would have 
15qualified for a certificate of exemption prior to January 1, 
162020 had this amendatory Act of the 101st General Assembly been 
17in effect, may apply for and obtain an exemption for subsequent 
18purchases of computer equipment or enabling software purchased 
19or leased to upgrade, supplement, or replace computer equipment 
20or enabling software purchased or leased in the original 
21investment that would have qualified. 
22 The Department of Commerce and Economic Opportunity shall 
23grant a certificate of exemption under this item (32) to 
24qualified data centers as defined by Section 605-1025 of the 
25Department of Commerce and Economic Opportunity Law of the

26Civil Administrative Code of Illinois. 
 
 
10100SB0690ham003- 114 -LRB101 04451 SMS 61572 a


1 For the purposes of this item (32): 
2  "Data center" means a building or a series of buildings 
3 rehabilitated or constructed to house working servers in 
4 one physical location or multiple sites within the State of 
5 Illinois. 
6  "Qualified tangible personal property" means: 
7 electrical systems and equipment; climate control and 
8 chilling equipment and systems; mechanical systems and 
9 equipment; monitoring and secure systems; emergency 
10 generators; hardware; computers; servers; data storage 
11 devices; network connectivity equipment; racks; cabinets; 
12 telecommunications cabling infrastructure; raised floor 
13 systems; peripheral components or systems; software; 
14 mechanical, electrical, or plumbing systems; battery 
15 systems; cooling systems and towers; temperature control 
16 systems; other cabling; and other data center 
17 infrastructure equipment and systems necessary to operate 
18 qualified tangible personal property, including fixtures; 
19 and component parts of any of the foregoing, including 
20 installation, maintenance, repair, refurbishment, and 
21 replacement of qualified tangible personal property to 
22 generate, transform, transmit, distribute, or manage 
23 electricity necessary to operate qualified tangible 
24 personal property; and all other tangible personal 
25 property that is essential to the operations of a computer 
26 data center. The term "qualified tangible personal 
 
 
10100SB0690ham003- 115 -LRB101 04451 SMS 61572 a


1 property" also includes building materials physically 
2 incorporated in to the qualifying data center. To document 
3 the exemption allowed under this Section, the retailer must 
4 obtain from the purchaser a copy of the certificate of 
5 eligibility issued by the Department of Commerce and 
6 Economic Opportunity. 
7 This item (32) is exempt from the provisions of Section 
83-55. 
9(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; 
10100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff. 
111-4-19; revised 1-8-19.)


12 Section 15-45. The Retailers' Occupation Tax Act is amended 
13by changing Sections 1, 2, 2-5, 2-12, and 2a as follows:




14 (35 ILCS 120/1) (from Ch. 120, par. 440)


15 Sec. 1. Definitions. "Sale at retail" means any transfer of 
16the
ownership of or title to
tangible personal property to a 
17purchaser, for the purpose of use or
consumption, and not for 
18the purpose of resale in any form as tangible
personal property 
19to the extent not first subjected to a use for which it
was 
20purchased, for a valuable consideration: Provided that the 
21property
purchased is deemed to be purchased for the purpose of 
22resale, despite
first being used, to the extent to which it is 
23resold as an ingredient of
an intentionally produced product or 
24byproduct of manufacturing. For this
purpose, slag produced as 
 
 
10100SB0690ham003- 116 -LRB101 04451 SMS 61572 a


1an incident to manufacturing pig iron or steel
and sold is 
2considered to be an intentionally produced byproduct of

3manufacturing. Transactions whereby the possession of the 
4property is
transferred but the seller retains the title as 
5security for payment of the
selling price shall be deemed to be 
6sales.

7 "Sale at retail" shall be construed to include any transfer 
8of the
ownership of or title to tangible personal property to a 
9purchaser, for use
or consumption by any other person to whom 
10such purchaser may transfer the
tangible personal property 
11without a valuable consideration, and to include
any transfer, 
12whether made for or without a valuable consideration, for

13resale in any form as tangible personal property unless made in 
14compliance
with Section 2c of this Act.

15 Sales of tangible personal property, which property, to the 
16extent not
first subjected to a use for which it was purchased, 
17as an ingredient or
constituent, goes into and forms a part of 
18tangible personal property
subsequently the subject of a "Sale 
19at retail", are not sales at retail as
defined in this Act: 
20Provided that the property purchased is deemed to be
purchased 
21for the purpose of resale, despite first being used, to the

22extent to which it is resold as an ingredient of an 
23intentionally produced
product or byproduct of manufacturing.

24 "Sale at retail" shall be construed to include any Illinois 
25florist's
sales transaction in which the purchase order is 
26received in Illinois by a
florist and the sale is for use or 
 
 
10100SB0690ham003- 117 -LRB101 04451 SMS 61572 a


1consumption, but the Illinois florist
has a florist in another 
2state deliver the property to the purchaser or the
purchaser's 
3donee in such other state.

4 Nonreusable tangible personal property that is used by 
5persons engaged in
the business of operating a restaurant, 
6cafeteria, or drive-in is a sale for
resale when it is 
7transferred to customers in the ordinary course of business
as 
8part of the sale of food or beverages and is used to deliver, 
9package, or
consume food or beverages, regardless of where 
10consumption of the food or
beverages occurs. Examples of those 
11items include, but are not limited to
nonreusable, paper and 
12plastic cups, plates, baskets, boxes, sleeves, buckets
or other 
13containers, utensils, straws, placemats, napkins, doggie bags, 
14and
wrapping or packaging
materials that are transferred to 
15customers as part of the sale of food or
beverages in the 
16ordinary course of business.

17 The purchase, employment and transfer of such tangible 
18personal property
as newsprint and ink for the primary purpose 
19of conveying news (with or
without other information) is not a 
20purchase, use or sale of tangible
personal property.

21 A person whose activities are organized and conducted 
22primarily as a
not-for-profit service enterprise, and who 
23engages in selling tangible
personal property at retail 
24(whether to the public or merely to members and
their guests) 
25is engaged in the business of selling tangible personal

26property at retail with respect to such transactions, excepting 
 
 
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1only a
person organized and operated exclusively for 
2charitable, religious or
educational purposes either (1), to 
3the extent of sales by such person to
its members, students, 
4patients or inmates of tangible personal property to
be used 
5primarily for the purposes of such person, or (2), to the 
6extent of
sales by such person of tangible personal property 
7which is not sold or
offered for sale by persons organized for 
8profit. The selling of school
books and school supplies by 
9schools at retail to students is not
"primarily for the 
10purposes of" the school which does such selling. The
provisions 
11of this paragraph shall not apply to nor subject to taxation

12occasional dinners, socials or similar activities of a person 
13organized and
operated exclusively for charitable, religious 
14or educational purposes,
whether or not such activities are 
15open to the public.

16 A person who is the recipient of a grant or contract under 
17Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and 
18serves meals to
participants in the federal Nutrition Program 
19for the Elderly in return for
contributions established in 
20amount by the individual participant pursuant
to a schedule of 
21suggested fees as provided for in the federal Act is not

22engaged in the business of selling tangible personal property 
23at retail
with respect to such transactions.

24 "Purchaser" means anyone who, through a sale at retail, 
25acquires the
ownership of or title to tangible personal 
26property for a valuable
consideration.

 
 
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1 "Reseller of motor fuel" means any person engaged in the 
2business of selling
or delivering or transferring title of 
3motor fuel to another person
other than for use or consumption.

4No person shall act as a reseller of motor fuel within this 
5State without
first being registered as a reseller pursuant to 
6Section 2c or a retailer
pursuant to Section 2a.

7 "Selling price" or the "amount of sale" means the 
8consideration for a
sale valued in money whether received in 
9money or otherwise, including
cash, credits, property, other 
10than as hereinafter provided, and services,
but, prior to 
11January 1, 2020, not including the value of or credit given for 
12traded-in tangible
personal property where the item that is 
13traded-in is of like kind and
character as that which is being 
14sold; beginning January 1, 2020, "selling price" includes the 
15portion of the value of or credit given for traded-in motor 
16vehicles of the First Division as defined in Section 1-146 of 
17the Illinois Vehicle Code of like kind and character as that 
18which is being sold that exceeds $10,000. "Selling price" , and 
19shall be determined without any
deduction on account of the 
20cost of the property sold, the cost of
materials used, labor or 
21service cost or any other expense whatsoever, but
does not 
22include charges that are added to prices by sellers on account 
23of
the seller's tax liability under this Act, or on account of 
24the seller's
duty to collect, from the purchaser, the tax that 
25is imposed by the Use Tax
Act, or, except as otherwise provided 
26with respect to any cigarette tax imposed by a home rule unit, 
 
 
10100SB0690ham003- 120 -LRB101 04451 SMS 61572 a


1on account of the seller's tax liability under any local 
2occupation tax administered by the Department, or, except as 
3otherwise provided with respect to any cigarette tax imposed by 
4a home rule unit on account of the seller's duty to collect, 
5from the purchasers, the tax that is imposed under any local 
6use tax administered by the Department.
Effective December 1, 
71985, "selling price" shall include charges that
are added to 
8prices by sellers on account of the seller's
tax liability 
9under the Cigarette Tax Act, on account of the sellers'
duty to 
10collect, from the purchaser, the tax imposed under the 
11Cigarette
Use Tax Act, and on account of the seller's duty to 
12collect, from the
purchaser, any cigarette tax imposed by a 
13home rule unit.

14 Notwithstanding any law to the contrary, for any motor 
15vehicle, as defined in Section 1-146 of the Vehicle Code, that 
16is sold on or after January 1, 2015 for the purpose of leasing 
17the vehicle for a defined period that is longer than one year 
18and (1) is a motor vehicle of the second division that: (A) is 
19a self-contained motor vehicle designed or permanently 
20converted to provide living quarters for recreational, 
21camping, or travel use, with direct walk through access to the 
22living quarters from the driver's seat; (B) is of the van 
23configuration designed for the transportation of not less than 
247 nor more than 16 passengers; or (C) has a gross vehicle 
25weight rating of 8,000 pounds or less or (2) is a motor vehicle 
26of the first division, "selling price" or "amount of sale" 
 
 
10100SB0690ham003- 121 -LRB101 04451 SMS 61572 a


1means the consideration received by the lessor pursuant to the 
2lease contract, including amounts due at lease signing and all 
3monthly or other regular payments charged over the term of the 
4lease. Also included in the selling price is any amount 
5received by the lessor from the lessee for the leased vehicle 
6that is not calculated at the time the lease is executed, 
7including, but not limited to, excess mileage charges and 
8charges for excess wear and tear. For sales that occur in 
9Illinois, with respect to any amount received by the lessor 
10from the lessee for the leased vehicle that is not calculated 
11at the time the lease is executed, the lessor who purchased the 
12motor vehicle does not incur the tax imposed by the Use Tax Act 
13on those amounts, and the retailer who makes the retail sale of 
14the motor vehicle to the lessor is not required to collect the 
15tax imposed by the Use Tax Act or to pay the tax imposed by this 
16Act on those amounts. However, the lessor who purchased the 
17motor vehicle assumes the liability for reporting and paying 
18the tax on those amounts directly to the Department in the same 
19form (Illinois Retailers' Occupation Tax, and local retailers' 
20occupation taxes, if applicable) in which the retailer would 
21have reported and paid such tax if the retailer had accounted 
22for the tax to the Department. For amounts received by the 
23lessor from the lessee that are not calculated at the time the 
24lease is executed, the lessor must file the return and pay the 
25tax to the Department by the due date otherwise required by 
26this Act for returns other than transaction returns. If the 
 
 
10100SB0690ham003- 122 -LRB101 04451 SMS 61572 a


1retailer is entitled under this Act to a discount for 
2collecting and remitting the tax imposed under this Act to the 
3Department with respect to the sale of the motor vehicle to the 
4lessor, then the right to the discount provided in this Act 
5shall be transferred to the lessor with respect to the tax paid 
6by the lessor for any amount received by the lessor from the 
7lessee for the leased vehicle that is not calculated at the 
8time the lease is executed; provided that the discount is only 
9allowed if the return is timely filed and for amounts timely 
10paid. The "selling price" of a motor vehicle that is sold on or 
11after January 1, 2015 for the purpose of leasing for a defined 
12period of longer than one year shall not be reduced by the 
13value of or credit given for traded-in tangible personal 
14property owned by the lessor, nor shall it be reduced by the 
15value of or credit given for traded-in tangible personal 
16property owned by the lessee, regardless of whether the 
17trade-in value thereof is assigned by the lessee to the lessor. 
18In the case of a motor vehicle that is sold for the purpose of 
19leasing for a defined period of longer than one year, the sale 
20occurs at the time of the delivery of the vehicle, regardless 
21of the due date of any lease payments. A lessor who incurs a 
22Retailers' Occupation Tax liability on the sale of a motor 
23vehicle coming off lease may not take a credit against that 
24liability for the Use Tax the lessor paid upon the purchase of 
25the motor vehicle (or for any tax the lessor paid with respect 
26to any amount received by the lessor from the lessee for the 
 
 
10100SB0690ham003- 123 -LRB101 04451 SMS 61572 a


1leased vehicle that was not calculated at the time the lease 
2was executed) if the selling price of the motor vehicle at the 
3time of purchase was calculated using the definition of 
4"selling price" as defined in this paragraph.
Notwithstanding 
5any other provision of this Act to the contrary, lessors shall 
6file all returns and make all payments required under this 
7paragraph to the Department by electronic means in the manner 
8and form as required by the Department. This paragraph does not 
9apply to leases of motor vehicles for which, at the time the 
10lease is entered into, the term of the lease is not a defined 
11period, including leases with a defined initial period with the 
12option to continue the lease on a month-to-month or other basis 
13beyond the initial defined period. 
14 The phrase "like kind and character" shall be liberally 
15construed
(including but not limited to any form of motor 
16vehicle for any form of
motor vehicle, or any kind of farm or 
17agricultural implement for any other
kind of farm or 
18agricultural implement), while not including a kind of item

19which, if sold at retail by that retailer, would be exempt from 
20retailers'
occupation tax and use tax as an isolated or 
21occasional sale.

22 "Gross receipts" from the sales of tangible personal 
23property at retail
means the total selling price or the amount 
24of such sales, as hereinbefore
defined. In the case of charge 
25and time sales, the amount thereof shall be
included only as 
26and when payments are received by the seller.
Receipts or other 
 
 
10100SB0690ham003- 124 -LRB101 04451 SMS 61572 a


1consideration derived by a seller from
the sale, transfer or 
2assignment of accounts receivable to a wholly owned
subsidiary 
3will not be deemed payments prior to the time the purchaser

4makes payment on such accounts.

5 "Department" means the Department of Revenue.

6 "Person" means any natural individual, firm, partnership, 
7association,
joint stock company, joint adventure, public or 
8private corporation, limited
liability company, or a receiver, 
9executor, trustee, guardian or other
representative appointed 
10by order of any court.

11 The isolated or occasional sale of tangible personal 
12property at retail
by a person who does not hold himself out as 
13being engaged (or who does not
habitually engage) in selling 
14such tangible personal property at retail, or
a sale through a 
15bulk vending machine, does not constitute engaging in a

16business of selling such tangible personal property at retail 
17within the
meaning of this Act; provided that any person who is 
18engaged in a business
which is not subject to the tax imposed 
19by this Act because of involving
the sale of or a contract to 
20sell real estate or a construction contract to
improve real 
21estate or a construction contract to engineer, install, and

22maintain an integrated system of products, but who, in the 
23course of
conducting such business,
transfers tangible 
24personal property to users or consumers in the finished
form in 
25which it was purchased, and which does not become real estate 
26or was
not engineered and installed, under any provision of a 
 
 
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1construction contract or
real estate sale or real estate sales 
2agreement entered into with some other
person arising out of or 
3because of such nontaxable business, is engaged in the
business 
4of selling tangible personal property at retail to the extent 
5of the
value of the tangible personal property so transferred. 
6If, in such a
transaction, a separate charge is made for the 
7tangible personal property so
transferred, the value of such 
8property, for the purpose of this Act, shall be
the amount so 
9separately charged, but not less than the cost of such property

10to the transferor; if no separate charge is made, the value of 
11such property,
for the purposes of this Act, is the cost to the 
12transferor of such tangible
personal property. Construction 
13contracts for the improvement of real estate
consisting of 
14engineering, installation, and maintenance of voice, data, 
15video,
security, and all telecommunication systems do not 
16constitute engaging in a
business of selling tangible personal 
17property at retail within the meaning of
this Act if they are 
18sold at one specified contract price.

19 A person who holds himself or herself out as being engaged 
20(or who habitually
engages) in selling tangible personal 
21property at retail is a person
engaged in the business of 
22selling tangible personal property at retail
hereunder with 
23respect to such sales (and not primarily in a service

24occupation) notwithstanding the fact that such person designs 
25and produces
such tangible personal property on special order 
26for the purchaser and in
such a way as to render the property 
 
 
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1of value only to such purchaser, if
such tangible personal 
2property so produced on special order serves
substantially the 
3same function as stock or standard items of tangible
personal 
4property that are sold at retail.

5 Persons who engage in the business of transferring tangible 
6personal
property upon the redemption of trading stamps are 
7engaged in the business
of selling such property at retail and 
8shall be liable for and shall pay
the tax imposed by this Act 
9on the basis of the retail value of the
property transferred 
10upon redemption of such stamps.

11 "Bulk vending machine" means a vending machine,
containing 
12unsorted confections, nuts, toys, or other items designed

13primarily to be used or played with by children
which, when a 
14coin or coins of a denomination not larger than $0.50 are

15inserted, are dispensed in equal portions, at random and

16without selection by the customer.

17 "Remote retailer" means a retailer located outside of this 
18State that does not maintain within this State, directly or by 
19a subsidiary, an office, distribution house, sales house, 
20warehouse or other place of business, or any agent or other 
21representative operating within this State under the authority 
22of the retailer or its subsidiary, irrespective of whether such 
23place of business or agent is located here permanently or 
24temporarily or whether such retailer or subsidiary is licensed 
25to do business in this State. 
26(Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14.)





 
 
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1 (35 ILCS 120/2) (from Ch. 120, par. 441)



2 Sec. 2. Tax imposed.  
3 (a) A tax is imposed upon persons engaged in the
business 
4of selling at retail tangible personal property, including

5computer software, and including photographs, negatives, and 
6positives that
are the product of photoprocessing, but not 
7including products of
photoprocessing produced for use in 
8motion pictures for public commercial
exhibition.
Beginning 
9January 1, 2001, prepaid telephone calling arrangements shall 
10be
considered tangible personal property subject to the tax 
11imposed under this Act
regardless of the form in which those 
12arrangements may be embodied,
transmitted, or fixed by any 
13method now known or hereafter developed. Sales of (1) 
14electricity delivered to customers by wire; (2) natural or 
15artificial gas that is delivered to customers through pipes, 
16pipelines, or mains; and (3) water that is delivered to 
17customers through pipes, pipelines, or mains are not subject to 
18tax under this Act. The provisions of this amendatory Act of 
19the 98th General Assembly are declaratory of existing law as to 
20the meaning and scope of this Act. 

21 (b) Beginning on July 1, 2020, a remote retailer is engaged 
22in the occupation of selling at retail in Illinois for purposes 
23of this Act, if: 
24  (1) the cumulative gross receipts from sales of 
25 tangible personal property to purchasers in Illinois are 
 
 
10100SB0690ham003- 128 -LRB101 04451 SMS 61572 a


1 $100,000 or more; or 
2  (2) the retailer enters into 200 or more separate 
3 transactions for the sale of tangible personal property to 
4 purchasers in Illinois. 
5 Remote retailers that meet or exceed the threshold in 
6either paragraph (1) or (2) above shall be liable for all 
7applicable State and locally imposed retailers' occupation 
8taxes on all retail sales to Illinois purchasers. 
9 The remote retailer shall determine on a quarterly basis, 
10ending on the last day of March, June, September, and December, 
11whether he or she meets the criteria of either paragraph (1) or 
12(2) of this subsection for the preceding 12-month period. If 
13the retailer meets the criteria of either paragraph (1) or (2) 
14for a 12-month period, he or she is considered a retailer 
15maintaining a place of business in this State and is required 
16to collect and remit the tax imposed under this Act and all 
17retailers' occupation tax imposed by local taxing 
18jurisdictions in Illinois, provided such local taxes are 
19administered by the Department, and to file all applicable 
20returns for one year. At the end of that one-year period, the 
21retailer shall determine whether the retailer met the criteria 
22of either paragraph (1) or (2) for the preceding 12-month 
23period. If the retailer met the criteria in either paragraph 
24(1) or (2) for the preceding 12-month period, he or she is 
25considered a retailer maintaining a place of business in this 
26State and is required to collect and remit all applicable State 
 
 
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1and local retailers' occupation taxes and file returns for the 
2subsequent year. If, at the end of a one-year period, a 
3retailer that was required to collect and remit the tax imposed 
4under this Act determines that he or she did not meet the 
5criteria in either paragraph (1) or (2) during the preceding 
612-month period, then the retailer shall subsequently 
7determine on a quarterly basis, ending on the last day of 
8March, June, September, and December, whether he or she meets 
9the criteria of either paragraph (1) or (2) for the preceding 
1012-month period. 
11(Source: P.A. 98-583, eff. 1-1-14.)




12 (35 ILCS 120/2-5)


13 Sec. 2-5. Exemptions. Gross receipts from proceeds from the 
14sale of
the following tangible personal property are exempt 
15from the tax imposed
by this Act:

16  (1) Farm chemicals.

17  (2) Farm machinery and equipment, both new and used, 
18 including that
manufactured on special order, certified by 
19 the purchaser to be used
primarily for production 
20 agriculture or State or federal agricultural
programs, 
21 including individual replacement parts for the machinery 
22 and
equipment, including machinery and equipment purchased 
23 for lease,
and including implements of husbandry defined in 
24 Section 1-130 of
the Illinois Vehicle Code, farm machinery 
25 and agricultural chemical and
fertilizer spreaders, and 
 
 
10100SB0690ham003- 130 -LRB101 04451 SMS 61572 a


1 nurse wagons required to be registered
under Section 3-809 
2 of the Illinois Vehicle Code,
but
excluding other motor 
3 vehicles required to be registered under the Illinois

4 Vehicle Code.
Horticultural polyhouses or hoop houses used 
5 for propagating, growing, or
overwintering plants shall be 
6 considered farm machinery and equipment under
this item 
7 (2).
Agricultural chemical tender tanks and dry boxes shall 
8 include units sold
separately from a motor vehicle required 
9 to be licensed and units sold mounted
on a motor vehicle 
10 required to be licensed, if the selling price of the tender

11 is separately stated.

12  Farm machinery and equipment shall include precision 
13 farming equipment
that is
installed or purchased to be 
14 installed on farm machinery and equipment
including, but 
15 not limited to, tractors, harvesters, sprayers, planters,

16 seeders, or spreaders.
Precision farming equipment 
17 includes, but is not limited to,
soil testing sensors, 
18 computers, monitors, software, global positioning
and 
19 mapping systems, and other such equipment.

20  Farm machinery and equipment also includes computers, 
21 sensors, software, and
related equipment used primarily in 
22 the
computer-assisted operation of production agriculture 
23 facilities, equipment,
and activities such as, but
not 
24 limited to,
the collection, monitoring, and correlation of

25 animal and crop data for the purpose of
formulating animal 
26 diets and agricultural chemicals. This item (2) is exempt

 
 
10100SB0690ham003- 131 -LRB101 04451 SMS 61572 a


1 from the provisions of
Section 2-70.

2  (3) Until July 1, 2003, distillation machinery and 
3 equipment, sold as a
unit or kit,
assembled or installed by 
4 the retailer, certified by the user to be used
only for the 
5 production of ethyl alcohol that will be used for 
6 consumption
as motor fuel or as a component of motor fuel 
7 for the personal use of the
user, and not subject to sale 
8 or resale.

9  (4) Until July 1, 2003 and beginning again September 1, 
10 2004 through August 30, 2014, graphic arts machinery and 
11 equipment, including
repair and
replacement parts, both 
12 new and used, and including that manufactured on
special 
13 order or purchased for lease, certified by the purchaser to 
14 be used
primarily for graphic arts production.
Equipment 
15 includes chemicals or
chemicals acting as catalysts but 
16 only if
the chemicals or chemicals acting as catalysts 
17 effect a direct and immediate
change upon a
graphic arts 
18 product. Beginning on July 1, 2017, graphic arts machinery 
19 and equipment is included in the manufacturing and 
20 assembling machinery and equipment exemption under 
21 paragraph (14).

22  (5) A motor vehicle that is used for automobile 
23 renting, as defined in the Automobile Renting Occupation 
24 and Use Tax Act. This paragraph is exempt from
the 
25 provisions of Section 2-70.

26  (6) Personal property sold by a teacher-sponsored 
 
 
10100SB0690ham003- 132 -LRB101 04451 SMS 61572 a


1 student organization
affiliated with an elementary or 
2 secondary school located in Illinois.

3  (7) Until July 1, 2003, proceeds of that portion of the 
4 selling price of
a passenger car the
sale of which is 
5 subject to the Replacement Vehicle Tax.

6  (8) Personal property sold to an Illinois county fair 
7 association for
use in conducting, operating, or promoting 
8 the county fair.

9  (9) Personal property sold to a not-for-profit arts
or 
10 cultural organization that establishes, by proof required 
11 by the Department
by
rule, that it has received an 
12 exemption under Section 501(c)(3) of the
Internal Revenue 
13 Code and that is organized and operated primarily for the

14 presentation
or support of arts or cultural programming, 
15 activities, or services. These
organizations include, but 
16 are not limited to, music and dramatic arts
organizations 
17 such as symphony orchestras and theatrical groups, arts and

18 cultural service organizations, local arts councils, 
19 visual arts organizations,
and media arts organizations.

20 On and after July 1, 2001 (the effective date of Public Act 
21 92-35), however, an entity otherwise eligible for this 
22 exemption shall not
make tax-free purchases unless it has 
23 an active identification number issued by
the Department.

24  (10) Personal property sold by a corporation, society, 
25 association,
foundation, institution, or organization, 
26 other than a limited liability
company, that is organized 
 
 
10100SB0690ham003- 133 -LRB101 04451 SMS 61572 a


1 and operated as a not-for-profit service enterprise
for the 
2 benefit of persons 65 years of age or older if the personal 
3 property
was not purchased by the enterprise for the 
4 purpose of resale by the
enterprise.

5  (11) Personal property sold to a governmental body, to 
6 a corporation,
society, association, foundation, or 
7 institution organized and operated
exclusively for 
8 charitable, religious, or educational purposes, or to a

9 not-for-profit corporation, society, association, 
10 foundation, institution,
or organization that has no 
11 compensated officers or employees and that is
organized and 
12 operated primarily for the recreation of persons 55 years 
13 of
age or older. A limited liability company may qualify 
14 for the exemption under
this paragraph only if the limited 
15 liability company is organized and operated
exclusively 
16 for educational purposes. On and after July 1, 1987, 
17 however, no
entity otherwise eligible for this exemption 
18 shall make tax-free purchases
unless it has an active 
19 identification number issued by the Department.

20  (12) (Blank).

21  (12-5) On and after July 1, 2003 and through June 30, 
22 2004, motor vehicles of the second division
with a gross 
23 vehicle weight in excess of 8,000 pounds
that
are
subject 
24 to the commercial distribution fee imposed under Section 
25 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, 
26 2004 and through June 30, 2005, the use in this State of 
 
 
10100SB0690ham003- 134 -LRB101 04451 SMS 61572 a


1 motor vehicles of the second division: (i) with a gross 
2 vehicle weight rating in excess of 8,000 pounds; (ii) that 
3 are subject to the commercial distribution fee imposed 
4 under Section 3-815.1 of the Illinois Vehicle Code; and 
5 (iii) that are primarily used for commercial purposes. 
6 Through June 30, 2005, this
exemption applies to repair and 
7 replacement parts added
after the
initial purchase of such 
8 a motor vehicle if that motor vehicle is used in a
manner 
9 that
would qualify for the rolling stock exemption 
10 otherwise provided for in this
Act. For purposes of this 
11 paragraph, "used for commercial purposes" means the 
12 transportation of persons or property in furtherance of any 
13 commercial or industrial enterprise whether for-hire or 
14 not.


15  (13) Proceeds from sales to owners, lessors, or

16 shippers of
tangible personal property that is utilized by 
17 interstate carriers for
hire for use as rolling stock 
18 moving in interstate commerce
and equipment operated by a 
19 telecommunications provider, licensed as a
common carrier 
20 by the Federal Communications Commission, which is

21 permanently installed in or affixed to aircraft moving in 
22 interstate commerce.

23  (14) Machinery and equipment that will be used by the 
24 purchaser, or a
lessee of the purchaser, primarily in the 
25 process of manufacturing or
assembling tangible personal 
26 property for wholesale or retail sale or
lease, whether the 
 
 
10100SB0690ham003- 135 -LRB101 04451 SMS 61572 a


1 sale or lease is made directly by the manufacturer or by

2 some other person, whether the materials used in the 
3 process are owned by
the manufacturer or some other person, 
4 or whether the sale or lease is made
apart from or as an 
5 incident to the seller's engaging in the service
occupation 
6 of producing machines, tools, dies, jigs, patterns, 
7 gauges, or
other similar items of no commercial value on 
8 special order for a particular
purchaser. The exemption 
9 provided by this paragraph (14) does not include machinery 
10 and equipment used in (i) the generation of electricity for 
11 wholesale or retail sale; (ii) the generation or treatment 
12 of natural or artificial gas for wholesale or retail sale 
13 that is delivered to customers through pipes, pipelines, or 
14 mains; or (iii) the treatment of water for wholesale or 
15 retail sale that is delivered to customers through pipes, 
16 pipelines, or mains. The provisions of Public Act 98-583 
17 are declaratory of existing law as to the meaning and scope 
18 of this exemption. Beginning on July 1, 2017, the exemption 
19 provided by this paragraph (14) includes, but is not 
20 limited to, graphic arts machinery and equipment, as 
21 defined in paragraph (4) of this Section.

22  (15) Proceeds of mandatory service charges separately 
23 stated on
customers' bills for purchase and consumption of 
24 food and beverages, to the
extent that the proceeds of the 
25 service charge are in fact turned over as
tips or as a 
26 substitute for tips to the employees who participate 
 
 
10100SB0690ham003- 136 -LRB101 04451 SMS 61572 a


1 directly
in preparing, serving, hosting or cleaning up the 
2 food or beverage function
with respect to which the service 
3 charge is imposed. 

4  (16) Tangible personal property sold to a purchaser if 
5 the purchaser is exempt from use tax by operation of 
6 federal law. This paragraph is exempt from the provisions 
7 of Section 2-70. 

8  (17) Tangible personal property sold to a common 
9 carrier by rail or
motor that
receives the physical 
10 possession of the property in Illinois and that
transports 
11 the property, or shares with another common carrier in the

12 transportation of the property, out of Illinois on a 
13 standard uniform bill
of lading showing the seller of the 
14 property as the shipper or consignor of
the property to a 
15 destination outside Illinois, for use outside Illinois.

16  (18) Legal tender, currency, medallions, or gold or 
17 silver coinage
issued by the State of Illinois, the 
18 government of the United States of
America, or the 
19 government of any foreign country, and bullion.

20  (19) Until July 1, 2003, oil field exploration, 
21 drilling, and production
equipment, including
(i) rigs and 
22 parts of rigs, rotary rigs, cable tool
rigs, and workover 
23 rigs, (ii) pipe and tubular goods, including casing and

24 drill strings, (iii) pumps and pump-jack units, (iv) 
25 storage tanks and flow
lines, (v) any individual 
26 replacement part for oil field exploration,
drilling, and 
 
 
10100SB0690ham003- 137 -LRB101 04451 SMS 61572 a


1 production equipment, and (vi) machinery and equipment 
2 purchased
for lease; but
excluding motor vehicles required 
3 to be registered under the Illinois
Vehicle Code.

4  (20) Photoprocessing machinery and equipment, 
5 including repair and
replacement parts, both new and used, 
6 including that manufactured on
special order, certified by 
7 the purchaser to be used primarily for
photoprocessing, and 
8 including photoprocessing machinery and equipment

9 purchased for lease.

10  (21) Until July 1, 2023, coal and aggregate 
11 exploration, mining, off-highway hauling,
processing,

12 maintenance, and reclamation equipment, including

13 replacement parts and equipment, and including
equipment 
14 purchased for lease, but excluding motor vehicles required 
15 to be
registered under the Illinois Vehicle Code. The 
16 changes made to this Section by Public Act 97-767 apply on 
17 and after July 1, 2003, but no claim for credit or refund 
18 is allowed on or after August 16, 2013 (the effective date 
19 of Public Act 98-456)
for such taxes paid during the period 
20 beginning July 1, 2003 and ending on August 16, 2013 (the 
21 effective date of Public Act 98-456).

22  (22) Until June 30, 2013, fuel and petroleum products 
23 sold to or used by an air carrier,
certified by the carrier 
24 to be used for consumption, shipment, or storage
in the 
25 conduct of its business as an air common carrier, for a 
26 flight
destined for or returning from a location or 
 
 
10100SB0690ham003- 138 -LRB101 04451 SMS 61572 a


1 locations
outside the United States without regard to 
2 previous or subsequent domestic
stopovers.

3  Beginning July 1, 2013, fuel and petroleum products 
4 sold to or used by an air carrier, certified by the carrier 
5 to be used for consumption, shipment, or storage in the 
6 conduct of its business as an air common carrier, for a 
7 flight that (i) is engaged in foreign trade or is engaged 
8 in trade between the United States and any of its 
9 possessions and (ii) transports at least one individual or 
10 package for hire from the city of origination to the city 
11 of final destination on the same aircraft, without regard 
12 to a change in the flight number of that aircraft. 
13  (23) A transaction in which the purchase order is 
14 received by a florist
who is located outside Illinois, but 
15 who has a florist located in Illinois
deliver the property 
16 to the purchaser or the purchaser's donee in Illinois.

17  (24) Fuel consumed or used in the operation of ships, 
18 barges, or vessels
that are used primarily in or for the 
19 transportation of property or the
conveyance of persons for 
20 hire on rivers bordering on this State if the
fuel is 
21 delivered by the seller to the purchaser's barge, ship, or 
22 vessel
while it is afloat upon that bordering river.

23  (25) Except as provided in item (25-5) of this Section, 
24 a
motor vehicle sold in this State to a nonresident even 
25 though the
motor vehicle is delivered to the nonresident in 
26 this State, if the motor
vehicle is not to be titled in 
 
 
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1 this State, and if a drive-away permit
is issued to the 
2 motor vehicle as provided in Section 3-603 of the Illinois

3 Vehicle Code or if the nonresident purchaser has vehicle 
4 registration
plates to transfer to the motor vehicle upon 
5 returning to his or her home
state. The issuance of the 
6 drive-away permit or having
the
out-of-state registration 
7 plates to be transferred is prima facie evidence
that the 
8 motor vehicle will not be titled in this State.

9  (25-5) The exemption under item (25) does not apply if 
10 the state in which the motor vehicle will be titled does 
11 not allow a reciprocal exemption for a motor vehicle sold 
12 and delivered in that state to an Illinois resident but 
13 titled in Illinois. The tax collected under this Act on the 
14 sale of a motor vehicle in this State to a resident of 
15 another state that does not allow a reciprocal exemption 
16 shall be imposed at a rate equal to the state's rate of tax 
17 on taxable property in the state in which the purchaser is 
18 a resident, except that the tax shall not exceed the tax 
19 that would otherwise be imposed under this Act. At the time 
20 of the sale, the purchaser shall execute a statement, 
21 signed under penalty of perjury, of his or her intent to 
22 title the vehicle in the state in which the purchaser is a 
23 resident within 30 days after the sale and of the fact of 
24 the payment to the State of Illinois of tax in an amount 
25 equivalent to the state's rate of tax on taxable property 
26 in his or her state of residence and shall submit the 
 
 
10100SB0690ham003- 140 -LRB101 04451 SMS 61572 a


1 statement to the appropriate tax collection agency in his 
2 or her state of residence. In addition, the retailer must 
3 retain a signed copy of the statement in his or her 
4 records. Nothing in this item shall be construed to require 
5 the removal of the vehicle from this state following the 
6 filing of an intent to title the vehicle in the purchaser's 
7 state of residence if the purchaser titles the vehicle in 
8 his or her state of residence within 30 days after the date 
9 of sale. The tax collected under this Act in accordance 
10 with this item (25-5) shall be proportionately distributed 
11 as if the tax were collected at the 6.25% general rate 
12 imposed under this Act.

13  (25-7) Beginning on July 1, 2007, no tax is imposed 
14 under this Act on the sale of an aircraft, as defined in 
15 Section 3 of the Illinois Aeronautics Act, if all of the 
16 following conditions are met:
17   (1) the aircraft leaves this State within 15 days 
18 after the later of either the issuance of the final 
19 billing for the sale of the aircraft, or the authorized 
20 approval for return to service, completion of the 
21 maintenance record entry, and completion of the test 
22 flight and ground test for inspection, as required by 
23 14 C.F.R. 91.407;
24   (2) the aircraft is not based or registered in this 
25 State after the sale of the aircraft; and
26   (3) the seller retains in his or her books and 
 
 
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1 records and provides to the Department a signed and 
2 dated certification from the purchaser, on a form 
3 prescribed by the Department, certifying that the 
4 requirements of this item (25-7) are met. The 
5 certificate must also include the name and address of 
6 the purchaser, the address of the location where the 
7 aircraft is to be titled or registered, the address of 
8 the primary physical location of the aircraft, and 
9 other information that the Department may reasonably 
10 require.
11  For purposes of this item (25-7):
12  "Based in this State" means hangared, stored, or 
13 otherwise used, excluding post-sale customizations as 
14 defined in this Section, for 10 or more days in each 
15 12-month period immediately following the date of the sale 
16 of the aircraft.
17  "Registered in this State" means an aircraft 
18 registered with the Department of Transportation, 
19 Aeronautics Division, or titled or registered with the 
20 Federal Aviation Administration to an address located in 
21 this State.
22  This paragraph (25-7) is exempt from the provisions
of

23 Section 2-70.

24  (26) Semen used for artificial insemination of 
25 livestock for direct
agricultural production.

26  (27) Horses, or interests in horses, registered with 
 
 
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1 and meeting the
requirements of any of the
Arabian Horse 
2 Club Registry of America, Appaloosa Horse Club, American 
3 Quarter
Horse Association, United States
Trotting 
4 Association, or Jockey Club, as appropriate, used for

5 purposes of breeding or racing for prizes. This item (27) 
6 is exempt from the provisions of Section 2-70, and the 
7 exemption provided for under this item (27) applies for all 
8 periods beginning May 30, 1995, but no claim for credit or 
9 refund is allowed on or after January 1, 2008 (the 
10 effective date of Public Act 95-88)
for such taxes paid 
11 during the period beginning May 30, 2000 and ending on 
12 January 1, 2008 (the effective date of Public Act 95-88).

13  (28) Computers and communications equipment utilized 
14 for any
hospital
purpose
and equipment used in the 
15 diagnosis,
analysis, or treatment of hospital patients 
16 sold to a lessor who leases the
equipment, under a lease of 
17 one year or longer executed or in effect at the
time of the 
18 purchase, to a
hospital
that has been issued an active tax 
19 exemption identification number by the
Department under 
20 Section 1g of this Act.

21  (29) Personal property sold to a lessor who leases the

22 property, under a
lease of one year or longer executed or 
23 in effect at the time of the purchase,
to a governmental 
24 body
that has been issued an active tax exemption 
25 identification number by the
Department under Section 1g of 
26 this Act.

 
 
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1  (30) Beginning with taxable years ending on or after 
2 December
31, 1995
and
ending with taxable years ending on 
3 or before December 31, 2004,
personal property that is

4 donated for disaster relief to be used in a State or 
5 federally declared
disaster area in Illinois or bordering 
6 Illinois by a manufacturer or retailer
that is registered 
7 in this State to a corporation, society, association,

8 foundation, or institution that has been issued a sales tax 
9 exemption
identification number by the Department that 
10 assists victims of the disaster
who reside within the 
11 declared disaster area.

12  (31) Beginning with taxable years ending on or after 
13 December
31, 1995 and
ending with taxable years ending on 
14 or before December 31, 2004, personal
property that is used 
15 in the performance of infrastructure repairs in this
State, 
16 including but not limited to municipal roads and streets, 
17 access roads,
bridges, sidewalks, waste disposal systems, 
18 water and sewer line extensions,
water distribution and 
19 purification facilities, storm water drainage and

20 retention facilities, and sewage treatment facilities, 
21 resulting from a State
or federally declared disaster in 
22 Illinois or bordering Illinois when such
repairs are 
23 initiated on facilities located in the declared disaster 
24 area
within 6 months after the disaster.

25  (32) Beginning July 1, 1999, game or game birds sold at 
26 a "game breeding
and
hunting preserve area" as that term is 
 
 
10100SB0690ham003- 144 -LRB101 04451 SMS 61572 a


1 used
in the
Wildlife Code. This paragraph is exempt from 
2 the provisions
of
Section 2-70.

3  (33) A motor vehicle, as that term is defined in 
4 Section 1-146
of the
Illinois Vehicle Code, that is donated 
5 to a corporation, limited liability
company, society, 
6 association, foundation, or institution that is determined 
7 by
the Department to be organized and operated exclusively 
8 for educational
purposes. For purposes of this exemption, 
9 "a corporation, limited liability
company, society, 
10 association, foundation, or institution organized and

11 operated
exclusively for educational purposes" means all 
12 tax-supported public schools,
private schools that offer 
13 systematic instruction in useful branches of
learning by 
14 methods common to public schools and that compare favorably 
15 in
their scope and intensity with the course of study 
16 presented in tax-supported
schools, and vocational or 
17 technical schools or institutes organized and
operated 
18 exclusively to provide a course of study of not less than 6 
19 weeks
duration and designed to prepare individuals to 
20 follow a trade or to pursue a
manual, technical, 
21 mechanical, industrial, business, or commercial

22 occupation.

23  (34) Beginning January 1, 2000, personal property, 
24 including food, purchased
through fundraising events for 
25 the benefit of a public or private elementary or
secondary 
26 school, a group of those schools, or one or more school 
 
 
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1 districts if
the events are sponsored by an entity 
2 recognized by the school district that
consists primarily 
3 of volunteers and includes parents and teachers of the

4 school children. This paragraph does not apply to 
5 fundraising events (i) for
the benefit of private home 
6 instruction or (ii) for which the fundraising
entity 
7 purchases the personal property sold at the events from 
8 another
individual or entity that sold the property for the 
9 purpose of resale by the
fundraising entity and that 
10 profits from the sale to the fundraising entity.
This 
11 paragraph is exempt from the provisions of Section 2-70.

12  (35) Beginning January 1, 2000 and through December 31, 
13 2001, new or used
automatic vending machines that prepare 
14 and serve hot food and beverages,
including coffee, soup, 
15 and other items, and replacement parts for these
machines. 
16 Beginning January 1, 2002 and through June 30, 2003, 
17 machines
and parts for machines used in
commercial, 
18 coin-operated amusement and vending business if a use or 
19 occupation
tax is paid on the gross receipts derived from 
20 the use of the commercial,
coin-operated amusement and 
21 vending machines. This paragraph is exempt from
the 
22 provisions of Section 2-70.

23  (35-5) Beginning August 23, 2001 and through June 30, 
24 2016, food for human consumption that is to be consumed off

25 the premises where it is sold (other than alcoholic 
26 beverages, soft drinks,
and food that has been prepared for 
 
 
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1 immediate consumption) and prescription
and 
2 nonprescription medicines, drugs, medical appliances, and 
3 insulin, urine
testing materials, syringes, and needles 
4 used by diabetics, for human use, when
purchased for use by 
5 a person receiving medical assistance under Article V of

6 the Illinois Public Aid Code who resides in a licensed 
7 long-term care facility,
as defined in the Nursing Home 
8 Care Act, or a licensed facility as defined in the ID/DD 
9 Community Care Act, the MC/DD Act, or the Specialized 
10 Mental Health Rehabilitation Act of 2013.

11  (36) Beginning August 2, 2001, computers and 
12 communications equipment
utilized for any hospital purpose 
13 and equipment used in the diagnosis,
analysis, or treatment 
14 of hospital patients sold to a lessor who leases the

15 equipment, under a lease of one year or longer executed or 
16 in effect at the
time of the purchase, to a hospital that 
17 has been issued an active tax
exemption identification 
18 number by the Department under Section 1g of this Act.
This 
19 paragraph is exempt from the provisions of Section 2-70.

20  (37) Beginning August 2, 2001, personal property sold 
21 to a lessor who
leases the property, under a lease of one 
22 year or longer executed or in effect
at the time of the 
23 purchase, to a governmental body that has been issued an

24 active tax exemption identification number by the 
25 Department under Section 1g
of this Act. This paragraph is 
26 exempt from the provisions of Section 2-70.

 
 
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1  (38) Beginning on January 1, 2002 and through June 30, 
2 2016, tangible personal property purchased
from an 
3 Illinois retailer by a taxpayer engaged in centralized 
4 purchasing
activities in Illinois who will, upon receipt of 
5 the property in Illinois,
temporarily store the property in 
6 Illinois (i) for the purpose of subsequently
transporting 
7 it outside this State for use or consumption thereafter 
8 solely
outside this State or (ii) for the purpose of being 
9 processed, fabricated, or
manufactured into, attached to, 
10 or incorporated into other tangible personal
property to be 
11 transported outside this State and thereafter used or 
12 consumed
solely outside this State. The Director of Revenue 
13 shall, pursuant to rules
adopted in accordance with the 
14 Illinois Administrative Procedure Act, issue a
permit to 
15 any taxpayer in good standing with the Department who is 
16 eligible for
the exemption under this paragraph (38). The 
17 permit issued under
this paragraph (38) shall authorize the 
18 holder, to the extent and
in the manner specified in the 
19 rules adopted under this Act, to purchase
tangible personal 
20 property from a retailer exempt from the taxes imposed by

21 this Act. Taxpayers shall maintain all necessary books and 
22 records to
substantiate the use and consumption of all such 
23 tangible personal property
outside of the State of 
24 Illinois.

25  (39) Beginning January 1, 2008, tangible personal 
26 property used in the construction or maintenance of a 
 
 
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1 community water supply, as defined under Section 3.145 of 
2 the Environmental Protection Act, that is operated by a 
3 not-for-profit corporation that holds a valid water supply 
4 permit issued under Title IV of the Environmental 
5 Protection Act. This paragraph is exempt from the 
6 provisions of Section 2-70.

7  (40) Beginning January 1, 2010, materials, parts, 
8 equipment, components, and furnishings incorporated into 
9 or upon an aircraft as part of the modification, 
10 refurbishment, completion, replacement, repair, or 
11 maintenance of the aircraft. This exemption includes 
12 consumable supplies used in the modification, 
13 refurbishment, completion, replacement, repair, and 
14 maintenance of aircraft, but excludes any materials, 
15 parts, equipment, components, and consumable supplies used 
16 in the modification, replacement, repair, and maintenance 
17 of aircraft engines or power plants, whether such engines 
18 or power plants are installed or uninstalled upon any such 
19 aircraft. "Consumable supplies" include, but are not 
20 limited to, adhesive, tape, sandpaper, general purpose 
21 lubricants, cleaning solution, latex gloves, and 
22 protective films. This exemption applies only to the sale 
23 of qualifying tangible personal property to persons who 
24 modify, refurbish, complete, replace, or maintain an 
25 aircraft and who (i) hold an Air Agency Certificate and are 
26 empowered to operate an approved repair station by the 
 
 
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1 Federal Aviation Administration, (ii) have a Class IV 
2 Rating, and (iii) conduct operations in accordance with 
3 Part 145 of the Federal Aviation Regulations. The exemption 
4 does not include aircraft operated by a commercial air 
5 carrier providing scheduled passenger air service pursuant 
6 to authority issued under Part 121 or Part 129 of the 
7 Federal Aviation Regulations. The changes made to this 
8 paragraph (40) by Public Act 98-534 are declarative of 
9 existing law.
10  (41) Tangible personal property sold to a 
11 public-facilities corporation, as described in Section 
12 11-65-10 of the Illinois Municipal Code, for purposes of 
13 constructing or furnishing a municipal convention hall, 
14 but only if the legal title to the municipal convention 
15 hall is transferred to the municipality without any further 
16 consideration by or on behalf of the municipality at the 
17 time of the completion of the municipal convention hall or 
18 upon the retirement or redemption of any bonds or other 
19 debt instruments issued by the public-facilities 
20 corporation in connection with the development of the 
21 municipal convention hall. This exemption includes 
22 existing public-facilities corporations as provided in 
23 Section 11-65-25 of the Illinois Municipal Code. This 
24 paragraph is exempt from the provisions of Section 2-70. 
25  (42) Beginning January 1, 2017, menstrual pads, 
26 tampons, and menstrual cups. 
 
 
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1  (43) Merchandise that is subject to the Rental Purchase 
2 Agreement Occupation and Use Tax. The purchaser must 
3 certify that the item is purchased to be rented subject to 
4 a rental purchase agreement, as defined in the Rental 
5 Purchase Agreement Act, and provide proof of registration 
6 under the Rental Purchase Agreement Occupation and Use Tax 
7 Act. This paragraph is exempt from the provisions of 
8 Section 2-70.
9  (44) Qualified tangible personal property used in the 
10 construction or operation of a data center that has been 
11 granted a certificate of exemption by the Department of 
12 Commerce and Economic Opportunity, whether that tangible 
13 personal property is purchased by the owner, operator, or 
14 tenant of the data center or by a contractor or 
15 subcontractor of the owner, operator, or tenant. Data 
16 centers that would have qualified for a certificate of 
17 exemption prior to January 1, 2020 had this amendatory Act 
18 of the 101st General Assembly been in effect, may apply for 
19 and obtain an exemption for subsequent purchases of 
20 computer equipment or enabling software purchased or 
21 leased to upgrade, supplement, or replace computer 
22 equipment or enabling software purchased or leased in the 
23 original investment that would have qualified. 
24  The Department of Commerce and Economic Opportunity 
25 shall grant a certificate of exemption under this item (44) 
26 to qualified data centers as defined by Section 605-1025 of 
 
 
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1 the Department of Commerce and Economic Opportunity Law of 
2 the
Civil Administrative Code of Illinois. 
3  For the purposes of this item (44): 
4   "Data center" means a building or a series of 
5 buildings rehabilitated or constructed to house 
6 working servers in one physical location or multiple 
7 sites within the State of Illinois. 
8   "Qualified tangible personal property" means: 
9 electrical systems and equipment; climate control and 
10 chilling equipment and systems; mechanical systems and 
11 equipment; monitoring and secure systems; emergency 
12 generators; hardware; computers; servers; data storage 
13 devices; network connectivity equipment; racks; 
14 cabinets; telecommunications cabling infrastructure; 
15 raised floor systems; peripheral components or 
16 systems; software; mechanical, electrical, or plumbing 
17 systems; battery systems; cooling systems and towers; 
18 temperature control systems; other cabling; and other 
19 data center infrastructure equipment and systems 
20 necessary to operate qualified tangible personal 
21 property, including fixtures; and component parts of 
22 any of the foregoing, including installation, 
23 maintenance, repair, refurbishment, and replacement of 
24 qualified tangible personal property to generate, 
25 transform, transmit, distribute, or manage electricity 
26 necessary to operate qualified tangible personal 
 
 
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1 property; and all other tangible personal property 
2 that is essential to the operations of a computer data 
3 center. The term "qualified tangible personal 
4 property" also includes building materials physically 
5 incorporated in to the qualifying data center. To 
6 document the exemption allowed under this Section, the 
7 retailer must obtain from the purchaser a copy of the 
8 certificate of eligibility issued by the Department of 
9 Commerce and Economic Opportunity. 
10  This item (44) is exempt from the provisions of Section 
11 2-70. 
12(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; 
13100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff. 
141-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18; 
15100-1171, eff. 1-4-19; revised 1-8-19.)


16 (35 ILCS 120/2-12)
17 Sec. 2-12. Location where retailer is deemed to be engaged 
18in the business of selling. The purpose of this Section is to 
19specify where a retailer is deemed to be engaged in the 
20business of selling tangible personal property for the purposes 
21of this Act, the Use Tax Act, the Service Use Tax Act, and the 
22Service Occupation Tax Act, and for the purpose of collecting 
23any other local retailers' occupation tax administered by the 
24Department. This Section applies only with respect to the 
25particular selling activities described in the following 
 
 
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1paragraphs. The provisions of this Section are not intended to, 
2and shall not be interpreted to, affect where a retailer is 
3deemed to be engaged in the business of selling with respect to 
4any activity that is not specifically described in the 
5following paragraphs.
6  (1) If a purchaser who is present at the retailer's 
7 place of business, having no prior commitment to the 
8 retailer, agrees to purchase and makes payment for tangible 
9 personal property at the retailer's place of business, then 
10 the transaction shall be deemed an over-the-counter sale 
11 occurring at the retailer's same place of business where 
12 the purchaser was present and made payment for that 
13 tangible personal property if the retailer regularly 
14 stocks the purchased tangible personal property or similar 
15 tangible personal property in the quantity, or similar 
16 quantity, for sale at the retailer's same place of business 
17 and then either (i) the purchaser takes possession of the 
18 tangible personal property at the same place of business or 
19 (ii) the retailer delivers or arranges for the tangible 
20 personal property to be delivered to the purchaser. 
21  (2) If a purchaser, having no prior commitment to the 
22 retailer, agrees to purchase tangible personal property 
23 and makes payment over the phone, in writing, or via the 
24 Internet and takes possession of the tangible personal 
25 property at the retailer's place of business, then the sale 
26 shall be deemed to have occurred at the retailer's place of 
 
 
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1 business where the purchaser takes possession of the 
2 property if the retailer regularly stocks the item or 
3 similar items in the quantity, or similar quantities, 
4 purchased by the purchaser. 
5  (3) A retailer is deemed to be engaged in the business 
6 of selling food, beverages, or other tangible personal 
7 property through a vending machine at the location where 
8 the vending machine is located at the time the sale is made 
9 if (i) the vending machine is a device operated by coin, 
10 currency, credit card, token, coupon or similar device; (2) 
11 the food, beverage or other tangible personal property is 
12 contained within the vending machine and dispensed from the 
13 vending machine; and (3) the purchaser takes possession of 
14 the purchased food, beverage or other tangible personal 
15 property immediately. 
16  (4) Minerals. A producer of coal or other mineral mined 
17 in Illinois is deemed to be engaged in the business of 
18 selling at the place where the coal or other mineral mined 
19 in Illinois is extracted from the earth. With respect to 
20 minerals (i) the term "extracted from the earth" means the 
21 location at which the coal or other mineral is extracted 
22 from the mouth of the mine, and (ii) a "mineral" includes 
23 not only coal, but also oil, sand, stone taken from a 
24 quarry, gravel and any other thing commonly regarded as a 
25 mineral and extracted from the earth. This paragraph does 
26 not apply to coal or another mineral when it is delivered 
 
 
10100SB0690ham003- 155 -LRB101 04451 SMS 61572 a


1 or shipped by the seller to the purchaser at a point 
2 outside Illinois so that the sale is exempt under the 
3 United States Constitution as a sale in interstate or 
4 foreign commerce. 

5  (5) A retailer selling tangible personal property to a 
6 nominal lessee or bailee pursuant to a lease with a dollar 
7 or other nominal option to purchase is engaged in the 
8 business of selling at the location where the property is 
9 first delivered to the lessee or bailee for its intended 
10 use. 
11  (6) Beginning on July 1, 2020, for the purposes of 
12 determining the correct local retailers' occupation tax 
13 rate, retail sales made by a remote retailer that meet or 
14 exceed the thresholds established in paragraph (1) or (2) 
15 of subsection (b) of Section 2 of this Act shall be deemed 
16 to be made at the Illinois location to which the tangible 
17 personal property is shipped or delivered or at which 
18 possession is taken by the purchaser. 
19(Source: P.A. 98-1098, eff. 8-26-14; 99-126, eff. 7-23-15.)

20 (35 ILCS 120/2a) (from Ch. 120, par. 441a)
21 Sec. 2a. It is unlawful for any person to engage in the 
22business of
selling tangible personal property at retail in 
23this State without a
certificate of registration from the 
24Department. Application
for a certificate of registration 
25shall be made to the Department upon
forms furnished by it. 
 
 
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1Each such application shall be signed and verified
and shall 
2state: (1) the name and social security number of the

3applicant; (2) the address of his principal place
of business; 
4(3) the address of the principal place of business from which

5he engages in the business of selling tangible personal 
6property at retail
in this State and the addresses of all other 
7places of business, if any
(enumerating such addresses, if any, 
8in a separate list attached to and
made a part of the 
9application), from which he engages in the business of
selling 
10tangible personal property at retail in this State; (4)
the

11name and address of the person or persons who will be 
12responsible for
filing returns and payment of taxes due under 
13this Act; (5) in the case of a publicly traded corporation, the 
14name and title of the Chief Financial Officer, Chief Operating 
15Officer, and any other officer or employee with responsibility 
16for preparing tax returns under this Act, and, in the
case of

17all other corporations, the name, title, and social security 
18number of
each corporate officer; (6) in the case of a limited 
19liability
company, the
name, social security number, and FEIN 
20number of
each
manager and member; and (7) such other 
21information
as the Department may reasonably require. The 
22application shall contain
an acceptance of responsibility 
23signed by the person or persons who will be
responsible for 
24filing returns and payment of the taxes due under this
Act. If 
25the applicant will sell tangible personal property at retail

26through vending machines, his application to register shall 
 
 
10100SB0690ham003- 157 -LRB101 04451 SMS 61572 a


1indicate the
number of vending machines to be so operated. If 
2requested by the Department at any time, that person shall 
3verify the total number of vending machines he or she uses in 
4his or her business of selling tangible personal property at 
5retail.
6 The Department shall provide by rule for an expedited 
7business registration process for remote retailers required to 
8register and file under subsection (b) of Section 2 who use a 
9certified service provider to file their returns under this 
10Act. Such expedited registration process shall allow the 
11Department to register a taxpayer based upon the same 
12registration information required by the Streamlined Sales Tax 
13Governing Board for states participating in the Streamlined 
14Sales Tax Project. 
15 The Department may deny a certificate of registration to 
16any applicant
if a person who is named as the owner, a partner, 
17a manager or member of a limited liability
company, or a 
18corporate officer of the applicant on the application for the 
19certificate of registration is or
has been named as the owner, 
20a partner, a manager or member of a limited
liability company, 
21or a corporate officer on the application for the certificate 
22of registration of another retailer
that is in default for 
23moneys due under this Act or any other tax or fee Act 
24administered by the Department. For purposes of this paragraph 
25only, in determining whether a person is in default for moneys 
26due, the Department shall include only amounts established as a 
 
 
10100SB0690ham003- 158 -LRB101 04451 SMS 61572 a


1final liability within the 20 years prior to the date of the 
2Department's notice of denial of a certificate of registration. 
3 The Department may require an applicant for a certificate 
4of registration hereunder to, at
the time of filing such 
5application, furnish a bond from a surety company
authorized to 
6do business in the State of Illinois, or an irrevocable
bank 
7letter of credit or a bond signed by 2
personal sureties who 
8have filed, with the Department, sworn statements
disclosing 
9net assets equal to at least 3 times the amount of the bond to

10be required of such applicant, or a bond secured by an 
11assignment of a bank
account or certificate of deposit, stocks 
12or bonds, conditioned upon the
applicant paying to the State of 
13Illinois all moneys becoming due under
this Act and under any 
14other State tax law or municipal or county tax
ordinance or 
15resolution under which the certificate of registration that is

16issued to the applicant under this Act will permit the 
17applicant to engage
in business without registering separately 
18under such other law, ordinance
or resolution. In making a 
19determination as to whether to require a bond or other 
20security, the Department shall take into consideration whether 
21the owner, any partner, any manager or member of a limited 
22liability company, or a corporate officer of the applicant is 
23or has been the owner, a partner, a manager or member of a 
24limited liability company, or a corporate officer of another 
25retailer that is in default for moneys due under this Act or 
26any other tax or fee Act administered by the Department; and 
 
 
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1whether the owner, any partner, any manager or member of a 
2limited liability company, or a corporate officer of the 
3applicant is or has been the owner, a partner, a manager or 
4member of a limited liability company, or a corporate officer 
5of another retailer whose certificate of registration has been 
6revoked within the previous 5 years under this Act or any other 
7tax or fee Act administered by the Department. If a bond or 
8other security is required, the Department shall fix the amount 
9of the bond or other security, taking into consideration the 
10amount of money expected to become due from the applicant under 
11this Act and under any other State tax law or municipal or 
12county tax ordinance or resolution under which the certificate 
13of registration that is issued to the applicant under this Act 
14will permit the applicant to engage in business without 
15registering separately under such other law, ordinance, or 
16resolution. The amount of security required by
the Department 
17shall be such as, in its opinion, will protect the State of

18Illinois against failure to pay the amount which may become due 
19from the
applicant under this Act and under any other State tax 
20law or municipal or
county tax ordinance or resolution under 
21which the certificate of
registration that is issued to the 
22applicant under this Act will permit the
applicant to engage in 
23business without registering separately under such
other law, 
24ordinance or resolution, but the amount of the security 
25required
by the Department shall not exceed three times the 
26amount of the
applicant's average monthly tax liability, or 
 
 
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1$50,000.00, whichever amount
is lower.
2 No certificate of registration under this Act shall be 
3issued by the
Department until the applicant provides the 
4Department with satisfactory
security, if required, as herein 
5provided for.
6 Upon receipt of the application for certificate of 
7registration in
proper form, and upon approval by the 
8Department of the security furnished
by the applicant, if 
9required, the Department shall issue to such applicant a

10certificate of registration which shall permit the person to 
11whom it is
issued to engage in the business of selling tangible 
12personal property at
retail in this State. The certificate of 
13registration shall be
conspicuously displayed at the place of 
14business which the person so
registered states in his 
15application to be the principal place of business
from which he 
16engages in the business of selling tangible personal property

17at retail in this State.
18 No certificate of registration issued prior to July 1, 2017 
19to a taxpayer who files returns
required by this Act on a 
20monthly basis or renewed prior to July 1, 2017 by a taxpayer 
21who files returns
required by this Act on a monthly basis shall 
22be valid after the expiration
of 5 years from the date of its 
23issuance or last renewal. No certificate of registration issued 
24on or after July 1, 2017 to a taxpayer who files returns

25required by this Act on a monthly basis or renewed on or after 
26July 1, 2017 by a taxpayer who files returns
required by this 
 
 
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1Act on a monthly basis shall be valid after the expiration
of 
2one year from the date of its issuance or last renewal. The 
3expiration
date of a sub-certificate of registration shall be 
4that of the certificate
of registration to which the 
5sub-certificate relates. Prior to July 1, 2017, a certificate 
6of
registration shall automatically be renewed, subject to 
7revocation as
provided by this Act, for an additional 5 years 
8from the date of its
expiration unless otherwise notified by 
9the Department as provided by this
paragraph. On and after July 
101, 2017, a certificate of
registration shall automatically be 
11renewed, subject to revocation as
provided by this Act, for an 
12additional one year from the date of its
expiration unless 
13otherwise notified by the Department as provided by this

14paragraph. 
15 Where a taxpayer to whom a certificate of registration is

16issued under this Act is in default to the State of Illinois 
17for delinquent
returns or for moneys due
under this Act or any 
18other State tax law or municipal or county ordinance

19administered or enforced by the Department, the Department 
20shall, not less
than 60 days before the expiration date of such 
21certificate of
registration, give notice to the taxpayer to 
22whom the certificate was
issued of the account period of the 
23delinquent returns, the amount of
tax,
penalty and interest due 
24and owing from the
taxpayer, and that the certificate of 
25registration shall not be
automatically renewed upon its 
26expiration date unless the taxpayer, on or
before the date of 
 
 
10100SB0690ham003- 162 -LRB101 04451 SMS 61572 a


1expiration, has filed and paid the delinquent returns or
paid 
2the defaulted amount in full. A
taxpayer to whom such a notice 
3is issued shall be deemed an applicant for
renewal. The 
4Department shall promulgate regulations establishing

5procedures for taxpayers who file returns on a monthly basis 
6but desire and
qualify to change to a quarterly or yearly 
7filing basis and will no longer
be subject to renewal under 
8this Section, and for taxpayers who file
returns on a yearly or 
9quarterly basis but who desire or are required to
change to a 
10monthly filing basis and will be subject to renewal under
this 
11Section.
12 The Department may in its discretion approve renewal by an 
13applicant
who is in default if, at the time of application for 
14renewal, the applicant
files all of the delinquent returns or 
15pays to the Department such
percentage of the defaulted amount 
16as may be
determined by the Department and agrees in writing to 
17waive all limitations
upon the Department for collection of the 
18remaining defaulted amount to the
Department over a period not 
19to exceed 5 years from the date of renewal of
the certificate; 
20however, no renewal application submitted by an applicant
who 
21is in default shall be approved if the immediately preceding 
22renewal by
the applicant was conditioned upon the installment 
23payment
agreement described in this Section. The payment 
24agreement herein provided
for shall be in addition to and not 
25in lieu of the security that may be required by
this Section of 
26a taxpayer who is no longer considered a prior continuous

 
 
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1compliance taxpayer. The execution of the payment agreement as 
2provided in
this Act shall not toll the accrual of interest at 
3the statutory rate.
4 The Department may suspend a certificate of registration if 
5the Department finds that the person to whom the certificate of 
6registration has been issued knowingly sold contraband 
7cigarettes. 
8 A certificate of registration issued under this Act more 
9than 5 years
before January 1, 1990 (the effective date of 
10Public Act 86-383) shall expire and
be subject to the renewal 
11provisions of this Section on the next
anniversary of the date 
12of issuance of such certificate which occurs more
than 6 months 
13after January 1, 1990 (the effective date of Public Act 
1486-383). A
certificate of registration issued less than 5 years 
15before January 1, 1990 (the effective
date of Public Act 
1686-383) shall expire and be subject to the
renewal provisions 
17of this Section on the 5th anniversary of the issuance
of the 
18certificate.
19 If the person so registered states that he operates other 
20places of
business from which he engages in the business of 
21selling tangible personal
property at retail in this State, the 
22Department shall furnish him with a
sub-certificate of 
23registration for each such place of business, and the
applicant 
24shall display the appropriate sub-certificate of registration 
25at
each such place of business. All sub-certificates of 
26registration shall
bear the same registration number as that 
 
 
10100SB0690ham003- 164 -LRB101 04451 SMS 61572 a


1appearing upon the certificate of
registration to which such 
2sub-certificates relate.
3 If the applicant will sell tangible personal property at 
4retail through
vending machines, the Department shall furnish 
5him with a sub-certificate
of registration for each such 
6vending machine, and the applicant shall
display the 
7appropriate sub-certificate of registration on each such

8vending machine by attaching the sub-certificate of 
9registration to a
conspicuous part of such vending machine. If 
10a person who is registered to sell tangible personal property 
11at retail through vending machines adds an additional vending 
12machine or additional vending machines to the number of vending 
13machines he or she uses in his or her business of selling 
14tangible personal property at retail, he or she shall notify 
15the Department, on a form prescribed by the Department, to 
16request an additional sub-certificate or additional 
17sub-certificates of registration, as applicable. With each 
18such request, the applicant shall report the number of 
19sub-certificates of registration he or she is requesting as 
20well as the total number of vending machines from which he or 
21she makes retail sales. 
22 Where the same person engages in 2 or more businesses of 
23selling
tangible personal property at retail in this State, 
24which businesses are
substantially different in character or 
25engaged in under different trade
names or engaged in under 
26other substantially dissimilar circumstances (so
that it is 
 
 
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1more practicable, from an accounting, auditing or bookkeeping

2standpoint, for such businesses to be separately registered), 
3the
Department may require or permit such person (subject to 
4the same
requirements concerning the furnishing of security as 
5those that are
provided for hereinbefore in this Section as to 
6each application for a
certificate of registration) to apply 
7for and obtain a separate certificate
of registration for each 
8such business or for any of such businesses, under
a single 
9certificate of registration supplemented by related

10sub-certificates of registration.
11 Any person who is registered under the Retailers' 
12Occupation Tax Act
as of March 8, 1963, and who, during the 
133-year period immediately prior to
March 8, 1963, or during a 
14continuous 3-year period part of which passed
immediately 
15before and the remainder of which passes immediately after

16March 8, 1963, has been so registered continuously and who is 
17determined by
the Department not to have been either delinquent 
18or deficient in the
payment of tax liability during that period 
19under this Act or under any
other State tax law or municipal or 
20county tax ordinance or resolution
under which the certificate 
21of registration that is issued to the
registrant under this Act 
22will permit the registrant to engage in business
without 
23registering separately under such other law, ordinance or

24resolution, shall be considered to be a Prior Continuous 
25Compliance
taxpayer. Also any taxpayer who has, as verified by 
26the Department,
faithfully and continuously complied with the 
 
 
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1condition of his bond or
other security under the provisions of 
2this Act for a period of 3
consecutive years shall be 
3considered to be a Prior Continuous Compliance
taxpayer.
4 Every Prior Continuous Compliance taxpayer shall be exempt 
5from all
requirements under this Act concerning the furnishing 
6of a bond or other security as a
condition precedent to his 
7being authorized to engage in the business of
selling tangible 
8personal property at retail in this State. This exemption
shall 
9continue for each such taxpayer until such time as he may be

10determined by the Department to be delinquent in the filing of 
11any returns,
or is determined by the Department (either through 
12the Department's
issuance of a final assessment which has 
13become final under the Act, or by
the taxpayer's filing of a 
14return which admits tax that is not paid to be
due) to be 
15delinquent or deficient in the paying of any tax under this Act

16or under any other State tax law or municipal or county tax 
17ordinance or
resolution under which the certificate of 
18registration that is issued to
the registrant under this Act 
19will permit the registrant to engage in
business without 
20registering separately under such other law, ordinance or

21resolution, at which time that taxpayer shall become subject to 
22all the
financial responsibility requirements of this Act and, 
23as a condition of
being allowed to continue to engage in the 
24business of selling tangible
personal property at retail, may 
25be required to post bond or other
acceptable security with the 
26Department covering liability which such
taxpayer may 
 
 
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1thereafter incur. Any taxpayer who fails to pay an admitted or

2established liability under this Act may also be required to 
3post bond or
other acceptable security with this Department 
4guaranteeing the payment of
such admitted or established 
5liability.
6 No certificate of registration shall be issued to any 
7person who is in
default to the State of Illinois for moneys 
8due under this Act or under any
other State tax law or 
9municipal or county tax ordinance or resolution
under which the 
10certificate of registration that is issued to the applicant

11under this Act will permit the applicant to engage in business 
12without
registering separately under such other law, ordinance 
13or resolution.
14 Any person aggrieved by any decision of the Department 
15under this
Section may, within 20 days after notice of such 
16decision, protest and
request a hearing, whereupon the 
17Department shall give notice to such
person of the time and 
18place fixed for such hearing and shall hold a
hearing in 
19conformity with the provisions of this Act and then issue its

20final administrative decision in the matter to such person. In 
21the absence
of such a protest within 20 days, the Department's 
22decision shall become
final without any further determination 
23being made or notice given.
24 With respect to security other than bonds (upon which the 
25Department may
sue in the event of a forfeiture), if the 
26taxpayer fails to pay, when due,
any amount whose payment such 
 
 
10100SB0690ham003- 168 -LRB101 04451 SMS 61572 a


1security guarantees, the Department shall,
after such 
2liability is admitted by the taxpayer or established by the

3Department through the issuance of a final assessment that has 
4become final
under the law, convert the security which that 
5taxpayer has furnished into
money for the State, after first 
6giving the taxpayer at least 10 days'
written notice, by 
7registered or certified mail, to pay the liability or
forfeit 
8such security to the Department. If the security consists of 
9stocks
or bonds or other securities which are listed on a 
10public exchange, the
Department shall sell such securities 
11through such public exchange. If
the security consists of an 
12irrevocable bank letter of credit, the
Department shall convert 
13the security in the manner provided for in the
Uniform 
14Commercial Code. If the security consists of a bank certificate 
15of
deposit, the Department shall convert the security into 
16money by demanding
and collecting the amount of such bank 
17certificate of deposit from the bank
which issued such 
18certificate. If the security consists of a type of stocks
or 
19other securities which are not listed on a public exchange, the

20Department shall sell such security to the highest and best 
21bidder after
giving at least 10 days' notice of the date, time 
22and place of the intended
sale by publication in the "State 
23Official Newspaper". If the Department
realizes more than the 
24amount of such liability from the security, plus the
expenses 
25incurred by the Department in converting the security into 
26money,
the Department shall pay such excess to the taxpayer who 
 
 
10100SB0690ham003- 169 -LRB101 04451 SMS 61572 a


1furnished such
security, and the balance shall be paid into the 
2State Treasury.
3 The Department shall discharge any surety and shall release 
4and return
any security deposited, assigned, pledged or 
5otherwise provided to it by
a taxpayer under this Section 
6within 30 days after:
7  (1) such taxpayer becomes a Prior Continuous 
8 Compliance taxpayer; or
9  (2) such taxpayer has ceased to collect receipts on 
10 which he is required
to remit tax to the Department, has 
11 filed a final tax return, and has paid
to the Department an 
12 amount sufficient to discharge his remaining tax

13 liability, as determined by the Department, under this Act 
14 and under every
other State tax law or municipal or county 
15 tax ordinance or resolution
under which the certificate of 
16 registration issued under this Act permits
the registrant 
17 to engage in business without registering separately under

18 such other law, ordinance or resolution. The Department 
19 shall make a final
determination of the taxpayer's 
20 outstanding tax liability as expeditiously
as possible 
21 after his final tax return has been filed; if the 
22 Department
cannot make such final determination within 45 
23 days after receiving the
final tax return, within such 
24 period it shall so notify the taxpayer,
stating its reasons 
25 therefor.
26(Source: P.A. 100-302, eff. 8-24-17; 100-303, eff. 8-24-17; 
 
 
10100SB0690ham003- 170 -LRB101 04451 SMS 61572 a


1100-863, eff. 8-14-18.)


2 Section 15-50. The Cigarette Tax Act is amended by changing 
3Section 2 as follows:




4 (35 ILCS 130/2) (from Ch. 120, par. 453.2)


5 Sec. 2. Tax imposed; rate; collection, payment, and 
6distribution;
discount.
7 (a) Beginning on July 1, 2019, in place of the aggregate 
8tax rate of 99 mills previously imposed by this Act, a tax is 
9imposed upon any person engaged in business as a retailer of 
10cigarettes at the rate of 149 mills per cigarette sold or 
11otherwise disposed of in the course of such business in this 
12State. A tax is imposed upon any person engaged in business as 
13a
retailer of cigarettes in this State at the rate of 5 1/2 
14mills per
cigarette sold, or otherwise disposed of in the 
15course of such business in
this State. In addition to any other 
16tax imposed by this Act, a tax is
imposed upon any person 
17engaged in business as a retailer of cigarettes in
this State 
18at a rate of 1/2 mill per cigarette sold or otherwise disposed

19of in the course of such business in this State on and after 
20January 1,
1947, and shall be paid into the Metropolitan Fair 
21and Exposition Authority
Reconstruction Fund or as otherwise 
22provided in Section 29. On and after December 1, 1985, in 
23addition to any
other tax imposed by this Act, a tax is imposed 
24upon any person engaged in
business as a retailer of cigarettes 
 
 
10100SB0690ham003- 171 -LRB101 04451 SMS 61572 a


1in this State at a rate of 4 mills per
cigarette sold or 
2otherwise disposed of in the course of such business in
this 
3State. Of the additional tax imposed by this amendatory Act of 
41985,
$9,000,000 of the moneys received by the Department of 
5Revenue pursuant to
this Act shall be paid each month into the 
6Common School Fund. On and after
the effective date of this 
7amendatory Act of 1989, in addition to any other tax
imposed by 
8this Act, a tax is imposed upon any person engaged in business 
9as a
retailer of cigarettes at the rate of 5 mills per 
10cigarette sold or
otherwise disposed of in the course of such 
11business in this State.
On and after the effective date of this 
12amendatory Act of 1993, in addition
to any other tax imposed by 
13this Act, a tax is imposed upon any person engaged
in business 
14as a retailer of cigarettes at the rate of 7 mills per 
15cigarette
sold or otherwise disposed of in the course of such 
16business in this State.
On and after December 15, 1997, in 
17addition
to any other tax imposed by this Act, a tax is imposed 
18upon any person engaged
in business as a retailer of cigarettes 
19at the rate of 7 mills per cigarette
sold or otherwise disposed 
20of in the course of such business of this State.
All of the 
21moneys received by the Department of Revenue pursuant to this 
22Act
and the Cigarette Use Tax Act from the additional taxes 
23imposed by this
amendatory Act of 1997, shall be paid each 
24month into the Common School Fund.
On and after July 1, 2002, 
25in addition to any other tax imposed by this Act,
a tax is 
26imposed upon any person engaged in business as a retailer of

 
 
10100SB0690ham003- 172 -LRB101 04451 SMS 61572 a


1cigarettes at the rate of 20.0 mills per cigarette sold or 
2otherwise disposed
of
in the course of such business in this 
3State.
Beginning on June 24, 2012, in addition to any other tax 
4imposed by this Act, a tax is imposed upon any person engaged 
5in business as a retailer of cigarettes at the rate of 50 mills 
6per cigarette sold or otherwise disposed of in the course of 
7such business in this State. All moneys received by the 
8Department of Revenue under this Act and the Cigarette Use Tax 
9Act from the additional taxes imposed by this amendatory Act of 
10the 97th General Assembly shall be paid each month into the 
11Healthcare Provider Relief Fund.
12 (b) The payment of such taxes shall be evidenced by a stamp 
13affixed to
each original package of cigarettes, or an 
14authorized substitute for such stamp
imprinted on each original 
15package of such cigarettes underneath the sealed
transparent 
16outside wrapper of such original package, as hereinafter 
17provided.
However, such taxes are not imposed upon any activity 
18in such business in
interstate commerce or otherwise, which 
19activity may not under
the Constitution and statutes of the 
20United States be made the subject of
taxation by this State.

21 Beginning on the effective date of this amendatory Act of 
22the 92nd General
Assembly and through June 30, 2006,
all of the 
23moneys received by the Department of Revenue pursuant to this 
24Act
and the Cigarette Use Tax Act, other than the moneys that 
25are dedicated to the Common
School Fund, shall be distributed 
26each month as follows: first, there shall be
paid into the 
 
 
10100SB0690ham003- 173 -LRB101 04451 SMS 61572 a


1General Revenue Fund an amount which, when added to the amount

2paid into the Common School Fund for that month, equals 
3$33,300,000, except that in the month of August of 2004, this 
4amount shall equal $83,300,000; then, from
the moneys 
5remaining, if any amounts required to be paid into the General

6Revenue Fund in previous months remain unpaid, those amounts 
7shall be paid into
the General Revenue Fund;
then, beginning on 
8April 1, 2003, from the moneys remaining, $5,000,000 per
month 
9shall be paid into the School Infrastructure Fund; then, if any 
10amounts
required to be paid into the School Infrastructure Fund 
11in previous months
remain unpaid, those amounts shall be paid 
12into the School Infrastructure
Fund;
then the moneys remaining, 
13if any, shall be paid into the Long-Term Care
Provider Fund.
To 
14the extent that more than $25,000,000 has been paid into the 
15General
Revenue Fund and Common School Fund per month for the 
16period of July 1, 1993
through the effective date of this 
17amendatory Act of 1994 from combined
receipts
of the Cigarette 
18Tax Act and the Cigarette Use Tax Act, notwithstanding the

19distribution provided in this Section, the Department of 
20Revenue is hereby
directed to adjust the distribution provided 
21in this Section to increase the
next monthly payments to the 
22Long Term Care Provider Fund by the amount paid to
the General 
23Revenue Fund and Common School Fund in excess of $25,000,000 
24per
month and to decrease the next monthly payments to the 
25General Revenue Fund and
Common School Fund by that same excess 
26amount.

 
 
10100SB0690ham003- 174 -LRB101 04451 SMS 61572 a


1 Beginning on July 1, 2006, all of the moneys received by 
2the Department of Revenue pursuant to this Act and the 
3Cigarette Use Tax Act, other than the moneys that are dedicated 
4to the Common School Fund and, beginning on the effective date 
5of this amendatory Act of the 97th General Assembly, other than 
6the moneys from the additional taxes imposed by this amendatory 
7Act of the 97th General Assembly that must be paid each month 
8into the Healthcare Provider Relief Fund, and other than the 
9moneys from the additional taxes imposed by this amendatory Act 
10of the 101st General Assembly that must be paid each month 
11under subsection (c), shall be distributed each month as 
12follows: first, there shall be paid into the General Revenue 
13Fund an amount that, when added to the amount paid into the 
14Common School Fund for that month, equals $29,200,000; then, 
15from the moneys remaining, if any amounts required to be paid 
16into the General Revenue Fund in previous months remain unpaid, 
17those amounts shall be paid into the General Revenue Fund; then 
18from the moneys remaining, $5,000,000 per month shall be paid 
19into the School Infrastructure Fund; then, if any amounts 
20required to be paid into the School Infrastructure Fund in 
21previous months remain unpaid, those amounts shall be paid into 
22the School Infrastructure Fund; then the moneys remaining, if 
23any, shall be paid into the Long-Term Care Provider Fund.

24 (c) Beginning on July 1, 2019, all of the moneys from the 
25additional taxes imposed by this amendatory Act of the 101st 
26General Assembly received by the Department of Revenue pursuant 
 
 
10100SB0690ham003- 175 -LRB101 04451 SMS 61572 a


1to this Act and the Cigarette Use Tax Act shall be distributed 
2each month into the Capital Projects Fund. 
3 (d) Moneys collected from the tax imposed on little cigars 
4under Section 10-10 of the Tobacco Products Tax Act of 1995 
5shall be included with the moneys collected under the Cigarette 
6Tax Act and the Cigarette Use Tax Act when making distributions 
7to the Common School Fund, the Healthcare Provider Relief Fund, 
8the General Revenue Fund, the School Infrastructure Fund, and 
9the Long-Term Care Provider Fund under this Section. 
10 (e) If the When any tax imposed herein terminates or has 
11terminated, distributors
who have bought stamps while such tax 
12was in effect and who therefore paid
such tax, but who can 
13show, to the Department's satisfaction, that they
sold the 
14cigarettes to which they affixed such stamps after such tax had

15terminated and did not recover the tax or its equivalent from 
16purchasers,
shall be allowed by the Department to take credit 
17for such absorbed tax
against subsequent tax stamp purchases 
18from the Department by such
distributor.

19 (f) The impact of the tax levied by this Act is imposed 
20upon the retailer
and shall be prepaid or pre-collected by the 
21distributor for the purpose of
convenience and facility only, 
22and the amount of the tax shall be added to
the price of the 
23cigarettes sold by such distributor. Collection of the tax

24shall be evidenced by a stamp or stamps affixed to each 
25original package of
cigarettes, as hereinafter provided. Any 
26distributor who purchases stamps may credit any excess payments 
 
 
10100SB0690ham003- 176 -LRB101 04451 SMS 61572 a


1verified by the Department against amounts subsequently due for 
2the purchase of additional stamps, until such time as no excess 
3payment remains. 

4 (g) Each distributor shall collect the tax from the 
5retailer at or before
the time of the sale, shall affix the 
6stamps as hereinafter required, and
shall remit the tax 
7collected from retailers to the Department, as
hereinafter 
8provided. Any distributor who fails to properly collect and pay

9the tax imposed by this Act shall be liable for the tax. Any 
10distributor having
cigarettes to which stamps have been affixed 
11in his possession for sale on the
effective date of this 
12amendatory Act of 1989 shall not be required to pay the

13additional tax imposed by this amendatory Act of 1989 on such 
14stamped
cigarettes. Any distributor having cigarettes to which 
15stamps have been affixed
in his or her possession for sale at 
1612:01 a.m. on the effective date of this
amendatory Act of 
171993, is required to pay the additional tax imposed by this

18amendatory Act of 1993 on such stamped cigarettes. This 
19payment, less the
discount provided in subsection (b), shall be 
20due when the distributor first
makes a purchase of cigarette 
21tax stamps after the effective date of this
amendatory Act of 
221993, or on the first due date of a return under this Act
after 
23the effective date of this amendatory Act of 1993, whichever 
24occurs
first. Any distributor having cigarettes to which stamps 
25have been affixed
in his possession for sale on December 15, 
261997
shall not be required to pay the additional tax imposed by 
 
 
10100SB0690ham003- 177 -LRB101 04451 SMS 61572 a


1this amendatory Act
of 1997 on such stamped cigarettes.

2 Any distributor having cigarettes to which stamps have been 
3affixed in his
or her
possession for sale on July 1, 2002 shall 
4not be required to pay the additional
tax imposed by this 
5amendatory Act of the 92nd General Assembly on those
stamped

6cigarettes.

7 (h) Any distributor having cigarettes in his or her 
8possession on July 1, 2019 to which tax stamps have been 
9affixed, and any distributor having stamps in his or her 
10possession on July 1, 2019 that have not been affixed to 
11packages of cigarettes before July 1, 2019, is required to pay 
12the additional tax that begins on July 1, 2019 imposed by this 
13amendatory Act of the 101st General Assembly to the extent that 
14the volume of affixed and unaffixed stamps in the distributor's 
15possession on July 1, 2019 exceeds the average monthly volume 
16of cigarette stamps purchased by the distributor in calendar 
17year 2018. This payment, less the discount provided in 
18subsection (l), is due when the distributor first makes a 
19purchase of cigarette stamps on or after July 1, 2019 or on the 
20first due date of a return under this Act occurring on or after 
21July 1, 2019, whichever occurs first. Those distributors may 
22elect to pay the additional tax on packages of cigarettes to 
23which stamps have been affixed and on any stamps in the 
24distributor's possession that have not been affixed to packages 
25of cigarettes in their possession on July 1, 2019 over a period 
26not to exceed 12 months from the due date of the additional tax 
 
 
10100SB0690ham003- 178 -LRB101 04451 SMS 61572 a


1by notifying the Department in writing. The first payment for 
2distributors making such election is due when the distributor 
3first makes a purchase of cigarette tax stamps on or after July 
41, 2019 or on the first due date of a return under this Act 
5occurring on or after July 1, 2019, whichever occurs first. 
6Distributors making such an election are not entitled to take 
7the discount provided in subsection (l) on such payments. 
8 (i) Any retailer having cigarettes in its his or her 
9possession on July 1, 2019 June 24, 2012 to which tax stamps 
10have been affixed is not required to pay the additional tax 
11that begins on July 1, 2019 June 24, 2012 imposed by this 
12amendatory Act of the 101st General Assembly this amendatory 
13Act of the 97th General Assembly on those stamped cigarettes. 
14Any distributor having cigarettes in his or her possession on 
15June 24, 2012 to which tax stamps have been affixed, and any 
16distributor having stamps in his or her possession on June 24, 
172012 that have not been affixed to packages of cigarettes 
18before June 24, 2012, is required to pay the additional tax 
19that begins on June 24, 2012 imposed by this amendatory Act of 
20the 97th General Assembly to the extent the calendar year 2012 
21average monthly volume of cigarette stamps in the distributor's 
22possession exceeds the average monthly volume of cigarette 
23stamps purchased by the distributor in calendar year 2011. This 
24payment, less the discount provided in subsection (b), is due 
25when the distributor first makes a purchase of cigarette stamps 
26on or after June 24, 2012 or on the first due date of a return 
 
 
10100SB0690ham003- 179 -LRB101 04451 SMS 61572 a


1under this Act occurring on or after June 24, 2012, whichever 
2occurs first. Those distributors may elect to pay the 
3additional tax on packages of cigarettes to which stamps have 
4been affixed and on any stamps in the distributor's possession 
5that have not been affixed to packages of cigarettes over a 
6period not to exceed 12 months from the due date of the 
7additional tax by notifying the Department in writing. The 
8first payment for distributors making such election is due when 
9the distributor first makes a purchase of cigarette tax stamps 
10on or after June 24, 2012 or on the first due date of a return 
11under this Act occurring on or after June 24, 2012, whichever 
12occurs first. Distributors making such an election are not 
13entitled to take the discount provided in subsection (b) on 
14such payments. 
15 (j) Distributors making sales of cigarettes to secondary 
16distributors shall add the amount of the tax to the price of 
17the cigarettes sold by the distributors. Secondary 
18distributors making sales of cigarettes to retailers shall 
19include the amount of the tax in the price of the cigarettes 
20sold to retailers. The amount of tax shall not be less than the 
21amount of taxes imposed by the State and all local 
22jurisdictions. The amount of local taxes shall be calculated 
23based on the location of the retailer's place of business shown 
24on the retailer's certificate of registration or 
25sub-registration issued to the retailer pursuant to Section 2a 
26of the Retailers' Occupation Tax Act. The original packages of 
 
 
10100SB0690ham003- 180 -LRB101 04451 SMS 61572 a


1cigarettes sold to the retailer shall bear all the required 
2stamps, or other indicia, for the taxes included in the price 
3of cigarettes. 
4 (k) The amount of the Cigarette Tax imposed by this Act 
5shall be separately
stated, apart from the price of the goods, 
6by distributors, manufacturer representatives, secondary 
7distributors, and
retailers, in all bills and sales invoices.

8 (l) (b) The distributor shall be required to collect the 
9tax taxes provided
under paragraph (a) hereof, and, to cover 
10the costs of such collection,
shall be allowed a discount 
11during any year commencing July 1st and ending
the following 
12June 30th in accordance with the schedule set out
hereinbelow, 
13which discount shall be allowed at the time of purchase of the

14stamps when purchase is required by this Act, or at the time 
15when the tax
is remitted to the Department without the purchase 
16of stamps from the
Department when that method of paying the 
17tax is required or authorized by
this Act. Prior to December 1, 
181985, a discount equal to 1 2/3% of
the amount of the tax up to 
19and including the first $700,000 paid hereunder by
such 
20distributor to the Department during any such year; 1 1/3% of 
21the next
$700,000 of tax or any part thereof, paid hereunder by 
22such distributor to the
Department during any such year; 1% of 
23the next $700,000 of tax, or any part
thereof, paid hereunder 
24by such distributor to the Department during any such
year, and 
252/3 of 1% of the amount of any additional tax paid hereunder by 
26such
distributor to the Department during any such year shall 
 
 
10100SB0690ham003- 181 -LRB101 04451 SMS 61572 a


1apply. 
2 On and after
December 1, 1985, a discount equal to 1.75% of 
3the amount of the tax payable
under this Act up to and 
4including the first $3,000,000 paid hereunder by such

5distributor to the Department during any such year and 1.5% of 
6the amount of
any additional tax paid hereunder by such 
7distributor to the Department during
any such year shall apply.

8 Two or more distributors that use a common means of 
9affixing revenue tax
stamps or that are owned or controlled by 
10the same interests shall be
treated as a single distributor for 
11the purpose of computing the discount.

12 (m) (c) The taxes herein imposed are in addition to all 
13other occupation or
privilege taxes imposed by the State of 
14Illinois, or by any political
subdivision thereof, or by any 
15municipal corporation.

16(Source: P.A. 100-1171, eff. 1-4-19.)


17 (35 ILCS 130/29 rep.)
18 Section 15-55. The Cigarette Tax Act is amended by 
19repealing Section 29.

20 Section 15-60. The Cigarette Use Tax Act is amended by 
21changing Sections 2 and 35 as follows:




22 (35 ILCS 135/2) (from Ch. 120, par. 453.32)



23 Sec. 2. 
Beginning on July 1, 2019, in place of the 
 
 
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1aggregate tax rate of 99 mills previously imposed by this Act, 
2a tax is imposed upon the privilege of using cigarettes in this 
3State at the rate of 149 mills per cigarette so used. A tax is 
4imposed upon the privilege of using cigarettes in this
State, 
5at the rate of 6 mills per cigarette so used. On and after

6December 1, 1985, in addition to any other tax imposed by this 
7Act, a tax
is imposed upon the privilege of using cigarettes in 
8this State at a rate
of 4 mills per cigarette so used. On and 
9after the effective date of this
amendatory Act of 1989, in 
10addition to any other tax imposed by this Act, a
tax is imposed 
11upon the privilege of using cigarettes in this State at the

12rate of 5 mills per cigarette so used. On and after the 
13effective date of this
amendatory Act of 1993, in addition to 
14any other tax imposed by this Act, a tax
is imposed upon the 
15privilege of using cigarettes in this State at a rate of 7

16mills per cigarette so used. On and after December 15,
1997, in 
17addition to any other tax imposed by this Act, a tax
is imposed 
18upon the privilege of using cigarettes in this State at a rate 
19of
7 mills per cigarette so used.
On and after July 1, 2002, in 
20addition to any other tax imposed by
this Act, a tax is imposed

21upon the privilege of using cigarettes in this State at a rate 
22of 20.0 mills
per cigarette so used. Beginning on June 24, 
232012, in addition to any other tax imposed by this Act, a tax 
24is imposed upon the privilege of using cigarettes in this State 
25at a rate of 50 mills per cigarette so used.
The tax taxes 
26herein imposed shall be in
addition to
all other occupation or 
 
 
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1privilege taxes imposed by the State of Illinois or by
any 
2political subdivision thereof or by any municipal corporation.

3 If the When any tax imposed herein terminates or has 
4terminated, distributors
who have bought stamps while such tax 
5was in effect and who therefore paid
such tax, but who can 
6show, to the Department's satisfaction, that they
sold the 
7cigarettes to which they affixed such stamps after such tax had

8terminated and did not recover the tax or its equivalent from 
9purchasers,
shall be allowed by the Department to take credit 
10for such absorbed tax
against subsequent tax stamp purchases 
11from the Department by such
distributors.

12 When the word "tax" is used in this Act, it shall include 
13any tax or tax
rate imposed by this Act and shall mean the 
14singular of "tax" or the plural
"taxes" as the context may 
15require.

16 Any retailer having cigarettes in its possession on July 1, 
172019 to which tax stamps have been affixed is not required to 
18pay the additional tax that begins on July 1, 2019 imposed by 
19this amendatory Act of the 101st General Assembly on those 
20stamped cigarettes. Any distributor having cigarettes in his or 
21her possession on July 1, 2019 to which tax stamps have been 
22affixed, and any distributor having stamps in his or her 
23possession on July 1, 2019 that have not been affixed to 
24packages of cigarettes before July 1, 2019, is required to pay 
25the additional tax that begins on July 1, 2019 imposed by this 
26amendatory Act of the 101st General Assembly to the extent that 
 
 
10100SB0690ham003- 184 -LRB101 04451 SMS 61572 a


1the volume of affixed and unaffixed stamps in the distributor's 
2possession on July 1, 2019 exceeds the average monthly volume 
3of cigarette stamps purchased by the distributor in calendar 
4year 2018. This payment, less the discount provided in Section 
53, is due when the distributor first makes a purchase of 
6cigarette stamps on or after July 1, 2019 or on the first due 
7date of a return under this Act occurring on or after July 1, 
82019, whichever occurs first. Those distributors may elect to 
9pay the additional tax on packages of cigarettes to which 
10stamps have been affixed and on any stamps in the distributor's 
11possession that have not been affixed to packages of cigarettes 
12in their possession on July 1, 2019 over a period not to exceed 
1312 months from the due date of the additional tax by notifying 
14the Department in writing. The first payment for distributors 
15making such election is due when the distributor first makes a 
16purchase of cigarette tax stamps on or after July 1, 2019 or on 
17the first due date of a return under this Act occurring on or 
18after July 1, 2019, whichever occurs first. Distributors making 
19such an election are not entitled to take the discount provided 
20in Section 3 on such payments. 
21 Any distributor having cigarettes to which stamps have been 
22affixed in
his possession for sale on the effective date of 
23this amendatory Act of
1989 shall not be required to pay the 
24additional tax imposed by this
amendatory Act of 1989 on such 
25stamped cigarettes. Any distributor having
cigarettes to which 
26stamps have been affixed in his or her possession for sale
at 
 
 
10100SB0690ham003- 185 -LRB101 04451 SMS 61572 a


112:01 a.m. on the effective date of this amendatory Act of 
21993, is required
to pay the additional tax imposed by this 
3amendatory Act of 1993 on such
stamped cigarettes. This payment 
4shall be due when the distributor first makes
a purchase of 
5cigarette tax stamps after the effective date of this 
6amendatory
Act of 1993, or on the first due date of a return 
7under this Act after the
effective date of this amendatory Act 
8of 1993, whichever occurs first. Once a
distributor tenders 
9payment of the additional tax to the Department, the

10distributor may purchase stamps from the Department.
Any 
11distributor having cigarettes to which stamps have been affixed

12in his possession for sale on December 15, 1997
shall not be 
13required to pay the additional tax imposed by this amendatory 
14Act
of 1997 on such stamped cigarettes.

15 Any distributor having cigarettes to which stamps have been 
16affixed in his
or her possession for sale on July 1, 2002 shall 
17not be required to pay the
additional
tax imposed by this 
18amendatory Act of the 92nd General Assembly on those
stamped

19cigarettes.

20 Any retailer having cigarettes in his or her possession on 
21June 24, 2012 to which tax stamps have been affixed is not 
22required to pay the additional tax that begins on June 24, 2012 
23imposed by this amendatory Act of the 97th General Assembly on 
24those stamped cigarettes. Any distributor having cigarettes in 
25his or her possession on June 24, 2012 to which tax stamps have 
26been affixed, and any distributor having stamps in his or her 
 
 
10100SB0690ham003- 186 -LRB101 04451 SMS 61572 a


1possession on June 24, 2012 that have not been affixed to 
2packages of cigarettes before June 24, 2012, is required to pay 
3the additional tax that begins on June 24, 2012 imposed by this 
4amendatory Act of the 97th General Assembly to the extent the 
5calendar year 2012 average monthly volume of cigarette stamps 
6in the distributor's possession exceeds the average monthly 
7volume of cigarette stamps purchased by the distributor in 
8calendar year 2011. This payment, less the discount provided in 
9Section 3, is due when the distributor first makes a purchase 
10of cigarette stamps on or after June 24, 2012 or on the first 
11due date of a return under this Act occurring on or after June 
1224, 2012, whichever occurs first. Those distributors may elect 
13to pay the additional tax on packages of cigarettes to which 
14stamps have been affixed and on any stamps in the distributor's 
15possession that have not been affixed to packages of cigarettes 
16over a period not to exceed 12 months from the due date of the 
17additional tax by notifying the Department in writing. The 
18first payment for distributors making such election is due when 
19the distributor first makes a purchase of cigarette tax stamps 
20on or after June 24, 2012 or on the first due date of a return 
21under this Act occurring on or after June 24, 2012, whichever 
22occurs first. Distributors making such an election are not 
23entitled to take the discount provided in Section 3 on such 
24payments. 
25(Source: P.A. 97-688, eff. 6-14-12.)





 
 
10100SB0690ham003- 187 -LRB101 04451 SMS 61572 a


1 (35 ILCS 135/35) (from Ch. 120, par. 453.65)



2 Sec. 35. Distribution of receipts. All moneys received by 
3the Department under this Act shall be distributed as
provided 
4in subsection (a) of Section 2 of the Cigarette Tax Act.

5(Source: P.A. 88-535.)


6 Section 15-65. The Tobacco Products Tax Act of 1995 is 
7amended by changing Sections 10-5 and 10-10 as follows:



8 (35 ILCS 143/10-5)



9 Sec. 10-5. Definitions. For purposes of this Act:

10 "Business" means any trade, occupation, activity, or 
11enterprise engaged
in, at any location whatsoever, for the 
12purpose of selling tobacco products.

13 "Cigarette" has the meaning ascribed to the term in Section 
141 of the
Cigarette Tax Act.

15 "Contraband little cigar" means: 
16  (1) packages of little cigars containing 20 or 25 
17 little cigars that do not bear a required tax stamp under 
18 this Act; 
19  (2) packages of little cigars containing 20 or 25 
20 little cigars that bear a fraudulent, imitation, or 
21 counterfeit tax stamp; 
22  (3) packages of little cigars containing 20 or 25 
23 little cigars that are improperly tax stamped, including 
24 packages of little cigars that bear only a tax stamp of 
 
 
10100SB0690ham003- 188 -LRB101 04451 SMS 61572 a


1 another state or taxing jurisdiction; or 
2  (4) packages of little cigars containing other than 20 
3 or 25 little cigars in the possession of a distributor, 
4 retailer or wholesaler, unless the distributor, retailer, 
5 or wholesaler possesses, or produces within the time frame 
6 provided in Section 10-27 or 10-28 of this Act, an invoice 
7 from a stamping distributor, distributor, or wholesaler 
8 showing that the tax on the packages has been or will be 
9 paid. 
10 "Correctional Industries program" means a program run by a 
11State penal
institution in which residents of the penal 
12institution produce tobacco
products for sale to persons 
13incarcerated in penal institutions or resident
patients of a 
14State operated mental health facility.

15 "Department" means the Illinois Department of Revenue.

16 "Distributor" means any of the following:

17  (1) Any manufacturer or wholesaler in this State 
18 engaged in the business
of selling tobacco products who 
19 sells, exchanges, or distributes tobacco
products to 
20 retailers or consumers in this State.

21  (2) Any manufacturer or wholesaler engaged
in
the 
22 business of selling tobacco products from without this 
23 State who sells,
exchanges, distributes,
ships, or 
24 transports tobacco products to retailers or consumers 
25 located in
this State,
so long as that manufacturer or 
26 wholesaler has or maintains within this State,
directly or 
 
 
10100SB0690ham003- 189 -LRB101 04451 SMS 61572 a


1 by subsidiary, an office, sales house, or other place of 
2 business,
or any agent or other representative operating 
3 within this State under the
authority of the person or 
4 subsidiary, irrespective of whether the place of
business 
5 or agent or other representative is located here 
6 permanently or
temporarily.

7  (3) Any retailer who receives tobacco products on which 
8 the tax has not
been or
will not be paid by another 
9 distributor.

10 "Distributor" does not include any person, wherever 
11resident or located, who
makes, manufactures, or fabricates 
12tobacco products as part of a Correctional
Industries program 
13for sale to residents incarcerated in penal institutions or

14resident patients of a State operated mental health facility.

15 "Electronic cigarette" means:
16  (1) any device that employs a battery or other 
17 mechanism to
heat a solution or substance to produce a 
18 vapor or aerosol
intended for inhalation;
19  (2) any cartridge or container of a solution or 
20 substance
intended to be used with or in the device or to 
21 refill the
device; or
22  (3) any solution or substance, whether or not it 
23 contains
nicotine, intended for use in the device.
24 "Electronic cigarette"
includes, but is not limited to, any 
25electronic nicotine
delivery system, electronic cigar, 
26electronic cigarillo,
electronic pipe, electronic hookah, vape 
 
 
10100SB0690ham003- 190 -LRB101 04451 SMS 61572 a


1pen, or similar product
or device, and any component or part 
2that can be used to build
the product or device. "Electronic 
3cigarette" does not include:
cigarettes, as defined in Section 
41 of the Cigarette Tax Act; any
product approved by the United 
5States Food and Drug
Administration for sale as a tobacco 
6cessation product, a
tobacco dependence product, or for other 
7medical purposes that
is marketed and sold solely for that 
8approved purpose; any
asthma inhaler prescribed by a physician 
9for that condition that is marketed and sold solely for that 
10approved purpose; or
any therapeutic product approved for use 
11under the Compassionate
Use of Medical Cannabis Pilot Program 
12Act. 
13 "Little cigar" means and includes any roll, made wholly or 
14in part of tobacco, where such roll has an integrated cellulose 
15acetate filter and weighs less than 4 pounds per thousand and 
16the wrapper or cover of which is made in whole or in part of 
17tobacco. 
18 "Manufacturer" means any person, wherever resident or 
19located, who
manufactures and sells tobacco products, except a 
20person who makes,
manufactures, or fabricates tobacco products 
21as a part of a Correctional
Industries program for sale to 
22persons incarcerated in penal institutions or
resident 
23patients of a State operated mental health facility.

24 Beginning on January 1, 2013, "moist snuff" means any 
25finely cut, ground, or powdered tobacco that is not intended to 
26be smoked, but shall not include any finely cut, ground, or 
 
 
10100SB0690ham003- 191 -LRB101 04451 SMS 61572 a


1powdered tobacco that is intended to be placed in the nasal 
2cavity. 
3 "Person" means any natural individual, firm, partnership, 
4association, joint
stock company, joint venture, limited 
5liability company, or public or private
corporation, however 
6formed, or a receiver, executor, administrator, trustee,

7conservator, or other representative appointed by order of any 
8court.

9 "Place of business" means and includes any place where 
10tobacco products
are sold or where tobacco products are 
11manufactured, stored, or kept for
the purpose of sale or 
12consumption, including any vessel, vehicle, airplane,
train, 
13or vending machine.

14 "Retailer" means any person in this State engaged in the 
15business of selling
tobacco products to consumers in this 
16State, regardless of quantity or number
of sales.

17 "Sale" means any transfer, exchange, or barter in any 
18manner or by any means
whatsoever for a consideration and 
19includes all sales made by
persons.

20 "Stamp" or "stamps" mean the indicia required to be affixed 
21on a package of little cigars that evidence payment of the tax 
22on packages of little cigars containing 20 or 25 little cigars 
23under Section 10-10 of this Act. These stamps shall be the same 
24stamps used for cigarettes under the Cigarette Tax Act. 
25 "Stamping distributor" means a distributor licensed under 
26this Act and also licensed as a distributor under the Cigarette 
 
 
10100SB0690ham003- 192 -LRB101 04451 SMS 61572 a


1Tax Act or Cigarette Use Tax Act. 
2 "Tobacco products" means any cigars, including little 
3cigars; cheroots; stogies; periques; granulated,
plug cut, 
4crimp cut, ready rubbed, and other smoking tobacco; snuff 
5(including moist snuff) or snuff
flour; cavendish; plug and 
6twist tobacco; fine-cut and other chewing tobaccos;
shorts; 
7refuse scraps, clippings, cuttings, and sweeping of tobacco; 
8and
other kinds and forms of tobacco, prepared in such manner 
9as to be suitable for
chewing or smoking in a pipe or 
10otherwise, or both for chewing and smoking; but
does not 
11include cigarettes as defined in Section 1 of the Cigarette Tax 
12Act or tobacco purchased for the manufacture of
cigarettes by 
13cigarette distributors and manufacturers defined in the

14Cigarette Tax Act and persons who make, manufacture, or 
15fabricate
cigarettes as a part of a Correctional Industries 
16program for sale to
residents incarcerated in penal 
17institutions or resident patients of a
State operated mental 
18health facility.

19 Beginning on July 1, 2019, "tobacco products" also includes

20electronic cigarettes. 
21 "Wholesale price" means the established list price for 
22which a manufacturer
sells tobacco products to a distributor, 
23before the allowance of any discount,
trade allowance, rebate, 
24or other reduction.
In the absence of such an established list 
25price, the manufacturer's invoice
price at which the 
26manufacturer sells the tobacco product to unaffiliated

 
 
10100SB0690ham003- 193 -LRB101 04451 SMS 61572 a


1distributors, before any discounts, trade allowances, rebates, 
2or other
reductions, shall be presumed to be the wholesale 
3price.

4 "Wholesaler" means any person, wherever resident or 
5located, engaged in the
business of selling tobacco products to 
6others for the purpose of resale. "Wholesaler", when used in 
7this Act, does not include a person licensed as a distributor 
8under Section 10-20 of this Act unless expressly stated in this 
9Act. 

10(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13; 
1198-1055, eff. 1-1-16.)





12 (35 ILCS 143/10-10)



13 Sec. 10-10. Tax imposed. 
14 (a) Except as otherwise provided in this Section with 
15respect to little cigars, on the first day of the third month 
16after the
month in which this Act becomes law, a tax is imposed 
17on any person engaged in
business as a distributor of tobacco 
18products, as defined in Section 10-5,
at the rate of (i) 18% of 
19the wholesale price of tobacco products sold or otherwise

20disposed of to retailers or consumers located in this State 
21prior to July 1, 2012 and (ii) 36% of the wholesale price of 
22tobacco products sold or otherwise
disposed of to retailers or 
23consumers located in this State beginning on July 1, 2012; 
24except that, beginning on January 1, 2013, the tax on moist 
25snuff shall be imposed at a rate of $0.30 per ounce, and a 
 
 
10100SB0690ham003- 194 -LRB101 04451 SMS 61572 a


1proportionate tax at the like rate on all fractional parts of 
2an ounce, sold or otherwise
disposed of to retailers or 
3consumers located in this State; and except that, beginning 
4July 1, 2019,
the tax on electronic cigarettes shall be imposed 
5at the rate of
15% of the wholesale price of electronic 
6cigarettes sold or
otherwise disposed of to retailers or 
7consumers located in this
State. The tax is in
addition to all 
8other
occupation or privilege taxes imposed by the State of 
9Illinois, by any
political subdivision thereof, or by any 
10municipal corporation. However, the
tax is not imposed upon any 
11activity in that business in interstate commerce or
otherwise, 
12to the extent to which that activity may not, under the 
13Constitution
and Statutes of the United States, be made the 
14subject of taxation by this
State, and except that, beginning 
15July 1, 2013, the tax on little cigars shall be imposed at the 
16same rate, and the proceeds shall be distributed in the same 
17manner, as the tax imposed on cigarettes under the Cigarette 
18Tax Act. The tax is also not imposed on sales made to the 
19United States or any
entity thereof.

20 (b) Notwithstanding subsection (a) of this Section, 
21stamping distributors of packages of little cigars containing 
2220 or 25 little cigars sold or otherwise disposed of in this 
23State shall remit the tax by purchasing tax stamps from the 
24Department and affixing them to packages of little cigars in 
25the same manner as stamps are purchased and affixed to 
26cigarettes under the Cigarette Tax Act, unless the stamping 
 
 
10100SB0690ham003- 195 -LRB101 04451 SMS 61572 a


1distributor sells or otherwise disposes of those packages of 
2little cigars to another stamping distributor. Only persons 
3meeting the definition of "stamping distributor" contained in 
4Section 10-5 of this Act may affix stamps to packages of little 
5cigars containing 20 or 25 little cigars. Stamping distributors 
6may not sell or dispose of little cigars at retail to consumers 
7or users at locations where stamping distributors affix stamps 
8to packages of little cigars containing 20 or 25 little cigars. 
9 (c) The impact of the tax levied by this Act is imposed 
10upon distributors engaged in the business of selling tobacco 
11products to retailers or consumers in this State. Whenever a 
12stamping distributor brings or causes to be brought into this 
13State from without this State, or purchases from without or 
14within this State, any packages of little cigars containing 20 
15or 25 little cigars upon which there are no tax stamps affixed 
16as required by this Act, for purposes of resale or disposal in 
17this State to a person not a stamping distributor, then such 
18stamping distributor shall pay the tax to the Department and 
19add the amount of the tax to the price of such packages sold by 
20such stamping distributor. Payment of the tax shall be 
21evidenced by a stamp or stamps affixed to each package of 
22little cigars containing 20 or 25 little cigars. 
23 Stamping distributors paying the tax to the Department on 
24packages of little cigars containing 20 or 25 little cigars 
25sold to other distributors, wholesalers or retailers shall add 
26the amount of the tax to the price of the packages of little 
 
 
10100SB0690ham003- 196 -LRB101 04451 SMS 61572 a


1cigars containing 20 or 25 little cigars sold by such stamping 
2distributors. 
3 (d) Beginning on January 1, 2013, the tax rate imposed per 
4ounce of moist snuff may not exceed 15% of the tax imposed upon 
5a package of 20 cigarettes pursuant to the Cigarette Tax Act. 
6 (e) All moneys received by the Department under this Act 
7from sales occurring prior to July 1, 2012 shall be paid into

8the Long-Term Care Provider Fund of the State Treasury. Of the 
9moneys received by the Department from sales occurring on or 
10after July 1, 2012, except for moneys received from the tax 
11imposed on the sale of little cigars, 50% shall be paid into 
12the Long-Term Care Provider Fund and 50% shall be paid into the 
13Healthcare Provider Relief Fund. Beginning July 1, 2013, all 
14moneys received by the Department under this Act from the tax 
15imposed on little cigars shall be distributed as provided in 
16subsection (a) of Section 2 of the Cigarette Tax Act. 

17(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)


18 Section 15-75. The Motor Vehicle Retail Installment Sales 
19Act is amended by changing Section 11.1 as follows:




20 (815 ILCS 375/11.1) (from Ch. 121 1/2, par. 571.1)



21 Sec. 11.1.  
22 (a) A seller in a retail installment contract may add a 
23"documentary
fee" for processing documents and performing 
24services related to closing of a
sale. The maximum amount that 
 
 
10100SB0690ham003- 197 -LRB101 04451 SMS 61572 a


1may be charged by a seller for a documentary fee
is the base 
2documentary fee beginning January 1, 2008 until January 1, 
32020, of $150, which shall be
subject to an annual rate 
4adjustment equal to the percentage of change in the
Bureau of 
5Labor Statistics Consumer Price Index. Every retail 
6installment
contract under this Act shall contain or be 
7accompanied by a notice containing
the following information:

8 "DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. 
9A
DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO 
10BUYERS FOR
HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED 
11TO CLOSING OF A SALE.
THE BASE DOCUMENTARY FEE BEGINNING 
12JANUARY 1, 2008, WAS $150. THE MAXIMUM
AMOUNT THAT MAY BE 
13CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE
OF 
14$150, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL 
15TO THE
PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS 
16CONSUMER PRICE INDEX.
THIS NOTICE IS REQUIRED BY LAW."

17 (b) A seller in a retail installment contract may add a 
18"documentary
fee" for processing documents and performing 
19services related to closing of a
sale. The maximum amount that 
20may be charged by a seller for a documentary fee
is the base 
21documentary fee beginning January 1, 2020, of $300, which shall 
22be
subject to an annual rate adjustment equal to the percentage 
23of change in the
Bureau of Labor Statistics Consumer Price 
24Index. Every retail installment
contract under this Act shall 
25contain or be accompanied by a notice containing
the following 
26information:
 
 
10100SB0690ham003- 198 -LRB101 04451 SMS 61572 a


1 "DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. 
2A
DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO 
3BUYERS FOR
HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED 
4TO CLOSING OF A SALE.
THE BASE DOCUMENTARY FEE BEGINNING 
5JANUARY 1, 2020, WAS $300. THE MAXIMUM
AMOUNT THAT MAY BE 
6CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE
OF 
7$300, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL 
8TO THE
PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS 
9CONSUMER PRICE INDEX.
THIS NOTICE IS REQUIRED BY LAW." 
10(Source: P.A. 95-280, eff. 1-1-08.)


11
Article 20.  Illinois Works Jobs Program Act


12 Section 20-1. Short title. This Article may be cited as the 
13Illinois Works Jobs Program Act. References in this Article to 
14"this Act" mean
this Article.

15 Section 20-5. Findings. It is in the public policy interest 
16of the State to ensure that all Illinois residents have access 
17to State capital projects and careers in the construction 
18industry and building trades, including those who have been 
19historically underrepresented in those trades. To ensure that 
20those interests are met, the General Assembly hereby creates 
21the Illinois Works Preapprenticeship Program and the Illinois 
22Works Apprenticeship Initiative. 

 
 
10100SB0690ham003- 199 -LRB101 04451 SMS 61572 a


1 Section 20-10. Definitions. 
2 "Apprentice" means a participant in an apprenticeship 
3program approved by and registered with the United States 
4Department of Labor's Bureau of Apprenticeship and Training. 
5 "Apprenticeship program" means an apprenticeship and 
6training program approved by and registered with the United 
7States Department of Labor's Bureau of Apprenticeship and 
8Training. 
9 "Bid credit" means a virtual dollar for a contractor or 
10subcontractor to use toward future bids for public works 
11contracts. 
12 "Community-based organization" means a nonprofit 
13organization selected by the Department to participate in the 
14Illinois Works Preapprenticeship Program. To qualify as a 
15"community-based organization", the organization must 
16demonstrate the following: 
17  (1) the ability to effectively serve diverse and 
18 underrepresented populations, including by providing 
19 employment services to such populations;
20  (2) knowledge of the construction and building trades;
21  (3) the ability to recruit, prescreen, and provide 
22 preapprenticeship training to prepare workers for 
23 employment in the construction and building trades; and
24  (4) a plan to provide the following:
25   (A) preparatory classes;
26   (B) workplace readiness skills, such as resume 
 
 
10100SB0690ham003- 200 -LRB101 04451 SMS 61572 a


1 preparation and interviewing techniques; 
2   (C) strategies for overcoming barriers to entry 
3 and completion of an apprenticeship program; and
4   (D) any prerequisites for acceptance into an 
5 apprenticeship program. 
6 "Contractor" means a person, corporation, partnership, 
7limited liability company, or joint venture entering into a 
8contract with the State or any State agency to construct a 
9public work.
10 "Department" means the Department of Commerce and Economic 
11Opportunity.
12 "Labor hours" means the total hours for workers who are 
13receiving an hourly wage and who are directly employed for the 
14public works project. "Labor hours" includes hours performed by 
15workers employed by the contractor and subcontractors on the 
16public works project. "Labor hours" does not include hours 
17worked by the forepersons, superintendents, owners, and 
18workers who are not subject to prevailing wage requirements. 
19 "Minorities" means minority persons as defined in the 
20Business Enterprise for Minorities, Women, and Persons with 
21Disabilities Act.
22 "Public works" means all projects that constitute public 
23works under the Prevailing Wage Act.
24 "Subcontractor" means a person, corporation, partnership, 
25limited liability company, or joint venture that has contracted 
26with the contractor to perform all or part of the work to 
 
 
10100SB0690ham003- 201 -LRB101 04451 SMS 61572 a


1construct a public work by a contractor. 
2 "Underrepresented populations" means populations 
3identified by the Department that historically have had 
4barriers to entry or advancement in the workforce. 
5"Underrepresented populations" includes, but is not limited 
6to, minorities, women, and veterans.

7 Section 20-15. Illinois Works Preapprenticeship Program; 
8Illinois Works Bid Credit Program. 
9 (a) The Illinois Works Preapprenticeship Program is 
10established and shall be administered by the Department. The 
11goal of the Illinois Works Preapprenticeship Program is to 
12create a network of community-based organizations throughout 
13the State that will recruit, prescreen, and provide 
14preapprenticeship skills training to create a qualified, 
15diverse pipeline of workers who are prepared for careers in the 
16construction and building trades. Upon completion of the 
17Illinois Works Preapprenticeship Program, the candidates will 
18be skilled and work-ready. 
19 (b) There is created the Illinois Works Fund, a special 
20fund in the State treasury. The Illinois Works Fund shall be 
21administered by the Department. The Illinois Works Fund shall 
22be used to provide funding for community-based organizations 
23throughout the State. In addition to any other transfers that 
24may be provided for by law, on and after July 1, 2019 and until 
25June 30, 2020, at the direction of the Director of the 
 
 
10100SB0690ham003- 202 -LRB101 04451 SMS 61572 a


1Governor's Office of Management and Budget, the State 
2Comptroller shall direct and the State Treasurer shall transfer 
3amounts not exceeding a total of $25,000,000 from the Rebuild 
4Illinois Projects Fund to the Illinois Works Fund.
5 (c) Each community-based organization that receives 
6funding from the Illinois Works Fund shall provide an annual 
7report to the Illinois Works Review Panel by April 1 of each 
8calendar year. The annual report shall include the following 
9information: 
10  (1) a description of the community-based 
11 organization's recruitment, screening, and training 
12 efforts; 
13  (2) the number of individuals who apply to, participate 
14 in, and complete the community-based organization's 
15 program, broken down by race, gender, age, and veteran 
16 status; and
17  (3) the number of the individuals referenced in item 
18 (2) of this subsection who are initially accepted and 
19 placed into apprenticeship programs in the construction 
20 and building trades. 
21 (d) The Department shall create and administer the Illinois 
22Works Bid Credit Program that shall provide economic 
23incentives, through bid credits, to encourage contractors and 
24subcontractors to provide contracting and employment 
25opportunities to historically underrepresented populations in 
26the construction industry. 
 
 
10100SB0690ham003- 203 -LRB101 04451 SMS 61572 a


1 The Illinois Works Bid Credit Program shall allow 
2contractors and subcontractors to earn bid credits for use 
3toward future bids for public works projects in order to 
4increase the chances that the contractor and the subcontractors 
5will be selected.
6 Contractors or subcontractors may be eligible for bid 
7credits for employing apprentices who have completed the 
8Illinois Works Preapprenticeship Program. Contractors or 
9subcontractors shall earn bid credits at a rate established by 
10the Department and published on the Department's website, 
11including any appropriate caps. 
12 The Illinois Works Credit Bank is hereby created and shall 
13be administered by the Department. The Illinois Works Credit 
14Bank shall track the bid credits. 
15 A contractor or subcontractor who has been awarded bid 
16credits under any other State program for employing apprentices 
17who have completed the Illinois Works Preapprenticeship 
18Program is not eligible to receive bid credits under the 
19Illinois Works Bid Credit Program relating to the same 
20contract.
21 The Department shall report to the Illinois Works Review 
22Panel the following: (i) the number of bid credits awarded by 
23the Department; (ii) the number of bid credits submitted by the 
24contractor or subcontractor to the agency administering the 
25public works contract; and (iii) the number of bid credits 
26accepted by the agency for such contract. Any agency that 
 
 
10100SB0690ham003- 204 -LRB101 04451 SMS 61572 a


1awards bid credits pursuant to the Illinois Works Credit Bank 
2Program shall report to the Department the number of bid 
3credits it accepted for the public works contract.
4 Upon a finding that a contractor or subcontractor has 
5reported falsified records to the Department in order to 
6fraudulently obtain bid credits, the Department shall 
7permanently bar the contractor or subcontractor from 
8participating in the Illinois Works Bid Credit Program and may 
9suspend the contractor or subcontractor from bidding on or 
10participating in any public works project. False or fraudulent 
11claims for payment relating to false bid credits may be subject 
12to damages and penalties under applicable law. 
13 (e) The Department shall adopt any rules deemed necessary 
14to implement this Section. 

15 Section 20-20. Illinois Works Apprenticeship Initiative. 
16 (a) The Illinois Works Apprenticeship Initiative is 
17established and shall be administered by the Department. 
18  (1) Subject to the exceptions set forth in subsection 
19 (b) of this Section, apprentices shall be utilized on all 
20 public works projects in accordance with this subsection 
21 (a). 
22  (2) For public works projects, the goal of the Illinois 
23 Works Apprenticeship Initiative is that apprentices will 
24 perform either 10% of the total labor hours actually worked 
25 in each prevailing wage classification or 10% of the 
 
 
10100SB0690ham003- 205 -LRB101 04451 SMS 61572 a


1 estimated labor hours in each prevailing wage 
2 classification, whichever is less.
3 (b) Before or during the term of a contract subject to this 
4Section, the Department may reduce or waive the goals set forth 
5in paragraph (2) of subsection (a). Prior to the Department 
6granting a request for a reduction or waiver, the Department 
7shall hold a public hearing and shall consult with the Business 
8Enterprise Council under the Business Enterprise for 
9Minorities, Women, and Persons with Disabilities Act and the 
10Chief Procurement Officer of the agency administering the 
11public works contract. The Department may grant a reduction or 
12waiver upon a determination that: 
13  (1) the contractor or subcontractor has demonstrated 
14 that insufficient apprentices are available; 
15  (2) the reasonable and necessary requirements of the 
16 contract do not allow the goal to be met;
17  (3) there is a disproportionately high ratio of 
18 material costs to labor hours that makes meeting the goal 
19 infeasible; or
20  (4) apprentice labor hour goals conflict with existing 
21 requirements, including federal requirements, in 
22 connection with the public work. 
23 (c) Contractors and subcontractors must submit a 
24certification to the Department and the agency that is 
25administering the contract demonstrating that the contractor 
26or subcontractor has either:
 
 
10100SB0690ham003- 206 -LRB101 04451 SMS 61572 a


1  (1) met the apprentice labor hour goals set forth in 
2 paragraph (2) of subsection (a); or 
3  (2) received a reduction or waiver pursuant to 
4 subsection (b). 
5 It shall be deemed to be a material breach of the contract 
6and entitle the State to declare a default, terminate the 
7contract, and exercise those remedies provided for in the 
8contract, at law, or in equity if the contractor or 
9subcontractor fails to submit the certification required in 
10this subsection or submits false or misleading information. 
11 (d) No later than one year after the effective date of this 
12Act, and by April 1 of every calendar year thereafter, the 
13Department of Labor shall submit a report to the Illinois Works 
14Review Panel regarding the use of apprentices under the 
15Illinois Works Apprenticeship Initiative for public works 
16projects. To the extent it is available, the report shall 
17include the following information: 
18  (1) the total number of labor hours on each project and 
19 the percentage of labor hours actually worked by 
20 apprentices on each public works project; 
21  (2) the number of apprentices used in each public works 
22 project, broken down by trade; and 
23  (3) the number and percentage of minorities, women, and 
24 veterans utilized as apprentices on each public works 
25 project. 
26 (e) The Department shall adopt any rules deemed necessary 
 
 
10100SB0690ham003- 207 -LRB101 04451 SMS 61572 a


1to implement the Illinois Works Apprenticeship Initiative.
2 (f) The Illinois Works Apprenticeship Initiative shall not 
3interfere with any contracts or program in existence on the 
4effective date of this Act. 

5 Section 20-25. The Illinois Works Review Panel. 
6 (a) The Illinois Works Review Panel is created and shall be 
7comprised of 11 members, each serving 3-year terms. The Speaker 
8of the House of Representatives and the President of the Senate 
9shall each appoint 2 members. The Minority Leader of the House 
10of Representatives and the Minority Leader of the Senate shall 
11each appoint one member. The Director of Commerce and Economic 
12Opportunity, or his or her designee, shall serve as a member. 
13The Governor shall appoint the following individuals to serve 
14as members: a representative from a contractor organization; a 
15representative from a labor organization; and 2 members of the 
16public with workforce development expertise, one of whom shall 
17be a representative of a nonprofit organization that addresses 
18workforce development. 
19 (b) The members of the Illinois Works Review Panel shall 
20make recommendations to the Department regarding 
21identification and evaluation of community-based 
22organizations. 
23 (c) The Illinois Works Review Panel shall meet, at least 
24quarterly, to review and evaluate (i) the Illinois Works 
25Preapprenticeship Program and the Illinois Works 
 
 
10100SB0690ham003- 208 -LRB101 04451 SMS 61572 a


1Apprenticeship Initiative, (ii) ideas to diversify the 
2workforce in the construction industry in Illinois, and (iii) 
3workforce demographic data collected by the Illinois 
4Department of Labor.
5 (d) All State contracts shall include a requirement that 
6the contractor and subcontractor shall, upon reasonable 
7notice, appear before and respond to requests for information 
8from the Illinois Works Review Panel. 
9 (e) By August 1, 2020, and every August 1 thereafter, the 
10Illinois Works Review Panel shall report to the General 
11Assembly on its evaluation of the Illinois Works 
12Preapprenticeship Program and the Illinois Works 
13Apprenticeship initiative, including any recommended 
14modifications.

15 Section 20-900. The State Finance Act is amended by adding 
16Section 5.895 as follows:

17 (30 ILCS 105/5.895 new)
18 Sec. 5.895. The Illinois Works Fund.

19 Section 20-905. The Illinois Procurement Code is amended by 
20changing Section 20-10 as follows:


21 (30 ILCS 500/20-10)

 
22 (Text of Section from P.A. 96-159, 96-588, 97-96, 97-895, 
 
 
10100SB0690ham003- 209 -LRB101 04451 SMS 61572 a


198-1076, 99-906 and 100-43)
2 Sec. 20-10. Competitive sealed bidding; reverse auction. 

3 (a) Conditions for use. All contracts shall be awarded by

4competitive sealed bidding
except as otherwise provided in 
5Section 20-5.

6 (b) Invitation for bids. An invitation for bids shall be

7issued and shall include a
purchase description and the 
8material contractual terms and
conditions applicable to the

9procurement.

10 (c) Public notice. Public notice of the invitation for bids 
11shall be
published in the Illinois Procurement Bulletin at 
12least 14 calendar days before the date
set in the invitation 
13for the opening of bids.

14 (d) Bid opening. Bids shall be opened publicly or through 
15an electronic procurement system in the
presence of one or more 
16witnesses
at the time and place designated in the invitation 
17for bids. The
name of each bidder, including earned and applied 
18bid credit from the Illinois Works Jobs Program Act, the amount

19of each bid, and other relevant information as may be specified 
20by
rule shall be
recorded. After the award of the contract, the 
21winning bid and the
record of each unsuccessful bid shall be 
22open to
public inspection.

23 (e) Bid acceptance and bid evaluation. Bids shall be

24unconditionally accepted without
alteration or correction, 
25except as authorized in this Code. Bids
shall be evaluated 
26based on the
requirements set forth in the invitation for bids, 
 
 
10100SB0690ham003- 210 -LRB101 04451 SMS 61572 a


1which may
include criteria to determine
acceptability such as 
2inspection, testing, quality, workmanship,
delivery, and 
3suitability for a
particular purpose. Those criteria that will 
4affect the bid price and be considered in evaluation
for award, 
5such as discounts, transportation costs, and total or
life 
6cycle costs, shall be
objectively measurable. The invitation 
7for bids shall set forth
the evaluation criteria to be used.

8 (f) Correction or withdrawal of bids. Correction or

9withdrawal of inadvertently
erroneous bids before or after 
10award, or cancellation of awards of
contracts based on bid

11mistakes, shall be permitted in accordance with rules.
After 
12bid opening, no
changes in bid prices or other provisions of 
13bids prejudicial to
the interest of the State or fair

14competition shall be permitted. All decisions to permit the

15correction or withdrawal of bids
based on bid mistakes shall be 
16supported by written determination
made by a State purchasing 
17officer.

18 (g) Award. The contract shall be awarded with reasonable

19promptness by written notice
to the lowest responsible and 
20responsive bidder whose bid meets
the requirements and criteria

21set forth in the invitation for bids, except when a State 
22purchasing officer
determines it is not in the best interest of 
23the State and by written
explanation determines another bidder 
24shall receive the award. The explanation
shall appear in the 
25appropriate volume of the Illinois Procurement Bulletin. The 
26written explanation must include:

 
 
10100SB0690ham003- 211 -LRB101 04451 SMS 61572 a


1  (1) a description of the agency's needs; 
2  (2) a determination that the anticipated cost will be 
3 fair and reasonable;
4  (3) a listing of all responsible and responsive 
5 bidders; and
6  (4) the name of the bidder selected, the total contract 
7 price, and the reasons for selecting that bidder.
8 Each chief procurement officer may adopt guidelines to 
9implement the requirements of this subsection (g).
10 The written explanation shall be filed with the Legislative 
11Audit Commission and the Procurement Policy Board, and be made 
12available for inspection by the public, within 30 calendar days 
13after the agency's decision to award the contract.
14 (h) Multi-step sealed bidding. When it is considered

15impracticable to initially prepare
a purchase description to 
16support an award based on price, an
invitation for bids may be 
17issued
requesting the submission of unpriced offers to be 
18followed by an
invitation for bids limited to
those bidders 
19whose offers have been qualified under the criteria
set forth 
20in the first solicitation.

21 (i) Alternative procedures. Notwithstanding any other 
22provision of this Act to the contrary, the Director of the 
23Illinois Power Agency may create alternative bidding 
24procedures to be used in procuring professional services under 
25Section 1-56, subsections (a) and (c) of Section 1-75 and 
26subsection (d) of Section 1-78 of the Illinois Power Agency Act 
 
 
10100SB0690ham003- 212 -LRB101 04451 SMS 61572 a


1and Section 16-111.5(c) of the Public Utilities Act and to 
2procure renewable energy resources under Section 1-56 of the 
3Illinois Power Agency Act. These alternative procedures shall 
4be set forth together with the other criteria contained in the 
5invitation for bids, and shall appear in the appropriate volume 
6of the Illinois Procurement Bulletin.

7 (j) Reverse auction. Notwithstanding any other provision 
8of this Section and in accordance with rules adopted by the 
9chief procurement officer, that chief procurement officer may 
10procure supplies or services through a competitive electronic 
11auction bidding process after the chief procurement officer 
12determines that the use of such a process will be in the best 
13interest of the State. The chief procurement officer shall 
14publish that determination in his or her next volume of the 
15Illinois Procurement Bulletin.
16 An invitation for bids shall be issued and shall include 
17(i) a procurement description, (ii) all contractual terms, 
18whenever practical, and (iii) conditions applicable to the 
19procurement, including a notice that bids will be received in 
20an electronic auction manner.
21 Public notice of the invitation for bids shall be given in 
22the same manner as provided in subsection (c).
23 Bids shall be accepted electronically at the time and in 
24the manner designated in the invitation for bids. During the 
25auction, a bidder's price shall be disclosed to other bidders. 
26Bidders shall have the opportunity to reduce their bid prices 
 
 
10100SB0690ham003- 213 -LRB101 04451 SMS 61572 a


1during the auction. At the conclusion of the auction, the 
2record of the bid prices received and the name of each bidder 
3shall be open to public inspection.
4 After the auction period has terminated, withdrawal of bids 
5shall be permitted as provided in subsection (f).
6 The contract shall be awarded within 60 calendar days after 
7the auction by written notice to the lowest responsible bidder, 
8or all bids shall be rejected except as otherwise provided in 
9this Code. Extensions of the date for the award may be made by 
10mutual written consent of the State purchasing officer and the 
11lowest responsible bidder.
12 This subsection does not apply to (i) procurements of 
13professional and artistic services, (ii) telecommunications 
14services, communication services, and information services, 
15and (iii) contracts for construction projects, including 
16design professional services. 
17(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17.)


18 (Text of Section from P.A. 96-159, 96-795, 97-96, 97-895, 
1998-1076, 99-906, and 100-43)

20 Sec. 20-10. Competitive sealed bidding; reverse auction. 

21 (a) Conditions for use. All contracts shall be awarded by

22competitive sealed bidding
except as otherwise provided in 
23Section 20-5.

24 (b) Invitation for bids. An invitation for bids shall be

25issued and shall include a
purchase description and the 
 
 
10100SB0690ham003- 214 -LRB101 04451 SMS 61572 a


1material contractual terms and
conditions applicable to the

2procurement.

3 (c) Public notice. Public notice of the invitation for bids 
4shall be
published in the Illinois Procurement Bulletin at 
5least 14 calendar days before the date
set in the invitation 
6for the opening of bids.

7 (d) Bid opening. Bids shall be opened publicly or through 
8an electronic procurement system in the
presence of one or more 
9witnesses
at the time and place designated in the invitation 
10for bids. The
name of each bidder, including earned and applied 
11bid credit from the Illinois Works Jobs Program Act, the amount

12of each bid, and other relevant information as may be specified 
13by
rule shall be
recorded. After the award of the contract, the 
14winning bid and the
record of each unsuccessful bid shall be 
15open to
public inspection.

16 (e) Bid acceptance and bid evaluation. Bids shall be

17unconditionally accepted without
alteration or correction, 
18except as authorized in this Code. Bids
shall be evaluated 
19based on the
requirements set forth in the invitation for bids, 
20which may
include criteria to determine
acceptability such as 
21inspection, testing, quality, workmanship,
delivery, and 
22suitability for a
particular purpose. Those criteria that will 
23affect the bid price and be considered in evaluation
for award, 
24such as discounts, transportation costs, and total or
life 
25cycle costs, shall be
objectively measurable. The invitation 
26for bids shall set forth
the evaluation criteria to be used.

 
 
10100SB0690ham003- 215 -LRB101 04451 SMS 61572 a


1 (f) Correction or withdrawal of bids. Correction or

2withdrawal of inadvertently
erroneous bids before or after 
3award, or cancellation of awards of
contracts based on bid

4mistakes, shall be permitted in accordance with rules.
After 
5bid opening, no
changes in bid prices or other provisions of 
6bids prejudicial to
the interest of the State or fair

7competition shall be permitted. All decisions to permit the

8correction or withdrawal of bids
based on bid mistakes shall be 
9supported by written determination
made by a State purchasing 
10officer.

11 (g) Award. The contract shall be awarded with reasonable

12promptness by written notice
to the lowest responsible and 
13responsive bidder whose bid meets
the requirements and criteria

14set forth in the invitation for bids, except when a State 
15purchasing officer
determines it is not in the best interest of 
16the State and by written
explanation determines another bidder 
17shall receive the award. The explanation
shall appear in the 
18appropriate volume of the Illinois Procurement Bulletin. The 
19written explanation must include:

20  (1) a description of the agency's needs; 
21  (2) a determination that the anticipated cost will be 
22 fair and reasonable;
23  (3) a listing of all responsible and responsive 
24 bidders; and
25  (4) the name of the bidder selected, the total contract 
26 price, and the reasons for selecting that bidder.
 
 
10100SB0690ham003- 216 -LRB101 04451 SMS 61572 a


1 Each chief procurement officer may adopt guidelines to 
2implement the requirements of this subsection (g).
3 The written explanation shall be filed with the Legislative 
4Audit Commission and the Procurement Policy Board, and be made 
5available for inspection by the public, within 30 days after 
6the agency's decision to award the contract.
7 (h) Multi-step sealed bidding. When it is considered

8impracticable to initially prepare
a purchase description to 
9support an award based on price, an
invitation for bids may be 
10issued
requesting the submission of unpriced offers to be 
11followed by an
invitation for bids limited to
those bidders 
12whose offers have been qualified under the criteria
set forth 
13in the first solicitation.

14 (i) Alternative procedures. Notwithstanding any other 
15provision of this Act to the contrary, the Director of the 
16Illinois Power Agency may create alternative bidding 
17procedures to be used in procuring professional services under 
18subsections (a) and (c) of Section 1-75 and subsection (d) of 
19Section 1-78 of the Illinois Power Agency Act and Section 
2016-111.5(c) of the Public Utilities Act and to procure 
21renewable energy resources under Section 1-56 of the Illinois 
22Power Agency Act. These alternative procedures shall be set 
23forth together with the other criteria contained in the 
24invitation for bids, and shall appear in the appropriate volume 
25of the Illinois Procurement Bulletin.

26 (j) Reverse auction. Notwithstanding any other provision 
 
 
10100SB0690ham003- 217 -LRB101 04451 SMS 61572 a


1of this Section and in accordance with rules adopted by the 
2chief procurement officer, that chief procurement officer may 
3procure supplies or services through a competitive electronic 
4auction bidding process after the chief procurement officer 
5determines that the use of such a process will be in the best 
6interest of the State. The chief procurement officer shall 
7publish that determination in his or her next volume of the 
8Illinois Procurement Bulletin.
9 An invitation for bids shall be issued and shall include 
10(i) a procurement description, (ii) all contractual terms, 
11whenever practical, and (iii) conditions applicable to the 
12procurement, including a notice that bids will be received in 
13an electronic auction manner.
14 Public notice of the invitation for bids shall be given in 
15the same manner as provided in subsection (c).
16 Bids shall be accepted electronically at the time and in 
17the manner designated in the invitation for bids. During the 
18auction, a bidder's price shall be disclosed to other bidders. 
19Bidders shall have the opportunity to reduce their bid prices 
20during the auction. At the conclusion of the auction, the 
21record of the bid prices received and the name of each bidder 
22shall be open to public inspection.
23 After the auction period has terminated, withdrawal of bids 
24shall be permitted as provided in subsection (f).
25 The contract shall be awarded within 60 calendar days after 
26the auction by written notice to the lowest responsible bidder, 
 
 
10100SB0690ham003- 218 -LRB101 04451 SMS 61572 a


1or all bids shall be rejected except as otherwise provided in 
2this Code. Extensions of the date for the award may be made by 
3mutual written consent of the State purchasing officer and the 
4lowest responsible bidder.
5 This subsection does not apply to (i) procurements of 
6professional and artistic services, (ii) telecommunications 
7services, communication services, and information services,

8and (iii) contracts for construction projects, including 
9design professional services. 
10(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17.)

11 Section 20-910. The Prevailing Wage Act is amended by 
12changing Section 5 as follows:


13 (820 ILCS 130/5) (from Ch. 48, par. 39s-5)



14 (Text of Section before amendment by P.A. 100-1177)
15 Sec. 5. Certified payroll.


16 (a) Any contractor and each subcontractor who participates 
17in public works shall:
18  (1) make and keep, for a period of not less
than 3 
19 years from the date of the last payment made before January 
20 1, 2014 (the effective date of Public Act 98-328) and for a 
21 period of 5 years from the date of the last payment made on 
22 or after January 1, 2014 (the effective date of Public Act 
23 98-328) on a contract or subcontract for public works, 
24 records of all laborers, mechanics, and other workers 
 
 
10100SB0690ham003- 219 -LRB101 04451 SMS 61572 a


1 employed by them on the project; the records shall include 
2 (i) the worker's name, (ii) the worker's address, (iii) the 
3 worker's telephone number
when available, (iv) the 
4 worker's social security number, (v) the worker's 
5 classification or classifications, (vi) the worker's skill 
6 level, such as apprentice or journeyman, (vii) (vi) the 
7 worker's gross and net wages paid in each pay period, 
8 (viii) (vii) the worker's number of hours worked each day, 
9 (ix) (viii) the worker's starting and ending times of work 
10 each day, (x) (ix) the worker's hourly wage rate, (xi) (x) 
11 the worker's hourly overtime wage rate, (xii) (xi) the 
12 worker's hourly fringe benefit rates, (xiii) (xii) the name 
13 and address of each fringe benefit fund, (xiv) (xiii) the 
14 plan sponsor of each fringe benefit, if applicable, and 
15 (xv) (xiv) the plan administrator of each fringe benefit, 
16 if applicable; and
17  (2) no later than the 15th day of each calendar month 
18 file a certified payroll for the immediately preceding 
19 month with the public body in charge of the project. A 
20 certified payroll must be filed for only those calendar 
21 months during which construction on a public works project 
22 has occurred. The certified payroll shall consist of a 
23 complete copy of the records identified in paragraph (1) of 
24 this subsection (a), but may exclude the starting and 
25 ending times of work each day. The certified payroll shall 
26 be accompanied by a statement signed by the contractor or 
 
 
10100SB0690ham003- 220 -LRB101 04451 SMS 61572 a


1 subcontractor or an officer, employee, or agent of the 
2 contractor or subcontractor which avers that: (i) he or she 
3 has examined the certified payroll records required to be 
4 submitted by the Act and such records are true and 
5 accurate; (ii) the hourly rate paid to each worker is not 
6 less than the general prevailing rate of hourly wages 
7 required by this Act; and (iii) the contractor or 
8 subcontractor is aware that filing a certified payroll that 
9 he or she knows to be false is a Class A misdemeanor. A 
10 general contractor is not prohibited from relying on the 
11 certification of a lower tier subcontractor, provided the 
12 general contractor does not knowingly rely upon a 
13 subcontractor's false certification. Any contractor or 
14 subcontractor subject to this Act and any officer, 
15 employee, or agent of such contractor or subcontractor 
16 whose duty as such officer, employee, or agent it is to 
17 file such certified payroll who willfully fails to file 
18 such a certified payroll on or before the date such 
19 certified payroll is required by this paragraph to be filed 
20 and any person who willfully files a false certified 
21 payroll that is false as to any material fact is in 
22 violation of this Act and guilty of a Class A misdemeanor. 
23 The public body in charge of the project shall keep the 
24 records submitted in accordance with this paragraph (2) of 
25 subsection (a) before January 1, 2014 (the effective date 
26 of Public Act 98-328) for a period of not less than 3 
 
 
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1 years, and the records submitted in accordance with this 
2 paragraph (2) of subsection (a) on or after January 1, 2014 
3 (the effective date of Public Act 98-328) for a period of 5 
4 years, from the date of the last payment for work on a 
5 contract or subcontract for public works. The records 
6 submitted in accordance with this paragraph (2) of 
7 subsection (a) shall be considered public records, except 
8 an employee's address, telephone number, and social 
9 security number, and made available in accordance with the 
10 Freedom of Information Act. The public body shall accept 
11 any reasonable submissions by the contractor that meet the 
12 requirements of this Section.

13 A contractor, subcontractor, or public body may retain 
14records required under this Section in paper or electronic 
15format. 
16 (b) Upon 7 business days' notice, the contractor and each 
17subcontractor shall make available for inspection and copying 
18at a location within this State during reasonable hours, the 
19records identified in paragraph (1) of subsection (a) of this 
20Section to the public body
in charge of the project, its 
21officers and agents, the Director of Labor
and his deputies and 
22agents, and to federal, State, or local law enforcement 
23agencies and prosecutors.
24 (c) A contractor or subcontractor who remits contributions 
25to fringe benefit funds that are jointly maintained and jointly 
26governed by one or more employers and one or more labor 
 
 
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1organizations in accordance with the federal Labor Management 
2Relations Act shall make and keep certified payroll records 
3that include the information required under items (i) through 
4(ix) (viii) of paragraph (1) of subsection (a) only. However, 
5the information required under items (x) (ix) through (xv) 
6(xiv) of paragraph (1) of subsection (a) shall be required for 
7any contractor or subcontractor who remits contributions to a 
8fringe benefit fund that is not jointly maintained and jointly 
9governed by one or more employers and one or more labor 
10organizations in accordance with the federal Labor Management 
11Relations Act. 
12(Source: P.A. 97-571, eff. 1-1-12; 98-328, eff. 1-1-14; 98-482, 
13eff. 1-1-14; 98-756, eff. 7-16-14.)


14 (Text of Section after amendment by P.A. 100-1177) 
15 Sec. 5. Certified payroll.


16 (a) Any contractor and each subcontractor who participates 
17in public works shall:
18  (1) make and keep, for a period of not less
than 3 
19 years from the date of the last payment made before January 
20 1, 2014 (the effective date of Public Act 98-328) and for a 
21 period of 5 years from the date of the last payment made on 
22 or after January 1, 2014 (the effective date of Public Act 
23 98-328) on a contract or subcontract for public works, 
24 records of all laborers, mechanics, and other workers 
25 employed by them on the project; the records shall include 
 
 
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1 (i) the worker's name, (ii) the worker's address, (iii) the 
2 worker's telephone number
when available, (iv) the last 4 
3 digits of the worker's social security number, (v) the 
4 worker's gender, (vi) the worker's race, (vii) the
worker's 
5 ethnicity, (viii) veteran status, (ix) the worker's 
6 classification or classifications, (x) the worker's skill 
7 level, such as apprentice or journeyman, (xi) (x) the 
8 worker's gross and net wages paid in each pay period, (xii) 
9 (xi) the worker's number of hours worked each day, (xiii) 
10 (xii) the worker's starting and ending times of work each 
11 day, (xiv) (xiii) the worker's hourly wage rate, (xv) (xiv) 
12 the worker's hourly overtime wage rate, (xvi) (xv) the 
13 worker's hourly fringe benefit rates, (xvii) (xvi) the name 
14 and address of each fringe benefit fund, (xviii) (xvii) the 
15 plan sponsor of each fringe benefit, if applicable, and 
16 (xix) (xviii) the plan administrator of each fringe 
17 benefit, if applicable; and
18  (2) no later than the 15th day of each calendar month 
19 file a certified payroll for the immediately preceding 
20 month with the public body in charge of the project until 
21 the Department of Labor activates the database created 
22 under Section 5.1 at which time certified payroll shall 
23 only be submitted to that database, except for projects 
24 done by State agencies that opt to have contractors submit 
25 certified payrolls directly to that State agency. A State 
26 agency that opts to directly receive certified payrolls 
 
 
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1 must submit the required information in a specified 
2 electronic format to the Department of Labor no later than 
3 10 days after the certified payroll was filed with the 
4 State agency. A certified payroll must be filed for only 
5 those calendar months during which construction on a public 
6 works project has occurred. The certified payroll shall 
7 consist of a complete copy of the records identified in 
8 paragraph (1) of this subsection (a), but may exclude the 
9 starting and ending times of work each day. The certified 
10 payroll shall be accompanied by a statement signed by the 
11 contractor or subcontractor or an officer, employee, or 
12 agent of the contractor or subcontractor which avers that: 
13 (i) he or she has examined the certified payroll records 
14 required to be submitted by the Act and such records are 
15 true and accurate; (ii) the hourly rate paid to each worker 
16 is not less than the general prevailing rate of hourly 
17 wages required by this Act; and (iii) the contractor or 
18 subcontractor is aware that filing a certified payroll that 
19 he or she knows to be false is a Class A misdemeanor. A 
20 general contractor is not prohibited from relying on the 
21 certification of a lower tier subcontractor, provided the 
22 general contractor does not knowingly rely upon a 
23 subcontractor's false certification. Any contractor or 
24 subcontractor subject to this Act and any officer, 
25 employee, or agent of such contractor or subcontractor 
26 whose duty as such officer, employee, or agent it is to 
 
 
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1 file such certified payroll who willfully fails to file 
2 such a certified payroll on or before the date such 
3 certified payroll is required by this paragraph to be filed 
4 and any person who willfully files a false certified 
5 payroll that is false as to any material fact is in 
6 violation of this Act and guilty of a Class A misdemeanor. 
7 The public body in charge of the project shall keep the 
8 records submitted in accordance with this paragraph (2) of 
9 subsection (a) before January 1, 2014 (the effective date 
10 of Public Act 98-328) for a period of not less than 3 
11 years, and the records submitted in accordance with this 
12 paragraph (2) of subsection (a) on or after January 1, 2014 
13 (the effective date of Public Act 98-328) for a period of 5 
14 years, from the date of the last payment for work on a 
15 contract or subcontract for public works or until the 
16 Department of Labor activates the database created under 
17 Section 5.1, whichever is less. After the activation of the 
18 database created under Section 5.1, the Department of Labor 
19 rather than the public body in charge of the project shall 
20 keep the records and maintain the database. The records 
21 submitted in accordance with this paragraph (2) of 
22 subsection (a) shall be considered public records, except 
23 an employee's address, telephone number, social security 
24 number, race, ethnicity, and gender, and made available in 
25 accordance with the Freedom of Information Act. The public 
26 body shall accept any reasonable submissions by the 
 
 
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1 contractor that meet the requirements of this Section.

2 A contractor, subcontractor, or public body may retain 
3records required under this Section in paper or electronic 
4format. 
5 (b) Upon 7 business days' notice, the contractor and each 
6subcontractor shall make available for inspection and copying 
7at a location within this State during reasonable hours, the 
8records identified in paragraph (1) of subsection (a) of this 
9Section to the public body
in charge of the project, its 
10officers and agents, the Director of Labor
and his deputies and 
11agents, and to federal, State, or local law enforcement 
12agencies and prosecutors.
13 (c) A contractor or subcontractor who remits contributions 
14to fringe benefit funds that are jointly maintained and jointly 
15governed by one or more employers and one or more labor 
16organizations in accordance with the federal Labor Management 
17Relations Act shall make and keep certified payroll records 
18that include the information required under items (i) through 
19(viii) of paragraph (1) of subsection (a) only. However, the 
20information required under items (ix) through (xv) (xiv) of 
21paragraph (1) of subsection (a) shall be required for any 
22contractor or subcontractor who remits contributions to a 
23fringe benefit fund that is not jointly maintained and jointly 
24governed by one or more employers and one or more labor 
25organizations in accordance with the federal Labor Management 
26Relations Act. 
 
 
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1(Source: P.A. 100-1177, eff. 6-1-19.)


2
Article 25.  Sports Wagering Act


3 Section 25-1. Short title. This Article may be cited as the 
4Sports Wagering Act. References in
this Article to "this Act" 
5mean this Article.

6 Section 25-5. Legislative findings. The General Assembly 
7recognizes the promotion of public safety is an important 
8consideration for sports leagues, teams, players, and fans at 
9large. All persons who present sporting contests are encouraged 
10to take reasonable measures to ensure the safety and security 
11of all involved or attending sporting contests. Persons who 
12present sporting contests are encouraged to establish codes of 
13conduct that forbid all persons associated with the sporting 
14contest from engaging in violent behavior and to hire, train, 
15and equip safety and security personnel to enforce those codes 
16of conduct. Persons who present sporting contests are further 
17encouraged to provide public notice of those codes of conduct.

18 Section 25-10. Definitions. As used in this Act:
19 "Adjusted gross sports wagering receipts" means a master 
20sports wagering licensee's gross sports wagering receipts, 
21less winnings paid to wagerers in such games.
22 "Athlete" means any current or former professional athlete 
 
 
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1or collegiate athlete.
2 "Board" means the Illinois Gaming Board.
3 "Covered persons" includes athletes; umpires, referees, 
4and officials; personnel associated with clubs, teams, 
5leagues, and athletic associations; medical professionals 
6(including athletic trainers) who provide services to athletes 
7and players; and the family members and associates of these 
8persons where required to serve the purposes of this Act.
9 "Department" means the Department of the Lottery.
10 "Gaming facility" means a facility at which gambling 
11operations are conducted under the Illinois Gambling Act, 
12pari-mutuel wagering is conducted under the Illinois Horse 
13Racing Act of 1975, or sports wagering is conducted under this 
14Act.
15 "Official league data" means statistics, results, 
16outcomes, and other data related to a sports event obtained 
17pursuant to an agreement with the relevant sports governing 
18body, or an entity expressly authorized by the sports governing 
19body to provide such information to licensees, that authorizes 
20the use of such data for determining the outcome of tier 2 
21sports wagers on such sports events.
22 "Organization licensee" has the meaning given to that term 
23in the Illinois Horse Racing Act of 1975.
24 "Owners licensee" means the holder of an owners license 
25under the Illinois Gambling Act.
26 "Person" means an individual, partnership, committee, 
 
 
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1association, corporation, or any other organization or group of 
2persons.
3 "Personal biometric data" means an athlete's information 
4derived from DNA, heart rate, blood pressure, perspiration 
5rate, internal or external body temperature, hormone levels, 
6glucose levels, hydration levels, vitamin levels, bone 
7density, muscle density, and sleep patterns.
8 "Prohibited conduct" includes any statement, action, and 
9other communication intended to influence, manipulate, or 
10control a betting outcome of a sporting contest or of any 
11individual occurrence or performance in a sporting contest in 
12exchange for financial gain or to avoid financial or physical 
13harm. "Prohibited conduct" includes statements, actions, and 
14communications made to a covered person by a third party, such 
15as a family member or through social media. "Prohibited 
16conduct" does not include statements, actions, or 
17communications made or sanctioned by a team or sports governing 
18body.
19 "Qualified applicant" means an applicant for a license 
20under this Act whose application meets the mandatory minimum 
21qualification criteria as required by the Board.
22 "Sporting contest" means a sports event or game on which 
23the State allows sports wagering to occur under this Act. 
24 "Sports event" means a professional sport or athletic 
25event, a collegiate sport or athletic event, a motor race 
26event, or any other event or competition of relative skill 
 
 
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1authorized by the Board under this Act.
2 "Sports facility" means a facility that hosts sports events 
3and holds a seating capacity greater than 17,000 persons.
4 "Sports governing body" means the organization that 
5prescribes final rules and enforces codes of conduct with 
6respect to a sports event and participants therein. 
7 "Sports wagering" means accepting wagers on sports events 
8or portions of sports events, or on the individual performance 
9statistics of athletes in a sports event or combination of 
10sports events, by any system or method of wagering, including, 
11but not limited to, in person or over the Internet through 
12websites and on mobile devices. "Sports wagering" includes, but 
13is not limited to, single-game bets, teaser bets, parlays, 
14over-under, moneyline, pools, exchange wagering, in-game 
15wagering, in-play bets, proposition bets, and straight bets. 
16 "Sports wagering account" means a financial record 
17established by a master sports wagering licensee for an 
18individual patron in which the patron may deposit and withdraw 
19funds for sports wagering and other authorized purchases and to 
20which the master sports wagering licensee may credit winnings 
21or other amounts due to that patron or authorized by that 
22patron.
23 "Tier 1 sports wager" means a sports wager that is 
24determined solely by the final score or final outcome of the 
25sports event and is placed before the sports event has begun. 
26 "Tier 2 sports wager" means a sports wager that is not a 
 
 
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1tier 1 sports wager.
2 "Wager" means a sum of money or thing of value risked on an 
3uncertain occurrence.
4 "Winning bidder" means a qualified applicant for a master 
5sports wagering license chosen through the competitive 
6selection process under Section 25-45.

7 Section 25-15. Board duties and powers. 
8 (a) Except for sports wagering conducted under Section 
925-70, the Board shall have the authority to regulate the 
10conduct of sports wagering under this Act.
11 (b) The Board may adopt any rules the Board considers 
12necessary for the successful implementation, administration, 
13and enforcement of this Act, except for Section 25-70. Rules 
14proposed by the Board may be adopted as emergency rules 
15pursuant to Section 5-45 of the Illinois Administrative 
16Procedure Act.
17 (c) The Board shall levy and collect all fees, surcharges, 
18civil penalties, and monthly taxes on adjusted gross sports 
19wagering receipts imposed by this Act and deposit all moneys 
20into the Sports Wagering Fund, except as otherwise provided 
21under this Act.
22 (d) The Board may exercise any other powers necessary to 
23enforce the provisions of this Act that it regulates and the 
24rules of the Board.
25 (e) The Board shall adopt rules for a license to be 
 
 
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1employed by a master sports wagering licensee when the employee 
2works in a designated gaming area that has sports wagering or 
3performs duties in furtherance of or associated with the 
4operation of sports wagering by the master sports wagering 
5licensee (occupational license), which shall require an annual 
6license fee of $250. License fees shall be deposited into the 
7State Gaming Fund and used for the administration of this Act.
8 (f) The Board may require that licensees share, in real 
9time and at the sports wagering account level, information 
10regarding a wagerer, amount and type of wager, the time the 
11wager was placed, the location of the wager, including the 
12Internet protocol address, if applicable, the outcome of the 
13wager, and records of abnormal wagering activity. Information 
14shared under this subsection (f) must be submitted in the form 
15and manner as required by rule. If a sports governing body has 
16notified the Board that real-time information sharing for 
17wagers placed on its sports events is necessary and desirable, 
18licensees may share the same information in the form and manner 
19required by the Board by rule with the sports governing body or 
20its designee with respect to wagers on its sports events 
21subject to applicable federal, State, or local laws or 
22regulations, including, without limitation, privacy laws and 
23regulations. Such information may be provided in anonymized 
24form and may be used by a sports governing body solely for 
25integrity purposes. For purposes of this subsection (f), 
26"real-time" means a commercially reasonable periodic interval.
 
 
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1 (g) A master sports wagering licensee, professional sports 
2team, league, or association, sports governing body, or 
3institution of higher education may submit to the Board in 
4writing a request to prohibit a type or form of wagering if the 
5master sports wagering licensee, professional sports team, 
6league, or association, sports governing body, or institution 
7of higher education believes that such wagering by type or form 
8is contrary to public policy, unfair to consumers, or affects 
9the integrity of a particular sport or the sports betting 
10industry. The Board shall grant the request upon a 
11demonstration of good cause from the requester and consultation 
12with licensees. The Board shall respond to a request pursuant 
13to this subsection (g) concerning a particular event before the 
14start of the event or, if it is not feasible to respond before 
15the start of the event, as soon as practicable.
16 (h) The Board and master sports wagering licensees may 
17cooperate with investigations conducted by sports governing 
18bodies or law enforcement agencies, including, but not limited 
19to, providing and facilitating the provision of account-level 
20betting information and audio or video files relating to 
21persons placing wagers.
22 (i) A master sports wagering licensee shall make 
23commercially reasonable efforts to promptly notify the Board 
24any information relating to:
25  (1) criminal or disciplinary proceedings commenced 
26 against the master sports wagering licensee in connection 
 
 
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1 with its operations;
2  (2) abnormal wagering activity or patterns that may 
3 indicate a concern with the integrity of a sports event or 
4 sports events;
5  (3) any potential breach of the relevant sports 
6 governing body's internal rules and codes of conduct 
7 pertaining to sports wagering that a licensee has knowledge 
8 of;
9  (4) any other conduct that corrupts a wagering outcome 
10 of a sports event or sports events for purposes of 
11 financial gain, including match fixing; and
12  (5) suspicious or illegal wagering activities, 
13 including use of funds derived from illegal activity, 
14 wagers to conceal or launder funds derived from illegal 
15 activity, using agents to place wagers, and using false 
16 identification.
17 A master sports wagering licensee shall also make 
18commercially reasonable efforts to promptly report information 
19relating to conduct described in paragraphs (2), (3), and (4) 
20of this subsection (i) to the relevant sports governing body.

21 Section 25-20. Licenses required. 
22 (a) No person may engage in any activity in connection with 
23sports wagering in this State unless all necessary licenses 
24have been obtained in accordance with this Act and the rules of 
25the Board and the Department. The following licenses shall be 
 
 
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1issued under this Act:
2  (1) master sports wagering license;
3  (2) occupational license;
4  (3) supplier license;
5  (4) management services provider license
6  (5) tier 2 official league data provider license; and
7  (6) central system provider license.
8 No person or entity may engage in a sports wagering 
9operation or activity without first obtaining the appropriate 
10license.
11 (b) An applicant for a license issued under this Act shall 
12submit an application to the Board in the form the Board 
13requires. The applicant shall submit fingerprints for a 
14national criminal records check by the Department of State 
15Police and the Federal Bureau of Investigation. The 
16fingerprints shall be furnished by the applicant's officers and 
17directors (if a corporation), members (if a limited liability 
18company), and partners (if a partnership). The fingerprints 
19shall be accompanied by a signed authorization for the release 
20of information by the Federal Bureau of Investigation. The 
21Board may require additional background checks on licensees 
22when they apply for license renewal, and an applicant convicted 
23of a disqualifying offense shall not be licensed.
24 (c) Each master sports wagering licensee shall display the 
25license conspicuously in the licensee's place of business or 
26have the license available for inspection by an agent of the 
 
 
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1Board or a law enforcement agency.
2 (d) Each holder of an occupational license shall carry the 
3license and have some indicia of licensure prominently 
4displayed on his or her person when present in a gaming 
5facility licensed under this Act at all times, in accordance 
6with the rules of the Board.
7 (e) Each person licensed under this Act shall give the 
8Board written notice within 30 days after a material change to 
9information provided in the licensee's application for a 
10license or renewal.

11 Section 25-25. Sports wagering authorized.
12 (a) Notwithstanding any provision of law to the contrary, 
13the operation of sports wagering is only lawful when conducted 
14in accordance with the provisions of this Act and the rules of 
15the Illinois Gaming Board and the Department of the Lottery.
16 (b) A person placing a wager under this Act shall be at 
17least 21 years of age.
18 (c) A licensee under this Act may not accept a wager on a 
19minor league sports event.
20 (d) A licensee under this Act may not accept a wager for a 
21sports event involving an Illinois collegiate team.
22 (e) A licensee under this Act may only accept a wager from 
23a person physically located in the State.
24 (f) Master sports wagering licensees may use any data 
25source for determining the results of all tier 1 sports wagers.
 
 
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1 (g) A sports governing body headquartered in the United 
2States may notify the Board that it desires to supply official 
3league data to master sports wagering licensees for determining 
4the results of tier 2 sports wagers. Such notification shall be 
5made in the form and manner as the Board may require. If a 
6sports governing body does not notify the Board of its desire 
7to supply official league data, a master sports wagering 
8licensee may use any data source for determining the results of 
9any and all tier 2 sports wagers on sports contests for that 
10sports governing body.
11 Within 30 days of a sports governing body notifying the 
12Board, master sports wagering licensees shall use only official 
13league data to determine the results of tier 2 sports wagers on 
14sports events sanctioned by that sports governing body, unless: 
15(1) the sports governing body or designee cannot provide a feed 
16of official league data to determine the results of a 
17particular type of tier 2 sports wager, in which case master 
18sports wagering licensees may use any data source for 
19determining the results of the applicable tier 2 sports wager 
20until such time as such data feed becomes available on 
21commercially reasonable terms; or (2) a master sports wagering 
22licensee can demonstrate to the Board that the sports governing 
23body or its designee cannot provide a feed of official league 
24data to the master sports wagering licensee on commercially 
25reasonable terms. During the pendency of the Board's 
26determination, such master sports wagering licensee may use any 
 
 
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1data source for determining the results of any and all tier 2 
2sports wagers. 
3 (h) A licensee under this Act may not accept wagers on a 
4kindergarten through 12th grade sports event.

5 Section 25-30. Master sports wagering license issued to an 
6organization licensee. 
7 (a) An organization licensee may apply to the Board for a 
8master sports wagering license. To the extent permitted by 
9federal and State law, the Board shall actively seek to achieve 
10racial, ethnic, and geographic diversity when issuing master 
11sports wagering licenses to organization licensees and 
12encourage minority-owned businesses, women-owned businesses, 
13veteran-owned businesses, and businesses owned by persons with 
14disabilities to apply for licensure. Additionally, the report 
15published under subsection (m) of Section 25-45 shall impact 
16the issuance of the master sports wagering license to the 
17extent permitted by federal and State law.
18 For the purposes of this subsection (a), "minority-owned 
19business", "women-owned business", and "business owned by 
20persons with disabilities" have the meanings given to those 
21terms in Section 2 of the Business Enterprise for Minorities, 
22Women, and Persons with Disabilities Act.
23 (b) Except as otherwise provided in this subsection (b), 
24the initial license fee for a master sports wagering license 
25for an organization licensee is 5% of its handle from the 
 
 
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1preceding calendar year or the lowest amount that is required 
2to be paid as an initial license fee by an owners licensee 
3under subsection (b) of Section 25-35, whichever is greater. No 
4initial license fee shall exceed $10,000,000. An organization 
5licensee licensed on the effective date of this Act shall pay 
6the initial master sports wagering license fee by July 1, 2020. 
7For an organization licensee licensed after the effective date 
8of this Act, the master sports wagering license fee shall be 
9$5,000,000, but the amount shall be adjusted 12 months after 
10the organization licensee begins racing operations based on 5% 
11of its handle from the first 12 months of racing operations. 
12The master sports wagering license is valid for 4 years.
13 (c) The organization licensee may renew the master sports 
14wagering license for a period of 4 years by paying a $1,000,000 
15renewal fee to the Board.
16 (d) An organization licensee issued a master sports 
17wagering license may conduct sports wagering:
18  (1) at its facility at which inter-track wagering is 
19 conducted pursuant to an inter-track wagering license 
20 under the Illinois Horse Racing Act of 1975;
21  (2) at 3 inter-track wagering locations if the 
22 inter-track wagering location licensee from which it 
23 derives its license is an organization licensee that is 
24 issued a master sports
wagering license; and
25  (3) over the Internet or through a mobile application.
26 (e) The sports wagering offered over the Internet or 
 
 
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1through a mobile application shall only be offered under either 
2the same brand as the organization licensee is operating under 
3or a brand owned by a direct or indirect holding company that 
4owns at least an 80% interest in that organization licensee on 
5the effective date of this Act.
6 (f) Until issuance of the first license under Section 
725-45, an individual must create a sports wagering account in 
8person at a facility under paragraph (1) or (2) of subsection 
9(d) to participate in sports wagering offered over the Internet 
10or through a mobile application.

11 Section 25-35. Master sports wagering license issued to an 
12owners licensee. 
13 (a) An owners licensee may apply to the Board for a master 
14sports wagering license. To the extent permitted by federal and 
15State law, the Board shall actively seek to achieve racial, 
16ethnic, and geographic diversity when issuing master sports 
17wagering licenses to owners licensees and encourage 
18minority-owned businesses, women-owned businesses, 
19veteran-owned businesses, and businesses owned by persons with 
20disabilities to apply for licensure. Additionally, the report 
21published under subsection (m) of Section 25-45 shall impact 
22the issuance of the master sports wagering license to the 
23extent permitted by federal and State law.
24 For the purposes of this subsection (a), "minority-owned 
25business", "women-owned business", and "business owned by 
 
 
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1persons with disabilities" have the meanings given to those 
2terms in Section 2 of the Business Enterprise for Minorities, 
3Women, and Persons with Disabilities Act.
4 (b) Except as otherwise provided in subsection (b-5), the 
5initial license fee for a master sports wagering license for an 
6owners licensee is 5% of its adjusted gross receipts from the 
7preceding calendar year. No initial license fee shall exceed 
8$10,000,000. An owners licensee licensed on the effective date 
9of this Act shall pay the initial master sports wagering 
10license fee by July 1, 2020. The master sports wagering license 
11is valid for 4 years.
12 (b-5) For an owners licensee licensed after the effective 
13date of this Act, the master sports wagering license fee shall 
14be $5,000,000, but the amount shall be adjusted 12 months after 
15the owners licensee begins gambling operations under the 
16Illinois Gambling Act based on 5% of its adjusted gross 
17receipts from the first 12 months of gambling operations. The 
18master sports wagering license is valid for 4 years.
19 (c) The owners licensee may renew the master sports 
20wagering license for a period of 4 years by paying a $1,000,000 
21renewal fee to the Board.
22 (d) An owners licensee issued a master sports wagering 
23license may conduct sports wagering:
24  (1) at its facility in this State that is authorized to 
25 conduct gambling operations under the Illinois Gambling 
26 Act; and
 
 
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1  (2) over the Internet or through a mobile application.
2 (e) The sports wagering offered over the Internet or 
3through a mobile application shall only be offered under either 
4the same brand as the owners licensee is operating under or a 
5brand owned by a direct or indirect holding company that owns 
6at least an 80% interest in that owners licensee on the 
7effective date of this Act.
8 (f) Until issuance of the first license under Section 
925-45, an individual must create a sports wagering account in 
10person at a facility under paragraph (1) of subsection (d) to 
11participate in sports wagering offered over the Internet or 
12through a mobile application.

13 Section 25-40. Master sports wagering license issued to a 
14sports facility.
15 (a) As used in this Section, "designee" means a master 
16sports wagering licensee under Section 25-30, 25-35, or 25-45 
17or a management services provider licensee.
18 (b) A sports facility or a designee contracted to operate 
19sports wagering at or within a 5-block radius of the sports 
20facility may apply to the Board for a master sports wagering 
21license. To the extent permitted by federal and State law, the 
22Board shall actively seek to achieve racial, ethnic, and 
23geographic diversity when issuing master sports wagering 
24licenses to sports facilities or their designees and encourage 
25minority-owned businesses, women-owned businesses, 
 
 
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1veteran-owned businesses, and businesses owned by persons with 
2disabilities to apply for licensure. Additionally, the report 
3published under subsection (m) of Section 25-45 shall impact 
4the issuance of the master sports wagering license to the 
5extent permitted by federal and State law.
6 For the purposes of this subsection (b), "minority-owned 
7business", "women-owned business", and "business owned by 
8persons with disabilities" have the meanings given to those 
9terms in Section 2 of the Business Enterprise for Minorities, 
10Women, and Persons with Disabilities Act.
11 (c) The Board may issue up to 7 master sports wagering 
12licenses to sports facilities or their designees that meet the 
13requirements for licensure as determined by rule by the Board. 
14If more than 7 qualified applicants apply for a master sports 
15wagering license under this Section, the licenses shall be 
16granted in the order in which the applications were received. 
17If a license is denied, revoked, or not renewed, the Board may 
18begin a new application process and issue a license under this 
19Section in the order in which the application was received.
20 (d) The initial license fee for a master sports wagering 
21license for a sports facility is $10,000,000. The master sports 
22wagering license is valid for 4 years.
23 (e) The sports facility or its designee may renew the 
24master sports wagering license for a period of 4 years by 
25paying a $1,000,000 renewal fee to the Board.
26 (f) A sports facility or its designee issued a master 
 
 
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1sports wagering license may conduct sports wagering at or 
2within a 5-block radius of the sports facility.
3 (g) A sports facility or its designee issued a master 
4sports wagering license may conduct sports wagering over the 
5Internet within the sports facility or within a 5-block radius 
6of the sports facility.
7 (h) The sports wagering offered by a sports facility or its 
8designee over the Internet or through a mobile application 
9shall be offered under the same brand as the sports facility is 
10operating under, the brand the designee is operating under, or 
11a combination thereof.
12 (i) Until issuance of the first license under Section 
1325-45, an individual must register in person at a sports 
14facility or the designee's facility to participate in sports 
15wagering offered over the Internet or through a mobile 
16application.

17 Section 25-45. Master sports wagering license issued to an 
18online sports wagering operator.
19 (a) The Board shall issue 3 master sports wagering licenses 
20to online sports wagering operators for a nonrefundable license 
21fee of $20,000,000 pursuant to an open and competitive 
22selection process. The master sports wagering license issued 
23under this Section may be renewed every 4 years upon payment of 
24a $1,000,000 renewal fee. To the extent permitted by federal 
25and State law, the Board shall actively seek to achieve racial, 
 
 
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1ethnic, and geographic diversity when issuing master sports 
2wagering licenses under this Section and encourage 
3minority-owned businesses, women-owned businesses, 
4veteran-owned businesses, and businesses owned by persons with 
5disabilities to apply for licensure.
6 For the purposes of this subsection (a), "minority-owned 
7business", "women-owned business", and "business owned by 
8persons with disabilities" have the meanings given to those 
9terms in Section 2 of the Business Enterprise for Minorities, 
10Women, and Persons with Disabilities Act.
11 (b) Applications for the initial competitive selection 
12occurring after the effective date of this Act shall be 
13received by the Board within 540 days after the first license 
14is issued under this Act to qualify. The Board shall announce 
15the winning bidders for the initial competitive selection 
16within 630 days after the first license is issued under this 
17Act, and this time frame may be extended at the discretion of 
18the Board.
19 (c) The Board shall provide public notice of its intent to 
20solicit applications for master sports wagering licenses under 
21this Section by posting the notice, application instructions, 
22and materials on its website for at least 30 calendar days 
23before the applications are due.
Failure by an applicant to 
24submit all required information may result in the application 
25being disqualified. The Board may notify an applicant that its 
26application is incomplete and provide an opportunity to cure by 
 
 
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1rule.
Application instructions shall include a brief overview 
2of the selection process and how applications are scored.
3 (d) To be eligible for a master sports wagering license 
4under this Section, an applicant must: (1) be at least 21 years 
5of age; (2) not have been convicted of a felony offense or a 
6violation of Article 28 of the Criminal Code of 1961 or the 
7Criminal Code of 2012 or a similar statute of any other 
8jurisdiction; (3) not have been convicted of a crime involving 
9dishonesty or moral turpitude; (4) have demonstrated a level of 
10skill or knowledge that the Board determines to be necessary in 
11order to operate sports wagering; and (5) have met standards 
12for the holding of a license as adopted by rules of the Board.
13 The Board may adopt rules to establish additional 
14qualifications and requirements to preserve the integrity and 
15security of sports wagering in this State and to promote and 
16maintain a competitive sports wagering market.
After the close 
17of the application period, the Board shall determine whether 
18the applications meet the mandatory minimum qualification 
19criteria and conduct a comprehensive, fair, and impartial 
20evaluation of all qualified applications.
21 (e) The Board shall open all qualified applications in a 
22public forum and disclose the applicants' names. The Board 
23shall summarize the terms of the proposals and make the 
24summaries available to the public on its website.
25 (f) Not more than 90 days after the publication of the 
26qualified applications, the Board shall identify the winning 
 
 
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1bidders. In granting the licenses, the Board may give favorable 
2consideration to qualified applicants presenting plans that 
3provide for economic development and community engagement. To 
4the extent permitted by federal and State law, the Board may 
5give favorable consideration to qualified applicants 
6demonstrating commitment to diversity in the workplace.
7 (g) Upon selection of the winning bidders, the Board shall 
8have a reasonable period of time to ensure compliance with all 
9applicable statutory and regulatory criteria before issuing 
10the licenses. If the Board determines a winning bidder does not 
11satisfy all applicable statutory and regulatory criteria, the 
12Board shall select another bidder from the remaining qualified 
13applicants.
14 (h) Nothing in this Section is intended to confer a 
15property or other right, duty, privilege, or interest entitling 
16an applicant to an administrative hearing upon denial of an 
17application.
18 (i) Upon issuance of a master sports wagering license to a 
19winning bidder, the information and plans provided in the 
20application become a condition of the license. A master sports 
21wagering licensee under this Section has a duty to disclose any 
22material changes to the application. Failure to comply with the 
23conditions or requirements in the application may subject the 
24master sports wagering licensee under this Section to 
25discipline, including, but not limited to, fines, suspension, 
26and revocation of its license, pursuant to rules adopted by the 
 
 
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1Board.
2 (j) The Board shall disseminate information about the 
3licensing process through media demonstrated to reach large 
4numbers of business owners and entrepreneurs who are 
5minorities, women, veterans, and persons with disabilities.
6 (k) The Department of Commerce and Economic Opportunity, in 
7conjunction with the Board, shall conduct ongoing, thorough, 
8and comprehensive outreach to businesses owned by minorities, 
9women, veterans, and persons with disabilities about 
10contracting and entrepreneurial opportunities in sports 
11wagering. This outreach shall include, but not be limited to:
12  (1) cooperating and collaborating with other State 
13 boards, commissions, and agencies; public and private 
14 universities and community colleges; and local governments 
15 to target outreach efforts; and
16  (2) working with organizations serving minorities, 
17 women, and persons with disabilities to establish and 
18 conduct training for employment in sports wagering.
19 (l) The Board shall partner with the Department of Labor, 
20the Department of Financial and Professional Regulation, and 
21the Department of Commerce and Economic Opportunity to identify 
22employment opportunities within the sports wagering industry 
23for job seekers and dislocated workers.
24 (m) By March 1, 2020, the Board shall prepare a request for 
25proposals to conduct a study of the online sports wagering 
26industry and market to determine whether there is a compelling 
 
 
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1interest in implementing remedial measures, including the 
2application of the Business Enterprise Program under the 
3Business Enterprise for Minorities, Women, and Persons with 
4Disabilities Act or a similar program to assist minorities, 
5women, and persons with disabilities in the sports wagering 
6industry.
7 As a part of the study, the Board shall evaluate race and 
8gender-neutral programs or other methods that may be used to 
9address the needs of minority and women applicants and 
10minority-owned and women-owned businesses seeking to 
11participate in the sports wagering industry. The Board shall 
12submit to the General Assembly and publish on its website the 
13results of this study by August 1, 2020.
14 If, as a result of the study conducted under this 
15subsection (m), the Board finds that there is a compelling 
16interest in implementing remedial measures, the Board may adopt 
17rules, including emergency rules, to implement remedial 
18measures, if necessary and to the extent permitted by State and 
19federal law, based on the findings of the study conducted under 
20this subsection (m).

21 Section 25-50. Supplier license. 
22 (a) The Board may issue a supplier license to a person to 
23sell or lease sports wagering equipment, systems, or other 
24gaming items to conduct sports wagering and offer services 
25related to the equipment or other gaming items and data to a 
 
 
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1master sports wagering licensee while the license is active.
2 (b) The Board may adopt rules establishing additional 
3requirements for a supplier and any system or other equipment 
4utilized for sports wagering. The Board may accept licensing by 
5another jurisdiction that it specifically determines to have 
6similar licensing requirements as evidence the applicant meets 
7supplier licensing requirements.
8 (c) An applicant for a supplier license shall demonstrate 
9that the equipment, system, or services that the applicant 
10plans to offer to the master sports wagering licensee conforms 
11to standards established by the Board and applicable State law. 
12The Board may accept approval by another jurisdiction that it 
13specifically determines have similar equipment standards as 
14evidence the applicant meets the standards established by the 
15Board and applicable State law.
16 (d) Applicants shall pay to the Board a nonrefundable 
17license and application fee in the amount of $150,000. After 
18the initial 4-year term, the Board shall renew supplier 
19licenses annually thereafter. Renewal of a supplier license 
20shall be granted to a renewal applicant who has continued to 
21comply with all applicable statutory and regulatory 
22requirements, upon submission of the Board-issued renewal form 
23and payment of a $150,000 renewal fee.
24 (e) A supplier shall submit to the Board a list of all 
25sports wagering equipment and services sold, delivered, or 
26offered to a master sports wagering licensee in this State, as 
 
 
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1required by the Board, all of which must be tested and approved 
2by an independent testing laboratory approved by the Board. A 
3master sports wagering licensee may continue to use supplies 
4acquired from a licensed supplier, even if a supplier's license 
5expires or is otherwise canceled, unless the Board finds a 
6defect in the supplies.

7 Section 25-55. Management services provider license. 
8 (a) A master sports wagering licensee may contract with an 
9entity to conduct that operation in accordance with the rules 
10of the Board and the provisions of this Act. That entity shall 
11obtain a license as a management services provider before the 
12execution of any such contract, and the management services 
13provider license shall be issued pursuant to the provisions of 
14this Act and any rules adopted by the Board.
15 (b) Each applicant for a management services provider 
16license shall meet all requirements for licensure and pay a 
17nonrefundable license and application fee of $1,000,000. The 
18Board may adopt rules establishing additional requirements for 
19an authorized management services provider. The Board may 
20accept licensing by another jurisdiction that it specifically 
21determines to have similar licensing requirements as evidence 
22the applicant meets authorized management services provider 
23licensing requirements.
24 (c) Management services provider licenses shall be renewed 
25every 4 years to licensees who continue to be in compliance 
 
 
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1with all requirements and who pay the renewal fee of $500,000.
2 (d) A person who shares in revenue shall be licensed under 
3this Section.

4 Section 25-60. Tier 2 official league data provider 
5license.
6 (a) A sports governing body or a sports league, 
7organization, or association or a vendor authorized by such 
8sports governing body or sports league, organization, or 
9association to distribute tier 2 official league data may apply 
10to the Board for a tier 2 official league data provider 
11license.
12 (b) A tier 2 official league data provider licensee may 
13provide a master sports wagering licensee with official league 
14data for tier 2 sports wagers. No sports governing body or 
15sports league, organization, or association or a vendor 
16authorized by such sports governing body or sports league, 
17organization, or association may provide tier 2 official league 
18data to a master sports wagering licensee without a tier 2 
19official league data provider license.
20 Notwithstanding the provisions of this Section, the 
21licensing and fee requirements of this Section shall not apply 
22if, under subsection (g) of Section 25-25, master sports 
23wagering licensees are not required to use official league data 
24to determine the results of tier 2 sports wagers.
25 (c) The initial license fee for a tier 2 official league 
 
 
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1data provider license is payable to the Board at the end of the 
2first year of licensure based on the amount of data sold to 
3master sports wagering licensees as official league data as 
4follows:
5  (1) for data sales up to and including $500,000, the 
6 fee is $30,000; 
7  (2) for data sales in excess of $500,000 and up to and 
8 including $750,000, the fee is $60,000;
9  (3) for data sales in excess of $750,000 and up to and 
10 including $1,000,000, the fee is $125,000;
11  (4) for data sales in excess of $1,000,000 and up to 
12 and including $1,500,000, the fee is $250,000;
13  (5) for data sales in excess of $1,500,000 and up to 
14 and including $2,000,000, the fee is $375,000; and
15  (6) for data sales in excess of $2,000,000, the fee is 
16 $500,000.
17 The license is valid for 3 years.
18 (d) The tier 2 official league data provider licensee may 
19renew the license for 3 years by paying a renewal fee to the 
20Board based on the amount of data sold to master sports 
21wagering licensees as official league data in the immediately 
22preceding year as provided in paragraphs (1) through (6) of 
23subsection (c).

24 Section 25-65. Sports wagering at a sports facility. Sports 
25wagering may be offered in person at or within a 5-block radius 
 
 
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1of a sports facility if sports wagering is offered by a 
2designee, as defined in Section 25-40, and that designee has 
3received written authorization from the relevant sports team 
4that plays its home contests at the sports facility. If more 
5than one professional sports team plays its home contests at 
6the same sports facility, written authorization is required 
7from all sports teams that play home contests at the sports 
8facility.

9 Section 25-70. Lottery sports wagering pilot program. 
10 (a) As used in this Section:
11 "Central system" means the hardware, software, 
12peripherals, and network components provided by the 
13Department's central system provider that link and support all 
14required sports lottery terminals and the central site and that 
15are unique and separate from the lottery central system for 
16draw and instant games.
17 "Central system provider" means an individual, 
18partnership, corporation, or limited liability company that 
19has been licensed for the purpose of providing and maintaining 
20a central system and the related management facilities 
21specifically for the management of sports lottery terminals.
22 "Electronic card" means a card purchased from a lottery 
23retailer.
24 "Lottery retailer" means a location licensed by the 
25Department to sell lottery tickets or shares.
 
 
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1 "Sports lottery systems" means systems provided by the 
2central system provider consisting of sports wagering 
3products, risk management, operations, and support services.
4 "Sports lottery terminal" means a terminal linked to the 
5central system in which bills or coins are deposited or an 
6electronic card is inserted in order to place wagers on a 
7sports event and lottery offerings.
8 (b) The Department shall issue one central system provider 
9license pursuant to an open and competitive bidding process 
10that uses the following procedures:
11  (1) The Department shall make applications for the 
12 central system provider license available to the public and 
13 allow a reasonable time for applicants to submit 
14 applications to the Department. 
15  (2) During the filing period for central system 
16 provider license applications, the Department may retain 
17 professional services to assist the Department in 
18 conducting the open and competitive bidding process. 
19  (3) After receiving all of the bid proposals, the 
20 Department shall open all of the proposals in a public 
21 forum and disclose the prospective central system provider 
22 names and venture partners, if any. 
23  (4) The Department shall summarize the terms of the bid 
24 proposals and may make this summary available to the 
25 public. 
26  (5) The Department shall evaluate the bid proposals 
 
 
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1 within a reasonable time and select no more than 3 final 
2 applicants to make presentations of their bid proposals to 
3 the Department. 
4  (6) The final applicants shall make their 
5 presentations to the Department on the same day during an 
6 open session of the Department. 
7  (7) As soon as practicable after the public 
8 presentations by the final applicants, the Department, in 
9 its discretion, may conduct further negotiations among the 
10 3 final applicants. At the conclusion of such negotiations, 
11 the Department shall select the winning bid. 
12  (8) Upon selection of the winning bid, the Department 
13 shall evaluate the winning bid within a reasonable period 
14 of time for licensee suitability in accordance with all 
15 applicable statutory and regulatory criteria. 
16  (9) If the winning bidder is unable or otherwise fails 
17 to consummate the transaction, (including if the 
18 Department determines that the winning bidder does not 
19 satisfy the suitability requirements), the Department may, 
20 on the same criteria, select from the remaining bidders.
21  (10) The winning bidder shall pay $20,000,000 to the 
22 Department upon being issued the central system provider 
23 license.
24 (c) Every sports lottery terminal offered in this State for 
25play shall first be tested and approved pursuant to the rules 
26of the Department, and each sports lottery terminal offered in 
 
 
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1this State for play shall conform to an approved model. For the 
2examination of sports lottery terminals and associated 
3equipment as required by this Section, the central system 
4provider may utilize the services of one or more independent 
5outside testing laboratories that have been accredited by a 
6national accreditation body and that, in the judgment of the 
7Department, are qualified to perform such examinations. Every 
8sports lottery terminal offered in this State for play must 
9meet minimum standards set by an independent outside testing 
10laboratory approved by the Department.
11 (d) During the first 360 days after the effective date of 
12this Act, sport lottery terminals may be placed in no more than 
132,500 Lottery retail locations in the State. Sports lottery 
14terminals may be placed in an additional 2,500 Lottery retail 
15locations during the second year after the effective date of 
16this Act.
17 (e) A sports lottery terminal may not directly dispense 
18coins, cash, tokens, or any other article of exchange or value 
19except for receipt tickets. Tickets shall be dispensed by 
20pressing the ticket dispensing button on the sports lottery 
21terminal at the end of the placement of one's wager or wagers. 
22The ticket shall indicate the total amount wagered, odds for 
23each wager placed, and the cash award for each bet placed, the 
24time of day in a 24-hour format showing hours and minutes, the 
25date, the terminal serial number, the sequential number of the 
26ticket, and an encrypted validation number from which the 
 
 
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1validity of the prize may be determined. The player shall turn 
2in this ticket to the appropriate person at a lottery retailer 
3to receive the cash award.
4 (f) No lottery retailer may cause or permit any person 
5under the age of 21 years to use a sports lottery terminal or 
6sports wagering application. A lottery retailer who knowingly 
7causes or permits a person under the age of 21 years to use a 
8sports lottery terminal or sports wagering application is 
9guilty of a business offense and shall be fined an amount not 
10to exceed $5,000.
11 (g) A sports lottery terminal shall only accept parlay 
12wagers and fixed odds parlay wagers. The Department shall, by 
13rule, establish the total amount, as a percentage, of all 
14wagers placed that a lottery retailer may retain.
15 (h) The Department shall have jurisdiction over and shall 
16supervise all lottery sports wagering operations governed by 
17this Section. The Department shall have all powers necessary 
18and proper to fully and effectively execute the provisions of 
19this Section, including, but not limited to, the following:
20  (1) To investigate applicants and determine the 
21 eligibility of applicants for licenses and to select among 
22 competing applicants the applicants which best serve the 
23 interests of the citizens of Illinois.
24  (2) To have jurisdiction and supervision over all 
25 lottery sports wagering operations in this State.
26  (3) To adopt rules for the purpose of administering the 
 
 
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1 provisions of this Section and to adopt rules and 
2 conditions under which all lottery sports wagering in the 
3 State shall be conducted. Such rules are to provide for the 
4 prevention of practices detrimental to the public interest 
5 and for the best interests of lottery sports wagering, 
6 including rules (i) regarding the inspection of such 
7 licensees necessary to operate a lottery retailer under any 
8 laws or rules applicable to licensees, (ii) to impose 
9 penalties for violations of the Act and its rules, and 
10 (iii) establishing standards for advertising lottery 
11 sports wagering.
12 (i) The Department shall adopt emergency rules to 
13administer this Section in accordance with Section 5-45 of the 
14Illinois Administrative Procedure Act. For the purposes of the 
15Illinois Administrative Procedure Act, the General Assembly 
16finds that the adoption of rules to implement this Section is 
17deemed an emergency and necessary to the public interest, 
18safety, and welfare.
19 (j) For the privilege of operating lottery sports wagering 
20under this Section, all proceeds minus net of proceeds returned 
21to players shall be electronically transferred daily or weekly, 
22at the discretion of the Director of the Lottery, into the 
23State Lottery Fund. After amounts owed to the central system 
24provider and licensed agents, as determined by the Department, 
25are paid from the moneys deposited into the State Lottery Fund 
26under this subsection, the remainder shall be transferred on 
 
 
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1the 15th of each month to the Capital Projects Fund.
2 (k) This Section is repealed on January 1, 2024.

3 Section 25-75. Reporting prohibited conduct; 
4investigations of prohibited conduct. 
5 (a) The Board shall establish a hotline or other method of 
6communication that allows any person to confidentially report 
7information about prohibited conduct to the Board.
8 (b) The Board shall investigate all reasonable allegations 
9of prohibited conduct and refer any allegations it deems 
10credible to the appropriate law enforcement entity. 
11 (c) The identity of any reporting person shall remain 
12confidential unless that person authorizes disclosure of his or 
13her identity or until such time as the allegation of prohibited 
14conduct is referred to law enforcement.
15 (d) If the Board receives a complaint of prohibited conduct 
16by an athlete, the Board shall notify the appropriate sports 
17governing body of the athlete to review the complaint as 
18provided by rule.
19 (e) The Board shall adopt emergency rules to administer 
20this Section in accordance with Section 5-45 of the Illinois 
21Administrative Procedure Act.
22 (f) The Board shall adopt rules governing investigations of 
23prohibited conduct and referrals to law enforcement entities.

24 Section 25-80. Personal biometric data. A master sports 
 
 
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1wagering licensee shall not purchase or use any personal 
2biometric data of an athlete unless the master sports wagering 
3licensee has received written permission from the athlete's 
4exclusive bargaining representative.

5 Section 25-85. Supplier diversity goals for sports 
6wagering. 
7 (a) As used in this Section only, "licensee" means a 
8licensee under this Act other than an occupational licensee.
9 (b) The public policy of this State is to collaboratively 
10work with companies that serve Illinois residents to improve 
11their supplier diversity in a non-antagonistic manner.
12 (c) The Board and the Department shall require all 
13licensees under this Act to submit an annual report by April 
1415, 2020 and every April 15 thereafter, in a searchable Adobe 
15PDF format, on all procurement goals and actual spending for 
16businesses owned by women, minorities, veterans, and persons 
17with disabilities and small business enterprises in the 
18previous calendar year. These goals shall be expressed as a 
19percentage of the total work performed by the entity submitting 
20the report, and the actual spending for all businesses owned by 
21women, minorities, veterans, and persons with disabilities and 
22small business enterprises shall also be expressed as a 
23percentage of the total work performed by the entity submitting 
24the report.
25 (d) Each licensee in its annual report shall include the 
 
 
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1following information:
2  (1) an explanation of the plan for the next year to

3 increase participation;
4  (2) an explanation of the plan to increase the goals;
5  (3) the areas of procurement each licensee shall be

6 actively seeking more participation in the next year;
7  (4) an outline of the plan to alert and encourage

8 potential vendors in that area to seek business from the 
9 licensee;
10  (5) an explanation of the challenges faced in finding

11 quality vendors and offer any suggestions for what the 
12 Board could do to be helpful to identify those vendors;
13  (6) a list of the certifications the licensee

14 recognizes;
15  (7) the point of contact for any potential vendor who

16 wishes to do business with the licensee and explain the 
17 process for a vendor to enroll with the licensee as a 
18 businesses owned by women, minorities, veterans, or 
19 persons with disabilities; and
20  (8) any particular success stories to encourage other

21 licensee to emulate best practices.
22 (e) Each annual report shall include as much State-specific 
23data as possible. If the submitting entity does not submit 
24State-specific data, then the licensee shall include any 
25national data it does have and explain why it could not submit 
26State-specific data and how it intends to do so in future 
 
 
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1reports, if possible.
2 (f) Each annual report shall include the rules, 
3regulations, and definitions used for the procurement goals in 
4the licensee's annual report.
5 (g) The Board, Department, and all licensees shall hold an 
6annual workshop and job fair open to the public in 2020 and 
7every year thereafter on the state of supplier diversity to 
8collaboratively seek solutions to structural impediments to 
9achieving stated goals, including testimony from each licensee 
10as well as subject matter experts and advocates. The Board and 
11Department shall publish a database on their websites of the 
12point of contact for licensees they regulate under this Act for 
13supplier diversity, along with a list of certifications each 
14licensee recognizes from the information submitted in each 
15annual report. The Board and Department shall publish each 
16annual report on their websites and shall maintain each annual 
17report for at least 5 years.

18 Section 25-90. Tax; Sports Wagering Fund. 
19 (a) For the privilege of holding a license to operate 
20sports wagering under this Act, this State shall impose and 
21collect 15% of a master sports wagering licensee's adjusted 
22gross sports wagering receipts from sports wagering. The 
23accrual method of accounting shall be used for purposes of 
24calculating the amount of the tax owed by the licensee.
25 The taxes levied and collected pursuant to this subsection 
 
 
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1(a) are due and payable to the Board no later than the last day 
2of the month following the calendar month in which the adjusted 
3gross sports wagering receipts were received and the tax 
4obligation was accrued.
5 (a-5) In addition to the tax imposed under subsection (a) 
6of this Section, for the privilege of holding a license to 
7operate sports wagering under this Act, the State shall impose 
8and collect 2% of the adjusted gross receipts from sports 
9wagers that are placed within a home rule county with a 
10population of over 3,000,000 inhabitants, which shall be paid, 
11subject to appropriation from the General Assembly, from the 
12Sports Wagering Fund to that home rule county for the purpose 
13of enhancing the county's criminal justice system.
14 (b) The Sports Wagering Fund is hereby created as special 
15fund in the State treasury. Except as otherwise provided in 
16this Act, all moneys collected under this Act by the Board 
17shall be deposited into the Sports Wagering Fund. On the 25th 
18of each month, any moneys remaining in the Sports Wagering Fund 
19shall be transferred to the Capital Projects Fund.

20 Section 25-95. Compulsive gambling. Each master sports 
21wagering licensee shall include a statement regarding 
22obtaining assistance with gambling problems, the text of which 
23shall be determined by rule by the Department of Human 
24Services, on the master sports wagering licensee's portal, 
25Internet website, or computer or mobile application.

 
 
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1 Section 25-100. Voluntary self-exclusion program for 
2sports wagering. Any resident, or non-resident if allowed to 
3participate in sports wagering, may voluntarily prohibit 
4himself or herself from establishing a sports wagering account 
5with a licensee under this Act. The Board and Department shall 
6incorporate the voluntary self-exclusion program for sports 
7wagering into any existing self-exclusion program that it 
8operates on the effective date of this Act.

9 Section 25-105. Report to General Assembly. On or before 
10January 15, 2021 and every January 15 thereafter, the Board 
11shall provide a report to the General Assembly on sports 
12wagering conducted under this Act.

13 Section 25-110. Preemption. Nothing in this Act shall be 
14deemed to diminish the rights, privileges, or remedies of a 
15person under any other federal or State law, rule, or 
16regulation.

17 Section 25-900. The Illinois Administrative Procedure Act 
18is amended by changing Section 5-45 as follows:

19 (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
20 Sec. 5-45. Emergency rulemaking. 
21 (a) "Emergency" means the existence of any situation that 
 
 
10100SB0690ham003- 266 -LRB101 04451 SMS 61572 a


1any agency
finds reasonably constitutes a threat to the public 
2interest, safety, or
welfare.
3 (b) If any agency finds that an
emergency exists that 
4requires adoption of a rule upon fewer days than
is required by 
5Section 5-40 and states in writing its reasons for that

6finding, the agency may adopt an emergency rule without prior 
7notice or
hearing upon filing a notice of emergency rulemaking 
8with the Secretary of
State under Section 5-70. The notice 
9shall include the text of the
emergency rule and shall be 
10published in the Illinois Register. Consent
orders or other 
11court orders adopting settlements negotiated by an agency
may 
12be adopted under this Section. Subject to applicable 
13constitutional or
statutory provisions, an emergency rule 
14becomes effective immediately upon
filing under Section 5-65 or 
15at a stated date less than 10 days
thereafter. The agency's 
16finding and a statement of the specific reasons
for the finding 
17shall be filed with the rule. The agency shall take
reasonable 
18and appropriate measures to make emergency rules known to the

19persons who may be affected by them.
20 (c) An emergency rule may be effective for a period of not 
21longer than
150 days, but the agency's authority to adopt an 
22identical rule under Section
5-40 is not precluded. No 
23emergency rule may be adopted more
than once in any 24-month 
24period, except that this limitation on the number
of emergency 
25rules that may be adopted in a 24-month period does not apply

26to (i) emergency rules that make additions to and deletions 
 
 
10100SB0690ham003- 267 -LRB101 04451 SMS 61572 a


1from the Drug
Manual under Section 5-5.16 of the Illinois 
2Public Aid Code or the
generic drug formulary under Section 
33.14 of the Illinois Food, Drug
and Cosmetic Act, (ii) 
4emergency rules adopted by the Pollution Control
Board before 
5July 1, 1997 to implement portions of the Livestock Management

6Facilities Act, (iii) emergency rules adopted by the Illinois 
7Department of Public Health under subsections (a) through (i) 
8of Section 2 of the Department of Public Health Act when 
9necessary to protect the public's health, (iv) emergency rules 
10adopted pursuant to subsection (n) of this Section, (v) 
11emergency rules adopted pursuant to subsection (o) of this 
12Section, or (vi) emergency rules adopted pursuant to subsection 
13(c-5) of this Section. Two or more emergency rules having 
14substantially the same
purpose and effect shall be deemed to be 
15a single rule for purposes of this
Section.
16 (c-5) To facilitate the maintenance of the program of group 
17health benefits provided to annuitants, survivors, and retired 
18employees under the State Employees Group Insurance Act of 
191971, rules to alter the contributions to be paid by the State, 
20annuitants, survivors, retired employees, or any combination 
21of those entities, for that program of group health benefits, 
22shall be adopted as emergency rules. The adoption of those 
23rules shall be considered an emergency and necessary for the 
24public interest, safety, and welfare. 
25 (d) In order to provide for the expeditious and timely 
26implementation
of the State's fiscal year 1999 budget, 
 
 
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1emergency rules to implement any
provision of Public Act 90-587 
2or 90-588
or any other budget initiative for fiscal year 1999 
3may be adopted in
accordance with this Section by the agency 
4charged with administering that
provision or initiative, 
5except that the 24-month limitation on the adoption
of 
6emergency rules and the provisions of Sections 5-115 and 5-125 
7do not apply
to rules adopted under this subsection (d). The 
8adoption of emergency rules
authorized by this subsection (d) 
9shall be deemed to be necessary for the
public interest, 
10safety, and welfare.
11 (e) In order to provide for the expeditious and timely 
12implementation
of the State's fiscal year 2000 budget, 
13emergency rules to implement any
provision of Public Act 91-24

14or any other budget initiative for fiscal year 2000 may be 
15adopted in
accordance with this Section by the agency charged 
16with administering that
provision or initiative, except that 
17the 24-month limitation on the adoption
of emergency rules and 
18the provisions of Sections 5-115 and 5-125 do not apply
to 
19rules adopted under this subsection (e). The adoption of 
20emergency rules
authorized by this subsection (e) shall be 
21deemed to be necessary for the
public interest, safety, and 
22welfare.
23 (f) In order to provide for the expeditious and timely 
24implementation
of the State's fiscal year 2001 budget, 
25emergency rules to implement any
provision of Public Act 91-712

26or any other budget initiative for fiscal year 2001 may be 
 
 
10100SB0690ham003- 269 -LRB101 04451 SMS 61572 a


1adopted in
accordance with this Section by the agency charged 
2with administering that
provision or initiative, except that 
3the 24-month limitation on the adoption
of emergency rules and 
4the provisions of Sections 5-115 and 5-125 do not apply
to 
5rules adopted under this subsection (f). The adoption of 
6emergency rules
authorized by this subsection (f) shall be 
7deemed to be necessary for the
public interest, safety, and 
8welfare.
9 (g) In order to provide for the expeditious and timely 
10implementation
of the State's fiscal year 2002 budget, 
11emergency rules to implement any
provision of Public Act 92-10

12or any other budget initiative for fiscal year 2002 may be 
13adopted in
accordance with this Section by the agency charged 
14with administering that
provision or initiative, except that 
15the 24-month limitation on the adoption
of emergency rules and 
16the provisions of Sections 5-115 and 5-125 do not apply
to 
17rules adopted under this subsection (g). The adoption of 
18emergency rules
authorized by this subsection (g) shall be 
19deemed to be necessary for the
public interest, safety, and 
20welfare.
21 (h) In order to provide for the expeditious and timely 
22implementation
of the State's fiscal year 2003 budget, 
23emergency rules to implement any
provision of Public Act 92-597

24or any other budget initiative for fiscal year 2003 may be 
25adopted in
accordance with this Section by the agency charged 
26with administering that
provision or initiative, except that 
 
 
10100SB0690ham003- 270 -LRB101 04451 SMS 61572 a


1the 24-month limitation on the adoption
of emergency rules and 
2the provisions of Sections 5-115 and 5-125 do not apply
to 
3rules adopted under this subsection (h). The adoption of 
4emergency rules
authorized by this subsection (h) shall be 
5deemed to be necessary for the
public interest, safety, and 
6welfare.
7 (i) In order to provide for the expeditious and timely 
8implementation
of the State's fiscal year 2004 budget, 
9emergency rules to implement any
provision of Public Act 93-20

10or any other budget initiative for fiscal year 2004 may be 
11adopted in
accordance with this Section by the agency charged 
12with administering that
provision or initiative, except that 
13the 24-month limitation on the adoption
of emergency rules and 
14the provisions of Sections 5-115 and 5-125 do not apply
to 
15rules adopted under this subsection (i). The adoption of 
16emergency rules
authorized by this subsection (i) shall be 
17deemed to be necessary for the
public interest, safety, and 
18welfare.
19 (j) In order to provide for the expeditious and timely 
20implementation of the provisions of the State's fiscal year 
212005 budget as provided under the Fiscal Year 2005 Budget 
22Implementation (Human Services) Act, emergency rules to 
23implement any provision of the Fiscal Year 2005 Budget 
24Implementation (Human Services) Act may be adopted in 
25accordance with this Section by the agency charged with 
26administering that provision, except that the 24-month 
 
 
10100SB0690ham003- 271 -LRB101 04451 SMS 61572 a


1limitation on the adoption of emergency rules and the 
2provisions of Sections 5-115 and 5-125 do not apply to rules 
3adopted under this subsection (j). The Department of Public Aid 
4may also adopt rules under this subsection (j) necessary to 
5administer the Illinois Public Aid Code and the Children's 
6Health Insurance Program Act. The adoption of emergency rules 
7authorized by this subsection (j) shall be deemed to be 
8necessary for the public interest, safety, and welfare.

9 (k) In order to provide for the expeditious and timely 
10implementation of the provisions of the State's fiscal year 
112006 budget, emergency rules to implement any provision of 
12Public Act 94-48 or any other budget initiative for fiscal year 
132006 may be adopted in accordance with this Section by the 
14agency charged with administering that provision or 
15initiative, except that the 24-month limitation on the adoption 
16of emergency rules and the provisions of Sections 5-115 and 
175-125 do not apply to rules adopted under this subsection (k). 
18The Department of Healthcare and Family Services may also adopt 
19rules under this subsection (k) necessary to administer the 
20Illinois Public Aid Code, the Senior Citizens and Persons with 
21Disabilities Property Tax Relief Act, the Senior Citizens and 
22Disabled Persons Prescription Drug Discount Program Act (now 
23the Illinois Prescription Drug Discount Program Act), and the 
24Children's Health Insurance Program Act. The adoption of 
25emergency rules authorized by this subsection (k) shall be 
26deemed to be necessary for the public interest, safety, and 
 
 
10100SB0690ham003- 272 -LRB101 04451 SMS 61572 a


1welfare.

2 (l) In order to provide for the expeditious and timely 
3implementation of the provisions of the
State's fiscal year 
42007 budget, the Department of Healthcare and Family Services 
5may adopt emergency rules during fiscal year 2007, including 
6rules effective July 1, 2007, in
accordance with this 
7subsection to the extent necessary to administer the 
8Department's responsibilities with respect to amendments to 
9the State plans and Illinois waivers approved by the federal 
10Centers for Medicare and Medicaid Services necessitated by the 
11requirements of Title XIX and Title XXI of the federal Social 
12Security Act. The adoption of emergency rules
authorized by 
13this subsection (l) shall be deemed to be necessary for the 
14public interest,
safety, and welfare.

15 (m) In order to provide for the expeditious and timely 
16implementation of the provisions of the
State's fiscal year 
172008 budget, the Department of Healthcare and Family Services 
18may adopt emergency rules during fiscal year 2008, including 
19rules effective July 1, 2008, in
accordance with this 
20subsection to the extent necessary to administer the 
21Department's responsibilities with respect to amendments to 
22the State plans and Illinois waivers approved by the federal 
23Centers for Medicare and Medicaid Services necessitated by the 
24requirements of Title XIX and Title XXI of the federal Social 
25Security Act. The adoption of emergency rules
authorized by 
26this subsection (m) shall be deemed to be necessary for the 
 
 
10100SB0690ham003- 273 -LRB101 04451 SMS 61572 a


1public interest,
safety, and welfare.

2 (n) In order to provide for the expeditious and timely 
3implementation of the provisions of the State's fiscal year 
42010 budget, emergency rules to implement any provision of 
5Public Act 96-45 or any other budget initiative authorized by 
6the 96th General Assembly for fiscal year 2010 may be adopted 
7in accordance with this Section by the agency charged with 
8administering that provision or initiative. The adoption of 
9emergency rules authorized by this subsection (n) shall be 
10deemed to be necessary for the public interest, safety, and 
11welfare. The rulemaking authority granted in this subsection 
12(n) shall apply only to rules promulgated during Fiscal Year 
132010. 
14 (o) In order to provide for the expeditious and timely 
15implementation of the provisions of the State's fiscal year 
162011 budget, emergency rules to implement any provision of 
17Public Act 96-958 or any other budget initiative authorized by 
18the 96th General Assembly for fiscal year 2011 may be adopted 
19in accordance with this Section by the agency charged with 
20administering that provision or initiative. The adoption of 
21emergency rules authorized by this subsection (o) is deemed to 
22be necessary for the public interest, safety, and welfare. The 
23rulemaking authority granted in this subsection (o) applies 
24only to rules promulgated on or after July 1, 2010 (the 
25effective date of Public Act 96-958) through June 30, 2011. 
26 (p) In order to provide for the expeditious and timely 
 
 
10100SB0690ham003- 274 -LRB101 04451 SMS 61572 a


1implementation of the provisions of Public Act 97-689, 
2emergency rules to implement any provision of Public Act 97-689 
3may be adopted in accordance with this subsection (p) by the 
4agency charged with administering that provision or 
5initiative. The 150-day limitation of the effective period of 
6emergency rules does not apply to rules adopted under this 
7subsection (p), and the effective period may continue through 
8June 30, 2013. The 24-month limitation on the adoption of 
9emergency rules does not apply to rules adopted under this 
10subsection (p). The adoption of emergency rules authorized by 
11this subsection (p) is deemed to be necessary for the public 
12interest, safety, and welfare.
13 (q) In order to provide for the expeditious and timely 
14implementation of the provisions of Articles 7, 8, 9, 11, and 
1512 of Public Act 98-104, emergency rules to implement any 
16provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104 
17may be adopted in accordance with this subsection (q) by the 
18agency charged with administering that provision or 
19initiative. The 24-month limitation on the adoption of 
20emergency rules does not apply to rules adopted under this 
21subsection (q). The adoption of emergency rules authorized by 
22this subsection (q) is deemed to be necessary for the public 
23interest, safety, and welfare. 
24 (r) In order to provide for the expeditious and timely 
25implementation of the provisions of Public Act 98-651, 
26emergency rules to implement Public Act 98-651 may be adopted 
 
 
10100SB0690ham003- 275 -LRB101 04451 SMS 61572 a


1in accordance with this subsection (r) by the Department of 
2Healthcare and Family Services. The 24-month limitation on the 
3adoption of emergency rules does not apply to rules adopted 
4under this subsection (r). The adoption of emergency rules 
5authorized by this subsection (r) is deemed to be necessary for 
6the public interest, safety, and welfare. 
7 (s) In order to provide for the expeditious and timely 
8implementation of the provisions of Sections 5-5b.1 and 5A-2 of 
9the Illinois Public Aid Code, emergency rules to implement any 
10provision of Section 5-5b.1 or Section 5A-2 of the Illinois 
11Public Aid Code may be adopted in accordance with this 
12subsection (s) by the Department of Healthcare and Family 
13Services. The rulemaking authority granted in this subsection 
14(s) shall apply only to those rules adopted prior to July 1, 
152015. Notwithstanding any other provision of this Section, any 
16emergency rule adopted under this subsection (s) shall only 
17apply to payments made for State fiscal year 2015. The adoption 
18of emergency rules authorized by this subsection (s) is deemed 
19to be necessary for the public interest, safety, and welfare. 
20 (t) In order to provide for the expeditious and timely 
21implementation of the provisions of Article II of Public Act 
2299-6, emergency rules to implement the changes made by Article 
23II of Public Act 99-6 to the Emergency Telephone System Act may 
24be adopted in accordance with this subsection (t) by the 
25Department of State Police. The rulemaking authority granted in 
26this subsection (t) shall apply only to those rules adopted 
 
 
10100SB0690ham003- 276 -LRB101 04451 SMS 61572 a


1prior to July 1, 2016. The 24-month limitation on the adoption 
2of emergency rules does not apply to rules adopted under this 
3subsection (t). The adoption of emergency rules authorized by 
4this subsection (t) is deemed to be necessary for the public 
5interest, safety, and welfare. 
6 (u) In order to provide for the expeditious and timely 
7implementation of the provisions of the Burn Victims Relief 
8Act, emergency rules to implement any provision of the Act may 
9be adopted in accordance with this subsection (u) by the 
10Department of Insurance. The rulemaking authority granted in 
11this subsection (u) shall apply only to those rules adopted 
12prior to December 31, 2015. The adoption of emergency rules 
13authorized by this subsection (u) is deemed to be necessary for 
14the public interest, safety, and welfare.
15 (v) In order to provide for the expeditious and timely 
16implementation of the provisions of Public Act 99-516, 
17emergency rules to implement Public Act 99-516 may be adopted 
18in accordance with this subsection (v) by the Department of 
19Healthcare and Family Services. The 24-month limitation on the 
20adoption of emergency rules does not apply to rules adopted 
21under this subsection (v). The adoption of emergency rules 
22authorized by this subsection (v) is deemed to be necessary for 
23the public interest, safety, and welfare.
24 (w) In order to provide for the expeditious and timely 
25implementation of the provisions of Public Act 99-796, 
26emergency rules to implement the changes made by Public Act 
 
 
10100SB0690ham003- 277 -LRB101 04451 SMS 61572 a


199-796 may be adopted in accordance with this subsection (w) by 
2the Adjutant General. The adoption of emergency rules 
3authorized by this subsection (w) is deemed to be necessary for 
4the public interest, safety, and welfare. 
5 (x) In order to provide for the expeditious and timely 
6implementation of the provisions of Public Act 99-906, 
7emergency rules to implement subsection (i) of Section 16-115D, 
8subsection (g) of Section 16-128A, and subsection (a) of 
9Section 16-128B of the Public Utilities Act may be adopted in 
10accordance with this subsection (x) by the Illinois Commerce 
11Commission. The rulemaking authority granted in this 
12subsection (x) shall apply only to those rules adopted within 
13180 days after June 1, 2017 (the effective date of Public Act 
1499-906). The adoption of emergency rules authorized by this 
15subsection (x) is deemed to be necessary for the public 
16interest, safety, and welfare. 
17 (y) In order to provide for the expeditious and timely 
18implementation of the provisions of Public Act 100-23, 
19emergency rules to implement the changes made by Public Act 
20100-23 to Section 4.02 of the Illinois Act on the Aging, 
21Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code, 
22Section 55-30 of the Alcoholism and Other Drug Abuse and 
23Dependency Act, and Sections 74 and 75 of the Mental Health and 
24Developmental Disabilities Administrative Act may be adopted 
25in accordance with this subsection (y) by the respective 
26Department. The adoption of emergency rules authorized by this 
 
 
10100SB0690ham003- 278 -LRB101 04451 SMS 61572 a


1subsection (y) is deemed to be necessary for the public 
2interest, safety, and welfare. 
3 (z) In order to provide for the expeditious and timely 
4implementation of the provisions of Public Act 100-554, 
5emergency rules to implement the changes made by Public Act 
6100-554 to Section 4.7 of the Lobbyist Registration Act may be 
7adopted in accordance with this subsection (z) by the Secretary 
8of State. The adoption of emergency rules authorized by this 
9subsection (z) is deemed to be necessary for the public 
10interest, safety, and welfare. 
11 (aa) In order to provide for the expeditious and timely 
12initial implementation of the changes made to Articles 5, 5A, 
1312, and 14 of the Illinois Public Aid Code under the provisions 
14of Public Act 100-581, the Department of Healthcare and Family 
15Services may adopt emergency rules in accordance with this 
16subsection (aa). The 24-month limitation on the adoption of 
17emergency rules does not apply to rules to initially implement 
18the changes made to Articles 5, 5A, 12, and 14 of the Illinois 
19Public Aid Code adopted under this subsection (aa). The 
20adoption of emergency rules authorized by this subsection (aa) 
21is deemed to be necessary for the public interest, safety, and 
22welfare. 
23 (bb) In order to provide for the expeditious and timely 
24implementation of the provisions of Public Act 100-587, 
25emergency rules to implement the changes made by Public Act 
26100-587 to Section 4.02 of the Illinois Act on the Aging, 
 
 
10100SB0690ham003- 279 -LRB101 04451 SMS 61572 a


1Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code, 
2subsection (b) of Section 55-30 of the Alcoholism and Other 
3Drug Abuse and Dependency Act, Section 5-104 of the Specialized 
4Mental Health Rehabilitation Act of 2013, and Section 75 and 
5subsection (b) of Section 74 of the Mental Health and 
6Developmental Disabilities Administrative Act may be adopted 
7in accordance with this subsection (bb) by the respective 
8Department. The adoption of emergency rules authorized by this 
9subsection (bb) is deemed to be necessary for the public 
10interest, safety, and welfare. 
11 (cc) In order to provide for the expeditious and timely 
12implementation of the provisions of Public Act 100-587, 
13emergency rules may be adopted in accordance with this 
14subsection (cc) to implement the changes made by Public Act 
15100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois 
16Pension Code by the Board created under Article 14 of the Code; 
17Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by 
18the Board created under Article 15 of the Code; and Sections 
1916-190.5 and 16-190.6 of the Illinois Pension Code by the Board 
20created under Article 16 of the Code. The adoption of emergency 
21rules authorized by this subsection (cc) is deemed to be 
22necessary for the public interest, safety, and welfare. 
23 (dd) In order to provide for the expeditious and timely 
24implementation of the provisions of Public Act 100-864, 
25emergency rules to implement the changes made by Public Act 
26100-864 to Section 3.35 of the Newborn Metabolic Screening Act 
 
 
10100SB0690ham003- 280 -LRB101 04451 SMS 61572 a


1may be adopted in accordance with this subsection (dd) by the 
2Secretary of State. The adoption of emergency rules authorized 
3by this subsection (dd) is deemed to be necessary for the 
4public interest, safety, and welfare. 
5 (ee) In order to provide for the expeditious and timely 
6implementation of the provisions of Public Act 100-1172 this 
7amendatory Act of the 100th General Assembly, emergency rules 
8implementing the Illinois Underground Natural Gas Storage 
9Safety Act may be adopted in accordance with this subsection by 
10the Department of Natural Resources. The adoption of emergency 
11rules authorized by this subsection is deemed to be necessary 
12for the public interest, safety, and welfare.
13 (ff) (ee) In order to provide for the expeditious and 
14timely initial implementation of the changes made to Articles 
155A and 14 of the Illinois Public Aid Code under the provisions 
16of Public Act 100-1181 this amendatory Act of the 100th General 
17Assembly, the Department of Healthcare and Family Services may 
18on a one-time-only basis adopt emergency rules in accordance 
19with this subsection (ff) (ee). The 24-month limitation on the 
20adoption of emergency rules does not apply to rules to 
21initially implement the changes made to Articles 5A and 14 of 
22the Illinois Public Aid Code adopted under this subsection (ff) 
23(ee). The adoption of emergency rules authorized by this 
24subsection (ff) (ee) is deemed to be necessary for the public 
25interest, safety, and welfare. 
26 (gg) (ff) In order to provide for the expeditious and 
 
 
10100SB0690ham003- 281 -LRB101 04451 SMS 61572 a


1timely implementation of the provisions of Public Act 101-1 
2this amendatory Act of the 101st General Assembly, emergency 
3rules may be adopted by the Department of Labor in accordance 
4with this subsection (gg) (ff) to implement the changes made by 
5Public Act 101-1 this amendatory Act of the 101st General 
6Assembly to the Minimum Wage Law. The adoption of emergency 
7rules authorized by this subsection (gg) (ff) is deemed to be 
8necessary for the public interest, safety, and welfare. 
9 (ii) In order to provide for the expeditious and timely 
10implementation of the provisions of Section 25-70 of the Sports 
11Wagering Act, emergency rules to implement Section 25-70 of the 
12Sports Wagering Act may be adopted in accordance with this 
13subsection (ii) by the Department of the Lottery as provided in 
14the Sports Wagering Act. The adoption of emergency rules 
15authorized by this subsection (ii) is deemed to be necessary 
16for the public interest, safety, and welfare. 
17 (jj) In order to provide for the expeditious and timely 
18implementation of the Sports Wagering Act, emergency rules to 
19implement the Sports Wagering Act may be adopted in accordance 
20with this subsection (jj) by the Illinois Gaming Board. The 
21adoption of emergency rules authorized by this subsection (jj) 
22is deemed to be necessary for the public interest, safety, and 
23welfare. 
24(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17; 
25100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff. 
266-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18; 
 
 
10100SB0690ham003- 282 -LRB101 04451 SMS 61572 a


1100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff. 
23-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)

3 Section 25-905. The State Finance Act is amended by adding 
4Section 5.896 as follows:

5 (30 ILCS 105/5.896 new)
6 Sec. 5.896. The Sports Wagering Fund.

7 Section 25-910. The Riverboat Gambling Act is amended by 
8changing Section 13 as follows:




9 (230 ILCS 10/13) (from Ch. 120, par. 2413)


10 Sec. 13. Wagering tax; rate; distribution. 

11 (a) Until January 1, 1998, a tax is imposed on the adjusted 
12gross
receipts received from gambling games authorized under 
13this Act at the rate of
20%.

14 (a-1) From January 1, 1998 until July 1, 2002, a privilege 
15tax is
imposed on persons engaged in the business of conducting 
16riverboat gambling
operations, based on the adjusted gross 
17receipts received by a licensed owner
from gambling games 
18authorized under this Act at the following rates:


19  15% of annual adjusted gross receipts up to and 
20 including $25,000,000;


21  20% of annual adjusted gross receipts in excess of 
22 $25,000,000 but not
exceeding $50,000,000;


 
 
10100SB0690ham003- 283 -LRB101 04451 SMS 61572 a


1  25% of annual adjusted gross receipts in excess of 
2 $50,000,000 but not
exceeding $75,000,000;


3  30% of annual adjusted gross receipts in excess of 
4 $75,000,000 but not
exceeding $100,000,000;


5  35% of annual adjusted gross receipts in excess of 
6 $100,000,000.

7 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax 
8is imposed on
persons engaged in the business of conducting 
9riverboat gambling operations,
other than licensed managers 
10conducting riverboat gambling operations on behalf
of the 
11State, based on the adjusted gross receipts received by a 
12licensed
owner from gambling games authorized under this Act at 
13the following rates:


14  15% of annual adjusted gross receipts up to and 
15 including $25,000,000;


16  22.5% of annual adjusted gross receipts in excess of 
17 $25,000,000 but not
exceeding $50,000,000;


18  27.5% of annual adjusted gross receipts in excess of 
19 $50,000,000 but not
exceeding $75,000,000;


20  32.5% of annual adjusted gross receipts in excess of 
21 $75,000,000 but not
exceeding $100,000,000;


22  37.5% of annual adjusted gross receipts in excess of 
23 $100,000,000 but not
exceeding $150,000,000;


24  45% of annual adjusted gross receipts in excess of 
25 $150,000,000 but not
exceeding $200,000,000;


26  50% of annual adjusted gross receipts in excess of 
 
 
10100SB0690ham003- 284 -LRB101 04451 SMS 61572 a


1 $200,000,000.

2 (a-3) Beginning July 1, 2003, a privilege tax is imposed on 
3persons engaged
in the business of conducting riverboat 
4gambling operations, other than
licensed managers conducting 
5riverboat gambling operations on behalf of the
State, based on 
6the adjusted gross receipts received by a licensed owner from

7gambling games authorized under this Act at the following 
8rates:


9  15% of annual adjusted gross receipts up to and 
10 including $25,000,000;


11  27.5% of annual adjusted gross receipts in excess of 
12 $25,000,000 but not
exceeding $37,500,000;


13  32.5% of annual adjusted gross receipts in excess of 
14 $37,500,000 but not
exceeding $50,000,000;


15  37.5% of annual adjusted gross receipts in excess of 
16 $50,000,000 but not
exceeding $75,000,000;


17  45% of annual adjusted gross receipts in excess of 
18 $75,000,000 but not
exceeding $100,000,000;


19  50% of annual adjusted gross receipts in excess of 
20 $100,000,000 but not
exceeding $250,000,000;


21  70% of annual adjusted gross receipts in excess of 
22 $250,000,000.

23 An amount equal to the amount of wagering taxes collected 
24under this
subsection (a-3) that are in addition to the amount 
25of wagering taxes that
would have been collected if the 
26wagering tax rates under subsection (a-2)
were in effect shall 
 
 
10100SB0690ham003- 285 -LRB101 04451 SMS 61572 a


1be paid into the Common School Fund.

2 The privilege tax imposed under this subsection (a-3) shall 
3no longer be
imposed beginning on the earlier of (i) July 1, 
42005; (ii) the first date
after June 20, 2003 that riverboat 
5gambling operations are conducted
pursuant to a dormant 
6license; or (iii) the first day that riverboat gambling

7operations are conducted under the authority of an owners 
8license that is in
addition to the 10 owners licenses initially 
9authorized under this Act.
For the purposes of this subsection 
10(a-3), the term "dormant license"
means an owners license that 
11is authorized by this Act under which no
riverboat gambling 
12operations are being conducted on June 20, 2003.

13 (a-4) Beginning on the first day on which the tax imposed 
14under
subsection (a-3) is no longer imposed, a privilege tax is 
15imposed on persons
engaged in the business of conducting 
16riverboat gambling operations, other
than licensed managers 
17conducting riverboat gambling operations on behalf of
the 
18State, based on the adjusted gross receipts received by a 
19licensed owner
from gambling games authorized under this Act at 
20the following rates:


21  15% of annual adjusted gross receipts up to and 
22 including $25,000,000;


23  22.5% of annual adjusted gross receipts in excess of 
24 $25,000,000 but not
exceeding $50,000,000;


25  27.5% of annual adjusted gross receipts in excess of 
26 $50,000,000 but not
exceeding $75,000,000;


 
 
10100SB0690ham003- 286 -LRB101 04451 SMS 61572 a


1  32.5% of annual adjusted gross receipts in excess of 
2 $75,000,000 but not
exceeding $100,000,000;


3  37.5% of annual adjusted gross receipts in excess of 
4 $100,000,000 but not
exceeding $150,000,000;


5  45% of annual adjusted gross receipts in excess of 
6 $150,000,000 but not
exceeding $200,000,000;


7  50% of annual adjusted gross receipts in excess of 
8 $200,000,000.

9 (a-8) Riverboat gambling operations conducted by a 
10licensed manager on
behalf of the State are not subject to the 
11tax imposed under this Section.

12 (a-10) The taxes imposed by this Section shall be paid by 
13the licensed
owner to the Board not later than 5:00 o'clock 
14p.m. of the day after the day
when the wagers were made.

15 (a-15) If the privilege tax imposed under subsection (a-3) 
16is no longer imposed pursuant to item (i) of the last paragraph 
17of subsection (a-3), then by June 15 of each year, each owners 
18licensee, other than an owners licensee that admitted 1,000,000 
19persons or
fewer in calendar year 2004, must, in addition to 
20the payment of all amounts otherwise due under this Section, 
21pay to the Board a reconciliation payment in the amount, if 
22any, by which the licensed owner's base amount exceeds the 
23amount of net privilege tax paid by the licensed owner to the 
24Board in the then current State fiscal year. A licensed owner's 
25net privilege tax obligation due for the balance of the State 
26fiscal year shall be reduced up to the total of the amount paid 
 
 
10100SB0690ham003- 287 -LRB101 04451 SMS 61572 a


1by the licensed owner in its June 15 reconciliation payment. 
2The obligation imposed by this subsection (a-15) is binding on 
3any person, firm, corporation, or other entity that acquires an 
4ownership interest in any such owners license. The obligation 
5imposed under this subsection (a-15) terminates on the earliest 
6of: (i) July 1, 2007, (ii) the first day after the effective 
7date of this amendatory Act of the 94th General Assembly that 
8riverboat gambling operations are conducted pursuant to a 
9dormant license, (iii) the first day that riverboat gambling 
10operations are conducted under the authority of an owners 
11license that is in addition to the 10 owners licenses initially 
12authorized under this Act, or (iv) the first day that a 
13licensee under the Illinois Horse Racing Act of 1975 conducts 
14gaming operations with slot machines or other electronic gaming 
15devices. The Board must reduce the obligation imposed under 
16this subsection (a-15) by an amount the Board deems reasonable 
17for any of the following reasons: (A) an act or acts of God, 
18(B) an act of bioterrorism or terrorism or a bioterrorism or 
19terrorism threat that was investigated by a law enforcement 
20agency, or (C) a condition beyond the control of the owners 
21licensee that does not result from any act or omission by the 
22owners licensee or any of its agents and that poses a hazardous 
23threat to the health and safety of patrons. If an owners 
24licensee pays an amount in excess of its liability under this 
25Section, the Board shall apply the overpayment to future 
26payments required under this Section.
 
 
10100SB0690ham003- 288 -LRB101 04451 SMS 61572 a


1 For purposes of this subsection (a-15):
2 "Act of God" means an incident caused by the operation of 
3an extraordinary force that cannot be foreseen, that cannot be 
4avoided by the exercise of due care, and for which no person 
5can be held liable.

6 "Base amount" means the following:
7  For a riverboat in Alton, $31,000,000.

8  For a riverboat in East Peoria, $43,000,000.

9  For the Empress riverboat in Joliet, $86,000,000.

10  For a riverboat in Metropolis, $45,000,000.

11  For the Harrah's riverboat in Joliet, $114,000,000.

12  For a riverboat in Aurora, $86,000,000.

13  For a riverboat in East St. Louis, $48,500,000.

14  For a riverboat in Elgin, $198,000,000.

15 "Dormant license" has the meaning ascribed to it in 
16subsection (a-3).

17 "Net privilege tax" means all privilege taxes paid by a 
18licensed owner to the Board under this Section, less all 
19payments made from the State Gaming Fund pursuant to subsection 
20(b) of this Section.
21 The changes made to this subsection (a-15) by Public Act 
2294-839 are intended to restate and clarify the intent of Public 
23Act 94-673 with respect to the amount of the payments required 
24to be made under this subsection by an owners licensee to the 
25Board.

26 (b) Until January 1, 1998, 25% of the tax revenue deposited 
 
 
10100SB0690ham003- 289 -LRB101 04451 SMS 61572 a


1in the State
Gaming Fund under this Section shall be paid, 
2subject to appropriation by the
General Assembly, to the unit 
3of local government which is designated as the
home dock of the 
4riverboat. Beginning January 1, 1998, from the tax revenue

5deposited in the State Gaming Fund under this Section, an 
6amount equal to 5% of
adjusted gross receipts generated by a 
7riverboat shall be paid monthly, subject
to appropriation by 
8the General Assembly, to the unit of local government that
is 
9designated as the home dock of the riverboat. From the tax 
10revenue
deposited in the State Gaming Fund pursuant to 
11riverboat gambling operations
conducted by a licensed manager 
12on behalf of the State, an amount equal to 5%
of adjusted gross 
13receipts generated pursuant to those riverboat gambling

14operations shall be paid monthly,
subject to appropriation by 
15the General Assembly, to the unit of local
government that is 
16designated as the home dock of the riverboat upon which
those 
17riverboat gambling operations are conducted.

18 (c) Appropriations, as approved by the General Assembly, 
19may be made
from the State Gaming Fund to the Board (i) for the 
20administration and enforcement of this Act and the Video Gaming 
21Act, (ii) for distribution to the Department of State Police 
22and to the Department of Revenue for the enforcement of this 
23Act, and (iii) to the
Department of Human Services for the 
24administration of programs to treat
problem gambling, 
25including problem gambling from sports wagering.

26 (c-5) Before May 26, 2006 (the effective date of Public Act 
 
 
10100SB0690ham003- 290 -LRB101 04451 SMS 61572 a


194-804) and beginning on the effective date of this amendatory 
2Act of the 95th General Assembly, unless any organization 
3licensee under the Illinois Horse Racing Act of 1975 begins to 
4operate a slot machine or video game of chance under the 
5Illinois Horse Racing Act of 1975 or this Act, after the 
6payments required under subsections (b) and (c) have been
made, 
7an amount equal to 15% of the adjusted gross receipts of (1) an 
8owners
licensee that relocates pursuant to Section 11.2,
(2) an 
9owners licensee
conducting riverboat gambling operations

10pursuant to an
owners license that is initially issued after 
11June
25, 1999,
or (3) the first
riverboat gambling operations 
12conducted by a licensed manager on behalf of the
State under 
13Section 7.3,
whichever comes first, shall be paid from the 
14State
Gaming Fund into the Horse Racing Equity Fund.

15 (c-10) Each year the General Assembly shall appropriate 
16from the General
Revenue Fund to the Education Assistance Fund 
17an amount equal to the amount
paid into the Horse Racing Equity 
18Fund pursuant to subsection (c-5) in the
prior calendar year.

19 (c-15) After the payments required under subsections (b), 
20(c), and (c-5)
have been made, an amount equal to 2% of the 
21adjusted gross receipts of (1)
an owners licensee that 
22relocates pursuant to Section 11.2, (2) an owners
licensee 
23conducting riverboat gambling operations pursuant to
an
owners 
24license that is initially issued after June 25, 1999,
or (3) 
25the first
riverboat gambling operations conducted by a licensed 
26manager on behalf of the
State under Section 7.3,
whichever 
 
 
10100SB0690ham003- 291 -LRB101 04451 SMS 61572 a


1comes first, shall be paid, subject to appropriation
from the 
2General Assembly, from the State Gaming Fund to each home rule

3county with a population of over 3,000,000 inhabitants for the 
4purpose of
enhancing the county's criminal justice system.

5 (c-20) Each year the General Assembly shall appropriate 
6from the General
Revenue Fund to the Education Assistance Fund 
7an amount equal to the amount
paid to each home rule county 
8with a population of over 3,000,000 inhabitants
pursuant to 
9subsection (c-15) in the prior calendar year.

10 (c-25) On July 1, 2013 and each July 1 thereafter, 
11$1,600,000 shall be transferred from the State Gaming Fund to 
12the Chicago State University Education Improvement Fund.

13 (c-30) On July 1, 2013 or as soon as possible thereafter, 
14$92,000,000 shall be transferred from the State Gaming Fund to 
15the School Infrastructure Fund and $23,000,000 shall be 
16transferred from the State Gaming Fund to the Horse Racing 
17Equity Fund. 
18 (c-35) Beginning on July 1, 2013, in addition to any amount 
19transferred under subsection (c-30) of this Section, 
20$5,530,000 shall be transferred monthly from the State Gaming 
21Fund to the School Infrastructure Fund. 
22 (d) From time to time, the
Board shall transfer the 
23remainder of the funds
generated by this Act into the Education

24Assistance Fund, created by Public Act 86-0018, of the State of 
25Illinois.

26 (e) Nothing in this Act shall prohibit the unit of local 
 
 
10100SB0690ham003- 292 -LRB101 04451 SMS 61572 a


1government
designated as the home dock of the riverboat from 
2entering into agreements
with other units of local government 
3in this State or in other states to
share its portion of the 
4tax revenue.

5 (f) To the extent practicable, the Board shall administer 
6and collect the
wagering taxes imposed by this Section in a 
7manner consistent with the
provisions of Sections 4, 5, 5a, 5b, 
85c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
6c, 8, 9, and 10 of the 
9Retailers' Occupation Tax Act and Section 3-7 of the
Uniform 
10Penalty and Interest Act.

11(Source: P.A. 98-18, eff. 6-7-13.)


12 Section 25-915. The Criminal Code of 2012 is amended by 
13changing Sections 28-1, 28-3, and 28-5 as follows:



14 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)



15 Sec. 28-1. Gambling. 

16 (a) A person commits gambling when he or she:

17  (1) knowingly plays a game of chance or skill for money 
18 or other thing of
value, unless excepted in subsection (b) 
19 of this Section;

20  (2) knowingly makes a wager upon the result of any 
21 game, contest, or any
political nomination, appointment or 
22 election;

23  (3) knowingly operates, keeps, owns, uses, purchases, 
24 exhibits, rents, sells,
bargains for the sale or lease of, 
 
 
10100SB0690ham003- 293 -LRB101 04451 SMS 61572 a


1 manufactures or distributes any
gambling device;

2  (4) contracts to have or give himself or herself or 
3 another the option to buy
or sell, or contracts to buy or 
4 sell, at a future time, any grain or
other commodity 
5 whatsoever, or any stock or security of any company,
where 
6 it is at the time of making such contract intended by both 
7 parties
thereto that the contract to buy or sell, or the 
8 option, whenever
exercised, or the contract resulting 
9 therefrom, shall be settled, not by
the receipt or delivery 
10 of such property, but by the payment only of
differences in 
11 prices thereof; however, the issuance, purchase, sale,

12 exercise, endorsement or guarantee, by or through a person 
13 registered
with the Secretary of State pursuant to Section 
14 8 of the Illinois
Securities Law of 1953, or by or through 
15 a person exempt from such
registration under said Section 
16 8, of a put, call, or other option to
buy or sell 
17 securities which have been registered with the Secretary of

18 State or which are exempt from such registration under 
19 Section 3 of the
Illinois Securities Law of 1953 is not 
20 gambling within the meaning of
this paragraph (4);

21  (5) knowingly owns or possesses any book, instrument or 
22 apparatus by
means of which bets or wagers have been, or 
23 are, recorded or registered,
or knowingly possesses any 
24 money which he has received in the course of
a bet or 
25 wager;

26  (6) knowingly sells pools upon the result of any game 
 
 
10100SB0690ham003- 294 -LRB101 04451 SMS 61572 a


1 or contest of skill or
chance, political nomination, 
2 appointment or election;

3  (7) knowingly sets up or promotes any lottery or sells, 
4 offers to sell or
transfers any ticket or share for any 
5 lottery;

6  (8) knowingly sets up or promotes any policy game or 
7 sells, offers to sell or
knowingly possesses or transfers 
8 any policy ticket, slip, record,
document or other similar 
9 device;

10  (9) knowingly drafts, prints or publishes any lottery 
11 ticket or share,
or any policy ticket, slip, record, 
12 document or similar device, except for
such activity 
13 related to lotteries, bingo games and raffles authorized by

14 and conducted in accordance with the laws of Illinois or 
15 any other state or
foreign government;

16  (10) knowingly advertises any lottery or policy game, 
17 except for such
activity related to lotteries, bingo games 
18 and raffles authorized by and
conducted in accordance with 
19 the laws of Illinois or any other state;

20  (11) knowingly transmits information as to wagers, 
21 betting odds, or
changes in betting odds by telephone, 
22 telegraph, radio, semaphore or
similar means; or knowingly 
23 installs or maintains equipment for the
transmission or 
24 receipt of such information; except that nothing in this

25 subdivision (11) prohibits transmission or receipt of such 
26 information
for use in news reporting of sporting events or 
 
 
10100SB0690ham003- 295 -LRB101 04451 SMS 61572 a


1 contests; or

2  (12) knowingly establishes, maintains, or operates an 
3 Internet site that
permits a person to play a game of

4 chance or skill for money or other thing of value by means 
5 of the Internet or
to make a wager upon the
result of any 
6 game, contest, political nomination, appointment, or

7 election by means of the Internet. This item (12) does not 
8 apply to activities referenced in items (6), and (6.1), and 
9 (15) of subsection (b) of this Section. 

10 (b) Participants in any of the following activities shall 
11not be
convicted of gambling:

12  (1) Agreements to compensate for loss caused by the 
13 happening of
chance including without limitation contracts 
14 of indemnity or guaranty
and life or health or accident 
15 insurance.

16  (2) Offers of prizes, award or compensation to the 
17 actual
contestants in any bona fide contest for the 
18 determination of skill,
speed, strength or endurance or to 
19 the owners of animals or vehicles
entered in such contest.

20  (3) Pari-mutuel betting as authorized by the law of 
21 this State.

22  (4) Manufacture of gambling devices, including the 
23 acquisition of
essential parts therefor and the assembly 
24 thereof, for transportation in
interstate or foreign 
25 commerce to any place outside this State when such

26 transportation is not prohibited by any applicable Federal 
 
 
10100SB0690ham003- 296 -LRB101 04451 SMS 61572 a


1 law; or the
manufacture, distribution, or possession of 
2 video gaming terminals, as
defined in the Video Gaming Act, 
3 by manufacturers, distributors, and
terminal operators 
4 licensed to do so under the Video Gaming Act.

5  (5) The game commonly known as "bingo", when conducted 
6 in accordance
with the Bingo License and Tax Act.

7  (6) Lotteries when conducted by the State of Illinois 
8 in accordance
with the Illinois Lottery Law. This exemption 
9 includes any activity conducted by the Department of 
10 Revenue to sell lottery tickets pursuant to the provisions 
11 of the Illinois Lottery Law and its rules.

12  (6.1) The purchase of lottery tickets through the 
13 Internet for a lottery conducted by the State of Illinois 
14 under the program established in Section 7.12 of the 
15 Illinois Lottery Law.

16  (7) Possession of an antique slot machine that is 
17 neither used nor
intended to be used in the operation or 
18 promotion of any unlawful
gambling activity or enterprise. 
19 For the purpose of this subparagraph
(b)(7), an antique 
20 slot machine is one manufactured 25 years ago or earlier.

21  (8) Raffles and poker runs when conducted in accordance 
22 with the Raffles and Poker Runs Act.

23  (9) Charitable games when conducted in accordance with 
24 the Charitable
Games Act.

25  (10) Pull tabs and jar games when conducted under the 
26 Illinois Pull
Tabs and Jar Games Act.

 
 
10100SB0690ham003- 297 -LRB101 04451 SMS 61572 a


1  (11) Gambling games conducted on riverboats when

2 authorized by the Riverboat Gambling Act.

3  (12) Video gaming terminal games at a licensed 
4 establishment, licensed truck stop establishment,
licensed

5 fraternal establishment, or licensed veterans 
6 establishment when
conducted in accordance with the Video 
7 Gaming Act. 
8  (13) Games of skill or chance where money or other 
9 things of value can be won but no payment or purchase is 
10 required to participate. 
11  (14) Savings promotion raffles authorized under 
12 Section 5g of the Illinois Banking Act, Section 7008 of the 
13 Savings Bank Act, Section 42.7 of the Illinois Credit Union 
14 Act, Section 5136B of the National Bank Act (12 U.S.C. 
15 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C. 
16 1463). 
17  (15) Sports wagering when conducted in accordance with 
18 the Sports Wagering Act. 
19 (c) Sentence.

20 Gambling is a
Class A misdemeanor. A second or
subsequent 
21conviction under subsections (a)(3) through (a)(12),
is a Class 
224 felony.

23 (d) Circumstantial evidence.

24 In prosecutions under
this
Section circumstantial evidence 
25shall have the same validity and weight as
in any criminal 
26prosecution.

 
 
10100SB0690ham003- 298 -LRB101 04451 SMS 61572 a


1(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)





2 (720 ILCS 5/28-3)
 (from Ch. 38, par. 28-3)



3 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is 
4any real
estate, vehicle, boat or any other property whatsoever 
5used for the
purposes of gambling other than gambling conducted 
6in the manner authorized
by the Riverboat Gambling Act, the 
7Sports Wagering Act, or the Video Gaming Act. Any person who

8knowingly permits any premises
or property owned or occupied by 
9him or under his control to be used as a
gambling place commits 
10a Class A misdemeanor. Each subsequent offense is a
Class 4 
11felony. When any premises is determined by the circuit court to 
12be
a gambling place:

13 (a) Such premises is a public nuisance and may be proceeded 
14against as such,
and

15 (b) All licenses, permits or certificates issued by the 
16State of
Illinois or any subdivision or public agency thereof 
17authorizing the
serving of food or liquor on such premises 
18shall be void; and no license,
permit or certificate so 
19cancelled shall be reissued for such premises for
a period of 
2060 days thereafter; nor shall any person convicted of keeping a

21gambling place be reissued such license
for one year from his 
22conviction and, after a second conviction of keeping
a gambling 
23place, any such person shall not be reissued such license, and

24 (c) Such premises of any person who knowingly permits 
25thereon a
violation of any Section of this Article shall be 
 
 
10100SB0690ham003- 299 -LRB101 04451 SMS 61572 a


1held liable for, and may
be sold to pay any unsatisfied 
2judgment that may be recovered and any
unsatisfied fine that 
3may be levied under any Section of this Article.

4(Source: P.A. 96-34, eff. 7-13-09.)




5 (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)



6 Sec. 28-5. Seizure of gambling devices and gambling funds. 

7 (a) Every device designed for gambling which is incapable 
8of lawful use
or every device used unlawfully for gambling 
9shall be considered a
"gambling device", and shall be subject 
10to seizure, confiscation and
destruction by the Department of 
11State Police or by any municipal, or other
local authority, 
12within whose jurisdiction the same may be found. As used
in 
13this Section, a "gambling device" includes any slot machine, 
14and
includes any machine or device constructed for the 
15reception of money or
other thing of value and so constructed 
16as to return, or to cause someone
to return, on chance to the 
17player thereof money, property or a right to
receive money or 
18property. With the exception of any device designed for

19gambling which is incapable of lawful use, no gambling device 
20shall be
forfeited or destroyed unless an individual with a 
21property interest in
said device knows of the unlawful use of 
22the device.

23 (b) Every gambling device shall be seized and forfeited to 
24the county
wherein such seizure occurs. Any money or other 
25thing of value integrally
related to acts of gambling shall be 
 
 
10100SB0690ham003- 300 -LRB101 04451 SMS 61572 a


1seized and forfeited to the county
wherein such seizure occurs.

2 (c) If, within 60 days after any seizure pursuant to 
3subparagraph
(b) of this Section, a person having any property 
4interest in the seized
property is charged with an offense, the 
5court which renders judgment
upon such charge shall, within 30 
6days after such judgment, conduct a
forfeiture hearing to 
7determine whether such property was a gambling device
at the 
8time of seizure. Such hearing shall be commenced by a written

9petition by the State, including material allegations of fact, 
10the name
and address of every person determined by the State to 
11have any property
interest in the seized property, a 
12representation that written notice of
the date, time and place 
13of such hearing has been mailed to every such
person by 
14certified mail at least 10 days before such date, and a
request 
15for forfeiture. Every such person may appear as a party and

16present evidence at such hearing. The quantum of proof required 
17shall
be a preponderance of the evidence, and the burden of 
18proof shall be on
the State. If the court determines that the 
19seized property was
a gambling device at the time of seizure, 
20an order of forfeiture and
disposition of the seized property 
21shall be entered: a gambling device
shall be received by the 
22State's Attorney, who shall effect its
destruction, except that 
23valuable parts thereof may be liquidated and
the resultant 
24money shall be deposited in the general fund of the county

25wherein such seizure occurred; money and other things of value 
26shall be
received by the State's Attorney and, upon 
 
 
10100SB0690ham003- 301 -LRB101 04451 SMS 61572 a


1liquidation, shall be
deposited in the general fund of the 
2county wherein such seizure
occurred. However, in the event 
3that a defendant raises the defense
that the seized slot 
4machine is an antique slot machine described in
subparagraph 
5(b) (7) of Section 28-1 of this Code and therefore he is
exempt 
6from the charge of a gambling activity participant, the seized

7antique slot machine shall not be destroyed or otherwise 
8altered until a
final determination is made by the Court as to 
9whether it is such an
antique slot machine. Upon a final 
10determination by the Court of this
question in favor of the 
11defendant, such slot machine shall be
immediately returned to 
12the defendant. Such order of forfeiture and
disposition shall, 
13for the purposes of appeal, be a final order and
judgment in a 
14civil proceeding.

15 (d) If a seizure pursuant to subparagraph (b) of this 
16Section is not
followed by a charge pursuant to subparagraph 
17(c) of this Section, or if
the prosecution of such charge is 
18permanently terminated or indefinitely
discontinued without 
19any judgment of conviction or acquittal (1) the
State's 
20Attorney shall commence an in rem proceeding for the forfeiture

21and destruction of a gambling device, or for the forfeiture and 
22deposit
in the general fund of the county of any seized money 
23or other things of
value, or both, in the circuit court and (2) 
24any person having any
property interest in such seized gambling 
25device, money or other thing
of value may commence separate 
26civil proceedings in the manner provided
by law.

 
 
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1 (e) Any gambling device displayed for sale to a riverboat 
2gambling
operation or used to train occupational licensees of a 
3riverboat gambling
operation as authorized under the Riverboat 
4Gambling Act is exempt from
seizure under this Section.

5 (f) Any gambling equipment, devices and supplies provided 
6by a licensed
supplier in accordance with the Riverboat 
7Gambling Act which are removed
from the riverboat for repair 
8are exempt from 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 (i) Any sports lottery terminals provided by a central 
23system provider that are removed from a lottery retailer for 
24repair under the Sports Wagering Act are exempt from seizure 
25under this Section. 
26(Source: P.A. 100-512, eff. 7-1-18.)


 
 
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1
Article 30.  State Fair Gaming Act


2 Section 30-1. Short title. This Article may be cited as the 
3State Fair Gaming Act. References in
this Article to "this Act" 
4mean this Article.

5 Section 30-5. Definitions. As used in this Act:
6 "Board" means the Illinois Gaming Board.
7 "State Fair" has the meaning given to that term in the 
8State Fair Act.

9 Section 30-10. Gambling at the State Fair. 
10 (a) The Board shall issue a licensed establishment license 
11as provided under Section 25 of the Video Gaming Act to a 
12concessioner who will operate at the Illinois State Fairgrounds 
13and at the DuQuoin State Fairgrounds. The concessioner shall be 
14chosen under the Illinois Procurement Code for an operational 
15period not to exceed 3 years. At the conclusion of each 3-year 
16cycle, the Illinois Procurement Code shall be used to determine 
17the new concessioner.
18 (b) Moneys bid by the concessioner shall be deposited into 
19the State Fairgrounds Capital Improvements and Harness Racing 
20Fund.

21 Section 30-15. Video gaming at the State Fair. 
 
 
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1 (a) The concessioner issued a licensed establishment 
2license under Section 30-10 may operate: (1) up to 50 video 
3gaming terminals as provided in the Video Gaming Act during the 
4scheduled dates of the Illinois State Fair; and (2) up to 30 
5video gaming terminals as provided in the Video Gaming Act 
6during the scheduled dates of the DuQuoin State Fair.
7 (b) No more than 10 video gaming terminals may be placed in 
8any temporary pavilion where alcoholic beverages are served at 
9either State Fair.

10 Section 30-20. Revenue. 
11 (a) Notwithstanding any other law to the contrary, a tax is 
12imposed at the rate of 35% of net terminal income received from 
13video gaming under this Act, which shall be remitted to the 
14Board and deposited into the State Fairgrounds Capital 
15Improvements and Harness Racing Fund.
16 (b) There is created within the State treasury the State 
17Fairgrounds Capital Improvements and Harness Racing Fund. The 
18Department of Agriculture shall use moneys in the State 
19Fairgrounds Capital Improvements and Harness Racing Fund as 
20follows and in the order of priority:
21  (1) to provide support for a harness race meeting 
22 produced by an organization licensee under the Illinois 
23 Horse Racing Act of 1975 and which shall consist of up to 
24 30 days of live racing per year at the Illinois State 
25 Fairgrounds in Springfield;
 
 
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1  (2) to repair and rehabilitate fairgrounds' 
2 backstretch facilities to such a level as determined by the 
3 Department of Agriculture to be required to carry out a 
4 program of live harness racing; and
5  (3) for the overall repair and rehabilitation of the 
6 capital infrastructure of: (i) the Illinois State 
7 Fairgrounds in Springfield, and (ii) the DuQuoin State 
8 Fairgrounds in DuQuoin, and for no other purpose.
9 Notwithstanding any other law to the contrary, the entire 
10State share of tax revenues from the race meetings under 
11paragraph (1) of this subsection (c) shall be reinvested into 
12the State Fairgrounds Capital Improvements and Harness Racing 
13Fund.

14 Section 30-25. Rules. The Board and the Department of 
15Agriculture may adopt rules for the implementation of this Act.

16 Section 30-900. The State Finance Act is amended by adding 
17Section 5.897 as follows:

18 (30 ILCS 105/5.897 new)
19 Sec. 5.897. The State Fairgrounds Capital Improvements and 
20Harness Racing Fund.

21
Article 35.  Amendatory Provisions


 
 
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1 Section 35-3. The Illinois Administrative Procedure Act is 
2amended by changing Section 5-45 as follows:

3 (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
4 Sec. 5-45. Emergency rulemaking. 
5 (a) "Emergency" means the existence of any situation that 
6any agency
finds reasonably constitutes a threat to the public 
7interest, safety, or
welfare.
8 (b) If any agency finds that an
emergency exists that 
9requires adoption of a rule upon fewer days than
is required by 
10Section 5-40 and states in writing its reasons for that

11finding, the agency may adopt an emergency rule without prior 
12notice or
hearing upon filing a notice of emergency rulemaking 
13with the Secretary of
State under Section 5-70. The notice 
14shall include the text of the
emergency rule and shall be 
15published in the Illinois Register. Consent
orders or other 
16court orders adopting settlements negotiated by an agency
may 
17be adopted under this Section. Subject to applicable 
18constitutional or
statutory provisions, an emergency rule 
19becomes effective immediately upon
filing under Section 5-65 or 
20at a stated date less than 10 days
thereafter. The agency's 
21finding and a statement of the specific reasons
for the finding 
22shall be filed with the rule. The agency shall take
reasonable 
23and appropriate measures to make emergency rules known to the

24persons who may be affected by them.
25 (c) An emergency rule may be effective for a period of not 
 
 
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1longer than
150 days, but the agency's authority to adopt an 
2identical rule under Section
5-40 is not precluded. No 
3emergency rule may be adopted more
than once in any 24-month 
4period, except that this limitation on the number
of emergency 
5rules that may be adopted in a 24-month period does not apply

6to (i) emergency rules that make additions to and deletions 
7from the Drug
Manual under Section 5-5.16 of the Illinois 
8Public Aid Code or the
generic drug formulary under Section 
93.14 of the Illinois Food, Drug
and Cosmetic Act, (ii) 
10emergency rules adopted by the Pollution Control
Board before 
11July 1, 1997 to implement portions of the Livestock Management

12Facilities Act, (iii) emergency rules adopted by the Illinois 
13Department of Public Health under subsections (a) through (i) 
14of Section 2 of the Department of Public Health Act when 
15necessary to protect the public's health, (iv) emergency rules 
16adopted pursuant to subsection (n) of this Section, (v) 
17emergency rules adopted pursuant to subsection (o) of this 
18Section, or (vi) emergency rules adopted pursuant to subsection 
19(c-5) of this Section. Two or more emergency rules having 
20substantially the same
purpose and effect shall be deemed to be 
21a single rule for purposes of this
Section.
22 (c-5) To facilitate the maintenance of the program of group 
23health benefits provided to annuitants, survivors, and retired 
24employees under the State Employees Group Insurance Act of 
251971, rules to alter the contributions to be paid by the State, 
26annuitants, survivors, retired employees, or any combination 
 
 
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1of those entities, for that program of group health benefits, 
2shall be adopted as emergency rules. The adoption of those 
3rules shall be considered an emergency and necessary for the 
4public interest, safety, and welfare. 
5 (d) In order to provide for the expeditious and timely 
6implementation
of the State's fiscal year 1999 budget, 
7emergency rules to implement any
provision of Public Act 90-587 
8or 90-588
or any other budget initiative for fiscal year 1999 
9may be adopted in
accordance with this Section by the agency 
10charged with administering that
provision or initiative, 
11except that the 24-month limitation on the adoption
of 
12emergency rules and the provisions of Sections 5-115 and 5-125 
13do not apply
to rules adopted under this subsection (d). The 
14adoption of emergency rules
authorized by this subsection (d) 
15shall be deemed to be necessary for the
public interest, 
16safety, and welfare.
17 (e) In order to provide for the expeditious and timely 
18implementation
of the State's fiscal year 2000 budget, 
19emergency rules to implement any
provision of Public Act 91-24

20or any other budget initiative for fiscal year 2000 may be 
21adopted in
accordance with this Section by the agency charged 
22with administering that
provision or initiative, except that 
23the 24-month limitation on the adoption
of emergency rules and 
24the provisions of Sections 5-115 and 5-125 do not apply
to 
25rules adopted under this subsection (e). The adoption of 
26emergency rules
authorized by this subsection (e) shall be 
 
 
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1deemed to be necessary for the
public interest, safety, and 
2welfare.
3 (f) In order to provide for the expeditious and timely 
4implementation
of the State's fiscal year 2001 budget, 
5emergency rules to implement any
provision of Public Act 91-712

6or any other budget initiative for fiscal year 2001 may be 
7adopted in
accordance with this Section by the agency charged 
8with administering that
provision or initiative, except that 
9the 24-month limitation on the adoption
of emergency rules and 
10the provisions of Sections 5-115 and 5-125 do not apply
to 
11rules adopted under this subsection (f). The adoption of 
12emergency rules
authorized by this subsection (f) shall be 
13deemed to be necessary for the
public interest, safety, and 
14welfare.
15 (g) In order to provide for the expeditious and timely 
16implementation
of the State's fiscal year 2002 budget, 
17emergency rules to implement any
provision of Public Act 92-10

18or any other budget initiative for fiscal year 2002 may be 
19adopted in
accordance with this Section by the agency charged 
20with administering that
provision or initiative, except that 
21the 24-month limitation on the adoption
of emergency rules and 
22the provisions of Sections 5-115 and 5-125 do not apply
to 
23rules adopted under this subsection (g). The adoption of 
24emergency rules
authorized by this subsection (g) shall be 
25deemed to be necessary for the
public interest, safety, and 
26welfare.
 
 
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1 (h) In order to provide for the expeditious and timely 
2implementation
of the State's fiscal year 2003 budget, 
3emergency rules to implement any
provision of Public Act 92-597

4or any other budget initiative for fiscal year 2003 may be 
5adopted in
accordance with this Section by the agency charged 
6with administering that
provision or initiative, except that 
7the 24-month limitation on the adoption
of emergency rules and 
8the provisions of Sections 5-115 and 5-125 do not apply
to 
9rules adopted under this subsection (h). The adoption of 
10emergency rules
authorized by this subsection (h) shall be 
11deemed to be necessary for the
public interest, safety, and 
12welfare.
13 (i) In order to provide for the expeditious and timely 
14implementation
of the State's fiscal year 2004 budget, 
15emergency rules to implement any
provision of Public Act 93-20

16or any other budget initiative for fiscal year 2004 may be 
17adopted in
accordance with this Section by the agency charged 
18with administering that
provision or initiative, except that 
19the 24-month limitation on the adoption
of emergency rules and 
20the provisions of Sections 5-115 and 5-125 do not apply
to 
21rules adopted under this subsection (i). The adoption of 
22emergency rules
authorized by this subsection (i) shall be 
23deemed to be necessary for the
public interest, safety, and 
24welfare.
25 (j) In order to provide for the expeditious and timely 
26implementation of the provisions of the State's fiscal year 
 
 
10100SB0690ham003- 311 -LRB101 04451 SMS 61572 a


12005 budget as provided under the Fiscal Year 2005 Budget 
2Implementation (Human Services) Act, emergency rules to 
3implement any provision of the Fiscal Year 2005 Budget 
4Implementation (Human Services) Act may be adopted in 
5accordance with this Section by the agency charged with 
6administering that provision, except that the 24-month 
7limitation on the adoption of emergency rules and the 
8provisions of Sections 5-115 and 5-125 do not apply to rules 
9adopted under this subsection (j). The Department of Public Aid 
10may also adopt rules under this subsection (j) necessary to 
11administer the Illinois Public Aid Code and the Children's 
12Health Insurance Program Act. The adoption of emergency rules 
13authorized by this subsection (j) shall be deemed to be 
14necessary for the public interest, safety, and welfare.

15 (k) In order to provide for the expeditious and timely 
16implementation of the provisions of the State's fiscal year 
172006 budget, emergency rules to implement any provision of 
18Public Act 94-48 or any other budget initiative for fiscal year 
192006 may be adopted in accordance with this Section by the 
20agency charged with administering that provision or 
21initiative, except that the 24-month limitation on the adoption 
22of emergency rules and the provisions of Sections 5-115 and 
235-125 do not apply to rules adopted under this subsection (k). 
24The Department of Healthcare and Family Services may also adopt 
25rules under this subsection (k) necessary to administer the 
26Illinois Public Aid Code, the Senior Citizens and Persons with 
 
 
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1Disabilities Property Tax Relief Act, the Senior Citizens and 
2Disabled Persons Prescription Drug Discount Program Act (now 
3the Illinois Prescription Drug Discount Program Act), and the 
4Children's Health Insurance Program Act. The adoption of 
5emergency rules authorized by this subsection (k) shall be 
6deemed to be necessary for the public interest, safety, and 
7welfare.

8 (l) In order to provide for the expeditious and timely 
9implementation of the provisions of the
State's fiscal year 
102007 budget, the Department of Healthcare and Family Services 
11may adopt emergency rules during fiscal year 2007, including 
12rules effective July 1, 2007, in
accordance with this 
13subsection to the extent necessary to administer the 
14Department's responsibilities with respect to amendments to 
15the State plans and Illinois waivers approved by the federal 
16Centers for Medicare and Medicaid Services necessitated by the 
17requirements of Title XIX and Title XXI of the federal Social 
18Security Act. The adoption of emergency rules
authorized by 
19this subsection (l) shall be deemed to be necessary for the 
20public interest,
safety, and welfare.

21 (m) In order to provide for the expeditious and timely 
22implementation of the provisions of the
State's fiscal year 
232008 budget, the Department of Healthcare and Family Services 
24may adopt emergency rules during fiscal year 2008, including 
25rules effective July 1, 2008, in
accordance with this 
26subsection to the extent necessary to administer the 
 
 
10100SB0690ham003- 313 -LRB101 04451 SMS 61572 a


1Department's responsibilities with respect to amendments to 
2the State plans and Illinois waivers approved by the federal 
3Centers for Medicare and Medicaid Services necessitated by the 
4requirements of Title XIX and Title XXI of the federal Social 
5Security Act. The adoption of emergency rules
authorized by 
6this subsection (m) shall be deemed to be necessary for the 
7public interest,
safety, and welfare.

8 (n) In order to provide for the expeditious and timely 
9implementation of the provisions of the State's fiscal year 
102010 budget, emergency rules to implement any provision of 
11Public Act 96-45 or any other budget initiative authorized by 
12the 96th General Assembly for fiscal year 2010 may be adopted 
13in accordance with this Section by the agency charged with 
14administering that provision or initiative. The adoption of 
15emergency rules authorized by this subsection (n) shall be 
16deemed to be necessary for the public interest, safety, and 
17welfare. The rulemaking authority granted in this subsection 
18(n) shall apply only to rules promulgated during Fiscal Year 
192010. 
20 (o) In order to provide for the expeditious and timely 
21implementation of the provisions of the State's fiscal year 
222011 budget, emergency rules to implement any provision of 
23Public Act 96-958 or any other budget initiative authorized by 
24the 96th General Assembly for fiscal year 2011 may be adopted 
25in accordance with this Section by the agency charged with 
26administering that provision or initiative. The adoption of 
 
 
10100SB0690ham003- 314 -LRB101 04451 SMS 61572 a


1emergency rules authorized by this subsection (o) is deemed to 
2be necessary for the public interest, safety, and welfare. The 
3rulemaking authority granted in this subsection (o) applies 
4only to rules promulgated on or after July 1, 2010 (the 
5effective date of Public Act 96-958) through June 30, 2011. 
6 (p) In order to provide for the expeditious and timely 
7implementation of the provisions of Public Act 97-689, 
8emergency rules to implement any provision of Public Act 97-689 
9may be adopted in accordance with this subsection (p) by the 
10agency charged with administering that provision or 
11initiative. The 150-day limitation of the effective period of 
12emergency rules does not apply to rules adopted under this 
13subsection (p), and the effective period may continue through 
14June 30, 2013. The 24-month limitation on the adoption of 
15emergency rules does not apply to rules adopted under this 
16subsection (p). The adoption of emergency rules authorized by 
17this subsection (p) is deemed to be necessary for the public 
18interest, safety, and welfare.
19 (q) In order to provide for the expeditious and timely 
20implementation of the provisions of Articles 7, 8, 9, 11, and 
2112 of Public Act 98-104, emergency rules to implement any 
22provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104 
23may be adopted in accordance with this subsection (q) by the 
24agency charged with administering that provision or 
25initiative. The 24-month limitation on the adoption of 
26emergency rules does not apply to rules adopted under this 
 
 
10100SB0690ham003- 315 -LRB101 04451 SMS 61572 a


1subsection (q). The adoption of emergency rules authorized by 
2this subsection (q) is deemed to be necessary for the public 
3interest, safety, and welfare. 
4 (r) In order to provide for the expeditious and timely 
5implementation of the provisions of Public Act 98-651, 
6emergency rules to implement Public Act 98-651 may be adopted 
7in accordance with this subsection (r) by the Department of 
8Healthcare and Family Services. The 24-month limitation on the 
9adoption of emergency rules does not apply to rules adopted 
10under this subsection (r). The adoption of emergency rules 
11authorized by this subsection (r) is deemed to be necessary for 
12the public interest, safety, and welfare. 
13 (s) In order to provide for the expeditious and timely 
14implementation of the provisions of Sections 5-5b.1 and 5A-2 of 
15the Illinois Public Aid Code, emergency rules to implement any 
16provision of Section 5-5b.1 or Section 5A-2 of the Illinois 
17Public Aid Code may be adopted in accordance with this 
18subsection (s) by the Department of Healthcare and Family 
19Services. The rulemaking authority granted in this subsection 
20(s) shall apply only to those rules adopted prior to July 1, 
212015. Notwithstanding any other provision of this Section, any 
22emergency rule adopted under this subsection (s) shall only 
23apply to payments made for State fiscal year 2015. The adoption 
24of emergency rules authorized by this subsection (s) is deemed 
25to be necessary for the public interest, safety, and welfare. 
26 (t) In order to provide for the expeditious and timely 
 
 
10100SB0690ham003- 316 -LRB101 04451 SMS 61572 a


1implementation of the provisions of Article II of Public Act 
299-6, emergency rules to implement the changes made by Article 
3II of Public Act 99-6 to the Emergency Telephone System Act may 
4be adopted in accordance with this subsection (t) by the 
5Department of State Police. The rulemaking authority granted in 
6this subsection (t) shall apply only to those rules adopted 
7prior to July 1, 2016. The 24-month limitation on the adoption 
8of emergency rules does not apply to rules adopted under this 
9subsection (t). The adoption of emergency rules authorized by 
10this subsection (t) is deemed to be necessary for the public 
11interest, safety, and welfare. 
12 (u) In order to provide for the expeditious and timely 
13implementation of the provisions of the Burn Victims Relief 
14Act, emergency rules to implement any provision of the Act may 
15be adopted in accordance with this subsection (u) by the 
16Department of Insurance. The rulemaking authority granted in 
17this subsection (u) shall apply only to those rules adopted 
18prior to December 31, 2015. The adoption of emergency rules 
19authorized by this subsection (u) is deemed to be necessary for 
20the public interest, safety, and welfare.
21 (v) In order to provide for the expeditious and timely 
22implementation of the provisions of Public Act 99-516, 
23emergency rules to implement Public Act 99-516 may be adopted 
24in accordance with this subsection (v) by the Department of 
25Healthcare and Family Services. The 24-month limitation on the 
26adoption of emergency rules does not apply to rules adopted 
 
 
10100SB0690ham003- 317 -LRB101 04451 SMS 61572 a


1under this subsection (v). The adoption of emergency rules 
2authorized by this subsection (v) is deemed to be necessary for 
3the public interest, safety, and welfare.
4 (w) In order to provide for the expeditious and timely 
5implementation of the provisions of Public Act 99-796, 
6emergency rules to implement the changes made by Public Act 
799-796 may be adopted in accordance with this subsection (w) by 
8the Adjutant General. The adoption of emergency rules 
9authorized by this subsection (w) is deemed to be necessary for 
10the public interest, safety, and welfare. 
11 (x) In order to provide for the expeditious and timely 
12implementation of the provisions of Public Act 99-906, 
13emergency rules to implement subsection (i) of Section 16-115D, 
14subsection (g) of Section 16-128A, and subsection (a) of 
15Section 16-128B of the Public Utilities Act may be adopted in 
16accordance with this subsection (x) by the Illinois Commerce 
17Commission. The rulemaking authority granted in this 
18subsection (x) shall apply only to those rules adopted within 
19180 days after June 1, 2017 (the effective date of Public Act 
2099-906). The adoption of emergency rules authorized by this 
21subsection (x) is deemed to be necessary for the public 
22interest, safety, and welfare. 
23 (y) In order to provide for the expeditious and timely 
24implementation of the provisions of Public Act 100-23, 
25emergency rules to implement the changes made by Public Act 
26100-23 to Section 4.02 of the Illinois Act on the Aging, 
 
 
10100SB0690ham003- 318 -LRB101 04451 SMS 61572 a


1Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code, 
2Section 55-30 of the Alcoholism and Other Drug Abuse and 
3Dependency Act, and Sections 74 and 75 of the Mental Health and 
4Developmental Disabilities Administrative Act may be adopted 
5in accordance with this subsection (y) by the respective 
6Department. The adoption of emergency rules authorized by this 
7subsection (y) is deemed to be necessary for the public 
8interest, safety, and welfare. 
9 (z) In order to provide for the expeditious and timely 
10implementation of the provisions of Public Act 100-554, 
11emergency rules to implement the changes made by Public Act 
12100-554 to Section 4.7 of the Lobbyist Registration Act may be 
13adopted in accordance with this subsection (z) by the Secretary 
14of State. The adoption of emergency rules authorized by this 
15subsection (z) is deemed to be necessary for the public 
16interest, safety, and welfare. 
17 (aa) In order to provide for the expeditious and timely 
18initial implementation of the changes made to Articles 5, 5A, 
1912, and 14 of the Illinois Public Aid Code under the provisions 
20of Public Act 100-581, the Department of Healthcare and Family 
21Services may adopt emergency rules in accordance with this 
22subsection (aa). The 24-month limitation on the adoption of 
23emergency rules does not apply to rules to initially implement 
24the changes made to Articles 5, 5A, 12, and 14 of the Illinois 
25Public Aid Code adopted under this subsection (aa). The 
26adoption of emergency rules authorized by this subsection (aa) 
 
 
10100SB0690ham003- 319 -LRB101 04451 SMS 61572 a


1is deemed to be necessary for the public interest, safety, and 
2welfare. 
3 (bb) In order to provide for the expeditious and timely 
4implementation of the provisions of Public Act 100-587, 
5emergency rules to implement the changes made by Public Act 
6100-587 to Section 4.02 of the Illinois Act on the Aging, 
7Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code, 
8subsection (b) of Section 55-30 of the Alcoholism and Other 
9Drug Abuse and Dependency Act, Section 5-104 of the Specialized 
10Mental Health Rehabilitation Act of 2013, and Section 75 and 
11subsection (b) of Section 74 of the Mental Health and 
12Developmental Disabilities Administrative Act may be adopted 
13in accordance with this subsection (bb) by the respective 
14Department. The adoption of emergency rules authorized by this 
15subsection (bb) is deemed to be necessary for the public 
16interest, safety, and welfare. 
17 (cc) In order to provide for the expeditious and timely 
18implementation of the provisions of Public Act 100-587, 
19emergency rules may be adopted in accordance with this 
20subsection (cc) to implement the changes made by Public Act 
21100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois 
22Pension Code by the Board created under Article 14 of the Code; 
23Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by 
24the Board created under Article 15 of the Code; and Sections 
2516-190.5 and 16-190.6 of the Illinois Pension Code by the Board 
26created under Article 16 of the Code. The adoption of emergency 
 
 
10100SB0690ham003- 320 -LRB101 04451 SMS 61572 a


1rules authorized by this subsection (cc) is deemed to be 
2necessary for the public interest, safety, and welfare. 
3 (dd) In order to provide for the expeditious and timely 
4implementation of the provisions of Public Act 100-864, 
5emergency rules to implement the changes made by Public Act 
6100-864 to Section 3.35 of the Newborn Metabolic Screening Act 
7may be adopted in accordance with this subsection (dd) by the 
8Secretary of State. The adoption of emergency rules authorized 
9by this subsection (dd) is deemed to be necessary for the 
10public interest, safety, and welfare. 
11 (ee) In order to provide for the expeditious and timely 
12implementation of the provisions of Public Act 100-1172 this 
13amendatory Act of the 100th General Assembly, emergency rules 
14implementing the Illinois Underground Natural Gas Storage 
15Safety Act may be adopted in accordance with this subsection by 
16the Department of Natural Resources. The adoption of emergency 
17rules authorized by this subsection is deemed to be necessary 
18for the public interest, safety, and welfare.
19 (ff) (ee) In order to provide for the expeditious and 
20timely initial implementation of the changes made to Articles 
215A and 14 of the Illinois Public Aid Code under the provisions 
22of Public Act 100-1181 this amendatory Act of the 100th General 
23Assembly, the Department of Healthcare and Family Services may 
24on a one-time-only basis adopt emergency rules in accordance 
25with this subsection (ff) (ee). The 24-month limitation on the 
26adoption of emergency rules does not apply to rules to 
 
 
10100SB0690ham003- 321 -LRB101 04451 SMS 61572 a


1initially implement the changes made to Articles 5A and 14 of 
2the Illinois Public Aid Code adopted under this subsection (ff) 
3(ee). The adoption of emergency rules authorized by this 
4subsection (ff) (ee) is deemed to be necessary for the public 
5interest, safety, and welfare. 
6 (gg) (ff) In order to provide for the expeditious and 
7timely implementation of the provisions of Public Act 101-1 
8this amendatory Act of the 101st General Assembly, emergency 
9rules may be adopted by the Department of Labor in accordance 
10with this subsection (gg) (ff) to implement the changes made by 
11Public Act 101-1 this amendatory Act of the 101st General 
12Assembly to the Minimum Wage Law. The adoption of emergency 
13rules authorized by this subsection (gg) (ff) is deemed to be 
14necessary for the public interest, safety, and welfare. 
15 (kk) In order to provide for the expeditious and timely 
16implementation of the provisions of subsection (c) of Section 
1720 of the Video Gaming Act, emergency rules to implement the 
18provisions of subsection (c) of Section 20 of the Video Gaming 
19Act may be adopted in accordance with this subsection (kk) by 
20the Illinois Gaming Board. The adoption of emergency rules 
21authorized by this subsection (kk) is deemed to be necessary 
22for the public interest, safety, and welfare. 
23(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17; 
24100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff. 
256-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18; 
26100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff. 
 
 
10100SB0690ham003- 322 -LRB101 04451 SMS 61572 a


13-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)

2 Section 35-5. The Open Meetings Act is amended by changing 
3Section 2 as follows:




4 (5 ILCS 120/2) (from Ch. 102, par. 42)



5 Sec. 2. Open meetings. 

6 (a) Openness required. All meetings of public
bodies shall 
7be open to the public unless excepted in subsection (c)
and 
8closed in accordance with Section 2a.

9 (b) Construction of exceptions. The exceptions contained 
10in subsection
(c) are in derogation of the requirement that 
11public bodies
meet in the open, and therefore, the exceptions 
12are to be strictly
construed, extending only to subjects 
13clearly within their scope.
The exceptions authorize but do not 
14require the holding of
a closed meeting to discuss a subject 
15included within an enumerated exception.

16 (c) Exceptions. A public body may hold closed meetings to 
17consider the
following subjects:

18  (1) The appointment, employment, compensation, 
19 discipline, performance,
or dismissal of specific 
20 employees of the public body or legal counsel for
the 
21 public body, including hearing
testimony on a complaint 
22 lodged against an employee of the public body or
against 
23 legal counsel for the public body to determine its 
24 validity. However, a meeting to consider an increase in 
 
 
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1 compensation to a specific employee of a public body that 
2 is subject to the Local Government Wage Increase 
3 Transparency Act may not be closed and shall be open to the 
4 public and posted and held in accordance with this Act.

5  (2) Collective negotiating matters between the public 
6 body and its
employees or their representatives, or 
7 deliberations concerning salary
schedules for one or more 
8 classes of employees.

9  (3) The selection of a person to fill a public office,

10 as defined in this Act, including a vacancy in a public 
11 office, when the public
body is given power to appoint 
12 under law or ordinance, or the discipline,
performance or 
13 removal of the occupant of a public office, when the public 
14 body
is given power to remove the occupant under law or 
15 ordinance. 

16  (4) Evidence or testimony presented in open hearing, or 
17 in closed
hearing where specifically authorized by law, to

18 a quasi-adjudicative body, as defined in this Act, provided 
19 that the body
prepares and makes available for public 
20 inspection a written decision
setting forth its 
21 determinative reasoning.

22  (5) The purchase or lease of real property for the use 
23 of
the public body, including meetings held for the purpose 
24 of discussing
whether a particular parcel should be 
25 acquired.

26  (6) The setting of a price for sale or lease of 
 
 
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1 property owned
by the public body.

2  (7) The sale or purchase of securities, investments, or 
3 investment
contracts. This exception shall not apply to the 
4 investment of assets or income of funds deposited into the 
5 Illinois Prepaid Tuition Trust Fund. 

6  (8) Security procedures, school building safety and 
7 security, and the use of personnel and
equipment to respond 
8 to an actual, a threatened, or a reasonably
potential 
9 danger to the safety of employees, students, staff, the 
10 public, or
public
property.

11  (9) Student disciplinary cases.

12  (10) The placement of individual students in special 
13 education
programs and other matters relating to 
14 individual students.

15  (11) Litigation, when an action against, affecting or 
16 on behalf of the
particular public body has been filed and 
17 is pending before a court or
administrative tribunal, or 
18 when the public body finds that an action is
probable or 
19 imminent, in which case the basis for the finding shall be

20 recorded and entered into the minutes of the closed 
21 meeting.

22  (12) The establishment of reserves or settlement of 
23 claims as provided
in the Local Governmental and 
24 Governmental Employees Tort Immunity Act, if
otherwise the 
25 disposition of a claim or potential claim might be

26 prejudiced, or the review or discussion of claims, loss or 
 
 
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1 risk management
information, records, data, advice or 
2 communications from or with respect
to any insurer of the 
3 public body or any intergovernmental risk management

4 association or self insurance pool of which the public body 
5 is a member.

6  (13) Conciliation of complaints of discrimination in 
7 the sale or rental
of housing, when closed meetings are 
8 authorized by the law or ordinance
prescribing fair housing 
9 practices and creating a commission or
administrative 
10 agency for their enforcement.

11  (14) Informant sources, the hiring or assignment of 
12 undercover personnel
or equipment, or ongoing, prior or 
13 future criminal investigations, when
discussed by a public 
14 body with criminal investigatory responsibilities.

15  (15) Professional ethics or performance when 
16 considered by an advisory
body appointed to advise a 
17 licensing or regulatory agency on matters
germane to the 
18 advisory body's field of competence.

19  (16) Self evaluation, practices and procedures or 
20 professional ethics,
when meeting with a representative of 
21 a statewide association of which the
public body is a 
22 member.

23  (17) The recruitment, credentialing, discipline or 
24 formal peer review
of physicians or other
health care 
25 professionals, or for the discussion of matters protected 
26 under the federal Patient Safety and Quality Improvement 
 
 
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1 Act of 2005, and the regulations promulgated thereunder, 
2 including 42 C.F.R. Part 3 (73 FR 70732), or the federal 
3 Health Insurance Portability and Accountability Act of 
4 1996, and the regulations promulgated thereunder, 
5 including 45 C.F.R. Parts 160, 162, and 164, by a hospital, 
6 or
other institution providing medical care, that is 
7 operated by the public body.

8  (18) Deliberations for decisions of the Prisoner 
9 Review Board.

10  (19) Review or discussion of applications received 
11 under the
Experimental Organ Transplantation Procedures 
12 Act.

13  (20) The classification and discussion of matters 
14 classified as
confidential or continued confidential by 
15 the State Government Suggestion Award
Board.

16  (21) Discussion of minutes of meetings lawfully closed 
17 under this Act,
whether for purposes of approval by the 
18 body of the minutes or semi-annual
review of the minutes as 
19 mandated by Section 2.06.

20  (22) Deliberations for decisions of the State

21 Emergency Medical Services Disciplinary
Review Board.

22  (23) The operation by a municipality of a municipal 
23 utility or the
operation of a
municipal power agency or 
24 municipal natural gas agency when the
discussion involves 
25 (i) contracts relating to the
purchase, sale, or delivery 
26 of electricity or natural gas or (ii) the results
or 
 
 
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1 conclusions of load forecast studies.

2  (24) Meetings of a residential health care facility 
3 resident sexual
assault and death review
team or
the 
4 Executive
Council under the Abuse Prevention Review
Team 
5 Act.

6  (25) Meetings of an independent team of experts under 
7 Brian's Law. 
8  (26) Meetings of a mortality review team appointed 
9 under the Department of Juvenile Justice Mortality Review 
10 Team Act. 
11  (27) (Blank). 
12  (28) Correspondence and records (i) that may not be 
13 disclosed under Section 11-9 of the Illinois Public Aid 
14 Code or (ii) that pertain to appeals under Section 11-8 of 
15 the Illinois Public Aid Code. 
16  (29) Meetings between internal or external auditors 
17 and governmental audit committees, finance committees, and 
18 their equivalents, when the discussion involves internal 
19 control weaknesses, identification of potential fraud risk 
20 areas, known or suspected frauds, and fraud interviews 
21 conducted in accordance with generally accepted auditing 
22 standards of the United States of America.
23  (30) Those meetings or portions of meetings of a 
24 fatality review team or the Illinois Fatality Review Team 
25 Advisory Council during which a review of the death of an 
26 eligible adult in which abuse or neglect is suspected, 
 
 
10100SB0690ham003- 328 -LRB101 04451 SMS 61572 a


1 alleged, or substantiated is conducted pursuant to Section 
2 15 of the Adult Protective Services Act. 
3  (31) Meetings and deliberations for decisions of the 
4 Concealed Carry Licensing Review Board under the Firearm 
5 Concealed Carry Act. 
6  (32) Meetings between the Regional Transportation 
7 Authority Board and its Service Boards when the discussion 
8 involves review by the Regional Transportation Authority 
9 Board of employment contracts under Section 28d of the 
10 Metropolitan Transit Authority Act and Sections 3A.18 and 
11 3B.26 of the Regional Transportation Authority Act.
12  (33) Those meetings or portions of meetings of the 
13 advisory committee and peer review subcommittee created 
14 under Section 320 of the Illinois Controlled Substances Act 
15 during which specific controlled substance prescriber, 
16 dispenser, or patient information is discussed.
17  (34) Meetings of the Tax Increment Financing Reform 
18 Task Force under Section 2505-800 of the Department of 
19 Revenue Law of the Civil Administrative Code of Illinois. 
20  (35) Meetings of the group established to discuss 
21 Medicaid capitation rates under Section 5-30.8 of the 
22 Illinois Public Aid Code. 
23  (36) Those deliberations or portions of deliberations 
24 for decisions of the Illinois Gaming Board in which there 
25 is discussed any of the following: (i) personal, 
26 commercial, financial, or other information obtained from 
 
 
10100SB0690ham003- 329 -LRB101 04451 SMS 61572 a


1 any source that is privileged, proprietary, confidential, 
2 or a trade secret; or (ii) information specifically 
3 exempted from the disclosure by federal or State law. 
4 (d) Definitions. For purposes of this Section:

5 "Employee" means a person employed by a public body whose 
6relationship
with the public body constitutes an 
7employer-employee relationship under
the usual common law 
8rules, and who is not an independent contractor.

9 "Public office" means a position created by or under the

10Constitution or laws of this State, the occupant of which is 
11charged with
the exercise of some portion of the sovereign 
12power of this State. The term
"public office" shall include 
13members of the public body, but it shall not
include 
14organizational positions filled by members thereof, whether

15established by law or by a public body itself, that exist to 
16assist the
body in the conduct of its business.

17 "Quasi-adjudicative body" means an administrative body 
18charged by law or
ordinance with the responsibility to conduct 
19hearings, receive evidence or
testimony and make 
20determinations based
thereon, but does not include
local 
21electoral boards when such bodies are considering petition 
22challenges.

23 (e) Final action. No final action may be taken at a closed 
24meeting.
Final action shall be preceded by a public recital of 
25the nature of the
matter being considered and other information 
26that will inform the
public of the business being conducted. 

 
 
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1(Source: P.A. 99-78, eff. 7-20-15; 99-235, eff. 1-1-16; 99-480, 
2eff. 9-9-15; 99-642, eff. 7-28-16; 99-646, eff. 7-28-16; 
399-687, eff. 1-1-17; 100-201, eff. 8-18-17; 100-465, eff. 
48-31-17; 100-646, eff. 7-27-18.)


5 Section 35-10. The State Officials and Employees Ethics Act 
6is amended by changing Section 5-45 as follows:

7 (5 ILCS 430/5-45)

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

9 (a) No former officer, member, or State employee, or spouse 
10or
immediate family member living with such person, shall, 
11within a period of one
year immediately after termination of 
12State employment, knowingly accept
employment or receive 
13compensation or fees for services from a person or entity
if 
14the officer, member, or State employee, during the year 
15immediately
preceding termination of State employment, 
16participated personally and
substantially in the award of State 
17contracts, or the issuance of State contract change orders, 
18with a cumulative value
of $25,000
or more to the person or 
19entity, or its parent or subsidiary.


20 (a-5) No officer, member, or spouse or immediate family 
21member living with such person shall, during the officer or 
22member's term in office or within a period of 2 years 
23immediately leaving office, hold an ownership interest, other 
24than a passive interest in a publicly traded company, in any 
 
 
10100SB0690ham003- 331 -LRB101 04451 SMS 61572 a


1gaming license under the Illinois Gambling Act, the Video 
2Gaming Act, the Illinois Horse Racing Act of 1975, or the 
3Sports Wagering Act. Any member of the General Assembly or 
4spouse or immediate family member living with such person who 
5has an ownership interest, other than a passive interest in a 
6publicly traded company, in any gaming license under the 
7Illinois Gambling Act, the Illinois Horse Racing Act of 1975, 
8the Video Gaming Act, or the Sports Wagering Act at the time of 
9the effective date of this amendatory Act of the 101st General 
10Assembly shall divest himself or herself of such ownership 
11within one year after the effective date of this amendatory Act 
12of the 101st General Assembly. No State employee who works for 
13the Illinois Gaming Board or Illinois Racing Board or spouse or 
14immediate family member living with such person shall, during 
15State employment or within a period of 2 years immediately 
16after termination of State employment, hold an ownership 
17interest, other than a passive interest in a publicly traded 
18company, in any gaming license under the Illinois Gambling Act, 
19the Video Gaming Act, the Illinois Horse Racing Act of 1975, or 
20the Sports Wagering Act. 
21 (b) No former officer of the executive branch or State 
22employee of the
executive branch with regulatory or
licensing 
23authority, or spouse or immediate family member living with 
24such
person, shall, within a period of one year immediately 
25after termination of
State employment, knowingly accept 
26employment or receive compensation or fees
for services from a 
 
 
10100SB0690ham003- 332 -LRB101 04451 SMS 61572 a


1person or entity if the officer
or State
employee, during the 
2year immediately preceding
termination of State employment, 
3participated personally and substantially in making a 
4regulatory or licensing decision that
directly applied to the 
5person or entity, or its parent or subsidiary. 

6 (c) Within 6 months after the effective date of this 
7amendatory Act of the 96th General Assembly, each executive 
8branch constitutional officer and legislative leader, the 
9Auditor General, and the Joint Committee on Legislative Support 
10Services shall adopt a policy delineating which State positions 
11under his or her jurisdiction and control, by the nature of 
12their duties, may have the authority to participate personally 
13and substantially in the award of State contracts or in 
14regulatory or licensing decisions. The Governor shall adopt 
15such a policy for all State employees of the executive branch 
16not under the jurisdiction and control of any other executive 
17branch constitutional officer.


18 The policies required under subsection (c) of this Section 
19shall be filed with the appropriate ethics commission 
20established under this Act or, for the Auditor General, with 
21the Office of the Auditor General.
22 (d) Each Inspector General shall have the authority to 
23determine that additional State positions under his or her 
24jurisdiction, not otherwise subject to the policies required by 
25subsection (c) of this Section, are nonetheless subject to the 
26notification requirement of subsection (f) below due to their 
 
 
10100SB0690ham003- 333 -LRB101 04451 SMS 61572 a


1involvement in the award of State contracts or in regulatory or 
2licensing decisions.
3 (e) The Joint Committee on Legislative Support Services, 
4the Auditor General, and each of the executive branch 
5constitutional officers and legislative leaders subject to 
6subsection (c) of this Section shall provide written 
7notification to all employees in positions subject to the 
8policies required by subsection (c) or a determination made 
9under subsection (d): (1) upon hiring, promotion, or transfer 
10into the relevant position; and (2) at the time the employee's 
11duties are changed in such a way as to qualify that employee. 
12An employee receiving notification must certify in writing that 
13the person was advised of the prohibition and the requirement 
14to notify the appropriate Inspector General in subsection (f).
15 (f) Any State employee in a position subject to the 
16policies required by subsection (c) or to a determination under 
17subsection (d), but who does not fall within the prohibition of 
18subsection (h) below, who is offered non-State employment 
19during State employment or within a period of one year 
20immediately after termination of State employment shall, prior 
21to accepting such non-State employment, notify the appropriate 
22Inspector General. Within 10 calendar days after receiving 
23notification from an employee in a position subject to the 
24policies required by subsection (c), such Inspector General 
25shall make a determination as to whether the State employee is 
26restricted from accepting such employment by subsection (a) or 
 
 
10100SB0690ham003- 334 -LRB101 04451 SMS 61572 a


1(b). In making a determination, in addition to any other 
2relevant information, an Inspector General shall assess the 
3effect of the prospective employment or relationship upon 
4decisions referred to in subsections (a) and (b), based on the 
5totality of the participation by the former officer, member, or 
6State employee in those decisions. A determination by an 
7Inspector General must be in writing, signed and dated by the 
8Inspector General, and delivered to the subject of the 
9determination within 10 calendar days or the person is deemed 
10eligible for the employment opportunity. For purposes of this 
11subsection, "appropriate Inspector General" means (i) for 
12members and employees of the legislative branch, the 
13Legislative Inspector General; (ii) for the Auditor General and 
14employees of the Office of the Auditor General, the Inspector 
15General provided for in Section 30-5 of this Act; and (iii) for 
16executive branch officers and employees, the Inspector General 
17having jurisdiction over the officer or employee. Notice of any 
18determination of an Inspector General and of any such appeal 
19shall be given to the ultimate jurisdictional authority, the 
20Attorney General, and the Executive Ethics Commission.
21 (g) An Inspector General's determination regarding 
22restrictions under subsection (a) or (b) may be appealed to the 
23appropriate Ethics Commission by the person subject to the 
24decision or the Attorney General no later than the 10th 
25calendar day after the date of the determination.
26 On appeal, the Ethics Commission or Auditor General shall 
 
 
10100SB0690ham003- 335 -LRB101 04451 SMS 61572 a


1seek, accept, and consider written public comments regarding a 
2determination. In deciding whether to uphold an Inspector 
3General's determination, the appropriate Ethics Commission or 
4Auditor General shall assess, in addition to any other relevant 
5information, the effect of the prospective employment or 
6relationship upon the decisions referred to in subsections (a) 
7and (b), based on the totality of the participation by the 
8former officer, member, or State employee in those decisions. 
9The Ethics Commission shall decide whether to uphold an 
10Inspector General's determination within 10 calendar days or 
11the person is deemed eligible for the employment opportunity.
12 (h) The following officers, members, or State employees 
13shall not, within a period of one year immediately after 
14termination of office or State employment, knowingly accept 
15employment or receive compensation or fees for services from a 
16person or entity if the person or entity or its parent or 
17subsidiary, during the year immediately preceding termination 
18of State employment, was a party to a State contract or 
19contracts with a cumulative value of $25,000 or more involving 
20the officer, member, or State employee's State agency, or was 
21the subject of a regulatory or licensing decision involving the 
22officer, member, or State employee's State agency, regardless 
23of whether he or she participated personally and substantially 
24in the award of the State contract or contracts or the making 
25of the regulatory or licensing decision in question:
26  (1) members or officers;
 
 
10100SB0690ham003- 336 -LRB101 04451 SMS 61572 a


1  (2) members of a commission or board created by the 
2 Illinois Constitution;
3  (3) persons whose appointment to office is subject to 
4 the advice and consent of the Senate;
5  (4) the head of a department, commission, board, 
6 division, bureau, authority, or other administrative unit 
7 within the government of this State;
8  (5) chief procurement officers, State purchasing 
9 officers, and their designees whose duties are directly 
10 related to State procurement; and
11  (6) chiefs of staff, deputy chiefs of staff, associate 
12 chiefs of staff, assistant chiefs of staff, and deputy 
13 governors; .
14  (7) employees of the Illinois Racing Board; and
15  (8) employees of the Illinois Gaming Board.
16 (i) For the purposes of this Section, with respect to 
17officers or employees of a regional transit board, as defined 
18in this Act, the phrase "person or entity" does not include: 
19(i) the United States government, (ii) the State, (iii) 
20municipalities, as defined under Article VII, Section 1 of the 
21Illinois Constitution, (iv) units of local government, as 
22defined under Article VII, Section 1 of the Illinois 
23Constitution, or (v) school districts. 
24(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)

25 Section 35-15. The Alcoholism and Other Drug Abuse and 
 
 
10100SB0690ham003- 337 -LRB101 04451 SMS 61572 a


1Dependency Act is amended by changing Section 5-20 as follows:



2 (20 ILCS 301/5-20)



3 Sec. 5-20. Gambling disorders. 

4 (a) Subject to appropriation, the Department shall 
5establish a program for
public education, research, and 
6training regarding
gambling disorders and the treatment and 
7prevention of gambling disorders.
Subject to specific 
8appropriation for these stated purposes, the program must

9include all of the following:

10  (1) Establishment and maintenance of a toll-free "800" 
11 telephone number
to provide crisis counseling and referral 
12 services to families experiencing
difficulty as a result of 
13 gambling disorders.

14  (2) Promotion of public awareness regarding the 
15 recognition and
prevention of gambling disorders.

16  (3) Facilitation, through in-service training and 
17 other means, of the
availability of effective assistance 
18 programs for gambling disorders.

19  (4) Conducting studies to identify adults and 
20 juveniles in this
State who have, or who are at risk of 
21 developing, gambling disorders.

22 (b) Subject to appropriation, the Department shall either 
23establish and
maintain the program or contract with a private 
24or public entity for the
establishment and maintenance of the 
25program. Subject to appropriation, either
the Department or the 
 
 
10100SB0690ham003- 338 -LRB101 04451 SMS 61572 a


1private or public entity shall implement the toll-free

2telephone number, promote public awareness, and conduct 
3in-service training
concerning gambling disorders.

4 (c) Subject to appropriation, the Department shall produce 
5and supply the
signs specified in Section 10.7 of the Illinois 
6Lottery Law, Section 34.1 of
the Illinois Horse Racing Act of 
71975, Section 4.3 of the Bingo License and Tax
Act, Section 8.1 
8of the Charitable Games Act, and Section 13.1 of the Illinois 
9Riverboat
Gambling Act.

10(Source: P.A. 100-759, eff. 1-1-19.)


11 Section 35-20. The Illinois Lottery Law is amended by 
12changing Section 9.1 as follows:

13 (20 ILCS 1605/9.1)
14 Sec. 9.1. Private manager and management agreement.
15 (a) As used in this Section:
16 "Offeror" means a person or group of persons that responds 
17to a request for qualifications under this Section.
18 "Request for qualifications" means all materials and 
19documents prepared by the Department to solicit the following 
20from offerors:
21  (1) Statements of qualifications.
22  (2) Proposals to enter into a management agreement, 
23 including the identity of any prospective vendor or vendors 
24 that the offeror intends to initially engage to assist the 
 
 
10100SB0690ham003- 339 -LRB101 04451 SMS 61572 a


1 offeror in performing its obligations under the management 
2 agreement.
3 "Final offer" means the last proposal submitted by an 
4offeror in response to the request for qualifications, 
5including the identity of any prospective vendor or vendors 
6that the offeror intends to initially engage to assist the 
7offeror in performing its obligations under the management 
8agreement. 
9 "Final offeror" means the offeror ultimately selected by 
10the Governor to be the private manager for the Lottery under 
11subsection (h) of this Section.
12 (b) By September 15, 2010, the Governor shall select a 
13private manager for the total management of the Lottery with 
14integrated functions, such as lottery game design, supply of 
15goods and services, and advertising and as specified in this 
16Section.
17 (c) Pursuant to the terms of this subsection, the 
18Department shall endeavor to expeditiously terminate the 
19existing contracts in support of the Lottery in effect on the 
20effective date of this amendatory Act of the 96th General 
21Assembly in connection with the selection of the private 
22manager. As part of its obligation to terminate these contracts 
23and select the private manager, the Department shall establish 
24a mutually agreeable timetable to transfer the functions of 
25existing contractors to the private manager so that existing 
26Lottery operations are not materially diminished or impaired 
 
 
10100SB0690ham003- 340 -LRB101 04451 SMS 61572 a


1during the transition. To that end, the Department shall do the 
2following:
3  (1) where such contracts contain a provision 
4 authorizing termination upon notice, the Department shall 
5 provide notice of termination to occur upon the mutually 
6 agreed timetable for transfer of functions;
7  (2) upon the expiration of any initial term or renewal 
8 term of the current Lottery contracts, the Department shall 
9 not renew such contract for a term extending beyond the 
10 mutually agreed timetable for transfer of functions; or
11  (3) in the event any current contract provides for 
12 termination of that contract upon the implementation of a 
13 contract with the private manager, the Department shall 
14 perform all necessary actions to terminate the contract on 
15 the date that coincides with the mutually agreed timetable 
16 for transfer of functions.
17 If the contracts to support the current operation of the 
18Lottery in effect on the effective date of this amendatory Act 
19of the 96th General Assembly are not subject to termination as 
20provided for in this subsection (c), then the Department may 
21include a provision in the contract with the private manager 
22specifying a mutually agreeable methodology for incorporation.
23 (c-5) The Department shall include provisions in the 
24management agreement whereby the private manager shall, for a 
25fee, and pursuant to a contract negotiated with the Department 
26(the "Employee Use Contract"), utilize the services of current 
 
 
10100SB0690ham003- 341 -LRB101 04451 SMS 61572 a


1Department employees to assist in the administration and 
2operation of the Lottery. The Department shall be the employer 
3of all such bargaining unit employees assigned to perform such 
4work for the private manager, and such employees shall be State 
5employees, as defined by the Personnel Code. Department 
6employees shall operate under the same employment policies, 
7rules, regulations, and procedures, as other employees of the 
8Department. In addition, neither historical representation 
9rights under the Illinois Public Labor Relations Act, nor 
10existing collective bargaining agreements, shall be disturbed 
11by the management agreement with the private manager for the 
12management of the Lottery. 
13 (d) The management agreement with the private manager shall 
14include all of the following:
15  (1) A term not to exceed 10 years, including any 
16 renewals.
17  (2) A provision specifying that the Department:
18   (A) shall exercise actual control over all 
19 significant business decisions; 
20   (A-5) has the authority to direct or countermand 
21 operating decisions by the private manager at any time;
22   (B) has ready access at any time to information 
23 regarding Lottery operations;
24   (C) has the right to demand and receive information 
25 from the private manager concerning any aspect of the 
26 Lottery operations at any time; and
 
 
10100SB0690ham003- 342 -LRB101 04451 SMS 61572 a


1   (D) retains ownership of all trade names, 
2 trademarks, and intellectual property associated with 
3 the Lottery.
4  (3) A provision imposing an affirmative duty on the 
5 private manager to provide the Department with material 
6 information and with any information the private manager 
7 reasonably believes the Department would want to know to 
8 enable the Department to conduct the Lottery.
9  (4) A provision requiring the private manager to 
10 provide the Department with advance notice of any operating 
11 decision that bears significantly on the public interest, 
12 including, but not limited to, decisions on the kinds of 
13 games to be offered to the public and decisions affecting 
14 the relative risk and reward of the games being offered, so 
15 the Department has a reasonable opportunity to evaluate and 
16 countermand that decision.
17  (5) A provision providing for compensation of the 
18 private manager that may consist of, among other things, a 
19 fee for services and a performance based bonus as 
20 consideration for managing the Lottery, including terms 
21 that may provide the private manager with an increase in 
22 compensation if Lottery revenues grow by a specified 
23 percentage in a given year.
24  (6) (Blank).
25  (7) A provision requiring the deposit of all Lottery 
26 proceeds to be deposited into the State Lottery Fund except 
 
 
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1 as otherwise provided in Section 20 of this Act.
2  (8) A provision requiring the private manager to locate 
3 its principal office within the State.
4  (8-5) A provision encouraging that at least 20% of the 
5 cost of contracts entered into for goods and services by 
6 the private manager in connection with its management of 
7 the Lottery, other than contracts with sales agents or 
8 technical advisors, be awarded to businesses that are a 
9 minority-owned business, a women-owned business, or a 
10 business owned by a person with disability, as those terms 
11 are defined in the Business Enterprise for Minorities, 
12 Women, and Persons with Disabilities Act. 
13  (9) A requirement that so long as the private manager 
14 complies with all the conditions of the agreement under the 
15 oversight of the Department, the private manager shall have 
16 the following duties and obligations with respect to the 
17 management of the Lottery:
18   (A) The right to use equipment and other assets 
19 used in the operation of the Lottery.
20   (B) The rights and obligations under contracts 
21 with retailers and vendors.
22   (C) The implementation of a comprehensive security 
23 program by the private manager.
24   (D) The implementation of a comprehensive system 
25 of internal audits.
26   (E) The implementation of a program by the private 
 
 
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1 manager to curb compulsive gambling by persons playing 
2 the Lottery.
3   (F) A system for determining (i) the type of 
4 Lottery games, (ii) the method of selecting winning 
5 tickets, (iii) the manner of payment of prizes to 
6 holders of winning tickets, (iv) the frequency of 
7 drawings of winning tickets, (v) the method to be used 
8 in selling tickets, (vi) a system for verifying the 
9 validity of tickets claimed to be winning tickets, 
10 (vii) the basis upon which retailer commissions are 
11 established by the manager, and (viii) minimum 
12 payouts.
13  (10) A requirement that advertising and promotion must 
14 be consistent with Section 7.8a of this Act.
15  (11) A requirement that the private manager market the 
16 Lottery to those residents who are new, infrequent, or 
17 lapsed players of the Lottery, especially those who are 
18 most likely to make regular purchases on the Internet as 
19 permitted by law.
20  (12) A code of ethics for the private manager's 
21 officers and employees.
22  (13) A requirement that the Department monitor and 
23 oversee the private manager's practices and take action 
24 that the Department considers appropriate to ensure that 
25 the private manager is in compliance with the terms of the 
26 management agreement, while allowing the manager, unless 
 
 
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1 specifically prohibited by law or the management 
2 agreement, to negotiate and sign its own contracts with 
3 vendors.
4  (14) A provision requiring the private manager to 
5 periodically file, at least on an annual basis, appropriate 
6 financial statements in a form and manner acceptable to the 
7 Department.
8  (15) Cash reserves requirements.
9  (16) Procedural requirements for obtaining the prior 
10 approval of the Department when a management agreement or 
11 an interest in a management agreement is sold, assigned, 
12 transferred, or pledged as collateral to secure financing.
13  (17) Grounds for the termination of the management 
14 agreement by the Department or the private manager.
15  (18) Procedures for amendment of the agreement.
16  (19) A provision requiring the private manager to 
17 engage in an open and competitive bidding process for any 
18 procurement having a cost in excess of $50,000 that is not 
19 a part of the private manager's final offer. The process 
20 shall favor the selection of a vendor deemed to have 
21 submitted a proposal that provides the Lottery with the 
22 best overall value. The process shall not be subject to the 
23 provisions of the Illinois Procurement Code, unless 
24 specifically required by the management agreement.
25  (20) The transition of rights and obligations, 
26 including any associated equipment or other assets used in 
 
 
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1 the operation of the Lottery, from the manager to any 
2 successor manager of the lottery, including the 
3 Department, following the termination of or foreclosure 
4 upon the management agreement.
5  (21) Right of use of copyrights, trademarks, and 
6 service marks held by the Department in the name of the 
7 State. The agreement must provide that any use of them by 
8 the manager shall only be for the purpose of fulfilling its 
9 obligations under the management agreement during the term 
10 of the agreement.
11  (22) The disclosure of any information requested by the 
12 Department to enable it to comply with the reporting 
13 requirements and information requests provided for under 
14 subsection (p) of this Section. 
15 (e) Notwithstanding any other law to the contrary, the 
16Department shall select a private manager through a competitive 
17request for qualifications process consistent with Section 
1820-35 of the Illinois Procurement Code, which shall take into 
19account:
20  (1) the offeror's ability to market the Lottery to 
21 those residents who are new, infrequent, or lapsed players 
22 of the Lottery, especially those who are most likely to 
23 make regular purchases on the Internet;
24  (2) the offeror's ability to address the State's 
25 concern with the social effects of gambling on those who 
26 can least afford to do so;
 
 
10100SB0690ham003- 347 -LRB101 04451 SMS 61572 a


1  (3) the offeror's ability to provide the most 
2 successful management of the Lottery for the benefit of the 
3 people of the State based on current and past business 
4 practices or plans of the offeror; and
5  (4) the offeror's poor or inadequate past performance 
6 in servicing, equipping, operating or managing a lottery on 
7 behalf of Illinois, another State or foreign government and 
8 attracting persons who are not currently regular players of 
9 a lottery.
10 (f) The Department may retain the services of an advisor or 
11advisors with significant experience in financial services or 
12the management, operation, and procurement of goods, services, 
13and equipment for a government-run lottery to assist in the 
14preparation of the terms of the request for qualifications and 
15selection of the private manager. Any prospective advisor 
16seeking to provide services under this subsection (f) shall 
17disclose any material business or financial relationship 
18during the past 3 years with any potential offeror, or with a 
19contractor or subcontractor presently providing goods, 
20services, or equipment to the Department to support the 
21Lottery. The Department shall evaluate the material business or 
22financial relationship of each prospective advisor. The 
23Department shall not select any prospective advisor with a 
24substantial business or financial relationship that the 
25Department deems to impair the objectivity of the services to 
26be provided by the prospective advisor. During the course of 
 
 
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1the advisor's engagement by the Department, and for a period of 
2one year thereafter, the advisor shall not enter into any 
3business or financial relationship with any offeror or any 
4vendor identified to assist an offeror in performing its 
5obligations under the management agreement. Any advisor 
6retained by the Department shall be disqualified from being an 
7offeror.
The Department shall not include terms in the request 
8for qualifications that provide a material advantage whether 
9directly or indirectly to any potential offeror, or any 
10contractor or subcontractor presently providing goods, 
11services, or equipment to the Department to support the 
12Lottery, including terms contained in previous responses to 
13requests for proposals or qualifications submitted to 
14Illinois, another State or foreign government when those terms 
15are uniquely associated with a particular potential offeror, 
16contractor, or subcontractor. The request for proposals 
17offered by the Department on December 22, 2008 as 
18"LOT08GAMESYS" and reference number "22016176" is declared 
19void.
20 (g) The Department shall select at least 2 offerors as 
21finalists to potentially serve as the private manager no later 
22than August 9, 2010. Upon making preliminary selections, the 
23Department shall schedule a public hearing on the finalists' 
24proposals and provide public notice of the hearing at least 7 
25calendar days before the hearing. The notice must include all 
26of the following:
 
 
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1  (1) The date, time, and place of the hearing.
2  (2) The subject matter of the hearing.
3  (3) A brief description of the management agreement to 
4 be awarded.
5  (4) The identity of the offerors that have been 
6 selected as finalists to serve as the private manager.
7  (5) The address and telephone number of the Department.
8 (h) At the public hearing, the Department shall (i) provide 
9sufficient time for each finalist to present and explain its 
10proposal to the Department and the Governor or the Governor's 
11designee, including an opportunity to respond to questions 
12posed by the Department, Governor, or designee and (ii) allow 
13the public and non-selected offerors to comment on the 
14presentations. The Governor or a designee shall attend the 
15public hearing. After the public hearing, the Department shall 
16have 14 calendar days to recommend to the Governor whether a 
17management agreement should be entered into with a particular 
18finalist. After reviewing the Department's recommendation, the 
19Governor may accept or reject the Department's recommendation, 
20and shall select a final offeror as the private manager by 
21publication of a notice in the Illinois Procurement Bulletin on 
22or before September 15, 2010. The Governor shall include in the 
23notice a detailed explanation and the reasons why the final 
24offeror is superior to other offerors and will provide 
25management services in a manner that best achieves the 
26objectives of this Section. The Governor shall also sign the 
 
 
10100SB0690ham003- 350 -LRB101 04451 SMS 61572 a


1management agreement with the private manager.
2 (i) Any action to contest the private manager selected by 
3the Governor under this Section must be brought within 7 
4calendar days after the publication of the notice of the 
5designation of the private manager as provided in subsection 
6(h) of this Section.
7 (j) The Lottery shall remain, for so long as a private 
8manager manages the Lottery in accordance with provisions of 
9this Act, a Lottery conducted by the State, and the State shall 
10not be authorized to sell or transfer the Lottery to a third 
11party.
12 (k) Any tangible personal property used exclusively in 
13connection with the lottery that is owned by the Department and 
14leased to the private manager shall be owned by the Department 
15in the name of the State and shall be considered to be public 
16property devoted to an essential public and governmental 
17function.
18 (l) The Department may exercise any of its powers under 
19this Section or any other law as necessary or desirable for the 
20execution of the Department's powers under this Section.
21 (m) Neither this Section nor any management agreement 
22entered into under this Section prohibits the General Assembly 
23from authorizing forms of gambling that are not in direct 
24competition with the Lottery. The forms of gambling authorized 
25by this amendatory Act of the 101st General Assembly constitute 
26authorized forms of gambling that are not in direct competition 
 
 
10100SB0690ham003- 351 -LRB101 04451 SMS 61572 a


1with the Lottery.
2 (n) The private manager shall be subject to a complete 
3investigation in the third, seventh, and tenth years of the 
4agreement (if the agreement is for a 10-year term) by the 
5Department in cooperation with the Auditor General to determine 
6whether the private manager has complied with this Section and 
7the management agreement. The private manager shall bear the 
8cost of an investigation or reinvestigation of the private 
9manager under this subsection.
10 (o) The powers conferred by this Section are in addition 
11and supplemental to the powers conferred by any other law. If 
12any other law or rule is inconsistent with this Section, 
13including, but not limited to, provisions of the Illinois 
14Procurement Code, then this Section controls as to any 
15management agreement entered into under this Section. This 
16Section and any rules adopted under this Section contain full 
17and complete authority for a management agreement between the 
18Department and a private manager. No law, procedure, 
19proceeding, publication, notice, consent, approval, order, or 
20act by the Department or any other officer, Department, agency, 
21or instrumentality of the State or any political subdivision is 
22required for the Department to enter into a management 
23agreement under this Section. This Section contains full and 
24complete authority for the Department to approve any contracts 
25entered into by a private manager with a vendor providing 
26goods, services, or both goods and services to the private 
 
 
10100SB0690ham003- 352 -LRB101 04451 SMS 61572 a


1manager under the terms of the management agreement, including 
2subcontractors of such vendors.
3 Upon receipt of a written request from the Chief 
4Procurement Officer, the Department shall provide to the Chief 
5Procurement Officer a complete and un-redacted copy of the 
6management agreement or any contract that is subject to the 
7Department's approval authority under this subsection (o). The 
8Department shall provide a copy of the agreement or contract to 
9the Chief Procurement Officer in the time specified by the 
10Chief Procurement Officer in his or her written request, but no 
11later than 5 business days after the request is received by the 
12Department. The Chief Procurement Officer must retain any 
13portions of the management agreement or of any contract 
14designated by the Department as confidential, proprietary, or 
15trade secret information in complete confidence pursuant to 
16subsection (g) of Section 7 of the Freedom of Information Act. 
17The Department shall also provide the Chief Procurement Officer 
18with reasonable advance written notice of any contract that is 
19pending Department approval. 
20 Notwithstanding any other provision of this Section to the 
21contrary, the Chief Procurement Officer shall adopt 
22administrative rules, including emergency rules, to establish 
23a procurement process to select a successor private manager if 
24a private management agreement has been terminated. The 
25selection process shall at a minimum take into account the 
26criteria set forth in items (1) through (4) of subsection (e) 
 
 
10100SB0690ham003- 353 -LRB101 04451 SMS 61572 a


1of this Section and may include provisions consistent with 
2subsections (f), (g), (h), and (i) of this Section. The Chief 
3Procurement Officer shall also implement and administer the 
4adopted selection process upon the termination of a private 
5management agreement. The Department, after the Chief 
6Procurement Officer certifies that the procurement process has 
7been followed in accordance with the rules adopted under this 
8subsection (o), shall select a final offeror as the private 
9manager and sign the management agreement with the private 
10manager. 
11 Except as provided in Sections 21.5, 21.6, 21.7, 21.8, 
1221.9, and 21.10, and 21.11, 21.10 the Department shall 
13distribute all proceeds of lottery tickets and shares sold in 
14the following priority and manner:
15  (1) The payment of prizes and retailer bonuses.
16  (2) The payment of costs incurred in the operation and 
17 administration of the Lottery, including the payment of 
18 sums due to the private manager under the management 
19 agreement with the Department.
20  (3) On the last day of each month or as soon thereafter 
21 as possible, the State Comptroller shall direct and the 
22 State Treasurer shall transfer from the State Lottery Fund 
23 to the Common School Fund an amount that is equal to the 
24 proceeds transferred in the corresponding month of fiscal 
25 year 2009, as adjusted for inflation, to the Common School 
26 Fund.
 
 
10100SB0690ham003- 354 -LRB101 04451 SMS 61572 a


1  (4) On or before September 30 of each fiscal year, 
2 deposit any estimated remaining proceeds from the prior 
3 fiscal year, subject to payments under items (1), (2), and 
4 (3), into the Capital Projects Fund. Beginning in fiscal 
5 year 2019, the amount deposited shall be increased or 
6 decreased each year by the amount the estimated payment 
7 differs from the amount determined from each year-end 
8 financial audit. Only remaining net deficits from prior 
9 fiscal years may reduce the requirement to deposit these 
10 funds, as determined by the annual financial audit.
11 (p) The Department shall be subject to the following 
12reporting and information request requirements:
13  (1) the Department shall submit written quarterly 
14 reports to the Governor and the General Assembly on the 
15 activities and actions of the private manager selected 
16 under this Section;
17  (2) upon request of the Chief Procurement Officer, the 
18 Department shall promptly produce information related to 
19 the procurement activities of the Department and the 
20 private manager requested by the Chief Procurement 
21 Officer; the Chief Procurement Officer must retain 
22 confidential, proprietary, or trade secret information 
23 designated by the Department in complete confidence 
24 pursuant to subsection (g) of Section 7 of the Freedom of 
25 Information Act; and
26  (3) at least 30 days prior to the beginning of the 
 
 
10100SB0690ham003- 355 -LRB101 04451 SMS 61572 a


1 Department's fiscal year, the Department shall prepare an 
2 annual written report on the activities of the private 
3 manager selected under this Section and deliver that report 
4 to the Governor and General Assembly.
5(Source: P.A. 99-933, eff. 1-27-17; 100-391, eff. 8-25-17; 
6100-587, eff. 6-4-18; 100-647, eff. 7-30-18; 100-1068, eff. 
78-24-18; revised 9-20-18.)

8 Section 35-25. The Department of Revenue Law of the
Civil 
9Administrative Code of Illinois is amended by changing Section 
102505-305 as follows:




11 (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)



12 Sec. 2505-305. Investigators. 

13 (a) The Department has the power to
appoint investigators 
14to conduct all investigations,
searches, seizures, arrests, 
15and other duties imposed under the provisions
of any law 
16administered by the Department.
Except as provided in 
17subsection (c), these investigators have
and
may exercise all 
18the powers of peace officers solely for the purpose of

19enforcing taxing measures administered by the Department.

20 (b) The Director must authorize to each investigator 
21employed under this
Section and
to any other employee of the 
22Department exercising the powers of a peace
officer a
distinct 
23badge that, on its face, (i) clearly states that the badge is

24authorized
by the
Department and (ii)
contains a unique 
 
 
10100SB0690ham003- 356 -LRB101 04451 SMS 61572 a


1identifying number.
No other badge shall be authorized by
the 
2Department.

3 (c) The Department may enter into agreements with the 
4Illinois Gaming Board providing that investigators appointed 
5under this Section shall exercise the peace officer powers set 
6forth in paragraph (20.6) of subsection (c) of Section 5 of the 
7Illinois Riverboat Gambling Act.


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


9 Section 35-30. The State Finance Act is amended by changing 
10Section 6z-45 as follows:




11 (30 ILCS 105/6z-45)



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

13 (a) The School Infrastructure Fund is created as a special 
14fund
in the State Treasury.

15 In addition to any other deposits authorized by law, 
16beginning January
1, 2000, on the first day of each month, or 
17as soon thereafter as may be
practical, the State Treasurer and 
18State Comptroller shall transfer the sum of
$5,000,000 from the 
19General Revenue Fund to the School Infrastructure Fund, except 
20that, notwithstanding any other provision of law, and in 
21addition to any other transfers that may be provided for by 
22law, before June 30, 2012, the Comptroller and the Treasurer 
23shall transfer $45,000,000 from the General Revenue Fund into 
24the School Infrastructure Fund, and, for fiscal year 2013 only, 
 
 
10100SB0690ham003- 357 -LRB101 04451 SMS 61572 a


1the Treasurer and the Comptroller shall transfer $1,250,000 
2from the General Revenue Fund to the School Infrastructure Fund 
3on the first day of each month;
provided, however, that no such 
4transfers shall be made from July 1, 2001
through June 30, 
52003.

6 (a-5) Money in the School Infrastructure Fund may be used 
7to pay the expenses of the State Board of Education, the 
8Governor's Office of Management and Budget, and the Capital 
9Development Board in administering programs under the School 
10Construction Law, the total expenses not to exceed $1,315,000 
11in any fiscal year. 
12 (b) Subject to the transfer provisions set forth below, 
13money in the
School Infrastructure Fund shall, if and when the 
14State of Illinois incurs
any bonded indebtedness for the 
15construction of school improvements under subsection (e) of 
16Section 5 of the General Obligation Bond Act, be set aside and 
17used for the purpose of
paying and discharging annually the 
18principal and interest on that bonded
indebtedness then due and 
19payable, and for no other purpose.

20 In addition to other transfers to the General Obligation 
21Bond Retirement and
Interest Fund made pursuant to Section 15 
22of the General Obligation Bond Act,
upon each delivery of bonds 
23issued for construction of school improvements
under the School 
24Construction Law, the State Comptroller shall
compute and 
25certify to the State Treasurer the total amount of principal 
26of,
interest on, and premium, if any, on such bonds during the 
 
 
10100SB0690ham003- 358 -LRB101 04451 SMS 61572 a


1then current and
each succeeding fiscal year.
With respect to 
2the interest payable on variable rate bonds, such

3certifications shall be calculated at the maximum rate of 
4interest that
may be payable during the fiscal year, after 
5taking into account any credits
permitted in the related 
6indenture or other instrument against the amount of
such 
7interest required to be appropriated for that period.

8 On or before the last day of each month, the State 
9Treasurer and State
Comptroller shall transfer from the School 
10Infrastructure Fund to the General
Obligation Bond Retirement 
11and Interest Fund an amount sufficient to pay the
aggregate of 
12the principal of, interest on, and premium, if any, on the 
13bonds
payable on their next payment date, divided by the number 
14of monthly transfers
occurring between the last previous 
15payment date (or the delivery date if no
payment date has yet 
16occurred) and the next succeeding payment date.
Interest 
17payable on variable rate bonds shall be calculated at the 
18maximum
rate of interest that may be payable for the relevant 
19period, after taking into
account any credits permitted in the 
20related indenture or other instrument
against the amount of 
21such interest required to be appropriated for that
period.

22Interest for which moneys have already been deposited into the 
23capitalized
interest account within the General Obligation 
24Bond Retirement and Interest
Fund shall not be included in the 
25calculation of the amounts to be transferred
under this 
26subsection. 

 
 
10100SB0690ham003- 359 -LRB101 04451 SMS 61572 a


1 (b-5) The money deposited into the School Infrastructure 
2Fund from transfers pursuant to subsections (c-30) and (c-35) 
3of Section 13 of the Illinois Riverboat Gambling Act shall be 
4applied, without further direction, as provided in subsection 
5(b-3) of Section 5-35 of the School Construction Law. 
6 (c) The surplus, if any, in the School Infrastructure Fund 
7after payments made pursuant to subsections (a-5), (b), and 
8(b-5) of this Section shall, subject to appropriation, be used 
9as follows:

10 First - to make 3 payments to the School Technology 
11Revolving Loan Fund as
follows:

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

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

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

15 Second - to pay any amounts due for grants for school 
16construction projects
and debt service under the School 
17Construction Law.

18 Third - to pay any amounts due for grants for school 
19maintenance projects
under the School Construction Law.

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


21 Section 35-35. The Illinois Income Tax Act is amended by 
22changing Sections 201, 303, 304, and 710 as follows:

23 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
24 Sec. 201. Tax imposed. 
 
 
10100SB0690ham003- 360 -LRB101 04451 SMS 61572 a


1 (a) In general. A tax measured by net income is hereby 
2imposed on every
individual, corporation, trust and estate for 
3each taxable year ending
after July 31, 1969 on the privilege 
4of earning or receiving income in or
as a resident of this 
5State. Such tax shall be in addition to all other
occupation or 
6privilege taxes imposed by this State or by any municipal

7corporation or political subdivision thereof.
8 (b) Rates. The tax imposed by subsection (a) of this 
9Section shall be
determined as follows, except as adjusted by 
10subsection (d-1):
11  (1) In the case of an individual, trust or estate, for 
12 taxable years
ending prior to July 1, 1989, an amount equal 
13 to 2 1/2% of the taxpayer's
net income for the taxable 
14 year.
15  (2) In the case of an individual, trust or estate, for 
16 taxable years
beginning prior to July 1, 1989 and ending 
17 after June 30, 1989, an amount
equal to the sum of (i) 2 
18 1/2% of the taxpayer's net income for the period
prior to 
19 July 1, 1989, as calculated under Section 202.3, and (ii) 
20 3% of the
taxpayer's net income for the period after June 
21 30, 1989, as calculated
under Section 202.3.
22  (3) In the case of an individual, trust or estate, for 
23 taxable years
beginning after June 30, 1989, and ending 
24 prior to January 1, 2011, an amount equal to 3% of the 
25 taxpayer's net
income for the taxable year.
26  (4) In the case of an individual, trust, or estate, for 
 
 
10100SB0690ham003- 361 -LRB101 04451 SMS 61572 a


1 taxable years beginning prior to January 1, 2011, and 
2 ending after December 31, 2010, an amount equal to the sum 
3 of (i) 3% of the taxpayer's net income for the period prior 
4 to January 1, 2011, as calculated under Section 202.5, and 
5 (ii) 5% of the taxpayer's net income for the period after 
6 December 31, 2010, as calculated under Section 202.5.
7  (5) In the case of an individual, trust, or estate, for 
8 taxable years beginning on or after January 1, 2011, and 
9 ending prior to January 1, 2015, an amount equal to 5% of 
10 the taxpayer's net income for the taxable year.
11  (5.1) In the case of an individual, trust, or estate, 
12 for taxable years beginning prior to January 1, 2015, and 
13 ending after December 31, 2014, an amount equal to the sum 
14 of (i) 5% of the taxpayer's net income for the period prior 
15 to January 1, 2015, as calculated under Section 202.5, and 
16 (ii) 3.75% of the taxpayer's net income for the period 
17 after December 31, 2014, as calculated under Section 202.5. 
18  (5.2) In the case of an individual, trust, or estate, 
19 for taxable years beginning on or after January 1, 2015, 
20 and ending prior to July 1, 2017, an amount equal to 3.75% 
21 of the taxpayer's net income for the taxable year. 
22  (5.3) In the case of an individual, trust, or estate, 
23 for taxable years beginning prior to July 1, 2017, and 
24 ending after June 30, 2017, an amount equal to the sum of 
25 (i) 3.75% of the taxpayer's net income for the period prior 
26 to July 1, 2017, as calculated under Section 202.5, and 
 
 
10100SB0690ham003- 362 -LRB101 04451 SMS 61572 a


1 (ii) 4.95% of the taxpayer's net income for the period 
2 after June 30, 2017, as calculated under Section 202.5. 
3  (5.4) In the case of an individual, trust, or estate, 
4 for taxable years beginning on or after July 1, 2017, an 
5 amount equal to 4.95% of the taxpayer's net income for the 
6 taxable year. 
7  (6) In the case of a corporation, for taxable years

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

9 taxpayer's net income for the taxable year.
10  (7) In the case of a corporation, for taxable years 
11 beginning prior to
July 1, 1989 and ending after June 30, 
12 1989, an amount equal to the sum of
(i) 4% of the 
13 taxpayer's net income for the period prior to July 1, 1989,

14 as calculated under Section 202.3, and (ii) 4.8% of the 
15 taxpayer's net
income for the period after June 30, 1989, 
16 as calculated under Section
202.3.
17  (8) In the case of a corporation, for taxable years 
18 beginning after
June 30, 1989, and ending prior to January 
19 1, 2011, an amount equal to 4.8% of the taxpayer's net 
20 income for the
taxable year.
21  (9) In the case of a corporation, for taxable years 
22 beginning prior to January 1, 2011, and ending after 
23 December 31, 2010, an amount equal to the sum of (i) 4.8% 
24 of the taxpayer's net income for the period prior to 
25 January 1, 2011, as calculated under Section 202.5, and 
26 (ii) 7% of the taxpayer's net income for the period after 
 
 
10100SB0690ham003- 363 -LRB101 04451 SMS 61572 a


1 December 31, 2010, as calculated under Section 202.5. 
2  (10) In the case of a corporation, for taxable years 
3 beginning on or after January 1, 2011, and ending prior to 
4 January 1, 2015, an amount equal to 7% of the taxpayer's 
5 net income for the taxable year. 
6  (11) In the case of a corporation, for taxable years 
7 beginning prior to January 1, 2015, and ending after 
8 December 31, 2014, an amount equal to the sum of (i) 7% of 
9 the taxpayer's net income for the period prior to January 
10 1, 2015, as calculated under Section 202.5, and (ii) 5.25% 
11 of the taxpayer's net income for the period after December 
12 31, 2014, as calculated under Section 202.5. 
13  (12) In the case of a corporation, for taxable years 
14 beginning on or after January 1, 2015, and ending prior to 
15 July 1, 2017, an amount equal to 5.25% of the taxpayer's 
16 net income for the taxable year. 
17  (13) In the case of a corporation, for taxable years 
18 beginning prior to July 1, 2017, and ending after June 30, 
19 2017, an amount equal to the sum of (i) 5.25% of the 
20 taxpayer's net income for the period prior to July 1, 2017, 
21 as calculated under Section 202.5, and (ii) 7% of the 
22 taxpayer's net income for the period after June 30, 2017, 
23 as calculated under Section 202.5. 
24  (14) In the case of a corporation, for taxable years 
25 beginning on or after July 1, 2017, an amount equal to 7% 
26 of the taxpayer's net income for the taxable year. 
 
 
10100SB0690ham003- 364 -LRB101 04451 SMS 61572 a


1 The rates under this subsection (b) are subject to the 
2provisions of Section 201.5. 
3 (b-5) Surcharge; sale or exchange of assets, properties, 
4and intangibles of organization gaming licensees. For each of 
5taxable years 2019 through 2027, a surcharge is imposed on all 
6taxpayers on income arising from the sale or exchange of 
7capital assets, depreciable business property, real property 
8used in the trade or business, and Section 197 intangibles (i) 
9of an organization licensee under the Illinois Horse Racing Act 
10of 1975 and (ii) of an organization gaming licensee under the 
11Illinois Gambling Act. The amount of the surcharge is equal to 
12the amount of federal income tax liability for the taxable year 
13attributable to those sales and exchanges. The surcharge 
14imposed shall not apply if: 
15  (1) the organization gaming license, organization 
16 license, or racetrack property is transferred as a result 
17 of any of the following:
18   (A) bankruptcy, a receivership, or a debt 
19 adjustment initiated by or against the initial 
20 licensee or the substantial owners of the initial 
21 licensee;
22   (B) cancellation, revocation, or termination of 
23 any such license by the Illinois Gaming Board or the 
24 Illinois Racing Board;
25   (C) a determination by the Illinois Gaming Board 
26 that transfer of the license is in the best interests 
 
 
10100SB0690ham003- 365 -LRB101 04451 SMS 61572 a


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

4Beginning on July 1, 1979 and thereafter, in addition to such 
5income
tax, there is also hereby imposed the Personal Property 
6Tax Replacement
Income Tax measured by net income on every 
7corporation (including Subchapter
S corporations), partnership 
8and trust, for each taxable year ending after
June 30, 1979. 
9Such taxes are imposed on the privilege of earning or
receiving 
10income in or as a resident of this State. The Personal Property

11Tax Replacement Income Tax shall be in addition to the income 
12tax imposed
by subsections (a) and (b) of this Section and in 
13addition to all other
occupation or privilege taxes imposed by 
14this State or by any municipal
corporation or political 
15subdivision thereof.
16 (d) Additional Personal Property Tax Replacement Income 
17Tax Rates.
The personal property tax replacement income tax 
18imposed by this subsection
and subsection (c) of this Section 
19in the case of a corporation, other
than a Subchapter S 
20corporation and except as adjusted by subsection (d-1),
shall 
21be an additional amount equal to
2.85% of such taxpayer's net 
22income for the taxable year, except that
beginning on January 
231, 1981, and thereafter, the rate of 2.85% specified
in this 
24subsection shall be reduced to 2.5%, and in the case of a

25partnership, trust or a Subchapter S corporation shall be an 
26additional
amount equal to 1.5% of such taxpayer's net income 
 
 
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1for the taxable year.
2 (d-1) Rate reduction for certain foreign insurers. In the 
3case of a
foreign insurer, as defined by Section 35A-5 of the 
4Illinois Insurance Code,
whose state or country of domicile 
5imposes on insurers domiciled in Illinois
a retaliatory tax 
6(excluding any insurer
whose premiums from reinsurance assumed 
7are 50% or more of its total insurance
premiums as determined 
8under paragraph (2) of subsection (b) of Section 304,
except 
9that for purposes of this determination premiums from 
10reinsurance do
not include premiums from inter-affiliate 
11reinsurance arrangements),
beginning with taxable years ending 
12on or after December 31, 1999,
the sum of
the rates of tax 
13imposed by subsections (b) and (d) shall be reduced (but not

14increased) to the rate at which the total amount of tax imposed 
15under this Act,
net of all credits allowed under this Act, 
16shall equal (i) the total amount of
tax that would be imposed 
17on the foreign insurer's net income allocable to
Illinois for 
18the taxable year by such foreign insurer's state or country of

19domicile if that net income were subject to all income taxes 
20and taxes
measured by net income imposed by such foreign 
21insurer's state or country of
domicile, net of all credits 
22allowed or (ii) a rate of zero if no such tax is
imposed on such 
23income by the foreign insurer's state of domicile.
For the 
24purposes of this subsection (d-1), an inter-affiliate includes 
25a
mutual insurer under common management.
26  (1) For the purposes of subsection (d-1), in no event 
 
 
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1 shall the sum of the
rates of tax imposed by subsections 
2 (b) and (d) be reduced below the rate at
which the sum of:
3   (A) the total amount of tax imposed on such foreign 
4 insurer under
this Act for a taxable year, net of all 
5 credits allowed under this Act, plus
6   (B) the privilege tax imposed by Section 409 of the 
7 Illinois Insurance
Code, the fire insurance company 
8 tax imposed by Section 12 of the Fire
Investigation 
9 Act, and the fire department taxes imposed under 
10 Section 11-10-1
of the Illinois Municipal Code,
11 equals 1.25% for taxable years ending prior to December 31, 
12 2003, or
1.75% for taxable years ending on or after 
13 December 31, 2003, of the net
taxable premiums written for 
14 the taxable year,
as described by subsection (1) of Section 
15 409 of the Illinois Insurance Code.
This paragraph will in 
16 no event increase the rates imposed under subsections
(b) 
17 and (d).
18  (2) Any reduction in the rates of tax imposed by this 
19 subsection shall be
applied first against the rates imposed 
20 by subsection (b) and only after the
tax imposed by 
21 subsection (a) net of all credits allowed under this 
22 Section
other than the credit allowed under subsection (i) 
23 has been reduced to zero,
against the rates imposed by 
24 subsection (d).
25 This subsection (d-1) is exempt from the provisions of 
26Section 250.
 
 
10100SB0690ham003- 369 -LRB101 04451 SMS 61572 a


1 (e) Investment credit. A taxpayer shall be allowed a credit

2against the Personal Property Tax Replacement Income Tax for

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

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

23 preceding year is less than 1%, the additional credit shall 
24 be limited to that
percentage times a fraction, the 
25 numerator of which is .5% and the denominator
of which is 
26 1%, but shall not exceed .5%. The investment credit shall 
 
 
10100SB0690ham003- 370 -LRB101 04451 SMS 61572 a


1 not be
allowed to the extent that it would reduce a 
2 taxpayer's liability in any tax
year below zero, nor may 
3 any credit for qualified property be allowed for any
year 
4 other than the year in which the property was placed in 
5 service in
Illinois. For tax years ending on or after 
6 December 31, 1987, and on or
before December 31, 1988, the 
7 credit shall be allowed for the tax year in
which the 
8 property is placed in service, or, if the amount of the 
9 credit
exceeds the tax liability for that year, whether it 
10 exceeds the original
liability or the liability as later 
11 amended, such excess may be carried
forward and applied to 
12 the tax liability of the 5 taxable years following
the 
13 excess credit years if the taxpayer (i) makes investments 
14 which cause
the creation of a minimum of 2,000 full-time 
15 equivalent jobs in Illinois,
(ii) is located in an 
16 enterprise zone established pursuant to the Illinois

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

22 Community Affairs (now Department of Commerce and Economic 
23 Opportunity) shall notify the Department of Revenue of all 
24 such
certifications immediately. For tax years ending 
25 after December 31, 1988,
the credit shall be allowed for 
26 the tax year in which the property is
placed in service, 
 
 
10100SB0690ham003- 371 -LRB101 04451 SMS 61572 a


1 or, if the amount of the credit exceeds the tax
liability 
2 for that year, whether it exceeds the original liability or 
3 the
liability as later amended, such excess may be carried 
4 forward and applied
to the tax liability of the 5 taxable 
5 years following the excess credit
years. The credit shall 
6 be applied to the earliest year for which there is
a 
7 liability. If there is credit from more than one tax year 
8 that is
available to offset a liability, earlier credit 
9 shall be applied first.
10  (2) The term "qualified property" means property 
11 which:
12   (A) is tangible, whether new or used, including 
13 buildings and structural
components of buildings and 
14 signs that are real property, but not including
land or 
15 improvements to real property that are not a structural 
16 component of a
building such as landscaping, sewer 
17 lines, local access roads, fencing, parking
lots, and 
18 other appurtenances;
19   (B) is depreciable pursuant to Section 167 of the 
20 Internal Revenue Code,
except that "3-year property" 
21 as defined in Section 168(c)(2)(A) of that
Code is not 
22 eligible for the credit provided by this subsection 
23 (e);
24   (C) is acquired by purchase as defined in Section 
25 179(d) of
the Internal Revenue Code;
26   (D) is used in Illinois by a taxpayer who is 
 
 
10100SB0690ham003- 372 -LRB101 04451 SMS 61572 a


1 primarily engaged in
manufacturing, or in mining coal 
2 or fluorite, or in retailing, or was placed in service 
3 on or after July 1, 2006 in a River Edge Redevelopment 
4 Zone established pursuant to the River Edge 
5 Redevelopment Zone Act; and
6   (E) has not previously been used in Illinois in 
7 such a manner and by
such a person as would qualify for 
8 the credit provided by this subsection
(e) or 
9 subsection (f).
10  (3) For purposes of this subsection (e), 
11 "manufacturing" means
the material staging and production 
12 of tangible personal property by
procedures commonly 
13 regarded as manufacturing, processing, fabrication, or

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

21 services rendered in conjunction with the sale of tangible 
22 personal property for use or consumption and not for 
23 resale. For purposes of this subsection (e), "tangible 
24 personal property" has the same meaning as when that term 
25 is used in the Retailers' Occupation Tax Act, and, for 
26 taxable years ending after December 31, 2008, does not 
 
 
10100SB0690ham003- 373 -LRB101 04451 SMS 61572 a


1 include the generation, transmission, or distribution of 
2 electricity.
3  (4) The basis of qualified property shall be the basis

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

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

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

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

24 from the amount of credit previously allowed. For the 
25 purposes of this
paragraph (7), a reduction of the basis of 
26 qualified property resulting
from a redetermination of the 
 
 
10100SB0690ham003- 374 -LRB101 04451 SMS 61572 a


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

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

22 that taxable year. The election to pass through the credits 
23 shall be
irrevocable.
24  For taxable years ending on or after December 31, 2000, 
25 a
partner that qualifies its
partnership for a subtraction 
26 under subparagraph (I) of paragraph (2) of
subsection (d) 
 
 
10100SB0690ham003- 375 -LRB101 04451 SMS 61572 a


1 of Section 203 or a shareholder that qualifies a Subchapter 
2 S
corporation for a subtraction under subparagraph (S) of 
3 paragraph (2) of
subsection (b) of Section 203 shall be 
4 allowed a credit under this subsection
(e) equal to its 
5 share of the credit earned under this subsection (e) during

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

23 if the liability company is treated as a partnership for 
24 purposes of
federal and State income taxation, there shall 
25 be allowed a credit under
this subsection (f) to be 
26 determined in accordance with the determination
of income 
 
 
10100SB0690ham003- 376 -LRB101 04451 SMS 61572 a


1 and distributive share of income under Sections 702 and 704 
2 and
Subchapter S of the Internal Revenue Code. The credit 
3 shall be .5% of the
basis for such property. The credit 
4 shall be available only in the taxable
year in which the 
5 property is placed in service in the Enterprise Zone or 
6 River Edge Redevelopment Zone and
shall not be allowed to 
7 the extent that it would reduce a taxpayer's
liability for 
8 the tax imposed by subsections (a) and (b) of this Section 
9 to
below zero. For tax years ending on or after December 
10 31, 1985, the credit
shall be allowed for the tax year in 
11 which the property is placed in
service, or, if the amount 
12 of the credit exceeds the tax liability for that
year, 
13 whether it exceeds the original liability or the liability 
14 as later
amended, such excess may be carried forward and 
15 applied to the tax
liability of the 5 taxable years 
16 following the excess credit year.
The credit shall be 
17 applied to the earliest year for which there is a

18 liability. If there is credit from more than one tax year 
19 that is available
to offset a liability, the credit 
20 accruing first in time shall be applied
first.
21  (2) The term qualified property means property which:
22   (A) is tangible, whether new or used, including 
23 buildings and
structural components of buildings;
24   (B) is depreciable pursuant to Section 167 of the 
25 Internal Revenue
Code, except that "3-year property" 
26 as defined in Section 168(c)(2)(A) of
that Code is not 
 
 
10100SB0690ham003- 377 -LRB101 04451 SMS 61572 a


1 eligible for the credit provided by this subsection 
2 (f);
3   (C) is acquired by purchase as defined in Section 
4 179(d) of
the Internal Revenue Code;
5   (D) is used in the Enterprise Zone or River Edge 
6 Redevelopment Zone by the taxpayer; and
7   (E) has not been previously used in Illinois in 
8 such a manner and by
such a person as would qualify for 
9 the credit provided by this subsection
(f) or 
10 subsection (e).
11  (3) The basis of qualified property shall be the basis 
12 used to compute
the depreciation deduction for federal 
13 income tax purposes.
14  (4) If the basis of the property for federal income tax 
15 depreciation
purposes is increased after it has been placed 
16 in service in the Enterprise
Zone or River Edge 
17 Redevelopment Zone by the taxpayer, the amount of such 
18 increase shall be deemed property
placed in service on the 
19 date of such increase in basis.
20  (5) The term "placed in service" shall have the same 
21 meaning as under
Section 46 of the Internal Revenue Code.
22  (6) If during any taxable year, any property ceases to 
23 be qualified
property in the hands of the taxpayer within 
24 48 months after being placed
in service, or the situs of 
25 any qualified property is moved outside the
Enterprise Zone 
26 or River Edge Redevelopment Zone within 48 months after 
 
 
10100SB0690ham003- 378 -LRB101 04451 SMS 61572 a


1 being placed in service, the tax
imposed under subsections 
2 (a) and (b) of this Section for such taxable year
shall be 
3 increased. Such increase shall be determined by (i) 
4 recomputing
the investment credit which would have been 
5 allowed for the year in which
credit for such property was 
6 originally allowed by eliminating such
property from such 
7 computation, and (ii) subtracting such recomputed credit

8 from the amount of credit previously allowed. For the 
9 purposes of this
paragraph (6), a reduction of the basis of 
10 qualified property resulting
from a redetermination of the 
11 purchase price shall be deemed a disposition
of qualified 
12 property to the extent of such reduction.
13  (7) There shall be allowed an additional credit equal 
14 to 0.5% of the basis of qualified property placed in 
15 service during the taxable year in a River Edge 
16 Redevelopment Zone, provided such property is placed in 
17 service on or after July 1, 2006, and the taxpayer's base 
18 employment within Illinois has increased by 1% or more over 
19 the preceding year as determined by the taxpayer's 
20 employment records filed with the Illinois Department of 
21 Employment Security. Taxpayers who are new to Illinois 
22 shall be deemed to have met the 1% growth in base 
23 employment for the first year in which they file employment 
24 records with the Illinois Department of Employment 
25 Security. If, in any year, the increase in base employment 
26 within Illinois over the preceding year is less than 1%, 
 
 
10100SB0690ham003- 379 -LRB101 04451 SMS 61572 a


1 the additional credit shall be limited to that percentage 
2 times a fraction, the numerator of which is 0.5% and the 
3 denominator of which is 1%, but shall not exceed 0.5%.

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

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

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

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

22 reduce a taxpayer's liability for the tax imposed by 
23 subsections (a) and (b) of
this Section to below zero. The 
24 credit applicable to such investments shall be
taken in the 
25 taxable year in which such investments have been completed. 
26 The
credit for additional investments beyond the minimum 
 
 
10100SB0690ham003- 380 -LRB101 04451 SMS 61572 a


1 investment by a designated
high impact business authorized 
2 under subdivision (a)(3)(A) of Section 5.5 of
the Illinois 
3 Enterprise Zone Act shall be available only in the taxable 
4 year in
which the property is placed in service and shall 
5 not be allowed to the extent
that it would reduce a 
6 taxpayer's liability for the tax imposed by subsections
(a) 
7 and (b) of this Section to below zero.
For tax years ending 
8 on or after December 31, 1987, the credit shall be
allowed 
9 for the tax year in which the property is placed in 
10 service, or, if
the amount of the credit exceeds the tax 
11 liability for that year, whether
it exceeds the original 
12 liability or the liability as later amended, such
excess 
13 may be carried forward and applied to the tax liability of 
14 the 5
taxable years following the excess credit year. The 
15 credit shall be
applied to the earliest year for which 
16 there is a liability. If there is
credit from more than one 
17 tax year that is available to offset a liability,
the 
18 credit accruing first in time shall be applied first.
19  Changes made in this subdivision (h)(1) by Public Act 
20 88-670
restore changes made by Public Act 85-1182 and 
21 reflect existing law.
22  (2) The term qualified property means property which:
23   (A) is tangible, whether new or used, including 
24 buildings and
structural components of buildings;
25   (B) is depreciable pursuant to Section 167 of the 
26 Internal Revenue
Code, except that "3-year property" 
 
 
10100SB0690ham003- 381 -LRB101 04451 SMS 61572 a


1 as defined in Section 168(c)(2)(A) of
that Code is not 
2 eligible for the credit provided by this subsection 
3 (h);
4   (C) is acquired by purchase as defined in Section 
5 179(d) of the
Internal Revenue Code; and
6   (D) is not eligible for the Enterprise Zone 
7 Investment Credit provided
by subsection (f) of this 
8 Section.
9  (3) The basis of qualified property shall be the basis 
10 used to compute
the depreciation deduction for federal 
11 income tax purposes.
12  (4) If the basis of the property for federal income tax 
13 depreciation
purposes is increased after it has been placed 
14 in service in a federally
designated Foreign Trade Zone or 
15 Sub-Zone located in Illinois by the taxpayer,
the amount of 
16 such increase shall be deemed property placed in service on

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

22 property in the hands of the taxpayer within 48 months 
23 after being placed
in service, or the situs of any 
24 qualified property is moved outside
Illinois within 48 
25 months after being placed in service, the tax imposed
under 
26 subsections (a) and (b) of this Section for such taxable 
 
 
10100SB0690ham003- 382 -LRB101 04451 SMS 61572 a


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

17 18-183 of the Property Tax Code, the tax imposed under 
18 subsections
(a) and (b) of this Section shall be increased 
19 for the taxable year
in which the taxpayer relocated its 
20 facility by an amount equal to the
amount of credit 
21 received by the taxpayer under this subsection (h).
22 (i) Credit for Personal Property Tax Replacement Income 
23Tax.
For tax years ending prior to December 31, 2003, a credit 
24shall be allowed
against the tax imposed by
subsections (a) and 
25(b) of this Section for the tax imposed by subsections (c)
and 
26(d) of this Section. This credit shall be computed by 
 
 
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1multiplying the tax
imposed by subsections (c) and (d) of this 
2Section by a fraction, the numerator
of which is base income 
3allocable to Illinois and the denominator of which is
Illinois 
4base income, and further multiplying the product by the tax 
5rate
imposed by subsections (a) and (b) of this Section.
6 Any credit earned on or after December 31, 1986 under
this 
7subsection which is unused in the year
the credit is computed 
8because it exceeds the tax liability imposed by
subsections (a) 
9and (b) for that year (whether it exceeds the original

10liability or the liability as later amended) may be carried 
11forward and
applied to the tax liability imposed by subsections 
12(a) and (b) of the 5
taxable years following the excess credit 
13year, provided that no credit may
be carried forward to any 
14year ending on or
after December 31, 2003. This credit shall be

15applied first to the earliest year for which there is a 
16liability. If
there is a credit under this subsection from more 
17than one tax year that is
available to offset a liability the 
18earliest credit arising under this
subsection shall be applied 
19first.
20 If, during any taxable year ending on or after December 31, 
211986, the
tax imposed by subsections (c) and (d) of this 
22Section for which a taxpayer
has claimed a credit under this 
23subsection (i) is reduced, the amount of
credit for such tax 
24shall also be reduced. Such reduction shall be
determined by 
25recomputing the credit to take into account the reduced tax

26imposed by subsections (c) and (d). If any portion of the

 
 
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1reduced amount of credit has been carried to a different 
2taxable year, an
amended return shall be filed for such taxable 
3year to reduce the amount of
credit claimed.
4 (j) Training expense credit. Beginning with tax years 
5ending on or
after December 31, 1986 and prior to December 31, 
62003, a taxpayer shall be
allowed a credit against the
tax 
7imposed by subsections (a) and (b) under this Section
for all 
8amounts paid or accrued, on behalf of all persons
employed by 
9the taxpayer in Illinois or Illinois residents employed
outside 
10of Illinois by a taxpayer, for educational or vocational 
11training in
semi-technical or technical fields or semi-skilled 
12or skilled fields, which
were deducted from gross income in the 
13computation of taxable income. The
credit against the tax 
14imposed by subsections (a) and (b) shall be 1.6% of
such 
15training expenses. For partners, shareholders of subchapter S

16corporations, and owners of limited liability companies, if the 
17liability
company is treated as a partnership for purposes of 
18federal and State income
taxation, there shall be allowed a 
19credit under this subsection (j) to be
determined in accordance 
20with the determination of income and distributive
share of 
21income under Sections 702 and 704 and subchapter S of the 
22Internal
Revenue Code.
23 Any credit allowed under this subsection which is unused in 
24the year
the credit is earned may be carried forward to each of 
25the 5 taxable
years following the year for which the credit is 
26first computed until it is
used. This credit shall be applied 
 
 
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1first to the earliest year for which
there is a liability. If 
2there is a credit under this subsection from more
than one tax 
3year that is available to offset a liability the earliest

4credit arising under this subsection shall be applied first. No 
5carryforward
credit may be claimed in any tax year ending on or 
6after
December 31, 2003.
7 (k) Research and development credit. For tax years ending 
8after July 1, 1990 and prior to
December 31, 2003, and 
9beginning again for tax years ending on or after December 31, 
102004, and ending prior to January 1, 2022, a taxpayer shall be

11allowed a credit against the tax imposed by subsections (a) and 
12(b) of this
Section for increasing research activities in this 
13State. The credit
allowed against the tax imposed by 
14subsections (a) and (b) shall be equal
to 6 1/2% of the 
15qualifying expenditures for increasing research activities
in 
16this State. For partners, shareholders of subchapter S 
17corporations, and
owners of limited liability companies, if the 
18liability company is treated as a
partnership for purposes of 
19federal and State income taxation, there shall be
allowed a 
20credit under this subsection to be determined in accordance 
21with the
determination of income and distributive share of 
22income under Sections 702 and
704 and subchapter S of the 
23Internal Revenue Code.
24 For purposes of this subsection, "qualifying expenditures" 
25means the
qualifying expenditures as defined for the federal 
26credit for increasing
research activities which would be 
 
 
10100SB0690ham003- 386 -LRB101 04451 SMS 61572 a


1allowable under Section 41 of the
Internal Revenue Code and 
2which are conducted in this State, "qualifying
expenditures for 
3increasing research activities in this State" means the
excess 
4of qualifying expenditures for the taxable year in which 
5incurred
over qualifying expenditures for the base period, 
6"qualifying expenditures
for the base period" means the average 
7of the qualifying expenditures for
each year in the base 
8period, and "base period" means the 3 taxable years
immediately 
9preceding the taxable year for which the determination is
being 
10made.
11 Any credit in excess of the tax liability for the taxable 
12year
may be carried forward. A taxpayer may elect to have the

13unused credit shown on its final completed return carried over 
14as a credit
against the tax liability for the following 5 
15taxable years or until it has
been fully used, whichever occurs 
16first; provided that no credit earned in a tax year ending 
17prior to December 31, 2003 may be carried forward to any year 
18ending on or after December 31, 2003.
19 If an unused credit is carried forward to a given year from 
202 or more
earlier years, that credit arising in the earliest 
21year will be applied
first against the tax liability for the 
22given year. If a tax liability for
the given year still 
23remains, the credit from the next earliest year will
then be 
24applied, and so on, until all credits have been used or no tax

25liability for the given year remains. Any remaining unused 
26credit or
credits then will be carried forward to the next 
 
 
10100SB0690ham003- 387 -LRB101 04451 SMS 61572 a


1following year in which a
tax liability is incurred, except 
2that no credit can be carried forward to
a year which is more 
3than 5 years after the year in which the expense for
which the 
4credit is given was incurred.
5 No inference shall be drawn from this amendatory Act of the 
691st General
Assembly in construing this Section for taxable 
7years beginning before January
1, 1999.
8 It is the intent of the General Assembly that the research 
9and development credit under this subsection (k) shall apply 
10continuously for all tax years ending on or after December 31, 
112004 and ending prior to January 1, 2022, including, but not 
12limited to, the period beginning on January 1, 2016 and ending 
13on the effective date of this amendatory Act of the 100th 
14General Assembly. All actions taken in reliance on the 
15continuation of the credit under this subsection (k) by any 
16taxpayer are hereby validated. 
17 (l) Environmental Remediation Tax Credit.
18  (i) For tax years ending after December 31, 1997 and on 
19 or before
December 31, 2001, a taxpayer shall be allowed a 
20 credit against the tax
imposed by subsections (a) and (b) 
21 of this Section for certain amounts paid
for unreimbursed 
22 eligible remediation costs, as specified in this 
23 subsection.
For purposes of this Section, "unreimbursed 
24 eligible remediation costs" means
costs approved by the 
25 Illinois Environmental Protection Agency ("Agency") under

26 Section 58.14 of the Environmental Protection Act that were 
 
 
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1 paid in performing
environmental remediation at a site for 
2 which a No Further Remediation Letter
was issued by the 
3 Agency and recorded under Section 58.10 of the 
4 Environmental
Protection Act. The credit must be claimed 
5 for the taxable year in which
Agency approval of the 
6 eligible remediation costs is granted. The credit is
not 
7 available to any taxpayer if the taxpayer or any related 
8 party caused or
contributed to, in any material respect, a 
9 release of regulated substances on,
in, or under the site 
10 that was identified and addressed by the remedial
action 
11 pursuant to the Site Remediation Program of the 
12 Environmental Protection
Act. After the Pollution Control 
13 Board rules are adopted pursuant to the
Illinois 
14 Administrative Procedure Act for the administration and 
15 enforcement of
Section 58.9 of the Environmental 
16 Protection Act, determinations as to credit
availability 
17 for purposes of this Section shall be made consistent with 
18 those
rules. For purposes of this Section, "taxpayer" 
19 includes a person whose tax
attributes the taxpayer has 
20 succeeded to under Section 381 of the Internal
Revenue Code 
21 and "related party" includes the persons disallowed a 
22 deduction
for losses by paragraphs (b), (c), and (f)(1) of 
23 Section 267 of the Internal
Revenue Code by virtue of being 
24 a related taxpayer, as well as any of its
partners. The 
25 credit allowed against the tax imposed by subsections (a) 
26 and
(b) shall be equal to 25% of the unreimbursed eligible 
 
 
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1 remediation costs in
excess of $100,000 per site, except 
2 that the $100,000 threshold shall not apply
to any site 
3 contained in an enterprise zone as determined by the 
4 Department of
Commerce and Community Affairs (now 
5 Department of Commerce and Economic Opportunity). The 
6 total credit allowed shall not exceed
$40,000 per year with 
7 a maximum total of $150,000 per site. For partners and

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

12 subchapter S of the Internal Revenue Code.
13  (ii) A credit allowed under this subsection that is 
14 unused in the year
the credit is earned may be carried 
15 forward to each of the 5 taxable years
following the year 
16 for which the credit is first earned until it is used.
The 
17 term "unused credit" does not include any amounts of 
18 unreimbursed eligible
remediation costs in excess of the 
19 maximum credit per site authorized under
paragraph (i). 
20 This credit shall be applied first to the earliest year
for 
21 which there is a liability. If there is a credit under this 
22 subsection
from more than one tax year that is available to 
23 offset a liability, the
earliest credit arising under this 
24 subsection shall be applied first. A
credit allowed under 
25 this subsection may be sold to a buyer as part of a sale
of 
26 all or part of the remediation site for which the credit 
 
 
10100SB0690ham003- 390 -LRB101 04451 SMS 61572 a


1 was granted. The
purchaser of a remediation site and the 
2 tax credit shall succeed to the unused
credit and remaining 
3 carry-forward period of the seller. To perfect the

4 transfer, the assignor shall record the transfer in the 
5 chain of title for the
site and provide written notice to 
6 the Director of the Illinois Department of
Revenue of the 
7 assignor's intent to sell the remediation site and the 
8 amount of
the tax credit to be transferred as a portion of 
9 the sale. In no event may a
credit be transferred to any 
10 taxpayer if the taxpayer or a related party would
not be 
11 eligible under the provisions of subsection (i).
12  (iii) For purposes of this Section, the term "site" 
13 shall have the same
meaning as under Section 58.2 of the 
14 Environmental Protection Act.
15 (m) Education expense credit. Beginning with tax years 
16ending after
December 31, 1999, a taxpayer who
is the custodian 
17of one or more qualifying pupils shall be allowed a credit

18against the tax imposed by subsections (a) and (b) of this 
19Section for
qualified education expenses incurred on behalf of 
20the qualifying pupils.
The credit shall be equal to 25% of 
21qualified education expenses, but in no
event may the total 
22credit under this subsection claimed by a
family that is the

23custodian of qualifying pupils exceed (i) $500 for tax years 
24ending prior to December 31, 2017, and (ii) $750 for tax years 
25ending on or after December 31, 2017. In no event shall a 
26credit under
this subsection reduce the taxpayer's liability 
 
 
10100SB0690ham003- 391 -LRB101 04451 SMS 61572 a


1under this Act to less than
zero. Notwithstanding any other 
2provision of law, for taxable years beginning on or after 
3January 1, 2017, no taxpayer may claim a credit under this 
4subsection (m) if the taxpayer's adjusted gross income for the 
5taxable year exceeds (i) $500,000, in the case of spouses 
6filing a joint federal tax return or (ii) $250,000, in the case 
7of all other taxpayers. This subsection is exempt from the 
8provisions of Section 250 of this
Act.
9 For purposes of this subsection:
10 "Qualifying pupils" means individuals who (i) are 
11residents of the State of
Illinois, (ii) are under the age of 
1221 at the close of the school year for
which a credit is 
13sought, and (iii) during the school year for which a credit
is 
14sought were full-time pupils enrolled in a kindergarten through 
15twelfth
grade education program at any school, as defined in 
16this subsection.
17 "Qualified education expense" means the amount incurred
on 
18behalf of a qualifying pupil in excess of $250 for tuition, 
19book fees, and
lab fees at the school in which the pupil is 
20enrolled during the regular school
year.
21 "School" means any public or nonpublic elementary or 
22secondary school in
Illinois that is in compliance with Title 
23VI of the Civil Rights Act of 1964
and attendance at which 
24satisfies the requirements of Section 26-1 of the
School Code, 
25except that nothing shall be construed to require a child to

26attend any particular public or nonpublic school to qualify for 
 
 
10100SB0690ham003- 392 -LRB101 04451 SMS 61572 a


1the credit
under this Section.
2 "Custodian" means, with respect to qualifying pupils, an 
3Illinois resident
who is a parent, the parents, a legal 
4guardian, or the legal guardians of the
qualifying pupils.
5 (n) River Edge Redevelopment Zone site remediation tax 
6credit.

7  (i) For tax years ending on or after December 31, 2006, 
8 a taxpayer shall be allowed a credit against the tax 
9 imposed by subsections (a) and (b) of this Section for 
10 certain amounts paid for unreimbursed eligible remediation 
11 costs, as specified in this subsection. For purposes of 
12 this Section, "unreimbursed eligible remediation costs" 
13 means costs approved by the Illinois Environmental 
14 Protection Agency ("Agency") under Section 58.14a of the 
15 Environmental Protection Act that were paid in performing 
16 environmental remediation at a site within a River Edge 
17 Redevelopment Zone for which a No Further Remediation 
18 Letter was issued by the Agency and recorded under Section 
19 58.10 of the Environmental Protection Act. The credit must 
20 be claimed for the taxable year in which Agency approval of 
21 the eligible remediation costs is granted. The credit is 
22 not available to any taxpayer if the taxpayer or any 
23 related party caused or contributed to, in any material 
24 respect, a release of regulated substances on, in, or under 
25 the site that was identified and addressed by the remedial 
26 action pursuant to the Site Remediation Program of the 
 
 
10100SB0690ham003- 393 -LRB101 04451 SMS 61572 a


1 Environmental Protection Act. Determinations as to credit 
2 availability for purposes of this Section shall be made 
3 consistent with rules adopted by the Pollution Control 
4 Board pursuant to the Illinois Administrative Procedure 
5 Act for the administration and enforcement of Section 58.9 
6 of the Environmental Protection Act. For purposes of this 
7 Section, "taxpayer" includes a person whose tax attributes 
8 the taxpayer has succeeded to under Section 381 of the 
9 Internal Revenue Code and "related party" includes the 
10 persons disallowed a deduction for losses by paragraphs 
11 (b), (c), and (f)(1) of Section 267 of the Internal Revenue 
12 Code by virtue of being a related taxpayer, as well as any 
13 of its partners. The credit allowed against the tax imposed 
14 by subsections (a) and (b) shall be equal to 25% of the 
15 unreimbursed eligible remediation costs in excess of 
16 $100,000 per site.
17  (ii) A credit allowed under this subsection that is 
18 unused in the year the credit is earned may be carried 
19 forward to each of the 5 taxable years following the year 
20 for which the credit is first earned until it is used. This 
21 credit shall be applied first to the earliest year for 
22 which there is a liability. If there is a credit under this 
23 subsection from more than one tax year that is available to 
24 offset a liability, the earliest credit arising under this 
25 subsection shall be applied first. A credit allowed under 
26 this subsection may be sold to a buyer as part of a sale of 
 
 
10100SB0690ham003- 394 -LRB101 04451 SMS 61572 a


1 all or part of the remediation site for which the credit 
2 was granted. The purchaser of a remediation site and the 
3 tax credit shall succeed to the unused credit and remaining 
4 carry-forward period of the seller. To perfect the 
5 transfer, the assignor shall record the transfer in the 
6 chain of title for the site and provide written notice to 
7 the Director of the Illinois Department of Revenue of the 
8 assignor's intent to sell the remediation site and the 
9 amount of the tax credit to be transferred as a portion of 
10 the sale. In no event may a credit be transferred to any 
11 taxpayer if the taxpayer or a related party would not be 
12 eligible under the provisions of subsection (i).
13  (iii) For purposes of this Section, the term "site" 
14 shall have the same meaning as under Section 58.2 of the 
15 Environmental Protection Act.
16 (o) For each of taxable years during the Compassionate Use 
17of Medical Cannabis Pilot Program, a surcharge is imposed on 
18all taxpayers on income arising from the sale or exchange of 
19capital assets, depreciable business property, real property 
20used in the trade or business, and Section 197 intangibles of 
21an organization registrant under the Compassionate Use of 
22Medical Cannabis Pilot Program Act. The amount of the surcharge 
23is equal to the amount of federal income tax liability for the 
24taxable year attributable to those sales and exchanges. The 
25surcharge imposed does not apply if:
26  (1) the medical cannabis cultivation center 
 
 
10100SB0690ham003- 395 -LRB101 04451 SMS 61572 a


1 registration, medical cannabis dispensary registration, or 
2 the property of a registration is transferred as a result 
3 of any of the following:
4   (A) bankruptcy, a receivership, or a debt 
5 adjustment initiated by or against the initial 
6 registration or the substantial owners of the initial 
7 registration;
8   (B) cancellation, revocation, or termination of 
9 any registration by the Illinois Department of Public 
10 Health;
11   (C) a determination by the Illinois Department of 
12 Public Health that transfer of the registration is in 
13 the best interests of Illinois qualifying patients as 
14 defined by the Compassionate Use of Medical Cannabis 
15 Pilot Program Act;
16   (D) the death of an owner of the equity interest in 
17 a registrant;
18   (E) the acquisition of a controlling interest in 
19 the stock or substantially all of the assets of a 
20 publicly traded company;
21   (F) a transfer by a parent company to a wholly 
22 owned subsidiary; or
23   (G) the transfer or sale to or by one person to 
24 another person where both persons were initial owners 
25 of the registration when the registration was issued; 
26 or
 
 
10100SB0690ham003- 396 -LRB101 04451 SMS 61572 a


1  (2) the cannabis cultivation center registration, 
2 medical cannabis dispensary registration, or the 
3 controlling interest in a registrant's property is 
4 transferred in a transaction to lineal descendants in which 
5 no gain or loss is recognized or as a result of a 
6 transaction in accordance with Section 351 of the Internal 
7 Revenue Code in which no gain or loss is recognized.
8(Source: P.A. 100-22, eff. 7-6-17.)




9 (35 ILCS 5/303) (from Ch. 120, par. 3-303)



10 Sec. 303. (a) In general. Any item of capital gain or loss, 
11and any
item of income from rents or royalties from real or 
12tangible personal
property, interest, dividends, and patent or 
13copyright royalties, and prizes
awarded under the Illinois 
14Lottery Law, and, for taxable years ending on or after December 
1531, 2019, wagering and gambling winnings from Illinois sources 
16as set forth in subsection (e-1) of this Section, to the extent 
17such item constitutes
nonbusiness income, together with any 
18item of deduction directly allocable
thereto, shall be 
19allocated by any person other than a resident as provided
in 
20this Section.

21 (b) Capital gains and losses. 
22  (1) Real property. Capital gains and
losses from sales 
23 or exchanges of real property are allocable to this State

24 if the property is located in this State.

25  (2) Tangible personal property. Capital gains and 
 
 
10100SB0690ham003- 397 -LRB101 04451 SMS 61572 a


1 losses from sales
or exchanges of tangible personal 
2 property are allocable to this State if,
at the time of 
3 such sale or exchange:

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

5   (B) The taxpayer had its commercial domicile in 
6 this State and was not
taxable in the state in which 
7 the property had its situs.

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

12 (c) Rents and royalties.
13  (1) Real property. Rents and royalties
from real 
14 property are allocable to this State if the property is 
15 located
in this State.

16  (2) Tangible personal property. Rents and royalties 
17 from tangible
personal property are allocable to this 
18 State:

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

21   (B) In their entirety if, at the time such rents or 
22 royalties were paid
or accrued, the taxpayer had its 
23 commercial domicile in this State and was
not organized 
24 under the laws of or taxable with respect to such rents 
25 or
royalties in the state in which the property was 
26 utilized.
The extent of utilization of tangible 
 
 
10100SB0690ham003- 398 -LRB101 04451 SMS 61572 a


1 personal property in a state is
determined by 
2 multiplying the rents or royalties derived from such 
3 property
by a fraction, the numerator of which is the 
4 number of days of physical
location of the property in 
5 the state during the rental or royalty period
in the 
6 taxable year and the denominator of which is the number 
7 of days of
physical location of the property everywhere 
8 during all rental or royalty
periods in the taxable 
9 year. If the physical location of the property
during 
10 the rental or royalty period is unknown or 
11 unascertainable by the
taxpayer, tangible personal 
12 property is utilized in the state in which the
property 
13 was located at the time the rental or royalty payer 
14 obtained
possession.

15 (d) Patent and copyright royalties.

16  (1) Allocation. Patent and copyright royalties are 
17 allocable to this
State:

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

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

23 royalties and, at the time such royalties were paid or 
24 accrued, the
taxpayer had its commercial domicile in 
25 this State.

26  (2) Utilization.

 
 
10100SB0690ham003- 399 -LRB101 04451 SMS 61572 a


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

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

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

17 (e) Illinois lottery prizes. Prizes awarded under the 
18Illinois Lottery Law are allocable to this State. Payments 
19received in taxable years ending on or after December 31, 2013, 
20from the assignment of a prize under Section 13.1 of the 
21Illinois Lottery Law are allocable to this State.

22 (e-1) Wagering and gambling winnings. Payments received in 
23taxable years ending on or after December 31, 2019 of winnings 
24from pari-mutuel wagering conducted at a wagering facility 
25licensed under the Illinois Horse Racing Act of 1975 and from 
26gambling games conducted on a riverboat or in a casino or 
 
 
10100SB0690ham003- 400 -LRB101 04451 SMS 61572 a


1organization gaming facility licensed under the Illinois 
2Gambling Act are allocable to this State. 
3 (e-5) Unemployment benefits. Unemployment benefits paid by 
4the Illinois Department of Employment Security are allocable to 
5this State. 
6 (f) Taxability in other state. For purposes of allocation 
7of income
pursuant to this Section, a taxpayer is taxable in 
8another state if:

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

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

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

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

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





22 (35 ILCS 5/304) (from Ch. 120, par. 3-304)


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

24 (a) In general. The business income of a person other than 
25a
resident shall be allocated to this State if such person's 
 
 
10100SB0690ham003- 401 -LRB101 04451 SMS 61572 a


1business
income is derived solely from this State. If a person 
2other than a
resident derives business income from this State 
3and one or more other
states, then, for tax years ending on or 
4before December 30, 1998, and
except as otherwise provided by 
5this Section, such
person's business income shall be 
6apportioned to this State by
multiplying the income by a 
7fraction, the numerator of which is the sum
of the property 
8factor (if any), the payroll factor (if any) and 200% of the

9sales factor (if any), and the denominator of which is 4 
10reduced by the
number of factors other than the sales factor 
11which have a denominator
of zero and by an additional 2 if the 
12sales factor has a denominator of zero.
For tax years ending on 
13or after December 31, 1998, and except as otherwise
provided by 
14this Section, persons other than
residents who derive business 
15income from this State and one or more other
states shall 
16compute their apportionment factor by weighting their 
17property,
payroll, and sales factors as provided in
subsection 
18(h) of this Section.

19 (1) Property factor.

20  (A) The property factor is a fraction, the numerator of 
21 which is the
average value of the person's real and 
22 tangible personal property owned
or rented and used in the 
23 trade or business in this State during the
taxable year and 
24 the denominator of which is the average value of all
the 
25 person's real and tangible personal property owned or 
26 rented and
used in the trade or business during the taxable 
 
 
10100SB0690ham003- 402 -LRB101 04451 SMS 61572 a


1 year.

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

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

12 person's property.

13 (2) Payroll factor.

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

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

20   (i) The individual's service is performed entirely 
21 within this
State;

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

26   (iii) Some of the service is performed within this 
 
 
10100SB0690ham003- 403 -LRB101 04451 SMS 61572 a


1 State and either
the base of operations, or if there is 
2 no base of operations, the place
from which the service 
3 is directed or controlled is within this State,
or the 
4 base of operations or the place from which the service 
5 is
directed or controlled is not in any state in which 
6 some part of the
service is performed, but the 
7 individual's residence is in this State.

8   (iv) Compensation paid to nonresident professional 
9 athletes.
10   (a) General. The Illinois source income of a 
11 nonresident individual who is a member of a 
12 professional athletic team includes the portion of the 
13 individual's total compensation for services performed 
14 as a member of a professional athletic team during the 
15 taxable year which the number of duty days spent within 
16 this State performing services for the team in any 
17 manner during the taxable year bears to the total 
18 number of duty days spent both within and without this 
19 State during the taxable year.
20   (b) Travel days. Travel days that do not involve 
21 either a game, practice, team meeting, or other similar 
22 team event are not considered duty days spent in this 
23 State. However, such travel days are considered in the 
24 total duty days spent both within and without this 
25 State.
26   (c) Definitions. For purposes of this subpart 
 
 
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1 (iv):
2    (1) The term "professional athletic team" 
3 includes, but is not limited to, any professional 
4 baseball, basketball, football, soccer, or hockey 
5 team.
6    (2) The term "member of a professional 
7 athletic team" includes those employees who are 
8 active players, players on the disabled list, and 
9 any other persons required to travel and who travel 
10 with and perform services on behalf of a 
11 professional athletic team on a regular basis. 
12 This includes, but is not limited to, coaches, 
13 managers, and trainers.
14    (3) Except as provided in items (C) and (D) of 
15 this subpart (3), the term "duty days" means all 
16 days during the taxable year from the beginning of 
17 the professional athletic team's official 
18 pre-season training period through the last game 
19 in which the team competes or is scheduled to 
20 compete. Duty days shall be counted for the year in 
21 which they occur, including where a team's 
22 official pre-season training period through the 
23 last game in which the team competes or is 
24 scheduled to compete, occurs during more than one 
25 tax year.
26     (A) Duty days shall also include days on 
 
 
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1 which a member of a professional athletic team 
2 performs service for a team on a date that does 
3 not fall within the foregoing period (e.g., 
4 participation in instructional leagues, the 
5 "All Star Game", or promotional "caravans"). 
6 Performing a service for a professional 
7 athletic team includes conducting training and 
8 rehabilitation activities, when such 
9 activities are conducted at team facilities.
10     (B) Also included in duty days are game 
11 days, practice days, days spent at team 
12 meetings, promotional caravans, preseason 
13 training camps, and days served with the team 
14 through all post-season games in which the team 
15 competes or is scheduled to compete.
16     (C) Duty days for any person who joins a 
17 team during the period from the beginning of 
18 the professional athletic team's official 
19 pre-season training period through the last 
20 game in which the team competes, or is 
21 scheduled to compete, shall begin on the day 
22 that person joins the team. Conversely, duty 
23 days for any person who leaves a team during 
24 this period shall end on the day that person 
25 leaves the team. Where a person switches teams 
26 during a taxable year, a separate duty-day 
 
 
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1 calculation shall be made for the period the 
2 person was with each team.
3     (D) Days for which a member of a 
4 professional athletic team is not compensated 
5 and is not performing services for the team in 
6 any manner, including days when such member of 
7 a professional athletic team has been 
8 suspended without pay and prohibited from 
9 performing any services for the team, shall not 
10 be treated as duty days.
11     (E) Days for which a member of a 
12 professional athletic team is on the disabled 
13 list and does not conduct rehabilitation 
14 activities at facilities of the team, and is 
15 not otherwise performing services for the team 
16 in Illinois, shall not be considered duty days 
17 spent in this State. All days on the disabled 
18 list, however, are considered to be included in 
19 total duty days spent both within and without 
20 this State.
21    (4) The term "total compensation for services 
22 performed as a member of a professional athletic 
23 team" means the total compensation received during 
24 the taxable year for services performed:
25     (A) from the beginning of the official 
26 pre-season training period through the last 
 
 
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1 game in which the team competes or is scheduled 
2 to compete during that taxable year; and
3     (B) during the taxable year on a date which 
4 does not fall within the foregoing period 
5 (e.g., participation in instructional leagues, 
6 the "All Star Game", or promotional caravans).
7    This compensation shall include, but is not 
8 limited to, salaries, wages, bonuses as described 
9 in this subpart, and any other type of compensation 
10 paid during the taxable year to a member of a 
11 professional athletic team for services performed 
12 in that year. This compensation does not include 
13 strike benefits, severance pay, termination pay, 
14 contract or option year buy-out payments, 
15 expansion or relocation payments, or any other 
16 payments not related to services performed for the 
17 team.
18    For purposes of this subparagraph, "bonuses" 
19 included in "total compensation for services 
20 performed as a member of a professional athletic 
21 team" subject to the allocation described in 
22 Section 302(c)(1) are: bonuses earned as a result 
23 of play (i.e., performance bonuses) during the 
24 season, including bonuses paid for championship, 
25 playoff or "bowl" games played by a team, or for 
26 selection to all-star league or other honorary 
 
 
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1 positions; and bonuses paid for signing a 
2 contract, unless the payment of the signing bonus 
3 is not conditional upon the signee playing any 
4 games for the team or performing any subsequent 
5 services for the team or even making the team, the 
6 signing bonus is payable separately from the 
7 salary and any other compensation, and the signing 
8 bonus is nonrefundable.


9 (3) Sales factor.

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

14  (B) Sales of tangible personal property are in this 
15 State if:

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

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

9 property is purchased for resale.

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

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

19   (ii) Place of utilization.

20    (I) A patent is utilized in a state to the 
21 extent that it is employed
in production, 
22 fabrication, manufacturing, or other processing in 
23 the state or
to the extent that a patented product 
24 is produced in the state. If a patent is
utilized 
25 in
more than one state, the extent to which it is 
26 utilized in any one state shall
be a fraction equal 
 
 
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1 to the gross receipts of the licensee or purchaser 
2 from
sales or leases of items produced, 
3 fabricated, manufactured, or processed
within that 
4 state using the patent and of patented items 
5 produced within that
state, divided by the total of 
6 such gross receipts for all states in which the

7 patent is utilized.

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

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

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

 
 
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1 receipts attributable to that item shall be excluded 
2 from both the numerator
and the denominator of the 
3 sales factor.

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

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

17  (B-5) For taxable years ending on or after December 31, 
18 2008, except as provided in subsections (ii) through (vii), 
19 receipts from the sale of telecommunications service or 
20 mobile telecommunications service are in this State if the 
21 customer's service address is in this State.
22   (i) For purposes of this subparagraph (B-5), the 
23 following terms have the following meanings:
24   "Ancillary services" means services that are 
25 associated with or incidental to the provision of 
26 "telecommunications services", including but not 
 
 
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1 limited to "detailed telecommunications billing", 
2 "directory assistance", "vertical service", and "voice 
3 mail services".
4   "Air-to-Ground Radiotelephone service" means a 
5 radio service, as that term is defined in 47 CFR 22.99, 
6 in which common carriers are authorized to offer and 
7 provide radio telecommunications service for hire to 
8 subscribers in aircraft.
9   "Call-by-call Basis" means any method of charging 
10 for telecommunications services where the price is 
11 measured by individual calls.
12   "Communications Channel" means a physical or 
13 virtual path of communications over which signals are 
14 transmitted between or among customer channel 
15 termination points.
16   "Conference bridging service" means an "ancillary 
17 service" that links two or more participants of an 
18 audio or video conference call and may include the 
19 provision of a telephone number. "Conference bridging 
20 service" does not include the "telecommunications 
21 services" used to reach the conference bridge.
22   "Customer Channel Termination Point" means the 
23 location where the customer either inputs or receives 
24 the communications.
25   "Detailed telecommunications billing service" 
26 means an "ancillary service" of separately stating 
 
 
10100SB0690ham003- 413 -LRB101 04451 SMS 61572 a


1 information pertaining to individual calls on a 
2 customer's billing statement.
3   "Directory assistance" means an "ancillary 
4 service" of providing telephone number information, 
5 and/or address information.
6   "Home service provider" means the facilities based 
7 carrier or reseller with which the customer contracts 
8 for the provision of mobile telecommunications 
9 services.
10   "Mobile telecommunications service" means 
11 commercial mobile radio service, as defined in Section 
12 20.3 of Title 47 of the Code of Federal Regulations as 
13 in effect on June 1, 1999.
14   "Place of primary use" means the street address 
15 representative of where the customer's use of the 
16 telecommunications service primarily occurs, which 
17 must be the residential street address or the primary 
18 business street address of the customer. In the case of 
19 mobile telecommunications services, "place of primary 
20 use" must be within the licensed service area of the 
21 home service provider.
22   "Post-paid telecommunication service" means the 
23 telecommunications service obtained by making a 
24 payment on a call-by-call basis either through the use 
25 of a credit card or payment mechanism such as a bank 
26 card, travel card, credit card, or debit card, or by 
 
 
10100SB0690ham003- 414 -LRB101 04451 SMS 61572 a


1 charge made to a telephone number which is not 
2 associated with the origination or termination of the 
3 telecommunications service. A post-paid calling 
4 service includes telecommunications service, except a 
5 prepaid wireless calling service, that would be a 
6 prepaid calling service except it is not exclusively a 
7 telecommunication service.
8   "Prepaid telecommunication service" means the 
9 right to access exclusively telecommunications 
10 services, which must be paid for in advance and which 
11 enables the origination of calls using an access number 
12 or authorization code, whether manually or 
13 electronically dialed, and that is sold in 
14 predetermined units or dollars of which the number 
15 declines with use in a known amount.
16   "Prepaid Mobile telecommunication service" means a 
17 telecommunications service that provides the right to 
18 utilize mobile wireless service as well as other 
19 non-telecommunication services, including but not 
20 limited to ancillary services, which must be paid for 
21 in advance that is sold in predetermined units or 
22 dollars of which the number declines with use in a 
23 known amount.
24   "Private communication service" means a 
25 telecommunication service that entitles the customer 
26 to exclusive or priority use of a communications 
 
 
10100SB0690ham003- 415 -LRB101 04451 SMS 61572 a


1 channel or group of channels between or among 
2 termination points, regardless of the manner in which 
3 such channel or channels are connected, and includes 
4 switching capacity, extension lines, stations, and any 
5 other associated services that are provided in 
6 connection with the use of such channel or channels.
7   "Service address" means:
8    (a) The location of the telecommunications 
9 equipment to which a customer's call is charged and 
10 from which the call originates or terminates, 
11 regardless of where the call is billed or paid;
12    (b) If the location in line (a) is not known, 
13 service address means the origination point of the 
14 signal of the telecommunications services first 
15 identified by either the seller's 
16 telecommunications system or in information 
17 received by the seller from its service provider 
18 where the system used to transport such signals is 
19 not that of the seller; and
20    (c) If the locations in line (a) and line (b) 
21 are not known, the service address means the 
22 location of the customer's place of primary use.
23   "Telecommunications service" means the electronic 
24 transmission, conveyance, or routing of voice, data, 
25 audio, video, or any other information or signals to a 
26 point, or between or among points. The term 
 
 
10100SB0690ham003- 416 -LRB101 04451 SMS 61572 a


1 "telecommunications service" includes such 
2 transmission, conveyance, or routing in which computer 
3 processing applications are used to act on the form, 
4 code or protocol of the content for purposes of 
5 transmission, conveyance or routing without regard to 
6 whether such service is referred to as voice over 
7 Internet protocol services or is classified by the 
8 Federal Communications Commission as enhanced or value 
9 added. "Telecommunications service" does not include:
10    (a) Data processing and information services 
11 that allow data to be generated, acquired, stored, 
12 processed, or retrieved and delivered by an 
13 electronic transmission to a purchaser when such 
14 purchaser's primary purpose for the underlying 
15 transaction is the processed data or information;
16    (b) Installation or maintenance of wiring or 
17 equipment on a customer's premises;
18    (c) Tangible personal property;
19    (d) Advertising, including but not limited to 
20 directory advertising;
21    (e) Billing and collection services provided 
22 to third parties;
23    (f) Internet access service;
24    (g) Radio and television audio and video 
25 programming services, regardless of the medium, 
26 including the furnishing of transmission, 
 
 
10100SB0690ham003- 417 -LRB101 04451 SMS 61572 a


1 conveyance and routing of such services by the 
2 programming service provider. Radio and television 
3 audio and video programming services shall include 
4 but not be limited to cable service as defined in 
5 47 USC 522(6) and audio and video programming 
6 services delivered by commercial mobile radio 
7 service providers, as defined in 47 CFR 20.3;
8    (h) "Ancillary services"; or
9    (i) Digital products "delivered 
10 electronically", including but not limited to 
11 software, music, video, reading materials or ring 
12 tones.
13   "Vertical service" means an "ancillary service" 
14 that is offered in connection with one or more 
15 "telecommunications services", which offers advanced 
16 calling features that allow customers to identify 
17 callers and to manage multiple calls and call 
18 connections, including "conference bridging services".
19   "Voice mail service" means an "ancillary service" 
20 that enables the customer to store, send or receive 
21 recorded messages. "Voice mail service" does not 
22 include any "vertical services" that the customer may 
23 be required to have in order to utilize the "voice mail 
24 service".
25   (ii) Receipts from the sale of telecommunications 
26 service sold on an individual call-by-call basis are in 
 
 
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1 this State if either of the following applies:
2    (a) The call both originates and terminates in 
3 this State.
4    (b) The call either originates or terminates 
5 in this State and the service address is located in 
6 this State.
7   (iii) Receipts from the sale of postpaid 
8 telecommunications service at retail are in this State 
9 if the origination point of the telecommunication 
10 signal, as first identified by the service provider's 
11 telecommunication system or as identified by 
12 information received by the seller from its service 
13 provider if the system used to transport 
14 telecommunication signals is not the seller's, is 
15 located in this State.
16   (iv) Receipts from the sale of prepaid 
17 telecommunications service or prepaid mobile 
18 telecommunications service at retail are in this State 
19 if the purchaser obtains the prepaid card or similar 
20 means of conveyance at a location in this State. 
21 Receipts from recharging a prepaid telecommunications 
22 service or mobile telecommunications service is in 
23 this State if the purchaser's billing information 
24 indicates a location in this State.
25   (v) Receipts from the sale of private 
26 communication services are in this State as follows:
 
 
10100SB0690ham003- 419 -LRB101 04451 SMS 61572 a


1    (a) 100% of receipts from charges imposed at 
2 each channel termination point in this State.
3    (b) 100% of receipts from charges for the total 
4 channel mileage between each channel termination 
5 point in this State.
6    (c) 50% of the total receipts from charges for 
7 service segments when those segments are between 2 
8 customer channel termination points, 1 of which is 
9 located in this State and the other is located 
10 outside of this State, which segments are 
11 separately charged.
12    (d) The receipts from charges for service 
13 segments with a channel termination point located 
14 in this State and in two or more other states, and 
15 which segments are not separately billed, are in 
16 this State based on a percentage determined by 
17 dividing the number of customer channel 
18 termination points in this State by the total 
19 number of customer channel termination points.
20   (vi) Receipts from charges for ancillary services 
21 for telecommunications service sold to customers at 
22 retail are in this State if the customer's primary 
23 place of use of telecommunications services associated 
24 with those ancillary services is in this State. If the 
25 seller of those ancillary services cannot determine 
26 where the associated telecommunications are located, 
 
 
10100SB0690ham003- 420 -LRB101 04451 SMS 61572 a


1 then the ancillary services shall be based on the 
2 location of the purchaser. 
3   (vii) Receipts to access a carrier's network or 
4 from the sale of telecommunication services or 
5 ancillary services for resale are in this State as 
6 follows:
7    (a) 100% of the receipts from access fees 
8 attributable to intrastate telecommunications 
9 service that both originates and terminates in 
10 this State.
11    (b) 50% of the receipts from access fees 
12 attributable to interstate telecommunications 
13 service if the interstate call either originates 
14 or terminates in this State.
15    (c) 100% of the receipts from interstate end 
16 user access line charges, if the customer's 
17 service address is in this State. As used in this 
18 subdivision, "interstate end user access line 
19 charges" includes, but is not limited to, the 
20 surcharge approved by the federal communications 
21 commission and levied pursuant to 47 CFR 69.
22    (d) Gross receipts from sales of 
23 telecommunication services or from ancillary 
24 services for telecommunications services sold to 
25 other telecommunication service providers for 
26 resale shall be sourced to this State using the 
 
 
10100SB0690ham003- 421 -LRB101 04451 SMS 61572 a


1 apportionment concepts used for non-resale 
2 receipts of telecommunications services if the 
3 information is readily available to make that 
4 determination. If the information is not readily 
5 available, then the taxpayer may use any other 
6 reasonable and consistent method. 
7  (B-7) For taxable years ending on or after December 31, 
8 2008, receipts from the sale of broadcasting services are 
9 in this State if the broadcasting services are received in 
10 this State. For purposes of this paragraph (B-7), the 
11 following terms have the following meanings:
12   "Advertising revenue" means consideration received 
13 by the taxpayer in exchange for broadcasting services 
14 or allowing the broadcasting of commercials or 
15 announcements in connection with the broadcasting of 
16 film or radio programming, from sponsorships of the 
17 programming, or from product placements in the 
18 programming.
19   "Audience factor" means the ratio that the 
20 audience or subscribers located in this State of a 
21 station, a network, or a cable system bears to the 
22 total audience or total subscribers for that station, 
23 network, or cable system. The audience factor for film 
24 or radio programming shall be determined by reference 
25 to the books and records of the taxpayer or by 
26 reference to published rating statistics provided the 
 
 
10100SB0690ham003- 422 -LRB101 04451 SMS 61572 a


1 method used by the taxpayer is consistently used from 
2 year to year for this purpose and fairly represents the 
3 taxpayer's activity in this State.
4   "Broadcast" or "broadcasting" or "broadcasting 
5 services" means the transmission or provision of film 
6 or radio programming, whether through the public 
7 airwaves, by cable, by direct or indirect satellite 
8 transmission, or by any other means of communication, 
9 either through a station, a network, or a cable system.
10   "Film" or "film programming" means the broadcast 
11 on television of any and all performances, events, or 
12 productions, including but not limited to news, 
13 sporting events, plays, stories, or other literary, 
14 commercial, educational, or artistic works, either 
15 live or through the use of video tape, disc, or any 
16 other type of format or medium. Each episode of a 
17 series of films produced for television shall 
18 constitute separate "film" notwithstanding that the 
19 series relates to the same principal subject and is 
20 produced during one or more tax periods.
21   "Radio" or "radio programming" means the broadcast 
22 on radio of any and all performances, events, or 
23 productions, including but not limited to news, 
24 sporting events, plays, stories, or other literary, 
25 commercial, educational, or artistic works, either 
26 live or through the use of an audio tape, disc, or any 
 
 
10100SB0690ham003- 423 -LRB101 04451 SMS 61572 a


1 other format or medium. Each episode in a series of 
2 radio programming produced for radio broadcast shall 
3 constitute a separate "radio programming" 
4 notwithstanding that the series relates to the same 
5 principal subject and is produced during one or more 
6 tax periods.
7    (i) In the case of advertising revenue from 
8 broadcasting, the customer is the advertiser and 
9 the service is received in this State if the 
10 commercial domicile of the advertiser is in this 
11 State.
12    (ii) In the case where film or radio 
13 programming is broadcast by a station, a network, 
14 or a cable system for a fee or other remuneration 
15 received from the recipient of the broadcast, the 
16 portion of the service that is received in this 
17 State is measured by the portion of the recipients 
18 of the broadcast located in this State. 
19 Accordingly, the fee or other remuneration for 
20 such service that is included in the Illinois 
21 numerator of the sales factor is the total of those 
22 fees or other remuneration received from 
23 recipients in Illinois. For purposes of this 
24 paragraph, a taxpayer may determine the location 
25 of the recipients of its broadcast using the 
26 address of the recipient shown in its contracts 
 
 
10100SB0690ham003- 424 -LRB101 04451 SMS 61572 a


1 with the recipient or using the billing address of 
2 the recipient in the taxpayer's records.
3    (iii) In the case where film or radio 
4 programming is broadcast by a station, a network, 
5 or a cable system for a fee or other remuneration 
6 from the person providing the programming, the 
7 portion of the broadcast service that is received 
8 by such station, network, or cable system in this 
9 State is measured by the portion of recipients of 
10 the broadcast located in this State. Accordingly, 
11 the amount of revenue related to such an 
12 arrangement that is included in the Illinois 
13 numerator of the sales factor is the total fee or 
14 other total remuneration from the person providing 
15 the programming related to that broadcast 
16 multiplied by the Illinois audience factor for 
17 that broadcast.
18    (iv) In the case where film or radio 
19 programming is provided by a taxpayer that is a 
20 network or station to a customer for broadcast in 
21 exchange for a fee or other remuneration from that 
22 customer the broadcasting service is received at 
23 the location of the office of the customer from 
24 which the services were ordered in the regular 
25 course of the customer's trade or business. 
26 Accordingly, in such a case the revenue derived by 
 
 
10100SB0690ham003- 425 -LRB101 04451 SMS 61572 a


1 the taxpayer that is included in the taxpayer's 
2 Illinois numerator of the sales factor is the 
3 revenue from such customers who receive the 
4 broadcasting service in Illinois.
5    (v) In the case where film or radio programming 
6 is provided by a taxpayer that is not a network or 
7 station to another person for broadcasting in 
8 exchange for a fee or other remuneration from that 
9 person, the broadcasting service is received at 
10 the location of the office of the customer from 
11 which the services were ordered in the regular 
12 course of the customer's trade or business. 
13 Accordingly, in such a case the revenue derived by 
14 the taxpayer that is included in the taxpayer's 
15 Illinois numerator of the sales factor is the 
16 revenue from such customers who receive the 
17 broadcasting service in Illinois.
18  (B-8) Gross receipts from winnings under the Illinois 
19 Lottery Law from the assignment of a prize under Section 
20 13.1 of the Illinois Lottery Law are received in this 
21 State. This paragraph (B-8) applies only to taxable years 
22 ending on or after December 31, 2013. 
23  (B-9) For taxable years ending on or after December 31, 
24 2019, gross receipts from winnings from pari-mutuel 
25 wagering conducted at a wagering facility licensed under 
26 the Illinois Horse Racing Act of 1975 or from winnings from 
 
 
10100SB0690ham003- 426 -LRB101 04451 SMS 61572 a


1 gambling games conducted on a riverboat or in a casino or 
2 organization gaming facility licensed under the Illinois 
3 Gambling Act are in this State.
4  (C) For taxable years ending before December 31, 2008, 
5 sales, other than sales governed by paragraphs (B), (B-1), 
6 (B-2), and (B-8) are in
this State if:

7   (i) The income-producing activity is performed in 
8 this State; or

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

14  (C-5) For taxable years ending on or after December 31, 
15 2008, sales, other than sales governed by paragraphs (B), 
16 (B-1), (B-2), (B-5), and (B-7), are in this State if any of 
17 the following criteria are met:
18   (i) Sales from the sale or lease of real property 
19 are in this State if the property is located in this 
20 State.
21   (ii) Sales from the lease or rental of tangible 
22 personal property are in this State if the property is 
23 located in this State during the rental period. Sales 
24 from the lease or rental of tangible personal property 
25 that is characteristically moving property, including, 
26 but not limited to, motor vehicles, rolling stock, 
 
 
10100SB0690ham003- 427 -LRB101 04451 SMS 61572 a


1 aircraft, vessels, or mobile equipment are in this 
2 State to the extent that the property is used in this 
3 State.
4   (iii) In the case of interest, net gains (but not 
5 less than zero) and other items of income from 
6 intangible personal property, the sale is in this State 
7 if:
8    (a) in the case of a taxpayer who is a dealer 
9 in the item of intangible personal property within 
10 the meaning of Section 475 of the Internal Revenue 
11 Code, the income or gain is received from a 
12 customer in this State. For purposes of this 
13 subparagraph, a customer is in this State if the 
14 customer is an individual, trust or estate who is a 
15 resident of this State and, for all other 
16 customers, if the customer's commercial domicile 
17 is in this State. Unless the dealer has actual 
18 knowledge of the residence or commercial domicile 
19 of a customer during a taxable year, the customer 
20 shall be deemed to be a customer in this State if 
21 the billing address of the customer, as shown in 
22 the records of the dealer, is in this State; or
23    (b) in all other cases, if the 
24 income-producing activity of the taxpayer is 
25 performed in this State or, if the 
26 income-producing activity of the taxpayer is 
 
 
10100SB0690ham003- 428 -LRB101 04451 SMS 61572 a


1 performed both within and without this State, if a 
2 greater proportion of the income-producing 
3 activity of the taxpayer is performed within this 
4 State than in any other state, based on performance 
5 costs.
6   (iv) Sales of services are in this State if the 
7 services are received in this State. For the purposes 
8 of this section, gross receipts from the performance of 
9 services provided to a corporation, partnership, or 
10 trust may only be attributed to a state where that 
11 corporation, partnership, or trust has a fixed place of 
12 business. If the state where the services are received 
13 is not readily determinable or is a state where the 
14 corporation, partnership, or trust receiving the 
15 service does not have a fixed place of business, the 
16 services shall be deemed to be received at the location 
17 of the office of the customer from which the services 
18 were ordered in the regular course of the customer's 
19 trade or business. If the ordering office cannot be 
20 determined, the services shall be deemed to be received 
21 at the office of the customer to which the services are 
22 billed. If the taxpayer is not taxable in the state in 
23 which the services are received, the sale must be 
24 excluded from both the numerator and the denominator of 
25 the sales factor. The Department shall adopt rules 
26 prescribing where specific types of service are 
 
 
10100SB0690ham003- 429 -LRB101 04451 SMS 61572 a


1 received, including, but not limited to, publishing, 
2 and utility service.

3  (D) For taxable years ending on or after December 31, 
4 1995, the following
items of income shall not be included 
5 in the numerator or denominator of the
sales factor: 
6 dividends; amounts included under Section 78 of the 
7 Internal
Revenue Code; and Subpart F income as defined in 
8 Section 952 of the Internal
Revenue Code.
No inference 
9 shall be drawn from the enactment of this paragraph (D) in

10 construing this Section for taxable years ending before 
11 December 31, 1995.

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

16 in the form and manner prescribed by the Department, shall 
17 be irrevocable, and
shall apply to all tax years; provided 
18 that, if a taxpayer's Illinois income
tax liability for any 
19 tax year, as assessed under Section 903 prior to January
1, 
20 1999, was computed in a manner contrary to the provisions 
21 of paragraphs
(B-1) or (B-2), no refund shall be payable to 
22 the taxpayer for that tax year to
the extent such refund is 
23 the result of applying the provisions of paragraph
(B-1) or 
24 (B-2) retroactively. In the case of a unitary business 
25 group, such
election shall apply to all members of such 
26 group for every tax year such group
is in existence, but 
 
 
10100SB0690ham003- 430 -LRB101 04451 SMS 61572 a


1 shall not apply to any taxpayer for any period during
which 
2 that taxpayer is not a member of such group.

3 (b) Insurance companies.

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

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

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

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

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

3 or risk everywhere, plus (iv) premiums written for 
4 reinsurance accepted
in respect of property or risk 
5 everywhere. For purposes of this
paragraph, premiums 
6 written for reinsurance accepted in respect of
property or 
7 risk in this State, whether or not otherwise determinable,

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

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

24 (c) Financial organizations.

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

 
 
10100SB0690ham003- 432 -LRB101 04451 SMS 61572 a


1 organization shall be apportioned to this State by 
2 multiplying such
income by a fraction, the numerator of 
3 which is its business income from
sources within this 
4 State, and the denominator of which is its business
income 
5 from all sources. For the purposes of this subsection, the

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

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

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

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

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

21   (E) Any other gross income resulting from the 
22 operation as a
financial organization within this 
23 State. In computing the amounts
referred to in 
24 paragraphs (A) through (E) of this subsection, any 
25 amount
received by a member of an affiliated group 
26 (determined under Section
1504(a) of the Internal 
 
 
10100SB0690ham003- 433 -LRB101 04451 SMS 61572 a


1 Revenue Code but without reference to whether
any such 
2 corporation is an "includible corporation" under 
3 Section
1504(b) of the Internal Revenue Code) from 
4 another member of such group
shall be included only to 
5 the extent such amount exceeds expenses of the

6 recipient directly related thereto.

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

9   (A) Adjusted Income. The adjusted income of an 
10 international banking
facility is its income reduced 
11 by the amount of the floor amount.

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

16    (i) The numerator shall be:

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

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

 
 
10100SB0690ham003- 434 -LRB101 04451 SMS 61572 a


1 the Federal Deposit Insurance Corporation and 
2 other regulatory authorities,
for the year 1980, 
3 minus

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

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

18 foreign countries, to foreign domiciled borrowers 
19 (except where secured
primarily by real estate) 
20 and to foreign governments and other foreign

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

23   (C) Change to Consolidated Report of Condition and 
24 in Qualification.
In the event the Consolidated Report 
25 of Condition which is filed with the
Federal Deposit 
26 Insurance Corporation and other regulatory authorities 
 
 
10100SB0690ham003- 435 -LRB101 04451 SMS 61572 a


1 is
altered so that the information required for 
2 determining the floor amount
is not found on Schedule 
3 A, lines 2.c., 5.b. and 7.a., the financial
institution 
4 shall notify the Department and the Department may, by

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

14  (3) For taxable years ending on or after December 31, 
15 2008, the business income of a financial organization shall 
16 be apportioned to this State by multiplying such income by 
17 a fraction, the numerator of which is its gross receipts 
18 from sources in this State or otherwise attributable to 
19 this State's marketplace and the denominator of which is 
20 its gross receipts everywhere during the taxable year. 
21 "Gross receipts" for purposes of this subparagraph (3) 
22 means gross income, including net taxable gain on 
23 disposition of assets, including securities and money 
24 market instruments, when derived from transactions and 
25 activities in the regular course of the financial 
26 organization's trade or business. The following examples 
 
 
10100SB0690ham003- 436 -LRB101 04451 SMS 61572 a


1 are illustrative:

2   (i) Receipts from the lease or rental of real or 
3 tangible personal property are in this State if the 
4 property is located in this State during the rental 
5 period. Receipts from the lease or rental of tangible 
6 personal property that is characteristically moving 
7 property, including, but not limited to, motor 
8 vehicles, rolling stock, aircraft, vessels, or mobile 
9 equipment are from sources in this State to the extent 
10 that the property is used in this State.
11   (ii) Interest income, commissions, fees, gains on 
12 disposition, and other receipts from assets in the 
13 nature of loans that are secured primarily by real 
14 estate or tangible personal property are from sources 
15 in this State if the security is located in this State.
16   (iii) Interest income, commissions, fees, gains on 
17 disposition, and other receipts from consumer loans 
18 that are not secured by real or tangible personal 
19 property are from sources in this State if the debtor 
20 is a resident of this State.
21   (iv) Interest income, commissions, fees, gains on 
22 disposition, and other receipts from commercial loans 
23 and installment obligations that are not secured by 
24 real or tangible personal property are from sources in 
25 this State if the proceeds of the loan are to be 
26 applied in this State. If it cannot be determined where 
 
 
10100SB0690ham003- 437 -LRB101 04451 SMS 61572 a


1 the funds are to be applied, the income and receipts 
2 are from sources in this State if the office of the 
3 borrower from which the loan was negotiated in the 
4 regular course of business is located in this State. If 
5 the location of this office cannot be determined, the 
6 income and receipts shall be excluded from the 
7 numerator and denominator of the sales factor.

8   (v) Interest income, fees, gains on disposition, 
9 service charges, merchant discount income, and other 
10 receipts from credit card receivables are from sources 
11 in this State if the card charges are regularly billed 
12 to a customer in this State.
13   (vi) Receipts from the performance of services, 
14 including, but not limited to, fiduciary, advisory, 
15 and brokerage services, are in this State if the 
16 services are received in this State within the meaning 
17 of subparagraph (a)(3)(C-5)(iv) of this Section.
18   (vii) Receipts from the issuance of travelers 
19 checks and money orders are from sources in this State 
20 if the checks and money orders are issued from a 
21 location within this State.
22   (viii) Receipts from investment assets and 
23 activities and trading assets and activities are 
24 included in the receipts factor as follows:
25    (1) Interest, dividends, net gains (but not 
26 less than zero) and other income from investment 
 
 
10100SB0690ham003- 438 -LRB101 04451 SMS 61572 a


1 assets and activities from trading assets and 
2 activities shall be included in the receipts 
3 factor. Investment assets and activities and 
4 trading assets and activities include but are not 
5 limited to: investment securities; trading account 
6 assets; federal funds; securities purchased and 
7 sold under agreements to resell or repurchase; 
8 options; futures contracts; forward contracts; 
9 notional principal contracts such as swaps; 
10 equities; and foreign currency transactions. With 
11 respect to the investment and trading assets and 
12 activities described in subparagraphs (A) and (B) 
13 of this paragraph, the receipts factor shall 
14 include the amounts described in such 
15 subparagraphs.
16     (A) The receipts factor shall include the 
17 amount by which interest from federal funds 
18 sold and securities purchased under resale 
19 agreements exceeds interest expense on federal 
20 funds purchased and securities sold under 
21 repurchase agreements.
22     (B) The receipts factor shall include the 
23 amount by which interest, dividends, gains and 
24 other income from trading assets and 
25 activities, including but not limited to 
26 assets and activities in the matched book, in 
 
 
10100SB0690ham003- 439 -LRB101 04451 SMS 61572 a


1 the arbitrage book, and foreign currency 
2 transactions, exceed amounts paid in lieu of 
3 interest, amounts paid in lieu of dividends, 
4 and losses from such assets and activities.
5    (2) The numerator of the receipts factor 
6 includes interest, dividends, net gains (but not 
7 less than zero), and other income from investment 
8 assets and activities and from trading assets and 
9 activities described in paragraph (1) of this 
10 subsection that are attributable to this State.
11     (A) The amount of interest, dividends, net 
12 gains (but not less than zero), and other 
13 income from investment assets and activities 
14 in the investment account to be attributed to 
15 this State and included in the numerator is 
16 determined by multiplying all such income from 
17 such assets and activities by a fraction, the 
18 numerator of which is the gross income from 
19 such assets and activities which are properly 
20 assigned to a fixed place of business of the 
21 taxpayer within this State and the denominator 
22 of which is the gross income from all such 
23 assets and activities.
24     (B) The amount of interest from federal 
25 funds sold and purchased and from securities 
26 purchased under resale agreements and 
 
 
10100SB0690ham003- 440 -LRB101 04451 SMS 61572 a


1 securities sold under repurchase agreements 
2 attributable to this State and included in the 
3 numerator is determined by multiplying the 
4 amount described in subparagraph (A) of 
5 paragraph (1) of this subsection from such 
6 funds and such securities by a fraction, the 
7 numerator of which is the gross income from 
8 such funds and such securities which are 
9 properly assigned to a fixed place of business 
10 of the taxpayer within this State and the 
11 denominator of which is the gross income from 
12 all such funds and such securities.
13     (C) The amount of interest, dividends, 
14 gains, and other income from trading assets and 
15 activities, including but not limited to 
16 assets and activities in the matched book, in 
17 the arbitrage book and foreign currency 
18 transactions (but excluding amounts described 
19 in subparagraphs (A) or (B) of this paragraph), 
20 attributable to this State and included in the 
21 numerator is determined by multiplying the 
22 amount described in subparagraph (B) of 
23 paragraph (1) of this subsection by a fraction, 
24 the numerator of which is the gross income from 
25 such trading assets and activities which are 
26 properly assigned to a fixed place of business 
 
 
10100SB0690ham003- 441 -LRB101 04451 SMS 61572 a


1 of the taxpayer within this State and the 
2 denominator of which is the gross income from 
3 all such assets and activities.
4     (D) Properly assigned, for purposes of 
5 this paragraph (2) of this subsection, means 
6 the investment or trading asset or activity is 
7 assigned to the fixed place of business with 
8 which it has a preponderance of substantive 
9 contacts. An investment or trading asset or 
10 activity assigned by the taxpayer to a fixed 
11 place of business without the State shall be 
12 presumed to have been properly assigned if:
13      (i) the taxpayer has assigned, in the 
14 regular course of its business, such asset 
15 or activity on its records to a fixed place 
16 of business consistent with federal or 
17 state regulatory requirements;
18      (ii) such assignment on its records is 
19 based upon substantive contacts of the 
20 asset or activity to such fixed place of 
21 business; and
22      (iii) the taxpayer uses such records 
23 reflecting assignment of such assets or 
24 activities for the filing of all state and 
25 local tax returns for which an assignment 
26 of such assets or activities to a fixed 
 
 
10100SB0690ham003- 442 -LRB101 04451 SMS 61572 a


1 place of business is required.
2     (E) The presumption of proper assignment 
3 of an investment or trading asset or activity 
4 provided in subparagraph (D) of paragraph (2) 
5 of this subsection may be rebutted upon a 
6 showing by the Department, supported by a 
7 preponderance of the evidence, that the 
8 preponderance of substantive contacts 
9 regarding such asset or activity did not occur 
10 at the fixed place of business to which it was 
11 assigned on the taxpayer's records. If the 
12 fixed place of business that has a 
13 preponderance of substantive contacts cannot 
14 be determined for an investment or trading 
15 asset or activity to which the presumption in 
16 subparagraph (D) of paragraph (2) of this 
17 subsection does not apply or with respect to 
18 which that presumption has been rebutted, that 
19 asset or activity is properly assigned to the 
20 state in which the taxpayer's commercial 
21 domicile is located. For purposes of this 
22 subparagraph (E), it shall be presumed, 
23 subject to rebuttal, that taxpayer's 
24 commercial domicile is in the state of the 
25 United States or the District of Columbia to 
26 which the greatest number of employees are 
 
 
10100SB0690ham003- 443 -LRB101 04451 SMS 61572 a


1 regularly connected with the management of the 
2 investment or trading income or out of which 
3 they are working, irrespective of where the 
4 services of such employees are performed, as of 
5 the last day of the taxable year.

6  (4) (Blank).
7  (5) (Blank).
8 (c-1) Federally regulated exchanges. For taxable years 
9ending on or after December 31, 2012, business income of a 
10federally regulated exchange shall, at the option of the 
11federally regulated exchange, be apportioned to this State by 
12multiplying such income by a fraction, the numerator of which 
13is its business income from sources within this State, and the 
14denominator of which is its business income from all sources. 
15For purposes of this subsection, the business income within 
16this State of a federally regulated exchange is the sum of the 
17following: 
18  (1) Receipts attributable to transactions executed on 
19 a physical trading floor if that physical trading floor is 
20 located in this State. 
21  (2) Receipts attributable to all other matching, 
22 execution, or clearing transactions, including without 
23 limitation receipts from the provision of matching, 
24 execution, or clearing services to another entity, 
25 multiplied by (i) for taxable years ending on or after 
26 December 31, 2012 but before December 31, 2013, 63.77%; and 
 
 
10100SB0690ham003- 444 -LRB101 04451 SMS 61572 a


1 (ii) for taxable years ending on or after December 31, 
2 2013, 27.54%. 
3  (3) All other receipts not governed by subparagraphs 
4 (1) or (2) of this subsection (c-1), to the extent the 
5 receipts would be characterized as "sales in this State" 
6 under item (3) of subsection (a) of this Section. 
7 "Federally regulated exchange" means (i) a "registered 
8entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B), 
9or (C), (ii) an "exchange" or "clearing agency" within the 
10meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such 
11entities regulated under any successor regulatory structure to 
12the foregoing, and (iv) all taxpayers who are members of the 
13same unitary business group as a federally regulated exchange, 
14determined without regard to the prohibition in Section 
151501(a)(27) of this Act against including in a unitary business 
16group taxpayers who are ordinarily required to apportion 
17business income under different subsections of this Section; 
18provided that this subparagraph (iv) shall apply only if 50% or 
19more of the business receipts of the unitary business group 
20determined by application of this subparagraph (iv) for the 
21taxable year are attributable to the matching, execution, or 
22clearing of transactions conducted by an entity described in 
23subparagraph (i), (ii), or (iii) of this paragraph. 
24 In no event shall the Illinois apportionment percentage 
25computed in accordance with this subsection (c-1) for any 
26taxpayer for any tax year be less than the Illinois 
 
 
10100SB0690ham003- 445 -LRB101 04451 SMS 61572 a


1apportionment percentage computed under this subsection (c-1) 
2for that taxpayer for the first full tax year ending on or 
3after December 31, 2013 for which this subsection (c-1) applied 
4to the taxpayer. 
5 (d) Transportation services. For taxable years ending 
6before December 31, 2008, business income derived from 
7furnishing
transportation services shall be apportioned to 
8this State in accordance
with paragraphs (1) and (2):

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

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

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

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

 
 
10100SB0690ham003- 446 -LRB101 04451 SMS 61572 a


1   (B) relative gross receipts from passenger and 
2 freight
transportation, in case of transportation 
3 other than by railroad.

4  (2) Such business income derived from transportation 
5 by pipeline
shall be apportioned to this State by 
6 multiplying such income by a
fraction, the numerator of 
7 which is the revenue miles of the person in
this State, and 
8 the denominator of which is the revenue miles of the
person 
9 everywhere. For the purposes of this paragraph, a revenue 
10 mile is
the transportation by pipeline of 1 barrel of oil, 
11 1,000 cubic feet of
gas, or of any specified quantity of 
12 any other substance, the distance
of 1 mile for a 
13 consideration.

14  (3) For taxable years ending on or after December 31, 
15 2008, business income derived from providing 
16 transportation services other than airline services shall 
17 be apportioned to this State by using a fraction, (a) the 
18 numerator of which shall be (i) all receipts from any 
19 movement or shipment of people, goods, mail, oil, gas, or 
20 any other substance (other than by airline) that both 
21 originates and terminates in this State, plus (ii) that 
22 portion of the person's gross receipts from movements or 
23 shipments of people, goods, mail, oil, gas, or any other 
24 substance (other than by airline) that originates in one 
25 state or jurisdiction and terminates in another state or 
26 jurisdiction, that is determined by the ratio that the 
 
 
10100SB0690ham003- 447 -LRB101 04451 SMS 61572 a


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

18  (4) For taxable years ending on or after December 31, 
19 2008, business income derived from furnishing airline

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

 
 
10100SB0690ham003- 448 -LRB101 04451 SMS 61572 a


1 person is engaged in the transportation of both passengers 
2 and freight,
the fraction above referred to shall be 
3 determined by means of an
average of the passenger revenue 
4 mile fraction and the freight revenue
mile fraction, 
5 weighted to reflect the person's relative gross receipts 
6 from passenger and freight
airline transportation.

7 (e) Combined apportionment. Where 2 or more persons are 
8engaged in
a unitary business as described in subsection 
9(a)(27) of
Section 1501,
a part of which is conducted in this 
10State by one or more members of the
group, the business income 
11attributable to this State by any such member
or members shall 
12be apportioned by means of the combined apportionment method.

13 (f) Alternative allocation. If the allocation and 
14apportionment
provisions of subsections (a) through (e) and of 
15subsection (h) do not, for taxable years ending before December 
1631, 2008, fairly represent the
extent of a person's business 
17activity in this State, or, for taxable years ending on or 
18after December 31, 2008, fairly represent the market for the 
19person's goods, services, or other sources of business income, 
20the person may
petition for, or the Director may, without a 
21petition, permit or require, in respect of all or any part
of 
22the person's business activity, if reasonable:

23  (1) Separate accounting;

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

25  (3) The inclusion of one or more additional factors 
26 which will
fairly represent the person's business 
 
 
10100SB0690ham003- 449 -LRB101 04451 SMS 61572 a


1 activities or market in this State; or

2  (4) The employment of any other method to effectuate an 
3 equitable
allocation and apportionment of the person's 
4 business income.

5 (g) Cross reference. For allocation of business income by 
6residents,
see Section 301(a).

7 (h) For tax years ending on or after December 31, 1998, the 
8apportionment
factor of persons who apportion their business 
9income to this State under
subsection (a) shall be equal to:

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

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

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

20If, in any tax year ending on or after December 31, 1998 and 
21before December
31, 2000, the denominator of the payroll, 
22property, or sales factor is zero,
the apportionment
factor 
23computed in paragraph (1) or (2) of this subsection for that 
24year shall
be divided by an amount equal to 100% minus the 
25percentage weight given to each
factor whose denominator is 
26equal to zero.

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





2 (35 ILCS 5/710) (from Ch. 120, par. 7-710)



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

15  (2) In the case of an assignment of a lottery prize 
16 under Section 13.1 of the Illinois Lottery Law, any person 
17 making a payment of the purchase price after December 31, 
18 2013, shall withhold from the amount of each payment at a 
19 rate equal to the percentage tax rate for individuals 
20 provided in subsection (b) of Section 201.
21  (3) Any person making a payment after December 31, 2019 
22 to a resident or nonresident of
winnings from pari-mutuel 
23 wagering conducted at a wagering facility licensed under 
24 the Illinois Horse
Racing Act of 1975 or from gambling 
25 games conducted on a riverboat or in a casino or 
 
 
10100SB0690ham003- 451 -LRB101 04451 SMS 61572 a


1 organization gaming
facility licensed under the Illinois 
2 Gambling Act must withhold Illinois income tax from such 
3 payment at a
rate equal to the percentage tax rate for 
4 individuals provided in subsection (b) of Section 201, 
5 provided that
the person making the payment is required to 
6 withhold under Section 3402(q) of the Internal Revenue 
7 Code. 
8 (b) Credit for taxes withheld. Any amount withheld under 
9Subsection (a)
shall be a credit against the Illinois income 
10tax liability of the person
to whom the payment of winnings was 
11made for the taxable year in which that
person incurred an 
12Illinois income tax liability with respect to those winnings.

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


14 Section 35-40. The Joliet Regional Port District Act is 
15amended by changing Section 5.1 as follows:




16 (70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)



17 Sec. 5.1. Riverboat and casino gambling. Notwithstanding 
18any other provision of
this Act, the District may not regulate 
19the operation, conduct, or
navigation of any riverboat gambling 
20casino licensed under the Illinois Riverboat
Gambling Act, and 
21the District
may not license, tax, or otherwise levy any 
22assessment of any kind on
any riverboat gambling casino 
23licensed under the Illinois Riverboat Gambling Act. The
General 
24Assembly declares that the powers to regulate the operation,

 
 
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1conduct, and navigation of riverboat gambling casinos and to 
2license, tax,
and levy assessments upon riverboat gambling 
3casinos are exclusive powers of
the State of Illinois and the 
4Illinois Gaming Board as provided in the
Illinois Riverboat 
5Gambling Act.

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


7 Section 35-45. The Consumer Installment Loan Act is amended 
8by changing Section 12.5 as follows:




9 (205 ILCS 670/12.5)



10 Sec. 12.5. Limited purpose branch. 

11 (a) Upon the written approval of the Director, a licensee 
12may maintain a
limited purpose branch for the sole purpose of 
13making loans as permitted by
this Act. A limited purpose branch 
14may include an automatic loan machine. No
other activity shall 
15be conducted at the site, including but not limited to,

16accepting payments, servicing the accounts, or collections.

17 (b) The licensee must submit an application for a limited 
18purpose branch to
the Director on forms prescribed by the 
19Director with an application fee of
$300. The approval for the 
20limited purpose branch must be renewed concurrently
with the 
21renewal of the licensee's license along with a renewal fee of 
22$300 for
the limited purpose branch.

23 (c) The books, accounts, records, and files of the limited 
24purpose branch's
transactions shall be maintained at the 
 
 
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1licensee's licensed location. The
licensee shall notify the 
2Director of the licensed location at which the books,
accounts, 
3records, and files shall be maintained.

4 (d) The licensee shall prominently display at the limited 
5purpose branch the
address and telephone number of the 
6licensee's licensed location.

7 (e) No other business shall be conducted at the site of the 
8limited purpose
branch unless authorized by the Director.

9 (f) The Director shall make and enforce reasonable rules 
10for the conduct of
a limited purpose branch.

11 (g) A limited purpose branch may not be located
within 
121,000 feet of a facility operated by an inter-track wagering 
13licensee or
an organization licensee subject to the Illinois 
14Horse Racing Act of 1975,
on a riverboat or in a casino subject 
15to
the Illinois Riverboat Gambling Act, or within 1,000 feet of 
16the location at which the
riverboat docks or within 1,000 feet 
17of a casino.

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


19 Section 35-50. The Illinois Horse Racing Act of 1975 is 
20amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19, 
2120, 21, 24, 25, 26, 26.8, 26.9, 27, 29, 30, 30.5, 31, 31.1, 
2232.1, 36, 40, and 54.75 and by adding Sections 3.32, 3.33, 
233.34, 3.35, 19.5, 34.3, and 56 as follows:




24 (230 ILCS 5/1.2)



 
 
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1 Sec. 1.2. Legislative intent. This Act is intended to 
2benefit the people of the State of Illinois by
encouraging the 
3breeding and production of race horses, assisting economic

4development and promoting Illinois tourism.
The General 
5Assembly finds and declares it to be the public policy
of the 
6State
of Illinois to:

7 (a) support and enhance Illinois' horse racing industry, 
8which is a
significant
component within the agribusiness 
9industry;

10 (b) ensure that Illinois' horse racing industry remains 
11competitive with
neighboring states;

12 (c) stimulate growth within Illinois' horse racing 
13industry, thereby
encouraging
new investment and development 
14to produce additional tax revenues and to
create additional 
15jobs;

16 (d) promote the further growth of tourism;

17 (e) encourage the breeding of thoroughbred and 
18standardbred horses in this
State; and

19 (f) ensure that public confidence and trust in the 
20credibility and integrity
of
racing operations and the 
21regulatory process is maintained.

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





23 (230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)



24 Sec. 3.11. 
"Organization Licensee" means any person 
25receiving
an organization license from the Board to conduct a 
 
 
10100SB0690ham003- 455 -LRB101 04451 SMS 61572 a


1race meeting or meetings. With respect only to organization 
2gaming, "organization licensee" includes the authorization for 
3an organization gaming license under subsection (a) of Section 
456 of this Act. 

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





6 (230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)


7 Sec. 3.12. Pari-mutuel system of
wagering.
"Pari-mutuel 
8system of
wagering" means a form of wagering on the outcome of

9horse races in which
wagers are made in various
denominations 
10on a horse or horses
and
all wagers for each race are pooled 
11and held by a licensee
for distribution in a manner approved by 
12the Board. "Pari-mutuel system of wagering" shall not include 
13wagering on historic races. Wagers may be placed via any method 
14or at any location authorized under this Act.

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


16 (230 ILCS 5/3.32 new)
17 Sec. 3.32. Gross receipts. "Gross receipts" means the total 
18amount of money exchanged for the purchase of chips, tokens, or 
19electronic cards by riverboat or casino patrons or organization 
20gaming patrons.

21 (230 ILCS 5/3.33 new)
22 Sec. 3.33. Adjusted gross receipts.  "Adjusted gross 
23receipts" means the gross receipts less winnings paid to 
 
 
10100SB0690ham003- 456 -LRB101 04451 SMS 61572 a


1wagerers.

2 (230 ILCS 5/3.34 new)
3 Sec. 3.34. Organization gaming facility. "Organization 
4gaming facility" means that portion of an organization 
5licensee's racetrack facilities at which gaming authorized 
6under Section 7.7 of the Illinois Gambling Act is conducted.

7 (230 ILCS 5/3.35 new)
8 Sec. 3.35. Organization gaming license. "Organization 
9gaming license" means a license issued by the Illinois Gaming 
10Board under Section 7.7 of the Illinois Gambling Act 
11authorizing gaming pursuant to that Section at an organization 
12gaming facility.




13 (230 ILCS 5/6) (from Ch. 8, par. 37-6)


14 Sec. 6. Restrictions on Board members.  
15 (a) No person shall be appointed a member of the Board or 
16continue to be a member of the Board if the person or any 
17member of their immediate family is a member of the Board of 
18Directors, employee, or financially interested in any of the 
19following: (i) any licensee or other person who has applied for 
20racing dates to the Board, or the operations thereof including, 
21but not limited to, concessions, data processing, track 
22maintenance, track security, and pari-mutuel operations, 
23located, scheduled or doing business within the State of 
 
 
10100SB0690ham003- 457 -LRB101 04451 SMS 61572 a


1Illinois, (ii) any race horse competing at a meeting under the 
2Board's jurisdiction, or (iii) any licensee under the Illinois 
3Gambling Act. No person shall be appointed a member of the 
4Board or continue
to be
a member of the Board who is (or any 
5member of whose family is) a member of the
Board of Directors 
6of, or who is a person financially interested in, any
licensee 
7or other person who has applied for racing dates to the
Board, 
8or the operations thereof including, but not
limited to, 
9concessions, data
processing, track maintenance, track 
10security and pari-mutuel operations,
located, scheduled
or 
11doing business within the State of Illinois, or in any race 
12horse competing
at a meeting
under the Board's jurisdiction. No 
13Board member shall hold any other public
office for which he

14shall receive compensation other than necessary travel or other 
15incidental
expenses. 

16 (b) No person shall be a member of the Board who is not of 
17good moral
character or who
has been convicted of, or is under 
18indictment for, a felony under the laws
of Illinois or any

19other state, or the United States.

20 (c) No member of the Board or employee shall engage in any 
21political activity.
22 For the purposes of this subsection (c):
23 "Political" means any activity in support of or in 
24connection with any campaign for State or local elective office 
25or any political organization, but does not include activities 
26(i) relating to the support or opposition of any executive, 
 
 
10100SB0690ham003- 458 -LRB101 04451 SMS 61572 a


1legislative, or administrative action (as those terms are 
2defined in Section 2 of the Lobbyist Registration Act), (ii) 
3relating to collective bargaining, or (iii) that are otherwise 
4in furtherance of the person's official State duties or 
5governmental and public service functions.
6 "Political organization" means a party, committee, 
7association, fund, or other organization (whether or not 
8incorporated) that is required to file a statement of 
9organization with the State Board of Elections or county clerk 
10under Section 9-3 of the Election Code, but only with regard to 
11those activities that require filing with the State Board of 
12Elections or county clerk. 
13 (d) Board members and employees may not engage in 
14communications or any activity that may cause or have the 
15appearance of causing a conflict of interest. A conflict of 
16interest exists if a situation influences or creates the 
17appearance that it may influence judgment or performance of 
18regulatory duties and responsibilities. This prohibition shall 
19extend to any act identified by Board action that, in the 
20judgment of the Board, could represent the potential for or the 
21appearance of a conflict of interest.
22 (e) Board members and employees may not accept any gift, 
23gratuity, service, compensation, travel, lodging, or thing of 
24value, with the exception of unsolicited items of an incidental 
25nature, from any person, corporation, limited liability 
26company, or entity doing business with the Board.
 
 
10100SB0690ham003- 459 -LRB101 04451 SMS 61572 a


1 (f) A Board member or employee shall not use or attempt to 
2use his or her official position to secure, or attempt to 
3secure, any privilege, advantage, favor, or influence for 
4himself or herself or others. No Board member or employee, 
5within a period of one year immediately preceding nomination by 
6the Governor or employment, shall have been employed or 
7received compensation or fees for services from a person or 
8entity, or its parent or affiliate, that has engaged in 
9business with the Board, a licensee or a licensee under the 
10Illinois Gambling Act. In addition, all Board members and 
11employees are subject to the restrictions set forth in Section 
125-45 of the State Officials and Employees Ethics Act. 
13(Source: P.A. 89-16, eff. 5-30-95.)





14 (230 ILCS 5/9) (from Ch. 8, par. 37-9)



15 Sec. 9. 
The Board shall have all powers necessary and 
16proper to fully and
effectively execute the provisions of this 
17Act, including, but not
limited to, the following:

18 (a) The Board is vested with jurisdiction and supervision 
19over all race
meetings in this State, over all licensees doing 
20business
in this
State, over all occupation licensees, and over 
21all persons on the
facilities of any licensee. Such 
22jurisdiction shall
include the power to issue licenses to the 
23Illinois Department of
Agriculture authorizing the pari-mutuel 
24system of wagering
on harness and Quarter Horse races held (1) 
25at the Illinois State Fair in
Sangamon County, and (2) at the 
 
 
10100SB0690ham003- 460 -LRB101 04451 SMS 61572 a


1DuQuoin State Fair in Perry County. The
jurisdiction of the 
2Board shall also include the power to issue licenses to
county 
3fairs which are eligible to receive funds pursuant to the

4Agricultural Fair Act, as now or hereafter amended, or their 
5agents,
authorizing the pari-mutuel system of wagering on horse

6races
conducted at the county fairs receiving such licenses. 
7Such licenses shall be
governed by subsection (n) of this 
8Section.

9 Upon application, the Board shall issue a license to the 
10Illinois Department
of Agriculture to conduct harness and 
11Quarter Horse races at the Illinois State
Fair and at the 
12DuQuoin State Fairgrounds
during the scheduled dates of each 
13fair. The Board shall not require and the
Department of 
14Agriculture shall be exempt from the requirements of Sections

1515.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5), 
16(e-10), (f),
(g), and (h) of Section 20, and Sections 21, 24 
17and 25. The Board and the Department
of
Agriculture may extend 
18any or all of these exemptions to any contractor or
agent 
19engaged by the Department of Agriculture to conduct its race 
20meetings
when the Board determines that this would best serve 
21the public interest and
the interest of horse racing.

22 Notwithstanding any provision of law to the contrary, it 
23shall be lawful for
any licensee to operate pari-mutuel 
24wagering
or
contract with the Department of Agriculture to 
25operate pari-mutuel wagering at
the DuQuoin State Fairgrounds 
26or for the Department to enter into contracts
with a licensee, 
 
 
10100SB0690ham003- 461 -LRB101 04451 SMS 61572 a


1employ its owners,
employees
or
agents and employ such other 
2occupation licensees as the Department deems
necessary in 
3connection with race meetings and wagerings.

4 (b) The Board is vested with the full power to promulgate 
5reasonable
rules and regulations for the purpose of 
6administering the provisions of
this Act and to prescribe 
7reasonable rules, regulations and conditions
under which all 
8horse race meetings or wagering in the State shall be

9conducted. Such reasonable rules and regulations are to provide 
10for the
prevention of practices detrimental to the public 
11interest and to promote the best
interests of horse racing and 
12to impose penalties for violations thereof.

13 (c) The Board, and any person or persons to whom it 
14delegates
this power, is vested with the power to enter the 
15facilities and other places of business of any licensee to 
16determine whether there has been compliance with
the provisions 
17of this Act and its rules and regulations.

18 (d) The Board, and any person or persons to whom it 
19delegates this
power, is vested with the authority to 
20investigate alleged violations of
the provisions of this Act, 
21its reasonable rules and regulations, orders
and final 
22decisions; the Board shall take appropriate disciplinary 
23action
against any licensee or occupation licensee for 
24violation
thereof or
institute appropriate legal action for the 
25enforcement thereof.

26 (e) The Board, and any person or persons to whom it 
 
 
10100SB0690ham003- 462 -LRB101 04451 SMS 61572 a


1delegates this power,
may eject or exclude from any race 
2meeting or
the facilities of any licensee, or any part
thereof, 
3any occupation licensee or any
other individual whose conduct 
4or reputation is such that his presence on
those facilities 
5may, in the opinion of the Board, call into question
the 
6honesty and integrity of horse racing or wagering or interfere 
7with the
orderly
conduct of horse racing or wagering; provided, 
8however, that no person
shall be
excluded or ejected from the 
9facilities of any licensee solely on the grounds of
race, 
10color, creed, national origin, ancestry, or sex. The power to 
11eject
or exclude an occupation licensee or other individual may

12be exercised for just cause by the licensee or the Board, 
13subject to subsequent hearing by the
Board as to the propriety 
14of said exclusion.

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

16establish, maintain and operate (or provide by contract to

17maintain and operate) testing laboratories and related 
18facilities,
for the purpose of conducting saliva, blood, urine 
19and other tests on the
horses run or to be run in any horse race 
20meeting, including races run at county fairs, and to purchase 
21all
equipment and supplies deemed necessary or desirable in 
22connection with
any such testing laboratories and related 
23facilities and all such tests.

24 (g) The Board may require that the records, including 
25financial or other
statements of any licensee or any person 
26affiliated with the licensee who is
involved directly or 
 
 
10100SB0690ham003- 463 -LRB101 04451 SMS 61572 a


1indirectly in the activities of any licensee as regulated
under 
2this Act to the extent that those financial or other statements 
3relate to
such activities be kept in
such manner as prescribed 
4by the Board, and that Board employees shall have
access to 
5those records during reasonable business
hours. Within 120 days 
6of the end of its fiscal year, each licensee shall
transmit to

7the Board
an audit of the financial transactions and condition 
8of the licensee's total
operations. All audits shall be 
9conducted by certified public accountants.
Each certified 
10public accountant must be registered in the State of Illinois

11under the Illinois Public Accounting Act. The compensation for 
12each certified
public accountant shall be paid directly by the 
13licensee to the certified
public accountant. A licensee shall 
14also submit any other financial or related
information the 
15Board deems necessary to effectively administer this Act and

16all rules, regulations, and final decisions promulgated under 
17this Act.

18 (h) The Board shall name and appoint in the manner provided 
19by the rules
and regulations of the Board: an Executive 
20Director; a State director
of mutuels; State veterinarians and 
21representatives to take saliva, blood,
urine and other tests on 
22horses; licensing personnel; revenue
inspectors; and State 
23seasonal employees (excluding admission ticket
sellers and 
24mutuel clerks). All of those named and appointed as provided
in 
25this subsection shall serve during the pleasure of the Board; 
26their
compensation shall be determined by the Board and be paid 
 
 
10100SB0690ham003- 464 -LRB101 04451 SMS 61572 a


1in the same
manner as other employees of the Board under this 
2Act.

3 (i) The Board shall require that there shall be 3 stewards 
4at each horse
race meeting, at least 2 of whom shall be named 
5and appointed by the Board.
Stewards appointed or approved by 
6the Board, while performing duties
required by this Act or by 
7the Board, shall be entitled to the same rights
and immunities 
8as granted to Board members and Board employees in Section
10 
9of this Act.

10 (j) The Board may discharge any Board employee
who fails or 
11refuses for any reason to comply with the rules and
regulations 
12of the Board, or who, in the opinion of the Board,
is guilty of 
13fraud, dishonesty or who is proven to be incompetent.
The Board 
14shall have no right or power to determine who shall be 
15officers,
directors or employees of any licensee, or their 
16salaries
except the Board may, by rule, require that all or any 
17officials or
employees in charge of or whose duties relate to 
18the actual running of
races be approved by the Board.

19 (k) The Board is vested with the power to appoint
delegates 
20to execute any of the powers granted to it under this Section

21for the purpose of administering this Act and any rules or 
22regulations
promulgated in accordance with this Act.

23 (l) The Board is vested with the power to impose civil 
24penalties of up to
$5,000 against an individual and up to 
25$10,000 against a
licensee for each
violation of any provision 
26of this Act, any rules adopted by the Board, any
order of the 
 
 
10100SB0690ham003- 465 -LRB101 04451 SMS 61572 a


1Board or any other action which, in the Board's discretion, is

2a detriment or impediment to horse racing or wagering. 
3Beginning on the date when any organization licensee begins 
4conducting gaming pursuant to an organization gaming license 
5issued under the Illinois Gambling Act, the power granted to 
6the Board pursuant to this subsection (l) shall authorize the 
7Board to impose penalties of up to $10,000 against an 
8individual and up to $25,000 against a licensee. All such civil 
9penalties shall be deposited into the Horse Racing Fund. 

10 (m) The Board is vested with the power to prescribe a form 
11to be used
by licensees as an application for employment for 
12employees of
each licensee.

13 (n) The Board shall have the power to issue a license
to 
14any county fair, or its
agent, authorizing the conduct of the 
15pari-mutuel system of
wagering. The Board is vested with the 
16full power to promulgate
reasonable rules, regulations and 
17conditions under which all horse race
meetings licensed 
18pursuant to this subsection shall be held and conducted,

19including rules, regulations and conditions for the conduct of 
20the
pari-mutuel system of wagering. The rules, regulations and

21conditions shall provide for the prevention of practices 
22detrimental to the
public interest and for the best interests 
23of horse racing, and shall
prescribe penalties for violations 
24thereof. Any authority granted the
Board under this Act shall 
25extend to its jurisdiction and supervision over
county fairs, 
26or their agents, licensed pursuant to this subsection.
However, 
 
 
10100SB0690ham003- 466 -LRB101 04451 SMS 61572 a


1the Board may waive any provision of this Act or its rules or

2regulations which would otherwise apply to such county fairs or 
3their agents.

4 (o) Whenever the Board is authorized or
required by law to 
5consider some aspect of criminal history record
information for 
6the purpose of carrying out its statutory powers and

7responsibilities, then, upon request and payment of fees in 
8conformance
with the requirements of Section 2605-400 of
the 
9Department of State Police Law (20 ILCS 2605/2605-400), the 
10Department of State Police is
authorized to furnish, pursuant 
11to positive identification, such
information contained in 
12State files as is necessary to fulfill the request.

13 (p) To insure the convenience, comfort, and wagering 
14accessibility of
race track patrons, to provide for the 
15maximization of State revenue, and
to generate increases in 
16purse allotments to the horsemen, the Board shall
require any 
17licensee to staff the pari-mutuel department with
adequate 
18personnel. 

19(Source: P.A. 97-1060, eff. 8-24-12.)





20 (230 ILCS 5/15) (from Ch. 8, par. 37-15)



21 Sec. 15. 
(a) The Board shall, in its discretion, issue 
22occupation
licenses
to horse owners, trainers, harness 
23drivers, jockeys, agents, apprentices,
grooms, stable foremen, 
24exercise persons, veterinarians, valets, blacksmiths,

25concessionaires and others designated by the Board whose work, 
 
 
10100SB0690ham003- 467 -LRB101 04451 SMS 61572 a


1in whole or in
part, is conducted upon facilities within the 
2State. Such occupation licenses
will
be obtained prior to the

3persons engaging in their vocation upon such facilities. The

4Board shall not license pari-mutuel clerks, parking 
5attendants, security
guards and employees of concessionaires. 
6No occupation license shall be
required of
any person who works 
7at facilities within this
State as a pari-mutuel
clerk, parking 
8attendant, security guard or as an employee of a 
9concessionaire.
Concessionaires of the Illinois State Fair and 
10DuQuoin State Fair and
employees of the Illinois Department of 
11Agriculture shall not be required to
obtain an occupation 
12license by the Board.

13 (b) Each application for an occupation license shall be on 
14forms
prescribed by the Board. Such license, when issued, shall 
15be for the
period ending December 31 of each year, except that 
16the Board in its
discretion may grant 3-year licenses. The 
17application shall
be accompanied
by a fee of not more than $25 
18per year
or, in the case of 3-year occupation
license

19applications, a fee of not more than $60. Each applicant shall 
20set forth in
the application his full name and address, and if 
21he had been issued prior
occupation licenses or has been 
22licensed in any other state under any other
name, such name, 
23his age, whether or not a permit or license issued to him
in 
24any other state has been suspended or revoked and if so whether 
25such
suspension or revocation is in effect at the time of the 
26application, and
such other information as the Board may 
 
 
10100SB0690ham003- 468 -LRB101 04451 SMS 61572 a


1require. Fees for registration of
stable names shall not exceed 
2$50.00. Beginning on the date when any organization licensee 
3begins conducting gaming pursuant to an organization gaming 
4license issued under the Illinois Gambling Act, the fee for 
5registration of stable names shall not exceed $150, and the 
6application fee for an occupation license shall not exceed $75, 
7per year or, in the case of a 3-year occupation license 
8application, the fee shall not exceed $180. 

9 (c) The Board may in its discretion refuse an occupation 
10license
to any person:


11  (1) who has been convicted of a crime;


12  (2) who is unqualified to perform the duties required 
13 of such applicant;


14  (3) who fails to disclose or states falsely any 
15 information called for
in the application;


16  (4) who has been found guilty of a violation of this 
17 Act or of the rules
and regulations of the Board; or


18  (5) whose license or permit has been suspended, revoked 
19 or denied for just
cause in any other state.

20 (d) The Board may suspend or revoke any occupation license:


21  (1) for violation of any of the provisions of this Act; 
22 or


23  (2) for violation of any of the rules or regulations of 
24 the Board; or


25  (3) for any cause which, if known to the Board, would 
26 have justified the
Board in refusing to issue such 
 
 
10100SB0690ham003- 469 -LRB101 04451 SMS 61572 a


1 occupation license; or


2  (4) for any other just cause.

3 (e)  
Each applicant shall submit his or her fingerprints 
4to the
Department
of State Police in the form and manner 
5prescribed by the Department of State
Police. These 
6fingerprints shall be checked against the fingerprint records

7now and hereafter filed in the Department of State
Police and 
8Federal Bureau of Investigation criminal history records

9databases. The Department of State Police shall charge
a fee 
10for conducting the criminal history records check, which shall 
11be
deposited in the State Police Services Fund and shall not 
12exceed the actual
cost of the records check. The Department of 
13State Police shall furnish,
pursuant to positive 
14identification, records of conviction to the Board.
Each 
15applicant for licensure shall submit with his occupation

16license
application, on forms provided by the Board, 2 sets of 
17his fingerprints.
All such applicants shall appear in person at 
18the location designated by
the Board for the purpose of 
19submitting such sets of fingerprints; however,
with the prior 
20approval of a State steward, an applicant may have such sets
of 
21fingerprints taken by an official law enforcement agency and 
22submitted to
the Board.

23 (f) The Board may, in its discretion, issue an occupation 
24license without
submission of fingerprints if an applicant has 
25been duly licensed in another
recognized racing jurisdiction 
26after submitting fingerprints that were
subjected to a Federal 
 
 
10100SB0690ham003- 470 -LRB101 04451 SMS 61572 a


1Bureau of Investigation criminal history background
check
in

2that jurisdiction.

3 (g) Beginning on the date when any organization licensee 
4begins conducting gaming pursuant to an organization gaming 
5license issued under the Illinois Gambling Act, the Board may 
6charge each applicant a reasonable nonrefundable fee to defray 
7the costs associated with the background investigation 
8conducted by the Board. This fee shall be exclusive of any 
9other fee or fees charged in connection with an application for 
10and, if applicable, the issuance of, an organization gaming 
11license. If the costs of the investigation exceed the amount of 
12the fee charged, the Board shall immediately notify the 
13applicant of the additional amount owed, payment of which must 
14be submitted to the Board within 7 days after such 
15notification. All information, records, interviews, reports, 
16statements, memoranda, or other data supplied to or used by the 
17Board in the course of its review or investigation of an 
18applicant for a license or renewal under this Act shall be 
19privileged, strictly confidential, and shall be used only for 
20the purpose of evaluating an applicant for a license or a 
21renewal. Such information, records, interviews, reports, 
22statements, memoranda, or other data shall not be admissible as 
23evidence, nor discoverable, in any action of any kind in any 
24court or before any tribunal, board, agency, or person, except 
25for any action deemed necessary by the Board. 
26(Source: P.A. 93-418, eff. 1-1-04.)





 
 
10100SB0690ham003- 471 -LRB101 04451 SMS 61572 a


1 (230 ILCS 5/18) (from Ch. 8, par. 37-18)



2 Sec. 18. 
(a) Together with its application, each applicant 
3for racing dates
shall deliver to the Board a certified check 
4or bank draft payable to the order
of the Board for $1,000. In 
5the event the applicant applies for racing dates
in 2 or 3 
6successive calendar years as provided in subsection (b) of 
7Section
21, the fee shall be $2,000. Filing fees shall not be 
8refunded in the event
the application is denied. Beginning on 
9the date when any organization licensee begins conducting 
10gaming pursuant to an organization gaming license issued under 
11the Illinois Gambling Act, the application fee for racing dates 
12imposed by this subsection (a) shall be $10,000 and the 
13application fee for racing dates in 2 or 3 successive calendar 
14years as provided in subsection (b) of Section 21 shall be 
15$20,000. All filing fees shall be deposited into the Horse 
16Racing Fund. 

17 (b) In addition to the filing fee imposed by subsection (a) 
18of $1000 and the fees provided in
subsection (j) of Section 20, 
19each organization licensee shall pay a license
fee of $100 for 
20each racing program on which its daily pari-mutuel handle is

21$400,000 or more but less than $700,000, and a license fee of 
22$200 for each
racing program on which its daily pari-mutuel 
23handle is $700,000 or more.
The
additional fees required to be 
24paid under this Section by this amendatory Act
of 1982 shall be 
25remitted by the organization licensee to the Illinois Racing

 
 
10100SB0690ham003- 472 -LRB101 04451 SMS 61572 a


1Board with each day's graduated privilege tax or pari-mutuel 
2tax and
breakage as provided under
Section 27. Beginning on the 
3date when any organization licensee begins conducting gaming 
4pursuant to an organization gaming license issued under the 
5Illinois Gambling Act, the license fee imposed by this 
6subsection (b) shall be $200 for each racing program on which 
7the organization licensee's daily pari-mutuel handle is 
8$100,000 or more, but less than $400,000, and the license fee 
9imposed by this subsection (b) shall be $400 for each racing 
10program on which the organization licensee's daily pari-mutuel 
11handle is $400,000 or more. 

12 (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois 
13Municipal Code,"
approved May 29, 1961, as now or hereafter 
14amended, shall not apply to any
license under this Act.

15(Source: P.A. 97-1060, eff. 8-24-12.)





16 (230 ILCS 5/19) (from Ch. 8, par. 37-19)



17 Sec. 19. 
(a) No organization license may be granted to 
18conduct a
horse race meeting:

19  (1) except as provided in subsection (c) of Section 21 
20 of this Act,
to any person at any place within 35 miles of 
21 any other place
licensed by the Board to hold a race 
22 meeting on the same date during the
same hours,
the mileage

23 measurement used in this subsection (a) shall be certified 
24 to the Board by
the Bureau of
Systems and Services in the 
25 Illinois Department of Transportation as the
most commonly 
 
 
10100SB0690ham003- 473 -LRB101 04451 SMS 61572 a


1 used public way of vehicular travel;

2  (2) to any person in default in the payment of any 
3 obligation or
debt due the State under this Act, provided 
4 no applicant shall be deemed
in default in the payment of 
5 any obligation or debt due to the State
under this Act as 
6 long as there is pending a hearing of any kind
relevant to 
7 such matter;

8  (3) to any person who has been convicted of the 
9 violation of any law
of the United States or any State law 
10 which provided as all or part of
its penalty imprisonment 
11 in any penal institution; to any person against
whom there 
12 is pending a Federal or State criminal charge; to any 
13 person
who is or has been connected with or engaged in the 
14 operation of any
illegal business; to any person who does 
15 not enjoy a general reputation
in his community of being an 
16 honest, upright, law-abiding person;
provided that none of 
17 the matters set forth in this subparagraph (3)
shall make 
18 any person ineligible to be granted an organization license

19 if the Board determines, based on circumstances of any such 
20 case, that
the granting of a license would not be 
21 detrimental to the interests of
horse racing and of the 
22 public;

23  (4) to any person who does not at the time of 
24 application for the
organization license own or have a 
25 contract or lease for the possession
of a finished race 
26 track suitable for the type of racing intended to be
held 
 
 
10100SB0690ham003- 474 -LRB101 04451 SMS 61572 a


1 by the applicant and for the accommodation of the public.

2 (b) (Blank) Horse racing on Sunday shall be prohibited 
3unless authorized by
ordinance or referendum of the 
4municipality in which a race track or any
of its appurtenances 
5or facilities are located, or utilized.

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

7license because of any of the matters set forth in subsection 
8(a) (2) or
subsection (a) (3) of this Section, any other or 
9separate person that
either (i) controls, directly or 
10indirectly, such ineligible person
or (ii) is controlled, 
11directly or indirectly, by such ineligible
person or by a 
12person which controls, directly or indirectly, such
ineligible 
13person shall also be ineligible.

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


15 (230 ILCS 5/19.5 new)
16 Sec. 19.5. Standardbred racetrack in Cook County. 
17Notwithstanding anything in this Act to the contrary, in 
18addition to organization licenses issued by the Board on the 
19effective date of this amendatory Act of the 101st General 
20Assembly, the Board shall issue an organization license limited 
21to standardbred racing to a racetrack located in one of the 
22following townships of Cook County: Bloom, Bremen, Calumet, 
23Orland, Rich, Thornton, or Worth. This additional organization 
24license shall not be issued within a 35-mile radius of another 
25organization license issued by the Board on the effective date 
 
 
10100SB0690ham003- 475 -LRB101 04451 SMS 61572 a


1of this amendatory Act of the 101st General Assembly, unless 
2the person having operating control of such racetrack has given 
3written consent to the organization licensee applicant, which 
4consent must be filed with the Board at or prior to the time 
5application is made. The organization license shall be granted 
6upon application, and the licensee shall have all of the 
7current and future rights of existing Illinois racetracks, 
8including, but not limited to, the ability to obtain an 
9inter-track wagering license, the ability to obtain 
10inter-track wagering location licenses, the ability to obtain 
11an organization gaming license pursuant to the Illinois 
12Gambling Act with 1,200 gaming positions, and the ability to 
13offer Internet wagering on horse racing.




14 (230 ILCS 5/20) (from Ch. 8, par. 37-20)



15 Sec. 20. 
(a) Any person desiring to conduct a horse race 
16meeting may
apply to the Board for an organization license. The 
17application shall be
made on a form prescribed and furnished by 
18the Board. The application shall
specify:


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


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


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

25 meeting; and


 
 
10100SB0690ham003- 476 -LRB101 04451 SMS 61572 a


1  (4) any other information the Board may reasonably 
2 require.

3 (b) A separate application for an organization license 
4shall be filed
for each horse race meeting
which such person 
5proposes to hold. Any such application, if made by an

6individual, or by any individual as trustee, shall be
signed 
7and verified under oath by such individual. If the application 
8is
made by individuals, then it shall be signed and verified 
9under oath by at least 2 of the individuals; if the application 
10is made by or a partnership, it shall be signed and
verified 
11under oath by at least 2 of such individuals or members of such

12partnership as the case may be. If made by an association, a 
13corporation, a
corporate trustee, a limited liability company, 
14or any other entity, it shall be signed by an authorized 
15officer, a partner, a member, or a manager, as the case may be, 
16of the entity the president
and attested by the secretary or 
17assistant secretary under the seal
of such association, trust 
18or corporation if it has a seal, and shall
also be verified 
19under oath by one of the signing officers.

20 (c) The application shall specify: 
21  (1) the name of the
persons, association, trust, or 
22 corporation making such application; and 
23  (2) the principal
post office address of the applicant; 
24  (3) if the applicant is a trustee, the
names and 
25 addresses of the beneficiaries; if the applicant is a 
26 corporation, the names and
post office addresses of all 
 
 
10100SB0690ham003- 477 -LRB101 04451 SMS 61572 a


1 officers, stockholders and directors; or if
such

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

14 (d) The applicant shall execute and file with the Board a 
15good faith
affirmative action plan to recruit, train, and 
16upgrade minorities in all
classifications within the 
17association.

18 (e) With such
application there shall be delivered to the 
19Board a
certified check or bank draft payable to the order of 
20the Board for an
amount equal to $1,000. All applications for

21the issuance of an organization license shall be filed with the 
22Board before
August 1 of the year prior to the year for which 
23application is made and shall be acted
upon by the Board at a 
24meeting to be held on such date as shall be fixed
by the Board 
25during the last 15 days of September of such prior year.
At 
26such meeting, the Board shall announce
the award of the racing 
 
 
10100SB0690ham003- 478 -LRB101 04451 SMS 61572 a


1meets, live racing schedule, and designation of host
track to 
2the applicants and its approval or disapproval of each

3application. No announcement shall
be considered binding until 
4a formal order is executed by the Board, which
shall be 
5executed no later than October 15 of that prior year.
Absent 
6the agreement of
the affected organization licensees, the Board 
7shall not grant overlapping
race meetings to 2 or more tracks 
8that are within 100 miles of each
other to conduct the 
9thoroughbred racing.

10 (e-1) The Board shall award standardbred racing dates to 
11organization licensees with an organization gaming license 
12pursuant to the following schedule:
13  (1) For the first calendar year of operation of 
14 gambling games by an organization gaming licensee under 
15 this amendatory Act of the 101st General Assembly, when a 
16 single entity requests standardbred racing dates, the 
17 Board shall award no fewer than 100 days of racing. The 
18 100-day requirement may be reduced to no fewer than 80 days 
19 if no dates are requested for the first 3 months of a 
20 calendar year.
If more than one entity requests 
21 standardbred racing dates, the Board shall award no fewer 
22 than 140 days of racing between the applicants.
23  (2) For the second calendar year of operation of 
24 gambling games by an organization gaming licensee under 
25 this amendatory Act of the 101st General Assembly, when a 
26 single entity requests standardbred racing dates, the 
 
 
10100SB0690ham003- 479 -LRB101 04451 SMS 61572 a


1 Board shall award no fewer than 100 days of racing. The 
2 100-day requirement may be reduced to no fewer than 80 days 
3 if no dates are requested for the first 3 months of a 
4 calendar year.
If more than one entity requests 
5 standardbred racing dates, the Board shall award no fewer 
6 than 160 days of racing between the applicants.
7  (3) For the third calendar year of operation of 
8 gambling games by an organization gaming licensee under 
9 this amendatory Act of the 101st General Assembly, and each 
10 calendar year thereafter, when a single entity requests 
11 standardbred racing dates, the Board shall award no fewer 
12 than 120 days of racing. The 120-day requirement may be 
13 reduced to no fewer than 100 days if no dates are requested 
14 for the first 3 months of a calendar year. If more than one 
15 entity requests standardbred racing dates, the Board shall 
16 award no fewer than 200 days of racing between the 
17 applicants.
18 An organization licensee shall apply for racing dates 
19pursuant to this subsection (e-1). In awarding racing dates 
20under this subsection (e-1), the Board shall have the 
21discretion to allocate those standardbred racing dates among 
22these organization licensees.
23 (e-2) The Board shall award thoroughbred racing days to 
24Cook County organization licensees pursuant to the following 
25schedule:
26  (1) During the first year in which only one 
 
 
10100SB0690ham003- 480 -LRB101 04451 SMS 61572 a


1 organization licensee is awarded an organization gaming 
2 license, the Board shall award no fewer than 110 days of 
3 racing.
4  During the second year in which only one organization 
5 licensee is awarded an organization gaming license, the 
6 Board shall award no fewer than 115 racing days.
7  During the third year and every year thereafter, in 
8 which only one organization licensee is awarded an 
9 organization gaming license, the Board shall award no fewer 
10 than 120 racing days.
11  (2) During the first year in which 2 organization 
12 licensees are awarded an organization gaming license, the 
13 Board shall award no fewer than 139 total racing days.
14  During the second year in which 2 organization 
15 licensees are awarded an organization gaming license, the 
16 Board shall award no fewer than 160 total racing days.
17  During the third year and every year thereafter in 
18 which 2 organization licensees are awarded an organization 
19 gaming license, the Board shall award no fewer than 174 
20 total racing days.
21 A Cook County organization licensee shall apply for racing 
22dates pursuant to this subsection (e-2). In awarding racing 
23dates under this subsection (e-2), the Board shall have the 
24discretion to allocate those thoroughbred racing dates among 
25these Cook County organization licensees.
26 (e-3) In awarding racing dates for calendar year 2020 and 
 
 
10100SB0690ham003- 481 -LRB101 04451 SMS 61572 a


1thereafter in connection with a racetrack in Madison County, 
2the Board shall award racing dates and such organization 
3licensee shall run at least 700 thoroughbred races at the 
4racetrack in Madison County each year. 
5 Notwithstanding Section 7.7 of the Illinois Gambling Act or 
6any provision of this Act other than subsection (e-4.5), for 
7each calendar year for which an organization gaming licensee 
8located in Madison County requests racing dates resulting in 
9less than 700 live thoroughbred races at its racetrack 
10facility, the organization gaming licensee may not conduct 
11gaming pursuant to an organization gaming license issued under 
12the Illinois Gambling Act for the calendar year of such 
13requested live races. 
14 (e-4) Notwithstanding the provisions of Section 7.7 of the 
15Illinois Gambling Act or any provision of this Act other than 
16subsections (e-3) and (e-4.5), for each calendar year for which 
17an organization gaming licensee requests thoroughbred racing 
18dates which results in a number of live races under its 
19organization license that is less than the total number of live 
20races which it conducted in 2017 at its racetrack facility, the 
21organization gaming licensee may not conduct gaming pursuant to 
22its organization gaming license for the calendar year of such 
23requested live races. 
24 (e-4.1) Notwithstanding the provisions of Section 7.7 of 
25the Illinois Gambling Act or any provision of this Act other 
26than subsections (e-3) and (e-4.5), for each calendar year for 
 
 
10100SB0690ham003- 482 -LRB101 04451 SMS 61572 a


1which an organization licensee requests racing dates for 
2standardbred racing which results in a number of live races 
3that is less than the total number of live races required in 
4subsection (e-1), the organization gaming licensee may not 
5conduct gaming pursuant to its organization gaming license for 
6the calendar year of such requested live races. 
7 (e-4.5) The Board shall award the minimum live racing 
8guarantees contained in subsections (e-1), (e-2), and (e-3) to 
9ensure that each organization licensee shall individually run a 
10sufficient number of races per year to qualify for an 
11organization gaming license under this Act. The General 
12Assembly finds that the minimum live racing guarantees 
13contained in subsections (e-1), (e-2), and (e-3) are in the 
14best interest of the sport of horse racing, and that such 
15guarantees may only be reduced in the calendar year in which 
16they will be conducted in the limited circumstances described 
17in this subsection. The Board may decrease the number of racing 
18days without affecting an organization licensee's ability to 
19conduct gaming pursuant to an organization gaming license 
20issued under the Illinois Gambling Act only if the Board 
21determines, after notice and hearing, that: 
22  (i) a decrease is necessary to maintain a sufficient 
23 number of betting interests per race to ensure the 
24 integrity of racing; 
25  (ii) there are unsafe track conditions due to weather 
26 or acts of God;
 
 
10100SB0690ham003- 483 -LRB101 04451 SMS 61572 a


1  (iii) there is an agreement between an organization 
2 licensee and the breed association that is applicable to 
3 the involved live racing guarantee, such association 
4 representing either the largest number of thoroughbred 
5 owners and trainers or the largest number of standardbred 
6 owners, trainers and drivers who race horses at the 
7 involved organization licensee's racing meeting, so long 
8 as the agreement does not compromise the integrity of the 
9 sport of horse racing; or
10  (iv) the horse population or purse levels are 
11 insufficient to provide the number of racing opportunities 
12 otherwise required in this Act. 
13 In decreasing the number of racing dates in accordance with 
14this subsection, the Board shall hold a hearing and shall 
15provide the public and all interested parties notice and an 
16opportunity to be heard. The Board shall accept testimony from 
17all interested parties, including any association representing 
18owners, trainers, jockeys, or drivers who will be affected by 
19the decrease in racing dates. The Board shall provide a written 
20explanation of the reasons for the decrease and the Board's 
21findings. The written explanation shall include a listing and 
22content of all communication between any party and any Illinois 
23Racing Board member or staff that does not take place at a 
24public meeting of the Board. 
25 (e-5) In reviewing an application for the purpose of 
26granting an
organization license consistent with
the best 
 
 
10100SB0690ham003- 484 -LRB101 04451 SMS 61572 a


1interests of the public and the
sport of horse racing, the 
2Board shall consider:


3  (1) the character, reputation, experience, and 
4 financial integrity of the
applicant and of any other 
5 separate person that either:


6   (i) controls the applicant, directly or 
7 indirectly, or


8   (ii) is controlled, directly or indirectly, by 
9 that applicant or by a
person who controls, directly or 
10 indirectly, that applicant;


11  (2) the applicant's facilities or proposed facilities 
12 for conducting
horse
racing;


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

15 conducting a race meeting;


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


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


21  (6) the applicant's proposed and prior year's 
22 promotional and marketing
activities and expenditures of 
23 the applicant associated with those activities;


24  (7) an agreement, if any, among organization licensees 
25 as provided in
subsection (b) of Section 21 of this Act; 
26 and


 
 
10100SB0690ham003- 485 -LRB101 04451 SMS 61572 a


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

4 In granting organization licenses and allocating dates for 
5horse race
meetings, the Board shall have discretion to 
6determine an overall schedule,
including required simulcasts 
7of Illinois races by host tracks that will, in
its judgment, be 
8conducive to the best interests of
the public and the sport of 
9horse racing.

10 (e-10) The Illinois Administrative Procedure Act shall 
11apply to
administrative procedures of the Board under this Act 
12for the granting of an
organization license, except that (1) 
13notwithstanding the provisions of
subsection (b) of Section 
1410-40 of the Illinois Administrative Procedure Act
regarding 
15cross-examination, the
Board may prescribe rules limiting the 
16right of an applicant or participant in
any proceeding to award 
17an organization license to conduct cross-examination of

18witnesses at that proceeding where that cross-examination 
19would unduly obstruct
the timely award of an organization 
20license under subsection (e) of Section 20
of this Act; (2) the 
21provisions of Section 10-45 of the Illinois Administrative

22Procedure Act regarding proposals for decision are excluded 
23under this Act; (3)
notwithstanding the provisions of 
24subsection (a) of Section 10-60 of the
Illinois Administrative 
25Procedure Act regarding ex parte communications, the
Board may 
26prescribe rules allowing ex parte communications with 
 
 
10100SB0690ham003- 486 -LRB101 04451 SMS 61572 a


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

10administrative law judges; and (5) the provisions of subsection 
11(d)
of Section 10-65 of the Illinois Administrative Procedure 
12Act that prevent
summary suspension of a license pending 
13revocation or other action shall not
apply.

14 (f) The Board may allot racing dates to an organization 
15licensee for more
than one calendar year but for no more than 3 
16successive calendar years in
advance, provided that the Board 
17shall review such allotment for more than
one calendar year 
18prior to each year for which such allotment has been
made. The 
19granting of an organization license to a person constitutes a

20privilege to conduct a horse race meeting under the provisions 
21of this Act, and
no person granted an organization license 
22shall be deemed to have a vested
interest, property right, or 
23future expectation to receive an organization
license in any 
24subsequent year as a result of the granting of an organization

25license. Organization licenses shall be subject to revocation 
26if the
organization licensee has violated any provision of this 
 
 
10100SB0690ham003- 487 -LRB101 04451 SMS 61572 a


1Act
or the rules and regulations promulgated under this Act or 
2has been convicted
of a crime or has failed to disclose or has 
3stated falsely any information
called for in the application 
4for an organization license. Any
organization license 
5revocation
proceeding shall be in accordance with Section 16 
6regarding suspension and
revocation of occupation licenses.

7 (f-5) If, (i) an applicant does not file an acceptance of 
8the racing dates
awarded by the Board as required under part 
9(1) of subsection (h) of this
Section 20, or (ii) an 
10organization licensee has its license suspended or
revoked 
11under this Act, the Board, upon conducting an emergency hearing 
12as
provided for in this Act, may reaward on an emergency basis 
13pursuant to
rules established by the Board, racing dates not 
14accepted or the racing
dates
associated with any suspension or 
15revocation period to one or more organization
licensees, new 
16applicants, or any combination thereof, upon terms and

17conditions that the Board determines are in the best interest 
18of racing,
provided, the organization licensees or new 
19applicants receiving the awarded
racing dates file an 
20acceptance of those reawarded racing dates as
required under 
21paragraph (1) of subsection (h) of this Section 20 and comply

22with the other provisions of this Act. The Illinois 
23Administrative Procedure
Act shall not apply to the 
24administrative procedures of the Board in conducting
the 
25emergency hearing and the reallocation of racing dates on an 
26emergency
basis.

 
 
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1 (g) (Blank).

2 (h) The Board shall send the applicant a copy of its 
3formally
executed order by certified mail addressed to the 
4applicant at the
address stated in his application, which 
5notice shall be mailed within 5 days
of the date the formal 
6order is executed.

7 Each applicant notified shall, within 10 days after receipt 
8of the
final executed order of the Board awarding
racing dates:


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

10 the form
prescribed by the Board;


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


13  (3) file with the Board the bonds required in Sections 
14 21
and 25 at least
20 days prior to the first day of each 
15 race meeting.

16Upon compliance with the provisions of paragraphs (1), (2), and 
17(3) of
this subsection (h), the applicant shall be issued an

18organization license.

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

20to pay the organization license fees herein provided, no 
21organization
license shall be issued to such applicant.

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





23 (230 ILCS 5/21) (from Ch. 8, par. 37-21)



24 Sec. 21. 
(a) Applications for organization licenses must be 
25filed with
the Board at a time and place prescribed by the 
 
 
10100SB0690ham003- 489 -LRB101 04451 SMS 61572 a


1rules and regulations of
the Board. The Board shall examine the 
2applications within 21 days
after
the date allowed for filing 
3with respect to their conformity with this Act
and such rules 
4and regulations as may be prescribed by the Board. If any

5application does not comply with this Act or the rules and 
6regulations
prescribed by the Board, such application may be 
7rejected and an
organization license refused to the applicant, 
8or the Board may, within 21
days of the receipt of such 
9application, advise the applicant of the
deficiencies of the 
10application under the Act or the rules and regulations of
the 
11Board,
and require the submittal of an amended application 
12within a reasonable time
determined by the Board; and upon 
13submittal of the amended application by the
applicant, the 
14Board may consider the
application consistent with the process 
15described in subsection (e-5) of
Section 20 of this Act. If it

16is found to be in compliance with this Act and the rules and 
17regulations of
the Board, the Board may then issue an 
18organization license to such applicant.

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

20dates to qualified applicants different from those requested by 
21the
applicants in their
applications. However, if all eligible 
22applicants for organization
licenses whose tracks are located 
23within 100 miles of each other execute
and submit to the Board 
24a written agreement among such applicants as to
the award of 
25racing dates, including where applicable racing
programs, for

26up to 3 consecutive years, then subject to annual review of 
 
 
10100SB0690ham003- 490 -LRB101 04451 SMS 61572 a


1each
applicant's compliance with Board rules and regulations, 
2provisions of this
Act and conditions contained in annual dates 
3orders issued by the Board,
the Board may grant such dates and 
4programs
to such applicants
as so agreed by them if the Board 
5determines that the grant of these racing
dates is in the best

6interests of racing. The Board shall treat any such agreement 
7as the
agreement signatories' joint and several application for 
8racing dates
during the term of the agreement.

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

10race meetings within 35 miles of each other, as certified to 
11the Board
under Section 19 (a) (1) of this Act, on conflicting 
12dates, the Board may
determine and grant the number of racing 
13days to be awarded to
the several
applicants in accordance with 
14the provisions of subsection (e-5) of Section
20 of this
Act.

15 (d) (Blank).

16 (e) Prior to the issuance of an organization license, the 
17applicant
shall file with the Board a bond payable to the State 
18of Illinois in the
sum of $200,000, executed by the applicant 
19and a surety company or
companies authorized to do business in 
20this State, and conditioned upon the
payment by the 
21organization licensee of all taxes due under Section 27,
other 
22monies due and payable under this Act, all purses due and 
23payable,
and that the organization licensee will upon 
24presentation of the winning
ticket or
tickets distribute all 
25sums due to the patrons of pari-mutuel pools. Beginning on the 
26date when any organization licensee begins conducting gaming 
 
 
10100SB0690ham003- 491 -LRB101 04451 SMS 61572 a


1pursuant to an organization gaming license issued under the 
2Illinois Gambling Act, the amount of the bond required under 
3this subsection (e) shall be $500,000. 

4 (f) Each organization license shall specify the person to 
5whom it is
issued, the dates upon which horse racing is 
6permitted, and the location,
place, track, or enclosure where 
7the horse race meeting is to be held.

8 (g) Any person who owns one or more race tracks
within the 
9State
may seek, in its own name, a separate organization 
10license
for each race track.

11 (h) All racing conducted under such organization license is 
12subject to
this Act and to the rules and regulations from time 
13to time prescribed by
the Board, and every such organization 
14license issued by the Board shall
contain a recital to that 
15effect.

16 (i) Each such organization licensee may provide
that at 
17least one race per day may be devoted to
the racing of quarter 
18horses, appaloosas, arabians, or paints.

19 (j) In acting on applications for organization licenses, 
20the Board shall
give weight to an organization license which 
21has
implemented a good faith affirmative
action effort to 
22recruit, train and upgrade minorities in all classifications

23within the organization license.

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





25 (230 ILCS 5/24) (from Ch. 8, par. 37-24)



 
 
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1 Sec. 24. 
(a) No license shall be issued to or held by an 
2organization
licensee unless all of its officers, directors, 
3and holders of ownership
interests of at least 5% are first 
4approved by the Board. The Board shall not
give approval of an 
5organization license application to any person who has been

6convicted of or is under an indictment for a crime of moral 
7turpitude or has
violated any provision of the racing law of 
8this State or any rules of the
Board. 

9 (b) An organization licensee must notify the Board within 
1010 days of any
change in the holders of a direct or indirect 
11interest in the ownership of the
organization licensee. The 
12Board may, after hearing, revoke the organization
license of 
13any
person who registers on its books or knowingly permits a 
14direct or indirect
interest in the ownership of that person 
15without notifying the Board of the
name of the holder in 
16interest within this period.

17 (c) In addition to the provisions of subsection
(a) of this 
18Section, no person shall be granted an
organization
license if

19any public official of the State or member of his
or her family 
20holds any ownership or financial interest, directly or

21indirectly, in the person.

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

23license
to hold a race meeting shall give to any public 
24official or member of his
family, directly or indirectly, for 
25or without consideration, any interest in the person. The Board 
26shall, after hearing, revoke
the organization license granted 
 
 
10100SB0690ham003- 493 -LRB101 04451 SMS 61572 a


1to a person which has
violated this subsection.

2 (e) (Blank).

3 (f) No organization licensee or concessionaire or officer, 
4director or
holder or controller of
5% or more legal or 
5beneficial interest in any organization licensee or
concession

6shall make any sort of
gift or contribution that is prohibited 
7under Article 10 of the State Officials and Employees Ethics 
8Act of any kind or pay or give any money or other thing
of value 
9to any
person who is a public official, or a candidate or 
10nominee for public office if that payment or gift is prohibited 
11under Article 10 of the State Officials and Employees Ethics 
12Act.

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





14 (230 ILCS 5/25) (from Ch. 8, par. 37-25)



15 Sec. 25. Admission charge; bond; fine. 
16 (a) There shall be paid to the Board at such time or times 
17as
it shall prescribe, the sum of fifteen cents (15¢) for each 
18person entering
the grounds or enclosure of each organization 
19licensee and
inter-track wagering licensee upon a ticket of 
20admission except as provided
in subsection (g) of Section 27 of 
21this Act. If
tickets are issued for more than one day then the 
22sum of fifteen cents
(15¢) shall be paid for each person using 
23such ticket on each day that the
same shall be used. Provided, 
24however, that no charge shall be made on
tickets of admission 
25issued to and in the name of directors, officers,
agents or 
 
 
10100SB0690ham003- 494 -LRB101 04451 SMS 61572 a


1employees of the organization licensee, or inter-track 
2wagering
licensee, or to owners, trainers, jockeys,
drivers and 
3their employees or to any person or persons entering the

4grounds or enclosure for the transaction of business in 
5connection with such
race meeting. The organization licensee or 
6inter-track wagering licensee
may, if it desires, collect such 
7amount from
each ticket holder in addition to the amount or 
8amounts charged for such
ticket of admission. Beginning on the 
9date when any organization licensee begins conducting gaming 
10pursuant to an organization gaming license issued under the 
11Illinois Gambling Act, the admission charge imposed by this 
12subsection (a) shall be 40 cents for each person entering the 
13grounds or enclosure of each organization licensee and 
14inter-track wagering licensee upon a ticket of admission, and 
15if such tickets are issued for more than one day, 40 cents 
16shall be paid for each person using such ticket on each day 
17that the same shall be used. 

18 (b) Accurate records and books shall at all times be kept 
19and maintained by
the organization licensees and inter-track 
20wagering licensees
showing the admission tickets issued and 
21used on each racing
day and the attendance thereat of each 
22horse racing meeting. The Board or
its duly authorized 
23representative or representatives shall at all
reasonable 
24times have access to the admission records of any organization

25licensee and inter-track wagering licensee for
the purpose of 
26examining and checking the same and ascertaining whether or
not 
 
 
10100SB0690ham003- 495 -LRB101 04451 SMS 61572 a


1the proper amount has been or is being paid the State of 
2Illinois as
herein provided. The Board shall also require, 
3before issuing any license,
that the licensee shall execute and 
4deliver to it a bond, payable to the
State of Illinois, in such 
5sum as it shall determine, not, however, in
excess of fifty 
6thousand dollars ($50,000), with a surety or sureties to be

7approved by it, conditioned for the payment of all sums due and 
8payable or
collected by it under this Section upon admission 
9fees received for any
particular racing meetings. The Board may 
10also from time to time require sworn
statements of the number 
11or numbers of such admissions and may prescribe blanks
upon 
12which such reports shall be made. Any organization licensee or

13inter-track wagering licensee failing or
refusing to pay the 
14amount found to be due as herein provided, shall be
deemed 
15guilty of a business offense and upon conviction shall be 
16punished by a
fine of not more than five thousand dollars 
17($5,000) in addition to the amount
due from such organization 
18licensee or inter-track wagering licensee as
herein provided. 
19All fines paid into court by an organization
licensee or 
20inter-track wagering licensee found guilty of violating this

21Section shall be transmitted and paid
over by the clerk of the 
22court to the Board. Beginning on the date when any organization 
23licensee begins conducting gaming pursuant to an organization 
24gaming license issued under the Illinois Gambling Act, any fine 
25imposed pursuant to this subsection (b) shall not exceed 
26$10,000. 

 
 
10100SB0690ham003- 496 -LRB101 04451 SMS 61572 a


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





2 (230 ILCS 5/26) (from Ch. 8, par. 37-26)


3 Sec. 26. Wagering. 

4 (a) Any licensee may conduct and supervise the pari-mutuel 
5system of
wagering, as defined in Section 3.12 of this Act, on 
6horse races conducted by
an Illinois organization
licensee or 
7conducted at a racetrack located in another state or country 
8and
televised in Illinois in accordance with subsection (g) of 
9Section 26 of this
Act. Subject to the prior consent of the 
10Board, licensees may supplement any
pari-mutuel pool in order 
11to guarantee a minimum distribution. Such
pari-mutuel method of 
12wagering shall not,
under any circumstances if conducted under 
13the provisions of this Act,
be held or construed to be 
14unlawful, other statutes of this State to the
contrary 
15notwithstanding.
Subject to rules for advance wagering 
16promulgated by the Board, any
licensee
may accept wagers in 
17advance of the day of
the race wagered upon occurs.

18 (b) Except for those gaming activities for which a license 
19is obtained and authorized under the Illinois Lottery Law, the 
20Charitable Games Act, the Raffles and Poker Runs Act, or the 
21Illinois Gambling Act, no No other method of betting, pool 
22making, wagering or
gambling shall be used or permitted by the 
23licensee. Each licensee
may retain, subject to the payment of 
24all applicable
taxes and purses, an amount not to exceed 17% of 
25all money wagered
under subsection (a) of this Section, except 
 
 
10100SB0690ham003- 497 -LRB101 04451 SMS 61572 a


1as may otherwise be permitted
under this Act.

2 (b-5) An individual may place a wager under the pari-mutuel 
3system from
any licensed location authorized under this Act 
4provided that wager is
electronically recorded in the manner 
5described in Section 3.12 of this Act.
Any wager made 
6electronically by an individual while physically on the 
7premises
of a licensee shall be deemed to have been made at the 
8premises of that
licensee.

9 (c) (Blank). Until January 1, 2000, the sum held by any 
10licensee for payment of
outstanding pari-mutuel tickets, if 
11unclaimed prior to December 31 of the
next year, shall be 
12retained by the licensee for payment of
such tickets until that 
13date. Within 10 days thereafter, the balance of
such sum 
14remaining unclaimed, less any uncashed supplements contributed 
15by such
licensee for the purpose of guaranteeing minimum 
16distributions
of any pari-mutuel pool, shall be
paid to the

17Illinois
Veterans'
Rehabilitation Fund of the State treasury, 
18except as provided in subsection
(g) of Section 27 of this Act.

19 (c-5) The Beginning January 1, 2000, the sum held by any 
20licensee for payment
of
outstanding pari-mutuel tickets, if 
21unclaimed prior to December 31 of the
next year, shall be 
22retained by the licensee for payment of
such tickets until that 
23date. Within 10 days thereafter, the balance of
such sum 
24remaining unclaimed, less any uncashed supplements contributed 
25by such
licensee for the purpose of guaranteeing minimum 
26distributions
of any pari-mutuel pool, shall be evenly 
 
 
10100SB0690ham003- 498 -LRB101 04451 SMS 61572 a


1distributed to the purse account of
the organization licensee 
2and the organization licensee, except that the balance of the 
3sum of all outstanding pari-mutuel tickets generated from 
4simulcast wagering and inter-track wagering by an organization 
5licensee located in a county with a population in excess of 
6230,000 and borders the Mississippi River or any licensee that 
7derives its license from that organization licensee shall be 
8evenly distributed to the purse account of the organization 
9licensee and the organization licensee.

10 (d) A pari-mutuel ticket shall be honored until December 31 
11of the
next calendar year, and the licensee shall pay the same 
12and may
charge the amount thereof against unpaid money 
13similarly accumulated on account
of pari-mutuel tickets not 
14presented for payment.

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

16than an employee of such licensee or an owner, trainer,
jockey, 
17driver, or employee thereof, to be admitted during a racing

18program unless accompanied by a parent or guardian, or any 
19minor to be a
patron of the pari-mutuel system of wagering 
20conducted or
supervised by it. The admission of any 
21unaccompanied minor, other than
an employee of the licensee or 
22an owner, trainer, jockey,
driver, or employee thereof at a 
23race track is a Class C
misdemeanor.

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

25organization licensee may contract
with an entity in another 
26state or country to permit any legal
wagering entity in another 
 
 
10100SB0690ham003- 499 -LRB101 04451 SMS 61572 a


1state or country to accept wagers solely within
such other 
2state or country on races conducted by the organization 
3licensee
in this State.
Beginning January 1, 2000, these wagers

4shall not be subject to State
taxation. Until January 1, 2000,

5when the out-of-State entity conducts a pari-mutuel pool

6separate from the organization licensee, a privilege tax equal 
7to 7 1/2% of
all monies received by the organization licensee 
8from entities in other states
or countries pursuant to such 
9contracts is imposed on the organization
licensee, and such 
10privilege tax shall be remitted to the
Department of Revenue

11within 48 hours of receipt of the moneys from the simulcast. 
12When the
out-of-State entity conducts a
combined pari-mutuel 
13pool with the organization licensee, the tax shall be 10%
of 
14all monies received by the organization licensee with 25% of 
15the
receipts from this 10% tax to be distributed to the county

16in which the race was conducted.

17 An organization licensee may permit one or more of its 
18races to be
utilized for
pari-mutuel wagering at one or more 
19locations in other states and may
transmit audio and visual 
20signals of races the organization licensee
conducts to one or

21more locations outside the State or country and may also permit 
22pari-mutuel
pools in other states or countries to be combined 
23with its gross or net
wagering pools or with wagering pools 
24established by other states.

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

26horse
races conducted in other states or countries and shall 
 
 
10100SB0690ham003- 500 -LRB101 04451 SMS 61572 a


1control the
number of signals and types of breeds of racing in 
2its simulcast program,
subject to the disapproval of the Board. 
3The Board may prohibit a simulcast
program only if it finds 
4that the simulcast program is clearly
adverse to the integrity 
5of racing. The host track
simulcast program shall
include the 
6signal of live racing of all organization licensees.
All 
7non-host licensees and advance deposit wagering licensees 
8shall carry the signal of and accept wagers on live racing of 
9all organization licensees. Advance deposit wagering licensees 
10shall not be permitted to accept out-of-state wagers on any 
11Illinois signal provided pursuant to this Section without the 
12approval and consent of the organization licensee providing the 
13signal. For one year after August 15, 2014 (the effective date 
14of Public Act 98-968), non-host licensees may carry the host 
15track simulcast program and
shall accept wagers on all races 
16included as part of the simulcast
program of horse races 
17conducted at race tracks located within North America upon 
18which wagering is permitted. For a period of one year after 
19August 15, 2014 (the effective date of Public Act 98-968), on 
20horse races conducted at race tracks located outside of North 
21America, non-host licensees may accept wagers on all races 
22included as part of the simulcast program upon which wagering 
23is permitted. Beginning August 15, 2015 (one year after the 
24effective date of Public Act 98-968), non-host licensees may 
25carry the host track simulcast program and shall accept wagers 
26on all races included as part of the simulcast program upon 
 
 
10100SB0690ham003- 501 -LRB101 04451 SMS 61572 a


1which wagering is permitted.
All organization licensees shall 
2provide their live signal to all advance deposit wagering 
3licensees for a simulcast commission fee not to exceed 6% of 
4the advance deposit wagering licensee's Illinois handle on the 
5organization licensee's signal without prior approval by the 
6Board. The Board may adopt rules under which it may permit 
7simulcast commission fees in excess of 6%. The Board shall 
8adopt rules limiting the interstate commission fees charged to 
9an advance deposit wagering licensee. The Board shall adopt 
10rules regarding advance deposit wagering on interstate 
11simulcast races that shall reflect, among other things, the 
12General Assembly's desire to maximize revenues to the State, 
13horsemen purses, and organization organizational licensees. 
14However, organization licensees providing live signals 
15pursuant to the requirements of this subsection (g) may 
16petition the Board to withhold their live signals from an 
17advance deposit wagering licensee if the organization licensee 
18discovers and the Board finds reputable or credible information 
19that the advance deposit wagering licensee is under 
20investigation by another state or federal governmental agency, 
21the advance deposit wagering licensee's license has been 
22suspended in another state, or the advance deposit wagering 
23licensee's license is in revocation proceedings in another 
24state. The organization licensee's provision of their live 
25signal to an advance deposit wagering licensee under this 
26subsection (g) pertains to wagers placed from within Illinois. 
 
 
10100SB0690ham003- 502 -LRB101 04451 SMS 61572 a


1Advance deposit wagering licensees may place advance deposit 
2wagering terminals at wagering facilities as a convenience to 
3customers. The advance deposit wagering licensee shall not 
4charge or collect any fee from purses for the placement of the 
5advance deposit wagering terminals. The costs and expenses
of 
6the host track and non-host licensees associated
with 
7interstate simulcast
wagering, other than the interstate

8commission fee, shall be borne by the host track and all

9non-host licensees
incurring these costs.
The interstate 
10commission fee shall not exceed 5% of Illinois handle on the

11interstate simulcast race or races without prior approval of 
12the Board. The
Board shall promulgate rules under which it may 
13permit
interstate commission
fees in excess of 5%. The 
14interstate commission
fee and other fees charged by the sending 
15racetrack, including, but not
limited to, satellite decoder 
16fees, shall be uniformly applied
to the host track and all 
17non-host licensees.

18 Notwithstanding any other provision of this Act, through 
19December 31, 2020, an organization licensee, with the consent 
20of the horsemen association representing the largest number of 
21owners, trainers, jockeys, or standardbred drivers who race 
22horses at that organization licensee's racing meeting, may 
23maintain a system whereby advance deposit wagering may take 
24place or an organization licensee, with the consent of the 
25horsemen association representing the largest number of 
26owners, trainers, jockeys, or standardbred drivers who race 
 
 
10100SB0690ham003- 503 -LRB101 04451 SMS 61572 a


1horses at that organization licensee's racing meeting, may 
2contract with another person to carry out a system of advance 
3deposit wagering. Such consent may not be unreasonably 
4withheld. Only with respect to an appeal to the Board that 
5consent for an organization licensee that maintains its own 
6advance deposit wagering system is being unreasonably 
7withheld, the Board shall issue a final order within 30 days 
8after initiation of the appeal, and the organization licensee's 
9advance deposit wagering system may remain operational during 
10that 30-day period. The actions of any organization licensee 
11who conducts advance deposit wagering or any person who has a 
12contract with an organization licensee to conduct advance 
13deposit wagering who conducts advance deposit wagering on or 
14after January 1, 2013 and prior to June 7, 2013 (the effective 
15date of Public Act 98-18) taken in reliance on the changes made 
16to this subsection (g) by Public Act 98-18 are hereby 
17validated, provided payment of all applicable pari-mutuel 
18taxes are remitted to the Board. All advance deposit wagers 
19placed from within Illinois must be placed through a 
20Board-approved advance deposit wagering licensee; no other 
21entity may accept an advance deposit wager from a person within 
22Illinois. All advance deposit wagering is subject to any rules 
23adopted by the Board. The Board may adopt rules necessary to 
24regulate advance deposit wagering through the use of emergency 
25rulemaking in accordance with Section 5-45 of the Illinois 
26Administrative Procedure Act. The General Assembly finds that 
 
 
10100SB0690ham003- 504 -LRB101 04451 SMS 61572 a


1the adoption of rules to regulate advance deposit wagering is 
2deemed an emergency and necessary for the public interest, 
3safety, and welfare. An advance deposit wagering licensee may 
4retain all moneys as agreed to by contract with an organization 
5licensee. Any moneys retained by the organization licensee from 
6advance deposit wagering, not including moneys retained by the 
7advance deposit wagering licensee, shall be paid 50% to the 
8organization licensee's purse account and 50% to the 
9organization licensee. With the exception of any organization 
10licensee that is owned by a publicly traded company that is 
11incorporated in a state other than Illinois and advance deposit 
12wagering licensees under contract with such organization 
13licensees, organization licensees that maintain advance 
14deposit wagering systems and advance deposit wagering 
15licensees that contract with organization licensees shall 
16provide sufficiently detailed monthly accountings to the 
17horsemen association representing the largest number of 
18owners, trainers, jockeys, or standardbred drivers who race 
19horses at that organization licensee's racing meeting so that 
20the horsemen association, as an interested party, can confirm 
21the accuracy of the amounts paid to the purse account at the 
22horsemen association's affiliated organization licensee from 
23advance deposit wagering. If more than one breed races at the 
24same race track facility, then the 50% of the moneys to be paid 
25to an organization licensee's purse account shall be allocated 
26among all organization licensees' purse accounts operating at 
 
 
10100SB0690ham003- 505 -LRB101 04451 SMS 61572 a


1that race track facility proportionately based on the actual 
2number of host days that the Board grants to that breed at that 
3race track facility in the current calendar year. To the extent 
4any fees from advance deposit wagering conducted in Illinois 
5for wagers in Illinois or other states have been placed in 
6escrow or otherwise withheld from wagers pending a 
7determination of the legality of advance deposit wagering, no 
8action shall be brought to declare such wagers or the 
9disbursement of any fees previously escrowed illegal.
10  (1) Between the hours of 6:30 a.m. and 6:30 p.m. an

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

17 thoroughbred races may be used
for supplemental interstate 
18 simulcast purposes. The Board shall withhold
approval for a 
19 supplemental interstate simulcast only if it finds that the

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

24 supplemental interstate simulcast shall be paid by the 
25 non-host licensee and
its affiliated non-host licensees 
26 receiving the simulcast.

 
 
10100SB0690ham003- 506 -LRB101 04451 SMS 61572 a


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

2 inter-track wagering
licensee other than the host track may 
3 receive supplemental interstate
simulcasts only with the 
4 consent of the host track, except when the Board
finds that 
5 the simulcast is
clearly adverse to the integrity of 
6 racing. Consent granted under this
paragraph (2) to any 
7 inter-track wagering licensee shall be deemed consent to

8 all non-host licensees. The interstate commission fee for 
9 the supplemental
interstate simulcast shall be paid
by all 
10 participating non-host licensees.

11  (3) Each licensee conducting interstate simulcast 
12 wagering may retain,
subject to the payment of all 
13 applicable taxes and the purses, an amount not to
exceed 
14 17% of all money wagered. If any licensee conducts the 
15 pari-mutuel
system wagering on races conducted at 
16 racetracks in another state or country,
each such race or 
17 race program shall be considered a separate racing day for

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

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

 
 
10100SB0690ham003- 507 -LRB101 04451 SMS 61572 a


1  (4) A licensee who receives an interstate simulcast may 
2 combine its gross
or net pools with pools at the sending 
3 racetracks pursuant to rules established
by the Board. All 
4 licensees combining their gross pools
at a
sending 
5 racetrack shall adopt the takeout take-out percentages of 
6 the sending
racetrack.
A licensee may also establish a 
7 separate pool and takeout structure for
wagering purposes 
8 on races conducted at race tracks outside of the
State of 
9 Illinois. The licensee may permit pari-mutuel wagers 
10 placed in other
states or
countries to be combined with its 
11 gross or net wagering pools or other
wagering pools.

12  (5) After the payment of the interstate commission fee 
13 (except for the
interstate commission
fee on a supplemental 
14 interstate simulcast, which shall be paid by the host
track 
15 and by each non-host licensee through the host track 
16 host-track) and all applicable
State and local
taxes, 
17 except as provided in subsection (g) of Section 27 of this 
18 Act, the
remainder of moneys retained from simulcast 
19 wagering pursuant to this
subsection (g), and Section 26.2 
20 shall be divided as follows:

21   (A) For interstate simulcast wagers made at a host 
22 track, 50% to the
host
track and 50% to purses at the 
23 host track.

24   (B) For wagers placed on interstate simulcast 
25 races, supplemental
simulcasts as defined in 
26 subparagraphs (1) and (2), and separately pooled races

 
 
10100SB0690ham003- 508 -LRB101 04451 SMS 61572 a


1 conducted outside of the State of Illinois made at a 
2 non-host
licensee, 25% to the host
track, 25% to the 
3 non-host licensee, and 50% to the purses at the host 
4 track.

5  (6) Notwithstanding any provision in this Act to the 
6 contrary, non-host
licensees
who derive their licenses 
7 from a track located in a county with a population in

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

12 simulcast is clearly adverse to the integrity of racing.

13  (7) Effective January 1, 2017, notwithstanding any 
14 provision of this Act to the contrary, after
payment of all 
15 applicable State and local taxes and interstate commission 
16 fees,
non-host licensees who derive their licenses from a 
17 track located in a county
with a population in excess of 
18 230,000 and that borders the Mississippi River
shall retain 
19 50% of the retention from interstate simulcast wagers and 
20 shall
pay 50% to purses at the track from which the 
21 non-host licensee derives its
license.

22  (7.1) Notwithstanding any other provision of this Act 
23 to the contrary,
if
no
standardbred racing is conducted at 
24 a racetrack located in Madison County
during any
calendar 
25 year beginning on or after January 1, 2002, all
moneys 
26 derived by
that racetrack from simulcast wagering and 
 
 
10100SB0690ham003- 509 -LRB101 04451 SMS 61572 a


1 inter-track wagering that (1) are to
be used
for purses and 
2 (2) are generated between the hours of 6:30 p.m. and 6:30 
3 a.m.
during that
calendar year shall
be paid as 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 paid to its thoroughbred purse account; 
8 and

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

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

21 Department of Agriculture, with the advice and 
22 assistance of the Illinois
Standardbred
Breeders Fund 
23 Advisory Board.

24  (7.2) Notwithstanding any other provision of this Act 
25 to the contrary, if
no
thoroughbred racing is conducted at 
26 a racetrack located in Madison County
during any
calendar 
 
 
10100SB0690ham003- 510 -LRB101 04451 SMS 61572 a


1 year beginning on or after January 1,
2002, all
moneys 
2 derived by
that racetrack from simulcast wagering and 
3 inter-track wagering that (1) are to
be used
for purses and 
4 (2) are generated between the hours of 6:30 a.m. and 6:30 
5 p.m.
during that
calendar year shall
be deposited as 
6 follows:

7   (A) If the licensee that conducts horse racing at 
8 that racetrack
requests from the
Board at least
as many 
9 racing dates as were conducted in calendar year 2000, 
10 80%
shall be deposited into its standardbred purse

11 account; and

12   (B) Twenty percent shall be deposited into the 
13 Illinois Colt Stakes
Purse
Distribution Fund. Moneys 
14 deposited into the Illinois Colt Stakes Purse

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

24 pursuant to this subparagraph (B) shall be deposited 
25 within 2 weeks
after the day they were generated, shall 
26 be in addition to and not in
lieu of any other moneys 
 
 
10100SB0690ham003- 511 -LRB101 04451 SMS 61572 a


1 paid to thoroughbred purses
under this Act, and shall 
2 not be commingled with other moneys deposited into
that 
3 Fund.

4  (7.3) (Blank).

5  (7.4) (Blank).

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

13  (8.1) Notwithstanding any provisions in this Act to the 
14 contrary, if 2
organization licensees
are conducting 
15 standardbred race meetings concurrently
between the hours 
16 of 6:30 p.m. and 6:30 a.m., after payment of all applicable

17 State and local taxes and interstate commission fees, the 
18 remainder of the
amount retained from simulcast wagering 
19 otherwise attributable to the host
track and to host track 
20 purses shall be split daily between the 2
organization 
21 licensees and the purses at the tracks of the 2 
22 organization
licensees, respectively, based on each 
23 organization licensee's share
of the total live handle for 
24 that day,
provided that this provision shall not apply to 
25 any non-host licensee that
derives its license from a track 
26 located in a county with a population in
excess of 230,000 
 
 
10100SB0690ham003- 512 -LRB101 04451 SMS 61572 a


1 and that borders the Mississippi River.

2  (9) (Blank).

3  (10) (Blank).

4  (11) (Blank).

5  (12) The Board shall have authority to compel all host 
6 tracks to receive
the simulcast of any or all races 
7 conducted at the Springfield or DuQuoin State
fairgrounds 
8 and include all such races as part of their simulcast 
9 programs.

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

14 pari-mutuel handle on Illinois horse races at all such 
15 wagering facilities for
calendar year 1994, then each 
16 wagering facility that has an annual total
Illinois 
17 pari-mutuel handle on Illinois horse races that is less 
18 than 75% of
the total Illinois pari-mutuel handle on 
19 Illinois horse races at such wagering
facility for calendar 
20 year 1994, shall be permitted to receive, from any amount

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

24 differential in total Illinois pari-mutuel handle on 
25 Illinois horse
races at the wagering facility between that 
26 calendar year in question and 1994
provided, however, that 
 
 
10100SB0690ham003- 513 -LRB101 04451 SMS 61572 a


1 a
wagering facility shall not be entitled to any such 
2 payment until the Board
certifies in writing to the 
3 wagering facility the amount to which the wagering
facility 
4 is entitled
and a schedule for payment of the amount to the 
5 wagering facility, based on:
(i) the racing dates awarded 
6 to the race track affiliated with the wagering
facility 
7 during the succeeding year; (ii) the sums available or 
8 anticipated to
be available in the purse account of the 
9 race track affiliated with the
wagering facility for purses 
10 during the succeeding year; and (iii) the need to
ensure 
11 reasonable purse levels during the payment period.
The 
12 Board's certification
shall be provided no later than 
13 January 31 of the succeeding year.
In the event a wagering 
14 facility entitled to a payment under this paragraph
(13) is 
15 affiliated with a race track that maintains purse accounts 
16 for both
standardbred and thoroughbred racing, the amount 
17 to be paid to the wagering
facility shall be divided 
18 between each purse account pro rata, based on the
amount of 
19 Illinois handle on Illinois standardbred and thoroughbred 
20 racing
respectively at the wagering facility during the 
21 previous calendar year.
Annually, the General Assembly 
22 shall appropriate sufficient funds from the
General 
23 Revenue Fund to the Department of Agriculture for payment 
24 into the
thoroughbred and standardbred horse racing purse 
25 accounts at
Illinois pari-mutuel tracks. The amount paid to 
26 each purse account shall be
the amount certified by the 
 
 
10100SB0690ham003- 514 -LRB101 04451 SMS 61572 a


1 Illinois Racing Board in January to be
transferred from 
2 each account to each eligible racing facility in
accordance 
3 with the provisions of this Section. Beginning in the 
4 calendar year in which an organization licensee that is 
5 eligible to receive payment under this paragraph (13) 
6 begins to receive funds from gaming pursuant to an 
7 organization gaming license issued under the Illinois 
8 Gambling Act, the amount of the payment due to all wagering 
9 facilities licensed under that organization licensee under 
10 this paragraph (13) shall be the amount certified by the 
11 Board in January of that year. An organization licensee and 
12 its related wagering facilities shall no longer be able to 
13 receive payments under this paragraph (13) beginning in the 
14 year subsequent to the first year in which the organization 
15 licensee begins to receive funds from gaming pursuant to an 
16 organization gaming license issued under the Illinois 
17 Gambling Act.

18 (h) The Board may approve and license the conduct of 
19inter-track wagering
and simulcast wagering by inter-track 
20wagering licensees and inter-track
wagering location licensees 
21subject to the following terms and conditions:

22  (1) Any person licensed to conduct a race meeting (i) 
23 at a track where
60 or more days of racing were conducted 
24 during the immediately preceding
calendar year or where 
25 over the 5 immediately preceding calendar years an
average 
26 of 30 or more days of racing were conducted annually may be 
 
 
10100SB0690ham003- 515 -LRB101 04451 SMS 61572 a


1 issued an
inter-track wagering license; (ii) at a track

2 located in a county that is bounded by the Mississippi 
3 River, which has a
population of less than 150,000 
4 according to the 1990 decennial census, and an
average of 
5 at least 60 days of racing per year between 1985 and 1993 
6 may be
issued an inter-track wagering license; or (iii) at 
7 a track awarded standardbred racing dates; or (iv) at a 
8 track
located in Madison
County that conducted at least 100 
9 days of live racing during the immediately
preceding

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

13 acts of God; (B)
an agreement between the organization 
14 licensee and the associations
representing the
largest 
15 number of owners, trainers, jockeys, or standardbred 
16 drivers who race
horses at
that organization licensee's 
17 racing meeting; or (C) a finding by the Board of

18 extraordinary circumstances and that it was in the best 
19 interest of the public
and the sport to conduct fewer than 
20 100 days of live racing. Any such person
having operating 
21 control of the racing facility may receive
inter-track 
22 wagering
location licenses. An
eligible race track located 
23 in a county that has a population of more than
230,000 and 
24 that is bounded by the Mississippi River may establish up 
25 to 9
inter-track wagering locations, an eligible race track 
26 located in Stickney Township in Cook County may establish 
 
 
10100SB0690ham003- 516 -LRB101 04451 SMS 61572 a


1 up to 16 inter-track wagering locations, and an eligible 
2 race track located in Palatine Township in Cook County may 
3 establish up to 18 inter-track wagering locations. An 
4 eligible racetrack conducting standardbred racing may have 
5 up to 16 inter-track wagering locations.
An application for

6 said license shall be filed with the Board prior to such 
7 dates as may be
fixed by the Board. With an application for 
8 an inter-track
wagering
location license there shall be 
9 delivered to the Board a certified check or
bank draft 
10 payable to the order of the Board for an amount equal to 
11 $500.
The application shall be on forms prescribed and 
12 furnished by the Board. The
application shall comply with 
13 all other rules,
regulations and conditions imposed by the 
14 Board in connection therewith.

15  (2) The Board shall examine the applications with 
16 respect to their
conformity with this Act and the rules and 
17 regulations imposed by the
Board. If found to be in 
18 compliance with the Act and rules and regulations
of the 
19 Board, the Board may then issue a license to conduct 
20 inter-track
wagering and simulcast wagering to such 
21 applicant. All such applications
shall be acted upon by the 
22 Board at a meeting to be held on such date as may be
fixed 
23 by the Board.

24  (3) In granting licenses to conduct inter-track 
25 wagering and simulcast
wagering, the Board shall give due 
26 consideration to
the best interests of the
public, of horse 
 
 
10100SB0690ham003- 517 -LRB101 04451 SMS 61572 a


1 racing, and of maximizing revenue to the State.

2  (4) Prior to the issuance of a license to conduct 
3 inter-track wagering
and simulcast wagering,
the applicant 
4 shall file with the Board a bond payable to the State of 
5 Illinois
in the sum of $50,000, executed by the applicant 
6 and a surety company or
companies authorized to do business 
7 in this State, and conditioned upon
(i) the payment by the 
8 licensee of all taxes due under Section 27 or 27.1
and any 
9 other monies due and payable under this Act, and (ii)

10 distribution by the licensee, upon presentation of the 
11 winning ticket or
tickets, of all sums payable to the 
12 patrons of pari-mutuel pools.

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

16 the track or location where the wagering is to be 
17 conducted.

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

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

26  (8) Inter-track wagering or simulcast wagering shall 
 
 
10100SB0690ham003- 518 -LRB101 04451 SMS 61572 a


1 not be
conducted
at any track less than 4 5 miles from a 
2 track at which a racing meeting is in
progress.

3  (8.1) Inter-track wagering location
licensees who 
4 derive their licenses from a particular organization 
5 licensee
shall conduct inter-track wagering and simulcast 
6 wagering only at locations that
are within 160 miles of 
7 that race track
where
the particular organization licensee 
8 is licensed to conduct racing. However, inter-track 
9 wagering and simulcast wagering
shall not
be conducted by 
10 those licensees at any location within 5 miles of any race

11 track at which a
horse race meeting has been licensed in 
12 the current year, unless the person
having operating 
13 control of such race track has given its written consent
to 
14 such inter-track wagering location licensees,
which 
15 consent
must be filed with the Board at or prior to the 
16 time application is made. In the case of any inter-track 
17 wagering location licensee initially licensed after 
18 December 31, 2013, inter-track wagering and simulcast 
19 wagering shall not be conducted by those inter-track 
20 wagering location licensees that are located outside the 
21 City of Chicago at any location within 8 miles of any race 
22 track at which a horse race meeting has been licensed in 
23 the current year, unless the person having operating 
24 control of such race track has given its written consent to 
25 such inter-track wagering location licensees, which 
26 consent must be filed with the Board at or prior to the 
 
 
10100SB0690ham003- 519 -LRB101 04451 SMS 61572 a


1 time application is made. 

2  (8.2) Inter-track wagering or simulcast wagering shall 
3 not be
conducted by an inter-track
wagering location 
4 licensee at any location within 500 feet of an
existing

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

18 simulcast wagering may be conducted at a site within 500 
19 feet of
a church, school or residences
of 50 or more 
20 registered voters if such church, school
or residences have 
21 been erected
or established, or such voters have been 
22 registered, after
the Board issues
the original 
23 inter-track wagering location license at the site in 
24 question.
Inter-track wagering location licensees may 
25 conduct inter-track wagering
and simulcast wagering only 
26 in areas that are zoned for
commercial or manufacturing 
 
 
10100SB0690ham003- 520 -LRB101 04451 SMS 61572 a


1 purposes or
in areas for which a special use has been 
2 approved by the local zoning
authority. However, no license 
3 to conduct inter-track wagering and simulcast
wagering 
4 shall be
granted by the Board with respect to any 
5 inter-track wagering location
within the jurisdiction of 
6 any local zoning authority which has, by
ordinance or by 
7 resolution, prohibited the establishment of an inter-track

8 wagering location within its jurisdiction. However, 
9 inter-track wagering
and simulcast wagering may be 
10 conducted at a site if such ordinance or
resolution is 
11 enacted after
the Board licenses the original inter-track 
12 wagering location
licensee for the site in question.

13  (9) (Blank).

14  (10) An inter-track wagering licensee or an 
15 inter-track wagering
location licensee may retain, subject 
16 to the
payment of the privilege taxes and the purses, an 
17 amount not to
exceed 17% of all money wagered. Each program 
18 of racing conducted by
each inter-track wagering licensee 
19 or inter-track wagering location
licensee shall be 
20 considered a separate racing day for the purpose of

21 determining the daily handle and computing the privilege 
22 tax or pari-mutuel
tax on such daily
handle as provided in 
23 Section 27.

24  (10.1) Except as provided in subsection (g) of Section 
25 27 of this Act,
inter-track wagering location licensees 
26 shall pay 1% of the
pari-mutuel handle at each location to 
 
 
10100SB0690ham003- 521 -LRB101 04451 SMS 61572 a


1 the municipality in which such
location is situated and 1% 
2 of the pari-mutuel handle at each location to
the county in 
3 which such location is situated. In the event that an

4 inter-track wagering location licensee is situated in an 
5 unincorporated
area of a county, such licensee shall pay 2% 
6 of the pari-mutuel handle from
such location to such 
7 county.

8  (10.2) Notwithstanding any other provision of this 
9 Act, with respect to inter-track
wagering at a race track 
10 located in a
county that has a population of
more than 
11 230,000 and that is bounded by the Mississippi River ("the 
12 first race
track"), or at a facility operated by an 
13 inter-track wagering licensee or
inter-track wagering 
14 location licensee that derives its license from the

15 organization licensee that operates the first race track, 
16 on races conducted at
the first race track or on races 
17 conducted at another Illinois race track
and 
18 simultaneously televised to the first race track or to a 
19 facility operated
by an inter-track wagering licensee or 
20 inter-track wagering location licensee
that derives its 
21 license from the organization licensee that operates the 
22 first
race track, those moneys shall be allocated as 
23 follows:

24   (A) That portion of all moneys wagered on 
25 standardbred racing that is
required under this Act to 
26 be paid to purses shall be paid to purses for

 
 
10100SB0690ham003- 522 -LRB101 04451 SMS 61572 a


1 standardbred races.

2   (B) That portion of all moneys wagered on 
3 thoroughbred racing
that is required under this Act to 
4 be paid to purses shall be paid to purses
for 
5 thoroughbred races.

6  (11) (A) After payment of the privilege or pari-mutuel 
7 tax, any other
applicable
taxes, and
the costs and expenses 
8 in connection with the gathering, transmission, and

9 dissemination of all data necessary to the conduct of 
10 inter-track wagering,
the remainder of the monies retained 
11 under either Section 26 or Section 26.2
of this Act by the 
12 inter-track wagering licensee on inter-track wagering

13 shall be allocated with 50% to be split between the
2 
14 participating licensees and 50% to purses, except
that an 
15 inter-track wagering licensee that derives its
license 
16 from a track located in a county with a population in 
17 excess of 230,000
and that borders the Mississippi River 
18 shall not divide any remaining
retention with the Illinois 
19 organization licensee that provides the race or
races, and 
20 an inter-track wagering licensee that accepts wagers on 
21 races
conducted by an organization licensee that conducts a 
22 race meet in a county
with a population in excess of 
23 230,000 and that borders the Mississippi River
shall not 
24 divide any remaining retention with that organization 
25 licensee.

26  (B) From the
sums permitted to be retained pursuant to 
 
 
10100SB0690ham003- 523 -LRB101 04451 SMS 61572 a


1 this Act each inter-track wagering
location licensee shall 
2 pay (i) the privilege or pari-mutuel tax to the
State; (ii) 
3 4.75% of the
pari-mutuel handle on inter-track wagering at 
4 such location on
races as purses, except that
an 
5 inter-track wagering location licensee that derives its 
6 license from a
track located in a county with a population 
7 in excess of 230,000 and that
borders the Mississippi River 
8 shall retain all purse moneys for its own purse
account 
9 consistent with distribution set forth in this subsection 
10 (h), and inter-track
wagering location licensees that 
11 accept wagers on races
conducted
by an organization 
12 licensee located in a county with a population in excess of

13 230,000 and that borders the Mississippi River shall 
14 distribute all purse
moneys to purses at the operating host 
15 track; (iii) until January 1, 2000,
except as
provided in

16 subsection (g) of Section 27 of this Act, 1% of the

17 pari-mutuel handle wagered on inter-track wagering and 
18 simulcast wagering at
each inter-track wagering
location 
19 licensee facility to the Horse Racing Tax Allocation Fund, 
20 provided
that, to the extent the total amount collected and 
21 distributed to the Horse
Racing Tax Allocation Fund under 
22 this subsection (h) during any calendar year
exceeds the 
23 amount collected and distributed to the Horse Racing Tax 
24 Allocation
Fund during calendar year 1994, that excess 
25 amount shall be redistributed (I)
to all inter-track 
26 wagering location licensees, based on each licensee's pro 
 
 
10100SB0690ham003- 524 -LRB101 04451 SMS 61572 a


1 rata
pro-rata share of the total handle from inter-track 
2 wagering and simulcast
wagering for all inter-track 
3 wagering location licensees during the calendar
year in 
4 which this provision is applicable; then (II) the amounts 
5 redistributed
to each inter-track wagering location 
6 licensee as described in subpart (I)
shall be further 
7 redistributed as provided in subparagraph (B) of paragraph 
8 (5)
of subsection (g) of this Section 26 provided first, 
9 that the shares of those
amounts, which are to be 
10 redistributed to the host track or to purses at the
host 
11 track under subparagraph (B) of paragraph (5) of subsection 
12 (g) of this
Section 26 shall be
redistributed based on each 
13 host track's pro rata share of the total
inter-track

14 wagering and simulcast wagering handle at all host tracks 
15 during the calendar
year in question, and second, that any 
16 amounts redistributed as described in
part (I) to an 
17 inter-track wagering location licensee that accepts
wagers 
18 on races conducted by an organization licensee that 
19 conducts a race meet
in a county with a population in 
20 excess of 230,000 and that borders the
Mississippi River 
21 shall be further redistributed, effective January 1, 2017, 
22 as provided in paragraph (7) of subsection (g) of this 
23 Section 26, with the
portion of that
further redistribution 
24 allocated to purses at that organization licensee to be

25 divided between standardbred purses and thoroughbred 
26 purses based on the
amounts otherwise allocated to purses 
 
 
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1 at that organization licensee during the
calendar year in 
2 question; and (iv) 8% of the pari-mutuel handle on

3 inter-track wagering wagered at
such location to satisfy 
4 all costs and expenses of conducting its wagering. The

5 remainder of the monies retained by the inter-track 
6 wagering location licensee
shall be allocated 40% to the 
7 location licensee and 60% to the organization
licensee 
8 which provides the Illinois races to the location, except 
9 that an inter-track
wagering location
licensee that 
10 derives its license from a track located in a county with a

11 population in excess of 230,000 and that borders the 
12 Mississippi River shall
not divide any remaining retention 
13 with the organization licensee that provides
the race or 
14 races and an inter-track wagering location licensee that 
15 accepts
wagers on races conducted by an organization 
16 licensee that conducts a race meet
in a county with a 
17 population in excess of 230,000 and that borders the

18 Mississippi River shall not divide any remaining retention 
19 with the
organization licensee.
Notwithstanding the 
20 provisions of clauses (ii) and (iv) of this
paragraph, in 
21 the case of the additional inter-track wagering location 
22 licenses
authorized under paragraph (1) of this subsection 
23 (h) by Public Act 87-110, those licensees shall pay the 
24 following amounts as purses:
during the first 12 months the 
25 licensee is in operation, 5.25% of
the
pari-mutuel handle 
26 wagered at the location on races; during the second 12

 
 
10100SB0690ham003- 526 -LRB101 04451 SMS 61572 a


1 months, 5.25%; during the third 12 months, 5.75%;
during

2 the fourth 12 months,
6.25%; and during the fifth 12 months 
3 and thereafter, 6.75%. The
following amounts shall be 
4 retained by the licensee to satisfy all costs
and expenses 
5 of conducting its wagering: during the first 12 months the

6 licensee is in operation, 8.25% of the pari-mutuel handle 
7 wagered
at the
location; during the second 12 months, 
8 8.25%; during the third 12
months, 7.75%;
during the fourth 
9 12 months, 7.25%; and during the fifth 12 months
and

10 thereafter, 6.75%.
For additional inter-track wagering 
11 location licensees authorized under Public Act 89-16, 
12 purses for the first 12 months the licensee is in operation 
13 shall
be 5.75% of the pari-mutuel wagered
at the location, 
14 purses for the second 12 months the licensee is in 
15 operation
shall be 6.25%, and purses
thereafter shall be 
16 6.75%. For additional inter-track location
licensees

17 authorized under Public Act 89-16, the licensee shall be 
18 allowed to retain to satisfy
all costs and expenses: 7.75% 
19 of the pari-mutuel handle wagered at
the location
during 
20 its first 12 months of operation, 7.25% during its second

21 12
months of
operation, and 6.75% thereafter.

22  (C) There is hereby created the Horse Racing Tax 
23 Allocation Fund
which shall remain in existence until 
24 December 31, 1999. Moneys
remaining in the Fund after 
25 December 31, 1999
shall be paid into the
General Revenue 
26 Fund. Until January 1, 2000,
all monies paid into the Horse 
 
 
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1 Racing Tax Allocation Fund pursuant to this
paragraph (11) 
2 by inter-track wagering location licensees located in park

3 districts of 500,000 population or less, or in a 
4 municipality that is not
included within any park district 
5 but is included within a conservation
district and is the 
6 county seat of a county that (i) is contiguous to the state

7 of Indiana and (ii) has a 1990 population of 88,257 
8 according to the United
States Bureau of the Census, and 
9 operating on May 1, 1994 shall be
allocated by 
10 appropriation as follows:

11   Two-sevenths to the Department of Agriculture. 
12 Fifty percent of
this two-sevenths shall be used to 
13 promote the Illinois horse racing and
breeding 
14 industry, and shall be distributed by the Department of 
15 Agriculture
upon the advice of a 9-member committee 
16 appointed by the Governor consisting of
the following 
17 members: the Director of Agriculture, who shall serve 
18 as
chairman; 2 representatives of organization 
19 licensees conducting thoroughbred
race meetings in 
20 this State, recommended by those licensees; 2 
21 representatives
of organization licensees conducting 
22 standardbred race meetings in this State,
recommended 
23 by those licensees; a representative of the Illinois

24 Thoroughbred Breeders and Owners Foundation, 
25 recommended by that
Foundation; a representative of 
26 the Illinois Standardbred Owners and
Breeders 
 
 
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1 Association, recommended
by that Association; a 
2 representative of
the Horsemen's Benevolent and 
3 Protective Association or any successor
organization 
4 thereto established in Illinois comprised of the 
5 largest number of
owners and trainers, recommended by 
6 that
Association or that successor organization; and a

7 representative of the Illinois Harness Horsemen's

8 Association, recommended by that Association. 
9 Committee members shall
serve for terms of 2 years, 
10 commencing January 1 of each even-numbered
year. If a 
11 representative of any of the above-named entities has 
12 not been
recommended by January 1 of any even-numbered 
13 year, the Governor shall
appoint a committee member to 
14 fill that position. Committee members shall
receive no 
15 compensation for their services as members but shall be

16 reimbursed for all actual and necessary expenses and 
17 disbursements incurred
in the performance of their 
18 official duties. The remaining 50% of this

19 two-sevenths shall be distributed to county fairs for 
20 premiums and
rehabilitation as set forth in the 
21 Agricultural Fair Act;

22   Four-sevenths to park districts or municipalities 
23 that do not have a
park district of 500,000 population 
24 or less for museum purposes (if an
inter-track wagering 
25 location licensee is located in such a park district) 
26 or
to conservation districts for museum purposes (if an 
 
 
10100SB0690ham003- 529 -LRB101 04451 SMS 61572 a


1 inter-track wagering
location licensee is located in a 
2 municipality that is not included within any
park 
3 district but is included within a conservation 
4 district and is the county
seat of a county that (i) is 
5 contiguous to the state of Indiana and (ii) has a
1990 
6 population of 88,257 according to the United States 
7 Bureau of the Census,
except that if the conservation 
8 district does not maintain a museum, the monies
shall 
9 be allocated equally between the county and the 
10 municipality in which the
inter-track wagering 
11 location licensee is located for general purposes) or 
12 to a
municipal recreation board for park purposes (if 
13 an inter-track wagering
location licensee is located 
14 in a municipality that is not included within any
park 
15 district and park maintenance is the function of the 
16 municipal recreation
board and the municipality has a 
17 1990 population of 9,302 according to the
United States 
18 Bureau of the Census); provided that the monies are 
19 distributed
to each park district or conservation 
20 district or municipality that does not
have a park 
21 district in an amount equal to four-sevenths of the 
22 amount
collected by each inter-track wagering location 
23 licensee within the park
district or conservation 
24 district or municipality for the Fund. Monies that
were 
25 paid into the Horse Racing Tax Allocation Fund before 
26 August 9, 1991 (the effective date
of Public Act 
 
 
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1 87-110) by an inter-track wagering location licensee

2 located in a municipality that is not included within 
3 any park district but is
included within a conservation 
4 district as provided in this paragraph shall, as
soon 
5 as practicable after August 9, 1991 (the effective date 
6 of Public Act 87-110), be
allocated and paid to that 
7 conservation district as provided in this paragraph.

8 Any park district or municipality not maintaining a 
9 museum may deposit the
monies in the corporate fund of 
10 the park district or municipality where the

11 inter-track wagering location is located, to be used 
12 for general purposes;
and

13   One-seventh to the Agricultural Premium Fund to be 
14 used for distribution
to agricultural home economics 
15 extension councils in accordance with "An
Act in 
16 relation to additional support and finances for the 
17 Agricultural and
Home Economic Extension Councils in 
18 the several counties of this State and
making an 
19 appropriation therefor", approved July 24, 1967.

20  Until January 1, 2000, all other
monies paid into the 
21 Horse Racing Tax
Allocation Fund pursuant to
this paragraph 
22 (11) shall be allocated by appropriation as follows:

23   Two-sevenths to the Department of Agriculture. 
24 Fifty percent of this
two-sevenths shall be used to 
25 promote the Illinois horse racing and breeding

26 industry, and shall be distributed by the Department of 
 
 
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1 Agriculture upon the
advice of a 9-member committee 
2 appointed by the Governor consisting of the
following 
3 members: the Director of Agriculture, who shall serve 
4 as chairman; 2
representatives of organization 
5 licensees conducting thoroughbred race meetings
in 
6 this State, recommended by those licensees; 2 
7 representatives of
organization licensees conducting 
8 standardbred race meetings in this State,
recommended 
9 by those licensees; a representative of the Illinois 
10 Thoroughbred
Breeders and Owners Foundation, 
11 recommended by that Foundation; a
representative of 
12 the Illinois Standardbred Owners and Breeders 
13 Association,
recommended by that Association; a 
14 representative of the Horsemen's Benevolent
and 
15 Protective Association or any successor organization 
16 thereto established
in Illinois comprised of the 
17 largest number of owners and trainers,
recommended by 
18 that Association or that successor organization; and a

19 representative of the Illinois Harness Horsemen's 
20 Association, recommended by
that Association. 
21 Committee members shall serve for terms of 2 years,

22 commencing January 1 of each even-numbered year. If a 
23 representative of any of
the above-named entities has 
24 not been recommended by January 1 of any
even-numbered 
25 year, the Governor shall appoint a committee member to 
26 fill that
position. Committee members shall receive no 
 
 
10100SB0690ham003- 532 -LRB101 04451 SMS 61572 a


1 compensation for their services
as members but shall be 
2 reimbursed for all actual and necessary expenses and

3 disbursements incurred in the performance of their 
4 official duties. The
remaining 50% of this 
5 two-sevenths shall be distributed to county fairs for

6 premiums and rehabilitation as set forth in the 
7 Agricultural Fair Act;

8   Four-sevenths to museums and aquariums located in 
9 park districts of over
500,000 population; provided 
10 that the monies are distributed in accordance with
the 
11 previous year's distribution of the maintenance tax 
12 for such museums and
aquariums as provided in Section 2 
13 of the Park District Aquarium and Museum
Act; and

14   One-seventh to the Agricultural Premium Fund to be 
15 used for distribution
to agricultural home economics 
16 extension councils in accordance with "An Act
in 
17 relation to additional support and finances for the 
18 Agricultural and
Home Economic Extension Councils in 
19 the several counties of this State and
making an 
20 appropriation therefor", approved July 24, 1967.
This 
21 subparagraph (C) shall be inoperative and of no force 
22 and effect on and
after January 1, 2000.

23   (D) Except as provided in paragraph (11) of this 
24 subsection (h),
with respect to purse allocation from 
25 inter-track wagering, the monies so
retained shall be 
26 divided as follows:

 
 
10100SB0690ham003- 533 -LRB101 04451 SMS 61572 a


1    (i) If the inter-track wagering licensee, 
2 except an inter-track
wagering licensee that 
3 derives its license from an organization
licensee 
4 located in a county with a population in excess of 
5 230,000 and bounded
by the Mississippi River, is 
6 not conducting its own
race meeting during the same 
7 dates, then the entire purse allocation shall be
to 
8 purses at the track where the races wagered on are 
9 being conducted.

10    (ii) 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 also
conducting its own
race meeting during the 
16 same dates, then the purse allocation shall be as

17 follows: 50% to purses at the track where the races 
18 wagered on are
being conducted; 50% to purses at 
19 the track where the inter-track
wagering licensee 
20 is accepting such wagers.

21    (iii) If the inter-track wagering is being 
22 conducted by an inter-track
wagering location 
23 licensee, except an inter-track wagering location 
24 licensee
that derives its license from an 
25 organization licensee located in a
county with a 
26 population in excess of 230,000 and bounded by the 
 
 
10100SB0690ham003- 534 -LRB101 04451 SMS 61572 a


1 Mississippi
River, the entire purse allocation for 
2 Illinois races shall
be to purses at the track 
3 where the race meeting being wagered on is being

4 held.

5  (12) The Board shall have all powers necessary and 
6 proper to fully
supervise and control the conduct of

7 inter-track wagering and simulcast
wagering by inter-track 
8 wagering licensees and inter-track wagering location

9 licensees, including, but not
limited to the following:

10   (A) The Board is vested with power to promulgate 
11 reasonable rules and
regulations for the purpose of 
12 administering the
conduct of this
wagering and to 
13 prescribe reasonable rules, regulations and conditions 
14 under
which such wagering shall be held and conducted. 
15 Such rules and regulations
are to provide for the 
16 prevention of practices detrimental to the public

17 interest and for
the best interests of said wagering 
18 and to impose penalties
for violations thereof.

19   (B) The Board, and any person or persons to whom it 
20 delegates this
power, is vested with the power to enter 
21 the
facilities of any licensee to determine whether 
22 there has been
compliance with the provisions of this 
23 Act and the rules and regulations
relating to the 
24 conduct of such wagering.

25   (C) The Board, and any person or persons to whom it 
26 delegates this
power, may eject or exclude from any 
 
 
10100SB0690ham003- 535 -LRB101 04451 SMS 61572 a


1 licensee's facilities, any person whose
conduct or 
2 reputation
is such that his presence on such premises 
3 may, in the opinion of the Board,
call into the 
4 question the honesty and integrity of, or interfere 
5 with the
orderly conduct of such wagering; provided, 
6 however, that no person shall
be excluded or ejected 
7 from such premises solely on the grounds of race,

8 color, creed, national origin, ancestry, or sex.

9   (D) (Blank).

10   (E) The Board is vested with the power to appoint 
11 delegates to execute
any of the powers granted to it 
12 under this Section for the purpose of
administering 
13 this wagering and any
rules and
regulations

14 promulgated in accordance with this Act.

15   (F) The Board shall name and appoint a State 
16 director of this wagering
who shall be a representative 
17 of the Board and whose
duty it shall
be to supervise 
18 the conduct of inter-track wagering as may be provided 
19 for
by the rules and regulations of the Board; such 
20 rules and regulation shall
specify the method of 
21 appointment and the Director's powers, authority and

22 duties.

23   (G) The Board is vested with the power to impose 
24 civil penalties of up
to $5,000 against individuals and 
25 up to $10,000 against
licensees for each violation of 
26 any provision of
this Act relating to the conduct of 
 
 
10100SB0690ham003- 536 -LRB101 04451 SMS 61572 a


1 this wagering, any
rules adopted
by the Board, any 
2 order of the Board or any other action which in the 
3 Board's
discretion, is a detriment or impediment to 
4 such wagering.

5  (13) The Department of Agriculture may enter into 
6 agreements with
licensees authorizing such licensees to 
7 conduct inter-track
wagering on races to be held at the 
8 licensed race meetings conducted by the
Department of 
9 Agriculture. Such
agreement shall specify the races of the 
10 Department of Agriculture's
licensed race meeting upon 
11 which the licensees will conduct wagering. In the
event 
12 that a licensee
conducts inter-track pari-mutuel wagering 
13 on races from the Illinois State Fair
or DuQuoin State Fair 
14 which are in addition to the licensee's previously
approved 
15 racing program, those races shall be considered a separate 
16 racing day
for the
purpose of determining the daily handle 
17 and computing the privilege or
pari-mutuel tax on
that 
18 daily handle as provided in Sections 27
and 27.1. Such

19 agreements shall be approved by the Board before such 
20 wagering may be
conducted. In determining whether to grant 
21 approval, the Board shall give
due consideration to the 
22 best interests of the public and of horse racing.
The 
23 provisions of paragraphs (1), (8), (8.1), and (8.2) of

24 subsection (h) of this
Section which are not specified in 
25 this paragraph (13) shall not apply to
licensed race 
26 meetings conducted by the Department of Agriculture at the

 
 
10100SB0690ham003- 537 -LRB101 04451 SMS 61572 a


1 Illinois State Fair in Sangamon County or the DuQuoin State 
2 Fair in Perry
County, or to any wagering conducted on
those 
3 race meetings.
4  (14) An inter-track wagering location license 
5 authorized by the Board in 2016 that is owned and operated 
6 by a race track in Rock Island County shall be transferred 
7 to a commonly owned race track in Cook County on August 12, 
8 2016 (the effective date of Public Act 99-757). The 
9 licensee shall retain its status in relation to purse 
10 distribution under paragraph (11) of this subsection (h) 
11 following the transfer to the new entity. The pari-mutuel 
12 tax credit under Section 32.1 shall not be applied toward 
13 any pari-mutuel tax obligation of the inter-track wagering 
14 location licensee of the license that is transferred under 
15 this paragraph (14).

16 (i) Notwithstanding the other provisions of this Act, the 
17conduct of
wagering at wagering facilities is authorized on all 
18days, except as limited by
subsection (b) of Section 19 of this 
19Act.

20(Source: P.A. 99-756, eff. 8-12-16; 99-757, eff. 8-12-16; 
21100-201, eff. 8-18-17; 100-627, eff. 7-20-18; 100-1152, eff. 
2212-14-18; revised 1-13-19.)


23 (230 ILCS 5/26.8)
24 Sec. 26.8. Beginning on February 1, 2014 and through 
25December 31, 2020, each wagering licensee may impose a 
 
 
10100SB0690ham003- 538 -LRB101 04451 SMS 61572 a


1surcharge of up to 0.5% on winning wagers and winnings from 
2wagers. The surcharge shall be deducted from winnings prior to 
3payout. All amounts collected from the imposition of this 
4surcharge shall be evenly distributed to the organization 
5licensee and the purse account of the organization licensee 
6with which the licensee is affiliated. The amounts distributed 
7under this Section shall be in addition to the amounts paid 
8pursuant to paragraph (10) of subsection (h) of Section 26, 
9Section 26.3, Section 26.4, Section 26.5, and Section 26.7.

10(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)

11 (230 ILCS 5/26.9)
12 Sec. 26.9. Beginning on February 1, 2014 and through 
13December 31, 2020, in addition to the surcharge imposed in 
14Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each 
15licensee shall impose a surcharge of 0.2% on winning wagers and 
16winnings from wagers. The surcharge shall be deducted from 
17winnings prior to payout. All amounts collected from the 
18surcharges imposed under this Section shall be remitted to the 
19Board. From amounts collected under this Section, the Board 
20shall deposit an amount not to exceed $100,000 annually into 
21the Quarter Horse Purse Fund and all remaining amounts into the 
22Horse Racing Fund.

23(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)

24 (230 ILCS 5/27) (from Ch. 8, par. 37-27)
 
 
10100SB0690ham003- 539 -LRB101 04451 SMS 61572 a


1 Sec. 27. (a) In addition to the organization license fee 
2provided
by this Act, until January 1, 2000, a
graduated 
3privilege tax is hereby
imposed for conducting
the pari-mutuel 
4system of wagering permitted under this
Act. Until January 1, 
52000, except as provided in subsection (g) of
Section 27 of 
6this Act, all of
the breakage of each racing day held by any 
7licensee in the State shall be paid
to the State.
Until January 
81, 2000, such daily graduated privilege tax shall be paid by

9the
licensee from the amount permitted to be retained under 
10this Act.
Until January 1, 2000, each day's
graduated privilege 
11tax, breakage, and Horse Racing Tax Allocation
funds shall be 
12remitted to the Department of Revenue within 48 hours after the

13close of the racing day upon which it is assessed or within 
14such other time as
the Board prescribes. The privilege tax 
15hereby imposed, until January
1, 2000, shall be a flat tax at

16the rate of 2% of the daily pari-mutuel handle except as 
17provided in Section
27.1.
18 In addition, every organization licensee, except as

19provided in Section 27.1 of this Act, which conducts multiple

20wagering shall pay, until January 1, 2000,
as a privilege tax 
21on multiple
wagers an amount
equal to 1.25% of all moneys 
22wagered each day on such multiple wagers,
plus an additional 
23amount equal to 3.5% of the amount wagered each day on any

24other multiple wager which involves a single
betting interest 
25on 3 or more horses. The licensee shall remit the amount of

26such taxes to the Department of Revenue within 48 hours after 
 
 
10100SB0690ham003- 540 -LRB101 04451 SMS 61572 a


1the close of
the racing day on which it is assessed or within 
2such other time as the Board
prescribes.
3 This subsection (a) shall be inoperative and of no force 
4and effect on and
after January 1, 2000.
5 (a-5) Beginning on January 1, 2000, a
flat
pari-mutuel tax 
6at the rate of 1.5% of
the daily
pari-mutuel handle is imposed 
7at all pari-mutuel wagering facilities and on advance deposit 
8wagering from a location other than a wagering facility, except 
9as otherwise provided for in this subsection (a-5). In addition 
10to the pari-mutuel tax imposed on advance deposit wagering 
11pursuant to this subsection (a-5), beginning on August 24, 2012 
12(the effective date of Public Act 97-1060) and through December 
1331, 2020, an additional pari-mutuel tax at the rate of 0.25% 
14shall be imposed on advance deposit wagering. Until August 25, 
152012, the additional 0.25% pari-mutuel tax imposed on advance 
16deposit wagering by Public Act 96-972 shall be deposited into 
17the Quarter Horse Purse Fund, which shall be created as a 
18non-appropriated trust fund administered by the Board for 
19grants to thoroughbred organization licensees for payment of 
20purses for quarter horse races conducted by the organization 
21licensee. Beginning on August 26, 2012, the additional 0.25% 
22pari-mutuel tax imposed on advance deposit wagering shall be 
23deposited into the Standardbred Purse Fund, which shall be 
24created as a non-appropriated trust fund administered by the 
25Board, for grants to the standardbred organization licensees 
26for payment of purses for standardbred horse races conducted by 
 
 
10100SB0690ham003- 541 -LRB101 04451 SMS 61572 a


1the organization licensee. Thoroughbred organization licensees 
2may petition the Board to conduct quarter horse racing and 
3receive purse grants from the Quarter Horse Purse Fund. The 
4Board shall have complete discretion in distributing the 
5Quarter Horse Purse Fund to the petitioning organization 
6licensees. Beginning on July 26, 2010 (the effective date of 
7Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of 
8the daily pari-mutuel handle is imposed at a pari-mutuel 
9facility whose license is derived from a track located in a 
10county that borders the Mississippi River and conducted live 
11racing in the previous year. The pari-mutuel tax imposed by 
12this subsection (a-5)
shall be remitted to the Department of

13Revenue within 48 hours after the close of the racing day upon 
14which it is
assessed or within such other time as the Board 
15prescribes.
16 (a-10) Beginning on the date when an organization licensee 
17begins conducting gaming pursuant to an organization gaming 
18license, the following pari-mutuel tax is imposed upon an 
19organization licensee on Illinois races at the licensee's 
20racetrack: 
21  1.5% of the pari-mutuel handle at or below the average 
22 daily pari-mutuel handle for 2011. 
23  2% of the pari-mutuel handle above the average daily 
24 pari-mutuel handle for 2011 up to 125% of the average daily 
25 pari-mutuel handle for 2011. 
26  2.5% of the pari-mutuel handle 125% or more above the 
 
 
10100SB0690ham003- 542 -LRB101 04451 SMS 61572 a


1 average daily pari-mutuel handle for 2011 up to 150% of the 
2 average daily pari-mutuel handle for 2011. 
3  3% of the pari-mutuel handle 150% or more above the 
4 average daily pari-mutuel handle for 2011 up to 175% of the 
5 average daily pari-mutuel handle for 2011. 
6  3.5% of the pari-mutuel handle 175% or more above the 
7 average daily pari-mutuel handle for 2011. 
8 The pari-mutuel tax imposed by this subsection (a-10) shall 
9be remitted to the Board within 48 hours after the close of the 
10racing day upon which it is assessed or within such other time 
11as the Board prescribes. 
12 (b) On or before December 31, 1999, in
the event that any 
13organization
licensee conducts
2 separate programs
of races on 
14any day, each such program shall be considered a separate

15racing day for purposes of determining the daily handle and 
16computing
the privilege tax on such daily handle as provided in 
17subsection (a) of
this Section.
18 (c) Licensees shall at all times keep accurate
books
and 
19records of all monies wagered on each day of a race meeting and 
20of
the taxes paid to the Department of Revenue under the 
21provisions of this
Section. The Board or its duly authorized 
22representative or
representatives shall at all reasonable 
23times have access to such
records for the purpose of examining 
24and checking the same and
ascertaining whether the proper 
25amount of taxes is being paid as
provided. The Board shall 
26require verified reports and a statement of
the total of all 
 
 
10100SB0690ham003- 543 -LRB101 04451 SMS 61572 a


1monies wagered daily at each wagering facility upon which
the 
2taxes are assessed and may prescribe forms upon which such 
3reports
and statement shall be made.
4 (d) Before a license is issued or re-issued, the licensee 
5shall post a bond in the sum of $500,000 to the State of 
6Illinois. The bond shall be used to guarantee that the licensee 
7faithfully makes the payments, keeps the books and records and 
8makes reports, and conducts games of chance in conformity with 
9this Act and the rules adopted by the Board. The bond shall not 
10be canceled by a surety on less than 30 days' notice in writing 
11to the Board. If a bond is canceled and the licensee fails to 
12file a new bond with the Board in the required amount on or 
13before the effective date of cancellation, the licensee's 
14license shall be revoked. The total and aggregate liability of 
15the surety on the bond is limited to the amount specified in 
16the bond. Any licensee failing or refusing to pay the amount
of 
17any tax due under this Section shall be guilty of a business 
18offense
and upon conviction shall be fined not more than $5,000 
19in addition to
the amount found due as tax under this Section. 
20Each day's violation
shall constitute a separate offense. All 
21fines paid into Court by a licensee hereunder shall be 
22transmitted and paid over by
the Clerk of the Court to the 
23Board.
24 (e) No other license fee, privilege tax, excise tax, or

25racing fee, except as provided in this Act, shall be assessed 
26or
collected from any such licensee by the State.
 
 
10100SB0690ham003- 544 -LRB101 04451 SMS 61572 a


1 (f) No other license fee, privilege tax, excise tax or 
2racing fee shall be
assessed or collected from any such 
3licensee by units of local government
except as provided in 
4paragraph 10.1 of subsection (h) and subsection (f) of
Section 
526 of this Act. However, any municipality that has a Board 
6licensed
horse race meeting at a race track wholly within its 
7corporate boundaries or a
township that has a Board licensed 
8horse race meeting at a race track wholly
within the 
9unincorporated area of the township may charge a local

10amusement tax not to exceed 10¢ per admission to such horse 
11race meeting
by the enactment of an ordinance. However, any 
12municipality or county
that has a Board licensed inter-track 
13wagering location facility wholly
within its corporate 
14boundaries may each impose an admission fee not
to exceed $1.00 
15per admission to such inter-track wagering location facility,

16so that a total of not more than $2.00 per admission may be 
17imposed.
Except as provided in subparagraph (g) of Section 27 
18of this Act, the
inter-track wagering location licensee shall 
19collect any and all such fees
and within 48 hours remit the 
20fees to the Board as the Board prescribes, which shall, 
21pursuant to
rule, cause the fees to be distributed to the 
22county or municipality.
23 (g) Notwithstanding any provision in this Act to the 
24contrary, if in any
calendar year the total taxes and fees from 
25wagering on live racing and from
inter-track wagering required 
26to be collected from
licensees and distributed under this Act 
 
 
10100SB0690ham003- 545 -LRB101 04451 SMS 61572 a


1to all State and local governmental
authorities exceeds the 
2amount of such taxes and fees distributed to each State
and 
3local governmental authority to which each State and local 
4governmental
authority was entitled under this Act for calendar 
5year 1994, then the first
$11 million of that excess amount 
6shall be allocated at the earliest possible
date for 
7distribution as purse money for the succeeding calendar year.

8Upon reaching the 1994 level, and until the excess amount of 
9taxes and fees
exceeds $11 million, the Board shall direct all 
10licensees to cease paying the
subject taxes and fees and the 
11Board shall direct all licensees to allocate any such excess 
12amount for purses as
follows:
13  (i) the excess amount shall be initially divided 
14 between thoroughbred and
standardbred purses based on the 
15 thoroughbred's and standardbred's respective
percentages 
16 of total Illinois live wagering in calendar year 1994;
17  (ii) each thoroughbred and standardbred organization 
18 licensee issued an
organization licensee in that 
19 succeeding allocation year shall
be
allocated an amount 
20 equal to the product of its percentage of total
Illinois

21 live thoroughbred or standardbred wagering in calendar 
22 year 1994 (the total to
be determined based on the sum of 
23 1994 on-track wagering for all organization
licensees 
24 issued organization licenses in both the allocation year 
25 and the
preceding year) multiplied by
the total amount 
26 allocated for standardbred or thoroughbred purses, 
 
 
10100SB0690ham003- 546 -LRB101 04451 SMS 61572 a


1 provided
that the first $1,500,000 of the amount allocated 
2 to standardbred
purses under item (i) shall be allocated to 
3 the Department of
Agriculture to be expended with the 
4 assistance and advice of the Illinois
Standardbred 
5 Breeders Funds Advisory Board for the purposes listed in

6 subsection (g) of Section 31 of this Act, before the amount 
7 allocated to
standardbred purses under item (i) is 
8 allocated to standardbred
organization licensees in the 
9 succeeding allocation year.
10 To the extent the excess amount of taxes and fees to be 
11collected and
distributed to State and local governmental 
12authorities exceeds $11 million,
that excess amount shall be 
13collected and distributed to State and local
authorities as 
14provided for under this Act.
15(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)




16 (230 ILCS 5/29) (from Ch. 8, par. 37-29)



17 Sec. 29. 
(a) After the privilege or pari-mutuel tax 
18established in
Sections 26(f), 27, and 27.1 is paid to the 
19State from
the monies
retained by the
organization licensee 
20pursuant to Sections 26, 26.2, and
26.3, the remainder of those 
21monies
retained pursuant to Sections 26 and 26.2, except as

22provided in subsection (g) of Section 27 of this Act, shall be

23allocated evenly to the organization licensee and as purses.

24 (b) (Blank).

25 (c) (Blank).

 
 
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1 (d) From the amounts generated for purses from all sources, 
2including, but not limited to, amounts generated from wagering 
3conducted by organization licensees, organization gaming 
4licensees, inter-track wagering licensees, inter-track 
5wagering location licensees, and advance deposit wagering 
6licensees, an organization licensee shall pay to an 
7organization representing the largest number of horse owners 
8and trainers in Illinois, for thoroughbred and standardbred 
9horses that race at the track of the organization licensee, an 
10amount equal to at least 5% of any and all revenue earned by 
11the organization licensee for purses for that calendar year. A 
12contract with the appropriate thoroughbred or standardbred 
13horsemen organization shall be negotiated and signed by the 
14organization licensee before the beginning of each calendar 
15year. Amounts may be used for any legal purpose, including, but 
16not limited to, operational expenses, programs for backstretch 
17workers, retirement plans, diversity scholarships, horse 
18aftercare programs, workers compensation insurance fees, and 
19horse ownership programs. Financial statements highlighting 
20how the funding is spent shall be provided upon request to the 
21organization licensee. The appropriate thoroughbred or 
22standardbred horsemen organization shall make that information 
23available on its website.
24  Each organization licensee and inter-track wagering 
25licensee
from the money retained for purses as
set forth in 
26subsection (a) of this Section,
shall pay to an
organization 
 
 
10100SB0690ham003- 548 -LRB101 04451 SMS 61572 a


1representing the largest number of horse owners and trainers

2which has negotiated a
contract with the organization licensee 
3for such purpose an amount equal to
at least 1% of the 
4organization licensee's and inter-track wagering
licensee's 
5retention of the pari-mutuel
handle
for
the racing season. Each 
6inter-track wagering location licensee, from the
4% of its 
7handle required to be paid as purses under paragraph
(11) of

8subsection (h) of Section 26 of this Act, shall pay to the 
9contractually
established representative organization 2% of 
10that 4%, provided that the
payments so made to the organization 
11shall not exceed a total of $125,000 in
any calendar
year. Such 
12contract shall be negotiated and signed prior to
the beginning 
13of the racing season.

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





15 (230 ILCS 5/30) (from Ch. 8, par. 37-30)



16 Sec. 30. 
(a) The General Assembly declares that it is the 
17policy of
this State to encourage the breeding of thoroughbred 
18horses in this
State and the ownership of such horses by 
19residents of this State in
order to provide for: sufficient 
20numbers of high quality thoroughbred
horses to participate in 
21thoroughbred racing meetings in this State,
and to establish 
22and preserve the agricultural and commercial benefits
of such 
23breeding and racing industries to the State of Illinois. It is

24the intent of the General Assembly to further this policy by 
25the
provisions of this Act.

 
 
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1 (b) Each organization licensee conducting a thoroughbred

2racing meeting
pursuant to this Act shall provide at least two 
3races each day limited
to Illinois conceived and foaled horses 
4or Illinois foaled horses or
both. A minimum of 6 races shall 
5be conducted each week limited to
Illinois conceived and foaled 
6or Illinois foaled horses or both. No
horses shall be permitted 
7to start in such races unless duly registered
under the rules 
8of the Department of Agriculture.

9 (c) Conditions of races under subsection (b) shall be

10commensurate
with past performance, quality, and class of 
11Illinois conceived and foaled
and Illinois foaled horses

12available. If, however, sufficient competition cannot be had 
13among
horses of that class on any day, the races may, with 
14consent of the
Board, be eliminated for that day and substitute 
15races provided.

16 (d) There is hereby created a special fund of the State 
17Treasury to
be known as the Illinois Thoroughbred Breeders 
18Fund. 

19 Beginning on the effective date of this amendatory Act of 
20the 101st General Assembly, the Illinois Thoroughbred Breeders 
21Fund shall become a non-appropriated trust fund held separate 
22from State moneys. Expenditures from this Fund shall no longer 
23be subject to appropriation. 
24 Except as provided in subsection (g) of Section 27 of this 
25Act, 8.5% of all
the monies received by the State as
privilege 
26taxes on Thoroughbred racing meetings shall be paid into the 
 
 
10100SB0690ham003- 550 -LRB101 04451 SMS 61572 a


1Illinois
Thoroughbred Breeders Fund.

2 Notwithstanding any provision of law to the contrary, 
3amounts deposited into the Illinois Thoroughbred Breeders Fund 
4from revenues generated by gaming pursuant to an organization 
5gaming license issued under the Illinois Gambling Act after the 
6effective date of this amendatory Act of the 101st General 
7Assembly shall be in addition to tax and fee amounts paid under 
8this Section for calendar year 2019 and thereafter. 
9 (e) The Illinois Thoroughbred Breeders Fund shall be 
10administered by
the Department of Agriculture
with the advice 
11and assistance of the
Advisory Board created in subsection (f) 
12of this Section.

13 (f) The Illinois Thoroughbred Breeders Fund Advisory Board 
14shall
consist of the Director of the Department of Agriculture, 
15who shall
serve as Chairman; a member of the Illinois Racing 
16Board, designated by
it; 2 representatives of the organization 
17licensees
conducting thoroughbred
racing meetings, recommended 
18by them; 2 representatives of the Illinois
Thoroughbred 
19Breeders and Owners Foundation, recommended by it; one 
20representative and 2
representatives of the Horsemen's 
21Benevolent Protective Association; and one representative from 
22the Illinois Thoroughbred Horsemen's Association or any

23successor organization established in Illinois comprised of 
24the largest number
of owners and trainers,
recommended
by it, 
25with one representative of the Horsemen's Benevolent and 
26Protective
Association to come from its Illinois Division, and 
 
 
10100SB0690ham003- 551 -LRB101 04451 SMS 61572 a


1one from its Chicago
Division. Advisory Board members shall 
2serve for 2 years commencing January 1
of
each odd numbered 
3year. If representatives of the organization licensees

4conducting thoroughbred racing meetings, the Illinois 
5Thoroughbred Breeders and
Owners Foundation, and the 
6Horsemen's Benevolent Protection Association, and the Illinois 
7Thoroughbred Horsemen's Association have
not been recommended 
8by January 1, of each odd numbered year, the Director of
the 
9Department of Agriculture shall make an appointment for the 
10organization
failing to so recommend a member of the Advisory 
11Board. Advisory Board members
shall receive no compensation for 
12their services as members but shall be
reimbursed for all 
13actual and necessary expenses and disbursements incurred in
the 
14execution of their official duties.

15 (g) No monies shall be expended from the Illinois 
16Thoroughbred
Breeders Fund except as appropriated by the 
17General Assembly. Monies expended
appropriated from the 
18Illinois Thoroughbred Breeders Fund shall be
expended by the 
19Department of Agriculture,
with the advice and
assistance of 
20the Illinois Thoroughbred Breeders Fund Advisory Board,
for the 
21following purposes only:

22  (1) To provide purse supplements to owners of horses 
23 participating
in races limited to Illinois conceived and 
24 foaled and Illinois foaled
horses. Any such purse 
25 supplements shall not be included in and shall
be paid in 
26 addition to any purses, stakes, or breeders' awards offered

 
 
10100SB0690ham003- 552 -LRB101 04451 SMS 61572 a


1 by each organization licensee as determined by agreement 
2 between such
organization licensee and an organization 
3 representing the horsemen. No
monies from the Illinois 
4 Thoroughbred Breeders Fund shall be used to provide
purse 
5 supplements for claiming races in which the minimum 
6 claiming price is
less than $7,500.

7  (2) To provide stakes and awards to be paid to the 
8 owners of the
winning horses in certain races limited to 
9 Illinois conceived and foaled
and Illinois foaled horses 
10 designated as stakes races. 

11  (2.5) To provide an award to the owner or owners of an 
12 Illinois
conceived and foaled or Illinois foaled horse that 
13 wins a
maiden special weight, an allowance, overnight 
14 handicap race, or
claiming race with claiming price of 
15 $10,000 or more providing the race
is not restricted
to 
16 Illinois conceived and foaled or Illinois foaled horses.

17 Awards shall
also be provided to the owner or owners of 
18 Illinois conceived and foaled and
Illinois foaled horses 
19 that place second or third in those races. To the
extent

20 that additional moneys are required to pay the minimum 
21 additional awards of 40%
of the purse the horse earns for 
22 placing first, second or third in those races
for Illinois 
23 foaled horses and of 60% of the purse the horse earns for 
24 placing
first, second or third in those races for Illinois

25 conceived and foaled horses, those moneys shall be provided 
26 from the purse
account at the track where earned.

 
 
10100SB0690ham003- 553 -LRB101 04451 SMS 61572 a


1  (3) To provide stallion awards to the owner or owners 
2 of any
stallion that is duly registered with the Illinois 
3 Thoroughbred Breeders
Fund Program prior to the effective 
4 date of this amendatory Act of 1995 whose
duly registered 
5 Illinois conceived and foaled offspring wins a race 
6 conducted
at an Illinois
thoroughbred racing meeting other 
7 than a claiming race, provided that the stallion stood 
8 service within Illinois at the time the offspring was 
9 conceived and that the stallion did not stand for service 
10 outside of Illinois at any time during the year in which 
11 the offspring was conceived. Such
award
shall not be paid 
12 to the owner or owners of an Illinois stallion that served

13 outside this State at any time during the calendar year in 
14 which such race was
conducted.

15  (4) To provide $75,000 annually for purses to be

16 distributed to
county fairs that provide for the running of 
17 races during each county
fair exclusively for the 
18 thoroughbreds conceived and foaled in
Illinois. The 
19 conditions of the races shall be developed by the county

20 fair association and reviewed by the Department with the 
21 advice and
assistance of
the Illinois Thoroughbred 
22 Breeders Fund Advisory Board. There shall be no
wagering of 
23 any kind on the running
of
Illinois conceived and foaled 
24 races at county fairs.

25  (4.1) To provide purse money for an Illinois stallion 
26 stakes program.

 
 
10100SB0690ham003- 554 -LRB101 04451 SMS 61572 a


1  (5) No less than 90% 80% of all monies expended 
2 appropriated from the Illinois
Thoroughbred Breeders Fund 
3 shall be expended for the purposes in (1), (2),
(2.5), (3), 
4 (4), (4.1), and (5) as shown above.

5  (6) To provide for educational programs regarding the 
6 thoroughbred
breeding industry.

7  (7) To provide for research programs concerning the 
8 health,
development and care of the thoroughbred horse.

9  (8) To provide for a scholarship and training program 
10 for students
of equine veterinary medicine.

11  (9) To provide for dissemination of public information 
12 designed to
promote the breeding of thoroughbred horses in 
13 Illinois.

14  (10) To provide for all expenses incurred in the 
15 administration of
the Illinois Thoroughbred Breeders Fund.

16 (h) The Illinois Thoroughbred Breeders Fund is not subject 
17to administrative charges or chargebacks, including, but not 
18limited to, those authorized under Section 8h of the State 
19Finance Act. Whenever the Governor finds that the amount in the 
20Illinois
Thoroughbred Breeders Fund is more than the total of 
21the outstanding
appropriations from such fund, the Governor 
22shall notify the State
Comptroller and the State Treasurer of 
23such fact. The Comptroller and
the State Treasurer, upon 
24receipt of such notification, shall transfer
such excess amount 
25from the Illinois Thoroughbred Breeders Fund to the
General 
26Revenue Fund.

 
 
10100SB0690ham003- 555 -LRB101 04451 SMS 61572 a


1 (i) A sum equal to 13% of the first prize money of every 
2purse won by an Illinois foaled or Illinois conceived and 
3foaled horse in races not limited to Illinois foaled horses or 
4Illinois conceived and foaled horses, or both, shall be paid by 
5the organization licensee conducting the horse race meeting. 
6Such sum shall be paid 50% from the organization licensee's 
7share of the money wagered and 50% from the purse account as 
8follows: 11 1/2% to the breeder of the winning horse and 1 1/2% 
9to the organization representing thoroughbred breeders and 
10owners who representative serves on the Illinois Thoroughbred 
11Breeders Fund Advisory Board for verifying the amounts of 
12breeders' awards earned, ensuring their distribution in 
13accordance with this Act, and servicing and promoting the 
14Illinois thoroughbred horse racing industry. Beginning in the 
15calendar year in which an organization licensee that is 
16eligible to receive payments under paragraph (13) of subsection 
17(g) of Section 26 of this Act begins to receive funds from 
18gaming pursuant to an organization gaming license issued under 
19the Illinois Gambling Act, a sum equal to 21 1/2% of the first 
20prize money of every purse won by an Illinois foaled or an 
21Illinois conceived and foaled horse in races not limited to an 
22Illinois conceived and foaled horse, or both, shall be paid 30% 
23from the organization licensee's account and 70% from the purse 
24account as follows: 20% to the breeder of the winning horse and 
251 1/2% to the organization representing thoroughbred breeders 
26and owners whose representatives serve on the Illinois 
 
 
10100SB0690ham003- 556 -LRB101 04451 SMS 61572 a


1Thoroughbred Breeders Fund Advisory Board for verifying the 
2amounts of breeders' awards earned, ensuring their 
3distribution in accordance with this Act, and servicing and 
4promoting the Illinois Thoroughbred racing industry. A sum 
5equal to 12 1/2% of the first prize money of every purse
won by 
6an Illinois foaled or an Illinois conceived and foaled horse in

7races not limited to Illinois foaled horses or Illinois 
8conceived and
foaled horses, or both, shall be paid by the 
9organization licensee
conducting the horse race meeting. Such 
10sum shall be paid from the organization
licensee's share of the 
11money wagered as follows: 11 1/2% to the breeder of
the winning 
12horse and 1% to the organization representing thoroughbred 
13breeders
and owners whose representative serves on the Illinois 
14Thoroughbred Breeders
Fund Advisory Board for verifying the 
15amounts of breeders' awards earned,
assuring their 
16distribution in accordance with this Act, and servicing and

17promoting the Illinois thoroughbred horse racing industry. The

18organization representing thoroughbred breeders and owners 
19shall cause all
expenditures of monies received under this 
20subsection (i) to be audited
at least annually by a registered 
21public accountant. The organization
shall file copies of each 
22annual audit with the Racing Board, the Clerk of
the House of 
23Representatives and the Secretary of the Senate, and shall
make 
24copies of each annual audit available to the public upon 
25request
and upon payment of the reasonable cost of photocopying 
26the requested
number of copies. Such payments shall not reduce 
 
 
10100SB0690ham003- 557 -LRB101 04451 SMS 61572 a


1any award to the owner of the
horse or reduce the taxes payable 
2under this Act. Upon completion of its
racing meet, each 
3organization licensee shall deliver to the organization

4representing thoroughbred breeders and owners whose 
5representative serves on
the Illinois Thoroughbred Breeders 
6Fund Advisory Board a listing of all the
Illinois foaled and 
7the Illinois conceived and foaled horses which won
breeders' 
8awards and the amount of such breeders' awards under this 
9subsection
to verify accuracy of payments and assure proper 
10distribution of breeders'
awards in accordance with the 
11provisions of this Act. Such payments shall be
delivered by the 
12organization licensee within 30 days of the end of each race

13meeting.

14 (j) A sum equal to 13% of the first prize money won in 
15every race limited to Illinois foaled horses or Illinois 
16conceived and foaled horses, or both, shall be paid in the 
17following manner by the organization licensee conducting the 
18horse race meeting, 50% from the organization licensee's share 
19of the money wagered and 50% from the purse account as follows: 
2011 1/2% to the breeders of the horses in each such race which 
21are the official first, second, third, and fourth finishers and 
221 1/2% to the organization representing thoroughbred breeders 
23and owners whose representatives serve on the Illinois 
24Thoroughbred Breeders Fund Advisory Board for verifying the 
25amounts of breeders' awards earned, ensuring their proper 
26distribution in accordance with this Act, and servicing and 
 
 
10100SB0690ham003- 558 -LRB101 04451 SMS 61572 a


1promoting the Illinois horse racing industry. Beginning in the 
2calendar year in which an organization licensee that is 
3eligible to receive payments under paragraph (13) of subsection 
4(g) of Section 26 of this Act begins to receive funds from 
5gaming pursuant to an organization gaming license issued under 
6the Illinois Gambling Act, a sum of 21 1/2% of every purse in a 
7race limited to Illinois foaled horses or Illinois conceived 
8and foaled horses, or both, shall be paid by the organization 
9licensee conducting the horse race meeting. Such sum shall be 
10paid 30% from the organization licensee's account and 70% from 
11the purse account as follows: 20% to the breeders of the horses 
12in each such race who are official first, second, third and 
13fourth finishers and 1 1/2% to the organization representing 
14thoroughbred breeders and owners whose representatives serve 
15on the Illinois Thoroughbred Breeders Fund Advisory Board for 
16verifying the amounts of breeders' awards earned, ensuring 
17their proper distribution in accordance with this Act, and 
18servicing and promoting the Illinois thoroughbred horse racing 
19industry. The organization representing thoroughbred breeders 
20and owners shall cause all expenditures of moneys received 
21under this subsection (j) to be audited at least annually by a 
22registered public accountant. The organization shall file 
23copies of each annual audit with the Racing Board, the Clerk of 
24the House of Representatives and the Secretary of the Senate, 
25and shall make copies of each annual audit available to the 
26public upon request and upon payment of the reasonable cost of 
 
 
10100SB0690ham003- 559 -LRB101 04451 SMS 61572 a


1photocopying the requested number of copies. The copies of the 
2audit to the General Assembly shall be filed with the Clerk of 
3the House of Representatives and the Secretary of the Senate in 
4electronic form only, in the manner that the Clerk and the 
5Secretary shall direct. A sum equal to 12 1/2% of the first 
6prize money won in each race
limited to Illinois foaled horses 
7or Illinois conceived and foaled
horses, or both, shall be paid 
8in the following manner by the
organization licensee conducting 
9the horse race meeting, from the
organization licensee's share 
10of the money wagered: 11 1/2% to the breeders of
the horses in 
11each such race which are the official first, second, third
and 
12fourth finishers and 1% to the organization representing 
13thoroughbred
breeders and owners whose representative serves 
14on the Illinois Thoroughbred
Breeders Fund Advisory Board for 
15verifying the amounts of breeders' awards
earned, assuring 
16their proper distribution in accordance with this Act, and

17servicing and promoting the Illinois thoroughbred horse racing 
18industry. The
organization representing thoroughbred breeders 
19and owners shall cause all
expenditures of monies received 
20under this subsection (j) to be audited
at least annually by a 
21registered public accountant. The organization
shall file 
22copies of each annual audit with the Racing Board, the Clerk of

23the House of Representatives and the Secretary of the Senate, 
24and shall
make copies of each annual audit available to the 
25public upon request
and upon payment of the reasonable cost of 
26photocopying the requested
number of copies.

 
 
10100SB0690ham003- 560 -LRB101 04451 SMS 61572 a


1 The amounts 11 1/2% paid to the breeders in accordance with 
2this subsection
shall be distributed as follows:

3  (1) 60% of such sum shall be paid to the breeder of the 
4 horse which
finishes in the official first position;

5  (2) 20% of such sum shall be paid to the breeder of the 
6 horse which
finishes in the official second position;

7  (3) 15% of such sum shall be paid to the breeder of the 
8 horse which
finishes in the official third position; and

9  (4) 5% of such sum shall be paid to the breeder of the 
10 horse which
finishes in the official fourth position.

11 Such payments shall not reduce any award to the owners of a 
12horse or
reduce the taxes payable under this Act. Upon 
13completion of its racing meet,
each organization licensee shall 
14deliver to the organization representing
thoroughbred breeders 
15and owners whose representative serves on the Illinois

16Thoroughbred Breeders Fund Advisory Board a listing of all the 
17Illinois foaled
and the Illinois conceived and foaled horses 
18which won breeders' awards and the
amount of such breeders' 
19awards in accordance with the provisions of this Act.
Such 
20payments shall be delivered by the organization licensee within 
2130 days of
the end of each race meeting.

22 (k) The term "breeder", as used herein, means the owner of 
23the mare at
the time the foal is dropped. An "Illinois foaled 
24horse" is a foal
dropped by a mare which enters this State on 
25or before December 1, in the
year in which the horse is bred,

26provided the mare remains continuously in this State until its 
 
 
10100SB0690ham003- 561 -LRB101 04451 SMS 61572 a


1foal is born. An
"Illinois
foaled
horse" also means a foal born 
2of a mare in the same year
as the
mare enters this State on or 
3before March 1,
and remains in this State at
least 30
days 
4after foaling, is bred back during the season of the foaling to

5an
Illinois Registered Stallion (unless a veterinarian 
6certifies that the mare
should not be bred for health reasons), 
7and is not bred to a stallion
standing in any other state 
8during the season of foaling. An "Illinois
foaled horse" also 
9means a foal born in Illinois of a mare purchased at public

10auction
subsequent to the mare entering this State on or before 
11March 1 prior to February 1 of the foaling
year providing the 
12mare is owned solely by one or more Illinois residents or an

13Illinois
entity that is entirely owned by one or more Illinois 
14residents. 

15 (l) The Department of Agriculture shall, by rule, with the 
16advice
and assistance of the Illinois Thoroughbred Breeders 
17Fund Advisory
Board:

18  (1) Qualify stallions for Illinois breeding; such 
19 stallions to stand for
service within the State of Illinois 
20 at the time of a foal's conception. Such
stallion must not 
21 stand for service at any place outside the State of 
22 Illinois
during the calendar year in which the foal is 
23 conceived.
The Department of Agriculture may assess and 
24 collect an application fee of up to $500 fees for the

25 registration of Illinois-eligible stallions. All fees 
26 collected are to be held in trust accounts for the purposes 
 
 
10100SB0690ham003- 562 -LRB101 04451 SMS 61572 a


1 set forth in this Act and in accordance with Section 205-15 
2 of the Department of Agriculture Law paid
into the Illinois 
3 Thoroughbred Breeders Fund.

4  (2) Provide for the registration of Illinois conceived 
5 and foaled
horses and Illinois foaled horses. No such horse 
6 shall compete in
the races limited to Illinois conceived 
7 and foaled horses or Illinois
foaled horses or both unless 
8 registered with the Department of
Agriculture. The 
9 Department of Agriculture may prescribe such forms as
are 
10 necessary to determine the eligibility of such horses. The 
11 Department of
Agriculture may assess and collect 
12 application fees for the registration of
Illinois-eligible 
13 foals. All fees collected are to be held in trust accounts 
14 for the purposes set forth in this Act and in accordance 
15 with Section 205-15 of the Department of Agriculture Law 
16 paid into the Illinois
Thoroughbred Breeders Fund. No 
17 person
shall knowingly prepare or cause preparation of an 
18 application for
registration of such foals containing 
19 false information.

20 (m) The Department of Agriculture, with the advice and 
21assistance of
the Illinois Thoroughbred Breeders Fund Advisory 
22Board, shall provide that certain races
limited to Illinois 
23conceived and foaled and Illinois foaled horses be
stakes races 
24and determine the total amount of stakes and awards to be paid

25to the owners of the winning horses in such races.

26 In determining the stakes races and the amount of awards 
 
 
10100SB0690ham003- 563 -LRB101 04451 SMS 61572 a


1for such races,
the Department of Agriculture shall consider 
2factors, including but not
limited to, the amount of money 
3appropriated for the Illinois Thoroughbred
Breeders Fund 
4program, organization licensees' contributions,
availability 
5of stakes caliber horses as demonstrated by past performances,

6whether the race can be coordinated into the proposed racing 
7dates within
organization licensees' racing dates, opportunity 
8for
colts and fillies
and various age groups to race, public 
9wagering on such races, and the
previous racing schedule.

10 (n) The Board and the organization organizational licensee 
11shall
notify the Department of the conditions and minimum 
12purses for races
limited to Illinois conceived and foaled and 
13Illinois foaled horses
conducted for each organization 
14organizational licensee conducting a thoroughbred racing

15meeting. The Department of Agriculture with the advice and 
16assistance of
the Illinois Thoroughbred Breeders Fund Advisory 
17Board may allocate monies
for purse supplements for such races. 
18In determining whether to allocate
money and the amount, the 
19Department of Agriculture shall consider factors,
including 
20but not limited to, the amount of money appropriated for the

21Illinois Thoroughbred Breeders Fund program, the number of 
22races that may
occur, and the organization organizational 
23licensee's purse structure.

24 (o) (Blank).

25(Source: P.A. 98-692, eff. 7-1-14.)





 
 
10100SB0690ham003- 564 -LRB101 04451 SMS 61572 a


1 (230 ILCS 5/30.5)



2 Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund. 

3 (a) The General Assembly declares that it is the policy of 
4this State to
encourage the breeding of racing quarter horses 
5in this State and the ownership
of such horses by residents of 
6this State in order to provide for sufficient
numbers of high 
7quality racing quarter horses in this State and to establish

8and
preserve the agricultural and commercial benefits of such 
9breeding and racing
industries to the State of Illinois. It is 
10the intent of the General Assembly
to
further this policy by 
11the provisions of this Act.

12 (b) There is hereby created a special fund in the State 
13Treasury to be
known as the Illinois Racing Quarter Horse 
14Breeders Fund. Except as provided
in
subsection (g) of Section 
1527 of this Act, 8.5% of all the moneys received by
the
State as 
16pari-mutuel taxes on quarter horse racing shall be paid into 
17the
Illinois
Racing Quarter Horse Breeders Fund. The Illinois 
18Racing Quarter Horse Breeders Fund shall not be subject to 
19administrative charges or chargebacks, including, but not

20limited to, those authorized under Section 8h of the State 
21Finance Act.

22 (c) The Illinois Racing Quarter Horse Breeders Fund shall 
23be administered
by the Department of Agriculture with the 
24advice and assistance of the Advisory
Board created in 
25subsection (d) of this Section.

26 (d) The Illinois Racing Quarter Horse Breeders Fund 
 
 
10100SB0690ham003- 565 -LRB101 04451 SMS 61572 a


1Advisory Board shall
consist of the Director of the Department 
2of Agriculture, who shall serve as
Chairman; a member of the 
3Illinois Racing Board, designated by it; one
representative of 
4the organization licensees conducting pari-mutuel
quarter 
5horse racing meetings,
recommended by them; 2 representatives 
6of the Illinois Running Quarter Horse
Association, recommended 
7by it; and the Superintendent of Fairs and Promotions
from the 
8Department of Agriculture. Advisory Board members shall serve 
9for 2
years commencing January 1 of each odd numbered year. If 
10representatives have
not
been recommended by January 1 of each 
11odd numbered year, the Director of the
Department of 
12Agriculture may make an appointment for the organization 
13failing
to
so recommend a member of the Advisory Board. 
14Advisory Board members shall
receive
no compensation for their 
15services as members but may be reimbursed for all
actual and 
16necessary expenses and disbursements incurred in the execution 
17of
their official duties.

18 (e) Moneys in No moneys shall be expended from the Illinois 
19Racing Quarter Horse
Breeders Fund except as appropriated by 
20the General Assembly. Moneys
appropriated
from the Illinois 
21Racing Quarter Horse Breeders Fund shall be expended by the

22Department of Agriculture, with the advice and assistance of 
23the Illinois
Racing
Quarter Horse Breeders Fund Advisory Board, 
24for the following purposes only:


25  (1) To provide stakes and awards to be paid to the

26 owners of the winning horses in certain races. This 
 
 
10100SB0690ham003- 566 -LRB101 04451 SMS 61572 a


1 provision
is limited to Illinois conceived and foaled 
2 horses.


3  (2) To provide an award to the owner or owners of an 
4 Illinois
conceived and foaled horse that wins a race when 
5 pari-mutuel wagering is
conducted; providing the race is 
6 not restricted to Illinois conceived and
foaled horses.


7  (3) To provide purse money for an Illinois stallion 
8 stakes program.


9  (4) To provide for purses to be distributed for the 
10 running of races
during the Illinois State Fair and the 
11 DuQuoin State Fair exclusively for
quarter horses 
12 conceived and foaled in Illinois.


13  (5) To provide for purses to be distributed for the 
14 running of races
at Illinois county fairs exclusively for 
15 quarter horses conceived and foaled
in Illinois.


16  (6) To provide for purses to be distributed for running 
17 races
exclusively for quarter horses conceived and foaled 
18 in Illinois at locations
in Illinois determined by the 
19 Department of Agriculture with advice and
consent of the 
20 Illinois Racing Quarter Horse Breeders Fund Advisory 
21 Board.


22  (7) No less than 90% of all moneys appropriated from 
23 the Illinois
Racing Quarter Horse Breeders Fund shall be 
24 expended for the purposes in
items (1), (2), (3), (4), and 
25 (5) of this subsection (e).


26  (8) To provide for research programs concerning the 
 
 
10100SB0690ham003- 567 -LRB101 04451 SMS 61572 a


1 health,
development, and care of racing quarter horses.


2  (9) To provide for dissemination of public information 
3 designed to
promote the breeding of racing quarter horses 
4 in Illinois.


5  (10) To provide for expenses incurred in the 
6 administration of the
Illinois Racing Quarter Horse 
7 Breeders Fund.

8 (f) The Department of Agriculture shall, by rule, with the 
9advice and
assistance of the Illinois Racing Quarter Horse 
10Breeders Fund Advisory Board:


11  (1) Qualify stallions for Illinois breeding; such 
12 stallions to stand
for service within the State of 
13 Illinois, at the time of a foal's
conception. Such stallion 
14 must not stand for service at any place outside
the State 
15 of Illinois during the calendar year in which the foal is

16 conceived. The Department of Agriculture may assess and 
17 collect application
fees for the registration of 
18 Illinois-eligible stallions. All fees collected
are to be 
19 paid into the Illinois Racing Quarter Horse Breeders Fund.


20  (2) Provide for the registration of Illinois conceived 
21 and foaled
horses. No such horse shall compete in the races 
22 limited to Illinois
conceived and foaled horses unless it 
23 is registered with the Department of
Agriculture. The 
24 Department of Agriculture may prescribe such forms as are

25 necessary to determine the eligibility of such horses. The 
26 Department of
Agriculture may assess and collect 
 
 
10100SB0690ham003- 568 -LRB101 04451 SMS 61572 a


1 application fees for the registration of
Illinois-eligible 
2 foals. All fees collected are to be paid into the Illinois

3 Racing Quarter Horse Breeders Fund. No person shall 
4 knowingly prepare or
cause preparation of an application 
5 for registration of such foals that
contains false 
6 information.

7 (g) The Department of Agriculture, with the advice and 
8assistance of the
Illinois Racing Quarter Horse Breeders Fund 
9Advisory Board, shall provide that
certain races limited to 
10Illinois conceived and foaled be stakes races and
determine the 
11total amount of stakes and awards to be paid to the owners of 
12the
winning horses in such races.

13(Source: P.A. 98-463, eff. 8-16-13.)





14 (230 ILCS 5/31) (from Ch. 8, par. 37-31)



15 Sec. 31. 
(a) The General Assembly declares that it is the 
16policy of
this State to encourage the breeding of standardbred 
17horses in this
State and the ownership of such horses by 
18residents of this State in
order to provide for: sufficient 
19numbers of high quality standardbred
horses to participate in 
20harness racing meetings in this State, and to
establish and 
21preserve the agricultural and commercial benefits of such

22breeding and racing industries to the State of Illinois. It is 
23the
intent of the General Assembly to further this policy by 
24the provisions
of this Section of this Act.

25 (b) Each organization licensee conducting a harness
racing 
 
 
10100SB0690ham003- 569 -LRB101 04451 SMS 61572 a


1meeting pursuant to this Act shall provide for at least two 
2races each
race program limited to
Illinois conceived and 
3foaled horses. A minimum of 6 races shall be
conducted each 
4week limited to Illinois conceived and foaled horses. No
horses 
5shall be permitted to start in such races unless duly 
6registered
under the rules of the Department of Agriculture.

7 (b-5) Organization licensees, not including the Illinois 
8State Fair or the DuQuoin State Fair, shall provide stake races 
9and early closer races for Illinois conceived and foaled horses 
10so that purses distributed for such races shall be no less than 
1117% of total purses distributed for harness racing in that 
12calendar year in addition to any stakes payments and starting 
13fees contributed by horse owners. 
14 (b-10) Each organization licensee conducting a harness 
15racing meeting
pursuant to this Act shall provide an owner 
16award to be paid from the purse
account equal to 12% of the 
17amount earned by Illinois conceived and foaled
horses finishing 
18in the first 3 positions in races that are not restricted to 
19Illinois conceived and foaled
horses. The owner awards shall 
20not be paid on races below the $10,000 claiming class. 
21 (c) Conditions of races under subsection (b) shall be 
22commensurate
with past performance, quality and class of 
23Illinois conceived and
foaled horses available. If, however, 
24sufficient competition cannot be
had among horses of that class 
25on any day, the races may, with consent
of the Board, be 
26eliminated for that day and substitute races provided.

 
 
10100SB0690ham003- 570 -LRB101 04451 SMS 61572 a


1 (d) There is hereby created a special fund of the State 
2Treasury to
be known as the Illinois Standardbred Breeders 
3Fund. Beginning on the effective date of this amendatory Act of 
4the 101st General Assembly, the Illinois Standardbred Breeders 
5Fund shall become a non-appropriated trust fund held separate 
6and apart from State moneys. Expenditures from this Fund shall 
7no longer be subject to appropriation. 

8 During the calendar year 1981, and each year thereafter, 
9except as provided
in subsection (g) of Section 27 of this Act, 
10eight and one-half
per cent of all the monies received by the 
11State as privilege taxes on
harness racing meetings shall be 
12paid into the Illinois Standardbred
Breeders Fund.

13 (e) Notwithstanding any provision of law to the contrary, 
14amounts deposited into the Illinois Standardbred Breeders Fund 
15from revenues generated by gaming pursuant to an organization 
16gaming license issued under the Illinois Gambling Act after the 
17effective date of this amendatory Act of the 101st General 
18Assembly shall be in addition to tax and fee amounts paid under 
19this Section for calendar year 2019 and thereafter. The 
20Illinois Standardbred Breeders Fund shall be administered by

21the Department of Agriculture with the assistance and advice of 
22the
Advisory Board created in subsection (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 
 
 
10100SB0690ham003- 571 -LRB101 04451 SMS 61572 a


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 
 
 
10100SB0690ham003- 572 -LRB101 04451 SMS 61572 a


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 expended
appropriated from the 
10Illinois Standardbred Breeders Fund shall be
expended by the 
11Department of Agriculture, with the assistance and
advice of 
12the Illinois Standardbred Breeders Fund Advisory Board for the

13following purposes 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 
 
 
10100SB0690ham003- 573 -LRB101 04451 SMS 61572 a


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) The Illinois Standardbred Breeders Fund is not subject 
22to administrative charges or chargebacks, including, but not 
23limited to, those authorized under Section 8h of the State 
24Finance Act. Whenever the Governor finds that the amount in the 
25Illinois
Standardbred Breeders Fund is more than the total of 
26the outstanding
appropriations from such fund, the Governor 
 
 
10100SB0690ham003- 574 -LRB101 04451 SMS 61572 a


1shall notify the State
Comptroller and the State Treasurer of 
2such fact. The Comptroller and
the State Treasurer, upon 
3receipt of such notification, shall transfer
such excess amount 
4from the Illinois Standardbred Breeders Fund to the
General 
5Revenue Fund.

6 (i) A sum equal to 13% 12 1/2% of the first prize money of 
7the gross every purse
won by an Illinois conceived and foaled 
8horse shall be paid 50% by the
organization licensee conducting 
9the horse race meeting to the breeder
of such winning horse 
10from the organization licensee's account and 50% from the purse 
11account of the licensee share of the
money wagered.
Such 
12payment
shall not reduce any award to the owner of
the horse or 
13reduce the taxes payable under this Act. Such payment
shall be 
14delivered by the organization licensee at the end of each 
15quarter race
meeting.

16 (j) The Department of Agriculture shall, by rule, with the

17assistance and advice of the Illinois Standardbred Breeders 
18Fund
Advisory Board:

19  1. Qualify stallions for Illinois Standardbred 
20 Breeders Fund breeding; such stallion
shall be owned by a 
21 resident of the State of Illinois or by an Illinois

22 corporation all of whose shareholders, directors, officers 
23 and
incorporators are residents of the State of Illinois. 
24 Such stallion shall
stand for
service at and within the 
25 State of Illinois at the time of a foal's
conception, and 
26 such stallion must not stand for service at any place, nor

 
 
10100SB0690ham003- 575 -LRB101 04451 SMS 61572 a


1 may semen from such stallion be transported,
outside the 
2 State of Illinois during that calendar year in which the

3 foal is conceived and that the owner of the stallion was 
4 for the
12
months prior, a resident of Illinois. However, 
5 from January 1, 2018 until January 1, 2022, semen from an 
6 Illinois stallion may be transported outside the State of 
7 Illinois.
The articles of agreement of any partnership, 
8 joint venture, limited
partnership, syndicate, association 
9 or corporation and any bylaws and stock
certificates must 
10 contain a restriction that provides that the ownership or

11 transfer of interest by any one of the persons a party to 
12 the agreement can
only be made to a person who qualifies as 
13 an Illinois resident.

14  2. Provide for the registration of Illinois conceived 
15 and foaled
horses and no such horse shall compete in the 
16 races limited to Illinois
conceived and foaled horses 
17 unless registered with the Department of
Agriculture. The 
18 Department of Agriculture may prescribe such forms as
may 
19 be necessary to determine the eligibility of such horses. 
20 No person
shall knowingly prepare or cause preparation of 
21 an application for
registration of such foals containing 
22 false information.
A mare (dam) must be in the State at 
23 least 30 days prior to foaling or
remain in the State at 
24 least 30 days at the time of foaling. However, the 
25 requirement that a mare (dam) must be in the State at least 
26 30 days before foaling or remain in the State at least 30 
 
 
10100SB0690ham003- 576 -LRB101 04451 SMS 61572 a


1 days at the time of foaling shall not be in effect from 
2 January 1, 2018 until January 1, 2022.
Beginning with the 
3 1996 breeding season and for foals of 1997 and thereafter,

4 a foal conceived by transported semen may be eligible for 
5 Illinois
conceived and foaled registration provided all 
6 breeding and foaling
requirements are met. The stallion 
7 must be qualified for Illinois Standardbred
Breeders Fund 
8 breeding at the time of conception and the mare must be

9 inseminated within the State of Illinois. The foal must be 
10 dropped in Illinois
and properly registered with the 
11 Department of Agriculture in accordance with
this Act. 
12 However, from January 1, 2018 until January 1, 2022, the 
13 requirement for a mare to be inseminated within the State 
14 of Illinois and the requirement for a foal to be dropped in 
15 Illinois are inapplicable. 

16  3. Provide that at least a 5 day racing program shall 
17 be conducted
at the State Fair each year, which program 
18 shall include at least the
following races limited to 
19 Illinois conceived and foaled horses: (a) a
two year old 
20 Trot and Pace, and Filly Division of each; (b) a three
year 
21 old Trot and Pace, and Filly Division of each; (c) an aged 
22 Trot and Pace,
and Mare Division of each.

23  4. Provide for the payment of nominating, sustaining 
24 and starting
fees for races promoting the sport of harness 
25 racing and for the races
to be conducted at the State Fair 
26 as provided in
subsection (j) 3 of this Section provided 
 
 
10100SB0690ham003- 577 -LRB101 04451 SMS 61572 a


1 that the nominating,
sustaining and starting payment 
2 required from an entrant shall not
exceed 2% of the purse 
3 of such race. All nominating, sustaining and
starting 
4 payments shall be held for the benefit of entrants and 
5 shall be
paid out as part of the respective purses for such 
6 races.
Nominating, sustaining and starting fees shall be 
7 held in trust accounts
for the purposes as set forth in 
8 this Act and in accordance with Section
205-15 of the 
9 Department of Agriculture Law (20 ILCS
205/205-15).

10  5. Provide for the registration with the Department of 
11 Agriculture
of Colt Associations or county fairs desiring 
12 to sponsor races at county
fairs.

13  6. Provide for the promotion of producing standardbred 
14 racehorses by providing a bonus award program for owners of 
15 2-year-old horses that win multiple major stakes races that 
16 are limited to Illinois conceived and foaled horses. 
17 (k) The Department of Agriculture, with the advice and 
18assistance of the
Illinois
Standardbred Breeders Fund Advisory 
19Board, may allocate monies for purse
supplements for such 
20races. In determining whether to allocate money and
the amount, 
21the Department
of Agriculture shall consider factors, 
22including but not limited to, the
amount of money appropriated 
23for the Illinois Standardbred Breeders Fund
program, the number 
24of races that may occur, and an organization organizational

25licensee's purse structure. The organization organizational 
26licensee shall notify the
Department of Agriculture of the 
 
 
10100SB0690ham003- 578 -LRB101 04451 SMS 61572 a


1conditions and minimum purses for races
limited to Illinois 
2conceived and foaled horses to be conducted by each 
3organization
organizational licensee conducting a harness 
4racing meeting for which purse
supplements have been 
5negotiated.

6 (l) All races held at county fairs and the State Fair which 
7receive funds
from the Illinois Standardbred Breeders Fund 
8shall be conducted in
accordance with the rules of the United 
9States Trotting Association unless
otherwise modified by the 
10Department of Agriculture.

11 (m) At all standardbred race meetings held or conducted 
12under authority of a
license granted by the Board, and at all 
13standardbred races held at county
fairs which are approved by 
14the Department of Agriculture or at the
Illinois or DuQuoin 
15State Fairs, no one shall jog, train, warm up or drive
a 
16standardbred horse unless he or she is wearing a protective 
17safety helmet,
with the
chin strap fastened and in place, which 
18meets the standards and
requirements as set forth in the 1984 
19Standard for Protective Headgear for
Use in Harness Racing and 
20Other Equestrian Sports published by the Snell
Memorial 
21Foundation, or any standards and requirements for headgear the

22Illinois Racing Board may approve. Any other standards and 
23requirements so
approved by the Board shall equal or exceed 
24those published by the Snell
Memorial Foundation. Any 
25equestrian helmet bearing the Snell label shall
be deemed to 
26have met those standards and requirements.

 
 
10100SB0690ham003- 579 -LRB101 04451 SMS 61572 a


1(Source: P.A. 99-756, eff. 8-12-16; 100-777, eff. 8-10-18.)





2 (230 ILCS 5/31.1) (from Ch. 8, par. 37-31.1)



3 Sec. 31.1. 
(a) Unless subsection (a-5) applies, 
4organization Organization licensees
collectively shall 
5contribute annually to charity the sum of
$750,000
to 
6non-profit organizations that provide medical and family, 
7counseling,
and similar services to persons who reside or work 
8on the backstretch of
Illinois racetracks.
Unless subsection 
9(a-5) applies, these These contributions shall be collected as 
10follows: (i) no later than July
1st of each year the Board 
11shall assess each organization licensee, except
those tracks 
12located in Madison County, which are not within 100 miles of 
13each other which tracks
shall pay $30,000 annually apiece into 
14the Board charity fund, that amount
which equals $690,000 
15multiplied by the amount of pari-mutuel wagering
handled by the 
16organization licensee in the year preceding assessment and

17divided by the total pari-mutuel wagering handled by all 
18Illinois
organization licensees, except those tracks located 
19in Madison and Rock Island counties which are not within 100 
20miles of
each other, in the year preceding assessment; (ii) 
21notice of
the assessed contribution shall be mailed to each 
22organization licensee;
(iii) within thirty days of its receipt 
23of such notice, each organization
licensee shall remit the 
24assessed contribution to the Board. Unless subsection (a-5) 
25applies, if an organization licensee commences operation of 
 
 
10100SB0690ham003- 580 -LRB101 04451 SMS 61572 a


1gaming at its facility pursuant to an organization gaming 
2license under the Illinois Gambling Act, then the organization 
3licensee shall contribute an additional $83,000 per year 
4beginning in the year subsequent to the first year in which the 
5organization licensee begins receiving funds from gaming 
6pursuant to an organization gaming license. If an
organization 
7licensee wilfully fails to so remit the contribution, the
Board 
8may revoke its license to conduct horse racing.

9 (a-5) If (1) an organization licensee that did not operate 
10live racing in 2017 is awarded racing dates in 2018 or in any 
11subsequent year and (2) all organization licensees are 
12operating gaming pursuant to an organization gaming license 
13under the Illinois Gambling Act, then subsection (a) does not 
14apply and organization licensees collectively shall contribute 
15annually to charity the sum of $1,000,000 to non-profit 
16organizations that provide medical and family, counseling, and 
17similar services to persons who reside or work on the 
18backstretch of Illinois racetracks. These contributions shall 
19be collected as follows: (i) no later than July 1st of each 
20year the Board shall assess each organization licensee an 
21amount based on the proportionate amount of live racing days in 
22the calendar year for which the Board has awarded to the 
23organization licensee out of the total aggregate number of live 
24racing days awarded; (ii) notice of the assessed contribution 
25shall be mailed to each organization licensee; (iii) within 30 
26days after its receipt of such notice, each organization 
 
 
10100SB0690ham003- 581 -LRB101 04451 SMS 61572 a


1licensee shall remit the assessed contribution to the Board. If 
2an organization licensee willfully fails to so remit the 
3contribution, the Board may revoke its license to conduct horse 
4racing. 
5 (b) No later than October 1st of each year, any
qualified 
6charitable organization seeking an allotment of
contributed 
7funds shall
submit to the Board an application for those funds, 
8using the
Board's approved
form. No later than December 31st of 
9each year, the Board shall
distribute all such amounts 
10collected that year to such charitable
organization 
11applicants. 

12(Source: P.A. 87-110.)





13 (230 ILCS 5/32.1)



14 Sec. 32.1. Pari-mutuel tax credit; statewide racetrack 
15real estate
equalization.

16 (a) In order to encourage new investment in Illinois 
17racetrack facilities and
mitigate differing real estate tax 
18burdens among all racetracks, the licensees
affiliated or 
19associated with each racetrack that has been awarded live 
20racing
dates in the current year shall receive an immediate 
21pari-mutuel tax credit in
an amount equal to the greater of (i) 
2250% of the amount of the real estate
taxes paid in the prior 
23year attributable to that racetrack, or (ii) the amount
by 
24which the real estate taxes paid in the prior year attributable 
25to that
racetrack exceeds 60% of the average real estate taxes 
 
 
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1paid in the prior year
for all racetracks awarded live horse 
2racing meets in the current year.

3 Each year, regardless of whether the organization licensee 
4conducted live
racing in the year of certification, the
Board 
5shall certify in writing, prior to December 31, the real
estate 
6taxes paid in that year for each racetrack and the amount of 
7the
pari-mutuel tax credit that each organization licensee, 
8inter-track wagering
licensee, and inter-track wagering 
9location licensee that derives its license
from such racetrack 
10is entitled in the succeeding calendar year. The real
estate 
11taxes considered under this Section
for any racetrack shall be 
12those taxes on the real estate parcels and related
facilities 
13used to conduct a horse race meeting and inter-track wagering 
14at
such
racetrack under this Act.
In no event shall the amount 
15of the tax credit under this Section exceed the
amount of 
16pari-mutuel taxes otherwise calculated under this Act.
The 
17amount of the tax credit under this Section
shall be retained 
18by each licensee and shall not be subject to any reallocation

19or further distribution under this Act. The Board may 
20promulgate emergency
rules to implement this Section.

21 (b) If the organization licensee is operating gaming 
22pursuant to an organization gaming license issued under the 
23Illinois Gambling Act, except the organization licensee 
24described in Section 19.5, then, for the 5-year period 
25beginning on the January 1 of the calendar year immediately 
26following the calendar year during which an organization 
 
 
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1licensee begins conducting gaming operations pursuant to an 
2organization gaming license issued under the Illinois Gambling 
3Act, the organization licensee shall make capital 
4expenditures, in an amount equal to no less than 50% of the tax 
5credit under this Section, to the improvement and maintenance 
6of the backstretch, including, but not limited to, backstretch 
7barns, dormitories, and services for backstretch workers. 
8Those capital expenditures must be in addition to, and not in 
9lieu of, the capital expenditures made for backstretch 
10improvements in calendar year 2015, as reported to the Board in 
11the organization licensee's application for racing dates and as 
12certified by the Board. The organization licensee is required 
13to annually submit the list and amounts of these capital 
14expenditures to the Board by January 30th of the year following 
15the expenditure. 
16 (c) If the organization licensee is conducting gaming in 
17accordance with paragraph (b), then, after the 5-year period 
18beginning on January 1 of the calendar year immediately 
19following the calendar year during which an organization 
20licensee begins conducting gaming operations pursuant to an 
21organization gaming license issued under the Illinois Gambling 
22Act, the organization license is ineligible to receive a tax 
23credit under this Section.
24(Source: P.A. 100-201, eff. 8-18-17.)


25 (230 ILCS 5/34.3 new)
 
 
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1 Sec. 34.3. Drug testing. The Illinois Racing Board and the 
2Department of Agriculture shall jointly establish a program for 
3the purpose of conducting drug testing of horses at county 
4fairs and shall adopt any rules necessary for enforcement of 
5the program. The rules shall include appropriate penalties for 
6violations.




7 (230 ILCS 5/36)
 (from Ch. 8, par. 37-36)



8 Sec. 36. (a) Whoever administers or conspires to administer 
9to
any horse a hypnotic, narcotic, stimulant, depressant or any 
10chemical
substance which may affect the speed of a horse at any 
11time in any race
where the purse or any part of the purse is 
12made of money authorized by any
Section of this Act, except 
13those chemical substances permitted by ruling of
the Board, 
14internally, externally or by hypodermic method in a race or 
15prior
thereto, or whoever knowingly enters a horse in any race 
16within a period of 24
hours after any hypnotic, narcotic, 
17stimulant, depressant or any other chemical
substance which may 
18affect the speed of a horse at any time, except those
chemical 
19substances permitted by ruling of the Board, has been 
20administered to
such horse either internally or externally or 
21by hypodermic method for the
purpose of increasing or retarding 
22the speed of such horse shall be guilty of a
Class 4 felony. 
23The Board shall suspend or revoke such violator's license.

24 (b) The term "hypnotic" as used in this Section includes 
25all barbituric
acid preparations and derivatives.

 
 
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1 (c) The term "narcotic" as used in this Section includes 
2opium and
all its alkaloids, salts, preparations and 
3derivatives, cocaine
and all its salts, preparations and 
4derivatives and substitutes.

5 (d) The provisions of this Section and the treatment 
6authorized in this Section
apply to horses entered in and 
7competing in race meetings as defined in
Section 3.07 of this 
8Act and to horses entered in and competing at any county
fair.

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




10 (230 ILCS 5/40) (from Ch. 8, par. 37-40)



11 Sec. 40. 
(a) The imposition of any fine or penalty provided 
12in this Act
shall not preclude the Board in its rules and 
13regulations from imposing a
fine or penalty for any other 
14action which, in the Board's discretion, is a
detriment or 
15impediment to horse racing.

16 (b) The Director of Agriculture or his or her authorized 
17representative
shall impose the following monetary penalties 
18and hold administrative
hearings as required for failure to 
19submit the following applications,
lists, or reports within the 
20time period, date or manner required by
statute or rule or for 
21removing a foal from Illinois prior to inspection:

22  (1) late filing of a renewal application for offering 
23 or standing
stallion for service:

24   (A) if an application is submitted no more than 30 
25 days late, $50;

 
 
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1   (B) if an application is submitted no more than 45 
2 days late, $150; or

3   (C) if an application is submitted more than 45 
4 days late, if filing
of the application is allowed 
5 under an administrative hearing, $250;

6  (2) late filing of list or report of mares bred:

7   (A) if a list or report is submitted no more than 
8 30 days late, $50;

9   (B) if a list or report is submitted no more than 
10 60 days late, $150; or

11   (C) if a list or report is submitted more than 60 
12 days late, if filing
of the list or report is allowed 
13 under an administrative hearing, $250;

14  (3) filing an Illinois foaled thoroughbred mare status 
15 report after the statutory deadline as provided in 
16 subsection (k) of Section 30 of this Act
December 31:

17   (A) if a report is submitted no more than 30 days 
18 late, $50;

19   (B) if a report is submitted no more than 90 days 
20 late, $150;

21   (C) if a report is submitted no more than 150 days 
22 late, $250; or

23   (D) if a report is submitted more than 150 days 
24 late, if filing of
the report is allowed under an 
25 administrative hearing, $500;

26  (4) late filing of application for foal eligibility 
 
 
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1 certificate:

2   (A) if an application is submitted no more than 30 
3 days late, $50;

4   (B) if an application is submitted no more than 90 
5 days late, $150;

6   (C) if an application is submitted no more than 150 
7 days late, $250; or

8   (D) if an application is submitted more than 150 
9 days late, if
filing of the application is allowed 
10 under an administrative hearing, $500;

11  (5) failure to report the intent to remove a foal from 
12 Illinois prior
to inspection, identification and 
13 certification by a Department of
Agriculture investigator, 
14 $50; and

15  (6) if a list or report of mares bred is incomplete, 
16 $50 per mare not
included on the list or report.

17 Any person upon whom monetary penalties are imposed under 
18this Section 3
times within a 5-year period shall have any 
19further monetary penalties
imposed at double the amounts set 
20forth above. All monies assessed and
collected for violations 
21relating to thoroughbreds shall be paid into the
Illinois 
22Thoroughbred Breeders Fund. All monies assessed and collected 
23for
violations relating to standardbreds shall be paid into the 
24Illinois Standardbred
Breeders Fund.

25(Source: P.A. 99-933, eff. 1-27-17; 100-201, eff. 8-18-17.)


 
 
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1 (230 ILCS 5/54.75)

2 Sec. 54.75. Horse Racing Equity Trust Fund.
3 (a) There is created a Fund to be known as the Horse
Racing

4Equity Trust Fund, which is a non-appropriated trust fund held 
5separate and apart from State moneys. The Fund shall consist of 
6moneys paid into it by owners licensees under
the Illinois 
7Riverboat Gambling Act for the purposes described in this 
8Section. The Fund shall
be administered
by the Board. Moneys in 
9the Fund shall be distributed as directed and certified by the 
10Board in accordance with the provisions of subsection (b).
11 (b) The moneys deposited into the Fund, plus any accrued 
12interest on those moneys, shall be distributed
within 10 days 
13after those moneys are deposited into the Fund as follows: 
14  (1) Sixty percent of all moneys distributed under this 
15 subsection shall be
distributed to organization licensees 
16 to be distributed at their race
meetings as purses. 
17 Fifty-seven percent of the amount distributed under this

18 paragraph (1) shall be distributed for thoroughbred race 
19 meetings and
43% shall be distributed for standardbred race 
20 meetings. Within each
breed, moneys shall be allocated to 
21 each organization licensee's purse
fund in accordance with 
22 the ratio between the purses generated for that
breed by 
23 that licensee during the prior calendar year and the total 
24 purses
generated throughout the State for that breed during 
25 the prior calendar
year by licensees in the current 
26 calendar year. 
 
 
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1  (2) The remaining 40% of the moneys distributed under 
2 this
subsection (b) shall be distributed as follows: 
3   (A) 11% shall be distributed to any person (or its 
4 successors or assigns) who had operating control of a 
5 racetrack that conducted live racing in 2002 at a 
6 racetrack in a
county with at least 230,000 inhabitants 
7 that borders the Mississippi River and is a licensee in 
8 the current year; and 
9   (B) the remaining 89% shall be distributed pro rata

10 according to the aggregate
proportion of total handle 
11 from wagering on live races conducted in Illinois 
12 (irrespective of where the wagers are placed) for 
13 calendar years 2004 and 2005
to any person (or its

14 successors or assigns) who (i) had
majority operating 
15 control of a racing facility at which live racing was 
16 conducted in
calendar year 2002, (ii) is a licensee in 
17 the current
year, and (iii) is not eligible to receive 
18 moneys under subparagraph (A) of this paragraph (2). 
19   The moneys received by an organization licensee 
20 under this paragraph (2) shall be used by each 
21 organization licensee to improve, maintain, market, 
22 and otherwise operate its racing facilities to conduct 
23 live racing, which shall include backstretch services 
24 and capital improvements related to live racing and the 
25 backstretch. Any organization licensees sharing common 
26 ownership may pool the moneys received and spent at all 
 
 
10100SB0690ham003- 590 -LRB101 04451 SMS 61572 a


1 racing facilities commonly owned in order to meet these 
2 requirements. 
3  If any person identified in this paragraph (2) becomes

4 ineligible to receive moneys from the Fund, such amount 
5 shall be redistributed
among the remaining persons in 
6 proportion to their percentages otherwise
calculated. 
7 (c) The Board shall monitor organization licensees to 
8ensure that moneys paid to organization licensees under this 
9Section are distributed by the organization licensees as 
10provided in subsection (b). 

11(Source: P.A. 95-1008, eff. 12-15-08.)

12 (230 ILCS 5/56 new)
13 Sec. 56. Gaming pursuant to an organization gaming license.
14 (a) A person, firm, corporation, partnership, or limited 
15liability company having operating control of a racetrack may 
16apply to the Gaming Board for an organization gaming license. 
17An organization gaming license shall authorize its holder to 
18conduct gaming on the grounds of the racetrack of which the 
19organization gaming licensee has operating control. Only one 
20organization gaming license may be awarded for any racetrack. A 
21holder of an organization gaming license shall be subject to 
22the Illinois Gambling Act and rules of the Illinois Gaming 
23Board concerning gaming pursuant to an organization gaming 
24license issued under the Illinois Gambling Act. If the person, 
25firm, corporation, or limited liability company having 
 
 
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1operating control of a racetrack is found by the Illinois 
2Gaming Board to be unsuitable for an organization gaming 
3license under the Illinois Gambling Act and rules of the Gaming 
4Board, that person, firm, corporation, or limited liability 
5company shall not be granted an organization gaming license. 
6Each license shall specify the number of gaming positions that 
7its holder may operate.
8 An organization gaming licensee may not permit patrons 
9under 21 years of age to be present in its organization gaming 
10facility, but the licensee may accept wagers on live racing and 
11inter-track wagers at its organization gaming facility.
12 (b) For purposes of this subsection, "adjusted gross 
13receipts" means an organization gaming licensee's gross 
14receipts less winnings paid to wagerers and shall also include 
15any amounts that would otherwise be deducted pursuant to 
16subsection (a-9) of Section 13 of the Illinois Gambling Act. 
17The adjusted gross receipts by an organization gaming licensee 
18from gaming pursuant to an organization gaming license issued 
19under the Illinois Gambling Act remaining after the payment of 
20taxes under Section 13 of the Illinois Gambling Act shall be 
21distributed as follows:
22  (1) Amounts shall be paid to the purse account at the 
23 track at which the organization licensee is conducting 
24 racing equal to the following:
25   12.75% of annual adjusted gross receipts up to and 
26 including $93,000,000;
 
 
10100SB0690ham003- 592 -LRB101 04451 SMS 61572 a


1   20% of annual adjusted gross receipts in excess of 
2 $93,000,000 but not exceeding $100,000,000;
3   26.5% of annual adjusted gross receipts in excess 
4 of $100,000,000 but not exceeding $125,000,000; and
5   20.5% of annual adjusted gross receipts in excess 
6 of $125,000,000.
7  If 2 different breeds race at the same racetrack in the 
8 same calendar year, the purse moneys allocated under this 
9 subsection (b) shall be divided pro rata based on live 
10 racing days awarded by the Board to that race track for 
11 each breed. However, the ratio may not exceed 60% for 
12 either breed, except if one breed is awarded fewer than 20 
13 live racing days, in which case the purse moneys allocated 
14 shall be divided pro rata based on live racing days. 
15  (2) The remainder shall be retained by the organization 
16 gaming licensee.
17 (c) Annually, from the purse account of an organization 
18licensee racing thoroughbred horses in this State, except for 
19in Madison County, an amount equal to 12% of the gaming 
20receipts from gaming pursuant to an organization gaming license 
21placed into the purse accounts shall be paid to the Illinois 
22Thoroughbred Breeders Fund and shall be used for owner awards; 
23a stallion program pursuant to paragraph (3) of subsection (g) 
24of Section 30 of this Act; and Illinois conceived and foaled 
25stakes races pursuant to paragraph (2) of subsection (g) of 
26Section 30 of this Act, as specifically designated by the 
 
 
10100SB0690ham003- 593 -LRB101 04451 SMS 61572 a


1horsemen association representing the largest number of owners 
2and trainers who race at the organization licensee's race 
3meetings.
4 Annually, from the purse account of an organization 
5licensee racing thoroughbred horses in Madison County, an 
6amount equal to 10% of the gaming receipts from gaming pursuant 
7to an organization gaming license placed into the purse 
8accounts shall be paid to the Illinois Thoroughbred Breeders 
9Fund and shall be used for owner awards; a stallion program 
10pursuant to paragraph (3) of subsection (g) of Section 30 of 
11this Act; and Illinois conceived and foaled stakes races 
12pursuant to paragraph (2) of subsection (g) of Section 30 of 
13this Act, as specifically designated by the horsemen 
14association representing the largest number of owners and 
15trainers who race at the organization licensee's race meetings. 
16 Annually, from the amounts generated for purses from all 
17sources, including, but not limited to, amounts generated from 
18wagering conducted by organization licensees, organization 
19gaming licensees, inter-track wagering licensees, inter-track 
20wagering locations licensees, and advance deposit wagering 
21licensees, or an organization licensee to the purse account of 
22an organization licensee conducting thoroughbred races at a 
23track in Madison County, an amount equal to 10% of adjusted 
24gross receipts as defined in subsection (b) of this Section 
25shall be paid to the horsemen association representing the 
26largest number of owners and trainers who race at the 
 
 
10100SB0690ham003- 594 -LRB101 04451 SMS 61572 a


1organization licensee's race meets, to be used to for 
2operational expenses and may be also used for after care 
3programs for retired thoroughbred race horses, backstretch 
4laundry and kitchen facilities, a health insurance or 
5retirement program, the Future Farmers of America, and such 
6other programs.
7 Annually, from the purse account of organization licensees 
8conducting thoroughbred races at racetracks in Cook County, 
9$100,000 shall be paid for division and equal distribution to 
10the animal sciences department of each Illinois public 
11university system engaged in equine research and education on 
12or before the effective date of this amendatory Act of the 
13101st General Assembly for equine research and education.
14 (d) Annually, from the purse account of an organization 
15licensee racing standardbred horses, an amount equal to 15% of 
16the gaming receipts from gaming pursuant to an organization 
17gaming license placed into that purse account shall be paid to 
18the Illinois Standardbred Breeders Fund. Moneys deposited into 
19the Illinois Standardbred Breeders Fund shall be used for 
20standardbred racing as authorized in paragraphs 1, 2, 3, 8, and 
219 of subsection (g) of Section 31 of this Act and for bonus 
22awards as authorized under paragraph 6 of subsection (j) of 
23Section 31 of this Act.

24 Section 35-55. The Riverboat Gambling Act is amended by 
25changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11, 
 
 
10100SB0690ham003- 595 -LRB101 04451 SMS 61572 a


111.1, 12, 13, 14, 15, 17, 17.1, 18, 18.1, 19, 20, and 24 and by 
2adding Sections 5.3, 7.7, 7.8, 7.10, 7.11, 7.12, 7.13, 7.14, 
3and 7.15 as follows:




4 (230 ILCS 10/1) (from Ch. 120, par. 2401)



5 Sec. 1. Short title. This Act shall be known and may be 
6cited as the
Illinois Riverboat Gambling Act.

7(Source: P.A. 86-1029.)





8 (230 ILCS 10/2) (from Ch. 120, par. 2402)



9 Sec. 2. Legislative Intent. 

10 (a) This Act is intended to benefit the
people of the State 
11of Illinois
by assisting economic development, and promoting 
12Illinois tourism,
and by increasing the amount of revenues 
13available to the State to assist and
support education, and to 
14defray State expenses.

15 (b) While authorization of riverboat and casino gambling 
16will enhance investment,
beautification, development and 
17tourism in Illinois, it is recognized that it will do so

18successfully only if public confidence and trust in the 
19credibility and
integrity of the gambling operations and the 
20regulatory process is
maintained. Therefore, regulatory 
21provisions of this Act are designed to
strictly regulate the 
22facilities, persons, associations and practices
related to 
23gambling operations pursuant to the police powers of the State,

24including comprehensive law enforcement supervision.

 
 
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1 (c) The Illinois Gaming Board established under this Act 
2should, as soon
as possible, inform each applicant for an 
3owners license of the Board's
intent to grant or deny a 
4license.

5(Source: P.A. 93-28, eff. 6-20-03.)





6 (230 ILCS 10/3) (from Ch. 120, par. 2403)



7 Sec. 3. Riverboat Gambling Authorized. 

8 (a) Riverboat and casino gambling
operations and gaming 
9operations pursuant to an organization gaming license and the 
10system of wagering
incorporated therein, as defined in this 
11Act, are hereby authorized to the
extent that they are carried 
12out in accordance with the provisions of this
Act.

13 (b) This Act does not apply to the pari-mutuel system of 
14wagering used
or intended to be used in connection with the 
15horse-race meetings as
authorized under the Illinois Horse 
16Racing Act of 1975, lottery games
authorized under the Illinois 
17Lottery Law, bingo authorized under the Bingo
License and Tax 
18Act, charitable games authorized under the Charitable Games
Act 
19or pull tabs and jar games conducted under the Illinois Pull 
20Tabs and Jar
Games Act. This Act applies to gaming by an 
21organization gaming licensee authorized under the Illinois 
22Horse Racing Act of 1975 to the extent provided in that Act and 
23in this Act. 

24 (c) Riverboat gambling conducted pursuant to this Act may 
25be authorized
upon any water within the State of Illinois or 
 
 
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1any
water other than Lake Michigan which constitutes a boundary 
2of the State
of Illinois.
Notwithstanding any provision in this 
3subsection (c) to the contrary, a
licensee that receives its 
4license pursuant to subsection (e-5) of Section 7
may
conduct 
5riverboat gambling on Lake Michigan from a home dock located on 
6Lake
Michigan subject to any limitations contained in Section 
77. Notwithstanding any provision in this subsection (c) to the 
8contrary, a licensee may conduct gambling at its home dock 
9facility as provided in Sections 7 and 11. A licensee may 
10conduct riverboat gambling authorized under this Act

11regardless of whether it conducts excursion cruises. A licensee 
12may permit
the continuous ingress and egress of passengers for 
13the purpose of
gambling.

14 (d) Gambling that is conducted in accordance with this Act 
15using slot machines and video games of chance and other 
16electronic gambling games as defined in both this Act and the 
17Illinois Horse Racing Act of 1975 is authorized. 
18(Source: P.A. 91-40, eff. 6-25-99.)





19 (230 ILCS 10/4) (from Ch. 120, par. 2404)



20 Sec. 4. Definitions. As used in this Act:

21 (a) "Board" means the Illinois Gaming Board.

22 (b) "Occupational license" means a license issued by the 
23Board to a
person or entity to perform an occupation which the 
24Board has identified as
requiring a license to engage in 
25riverboat gambling, casino gambling, or gaming pursuant to an 
 
 
10100SB0690ham003- 598 -LRB101 04451 SMS 61572 a


1organization gaming license issued under this Act in Illinois.

2 (c) "Gambling game" includes, but is not limited to, 
3baccarat,
twenty-one, poker, craps, slot machine, video game of 
4chance, roulette
wheel, klondike table, punchboard, faro 
5layout, keno layout, numbers
ticket, push card, jar ticket, or 
6pull tab which is authorized by the Board
as a wagering device 
7under this Act.

8 (d) "Riverboat" means a self-propelled excursion boat, a

9permanently moored barge, or permanently moored barges that are 
10permanently
fixed together to operate as one vessel, on which 
11lawful gambling is
authorized and licensed as
provided in this 
12Act.

13 "Slot machine" means any mechanical, electrical, or other 
14device, contrivance, or machine that is authorized by the Board 
15as a wagering device under this Act which, upon insertion of a 
16coin, currency, token, or similar object therein, or upon 
17payment of any consideration whatsoever, is available to play 
18or operate, the play or operation of which may deliver or 
19entitle the person playing or operating the machine to receive 
20cash, premiums, merchandise, tokens, or anything of value 
21whatsoever, whether the payoff is made automatically from the 
22machine or in any other manner whatsoever. A slot machine:
23  (1) may utilize spinning reels or video displays or 
24 both;
25  (2) may or may not dispense coins, tickets, or tokens 
26 to winning patrons;
 
 
10100SB0690ham003- 599 -LRB101 04451 SMS 61572 a


1  (3) may use an electronic credit system for receiving 
2 wagers and making payouts; and
3  (4) may simulate a table game. 
4 "Slot machine" does not include table games authorized by 
5the Board as a wagering device under this Act. 
6 (e) "Managers license" means a license issued by the Board 
7to a person or
entity
to manage gambling operations conducted 
8by the State pursuant to Section 7.3.

9 (f) "Dock" means the location where a riverboat moors for 
10the purpose of
embarking passengers for and disembarking 
11passengers from the riverboat.

12 (g) "Gross receipts" means the total amount of money 
13exchanged for the
purchase of chips, tokens, or electronic 
14cards by riverboat patrons.

15 (h) "Adjusted gross receipts" means the gross receipts less

16winnings paid to wagerers.

17 (i) "Cheat" means to alter the selection of criteria which 
18determine the
result of a gambling game or the amount or 
19frequency of payment in a gambling
game.

20 (j) (Blank).

21 (k) "Gambling operation" means the conduct of authorized 
22gambling games authorized under this Act
upon a riverboat or in 
23a casino or authorized under this Act and the Illinois Horse 
24Racing Act of 1975 at an organization gaming facility.

25 (l) "License bid" means the lump sum amount of money that 
26an applicant
bids and agrees to pay the State in return for an 
 
 
10100SB0690ham003- 600 -LRB101 04451 SMS 61572 a


1owners license that is issued or
re-issued on or after July 1, 
22003.

3 "Table game" means a live gaming apparatus upon which 
4gaming is conducted or that determines an outcome that is the 
5object of a wager, including, but not limited to, baccarat, 
6twenty-one, blackjack, poker, craps, roulette wheel, klondike 
7table, punchboard, faro layout, keno layout, numbers ticket, 
8push card, jar ticket, pull tab, or other similar games that 
9are authorized by the Board as a wagering device under this 
10Act. "Table game" does not include slot machines or video games 
11of chance.
12 (m) The terms "minority person", "woman", and "person with 
13a disability" shall have the same meaning
as
defined in
Section 
142 of the Business Enterprise for Minorities, Women, and Persons 
15with
Disabilities Act.

16 "Casino" means a facility at which lawful gambling is 
17authorized as provided in this Act. 
18 "Owners license" means a license to conduct riverboat or 
19casino gambling operations, but does not include an 
20organization gaming license.
21 "Licensed owner" means a person who holds an owners 
22license.
23 "Organization gaming facility" means that portion of an

24organization licensee's racetrack facilities at which gaming 
25authorized under Section 7.7 is conducted.
26 "Organization gaming license" means a license issued by the

 
 
10100SB0690ham003- 601 -LRB101 04451 SMS 61572 a


1Illinois Gaming Board under Section 7.7 of this Act authorizing 
2gaming pursuant to that Section at an organization gaming

3facility.
4 "Organization gaming licensee" means an entity that holds

5an organization gaming license.
6 "Organization licensee" means an entity authorized by the 
7Illinois Racing Board to conduct pari-mutuel wagering in 
8accordance with the Illinois Horse Racing Act of 1975. With 
9respect only to gaming pursuant to an organization gaming 
10license, "organization licensee" includes the authorization 
11for gaming created under subsection (a) of Section 56 of the 
12Illinois Horse Racing Act of 1975. 
13(Source: P.A. 100-391, eff. 8-25-17.)




14 (230 ILCS 10/5) (from Ch. 120, par. 2405)


15 Sec. 5. Gaming Board. 

16 (a) (1) There is hereby established the
Illinois Gaming 
17Board, which shall have the powers and duties specified in
this 
18Act, and all other powers necessary and proper to fully and

19effectively execute this Act for the purpose of administering, 
20regulating,
and enforcing the system of riverboat and casino 
21gambling established by this Act and gaming pursuant to an 
22organization gaming license issued under this Act. Its

23jurisdiction shall extend under this Act to every person, 
24association,
corporation, partnership and trust involved in 
25riverboat and casino gambling
operations and gaming pursuant to 
 
 
10100SB0690ham003- 602 -LRB101 04451 SMS 61572 a


1an organization gaming license issued under this Act in the 
2State of Illinois.

3 (2) The Board shall consist of 5 members to be appointed by 
4the Governor
with the advice and consent of the Senate, one of 
5whom shall be designated
by the Governor to be chairperson 
6chairman. Each member shall have a reasonable
knowledge of the 
7practice, procedure and principles of gambling operations.

8Each member shall either be a resident of Illinois or shall 
9certify that he or she
will become a resident of Illinois 
10before taking office. 
11 On and after the effective date of this amendatory Act of 
12the 101st General Assembly, new appointees to the Board must 
13include the following:
14  (A) One member who has received, at a minimum, a 
15 bachelor's degree from an accredited school and at least 10 
16 years of verifiable experience in the fields of 
17 investigation and law enforcement.
18  (B) One member who is a certified public accountant 
19 with experience in auditing and with knowledge of complex 
20 corporate structures and transactions.
21  (C) One member who has 5 years' experience as a 
22 principal, senior officer, or director of a company or 
23 business with either material responsibility for the daily 
24 operations and management of the overall company or 
25 business or material responsibility for the policy making 
26 of the company or business.
 
 
10100SB0690ham003- 603 -LRB101 04451 SMS 61572 a


1  (D) One member who is an attorney licensed to practice 
2 law in Illinois for at least 5 years.
3 Notwithstanding any provision of this subsection (a), the 
4requirements of subparagraphs (A) through (D) of this paragraph 
5(2) shall not apply to any person reappointed pursuant to 
6paragraph (3).
7 No more than 3 members of the Board may be from the same 
8political party. No Board member shall, within a period of one 
9year immediately preceding nomination, have been employed or 
10received compensation or fees for services from a person or 
11entity, or its parent or affiliate, that has engaged in 
12business with the Board, a licensee, or a licensee under the 
13Illinois Horse Racing Act of 1975. Board members must publicly 
14disclose all prior affiliations with gaming interests, 
15including any compensation, fees, bonuses, salaries, and other 
16reimbursement received from a person or entity, or its parent 
17or affiliate, that has engaged in business with the Board, a 
18licensee, or a licensee under the Illinois Horse Racing Act of 
191975. This disclosure must be made within 30 days after 
20nomination but prior to confirmation by the Senate and must be 
21made available to the members of the Senate. At least one 
22member
shall be experienced in law enforcement and criminal 
23investigation, at
least one member shall be a certified public 
24accountant experienced in
accounting and auditing, and at least 
25one member shall be a lawyer licensed
to practice law in 
26Illinois.

 
 
10100SB0690ham003- 604 -LRB101 04451 SMS 61572 a


1 (3) The terms of office of the Board members shall be 3 
2years, except
that the terms of office of the initial Board 
3members appointed pursuant to
this Act will commence from the 
4effective date of this Act and run as
follows: one for a term 
5ending July 1, 1991, 2 for a term ending July 1,
1992, and 2 for 
6a term ending July 1, 1993. Upon the expiration of the

7foregoing terms, the successors of such members shall serve a 
8term for 3
years and until their successors are appointed and 
9qualified for like terms.
Vacancies in the Board shall be 
10filled for the unexpired term in like
manner as original 
11appointments. Each member of the Board shall be
eligible for 
12reappointment at the discretion of the Governor with the
advice 
13and consent of the Senate.

14 (4) Each member of the Board shall receive $300 for each 
15day the
Board meets and for each day the member conducts any 
16hearing pursuant to
this Act. Each member of the Board shall 
17also be reimbursed for all actual
and necessary expenses and 
18disbursements incurred in the execution of official
duties.

19 (5) No person shall be appointed a member of the Board or 
20continue to be
a member of the Board who is, or whose spouse, 
21child or parent is, a member
of the board of directors of, or a 
22person financially interested in, any
gambling operation 
23subject to the jurisdiction of this Board, or any race
track, 
24race meeting, racing association or the operations thereof 
25subject
to the jurisdiction of the Illinois Racing Board. No 
26Board member shall
hold any other public office. No person 
 
 
10100SB0690ham003- 605 -LRB101 04451 SMS 61572 a


1shall be a
member of the Board who is not of good moral 
2character or who has been
convicted of, or is under indictment 
3for, a felony under the laws of
Illinois or any other state, or 
4the United States.

5 (5.5) No member of the Board shall engage in any political 
6activity. For the purposes of this Section, "political" means 
7any activity in support
of or in connection with any campaign 
8for federal, State, or local elective office or any political

9organization, but does not include activities (i) relating to 
10the support or
opposition of any executive, legislative, or 
11administrative action (as those
terms are defined in Section 2 
12of the Lobbyist Registration Act), (ii) relating
to collective 
13bargaining, or (iii) that are
otherwise
in furtherance of the 
14person's official
State duties or governmental and public 
15service functions.

16 (6) Any member of the Board may be removed by the Governor 
17for neglect
of duty, misfeasance, malfeasance, or nonfeasance 
18in office or for engaging in any political activity.

19 (7) Before entering upon the discharge of the duties of his 
20office, each
member of the Board shall take an oath that he 
21will faithfully execute the
duties of his office according to 
22the laws of the State and the rules and
regulations adopted 
23therewith and shall give bond to the State of Illinois,

24approved by the Governor, in the sum of $25,000. Every such 
25bond, when
duly executed and approved, shall be recorded in the 
26office of the
Secretary of State. Whenever the Governor 
 
 
10100SB0690ham003- 606 -LRB101 04451 SMS 61572 a


1determines that the bond of any
member of the Board has become 
2or is likely to become invalid or
insufficient, he shall 
3require such member forthwith to renew his bond,
which is to be 
4approved by the Governor. Any member of the Board who fails
to 
5take oath and give bond within 30 days from the date of his 
6appointment,
or who fails to renew his bond within 30 days 
7after it is demanded by the
Governor, shall be guilty of 
8neglect of duty and may be removed by the
Governor. The cost of 
9any bond given by any member of the Board under this
Section 
10shall be taken to be a part of the necessary expenses of the 
11Board.

12 (7.5) For the examination of all mechanical, 
13electromechanical, or electronic table games, slot machines, 
14slot accounting systems, sports wagering systems, and other 
15electronic gaming equipment, and the field inspection of such 
16systems, games, and machines, for compliance with this Act, the 
17Board shall may utilize the services of one or more independent 
18outside testing laboratories that have been accredited in 
19accordance with ISO/IEC 17025 by an accreditation body that is 
20a signatory to the International Laboratory Accreditation 
21Cooperation Mutual Recognition Agreement signifying they by a 
22national accreditation body and that, in the judgment of the 
23Board, are qualified to perform such examinations. 
24Notwithstanding any law to the contrary, the Board shall 
25consider the licensing of independent outside testing 
26laboratory applicants in accordance with procedures 
 
 
10100SB0690ham003- 607 -LRB101 04451 SMS 61572 a


1established by the Board by rule. The Board shall not withhold 
2its approval of an independent outside testing laboratory 
3license applicant that has been accredited as required under 
4this paragraph (7.5) and is licensed in gaming jurisdictions 
5comparable to Illinois. Upon the finalization of required 
6rules, the Board shall license independent testing 
7laboratories and accept the test reports of any licensed 
8testing laboratory of the system's, game's, or machine 
9manufacturer's choice, notwithstanding the existence of 
10contracts between the Board and any independent testing 
11laboratory. 
12 (8) The Board shall employ such
personnel as may be 
13necessary to carry out its functions and shall determine the 
14salaries of all personnel, except those personnel whose 
15salaries are determined under the terms of a collective 
16bargaining agreement. No
person shall be employed to serve the 
17Board who is, or whose spouse, parent
or child is, an official 
18of, or has a financial interest in or financial
relation with, 
19any operator engaged in gambling operations within this
State 
20or any organization engaged in conducting horse racing within 
21this
State. For the one year immediately preceding employment, 
22an employee shall not have been employed or received 
23compensation or fees for services from a person or entity, or 
24its parent or affiliate, that has engaged in business with the 
25Board, a licensee, or a licensee under the Illinois Horse 
26Racing Act of 1975. Any employee violating these prohibitions 
 
 
10100SB0690ham003- 608 -LRB101 04451 SMS 61572 a


1shall be subject to
termination of employment.

2 (9) An Administrator shall perform any and all duties that 
3the Board
shall assign him. The salary of the Administrator 
4shall be determined by
the Board and, in addition,
he shall be 
5reimbursed for all actual and necessary expenses incurred by

6him in discharge of his official duties. The Administrator 
7shall keep
records of all proceedings of the Board and shall 
8preserve all records,
books, documents and other papers 
9belonging to the Board or entrusted to
its care. The 
10Administrator shall devote his full time to the duties of
the 
11office and shall not hold any other office or employment.

12 (b) The Board shall have general responsibility for the 
13implementation
of this Act. Its duties include, without 
14limitation, the following:


15  (1) To decide promptly and in reasonable order all 
16 license applications.
Any party aggrieved by an action of 
17 the Board denying, suspending,
revoking, restricting or 
18 refusing to renew a license may request a hearing
before 
19 the Board. A request for a hearing must be made to the 
20 Board in
writing within 5 days after service of notice of 
21 the action of the Board.
Notice of the action of the Board 
22 shall be served either by personal
delivery or by certified 
23 mail, postage prepaid, to the aggrieved party.
Notice 
24 served by certified mail shall be deemed complete on the 
25 business
day following the date of such mailing. The Board 
26 shall conduct any such all
requested hearings promptly and 
 
 
10100SB0690ham003- 609 -LRB101 04451 SMS 61572 a


1 in reasonable order;


2  (2) To conduct all hearings pertaining to civil 
3 violations of this Act
or rules and regulations promulgated 
4 hereunder;


5  (3) To promulgate such rules and regulations as in its 
6 judgment may be
necessary to protect or enhance the 
7 credibility and integrity of gambling
operations 
8 authorized by this Act and the regulatory process 
9 hereunder;


10  (4) To provide for the establishment and collection of 
11 all license and
registration fees and taxes imposed by this 
12 Act and the rules and
regulations issued pursuant hereto. 
13 All such fees and taxes shall be
deposited into the State 
14 Gaming Fund;


15  (5) To provide for the levy and collection of penalties 
16 and fines for the
violation of provisions of this Act and 
17 the rules and regulations
promulgated hereunder. All such 
18 fines and penalties shall be deposited
into the Education 
19 Assistance Fund, created by Public Act 86-0018, of the

20 State of Illinois;


21  (6) To be present through its inspectors and agents any 
22 time gambling
operations are conducted on any riverboat, in 
23 any casino, or at any organization gaming
facility for the 
24 purpose of certifying the
revenue thereof, receiving 
25 complaints from the public, and conducting such
other 
26 investigations into the conduct of the gambling games and 
 
 
10100SB0690ham003- 610 -LRB101 04451 SMS 61572 a


1 the
maintenance of the equipment as from time to time the 
2 Board may deem
necessary and proper;


3  (7) To review and rule upon any complaint by a licensee

4 regarding any investigative procedures of the State which 
5 are unnecessarily
disruptive of gambling operations. The 
6 need to inspect and investigate
shall be presumed at all 
7 times. The disruption of a licensee's operations
shall be 
8 proved by clear and convincing evidence, and establish 
9 that: (A)
the procedures had no reasonable law enforcement 
10 purposes, and (B) the
procedures were so disruptive as to 
11 unreasonably inhibit gambling operations;


12  (8) To hold at least one meeting each quarter of the 
13 fiscal
year. In addition, special meetings may be called by 
14 the Chairman or any 2
Board members upon 72 hours written 
15 notice to each member. All Board
meetings shall be subject 
16 to the Open Meetings Act. Three members of the
Board shall 
17 constitute a quorum, and 3 votes shall be required for any

18 final determination by the Board. The Board shall keep a 
19 complete and
accurate record of all its meetings. A 
20 majority of the members of the Board
shall constitute a 
21 quorum for the transaction of any business, for the

22 performance of any duty, or for the exercise of any power 
23 which this Act
requires the Board members to transact, 
24 perform or exercise en banc, except
that, upon order of the 
25 Board, one of the Board members or an
administrative law 
26 judge designated by the Board may conduct any hearing

 
 
10100SB0690ham003- 611 -LRB101 04451 SMS 61572 a


1 provided for under this Act or by Board rule and may 
2 recommend findings and
decisions to the Board. The Board 
3 member or administrative law judge
conducting such hearing 
4 shall have all powers and rights granted to the
Board in 
5 this Act. The record made at the time of the hearing shall 
6 be
reviewed by the Board, or a majority thereof, and the 
7 findings and decision
of the majority of the Board shall 
8 constitute the order of the Board in
such case;


9  (9) To maintain records which are separate and distinct 
10 from the records
of any other State board or commission. 
11 Such records shall be available
for public inspection and 
12 shall accurately reflect all Board proceedings;


13  (10) To file a written annual report with the Governor 
14 on or before
July 1 each year and such additional reports 
15 as the Governor may request.
The annual report shall 
16 include a statement of receipts and disbursements
by the 
17 Board, actions taken by the Board, and any additional 
18 information
and recommendations which the Board may deem 
19 valuable or which the Governor
may request;


20  (11) (Blank);


21  (12) (Blank);


22  (13) To assume responsibility for administration and 
23 enforcement of the
Video Gaming Act; and
24  (13.1) To assume responsibility for the administration 
25 and enforcement
of operations at organization gaming 
26 facilities pursuant to this Act and the
Illinois Horse 
 
 
10100SB0690ham003- 612 -LRB101 04451 SMS 61572 a


1 Racing Act of 1975; 
2  (13.2) To assume responsibility for the administration 
3 and enforcement
of the Sports Wagering Act; and 
4  (14) To adopt, by rule, a code of conduct governing 
5 Board members and employees that ensure, to the maximum 
6 extent possible, that persons subject to this Code avoid 
7 situations, relationships, or associations that may 
8 represent or lead to a conflict of interest.

9 Internal controls and changes submitted by licensees must 
10be reviewed and either approved or denied with cause within 90 
11days after receipt of submission is deemed final by the 
12Illinois Gaming Board. In the event an internal control 
13submission or change does not meet the standards set by the 
14Board, staff of the Board must provide technical assistance to 
15the licensee to rectify such deficiencies within 90 days after 
16the initial submission and the revised submission must be 
17reviewed and approved or denied with cause within 90 days after 
18the date the revised submission is deemed final by the Board. 
19For the purposes of this paragraph, "with cause" means that the 
20approval of the submission would jeopardize the integrity of 
21gaming. In the event the Board staff has not acted within the 
22timeframe, the submission shall be deemed approved.
23 (c) The Board shall have jurisdiction over and shall 
24supervise all
gambling operations governed by this Act. The 
25Board shall have all powers
necessary and proper to fully and 
26effectively execute the provisions of
this Act, including, but 
 
 
10100SB0690ham003- 613 -LRB101 04451 SMS 61572 a


1not limited to, the following:


2  (1) To investigate applicants and determine the 
3 eligibility of
applicants for licenses and to select among 
4 competing applicants the
applicants which best serve the 
5 interests of the citizens of Illinois.


6  (2) To have jurisdiction and supervision over all 
7 riverboat gambling
operations authorized under this Act in 
8 this State and all persons in places on riverboats where 
9 gambling
operations are conducted.


10  (3) To promulgate rules and regulations for the purpose 
11 of administering
the provisions of this Act and to 
12 prescribe rules, regulations and
conditions under which 
13 all riverboat gambling operations subject to this
Act in 
14 the State shall be
conducted. Such rules and regulations 
15 are to provide for the prevention of
practices detrimental 
16 to the public interest and for the best interests of

17 riverboat gambling, including rules and regulations 
18 regarding the
inspection of organization gaming 
19 facilities, casinos, and such riverboats, and the review of 
20 any permits or licenses
necessary to operate a riverboat, 
21 casino, or organization gaming facility under any laws or 
22 regulations applicable
to riverboats, casinos, or 
23 organization gaming facilities and to impose penalties for 
24 violations thereof.


25  (4) To enter the office, riverboats, casinos, 
26 organization gaming facilities, and
other facilities, or 
 
 
10100SB0690ham003- 614 -LRB101 04451 SMS 61572 a


1 other
places of business of a licensee, where evidence of 
2 the compliance or
noncompliance with the provisions of this 
3 Act is likely to be found.


4  (5) To investigate alleged violations of this Act or 
5 the
rules of the Board and to take appropriate disciplinary

6 action against a licensee or a holder of an occupational 
7 license for a
violation, or institute appropriate legal 
8 action for enforcement, or both.


9  (6) To adopt standards for the licensing of all persons 
10 and entities under this Act,
as well as for electronic or 
11 mechanical gambling games, and to establish
fees for such 
12 licenses.


13  (7) To adopt appropriate standards for all 
14 organization gaming facilities, riverboats, casinos,
and 
15 other facilities authorized under this Act.


16  (8) To require that the records, including financial or 
17 other statements
of any licensee under this Act, shall be 
18 kept in such manner as prescribed
by the Board and that any 
19 such licensee involved in the ownership or
management of 
20 gambling operations submit to the Board an annual balance

21 sheet and profit and loss statement, list of the 
22 stockholders or other
persons having a 1% or greater 
23 beneficial interest in the gambling
activities of each 
24 licensee, and any other information the Board deems

25 necessary in order to effectively administer this Act and 
26 all rules,
regulations, orders and final decisions 
 
 
10100SB0690ham003- 615 -LRB101 04451 SMS 61572 a


1 promulgated under this Act.


2  (9) To conduct hearings, issue subpoenas for the 
3 attendance of
witnesses and subpoenas duces tecum for the 
4 production of books, records
and other pertinent documents 
5 in accordance with the Illinois
Administrative Procedure 
6 Act, and to administer oaths and affirmations to
the 
7 witnesses, when, in the judgment of the Board, it is 
8 necessary to
administer or enforce this Act or the Board 
9 rules.


10  (10) To prescribe a form to be used by any licensee 
11 involved in the
ownership or management of gambling 
12 operations as an
application for employment for their 
13 employees.


14  (11) To revoke or suspend licenses, as the Board may 
15 see fit and in
compliance with applicable laws of the State 
16 regarding administrative
procedures, and to review 
17 applications for the renewal of licenses. The
Board may 
18 suspend an owners license or an organization gaming 
19 license , without notice or hearing upon a
determination 
20 that the safety or health of patrons or employees is

21 jeopardized by continuing a gambling operation conducted 
22 under that license riverboat's operation. The suspension 
23 may
remain in effect until the Board determines that the 
24 cause for suspension
has been abated. The Board may revoke 
25 an the owners license or organization gaming license upon a

26 determination that the licensee owner has not made 
 
 
10100SB0690ham003- 616 -LRB101 04451 SMS 61572 a


1 satisfactory progress toward
abating the hazard.


2  (12) To eject or exclude or authorize the ejection or 
3 exclusion of, any
person from riverboat gambling 
4 facilities where that such person is in violation
of this 
5 Act, rules and regulations thereunder, or final orders of 
6 the
Board, or where such person's conduct or reputation is 
7 such that his or her
presence within the riverboat gambling 
8 facilities may, in the opinion of
the Board, call into 
9 question the honesty and integrity of the gambling

10 operations or interfere with the orderly conduct thereof; 
11 provided that the
propriety of such ejection or exclusion 
12 is subject to subsequent hearing
by the Board.


13  (13) To require all licensees of gambling operations to 
14 utilize a
cashless wagering system whereby all players' 
15 money is converted to tokens,
electronic cards, or chips 
16 which shall be used only for wagering in the
gambling 
17 establishment.


18  (14) (Blank).


19  (15) To suspend, revoke or restrict licenses, to 
20 require the
removal of a licensee or an employee of a 
21 licensee for a violation of this
Act or a Board rule or for 
22 engaging in a fraudulent practice, and to
impose civil 
23 penalties of up to $5,000 against individuals and up to

24 $10,000 or an amount equal to the daily gross receipts, 
25 whichever is
larger, against licensees for each violation 
26 of any provision of the Act, any rules adopted by the 
 
 
10100SB0690ham003- 617 -LRB101 04451 SMS 61572 a


1 Board, any order of the Board or any other action
which, in 
2 the Board's discretion, is a detriment or impediment to 
3 riverboat
gambling operations.


4  (16) To hire employees to gather information, conduct 
5 investigations
and carry out any other tasks contemplated 
6 under this Act.


7  (17) To establish minimum levels of insurance to be 
8 maintained by
licensees.


9  (18) To authorize a licensee to sell or serve alcoholic 
10 liquors, wine or
beer as defined in the Liquor Control Act 
11 of 1934 on board a riverboat or in a casino
and to have 
12 exclusive authority to establish the hours for sale and

13 consumption of alcoholic liquor on board a riverboat or in 
14 a casino, notwithstanding any
provision of the Liquor 
15 Control Act of 1934 or any local ordinance, and
regardless 
16 of whether the riverboat makes excursions. The

17 establishment of the hours for sale and consumption of 
18 alcoholic liquor on
board a riverboat or in a casino is an 
19 exclusive power and function of the State. A home
rule unit 
20 may not establish the hours for sale and consumption of 
21 alcoholic
liquor on board a riverboat or in a casino. This 
22 subdivision (18) amendatory Act of 1991 is a denial and

23 limitation of home rule powers and functions under 
24 subsection (h) of
Section 6 of Article VII of the Illinois 
25 Constitution.


26  (19) After consultation with the U.S. Army Corps of 
 
 
10100SB0690ham003- 618 -LRB101 04451 SMS 61572 a


1 Engineers, to
establish binding emergency orders upon the 
2 concurrence of a majority of
the members of the Board 
3 regarding the navigability of water, relative to

4 excursions,
in the event
of extreme weather conditions, 
5 acts of God or other extreme circumstances.


6  (20) To delegate the execution of any of its powers 
7 under this Act for
the purpose of administering and 
8 enforcing this Act and the its rules adopted by the Board 
9 and
regulations hereunder.

10  (20.5) To approve any contract entered into on its 
11 behalf.

12  (20.6) To appoint investigators to conduct 
13 investigations, searches, seizures, arrests, and other 
14 duties imposed under this Act, as deemed necessary by the 
15 Board. These investigators have and may exercise all of the 
16 rights and powers of peace officers, provided that these 
17 powers shall be limited to offenses or violations occurring 
18 or committed in a casino, in an organization gaming 
19 facility, or on a riverboat or dock, as defined in 
20 subsections (d) and (f) of Section 4, or as otherwise 
21 provided by this Act or any other law.
22  (20.7) To contract with the Department of State Police 
23 for the use of trained and qualified State police officers 
24 and with the Department of Revenue for the use of trained 
25 and qualified Department of Revenue investigators to 
26 conduct investigations, searches, seizures, arrests, and 
 
 
10100SB0690ham003- 619 -LRB101 04451 SMS 61572 a


1 other duties imposed under this Act and to exercise all of 
2 the rights and powers of peace officers, provided that the 
3 powers of Department of Revenue investigators under this 
4 subdivision (20.7) shall be limited to offenses or 
5 violations occurring or committed in a casino, in an 
6 organization gaming facility, or on a riverboat or dock, as 
7 defined in subsections (d) and (f) of Section 4, or as 
8 otherwise provided by this Act or any other law. In the 
9 event the Department of State Police or the Department of 
10 Revenue is unable to fill contracted police or 
11 investigative positions, the Board may appoint 
12 investigators to fill those positions pursuant to 
13 subdivision (20.6).

14  (21) To adopt rules concerning the conduct of gaming 
15 pursuant to an organization gaming license issued under 
16 this Act. 
17  (22) To have the same jurisdiction and supervision over 
18 casinos and organization gaming facilities as the Board has 
19 over riverboats, including, but not limited to, the power 
20 to (i) investigate, review, and approve contracts as that 
21 power is applied to riverboats, (ii) adopt rules for 
22 administering the provisions of this Act, (iii) adopt 
23 standards for the licensing of all persons involved with a 
24 casino or organization gaming facility, (iv) investigate 
25 alleged violations of this Act by any person involved with 
26 a casino or organization gaming facility, and (v) require 
 
 
10100SB0690ham003- 620 -LRB101 04451 SMS 61572 a


1 that records, including financial or other statements of 
2 any casino or organization gaming facility, shall be kept 
3 in such manner as prescribed by the Board. 

4  (23) (21) To take any other action as may be reasonable 
5 or appropriate to
enforce this Act and the rules adopted by 
6 the Board and regulations hereunder.

7 (d) The Board may seek and shall receive the cooperation of 
8the
Department of State Police in conducting background 
9investigations of
applicants and in fulfilling its 
10responsibilities under
this Section. Costs incurred by the 
11Department of State Police as
a result of such cooperation 
12shall be paid by the Board in conformance
with the requirements 
13of Section 2605-400 of the Department of State Police Law
(20 
14ILCS 2605/2605-400).

15 (e) The Board must authorize to each investigator and to 
16any other
employee of the Board exercising the powers of a 
17peace officer a distinct badge
that, on its face, (i) clearly 
18states that the badge is authorized by the Board
and
(ii) 
19contains a unique identifying number. No other badge shall be 
20authorized
by the Board.

21(Source: P.A. 100-1152, eff. 12-14-18.)





22 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)


23 Sec. 5.1. Disclosure of records. 

24 (a) Notwithstanding any applicable statutory provision to 
25the contrary,
the Board shall, on written request from any 
 
 
10100SB0690ham003- 621 -LRB101 04451 SMS 61572 a


1person, provide
information furnished by an applicant or 
2licensee concerning the applicant
or licensee, his products, 
3services or gambling enterprises and his
business holdings, as 
4follows:


5  (1) The name, business address and business telephone 
6 number of any
applicant or licensee.


7  (2) An identification of any applicant or licensee 
8 including, if an
applicant or licensee is not an 
9 individual, the names and addresses of all stockholders and 
10 directors, if the entity is a corporation; the names and 
11 addresses of all members, if the entity is a limited 
12 liability company; the names and addresses of all partners, 
13 both general and limited, if the entity is a partnership; 
14 and the names and addresses of all beneficiaries, if the 
15 entity is a trust the state of incorporation or

16 registration, the corporate officers, and the identity of 
17 all shareholders
or participants. If an applicant or 
18 licensee has a pending registration
statement filed with 
19 the Securities and Exchange Commission, only the names
of 
20 those persons or entities holding interest of 5% or more 
21 must be provided.


22  (3) An identification of any business, including, if 
23 applicable, the
state of incorporation or registration, in 
24 which an applicant or licensee
or an applicant's or 
25 licensee's spouse or children has an equity interest
of 
26 more than 1%. If an applicant or licensee is a corporation, 
 
 
10100SB0690ham003- 622 -LRB101 04451 SMS 61572 a


1 partnership
or other business entity, the applicant or 
2 licensee shall identify any
other corporation, partnership 
3 or business entity in which it has an equity
interest of 1%

4 or more, including, if applicable, the state of

5 incorporation or registration. This information need not 
6 be provided by a
corporation, partnership or other business 
7 entity that has a pending
registration statement filed with 
8 the Securities and Exchange Commission.


9  (4) Whether an applicant or licensee has been indicted, 
10 convicted,
pleaded guilty or nolo contendere, or forfeited 
11 bail concerning any
criminal offense under the laws of any 
12 jurisdiction, either felony or
misdemeanor (except for 
13 traffic violations), including the date, the name
and 
14 location of the court, arresting agency and prosecuting 
15 agency, the
case number, the offense, the disposition and 
16 the location and length of
incarceration.


17  (5) Whether an applicant or licensee has had any 
18 license or
certificate issued by a licensing authority in 
19 Illinois or any other
jurisdiction denied, restricted, 
20 suspended, revoked or not renewed and a
statement 
21 describing the facts and circumstances concerning the 
22 denial,
restriction, suspension, revocation or 
23 non-renewal, including the licensing
authority, the date 
24 each such action was taken, and the reason for each
such 
25 action.


26  (6) Whether an applicant or licensee has ever filed or 
 
 
10100SB0690ham003- 623 -LRB101 04451 SMS 61572 a


1 had filed against
it a proceeding in bankruptcy or has ever 
2 been involved in any formal
process to adjust, defer, 
3 suspend or otherwise work out the payment of any
debt 
4 including the date of filing, the name and location of the 
5 court, the
case and number of the disposition.


6  (7) Whether an applicant or licensee has filed, or been 
7 served with a
complaint or other notice filed with any 
8 public body, regarding the
delinquency in the payment of, 
9 or a dispute over the filings concerning the
payment of, 
10 any tax required under federal, State or local law, 
11 including
the amount, type of tax, the taxing agency and 
12 time periods involved.


13  (8) A statement listing the names and titles of all 
14 public officials
or officers of any unit of government, and 
15 relatives of said
public officials or officers who, 
16 directly or indirectly, own
any financial interest in, have 
17 any beneficial interest in, are the
creditors of or hold 
18 any debt instrument issued by, or hold or have any
interest 
19 in any contractual or service relationship with, an 
20 applicant
or licensee.


21  (9) Whether an applicant or licensee has made, directly 
22 or indirectly,
any political contribution, or any loans, 
23 donations or other payments, to
any candidate or office 
24 holder, within 5 years from the date of filing the

25 application, including the amount and the method of 
26 payment.


 
 
10100SB0690ham003- 624 -LRB101 04451 SMS 61572 a


1  (10) The name and business telephone number of the 
2 counsel
representing an applicant or licensee in matters 
3 before the Board.


4  (11) A description of any proposed or approved gambling 
5 riverboat
gaming operation, including the type of boat, 
6 home dock, or casino or gaming location, expected
economic 
7 benefit to the community, anticipated or actual number of

8 employees, any statement from an applicant or licensee 
9 regarding compliance
with federal and State affirmative 
10 action guidelines, projected or actual
admissions and 
11 projected or actual adjusted gross gaming receipts.


12  (12) A description of the product or service to be 
13 supplied by an
applicant for a supplier's license.

14 (b) Notwithstanding any applicable statutory provision to 
15the contrary,
the Board shall, on written request from any 
16person, also provide
the following information:


17  (1) The amount of the wagering tax and admission tax 
18 paid daily to the
State of Illinois by the holder of an 
19 owner's license.


20  (2) Whenever the Board finds an applicant for an 
21 owner's license
unsuitable for licensing, a copy of the 
22 written letter outlining the
reasons for the denial.


23  (3) Whenever the Board has refused to grant leave for 
24 an applicant to
withdraw his application, a copy of the 
25 letter outlining the reasons for
the refusal.

26 (c) Subject to the above provisions, the Board shall not 
 
 
10100SB0690ham003- 625 -LRB101 04451 SMS 61572 a


1disclose any
information which would be barred by:


2  (1) Section 7 of the Freedom of Information Act; or


3  (2) The statutes, rules, regulations or 
4 intergovernmental agreements
of any jurisdiction.

5 (d) The Board may assess fees for the copying of 
6information in
accordance with Section 6 of the Freedom of 
7Information Act.

8(Source: P.A. 96-1392, eff. 1-1-11.)



9 (230 ILCS 10/5.3 new)
10 Sec. 5.3. Ethical conduct.
11 (a) Officials and employees of the corporate authority of a 
12host community must carry out their duties and responsibilities 
13in such a manner as to promote and preserve public trust and 
14confidence in the integrity and conduct of gaming.
15 (b) Officials and employees of the corporate authority of a 
16host community shall not use or attempt to use his or her 
17official position to secure or attempt to secure any privilege, 
18advantage, favor, or influence for himself or herself or 
19others.
20 (c) Officials and employees of the corporate authority of a 
21host community 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 a riverboat or casino that is located in the host 
 
 
10100SB0690ham003- 626 -LRB101 04451 SMS 61572 a


1community. This prohibition shall extend to the holding or 
2acquisition of an interest in any entity identified by Board 
3action that, in the Board's judgment, could represent the 
4potential for or the appearance of a financial interest. The 
5holding or acquisition of an interest in such entities through 
6an indirect means, such as through a mutual fund, shall not be 
7prohibited, except that the Board may identify specific 
8investments or funds that, in its judgment, are so influenced 
9by gaming holdings as to represent the potential for or the 
10appearance of a conflict of interest.
11 (d) Officials and employees of the corporate authority of a 
12host community 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 
16riverboat or casino that is located in the host community.
17 (e) Officials and employees of the corporate authority of a 
18host community shall not, during the period that the person is 
19an official or employee of the corporate authority or for a 
20period of 2 years immediately after leaving such office, 
21knowingly accept employment or receive compensation or fees for 
22services from a person or entity, or its parent or affiliate, 
23that has engaged in business with the riverboat or casino that 
24is located in the host community that resulted in contracts 
25with an aggregate value of at least $25,000 or if that official 
26or employee has made a decision that directly applied to the 
 
 
10100SB0690ham003- 627 -LRB101 04451 SMS 61572 a


1person or entity, or its parent or affiliate.
2 (f) A spouse, child, or parent of an official or employee 
3of the corporate authority of a host community may not have a 
4financial interest, directly or indirectly, in his or her own 
5name or in the name of any other person, partnership, 
6association, trust, corporation, or other entity in any 
7contract or subcontract for the performance of any work for a 
8riverboat or casino in the host community. This prohibition 
9shall extend to the holding or acquisition of an interest in 
10any entity identified by Board action that, in the judgment of 
11the Board, could represent the potential for or the appearance 
12of a conflict of interest. The holding or acquisition of an 
13interest in such entities through an indirect means, such as 
14through a mutual fund, shall not be prohibited, expect that the 
15Board may identify specific investments or funds that, in its 
16judgment, are so influenced by gaming holdings as to represent 
17the potential for or the appearance of a conflict of interest.
18 (g) A spouse, child, or parent of an official or employee 
19of the corporate authority of a host community may not accept 
20any gift, gratuity, service, compensation, travel, lodging, or 
21thing of value, with the exception of unsolicited items of an 
22incidental nature, from any person, corporation, or entity 
23doing business with the riverboat or casino that is located in 
24the host community.
25 (h) A spouse, child, or parent of an official or employee 
26of the corporate authority of a host community may not, during 
 
 
10100SB0690ham003- 628 -LRB101 04451 SMS 61572 a


1the period that the person is an official of the corporate 
2authority or for a period of 2 years immediately after leaving 
3such office or employment, knowingly accept employment or 
4receive compensation or fees for services from a person or 
5entity, or its parent or affiliate, that has engaged in 
6business with the riverboat or casino that is located in the 
7host community that resulted in contracts with an aggregate 
8value of at least $25,000 or if that official or employee has 
9made a decision that directly applied to the person or entity, 
10or its parent or affiliate.
11 (i) Officials and employees of the corporate authority of a 
12host community shall not attempt, in any way, to influence any 
13person or entity doing business with the riverboat or casino 
14that is located in the host community or any officer, agent, or 
15employee thereof to hire or contract with any person or entity 
16for any compensated work.
17 (j) Any communication between an official of the corporate 
18authority of a host community and any applicant for an owners 
19license in the host community, or an officer, director, or 
20employee of a riverboat or casino in the host community, 
21concerning any matter relating in any way to gaming shall be 
22disclosed to the Board. Such disclosure shall be in writing by 
23the official within 30 days after the communication and shall 
24be filed with the Board. Disclosure must consist of the date of 
25the communication, the identity and job title of the person 
26with whom the communication was made, a brief summary of the 
 
 
10100SB0690ham003- 629 -LRB101 04451 SMS 61572 a


1communication, the action requested or recommended, all 
2responses made, the identity and job title of the person making 
3the response, and any other pertinent information. Public 
4disclosure of the written summary provided to the Board and the 
5Gaming Board shall be subject to the exemptions provided under 
6the Freedom of Information Act.
7 This subsection (j) shall not apply to communications 
8regarding traffic, law enforcement, security, environmental 
9issues, city services, transportation, or other routine 
10matters concerning the ordinary operations of the riverboat or 
11casino. For purposes of this subsection (j), "ordinary 
12operations" means operations relating to the casino or 
13riverboat facility other than the conduct of gambling 
14activities, and "routine matters" includes the application 
15for, issuance of, renewal of, and other processes associated 
16with municipal permits and licenses. 
17 (k) Any official or employee who violates any provision of 
18this Section is guilty of a Class 4 felony.
19 (l) For purposes of this Section, "host community" or "host 
20municipality" means a unit of local government that contains a 
21riverboat or casino within its borders. 




22 (230 ILCS 10/6) (from Ch. 120, par. 2406)



23 Sec. 6. Application for Owners License. 

24 (a) A qualified person may
apply to the Board for an owners 
25license to
conduct a riverboat gambling operation as provided 
 
 
10100SB0690ham003- 630 -LRB101 04451 SMS 61572 a


1in this Act. The
application shall be made on forms provided by 
2the Board and shall contain
such information as the Board 
3prescribes, including but not limited to the
identity of the 
4riverboat on which such gambling operation is to be
conducted, 
5if applicable, and the exact location where such riverboat or 
6casino will be located docked, a
certification that the 
7riverboat will be registered under this Act at all
times during 
8which gambling operations are conducted on board, detailed

9information regarding the ownership and management of the 
10applicant, and
detailed personal information regarding the 
11applicant. Any application for an
owners license to be 
12re-issued on or after June 1, 2003 shall also
include the 
13applicant's license bid in a form prescribed by the Board.

14Information
provided on the application shall be used as a 
15basis for a thorough
background investigation which the Board 
16shall conduct with respect to each
applicant. An incomplete 
17application shall be cause for denial of a license
by the 
18Board.

19 (a-5) In addition to any other information required under 
20this Section, each application for an owners license must 
21include the following information:
22  (1) The history and success of the applicant and each 
23 person and entity disclosed under subsection (c) of this 
24 Section in developing tourism facilities ancillary to 
25 gaming, if applicable.
26  (2) The likelihood that granting a license to the 
 
 
10100SB0690ham003- 631 -LRB101 04451 SMS 61572 a


1 applicant will lead to the creation of quality, living wage 
2 jobs and permanent, full-time jobs for residents of the 
3 State and residents of the unit of local government that is 
4 designated as the home dock of the proposed facility where 
5 gambling is to be conducted by the applicant.
6  (3) The projected number of jobs that would be created 
7 if the license is granted and the projected number of new 
8 employees at the proposed facility where gambling is to be 
9 conducted by the applicant.
10  (4) The record, if any, of the applicant and its 
11 developer in meeting commitments to local agencies, 
12 community-based organizations, and employees at other 
13 locations where the applicant or its developer has 
14 performed similar functions as they would perform if the 
15 applicant were granted a license.
16  (5) Identification of adverse effects that might be 
17 caused by the proposed facility where gambling is to be 
18 conducted by the applicant, including the costs of meeting 
19 increased demand for public health care, child care, public 
20 transportation, affordable housing, and social services, 
21 and a plan to mitigate those adverse effects.
22  (6) The record, if any, of the applicant and its 
23 developer regarding compliance with:
24   (A) federal, state, and local discrimination, wage 
25 and hour, disability, and occupational and 
26 environmental health and safety laws; and
 
 
10100SB0690ham003- 632 -LRB101 04451 SMS 61572 a


1   (B) state and local labor relations and employment 
2 laws.
3  (7) The applicant's record, if any, in dealing with its 
4 employees and their representatives at other locations.
5  (8) A plan concerning the utilization of 
6 minority-owned and women-owned businesses and concerning 
7 the hiring of minorities and women. 
8  (9) Evidence the applicant used its best efforts to 
9 reach a goal of 25% ownership representation by minority 
10 persons and 5% ownership representation by women. 
11 (b) Applicants shall submit with their application all 
12documents,
resolutions, and letters of support from the 
13governing body that represents
the municipality or county 
14wherein the licensee will be located dock.

15 (c) Each applicant shall disclose the identity of every 
16person or entity ,
association, trust or corporation having a 
17greater than 1% direct or
indirect pecuniary interest in the 
18riverboat gambling operation with
respect to which the license 
19is sought. If the disclosed entity is a
trust, the application 
20shall disclose the names and addresses of all the

21beneficiaries; if a corporation, the names and
addresses of all 
22stockholders and directors; if a partnership, the names
and 
23addresses of all partners, both general and limited.

24 (d) An application shall be filed and considered in 
25accordance with the rules of the Board. Each application shall 
26be accompanied by a nonrefundable An
application fee of 
 
 
10100SB0690ham003- 633 -LRB101 04451 SMS 61572 a


1$250,000. In addition, a nonrefundable fee of $50,000 shall be 
2paid at the time of filing
to defray the costs associated with 
3the
background investigation conducted by the Board. If the 
4costs of the
investigation exceed $50,000, the applicant shall 
5pay the additional amount
to the Board within 7 days after 
6requested by the Board. If the costs of the investigation are 
7less than $50,000, the
applicant shall receive a refund of the 
8remaining amount. All
information, records, interviews, 
9reports, statements, memoranda or other
data supplied to or 
10used by the Board in the course of its review or
investigation 
11of an application for a license or a renewal under this Act 
12shall be
privileged, strictly confidential and shall be used 
13only for the purpose of
evaluating an applicant for a license 
14or a renewal. Such information, records, interviews, reports,

15statements, memoranda or other data shall not be admissible as 
16evidence,
nor discoverable in any action of any kind in any 
17court or before any
tribunal, board, agency or person, except 
18for any action deemed necessary
by the Board. The application 
19fee shall be deposited into the State Gaming Fund.

20 (e) The Board shall charge each applicant a fee set by the 
21Department of
State Police to defray the costs associated with 
22the search and
classification of fingerprints obtained by the 
23Board with respect to the
applicant's application. These fees 
24shall be paid into the State Police
Services Fund. In order to 
25expedite the application process, the Board may establish rules 
26allowing applicants to acquire criminal background checks and 
 
 
10100SB0690ham003- 634 -LRB101 04451 SMS 61572 a


1financial integrity reviews as part of the initial application 
2process from a list of vendors approved by the Board. 

3 (f) The licensed owner shall be the person primarily 
4responsible for the
boat or casino itself. Only one riverboat 
5gambling operation may be authorized
by the Board on any 
6riverboat or in any casino. The applicant must identify the 
7each riverboat or premises
it intends to use and certify that 
8the riverboat or premises: (1) has the authorized
capacity 
9required in this Act; (2) is accessible to persons with 
10disabilities; and
(3) is fully registered and licensed in 
11accordance
with any applicable laws.

12 (g) A person who knowingly makes a false statement on an 
13application is
guilty of a Class A misdemeanor.

14(Source: P.A. 99-143, eff. 7-27-15.)






15 (230 ILCS 10/7) (from Ch. 120, par. 2407)


16 Sec. 7. Owners licenses. 

17 (a) The Board shall issue owners licenses to persons or 
18entities that , firms or
corporations which apply for such 
19licenses upon payment to the Board of the
non-refundable 
20license fee as provided in subsection (e) or (e-5) set by the 
21Board, upon payment of a $25,000
license fee for the first year 
22of operation and a $5,000 license fee for
each succeeding year 
23and upon a determination by the Board that the
applicant is 
24eligible for an owners license pursuant to this Act and the

25rules of the Board. From the effective date of this amendatory 
 
 
10100SB0690ham003- 635 -LRB101 04451 SMS 61572 a


1Act of the 95th General Assembly until (i) 3 years after the 
2effective date of this amendatory Act of the 95th General 
3Assembly, (ii) the date any organization licensee begins to 
4operate a slot machine or video game of chance under the 
5Illinois Horse Racing Act of 1975 or this Act, (iii) the date 
6that payments begin under subsection (c-5) of Section 13 of the 
7Act, or (iv) the wagering tax imposed under Section 13 of this 
8Act is increased by law to reflect a tax rate that is at least 
9as stringent or more stringent than the tax rate contained in 
10subsection (a-3) of Section 13, or (v) when an owners licensee 
11holding a license issued pursuant to Section 7.1 of this Act 
12begins conducting gaming, whichever occurs first, as a 
13condition of licensure and as an alternative source of payment 
14for those funds payable under subsection (c-5) of Section 13 of 
15this the Riverboat Gambling Act, any owners licensee that holds 
16or receives its owners license on or after the effective date 
17of this amendatory Act of the 94th General Assembly, other than 
18an owners licensee operating a riverboat with adjusted gross 
19receipts in calendar year 2004 of less than $200,000,000, must 
20pay into the Horse Racing Equity Trust Fund, in addition to any 
21other payments required under this Act, an amount equal to 3% 
22of the adjusted gross receipts received by the owners licensee. 
23The payments required under this Section shall be made by the 
24owners licensee to the State Treasurer no later than 3:00 
25o'clock p.m. of the day after the day when the adjusted gross 
26receipts were received by the owners licensee. A person, firm 
 
 
10100SB0690ham003- 636 -LRB101 04451 SMS 61572 a


1or entity corporation is ineligible to receive
an owners 
2license if:

3  (1) the person has been convicted of a felony under the 
4 laws of this
State, any other state, or the United States;

5  (2) the person has been convicted of any violation of 
6 Article 28 of the
Criminal Code of 1961 or the Criminal 
7 Code of 2012, or substantially similar laws of any other 
8 jurisdiction;

9  (3) the person has submitted an application for a 
10 license under this
Act which contains false information;

11  (4) the person is
a member of the Board;

12  (5) a person defined in (1), (2), (3) or (4) is an 
13 officer, director or
managerial employee of the entity firm 
14 or corporation;

15  (6) the entity firm or corporation employs a person 
16 defined in (1), (2), (3) or
(4) who participates in the 
17 management or operation of gambling operations
authorized 
18 under this Act;

19  (7) (blank); or

20  (8) a license of the person or entity , firm or 
21 corporation issued under
this Act, or a license to own or 
22 operate gambling facilities
in any other jurisdiction, has 
23 been revoked.

24 The Board is expressly prohibited from making changes to 
25the requirement that licensees make payment into the Horse 
26Racing Equity Trust Fund without the express authority of the 
 
 
10100SB0690ham003- 637 -LRB101 04451 SMS 61572 a


1Illinois General Assembly and making any other rule to 
2implement or interpret this amendatory Act of the 95th General 
3Assembly. For the purposes of this paragraph, "rules" is given 
4the meaning given to that term in Section 1-70 of the Illinois 
5Administrative Procedure Act.
6 (b) In determining whether to grant an owners license to an 
7applicant, the
Board shall consider:

8  (1) the character, reputation, experience and 
9 financial integrity of the
applicants and of any other or 
10 separate person that either:

11   (A) controls, directly or indirectly, such 
12 applicant, or

13   (B) is controlled, directly or indirectly, by such 
14 applicant or by a
person which controls, directly or 
15 indirectly, such applicant;

16  (2) the facilities or proposed facilities for the 
17 conduct of riverboat
gambling;

18  (3) the highest prospective total revenue to be derived 
19 by the State
from the conduct of riverboat gambling;

20  (4) the extent to which the ownership of the applicant 
21 reflects the
diversity of the State by including minority 
22 persons, women, and persons with a disability
and the good 
23 faith affirmative action plan of
each applicant to recruit, 
24 train and upgrade minority persons, women, and persons with 
25 a disability in all employment classifications; the Board 
26 shall further consider granting an owners license and 
 
 
10100SB0690ham003- 638 -LRB101 04451 SMS 61572 a


1 giving preference to an applicant under this Section to 
2 applicants in which minority persons and women hold 
3 ownership interest of at least 16% and 4%, respectively. 

4  (4.5) the extent to which the ownership of the 
5 applicant includes veterans of service in the armed forces 
6 of the United States, and the good faith affirmative action 
7 plan of each applicant to recruit, train, and upgrade 
8 veterans of service in the armed forces of the United 
9 States in all employment classifications; 
10  (5) the financial ability of the applicant to purchase 
11 and maintain
adequate liability and casualty insurance;

12  (6) whether the applicant has adequate capitalization 
13 to provide and
maintain, for the duration of a license, a 
14 riverboat or casino;

15  (7) the extent to which the applicant exceeds or meets 
16 other standards
for the issuance of an owners license which 
17 the Board may adopt by rule;
and

18  (8) the The amount of the applicant's license bid; .

19  (9) the extent to which the applicant or the proposed 
20 host municipality plans to enter into revenue sharing 
21 agreements with communities other than the host 
22 municipality; and
23  (10) the extent to which the ownership of an applicant 
24 includes the most qualified number of minority persons, 
25 women, and persons with a disability.
26 (c) Each owners license shall specify the place where the 
 
 
10100SB0690ham003- 639 -LRB101 04451 SMS 61572 a


1casino riverboats shall
operate or the riverboat shall operate 
2and dock.

3 (d) Each applicant shall submit with his application, on 
4forms
provided by the Board, 2 sets of his fingerprints.

5 (e) In addition to any licenses authorized under subsection 
6(e-5) of this Section, the The Board may issue up to 10 
7licenses authorizing the holders of such
licenses to own 
8riverboats. In the application for an owners license, the

9applicant shall state the dock at which the riverboat is based 
10and the water
on which the riverboat will be located. The Board 
11shall issue 5 licenses to
become effective not earlier than 
12January 1, 1991. Three of such licenses
shall authorize 
13riverboat gambling on the Mississippi River, or, with approval

14by the municipality in which the
riverboat was docked on August 
157, 2003 and with Board approval, be authorized to relocate to a 
16new location,
in a
municipality that (1) borders on the 
17Mississippi River or is within 5
miles of the city limits of a 
18municipality that borders on the Mississippi
River and (2), on 
19August 7, 2003, had a riverboat conducting riverboat gambling 
20operations pursuant to
a license issued under this Act; one of 
21which shall authorize riverboat
gambling from a home dock in 
22the city of East St. Louis; and one of which shall authorize 
23riverboat
gambling from a home dock in the City of Alton. One 
24other license
shall
authorize riverboat gambling on
the 
25Illinois River in the City of East Peoria or, with Board 
26approval, shall authorize land-based gambling operations 
 
 
10100SB0690ham003- 640 -LRB101 04451 SMS 61572 a


1anywhere within the corporate limits of the City of Peoria 
2south of Marshall County. The Board shall issue one
additional 
3license to become effective not earlier than March 1, 1992, 
4which
shall authorize riverboat gambling on the Des Plaines 
5River in Will County.
The Board may issue 4 additional licenses 
6to become effective not
earlier than
March 1, 1992. In 
7determining the water upon which riverboats will operate,
the 
8Board shall consider the economic benefit which riverboat 
9gambling confers
on the State, and shall seek to assure that 
10all regions of the State share
in the economic benefits of 
11riverboat gambling.

12 In granting all licenses, the Board may give favorable 
13consideration to
economically depressed areas of the State, to 
14applicants presenting plans
which provide for significant 
15economic development over a large geographic
area, and to 
16applicants who currently operate non-gambling riverboats in

17Illinois.
The Board shall review all applications for owners 
18licenses,
and shall inform each applicant of the Board's 
19decision.
The Board may grant an owners license to an
applicant 
20that has not submitted the highest license bid, but if it does 
21not
select the highest bidder, the Board shall issue a written 
22decision explaining
why another
applicant was selected and 
23identifying the factors set forth in this Section
that favored 
24the winning bidder. The fee for issuance or renewal of a 
25license pursuant to this subsection (e) shall be $250,000.

26 (e-5) In addition to licenses authorized under subsection 
 
 
10100SB0690ham003- 641 -LRB101 04451 SMS 61572 a


1(e) of this Section:
2  (1) the Board may issue one owners license authorizing 
3 the conduct of casino gambling in the City of Chicago;
4  (2) the Board may issue one owners license authorizing 
5 the conduct of riverboat gambling in the City of Danville;
6  (3) the Board may issue one owners license authorizing 
7 the conduct of riverboat gambling located in the City of 
8 Waukegan;
9  (4) the Board may issue one owners license authorizing 
10 the conduct of riverboat gambling in the City of Rockford;
11  (5) the Board may issue one owners license authorizing 
12 the conduct of riverboat gambling in a municipality that is 
13 wholly or partially located in one of the following 
14 townships of Cook County: Bloom, Bremen, Calumet, Rich, 
15 Thornton, or Worth Township; and
16  (6) the Board may issue one owners license authorizing 
17 the conduct of riverboat gambling in the unincorporated 
18 area of Williamson County adjacent to the Big Muddy River.
19 Except for the license authorized under paragraph (1), each 
20application for a license pursuant to this subsection (e-5) 
21shall be submitted to the Board no later than 120 days after 
22the effective date of this amendatory Act of the 101st General 
23Assembly. All applications for a license under this subsection 
24(e-5) shall include the nonrefundable application fee and the 
25nonrefundable background investigation fee as provided in 
26subsection (d) of Section 6 of this Act. In the event that an 
 
 
10100SB0690ham003- 642 -LRB101 04451 SMS 61572 a


1applicant submits an application for a license pursuant to this 
2subsection (e-5) prior to the effective date of this amendatory 
3Act of the 101st General Assembly, such applicant shall submit 
4the nonrefundable application fee and background investigation 
5fee as provided in subsection (d) of Section 6 of this Act no 
6later than 6 months after the effective date of this amendatory 
7Act of the 101st General Assembly. 
8 The Board shall consider issuing a license pursuant to 
9paragraphs (1) through (6) of this subsection only after the 
10corporate authority of the municipality or the county board of 
11the county in which the riverboat or casino shall be located 
12has certified to the Board the following:
13  (i) that the applicant has negotiated with the 
14 corporate authority or county board in good faith;
15  (ii) that the applicant and the corporate authority or 
16 county board have mutually agreed on the permanent location 
17 of the riverboat or casino;
18  (iii) that the applicant and the corporate authority or 
19 county board have mutually agreed on the temporary location 
20 of the riverboat or casino;
21  (iv) that the applicant and the corporate authority or 
22 the county board have mutually agreed on the percentage of 
23 revenues that will be shared with the municipality or 
24 county, if any;
25  (v) that the applicant and the corporate authority or 
26 county board have mutually agreed on any zoning, licensing, 
 
 
10100SB0690ham003- 643 -LRB101 04451 SMS 61572 a


1 public health, or other issues that are within the 
2 jurisdiction of the municipality or county; and
3  (vi) that the corporate authority or county board has 
4 passed a resolution or ordinance in support of the 
5 riverboat or casino in the municipality or county. 
6 At least 7 days before the corporate authority of a 
7municipality or county board of the county submits a 
8certification to the Board concerning items (i) through (vi) of 
9this subsection, it shall hold a public hearing to discuss 
10items (i) through (vi), as well as any other details concerning 
11the proposed riverboat or casino in the municipality or county. 
12The corporate authority or county board must subsequently 
13memorialize the details concerning the proposed riverboat or 
14casino in a resolution that must be adopted by a majority of 
15the corporate authority or county board before any 
16certification is sent to the Board. The Board shall not alter, 
17amend, change, or otherwise interfere with any agreement 
18between the applicant and the corporate authority of the 
19municipality or county board of the county regarding the 
20location of any temporary or permanent facility. 
21 In addition, within 10 days after the effective date of 
22this amendatory Act of the 101st General Assembly, the Board, 
23with consent and at the expense of the City of Chicago, shall 
24select and retain the services of a nationally recognized 
25casino gaming feasibility consultant. Within 45 days after the 
26effective date of this amendatory Act of the 101st General 
 
 
10100SB0690ham003- 644 -LRB101 04451 SMS 61572 a


1Assembly, the consultant shall prepare and deliver to the Board 
2a study concerning the feasibility of, and the ability to 
3finance, a casino in the City of Chicago. The feasibility study 
4shall be delivered to the Mayor of the City of Chicago, the 
5Governor, the President of the Senate, and the Speaker of the 
6House of Representatives. Ninety days after receipt of the 
7feasibility study, the Board shall make a determination, based 
8on the results of the feasibility study, whether to recommend 
9to the General Assembly that the terms of the license under 
10paragraph (1) of this subsection (e-5) should be modified. The 
11Board may begin accepting applications for the owners license 
12under paragraph (1) of this subsection (e-5) upon the 
13determination to issue such an owners license. 
14 In addition, prior to the Board issuing the owners license 
15authorized under paragraph (4) of subsection (e-5), an impact 
16study shall be completed to determine what location in the city 
17will provide the greater impact to the region, including the 
18creation of jobs and the generation of tax revenue. 
19 (e-10) The licenses authorized under subsection (e-5) of 
20this Section shall be issued within 12 months after the date 
21the license application is submitted. If the Board does not 
22issue the licenses within that time period, then the Board 
23shall give a written explanation to the applicant as to why it 
24has not reached a determination and when it reasonably expects 
25to make a determination. The fee for the issuance or renewal of 
26a license issued pursuant to this subsection (e-10) shall be 
 
 
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1$250,000. Additionally, a licensee located outside of Cook 
2County shall pay a minimum initial fee of $17,500 per gaming 
3position, and a licensee located in Cook County shall pay a 
4minimum initial fee of $30,000 per gaming position. The initial 
5fees payable under this subsection (e-10) shall be deposited 
6into the Rebuild Illinois Projects Fund.
7 (e-15) Each licensee of a license authorized under 
8subsection (e-5) of this Section shall make a reconciliation 
9payment 3 years after the date the licensee begins operating in 
10an amount equal to 75% of the adjusted gross receipts for the 
11most lucrative 12-month period of operations, minus an amount 
12equal to the initial payment per gaming position paid by the 
13specific licensee. Each licensee shall pay a $15,000,000 
14reconciliation fee upon issuance of an owners license. If this 
15calculation results in a negative amount, then the licensee is 
16not entitled to any
reimbursement of fees previously paid. This 
17reconciliation payment may be made in installments over a 
18period of no more than 2 years, subject to Board approval. Any 
19installment payments shall include an annual market interest 
20rate as determined by the Board. All payments by licensees 
21under this subsection (e-15) shall be deposited into the 
22Rebuild Illinois Projects Fund.
23 (e-20) In addition to any other revocation powers granted 
24to the Board under this
Act,
the Board may revoke the owners 
25license of a licensee which fails
to begin conducting gambling 
26within 15 months
of receipt of the
Board's approval of the 
 
 
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1application if the Board determines that license
revocation is 
2in the best interests of the State.

3 (f) The first 10 owners licenses issued under this Act 
4shall permit the
holder to own up to 2 riverboats and equipment 
5thereon
for a period of 3 years after the effective date of the 
6license. Holders of
the first 10 owners licenses must pay the 
7annual license fee for each of
the 3
years during which they 
8are authorized to own riverboats.

9 (g) Upon the termination, expiration, or revocation of each 
10of the first
10 licenses, which shall be issued for a 3 year 
11period, all licenses are
renewable annually upon payment of the 
12fee and a determination by the Board
that the licensee 
13continues to meet all of the requirements of this Act and the

14Board's rules.
However, for licenses renewed on or after May 1, 
151998, renewal shall be
for a period of 4 years, unless the 
16Board sets a shorter period.

17 (h) An owners license, except for an owners license issued 
18under subsection (e-5) of this Section, shall entitle the 
19licensee to own up to 2
riverboats. 
20 An owners licensee of a casino or riverboat that is located 
21in the City of Chicago pursuant to paragraph (1) of subsection 
22(e-5) of this Section shall limit the number of gaming 
23positions to 4,000 for such owner. An owners licensee 
24authorized under subsection (e) or paragraph (2), (3), (4), or 
25(5) of subsection (e-5) of this Section shall limit the number 
26of gaming positions to 2,000 for any such owners license. An 
 
 
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1owners licensee authorized under paragraph (6) of subsection 
2(e-5) of this Section A licensee shall limit the number of 
3gaming positions gambling participants to
1,200 for any such 
4owner. The initial fee for each gaming position obtained on or 
5after the effective date of this amendatory Act of the 101st 
6General Assembly shall be a minimum of $17,500 for licensees 
7not located in Cook County and a minimum of $30,000 for 
8licensees located in Cook County, in addition to the 
9reconciliation payment, as set forth in subsection (e-15) of 
10this Section owners license. The fees under this subsection (h) 
11shall be deposited into the Rebuild Illinois Projects Fund. The 
12fees under this subsection (h) that are paid by an owners 
13licensee authorized under subsection (e) shall be paid by July 
141, 2020.
15 
Each owners licensee under subsection (e) of this Section 
16shall reserve its gaming positions within 30 days after the 
17effective date of this amendatory Act of the 101st General 
18Assembly. The Board may grant an extension to this 30-day 
19period, provided that the owners licensee submits a written 
20request and explanation as to why it is unable to reserve its 
21positions within the 30-day period.
22 
Each owners licensee under subsection (e-5) of this 
23Section shall reserve its gaming positions within 30 days after 
24issuance of its owners license. The Board may grant an 
25extension to this 30-day period, provided that the owners 
26licensee submits a written request and explanation as to why it 
 
 
10100SB0690ham003- 648 -LRB101 04451 SMS 61572 a


1is unable to reserve its positions within the 30-day period.
2 A licensee may operate both of its riverboats concurrently, 
3provided that the
total number of gaming positions gambling 
4participants on both riverboats does not exceed the limit 
5established pursuant to this subsection
1,200. Riverboats 
6licensed to operate on the
Mississippi River and the Illinois 
7River south of Marshall County shall
have an authorized 
8capacity of at least 500 persons. Any other riverboat
licensed 
9under this Act shall have an authorized capacity of at least 
10400
persons.

11 (h-5) An owners licensee who conducted gambling operations 
12prior to January 1, 2012 and obtains positions pursuant to this 
13amendatory Act of the 101st General Assembly shall make a 
14reconciliation payment 3 years after any additional gaming 
15positions begin operating in an amount equal to 75% of the 
16owners licensee's average gross receipts for the most lucrative 
1712-month period of operations minus an amount equal to the 
18initial fee that the owners licensee paid per additional gaming 
19position. For purposes of this subsection (h-5), "average gross 
20receipts" means (i) the increase in adjusted gross receipts for 
21the most lucrative 12-month period of operations over the 
22adjusted gross receipts for 2019, multiplied by (ii) the 
23percentage derived by dividing the number of additional gaming 
24positions that an owners licensee had obtained by the total 
25number of gaming positions operated by the owners licensee. If 
26this calculation results in a negative amount, then the owners 
 
 
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1licensee is not entitled to any reimbursement of fees 
2previously paid. This reconciliation payment may be made in 
3installments over a period of no more than 2 years, subject to 
4Board approval. Any installment payments shall include an 
5annual market interest rate as determined by the Board. These 
6reconciliation payments shall be deposited into the Rebuild 
7Illinois Projects Fund. 
8 (i) A licensed owner is authorized to apply to the Board 
9for and, if
approved therefor, to receive all licenses from the 
10Board necessary for the
operation of a riverboat or casino, 
11including a liquor license, a license
to prepare and serve food 
12for human consumption, and other necessary
licenses. All use, 
13occupation and excise taxes which apply to the sale of
food and 
14beverages in this State and all taxes imposed on the sale or 
15use
of tangible personal property apply to such sales aboard 
16the riverboat or in the casino.

17 (j) The Board may issue or re-issue a license authorizing a 
18riverboat to
dock
in a municipality or approve a relocation 
19under Section 11.2 only if, prior
to the issuance or 
20re-issuance of
the license or approval, the governing body of 
21the municipality in which
the riverboat will dock has by a 
22majority vote approved the docking of
riverboats in the 
23municipality. The Board may issue or re-issue a license

24authorizing a
riverboat to dock in areas of a county outside 
25any municipality or approve a
relocation under Section 11.2 
26only if, prior to the issuance or re-issuance
of the license
or 
 
 
10100SB0690ham003- 650 -LRB101 04451 SMS 61572 a


1approval, the
governing body of the county has by a majority 
2vote approved of the docking of
riverboats within such areas.

3 (k) An owners licensee may conduct land-based gambling 
4operations upon approval by the Board and payment of a fee of 
5$250,000, which shall be deposited into the State Gaming Fund. 
6 (l) An owners licensee may conduct gaming at a temporary 
7facility pending the construction of a permanent facility or 
8the remodeling or relocation of an existing facility to 
9accommodate gaming participants for up to 24 months after the 
10temporary facility begins to conduct gaming. Upon request by an 
11owners licensee and upon a showing of good cause by the owners 
12licensee, the Board shall extend the period during which the 
13licensee may conduct gaming at a temporary facility by up to 12 
14months. The Board shall make rules concerning the conduct of 
15gaming from temporary facilities.
16(Source: P.A. 100-391, eff. 8-25-17; 100-1152, eff. 12-14-18.)






17 (230 ILCS 10/7.3)


18 Sec. 7.3. State conduct of gambling operations. 

19 (a) If, after reviewing each application for a re-issued 
20license, the
Board determines that the highest prospective 
21total revenue to the State would
be derived from State conduct 
22of the gambling operation in lieu of re-issuing
the license, 
23the Board shall inform each applicant of its decision. The 
24Board
shall thereafter have the authority, without obtaining an 
25owners license, to
conduct casino or riverboat gambling 
 
 
10100SB0690ham003- 651 -LRB101 04451 SMS 61572 a


1operations as
previously authorized by the terminated, 
2expired, revoked, or nonrenewed
license through a licensed 
3manager selected pursuant to an open and competitive
bidding

4process as set forth in Section 7.5 and as provided in Section 
57.4.

6 (b) The Board may locate any casino or riverboat on which a 
7gambling operation is
conducted by the State in any home dock 
8or other location authorized by Section 3(c)
upon receipt of 
9approval from a majority vote of the governing body of the

10municipality or county, as the case may be, in which the 
11riverboat will dock.

12 (c) The Board shall have jurisdiction over and shall 
13supervise all
gambling operations conducted by the State 
14provided for in this Act and shall
have all powers necessary 
15and proper to fully and effectively execute the
provisions of 
16this Act relating to gambling operations conducted by the 
17State.

18 (d) The maximum number of owners licenses authorized under 
19Section 7
7(e)
shall be reduced by one for each instance in 
20which the Board authorizes the
State to conduct a casino or 
21riverboat gambling operation under subsection (a) in lieu of

22re-issuing a license to an applicant under Section 7.1.

23(Source: P.A. 93-28, eff. 6-20-03.)





24 (230 ILCS 10/7.5)



25 Sec. 7.5. Competitive Bidding. When the Board determines 
 
 
10100SB0690ham003- 652 -LRB101 04451 SMS 61572 a


1that (i) it will re-issue an owners license pursuant to
an
open 
2and competitive bidding process, as set forth in Section 7.1, 
3(ii) or that it
will issue a managers license pursuant to an 
4open and competitive bidding
process, as set forth in Section 
57.4, or (iii) it will issue an owners license pursuant to an 
6open
and competitive bidding process, as set forth in Section 
77.12, the open and competitive bidding process
shall adhere to 
8the following procedures:

9 (1) The Board shall make applications for owners and 
10managers
licenses available to the public and allow a 
11reasonable time for applicants to
submit applications to the 
12Board.

13 (2) During the filing period for owners or managers license 
14applications,
the
Board may retain the services of an 
15investment banking firm to assist the Board
in conducting the 
16open and competitive bidding process.

17 (3) After receiving all of the bid proposals, the Board 
18shall open all of
the
proposals in a public forum and disclose 
19the prospective owners or managers
names, venture partners, if 
20any, and, in the case of applicants for owners
licenses, the 
21locations of the proposed development sites.

22 (4) The Board shall summarize the terms of the proposals 
23and may make this
summary available to the public.

24 (5) The Board shall evaluate the proposals within a 
25reasonable time and
select no
more than 3 final applicants to 
26make presentations of their
proposals to the Board.

 
 
10100SB0690ham003- 653 -LRB101 04451 SMS 61572 a


1 (6) The final applicants shall make their presentations to 
2the
Board on
the same day during an open session of the Board.

3 (7) As soon as practicable after the public presentations 
4by the final
applicants,
the Board, in its
discretion, may 
5conduct further negotiations among the 3 final applicants.

6During such negotiations, each final applicant may increase its 
7license bid or
otherwise enhance its bid proposal. At the 
8conclusion of such
negotiations, the Board shall
select the 
9winning proposal. In the case of negotiations for
an owners 
10license, the Board may, at the conclusion of such negotiations,

11make the determination allowed under Section 7.3(a).

12 (8) Upon selection of a winning bid, the Board shall 
13evaluate the winning
bid
within a reasonable period of time for 
14licensee suitability in accordance with
all applicable 
15statutory and regulatory criteria.

16 (9) If the winning bidder is unable or otherwise fails to

17consummate the transaction, (including if the Board determines 
18that the winning
bidder does not satisfy the suitability 
19requirements), the Board may, on the
same criteria, select from 
20the remaining bidders or make the determination
allowed under 
21Section 7.3(a).

22(Source: P.A. 93-28, eff. 6-20-03.)


23 (230 ILCS 10/7.7 new)
24 Sec. 7.7. Organization gaming licenses.
25 (a) The Illinois Gaming Board shall award one organization 
 
 
10100SB0690ham003- 654 -LRB101 04451 SMS 61572 a


1gaming license to each person or entity having operating 
2control of a racetrack that applies under Section 56 of the 
3Illinois Horse Racing Act of 1975, subject to the application 
4and eligibility requirements of this Section. Within 60 days 
5after the effective date of this amendatory Act of the 101st 
6General Assembly, a person or entity having operating control 
7of a racetrack may submit an application for an organization 
8gaming license. The application shall be made on such forms as 
9provided by the Board and shall contain such information as the 
10Board prescribes, including, but not limited to, the identity 
11of any racetrack at which gaming will be conducted pursuant to 
12an organization gaming license, detailed information regarding 
13the ownership and management of the applicant, and detailed 
14personal information regarding the applicant. The application 
15shall specify the number of gaming positions the applicant 
16intends to use and the place where the organization gaming 
17facility will operate. A person who knowingly makes a false 
18statement on an application is guilty of a Class A misdemeanor.
19 Each applicant shall disclose the identity of every person 
20or entity having a direct or indirect pecuniary interest 
21greater than 1% in any racetrack with respect to which the 
22license is sought. If the disclosed entity is a corporation, 
23the applicant shall disclose the names and addresses of all 
24stockholders and directors. If the disclosed entity is a 
25limited liability company, the applicant shall disclose the 
26names and addresses of all members and managers. If the 
 
 
10100SB0690ham003- 655 -LRB101 04451 SMS 61572 a


1disclosed entity is a partnership, the applicant shall disclose 
2the names and addresses of all partners, both general and 
3limited. If the disclosed entity is a trust, the applicant 
4shall disclose the names and addresses of all beneficiaries.
5 An application shall be filed and considered in accordance 
6with the rules of the Board. Each application for an 
7organization gaming license shall include a nonrefundable 
8application fee of $250,000. In addition, a nonrefundable fee 
9of $50,000 shall be paid at the time of filing to defray the 
10costs associated with background investigations conducted by 
11the Board. If the costs of the background investigation exceed 
12$50,000, the applicant shall pay the additional amount to the 
13Board within 7 days after a request by the Board. If the costs 
14of the investigation are less than $50,000, the applicant shall 
15receive a refund of the remaining amount. All information, 
16records, interviews, reports, statements, memoranda, or other 
17data supplied to or used by the Board in the course of this 
18review or investigation of an applicant for an organization 
19gaming license under this Act shall be privileged and strictly 
20confidential and shall be used only for the purpose of 
21evaluating an applicant for an organization gaming license or a 
22renewal. Such information, records, interviews, reports, 
23statements, memoranda, or other data shall not be admissible as 
24evidence nor discoverable in any action of any kind in any 
25court or before any tribunal, board, agency or person, except 
26for any action deemed necessary by the Board. The application 
 
 
10100SB0690ham003- 656 -LRB101 04451 SMS 61572 a


1fee shall be deposited into the State Gaming Fund.
2 Each applicant shall submit with his or her application, on 
3forms provided by the Board, a set of his or her fingerprints. 
4The Board shall charge each applicant a fee set by the 
5Department of State Police to defray the costs associated with 
6the search and classification of fingerprints obtained by the 
7Board with respect to the applicant's application. This fee 
8shall be paid into the State Police Services Fund. 
9 (b) The Board shall determine within 120 days after 
10receiving an application for an organization gaming license 
11whether to grant an organization gaming license to the 
12applicant. If the Board does not make a determination within 
13that time period, then the Board shall give a written 
14explanation to the applicant as to why it has not reached a 
15determination and when it reasonably expects to make a 
16determination.
17 The organization gaming licensee shall purchase up to the 
18amount of gaming positions authorized under this Act within 120 
19days after receiving its organization gaming license. If an 
20organization gaming licensee is prepared to purchase the gaming 
21positions, but is temporarily prohibited from doing so by order 
22of a court of competent jurisdiction or the Board, then the 
23120-day period is tolled until a resolution is reached.
24 An organization gaming license shall authorize its holder 
25to conduct gaming under this Act at its racetracks on the same 
26days of the year and hours of the day that owners licenses are 
 
 
10100SB0690ham003- 657 -LRB101 04451 SMS 61572 a


1allowed to operate under approval of the Board. 
2 An organization gaming license and any renewal of an 
3organization gaming license shall authorize gaming pursuant to 
4this Section for a period of 4 years. The fee for the issuance 
5or renewal of an organization gaming license shall be $250,000.
6 All payments by licensees under this subsection (b) shall 
7be deposited into the Rebuild Illinois Projects Fund. 
8 (c) To be eligible to conduct gaming under this Section, a 
9person or entity having operating control of a racetrack must 
10(i) obtain an organization gaming license, (ii) hold an 
11organization license under the Illinois Horse Racing Act of 
121975, (iii) hold an inter-track wagering license, (iv) pay an 
13initial fee of $30,000 per gaming position from organization 
14gaming licensees where gaming is conducted in Cook County and, 
15except as provided in subsection (c-5), $17,500 for 
16organization gaming licensees where gaming is conducted 
17outside of Cook County before beginning to conduct gaming plus 
18make the reconciliation payment required under subsection (k), 
19(v) conduct live racing in accordance with subsections (e-1), 
20(e-2), and (e-3) of Section 20 of the Illinois Horse Racing Act 
21of 1975, (vi) meet the requirements of subsection (a) of 
22Section 56 of the Illinois Horse Racing Act of 1975, (vii) for 
23organization licensees conducting standardbred race meetings, 
24keep backstretch barns and dormitories open and operational 
25year-round unless a lesser schedule is mutually agreed to by 
26the organization licensee and the horsemen association racing 
 
 
10100SB0690ham003- 658 -LRB101 04451 SMS 61572 a


1at that organization licensee's race meeting, (viii) for 
2organization licensees conducting thoroughbred race meetings, 
3the organization licensee must maintain accident medical 
4expense liability insurance coverage of $1,000,000 for 
5jockeys, and (ix) meet all other requirements of this Act that 
6apply to owners licensees.
7 An organization gaming licensee may enter into a joint 
8venture with a licensed owner to own, manage, conduct, or 
9otherwise operate the organization gaming licensee's 
10organization gaming facilities, unless the organization gaming 
11licensee has a parent company or other affiliated company that 
12is, directly or indirectly, wholly owned by a parent company 
13that is also licensed to conduct organization gaming, casino 
14gaming, or their equivalent in another state. 
15 All payments by licensees under this subsection (c) shall 
16be deposited into the Rebuild Illinois Projects Fund. 
17 (c-5) A person or entity having operating control of a 
18racetrack located in Madison County shall only pay the initial 
19fees specified in subsection (c) for 540 of the gaming 
20positions authorized under the license. 
21 (d) A person or entity is ineligible to receive an 
22organization gaming license if:
23  (1) the person or entity has been convicted of a felony 
24 under the laws of this State, any other state, or the 
25 United States, including a conviction under the Racketeer 
26 Influenced and Corrupt Organizations Act;
 
 
10100SB0690ham003- 659 -LRB101 04451 SMS 61572 a


1  (2) the person or entity has been convicted of any 
2 violation of Article 28 of the Criminal Code of 2012, or 
3 substantially similar laws of any other jurisdiction;
4  (3) the person or entity has submitted an application 
5 for a license under this Act that contains false 
6 information;
7  (4) the person is a member of the Board;
8  (5) a person defined in (1), (2), (3), or (4) of this 
9 subsection (d) is an officer, director, or managerial 
10 employee of the entity;
11  (6) the person or entity employs a person defined in 
12 (1), (2), (3), or (4) of this subsection (d) who 
13 participates in the management or operation of gambling 
14 operations authorized under this Act; or
15  (7) a license of the person or entity issued under this 
16 Act or a license to own or operate gambling facilities in 
17 any other jurisdiction has been revoked. 
18 (e) The Board may approve gaming positions pursuant to an 
19organization gaming license statewide as provided in this 
20Section. The authority to operate gaming positions under this 
21Section shall be allocated as follows: up to 1,200 gaming 
22positions for any organization gaming licensee in Cook County 
23and up to 900 gaming positions for any organization gaming 
24licensee outside of Cook County.
25 (f) Each applicant for an organization gaming license shall 
26specify in its application for licensure the number of gaming 
 
 
10100SB0690ham003- 660 -LRB101 04451 SMS 61572 a


1positions it will operate, up to the applicable limitation set 
2forth in subsection (e) of this Section. Any unreserved gaming 
3positions that are not specified shall be forfeited and 
4retained by the Board. For the purposes of this subsection (f), 
5an organization gaming licensee that did not conduct live 
6racing in 2010 and is located within 3 miles of the Mississippi 
7River may reserve up to 900 positions and shall not be 
8penalized under this Section for not operating those positions 
9until it meets the requirements of subsection (e) of this 
10Section, but such licensee shall not request unreserved gaming 
11positions under this subsection (f) until its 900 positions are 
12all operational. 
13 Thereafter, the Board shall publish the number of 
14unreserved gaming positions and shall accept requests for 
15additional positions from any organization gaming licensee 
16that initially reserved all of the positions that were offered. 
17The Board shall allocate expeditiously the unreserved gaming 
18positions to requesting organization gaming licensees in a 
19manner that maximizes revenue to the State. The Board may 
20allocate any such unused gaming positions pursuant to an open 
21and competitive bidding process, as provided under Section 7.5 
22of this Act. This process shall continue until all unreserved 
23gaming positions have been purchased. All positions obtained 
24pursuant to this process and all positions the organization 
25gaming licensee specified it would operate in its application 
26must be in operation within 18 months after they were obtained 
 
 
10100SB0690ham003- 661 -LRB101 04451 SMS 61572 a


1or the organization gaming licensee forfeits the right to 
2operate those positions, but is not entitled to a refund of any 
3fees paid. The Board may, after holding a public hearing, grant 
4extensions so long as the organization gaming licensee is 
5working in good faith to make the positions operational. The 
6extension may be for a period of 6 months. If, after the period 
7of the extension, the organization gaming licensee has not made 
8the positions operational, then another public hearing must be 
9held by the Board before it may grant another extension. 
10 Unreserved gaming positions retained from and allocated to 
11organization gaming licensees by the Board pursuant to this 
12subsection (f) shall not be allocated to owners licensees under 
13this Act. 
14 For the purpose of this subsection (f), the unreserved 
15gaming positions for each organization gaming licensee shall be 
16the applicable limitation set forth in subsection (e) of this 
17Section, less the number of reserved gaming positions by such 
18organization gaming licensee, and the total unreserved gaming 
19positions shall be the aggregate of the unreserved gaming 
20positions for all organization gaming licensees. 
21 (g) An organization gaming licensee is authorized to 
22conduct the following at a racetrack:
23  (1) slot machine gambling;
24  (2) video game of chance gambling;
25  (3) gambling with electronic gambling games as defined 
26 in this Act or defined by the Illinois Gaming Board; and
 
 
10100SB0690ham003- 662 -LRB101 04451 SMS 61572 a


1  (4) table games. 
2 (h) Subject to the approval of the Illinois Gaming Board, 
3an organization gaming licensee may make modification or 
4additions to any existing buildings and structures to comply 
5with the requirements of this Act. The Illinois Gaming Board 
6shall make its decision after consulting with the Illinois 
7Racing Board. In no case, however, shall the Illinois Gaming 
8Board approve any modification or addition that alters the 
9grounds of the organization licensee such that the act of live 
10racing is an ancillary activity to gaming authorized under this 
11Section.
Gaming authorized under this Section may take place in 
12existing structures where inter-track wagering is conducted at 
13the racetrack or a facility within 300 yards of the racetrack 
14in accordance with the provisions of this Act and the Illinois 
15Horse Racing Act of 1975.
16 (i) An organization gaming licensee may conduct gaming at a 
17temporary facility pending the construction of a permanent 
18facility or the remodeling or relocation of an existing 
19facility to accommodate gaming participants for up to 24 months 
20after the temporary facility begins to conduct gaming 
21authorized under this Section. Upon request by an organization 
22gaming licensee and upon a showing of good cause by the 
23organization gaming licensee, the Board shall extend the period 
24during which the licensee may conduct gaming authorized under 
25this Section at a temporary facility by up to 12 months. The 
26Board shall make rules concerning the conduct of gaming 
 
 
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1authorized under this Section from temporary facilities.
2 The gaming authorized under this Section may take place in 
3existing structures where inter-track wagering is conducted at 
4the racetrack or a facility within 300 yards of the racetrack 
5in accordance with the provisions of this Act and the Illinois 
6Horse Racing Act of 1975.
7 (i-5) Under no circumstances shall an organization gaming 
8licensee conduct gaming at any State or county fair. 
9 (j) The Illinois Gaming Board must adopt emergency rules in 
10accordance with Section 5-45 of the Illinois Administrative 
11Procedure Act as necessary to ensure compliance with the 
12provisions of this amendatory Act of the 101st General Assembly

13concerning the conduct of gaming by an organization gaming 
14licensee. The adoption of emergency rules authorized by this 
15subsection (j) shall be deemed to be necessary for the public 
16interest, safety, and welfare.
17 (k) Each organization gaming licensee who obtains gaming 
18positions must make a reconciliation payment 3 years after the 
19date the organization gaming licensee begins operating the 
20positions in an amount equal to 75% of the difference between 
21its adjusted gross receipts from gaming authorized under this 
22Section and amounts paid to its purse accounts pursuant to item 
23(1) of subsection (b) of Section 56 of the Illinois Horse 
24Racing Act of 1975 for the 12-month period for which such 
25difference was the largest, minus an amount equal to the 
26initial per position fee paid by the organization gaming 
 
 
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1licensee. If this calculation results in a negative amount, 
2then the organization gaming licensee is not entitled to any 
3reimbursement of fees previously paid. This reconciliation 
4payment may be made in installments over a period of no more 
5than 2 years, subject to Board approval. Any installment 
6payments shall include an annual market interest rate as 
7determined by the Board.
8 All payments by licensees under this subsection (k) shall 
9be deposited into the Rebuild Illinois Projects Fund. 
10 (l) As soon as practical after a request is made by the 
11Illinois Gaming Board, to minimize duplicate submissions by the 
12applicant, the Illinois Racing Board must provide information 
13on an applicant for an organization gaming license to the 
14Illinois Gaming Board.

15 (230 ILCS 10/7.8 new)

16 Sec. 7.8. Home rule. The regulation and licensing of 
17organization gaming licensees and gaming conducted pursuant to 
18an organization gaming license are exclusive powers and 
19functions of the State. A home rule unit may not regulate or 
20license such gaming or organization gaming licensees. This 
21Section is a denial and limitation of home rule powers and 
22functions under subsection (h) of Section
6 of Article VII of 
23the Illinois Constitution.

24 (230 ILCS 10/7.10 new)
 
 
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1 Sec. 7.10. Diversity program.
2 (a) Each owners licensee, organization gaming licensee, 
3and suppliers licensee shall establish and maintain a diversity 
4program to ensure non-discrimination in the award and 
5administration of contracts. The programs shall establish 
6goals of awarding not less than 25% of the annual dollar value 
7of all contracts, purchase orders, or other agreements to 
8minority-owned businesses and 5% of the annual dollar value of 
9all contracts to women-owned businesses.
10 (b) Each owners licensee, organization gaming licensee, 
11and suppliers licensee shall establish and maintain a diversity 
12program designed to promote equal opportunity for employment. 
13The program shall establish hiring goals as the Board and each 
14licensee determines appropriate. The Board shall monitor the 
15progress of the gaming licensee's progress with respect to the 
16program's goals.
17 (c) No later than May 31 of each year, each licensee shall 
18report to the Board (1) the number of respective employees and 
19the number of its respective employees who have designated 
20themselves as members of a minority group and gender and (2) 
21the total goals achieved under subsection (a) of this Section 
22as a percentage of the total contracts awarded by the license. 
23In addition, all licensees shall submit a report with respect 
24to the minority-owned and women-owned businesses program 
25created in this Section to the Board.
26 (d) When considering whether to re-issue or renew a license 
 
 
10100SB0690ham003- 666 -LRB101 04451 SMS 61572 a


1to an owners licensee, organization gaming licensee, or 
2suppliers licensee, the Board shall take into account the 
3licensee's success in complying with the provisions of this 
4Section. If an owners licensee, organization gaming licensee, 
5or suppliers licensee has not satisfied the goals contained in 
6this Section, the Board shall require a written explanation as 
7to why the licensee is not in compliance and shall require the 
8licensee to file multi-year metrics designed to achieve 
9compliance with the provisions by the next renewal period, 
10consistent with State and federal law.

11 (230 ILCS 10/7.11 new)
12 Sec. 7.11. Annual report on diversity.
13 (a) Each licensee that receives a license under Sections 7, 
147.1, and 7.7 shall execute and file a report with the Board no 
15later than December 31 of each year that shall contain, but not 
16be limited to, the following information:
17  (i) a good faith affirmative action plan to recruit, 
18 train, and upgrade minority persons, women, and persons 
19 with a disability in all employment classifications;
20  (ii) the total dollar amount of contracts that were 
21 awarded to businesses owned by minority persons, women, and 
22 persons with a disability;
23  (iii) the total number of businesses owned by minority 
24 persons, women, and persons with a disability that were 
25 utilized by the licensee;
 
 
10100SB0690ham003- 667 -LRB101 04451 SMS 61572 a


1  (iv) the utilization of businesses owned by minority 
2 persons, women, and persons with disabilities during the 
3 preceding year; and
4  (v) the outreach efforts used by the licensee to 
5 attract investors and businesses consisting of minority 
6 persons, women, and persons with a disability.
7 (b) The Board shall forward a copy of each licensee's 
8annual reports to the General Assembly no later than February 1 
9of each year. The reports to the General Assembly shall be 
10filed with the Clerk of the House of Representatives and the 
11Secretary of the Senate in electronic form only, in the manner 
12that the Clerk and the Secretary shall direct.

13 (230 ILCS 10/7.12 new)
14 Sec. 7.12. Issuance of new owners licenses.
15 (a) Owners licenses newly authorized pursuant to this 
16amendatory Act of the 101st General Assembly may be issued by 
17the Board to a qualified applicant pursuant to an open and 
18competitive bidding process, as set forth in Section 7.5, and 
19subject to the maximum number of authorized licenses set forth 
20in subsection (e-5) of Section 7 of this Act.
21 (b) To be a qualified applicant, a person or entity may not 
22be ineligible to receive an owners license under subsection (a) 
23of Section 7 of this Act and must submit an application for an 
24owners license that complies with Section 6 of this Act.
25 (c) In determining whether to grant an owners license to an 
 
 
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1applicant, the Board shall consider all of the factors set 
2forth in subsections (b) and (e-10) of Section 7 of this Act, 
3as well as the amount of the applicant's license bid. The Board 
4may grant the owners license to an applicant that has not 
5submitted the highest license bid, but if it does not select 
6the highest bidder, the Board shall issue a written decision 
7explaining why another applicant was selected and identifying 
8the factors set forth in subsections (b) and (e-10) of Section 
97 of this Act that favored the winning bidder.

10 (230 ILCS 10/7.13 new)
11 Sec. 7.13. Environmental standards.  All permanent 
12casinos, riverboats, and organization gaming facilities shall 
13consist of buildings that are certified as meeting the U.S. 
14Green Building Council's Leadership in Energy and 
15Environmental Design standards. The provisions of this Section 
16apply to a holder of an owners license or organization gaming 
17license that (i) begins operations on or after January 1, 2019 
18or (ii) relocates its facilities on or after the effective date 
19of this amendatory Act of the 101st General Assembly.

20 (230 ILCS 10/7.14 new)
21 Sec. 7.14. Chicago Casino Advisory Committee. An Advisory 
22Committee is established to monitor, review, and report on (1) 
23the utilization of minority-owned business enterprises and 
24women-owned business enterprises by the owners licensee, (2) 
 
 
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1employment of women, and (3) employment of minorities with 
2regard to the development and construction of the casino as 
3authorized under paragraph (1) of subsection (e-5) of Section 7 
4of the Illinois Gambling Act. The owners licensee under 
5paragraph (1) of subsection (e-5) of Section 7 of the Illinois 
6Gambling Act shall work with the Advisory Committee in 
7accumulating necessary information for the Advisory Committee 
8to submit reports, as necessary, to the General Assembly and to 
9the City of Chicago.
10 The Advisory Committee shall consist of 9 members as 
11provided in this Section. Five members shall be selected by the 
12Governor and 4 members shall be selected by the Mayor of the 
13City of Chicago. The Governor and the Mayor of the City of 
14Chicago shall each appoint at least one current member of the 
15General Assembly. The Advisory Committee shall meet 
16periodically and shall report the information to the Mayor of 
17the City of Chicago and to the General Assembly by December 
1831st of every year.
19 The Advisory Committee shall be dissolved on the date that 
20casino gambling operations are first conducted at a permanent 
21facility under the license authorized under paragraph (1) of 
22subsection (e-5) Section 7 of the Illinois Gambling Act. For 
23the purposes of this Section, the terms "woman" and "minority 
24person" have the meanings provided in Section 2 of the Business 
25Enterprise for Minorities, Women, and Persons with 
26Disabilities Act. 

 
 
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1 (230 ILCS 10/7.15 new)
2 Sec. 7.15. Limitations on gaming at Chicago airports. The 
3Chicago casino may conduct gaming operations in an airport 
4under the administration or control of the Chicago Department 
5of Aviation. Gaming operations may be conducted pursuant to 
6this Section so long as: (i) gaming operations are conducted in 
7a secured area that is beyond the Transportation Security 
8Administration security checkpoints and only available to 
9airline passengers at least 21 years of age who are members of 
10a private club, and not to the general public, (ii) gaming 
11operations are limited to slot machines, as defined in Section 
124 of the Illinois Gambling Act, and (iii) the combined number 
13of gaming positions operating in the City of Chicago at the 
14airports and at the temporary and permanent casino facility 
15does not exceed the maximum number of gaming positions 
16authorized pursuant to subsection (h) of Section 7 of the 
17Illinois Gambling Act. Gaming operations at an airport are 
18subject to all applicable laws and rules that apply to any 
19other gaming facility under the Illinois Gambling Act.




20 (230 ILCS 10/8) (from Ch. 120, par. 2408)



21 Sec. 8. Suppliers licenses. 

22 (a) The Board may issue a suppliers license to such 
23persons, firms or
corporations which apply therefor upon the 
24payment of a non-refundable
application fee set by the Board, 
 
 
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1upon a determination by the Board that
the applicant is 
2eligible for a suppliers license and upon payment of a
$5,000 
3annual license
fee.

4 (b) The holder of a suppliers license is authorized to sell 
5or lease,
and to contract to sell or lease, gambling equipment 
6and supplies to any
licensee involved in the ownership or 
7management of gambling operations.

8 (c) Gambling supplies and equipment may not be distributed

9unless supplies and equipment conform to standards adopted by

10rules of the Board.

11 (d) A person, firm or corporation is ineligible to receive 
12a suppliers
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 1961 or the Criminal 
17 Code of 2012, or substantially similar laws of any other 
18 jurisdiction;


19  (3) the person has submitted an application for a 
20 license under this
Act which contains false information;


21  (4) the person is a member of the Board;


22  (5) the entity firm or corporation is one in which a 
23 person defined in (1),
(2), (3) or (4), is an officer, 
24 director or managerial employee;


25  (6) the firm or corporation employs a person who 
26 participates in the
management or operation of riverboat 
 
 
10100SB0690ham003- 672 -LRB101 04451 SMS 61572 a


1 gambling authorized under this Act;


2  (7) the license of the person, firm or corporation 
3 issued under
this Act, or a license to own or operate 
4 gambling facilities
in any other jurisdiction, has been 
5 revoked.

6 (e) Any person that supplies any equipment, devices, or 
7supplies to a
licensed riverboat gambling operation must first 
8obtain a suppliers
license. A supplier shall furnish to the 
9Board a list of all equipment,
devices and supplies offered for 
10sale or lease in connection with gambling
games authorized 
11under this Act. A supplier shall keep books and records
for the 
12furnishing of equipment, devices and supplies to gambling

13operations separate and distinct from any other business that 
14the supplier
might operate. A supplier shall file a quarterly 
15return with the Board
listing all sales and leases. A supplier 
16shall permanently affix its name or a distinctive logo or other 
17mark or design element identifying the manufacturer or supplier

18to all its equipment, devices, and supplies, except gaming 
19chips without a value impressed, engraved, or imprinted on it, 
20for gambling operations.
The Board may waive this requirement 
21for any specific product or products if it determines that the 
22requirement is not necessary to protect the integrity of the 
23game. Items purchased from a licensed supplier may continue to 
24be used even though the supplier subsequently changes its name, 
25distinctive logo, or other mark or design element; undergoes a 
26change in ownership; or ceases to be licensed as a supplier for 
 
 
10100SB0690ham003- 673 -LRB101 04451 SMS 61572 a


1any reason. Any supplier's equipment, devices or supplies which 
2are used by any person
in an unauthorized gambling operation 
3shall be forfeited to the State. A holder of an owners license 
4or an organization gaming license A
licensed owner may own its 
5own equipment, devices and supplies. Each
holder of an owners 
6license or an organization gaming license under the Act shall 
7file an annual report
listing its inventories of gambling 
8equipment, devices and supplies.

9 (f) Any person who knowingly makes a false statement on an 
10application
is guilty of a Class A misdemeanor.

11 (g) Any gambling equipment, devices and supplies provided 
12by any
licensed supplier may either be repaired on the 
13riverboat, in the casino, or at the organization gaming 
14facility or removed from
the riverboat, casino, or organization 
15gaming facility to a an on-shore facility owned by the holder 
16of an owners
license, organization gaming license, or suppliers 
17license for repair.

18(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13; 
1998-756, eff. 7-16-14.)





20 (230 ILCS 10/9) (from Ch. 120, par. 2409)



21 Sec. 9. Occupational licenses. 

22 (a) The Board may issue an occupational license to an 
23applicant upon the
payment of a non-refundable fee set by the 
24Board, upon a determination by
the Board that the applicant is 
25eligible for an occupational license and
upon payment of an 
 
 
10100SB0690ham003- 674 -LRB101 04451 SMS 61572 a


1annual license fee in an amount to be established. To
be 
2eligible for an occupational license, an applicant must:


3  (1) be at least 21 years of age if the applicant will 
4 perform any
function involved in gaming by patrons. Any 
5 applicant seeking an
occupational license for a non-gaming 
6 function shall be at least 18 years
of age;


7  (2) not have been convicted of a felony offense, a 
8 violation of Article
28 of the Criminal Code of 1961 or the 
9 Criminal Code of 2012, or a similar statute of any other

10 jurisdiction;

11  (2.5) not have been convicted of a crime, other than a 
12 crime described in item (2) of this subsection (a), 
13 involving dishonesty or moral turpitude, except that the 
14 Board may, in its discretion, issue an occupational license 
15 to a person who has been convicted of a crime described in 
16 this item (2.5) more than 10 years prior to his or her 
17 application and has not subsequently been convicted of any 
18 other crime; 

19  (3) have demonstrated a level of skill or knowledge 
20 which the Board
determines to be necessary in order to 
21 operate gambling aboard a riverboat, in a casino, or at an 
22 organization gaming facility; and


23  (4) have met standards for the holding of an 
24 occupational license as
adopted by rules of the Board. Such 
25 rules shall provide that any person or
entity seeking an 
26 occupational license to manage gambling operations
under 
 
 
10100SB0690ham003- 675 -LRB101 04451 SMS 61572 a


1 this Act hereunder shall be subject to background inquiries 
2 and further requirements
similar to those required of 
3 applicants for an owners license.
Furthermore, such rules 
4 shall provide that each such entity shall be
permitted to 
5 manage gambling operations for only one licensed owner.

6 (b) Each application for an occupational license shall be 
7on forms
prescribed by the Board and shall contain all 
8information required by the
Board. The applicant shall set 
9forth in the application: whether he has been
issued prior 
10gambling related licenses; whether he has been licensed in any

11other state under any other name, and, if so, such name and his 
12age; and
whether or not a permit or license issued to him in 
13any other state has
been suspended, restricted or revoked, and, 
14if so, for what period of time.

15 (c) Each applicant shall submit with his application, on 
16forms provided
by the Board, 2 sets of his fingerprints. The 
17Board shall charge each
applicant a fee set by the Department 
18of State Police to defray the costs
associated with the search 
19and classification of fingerprints obtained by
the Board with 
20respect to the applicant's application. These fees shall be

21paid into the State Police Services Fund.

22 (d) The Board may in its discretion refuse an occupational 
23license to
any person: (1) who is unqualified to perform the 
24duties required of such
applicant; (2) who fails to disclose or 
25states falsely any information
called for in the application; 
26(3) who has been found guilty of a
violation of this Act or 
 
 
10100SB0690ham003- 676 -LRB101 04451 SMS 61572 a


1whose prior gambling related license or
application therefor 
2has been suspended, restricted, revoked or denied for
just 
3cause in any other state; or (4) for any other just cause.

4 (e) The Board may suspend, revoke or restrict any 
5occupational licensee:
(1) for violation of any provision of 
6this Act; (2) for violation of any
of the rules and regulations 
7of the Board; (3) for any cause which, if
known to the Board, 
8would have disqualified the applicant from receiving
such 
9license; or (4) for default in the payment of any obligation or 
10debt
due to the State of Illinois; or (5) for any other just 
11cause.

12 (f) A person who knowingly makes a false statement on an 
13application is
guilty of a Class A misdemeanor.

14 (g) Any license issued pursuant to this Section shall be 
15valid for a
period of one year from the date of issuance.

16 (h) Nothing in this Act shall be interpreted to prohibit a 
17licensed
owner or organization gaming licensee from entering 
18into an agreement with a public community college or a school 
19approved under the
Private Business and Vocational Schools Act 
20of 2012 for the training of any
occupational licensee. Any 
21training offered by such a school shall be in
accordance with a 
22written agreement between the licensed owner or organization 
23gaming licensee and the school.

24 (i) Any training provided for occupational licensees may be 
25conducted
either at the site of the gambling facility on the 
26riverboat or at a school with which a licensed owner or 
 
 
10100SB0690ham003- 677 -LRB101 04451 SMS 61572 a


1organization gaming licensee has
entered into an agreement 
2pursuant to subsection (h).

3(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12; 
497-1150, eff. 1-25-13.)





5 (230 ILCS 10/11) (from Ch. 120, par. 2411)



6 Sec. 11. Conduct of gambling. Gambling may be conducted by 
7licensed owners or licensed managers on behalf
of the State 
8aboard riverboats. Gambling may be conducted by organization 
9gaming licensees at organization gaming facilities. Gambling 
10authorized under this Section is ,
subject to the following 
11standards:


12  (1) A licensee may conduct riverboat gambling 
13 authorized under this Act
regardless of whether it conducts 
14 excursion cruises. A licensee may permit
the continuous 
15 ingress and egress of patrons passengers on a riverboat not 
16 used for excursion cruises for the purpose of gambling. 
17 Excursion cruises shall not exceed 4 hours for a round 
18 trip. However, the Board may grant express approval for an 
19 extended cruise on a case-by-case basis. 

20  (1.5) An owners licensee may conduct gambling 
21 operations authorized under this Act 24 hours a day. 

22  (2) (Blank).


23  (3) Minimum and maximum wagers on games shall be set by 
24 the licensee.


25  (4) Agents of the Board and the Department of State 
 
 
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1 Police may board
and inspect any riverboat, enter and 
2 inspect any portion of a casino, or enter and inspect any 
3 portion of an organization gaming facility at any time for 
4 the purpose of determining
whether this Act is being 
5 complied with. Every riverboat, if under way and
being 
6 hailed by a law enforcement officer or agent of the Board, 
7 must stop
immediately and lay to.


8  (5) Employees of the Board shall have the right to be 
9 present on the
riverboat or in the casino or on adjacent 
10 facilities under the control of the licensee and at the 
11 organization gaming facility under the control of the 
12 organization gaming licensee.


13  (6) Gambling equipment and supplies customarily used 
14 in conducting
riverboat gambling must be purchased or 
15 leased only from suppliers licensed
for such purpose under 
16 this Act. The Board may approve the transfer, sale, or 
17 lease of gambling equipment and supplies by a licensed 
18 owner from or to an affiliate of the licensed owner as long 
19 as the gambling equipment and supplies were initially 
20 acquired from a supplier licensed in Illinois. 


21  (7) Persons licensed under this Act shall permit no 
22 form of wagering on
gambling games except as permitted by 
23 this Act.


24  (8) Wagers may be received only from a person present 
25 on a licensed
riverboat, in a casino, or at an organization 
26 gaming facility. No person present on a licensed riverboat, 
 
 
10100SB0690ham003- 679 -LRB101 04451 SMS 61572 a


1 in a casino, or at an organization gaming facility shall 
2 place
or attempt to place a wager on behalf of another 
3 person who is not present
on the riverboat, in a casino, or 
4 at the organization gaming facility.


5  (9) Wagering, including gaming authorized under 
6 Section 7.7, shall not be conducted with money or other 
7 negotiable
currency.


8  (10) A person under age 21 shall not be permitted on an 
9 area of a
riverboat or casino where gambling is being 
10 conducted or at an organization gaming facility where 
11 gambling is being conducted, except for a person at least

12 18 years of age who is an employee of the riverboat or 
13 casino gambling operation or gaming operation. No
employee 
14 under age 21 shall perform any function involved in 
15 gambling by
the patrons. No person under age 21 shall be 
16 permitted to make a wager under
this Act, and any winnings 
17 that are a result of a wager by a person under age 21, 
18 whether or not paid by a licensee, shall be treated as 
19 winnings for the privilege tax purposes, confiscated, and 
20 forfeited to the State and deposited into the Education 
21 Assistance Fund.


22  (11) Gambling excursion cruises are permitted only 
23 when the waterway for
which the riverboat is licensed is 
24 navigable, as determined by
the Board in consultation with 
25 the U.S. Army Corps of Engineers.
This paragraph (11) does 
26 not limit the ability of a licensee to conduct
gambling 
 
 
10100SB0690ham003- 680 -LRB101 04451 SMS 61572 a


1 authorized under this Act when gambling excursion cruises 
2 are not
permitted.


3  (12) All tickets tokens, chips, or electronic cards 
4 used to make wagers must be
purchased (i) from a licensed 
5 owner or manager, in the case of a riverboat, either aboard 
6 a riverboat or at
an onshore
facility which has been 
7 approved by the Board and which is located where
the 
8 riverboat docks, (ii) in the case of a casino, from a 
9 licensed owner at the casino, or (iii) from an organization 
10 gaming licensee at the organization gaming facility. The 
11 tickets tokens, chips, or electronic cards may be
purchased 
12 by means of an agreement under which the owner or manager 
13 extends
credit to
the patron. Such tickets tokens, chips, 
14 or electronic cards may be used
while aboard the riverboat, 
15 in the casino, or at the organization gaming facility only 
16 for the purpose of making wagers on
gambling games.


17  (13) Notwithstanding any other Section of this Act, in 
18 addition to the
other licenses authorized under this Act, 
19 the Board may issue special event
licenses allowing persons 
20 who are not otherwise licensed to conduct
riverboat 
21 gambling to conduct such gambling on a specified date or 
22 series
of dates. Riverboat gambling under such a license 
23 may take place on a
riverboat not normally used for 
24 riverboat gambling. The Board shall
establish standards, 
25 fees and fines for, and limitations upon, such
licenses, 
26 which may differ from the standards, fees, fines and 
 
 
10100SB0690ham003- 681 -LRB101 04451 SMS 61572 a


1 limitations
otherwise applicable under this Act. All such 
2 fees shall be deposited into
the State Gaming Fund. All 
3 such fines shall be deposited into the
Education Assistance 
4 Fund, created by Public Act 86-0018, of the State
of 
5 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, or 
14organization gaming licensee who extends credit to a riverboat 
15gambling patron pursuant
to paragraph (12) of Section 11 
16Section 11 (a) (12) of this Act is expressly authorized to 
17institute a
cause of action to collect any amounts due and 
18owing under the extension of
credit, as well as the licensed 
19owner's, licensed or manager's, or organization gaming 
20licensee's costs, expenses and reasonable
attorney's
fees 
21incurred in collection.

22(Source: P.A. 93-28, eff. 6-20-03.)





23 (230 ILCS 10/12) (from Ch. 120, par. 2412)



24 Sec. 12. Admission tax; fees. 

 
 
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1 (a) A tax is hereby imposed upon admissions to riverboat 
2and casino gambling facilities riverboats operated by
licensed 
3owners authorized pursuant to this Act. Until July 1, 2002, the

4rate is $2 per person admitted. From July 1, 2002 until
July 1, 
52003, the rate is $3 per person admitted.
From July 1, 2003 
6until August 23, 2005 (the effective date of Public Act 
794-673), for a licensee that admitted 1,000,000 persons or

8fewer in the previous calendar year, the rate is $3 per person 
9admitted; for a
licensee that admitted more than 1,000,000 but 
10no more than 2,300,000 persons
in the previous calendar year, 
11the rate is $4 per person admitted; and for
a licensee that 
12admitted more than 2,300,000 persons in the previous calendar

13year, the rate is $5 per person admitted.
Beginning on August 
1423, 2005 (the effective date of Public Act 94-673), for a 
15licensee that admitted 1,000,000 persons or
fewer in calendar 
16year 2004, the rate is $2 per person admitted, and for all 
17other
licensees, including licensees that were not conducting 
18gambling operations in 2004, the rate is $3 per person 
19admitted.
This admission tax is imposed upon the
licensed owner 
20conducting gambling.

21  (1) The admission tax shall be paid for each admission, 
22 except that a person who exits a riverboat gambling 
23 facility and reenters that riverboat gambling facility 
24 within the same gaming day shall be subject only to the 
25 initial admission tax.

26  (2) (Blank).

 
 
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1  (3) The riverboat licensee may issue tax-free passes to

2 actual and necessary officials and employees of the 
3 licensee or other
persons actually working on the 
4 riverboat.

5  (4) The number and issuance of tax-free passes is 
6 subject to the rules
of the Board, and a list of all 
7 persons to whom the tax-free passes are
issued shall be 
8 filed with the Board.

9 (a-5) A fee is hereby imposed upon admissions operated by 
10licensed
managers on behalf of the State pursuant to Section 
117.3 at the rates provided
in
this subsection (a-5). For a 
12licensee that
admitted 1,000,000 persons or fewer in the 
13previous calendar year, the rate is
$3 per person admitted; for 
14a licensee that admitted more than 1,000,000 but no
more than 
152,300,000 persons
in the previous calendar year, the rate is $4 
16per person admitted; and for
a licensee that admitted more than 
172,300,000 persons in the previous calendar
year, the rate is $5 
18per person admitted.

19  (1) The admission fee shall be paid for each admission.

20  (2) (Blank).

21  (3) The licensed manager may issue fee-free passes to 
22 actual and necessary
officials and employees of the manager 
23 or other persons actually working on the
riverboat.


24  (4) The number and issuance of fee-free passes is 
25 subject to the rules
of the Board, and a list of all 
26 persons to whom the fee-free passes are
issued shall be 
 
 
10100SB0690ham003- 684 -LRB101 04451 SMS 61572 a


1 filed with the Board.

2 (b) Except as provided in subsection (b-5), from From the 
3tax imposed under subsection (a) and the fee imposed under

4subsection (a-5), a municipality shall receive from the State 
5$1 for each
person embarking on a riverboat docked within the 
6municipality or entering a casino located within the 
7municipality, and a county
shall receive $1 for each person 
8entering a casino or embarking on a riverboat docked within the

9county but outside the boundaries of any municipality. The 
10municipality's or
county's share shall be collected by the 
11Board on behalf of the State and
remitted quarterly by the 
12State, subject to appropriation, to the treasurer of
the unit 
13of local government for deposit in the general fund.

14 (b-5) From the tax imposed under subsection (a) and the fee 
15imposed under subsection (a-5), $1 for each person embarking on 
16a riverboat designated in paragraph (4) of subsection (e-5) of 
17Section 7 shall be divided as follows: $0.70 to the City of 
18Rockford, $0.05 to the City of Loves Park, $0.05 to the Village 
19of Machesney Park, and $0.20 to Winnebago County.
20 The municipality's or county's share shall be collected by 
21the Board on behalf of the State and remitted monthly by the 
22State, subject to appropriation, to the treasurer of the unit 
23of local government for deposit in the general fund. 
24 (b-10) From the tax imposed under subsection (a) and the 
25fee imposed under subsection (a-5), $1 for each person 
26embarking on a riverboat or entering a casino designated in 
 
 
10100SB0690ham003- 685 -LRB101 04451 SMS 61572 a


1paragraph (1) of subsection (e-5) of Section 7 shall be divided 
2as follows:
$0.70 to the City of Chicago,
$0.15 to the Village 
3of Maywood,
and $0.15 to the Village of Summit.
4 The municipality's or county's share shall be collected by 
5the Board on behalf of the State and remitted monthly by the 
6State, subject to appropriation, to the treasurer of the unit 
7of local government for deposit in the general fund. 
8 (b-15) From the tax imposed under subsection (a) and the 
9fee imposed under subsection (a-5), $1 for each person 
10embarking on a riverboat or entering a casino designated in 
11paragraph (2) of subsection (e-5) of Section 7 shall be divided 
12as follows:
$0.70 to the City of Danville and
$0.30 to 
13Vermilion County.
14 The municipality's or county's share shall be collected by 
15the Board on behalf of the State and remitted monthly by the 
16State, subject to appropriation, to the treasurer of the unit 
17of local government for deposit in the general fund. 
18 (c) The licensed owner shall pay the entire admission tax 
19to the Board and
the licensed manager shall pay the entire 
20admission fee to the Board.
Such payments shall be made daily. 
21Accompanying each payment shall be a
return on forms provided 
22by the Board which shall include other
information regarding 
23admissions as the Board may require. Failure to
submit either 
24the payment or the return within the specified time may
result 
25in suspension or revocation of the owners or managers license.

26 (c-5) A tax is imposed on admissions to organization gaming 
 
 
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1facilities at the rate of $3 per person admitted by an 
2organization gaming licensee. The tax is imposed upon the 
3organization gaming licensee.
4  (1) The admission tax shall be paid for each admission, 
5 except that a person who exits an organization gaming 
6 facility and reenters that organization gaming facility 
7 within the same gaming day, as the term "gaming day" is 
8 defined by the Board by rule, shall be subject only to the 
9 initial admission tax. The Board shall establish, by rule, 
10 a procedure to determine whether a person admitted to an 
11 organization gaming facility has paid the admission tax.
12  (2) An organization gaming licensee may issue tax-free 
13 passes to actual and necessary officials and employees of 
14 the licensee and other persons associated with its gaming 
15 operations.
16  (3) The number and issuance of tax-free passes is 
17 subject to the rules of the Board, and a list of all 
18 persons to whom the tax-free passes are issued shall be

19 filed with the Board.
20  (4) The organization gaming licensee shall pay the 
21 entire admission tax to the Board.
22 Such payments shall be made daily. Accompanying each 
23payment shall be a return on forms provided by the Board, which 
24shall include other information regarding admission as the 
25Board may require. Failure to submit either the payment or the 
26return within the specified time may result in suspension or 
 
 
10100SB0690ham003- 687 -LRB101 04451 SMS 61572 a


1revocation of the organization gaming license.
2 From the tax imposed under this subsection (c-5), a 
3municipality other than the Village of Stickney or the City of 
4Collinsville in which an organization gaming facility is 
5located, or if the organization gaming facility is not located 
6within a municipality, then the county in which the 
7organization gaming facility is located, except as otherwise 
8provided in this Section, shall receive, subject to 
9appropriation, $1 for each person who enters the organization 
10gaming facility. For each admission to the organization gaming 
11facility in excess of 1,500,000 in a year, from the tax imposed 
12under this subsection (c-5), the county in which the 
13organization gaming facility is located shall receive, subject 
14to appropriation, $0.30, which shall be in addition to any 
15other moneys paid to the county under this Section.
16 From the tax imposed under this subsection (c-5) on an 
17organization gaming facility located in the Village of 
18Stickney, $1 for each person who enters the organization gaming 
19facility shall be distributed as follows, subject to 
20appropriation: $0.24 to the Village of Stickney, $0.49 to the 
21Town of Cicero, $0.05 to the City of Berwyn, and $0.17 to the 
22Stickney Public Health District, and $0.05 to the City of 
23Bridgeview. 
24 From the tax imposed under this subsection (c-5) on an 
25organization gaming facility located in the City of 
26Collinsville, the following shall each receive 10 cents for 
 
 
10100SB0690ham003- 688 -LRB101 04451 SMS 61572 a


1each person who enters the organization gaming facility, 
2subject to appropriation: the Village of Alorton; the Village 
3of Washington Park; State Park Place; the Village of Fairmont 
4City; the City of Centreville; the Village of Brooklyn; the 
5City of Venice; the City of Madison; the Village of Caseyville; 
6and the Village of Pontoon Beach. 
7 On the 25th day of each month, all amounts remaining after 
8payments required under this subsection (c-5) have been made 
9shall be transferred into the Capital Projects Fund. 
10 (d) The Board shall administer and collect the admission 
11tax imposed by
this Section, to the extent practicable, in a 
12manner consistent with the
provisions of Sections 4, 5, 5a, 5b, 
135c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a,
6b, 6c, 8, 9 and 10 of the 
14Retailers' Occupation Tax Act and
Section 3-7 of the Uniform 
15Penalty and Interest Act.

16(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)





17 (230 ILCS 10/13) (from Ch. 120, par. 2413)


18 Sec. 13. Wagering tax; rate; distribution. 

19 (a) Until January 1, 1998, a tax is imposed on the adjusted 
20gross
receipts received from gambling games authorized under 
21this Act at the rate of
20%.

22 (a-1) From January 1, 1998 until July 1, 2002, a privilege 
23tax is
imposed on persons engaged in the business of conducting 
24riverboat gambling
operations, based on the adjusted gross 
25receipts received by a licensed owner
from gambling games 
 
 
10100SB0690ham003- 689 -LRB101 04451 SMS 61572 a


1authorized under this Act at the following rates:


2  15% of annual adjusted gross receipts up to and 
3 including $25,000,000;


4  20% of annual adjusted gross receipts in excess of 
5 $25,000,000 but not
exceeding $50,000,000;


6  25% of annual adjusted gross receipts in excess of 
7 $50,000,000 but not
exceeding $75,000,000;


8  30% of annual adjusted gross receipts in excess of 
9 $75,000,000 but not
exceeding $100,000,000;


10  35% of annual adjusted gross receipts in excess of 
11 $100,000,000.

12 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax 
13is imposed on
persons engaged in the business of conducting 
14riverboat gambling operations,
other than licensed managers 
15conducting riverboat gambling operations on behalf
of the 
16State, based on the adjusted gross receipts received by a 
17licensed
owner from gambling games authorized under this Act at 
18the following rates:


19  15% of annual adjusted gross receipts up to and 
20 including $25,000,000;


21  22.5% of annual adjusted gross receipts in excess of 
22 $25,000,000 but not
exceeding $50,000,000;


23  27.5% of annual adjusted gross receipts in excess of 
24 $50,000,000 but not
exceeding $75,000,000;


25  32.5% of annual adjusted gross receipts in excess of 
26 $75,000,000 but not
exceeding $100,000,000;


 
 
10100SB0690ham003- 690 -LRB101 04451 SMS 61572 a


1  37.5% of annual adjusted gross receipts in excess of 
2 $100,000,000 but not
exceeding $150,000,000;


3  45% of annual adjusted gross receipts in excess of 
4 $150,000,000 but not
exceeding $200,000,000;


5  50% of annual adjusted gross receipts in excess of 
6 $200,000,000.

7 (a-3) Beginning July 1, 2003, a privilege tax is imposed on 
8persons engaged
in the business of conducting riverboat 
9gambling operations, other than
licensed managers conducting 
10riverboat gambling operations on behalf of the
State, based on 
11the adjusted gross receipts received by a licensed owner from

12gambling games authorized under this Act at the following 
13rates:


14  15% of annual adjusted gross receipts up to and 
15 including $25,000,000;


16  27.5% of annual adjusted gross receipts in excess of 
17 $25,000,000 but not
exceeding $37,500,000;


18  32.5% of annual adjusted gross receipts in excess of 
19 $37,500,000 but not
exceeding $50,000,000;


20  37.5% of annual adjusted gross receipts in excess of 
21 $50,000,000 but not
exceeding $75,000,000;


22  45% of annual adjusted gross receipts in excess of 
23 $75,000,000 but not
exceeding $100,000,000;


24  50% of annual adjusted gross receipts in excess of 
25 $100,000,000 but not
exceeding $250,000,000;


26  70% of annual adjusted gross receipts in excess of 
 
 
10100SB0690ham003- 691 -LRB101 04451 SMS 61572 a


1 $250,000,000.

2 An amount equal to the amount of wagering taxes collected 
3under this
subsection (a-3) that are in addition to the amount 
4of wagering taxes that
would have been collected if the 
5wagering tax rates under subsection (a-2)
were in effect shall 
6be paid into the Common School Fund.

7 The privilege tax imposed under this subsection (a-3) shall 
8no longer be
imposed beginning on the earlier of (i) July 1, 
92005; (ii) the first date
after June 20, 2003 that riverboat 
10gambling operations are conducted
pursuant to a dormant 
11license; or (iii) the first day that riverboat gambling

12operations are conducted under the authority of an owners 
13license that is in
addition to the 10 owners licenses initially 
14authorized under this Act.
For the purposes of this subsection 
15(a-3), the term "dormant license"
means an owners license that 
16is authorized by this Act under which no
riverboat gambling 
17operations are being conducted on June 20, 2003.

18 (a-4) Beginning on the first day on which the tax imposed 
19under
subsection (a-3) is no longer imposed and ending upon the 
20imposition of the privilege tax under subsection (a-5) of this 
21Section, a privilege tax is imposed on persons
engaged in the 
22business of conducting riverboat gambling operations, other

23than licensed managers conducting riverboat gambling 
24operations on behalf of
the State, based on the adjusted gross 
25receipts received by a licensed owner
from gambling games 
26authorized under this Act at the following rates:


 
 
10100SB0690ham003- 692 -LRB101 04451 SMS 61572 a


1  15% of annual adjusted gross receipts up to and 
2 including $25,000,000;


3  22.5% of annual adjusted gross receipts in excess of 
4 $25,000,000 but not
exceeding $50,000,000;


5  27.5% of annual adjusted gross receipts in excess of 
6 $50,000,000 but not
exceeding $75,000,000;


7  32.5% of annual adjusted gross receipts in excess of 
8 $75,000,000 but not
exceeding $100,000,000;


9  37.5% of annual adjusted gross receipts in excess of 
10 $100,000,000 but not
exceeding $150,000,000;


11  45% of annual adjusted gross receipts in excess of 
12 $150,000,000 but not
exceeding $200,000,000;


13  50% of annual adjusted gross receipts in excess of 
14 $200,000,000.

15 For the imposition of the privilege tax in this subsection 
16(a-4), amounts paid pursuant to item (1) of subsection (b) of 
17Section 56 of the Illinois Horse Racing Act of 1975 shall not 
18be included in the determination of adjusted gross receipts. 
19 (a-5) Beginning on the first day that an owners licensee 
20under paragraph (1), (2), (3), (4), (5), or (6) of subsection 
21(e-5) of Section 7 conducts gambling operations, either in a 
22temporary facility or a permanent facility, a privilege tax is 
23imposed on persons engaged in the business of conducting 
24gambling operations, other than licensed managers conducting 
25riverboat gambling operations on behalf of the State, based on 
26the adjusted gross receipts received by such licensee from the 
 
 
10100SB0690ham003- 693 -LRB101 04451 SMS 61572 a


1gambling games authorized under this Act. The privilege tax for 
2all gambling games other than table games, including, but not 
3limited to, slot machines, video game of chance gambling, and 
4electronic gambling games shall be at the following rates:
5  15% of annual adjusted gross receipts up to and 
6 including $25,000,000;
7  22.5% of annual adjusted gross receipts in excess of 
8 $25,000,000 but not exceeding $50,000,000;
9  27.5% of annual adjusted gross receipts in excess of 
10 $50,000,000 but not exceeding $75,000,000;
11  32.5% of annual adjusted gross receipts in excess of 
12 $75,000,000 but not exceeding $100,000,000;
13  37.5% of annual adjusted gross receipts in excess of 
14 $100,000,000 but not exceeding $150,000,000;
15  45% of annual adjusted gross receipts in excess of 
16 $150,000,000 but not exceeding $200,000,000;
17  50% of annual adjusted gross receipts in excess of 
18 $200,000,000.
19 The privilege tax for table games shall be at the following 
20rates:
21  15% of annual adjusted gross receipts up to and 
22 including $25,000,000;
23  20% of annual adjusted gross receipts in excess of 
24 $25,000,000.
25 For the imposition of the privilege tax in this subsection 
26(a-5), amounts paid pursuant to item (1) of subsection (b) of 
 
 
10100SB0690ham003- 694 -LRB101 04451 SMS 61572 a


1Section 56 of the Illinois Horse Racing Act of 1975 shall not 
2be included in the determination of adjusted gross receipts.
3 Notwithstanding the provisions of this subsection (a-5), 
4for the first 10 years that the privilege tax is imposed under 
5this subsection (a-5), the privilege tax shall be imposed on 
6the modified annual adjusted gross receipts of a riverboat or 
7casino conducting gambling operations in the City of East St. 
8Louis, unless:
9  (1) the riverboat or casino fails to employ at least 
10 450 people;
11  (2) the riverboat or casino fails to maintain 
12 operations in a manner consistent with this Act or is not a 
13 viable riverboat or casino subject to the approval of the 
14 Board; or
15  (3) the owners licensee is not an entity in which 
16 employees participate in an employee stock ownership plan. 
17 As used in this subsection (a-5), "modified annual adjusted 
18gross receipts" means:
19  (A) for calendar year 2020, the annual adjusted gross 
20 receipts for the current year minus the difference between 
21 an amount equal to the average annual adjusted gross 
22 receipts from a riverboat or casino conducting gambling 
23 operations in the City of East St. Louis for 2014, 2015, 
24 2016, 2017, and 2018 and the annual adjusted gross receipts 
25 for 2018; 
26  (B) for calendar year 2021, the annual adjusted gross 
 
 
10100SB0690ham003- 695 -LRB101 04451 SMS 61572 a


1 receipts for the current year minus the difference between 
2 an amount equal to the average annual adjusted gross 
3 receipts from a riverboat or casino conducting gambling 
4 operations in the City of East St. Louis for 2014, 2015, 
5 2016, 2017, and 2018 and the annual adjusted gross receipts 
6 for 2019; and 
7  (C) for calendar years 2022 through 2029, the annual 
8 adjusted gross receipts for the current year minus the 
9 difference between an amount equal to the average annual 
10 adjusted gross receipts from a riverboat or casino 
11 conducting gambling operations in the City of East St. 
12 Louis for 3 years preceding the current year and the annual 
13 adjusted gross receipts for the immediately preceding 
14 year. 
15 (a-5.5) In addition to the privilege tax imposed under 
16subsection (a-5), a privilege tax is imposed on the owners 
17licensee under paragraph (1) of subsection (e-5) of Section 7 
18at the rate of one-third of the owners licensee's adjusted 
19gross receipts. 
20 For the imposition of the privilege tax in this subsection 
21(a-5.5), amounts paid pursuant to item (1) of subsection (b) of 
22Section 56 of the Illinois Horse Racing Act of 1975 shall not 
23be included in the determination of adjusted gross receipts.
24 (a-6) From the effective date of this amendatory Act of the 
25101st General Assembly until June 30, 2023, an owners licensee 
26that conducted gambling operations prior to January 1, 2011 
 
 
10100SB0690ham003- 696 -LRB101 04451 SMS 61572 a


1shall receive a dollar-for-dollar credit against the tax 
2imposed under this Section for any renovation or construction 
3costs paid by the owners licensee, but in no event shall the 
4credit exceed $2,000,000.
5 Additionally, from the effective date of this amendatory 
6Act of the 101st General Assembly until December 31, 2022, an 
7owners licensee that (i) is located within 15 miles of the 
8Missouri border, and (ii) has at least 3 riverboats, casinos, 
9or their equivalent within a 45-mile radius, may be authorized 
10to relocate to a new location with the approval of both the 
11unit of local government designated as the home dock and the 
12Board, so long as the new location is within the same unit of 
13local government and no more than 3 miles away from its 
14original location. Such owners licensee shall receive a credit 
15against the tax imposed under this Section equal to 8% of the 
16total project costs, as approved by the Board, for any 
17renovation or construction costs paid by the owners licensee 
18for the construction of the new facility, provided that the new 
19facility is operational by July 1, 2022. In determining whether 
20or not to approve a relocation, the Board must consider the 
21extent to which the relocation will diminish the gaming 
22revenues received by other Illinois gaming facilities.
23 (a-7) Beginning in the initial adjustment year and through 
24the final adjustment year, if the total obligation imposed 
25pursuant to either subsection (a-5) or (a-6) will result in an 
26owners licensee receiving less after-tax adjusted gross 
 
 
10100SB0690ham003- 697 -LRB101 04451 SMS 61572 a


1receipts than it received in calendar year 2018, then the total 
2amount of privilege taxes that the owners licensee is required 
3to pay for that calendar year shall be reduced to the extent 
4necessary so that the after-tax adjusted gross receipts in that 
5calendar year equals the after-tax adjusted gross receipts in 
6calendar year 2018, but the privilege tax reduction shall not 
7exceed the annual adjustment cap. If pursuant to this 
8subsection (a-7), the total obligation imposed pursuant to 
9either subsection (a-5) or (a-6) shall be reduced, then the 
10owners licensee shall not receive a refund from the State at 
11the end of the subject calendar year but instead shall be able 
12to apply that amount as a credit against any payments it owes 
13to the State in the following calendar year to satisfy its 
14total obligation under either subsection (a-5) or (a-6). The 
15credit for the final adjustment year shall occur in the 
16calendar year following the final adjustment year.
17 If an owners licensee that conducted gambling operations 
18prior to January 1, 2019 expands its riverboat or casino, 
19including, but not limited to, with respect to its gaming 
20floor, additional non-gaming amenities such as restaurants, 
21bars, and hotels and other additional facilities, and incurs 
22construction and other costs related to such expansion from the 
23effective date of this amendatory Act of the 101st General 
24Assembly until the 5th anniversary of the effective date of 
25this amendatory Act of the 101st General Assembly, then for 
26each $15,000,000 spent for any such construction or other costs 
 
 
10100SB0690ham003- 698 -LRB101 04451 SMS 61572 a


1related to expansion paid by the owners licensee, the final 
2adjustment year shall be extended by one year and the annual 
3adjustment cap shall increase by 0.2% of adjusted gross 
4receipts during each calendar year until and including the 
5final adjustment year. No further modifications to the final 
6adjustment year or annual adjustment cap shall be made after 
7$75,000,000 is incurred in construction or other costs related 
8to expansion so that the final adjustment year shall not extend 
9beyond the 9th calendar year after the initial adjustment year, 
10not including the initial adjustment year, and the annual 
11adjustment cap shall not exceed 4% of adjusted gross receipts 
12in a particular calendar year. Construction and other costs 
13related to expansion shall include all project related costs, 
14including, but not limited to, all hard and soft costs, 
15financing costs, on or off-site ground, road or utility work, 
16cost of gaming equipment and all other personal property, 
17initial fees assessed for each incremental gaming position, and 
18the cost of incremental land acquired for such expansion. Soft 
19costs shall include, but not be limited to, legal fees, 
20architect, engineering and design costs, other consultant 
21costs, insurance cost, permitting costs, and pre-opening costs 
22related to the expansion, including, but not limited to, any of 
23the following: marketing, real estate taxes, personnel, 
24training, travel and out-of-pocket expenses, supply, 
25inventory, and other costs, and any other project related soft 
26costs. 
 
 
10100SB0690ham003- 699 -LRB101 04451 SMS 61572 a


1 To be eligible for the tax credits in subsection (a-6), all 
2construction contracts shall include a requirement that the 
3contractor enter into a project labor agreement with the 
4building and construction trades council with geographic 
5jurisdiction of the location of the proposed gaming facility.
6 Notwithstanding any other provision of this subsection 
7(a-7), this subsection (a-7) does not apply to an owners 
8licensee unless such owners licensee spends at least 
9$15,000,000 on construction and other costs related to its 
10expansion, excluding the initial fees assessed for each 
11incremental gaming position. 
12 This subsection (a-7) does not apply to owners licensees

13authorized pursuant to subsection (e-5) of Section 7 of this

14Act.
15 For purposes of this subsection (a-7):
16 "Building and construction trades council" means any 
17organization representing multiple construction entities that 
18are monitoring or attentive to compliance with public or 
19workers' safety laws, wage and hour requirements, or other 
20statutory requirements or that are making or maintaining 
21collective bargaining agreements. 
22 "Initial adjustment year" means the year commencing on 
23January 1 of the calendar year immediately following the 
24earlier of the following: 
25  (1) the commencement of gambling operations, either in 
26 a temporary or permanent facility, with respect to the 
 
 
10100SB0690ham003- 700 -LRB101 04451 SMS 61572 a


1 owners license authorized under paragraph (1) of 
2 subsection (e-5) of Section 7 of this Act; or
3  (2) 24 months after the effective date of this 
4 amendatory Act of the 101st General Assembly, provided the 
5 initial adjustment year shall not commence earlier than 12 
6 months after the effective date of this amendatory Act of 
7 the 101st General Assembly. 
8 "Final adjustment year" means the 2nd calendar year after 
9the initial adjustment year, not including the initial 
10adjustment year, and as may be extended further as described in 
11this subsection (a-7). 
12 "Annual adjustment cap" means 3% of adjusted gross receipts 
13in a particular calendar year, and as may be increased further 
14as otherwise described in this subsection (a-7). 
15 (a-8) Riverboat gambling operations conducted by a 
16licensed manager on
behalf of the State are not subject to the 
17tax imposed under this Section.

18 (a-9) Beginning on January 1, 2020, the calculation of 
19gross receipts or adjusted gross receipts, for the purposes of 
20this Section, for a riverboat, a casino, or an organization 
21gaming facility shall not include the dollar amount of 
22non-cashable vouchers, coupons, and electronic promotions 
23redeemed by wagerers upon the riverboat, in the casino, or in 
24the organization gaming facility up to and including an amount 
25not to exceed 20% of a riverboat's, a casino's, or an 
26organization gaming facility's adjusted gross receipts.
 
 
10100SB0690ham003- 701 -LRB101 04451 SMS 61572 a


1 The Illinois Gaming Board shall submit to the General 
2Assembly a comprehensive report no later than March 31, 2023 
3detailing, at a minimum, the effect of removing non-cashable 
4vouchers, coupons, and electronic promotions from this 
5calculation on net gaming revenues to the State in calendar 
6years 2020 through 2022, the increase or reduction in wagerers 
7as a result of removing non-cashable vouchers, coupons, and 
8electronic promotions from this calculation, the effect of the 
9tax rates in subsection (a-5) on net gaming revenues to this 
10State, and proposed modifications to the calculation. 
11 (a-10) The taxes imposed by this Section shall be paid by 
12the licensed
owner or the organization gaming licensee to the 
13Board not later than 5:00 o'clock p.m. of the day after the day

14when the wagers were made.

15 (a-15) If the privilege tax imposed under subsection (a-3) 
16is no longer imposed pursuant to item (i) of the last paragraph 
17of subsection (a-3), then by June 15 of each year, each owners 
18licensee, other than an owners licensee that admitted 1,000,000 
19persons or
fewer in calendar year 2004, must, in addition to 
20the payment of all amounts otherwise due under this Section, 
21pay to the Board a reconciliation payment in the amount, if 
22any, by which the licensed owner's base amount exceeds the 
23amount of net privilege tax paid by the licensed owner to the 
24Board in the then current State fiscal year. A licensed owner's 
25net privilege tax obligation due for the balance of the State 
26fiscal year shall be reduced up to the total of the amount paid 
 
 
10100SB0690ham003- 702 -LRB101 04451 SMS 61572 a


1by the licensed owner in its June 15 reconciliation payment. 
2The obligation imposed by this subsection (a-15) is binding on 
3any person, firm, corporation, or other entity that acquires an 
4ownership interest in any such owners license. The obligation 
5imposed under this subsection (a-15) terminates on the earliest 
6of: (i) July 1, 2007, (ii) the first day after the effective 
7date of this amendatory Act of the 94th General Assembly that 
8riverboat gambling operations are conducted pursuant to a 
9dormant license, (iii) the first day that riverboat gambling 
10operations are conducted under the authority of an owners 
11license that is in addition to the 10 owners licenses initially 
12authorized under this Act, or (iv) the first day that a 
13licensee under the Illinois Horse Racing Act of 1975 conducts 
14gaming operations with slot machines or other electronic gaming 
15devices. The Board must reduce the obligation imposed under 
16this subsection (a-15) by an amount the Board deems reasonable 
17for any of the following reasons: (A) an act or acts of God, 
18(B) an act of bioterrorism or terrorism or a bioterrorism or 
19terrorism threat that was investigated by a law enforcement 
20agency, or (C) a condition beyond the control of the owners 
21licensee that does not result from any act or omission by the 
22owners licensee or any of its agents and that poses a hazardous 
23threat to the health and safety of patrons. If an owners 
24licensee pays an amount in excess of its liability under this 
25Section, the Board shall apply the overpayment to future 
26payments required under this Section.
 
 
10100SB0690ham003- 703 -LRB101 04451 SMS 61572 a


1 For purposes of this subsection (a-15):
2 "Act of God" means an incident caused by the operation of 
3an extraordinary force that cannot be foreseen, that cannot be 
4avoided by the exercise of due care, and for which no person 
5can be held liable.

6 "Base amount" means the following:
7  For a riverboat in Alton, $31,000,000.

8  For a riverboat in East Peoria, $43,000,000.

9  For the Empress riverboat in Joliet, $86,000,000.

10  For a riverboat in Metropolis, $45,000,000.

11  For the Harrah's riverboat in Joliet, $114,000,000.

12  For a riverboat in Aurora, $86,000,000.

13  For a riverboat in East St. Louis, $48,500,000.

14  For a riverboat in Elgin, $198,000,000.

15 "Dormant license" has the meaning ascribed to it in 
16subsection (a-3).

17 "Net privilege tax" means all privilege taxes paid by a 
18licensed owner to the Board under this Section, less all 
19payments made from the State Gaming Fund pursuant to subsection 
20(b) of this Section.
21 The changes made to this subsection (a-15) by Public Act 
2294-839 are intended to restate and clarify the intent of Public 
23Act 94-673 with respect to the amount of the payments required 
24to be made under this subsection by an owners licensee to the 
25Board.

26 (b) From Until January 1, 1998, 25% of the tax revenue 
 
 
10100SB0690ham003- 704 -LRB101 04451 SMS 61572 a


1deposited in the State
Gaming Fund under this Section shall be 
2paid, subject to appropriation by the
General Assembly, to the 
3unit of local government which is designated as the
home dock 
4of the riverboat. Beginning January 1, 1998, from the tax 
5revenue from riverboat or casino gambling
deposited in the 
6State Gaming Fund under this Section, an amount equal to 5% of

7adjusted gross receipts generated by a riverboat or a casino, 
8other than a riverboat or casino designated in paragraph (1), 
9(3), or (4) of subsection (e-5) of Section 7, shall be paid 
10monthly, subject
to appropriation by the General Assembly, to 
11the unit of local government in which the casino is located or 
12that
is designated as the home dock of the riverboat. 
13Notwithstanding anything to the contrary, beginning on the 
14first day that an owners licensee under paragraph (1), (2), 
15(3), (4), (5), or (6) of subsection (e-5) of Section 7 conducts 
16gambling operations, either in a temporary facility or a 
17permanent facility, and for 2 years thereafter, a unit of local 
18government designated as the home dock of a riverboat whose 
19license was issued before January 1, 2019, other than a 
20riverboat conducting gambling operations in the City of East 
21St. Louis, shall not receive less under this subsection (b) 
22than the amount the unit of local government received under 
23this subsection (b) in calendar year 2018. Notwithstanding 
24anything to the contrary and because the City of East St. Louis 
25is a financially distressed city, beginning on the first day 
26that an owners licensee under paragraph (1), (2), (3), (4), 
 
 
10100SB0690ham003- 705 -LRB101 04451 SMS 61572 a


1(5), or (6) of subsection (e-5) of Section 7 conducts gambling 
2operations, either in a temporary facility or a permanent 
3facility, and for 10 years thereafter, a unit of local 
4government designated as the home dock of a riverboat 
5conducting gambling operations in the City of East St. Louis 
6shall not receive less under this subsection (b) than the 
7amount the unit of local government received under this 
8subsection (b) in calendar year 2018. 
9 From the tax revenue
deposited in the State Gaming Fund 
10pursuant to riverboat or casino gambling operations
conducted 
11by a licensed manager on behalf of the State, an amount equal 
12to 5%
of adjusted gross receipts generated pursuant to those 
13riverboat or casino gambling
operations shall be paid monthly,

14subject to appropriation by the General Assembly, to the unit 
15of local
government that is designated as the home dock of the 
16riverboat upon which
those riverboat gambling operations are 
17conducted or in which the casino is located.
18 From the tax revenue from riverboat or casino gambling 
19deposited in the State Gaming Fund under this Section, an 
20amount equal to 5% of the adjusted gross receipts generated by 
21a riverboat designated in paragraph (3) of subsection (e-5) of 
22Section 7 shall be divided and remitted monthly, subject to 
23appropriation, as follows: 70% to Waukegan, 10% to Park City, 
2415% to North Chicago, and 5% to Lake County.
25 From the tax revenue from riverboat or casino gambling 
26deposited in the State Gaming Fund under this Section, an 
 
 
10100SB0690ham003- 706 -LRB101 04451 SMS 61572 a


1amount equal to 5% of the adjusted gross receipts generated by 
2a riverboat designated in paragraph (4) of subsection (e-5) of 
3Section 7 shall be remitted monthly, subject to appropriation, 
4as follows: 70% to the City of Rockford, 5% to the City of 
5Loves Park, 5% to the Village of Machesney, and 20% to 
6Winnebago County.
7 From the tax revenue from riverboat or casino gambling 
8deposited in the State Gaming Fund under this Section, an 
9amount equal to 5% of the adjusted gross receipts generated by 
10a riverboat designated in paragraph (5) of subsection (e-5) of 
11Section 7 shall be remitted monthly, subject to appropriation, 
12as follows: 2% to the unit of local government in which the 
13riverboat or casino is located, and 3% shall be distributed: 
14(A) in accordance with a regional capital development plan 
15entered into by the following communities: Village of Beecher, 
16City of Blue Island, Village of Burnham, City of Calumet City, 
17Village of Calumet Park, City of Chicago Heights, City of 
18Country Club Hills, Village of Crestwood, Village of Crete, 
19Village of Dixmoor, Village of Dolton, Village of East Hazel 
20Crest, Village of Flossmoor, Village of Ford Heights, Village 
21of Glenwood, City of Harvey, Village of Hazel Crest, Village of 
22Homewood, Village of Lansing, Village of Lynwood, City of 
23Markham, Village of Matteson, Village of Midlothian, Village of 
24Monee, City of Oak Forest, Village of Olympia Fields, Village 
25of Orland Hills, Village of Orland Park, City of Palos Heights, 
26Village of Park Forest, Village of Phoenix, Village of Posen, 
 
 
10100SB0690ham003- 707 -LRB101 04451 SMS 61572 a


1Village of Richton Park, Village of Riverdale, Village of 
2Robbins, Village of Sauk Village, Village of South Chicago 
3Heights, Village of South Holland, Village of Steger, Village 
4of Thornton, Village of Tinley Park, Village of University Park 
5and Village of Worth; or (B) if no regional capital development 
6plan exists, equally among the communities listed in item (A) 
7to be used for capital expenditures or public pension payments, 
8or both. 
9 Units of local government may refund any portion of the 
10payment that they receive pursuant to this subsection (b) to 
11the riverboat or casino.

12 (b-4) Beginning on the first day the licensee under 
13paragraph (5) of subsection (e-5) of Section 7 conducts 
14gambling operations, either in a temporary facility or a 
15permanent facility, and ending on July 31, 2042, from the tax 
16revenue deposited in the State Gaming Fund under this Section, 
17$5,000,000 shall be paid annually, subject
to appropriation, to 
18the host municipality of that owners licensee of a license 
19issued or re-issued pursuant to Section
7.1 of this Act before 
20January 1, 2012. Payments received by the host municipality 
21pursuant to this subsection (b-4) may not be shared with any 
22other unit of local government. 
23 (b-5) Beginning on the effective date of this amendatory 
24Act of the 101st General Assembly, from the tax revenue

25deposited in the State Gaming Fund under this Section, an 
26amount equal to 3% of
adjusted gross receipts generated by each 
 
 
10100SB0690ham003- 708 -LRB101 04451 SMS 61572 a


1organization gaming facility located outside Madison County 
2shall be paid monthly, subject
to appropriation by the General 
3Assembly, to a municipality other than the Village of Stickney 
4in which each organization gaming facility is located or, if 
5the organization gaming facility is not located within a 
6municipality, to the county in which the organization gaming 
7facility is located, except as otherwise provided in this 
8Section. From the tax revenue deposited in the State Gaming 
9Fund under this Section, an amount equal to 3% of adjusted 
10gross receipts generated by an organization gaming facility 
11located in the Village of Stickney shall be paid monthly, 
12subject to appropriation by the General Assembly, as follows: 
1325% to the Village of Stickney, 5% to the City of Berwyn, 50% 
14to the Town of Cicero, and 20% to the Stickney Public Health 
15District.
16 From the tax revenue deposited in the State Gaming Fund 
17under this Section, an amount equal to 5% of adjusted gross 
18receipts generated by an organization gaming facility located 
19in the City of Collinsville shall be paid monthly, subject to 
20appropriation by the General Assembly, as follows: 30% to the 
21City of Alton, 30% to the City of East St. Louis, and 40% to the 
22City of Collinsville. 
23 Municipalities and counties may refund any portion of the 
24payment that they receive pursuant to this subsection (b-5) to 
25the organization gaming facility. 
26 (b-6) Beginning on the effective date of this amendatory 
 
 
10100SB0690ham003- 709 -LRB101 04451 SMS 61572 a


1Act of the 101st General Assembly, from the tax revenue 
2deposited in the State Gaming Fund under this Section, an 
3amount equal to 2% of adjusted gross receipts generated by an 
4organization gaming facility located outside Madison County 
5shall be paid monthly, subject to appropriation by the General 
6Assembly, to the county in which the organization gaming 
7facility is located for the purposes of its criminal justice 
8system or health care system. 
9 Counties may refund any portion of the payment that they 
10receive pursuant to this subsection (b-6) to the organization 
11gaming facility. 
12 (b-7) From the tax revenue from the organization gaming 
13licensee located in one of the following townships of Cook 
14County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or 
15Worth, an amount equal to 5% of the adjusted gross receipts 
16generated by that organization gaming licensee shall be 
17remitted monthly, subject to appropriation, as follows: 2% to 
18the unit of local government in which the organization gaming 
19licensee is located, and 3% shall be distributed: (A) in 
20accordance with a regional capital development plan entered 
21into by the following communities: Village of Beecher, City of 
22Blue Island, Village of Burnham, City of Calumet City, Village 
23of Calumet Park, City of Chicago Heights, City of Country Club 
24Hills, Village of Crestwood, Village of Crete, Village of 
25Dixmoor, Village of Dolton, Village of East Hazel Crest, 
26Village of Flossmoor, Village of Ford Heights, Village of 
 
 
10100SB0690ham003- 710 -LRB101 04451 SMS 61572 a


1Glenwood, City of Harvey, Village of Hazel Crest, Village of 
2Homewood, Village of Lansing, Village of Lynwood, City of 
3Markham, Village of Matteson, Village of Midlothian, Village of 
4Monee, City of Oak Forest, Village of Olympia Fields, Village 
5of Orland Hills, Village of Orland Park, City of Palos Heights, 
6Village of Park Forest, Village of Phoenix, Village of Posen, 
7Village of Richton Park, Village of Riverdale, Village of 
8Robbins, Village of Sauk Village, Village of South Chicago 
9Heights, Village of South Holland, Village of Steger, Village 
10of Thornton, Village of Tinley Park, Village of University 
11Park, and Village of Worth; or (B) if no regional capital 
12development plan exists, equally among the communities listed 
13in item (A) to be used for capital expenditures or public 
14pension payments, or both. 
15 (b-8) In lieu of the payments under subsection (b) of this 
16Section, the tax revenue from the privilege tax imposed by 
17subsection (a-5.5) shall be paid monthly, subject
to 
18appropriation by the General Assembly, to the City of Chicago 
19and shall be expended or obligated by the City of Chicago for 
20pension payments in accordance with Public Act 99-506. 
21 (c) Appropriations, as approved by the General Assembly, 
22may be made
from the State Gaming Fund to the Board (i) for the 
23administration and enforcement of this Act and the Video Gaming 
24Act, (ii) for distribution to the Department of State Police 
25and to the Department of Revenue for the enforcement of this 
26Act, and the Video Gaming Act, and (iii) to the
Department of 
 
 
10100SB0690ham003- 711 -LRB101 04451 SMS 61572 a


1Human Services for the administration of programs to treat

2problem gambling. The Board's annual appropriations request 
3must separately state its funding needs for the regulation of 
4gaming authorized under Section 7.7, riverboat gaming, casino 
5gaming, video gaming, and sports wagering.

6 (c-2) An amount equal to 2% of the adjusted gross receipts 
7generated by an organization gaming facility located within a 
8home rule county with a population of over 3,000,000 
9inhabitants shall be paid, subject to appropriation
from the 
10General Assembly, from the State Gaming Fund to the home rule

11county in which the organization gaming licensee is located for 
12the purpose of
enhancing the county's criminal justice system. 
13 (c-3) Appropriations, as approved by the General Assembly, 
14may be made from the tax revenue deposited into the State 
15Gaming Fund from organization gaming licensees pursuant to this 
16Section for the administration and enforcement of this Act. 

17 (c-4) After payments required under subsections (b), 
18(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from 
19the tax revenue from organization gaming licensees deposited 
20into the State Gaming Fund under this Section, all remaining 
21amounts from organization gaming licensees shall be 
22transferred into the Capital Projects Fund.
23 (c-5) (Blank). Before May 26, 2006 (the effective date of 
24Public Act 94-804) and beginning on the effective date of this 
25amendatory Act of the 95th General Assembly, unless any 
26organization licensee under the Illinois Horse Racing Act of 
 
 
10100SB0690ham003- 712 -LRB101 04451 SMS 61572 a


11975 begins to operate a slot machine or video game of chance 
2under the Illinois Horse Racing Act of 1975 or this Act, after 
3the payments required under subsections (b) and (c) have been

4made, an amount equal to 15% of the adjusted gross receipts of 
5(1) an owners
licensee that relocates pursuant to Section 11.2,

6(2) an owners licensee
conducting riverboat gambling 
7operations
pursuant to an
owners license that is initially 
8issued after June
25, 1999,
or (3) the first
riverboat gambling 
9operations conducted by a licensed manager on behalf of the

10State under Section 7.3,
whichever comes first, shall be paid 
11from the State
Gaming Fund into the Horse Racing Equity Fund.

12 (c-10) Each year the General Assembly shall appropriate 
13from the General
Revenue Fund to the Education Assistance Fund 
14an amount equal to the amount
paid into the Horse Racing Equity 
15Fund pursuant to subsection (c-5) in the
prior calendar year.

16 (c-15) After the payments required under subsections (b), 
17(c), and (c-5)
have been made, an amount equal to 2% of the 
18adjusted gross receipts of (1)
an owners licensee that 
19relocates pursuant to Section 11.2, (2) an owners
licensee 
20conducting riverboat gambling operations pursuant to
an
owners 
21license that is initially issued after June 25, 1999,
or (3) 
22the first
riverboat gambling operations conducted by a licensed 
23manager on behalf of the
State under Section 7.3,
whichever 
24comes first, shall be paid, subject to appropriation
from the 
25General Assembly, from the State Gaming Fund to each home rule

26county with a population of over 3,000,000 inhabitants for the 
 
 
10100SB0690ham003- 713 -LRB101 04451 SMS 61572 a


1purpose of
enhancing the county's criminal justice system.

2 (c-20) Each year the General Assembly shall appropriate 
3from the General
Revenue Fund to the Education Assistance Fund 
4an amount equal to the amount
paid to each home rule county 
5with a population of over 3,000,000 inhabitants
pursuant to 
6subsection (c-15) in the prior calendar year.

7 (c-21) After the payments required under subsections (b), 
8(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have 
9been made, an amount equal to 2% of the adjusted gross receipts 
10generated by the owners licensee under paragraph (1) of 
11subsection (e-5) of Section 7 shall be paid, subject to 
12appropriation
from the General Assembly, from the State Gaming 
13Fund to the home rule
county in which the owners licensee is 
14located for the purpose of
enhancing the county's criminal 
15justice system. 
16 (c-22) After the payments required under subsections (b), 
17(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and 
18(c-21) have been made, an amount equal to 2% of the adjusted 
19gross receipts generated by the owners licensee under paragraph 
20(5) of subsection (e-5) of Section 7 shall be paid, subject to 
21appropriation
from the General Assembly, from the State Gaming 
22Fund to the home rule
county in which the owners licensee is 
23located for the purpose of
enhancing the county's criminal 
24justice system. 
25 (c-25) From On July 1, 2013 and each July 1 
26thereafterthrough July 1, 2019, $1,600,000 shall be 
 
 
10100SB0690ham003- 714 -LRB101 04451 SMS 61572 a


1transferred from the State Gaming Fund to the Chicago State 
2University Education Improvement Fund.

3 On July 1, 2020 and each July 1 thereafter, $3,000,000 
4shall be transferred from the State Gaming Fund to the Chicago 
5State University Education Improvement Fund. 
6 (c-30) On July 1, 2013 or as soon as possible thereafter, 
7$92,000,000 shall be transferred from the State Gaming Fund to 
8the School Infrastructure Fund and $23,000,000 shall be 
9transferred from the State Gaming Fund to the Horse Racing 
10Equity Fund. 
11 (c-35) Beginning on July 1, 2013, in addition to any amount 
12transferred under subsection (c-30) of this Section, 
13$5,530,000 shall be transferred monthly from the State Gaming 
14Fund to the School Infrastructure Fund. 
15 (d) From time to time, the
Board shall transfer the 
16remainder of the funds
generated by this Act into the Education

17Assistance Fund, created by Public Act 86-0018, of the State of 
18Illinois.

19 (e) Nothing in this Act shall prohibit the unit of local 
20government
designated as the home dock of the riverboat from 
21entering into agreements
with other units of local government 
22in this State or in other states to
share its portion of the 
23tax revenue.

24 (f) To the extent practicable, the Board shall administer 
25and collect the
wagering taxes imposed by this Section in a 
26manner consistent with the
provisions of Sections 4, 5, 5a, 5b, 
 
 
10100SB0690ham003- 715 -LRB101 04451 SMS 61572 a


15c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
6c, 8, 9, and 10 of the 
2Retailers' Occupation Tax Act and Section 3-7 of the
Uniform 
3Penalty and Interest Act.

4(Source: P.A. 98-18, eff. 6-7-13.)





5 (230 ILCS 10/14) (from Ch. 120, par. 2414)



6 Sec. 14. Licensees - Records - Reports - Supervision. 

7 (a) Licensed owners and organization gaming licensees A 
8licensed owner shall keep his books and records so as to 
9clearly
show the following:

10 (1) The amount received daily from admission fees.

11 (2) The total amount of gross receipts.

12 (3) The total amount of the adjusted gross receipts.

13 (b) Licensed owners and organization gaming licensees The 
14licensed owner shall furnish to the Board reports and 
15information as
the Board may require with respect to its 
16activities on forms designed and
supplied for such purpose by 
17the Board.

18 (c) The books and records kept by a licensed owner as 
19provided by this Section are
public records and the 
20examination, publication, and dissemination of the
books and 
21records are governed by the provisions of The Freedom of 
22Information Act.

23(Source: P.A. 86-1029.)





24 (230 ILCS 10/15) (from Ch. 120, par. 2415)


 
 
10100SB0690ham003- 716 -LRB101 04451 SMS 61572 a


1 Sec. 15. Audit of Licensee Operations. Annually, the 
2licensed owner, or manager, or organization gaming licensee 
3shall
transmit to the Board an audit of the financial 
4transactions
and condition of the licensee's or manager's total 
5operations. Additionally, within 90 days after the end of each 
6quarter of each fiscal year, the licensed owner, or manager, or 
7organization gaming licensee shall transmit to the Board a 
8compliance report on engagement procedures determined by the 
9Board. All audits and compliance engagements shall be
conducted 
10by certified public accountants selected by the Board. Each

11certified public accountant must be registered in the State of

12Illinois under the Illinois Public Accounting Act.
The 
13compensation for each certified public accountant shall be paid

14directly by the licensed owner, or manager, or organization 
15gaming licensee to the certified public
accountant.

16(Source: P.A. 96-1392, eff. 1-1-11.)





17 (230 ILCS 10/17) (from Ch. 120, par. 2417)


18 Sec. 17. Administrative Procedures. The Illinois 
19Administrative Procedure
Act shall apply to all administrative 
20rules and procedures of the Board under
this Act and or the 
21Video Gaming Act, except that: (1) subsection (b) of Section 
225-10 of the Illinois
Administrative Procedure Act does not 
23apply to final orders, decisions and
opinions of the Board; (2) 
24subsection (a) of Section 5-10 of the Illinois
Administrative 
25Procedure Act does not apply to forms established by the Board

 
 
10100SB0690ham003- 717 -LRB101 04451 SMS 61572 a


1for use under this Act and or the Video Gaming Act; (3) the 
2provisions of Section 10-45 of the Illinois
Administrative 
3Procedure Act regarding proposals for decision are excluded

4under this Act and or the Video Gaming Act; and (4) the 
5provisions of subsection (d) of Section
10-65 of the Illinois 
6Administrative Procedure Act do not apply so as to
prevent 
7summary suspension of any license pending revocation or other 
8action,
which suspension shall remain in effect unless modified 
9by the Board or unless
the Board's decision is reversed on the 
10merits upon judicial review.

11(Source: P.A. 96-34, eff. 7-13-09.)





12 (230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)



13 Sec. 17.1. Judicial Review. 

14 (a) Jurisdiction and venue for the judicial
review of a 
15final order of the Board relating to licensed owners, 
16suppliers, organization gaming licensees, and or
special event 
17licenses is vested in the Appellate Court of
the judicial 
18district in which Sangamon County is located. A
petition for 
19judicial review of a final order of the Board must be filed in

20the Appellate Court, within 35 days from the date that a copy 
21of the decision
sought to be reviewed was served upon the party 
22affected by the decision.

23 (b) Judicial review of all other final orders of the Board 
24shall be
conducted in accordance with the Administrative Review 
25Law.

 
 
10100SB0690ham003- 718 -LRB101 04451 SMS 61572 a


1(Source: P.A. 88-1.)





2 (230 ILCS 10/18) (from Ch. 120, par. 2418)



3 Sec. 18. Prohibited Activities - Penalty. 

4 (a) A person is guilty of a Class A misdemeanor for doing 
5any of the
following:

6  (1) Conducting gambling where wagering
is used or to be 
7 used
without a license issued by the Board.

8  (2) Conducting gambling where wagering
is permitted 
9 other
than in the manner specified by Section 11.

10 (b) A person is guilty of a Class B misdemeanor for doing 
11any of the
following:

12  (1) permitting a person under 21 years to make a wager; 
13 or

14  (2) violating paragraph (12) of subsection (a) of 
15 Section 11 of this Act.

16 (c) A person wagering or accepting a wager at any location 
17outside the
riverboat, casino, or organization gaming facility 
18in violation of paragraph is subject to the penalties in 
19paragraphs (1) or (2) of
subsection (a) of Section 28-1 of the 
20Criminal Code of 2012 is subject to the penalties provided in 
21that Section.

22 (d) A person commits a Class 4 felony and, in addition, 
23shall be barred
for life from gambling operations riverboats 
24under the jurisdiction of the
Board, if the person does any of 
25the following:

 
 
10100SB0690ham003- 719 -LRB101 04451 SMS 61572 a


1  (1) Offers, promises, or gives anything of value or 
2 benefit to a person
who is connected with a riverboat or 
3 casino owner or organization gaming licensee, including, 
4 but
not limited to, an officer or employee of a licensed 
5 owner, organization gaming licensee, or holder of an

6 occupational license pursuant to an agreement or 
7 arrangement or with the
intent that the promise or thing of 
8 value or benefit will influence the
actions of the person 
9 to whom the offer, promise, or gift was made in order
to 
10 affect or attempt to affect the outcome of a gambling game, 
11 or to
influence official action of a member of the Board.

12  (2) Solicits or knowingly accepts or receives a promise 
13 of anything of
value or benefit while the person is 
14 connected with a riverboat, casino, or organization gaming 
15 facility,
including, but not limited to, an officer or 
16 employee of a licensed owner or organization gaming 
17 licensee,
or the holder of an occupational license, 
18 pursuant to an understanding or
arrangement or with the 
19 intent that the promise or thing of value or
benefit will 
20 influence the actions of the person to affect or attempt to

21 affect the outcome of a gambling game, or to influence 
22 official action of a
member of the Board.

23  (3) Uses or possesses with the intent to use a device 
24 to assist:

25   (i) In projecting the outcome of the game.

26   (ii) In keeping track of the cards played.

 
 
10100SB0690ham003- 720 -LRB101 04451 SMS 61572 a


1   (iii) In analyzing the probability of the 
2 occurrence of an event
relating to the gambling game.

3   (iv) In analyzing the strategy for playing or 
4 betting to be used in the
game except as permitted by 
5 the Board.

6  (4) Cheats at a gambling game.

7  (5) Manufactures, sells, or distributes any cards, 
8 chips, dice, game or
device which is intended to be used to 
9 violate any provision of this Act.

10  (6) Alters or misrepresents the outcome of a gambling 
11 game on which
wagers have been made after the outcome is 
12 made sure but before it is
revealed to the players.

13  (7) Places a bet after acquiring knowledge, not 
14 available to all players,
of the outcome of the gambling 
15 game which is subject of the bet or to aid a
person in 
16 acquiring the knowledge for the purpose of placing a bet

17 contingent on that outcome.

18  (8) Claims, collects, or takes, or attempts to claim, 
19 collect, or take,
money or anything of value in or from the 
20 gambling games, with intent to
defraud, without having made 
21 a wager contingent on winning a gambling game,
or claims, 
22 collects, or takes an amount of money or thing of value of

23 greater value than the amount won.

24  (9) Uses counterfeit chips or tokens in a gambling 
25 game.

26  (10) Possesses any key or device designed for the 
 
 
10100SB0690ham003- 721 -LRB101 04451 SMS 61572 a


1 purpose of opening,
entering, or affecting the operation of 
2 a gambling game, drop box, or an
electronic or mechanical 
3 device connected with the gambling game or for
removing 
4 coins, tokens, chips or other contents of a gambling game. 
5 This
paragraph (10) does not apply to a gambling licensee 
6 or employee of a
gambling licensee acting in furtherance of 
7 the employee's employment.

8 (e) The possession of more than one of the devices 
9described in
subsection (d), paragraphs (3), (5), or (10) 
10permits a rebuttable
presumption that the possessor intended to 
11use the devices for cheating.

12 (f) A person under the age of 21 who, except as authorized 
13under paragraph (10) of Section 11, enters upon a riverboat or 
14in a casino or organization gaming facility commits a petty 
15offense and is subject to a fine of not less than $100 or more 
16than $250 for a first offense and of not less than $200 or more 
17than $500 for a second or subsequent offense. 
18 An action to prosecute any crime occurring on a riverboat

19shall be tried in the county of the dock at which the riverboat 
20is based. An action to prosecute any crime occurring in a 
21casino or organization gaming facility
shall be tried in the 
22county in which the casino or organization gaming facility is 
23located.

24(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)


25 (230 ILCS 10/18.1)
 
 
10100SB0690ham003- 722 -LRB101 04451 SMS 61572 a


1 Sec. 18.1. Distribution of certain fines. If a fine is 
2imposed on an owners owner licensee or an organization gaming 
3licensee for knowingly sending marketing or promotional 
4materials to any person placed on the self-exclusion list, then 
5the Board shall distribute an amount equal to 15% of the fine 
6imposed to the unit of local government in which the casino, 
7riverboat, or organization gaming facility is located for the 
8purpose of awarding grants to non-profit entities that assist 
9gambling addicts.

10(Source: P.A. 96-224, eff. 8-11-09.)




11 (230 ILCS 10/19) (from Ch. 120, par. 2419)



12 Sec. 19. Forfeiture of property. 
13 (a) Except as provided in
subsection (b), any riverboat, 
14casino, or organization gaming facility
used for the conduct of 
15gambling games in violation of this Act shall be
considered a 
16gambling place in violation of Section 28-3 of the Criminal

17Code of 2012. Every gambling device found on
a riverboat, in a 
18casino, or at an organization gaming facility operating 
19gambling games in violation of this
Act and every slot machine 
20and video game of chance found at an organization gaming 
21facility operating gambling games in violation of this Act 
22shall be subject to seizure, confiscation and destruction as 
23provided
in Section 28-5 of the Criminal Code of 2012.

24 (b) It is not a violation of this Act for a riverboat or 
25other
watercraft which is licensed for gaming by a contiguous 
 
 
10100SB0690ham003- 723 -LRB101 04451 SMS 61572 a


1state to dock on
the shores of this State if the municipality 
2having jurisdiction of the
shores, or the county in the case of 
3unincorporated areas, has granted
permission for docking and no 
4gaming is conducted on the riverboat or other
watercraft while 
5it is docked on the shores of this State.
No gambling device 
6shall be subject to seizure, confiscation or
destruction if the 
7gambling device is located on a riverboat or other
watercraft 
8which is licensed for gaming by a contiguous state and which is

9docked on the shores of this State if the municipality having 
10jurisdiction
of the shores, or the county in the case of 
11unincorporated areas, has
granted permission for docking and no

12gaming is conducted on the riverboat or other watercraft while 
13it is docked on
the shores of this State.

14(Source: P.A. 97-1150, eff. 1-25-13.)





15 (230 ILCS 10/20) (from Ch. 120, par. 2420)



16 Sec. 20. Prohibited activities - civil penalties. Any 
17person who
conducts a gambling operation without first 
18obtaining a
license to do so, or who continues to conduct such 
19games after revocation
of his license, or any licensee who 
20conducts or allows to be
conducted any unauthorized gambling 
21games on a riverboat, in a casino, or at an organization gaming 
22facility where it is
authorized to conduct its riverboat 
23gambling operation, in addition to
other penalties provided, 
24shall be subject to a civil penalty equal to the
amount of 
25gross receipts derived from wagering on the gambling games,

 
 
10100SB0690ham003- 724 -LRB101 04451 SMS 61572 a


1whether unauthorized or authorized, conducted on that day as 
2well as
confiscation and forfeiture of all gambling game 
3equipment used in the
conduct of unauthorized gambling games.

4(Source: P.A. 86-1029.)


5 (230 ILCS 10/24)

6 Sec. 24. Applicability of this Illinois Riverboat Gambling 
7Act. The provisions of this the Illinois Riverboat Gambling 
8Act, and all rules promulgated thereunder, shall apply to the 
9Video Gaming Act, except where there is a conflict between the 
102 Acts. In the event of a conflict between this Act and the 
11Video Gaming Act, the terms of this Act shall prevail. 

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

13 Section 35-60. The Video Gaming
Act is amended by changing 
14Sections 5, 15, 20, 25, 30, 35, 45, 55, 58, 60, 79, and 80 as 
15follows:



16 (230 ILCS 40/5)


17 Sec. 5. Definitions.  As used in this Act:

18 "Board" means the Illinois Gaming Board.

19 "Credit" means one, 5, 10, or 25 cents either won or 
20purchased by a player.

21 "Distributor" means an individual, partnership, 
22corporation, or limited liability company licensed under
this 
23Act to buy, sell, lease, or distribute video gaming terminals 
 
 
10100SB0690ham003- 725 -LRB101 04451 SMS 61572 a


1or major
components or parts of video gaming terminals to or 
2from terminal
operators.

3 "Electronic card" means a card purchased from a licensed 
4establishment, licensed fraternal establishment, licensed 
5veterans establishment, or licensed truck stop establishment, 
6or licensed large truck stop establishment for use in that 
7establishment as a substitute for cash in the conduct of gaming 
8on a video gaming terminal. 
9 "Electronic voucher" means a voucher printed by an 
10electronic video game machine that is redeemable in the 
11licensed establishment for which it was issued. 
12 "In-location bonus jackpot" means one or more video gaming 
13terminals at a single licensed establishment that allows for 
14wagers placed on such video gaming terminals to contribute to a 
15cumulative maximum jackpot of up to $10,000. 
16 "Terminal operator" means an individual, partnership, 
17corporation, or limited liability company that is
licensed 
18under this Act and that owns, services, and maintains video

19gaming terminals for placement in licensed establishments, 
20licensed truck stop establishments, licensed large truck stop 
21establishments, licensed fraternal
establishments, or licensed 
22veterans establishments.

23 "Licensed technician" means an individual
who
is licensed 
24under this Act to repair,
service, and maintain
video gaming 
25terminals.

26 "Licensed terminal handler" means a person, including but 
 
 
10100SB0690ham003- 726 -LRB101 04451 SMS 61572 a


1not limited to an employee or independent contractor working 
2for a manufacturer, distributor, supplier, technician, or 
3terminal operator, who is licensed under this Act to possess or 
4control a video gaming terminal or to have access to the inner 
5workings of a video gaming terminal. A licensed terminal 
6handler does not include an individual, partnership, 
7corporation, or limited liability company defined as a 
8manufacturer, distributor, supplier, technician, or terminal 
9operator under this Act. 
10 "Manufacturer" means an individual, partnership, 
11corporation, or limited liability company that is
licensed 
12under this Act and that manufactures or assembles video gaming

13terminals.

14 "Supplier" means an individual, partnership, corporation, 
15or limited liability company that is
licensed under this Act to 
16supply major components or parts to video gaming
terminals to 
17licensed
terminal operators.

18 "Net terminal income" means money put into a video gaming 
19terminal minus
credits paid out to players.

20 "Video gaming terminal" means any electronic video game 
21machine
that, upon insertion of cash, electronic cards or 
22vouchers, or any combination thereof, is available to play or 
23simulate the play of
a video game, including but not limited to 
24video poker, line up, and blackjack, as
authorized by the Board 
25utilizing a video display and microprocessors in
which the 
26player may receive free games or credits that can be
redeemed 
 
 
10100SB0690ham003- 727 -LRB101 04451 SMS 61572 a


1for cash. The term does not include a machine that directly

2dispenses coins, cash, or tokens or is for amusement purposes 
3only.

4 "Licensed establishment" means any licensed retail 
5establishment where
alcoholic liquor is drawn, poured, mixed, 
6or otherwise served for consumption
on the premises, whether 
7the establishment operates on a nonprofit or for-profit basis. 
8"Licensed establishment" includes any such establishment that 
9has a contractual relationship with an inter-track wagering 
10location licensee licensed under the Illinois Horse Racing Act 
11of 1975, provided any contractual relationship shall not 
12include any transfer or offer of revenue from the operation of 
13video gaming under this Act to any licensee licensed under the 
14Illinois Horse Racing Act of 1975. Provided, however, that the 
15licensed establishment that has such a contractual 
16relationship with an inter-track wagering location licensee 
17may not, itself, be (i) an inter-track wagering location 
18licensee, (ii) the corporate parent or subsidiary of any 
19licensee licensed under the Illinois Horse Racing Act of 1975, 
20or (iii) the corporate subsidiary of a corporation that is also 
21the corporate parent or subsidiary of any licensee licensed 
22under the Illinois Horse Racing Act of 1975. "Licensed 
23establishment" does not include a facility operated by an 
24organization licensee, an inter-track wagering licensee, or an 
25inter-track wagering location licensee licensed under the 
26Illinois Horse Racing Act of 1975 or a riverboat licensed under 
 
 
10100SB0690ham003- 728 -LRB101 04451 SMS 61572 a


1the Illinois Riverboat Gambling Act, except as provided in this 
2paragraph. The changes made to this definition by Public Act 
398-587 are declarative of existing law.

4 "Licensed fraternal establishment" means the location 
5where a qualified
fraternal organization that derives its 
6charter from a national fraternal
organization regularly 
7meets.

8 "Licensed veterans establishment" means the location where 
9a qualified
veterans organization that derives its charter from 
10a national veterans
organization regularly meets.

11 "Licensed truck stop establishment" means a facility (i) 
12that is at least a
3-acre facility with a convenience store, 
13(ii) with separate diesel
islands for fueling commercial motor 
14vehicles, (iii) that sells at retail more than 10,000 gallons 
15of diesel or biodiesel fuel per month, and (iv) with parking 
16spaces for commercial
motor vehicles. "Commercial motor 
17vehicles" has the same meaning as defined in Section 18b-101 of 
18the Illinois Vehicle Code. The requirement of item (iii) of 
19this paragraph may be met by showing that estimated future 
20sales or past sales average at least 10,000 gallons per month. 

21 "Licensed large truck stop establishment" means a facility 
22located within 3 road miles from a freeway interchange, as 
23measured in accordance with the Department of Transportation's 
24rules regarding the criteria for the installation of business 
25signs: (i) that is at least a
3-acre facility with a 
26convenience store, (ii) with separate diesel
islands for 
 
 
10100SB0690ham003- 729 -LRB101 04451 SMS 61572 a


1fueling commercial motor vehicles, (iii) that sells at retail 
2more than 50,000 gallons of diesel or biodiesel fuel per month, 
3and (iv) with parking spaces for commercial
motor vehicles. 
4"Commercial motor vehicles" has the same meaning as defined in 
5Section 18b-101 of the Illinois Vehicle Code. The requirement 
6of item (iii) of this paragraph may be met by showing that 
7estimated future sales or past sales average at least 50,000 
8gallons per month. 
9(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 
1098-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff. 
117-16-14.)




12 (230 ILCS 40/15)


13 Sec. 15. Minimum requirements for
licensing and 
14registration.  Every video gaming terminal offered for
play 
15shall first be
tested and approved pursuant to the rules of the 
16Board, and
each video gaming terminal offered in this State for 
17play shall conform to an
approved
model. For the examination of 
18video gaming machines and associated equipment as required by 
19this Section, the Board shall may utilize the services of one 
20or more independent outside testing laboratories that have been 
21accredited in accordance with ISO/IEC 17025 by an accreditation 
22body that is a signatory to the International Laboratory 
23Accreditation Cooperation Mutual Recognition Agreement 
24signifying they are qualified to by a national accreditation 
25body and that, in the judgment of the Board, are qualified to 
 
 
10100SB0690ham003- 730 -LRB101 04451 SMS 61572 a


1perform such examinations. Notwithstanding any law to the 
2contrary, the Board shall consider the licensing of independent 
3outside testing laboratory applicants in accordance with 
4procedures established by the Board by rule. The Board shall 
5not withhold its approval of an independent outside testing 
6laboratory license applicant that has been accredited as 
7required by this Section and is licensed in gaming 
8jurisdictions comparable to Illinois. Upon the finalization of 
9required rules, the Board shall license independent testing 
10laboratories and accept the test reports of any licensed 
11testing laboratory of the video gaming machine's or associated 
12equipment manufacturer's choice, notwithstanding the existence 
13of contracts between the Board and any independent testing 
14laboratory. Every video gaming terminal offered in this State 
15for play must meet minimum standards set by an independent 
16outside testing laboratory approved by the Board. Each approved 
17model shall, at a minimum, meet the following
criteria:


18  (1) It must conform to all requirements of federal law 
19 and
regulations, including FCC Class A
Emissions 
20 Standards.


21  (2) It must theoretically pay out a mathematically 
22 demonstrable percentage
during the expected lifetime of 
23 the machine
of all amounts played, which must not be less 
24 than 80%. The Board shall establish a maximum payout 
25 percentage for approved models by rule. Video gaming

26 terminals that may be affected by skill must meet this 
 
 
10100SB0690ham003- 731 -LRB101 04451 SMS 61572 a


1 standard when using a
method of play that will provide the 
2 greatest return to the player over a
period of continuous 
3 play.


4  (3) It must use a random selection process to determine 
5 the outcome of
each play of a game. The random selection 
6 process must meet 99% confidence
limits using a standard 
7 chi-squared test for (randomness) goodness of fit.


8  (4) It must display an accurate representation of the 
9 game outcome.


10  (5) It must not automatically alter pay tables or any 
11 function of the
video gaming terminal based on internal 
12 computation of hold percentage or have
any means of 
13 manipulation that affects the random selection process or

14 probabilities of winning a game.


15  (6) It must not be adversely affected by static 
16 discharge or other
electromagnetic interference.


17  (7) It must be capable of detecting and displaying the 
18 following
conditions
during idle states or on demand: power 
19 reset; door open; and door just closed.


20  (8) It must have the capacity to display complete play 
21 history
(outcome, intermediate play steps, credits 
22 available, bets placed, credits
paid, and credits cashed 
23 out) for the most recent game played and 10 games
prior

24 thereto.


25  (9) The theoretical payback percentage of a video 
26 gaming terminal must
not be
capable of being changed 
 
 
10100SB0690ham003- 732 -LRB101 04451 SMS 61572 a


1 without making a hardware or software change in
the video 
2 gaming terminal, either on site or via the central 
3 communications system.


4  (10) Video gaming terminals must be designed so that 
5 replacement of
parts or modules required for normal 
6 maintenance does not necessitate
replacement of the 
7 electromechanical meters.


8  (11) It must have nonresettable meters housed in a 
9 locked area of the
terminal that
keep a permanent record of 
10 all cash inserted into the machine, all winnings
made by 
11 the terminal printer, credits played in for video gaming 
12 terminals, and
credits won by video gaming players. The 
13 video gaming terminal must provide
the means for on-demand 
14 display of stored information as determined by the
Board.


15  (12) Electronically stored meter information required 
16 by this Section
must be preserved for a minimum of 180 days 
17 after a power loss to the service.


18  (13) It must have one or more mechanisms that accept 
19 cash in the
form of
bills. The mechanisms shall be designed 
20 to prevent obtaining credits without
paying by stringing, 
21 slamming, drilling, or other means. If such attempts at 
22 physical tampering are made, the video gaming terminal 
23 shall suspend itself from operating until reset. 


24  (14) It shall have accounting software that keeps an 
25 electronic record
which includes, but is not limited to, 
26 the following: total cash inserted
into the video gaming 
 
 
10100SB0690ham003- 733 -LRB101 04451 SMS 61572 a


1 terminal; the value of winning tickets claimed by
players; 
2 the
total credits played; the total
credits awarded
by a 
3 video gaming terminal; and pay back percentage credited to 
4 players of each video game.


5  (15) It shall be linked by a central communications 
6 system
to provide
auditing program information as approved 
7 by the Board. The central communications system shall use a 
8 standard industry protocol, as defined by the Gaming 
9 Standards Association, and shall have the functionality to 
10 enable the Board or its designee to activate or deactivate 
11 individual gaming devices from the central communications 
12 system. In no event may the
communications system approved 
13 by the Board limit participation to only one
manufacturer 
14 of video gaming terminals by either the cost in 
15 implementing
the necessary program modifications to 
16 communicate or the inability to
communicate with the 
17 central communications system.


18  (16) The Board, in its discretion, may require video 
19 gaming terminals to display Amber Alert messages if the 
20 Board makes a finding that it would be economically and 
21 technically feasible and pose no risk to the integrity and 
22 security of the central communications system and video 
23 gaming terminals.

24 Licensed terminal handlers shall have access to video 
25gaming terminals, including, but not limited to, logic door 
26access, without the physical presence or supervision of the 
 
 
10100SB0690ham003- 734 -LRB101 04451 SMS 61572 a


1Board or its agent to perform, in coordination with and with 
2project approval from the central communication system 
3provider: 
4  (i) the clearing of the random access memory and 
5 reprogramming of the video gaming terminal; 
6  (ii) the installation of new video gaming terminal 
7 software and software upgrades that have been approved by 
8 the Board; 
9  (iii) the placement, connection to the central 
10 communication system, and go-live operation of video 
11 gaming terminals at a licensed establishment, licensed 
12 truck stop establishment, licensed large truck stop 
13 establishment, licensed fraternal establishment, or 
14 licensed veterans establishment; 
15  (iv) the repair and maintenance of a video gaming 
16 terminal located at a licensed establishment, licensed 
17 truck stop establishment, licensed large truck stop 
18 establishment, licensed fraternal establishment, or 
19 licensed veterans establishment, including, but not 
20 limited to, the replacement of the video gaming terminal 
21 with a new video gaming terminal; 
22  (v) the temporary movement, disconnection, 
23 replacement, and reconnection of video gaming terminals to 
24 allow for physical improvements and repairs at a licensed 
25 establishment, licensed truck stop establishment, licensed 
26 large truck stop establishment, licensed fraternal 
 
 
10100SB0690ham003- 735 -LRB101 04451 SMS 61572 a


1 establishment, or licensed veterans establishment, such as 
2 replacement of flooring, interior repairs, and other 
3 similar activities; and 
4  (vi) such other functions as the Board may otherwise 
5 authorize. 
6 The Board shall, at a licensed terminal operator's expense, 
7cause all keys and other required devices to be provided to a 
8terminal operator necessary to allow the licensed terminal 
9handler access to the logic door to the terminal operator's 
10video gaming terminals. 
11 The Board may adopt rules to establish additional criteria 
12to preserve the integrity and security of video gaming in this 
13State. The central communications system vendor may be licensed 
14as a video gaming terminal manufacturer or a video gaming 
15terminal distributor, or both, but in no event shall the 
16central communications system vendor be licensed as a video 
17gaming terminal operator. 
18 The Board shall not permit the development of information 
19or the use by any licensee of gaming device or individual game 
20performance data. Nothing in this Act shall inhibit or prohibit 
21the Board from the use of gaming device or individual game 
22performance data in its regulatory duties. The Board shall 
23adopt rules to ensure that all licensees are treated and all 
24licensees act in a non-discriminatory manner and develop 
25processes and penalties to enforce those rules. 
26(Source: P.A. 98-31, eff. 6-24-13; 98-377, eff. 1-1-14; 98-582, 
 
 
10100SB0690ham003- 736 -LRB101 04451 SMS 61572 a


1eff. 8-27-13; 98-756, eff. 7-16-14.)

2 (230 ILCS 40/20)

3 Sec. 20. Video gaming terminal payouts Direct dispensing of 
4receipt tickets only. 
5 (a) A video gaming
terminal may not
directly dispense 
6coins, cash, tokens, or any other article of exchange or
value 
7except for receipt tickets. Tickets shall be dispensed by

8pressing the ticket dispensing button on the video gaming 
9terminal at the end
of one's turn or play. The ticket shall 
10indicate the total amount of credits
and the cash award, the 
11time of day in a 24-hour format showing hours and
minutes, the 
12date, the
terminal serial number, the sequential number of the 
13ticket, and an encrypted
validation number from which the 
14validity of the prize may be determined.
The player shall turn 
15in this ticket to the appropriate
person at the licensed 
16establishment, licensed truck stop establishment, licensed 
17large truck stop establishment, licensed fraternal 
18establishment,
or
licensed veterans establishment
to receive 
19the cash award. 
20 (b) The cost
of the credit shall be one cent, 5 cents, 10 
21cents, or 25 cents, or $1, and the maximum
wager played per 
22hand shall not exceed $4 $2.
No cash award for the maximum 
23wager on any
individual hand shall exceed $1,199 $500. No cash 
24award for the maximum wager on a jackpot, progressive or 
25otherwise, shall exceed $10,000.
 
 
10100SB0690ham003- 737 -LRB101 04451 SMS 61572 a


1 (c) In-location bonus jackpot games are hereby authorized. 
2The Board shall adopt emergency rules pursuant to Section 5-45 
3of the Illinois Administrative
Procedure Act to implement this 
4subsection (c) within 90 days after the effective date of this 
5amendatory Act of the 101st General Assembly. Jackpot winnings 
6from in-location progressive games shall be paid by the 
7terminal operator to the player not later than 3 days after 
8winning such a jackpot. 

9(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)



10 (230 ILCS 40/25)


11 Sec. 25. Restriction of licensees.

12 (a) Manufacturer. A person may not be licensed as a 
13manufacturer of a
video gaming terminal in Illinois unless the 
14person has a valid
manufacturer's license issued
under this 
15Act. A manufacturer may only sell video gaming terminals for 
16use
in Illinois to
persons having a valid distributor's 
17license.

18 (b) Distributor. A person may not sell, distribute, or 
19lease
or market a video gaming terminal in Illinois unless the 
20person has a valid
distributor's
license issued under this Act. 
21A distributor may only sell video gaming
terminals for use in

22Illinois to persons having a valid distributor's or terminal 
23operator's
license.

24 (c) Terminal operator. A person may not own, maintain, or 
25place a video gaming terminal unless he has a valid terminal 
 
 
10100SB0690ham003- 738 -LRB101 04451 SMS 61572 a


1operator's
license issued
under this Act. A terminal operator 
2may only place video gaming terminals for
use in
Illinois in 
3licensed establishments, licensed truck stop establishments, 
4licensed large truck stop establishments, licensed fraternal 
5establishments,
and
licensed veterans establishments.
No 
6terminal operator may give anything of value, including but not 
7limited to
a loan or financing arrangement, to a licensed 
8establishment, licensed truck stop establishment, licensed 
9large truck stop establishment,
licensed fraternal 
10establishment, or licensed veterans establishment as
any 
11incentive or inducement to locate video terminals in that 
12establishment.
Of the after-tax profits
from a video gaming 
13terminal, 50% shall be paid to the terminal
operator and 50% 
14shall be paid to the licensed establishment, licensed truck 
15stop establishment, licensed large truck stop establishment,

16licensed fraternal establishment, or
licensed veterans 
17establishment, notwithstanding any agreement to the contrary.

18A video terminal operator that violates one or more 
19requirements of this subsection is guilty of a Class 4 felony 
20and is subject to termination of his or her license by the 
21Board. 

22 (d) Licensed technician. A person may not service, 
23maintain, or repair a
video gaming terminal
in this State 
24unless he or she (1) has a valid technician's license issued

25under this Act, (2) is a terminal operator, or (3) is employed 
26by a terminal
operator, distributor, or manufacturer.

 
 
10100SB0690ham003- 739 -LRB101 04451 SMS 61572 a


1 (d-5) Licensed terminal handler. No person, including, but 
2not limited to, an employee or independent contractor working 
3for a manufacturer, distributor, supplier, technician, or 
4terminal operator licensed pursuant to this Act, shall have 
5possession or control of a video gaming terminal, or access to 
6the inner workings of a video gaming terminal, unless that 
7person possesses a valid terminal handler's license issued 
8under this Act. 
9 (e) Licensed establishment. No video gaming terminal may be 
10placed in any licensed establishment, licensed veterans 
11establishment, licensed truck stop establishment, licensed 
12large truck stop establishment,
or licensed fraternal 
13establishment
unless the owner
or agent of the owner of the 
14licensed establishment, licensed veterans establishment, 
15licensed truck stop establishment, licensed large truck stop 
16establishment, or licensed
fraternal establishment has entered 
17into a
written use agreement with the terminal operator for 
18placement of the
terminals. A copy of the use agreement shall 
19be on file in the terminal
operator's place of business and 
20available for inspection by individuals
authorized by the 
21Board. A licensed establishment, licensed truck stop 
22establishment, licensed veterans establishment,
or
licensed

23fraternal
establishment may operate up to 6 5 video gaming 
24terminals on its premises at any
time. A licensed large truck 
25stop establishment may operate up to 10 video gaming terminals 
26on its premises at any time.

 
 
10100SB0690ham003- 740 -LRB101 04451 SMS 61572 a


1 (f) (Blank).

2 (g) Financial interest restrictions.
As used in this Act, 
3"substantial interest" in a partnership, a corporation, an

4organization, an association, a business, or a limited 
5liability company means:


6  (A) When, with respect to a sole proprietorship, an 
7 individual or
his or her spouse owns, operates, manages, or 
8 conducts, directly
or indirectly, the organization, 
9 association, or business, or any part thereof;
or


10  (B) When, with respect to a partnership, the individual 
11 or his or
her spouse shares in any of the profits, or 
12 potential profits,
of the partnership activities; or


13  (C) When, with respect to a corporation, an individual 
14 or his or her
spouse is an officer or director, or the 
15 individual or his or her spouse is a holder, directly or 
16 beneficially, of 5% or more of any class
of stock of the 
17 corporation; or


18  (D) When, with respect to an organization not covered 
19 in (A), (B) or
(C) above, an individual or his or her 
20 spouse is an officer or manages the
business affairs, or 
21 the individual or his or her spouse is the
owner of or 
22 otherwise controls 10% or more of the assets of the 
23 organization;
or


24  (E) When an individual or his or her spouse furnishes

25 5% or more of the capital, whether in cash, goods, or 
26 services, for the
operation of any business, association, 
 
 
10100SB0690ham003- 741 -LRB101 04451 SMS 61572 a


1 or organization during any calendar
year; or
2  (F) When, with respect to a limited liability company, 
3 an individual or his or her
spouse is a member, or the 
4 individual or his or her spouse is a holder, directly or 
5 beneficially, of 5% or more of the membership interest of 
6 the limited liability company. 

7 For purposes of this subsection (g), "individual" includes 
8all individuals or their spouses whose combined interest would 
9qualify as a substantial interest under this subsection (g) and 
10whose activities with respect to an organization, association, 
11or business are so closely aligned or coordinated as to 
12constitute the activities of a single entity. 
13 (h) Location restriction. A licensed establishment, 
14licensed truck stop establishment, licensed large truck stop 
15establishment, licensed
fraternal
establishment, or licensed 
16veterans establishment that is (i) located within 1,000
feet of 
17a facility operated by an organization licensee licensed under 
18the Illinois Horse Racing Act of 1975 or the home dock of a 
19riverboat licensed under the Illinois Riverboat
Gambling Act or 
20(ii) located within 100 feet of a school or a place of worship 
21under the Religious Corporation Act, is ineligible to operate a 
22video gaming terminal. The location restrictions in this 
23subsection (h) do not apply if (A) a facility operated by an 
24organization licensee, a school, or a place of worship moves to 
25or is established within the restricted area after a licensed 
26establishment, licensed truck stop establishment, licensed 
 
 
10100SB0690ham003- 742 -LRB101 04451 SMS 61572 a


1large truck stop establishment, licensed fraternal 
2establishment, or licensed veterans establishment becomes 
3licensed under this Act or (B) a school or place of worship 
4moves to or is established within the restricted area after a 
5licensed establishment, licensed truck stop establishment, 
6licensed large truck stop establishment, licensed fraternal 
7establishment, or licensed veterans establishment obtains its 
8original liquor license. For the purpose of this subsection, 
9"school" means an elementary or secondary public school, or an 
10elementary or secondary private school registered with or 
11recognized by the State Board of Education.
12 Notwithstanding the provisions of this subsection (h), the 
13Board may waive the requirement that a licensed establishment, 
14licensed truck stop establishment, licensed large truck stop 
15establishment, licensed fraternal establishment, or licensed 
16veterans establishment not be located within 1,000 feet from a 
17facility operated by an organization licensee licensed under 
18the Illinois Horse Racing Act of 1975 or the home dock of a 
19riverboat licensed under the Illinois Riverboat Gambling Act. 
20The Board shall not grant such waiver if there is any common 
21ownership or control, shared business activity, or contractual 
22arrangement of any type between the establishment and the 
23organization licensee or owners licensee of a riverboat. The 
24Board shall adopt rules to implement the provisions of this 
25paragraph.
26 (h-5) Restrictions on licenses in malls. The Board shall 
 
 
10100SB0690ham003- 743 -LRB101 04451 SMS 61572 a


1not grant an application to become a licensed video gaming 
2location if the Board determines that granting the application 
3would more likely than not cause a terminal operator, 
4individually or in combination with other terminal operators, 
5licensed video gaming location, or other person or entity, to 
6operate the video gaming terminals in 2 or more licensed video 
7gaming locations as a single video gaming operation.
8  (1) In making determinations under this subsection 
9 (h-5), factors to be considered by the Board shall include, 
10 but not be limited to, the following:
11   (A) the physical aspects of the location;
12   (B) the ownership, control, or management of the 
13 location;
14   (C) any arrangements, understandings, or 
15 agreements, written or otherwise, among or involving 
16 any persons or entities that involve the conducting of 
17 any video gaming business or the sharing of costs or 
18 revenues; and
19   (D) the manner in which any terminal operator or 
20 other related entity markets, advertises, or otherwise 
21 describes any location or locations to any other person 
22 or entity or to the public.
23  (2) The Board shall presume, subject to rebuttal, that 
24 the granting of an application to become a licensed video 
25 gaming location within a mall will cause a terminal 
26 operator, individually or in combination with other 
 
 
10100SB0690ham003- 744 -LRB101 04451 SMS 61572 a


1 persons or entities, to operate the video gaming terminals 
2 in 2 or more licensed video gaming locations as a single 
3 video gaming operation if the Board determines that 
4 granting the license would create a local concentration of 
5 licensed video gaming locations.
6 For the purposes of this subsection (h-5):
7 "Mall" means a building, or adjoining or connected 
8buildings, containing 4 or more separate locations.
9 "Video gaming operation" means the conducting of video 
10gaming and all related activities.
11 "Location" means a space within a mall containing a 
12separate business, a place for a separate business, or a place 
13subject to a separate leasing arrangement by the mall owner.
14 "Licensed video gaming location" means a licensed 
15establishment, licensed fraternal establishment, licensed 
16veterans establishment, licensed truck stop establishment, or 
17licensed large truck stop.
18 "Local concentration of licensed video gaming locations" 
19means that the combined number of licensed video gaming 
20locations within a mall exceed half of the separate locations 
21within the mall. 
22 (i) Undue economic concentration. In addition to 
23considering all other requirements under this Act, in deciding 
24whether to approve the operation of video gaming terminals by a 
25terminal operator in a location, the Board shall consider the 
26impact of any economic concentration of such operation of video 
 
 
10100SB0690ham003- 745 -LRB101 04451 SMS 61572 a


1gaming terminals. The Board shall not allow a terminal operator 
2to operate video gaming terminals if the Board determines such 
3operation will result in undue economic concentration. For 
4purposes of this Section, "undue economic concentration" means 
5that a terminal operator would have such actual or potential 
6influence over video gaming terminals in Illinois as to:
7  (1) substantially impede or suppress competition among 
8 terminal operators;
9  (2) adversely impact the economic stability of the 
10 video gaming industry in Illinois; or
11  (3) negatively impact the purposes of the Video Gaming 
12 Act.
13 The Board shall adopt rules concerning undue economic 
14concentration with respect to the operation of video gaming 
15terminals in Illinois. The rules shall include, but not be 
16limited to, (i) limitations on the number of video gaming 
17terminals operated by any terminal operator within a defined 
18geographic radius and (ii) guidelines on the discontinuation of 
19operation of any such video gaming terminals the Board 
20determines will cause undue economic concentration. 

21 (j) The provisions of the Illinois Antitrust Act are fully 
22and equally applicable to the activities of any licensee under 
23this Act. 

24(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77, 
25eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)


 
 
10100SB0690ham003- 746 -LRB101 04451 SMS 61572 a


1 (230 ILCS 40/30)

2 Sec. 30. Multiple types of licenses prohibited. A video 
3gaming
terminal
manufacturer may not be licensed as a video 
4gaming terminal
operator or own, manage, or control a licensed

5establishment, licensed truck stop establishment, licensed 
6large truck stop establishment, licensed fraternal 
7establishment, or licensed veterans
establishment, and shall 
8be licensed to sell only to persons having a valid 
9distributor's license or, if the manufacturer also holds a 
10valid distributor's license, to sell, distribute, lease, or 
11market to persons having a valid terminal operator's license. A 
12video
gaming terminal distributor may not be licensed as a

13video gaming terminal operator or own, manage, or
control a

14licensed establishment, licensed truck stop establishment, 
15licensed large truck stop establishment, licensed fraternal 
16establishment, or licensed
veterans
establishment, and shall 
17only contract with a licensed terminal
operator. A video gaming 
18terminal operator may not be licensed as
a video
gaming 
19terminal manufacturer or distributor or own, manage, or control 
20a
licensed establishment, licensed truck stop establishment, 
21licensed large truck stop establishment, licensed fraternal 
22establishment, or licensed
veterans
establishment, and shall 
23be licensed only to contract with licensed
distributors and 
24licensed establishments, licensed truck stop establishments, 
25licensed large truck stop establishments,
licensed fraternal

26establishments,
and licensed veterans establishments. An owner 
 
 
10100SB0690ham003- 747 -LRB101 04451 SMS 61572 a


1or manager of a
licensed establishment, licensed truck stop 
2establishment, licensed large truck stop establishment, 
3licensed fraternal
establishment, or licensed
veterans

4establishment may not be licensed as a video gaming terminal

5manufacturer, distributor, or operator, and shall only 
6contract with a
licensed operator to place and service this 
7equipment.

8(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)

9 (230 ILCS 40/35)

10 Sec. 35. Display of license; confiscation; violation as 
11felony.  
12 (a) Each
video gaming terminal shall be licensed by the 
13Board before placement
or operation on the premises of a 
14licensed establishment, licensed truck stop
establishment, 
15licensed large truck stop establishment, licensed
fraternal 
16establishment, or licensed veterans establishment. The license 
17of
each video gaming terminal shall be maintained
at the 
18location where the video gaming terminal is operated. Failure 
19to do so
is a petty offense with a fine
not to exceed $100.
Any 
20licensed establishment, licensed truck stop establishment, 
21licensed large truck stop establishment, licensed
fraternal 
22establishment, or licensed
veterans establishment
used for the 
23conduct of gambling games in violation of this Act shall be

24considered a gambling place in violation of Section 28-3 of the 
25Criminal
Code of 2012. Every gambling device found in
a 
 
 
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1licensed establishment, licensed truck stop establishment, 
2licensed large truck stop establishment, licensed fraternal

3establishment, or licensed
veterans establishment operating 
4gambling games in violation of this
Act shall be subject to 
5seizure, confiscation, and destruction as provided
in Section 
628-5 of the Criminal Code of 2012.
Any license issued under the 
7Liquor Control Act
of 1934 to any owner or operator of a 
8licensed establishment, licensed truck
stop establishment, 
9licensed large truck stop establishment, licensed
fraternal 
10establishment, or licensed veterans establishment that 
11operates or
permits the operation of a video gaming terminal 
12within its establishment in
violation of this Act shall be 
13immediately revoked.
No person may own, operate, have in his or 
14her possession or custody or under
his or her control, or 
15permit to be kept in any place under his or her
possession or 
16control, any
device that awards credits and contains a circuit, 
17meter, or switch capable of
removing and recording the removal 
18of credits when the award of credits 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. 
23 A violation of this Section is a Class 4 felony. All

24devices that are owned, operated, or possessed in violation of 
25this Section are
hereby declared to be public nuisances and 
26shall be subject to seizure,
confiscation, and destruction as 
 
 
10100SB0690ham003- 749 -LRB101 04451 SMS 61572 a


1provided in Section 28-5 of the Criminal Code
of 2012.

2 The provisions of this Section do not apply to devices or 
3electronic video
game terminals licensed pursuant to this Act. 
4A video gaming terminal operated for amusement only and bearing 
5a valid amusement tax sticker shall not be subject to this 
6Section until 30 days after the Board establishes that the 
7central communications system is functional. 

8 (b) (1) The odds of winning each video game shall be posted 
9on or near each video gaming terminal. The manner in which the 
10odds are calculated and how they are posted shall be determined 
11by the Board by rule.
12 (2) No video gaming terminal licensed under this Act may be 
13played except during the legal hours of operation allowed for 
14the consumption of alcoholic beverages at the licensed 
15establishment, licensed fraternal establishment, or licensed 
16veterans establishment. A licensed establishment, licensed 
17fraternal establishment, or licensed veterans establishment 
18that violates this subsection is subject to termination of its 
19license by the Board. 
20(Source: P.A. 97-1150, eff. 1-25-13; 98-111, eff. 1-1-14.)



21 (230 ILCS 40/45)



22 Sec. 45. Issuance of license.

23 (a) The burden is upon each applicant to
demonstrate his 
24suitability for licensure. Each video gaming terminal

25manufacturer, distributor, supplier, operator, handler, 
 
 
10100SB0690ham003- 750 -LRB101 04451 SMS 61572 a


1licensed establishment, licensed truck stop establishment, 
2licensed large truck stop establishment, licensed
fraternal

3establishment, and licensed veterans establishment shall be

4licensed by the Board.
The Board may issue or deny a license 
5under this Act to any person pursuant to the same criteria set 
6forth in Section 9 of the Illinois Riverboat Gambling Act. 

7 (a-5) The Board shall not grant a license to a person who 
8has facilitated, enabled, or participated in the use of 
9coin-operated devices for gambling purposes or who is under the 
10significant influence or control of such a person. For the 
11purposes of this Act, "facilitated, enabled, or participated in 
12the use of coin-operated amusement devices for gambling 
13purposes" means that the person has been convicted of any 
14violation of Article 28 of the Criminal Code of 1961 or the 
15Criminal Code of 2012. If there is pending legal action against 
16a person for any such violation, then the Board shall delay the 
17licensure of that person until the legal action is resolved. 
18 (b) Each person seeking and possessing a license as a video 
19gaming terminal manufacturer, distributor, supplier, operator, 
20handler, licensed establishment, licensed truck stop 
21establishment, licensed large truck stop establishment, 
22licensed fraternal establishment, or licensed veterans 
23establishment shall submit to a background investigation 
24conducted by the Board with the assistance of the State Police 
25or other law enforcement. To the extent that the corporate 
26structure of the applicant allows, the background 
 
 
10100SB0690ham003- 751 -LRB101 04451 SMS 61572 a


1investigation shall include any or all of the following as the 
2Board deems appropriate or as provided by rule for each 
3category of licensure: (i) each beneficiary of a trust, (ii) 
4each partner of a partnership, (iii) each member of a limited 
5liability company, (iv) each director and officer of a publicly 
6or non-publicly held corporation, (v) each stockholder of a 
7non-publicly held corporation, (vi) each stockholder of 5% or 
8more of a publicly held corporation, or (vii) each stockholder 
9of 5% or more in a parent or subsidiary corporation.
10 (c) Each person seeking and possessing a license as a video 
11gaming terminal manufacturer, distributor, supplier, operator, 
12handler, licensed establishment, licensed truck stop 
13establishment, licensed large truck stop establishment, 
14licensed fraternal establishment, or licensed veterans 
15establishment shall disclose the identity of every person, 
16association, trust, corporation, or limited liability company 
17having a greater than 1% direct or indirect pecuniary interest 
18in the video gaming terminal operation for which the license is 
19sought. If the disclosed entity is a trust, the application 
20shall disclose the names and addresses of the beneficiaries; if 
21a corporation, the names and addresses of all stockholders and 
22directors; if a limited liability company, the names and 
23addresses of all members; or if a partnership, the names and 
24addresses of all partners, both general and limited.
25 (d) No person may be licensed as a video gaming terminal 
26manufacturer, distributor, supplier, operator, handler, 
 
 
10100SB0690ham003- 752 -LRB101 04451 SMS 61572 a


1licensed establishment, licensed truck stop establishment, 
2licensed large truck stop establishment, licensed fraternal 
3establishment, or licensed veterans establishment if that 
4person has been found by the Board to:
5  (1) have a background, including a criminal record, 
6 reputation, habits, social or business associations, or 
7 prior activities that pose a threat to the public interests 
8 of the State or to the security and integrity of video 
9 gaming;
10  (2) create or enhance the dangers of unsuitable, 
11 unfair, or illegal practices, methods, and activities in 
12 the conduct of video gaming; or
13  (3) present questionable business practices and 
14 financial arrangements incidental to the conduct of video 
15 gaming activities. 
16 (e) Any applicant for any license under this Act has the 
17burden of proving his or her qualifications to the satisfaction 
18of the Board. The Board may adopt rules to establish additional 
19qualifications and requirements to preserve the integrity and 
20security of video gaming in this State. 
21 (f) A non-refundable application fee shall be paid at the 
22time an
application for a license is filed with the Board in 
23the following amounts:

24  (1) Manufacturer..........................$5,000

25  (2) Distributor...........................$5,000

26  (3) Terminal operator.....................$5,000

 
 
10100SB0690ham003- 753 -LRB101 04451 SMS 61572 a


1  (4) Supplier..............................$2,500

2  (5) Technician..............................$100

3  (6) Terminal Handler........................$100

4  (7) Licensed establishment, licensed truck stop

5 establishment, licensed large truck stop establishment,

6 licensed fraternal establishment, or licensed

7 veterans establishment...............................$100
8 (g) The Board shall establish an
annual fee for each 
9license not to exceed the following:
10  (1) Manufacturer.........................$10,000

11  (2) Distributor..........................$10,000

12  (3) Terminal operator.....................$5,000

13  (4) Supplier..............................$2,000

14  (5) Technician..............................$100

15  (6) Licensed establishment, licensed truck stop

16 establishment, licensed large truck stop establishment,

17 licensed fraternal establishment, or licensed

18 veterans establishment..........................$100

19  (7) Video gaming terminal...................$100

20  (8) Terminal Handler............................$100 

21 (h) A terminal operator and a licensed establishment, 
22licensed truck stop establishment, licensed large truck stop 
23establishment, licensed fraternal establishment,
or licensed 
24veterans establishment shall equally split the fees specified 
25in item (7) of subsection (g). 
26(Source: P.A. 100-1152, eff. 12-14-18.)


 
 
10100SB0690ham003- 754 -LRB101 04451 SMS 61572 a


1 (230 ILCS 40/55)

2 Sec. 55. Precondition for licensed location. In all cases 
3of
application for a licensed location,
to operate a video 
4gaming terminal,
each licensed establishment, licensed

5fraternal establishment, or licensed veterans
establishment

6shall
possess a valid liquor license issued by the Illinois 
7Liquor Control Commission
in effect at the time of application

8and at all times thereafter during which a video
gaming 
9terminal is made available to the public for play at that 
10location. Video gaming terminals in a licensed location shall 
11be
operated only during the same hours of operation generally 
12permitted to holders of a license under the Liquor Control Act 
13of 1934 within the unit of local government in which they are 
14located. A licensed truck stop establishment or licensed large 
15truck stop establishment that does not hold a liquor license 
16may operate video gaming terminals on a continuous basis. A 
17licensed fraternal establishment or licensed veterans 
18establishment that does not hold a liquor license may operate 
19video gaming terminals if (i) the establishment is located in a 
20county with a population between 6,500 and 7,000, based on the 
212000 U.S. Census, (ii) the county prohibits by ordinance the 
22sale of alcohol, and (iii) the establishment is in a portion of 
23the county where the sale of alcohol is prohibited. A licensed 
24fraternal establishment or licensed veterans establishment

25that does not hold a liquor license may operate video gaming 
 
 
10100SB0690ham003- 755 -LRB101 04451 SMS 61572 a


1terminals
if (i) the establishment is located in a municipality 
2within a county with a population
between 8,500 and 9,000 based 
3on the 2000 U.S. Census and (ii) the
municipality or county 
4prohibits or limits the sale of alcohol by ordinance in a way

5that prohibits the establishment from selling alcohol.

6(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10; 
797-594, eff. 8-26-11.)

8 (230 ILCS 40/58)

9 Sec. 58. Location of terminals.  Video gaming terminals 
10must be located
in an area restricted to persons over 21 years 
11of age the entrance to which is within the view of at least one 
12employee, who is over 21 years of age, of the
establishment in 
13which they are located. The placement of video gaming terminals 
14in licensed establishments, licensed truck stop 
15establishments, licensed large truck stop establishments, 
16licensed fraternal establishments, and licensed veterans 
17establishments shall be subject to the rules promulgated by the 
18Board pursuant to the Illinois Administrative Procedure Act. 

19(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)

20 (230 ILCS 40/60)

21 Sec. 60. Imposition and distribution of tax.

22 (a) A tax of 30% is imposed on net terminal income
and 
23shall be collected by the Board.

24 (b) Of the tax collected under this subsection (a) Section, 
 
 
10100SB0690ham003- 756 -LRB101 04451 SMS 61572 a


1five-sixths shall be
deposited into the Capital Projects Fund 
2and one-sixth shall be deposited into the Local Government 
3Video Gaming Distributive Fund. 

4 (b) Beginning on July 1, 2019, an additional tax of 3% is 
5imposed on net terminal income
and shall be collected by the 
6Board.
7 Beginning on July 1, 2020, an additional tax of 1% is 
8imposed on net terminal income
and shall be collected by the 
9Board.
10 The tax collected under this subsection (b) shall be 
11deposited into the Capital Projects Fund. 
12 (c) Revenues generated from the play of video gaming 
13terminals shall be
deposited by the terminal operator, who is 
14responsible for tax payments, in
a specially created, separate 
15bank account maintained by the video gaming
terminal operator

16to allow for electronic fund transfers of moneys for tax 
17payment.

18 (d) Each licensed establishment, licensed truck stop 
19establishment, licensed large truck stop establishment, 
20licensed fraternal establishment,
and licensed veterans 
21establishment shall maintain an adequate video gaming
fund, 
22with the amount to be determined by the Board.

23 (e) The State's percentage of net terminal income shall be 
24reported and remitted to the Board within 15 days after the 
2515th day of each month and within 15 days after the end of each 
26month by the video terminal operator. A video terminal operator 
 
 
10100SB0690ham003- 757 -LRB101 04451 SMS 61572 a


1who falsely reports or fails to report the amount due required 
2by this Section is guilty of a Class 4 felony and is subject to 
3termination of his or her license by the Board. Each video 
4terminal operator shall keep a record of net terminal income in 
5such form as the Board may require. All payments not remitted 
6when due shall be paid together with a penalty assessment on 
7the unpaid balance at a rate of 1.5% per month. 
8(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)

9 (230 ILCS 40/79)
10 Sec. 79. Investigators. Investigators appointed by the 
11Board pursuant to the powers conferred upon the Board by 
12paragraph (20.6) of subsection (c) of Section 5 of the Illinois 
13Riverboat Gambling Act and Section 80 of this Act shall have 
14authority to conduct investigations, searches, seizures, 
15arrests, and other duties imposed under this Act and the 
16Illinois Riverboat Gambling Act, as deemed necessary by the 
17Board. These investigators have and may exercise all of the 
18rights and powers of peace officers, provided that these powers 
19shall be (1) limited to offenses or violations occurring or 
20committed in connection with conduct subject to this Act, 
21including, but not limited to, the manufacture, distribution, 
22supply, operation, placement, service, maintenance, or play of 
23video gaming terminals and the distribution of profits and 
24collection of revenues resulting from such play, and (2) 
25exercised, to the fullest extent practicable, in cooperation 
 
 
10100SB0690ham003- 758 -LRB101 04451 SMS 61572 a


1with the local police department of the applicable municipality 
2or, if these powers are exercised outside the boundaries of an 
3incorporated municipality or within a municipality that does 
4not have its own police department, in cooperation with the 
5police department whose jurisdiction encompasses the 
6applicable locality.

7(Source: P.A. 97-809, eff. 7-13-12.)



8 (230 ILCS 40/80)


9 Sec. 80. Applicability of Illinois Riverboat Gambling Act. 
10The provisions of the Illinois Riverboat Gambling Act, and all 
11rules promulgated thereunder, shall apply to the Video Gaming 
12Act, except where there is a conflict between the 2 Acts. In 
13the event of a conflict between the 2 Acts, the provisions of 
14the Illinois Gambling Act shall prevail. All current supplier 
15licensees under the Illinois Riverboat Gambling Act shall be 
16entitled to licensure under the Video Gaming Act as 
17manufacturers, distributors, or suppliers without additional 
18Board investigation or approval, except by vote of the Board; 
19however, they are required to pay application and annual fees 
20under this Act. All provisions of the Uniform Penalty and 
21Interest Act shall apply, as far as practicable, to the subject 
22matter of this Act to the same extent as if such provisions 
23were included herein.

24(Source: P.A. 100-1152, eff. 12-14-18.)


 
 
10100SB0690ham003- 759 -LRB101 04451 SMS 61572 a


1 Section 35-65. The Liquor Control Act of 1934 is amended by 
2changing Sections 5-1 and 6-30 as follows:

3 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
4 Sec. 5-1. Licenses issued by the Illinois Liquor Control 
5Commission
shall be of the following classes:
6 (a) Manufacturer's license - Class 1.
Distiller, Class 2. 
7Rectifier, Class 3. Brewer, Class 4. First Class Wine

8Manufacturer, Class 5. Second Class Wine Manufacturer,
Class 6. 
9First Class Winemaker, Class 7. Second Class Winemaker, Class 
108.
Limited Wine Manufacturer, Class 9. Craft Distiller, Class 
1110. Class 1 Brewer, Class 11. Class 2 Brewer,
12 (b) Distributor's license,
13 (c) Importing Distributor's license,
14 (d) Retailer's license,
15 (e) Special Event Retailer's license (not-for-profit),
16 (f) Railroad license,
17 (g) Boat license,
18 (h) Non-Beverage User's license,
19 (i) Wine-maker's premises license,
20 (j) Airplane license,
21 (k) Foreign importer's license,
22 (l) Broker's license,
23 (m) Non-resident dealer's
license,
24 (n) Brew Pub license,
25 (o) Auction liquor license,
 
 
10100SB0690ham003- 760 -LRB101 04451 SMS 61572 a


1 (p) Caterer retailer license,
2 (q) Special use permit license,
3 (r) Winery shipper's license,
4 (s) Craft distiller tasting permit,
5 (t) Brewer warehouse permit. 
6 No
person, firm, partnership, corporation, or other legal 
7business entity that is
engaged in the manufacturing of wine 
8may concurrently obtain and hold a
wine-maker's license and a 
9wine manufacturer's license.
10 (a) A manufacturer's license shall allow the manufacture,

11importation in bulk, storage, distribution and sale of 
12alcoholic liquor
to persons without the State, as may be 
13permitted by law and to licensees
in this State as follows:
14 Class 1. A Distiller may make sales and deliveries of 
15alcoholic liquor to
distillers, rectifiers, importing 
16distributors, distributors and
non-beverage users and to no 
17other licensees.
18 Class 2. A Rectifier, who is not a distiller, as defined 
19herein, may make
sales and deliveries of alcoholic liquor to 
20rectifiers, importing distributors,
distributors, retailers 
21and non-beverage users and to no other licensees.
22 Class 3. A Brewer may make sales and deliveries of beer to 
23importing
distributors and distributors and may make sales as 
24authorized under subsection (e) of Section 6-4 of this Act.
25 Class 4. A first class wine-manufacturer may make sales and 
26deliveries of
up to 50,000 gallons of wine to manufacturers,

 
 
10100SB0690ham003- 761 -LRB101 04451 SMS 61572 a


1importing
distributors and distributors, and to no other 
2licensees.
3 Class 5. A second class Wine manufacturer may make sales 
4and deliveries
of more than 50,000 gallons of wine to 
5manufacturers, importing distributors
and distributors and to 
6no other licensees.
7 Class 6. A first-class wine-maker's license shall allow the 
8manufacture
of up to 50,000 gallons of wine per year, and the

9storage
and sale of such
wine to distributors in the State and 
10to persons without the
State, as may be permitted by law. A 
11person who, prior to June 1, 2008 (the effective date of Public 
12Act 95-634), is a holder of a first-class wine-maker's license 
13and annually produces more than 25,000 gallons of its own wine 
14and who distributes its wine to licensed retailers shall cease 
15this practice on or before July 1, 2008 in compliance with 
16Public Act 95-634.
17 Class 7. A second-class wine-maker's license shall allow 
18the manufacture
of between 50,000 and 150,000 gallons of wine 
19per year, and
the
storage and sale of such wine
to distributors 
20in this State and to persons without the State, as may be

21permitted by law. A person who, prior to June 1, 2008 (the 
22effective date of Public Act 95-634), is a holder of a 
23second-class wine-maker's license and annually produces more 
24than 25,000 gallons of its own wine and who distributes its 
25wine to licensed retailers shall cease this practice on or 
26before July 1, 2008 in compliance with Public Act 95-634.
 
 
10100SB0690ham003- 762 -LRB101 04451 SMS 61572 a


1 Class 8. A limited wine-manufacturer may make sales and 
2deliveries not to
exceed 40,000 gallons of wine per year to 
3distributors, and to
non-licensees in accordance with the 
4provisions of this Act.
5 Class 9. A craft distiller license shall allow the 
6manufacture of up to 100,000 gallons of spirits by distillation 
7per year and the storage of such spirits. If a craft distiller 
8licensee, including a craft distiller licensee who holds more 
9than one craft distiller license, is not affiliated with any 
10other manufacturer of spirits, then the craft distiller 
11licensee may sell such spirits to distributors in this State 
12and up to 2,500 gallons of such spirits to non-licensees to the 
13extent permitted by any exemption approved by the Commission 
14pursuant to Section 6-4 of this Act. A craft distiller license 
15holder may store such spirits at a non-contiguous licensed 
16location, but at no time shall a craft distiller license holder 
17directly or indirectly produce in the aggregate more than 
18100,000 gallons of spirits per year.
19 A craft distiller licensee may hold more than one craft 
20distiller's license. However, a craft distiller that holds more 
21than one craft distiller license shall not manufacture, in the 
22aggregate, more than 100,000 gallons of spirits by distillation 
23per year and shall not sell, in the aggregate, more than 2,500 
24gallons of such spirits to non-licensees in accordance with an 
25exemption approved by the State Commission pursuant to Section 
266-4 of this Act. 
 
 
10100SB0690ham003- 763 -LRB101 04451 SMS 61572 a


1 Any craft distiller licensed under this Act who on July 28, 
22010 (the effective date of Public Act 96-1367) was licensed as 
3a distiller and manufactured no more spirits than permitted by 
4this Section shall not be required to pay the initial licensing 
5fee. 
6 Class 10. A class 1 brewer license, which may only be 
7issued to a licensed brewer or licensed non-resident dealer, 
8shall allow the manufacture of up to 930,000 gallons of beer 
9per year provided that the class 1 brewer licensee does not 
10manufacture more than a combined 930,000 gallons of beer per 
11year and is not a member of or affiliated with, directly or 
12indirectly, a manufacturer that produces more than 930,000 
13gallons of beer per year or any other alcoholic liquor. A class 
141 brewer licensee may make sales and deliveries to importing 
15distributors and distributors and to retail licensees in 
16accordance with the conditions set forth in paragraph (18) of 
17subsection (a) of Section 3-12 of this Act. If the State 
18Commission provides prior approval, a class 1 brewer may 
19annually transfer up to 930,000 gallons of beer manufactured by 
20that class 1 brewer to the premises of a licensed class 1 
21brewer wholly owned and operated by the same licensee. 
22 Class 11. A class 2 brewer license, which may only be 
23issued to a licensed brewer or licensed non-resident dealer, 
24shall allow the manufacture of up to 3,720,000 gallons of beer 
25per year provided that the class 2 brewer licensee does not 
26manufacture more than a combined 3,720,000 gallons of beer per 
 
 
10100SB0690ham003- 764 -LRB101 04451 SMS 61572 a


1year and is not a member of or affiliated with, directly or 
2indirectly, a manufacturer that produces more than 3,720,000 
3gallons of beer per year or any other alcoholic liquor. A class 
42 brewer licensee may make sales and deliveries to importing 
5distributors and distributors, but shall not make sales or 
6deliveries to any other licensee. If the State Commission 
7provides prior approval, a class 2 brewer licensee may annually 
8transfer up to 3,720,000 gallons of beer manufactured by that 
9class 2 brewer licensee to the premises of a licensed class 2 
10brewer wholly owned and operated by the same licensee.
11 A class 2 brewer may transfer beer to a brew pub wholly 
12owned and operated by the class 2 brewer subject to the 
13following limitations and restrictions: (i) the transfer shall 
14not annually exceed more than 31,000 gallons; (ii) the annual 
15amount transferred shall reduce the brew pub's annual permitted 
16production limit; (iii) all beer transferred shall be subject 
17to Article VIII of this Act; (iv) a written record shall be 
18maintained by the brewer and brew pub specifying the amount, 
19date of delivery, and receipt of the product by the brew pub; 
20and (v) the brew pub shall be located no farther than 80 miles 
21from the class 2 brewer's licensed location. 
22 A class 2 brewer shall, prior to transferring beer to a 
23brew pub wholly owned by the class 2 brewer, furnish a written 
24notice to the State Commission of intent to transfer beer 
25setting forth the name and address of the brew pub and shall 
26annually submit to the State Commission a verified report 
 
 
10100SB0690ham003- 765 -LRB101 04451 SMS 61572 a


1identifying the total gallons of beer transferred to the brew 
2pub wholly owned by the class 2 brewer. 
3 (a-1) A manufacturer which is licensed in this State to 
4make sales or
deliveries of alcoholic liquor to licensed 
5distributors or importing distributors and which enlists 
6agents, representatives, or
individuals acting on its behalf 
7who contact licensed retailers on a regular
and continual basis 
8in this State must register those agents, representatives,
or 
9persons acting on its behalf with the State Commission.
10 Registration of agents, representatives, or persons acting 
11on behalf of a
manufacturer is fulfilled by submitting a form 
12to the Commission. The form
shall be developed by the 
13Commission and shall include the name and address of
the 
14applicant, the name and address of the manufacturer he or she 
15represents,
the territory or areas assigned to sell to or 
16discuss pricing terms of
alcoholic liquor, and any other 
17questions deemed appropriate and necessary.
All statements in 
18the forms required to be made by law or by rule shall be
deemed 
19material, and any person who knowingly misstates any material 
20fact under
oath in an application is guilty of a Class B 
21misdemeanor. Fraud,
misrepresentation, false statements, 
22misleading statements, evasions, or
suppression of material 
23facts in the securing of a registration are grounds for

24suspension or revocation of the registration. The State 
25Commission shall post a list of registered agents on the 
26Commission's website.
 
 
10100SB0690ham003- 766 -LRB101 04451 SMS 61572 a


1 (b) A distributor's license shall allow the wholesale 
2purchase and storage
of alcoholic liquors and sale of alcoholic 
3liquors to licensees in this State and to persons without the 
4State, as may be permitted by law, and the sale of beer, cider, 
5or both beer and cider to brewers, class 1 brewers, and class 2 
6brewers that, pursuant to subsection (e) of Section 6-4 of this 
7Act, sell beer, cider, or both beer and cider to non-licensees 
8at their breweries. No person licensed as a distributor shall 
9be granted a non-resident dealer's license.
10 (c) An importing distributor's license may be issued to and 
11held by
those only who are duly licensed distributors, upon the 
12filing of an
application by a duly licensed distributor, with 
13the Commission and
the Commission shall, without the
payment of 
14any fee, immediately issue such importing distributor's

15license to the applicant, which shall allow the importation of 
16alcoholic
liquor by the licensee into this State from any point 
17in the United
States outside this State, and the purchase of 
18alcoholic liquor in
barrels, casks or other bulk containers and 
19the bottling of such
alcoholic liquors before resale thereof, 
20but all bottles or containers
so filled shall be sealed, 
21labeled, stamped and otherwise made to comply
with all 
22provisions, rules and regulations governing manufacturers in

23the preparation and bottling of alcoholic liquors. The 
24importing
distributor's license shall permit such licensee to 
25purchase alcoholic
liquor from Illinois licensed non-resident 
26dealers and foreign importers only. No person licensed as an 
 
 
10100SB0690ham003- 767 -LRB101 04451 SMS 61572 a


1importing distributor shall be granted a non-resident dealer's 
2license.
3 (d) A retailer's license shall allow the licensee to sell 
4and offer
for sale at retail, only in the premises specified in 
5the license,
alcoholic liquor for use or consumption, but not 
6for resale in any form. Nothing in Public Act 95-634 shall 
7deny, limit, remove, or restrict the ability of a holder of a 
8retailer's license to transfer, deliver, or ship alcoholic 
9liquor to the purchaser for use or consumption subject to any 
10applicable local law or ordinance. Any retail license issued to 
11a manufacturer shall only
permit the manufacturer to sell beer 
12at retail on the premises actually
occupied by the 
13manufacturer. For the purpose of further describing the type of 
14business conducted at a retail licensed premises, a retailer's 
15licensee may be designated by the State Commission as (i) an on 
16premise consumption retailer, (ii) an off premise sale 
17retailer, or (iii) a combined on premise consumption and off 
18premise sale retailer.

19 Notwithstanding any other provision of this subsection 
20(d), a retail
licensee may sell alcoholic liquors to a special 
21event retailer licensee for
resale to the extent permitted 
22under subsection (e).
23 (e) A special event retailer's license (not-for-profit) 
24shall permit the
licensee to purchase alcoholic liquors from an 
25Illinois licensed distributor
(unless the licensee purchases 
26less than $500 of alcoholic liquors for the
special event, in 
 
 
10100SB0690ham003- 768 -LRB101 04451 SMS 61572 a


1which case the licensee may purchase the alcoholic liquors
from 
2a licensed retailer) and shall allow the licensee to sell and 
3offer for
sale, at retail, alcoholic liquors for use or 
4consumption, but not for resale
in any form and only at the 
5location and on the specific dates designated for
the special 
6event in the license. An applicant for a special event retailer

7license must
(i) furnish with the application: (A) a resale 
8number issued under Section
2c of the Retailers' Occupation Tax 
9Act or evidence that the applicant is
registered under Section 
102a of the Retailers' Occupation Tax Act, (B) a
current, valid 
11exemption identification
number issued under Section 1g of the 
12Retailers' Occupation Tax Act, and a
certification to the 
13Commission that the purchase of alcoholic liquors will be
a 
14tax-exempt purchase, or (C) a statement that the applicant is 
15not registered
under Section 2a of the Retailers' Occupation 
16Tax Act, does not hold a resale
number under Section 2c of the 
17Retailers' Occupation Tax Act, and does not
hold an exemption 
18number under Section 1g of the Retailers' Occupation Tax
Act, 
19in which event the Commission shall set forth on the special 
20event
retailer's license a statement to that effect; (ii) 
21submit with the application proof satisfactory to
the State 
22Commission that the applicant will provide dram shop liability

23insurance in the maximum limits; and (iii) show proof 
24satisfactory to the
State Commission that the applicant has 
25obtained local authority
approval.
26 Nothing in this Act prohibits an Illinois licensed 
 
 
10100SB0690ham003- 769 -LRB101 04451 SMS 61572 a


1distributor from offering credit or a refund for unused, 
2salable alcoholic liquors to a holder of a special event 
3retailer's license or from the special event retailer's 
4licensee from accepting the credit or refund of alcoholic 
5liquors at the conclusion of the event specified in the 
6license.
7 (f) A railroad license shall permit the licensee to import 
8alcoholic
liquors into this State from any point in the United 
9States outside this
State and to store such alcoholic liquors 
10in this State; to make wholesale
purchases of alcoholic liquors 
11directly from manufacturers, foreign
importers, distributors 
12and importing distributors from within or outside
this State; 
13and to store such alcoholic liquors in this State; provided

14that the above powers may be exercised only in connection with 
15the
importation, purchase or storage of alcoholic liquors to be 
16sold or
dispensed on a club, buffet, lounge or dining car 
17operated on an electric,
gas or steam railway in this State; 
18and provided further, that railroad
licensees exercising the 
19above powers shall be subject to all provisions of
Article VIII 
20of this Act as applied to importing distributors. A railroad

21license shall also permit the licensee to sell or dispense 
22alcoholic
liquors on any club, buffet, lounge or dining car 
23operated on an electric,
gas or steam railway regularly 
24operated by a common carrier in this State,
but shall not 
25permit the sale for resale of any alcoholic liquors to any

26licensee within this State. A license shall be obtained for 
 
 
10100SB0690ham003- 770 -LRB101 04451 SMS 61572 a


1each car in which
such sales are made.
2 (g) A boat license shall allow the sale of alcoholic liquor 
3in
individual drinks, on any passenger boat regularly operated 
4as a common
carrier on navigable waters in this State or on any 
5riverboat operated
under
the Illinois Riverboat Gambling Act, 
6which boat or riverboat maintains a public
dining room or 
7restaurant thereon.
8 (h) A non-beverage user's license shall allow the licensee 
9to
purchase alcoholic liquor from a licensed manufacturer or 
10importing
distributor, without the imposition of any tax upon 
11the business of such
licensed manufacturer or importing 
12distributor as to such alcoholic
liquor to be used by such 
13licensee solely for the non-beverage purposes
set forth in 
14subsection (a) of Section 8-1 of this Act, and
such licenses 
15shall be divided and classified and shall permit the
purchase, 
16possession and use of limited and stated quantities of

17alcoholic liquor as follows:
18Class 1, not to exceed ......................... 500 gallons

19Class 2, not to exceed ....................... 1,000 gallons

20Class 3, not to exceed ....................... 5,000 gallons

21Class 4, not to exceed ...................... 10,000 gallons

22Class 5, not to exceed ....................... 50,000 gallons
23 (i) A wine-maker's premises license shall allow a
licensee 
24that concurrently holds a first-class wine-maker's license to 
25sell
and offer for sale at retail in the premises specified in 
26such license
not more than 50,000 gallons of the first-class 
 
 
10100SB0690ham003- 771 -LRB101 04451 SMS 61572 a


1wine-maker's wine that is
made at the first-class wine-maker's 
2licensed premises per year for use or
consumption, but not for 
3resale in any form. A wine-maker's premises
license shall allow 
4a licensee who concurrently holds a second-class
wine-maker's 
5license to sell and offer for sale at retail in the premises

6specified in such license up to 100,000 gallons of the

7second-class wine-maker's wine that is made at the second-class 
8wine-maker's
licensed premises per year
for use or consumption 
9but not for resale in any form. A wine-maker's premises license 
10shall allow a
licensee that concurrently holds a first-class 
11wine-maker's license or a second-class
wine-maker's license to 
12sell
and offer for sale at retail at the premises specified in 
13the wine-maker's premises license, for use or consumption but 
14not for resale in any form, any beer, wine, and spirits 
15purchased from a licensed distributor. Upon approval from the

16State Commission, a wine-maker's premises license
shall allow 
17the licensee to sell and offer for sale at (i) the wine-maker's

18licensed premises and (ii) at up to 2 additional locations for 
19use and
consumption and not for resale. Each location shall 
20require additional
licensing per location as specified in 
21Section 5-3 of this Act. A wine-maker's premises licensee shall

22secure liquor liability insurance coverage in an amount at

23least equal to the maximum liability amounts set forth in

24subsection (a) of Section 6-21 of this Act.

25 (j) An airplane license shall permit the licensee to import

26alcoholic liquors into this State from any point in the United 
 
 
10100SB0690ham003- 772 -LRB101 04451 SMS 61572 a


1States
outside this State and to store such alcoholic liquors 
2in this State; to
make wholesale purchases of alcoholic liquors 
3directly from
manufacturers, foreign importers, distributors 
4and importing
distributors from within or outside this State; 
5and to store such
alcoholic liquors in this State; provided 
6that the above powers may be
exercised only in connection with 
7the importation, purchase or storage
of alcoholic liquors to be 
8sold or dispensed on an airplane; and
provided further, that 
9airplane licensees exercising the above powers
shall be subject 
10to all provisions of Article VIII of this Act as
applied to 
11importing distributors. An airplane licensee shall also
permit 
12the sale or dispensing of alcoholic liquors on any passenger

13airplane regularly operated by a common carrier in this State, 
14but shall
not permit the sale for resale of any alcoholic 
15liquors to any licensee
within this State. A single airplane 
16license shall be required of an
airline company if liquor 
17service is provided on board aircraft in this
State. The annual 
18fee for such license shall be as determined in
Section 5-3.
19 (k) A foreign importer's license shall permit such licensee 
20to purchase
alcoholic liquor from Illinois licensed 
21non-resident dealers only, and to
import alcoholic liquor other 
22than in bulk from any point outside the
United States and to 
23sell such alcoholic liquor to Illinois licensed
importing 
24distributors and to no one else in Illinois;
provided that (i) 
25the foreign importer registers with the State Commission
every

26brand of
alcoholic liquor that it proposes to sell to Illinois 
 
 
10100SB0690ham003- 773 -LRB101 04451 SMS 61572 a


1licensees during the
license period, (ii) the foreign importer 
2complies with all of the provisions
of Section
6-9 of this Act 
3with respect to registration of such Illinois licensees as may

4be granted the
right to sell such brands at wholesale, and 
5(iii) the foreign importer complies with the provisions of 
6Sections 6-5 and 6-6 of this Act to the same extent that these 
7provisions apply to manufacturers.
8 (l) (i) A broker's license shall be required of all persons

9who solicit
orders for, offer to sell or offer to supply 
10alcoholic liquor to
retailers in the State of Illinois, or who 
11offer to retailers to ship or
cause to be shipped or to make 
12contact with distillers, rectifiers,
brewers or manufacturers 
13or any other party within or without the State
of Illinois in 
14order that alcoholic liquors be shipped to a distributor,

15importing distributor or foreign importer, whether such 
16solicitation or
offer is consummated within or without the 
17State of Illinois.
18 No holder of a retailer's license issued by the Illinois 
19Liquor
Control Commission shall purchase or receive any 
20alcoholic liquor, the
order for which was solicited or offered 
21for sale to such retailer by a
broker unless the broker is the 
22holder of a valid broker's license.
23 The broker shall, upon the acceptance by a retailer of the 
24broker's
solicitation of an order or offer to sell or supply or 
25deliver or have
delivered alcoholic liquors, promptly forward 
26to the Illinois Liquor
Control Commission a notification of 
 
 
10100SB0690ham003- 774 -LRB101 04451 SMS 61572 a


1said transaction in such form as
the Commission may by 
2regulations prescribe.
3 (ii) A broker's license shall be required of
a person 
4within this State, other than a retail licensee,
who, for a fee 
5or commission, promotes, solicits, or accepts orders for

6alcoholic liquor, for use or consumption and not for
resale, to 
7be shipped from this State and delivered to residents outside 
8of
this State by an express company, common carrier, or 
9contract carrier.
This Section does not apply to any person who 
10promotes, solicits, or accepts
orders for wine as specifically 
11authorized in Section 6-29 of this Act.
12 A broker's license under this subsection (l)
shall not 
13entitle the holder to
buy or sell any
alcoholic liquors for his 
14own account or to take or deliver title to
such alcoholic 
15liquors.
16 This subsection (l)
shall not apply to distributors, 
17employees of
distributors, or employees of a manufacturer who 
18has registered the
trademark, brand or name of the alcoholic 
19liquor pursuant to Section 6-9
of this Act, and who regularly 
20sells such alcoholic liquor
in the State of Illinois only to 
21its registrants thereunder.
22 Any agent, representative, or person subject to 
23registration pursuant to
subsection (a-1) of this Section shall 
24not be eligible to receive a broker's
license.
25 (m) A non-resident dealer's license shall permit such 
26licensee to ship
into and warehouse alcoholic liquor into this 
 
 
10100SB0690ham003- 775 -LRB101 04451 SMS 61572 a


1State from any point
outside of this State, and to sell such 
2alcoholic liquor to Illinois licensed
foreign importers and 
3importing distributors and to no one else in this State;

4provided that (i) said non-resident dealer shall register with 
5the Illinois Liquor
Control Commission each and every brand of 
6alcoholic liquor which it proposes
to sell to Illinois 
7licensees during the license period, (ii) it shall comply with 
8all of the provisions of Section 6-9 hereof with
respect to 
9registration of such Illinois licensees as may be granted the 
10right
to sell such brands at wholesale by duly filing such 
11registration statement, thereby authorizing the non-resident 
12dealer to proceed to sell such brands at wholesale, and (iii) 
13the non-resident dealer shall comply with the provisions of 
14Sections 6-5 and 6-6 of this Act to the same extent that these 
15provisions apply to manufacturers. No person licensed as a 
16non-resident dealer shall be granted a distributor's or 
17importing distributor's license.
18 (n) A brew pub license shall allow the licensee to only (i) 
19manufacture up to 155,000 gallons of beer per year only
on the 
20premises specified in the license, (ii) make sales of the
beer 
21manufactured on the premises or, with the approval of the 
22Commission, beer manufactured on another brew pub licensed 
23premises that is wholly owned and operated by the same licensee 
24to importing distributors, distributors,
and to non-licensees 
25for use and consumption, (iii) store the beer upon
the 
26premises, (iv) sell and offer for sale at retail from the 
 
 
10100SB0690ham003- 776 -LRB101 04451 SMS 61572 a


1licensed
premises for off-premises
consumption no more than 
2155,000 gallons per year so long as such sales are only made 
3in-person, (v) sell and offer for sale at retail for use and 
4consumption on the premises specified in the license any form 
5of alcoholic liquor purchased from a licensed distributor or 
6importing distributor, and (vi) with the prior approval of the 
7Commission, annually transfer no more than 155,000 gallons of 
8beer manufactured on the premises to a licensed brew pub wholly 
9owned and operated by the same licensee.
10 A brew pub licensee shall not under any circumstance sell 
11or offer for sale beer manufactured by the brew pub licensee to 
12retail licensees. 
13 A person who holds a class 2 brewer license may 
14simultaneously hold a brew pub license if the class 2 brewer 
15(i) does not, under any circumstance, sell or offer for sale 
16beer manufactured by the class 2 brewer to retail licensees; 
17(ii) does not hold more than 3 brew pub licenses in this State; 
18(iii) does not manufacture more than a combined 3,720,000 
19gallons of beer per year, including the beer manufactured at 
20the brew pub; and (iv) is not a member of or affiliated with, 
21directly or indirectly, a manufacturer that produces more than 
223,720,000 gallons of beer per year or any other alcoholic 
23liquor.
24 Notwithstanding any other provision of this Act, a licensed 
25brewer, class 2 brewer, or non-resident dealer who before July 
261, 2015 manufactured less than 3,720,000 gallons of beer per 
 
 
10100SB0690ham003- 777 -LRB101 04451 SMS 61572 a


1year and held a brew pub license on or before July 1, 2015 may 
2(i) continue to qualify for and hold that brew pub license for 
3the licensed premises and (ii) manufacture more than 3,720,000 
4gallons of beer per year and continue to qualify for and hold 
5that brew pub license if that brewer, class 2 brewer, or 
6non-resident dealer does not simultaneously hold a class 1 
7brewer license and is not a member of or affiliated with, 
8directly or indirectly, a manufacturer that produces more than 
93,720,000 gallons of beer per year or that produces any other 
10alcoholic liquor. 
11 (o) A caterer retailer license shall allow the holder
to 
12serve alcoholic liquors as an incidental part of a food service 
13that serves
prepared meals which excludes the serving of snacks 
14as
the primary meal, either on or off-site whether licensed or 
15unlicensed.
16 (p) An auction liquor license shall allow the licensee to 
17sell and offer
for sale at auction wine and spirits for use or 
18consumption, or for resale by
an Illinois liquor licensee in 
19accordance with provisions of this Act. An
auction liquor 
20license will be issued to a person and it will permit the

21auction liquor licensee to hold the auction anywhere in the 
22State. An auction
liquor license must be obtained for each 
23auction at least 14 days in advance of
the auction date.
24 (q) A special use permit license shall allow an Illinois 
25licensed
retailer to transfer a portion of its alcoholic liquor 
26inventory from its
retail licensed premises to the premises 
 
 
10100SB0690ham003- 778 -LRB101 04451 SMS 61572 a


1specified in the license hereby
created, and to sell or offer 
2for sale at retail, only in the premises
specified in the 
3license hereby created, the transferred alcoholic liquor for

4use or consumption, but not for resale in any form. A special 
5use permit
license may be granted for the following time 
6periods: one day or less; 2 or
more days to a maximum of 15 days 
7per location in any 12-month period. An
applicant for the 
8special use permit license must also submit with the

9application proof satisfactory to the State Commission that the 
10applicant will
provide dram shop liability insurance to the 
11maximum limits and have local
authority approval.
12 (r) A winery shipper's license shall allow a person
with a 
13first-class or second-class wine manufacturer's
license, a 
14first-class or second-class wine-maker's license,
or a limited 
15wine manufacturer's license or who is licensed to
make wine 
16under the laws of another state to ship wine
made by that 
17licensee directly to a resident of this
State who is 21 years 
18of age or older for that resident's
personal use and not for 
19resale. Prior to receiving a
winery shipper's license, an 
20applicant for the license must
provide the Commission with a 
21true copy of its current
license in any state in which it is 
22licensed as a manufacturer
of wine. An applicant for a winery 
23shipper's license must
also complete an application form that 
24provides any other
information the Commission deems necessary. 
25The application form shall include all addresses from which the 
26applicant for a winery shipper's license intends to ship wine, 
 
 
10100SB0690ham003- 779 -LRB101 04451 SMS 61572 a


1including the name and address of any third party, except for a 
2common carrier, authorized to ship wine on behalf of the 
3manufacturer. The
application form shall include an 
4acknowledgement consenting
to the jurisdiction of the 
5Commission, the Illinois
Department of Revenue, and the courts 
6of this State concerning
the enforcement of this Act and any 
7related laws, rules, and
regulations, including authorizing 
8the Department of Revenue
and the Commission to conduct audits 
9for the purpose of
ensuring compliance with Public Act 95-634, 
10and an acknowledgement that the wine manufacturer is in 
11compliance with Section 6-2 of this Act. Any third party, 
12except for a common carrier, authorized to ship wine on behalf 
13of a first-class or second-class wine manufacturer's licensee, 
14a first-class or second-class wine-maker's licensee, a limited 
15wine manufacturer's licensee, or a person who is licensed to 
16make wine under the laws of another state shall also be 
17disclosed by the winery shipper's licensee, and a copy of the 
18written appointment of the third-party wine provider, except 
19for a common carrier, to the wine manufacturer shall be filed 
20with the State Commission as a supplement to the winery 
21shipper's license application or any renewal thereof. The 
22winery shipper's license holder shall affirm under penalty of 
23perjury, as part of the winery shipper's license application or 
24renewal, that he or she only ships wine, either directly or 
25indirectly through a third-party provider, from the licensee's 
26own production.
 
 
10100SB0690ham003- 780 -LRB101 04451 SMS 61572 a


1 Except for a common carrier, a third-party provider 
2shipping wine on behalf of a winery shipper's license holder is 
3the agent of the winery shipper's license holder and, as such, 
4a winery shipper's license holder is responsible for the acts 
5and omissions of the third-party provider acting on behalf of 
6the license holder. A third-party provider, except for a common 
7carrier, that engages in shipping wine into Illinois on behalf 
8of a winery shipper's license holder shall consent to the 
9jurisdiction of the State Commission and the State. Any 
10third-party, except for a common carrier, holding such an 
11appointment shall, by February 1 of each calendar year and upon 
12request by the State Commission or the Department of Revenue, 
13file with the State Commission a statement detailing each 
14shipment made to an Illinois resident. The statement shall 
15include the name and address of the third-party provider filing 
16the statement, the time period covered by the statement, and 
17the following information: 
18  (1) the name, address, and license number of the winery 
19 shipper on whose behalf the shipment was made;
20  (2) the quantity of the products delivered; and
21  (3) the date and address of the shipment. 
22If the Department of Revenue or the State Commission requests a 
23statement under this paragraph, the third-party provider must 
24provide that statement no later than 30 days after the request 
25is made. Any books, records, supporting papers, and documents 
26containing information and data relating to a statement under 
 
 
10100SB0690ham003- 781 -LRB101 04451 SMS 61572 a


1this paragraph shall be kept and preserved for a period of 3 
2years, unless their destruction sooner is authorized, in 
3writing, by the Director of Revenue, and shall be open and 
4available to inspection by the Director of Revenue or the State 
5Commission or any duly authorized officer, agent, or employee 
6of the State Commission or the Department of Revenue, at all 
7times during business hours of the day. Any person who violates 
8any provision of this paragraph or any rule of the State 
9Commission for the administration and enforcement of the 
10provisions of this paragraph is guilty of a Class C 
11misdemeanor. In case of a continuing violation, each day's 
12continuance thereof shall be a separate and distinct offense. 
13 The State Commission shall adopt rules as soon as 
14practicable to implement the requirements of Public Act 99-904 
15and shall adopt rules prohibiting any such third-party 
16appointment of a third-party provider, except for a common 
17carrier, that has been deemed by the State Commission to have 
18violated the provisions of this Act with regard to any winery 
19shipper licensee.
20 A winery shipper licensee must pay to the Department
of 
21Revenue the State liquor gallonage tax under Section 8-1 for

22all wine that is sold by the licensee and shipped to a person

23in this State. For the purposes of Section 8-1, a winery

24shipper licensee shall be taxed in the same manner as a

25manufacturer of wine. A licensee who is not otherwise required 
26to register under the Retailers' Occupation Tax Act must

 
 
10100SB0690ham003- 782 -LRB101 04451 SMS 61572 a


1register under the Use Tax Act to collect and remit use tax to

2the Department of Revenue for all gallons of wine that are sold

3by the licensee and shipped to persons in this State. If a

4licensee fails to remit the tax imposed under this Act in

5accordance with the provisions of Article VIII of this Act, the

6winery shipper's license shall be revoked in accordance
with 
7the provisions of Article VII of this Act. If a licensee
fails 
8to properly register and remit tax under the Use Tax Act
or the 
9Retailers' Occupation Tax Act for all wine that is sold
by the 
10winery shipper and shipped to persons in this
State, the winery 
11shipper's license shall be revoked in
accordance with the 
12provisions of Article VII of this Act.
13 A winery shipper licensee must collect, maintain, and

14submit to the Commission on a semi-annual basis the
total 
15number of cases per resident of wine shipped to residents
of 
16this State.
A winery shipper licensed under this subsection (r)

17must comply with the requirements of Section 6-29 of this Act.
18 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of 
19Section 3-12, the State Commission may receive, respond to, and 
20investigate any complaint and impose any of the remedies 
21specified in paragraph (1) of subsection (a) of Section 3-12.
22 As used in this subsection, "third-party provider" means 
23any entity that provides fulfillment house services, including 
24warehousing, packaging, distribution, order processing, or 
25shipment of wine, but not the sale of wine, on behalf of a 
26licensed winery shipper. 
 
 
10100SB0690ham003- 783 -LRB101 04451 SMS 61572 a


1 (s) A craft distiller tasting permit license shall allow an 
2Illinois licensed craft distiller to transfer a portion of its 
3alcoholic liquor inventory from its craft distiller licensed 
4premises to the premises specified in the license hereby 
5created and to conduct a sampling, only in the premises 
6specified in the license hereby created, of the transferred 
7alcoholic liquor in accordance with subsection (c) of Section 
86-31 of this Act. The transferred alcoholic liquor may not be 
9sold or resold in any form. An applicant for the craft 
10distiller tasting permit license must also submit with the 
11application proof satisfactory to the State Commission that the 
12applicant will provide dram shop liability insurance to the 
13maximum limits and have local authority approval.
14 A brewer warehouse permit may be issued to the holder of a 
15class 1 brewer license or a class 2 brewer license. If the 
16holder of the permit is a class 1 brewer licensee, the brewer 
17warehouse permit shall allow the holder to store or warehouse 
18up to 930,000 gallons of tax-determined beer manufactured by 
19the holder of the permit at the premises specified on the 
20permit. If the holder of the permit is a class 2 brewer 
21licensee, the brewer warehouse permit shall allow the holder to 
22store or warehouse up to 3,720,000 gallons of tax-determined 
23beer manufactured by the holder of the permit at the premises 
24specified on the permit. Sales to non-licensees are prohibited 
25at the premises specified in the brewer warehouse permit. 
26(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16; 
 
 
10100SB0690ham003- 784 -LRB101 04451 SMS 61572 a


199-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff. 
21-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816, 
3eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18; 
4revised 10-2-18.)




5 (235 ILCS 5/6-30) (from Ch. 43, par. 144f)


6 Sec. 6-30. Notwithstanding any other provision of this Act, 
7the
Illinois Gaming Board shall have exclusive authority to 
8establish the hours
for sale and consumption of alcoholic 
9liquor on board a riverboat during
riverboat gambling 
10excursions and in a casino conducted in accordance with the 
11Illinois Riverboat
Gambling Act.

12(Source: P.A. 87-826.)



13 Section 35-70. The Illinois Public Aid Code is amended by 
14changing Section 10-17.15 as follows:

15 (305 ILCS 5/10-17.15)
16 Sec. 10-17.15. Certification of information to State 
17gaming licensees.
18 (a) For purposes of this Section, "State gaming licensee" 
19means, as applicable, an organization licensee or advance 
20deposit wagering licensee licensed under the Illinois Horse 
21Racing Act of 1975, an owners licensee licensed under the 
22Illinois Riverboat Gambling Act, or a licensee that operates, 
23under any law of this State, one or more facilities or gaming 
 
 
10100SB0690ham003- 785 -LRB101 04451 SMS 61572 a


1locations at which lawful gambling is authorized and licensed 
2as provided in the Illinois Riverboat Gambling Act.
3 (b) The Department may provide, by rule, for certification 
4to any State gaming licensee of past due child support owed by 
5a responsible relative under a support order entered by a court 
6or administrative body of this or any other State on behalf of 
7a resident or non-resident receiving child support services 
8under this Article in accordance with the requirements of Title 
9IV-D, Part D, of the Social Security Act. The State gaming 
10licensee shall have the ability to withhold from winnings 
11required to be reported to the Internal Revenue Service on Form 
12W-2G, up to the full amount of winnings necessary to pay the 
13winner's past due child support. The rule shall provide for 
14notice to and an opportunity to be heard by each responsible 
15relative affected and any final administrative decision 
16rendered by the Department shall be reviewed only under and in 
17accordance with the Administrative Review Law.
18 (c) For withholding of winnings, the State gaming licensee 
19shall be entitled to an administrative fee not to exceed the 
20lesser of 4% of the total amount of cash winnings paid to the 
21gambling winner or $150.
22 (d) In no event may the total amount withheld from the cash 
23payout, including the administrative fee, exceed the total cash 
24winnings claimed by the obligor. If the cash payout claimed is 
25greater than the amount sufficient to satisfy the obligor's 
26delinquent child support payments, the State gaming licensee 
 
 
10100SB0690ham003- 786 -LRB101 04451 SMS 61572 a


1shall pay the obligor the remaining balance of the payout, less 
2the administrative fee authorized by subsection (c) of this 
3Section, at the time it is claimed.
4 (e) A State gaming licensee who in good faith complies with 
5the requirements of this Section shall not be liable to the 
6gaming winner or any other individual or entity. 

7(Source: P.A. 98-318, eff. 8-12-13.)

8 Section 35-75. The Firearm Concealed Carry Act is amended 
9by changing Section 65 as follows:

10 (430 ILCS 66/65)

11 Sec. 65. Prohibited areas. 
12 (a) A licensee under this Act shall not knowingly carry a 
13firearm on or into:
14  (1) Any building, real property, and parking area under 
15 the control of a public or private elementary or secondary 
16 school.
17  (2) Any building, real property, and parking area under 
18 the control of a pre-school or child care facility, 
19 including any room or portion of a building under the 
20 control of a pre-school or child care facility. Nothing in 
21 this paragraph shall prevent the operator of a child care 
22 facility in a family home from owning or possessing a 
23 firearm in the home or license under this Act, if no child 
24 under child care at the home is present in the home or the 
 
 
10100SB0690ham003- 787 -LRB101 04451 SMS 61572 a


1 firearm in the home is stored in a locked container when a 
2 child under child care at the home is present in the home.
3  (3) Any building, parking area, or portion of a 
4 building under the control of an officer of the executive 
5 or legislative branch of government, provided that nothing 
6 in this paragraph shall prohibit a licensee from carrying a 
7 concealed firearm onto the real property, bikeway, or trail 
8 in a park regulated by the Department of Natural Resources 
9 or any other designated public hunting area or building 
10 where firearm possession is permitted as established by the 
11 Department of Natural Resources under Section 1.8 of the 
12 Wildlife Code.
13  (4) Any building designated for matters before a 
14 circuit court, appellate court, or the Supreme Court, or 
15 any building or portion of a building under the control of 
16 the Supreme Court.
17  (5) Any building or portion of a building under the 
18 control of a unit of local government.
19  (6) Any building, real property, and parking area under 
20 the control of an adult or juvenile detention or 
21 correctional institution, prison, or jail.
22  (7) Any building, real property, and parking area under 
23 the control of a public or private hospital or hospital 
24 affiliate, mental health facility, or nursing home.
25  (8) Any bus, train, or form of transportation paid for 
26 in whole or in part with public funds, and any building, 
 
 
10100SB0690ham003- 788 -LRB101 04451 SMS 61572 a


1 real property, and parking area under the control of a 
2 public transportation facility paid for in whole or in part 
3 with public funds.
4  (9) Any building, real property, and parking area under 
5 the control of an establishment that serves alcohol on its 
6 premises, if more than 50% of the establishment's gross 
7 receipts within the prior 3 months is from the sale of 
8 alcohol. The owner of an establishment who knowingly fails 
9 to prohibit concealed firearms on its premises as provided 
10 in this paragraph or who knowingly makes a false statement 
11 or record to avoid the prohibition on concealed firearms 
12 under this paragraph is subject to the penalty under 
13 subsection (c-5) of Section 10-1 of the Liquor Control Act 
14 of 1934.
15  (10) Any public gathering or special event conducted on 
16 property open to the public that requires the issuance of a 
17 permit from the unit of local government, provided this 
18 prohibition shall not apply to a licensee who must walk 
19 through a public gathering in order to access his or her 
20 residence, place of business, or vehicle.
21  (11) Any building or real property that has been issued 
22 a Special Event Retailer's license as defined in Section 
23 1-3.17.1 of the Liquor Control Act during the time 
24 designated for the sale of alcohol by the Special Event 
25 Retailer's license, or a Special use permit license as 
26 defined in subsection (q) of Section 5-1 of the Liquor 
 
 
10100SB0690ham003- 789 -LRB101 04451 SMS 61572 a


1 Control Act during the time designated for the sale of 
2 alcohol by the Special use permit license.
3  (12) Any public playground.
4  (13) Any public park, athletic area, or athletic 
5 facility under the control of a municipality or park 
6 district, provided nothing in this Section shall prohibit a 
7 licensee from carrying a concealed firearm while on a trail 
8 or bikeway if only a portion of the trail or bikeway 
9 includes a public park.
10  (14) Any real property under the control of the Cook 
11 County Forest Preserve District.
12  (15) Any building, classroom, laboratory, medical 
13 clinic, hospital, artistic venue, athletic venue, 
14 entertainment venue, officially recognized 
15 university-related organization property, whether owned or 
16 leased, and any real property, including parking areas, 
17 sidewalks, and common areas under the control of a public 
18 or private community college, college, or university.
19  (16) Any building, real property, or parking area under 
20 the control of a gaming facility licensed under the 
21 Illinois Riverboat Gambling Act or the Illinois Horse 
22 Racing Act of 1975, including an inter-track wagering 
23 location licensee.
24  (17) Any stadium, arena, or the real property or 
25 parking area under the control of a stadium, arena, or any 
26 collegiate or professional sporting event.
 
 
10100SB0690ham003- 790 -LRB101 04451 SMS 61572 a


1  (18) Any building, real property, or parking area under 
2 the control of a public library.
3  (19) Any building, real property, or parking area under 
4 the control of an airport.
5  (20) Any building, real property, or parking area under 
6 the control of an amusement park.
7  (21) Any building, real property, or parking area under 
8 the control of a zoo or museum.
9  (22) Any street, driveway, parking area, property, 
10 building, or facility, owned, leased, controlled, or used 
11 by a nuclear energy, storage, weapons, or development site 
12 or facility regulated by the federal Nuclear Regulatory 
13 Commission. The licensee shall not under any circumstance 
14 store a firearm or ammunition in his or her vehicle or in a 
15 compartment or container within a vehicle located anywhere 
16 in or on the street, driveway, parking area, property, 
17 building, or facility described in this paragraph.
18  (23) Any area where firearms are prohibited under 
19 federal law.
20 (a-5) Nothing in this Act shall prohibit a public or 
21private community college, college, or university from:
22  (1) prohibiting persons from carrying a firearm within 
23 a vehicle owned, leased, or controlled by the college or 
24 university;
25  (2) developing resolutions, regulations, or policies 
26 regarding student, employee, or visitor misconduct and 
 
 
10100SB0690ham003- 791 -LRB101 04451 SMS 61572 a


1 discipline, including suspension and expulsion;
2  (3) developing resolutions, regulations, or policies 
3 regarding the storage or maintenance of firearms, which 
4 must include designated areas where persons can park 
5 vehicles that carry firearms; and
6  (4) permitting the carrying or use of firearms for the 
7 purpose of instruction and curriculum of officially 
8 recognized programs, including but not limited to military 
9 science and law enforcement training programs, or in any 
10 designated area used for hunting purposes or target 
11 shooting.
12 (a-10) The owner of private real property of any type may 
13prohibit the carrying of concealed firearms on the property 
14under his or her control. The owner must post a sign in 
15accordance with subsection (d) of this Section indicating that 
16firearms are prohibited on the property, unless the property is 
17a private residence.
18 (b) Notwithstanding subsections (a), (a-5), and (a-10) of 
19this Section except under paragraph (22) or (23) of subsection 
20(a), any licensee prohibited from carrying a concealed firearm 
21into the parking area of a prohibited location specified in 
22subsection (a), (a-5), or (a-10) of this Section shall be 
23permitted to carry a concealed firearm on or about his or her 
24person within a vehicle into the parking area and may store a 
25firearm or ammunition concealed in a case within a locked 
26vehicle or locked container out of plain view within the 
 
 
10100SB0690ham003- 792 -LRB101 04451 SMS 61572 a


1vehicle in the parking area. A licensee may carry a concealed 
2firearm in the immediate area surrounding his or her vehicle 
3within a prohibited parking lot area only for the limited 
4purpose of storing or retrieving a firearm within the vehicle's 
5trunk. For purposes of this subsection, "case" includes a glove 
6compartment or console that completely encloses the concealed 
7firearm or ammunition, the trunk of the vehicle, or a firearm 
8carrying box, shipping box, or other container.
9 (c) A licensee shall not be in violation of this Section 
10while he or she is traveling along a public right of way that 
11touches or crosses any of the premises under subsection (a), 
12(a-5), or (a-10) of this Section if the concealed firearm is 
13carried on his or her person in accordance with the provisions 
14of this Act or is being transported in a vehicle by the 
15licensee in accordance with all other applicable provisions of 
16law.
17 (d) Signs stating that the carrying of firearms is 
18prohibited shall be clearly and conspicuously posted at the 
19entrance of a building, premises, or real property specified in 
20this Section as a prohibited area, unless the building or 
21premises is a private residence. Signs shall be of a uniform 
22design as established by the Department and shall be 4 inches 
23by 6 inches in size. The Department shall adopt rules for 
24standardized signs to be used under this subsection.

25(Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)

 
 
10100SB0690ham003- 793 -LRB101 04451 SMS 61572 a


1 Section 35-80.  The Criminal Code of 2012 is amended by 
2changing Sections 28-1, 28-1.1, 28-2, 28-3,
28-5, and 28-7 as 
3follows:





4 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)



5 Sec. 28-1. Gambling. 

6 (a) A person commits gambling when he or she:

7  (1) knowingly plays a game of chance or skill for money 
8 or other thing of
value, unless excepted in subsection (b) 
9 of this Section;

10  (2) knowingly makes a wager upon the result of any 
11 game, contest, or any
political nomination, appointment or 
12 election;

13  (3) knowingly operates, keeps, owns, uses, purchases, 
14 exhibits, rents, sells,
bargains for the sale or lease of, 
15 manufactures or distributes any
gambling device;

16  (4) contracts to have or give himself or herself or 
17 another the option to buy
or sell, or contracts to buy or 
18 sell, at a future time, any grain or
other commodity 
19 whatsoever, or any stock or security of any company,
where 
20 it is at the time of making such contract intended by both 
21 parties
thereto that the contract to buy or sell, or the 
22 option, whenever
exercised, or the contract resulting 
23 therefrom, shall be settled, not by
the receipt or delivery 
24 of such property, but by the payment only of
differences in 
25 prices thereof; however, the issuance, purchase, sale,

 
 
10100SB0690ham003- 794 -LRB101 04451 SMS 61572 a


1 exercise, endorsement or guarantee, by or through a person 
2 registered
with the Secretary of State pursuant to Section 
3 8 of the Illinois
Securities Law of 1953, or by or through 
4 a person exempt from such
registration under said Section 
5 8, of a put, call, or other option to
buy or sell 
6 securities which have been registered with the Secretary of

7 State or which are exempt from such registration under 
8 Section 3 of the
Illinois Securities Law of 1953 is not 
9 gambling within the meaning of
this paragraph (4);

10  (5) knowingly owns or possesses any book, instrument or 
11 apparatus by
means of which bets or wagers have been, or 
12 are, recorded or registered,
or knowingly possesses any 
13 money which he has received in the course of
a bet or 
14 wager;

15  (6) knowingly sells pools upon the result of any game 
16 or contest of skill or
chance, political nomination, 
17 appointment or election;

18  (7) knowingly sets up or promotes any lottery or sells, 
19 offers to sell or
transfers any ticket or share for any 
20 lottery;

21  (8) knowingly sets up or promotes any policy game or 
22 sells, offers to sell or
knowingly possesses or transfers 
23 any policy ticket, slip, record,
document or other similar 
24 device;

25  (9) knowingly drafts, prints or publishes any lottery 
26 ticket or share,
or any policy ticket, slip, record, 
 
 
10100SB0690ham003- 795 -LRB101 04451 SMS 61572 a


1 document or similar device, except for
such activity 
2 related to lotteries, bingo games and raffles authorized by

3 and conducted in accordance with the laws of Illinois or 
4 any other state or
foreign government;

5  (10) knowingly advertises any lottery or policy game, 
6 except for such
activity related to lotteries, bingo games 
7 and raffles authorized by and
conducted in accordance with 
8 the laws of Illinois or any other state;

9  (11) knowingly transmits information as to wagers, 
10 betting odds, or
changes in betting odds by telephone, 
11 telegraph, radio, semaphore or
similar means; or knowingly 
12 installs or maintains equipment for the
transmission or 
13 receipt of such information; except that nothing in this

14 subdivision (11) prohibits transmission or receipt of such 
15 information
for use in news reporting of sporting events or 
16 contests; or

17  (12) knowingly establishes, maintains, or operates an 
18 Internet site that
permits a person to play a game of

19 chance or skill for money or other thing of value by means 
20 of the Internet or
to make a wager upon the
result of any 
21 game, contest, political nomination, appointment, or

22 election by means of the Internet. This item (12) does not 
23 apply to activities referenced in items (6) and (6.1) of 
24 subsection (b) of this Section. 

25 (b) Participants in any of the following activities shall 
26not be
convicted of gambling:

 
 
10100SB0690ham003- 796 -LRB101 04451 SMS 61572 a


1  (1) Agreements to compensate for loss caused by the 
2 happening of
chance including without limitation contracts 
3 of indemnity or guaranty
and life or health or accident 
4 insurance.

5  (2) Offers of prizes, award or compensation to the 
6 actual
contestants in any bona fide contest for the 
7 determination of skill,
speed, strength or endurance or to 
8 the owners of animals or vehicles
entered in such contest.

9  (3) Pari-mutuel betting as authorized by the law of 
10 this State.

11  (4) Manufacture of gambling devices, including the 
12 acquisition of
essential parts therefor and the assembly 
13 thereof, for transportation in
interstate or foreign 
14 commerce to any place outside this State when such

15 transportation is not prohibited by any applicable Federal 
16 law; or the
manufacture, distribution, or possession of 
17 video gaming terminals, as
defined in the Video Gaming Act, 
18 by manufacturers, distributors, and
terminal operators 
19 licensed to do so under the Video Gaming Act.

20  (5) The game commonly known as "bingo", when conducted 
21 in accordance
with the Bingo License and Tax Act.

22  (6) Lotteries when conducted by the State of Illinois 
23 in accordance
with the Illinois Lottery Law. This exemption 
24 includes any activity conducted by the Department of 
25 Revenue to sell lottery tickets pursuant to the provisions 
26 of the Illinois Lottery Law and its rules.

 
 
10100SB0690ham003- 797 -LRB101 04451 SMS 61572 a


1  (6.1) The purchase of lottery tickets through the 
2 Internet for a lottery conducted by the State of Illinois 
3 under the program established in Section 7.12 of the 
4 Illinois Lottery Law.

5  (7) Possession of an antique slot machine that is 
6 neither used nor
intended to be used in the operation or 
7 promotion of any unlawful
gambling activity or enterprise. 
8 For the purpose of this subparagraph
(b)(7), an antique 
9 slot machine is one manufactured 25 years ago or earlier.

10  (8) Raffles and poker runs when conducted in accordance 
11 with the Raffles and Poker Runs Act.

12  (9) Charitable games when conducted in accordance with 
13 the Charitable
Games Act.

14  (10) Pull tabs and jar games when conducted under the 
15 Illinois Pull
Tabs and Jar Games Act.

16  (11) Gambling games conducted on riverboats when

17 authorized by the Illinois Riverboat Gambling Act.

18  (12) Video gaming terminal games at a licensed 
19 establishment, licensed truck stop establishment, licensed 
20 large truck stop establishment,
licensed
fraternal 
21 establishment, or licensed veterans establishment when

22 conducted in accordance with the Video Gaming Act. 
23  (13) Games of skill or chance where money or other 
24 things of value can be won but no payment or purchase is 
25 required to participate. 
26  (14) Savings promotion raffles authorized under 
 
 
10100SB0690ham003- 798 -LRB101 04451 SMS 61572 a


1 Section 5g of the Illinois Banking Act, Section 7008 of the 
2 Savings Bank Act, Section 42.7 of the Illinois Credit Union 
3 Act, Section 5136B of the National Bank Act (12 U.S.C. 
4 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C. 
5 1463). 
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.

 
 
10100SB0690ham003- 799 -LRB101 04451 SMS 61572 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;

 
 
10100SB0690ham003- 800 -LRB101 04451 SMS 61572 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 large truck stop establishment,
licensed
fraternal 
21 establishment, or licensed veterans establishment
when 
22 conducted in accordance with the Video 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 
 
 
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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 5/28-2) (from Ch. 38, par. 28-2)

5 Sec. 28-2. Definitions. 

6 (a) A "gambling device" is any clock, tape machine, slot 
7machine or
other machines or device for the reception of money 
8or other thing of value
on chance or skill or upon the action 
9of which money or other thing of
value is staked, hazarded, 
10bet, won or lost; or any mechanism, furniture,
fixture, 
11equipment or other device designed primarily for use in a 
12gambling
place. A "gambling device" does not include:

13  (1) A coin-in-the-slot operated mechanical device 
14 played for amusement
which rewards the player with the 
15 right to replay such mechanical device,
which device is so 
16 constructed or devised as to make such result of the

17 operation thereof depend in part upon the skill of the 
18 player and which
returns to the player thereof no money, 
19 property or right to receive money
or property.

20  (2) Vending machines by which full and adequate return 
21 is made for the
money invested and in which there is no 
22 element of chance or hazard.

23  (3) A crane game. For the purposes of this paragraph 
24 (3), a "crane
game" is an amusement device involving skill, 
25 if it rewards the player
exclusively with merchandise 
 
 
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1 contained within the amusement device proper
and limited to 
2 toys, novelties and prizes other than currency, each having

3 a wholesale value which is not more than $25.

4  (4) A redemption machine. For the purposes of this 
5 paragraph (4), a
"redemption machine" is a single-player or 
6 multi-player amusement device
involving a game, the object 
7 of which is throwing, rolling, bowling,
shooting, placing, 
8 or propelling a ball or other object that is either 
9 physical or computer generated on a display or with lights 
10 into, upon, or
against a hole or other target that is 
11 either physical or computer generated on a display or with 
12 lights, or stopping, by physical, mechanical, or 
13 electronic means, a moving object that is either physical 
14 or computer generated on a display or with lights into, 
15 upon, or
against a hole or other target that is either 
16 physical or computer generated on a display or with lights, 
17 provided that all of the following
conditions are met:

18   (A) The outcome of the game is predominantly 
19 determined by the
skill of the player.

20   (B) The award of the prize is based solely upon the 
21 player's
achieving the object of the game or otherwise 
22 upon the player's score.

23   (C) Only merchandise prizes are awarded.

24   (D) The wholesale value of prizes awarded in lieu 
25 of tickets
or tokens for single play of the device does 
26 not exceed $25.

 
 
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1   (E) The redemption value of tickets, tokens, and 
2 other representations
of value, which may be 
3 accumulated by players to redeem prizes of greater

4 value, for a single play of the device does not exceed 
5 $25.

6  (5) Video gaming terminals at a licensed 
7 establishment, licensed truck stop establishment, licensed 
8 large truck stop establishment,
licensed
fraternal 
9 establishment, or licensed veterans establishment licensed 
10 in accordance with the Video Gaming Act. 
11 (a-5) "Internet" means an interactive computer service or 
12system or an
information service, system, or access software 
13provider that provides or
enables computer access by multiple 
14users to a computer server, and includes,
but is not limited 
15to, an information service, system, or access software
provider 
16that provides access to a network system commonly known as the

17Internet, or any comparable system or service and also 
18includes, but is not
limited to, a World Wide Web page, 
19newsgroup, message board, mailing list, or
chat area on any 
20interactive computer service or system or other online
service.

21 (a-6) "Access" and "computer" have the meanings ascribed to 
22them in
Section
16D-2 of this Code.

23 (b) A "lottery" is any scheme or procedure whereby one or 
24more prizes
are distributed by chance among persons who have 
25paid or promised
consideration for a chance to win such prizes, 
26whether such scheme or
procedure is called a lottery, raffle, 
 
 
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1gift, sale or some other name, excluding savings promotion 
2raffles authorized under Section 5g of the Illinois Banking 
3Act, Section 7008 of the Savings Bank Act, Section 42.7 of the 
4Illinois Credit Union Act, Section 5136B of the National Bank 
5Act (12 U.S.C. 25a), or Section 4 of the Home Owners' Loan Act 
6(12 U.S.C. 1463).

7 (c) A "policy game" is any scheme or procedure whereby a 
8person promises
or guarantees by any instrument, bill, 
9certificate, writing, token or other
device that any particular 
10number, character, ticket or certificate shall
in the event of 
11any contingency in the nature of a lottery entitle the

12purchaser or holder to receive money, property or evidence of 
13debt.

14(Source: P.A. 98-31, eff. 6-24-13; 99-149, eff. 1-1-16.)





15 (720 ILCS 5/28-3)
 (from Ch. 38, par. 28-3)



16 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is 
17any real
estate, vehicle, boat or any other property whatsoever 
18used for the
purposes of gambling other than gambling conducted 
19in the manner authorized
by the Illinois Riverboat Gambling Act 
20or the Video Gaming Act. Any person who
knowingly permits any 
21premises
or property owned or occupied by him or under his 
22control to be used as a
gambling place commits a Class A 
23misdemeanor. Each subsequent offense is a
Class 4 felony. When 
24any premises is determined by the circuit court to be
a 
25gambling place:

 
 
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1 (a) Such premises is a public nuisance and may be proceeded 
2against as such,
and

3 (b) All licenses, permits or certificates issued by the 
4State of
Illinois or any subdivision or public agency thereof 
5authorizing the
serving of food or liquor on such premises 
6shall be void; and no license,
permit or certificate so 
7cancelled shall be reissued for such premises for
a period of 
860 days thereafter; nor shall any person convicted of keeping a

9gambling place be reissued such license
for one year from his 
10conviction and, after a second conviction of keeping
a gambling 
11place, any such person shall not be reissued such license, and

12 (c) Such premises of any person who knowingly permits 
13thereon a
violation of any Section of this Article shall be 
14held liable for, and may
be sold to pay any unsatisfied 
15judgment that may be recovered and any
unsatisfied fine that 
16may be levied under any Section of this Article.

17(Source: P.A. 96-34, eff. 7-13-09.)




18 (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)



19 Sec. 28-5. Seizure of gambling devices and gambling funds. 

20 (a) Every device designed for gambling which is incapable 
21of lawful use
or every device used unlawfully for gambling 
22shall be considered a
"gambling device", and shall be subject 
23to seizure, confiscation and
destruction by the Department of 
24State Police or by any municipal, or other
local authority, 
25within whose jurisdiction the same may be found. As used
in 
 
 
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1this Section, a "gambling device" includes any slot machine, 
2and
includes any machine or device constructed for the 
3reception of money or
other thing of value and so constructed 
4as to return, or to cause someone
to return, on chance to the 
5player thereof money, property or a right to
receive money or 
6property. With the exception of any device designed for

7gambling which is incapable of lawful use, no gambling device 
8shall be
forfeited or destroyed unless an individual with a 
9property interest in
said device knows of the unlawful use of 
10the device.

11 (b) Every gambling device shall be seized and forfeited to 
12the county
wherein such seizure occurs. Any money or other 
13thing of value integrally
related to acts of gambling shall be 
14seized and forfeited to the county
wherein such seizure occurs.

15 (c) If, within 60 days after any seizure pursuant to 
16subparagraph
(b) of this Section, a person having any property 
17interest in the seized
property is charged with an offense, the 
18court which renders judgment
upon such charge shall, within 30 
19days after such judgment, conduct a
forfeiture hearing to 
20determine whether such property was a gambling device
at the 
21time of seizure. Such hearing shall be commenced by a written

22petition by the State, including material allegations of fact, 
23the name
and address of every person determined by the State to 
24have any property
interest in the seized property, a 
25representation that written notice of
the date, time and place 
26of such hearing has been mailed to every such
person by 
 
 
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1certified mail at least 10 days before such date, and a
request 
2for forfeiture. Every such person may appear as a party and

3present evidence at such hearing. The quantum of proof required 
4shall
be a preponderance of the evidence, and the burden of 
5proof shall be on
the State. If the court determines that the 
6seized property was
a gambling device at the time of seizure, 
7an order of forfeiture and
disposition of the seized property 
8shall be entered: a gambling device
shall be received by the 
9State's Attorney, who shall effect its
destruction, except that 
10valuable parts thereof may be liquidated and
the resultant 
11money shall be deposited in the general fund of the county

12wherein such seizure occurred; money and other things of value 
13shall be
received by the State's Attorney and, upon 
14liquidation, shall be
deposited in the general fund of the 
15county wherein such seizure
occurred. However, in the event 
16that a defendant raises the defense
that the seized slot 
17machine is an antique slot machine described in
subparagraph 
18(b) (7) of Section 28-1 of this Code and therefore he is
exempt 
19from the charge of a gambling activity participant, the seized

20antique slot machine shall not be destroyed or otherwise 
21altered until a
final determination is made by the Court as to 
22whether it is such an
antique slot machine. Upon a final 
23determination by the Court of this
question in favor of the 
24defendant, such slot machine shall be
immediately returned to 
25the defendant. Such order of forfeiture and
disposition shall, 
26for the purposes of appeal, be a final order and
judgment in a 
 
 
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1civil proceeding.

2 (d) If a seizure pursuant to subparagraph (b) of this 
3Section is not
followed by a charge pursuant to subparagraph 
4(c) of this Section, or if
the prosecution of such charge is 
5permanently terminated or indefinitely
discontinued without 
6any judgment of conviction or acquittal (1) the
State's 
7Attorney shall commence an in rem proceeding for the forfeiture

8and destruction of a gambling device, or for the forfeiture and 
9deposit
in the general fund of the county of any seized money 
10or other things of
value, or both, in the circuit court and (2) 
11any person having any
property interest in such seized gambling 
12device, money or other thing
of value may commence separate 
13civil proceedings in the manner provided
by law.

14 (e) Any gambling device displayed for sale to a riverboat 
15gambling
operation, casino gambling operation, or organization 
16gaming facility or used to train occupational licensees of a 
17riverboat gambling
operation, casino gambling operation, or 
18organization gaming facility as authorized under the Illinois 
19Riverboat Gambling Act is exempt from
seizure under this 
20Section.

21 (f) Any gambling equipment, devices, and supplies provided 
22by a licensed
supplier in accordance with the Illinois 
23Riverboat Gambling Act which are removed
from a the riverboat, 
24casino, or organization gaming facility for repair are exempt 
25from seizure under this Section.

26 (g) The following video gaming terminals are exempt from 
 
 
10100SB0690ham003- 809 -LRB101 04451 SMS 61572 a


1seizure under this Section:
2  (1) Video gaming terminals for sale to a licensed 
3 distributor or operator under the Video Gaming Act.
4  (2) Video gaming terminals used to train licensed 
5 technicians or licensed terminal handlers.
6  (3) Video gaming terminals that are removed from a 
7 licensed establishment, licensed truck stop establishment, 
8 licensed large truck stop establishment,
licensed

9 fraternal establishment, or licensed veterans 
10 establishment for repair. 
11 (h) Property seized or forfeited under this Section is 
12subject to reporting under the Seizure and Forfeiture Reporting 
13Act. 
14(Source: P.A. 100-512, eff. 7-1-18.)






15 (720 ILCS 5/28-7)
 (from Ch. 38, par. 28-7)



16 Sec. 28-7. Gambling contracts void. 

17 (a) All promises, notes, bills, bonds, covenants, 
18contracts, agreements,
judgments, mortgages, or other 
19securities or conveyances made, given,
granted, drawn, or 
20entered into, or executed by any person whatsoever,
where the 
21whole or any part of the consideration thereof is for any
money 
22or thing of value, won or obtained in violation of any Section 
23of
this Article are null and void.

24 (b) Any obligation void under this Section may be set aside 
25and vacated
by any court of competent jurisdiction, upon a 
 
 
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1complaint filed for that
purpose, by the person so granting, 
2giving, entering into, or executing the
same, or by his 
3executors or administrators, or by any creditor, heir,
legatee, 
4purchaser or other person interested therein; or if a judgment,

5the same may be set aside on motion of any person stated above, 
6on due
notice thereof given.

7 (c) No assignment of any obligation void under this Section 
8may in any
manner affect the defense of the person giving, 
9granting, drawing, entering
into or executing such obligation, 
10or the remedies of any person interested
therein.

11 (d) This Section shall not prevent a licensed owner of a 
12riverboat
gambling operation, a casino gambling operation, or 
13an organization gaming licensee under the Illinois Gambling
Act 
14and the Illinois Horse Racing Act of 1975 from instituting a 
15cause of
action to collect any amount due and owing under an 
16extension of credit to a
riverboat gambling patron as 
17authorized under Section 11.1 of the Illinois
Riverboat 
18Gambling Act.

19(Source: P.A. 87-826.)



20 Section 35-85. The Payday Loan Reform Act is amended by 
21changing Section 3-5 as follows:

22 (815 ILCS 122/3-5)

23 Sec. 3-5. Licensure. 
24 (a) A license to make a payday loan shall state the 
 
 
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1address,
including city and state, at which
the business is to 
2be conducted and shall state fully the name of the licensee.

3The license shall be conspicuously posted in the place of 
4business of the
licensee and shall not be transferable or 
5assignable.

6 (b) An application for a license shall be in writing and in 
7a form
prescribed by the Secretary. The Secretary may not issue 
8a payday loan
license unless and until the following findings 
9are made:

10  (1) that the financial responsibility, experience, 
11 character, and general
fitness of the applicant are such as 
12 to command the confidence of the public
and to warrant the 
13 belief that the business will be operated lawfully and

14 fairly and within the provisions and purposes of this Act; 
15 and

16  (2) that the applicant has submitted such other 
17 information as the
Secretary may deem necessary.

18 (c) A license shall be issued for no longer than one year, 
19and no renewal
of a license may be provided if a licensee has 
20substantially violated this
Act and has not cured the violation 
21to the satisfaction of the Department.

22 (d) A licensee shall appoint, in writing, the Secretary as 
23attorney-in-fact
upon whom all lawful process against the 
24licensee may be served with the
same legal force and validity 
25as if served on the licensee. A copy of the
written 
26appointment, duly certified, shall be filed in the office of 
 
 
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1the
Secretary, and a copy thereof certified by the Secretary 
2shall be sufficient
evidence to subject a licensee to 
3jurisdiction in a court of law. This appointment shall remain 
4in effect while any liability remains
outstanding in this State 
5against the licensee. When summons is served upon
the Secretary 
6as attorney-in-fact for a licensee, the Secretary shall 
7immediately
notify the licensee by registered mail, enclosing 
8the summons and specifying
the hour and day of service.

9 (e) A licensee must pay an annual fee of $1,000. In 
10addition to the
license fee, the reasonable expense of any 
11examination or hearing
by the Secretary under any provisions of 
12this Act shall be borne by
the licensee. If a licensee fails to 
13renew its license by December 1,
its license
shall 
14automatically expire; however, the Secretary, in his or her 
15discretion,
may reinstate an expired license upon:

16  (1) payment of the annual fee within 30 days of the 
17 date of
expiration; and

18  (2) proof of good cause for failure to renew.

19 (f) Not more than one place of business shall be maintained 
20under the
same license, but the Secretary may issue more than 
21one license to the same
licensee upon compliance with all the 
22provisions of this Act governing
issuance of a single license. 
23The location, except those locations already in
existence as of 
24June 1, 2005, may not be within one mile of a
horse race track 
25subject to the Illinois Horse Racing Act of 1975,
within one 
26mile of a facility at which gambling is conducted under the 
 
 
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1Illinois
Riverboat Gambling Act, within one mile of the 
2location at which a
riverboat subject to the Illinois Riverboat 
3Gambling Act docks, or within one mile of
any State of Illinois 
4or United States military base or naval installation.

5 (g) No licensee shall conduct the business of making loans 
6under this
Act within any office, suite, room, or place of 
7business in which (1) any loans are offered or made under the 
8Consumer Installment Loan Act other than title secured loans as 
9defined in subsection (a) of Section 15 of the Consumer 
10Installment Loan Act and governed by Title 38, Section 110.330 
11of the Illinois Administrative Code or (2) any other
business 
12is solicited or engaged in unless the other business is 
13licensed by the Department or, in the opinion of the Secretary, 
14the
other business would not be contrary to the best interests 
15of consumers and
is authorized by the Secretary in writing.

16 (g-5) Notwithstanding subsection (g) of this Section, a 
17licensee may obtain a license under the Consumer Installment 
18Loan Act (CILA) for the exclusive purpose and use of making 
19title secured loans, as defined in subsection (a) of Section 15 
20of CILA and governed by Title 38, Section 110.300 of the 
21Illinois Administrative Code. A licensee may continue to 
22service Consumer Installment Loan Act loans that were 
23outstanding as of the effective date of this amendatory Act of 
24the 96th General Assembly. 
25 (h) The Secretary shall maintain a list of licensees that 
26shall be
available to interested consumers and lenders and the 
 
 
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1public. The Secretary
shall maintain a toll-free number whereby 
2consumers may obtain
information about licensees. The 
3Secretary shall also establish a complaint
process under which 
4an aggrieved consumer
may file a complaint against a licensee 
5or non-licensee who violates any
provision of this Act.

6(Source: P.A. 100-958, eff. 8-19-18.)

7 Section 35-90. The Travel Promotion Consumer Protection 
8Act is amended by changing Section 2 as follows:




9 (815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)



10 Sec. 2. Definitions. 

11 (a) "Travel promoter" means a person, including a tour 
12operator, who sells,
provides, furnishes, contracts for, 
13arranges or advertises that he or she will
arrange wholesale or 
14retail transportation by air, land, sea or navigable
stream, 
15either separately or in conjunction with other services. 
16"Travel
promoter" does not include (1) an air carrier; (2) a 
17sea carrier; (3) an
officially appointed agent of an air 
18carrier who is a member in good standing
of the Airline 
19Reporting Corporation; (4) a travel promoter who has in
force 
20$1,000,000 or more of liability insurance coverage for 
21professional
errors and omissions and a surety bond or 
22equivalent surety in the amount of
$100,000 or more for the 
23benefit of consumers in the event of a bankruptcy on
the part 
24of the travel promoter; or (5) a riverboat subject to 
 
 
10100SB0690ham003- 815 -LRB101 04451 SMS 61572 a


1regulation under
the Illinois Riverboat Gambling Act.

2 (b) "Advertise" means to make any representation in the 
3solicitation of
passengers and includes communication with 
4other members of the same
partnership, corporation, joint 
5venture, association, organization, group or
other entity.

6 (c) "Passenger" means a person on whose behalf money or 
7other
consideration has been given or is to be given to 
8another, including
another member of the same partnership, 
9corporation, joint venture,
association, organization, group 
10or other entity, for travel.

11 (d) "Ticket or voucher" means a writing or combination of 
12writings which
is itself good and sufficient to obtain

13transportation and other services for which the passenger has 
14contracted.

15(Source: P.A. 91-357, eff. 7-29-99.)


16 (30 ILCS 105/5.490 rep.)
17 Section 35-95. The State Finance Act is amended by 
18repealing Section 5.490.

19 (230 ILCS 5/2.1 rep.)
20 (230 ILCS 5/54 rep.)
21 Section 35-100. The Illinois Horse Racing Act of 1975 is 
22amended by repealing Sections 2.1 and 54.

23
Article 99.  Severability; Effective Date


 
 
10100SB0690ham003- 816 -LRB101 04451 SMS 61572 a


1 Section 99-95. No acceleration or delay. Where this Act 
2makes changes in a statute that is represented in this Act by 
3text that is not yet or no longer in effect (for example, a 
4Section represented by multiple versions), the use of that text 
5does not accelerate or delay the taking effect of (i) the 
6changes made by this Act or (ii) provisions derived from any 
7other Public Act.

8 Section 99-97. Severability. The provisions of this Act are 
9severable under Section 1.31 of the Statute on Statutes.

10 Section 99-99. Effective date.  This Act takes effect upon 
11becoming law, except that the changes made to Section 2 of the 
12Use Tax Act take effect on January 1, 2020.".