Sen. Terry Link

Filed: 3/6/2013

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1
AMENDMENT TO SENATE BILL 1739
2 AMENDMENT NO. ______. Amend Senate Bill 1739 by replacing
3everything after the enacting clause with the following:
4
"ARTICLE 1.
5 Section 1-1. Short title. This Article may be cited as the
6Chicago Casino Development Authority Act. References in this
7Article to "this Act" mean this Article.
8 Section 1-5. Definitions. As used in this Act:
9 "Authority" means the Chicago Casino Development Authority
10created by this Act.
11 "Casino" means one temporary land-based or water-based
12facility and one permanent land-based or water-based facility
13and airport gaming locations pursuant to Section 1-67 of this
14Act at which lawful gambling is authorized and licensed as
15provided in the Illinois Gambling Act.

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1 "Casino Board" means the board appointed pursuant to this
2Act to govern and control the Authority.
3 "Casino management contract" means a legally binding
4agreement between the Authority and a casino operator licensee
5to operate or manage a casino.
6 "Casino operator licensee" means any person or entity
7selected by the Authority and approved and licensed by the
8Gaming Board to manage and operate a casino within the City of
9Chicago pursuant to a casino management contract.
10 "City" means the City of Chicago.
11 "Executive director" means the person appointed by the
12Casino Board to oversee the daily operations of the Authority.
13 "Gaming Board" means the Illinois Gaming Board created by
14the Illinois Gambling Act.
15 "Mayor" means the Mayor of the City.
16 Section 1-12. Creation of the Authority. There is hereby
17created a political subdivision, unit of local government with
18only the powers authorized by law, body politic, and municipal
19corporation, by the name and style of the Chicago Casino
20Development Authority.
21 Section 1-13. Duties of the Authority. It shall be the duty
22of the Authority, as an owners licensee under the Illinois
23Gambling Act, to promote and maintain a casino in the City. The
24Authority shall own, acquire, construct, lease, equip, and

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1maintain grounds, buildings, and facilities for that purpose.
2However, the Authority shall contract with a casino operator
3licensee to manage and operate the casino and in no event shall
4the Authority or City manage or operate the casino. The
5Authority may contract pursuant to the procedures set forth in
6Section 1-115 with other third parties in order to fulfill its
7purpose. The Authority is responsible for the payment of any
8fees required of a casino operator under subsection (a) of
9Section 7.8 of the Illinois Gambling Act if the casino operator
10licensee is late in paying any such fees. The Authority is
11granted all rights and powers necessary to perform such duties.
12Subject to the provisions of this Act, the Authority and casino
13operator licensee are subject to the Illinois Gambling Act and
14all of the rules of the Gaming Board, which shall be applied to
15the Authority and the casino operator licensee in a manner
16consistent with that of other owners licensees under the
17Illinois Gambling Act.
18 Section 1-15. Casino Board.
19 (a) The governing and administrative powers of the
20Authority shall be vested in a body known as the Chicago Casino
21Development Board. The Casino Board shall consist of 5 members
22appointed by the Mayor. One of these members shall be
23designated by the Mayor to serve as chairperson. All of the
24members appointed by the Mayor shall be residents of the City.
25 Each Casino Board appointee shall be subject to a

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1preliminary background investigation completed by the Gaming
2Board within 30 days after the appointee's submission of his or
3her application to the Gaming Board. If the Gaming Board
4determines that there is a substantial likelihood that it will
5not find the appointee to be suitable to serve on the Casino
6Board (applying similar standards for suitability to the
7appointee as the Gaming Board would apply to a member of a
8board of directors of a corporate owners licensee under the
9Illinois Gambling Act), then the Gaming Board shall provide a
10written notice of such determination to the appointee and the
11Corporation Counsel of the City. If no such notice is delivered
12with respect to a particular appointee, then commencing on the
1331st day following the date of the appointee's submission of
14his or her application to the Gaming Board, the appointee shall
15be deemed an acting member of the Casino Board and shall
16participate as a Casino Board member.
17 Each appointee shall be subject to a full background
18investigation and final approval by the Gaming Board prior to
19the opening of the casino. The Gaming Board shall complete its
20full background investigation of the Casino Board appointee
21within 3 months after the date of the appointee's submission of
22his or her application to the Gaming Board. If the Gaming Board
23does not complete its background investigation within the
243-month period, then the Gaming Board shall give a written
25explanation to the appointee, as well as the Mayor, the
26Governor, the President of the Senate, and the Speaker of the

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1House of Representatives, as to why it has not reached a final
2determination and set forth a reasonable time when such
3determination shall be made.
4 (b) Casino Board members shall receive $300 for each day
5the Authority meets and shall be entitled to reimbursement of
6reasonable expenses incurred in the performance of their
7official duties. A Casino Board member who serves in the office
8of secretary-treasurer may also receive compensation for
9services provided as that officer.
10 Section 1-20. Terms of appointments; resignation and
11removal.
12 (a) The Mayor shall appoint 2 members of the Casino Board
13for an initial term expiring July 1 of the year following final
14approval by the Gaming Board, 2 members for an initial term
15expiring July 1 three years following final approval by the
16Gaming Board, and one member for an initial term expiring July
171 five years following final approval by the Gaming Board.
18 (b) All successors shall be appointed by the Mayor to hold
19office for a term of 5 years from the first day of July of the
20year in which they are appointed, except in the case of an
21appointment to fill a vacancy. Each member, including the
22chairperson, shall hold office until the expiration of his or
23her term and until his or her successor is appointed and
24qualified. Nothing shall preclude a member from serving
25consecutive terms. Any member may resign from office, to take

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1effect when a successor has been appointed and qualified. A
2vacancy in office shall occur in the case of a member's death
3or indictment, conviction, or plea of guilty to a felony. A
4vacancy shall be filled for the unexpired term by the Mayor
5subject to the approval of the Gaming Board as provided in this
6Section.
7 (c) Members of the Casino Board shall serve at the pleasure
8of the Mayor. The Mayor or the Gaming Board may remove any
9member of the Casino Board upon a finding of incompetence,
10neglect of duty, or misfeasance or malfeasance in office or for
11a violation of this Act. The Gaming Board may remove any member
12of the Casino Board for any violation of the Illinois Gambling
13Act or the rules and regulations of the Gaming Board.
14 (d) No member of the Casino Board shall engage in any
15political activity. For the purpose of this Section, "political
16activity" means any activity in support of or in connection
17with any campaign for federal, State, or local elective office
18or any political organization, but does not include activities
19(i) relating to the support or opposition of any executive,
20legislative, or administrative action, as those terms are
21defined in Section 2 of the Lobbyist Registration Act, (ii)
22relating to collective bargaining, or (iii) that are otherwise
23in furtherance of the person's official duties or governmental
24and public service functions.
25 Section 1-25. Organization of Casino Board; meetings.

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1After appointment by the Mayor, the Casino Board shall organize
2for the transaction of business, provided that the Casino Board
3shall not take any formal action until after the Gaming Board
4has completed its preliminary background investigation of at
5least a quorum of the Casino Board as provided in subsection
6(a) of Section 1-15. The Casino Board shall prescribe the time
7and place for meetings, the manner in which special meetings
8may be called, and the notice that must be given to members.
9All actions and meetings of the Casino Board shall be subject
10to the provisions of the Open Meetings Act. Three members of
11the Casino Board shall constitute a quorum. All substantive
12action of the Casino Board shall be by resolution with an
13affirmative vote of a majority of the members.
14 Section 1-30. Executive director; officers.
15 (a) The Casino Board shall appoint an executive director,
16who shall be the chief executive officer of the Authority.
17 The executive director shall be subject to a preliminary
18background investigation to be completed by the Gaming Board
19within 30 days after the executive director's submission of his
20or her application to the Gaming Board. If the Gaming Board
21determines that there is a substantial likelihood that it will
22not find the executive director to be suitable to serve in that
23position (applying similar standards for suitability as the
24Gaming Board would apply to a member of a board of directors of
25a corporate owners licensee under the Illinois Gambling Act),

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1then the Gaming Board shall provide a written notice of such
2determination to the appointee and the Corporation Counsel of
3the City. If no such notice is delivered, then commencing on
4the 31st day following the date of the executive director's
5submission of his or her application to the Gaming Board, the
6executive director shall commence all duties as the acting
7executive director of the Authority.
8 The executive director shall be subject to a full
9background investigation and final approval by the Gaming Board
10prior to the opening of the casino. The Gaming Board shall
11complete its full background investigation of the executive
12director within 3 months after the date of the executive
13director's submission of his or her application to the Gaming
14Board. If the Gaming Board does not complete its background
15investigation within the 3-month period, then the Gaming Board
16shall give a written explanation to the appointee, as well as
17the Mayor, the Governor, the President of the Senate, and the
18Speaker of the House of Representatives, as to why it has not
19reached a final determination and set forth a reasonable time
20when such determination shall be made.
21 (b) The Casino Board shall fix the compensation of the
22executive director. Subject to the general control of the
23Casino Board, the executive director shall be responsible for
24the management of the business, properties, and employees of
25the Authority. The executive director shall direct the
26enforcement of all resolutions, rules, and regulations of the

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1Casino Board, and shall perform such other duties as may be
2prescribed from time to time by the Casino Board. All employees
3and independent contractors, consultants, engineers,
4architects, accountants, attorneys, financial experts,
5construction experts and personnel, superintendents, managers,
6and other personnel appointed or employed pursuant to this Act
7shall report to the executive director. In addition to any
8other duties set forth in this Act, the executive director
9shall do or shall delegate to an employee or agent of the
10Authority to do all of the following:
11 (1) Direct and supervise the administrative affairs
12 and activities of the Authority in accordance with its
13 rules, regulations, and policies.
14 (2) Attend meetings of the Casino Board.
15 (3) Keep minutes of all proceedings of the Casino
16 Board.
17 (4) Approve all accounts for salaries, per diem
18 payments, and allowable expenses of the Casino Board and
19 its employees and consultants.
20 (5) Report and make recommendations to the Casino Board
21 concerning the terms and conditions of any casino
22 management contract.
23 (6) Perform any other duty that the Casino Board
24 requires for carrying out the provisions of this Act.
25 (7) Devote his or her full time to the duties of the
26 office and not hold any other office or employment.

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

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1 Board, and fix their compensation; however, employees of
2 the Authority shall be hired pursuant to and in accordance
3 with the rules and policies the Authority may adopt.
4 (8) Pursuant to Section 1-115 of this Act, own,
5 acquire, construct, equip, lease, operate, manage, and
6 maintain grounds, buildings, and facilities to carry out
7 its corporate purposes and duties.
8 (9) Pursuant to Section 1-115, and subject to the
9 oversight, review, and approval of the Gaming Board, enter
10 into, revoke, and modify contracts in accordance with the
11 rules of the Gaming Board as consistently applied to all
12 owners licensees under the Illinois Gambling Act, provided
13 that the Authority may enter into contracts for the design,
14 construction, and outfitting of a temporary casino prior to
15 the Gaming Board's final approval of the Authority's
16 executive director and the members of the Casino Board and
17 prior to the Gaming Board's issuance of the Authority's
18 owners license. In no event, however, shall the Authority
19 open a casino until after the Gaming Board has finally
20 approved the Authority's executive director and the
21 members of the Casino Board and the Gaming Board has issued
22 the Authority's owners license and the casino operator's
23 casino operator license.
24 (10) Enter into a casino management contract subject to
25 the provisions of Section 1-45 of this Act.
26 (11) Develop, or cause to be developed by a third

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1 party, a master plan for the design, planning, and
2 development of a casino.
3 (12) Negotiate and enter into intergovernmental
4 agreements with the State and its agencies, the City, and
5 other units of local government, in furtherance of the
6 powers and duties of the Casino Board.
7 (13) Receive and disburse funds for its own corporate
8 purposes or as otherwise specified in this Act.
9 (14) Borrow money from any source, public or private,
10 for any corporate purpose, including, without limitation,
11 working capital for its operations, reserve funds, or
12 payment of interest, and to mortgage, pledge, or otherwise
13 encumber the property or funds of the Authority and to
14 contract with or engage the services of any person in
15 connection with any financing, including financial
16 institutions, issuers of letters of credit, or insurers and
17 enter into reimbursement agreements with this person or
18 entity which may be secured as if money were borrowed from
19 the person or entity.
20 (15) Issue bonds as provided for under this Act.
21 (16) Receive and accept from any source, private or
22 public, contributions, gifts, or grants of money or
23 property to the Authority.
24 (17) Provide for the insurance of any property,
25 operations, officers, members, agents, or employees of the
26 Authority against any risk or hazard, to self-insure or

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1 participate in joint self-insurance pools or entities to
2 insure against such risk or hazard, and to provide for the
3 indemnification of its officers, members, employees,
4 contractors, or agents against any and all risks.
5 (18) Exercise all the corporate powers granted
6 Illinois corporations under the Business Corporation Act
7 of 1983, except to the extent that powers are inconsistent
8 with those of a body politic and municipal corporation.
9 (19) Do all things necessary or convenient to carry out
10 the powers granted by this Act.
11 (b) The Casino Board shall comply with all applicable legal
12requirements imposed on other owners licensees to conduct all
13background investigations required under the Illinois Gambling
14Act and the rules of the Gaming Board. This requirement shall
15also extend to senior legal, financial, and administrative
16staff of the Authority.
17 Section 1-32. Ethical conduct.
18 (a) Casino Board members and employees of the Authority
19must carry out their duties and responsibilities in such a
20manner as to promote and preserve public trust and confidence
21in the integrity and conduct of gaming.
22 (b) Except as may be required in the conduct of official
23duties, Casino Board members and employees of the Authority
24shall not engage in gambling on any riverboat, in any casino,
25or in an electronic gaming facility licensed by the Illinois

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1Gaming Board or engage in legalized gambling in any
2establishment identified by Gaming Board action that, in the
3judgment of the Gaming Board, could represent a potential for a
4conflict of interest.
5 (c) A Casino Board member or employee of the Authority
6shall not use or attempt to use his or her official position to
7secure or attempt to secure any privilege, advantage, favor, or
8influence for himself or herself or others.
9 (d) Casino Board members and employees of the Authority
10shall not hold or pursue employment, office, position,
11business, or occupation that may conflict with his or her
12official duties. Employees may engage in other gainful
13employment so long as that employment does not interfere or
14conflict with their duties. Such employment must be disclosed
15to the executive director and approved by the Casino Board.
16 (e) Casino Board members, employees of the Authority, and
17elected officials and employees of the City may not engage in
18employment, communications, or any activity identified by the
19Casino Board or Gaming Board that, in the judgment of either
20entity, could represent the potential for or the appearance of
21a conflict of interest.
22 (f) Casino Board members, employees of the Authority, and
23elected officials and employees of the City may not have a
24financial interest, directly or indirectly, in his or her own
25name or in the name of any other person, partnership,
26association, trust, corporation, or other entity in any

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1contract or subcontract for the performance of any work for the
2Authority. This prohibition shall extend to the holding or
3acquisition of an interest in any entity identified by the
4Casino Board or the Gaming Board that, in the judgment of
5either entity, could represent the potential for or the
6appearance of a financial interest. The holding or acquisition
7of an interest in such entities through an indirect means, such
8as through a mutual fund, shall not be prohibited, except that
9the Gaming Board may identify specific investments or funds
10that, in its judgment, are so influenced by gaming holdings as
11to represent the potential for or the appearance of a conflict
12of interest.
13 (g) Casino Board members, employees of the Authority, and
14elected officials and employees of the City may not accept any
15gift, gratuity, service, compensation, travel, lodging, or
16thing of value, with the exception of unsolicited items of an
17incidental nature, from any person, corporation, or entity
18doing business with the Authority.
19 (h) No Casino Board member, employee of the Authority, or
20elected official or employee of the City may, during employment
21or within a period of 2 years immediately after termination of
22employment, knowingly accept employment or receive
23compensation or fees for services from a person or entity, or
24its parent or affiliate, that has engaged in business with the
25Authority that resulted in contracts with an aggregate value of
26at least $25,000 or if that Casino Board member or employee has

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

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1 (k) A spouse, child, or parent of a Casino Board member,
2employee of the Authority, or elected official or employee of
3the City may not, while the person is a Board member or
4employee of the spouse or within a period of 2 years
5immediately after termination of employment, knowingly accept
6employment or receive compensation or fees for services from a
7person or entity, or its parent or affiliate, that has engaged
8in business with the Authority that resulted in contracts with
9an aggregate value of at least $25,000 or if that Casino Board
10member, employee, or elected official or employee of the City
11has made a decision that directly applied to the person or
12entity, or its parent or affiliate.
13 (l) No Casino Board member, employee of the Authority, or
14elected official or employee of the City may attempt, in any
15way, to influence any person or corporation doing business with
16the Authority or any officer, agent, or employee thereof to
17hire or contract with any person or corporation for any
18compensated work.
19 (m) No Casino Board member, employee of the Authority, or
20elected official or employee of the City shall use or attempt
21to use his or her official position to secure, or attempt to
22secure, any privilege, advantage, favor, or influence for
23himself or herself or others. No Casino Board member, employee
24of the Authority, or elected official or employee of the City
25shall, within one year immediately preceding appointment by the
26Mayor or employment, have been employed or received

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1compensation or fees for services from a person or entity, or
2its parent or affiliate, that has engaged in business with the
3Casino Board, a licensee under this Act, or a licensee under
4the Illinois Gambling Act.
5 (n) Any communication between an elected official of the
6City and any applicant for or party to a casino management
7contract with the Authority, or an officer, director, or
8employee thereof, concerning any matter relating in any way to
9gaming or the Authority shall be disclosed to the Casino Board
10and the Gaming Board. Such disclosure shall be in writing by
11the official within 30 days after the communication and shall
12be filed with the Casino Board. Disclosure must consist of the
13date of the communication, the identity and job title of the
14person with whom the communication was made, a brief summary of
15the communication, the action requested or recommended, all
16responses made, the identity and job title of the person making
17the response, and any other pertinent information.
18 Public disclosure of the written summary provided to the
19Casino Board and the Gaming Board shall be subject to the
20exemptions provided under Section 7 of the Freedom of
21Information Act.
22 This subsection (n) shall not apply to communications
23regarding traffic, law enforcement, security, environmental
24issues, City services, transportation, or other routine
25matters concerning the ordinary operations of the casino.
26 (o) For purposes of this Section:

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1 "Ordinary operations" means operations relating to the
2casino facility other than the conduct of gambling activities.
3 "Routine matters" includes the application for, issuance,
4renewal, and other processes associated with City permits and
5licenses.
6 "Employee of the City" means only those employees of the
7City who provide services to the Authority or otherwise
8influence the decisions of the Authority or the Casino Board.
9 (p) Any Board member or employee of the Authority who
10violates any provision of this Section is guilty of a Class 4
11felony.
12 Section 1-45. Casino management contracts.
13 (a) In accordance with all applicable procurement laws and
14rules, the Casino Board shall develop and administer a
15competitive sealed bidding process for the selection of a
16potential casino operator licensee to develop or operate a
17casino within the City. The Casino Board shall issue one or
18more requests for proposals. The Casino Board may establish
19minimum financial and investment requirements to determine the
20eligibility of persons to respond to the Casino Board's
21requests for proposal, and may establish and consider such
22other criteria as it deems appropriate. The Casino Board may
23impose a reasonable fee upon persons who respond to requests
24for proposal, in order to reimburse the Casino Board for its
25costs in preparing and issuing the requests and reviewing the

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1proposals. At least 15 days prior to the commencement of the
2competitive bidding process, the Gaming Board shall be given an
3opportunity to review the competitive bidding process
4established by the Casino Board. During the competitive bidding
5process, the Casino Board shall keep the Gaming Board apprised
6of the process and the responses received in connection with
7the Casino Board's request for proposals.
8 (b) Within 5 business days after the time limit for
9submitting bids and proposals has passed, the Casino Board
10shall make all bids and proposals public, provided, however,
11the Casino Board shall not be required to disclose any
12information which would be exempt from disclosure under Section
137 of the Freedom of Information Act. Thereafter, the Casino
14Board shall evaluate the responses to its requests for proposal
15and the ability of all persons or entities responding to its
16requests for proposal to meet the requirements of this Act and
17any relevant provisions of the Illinois Gambling Act and to
18undertake and perform the obligations set forth in its requests
19for proposal.
20 (c) After reviewing proposals, the Casino Board shall enter
21into a casino management contract authorizing the operation of
22a casino. The casino operator shall be subject to a background
23investigation and approval by the Gaming Board. The Gaming
24Board shall complete its background investigation and approval
25of the casino operator within 6 months after the date that the
26proposed casino operator submits its application to the Gaming

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1Board. If the Gaming Board does not complete its background
2investigation and approval within the 6-month period, then the
3Gaming Board shall give a written explanation to the proposed
4casino operator and the chief legal officer of the Authority as
5to why it has not reached a final determination. The Gaming
6Board shall then complete its investigation within 3 months
7after giving such written explanation. Validity of the casino
8management contract is contingent upon the issuance of a casino
9operator license to the successful bidder. If the Gaming Board
10grants a casino operator license, the Casino Board shall
11transmit a copy of the executed casino management contract to
12the Gaming Board.
13 (d) After (1) the Authority has been issued a casino
14license, (2) the Gaming Board has issued a casino operator
15license, and (3) the Gaming Board has approved the members of
16the Casino Board, the Authority may conduct gaming operations
17at a temporary facility for no longer than 24 months after
18gaming operations begin. The Gaming Board may, after holding a
19public hearing, grant an extension so long as a permanent
20facility is not operational and the Authority is working in
21good faith to complete the permanent facility. The Gaming Board
22may grant additional extensions following further public
23hearings. Each extension may be for a period of no longer than
246 months.
25 (e) Fifty percent of any initial consideration received by
26the Authority that was paid as an inducement pursuant to a bid

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1for a casino management contract or an executed casino
2management contract must be transmitted to the State and
3deposited into the Gaming Facilities Fee Revenue Fund. The
4initial consideration shall not include (1) any amounts paid to
5the Authority as reimbursement for its costs in preparing or
6issuing the requests for proposals and reviewing the proposals
7or (2) any amounts loaned to the Authority or paid by an entity
8on behalf of the Authority for the design, construction,
9outfitting, or equipping of the casino, pre-opening expenses,
10bank roll or similar expenses required to open and operate the
11casino, or any license or per position fees imposed pursuant to
12the Illinois Gambling Act or any other financial obligation of
13the Authority.
14 Section 1-47. Freedom of Information Act. The Authority
15shall be a public body as defined in the Freedom of Information
16Act and shall be subject to the provisions of the Freedom of
17Information Act.
18 Section 1-50. Transfer of funds. The revenues received by
19the Authority (other than amounts required to be paid pursuant
20to the Illinois Gambling Act and amounts required to pay the
21operating expenses of the Authority, to pay amounts due the
22casino operator licensee pursuant to a casino management
23contract, to repay any borrowing of the Authority made pursuant
24to Section 1-31, to pay debt service on any bonds issued under

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1Section 1-75, and to pay any expenses in connection with the
2issuance of such bonds pursuant to Section 1-75 or derivative
3products pursuant to Section 1-85) shall be transferred to the
4City by the Authority. Moneys transferred to the City pursuant
5to this Section shall be expended or obligated by the City for
6the construction and maintenance of infrastructure and for
7related purposes within the City. Such infrastructure may
8include, but is not limited to, roads, bridges, transit
9infrastructure, water and sewer infrastructure, schools,
10parks, and municipal facilities.
11 Section 1-60. Auditor General.
12 (a) Prior to the issuance of bonds under this Act, the
13Authority shall submit to the Auditor General a certification
14that:
15 (1) it is legally authorized to issue bonds;
16 (2) scheduled annual payments of principal and
17 interest on the bonds to be issued meet the requirements of
18 Section 1-75 of this Act;
19 (3) no bond shall mature later than 30 years; and
20 (4) after payment of costs of issuance and necessary
21 deposits to funds and accounts established with respect to
22 debt service on the bonds, the net bond proceeds (exclusive
23 of any proceeds to be used to refund outstanding bonds)
24 will be used only for the purposes set forth in this Act.
25 The Authority also shall submit to the Auditor General its

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1projections on revenues to be generated and pledged to
2repayment of the bonds as scheduled and such other information
3as the Auditor General may reasonably request.
4 The Auditor General shall examine the certifications and
5information submitted and submit a report to the Authority and
6the Gaming Board indicating whether the required
7certifications, projections, and other information have been
8submitted by the Authority and whether the assumptions
9underlying the projections are not unreasonable in the
10aggregate. The Auditor General shall submit the report no later
11than 60 days after receiving the information required to be
12submitted by the Authority.
13 The Auditor General shall submit a bill to the Authority
14for costs associated with the examinations and report required
15under this Section. The Authority shall reimburse in a timely
16manner.
17 (b) The Authority shall enter into an intergovernmental
18agreement with the Auditor General authorizing the Auditor
19General to, every 2 years, (i) review the financial audit of
20the Authority performed by the Authority's certified public
21accountants, (ii) perform a management audit of the Authority,
22and (iii) perform a management audit of the casino operator
23licensee. The Auditor General shall provide the Authority and
24the General Assembly with the audits and shall post on his or
25her Internet website such portions of the audit or other
26financial information as generally would be made publicly

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1available for other owners licensees under the Illinois
2Gambling Act. The Auditor General shall submit a bill to the
3Authority for costs associated with the review and the audit
4required under this Section, which costs shall not exceed
5$100,000, and the Authority shall reimburse the Auditor General
6for such costs in a timely manner.
7 Section 1-62. Advisory committee. An Advisory Committee is
8established to monitor, review, and report on (1) the
9Authority's utilization of minority-owned business enterprises
10and female-owned business enterprises, (2) employment of
11females, and (3) employment of minorities with regard to the
12development and construction of the casino as authorized under
13Section 7 of the Illinois Gambling Act. The Authority shall
14work with the Advisory Committee in accumulating necessary
15information for the Committee to submit reports, as necessary,
16to the General Assembly and to the City.
17 The Committee shall consist of 9 members as provided in
18this Section. Five members shall be selected by the Governor
19and 4 members shall be selected by the Mayor. The Governor and
20Mayor shall each appoint at least one current member of the
21General Assembly. The Advisory Committee shall meet
22periodically and shall report the information to the Mayor of
23the City and to the General Assembly by December 31st of every
24year.
25 The Advisory Committee shall be dissolved on the date that

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1casino gambling operations are first conducted at a permanent
2facility under the license authorized under Section 7 of the
3Illinois Gambling Act. For the purposes of this Section, the
4terms "female" and "minority person" have the meanings provided
5in Section 2 of the Business Enterprise for Minorities,
6Females, and Persons with Disabilities Act.
7 Section 1-65. Acquisition of property; eminent domain
8proceedings. For the lawful purposes of this Act, the City may
9acquire by eminent domain or by condemnation proceedings in the
10manner provided by the Eminent Domain Act, real or personal
11property or interests in real or personal property located in
12the City, and the City may convey to the Authority property so
13acquired. The acquisition of property under this Section is
14declared to be for a public use.
15 Section 1-67. Limitations on gaming at Chicago airports.
16The Authority may conduct gaming operations in an airport under
17the administration or control of the Chicago Department of
18Aviation. Gaming operations may be conducted pursuant to this
19Section so long as (i) gaming operations are conducted in a
20secured area that is beyond the Transportation Security
21Administration security checkpoints and only available to
22airline passengers at least 21 years of age who are members of
23a private club, and not to the general public, (ii) gaming
24operations are limited to slot machines, as defined in Section

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14 of the Illinois Gambling Act, and (iii) the combined number
2of gaming positions operating in the City at the airports and
3at the temporary and permanent casino facility does not exceed
4the maximum number of gaming positions authorized pursuant to
5subsection (h) of Section 7 of the Illinois Gambling Act.
6Gaming operations at an airport are subject to all applicable
7laws and rules that apply to any other gaming facility under
8this Act or the Illinois Gambling Act.
9 Section 1-70. Local regulation. The casino facilities and
10operations therein shall be subject to all ordinances and
11regulations of the City. The construction, development, and
12operation of the casino shall comply with all ordinances,
13regulations, rules, and controls of the City, including, but
14not limited to, those relating to zoning and planned
15development, building, fire prevention, and land use. However,
16the regulation of gaming operations is subject to the exclusive
17jurisdiction of the Gaming Board. The Gaming Board shall be
18responsible for the investigation for and issuance of all
19licenses required by this Act and the Illinois Gambling Act.
20For the purposes of this Section, "gaming operations" means
21those activities directly related to the conduct of gambling
22activity in the casino and "operations" means those activities
23not directly related to the conduct of gambling, and includes
24activities customarily carried out by similarly-sized
25facilities not involved in gambling activity.

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

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

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

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

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

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

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1 (j) The bonds of the Authority shall not be indebtedness of
2the State. The bonds of the Authority are not general
3obligations of the State and are not secured by a pledge of the
4full faith and credit of the State and the holders of bonds of
5the Authority may not require, except as provided in this Act,
6the application of State revenues or funds to the payment of
7bonds of the Authority.
8 (k) The State of Illinois pledges and agrees with the
9owners of the bonds that it will not limit or alter the rights
10and powers vested in the Authority by this Act so as to impair
11the terms of any contract made by the Authority with the owners
12or in any way impair the rights and remedies of the owners
13until the bonds, together with interest on them, and all costs
14and expenses in connection with any action or proceedings by or
15on behalf of the owners, are fully met and discharged. The
16Authority is authorized to include this pledge and agreement in
17any contract with the owners of bonds issued under this
18Section.
19 (l) No person holding an elective office in the City, in
20Cook County, or in this State, holding a seat in the General
21Assembly, or serving as a board member, trustee, officer, or
22employee of the Authority, including the spouse of that person,
23may receive a legal, banking, consulting, or other fee related
24to the issuance of bonds. This prohibition shall also apply to
25a company or firm that employs a person holding an elective
26office in the City, in Cook County, or in this State, holding a

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1seat in the General Assembly, or serving as a board member,
2trustee, officer, or employee of the Authority, including the
3spouse of that person, if the person or his or her spouse has
4greater than 7.5% ownership of the company or firm.
5 Section 1-85. Derivative products. With respect to all or
6part of any issue of its bonds, the Authority may enter into
7agreements or contracts with any necessary or appropriate
8person, which will have the benefit of providing to the
9Authority an interest rate basis, cash flow basis, or other
10basis different from that provided in the bonds for the payment
11of interest. Such agreements or contracts may include, without
12limitation, agreements or contracts commonly known as
13"interest rate swap agreements", "forward payment conversion
14agreements", "futures", "options", "puts", or "calls" and
15agreements or contracts providing for payments based on levels
16of or changes in interest rates, agreements or contracts to
17exchange cash flows or a series of payments, or to hedge
18payment, rate spread, or similar exposure.
19 Section 1-90. Legality for investment. The State of
20Illinois, all governmental entities, all public officers,
21banks, bankers, trust companies, savings banks and
22institutions, building and loan associations, savings and loan
23associations, investment companies, and other persons carrying
24on a banking business, insurance companies, insurance

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1associations, and other persons carrying on an insurance
2business, and all executors, administrators, guardians,
3trustees, and other fiduciaries may legally invest any sinking
4funds, moneys, or other funds belonging to them or within their
5control in any bonds issued under this Act. However, nothing in
6this Section shall be construed as relieving any person, firm,
7or corporation from any duty of exercising reasonable care in
8selecting securities for purchase or investment.
9 Section 1-105. Budgets and reporting.
10 (a) The Casino Board shall annually adopt a budget for each
11fiscal year. The budget may be modified from time to time in
12the same manner and upon the same vote as it may be adopted.
13The budget shall include the Authority's available funds and
14estimated revenues and shall provide for payment of its
15obligations and estimated expenditures for the fiscal year,
16including, without limitation, expenditures for
17administration, operation, maintenance and repairs, debt
18service, and deposits into reserve and other funds and capital
19projects.
20 (b) The Casino Board shall annually cause the finances of
21the Authority to be audited by a firm of certified public
22accountants selected by the Casino Board in accordance with the
23rules of the Gaming Board and post on the Authority's Internet
24website such financial information as is required to be posted
25by all other owners licensees under the Illinois Gambling Act.

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1 (c) The Casino Board shall, for each fiscal year, prepare
2an annual report setting forth information concerning its
3activities in the fiscal year and the status of the development
4of the casino. The annual report shall include financial
5information of the Authority consistent with that which is
6required for all other owners licensees under the Illinois
7Gambling Act, the budget for the succeeding fiscal year, and
8the current capital plan as of the date of the report. Copies
9of the annual report shall be made available to persons who
10request them and shall be submitted not later than 120 days
11after the end of the Authority's fiscal year or, if the audit
12of the Authority's financial statements is not completed within
13120 days after the end of the Authority's fiscal year, as soon
14as practical after completion of the audit, to the Governor,
15the Mayor, the General Assembly, and the Commission on
16Government Forecasting and Accountability.
17 Section 1-110. Deposit and withdrawal of funds.
18 (a) All funds deposited by the Authority in any bank or
19savings and loan association shall be placed in the name of the
20Authority and shall be withdrawn or paid out only by check or
21draft upon the bank or savings and loan association, signed by
222 officers or employees designated by the Casino Board.
23Notwithstanding any other provision of this Section, the Casino
24Board may designate any of its members or any officer or
25employee of the Authority to authorize the wire transfer of

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1funds deposited by the secretary-treasurer of funds in a bank
2or savings and loan association for the payment of payroll and
3employee benefits-related expenses.
4 No bank or savings and loan association shall receive
5public funds as permitted by this Section unless it has
6complied with the requirements established pursuant to Section
76 of the Public Funds Investment Act.
8 (b) If any officer or employee whose signature appears upon
9any check or draft issued pursuant to this Act ceases (after
10attaching his signature) to hold his or her office before the
11delivery of such a check or draft to the payee, his or her
12signature shall nevertheless be valid and sufficient for all
13purposes with the same effect as if he or she had remained in
14office until delivery thereof.
15 Section 1-112. Contracts with the Authority or casino
16operator licensee; disclosure requirements.
17 (a) A bidder, respondent, offeror, or contractor for
18contracts with the Authority or casino operator licensee shall
19disclose the identity of all officers and directors and every
20owner, beneficiary, or person with beneficial interest of more
21than 1% or shareholder entitled to receive more than 1% of the
22total distributable income of any corporation having any
23interest in the contract or in the bidder, respondent, offeror,
24or contractor. The disclosure shall be in writing and attested
25to by an owner, trustee, corporate official, or agent. If stock

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1in a corporation is publicly traded and there is no readily
2known individual having greater than a 1% interest, then a
3statement to that effect attested to by an officer or agent of
4the corporation shall fulfill the disclosure statement
5requirement of this Section. A bidder, respondent, offeror, or
6contractor shall notify the Authority of any changes in
7officers, directors, ownership, or individuals having a
8beneficial interest of more than 1%. Notwithstanding the
9provisions of this subsection (a), the Gaming Board may adopt
10rules in connection with contractors for contracts with the
11Authority or the casino operator.
12 (b) A bidder, respondent, offeror, or contractor for
13contracts with an annual value of $25,000 or more or for a
14period to exceed one year shall disclose all political
15contributions of the bidder, respondent, offeror, or
16contractor and any affiliated person or entity. Disclosure
17shall include at least the names and addresses of the
18contributors and the dollar amounts of any contributions to any
19political committee made within the previous 2 years. The
20disclosure must be submitted to the Gaming Board with a copy of
21the contract. All such disclosures shall be posted on the
22websites of the Authority and the Gaming Board.
23 (c) As used in this Section:
24 "Contribution" means contribution as defined in Section
259-1.4 of the Election Code.
26 "Affiliated person" means (i) any person with any ownership

09800SB1739sam001- 40 -LRB098 10559 AMC 42403 a
1interest or distributive share of the bidding, responding, or
2contracting entity in excess of 1%, (ii) executive employees of
3the bidding, responding, or contracting entity, and (iii) the
4spouse, minor children, and parents of any such persons.
5 "Affiliated entity" means (i) any parent or subsidiary of
6the bidding or contracting entity, (ii) any member of the same
7unitary business group, or (iii) any political committee for
8which the bidding, responding, or contracting entity is the
9sponsoring entity.
10 (d) The Gaming Board may direct the Authority or a casino
11operator licensee to void a contract if a violation of this
12Section occurs. The Authority may direct a casino operator
13licensee to void a contract if a violation of this Section
14occurs.
15 (e) All contracts pertaining to the actual operation of the
16casino and related gaming activities shall be entered into by
17the casino operator licensee and not the Authority and shall be
18subject to the regulation, oversight, and approval of the
19Gaming Board, applying the same regulation, oversight, and
20approval requirements as would be applied to any other owners
21licensee under the Illinois Gambling Act.
22 Section 1-115. Purchasing.
23 (a) The Casino Board shall designate an officer of the
24Authority to serve as the Chief Procurement Officer for the
25Authority. The Chief Procurement Officer shall have all powers

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1and duties set forth in Section 15 of Division 10 of Article 8
2of the Illinois Municipal Code. Except as otherwise provided in
3this Section, the Chief Procurement Officer of the Authority
4shall conduct procurements on behalf of the Authority subject
5to Title 2, Chapter 92 of the Municipal Code of Chicago, which
6by its terms incorporates Division 10 of Article 8 of the
7Illinois Municipal Code.
8 (b) All contracts for amounts greater than $25,000 must be
9approved by the Casino Board and executed by the chairperson of
10the Casino Board and executive director of the Authority.
11Contracts for amounts of $25,000 or less may be approved and
12executed by the Chief Procurement Officer for the Authority and
13executive director of the Authority, with approval by the chief
14legal counsel for the Authority as to form and legality.
15 (c) All construction contracts and contracts for supplies,
16materials, equipment, and services for amounts greater than
17$25,000 shall be let by a competitive selection process to the
18lowest responsible proposer, after advertising for proposals,
19except for the following:
20 (1) when repair parts, accessories, equipment, or
21 services are required for equipment or services previously
22 furnished or contracted for;
23 (2) when services such as water, light, heat, power,
24 telephone (other than long-distance service), or telegraph
25 are required;
26 (3) casino management contracts, which shall be

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1 awarded as set forth in Section 1-45 of this Act;
2 (4) contracts where there is only one economically
3 feasible source;
4 (5) when a purchase is needed on an immediate,
5 emergency basis because there exists a threat to public
6 health or public safety, or when immediate expenditure is
7 necessary for repairs to Authority property in order to
8 protect against further loss of or damage to Authority
9 property, to prevent or minimize serious disruption in
10 Authority services or to ensure the integrity of Authority
11 records;
12 (6) contracts for professional services other than for
13 management of the casino, except such contracts described
14 in subsection (d) of this Section; and
15 (7) contracts for the use, purchase, delivery,
16 movement, or installation of (i) data processing
17 equipment, software, and services and (ii)
18 telecommunications equipment, software, and services.
19 (d) Contracts for professional services for a term of more
20than one year or contracts that may require payment in excess
21of $25,000 in one year shall be let by a competitive bidding
22process to the most highly qualified firm that agrees to
23compensation and other terms of engagement that are both
24reasonable and acceptable to the Casino Board.
25 (e) All contracts involving less than $25,000 shall be let
26by competitive selection process whenever possible, and in any

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1event in a manner calculated to ensure the best interests of
2the public.
3 (f) In determining the responsibility of any proposer, the
4Authority may take into account the proposer's (or an
5individual having a beneficial interest, directly or
6indirectly, of more than 1% in such proposing entity) past
7record of dealings with the Authority, the proposer's
8experience, adequacy of equipment, and ability to complete
9performance within the time set, and other factors besides
10financial responsibility. No such contract shall be awarded to
11any proposer other than the lowest proposer (in case of
12purchase or expenditure) unless authorized or approved by a
13vote of at least 3 members of the Casino Board and such action
14is accompanied by a written statement setting forth the reasons
15for not awarding the contract to the highest or lowest
16proposer, as the case may be. The statement shall be kept on
17file in the principal office of the Authority and open to
18public inspection.
19 (g) The Authority shall have the right to reject all
20proposals and to re-advertise for proposals. If after any such
21re-advertisement, no responsible and satisfactory proposals,
22within the terms of the re-advertisement, is received, the
23Authority may award such contract without competitive
24selection. The contract must not be less advantageous to the
25Authority than any valid proposal received pursuant to
26advertisement.

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1 (h) Advertisements for proposals and re-proposals shall be
2published at least once in a daily newspaper of general
3circulation published in the City at least 10 calendar days
4before the time for receiving proposals and in an online
5bulletin published on the Authority's website. Such
6advertisements shall state the time and place for receiving and
7opening of proposals and, by reference to plans and
8specifications on file at the time of the first publication or
9in the advertisement itself, shall describe the character of
10the proposed contract in sufficient detail to fully advise
11prospective proposers of their obligations and to ensure free
12and open competitive selection.
13 (i) All proposals in response to advertisements shall be
14sealed and shall be publicly opened by the Authority. All
15proposers shall be entitled to be present in person or by
16representatives. Cash or a certified or satisfactory cashier's
17check, as a deposit of good faith, in a reasonable amount to be
18fixed by the Authority before advertising for proposals, shall
19be required with the proposal. A bond for faithful performance
20of the contract with surety or sureties satisfactory to the
21Authority and adequate insurance may be required in reasonable
22amounts to be fixed by the Authority before advertising for
23proposals.
24 (j) The contract shall be awarded as promptly as possible
25after the opening of proposals. The proposal of the successful
26proposer, as well as the bids of the unsuccessful proposers,

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1shall be placed on file and be open to public inspection
2subject to the exemptions from disclosure provided under
3Section 7 of the Freedom of Information Act. All proposals
4shall be void if any disclosure of the terms of any proposals
5in response to an advertisement is made or permitted to be made
6by the Authority before the time fixed for opening proposals.
7 (k) Notice of each and every contract that is offered,
8including renegotiated contracts and change orders, shall be
9published in an online bulletin. The online bulletin must
10include at least the date first offered, the date submission of
11offers is due, the location that offers are to be submitted to,
12a brief purchase description, the method of source selection,
13information of how to obtain a comprehensive purchase
14description and any disclosure and contract forms, and
15encouragement to prospective vendors to hire qualified
16veterans, as defined by Section 45-67 of the Illinois
17Procurement Code, and Illinois residents discharged from any
18Illinois adult correctional center subject to Gaming Board
19licensing and eligibility rules. Notice of each and every
20contract that is let or awarded, including renegotiated
21contracts and change orders, shall be published in the online
22bulletin and must include at least all of the information
23specified in this subsection (k), as well as the name of the
24successful responsible proposer or offeror, the contract
25price, and the number of unsuccessful responsive proposers and
26any other disclosure specified in this Section. This notice

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1must be posted in the online electronic bulletin prior to
2execution of the contract.
3 Section 1-130. Affirmative action and equal opportunity
4obligations of Authority.
5 (a) The Authority is subject to the requirements of Article
6IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720
7inclusive) of the Chicago Municipal Code, as now or hereafter
8amended, renumbered, or succeeded, concerning a Minority-Owned
9and Women-Owned Business Enterprise Procurement Program for
10construction contracts, and Section 2-92-420 et seq. of the
11Chicago Municipal Code, as now or hereafter amended,
12renumbered, or succeeded, concerning a Minority-Owned and
13Women-Owned Business Enterprise Procurement Program.
14 (b) The Authority is authorized to enter into agreements
15with contractors' associations, labor unions, and the
16contractors working on the development of the casino to
17establish an apprenticeship preparedness training program to
18provide for an increase in the number of minority and female
19journeymen and apprentices in the building trades and to enter
20into agreements with community college districts or other
21public or private institutions to provide readiness training.
22The Authority is further authorized to enter into contracts
23with public and private educational institutions and persons in
24the gaming, entertainment, hospitality, and tourism industries
25to provide training for employment in those industries.

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1 Section 1-135. Transfer of interest. Neither the Authority
2nor the City may sell, lease, rent, transfer, exchange, or
3otherwise convey any interest that they have in the casino
4without prior approval of the General Assembly.
5 Section 1-140. Home rule. The regulation and licensing of
6casinos and casino gaming, casino gaming facilities, and casino
7operator licensees under this Act are exclusive powers and
8functions of the State. A home rule unit may not regulate or
9license casinos, casino gaming, casino gaming facilities, or
10casino operator licensees under this Act, except as provided
11under this Act. This Section is a denial and limitation of home
12rule powers and functions under subsection (h) of Section 6 of
13Article VII of the Illinois Constitution.
14 Section 1-145. Prohibition of political contributions from
15casino operator licensees and applicants.
16 (a) The General Assembly has a compelling interest in
17protecting the integrity of both the electoral process and the
18legislative process by preventing corruption and the
19appearance of corruption which may arise through permitting
20certain political campaign contributions by certain persons
21involved in the gaming industry and regulated by the State.
22Unlike most other regulated industries, gaming is especially
23susceptible to corruption and potential criminal influence. In

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

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1operating subsidiary of the business entity applying for or
2holding a license, (ii) each operating subsidiary of the
3corporate parent of the business entity applying for or holding
4a license, (iii) any organization recognized by the United
5States Internal Revenue Service as a tax-exempt organization
6described in Section 501(c) of the Internal Revenue Code of
71986 (or any successor provision of federal tax law)
8established by one or more business entities seeking or holding
9a license, any affiliated entity of such business entity, or
10any affiliated person of such business entity, and (iv) any
11political committee for which the business entity applying for
12or holding a license, or any 501(c) organization described in
13item (iii) related to that business entity, is the sponsoring
14entity as defined in Section 9-3 of the Election Code. For
15purposes of item (iv), the funding of all business entities
16applying for or holding a license shall be aggregated in
17determining whether such political committee is an affiliated
18entity.
19 "Affiliated person" means (i) any person with any ownership
20interest or distributive share in excess of 7.5% of any
21business entity applying for or holding a license, (ii)
22executive employees of any such business entity, (iii) any
23person designated as a key person under the Illinois Gambling
24Act, and (iv) the spouse of the persons described in items (i)
25through (iii).
26 "Business entity" means any entity doing business for

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1profit, whether organized as a corporation, partnership, sole
2proprietorship, limited liability company, or partnership or
3otherwise.
4 "Contribution" means a contribution as defined in Section
59-1.4 of the Election Code.
6 "Declared candidate" means a person who has filed a
7statement of candidacy and petition for nomination or election
8in the principal office of the State Board of Elections, or in
9the office of the appropriate election authority for any county
10or municipality in which a casino is located or proposed or
11which receives any gaming revenue.
12 "Executive employee" means (i) any person who is an officer
13or director or who fulfills duties equivalent to those of an
14officer or director of a business entity applying for or
15holding a license and (ii) any employee of such business entity
16who is required to register under the Lobbyist Registration
17Act.
18 "License" means the casino operator license issued
19pursuant to this Act.
20 "Officeholder" means the Governor, Lieutenant Governor,
21Attorney General, Secretary of State, Comptroller, Treasurer,
22member of the General Assembly, or any officeholder in any
23county or municipality in which a riverboat, casino, or
24electronic gaming device is located or proposed or that
25receives any gaming revenue.
26 (c) Any person or business entity applying for or holding a

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

09800SB1739sam001- 52 -LRB098 10559 AMC 42403 a
1Fund.
2 (d) The Gaming Board shall post on its Internet website a
3list of all persons, business entities, and affiliated entities
4prohibited from making contributions to any officeholder or
5declared candidate political committee pursuant to subsection
6(c), which list shall be updated and published, at a minimum,
7every 6 months.
8 Any person, business entity, or affiliated entity
9prohibited from making contributions to any officeholder or
10declared candidate political committee pursuant to subsection
11(c) shall notify the Gaming Board within 7 days after
12discovering any necessary change or addition to the information
13relating to that person, business entity, or affiliated entity
14contained in the list.
15 An individual who acts in good faith and in reliance on any
16information contained in the list shall not be subject to any
17penalties or liability imposed for a violation of this Section.
18 (e) If any provision of this Section is held invalid or its
19application to any person or circumstance is held invalid, the
20invalidity of that provision or application does not affect the
21other provisions or applications of this Section that can be
22given effect without the invalid application or provision.
23
ARTICLE 90.
24 Section 90-1. Findings. The General Assembly makes all of

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1the following findings:
2 (1) That the cumulative reduction to pre-K through 12
3 education funding since 2009 is approximately
4 $861,000,000.
5 (2) That during the last 2 years, general state aid to
6 Illinois common schools has been underfunded as a result of
7 budget cuts, resulting in pro-rated payments to school
8 districts that are less than the foundational level of
9 $6,119 per pupil, which represents the minimum each pupil
10 needs to be educated.
11 (3) That a significant infusion of new revenue is
12 necessary in order to fully fund the foundation level and
13 to maintain and support education in Illinois.
14 (4) That the decline of the Illinois horse racing and
15 breeding program, a $2.5 billion industry, would be
16 reversed if this amendatory Act of the 98th General
17 Assembly would be enacted.
18 (5) That the Illinois horse racing industry is on the
19 verge of extinction due to fierce competition from fully
20 developed horse racing and gaming operations in other
21 states.
22 (6) That allowing the State's horse racing venues,
23 currently licensed gaming destinations, to maximize their
24 capacities with gaming machines, would generate up to $120
25 million to $200 million for the State in the form of extra
26 licensing fees, plus an additional $100 million to $300

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1 million in recurring annual tax revenue for the State to
2 help ensure that school, road, and other building projects
3 promised under the capital plan occur on schedule.
4 (7) That Illinois agriculture and other businesses
5 that support and supply the horse racing industry, already
6 a sector that employs over 37,000 Illinoisans, also stand
7 to substantially benefit and would be much more likely to
8 create additional jobs should Illinois horse racing once
9 again become competitive with other states.
10 (8) That by keeping these projects on track, the State
11 can be sure that significant job and economic growth will
12 in fact result from the previously enacted legislation.
13 (9) That gaming machines at Illinois horse racing
14 tracks would create an estimated 1,200 to 1,500 permanent
15 jobs, and an estimated capital investment of up to $200
16 million to $400 million at these race tracks would prompt
17 additional trade organization jobs necessary to construct
18 new facilities or remodel race tracks to operate electronic
19 gaming.
20 Section 90-2. The Illinois Administrative Procedure Act is
21amended by changing Section 5-45 as follows:
22 (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
23 Sec. 5-45. Emergency rulemaking.
24 (a) "Emergency" means the existence of any situation that

09800SB1739sam001- 55 -LRB098 10559 AMC 42403 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

09800SB1739sam001- 56 -LRB098 10559 AMC 42403 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 this amendatory
14Act of the 91st General Assembly or any other budget initiative
15for fiscal year 2000 may be adopted in accordance with this
16Section by the agency charged with administering that provision
17or initiative, except that the 24-month limitation on the
18adoption of emergency rules and the provisions of Sections
195-115 and 5-125 do not apply to rules adopted under this
20subsection (e). The adoption of emergency rules authorized by
21this subsection (e) shall be deemed to be necessary for the
22public interest, safety, and welfare.
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 this amendatory
26Act of the 91st General Assembly or any other budget initiative

09800SB1739sam001- 58 -LRB098 10559 AMC 42403 a
1for fiscal year 2001 may be adopted in accordance with this
2Section by the agency charged with administering that provision
3or initiative, except that the 24-month limitation on the
4adoption of emergency rules and the provisions of Sections
55-115 and 5-125 do not apply to rules adopted under this
6subsection (f). The adoption of emergency rules authorized by
7this subsection (f) shall be deemed to be necessary for the
8public interest, safety, and welfare.
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 this amendatory
12Act of the 92nd General Assembly or any other budget initiative
13for fiscal year 2002 may be adopted in accordance with this
14Section by the agency charged with administering that provision
15or initiative, except that the 24-month limitation on the
16adoption of emergency rules and the provisions of Sections
175-115 and 5-125 do not apply to rules adopted under this
18subsection (g). The adoption of emergency rules authorized by
19this subsection (g) shall be deemed to be necessary for the
20public interest, safety, and welfare.
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 this amendatory
24Act of the 92nd General Assembly or any other budget initiative
25for fiscal year 2003 may be adopted in accordance with this
26Section by the agency charged with administering that provision

09800SB1739sam001- 59 -LRB098 10559 AMC 42403 a
1or initiative, except that the 24-month limitation on the
2adoption of emergency rules and the provisions of Sections
35-115 and 5-125 do not apply to rules adopted under this
4subsection (h). The adoption of emergency rules authorized by
5this subsection (h) shall be deemed to be necessary for the
6public interest, safety, and welfare.
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 this amendatory
10Act of the 93rd General Assembly or any other budget initiative
11for fiscal year 2004 may be adopted in accordance with this
12Section by the agency charged with administering that provision
13or initiative, except that the 24-month limitation on the
14adoption of emergency rules and the provisions of Sections
155-115 and 5-125 do not apply to rules adopted under this
16subsection (i). The adoption of emergency rules authorized by
17this subsection (i) shall be deemed to be necessary for the
18public interest, safety, and welfare.
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

09800SB1739sam001- 60 -LRB098 10559 AMC 42403 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 this
12amendatory Act of the 94th General Assembly or any other budget
13initiative for fiscal year 2006 may be adopted in accordance
14with this Section by the agency charged with administering that
15provision or initiative, except that the 24-month limitation on
16the adoption of emergency rules and the provisions of Sections
175-115 and 5-125 do not apply to rules adopted under this
18subsection (k). The Department of Healthcare and Family
19Services may also adopt rules under this subsection (k)
20necessary to administer the Illinois Public Aid Code, the
21Senior Citizens and Disabled Persons Property Tax Relief Act,
22the Senior Citizens and Disabled Persons Prescription Drug
23Discount Program Act (now the Illinois Prescription Drug
24Discount Program Act), and the Children's Health Insurance
25Program Act. The adoption of emergency rules authorized by this
26subsection (k) shall be deemed to be necessary for the public

09800SB1739sam001- 61 -LRB098 10559 AMC 42403 a
1interest, safety, and welfare.
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

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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 this
5amendatory Act of the 96th General Assembly or any other budget
6initiative authorized by the 96th General Assembly for fiscal
7year 2010 may be adopted in accordance with this Section by the
8agency charged with administering that provision or
9initiative. The adoption of emergency rules authorized by this
10subsection (n) shall be deemed to be necessary for the public
11interest, safety, and welfare. The rulemaking authority
12granted in this subsection (n) shall apply only to rules
13promulgated during Fiscal Year 2010.
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 this
17amendatory Act of the 96th General Assembly or any other budget
18initiative authorized by the 96th General Assembly for fiscal
19year 2011 may be adopted in accordance with this Section by the
20agency charged with administering that provision or
21initiative. The adoption of emergency rules authorized by this
22subsection (o) is deemed to be necessary for the public
23interest, safety, and welfare. The rulemaking authority
24granted in this subsection (o) applies only to rules
25promulgated on or after the effective date of this amendatory
26Act of the 96th General Assembly through June 30, 2011.

09800SB1739sam001- 63 -LRB098 10559 AMC 42403 a
1 (p) In order to provide for the expeditious and timely
2implementation of the provisions of Public Act 97-689 this
3amendatory Act of the 97th General Assembly, emergency rules to
4implement any provision of Public Act 97-689 this amendatory
5Act of the 97th General Assembly may be adopted in accordance
6with this subsection (p) by the agency charged with
7administering that provision or initiative. The 150-day
8limitation of the effective period of emergency rules does not
9apply to rules adopted under this subsection (p), and the
10effective period may continue through June 30, 2013. The
1124-month limitation on the adoption of emergency rules does not
12apply to rules adopted under this subsection (p). The adoption
13of emergency rules authorized by this subsection (p) is deemed
14to be necessary for the public interest, safety, and welfare.
15 (q) In order to provide for the expeditious and timely
16implementation of Internet gaming, the Division of Internet
17Gaming may adopt emergency rules to implement the provisions of
18Section 7.18 of the Illinois Lottery Law. The adoption of
19emergency rules authorized by this subsection (q) shall be
20deemed to be necessary for the public interest, safety, and
21welfare.
22(Source: P.A. 96-45, eff. 7-15-09; 96-958, eff. 7-1-10;
2396-1500, eff. 1-18-11; 97-689, eff. 6-14-12; 97-695, eff.
247-1-12; revised 7-10-12.)
25 Section 90-3. The State Officials and Employees Ethics Act

09800SB1739sam001- 64 -LRB098 10559 AMC 42403 a
1is amended by changing Sections 5-45 and 20-10 as follows:
2 (5 ILCS 430/5-45)
3 Sec. 5-45. Procurement; revolving door prohibition.
4 (a) No former officer, member, or State employee, or spouse
5or immediate family member living with such person, shall,
6within a period of one year immediately after termination of
7State employment, knowingly accept employment or receive
8compensation or fees for services from a person or entity if
9the officer, member, or State employee, during the year
10immediately preceding termination of State employment,
11participated personally and substantially in the award of State
12contracts, or the issuance of State contract change orders,
13with a cumulative value of $25,000 or more to the person or
14entity, or its parent or subsidiary.
15 (b) No former officer of the executive branch or State
16employee of the executive branch with regulatory or licensing
17authority, or spouse or immediate family member living with
18such person, shall, within a period of one year immediately
19after termination of State employment, knowingly accept
20employment or receive compensation or fees for services from a
21person or entity if the officer or State employee, during the
22year immediately preceding termination of State employment,
23participated personally and substantially in making a
24regulatory or licensing decision that directly applied to the
25person or entity, or its parent or subsidiary.

09800SB1739sam001- 65 -LRB098 10559 AMC 42403 a
1 (c) Within 6 months after the effective date of this
2amendatory Act of the 96th General Assembly, each executive
3branch constitutional officer and legislative leader, the
4Auditor General, and the Joint Committee on Legislative Support
5Services shall adopt a policy delineating which State positions
6under his or her jurisdiction and control, by the nature of
7their duties, may have the authority to participate personally
8and substantially in the award of State contracts or in
9regulatory or licensing decisions. The Governor shall adopt
10such a policy for all State employees of the executive branch
11not under the jurisdiction and control of any other executive
12branch constitutional officer.
13 The policies required under subsection (c) of this Section
14shall be filed with the appropriate ethics commission
15established under this Act or, for the Auditor General, with
16the Office of the Auditor General.
17 (d) Each Inspector General shall have the authority to
18determine that additional State positions under his or her
19jurisdiction, not otherwise subject to the policies required by
20subsection (c) of this Section, are nonetheless subject to the
21notification requirement of subsection (f) below due to their
22involvement in the award of State contracts or in regulatory or
23licensing decisions.
24 (e) The Joint Committee on Legislative Support Services,
25the Auditor General, and each of the executive branch
26constitutional officers and legislative leaders subject to

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

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

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

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

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

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1permitted by law. The Governor, Attorney General, Secretary of
2State, Comptroller, and Treasurer each may appoint an existing
3inspector general as the Executive Inspector General required
4by this Article, provided that such an inspector general is not
5prohibited by law, rule, jurisdiction, qualification, or
6interest from serving as the Executive Inspector General
7required by this Article. An appointing authority may not
8appoint a relative as an Executive Inspector General.
9 Each Executive Inspector General shall have the following
10qualifications:
11 (1) has not been convicted of any felony under the laws
12 of this State, another State, or the United States;
13 (2) has earned a baccalaureate degree from an
14 institution of higher education; and
15 (3) has 5 or more years of cumulative service (A) with
16 a federal, State, or local law enforcement agency, at least
17 2 years of which have been in a progressive investigatory
18 capacity; (B) as a federal, State, or local prosecutor; (C)
19 as a senior manager or executive of a federal, State, or
20 local agency; (D) as a member, an officer, or a State or
21 federal judge; or (E) representing any combination of (A)
22 through (D).
23 The term of each initial Executive Inspector General shall
24commence upon qualification and shall run through June 30,
252008. The initial appointments shall be made within 60 days
26after the effective date of this Act.

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

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1employees of, and vendors and others doing business with, State
2agencies within the jurisdiction of the Treasurer. The
3Executive Inspector General appointed by the Governor shall
4have jurisdiction over (i) the Governor, (ii) the Lieutenant
5Governor, (iii) all officers and employees of, and vendors and
6others doing business with, executive branch State agencies
7under the jurisdiction of the Executive Ethics Commission and
8not within the jurisdiction of the Attorney General, the
9Secretary of State, the Comptroller, or the Treasurer, or the
10Executive Inspector General for gaming activities, and (iv) all
11board members and employees of the Regional Transit Boards and
12all vendors and others doing business with the Regional Transit
13Boards. The Executive Inspector General for gaming activities
14appointed by the Governor has jurisdiction over the Illinois
15Gaming Board, all officers and employees of the Illinois Gaming
16Board, and all activities of the Illinois Gaming Board.
17 The jurisdiction of each Executive Inspector General is to
18investigate allegations of fraud, waste, abuse, mismanagement,
19misconduct, nonfeasance, misfeasance, malfeasance, or
20violations of this Act or violations of other related laws and
21rules.
22 (d) The compensation for each Executive Inspector General
23shall be determined by the Executive Ethics Commission and
24shall be made from appropriations made to the Comptroller for
25this purpose. Subject to Section 20-45 of this Act, each
26Executive Inspector General has full authority to organize his

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

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

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1 problem or compulsive gambling.
2 (2) Promotion of public awareness regarding the
3 recognition and prevention of problem and compulsive
4 gambling.
5 (3) Facilitation, through in-service training and
6 other means, of the availability of effective assistance
7 programs for problem and compulsive gamblers.
8 (4) Conducting studies to identify adults and
9 juveniles in this State who are, or who are at risk of
10 becoming, problem or compulsive gamblers.
11 (b) Subject to appropriation, the Department shall either
12establish and maintain the program or contract with a private
13or public entity for the establishment and maintenance of the
14program. Subject to appropriation, either the Department or the
15private or public entity shall implement the toll-free
16telephone number, promote public awareness, and conduct
17in-service training concerning problem and compulsive
18gambling.
19 (c) Subject to appropriation, the Department shall produce
20and supply the signs specified in Section 10.7 of the Illinois
21Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
221975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
23of the Charitable Games Act, and Section 13.1 of the Illinois
24Riverboat Gambling Act.
25(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)

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1 Section 90-8. The Illinois Lottery Law is amended by
2changing Sections 2 and 9.1 and by adding Section 7.18 as
3follows:
4 (20 ILCS 1605/2) (from Ch. 120, par. 1152)
5 Sec. 2. (a) This Act is enacted to implement and establish
6within the State a lottery to be conducted by the State through
7the Department. The entire net proceeds of the Lottery are to
8be used for the support of the State's Common School Fund,
9except as provided in subsection (o) of Section 9.1 and
10Sections 21.2, 21.5, 21.6, 21.7, and 21.8. The General Assembly
11finds that it is in the public interest for the Department to
12conduct the functions of the Lottery with the assistance of a
13private manager under a management agreement overseen by the
14Department. The Department shall be accountable to the General
15Assembly and the people of the State through a comprehensive
16system of regulation, audits, reports, and enduring
17operational oversight. The Department's ongoing conduct of the
18Lottery through a management agreement with a private manager
19shall act to promote and ensure the integrity, security,
20honesty, and fairness of the Lottery's operation and
21administration. It is the intent of the General Assembly that
22the Department shall conduct the Lottery with the assistance of
23a private manager under a management agreement at all times in
24a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1),
251953(b)(4).

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1 (b) It is further the intent of the General Assembly that
2the Division of Internet Gaming of the Department shall
3administer and regulate Internet wagering at all times in a
4manner consistent with the applicable provisions of State and
5federal law pursuant to Section 7.18 of this Law.
6(Source: P.A. 95-331, eff. 8-21-07; 95-673, eff. 10-11-07;
795-674, eff. 10-11-07; 95-876, eff. 8-21-08; 96-34, eff.
87-13-09.)
9 (20 ILCS 1605/7.18 new)
10 Sec. 7.18. Internet gaming; Division of Internet Gaming;
11powers.
12 (a) The General Assembly finds that the Internet has become
13an integral part of everyday life for a significant number of
14Illinois residents, not only in regards to their professional
15life, but also in regards to personal business and
16communication. Internet wagering on games of chance and games
17of skill is a core form of entertainment for millions of
18individuals worldwide. In multiple jurisdictions across the
19world, Internet gaming is legal, regulated, and taxed,
20generating billions of dollars in revenue for governments.
21 The General Assembly further finds that Illinois residents
22participate in illegal on-line gambling on unregulated
23Internet websites operated by offshore operators who are not
24subject to regulation or taxation in the United States. Neither
25federal nor Illinois laws provide sufficient consumer

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1protections for Illinois residents who play games of chance or
2skill on these illegal websites, nor does the State realize any
3benefits from the revenues generated nor jobs created by
4illegal on-line gaming.
5 In an opinion dated September 20, 2011, the United States
6Department of Justice reversed its previous interpretation of
7the federal Wire Act, 18 U.S.C. 1804, allowing states, subject
8to certain restrictions, to legalize and regulate Internet
9gaming and capture the revenue for the benefit of state
10governments. The Department of Justice's opinion was prompted
11in part by a request made by the Department pursuant to Public
12Act 96-34. In order to protect Illinois residents who wager on
13games of chance and skill through the Internet, and to capture
14revenues and create jobs generated from Internet gaming, it is
15in the best interest of the State and its citizens to regulate
16this activity by authorizing and establishing a secure,
17responsible, fair, and legal system of Internet gaming that
18complies with the United States Department of Justice's
19September 2011 opinion concerning the federal Wire Act.
20 The General Assembly additionally finds that pursuant to
21the federal Unlawful Internet Gambling Enforcement Act of 2006
22(UIGEA), 31 U.S.C. 5301, the provisions of this Section are
23consistent and comply with the UIGEA and specifically authorize
24use of the Internet to place, receive, or otherwise knowingly
25transmit a bet or wager where Internet wagering complies with
26this Section and rules adopted pursuant to this Section.

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1 (b) As used in this Section:
2 "Authorized participant" means a person who has a valid
3Internet wagering account with an Internet gaming licensee and
4is at least 21 years of age.
5 "Division" means the Division of Internet Gaming within the
6Department of the Lottery.
7 "Fee-based game" means a game determined by the Division to
8be a fee-based game, where the Internet gaming licensee charges
9a fee, rake, or commission for operating the game.
10 "Gross fee-based gaming revenue" means the fee, rake, or
11commission charged by the Internet gaming licensee for
12operation of fee-based games.
13 "Gross gaming revenue" is the aggregate of gross fee-based
14gaming revenue and gross non-fee-based gaming revenue.
15 "Gross non-fee-based gaming revenue" means the aggregate
16of the amount of net wins received on all non-fee-based games.
17 "Internet" means the international computer network of
18interoperable packet-switched data networks, inclusive of such
19additional technological platforms as mobile, satellite, and
20other electronic distribution channels approved by the
21Division.
22 "Internet game" means a fee-based or non-fee-based game of
23skill or chance that is offered by an Internet gaming licensee,
24as authorized by the Division. "Internet game" also includes
25gaming tournaments conducted via the Internet in which players
26compete against one another in one or more of the games

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1authorized in this definition or by the Division or in approved
2variations or composites as authorized by the Division.
3 "Internet gaming licensee" means a person, corporation,
4partnership, or other entity receiving an Internet gaming
5license from the Division to conduct Internet wagering.
6 "Internet gaming platform" means an interactive set of
7related data networks controlled by an Internet gaming licensee
8for the purpose of offering wagering on Internet games to
9authorized participants.
10 "Internet gaming vendor" means any person, corporation,
11partnership, or other entity that is certified by the Division
12to provide or offer to provide goods, software, or services to
13an Internet gaming licensee, including any goods, software, or
14services related to or supporting: (i) the acceptance, testing,
15auditing, management, operation, support, administration, or
16control of Internet wagers, Internet games, Internet wagering
17accounts, or Internet gaming platforms or (ii) the management,
18operation, administration, or control of payment processing
19systems. The Division shall have the sole and exclusive
20jurisdiction to determine what persons, corporations,
21partnerships, or other entities require certification pursuant
22to this Act and the rules adopted pursuant to this Act.
23Notwithstanding this definition, the licensing of trademarks,
24names, likenesses, graphics, or other images, without more,
25shall not render a licensor of such intellectual property an
26Internet gaming vendor.

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1 "Internet wagering" means the placing of wagers with an
2Internet gaming licensee by persons who are either physically
3present in Illinois when placing a wager or otherwise permitted
4to place a wager by law. The intermediate routing of electronic
5data in connection with Internet wagering (including across
6state lines) shall not determine the location or locations in
7which a wager is initiated, received, or otherwise made.
8 "Internet wagering account" means an electronic ledger
9wherein the following types of transactions relative to the
10Internet gaming platform are recorded: (i) deposits; (ii)
11withdrawals; (iii) amounts wagered; (iv) amounts paid on
12winning wagers; (v) service or other transaction-related
13charges authorized by the patron, if any; (vi) adjustments to
14the account; and (vii) any other information required by the
15Division.
16 "Net wins" means the amount of Internet wagers received by
17the Internet gaming licensee on non-fee based games less the
18amount paid by the Internet gaming licensee as winnings on that
19non-fee based game.
20 "Non-fee-based game" means a game determined by the
21Division to be a non-fee-based game, where (i) the player plays
22against the Internet gaming licensee and (ii) the Internet
23gaming licensee is banking the game and its bottom line is
24affected by players' wins and losses.
25 (c) Internet wagering, as defined in this Section, is
26hereby authorized to the extent that it is carried out in

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1accordance with the provisions of this Section.
2 (d) The Division of Internet Gaming is established within
3the Department of the Lottery and shall have all powers and
4duties as specified in this Section and all other powers
5necessary and proper to enable it to fully and effectively
6execute the provisions of this Section for the purpose of
7administering, regulating, and enforcing the system of
8Internet gaming established by this Section. The Division of
9Internet Gaming's jurisdiction shall extend under this Section
10to every person, corporation, partnership, or other entity
11involved in Internet gaming operations. To the extent
12consistent with the provisions of this Section, the Division
13shall be subject to and governed by provisions of this Article
14and all of the laws and rules applicable to the Department. The
15Division shall not be subject to any private management
16agreement established pursuant to Section 9.1 of this Act. The
17Division of Internet Gaming is also authorized to enter into
18agreements with other gaming entities, including foreign
19entities, for the purpose of facilitating, administering, and
20regulating multijurisdiction Internet gaming to the extent
21consistent with State and federal laws and the laws of any
22foreign jurisdiction, if such jurisdiction is a party to the
23multijurisdictional agreement. The Division shall not
24authorize, administer, or otherwise maintain a system for
25offering wagering on any amateur or professional sporting event
26or contest, unless doing so is consistent with State and

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1federal laws. Further, notwithstanding any other provision of
2this Section, wagers may be accepted from persons who are not
3physically present in this State if the Division determines
4that such wagering is not inconsistent with federal law or the
5law of the jurisdiction, including any foreign nation, in which
6any such person is located, or such wagering is conducted
7pursuant to a multijurisdictional agreement that is not
8inconsistent with federal law to which this State is a party.
9The Division shall be funded with moneys appropriated to the
10Department of the Lottery.
11 (e) The Division of Internet Gaming is authorized to issue
12Internet gaming licenses to persons, firms, partnerships, or
13corporations that apply for such licensure upon a determination
14by the Division that the applicant is eligible for an Internet
15gaming license pursuant to this Section and rules adopted by
16the Division. An Internet gaming license issued pursuant to
17this Section shall be valid for a period of 5 years after the
18date of issuance and shall be renewable thereafter for an
19additional 5 years based on a determination by the Division
20that the licensee continues to meet all the requirements of
21this Section and the Division's rules. Notwithstanding any
22other law to the contrary, any assignment or transfer of an
23interest in an Internet gaming license, or a greater than 10%
24interest (direct or indirect) in any entity holding such a
25license, is subject to the written approval by the Division.
26Approved transferees are subject to a $250,000 non-refundable

09800SB1739sam001- 85 -LRB098 10559 AMC 42403 a
1application fee. Eligibility for application for an Internet
2gaming license shall be limited to the following: (i) any
3person or entity that holds a valid and unrevoked owners
4license issued pursuant to the Illinois Gambling Act; (ii) any
5person or entity that holds a valid and unrevoked electronic
6gaming license issued pursuant to the Illinois Gambling Act;
7and (iii) any person or entity that holds a valid and unrevoked
8advance deposit wagering license issued pursuant to the
9Illinois Horse Racing Act of 1975. No Internet gaming license
10shall be granted to any applicant who has accepted wagers via
11the Internet in contravention of this Section or United States
12law in the 10 years preceding the application date.
13 A qualified applicant may apply to the Division for an
14Internet gaming license to offer wagering on Internet games as
15provided in this Act. The application shall be made on forms
16provided by the Division and shall contain such information as
17the Division prescribes, including, but not limited to,
18detailed information regarding the ownership and management of
19the applicant, detailed personal information regarding the
20applicant, financial information regarding the applicant, and
21the gaming history and experience of the applicant in the
22United States and other jurisdictions. Each application shall
23be accompanied by a non-refundable application fee of $250,000.
24An incomplete application shall be cause for denial of a
25license by the Division.
26 All information, records, interviews, reports, statements,

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1memoranda, or other data supplied to or used by the Division in
2the course of its review or investigation of an application for
3an Internet gaming license or a renewal under this Section
4shall be strictly confidential and used only for the purpose of
5evaluating an applicant for a license or a renewal.
6Notwithstanding any law to the contrary, such information is
7not subject to the requirements of the Freedom of Information
8Act.
9 Any person, association, corporation, partnership, or
10entity who (i) knowingly makes materially false statements in
11order to obtain an Internet gaming license; (ii) knowingly
12advertises within the State of Illinois any game, product, or
13feature that is not authorized by his or her license; or (iii)
14violates any other provision of this Section, or any rule
15adopted pursuant to this Section, is guilty of a Class B
16misdemeanor. A person, association, corporation, partnership,
17or entity who commits a second or subsequent violation commits
18a Class A misdemeanor. In the case of an association,
19corporation, partnership, or entity, imprisonment may be
20imposed upon its officers who knowingly participated in the
21violation.
22 An application shall be filed and considered in accordance
23with the rules of the Division. The Division shall adopt rules
24to effectuate the provisions of this subsection (e) within 30
25days after the effective date of this amendatory Act of the
2698th General Assembly.

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1 A license fee of $20,000,000 shall be paid to the Division
2by an Internet gaming licensee at the time of issuance of the
3license. All application and license fees shall be deposited
4into the State Lottery Fund. The license fee imposed by this
5subsection (e) shall constitute an advance payment of Internet
6wagering taxes owed by the Internet gaming licensee pursuant to
7subsection (m) of this Section.
8 (f) The Division is authorized to certify Internet gaming
9vendors to provide goods, software, or services to Internet
10gaming licensees. Certification by the Division of an Internet
11gaming vendor shall be for a period of 5 years and shall be
12renewable thereafter for an additional 5 years based on a
13determination by the Division that the Internet gaming vendor
14continues to meet all the requirements of this Section and the
15Division's rules.
16 A person, corporation, partnership, or other entity may
17apply to the Division to become an Internet gaming vendor as
18provided in this Act and the rules of the Division. The
19application shall be made on forms provided by the Division and
20shall contain such information as the Division prescribes,
21including, but not limited to, detailed information regarding
22the ownership and management of the applicant, detailed
23personal information regarding the applicant, financial
24information regarding the applicant, and the gaming history and
25experience of the applicant in the United States and other
26jurisdictions. Each application shall be accompanied by a

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1non-refundable application fee, such application fee to be
2determined by the Division, but shall not exceed $250,000. An
3incomplete application shall be cause for denial of
4certification. No certification shall be granted to an Internet
5gaming vendor who has accepted wagers via the Internet in
6contravention of this Act or in contravention of the any law of
7the United States.
8 All information, records, interviews, reports, statements,
9memoranda, or other data supplied to or used by the Division in
10the course of its review or investigation of an application for
11certification as an Internet gaming vendor shall be strictly
12confidential and shall only be used for the purpose of
13evaluating an applicant for a certification. Notwithstanding
14any law to the contrary, such information is not subject to the
15requirements of the Freedom of Information Act.
16 Any person, association, corporation, partnership, or
17entity who (i) knowingly makes materially false statements in
18order to obtain certification as an Internet gaming vendor or
19(ii) violates any other provision of this Section, or any rule
20adopted pursuant to this Section, is guilty of a Class B
21misdemeanor. A person, association, corporation, partnership,
22or entity who commits a second or subsequent violation commits
23a Class A misdemeanor. In the case of an association,
24corporation, partnership, or entity, imprisonment may be
25imposed upon its officers who knowingly participated in the
26violation.

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1 (g) The Division shall have all the powers necessary or
2desirable to effectuate the provisions of this Section,
3including, but not limited to, the following powers:
4 (1) To develop qualifications, standards, and
5 procedures for approval and licensure of Internet gaming
6 licensees and certification of Internet gaming vendors.
7 (2) To decide promptly and in reasonable order all
8 license applications and to approve, deny, suspend,
9 revoke, restrict, or refuse to renew Internet gaming
10 licenses and Internet gaming vendor certifications. Any
11 party aggrieved by an action of the Division denying,
12 suspending, revoking, restricting, or refusing to renew a
13 license may request a hearing before the Division. A
14 request for hearing must be made to the Division in writing
15 within 5 days after service of notice of the action by the
16 Division. Notice of action by the Division shall be served
17 either by personal delivery or by certified mail, postage
18 prepaid, to the aggrieved party. Notice served by certified
19 mail shall be deemed complete on the business day following
20 the date of such mailing. The Division shall conduct all
21 requested hearings promptly and in reasonable order.
22 (3) To conduct all hearings pertaining to civil
23 violations of this Section or rules adopted pursuant to
24 this Section. Such hearings shall be governed by Section 8
25 of this Act. The Division shall further adopt hearing rules
26 and procedures for conducting hearings pursuant to this

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1 Section. In such hearings, reproduced copies of any of the
2 Division's records relating to an Internet gaming licensee
3 or Internet gaming vendor, including (i) any notices
4 prepared in the Division's ordinary course of business and
5 (ii) any books, records, or other documents offered in the
6 name of the Division under certificate of the Executive
7 Director, or any officer or employee of the Division
8 designated in writing by the Executive Director, shall,
9 without further proof, be admitted into evidence in any
10 hearing before the hearing officers or any legal proceeding
11 and shall be prima facie proof of the information contained
12 therein.
13 The Office of the Attorney General shall prosecute all
14 criminal violations of this Section or rules adopted
15 pursuant to this Section.
16 (4) To provide for the establishment and collection of
17 all license and certification fees and taxes imposed by
18 this Section and the rules adopted pursuant to this
19 Section. All such fees and taxes shall be deposited into
20 the State Lottery Fund.
21 (5) To develop and enforce testing, audit, and
22 certification requirements and schedules for Internet
23 gaming platforms, Internet wagering, and Internet wagering
24 accounts, including, without limitation, age and
25 identification verification software, geolocation
26 software, Internet games, and gaming hub software.

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1 (6) To develop and enforce requirements for
2 responsible gaming and player protection, including
3 privacy and confidentiality standards and duties.
4 (7) To develop and enforce requirements for accepting
5 Internet wagers, Internet wagering accounts, and
6 authorized participants and minimum insurance
7 requirements.
8 (8) To develop and promote standards governing
9 contracts between Internet gaming licensees and the
10 payments industry.
11 (9) To develop and enforce standards and requirements
12 regarding anti-fraud, anti-money laundering, and
13 anti-collusion methods.
14 (10) To develop protocols related to the security of
15 and disputes arising over Internet wagers and Internet
16 wagering accounts.
17 (11) To be present through its inspectors and agents
18 upon the premises of any location where Internet gaming
19 operations are conducted by an Internet gaming licensee or
20 where components of an Internet gaming licensee's Internet
21 gaming platform are located, housed, or otherwise
22 maintained.
23 (12) To adopt by rule a code of conduct governing
24 Division employees that ensures, to the maximum extent
25 possible, that persons subject to this Section avoid
26 situations, relationships, or associations that may

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1 represent or lead to an actual or perceived conflict of
2 interest.
3 (13) To develop and administer civil penalties for
4 Internet gaming licensees and Internet gaming vendors who
5 violate this Section or the rules adopted pursuant to this
6 Section.
7 (14) To audit and inspect, on reasonable notice, books
8 and records relevant to Internet gaming operations,
9 Internet wagers, Internet wagering accounts, Internet
10 games, or Internet gaming platforms, including without
11 limitation, those books and records regarding financing or
12 accounting, marketing or operational materials, or any
13 other such materials held by or in the custody of any
14 Internet gaming licensee or Internet gaming vendor. The
15 Division may assert such authority by administrative
16 subpoena, which may further set forth relevant document
17 requests and interrogatories, and which shall be
18 enforceable in the Circuit Court of Cook County in the
19 State of Illinois.
20 (15) To determine whether an Internet game is a
21 fee-based game or non-fee-based game.
22 (16) To acquire or lease real property and make
23 improvements thereon and acquire by lease or by purchase
24 personal property, including, but not limited to:
25 (A) computers hardware;
26 (B) mechanical, electronic, and online equipment

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1 and terminals; and
2 (C) intangible property, including, but not
3 limited to, computer programs, software, and systems.
4 (h) The Division shall adopt and enforce such rules
5governing the administration and conduct of Internet gaming as
6it deems necessary to carry out the purpose of this Section.
7These rules shall be subject to the provisions of the Illinois
8Administrative Procedure Act and may include, but shall not be
9limited to:
10 (1) the types of Internet games to be offered;
11 (2) price points for Internet games;
12 (3) player fees and percentage of rake commission or
13 other fee for Internet games;
14 (4) forms of payment accepted for Internet games;
15 (5) the number, type, and amount of prizes for Internet
16 games;
17 (6) the method of selecting winners and validating
18 winnings;
19 (7) the frequency of Internet games;
20 (8) responsible gaming;
21 (9) technical and financial standards for Internet
22 wagering, Internet wagering accounts, and Internet gaming
23 platforms, systems, and software or other electronic
24 components for Internet gaming;
25 (10) such other matters necessary or desirable for the
26 efficient and economical operation and administration of

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1 Internet gaming and for the convenience of authorized
2 Internet gaming participants and Internet gaming licensees
3 and certified Internet gaming vendors.
4 (i) Notwithstanding any law to the contrary, the
5Superintendent of the Lottery shall hire an Executive Director
6who shall be responsible to the Superintendent and shall serve
7subject only to removal by the Superintendent for incompetence,
8neglect of duty, or malfeasance in office. The Executive
9Director shall be responsible for the supervision and direction
10of the Division staff and for the necessary administrative
11activities of the Division, subject only to the direction and
12approval of the Superintendent notwithstanding any law to the
13contrary.
14 Notwithstanding any law to the contrary, the Executive
15Director shall hire and employ employees as may be necessary to
16carry out the provisions of this Law or to perform the duties
17and exercise the powers conferred by law upon the Division. All
18employees of the Division shall receive the compensation fixed
19by the Executive Director, subject only to the Superintendent.
20The Superintendent, Executive Director, and Division employees
21shall be reimbursed for all actual and necessary traveling and
22other expenses and disbursements necessarily incurred or made
23by them in the discharge of their official duties. The
24Superintendent and Executive Director may also incur necessary
25expenses for office space, furniture, stationery, printing,
26operations, and other incidental expenses.

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1 The Executive Director shall report monthly to the
2Superintendent and the Lottery Control Board a full and
3complete statement of Internet gaming revenues, other expenses
4for each month, and the amounts to be transferred to the State
5Lottery Fund pursuant to this Section. The Executive Director
6shall also make an annual report, which shall include a full
7and complete statement of Internet gaming revenues and other
8expenses, to the Superintendent, the Governor, and the Board.
9All reports required by this subsection shall be public and
10copies of all such reports shall be sent to the Speaker of the
11House of Representatives, the President of the Senate, the
12Minority Leader of the House of Representatives, and the
13Minority Leader of the Senate.
14 Subject to appropriation, the Executive Director shall
15continue to apprise himself or herself as to: (i) the operation
16and the administration of similar Internet gaming laws that may
17be in effect in other states or countries; (ii) any relevant
18literature on Internet gaming that from time to time may be
19published or available; (iii) any federal laws and regulations
20that may affect the operation of Internet gaming; and (iv) the
21reaction of Illinois citizens to existing and potential
22features of Internet gaming with a view to recommending or
23effecting changes that will tend to serve the purposes of this
24Section.
25 (j) An Internet gaming licensee's Internet gaming platform
26shall provide one or more mechanisms to reasonably verify that

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1a participant is 21 years of age or older and that wagering on
2Internet games is limited to transactions that are initiated
3and received or otherwise made exclusively within the State of
4Illinois. A participant must satisfy the verification
5requirements before he or she may establish an Internet gaming
6account and wager on Internet games offered by Internet gaming
7licensees. Further, all servers on which any Internet games are
8operated and conducted (and all underlying material
9technology) shall be located in the State of Illinois, unless
10the Division has otherwise authorized another location. At such
11a time that a legally compliant mechanism is established to
12permit wagering on Internet games by individuals physically
13located outside of the State, the Division may adopt rules and
14procedures to allow and govern wagering by those individuals
15and shall have the authority to enter into multijurisdictional
16agreements and related and ancillary agreements in order to
17effectuate such wagering. An Internet gaming licensee's
18Internet gaming platform shall also provide mechanisms
19designed to detect and prevent the unauthorized use of Internet
20wagering accounts and to detect and prevent fraud, money
21laundering, and collusion. If any participant in Internet
22gaming violates any provisions of this Section or rule adopted
23by the Division, then the participant's winnings shall be
24forfeited. Any forfeited winnings shall be deposited into the
25State Lottery Fund.
26 The following persons shall not be authorized to establish

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1Internet gaming accounts or wager on Internet games offered by
2Internet gaming licensees, except where required and
3authorized by the Division for testing purposes or to otherwise
4fulfill the purposes set forth in this Act: (i) any minor under
521 years of age; (ii) any current member of the Lottery Control
6Board; (iii) any current officer or other person employed by
7the Department of the Lottery, the Division of Internet Gaming,
8the Illinois Racing Board, or the Illinois Gaming Board; (iv)
9any spouse, civil union partner, child, brother, sister, or
10parent residing as a member of the same household in the
11principal place of abode of any persons identified in (ii) or
12(iii); and (iv) any individual whose name appears in the
13Division's responsible gaming database.
14 (k) The Division shall develop responsible gaming
15measures, including a statewide responsible gaming database
16identifying individuals who shall be prohibited from
17establishing an Internet wagering account or participating in
18Internet gaming offered by an Internet gaming licensee. The
19Executive Director may place a person on the responsible gaming
20database if that person (i) has been convicted in any
21jurisdiction of a felony, any crime of moral turpitude, or a
22crime involving gaming; (ii) has violated this Act, the
23Illinois Horse Racing Act of 1975, the Riverboat Gambling Act,
24the Raffles Act, the Illinois Pull Tabs and Jar Games Act, the
25Bingo License and Tax Act, the Charitable Games Act, or the
26Video Gaming Act; (iii) has performed any act or had a

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1notorious or unsavory reputation that would adversely affect
2public confidence and trust in gaming; or (iv) has his or her
3name on any valid and current exclusion list from another
4jurisdiction in the United States or foreign jurisdiction. By
5rule, the Division shall adopt procedures for the establishment
6and maintenance of the responsible gaming database. The
7Illinois Gaming Board, the Illinois Racing Board, and the
8Department of the Lottery shall, in a format specified by the
9Division, provide the Division with names of individuals to be
10included in the responsible gaming database. The Division may
11impose reasonable fees on persons authorized to access and use
12the responsible gaming database.
13 An Internet gaming licensee's Internet gaming platform
14shall offer in a clear, conspicuous, and accessible manner,
15responsible gambling services and technical controls to
16participants, including both temporary and permanent
17self-exclusion for all games offered; the ability for
18participants to establish their own periodic deposit and
19wagering limits and maximum playing times; referrals to crisis
20counseling and referral services for individuals and families
21experiencing difficulty as a result of problem or compulsive
22gambling; and other services as the Division reasonably may
23determine are necessary or appropriate to reduce and prevent
24problem gambling. Any authorized participant who is allowed to
25participate in Internet gaming may voluntarily prohibit
26themselves from establishing an Internet gaming account. The

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1Division shall incorporate the voluntary self-exclusion list
2into the responsible gaming database and maintain both the
3self-exclusion list and the responsible gaming database in a
4confidential manner. Notwithstanding any law to the contrary,
5the self-exclusion list and responsible gaming database are not
6public records subject to copying and disclosure under the
7Freedom of Information Act.
8 (l) There is created the Responsible Internet Gaming
9Advisory Board, consisting of the following members:
10 (1) the Superintendent of the Lottery, who shall be an
11 ex officio member and shall serve as Chairperson;
12 (2) the Executive Director of the Division of Internet
13 Gaming, who shall be an ex officio member;
14 (3) one representative from a national organization
15 dedicated to the study and prevention of problem gambling,
16 appointed by the Superintendent;
17 (4) one member who is an academic professional engaged
18 in the study of problem gambling at a university or other
19 institution of higher learning, appointed by the
20 Superintendent;
21 (5) one member who has professional experience and
22 expertise in the field of technical and systemic controls
23 for responsible Internet gaming, appointed by the
24 Superintendent; and
25 (6) one member who is an Illinois citizen and a member
26 of the public, appointed by the Superintendent.

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1 Each Advisory Board member shall serve for a term of 4
2years and until his or her successor is appointed and
3qualified. However, in making initial appointments, 2 shall be
4appointed to serve for 2 years and 2 shall be appointed to
5serve for 4 years. Appointments to fill vacancies shall be made
6in the same manner as original appointments for the unexpired
7portion of the vacated term. Initial terms shall begin on the
8effective date of this amendatory Act of the 98th General
9Assembly. Each member of the Advisory Board shall be eligible
10for reappointment at the discretion of the Superintendent. A
11member of the Advisory Board may be removed from office for
12just cause. Advisory Board members shall receive no
13compensation, but shall be reimbursed for expenses incurred in
14connection with their duties as Advisory Board members.
15 Four members shall constitute a quorum. A majority vote of
16the Advisory Board is required for an Advisory Board decision.
17The Advisory Board shall meet no less often than once every 6
18months and shall meet as often as the Chairperson deems
19necessary. Advisory Board members shall not be liable for any
20of their acts, omissions, decisions, or any other conduct in
21connection with their duties on the Advisory Board, except
22those involving willful, wanton, or intentional misconduct.
23 The Advisory Board shall make recommendations to the
24Executive Director regarding the development of rules and
25procedures to reduce and prevent problem or compulsive gambling
26and youth gambling and to ensure the conduct of safe, fair, and

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1responsible Internet gaming. The Advisory Board may have such
2powers as may be granted by the Executive Director to carry out
3the provisions of this Section regarding responsible Internet
4gaming.
5 (m) A tax is hereby imposed on Internet gaming licensees,
6based on the gross gaming revenue received by an Internet
7gaming licensee from Internet games authorized pursuant to this
8Section, at the following rates:
9 (1) for all non-fee-based games, the tax shall be 20%
10 of annual gross non-fee-based gaming revenue; and
11 (2) for all fee-based games the tax shall be 15% of
12 annual gross fee-based gaming revenue.
13 The taxes imposed by this subsection (m) shall be paid by
14the Internet gaming licensee to the Division no later than 5:00
15p.m. on the day after the day when the wagers were made.
16 In recognition of the advance tax revenue paid by the
17Internet gaming licensee in its license fee, an Internet gaming
18licensee shall be taxed at the following rates during the
19initial 5-year license term:
20 (1) for all non-fee-based games, the tax shall be 10%
21 of annual gross non-fee-based gaming revenue up to and
22 including $200,000,000 of gross gaming revenue and 20% of
23 annual gross non-fee-based gaming revenue in excess
24 $200,000,000 of gross gaming revenue; and
25 (2) for all fee-based games, the tax shall be 7.5% of
26 annual gross fee-based gaming revenue up to and including

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1 $200,000,000 of gross gaming revenue and 15% of annual
2 gross fee-based gaming revenue in excess $200,000,000 of
3 gross gaming revenue.
4 (n) Beginning on the effective date of this amendatory Act
5of the 98th General Assembly, from the tax revenue deposited in
6the State Lottery Fund under this Section, $10,000,000 shall be
7paid annually to the Department of Human Services for the
8administration of programs to treat problem gambling.
9 (o) Beginning on the effective date of this amendatory Act
10of the 98th General Assembly, from the tax revenue deposited in
11the State Lottery Fund under this Section, $5,000,000 shall be
12transferred into the State Fairgrounds Capital Improvements
13Fund annually.
14 (p) Beginning on the effective date of this amendatory Act
15of the 98th General Assembly, after the amounts specified in
16subsections (n) and (o) have been paid or transferred, all
17remaining tax revenue deposited in the State Lottery Fund
18pursuant to this Section shall be transferred to the Pension
19Stabilization Fund.
20 (20 ILCS 1605/9.1)
21 Sec. 9.1. Private manager and management agreement.
22 (a) As used in this Section:
23 "Offeror" means a person or group of persons that responds
24to a request for qualifications under this Section.
25 "Request for qualifications" means all materials and

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1documents prepared by the Department to solicit the following
2from offerors:
3 (1) Statements of qualifications.
4 (2) Proposals to enter into a management agreement,
5 including the identity of any prospective vendor or vendors
6 that the offeror intends to initially engage to assist the
7 offeror in performing its obligations under the management
8 agreement.
9 "Final offer" means the last proposal submitted by an
10offeror in response to the request for qualifications,
11including the identity of any prospective vendor or vendors
12that the offeror intends to initially engage to assist the
13offeror in performing its obligations under the management
14agreement.
15 "Final offeror" means the offeror ultimately selected by
16the Governor to be the private manager for the Lottery under
17subsection (h) of this Section.
18 (b) By September 15, 2010, the Governor shall select a
19private manager for the total management of the Lottery with
20integrated functions, such as lottery game design, supply of
21goods and services, and advertising and as specified in this
22Section.
23 (c) Pursuant to the terms of this subsection, the
24Department shall endeavor to expeditiously terminate the
25existing contracts in support of the Lottery in effect on the
26effective date of this amendatory Act of the 96th General

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1Assembly in connection with the selection of the private
2manager. As part of its obligation to terminate these contracts
3and select the private manager, the Department shall establish
4a mutually agreeable timetable to transfer the functions of
5existing contractors to the private manager so that existing
6Lottery operations are not materially diminished or impaired
7during the transition. To that end, the Department shall do the
8following:
9 (1) where such contracts contain a provision
10 authorizing termination upon notice, the Department shall
11 provide notice of termination to occur upon the mutually
12 agreed timetable for transfer of functions;
13 (2) upon the expiration of any initial term or renewal
14 term of the current Lottery contracts, the Department shall
15 not renew such contract for a term extending beyond the
16 mutually agreed timetable for transfer of functions; or
17 (3) in the event any current contract provides for
18 termination of that contract upon the implementation of a
19 contract with the private manager, the Department shall
20 perform all necessary actions to terminate the contract on
21 the date that coincides with the mutually agreed timetable
22 for transfer of functions.
23 If the contracts to support the current operation of the
24Lottery in effect on the effective date of this amendatory Act
25of the 96th General Assembly are not subject to termination as
26provided for in this subsection (c), then the Department may

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1include a provision in the contract with the private manager
2specifying a mutually agreeable methodology for incorporation.
3 (c-5) The Department shall include provisions in the
4management agreement whereby the private manager shall, for a
5fee, and pursuant to a contract negotiated with the Department
6(the "Employee Use Contract"), utilize the services of current
7Department employees to assist in the administration and
8operation of the Lottery. The Department shall be the employer
9of all such bargaining unit employees assigned to perform such
10work for the private manager, and such employees shall be State
11employees, as defined by the Personnel Code. Department
12employees shall operate under the same employment policies,
13rules, regulations, and procedures, as other employees of the
14Department. In addition, neither historical representation
15rights under the Illinois Public Labor Relations Act, nor
16existing collective bargaining agreements, shall be disturbed
17by the management agreement with the private manager for the
18management of the Lottery.
19 (d) The management agreement with the private manager shall
20include all of the following:
21 (1) A term not to exceed 10 years, including any
22 renewals.
23 (2) A provision specifying that the Department:
24 (A) shall exercise actual control over all
25 significant business decisions;
26 (A-5) has the authority to direct or countermand

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1 operating decisions by the private manager at any time;
2 (B) has ready access at any time to information
3 regarding Lottery operations;
4 (C) has the right to demand and receive information
5 from the private manager concerning any aspect of the
6 Lottery operations at any time; and
7 (D) retains ownership of all trade names,
8 trademarks, and intellectual property associated with
9 the Lottery.
10 (3) A provision imposing an affirmative duty on the
11 private manager to provide the Department with material
12 information and with any information the private manager
13 reasonably believes the Department would want to know to
14 enable the Department to conduct the Lottery.
15 (4) A provision requiring the private manager to
16 provide the Department with advance notice of any operating
17 decision that bears significantly on the public interest,
18 including, but not limited to, decisions on the kinds of
19 games to be offered to the public and decisions affecting
20 the relative risk and reward of the games being offered, so
21 the Department has a reasonable opportunity to evaluate and
22 countermand that decision.
23 (5) A provision providing for compensation of the
24 private manager that may consist of, among other things, a
25 fee for services and a performance based bonus as
26 consideration for managing the Lottery, including terms

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1 that may provide the private manager with an increase in
2 compensation if Lottery revenues grow by a specified
3 percentage in a given year.
4 (6) (Blank).
5 (7) A provision requiring the deposit of all Lottery
6 proceeds to be deposited into the State Lottery Fund except
7 as otherwise provided in Section 20 of this Act.
8 (8) A provision requiring the private manager to locate
9 its principal office within the State.
10 (8-5) A provision encouraging that at least 20% of the
11 cost of contracts entered into for goods and services by
12 the private manager in connection with its management of
13 the Lottery, other than contracts with sales agents or
14 technical advisors, be awarded to businesses that are a
15 minority owned business, a female owned business, or a
16 business owned by a person with disability, as those terms
17 are defined in the Business Enterprise for Minorities,
18 Females, and Persons with Disabilities Act.
19 (9) A requirement that so long as the private manager
20 complies with all the conditions of the agreement under the
21 oversight of the Department, the private manager shall have
22 the following duties and obligations with respect to the
23 management of the Lottery:
24 (A) The right to use equipment and other assets
25 used in the operation of the Lottery.
26 (B) The rights and obligations under contracts

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1 with retailers and vendors.
2 (C) The implementation of a comprehensive security
3 program by the private manager.
4 (D) The implementation of a comprehensive system
5 of internal audits.
6 (E) The implementation of a program by the private
7 manager to curb compulsive gambling by persons playing
8 the Lottery.
9 (F) A system for determining (i) the type of
10 Lottery games, (ii) the method of selecting winning
11 tickets, (iii) the manner of payment of prizes to
12 holders of winning tickets, (iv) the frequency of
13 drawings of winning tickets, (v) the method to be used
14 in selling tickets, (vi) a system for verifying the
15 validity of tickets claimed to be winning tickets,
16 (vii) the basis upon which retailer commissions are
17 established by the manager, and (viii) minimum
18 payouts.
19 (10) A requirement that advertising and promotion must
20 be consistent with Section 7.8a of this Act.
21 (11) A requirement that the private manager market the
22 Lottery to those residents who are new, infrequent, or
23 lapsed players of the Lottery, especially those who are
24 most likely to make regular purchases on the Internet as
25 permitted by law.
26 (12) A code of ethics for the private manager's

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1 officers and employees.
2 (13) A requirement that the Department monitor and
3 oversee the private manager's practices and take action
4 that the Department considers appropriate to ensure that
5 the private manager is in compliance with the terms of the
6 management agreement, while allowing the manager, unless
7 specifically prohibited by law or the management
8 agreement, to negotiate and sign its own contracts with
9 vendors.
10 (14) A provision requiring the private manager to
11 periodically file, at least on an annual basis, appropriate
12 financial statements in a form and manner acceptable to the
13 Department.
14 (15) Cash reserves requirements.
15 (16) Procedural requirements for obtaining the prior
16 approval of the Department when a management agreement or
17 an interest in a management agreement is sold, assigned,
18 transferred, or pledged as collateral to secure financing.
19 (17) Grounds for the termination of the management
20 agreement by the Department or the private manager.
21 (18) Procedures for amendment of the agreement.
22 (19) A provision requiring the private manager to
23 engage in an open and competitive bidding process for any
24 procurement having a cost in excess of $50,000 that is not
25 a part of the private manager's final offer. The process
26 shall favor the selection of a vendor deemed to have

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1 submitted a proposal that provides the Lottery with the
2 best overall value. The process shall not be subject to the
3 provisions of the Illinois Procurement Code, unless
4 specifically required by the management agreement.
5 (20) The transition of rights and obligations,
6 including any associated equipment or other assets used in
7 the operation of the Lottery, from the manager to any
8 successor manager of the lottery, including the
9 Department, following the termination of or foreclosure
10 upon the management agreement.
11 (21) Right of use of copyrights, trademarks, and
12 service marks held by the Department in the name of the
13 State. The agreement must provide that any use of them by
14 the manager shall only be for the purpose of fulfilling its
15 obligations under the management agreement during the term
16 of the agreement.
17 (22) The disclosure of any information requested by the
18 Department to enable it to comply with the reporting
19 requirements and information requests provided for under
20 subsection (p) of this Section.
21 (e) Notwithstanding any other law to the contrary, the
22Department shall select a private manager through a competitive
23request for qualifications process consistent with Section
2420-35 of the Illinois Procurement Code, which shall take into
25account:
26 (1) the offeror's ability to market the Lottery to

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1 those residents who are new, infrequent, or lapsed players
2 of the Lottery, especially those who are most likely to
3 make regular purchases on the Internet;
4 (2) the offeror's ability to address the State's
5 concern with the social effects of gambling on those who
6 can least afford to do so;
7 (3) the offeror's ability to provide the most
8 successful management of the Lottery for the benefit of the
9 people of the State based on current and past business
10 practices or plans of the offeror; and
11 (4) the offeror's poor or inadequate past performance
12 in servicing, equipping, operating or managing a lottery on
13 behalf of Illinois, another State or foreign government and
14 attracting persons who are not currently regular players of
15 a lottery.
16 (f) The Department may retain the services of an advisor or
17advisors with significant experience in financial services or
18the management, operation, and procurement of goods, services,
19and equipment for a government-run lottery to assist in the
20preparation of the terms of the request for qualifications and
21selection of the private manager. Any prospective advisor
22seeking to provide services under this subsection (f) shall
23disclose any material business or financial relationship
24during the past 3 years with any potential offeror, or with a
25contractor or subcontractor presently providing goods,
26services, or equipment to the Department to support the

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1Lottery. The Department shall evaluate the material business or
2financial relationship of each prospective advisor. The
3Department shall not select any prospective advisor with a
4substantial business or financial relationship that the
5Department deems to impair the objectivity of the services to
6be provided by the prospective advisor. During the course of
7the advisor's engagement by the Department, and for a period of
8one year thereafter, the advisor shall not enter into any
9business or financial relationship with any offeror or any
10vendor identified to assist an offeror in performing its
11obligations under the management agreement. Any advisor
12retained by the Department shall be disqualified from being an
13offeror. The Department shall not include terms in the request
14for qualifications that provide a material advantage whether
15directly or indirectly to any potential offeror, or any
16contractor or subcontractor presently providing goods,
17services, or equipment to the Department to support the
18Lottery, including terms contained in previous responses to
19requests for proposals or qualifications submitted to
20Illinois, another State or foreign government when those terms
21are uniquely associated with a particular potential offeror,
22contractor, or subcontractor. The request for proposals
23offered by the Department on December 22, 2008 as
24"LOT08GAMESYS" and reference number "22016176" is declared
25void.
26 (g) The Department shall select at least 2 offerors as

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1finalists to potentially serve as the private manager no later
2than August 9, 2010. Upon making preliminary selections, the
3Department shall schedule a public hearing on the finalists'
4proposals and provide public notice of the hearing at least 7
5calendar days before the hearing. The notice must include all
6of the following:
7 (1) The date, time, and place of the hearing.
8 (2) The subject matter of the hearing.
9 (3) A brief description of the management agreement to
10 be awarded.
11 (4) The identity of the offerors that have been
12 selected as finalists to serve as the private manager.
13 (5) The address and telephone number of the Department.
14 (h) At the public hearing, the Department shall (i) provide
15sufficient time for each finalist to present and explain its
16proposal to the Department and the Governor or the Governor's
17designee, including an opportunity to respond to questions
18posed by the Department, Governor, or designee and (ii) allow
19the public and non-selected offerors to comment on the
20presentations. The Governor or a designee shall attend the
21public hearing. After the public hearing, the Department shall
22have 14 calendar days to recommend to the Governor whether a
23management agreement should be entered into with a particular
24finalist. After reviewing the Department's recommendation, the
25Governor may accept or reject the Department's recommendation,
26and shall select a final offeror as the private manager by

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1publication of a notice in the Illinois Procurement Bulletin on
2or before September 15, 2010. The Governor shall include in the
3notice a detailed explanation and the reasons why the final
4offeror is superior to other offerors and will provide
5management services in a manner that best achieves the
6objectives of this Section. The Governor shall also sign the
7management agreement with the private manager.
8 (i) Any action to contest the private manager selected by
9the Governor under this Section must be brought within 7
10calendar days after the publication of the notice of the
11designation of the private manager as provided in subsection
12(h) of this Section.
13 (j) The Lottery shall remain, for so long as a private
14manager manages the Lottery in accordance with provisions of
15this Act, a Lottery conducted by the State, and the State shall
16not be authorized to sell or transfer the Lottery to a third
17party.
18 (k) Any tangible personal property used exclusively in
19connection with the lottery that is owned by the Department and
20leased to the private manager shall be owned by the Department
21in the name of the State and shall be considered to be public
22property devoted to an essential public and governmental
23function.
24 (l) The Department may exercise any of its powers under
25this Section or any other law as necessary or desirable for the
26execution of the Department's powers under this Section.

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1 (m) Neither this Section nor any management agreement
2entered into under this Section prohibits the General Assembly
3from authorizing forms of gambling that are not in direct
4competition with the Lottery. The forms of gambling authorized
5by this amendatory Act of the 98th General Assembly constitute
6authorized forms of gambling that are not in direct competition
7with the Lottery.
8 (n) The private manager shall be subject to a complete
9investigation in the third, seventh, and tenth years of the
10agreement (if the agreement is for a 10-year term) by the
11Department in cooperation with the Auditor General to determine
12whether the private manager has complied with this Section and
13the management agreement. The private manager shall bear the
14cost of an investigation or reinvestigation of the private
15manager under this subsection.
16 (o) The powers conferred by this Section are in addition
17and supplemental to the powers conferred by any other law. If
18any other law or rule is inconsistent with this Section,
19including, but not limited to, provisions of the Illinois
20Procurement Code, then this Section controls as to any
21management agreement entered into under this Section. This
22Section and any rules adopted under this Section contain full
23and complete authority for a management agreement between the
24Department and a private manager. No law, procedure,
25proceeding, publication, notice, consent, approval, order, or
26act by the Department or any other officer, Department, agency,

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1or instrumentality of the State or any political subdivision is
2required for the Department to enter into a management
3agreement under this Section. This Section contains full and
4complete authority for the Department to approve any contracts
5entered into by a private manager with a vendor providing
6goods, services, or both goods and services to the private
7manager under the terms of the management agreement, including
8subcontractors of such vendors.
9 Upon receipt of a written request from the Chief
10Procurement Officer, the Department shall provide to the Chief
11Procurement Officer a complete and un-redacted copy of the
12management agreement or any contract that is subject to the
13Department's approval authority under this subsection (o). The
14Department shall provide a copy of the agreement or contract to
15the Chief Procurement Officer in the time specified by the
16Chief Procurement Officer in his or her written request, but no
17later than 5 business days after the request is received by the
18Department. The Chief Procurement Officer must retain any
19portions of the management agreement or of any contract
20designated by the Department as confidential, proprietary, or
21trade secret information in complete confidence pursuant to
22subsection (g) of Section 7 of the Freedom of Information Act.
23The Department shall also provide the Chief Procurement Officer
24with reasonable advance written notice of any contract that is
25pending Department approval.
26 Notwithstanding any other provision of this Section to the

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1contrary, the Chief Procurement Officer shall adopt
2administrative rules, including emergency rules, to establish
3a procurement process to select a successor private manager if
4a private management agreement has been terminated. The
5selection process shall at a minimum take into account the
6criteria set forth in items (1) through (4) of subsection (e)
7of this Section and may include provisions consistent with
8subsections (f), (g), (h), and (i) of this Section. The Chief
9Procurement Officer shall also implement and administer the
10adopted selection process upon the termination of a private
11management agreement. The Department, after the Chief
12Procurement Officer certifies that the procurement process has
13been followed in accordance with the rules adopted under this
14subsection (o), shall select a final offeror as the private
15manager and sign the management agreement with the private
16manager.
17 Except as provided in Sections 21.2, 21.5, 21.6, 21.7, and
1821.8, the Department shall distribute all proceeds of lottery
19tickets and shares sold in the following priority and manner:
20 (1) The payment of prizes and retailer bonuses.
21 (2) The payment of costs incurred in the operation and
22 administration of the Lottery, including the payment of
23 sums due to the private manager under the management
24 agreement with the Department.
25 (3) On the last day of each month or as soon thereafter
26 as possible, the State Comptroller shall direct and the

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1 State Treasurer shall transfer from the State Lottery Fund
2 to the Common School Fund an amount that is equal to the
3 proceeds transferred in the corresponding month of fiscal
4 year 2009, as adjusted for inflation, to the Common School
5 Fund.
6 (4) On or before the last day of each fiscal year,
7 deposit any remaining proceeds, subject to payments under
8 items (1), (2), and (3) into the Capital Projects Fund each
9 fiscal year.
10 (p) The Department shall be subject to the following
11reporting and information request requirements:
12 (1) the Department shall submit written quarterly
13 reports to the Governor and the General Assembly on the
14 activities and actions of the private manager selected
15 under this Section;
16 (2) upon request of the Chief Procurement Officer, the
17 Department shall promptly produce information related to
18 the procurement activities of the Department and the
19 private manager requested by the Chief Procurement
20 Officer; the Chief Procurement Officer must retain
21 confidential, proprietary, or trade secret information
22 designated by the Department in complete confidence
23 pursuant to subsection (g) of Section 7 of the Freedom of
24 Information Act; and
25 (3) at least 30 days prior to the beginning of the
26 Department's fiscal year, the Department shall prepare an

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1 annual written report on the activities of the private
2 manager selected under this Section and deliver that report
3 to the Governor and General Assembly.
4(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
5eff. 12-23-09; 97-464, eff. 8-19-11; revised 10-17-12.)
6 Section 90-10. The Department of Revenue Law of the Civil
7Administrative Code of Illinois is amended by changing Section
82505-305 as follows:
9 (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)
10 Sec. 2505-305. Investigators.
11 (a) The Department has the power to appoint investigators
12to conduct all investigations, searches, seizures, arrests,
13and other duties imposed under the provisions of any law
14administered by the Department. Except as provided in
15subsection (c), these investigators have and may exercise all
16the powers of peace officers solely for the purpose of
17enforcing taxing measures administered by the Department.
18 (b) The Director must authorize to each investigator
19employed under this Section and to any other employee of the
20Department exercising the powers of a peace officer a distinct
21badge that, on its face, (i) clearly states that the badge is
22authorized by the Department and (ii) contains a unique
23identifying number. No other badge shall be authorized by the
24Department.

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1 (c) The Department may enter into agreements with the
2Illinois Gaming Board providing that investigators appointed
3under this Section shall exercise the peace officer powers set
4forth in paragraph (20.6) of subsection (c) of Section 5 of the
5Illinois Riverboat Gambling Act.
6(Source: P.A. 96-37, eff. 7-13-09.)
7 Section 90-12. The Illinois State Auditing Act is amended
8by changing Section 3-1 as follows:
9 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
10 Sec. 3-1. Jurisdiction of Auditor General. The Auditor
11General has jurisdiction over all State agencies to make post
12audits and investigations authorized by or under this Act or
13the Constitution.
14 The Auditor General has jurisdiction over local government
15agencies and private agencies only:
16 (a) to make such post audits authorized by or under
17 this Act as are necessary and incidental to a post audit of
18 a State agency or of a program administered by a State
19 agency involving public funds of the State, but this
20 jurisdiction does not include any authority to review local
21 governmental agencies in the obligation, receipt,
22 expenditure or use of public funds of the State that are
23 granted without limitation or condition imposed by law,
24 other than the general limitation that such funds be used

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1 for public purposes;
2 (b) to make investigations authorized by or under this
3 Act or the Constitution; and
4 (c) to make audits of the records of local government
5 agencies to verify actual costs of state-mandated programs
6 when directed to do so by the Legislative Audit Commission
7 at the request of the State Board of Appeals under the
8 State Mandates Act.
9 In addition to the foregoing, the Auditor General may
10conduct an audit of the Metropolitan Pier and Exposition
11Authority, the Regional Transportation Authority, the Suburban
12Bus Division, the Commuter Rail Division and the Chicago
13Transit Authority and any other subsidized carrier when
14authorized by the Legislative Audit Commission. Such audit may
15be a financial, management or program audit, or any combination
16thereof.
17 The audit shall determine whether they are operating in
18accordance with all applicable laws and regulations. Subject to
19the limitations of this Act, the Legislative Audit Commission
20may by resolution specify additional determinations to be
21included in the scope of the audit.
22 In addition to the foregoing, the Auditor General must also
23conduct a financial audit of the Illinois Sports Facilities
24Authority's expenditures of public funds in connection with the
25reconstruction, renovation, remodeling, extension, or
26improvement of all or substantially all of any existing

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1"facility", as that term is defined in the Illinois Sports
2Facilities Authority Act.
3 The Auditor General may also conduct an audit, when
4authorized by the Legislative Audit Commission, of any hospital
5which receives 10% or more of its gross revenues from payments
6from the State of Illinois, Department of Healthcare and Family
7Services (formerly Department of Public Aid), Medical
8Assistance Program.
9 The Auditor General is authorized to conduct financial and
10compliance audits of the Illinois Distance Learning Foundation
11and the Illinois Conservation Foundation.
12 As soon as practical after the effective date of this
13amendatory Act of 1995, the Auditor General shall conduct a
14compliance and management audit of the City of Chicago and any
15other entity with regard to the operation of Chicago O'Hare
16International Airport, Chicago Midway Airport and Merrill C.
17Meigs Field. The audit shall include, but not be limited to, an
18examination of revenues, expenses, and transfers of funds;
19purchasing and contracting policies and practices; staffing
20levels; and hiring practices and procedures. When completed,
21the audit required by this paragraph shall be distributed in
22accordance with Section 3-14.
23 The Auditor General shall conduct a financial and
24compliance and program audit of distributions from the
25Municipal Economic Development Fund during the immediately
26preceding calendar year pursuant to Section 8-403.1 of the

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1Public Utilities Act at no cost to the city, village, or
2incorporated town that received the distributions.
3 The Auditor General must conduct an audit of the Health
4Facilities and Services Review Board pursuant to Section 19.5
5of the Illinois Health Facilities Planning Act.
6 The Auditor General must conduct an audit of the Chicago
7Casino Development Authority pursuant to Section 1-60 of the
8Chicago Casino Development Authority Act.
9 The Auditor General of the State of Illinois shall annually
10conduct or cause to be conducted a financial and compliance
11audit of the books and records of any county water commission
12organized pursuant to the Water Commission Act of 1985 and
13shall file a copy of the report of that audit with the Governor
14and the Legislative Audit Commission. The filed audit shall be
15open to the public for inspection. The cost of the audit shall
16be charged to the county water commission in accordance with
17Section 6z-27 of the State Finance Act. The county water
18commission shall make available to the Auditor General its
19books and records and any other documentation, whether in the
20possession of its trustees or other parties, necessary to
21conduct the audit required. These audit requirements apply only
22through July 1, 2007.
23 The Auditor General must conduct audits of the Rend Lake
24Conservancy District as provided in Section 25.5 of the River
25Conservancy Districts Act.
26 The Auditor General must conduct financial audits of the

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1Southeastern Illinois Economic Development Authority as
2provided in Section 70 of the Southeastern Illinois Economic
3Development Authority Act.
4 The Auditor General shall conduct a compliance audit in
5accordance with subsections (d) and (f) of Section 30 of the
6Innovation Development and Economy Act.
7(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
896-939, eff. 6-24-10.)
9 Section 90-15. The State Finance Act is amended by adding
10Sections 5.826, 5.829, 6z-98, and 6z-99 as follows:
11 (30 ILCS 105/5.826 new)
12 Sec. 5.826. The Gaming Facilities Fee Revenue Fund.
13 (30 ILCS 105/5.829 new)
14 Sec. 5.829. The State Fairgrounds Capital Improvement
15Fund.
16 (30 ILCS 105/6z-98 new)
17 Sec. 6z-98. The Gaming Facilities Fee Revenue Fund.
18 (a) The Gaming Facilities Fee Revenue Fund is created as a
19special fund in the State treasury.
20 (b) The revenues in the Fund shall be used, subject to
21appropriation, by the Comptroller for the purpose of (i)
22providing appropriations to the Illinois Gaming Board for the

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

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1improvements to the Illinois State Fairgrounds in Sangamon
2County, including, but not limited to, track surfaces (main
3track and practice track), grandstands, audio and visual
4systems, paddocks and barns and associated surface areas,
5restroom facilities on the backstretch, and roadway surfaces
6around the racing facility. The State Fairgrounds Capital
7Improvement Fund is not subject to administrative chargebacks,
8including, but not limited to, those authorized under Section
98h of the State Finance Act.
10 Section 90-17. The Illinois Procurement Code is amended by
11changing Section 1-10 as follows:
12 (30 ILCS 500/1-10)
13 Sec. 1-10. Application.
14 (a) This Code applies only to procurements for which
15contractors were first solicited on or after July 1, 1998. This
16Code shall not be construed to affect or impair any contract,
17or any provision of a contract, entered into based on a
18solicitation prior to the implementation date of this Code as
19described in Article 99, including but not limited to any
20covenant entered into with respect to any revenue bonds or
21similar instruments. All procurements for which contracts are
22solicited between the effective date of Articles 50 and 99 and
23July 1, 1998 shall be substantially in accordance with this
24Code and its intent.

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1 (b) This Code shall apply regardless of the source of the
2funds with which the contracts are paid, including federal
3assistance moneys. This Code shall not apply to:
4 (1) Contracts between the State and its political
5 subdivisions or other governments, or between State
6 governmental bodies except as specifically provided in
7 this Code.
8 (2) Grants, except for the filing requirements of
9 Section 20-80.
10 (3) Purchase of care.
11 (4) Hiring of an individual as employee and not as an
12 independent contractor, whether pursuant to an employment
13 code or policy or by contract directly with that
14 individual.
15 (5) Collective bargaining contracts.
16 (6) Purchase of real estate, except that notice of this
17 type of contract with a value of more than $25,000 must be
18 published in the Procurement Bulletin within 7 days after
19 the deed is recorded in the county of jurisdiction. The
20 notice shall identify the real estate purchased, the names
21 of all parties to the contract, the value of the contract,
22 and the effective date of the contract.
23 (7) Contracts necessary to prepare for anticipated
24 litigation, enforcement actions, or investigations,
25 provided that the chief legal counsel to the Governor shall
26 give his or her prior approval when the procuring agency is

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1 one subject to the jurisdiction of the Governor, and
2 provided that the chief legal counsel of any other
3 procuring entity subject to this Code shall give his or her
4 prior approval when the procuring entity is not one subject
5 to the jurisdiction of the Governor.
6 (8) Contracts for services to Northern Illinois
7 University by a person, acting as an independent
8 contractor, who is qualified by education, experience, and
9 technical ability and is selected by negotiation for the
10 purpose of providing non-credit educational service
11 activities or products by means of specialized programs
12 offered by the university.
13 (9) Procurement expenditures by the Illinois
14 Conservation Foundation when only private funds are used.
15 (10) Procurement expenditures by the Illinois Health
16 Information Exchange Authority involving private funds
17 from the Health Information Exchange Fund. "Private funds"
18 means gifts, donations, and private grants.
19 (11) Public-private agreements entered into according
20 to the procurement requirements of Section 20 of the
21 Public-Private Partnerships for Transportation Act and
22 design-build agreements entered into according to the
23 procurement requirements of Section 25 of the
24 Public-Private Partnerships for Transportation Act.
25 (c) This Code does not apply to the electric power
26procurement process provided for under Section 1-75 of the

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1Illinois Power Agency Act and Section 16-111.5 of the Public
2Utilities Act.
3 (d) Except for Section 20-160 and Article 50 of this Code,
4and as expressly required by Section 9.1 of the Illinois
5Lottery Law, the provisions of this Code do not apply to the
6procurement process provided for under Section 9.1 of the
7Illinois Lottery Law. In addition, except for Section 20-160
8and Article 50 of this Code, the provisions of this Code also
9do not apply to contracts and subcontracts awarded pursuant to
10Section 7.18 of the Illinois Lottery Law.
11 (e) This Code does not apply to the process used by the
12Capital Development Board to retain a person or entity to
13assist the Capital Development Board with its duties related to
14the determination of costs of a clean coal SNG brownfield
15facility, as defined by Section 1-10 of the Illinois Power
16Agency Act, as required in subsection (h-3) of Section 9-220 of
17the Public Utilities Act, including calculating the range of
18capital costs, the range of operating and maintenance costs, or
19the sequestration costs or monitoring the construction of clean
20coal SNG brownfield facility for the full duration of
21construction.
22 (f) This Code does not apply to the process used by the
23Illinois Power Agency to retain a mediator to mediate sourcing
24agreement disputes between gas utilities and the clean coal SNG
25brownfield facility, as defined in Section 1-10 of the Illinois
26Power Agency Act, as required under subsection (h-1) of Section

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19-220 of the Public Utilities Act.
2 (g) This Code does not apply to the processes used by the
3Illinois Power Agency to retain a mediator to mediate contract
4disputes between gas utilities and the clean coal SNG facility
5and to retain an expert to assist in the review of contracts
6under subsection (h) of Section 9-220 of the Public Utilities
7Act. This Code does not apply to the process used by the
8Illinois Commerce Commission to retain an expert to assist in
9determining the actual incurred costs of the clean coal SNG
10facility and the reasonableness of those costs as required
11under subsection (h) of Section 9-220 of the Public Utilities
12Act.
13 (h) This Code does not apply to the process to procure or
14contracts entered into in accordance with Sections 11-5.2 and
1511-5.3 of the Illinois Public Aid Code.
16 (i) (h) Each chief procurement officer may access records
17necessary to review whether a contract, purchase, or other
18expenditure is or is not subject to the provisions of this
19Code, unless such records would be subject to attorney-client
20privilege.
21(Source: P.A. 96-840, eff. 12-23-09; 96-1331, eff. 7-27-10;
2297-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-502, eff. 8-23-11;
2397-689, eff. 6-14-12; 97-813, eff. 7-13-12; 97-895, eff.
248-3-12; revised 8-23-12.)
25 Section 90-20. The Illinois Income Tax Act is amended by

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1changing Sections 201, 303, 304 and 710 as follows:
2 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
3 Sec. 201. Tax Imposed.
4 (a) In general. A tax measured by net income is hereby
5imposed on every individual, corporation, trust and estate for
6each taxable year ending after July 31, 1969 on the privilege
7of earning or receiving income in or as a resident of this
8State. Such tax shall be in addition to all other occupation or
9privilege taxes imposed by this State or by any municipal
10corporation or political subdivision thereof.
11 (b) Rates. The tax imposed by subsection (a) of this
12Section shall be determined as follows, except as adjusted by
13subsection (d-1):
14 (1) In the case of an individual, trust or estate, for
15 taxable years ending prior to July 1, 1989, an amount equal
16 to 2 1/2% of the taxpayer's net income for the taxable
17 year.
18 (2) In the case of an individual, trust or estate, for
19 taxable years beginning prior to July 1, 1989 and ending
20 after June 30, 1989, an amount equal to the sum of (i) 2
21 1/2% of the taxpayer's net income for the period prior to
22 July 1, 1989, as calculated under Section 202.3, and (ii)
23 3% of the taxpayer's net income for the period after June
24 30, 1989, as calculated under Section 202.3.
25 (3) In the case of an individual, trust or estate, for

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1 taxable years beginning after June 30, 1989, and ending
2 prior to January 1, 2011, an amount equal to 3% of the
3 taxpayer's net income for the taxable year.
4 (4) In the case of an individual, trust, or estate, for
5 taxable years beginning prior to January 1, 2011, and
6 ending after December 31, 2010, an amount equal to the sum
7 of (i) 3% of the taxpayer's net income for the period prior
8 to January 1, 2011, as calculated under Section 202.5, and
9 (ii) 5% of the taxpayer's net income for the period after
10 December 31, 2010, as calculated under Section 202.5.
11 (5) In the case of an individual, trust, or estate, for
12 taxable years beginning on or after January 1, 2011, and
13 ending prior to January 1, 2015, an amount equal to 5% of
14 the taxpayer's net income for the taxable year.
15 (5.1) In the case of an individual, trust, or estate,
16 for taxable years beginning prior to January 1, 2015, and
17 ending after December 31, 2014, an amount equal to the sum
18 of (i) 5% of the taxpayer's net income for the period prior
19 to January 1, 2015, as calculated under Section 202.5, and
20 (ii) 3.75% of the taxpayer's net income for the period
21 after December 31, 2014, as calculated under Section 202.5.
22 (5.2) In the case of an individual, trust, or estate,
23 for taxable years beginning on or after January 1, 2015,
24 and ending prior to January 1, 2025, an amount equal to
25 3.75% of the taxpayer's net income for the taxable year.
26 (5.3) In the case of an individual, trust, or estate,

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1 for taxable years beginning prior to January 1, 2025, and
2 ending after December 31, 2024, an amount equal to the sum
3 of (i) 3.75% of the taxpayer's net income for the period
4 prior to January 1, 2025, as calculated under Section
5 202.5, and (ii) 3.25% of the taxpayer's net income for the
6 period after December 31, 2024, as calculated under Section
7 202.5.
8 (5.4) In the case of an individual, trust, or estate,
9 for taxable years beginning on or after January 1, 2025, an
10 amount equal to 3.25% of the taxpayer's net income for the
11 taxable year.
12 (6) In the case of a corporation, for taxable years
13 ending prior to July 1, 1989, an amount equal to 4% of the
14 taxpayer's net income for the taxable year.
15 (7) In the case of a corporation, for taxable years
16 beginning prior to July 1, 1989 and ending after June 30,
17 1989, an amount equal to the sum of (i) 4% of the
18 taxpayer's net income for the period prior to July 1, 1989,
19 as calculated under Section 202.3, and (ii) 4.8% of the
20 taxpayer's net income for the period after June 30, 1989,
21 as calculated under Section 202.3.
22 (8) In the case of a corporation, for taxable years
23 beginning after June 30, 1989, and ending prior to January
24 1, 2011, an amount equal to 4.8% of the taxpayer's net
25 income for the taxable year.
26 (9) In the case of a corporation, for taxable years

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1 beginning prior to January 1, 2011, and ending after
2 December 31, 2010, an amount equal to the sum of (i) 4.8%
3 of the taxpayer's net income for the period prior to
4 January 1, 2011, as calculated under Section 202.5, and
5 (ii) 7% of the taxpayer's net income for the period after
6 December 31, 2010, as calculated under Section 202.5.
7 (10) In the case of a corporation, for taxable years
8 beginning on or after January 1, 2011, and ending prior to
9 January 1, 2015, an amount equal to 7% of the taxpayer's
10 net income for the taxable year.
11 (11) In the case of a corporation, for taxable years
12 beginning prior to January 1, 2015, and ending after
13 December 31, 2014, an amount equal to the sum of (i) 7% of
14 the taxpayer's net income for the period prior to January
15 1, 2015, as calculated under Section 202.5, and (ii) 5.25%
16 of the taxpayer's net income for the period after December
17 31, 2014, as calculated under Section 202.5.
18 (12) In the case of a corporation, for taxable years
19 beginning on or after January 1, 2015, and ending prior to
20 January 1, 2025, an amount equal to 5.25% of the taxpayer's
21 net income for the taxable year.
22 (13) In the case of a corporation, for taxable years
23 beginning prior to January 1, 2025, and ending after
24 December 31, 2024, an amount equal to the sum of (i) 5.25%
25 of the taxpayer's net income for the period prior to
26 January 1, 2025, as calculated under Section 202.5, and

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1 (ii) 4.8% of the taxpayer's net income for the period after
2 December 31, 2024, as calculated under Section 202.5.
3 (14) In the case of a corporation, for taxable years
4 beginning on or after January 1, 2025, an amount equal to
5 4.8% of the taxpayer's net income for the taxable year.
6 The rates under this subsection (b) are subject to the
7provisions of Section 201.5.
8 (b-5) Surcharge; sale or exchange of assets, properties,
9and intangibles of electronic gaming licensees. For each of
10taxable years 2013 through 2021, a surcharge is imposed on all
11taxpayers on income arising from the sale or exchange of
12capital assets, depreciable business property, real property
13used in the trade or business, and Section 197 intangibles (i)
14of an organization licensee under the Illinois Horse Racing Act
15of 1975 and (ii) of an electronic gaming licensee under the
16Illinois Gambling Act. The amount of the surcharge is equal to
17the amount of federal income tax liability for the taxable year
18attributable to those sales and exchanges. The surcharge
19imposed shall not apply if:
20 (1) the electronic gaming license, organization
21 license, or race track property is transferred as a result
22 of any of the following:
23 (A) bankruptcy, a receivership, or a debt
24 adjustment initiated by or against the initial
25 licensee or the substantial owners of the initial
26 licensee;

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1 (B) cancellation, revocation, or termination of
2 any such license by the Illinois Gaming Board or the
3 Illinois Racing Board;
4 (C) a determination by the Illinois Gaming Board
5 that transfer of the license is in the best interests
6 of Illinois gaming;
7 (D) the death of an owner of the equity interest in
8 a licensee;
9 (E) the acquisition of a controlling interest in
10 the stock or substantially all of the assets of a
11 publicly traded company;
12 (F) a transfer by a parent company to a wholly
13 owned subsidiary; or
14 (G) the transfer or sale to or by one person to
15 another person where both persons were initial owners
16 of the license when the license was issued; or
17 (2) the controlling interest in the electronic gaming
18 license, organization license, or race track property is
19 transferred in a transaction to lineal descendants in which
20 no gain or loss is recognized or as a result of a
21 transaction in accordance with Section 351 of the Internal
22 Revenue Code in which no gain or loss is recognized; or
23 (3) live horse racing was not conducted in 2011 under a
24 license issued pursuant to the Illinois Horse Racing Act of
25 1975.
26 The transfer of an electronic gaming license, organization

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1license, or race track property by a person other than the
2initial licensee to receive the electronic gaming license is
3not subject to a surcharge. The Department shall adopt rules
4necessary to implement and administer this subsection.
5 (b-10) Surcharge; sale or exchange of an Internet gaming
6license. For each of taxable years 2013 through 2023, a
7surcharge is imposed on all taxpayers on income arising from
8the sale or exchange of an Internet gaming license issued by
9the Division of Internet Gaming of the Department of the
10Lottery. The amount of the surcharge is equal to the federal
11tax liability attributable to such sale or exchange or
12$10,000,000, whichever is greater. The surcharge imposed shall
13not apply if:
14 (1) the Internet gaming license is transferred as a
15 result of any of the following:
16 (A) bankruptcy, a receivership, assignment for the
17 benefit of creditors, or a debt adjustment initiated by
18 or against the initial Internet gaming licensee or a
19 majority owner of the initial licensee;
20 (B) cancellation, revocation, or termination of
21 any such license by the Division of Internet Gaming; or
22 (D) the transfer or sale to or by one person to
23 another person where both persons were initial owners
24 of the license when the license was issued;
25 (2) after a public hearing, a determination is made by
26 the Superintendent of the Lottery, subject to the approval

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1 of the Governor, that transfer of the license and exemption
2 from the surcharge is in the best interest of Illinois
3 gaming; this exception may be further defined by rules
4 adopted by the Division of Internet Gaming; or
5 (3) the controlling interest in the Internet gaming
6 license is transferred in a transaction to lineal
7 descendants in which no gain or loss is recognized or as a
8 result of a transaction in accordance with Section 351 of
9 the Internal Revenue Code in which no gain or loss is
10 recognized.
11 The Department shall adopt rules necessary to implement and
12administer this subsection.
13 (c) Personal Property Tax Replacement Income Tax.
14Beginning on July 1, 1979 and thereafter, in addition to such
15income tax, there is also hereby imposed the Personal Property
16Tax Replacement Income Tax measured by net income on every
17corporation (including Subchapter S corporations), partnership
18and trust, for each taxable year ending after June 30, 1979.
19Such taxes are imposed on the privilege of earning or receiving
20income in or as a resident of this State. The Personal Property
21Tax Replacement Income Tax shall be in addition to the income
22tax imposed by subsections (a) and (b) of this Section and in
23addition to all other occupation or privilege taxes imposed by
24this State or by any municipal corporation or political
25subdivision thereof.
26 (d) Additional Personal Property Tax Replacement Income

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1Tax Rates. The personal property tax replacement income tax
2imposed by this subsection and subsection (c) of this Section
3in the case of a corporation, other than a Subchapter S
4corporation and except as adjusted by subsection (d-1), shall
5be an additional amount equal to 2.85% of such taxpayer's net
6income for the taxable year, except that beginning on January
71, 1981, and thereafter, the rate of 2.85% specified in this
8subsection shall be reduced to 2.5%, and in the case of a
9partnership, trust or a Subchapter S corporation shall be an
10additional amount equal to 1.5% of such taxpayer's net income
11for the taxable year.
12 (d-1) Rate reduction for certain foreign insurers. In the
13case of a foreign insurer, as defined by Section 35A-5 of the
14Illinois Insurance Code, whose state or country of domicile
15imposes on insurers domiciled in Illinois a retaliatory tax
16(excluding any insurer whose premiums from reinsurance assumed
17are 50% or more of its total insurance premiums as determined
18under paragraph (2) of subsection (b) of Section 304, except
19that for purposes of this determination premiums from
20reinsurance do not include premiums from inter-affiliate
21reinsurance arrangements), beginning with taxable years ending
22on or after December 31, 1999, the sum of the rates of tax
23imposed by subsections (b) and (d) shall be reduced (but not
24increased) to the rate at which the total amount of tax imposed
25under this Act, net of all credits allowed under this Act,
26shall equal (i) the total amount of tax that would be imposed

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

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1 and (d).
2 (2) Any reduction in the rates of tax imposed by this
3 subsection shall be applied first against the rates imposed
4 by subsection (b) and only after the tax imposed by
5 subsection (a) net of all credits allowed under this
6 Section other than the credit allowed under subsection (i)
7 has been reduced to zero, against the rates imposed by
8 subsection (d).
9 This subsection (d-1) is exempt from the provisions of
10Section 250.
11 (e) Investment credit. A taxpayer shall be allowed a credit
12against the Personal Property Tax Replacement Income Tax for
13investment in qualified property.
14 (1) A taxpayer shall be allowed a credit equal to .5%
15 of the basis of qualified property placed in service during
16 the taxable year, provided such property is placed in
17 service on or after July 1, 1984. There shall be allowed an
18 additional credit equal to .5% of the basis of qualified
19 property placed in service during the taxable year,
20 provided such property is placed in service on or after
21 July 1, 1986, and the taxpayer's base employment within
22 Illinois has increased by 1% or more over the preceding
23 year as determined by the taxpayer's employment records
24 filed with the Illinois Department of Employment Security.
25 Taxpayers who are new to Illinois shall be deemed to have
26 met the 1% growth in base employment for the first year in

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1 which they file employment records with the Illinois
2 Department of Employment Security. The provisions added to
3 this Section by Public Act 85-1200 (and restored by Public
4 Act 87-895) shall be construed as declaratory of existing
5 law and not as a new enactment. If, in any year, the
6 increase in base employment within Illinois over the
7 preceding year is less than 1%, the additional credit shall
8 be limited to that percentage times a fraction, the
9 numerator of which is .5% and the denominator of which is
10 1%, but shall not exceed .5%. The investment credit shall
11 not be allowed to the extent that it would reduce a
12 taxpayer's liability in any tax year below zero, nor may
13 any credit for qualified property be allowed for any year
14 other than the year in which the property was placed in
15 service in Illinois. For tax years ending on or after
16 December 31, 1987, and on or before December 31, 1988, the
17 credit shall be allowed for the tax year in which the
18 property is placed in service, or, if the amount of the
19 credit exceeds the tax liability for that year, whether it
20 exceeds the original liability or the liability as later
21 amended, such excess may be carried forward and applied to
22 the tax liability of the 5 taxable years following the
23 excess credit years if the taxpayer (i) makes investments
24 which cause the creation of a minimum of 2,000 full-time
25 equivalent jobs in Illinois, (ii) is located in an
26 enterprise zone established pursuant to the Illinois

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1 Enterprise Zone Act and (iii) is certified by the
2 Department of Commerce and Community Affairs (now
3 Department of Commerce and Economic Opportunity) as
4 complying with the requirements specified in clause (i) and
5 (ii) by July 1, 1986. The Department of Commerce and
6 Community Affairs (now Department of Commerce and Economic
7 Opportunity) shall notify the Department of Revenue of all
8 such certifications immediately. For tax years ending
9 after December 31, 1988, the credit shall be allowed for
10 the tax year in which the property is placed in service,
11 or, if the amount of the credit exceeds the tax liability
12 for that year, whether it exceeds the original liability or
13 the liability as later amended, such excess may be carried
14 forward and applied to the tax liability of the 5 taxable
15 years following the excess credit years. The credit shall
16 be applied to the earliest year for which there is a
17 liability. If there is credit from more than one tax year
18 that is available to offset a liability, earlier credit
19 shall be applied first.
20 (2) The term "qualified property" means property
21 which:
22 (A) is tangible, whether new or used, including
23 buildings and structural components of buildings and
24 signs that are real property, but not including land or
25 improvements to real property that are not a structural
26 component of a building such as landscaping, sewer

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1 lines, local access roads, fencing, parking lots, and
2 other appurtenances;
3 (B) is depreciable pursuant to Section 167 of the
4 Internal Revenue Code, except that "3-year property"
5 as defined in Section 168(c)(2)(A) of that Code is not
6 eligible for the credit provided by this subsection
7 (e);
8 (C) is acquired by purchase as defined in Section
9 179(d) of the Internal Revenue Code;
10 (D) is used in Illinois by a taxpayer who is
11 primarily engaged in manufacturing, or in mining coal
12 or fluorite, or in retailing, or was placed in service
13 on or after July 1, 2006 in a River Edge Redevelopment
14 Zone established pursuant to the River Edge
15 Redevelopment Zone Act; and
16 (E) has not previously been used in Illinois in
17 such a manner and by such a person as would qualify for
18 the credit provided by this subsection (e) or
19 subsection (f).
20 (3) For purposes of this subsection (e),
21 "manufacturing" means the material staging and production
22 of tangible personal property by procedures commonly
23 regarded as manufacturing, processing, fabrication, or
24 assembling which changes some existing material into new
25 shapes, new qualities, or new combinations. For purposes of
26 this subsection (e) the term "mining" shall have the same

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1 meaning as the term "mining" in Section 613(c) of the
2 Internal Revenue Code. For purposes of this subsection (e),
3 the term "retailing" means the sale of tangible personal
4 property for use or consumption and not for resale, or
5 services rendered in conjunction with the sale of tangible
6 personal property for use or consumption and not for
7 resale. For purposes of this subsection (e), "tangible
8 personal property" has the same meaning as when that term
9 is used in the Retailers' Occupation Tax Act, and, for
10 taxable years ending after December 31, 2008, does not
11 include the generation, transmission, or distribution of
12 electricity.
13 (4) The basis of qualified property shall be the basis
14 used to compute the depreciation deduction for federal
15 income tax purposes.
16 (5) If the basis of the property for federal income tax
17 depreciation purposes is increased after it has been placed
18 in service in Illinois by the taxpayer, the amount of such
19 increase shall be deemed property placed in service on the
20 date of such increase in basis.
21 (6) The term "placed in service" shall have the same
22 meaning as under Section 46 of the Internal Revenue Code.
23 (7) If during any taxable year, any property ceases to
24 be qualified property in the hands of the taxpayer within
25 48 months after being placed in service, or the situs of
26 any qualified property is moved outside Illinois within 48

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1 months after being placed in service, the Personal Property
2 Tax Replacement Income Tax 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 (7), 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 (8) Unless the investment credit is extended by law,
14 the basis of qualified property shall not include costs
15 incurred after December 31, 2018, except for costs incurred
16 pursuant to a binding contract entered into on or before
17 December 31, 2018.
18 (9) Each taxable year ending before December 31, 2000,
19 a partnership may elect to pass through to its partners the
20 credits to which the partnership is entitled under this
21 subsection (e) for the taxable year. A partner may use the
22 credit allocated to him or her under this paragraph only
23 against the tax imposed in subsections (c) and (d) of this
24 Section. If the partnership makes that election, those
25 credits shall be allocated among the partners in the
26 partnership in accordance with the rules set forth in

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1 Section 704(b) of the Internal Revenue Code, and the rules
2 promulgated under that Section, and the allocated amount of
3 the credits shall be allowed to the partners for that
4 taxable year. The partnership shall make this election on
5 its Personal Property Tax Replacement Income Tax return for
6 that taxable year. The election to pass through the credits
7 shall be irrevocable.
8 For taxable years ending on or after December 31, 2000,
9 a partner that qualifies its partnership for a subtraction
10 under subparagraph (I) of paragraph (2) of subsection (d)
11 of Section 203 or a shareholder that qualifies a Subchapter
12 S corporation for a subtraction under subparagraph (S) of
13 paragraph (2) of subsection (b) of Section 203 shall be
14 allowed a credit under this subsection (e) equal to its
15 share of the credit earned under this subsection (e) during
16 the taxable year by the partnership or Subchapter S
17 corporation, determined in accordance with the
18 determination of income and distributive share of income
19 under Sections 702 and 704 and Subchapter S of the Internal
20 Revenue Code. This paragraph is exempt from the provisions
21 of Section 250.
22 (f) Investment credit; Enterprise Zone; River Edge
23Redevelopment Zone.
24 (1) A taxpayer shall be allowed a credit against the
25 tax imposed by subsections (a) and (b) of this Section for
26 investment in qualified property which is placed in service

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

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

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1 Redevelopment Zone by the taxpayer, the amount of such
2 increase shall be deemed property placed in service on the
3 date of such increase in basis.
4 (5) The term "placed in service" shall have the same
5 meaning as under Section 46 of the Internal Revenue Code.
6 (6) If during any taxable year, any property ceases to
7 be qualified property in the hands of the taxpayer within
8 48 months after being placed in service, or the situs of
9 any qualified property is moved outside the Enterprise Zone
10 or River Edge Redevelopment Zone within 48 months after
11 being placed in service, the tax imposed under subsections
12 (a) and (b) of this Section for such taxable year shall be
13 increased. Such increase shall be determined by (i)
14 recomputing the investment credit which would have been
15 allowed for the year in which credit for such property was
16 originally allowed by eliminating such property from such
17 computation, and (ii) subtracting such recomputed credit
18 from the amount of credit previously allowed. For the
19 purposes of this paragraph (6), a reduction of the basis of
20 qualified property resulting from a redetermination of the
21 purchase price shall be deemed a disposition of qualified
22 property to the extent of such reduction.
23 (7) There shall be allowed an additional credit equal
24 to 0.5% of the basis of qualified property placed in
25 service during the taxable year in a River Edge
26 Redevelopment Zone, provided such property is placed in

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1 service on or after July 1, 2006, and the taxpayer's base
2 employment within Illinois has increased by 1% or more over
3 the preceding year as determined by the taxpayer's
4 employment records filed with the Illinois Department of
5 Employment Security. Taxpayers who are new to Illinois
6 shall be deemed to have met the 1% growth in base
7 employment for the first year in which they file employment
8 records with the Illinois Department of Employment
9 Security. If, in any year, the increase in base employment
10 within Illinois over the preceding year is less than 1%,
11 the additional credit shall be limited to that percentage
12 times a fraction, the numerator of which is 0.5% and the
13 denominator of which is 1%, but shall not exceed 0.5%.
14 (g) Jobs Tax Credit; River Edge Redevelopment Zone and
15Foreign Trade Zone or Sub-Zone.
16 (1) A taxpayer conducting a trade or business, for
17 taxable years ending on or after December 31, 2006, in a
18 River Edge Redevelopment Zone or conducting a trade or
19 business in a federally designated Foreign Trade Zone or
20 Sub-Zone shall be allowed a credit against the tax imposed
21 by subsections (a) and (b) of this Section in the amount of
22 $500 per eligible employee hired to work in the zone during
23 the taxable year.
24 (2) To qualify for the credit:
25 (A) the taxpayer must hire 5 or more eligible
26 employees to work in a River Edge Redevelopment Zone or

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

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1 or Foreign Trade Zone or Sub-Zone. An employee is
2 employed in a federally designated Foreign Trade Zone
3 or Sub-Zone if his services are rendered there or it is
4 the base of operations for the services performed.
5 (D) A full-time employee working 30 or more hours
6 per week.
7 (4) For tax years ending on or after December 31, 1985
8 and prior to December 31, 1988, the credit shall be allowed
9 for the tax year in which the eligible employees are hired.
10 For tax years ending on or after December 31, 1988, the
11 credit shall be allowed for the tax year immediately
12 following the tax year in which the eligible employees are
13 hired. If the amount of the credit exceeds the tax
14 liability for that year, whether it exceeds the original
15 liability or the liability as later amended, such excess
16 may be carried forward and applied to the tax liability of
17 the 5 taxable years following the excess credit year. The
18 credit shall be applied to the earliest year for which
19 there is a liability. If there is credit from more than one
20 tax year that is available to offset a liability, earlier
21 credit shall be applied first.
22 (5) The Department of Revenue shall promulgate such
23 rules and regulations as may be deemed necessary to carry
24 out the purposes of this subsection (g).
25 (6) The credit shall be available for eligible
26 employees hired on or after January 1, 1986.

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1 (h) Investment credit; High Impact Business.
2 (1) Subject to subsections (b) and (b-5) of Section 5.5
3 of the Illinois Enterprise Zone Act, a taxpayer shall be
4 allowed a credit against the tax imposed by subsections (a)
5 and (b) of this Section for investment in qualified
6 property which is placed in service by a Department of
7 Commerce and Economic Opportunity designated High Impact
8 Business. The credit shall be .5% of the basis for such
9 property. The credit shall not be available (i) until the
10 minimum investments in qualified property set forth in
11 subdivision (a)(3)(A) of Section 5.5 of the Illinois
12 Enterprise Zone Act have been satisfied or (ii) until the
13 time authorized in subsection (b-5) of the Illinois
14 Enterprise Zone Act for entities designated as High Impact
15 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
16 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
17 Act, and shall not be allowed to the extent that it would
18 reduce a taxpayer's liability for the tax imposed by
19 subsections (a) and (b) of this Section to below zero. The
20 credit applicable to such investments shall be taken in the
21 taxable year in which such investments have been completed.
22 The credit for additional investments beyond the minimum
23 investment by a designated high impact business authorized
24 under subdivision (a)(3)(A) of Section 5.5 of the Illinois
25 Enterprise Zone Act shall be available only in the taxable
26 year in which the property is placed in service and shall

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

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1 179(d) of the Internal Revenue Code; and
2 (D) is not eligible for the Enterprise Zone
3 Investment Credit provided by subsection (f) of this
4 Section.
5 (3) The basis of qualified property shall be the basis
6 used to compute the depreciation deduction for federal
7 income tax purposes.
8 (4) If the basis of the property for federal income tax
9 depreciation purposes is increased after it has been placed
10 in service in a federally designated Foreign Trade Zone or
11 Sub-Zone located in Illinois by the taxpayer, the amount of
12 such increase shall be deemed property placed in service on
13 the date of such increase in basis.
14 (5) The term "placed in service" shall have the same
15 meaning as under Section 46 of the Internal Revenue Code.
16 (6) If during any taxable year ending on or before
17 December 31, 1996, any property ceases to be qualified
18 property in the hands of the taxpayer within 48 months
19 after being placed in service, or the situs of any
20 qualified property is moved outside Illinois within 48
21 months after being placed in service, the tax imposed under
22 subsections (a) and (b) of this Section for such taxable
23 year shall be increased. Such increase shall be determined
24 by (i) recomputing the investment credit which would have
25 been allowed for the year in which credit for such property
26 was originally allowed by eliminating such property from

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1 such computation, and (ii) subtracting such recomputed
2 credit from the amount of credit previously allowed. For
3 the purposes of this paragraph (6), a reduction of the
4 basis of qualified property resulting from a
5 redetermination of the purchase price shall be deemed a
6 disposition of qualified property to the extent of such
7 reduction.
8 (7) Beginning with tax years ending after December 31,
9 1996, if a taxpayer qualifies for the credit under this
10 subsection (h) and thereby is granted a tax abatement and
11 the taxpayer relocates its entire facility in violation of
12 the explicit terms and length of the contract under Section
13 18-183 of the Property Tax Code, the tax imposed under
14 subsections (a) and (b) of this Section shall be increased
15 for the taxable year in which the taxpayer relocated its
16 facility by an amount equal to the amount of credit
17 received by the taxpayer under this subsection (h).
18 (i) Credit for Personal Property Tax Replacement Income
19Tax. For tax years ending prior to December 31, 2003, a credit
20shall be allowed against the tax imposed by subsections (a) and
21(b) of this Section for the tax imposed by subsections (c) and
22(d) of this Section. This credit shall be computed by
23multiplying the tax imposed by subsections (c) and (d) of this
24Section by a fraction, the numerator of which is base income
25allocable to Illinois and the denominator of which is Illinois
26base income, and further multiplying the product by the tax

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1rate imposed by subsections (a) and (b) of this Section.
2 Any credit earned on or after December 31, 1986 under this
3subsection which is unused in the year the credit is computed
4because it exceeds the tax liability imposed by subsections (a)
5and (b) for that year (whether it exceeds the original
6liability or the liability as later amended) may be carried
7forward and applied to the tax liability imposed by subsections
8(a) and (b) of the 5 taxable years following the excess credit
9year, provided that no credit may be carried forward to any
10year ending on or after December 31, 2003. This credit shall be
11applied first to the earliest year for which there is a
12liability. If there is a credit under this subsection from more
13than one tax year that is available to offset a liability the
14earliest credit arising under this subsection shall be applied
15first.
16 If, during any taxable year ending on or after December 31,
171986, the tax imposed by subsections (c) and (d) of this
18Section for which a taxpayer has claimed a credit under this
19subsection (i) is reduced, the amount of credit for such tax
20shall also be reduced. Such reduction shall be determined by
21recomputing the credit to take into account the reduced tax
22imposed by subsections (c) and (d). If any portion of the
23reduced amount of credit has been carried to a different
24taxable year, an amended return shall be filed for such taxable
25year to reduce the amount of credit claimed.
26 (j) Training expense credit. Beginning with tax years

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1ending on or after December 31, 1986 and prior to December 31,
22003, a taxpayer shall be allowed a credit against the tax
3imposed by subsections (a) and (b) under this Section for all
4amounts paid or accrued, on behalf of all persons employed by
5the taxpayer in Illinois or Illinois residents employed outside
6of Illinois by a taxpayer, for educational or vocational
7training in semi-technical or technical fields or semi-skilled
8or skilled fields, which were deducted from gross income in the
9computation of taxable income. The credit against the tax
10imposed by subsections (a) and (b) shall be 1.6% of such
11training expenses. For partners, shareholders of subchapter S
12corporations, and owners of limited liability companies, if the
13liability company is treated as a partnership for purposes of
14federal and State income taxation, there shall be allowed a
15credit under this subsection (j) to be determined in accordance
16with the determination of income and distributive share of
17income under Sections 702 and 704 and subchapter S of the
18Internal Revenue Code.
19 Any credit allowed under this subsection which is unused in
20the year the credit is earned may be carried forward to each of
21the 5 taxable years following the year for which the credit is
22first computed until it is used. This credit shall be applied
23first to the earliest year for which there is a liability. If
24there is a credit under this subsection from more than one tax
25year that is available to offset a liability the earliest
26credit arising under this subsection shall be applied first. No

09800SB1739sam001- 160 -LRB098 10559 AMC 42403 a
1carryforward credit may be claimed in any tax year ending on or
2after December 31, 2003.
3 (k) Research and development credit. For tax years ending
4after July 1, 1990 and prior to December 31, 2003, and
5beginning again for tax years ending on or after December 31,
62004, and ending prior to January 1, 2016, a taxpayer shall be
7allowed a credit against the tax imposed by subsections (a) and
8(b) of this Section for increasing research activities in this
9State. The credit allowed against the tax imposed by
10subsections (a) and (b) shall be equal to 6 1/2% of the
11qualifying expenditures for increasing research activities in
12this State. For partners, shareholders of subchapter S
13corporations, and owners of limited liability companies, if the
14liability company is treated as a partnership for purposes of
15federal and State income taxation, there shall be allowed a
16credit under this subsection to be determined in accordance
17with the determination of income and distributive share of
18income under Sections 702 and 704 and subchapter S of the
19Internal Revenue Code.
20 For purposes of this subsection, "qualifying expenditures"
21means the qualifying expenditures as defined for the federal
22credit for increasing research activities which would be
23allowable under Section 41 of the Internal Revenue Code and
24which are conducted in this State, "qualifying expenditures for
25increasing research activities in this State" means the excess
26of qualifying expenditures for the taxable year in which

09800SB1739sam001- 161 -LRB098 10559 AMC 42403 a
1incurred over qualifying expenditures for the base period,
2"qualifying expenditures for the base period" means the average
3of the qualifying expenditures for each year in the base
4period, and "base period" means the 3 taxable years immediately
5preceding the taxable year for which the determination is being
6made.
7 Any credit in excess of the tax liability for the taxable
8year may be carried forward. A taxpayer may elect to have the
9unused credit shown on its final completed return carried over
10as a credit against the tax liability for the following 5
11taxable years or until it has been fully used, whichever occurs
12first; provided that no credit earned in a tax year ending
13prior to December 31, 2003 may be carried forward to any year
14ending on or after December 31, 2003.
15 If an unused credit is carried forward to a given year from
162 or more earlier years, that credit arising in the earliest
17year will be applied first against the tax liability for the
18given year. If a tax liability for the given year still
19remains, the credit from the next earliest year will then be
20applied, and so on, until all credits have been used or no tax
21liability for the given year remains. Any remaining unused
22credit or credits then will be carried forward to the next
23following year in which a tax liability is incurred, except
24that no credit can be carried forward to a year which is more
25than 5 years after the year in which the expense for which the
26credit is given was incurred.

09800SB1739sam001- 162 -LRB098 10559 AMC 42403 a
1 No inference shall be drawn from this amendatory Act of the
291st General Assembly in construing this Section for taxable
3years beginning before January 1, 1999.
4 (l) Environmental Remediation Tax Credit.
5 (i) For tax years ending after December 31, 1997 and on
6 or before December 31, 2001, a taxpayer shall be allowed a
7 credit against the tax imposed by subsections (a) and (b)
8 of this Section for certain amounts paid for unreimbursed
9 eligible remediation costs, as specified in this
10 subsection. For purposes of this Section, "unreimbursed
11 eligible remediation costs" means costs approved by the
12 Illinois Environmental Protection Agency ("Agency") under
13 Section 58.14 of the Environmental Protection Act that were
14 paid in performing environmental remediation at a site for
15 which a No Further Remediation Letter was issued by the
16 Agency and recorded under Section 58.10 of the
17 Environmental Protection Act. The credit must be claimed
18 for the taxable year in which Agency approval of the
19 eligible remediation costs is granted. The credit is not
20 available to any taxpayer if the taxpayer or any related
21 party caused or contributed to, in any material respect, a
22 release of regulated substances on, in, or under the site
23 that was identified and addressed by the remedial action
24 pursuant to the Site Remediation Program of the
25 Environmental Protection Act. After the Pollution Control
26 Board rules are adopted pursuant to the Illinois

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1 Administrative Procedure Act for the administration and
2 enforcement of Section 58.9 of the Environmental
3 Protection Act, determinations as to credit availability
4 for purposes of this Section shall be made consistent with
5 those rules. For purposes of this Section, "taxpayer"
6 includes a person whose tax attributes the taxpayer has
7 succeeded to under Section 381 of the Internal Revenue Code
8 and "related party" includes the persons disallowed a
9 deduction for losses by paragraphs (b), (c), and (f)(1) of
10 Section 267 of the Internal Revenue Code by virtue of being
11 a related taxpayer, as well as any of its partners. The
12 credit allowed against the tax imposed by subsections (a)
13 and (b) shall be equal to 25% of the unreimbursed eligible
14 remediation costs in excess of $100,000 per site, except
15 that the $100,000 threshold shall not apply to any site
16 contained in an enterprise zone as determined by the
17 Department of Commerce and Community Affairs (now
18 Department of Commerce and Economic Opportunity). The
19 total credit allowed shall not exceed $40,000 per year with
20 a maximum total of $150,000 per site. For partners and
21 shareholders of subchapter S corporations, there shall be
22 allowed a credit under this subsection to be determined in
23 accordance with the determination of income and
24 distributive share of income under Sections 702 and 704 and
25 subchapter S of the Internal Revenue Code.
26 (ii) A credit allowed under this subsection that is

09800SB1739sam001- 164 -LRB098 10559 AMC 42403 a
1 unused in the year the credit is earned may be carried
2 forward to each of the 5 taxable years following the year
3 for which the credit is first earned until it is used. The
4 term "unused credit" does not include any amounts of
5 unreimbursed eligible remediation costs in excess of the
6 maximum credit per site authorized under paragraph (i).
7 This credit shall be applied first to the earliest year for
8 which there is a liability. If there is a credit under this
9 subsection from more than one tax year that is available to
10 offset a liability, the earliest credit arising under this
11 subsection shall be applied first. A credit allowed under
12 this subsection may be sold to a buyer as part of a sale of
13 all or part of the remediation site for which the credit
14 was granted. The purchaser of a remediation site and the
15 tax credit shall succeed to the unused credit and remaining
16 carry-forward period of the seller. To perfect the
17 transfer, the assignor shall record the transfer in the
18 chain of title for the site and provide written notice to
19 the Director of the Illinois Department of Revenue of the
20 assignor's intent to sell the remediation site and the
21 amount of the tax credit to be transferred as a portion of
22 the sale. In no event may a credit be transferred to any
23 taxpayer if the taxpayer or a related party would not be
24 eligible under the provisions of subsection (i).
25 (iii) For purposes of this Section, the term "site"
26 shall have the same meaning as under Section 58.2 of the

09800SB1739sam001- 165 -LRB098 10559 AMC 42403 a
1 Environmental Protection Act.
2 (m) Education expense credit. Beginning with tax years
3ending after December 31, 1999, a taxpayer who is the custodian
4of one or more qualifying pupils shall be allowed a credit
5against the tax imposed by subsections (a) and (b) of this
6Section for qualified education expenses incurred on behalf of
7the qualifying pupils. The credit shall be equal to 25% of
8qualified education expenses, but in no event may the total
9credit under this subsection claimed by a family that is the
10custodian of qualifying pupils exceed $500. In no event shall a
11credit under this subsection reduce the taxpayer's liability
12under this Act to less than zero. This subsection is exempt
13from the provisions of Section 250 of this Act.
14 For purposes of this subsection:
15 "Qualifying pupils" means individuals who (i) are
16residents of the State of Illinois, (ii) are under the age of
1721 at the close of the school year for which a credit is
18sought, and (iii) during the school year for which a credit is
19sought were full-time pupils enrolled in a kindergarten through
20twelfth grade education program at any school, as defined in
21this subsection.
22 "Qualified education expense" means the amount incurred on
23behalf of a qualifying pupil in excess of $250 for tuition,
24book fees, and lab fees at the school in which the pupil is
25enrolled during the regular school year.
26 "School" means any public or nonpublic elementary or

09800SB1739sam001- 166 -LRB098 10559 AMC 42403 a
1secondary school in Illinois that is in compliance with Title
2VI of the Civil Rights Act of 1964 and attendance at which
3satisfies the requirements of Section 26-1 of the School Code,
4except that nothing shall be construed to require a child to
5attend any particular public or nonpublic school to qualify for
6the credit under this Section.
7 "Custodian" means, with respect to qualifying pupils, an
8Illinois resident who is a parent, the parents, a legal
9guardian, or the legal guardians of the qualifying pupils.
10 (n) River Edge Redevelopment Zone site remediation tax
11credit.
12 (i) For tax years ending on or after December 31, 2006,
13 a taxpayer shall be allowed a credit against the tax
14 imposed by subsections (a) and (b) of this Section for
15 certain amounts paid for unreimbursed eligible remediation
16 costs, as specified in this subsection. For purposes of
17 this Section, "unreimbursed eligible remediation costs"
18 means costs approved by the Illinois Environmental
19 Protection Agency ("Agency") under Section 58.14a of the
20 Environmental Protection Act that were paid in performing
21 environmental remediation at a site within a River Edge
22 Redevelopment Zone for which a No Further Remediation
23 Letter was issued by the Agency and recorded under Section
24 58.10 of the Environmental Protection Act. The credit must
25 be claimed for the taxable year in which Agency approval of
26 the eligible remediation costs is granted. The credit is

09800SB1739sam001- 167 -LRB098 10559 AMC 42403 a
1 not available to any taxpayer if the taxpayer or any
2 related party caused or contributed to, in any material
3 respect, a release of regulated substances on, in, or under
4 the site that was identified and addressed by the remedial
5 action pursuant to the Site Remediation Program of the
6 Environmental Protection Act. Determinations as to credit
7 availability for purposes of this Section shall be made
8 consistent with rules adopted by the Pollution Control
9 Board pursuant to the Illinois Administrative Procedure
10 Act for the administration and enforcement of Section 58.9
11 of the Environmental Protection Act. For purposes of this
12 Section, "taxpayer" includes a person whose tax attributes
13 the taxpayer has succeeded to under Section 381 of the
14 Internal Revenue Code and "related party" includes the
15 persons disallowed a deduction for losses by paragraphs
16 (b), (c), and (f)(1) of Section 267 of the Internal Revenue
17 Code by virtue of being a related taxpayer, as well as any
18 of its partners. The credit allowed against the tax imposed
19 by subsections (a) and (b) shall be equal to 25% of the
20 unreimbursed eligible remediation costs in excess of
21 $100,000 per site.
22 (ii) A credit allowed under this subsection that is
23 unused in the year the credit is earned may be carried
24 forward to each of the 5 taxable years following the year
25 for which the credit is first earned until it is used. This
26 credit shall be applied first to the earliest year for

09800SB1739sam001- 168 -LRB098 10559 AMC 42403 a
1 which there is a liability. If there is a credit under this
2 subsection from more than one tax year that is available to
3 offset a liability, the earliest credit arising under this
4 subsection shall be applied first. A credit allowed under
5 this subsection may be sold to a buyer as part of a sale of
6 all or part of the remediation site for which the credit
7 was granted. The purchaser of a remediation site and the
8 tax credit shall succeed to the unused credit and remaining
9 carry-forward period of the seller. To perfect the
10 transfer, the assignor shall record the transfer in the
11 chain of title for the site and provide written notice to
12 the Director of the Illinois Department of Revenue of the
13 assignor's intent to sell the remediation site and the
14 amount of the tax credit to be transferred as a portion of
15 the sale. In no event may a credit be transferred to any
16 taxpayer if the taxpayer or a related party would not be
17 eligible under the provisions of subsection (i).
18 (iii) For purposes of this Section, the term "site"
19 shall have the same meaning as under Section 58.2 of the
20 Environmental Protection Act.
21(Source: P.A. 96-115, eff. 7-31-09; 96-116, eff. 7-31-09;
2296-937, eff. 6-23-10; 96-1000, eff. 7-2-10; 96-1496, eff.
231-13-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, eff.
248-7-12.)
25 (35 ILCS 5/303) (from Ch. 120, par. 3-303)

09800SB1739sam001- 169 -LRB098 10559 AMC 42403 a
1 Sec. 303. (a) In general. Any item of capital gain or loss,
2and any item of income from rents or royalties from real or
3tangible personal property, interest, dividends, and patent or
4copyright royalties, and prizes awarded under the Illinois
5Lottery Law, and, for taxable years ending on or after December
631, 2013, wagering and gambling winnings from Illinois sources
7as set forth in subsection (e-1) of this Section, to the extent
8such item constitutes nonbusiness income, together with any
9item of deduction directly allocable thereto, shall be
10allocated by any person other than a resident as provided in
11this Section.
12 (b) Capital gains and losses.
13 (1) Real property. Capital gains and losses from sales
14 or exchanges of real property are allocable to this State
15 if the property is located in this State.
16 (2) Tangible personal property. Capital gains and
17 losses from sales or exchanges of tangible personal
18 property are allocable to this State if, at the time of
19 such sale or exchange:
20 (A) The property had its situs in this State; or
21 (B) The taxpayer had its commercial domicile in
22 this State and was not taxable in the state in which
23 the property had its situs.
24 (3) Intangibles. Capital gains and losses from sales or
25 exchanges of intangible personal property are allocable to
26 this State if the taxpayer had its commercial domicile in

09800SB1739sam001- 170 -LRB098 10559 AMC 42403 a
1 this State at the time of such sale or exchange.
2 (c) Rents and royalties.
3 (1) Real property. Rents and royalties from real
4 property are allocable to this State if the property is
5 located in this State.
6 (2) Tangible personal property. Rents and royalties
7 from tangible personal property are allocable to this
8 State:
9 (A) If and to the extent that the property is
10 utilized in this State; or
11 (B) In their entirety if, at the time such rents or
12 royalties were paid or accrued, the taxpayer had its
13 commercial domicile in this State and was not organized
14 under the laws of or taxable with respect to such rents
15 or royalties in the state in which the property was
16 utilized. The extent of utilization of tangible
17 personal property in a state is determined by
18 multiplying the rents or royalties derived from such
19 property by a fraction, the numerator of which is the
20 number of days of physical location of the property in
21 the state during the rental or royalty period in the
22 taxable year and the denominator of which is the number
23 of days of physical location of the property everywhere
24 during all rental or royalty periods in the taxable
25 year. If the physical location of the property during
26 the rental or royalty period is unknown or

09800SB1739sam001- 171 -LRB098 10559 AMC 42403 a
1 unascertainable by the taxpayer, tangible personal
2 property is utilized in the state in which the property
3 was located at the time the rental or royalty payer
4 obtained possession.
5 (d) Patent and copyright royalties.
6 (1) Allocation. Patent and copyright royalties are
7 allocable to this State:
8 (A) If and to the extent that the patent or
9 copyright is utilized by the payer in this State; or
10 (B) If and to the extent that the patent or
11 copyright is utilized by the payer in a state in which
12 the taxpayer is not taxable with respect to such
13 royalties and, at the time such royalties were paid or
14 accrued, the taxpayer had its commercial domicile in
15 this State.
16 (2) Utilization.
17 (A) A patent is utilized in a state to the extent
18 that it is employed in production, fabrication,
19 manufacturing or other processing in the state or to
20 the extent that a patented product is produced in the
21 state. If the basis of receipts from patent royalties
22 does not permit allocation to states or if the
23 accounting procedures do not reflect states of
24 utilization, the patent is utilized in this State if
25 the taxpayer has its commercial domicile in this State.
26 (B) A copyright is utilized in a state to the

09800SB1739sam001- 172 -LRB098 10559 AMC 42403 a
1 extent that printing or other publication originates
2 in the state. If the basis of receipts from copyright
3 royalties does not permit allocation to states or if
4 the accounting procedures do not reflect states of
5 utilization, the copyright is utilized in this State if
6 the taxpayer has its commercial domicile in this State.
7 (e) Illinois lottery prizes. Prizes awarded under the
8"Illinois Lottery Law", approved December 14, 1973, are
9allocable to this State.
10 (e-1) Wagering and gambling winnings. Payments received in
11taxable years ending on or after December 31, 2013 of winnings
12from pari-mutuel wagering conducted at a wagering facility
13licensed under the Illinois Horse Racing Act of 1975 and from
14gambling games conducted on a riverboat or in a casino or
15electronic gaming facility licensed under the Illinois
16Gambling Act are allocable to this State.
17 (e-5) Unemployment benefits. Unemployment benefits paid by
18the Illinois Department of Employment Security are allocable to
19this State.
20 (f) Taxability in other state. For purposes of allocation
21of income pursuant to this Section, a taxpayer is taxable in
22another state if:
23 (1) In that state he is subject to a net income tax, a
24 franchise tax measured by net income, a franchise tax for
25 the privilege of doing business, or a corporate stock tax;
26 or

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1 (2) That state has jurisdiction to subject the taxpayer
2 to a net income tax regardless of whether, in fact, the
3 state does or does not.
4 (g) Cross references.
5 (1) For allocation of interest and dividends by persons
6 other than residents, see Section 301(c)(2).
7 (2) For allocation of nonbusiness income by residents,
8 see Section 301(a).
9(Source: P.A. 97-709, eff. 7-1-12.)
10 (35 ILCS 5/304) (from Ch. 120, par. 3-304)
11 Sec. 304. Business income of persons other than residents.
12 (a) In general. The business income of a person other than
13a resident shall be allocated to this State if such person's
14business income is derived solely from this State. If a person
15other than a resident derives business income from this State
16and one or more other states, then, for tax years ending on or
17before December 30, 1998, and except as otherwise provided by
18this Section, such person's business income shall be
19apportioned to this State by multiplying the income by a
20fraction, the numerator of which is the sum of the property
21factor (if any), the payroll factor (if any) and 200% of the
22sales factor (if any), and the denominator of which is 4
23reduced by the number of factors other than the sales factor
24which have a denominator of zero and by an additional 2 if the
25sales factor has a denominator of zero. For tax years ending on

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1or after December 31, 1998, and except as otherwise provided by
2this Section, persons other than residents who derive business
3income from this State and one or more other states shall
4compute their apportionment factor by weighting their
5property, payroll, and sales factors as provided in subsection
6(h) of this Section.
7 (1) Property factor.
8 (A) The property factor is a fraction, the numerator of
9 which is the average value of the person's real and
10 tangible personal property owned or rented and used in the
11 trade or business in this State during the taxable year and
12 the denominator of which is the average value of all the
13 person's real and tangible personal property owned or
14 rented and used in the trade or business during the taxable
15 year.
16 (B) Property owned by the person is valued at its
17 original cost. Property rented by the person is valued at 8
18 times the net annual rental rate. Net annual rental rate is
19 the annual rental rate paid by the person less any annual
20 rental rate received by the person from sub-rentals.
21 (C) The average value of property shall be determined
22 by averaging the values at the beginning and ending of the
23 taxable year but the Director may require the averaging of
24 monthly values during the taxable year if reasonably
25 required to reflect properly the average value of the
26 person's property.

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1 (2) Payroll factor.
2 (A) The payroll factor is a fraction, the numerator of
3 which is the total amount paid in this State during the
4 taxable year by the person for compensation, and the
5 denominator of which is the total compensation paid
6 everywhere during the taxable year.
7 (B) Compensation is paid in this State if:
8 (i) The individual's service is performed entirely
9 within this State;
10 (ii) The individual's service is performed both
11 within and without this State, but the service
12 performed without this State is incidental to the
13 individual's service performed within this State; or
14 (iii) Some of the service is performed within this
15 State and either the base of operations, or if there is
16 no base of operations, the place from which the service
17 is directed or controlled is within this State, or the
18 base of operations or the place from which the service
19 is directed or controlled is not in any state in which
20 some part of the service is performed, but the
21 individual's residence is in this State.
22 (iv) Compensation paid to nonresident professional
23 athletes.
24 (a) General. The Illinois source income of a
25 nonresident individual who is a member of a
26 professional athletic team includes the portion of the

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1 individual's total compensation for services performed
2 as a member of a professional athletic team during the
3 taxable year which the number of duty days spent within
4 this State performing services for the team in any
5 manner during the taxable year bears to the total
6 number of duty days spent both within and without this
7 State during the taxable year.
8 (b) Travel days. Travel days that do not involve
9 either a game, practice, team meeting, or other similar
10 team event are not considered duty days spent in this
11 State. However, such travel days are considered in the
12 total duty days spent both within and without this
13 State.
14 (c) Definitions. For purposes of this subpart
15 (iv):
16 (1) The term "professional athletic team"
17 includes, but is not limited to, any professional
18 baseball, basketball, football, soccer, or hockey
19 team.
20 (2) The term "member of a professional
21 athletic team" includes those employees who are
22 active players, players on the disabled list, and
23 any other persons required to travel and who travel
24 with and perform services on behalf of a
25 professional athletic team on a regular basis.
26 This includes, but is not limited to, coaches,

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1 managers, and trainers.
2 (3) Except as provided in items (C) and (D) of
3 this subpart (3), the term "duty days" means all
4 days during the taxable year from the beginning of
5 the professional athletic team's official
6 pre-season training period through the last game
7 in which the team competes or is scheduled to
8 compete. Duty days shall be counted for the year in
9 which they occur, including where a team's
10 official pre-season training period through the
11 last game in which the team competes or is
12 scheduled to compete, occurs during more than one
13 tax year.
14 (A) Duty days shall also include days on
15 which a member of a professional athletic team
16 performs service for a team on a date that does
17 not fall within the foregoing period (e.g.,
18 participation in instructional leagues, the
19 "All Star Game", or promotional "caravans").
20 Performing a service for a professional
21 athletic team includes conducting training and
22 rehabilitation activities, when such
23 activities are conducted at team facilities.
24 (B) Also included in duty days are game
25 days, practice days, days spent at team
26 meetings, promotional caravans, preseason

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1 training camps, and days served with the team
2 through all post-season games in which the team
3 competes or is scheduled to compete.
4 (C) Duty days for any person who joins a
5 team during the period from the beginning of
6 the professional athletic team's official
7 pre-season training period through the last
8 game in which the team competes, or is
9 scheduled to compete, shall begin on the day
10 that person joins the team. Conversely, duty
11 days for any person who leaves a team during
12 this period shall end on the day that person
13 leaves the team. Where a person switches teams
14 during a taxable year, a separate duty-day
15 calculation shall be made for the period the
16 person was with each team.
17 (D) Days for which a member of a
18 professional athletic team is not compensated
19 and is not performing services for the team in
20 any manner, including days when such member of
21 a professional athletic team has been
22 suspended without pay and prohibited from
23 performing any services for the team, shall not
24 be treated as duty days.
25 (E) Days for which a member of a
26 professional athletic team is on the disabled

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

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1 strike benefits, severance pay, termination pay,
2 contract or option year buy-out payments,
3 expansion or relocation payments, or any other
4 payments not related to services performed for the
5 team.
6 For purposes of this subparagraph, "bonuses"
7 included in "total compensation for services
8 performed as a member of a professional athletic
9 team" subject to the allocation described in
10 Section 302(c)(1) are: bonuses earned as a result
11 of play (i.e., performance bonuses) during the
12 season, including bonuses paid for championship,
13 playoff or "bowl" games played by a team, or for
14 selection to all-star league or other honorary
15 positions; and bonuses paid for signing a
16 contract, unless the payment of the signing bonus
17 is not conditional upon the signee playing any
18 games for the team or performing any subsequent
19 services for the team or even making the team, the
20 signing bonus is payable separately from the
21 salary and any other compensation, and the signing
22 bonus is nonrefundable.
23 (3) Sales factor.
24 (A) The sales factor is a fraction, the numerator of
25 which is the total sales of the person in this State during
26 the taxable year, and the denominator of which is the total

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1 sales of the person everywhere during the taxable year.
2 (B) Sales of tangible personal property are in this
3 State if:
4 (i) The property is delivered or shipped to a
5 purchaser, other than the United States government,
6 within this State regardless of the f. o. b. point or
7 other conditions of the sale; or
8 (ii) The property is shipped from an office, store,
9 warehouse, factory or other place of storage in this
10 State and either the purchaser is the United States
11 government or the person is not taxable in the state of
12 the purchaser; provided, however, that premises owned
13 or leased by a person who has independently contracted
14 with the seller for the printing of newspapers,
15 periodicals or books shall not be deemed to be an
16 office, store, warehouse, factory or other place of
17 storage for purposes of this Section. Sales of tangible
18 personal property are not in this State if the seller
19 and purchaser would be members of the same unitary
20 business group but for the fact that either the seller
21 or purchaser is a person with 80% or more of total
22 business activity outside of the United States and the
23 property is purchased for resale.
24 (B-1) Patents, copyrights, trademarks, and similar
25 items of intangible personal property.
26 (i) Gross receipts from the licensing, sale, or

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1 other disposition of a patent, copyright, trademark,
2 or similar item of intangible personal property, other
3 than gross receipts governed by paragraph (B-7) of this
4 item (3), are in this State to the extent the item is
5 utilized in this State during the year the gross
6 receipts are included in gross income.
7 (ii) Place of utilization.
8 (I) A patent is utilized in a state to the
9 extent that it is employed in production,
10 fabrication, manufacturing, or other processing in
11 the state or to the extent that a patented product
12 is produced in the state. If a patent is utilized
13 in more than one state, the extent to which it is
14 utilized in any one state shall be a fraction equal
15 to the gross receipts of the licensee or purchaser
16 from sales or leases of items produced,
17 fabricated, manufactured, or processed within that
18 state using the patent and of patented items
19 produced within that state, divided by the total of
20 such gross receipts for all states in which the
21 patent is utilized.
22 (II) A copyright is utilized in a state to the
23 extent that printing or other publication
24 originates in the state. If a copyright 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

09800SB1739sam001- 183 -LRB098 10559 AMC 42403 a
1 to the gross receipts from sales or licenses of
2 materials printed or published in that state
3 divided by the total of such gross receipts for all
4 states in which the copyright is utilized.
5 (III) Trademarks and other items of intangible
6 personal property governed by this paragraph (B-1)
7 are utilized in the state in which the commercial
8 domicile of the licensee or purchaser is located.
9 (iii) If the state of utilization of an item of
10 property governed by this paragraph (B-1) cannot be
11 determined from the taxpayer's books and records or
12 from the books and records of any person related to the
13 taxpayer within the meaning of Section 267(b) of the
14 Internal Revenue Code, 26 U.S.C. 267, the gross
15 receipts attributable to that item shall be excluded
16 from both the numerator and the denominator of the
17 sales factor.
18 (B-2) Gross receipts from the license, sale, or other
19 disposition of patents, copyrights, trademarks, and
20 similar items of intangible personal property, other than
21 gross receipts governed by paragraph (B-7) of this item
22 (3), may be included in the numerator or denominator of the
23 sales factor only if gross receipts from licenses, sales,
24 or other disposition of such items comprise more than 50%
25 of the taxpayer's total gross receipts included in gross
26 income during the tax year and during each of the 2

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1 immediately preceding tax years; provided that, when a
2 taxpayer is a member of a unitary business group, such
3 determination shall be made on the basis of the gross
4 receipts of the entire unitary business group.
5 (B-5) For taxable years ending on or after December 31,
6 2008, except as provided in subsections (ii) through (vii),
7 receipts from the sale of telecommunications service or
8 mobile telecommunications service are in this State if the
9 customer's service address is in this State.
10 (i) For purposes of this subparagraph (B-5), the
11 following terms have the following meanings:
12 "Ancillary services" means services that are
13 associated with or incidental to the provision of
14 "telecommunications services", including but not
15 limited to "detailed telecommunications billing",
16 "directory assistance", "vertical service", and "voice
17 mail services".
18 "Air-to-Ground Radiotelephone service" means a
19 radio service, as that term is defined in 47 CFR 22.99,
20 in which common carriers are authorized to offer and
21 provide radio telecommunications service for hire to
22 subscribers in aircraft.
23 "Call-by-call Basis" means any method of charging
24 for telecommunications services where the price is
25 measured by individual calls.
26 "Communications Channel" means a physical or

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1 virtual path of communications over which signals are
2 transmitted between or among customer channel
3 termination points.
4 "Conference bridging service" means an "ancillary
5 service" that links two or more participants of an
6 audio or video conference call and may include the
7 provision of a telephone number. "Conference bridging
8 service" does not include the "telecommunications
9 services" used to reach the conference bridge.
10 "Customer Channel Termination Point" means the
11 location where the customer either inputs or receives
12 the communications.
13 "Detailed telecommunications billing service"
14 means an "ancillary service" of separately stating
15 information pertaining to individual calls on a
16 customer's billing statement.
17 "Directory assistance" means an "ancillary
18 service" of providing telephone number information,
19 and/or address information.
20 "Home service provider" means the facilities based
21 carrier or reseller with which the customer contracts
22 for the provision of mobile telecommunications
23 services.
24 "Mobile telecommunications service" means
25 commercial mobile radio service, as defined in Section
26 20.3 of Title 47 of the Code of Federal Regulations as

09800SB1739sam001- 186 -LRB098 10559 AMC 42403 a
1 in effect on June 1, 1999.
2 "Place of primary use" means the street address
3 representative of where the customer's use of the
4 telecommunications service primarily occurs, which
5 must be the residential street address or the primary
6 business street address of the customer. In the case of
7 mobile telecommunications services, "place of primary
8 use" must be within the licensed service area of the
9 home service provider.
10 "Post-paid telecommunication service" means the
11 telecommunications service obtained by making a
12 payment on a call-by-call basis either through the use
13 of a credit card or payment mechanism such as a bank
14 card, travel card, credit card, or debit card, or by
15 charge made to a telephone number which is not
16 associated with the origination or termination of the
17 telecommunications service. A post-paid calling
18 service includes telecommunications service, except a
19 prepaid wireless calling service, that would be a
20 prepaid calling service except it is not exclusively a
21 telecommunication service.
22 "Prepaid telecommunication service" means the
23 right to access exclusively telecommunications
24 services, which must be paid for in advance and which
25 enables the origination of calls using an access number
26 or authorization code, whether manually or

09800SB1739sam001- 187 -LRB098 10559 AMC 42403 a
1 electronically dialed, and that is sold in
2 predetermined units or dollars of which the number
3 declines with use in a known amount.
4 "Prepaid Mobile telecommunication service" means a
5 telecommunications service that provides the right to
6 utilize mobile wireless service as well as other
7 non-telecommunication services, including but not
8 limited to ancillary services, which must be paid for
9 in advance that is sold in predetermined units or
10 dollars of which the number declines with use in a
11 known amount.
12 "Private communication service" means a
13 telecommunication service that entitles the customer
14 to exclusive or priority use of a communications
15 channel or group of channels between or among
16 termination points, regardless of the manner in which
17 such channel or channels are connected, and includes
18 switching capacity, extension lines, stations, and any
19 other associated services that are provided in
20 connection with the use of such channel or channels.
21 "Service address" means:
22 (a) The location of the telecommunications
23 equipment to which a customer's call is charged and
24 from which the call originates or terminates,
25 regardless of where the call is billed or paid;
26 (b) If the location in line (a) is not known,

09800SB1739sam001- 188 -LRB098 10559 AMC 42403 a
1 service address means the origination point of the
2 signal of the telecommunications services first
3 identified by either the seller's
4 telecommunications system or in information
5 received by the seller from its service provider
6 where the system used to transport such signals is
7 not that of the seller; and
8 (c) If the locations in line (a) and line (b)
9 are not known, the service address means the
10 location of the customer's place of primary use.
11 "Telecommunications service" means the electronic
12 transmission, conveyance, or routing of voice, data,
13 audio, video, or any other information or signals to a
14 point, or between or among points. The term
15 "telecommunications service" includes such
16 transmission, conveyance, or routing in which computer
17 processing applications are used to act on the form,
18 code or protocol of the content for purposes of
19 transmission, conveyance or routing without regard to
20 whether such service is referred to as voice over
21 Internet protocol services or is classified by the
22 Federal Communications Commission as enhanced or value
23 added. "Telecommunications service" does not include:
24 (a) Data processing and information services
25 that allow data to be generated, acquired, stored,
26 processed, or retrieved and delivered by an

09800SB1739sam001- 189 -LRB098 10559 AMC 42403 a
1 electronic transmission to a purchaser when such
2 purchaser's primary purpose for the underlying
3 transaction is the processed data or information;
4 (b) Installation or maintenance of wiring or
5 equipment on a customer's premises;
6 (c) Tangible personal property;
7 (d) Advertising, including but not limited to
8 directory advertising.
9 (e) Billing and collection services provided
10 to third parties;
11 (f) Internet access service;
12 (g) Radio and television audio and video
13 programming services, regardless of the medium,
14 including the furnishing of transmission,
15 conveyance and routing of such services by the
16 programming service provider. Radio and television
17 audio and video programming services shall include
18 but not be limited to cable service as defined in
19 47 USC 522(6) and audio and video programming
20 services delivered by commercial mobile radio
21 service providers, as defined in 47 CFR 20.3;
22 (h) "Ancillary services"; or
23 (i) Digital products "delivered
24 electronically", including but not limited to
25 software, music, video, reading materials or ring
26 tones.

09800SB1739sam001- 190 -LRB098 10559 AMC 42403 a
1 "Vertical service" means an "ancillary service"
2 that is offered in connection with one or more
3 "telecommunications services", which offers advanced
4 calling features that allow customers to identify
5 callers and to manage multiple calls and call
6 connections, including "conference bridging services".
7 "Voice mail service" means an "ancillary service"
8 that enables the customer to store, send or receive
9 recorded messages. "Voice mail service" does not
10 include any "vertical services" that the customer may
11 be required to have in order to utilize the "voice mail
12 service".
13 (ii) Receipts from the sale of telecommunications
14 service sold on an individual call-by-call basis are in
15 this State if either of the following applies:
16 (a) The call both originates and terminates in
17 this State.
18 (b) The call either originates or terminates
19 in this State and the service address is located in
20 this State.
21 (iii) Receipts from the sale of postpaid
22 telecommunications service at retail are in this State
23 if the origination point of the telecommunication
24 signal, as first identified by the service provider's
25 telecommunication system or as identified by
26 information received by the seller from its service

09800SB1739sam001- 191 -LRB098 10559 AMC 42403 a
1 provider if the system used to transport
2 telecommunication signals is not the seller's, is
3 located in this State.
4 (iv) Receipts from the sale of prepaid
5 telecommunications service or prepaid mobile
6 telecommunications service at retail are in this State
7 if the purchaser obtains the prepaid card or similar
8 means of conveyance at a location in this State.
9 Receipts from recharging a prepaid telecommunications
10 service or mobile telecommunications service is in
11 this State if the purchaser's billing information
12 indicates a location in this State.
13 (v) Receipts from the sale of private
14 communication services are in this State as follows:
15 (a) 100% of receipts from charges imposed at
16 each channel termination point in this State.
17 (b) 100% of receipts from charges for the total
18 channel mileage between each channel termination
19 point in this State.
20 (c) 50% of the total receipts from charges for
21 service segments when those segments are between 2
22 customer channel termination points, 1 of which is
23 located in this State and the other is located
24 outside of this State, which segments are
25 separately charged.
26 (d) The receipts from charges for service

09800SB1739sam001- 192 -LRB098 10559 AMC 42403 a
1 segments with a channel termination point located
2 in this State and in two or more other states, and
3 which segments are not separately billed, are in
4 this State based on a percentage determined by
5 dividing the number of customer channel
6 termination points in this State by the total
7 number of customer channel termination points.
8 (vi) Receipts from charges for ancillary services
9 for telecommunications service sold to customers at
10 retail are in this State if the customer's primary
11 place of use of telecommunications services associated
12 with those ancillary services is in this State. If the
13 seller of those ancillary services cannot determine
14 where the associated telecommunications are located,
15 then the ancillary services shall be based on the
16 location of the purchaser.
17 (vii) Receipts to access a carrier's network or
18 from the sale of telecommunication services or
19 ancillary services for resale are in this State as
20 follows:
21 (a) 100% of the receipts from access fees
22 attributable to intrastate telecommunications
23 service that both originates and terminates in
24 this State.
25 (b) 50% of the receipts from access fees
26 attributable to interstate telecommunications

09800SB1739sam001- 193 -LRB098 10559 AMC 42403 a
1 service if the interstate call either originates
2 or terminates in this State.
3 (c) 100% of the receipts from interstate end
4 user access line charges, if the customer's
5 service address is in this State. As used in this
6 subdivision, "interstate end user access line
7 charges" includes, but is not limited to, the
8 surcharge approved by the federal communications
9 commission and levied pursuant to 47 CFR 69.
10 (d) Gross receipts from sales of
11 telecommunication services or from ancillary
12 services for telecommunications services sold to
13 other telecommunication service providers for
14 resale shall be sourced to this State using the
15 apportionment concepts used for non-resale
16 receipts of telecommunications services if the
17 information is readily available to make that
18 determination. If the information is not readily
19 available, then the taxpayer may use any other
20 reasonable and consistent method.
21 (B-7) For taxable years ending on or after December 31,
22 2008, receipts from the sale of broadcasting services are
23 in this State if the broadcasting services are received in
24 this State. For purposes of this paragraph (B-7), the
25 following terms have the following meanings:
26 "Advertising revenue" means consideration received

09800SB1739sam001- 194 -LRB098 10559 AMC 42403 a
1 by the taxpayer in exchange for broadcasting services
2 or allowing the broadcasting of commercials or
3 announcements in connection with the broadcasting of
4 film or radio programming, from sponsorships of the
5 programming, or from product placements in the
6 programming.
7 "Audience factor" means the ratio that the
8 audience or subscribers located in this State of a
9 station, a network, or a cable system bears to the
10 total audience or total subscribers for that station,
11 network, or cable system. The audience factor for film
12 or radio programming shall be determined by reference
13 to the books and records of the taxpayer or by
14 reference to published rating statistics provided the
15 method used by the taxpayer is consistently used from
16 year to year for this purpose and fairly represents the
17 taxpayer's activity in this State.
18 "Broadcast" or "broadcasting" or "broadcasting
19 services" means the transmission or provision of film
20 or radio programming, whether through the public
21 airwaves, by cable, by direct or indirect satellite
22 transmission, or by any other means of communication,
23 either through a station, a network, or a cable system.
24 "Film" or "film programming" means the broadcast
25 on television of any and all performances, events, or
26 productions, including but not limited to news,

09800SB1739sam001- 195 -LRB098 10559 AMC 42403 a
1 sporting events, plays, stories, or other literary,
2 commercial, educational, or artistic works, either
3 live or through the use of video tape, disc, or any
4 other type of format or medium. Each episode of a
5 series of films produced for television shall
6 constitute separate "film" notwithstanding that the
7 series relates to the same principal subject and is
8 produced during one or more tax periods.
9 "Radio" or "radio programming" means the broadcast
10 on radio of any and all performances, events, or
11 productions, including but not limited to news,
12 sporting events, plays, stories, or other literary,
13 commercial, educational, or artistic works, either
14 live or through the use of an audio tape, disc, or any
15 other format or medium. Each episode in a series of
16 radio programming produced for radio broadcast shall
17 constitute a separate "radio programming"
18 notwithstanding that the series relates to the same
19 principal subject and is produced during one or more
20 tax periods.
21 (i) In the case of advertising revenue from
22 broadcasting, the customer is the advertiser and
23 the service is received in this State if the
24 commercial domicile of the advertiser is in this
25 State.
26 (ii) In the case where film or radio

09800SB1739sam001- 196 -LRB098 10559 AMC 42403 a
1 programming is broadcast by a station, a network,
2 or a cable system for a fee or other remuneration
3 received from the recipient of the broadcast, the
4 portion of the service that is received in this
5 State is measured by the portion of the recipients
6 of the broadcast located in this State.
7 Accordingly, the fee or other remuneration for
8 such service that is included in the Illinois
9 numerator of the sales factor is the total of those
10 fees or other remuneration received from
11 recipients in Illinois. For purposes of this
12 paragraph, a taxpayer may determine the location
13 of the recipients of its broadcast using the
14 address of the recipient shown in its contracts
15 with the recipient or using the billing address of
16 the recipient in the taxpayer's records.
17 (iii) In the case where film or radio
18 programming is broadcast by a station, a network,
19 or a cable system for a fee or other remuneration
20 from the person providing the programming, the
21 portion of the broadcast service that is received
22 by such station, network, or cable system in this
23 State is measured by the portion of recipients of
24 the broadcast located in this State. Accordingly,
25 the amount of revenue related to such an
26 arrangement that is included in the Illinois

09800SB1739sam001- 197 -LRB098 10559 AMC 42403 a
1 numerator of the sales factor is the total fee or
2 other total remuneration from the person providing
3 the programming related to that broadcast
4 multiplied by the Illinois audience factor for
5 that broadcast.
6 (iv) In the case where film or radio
7 programming is provided by a taxpayer that is a
8 network or station to a customer for broadcast in
9 exchange for a fee or other remuneration from that
10 customer the broadcasting service is received at
11 the location of the office of the customer from
12 which the services were ordered in the regular
13 course of the customer's trade or business.
14 Accordingly, in such a case the revenue derived by
15 the taxpayer that is included in the taxpayer's
16 Illinois numerator of the sales factor is the
17 revenue from such customers who receive the
18 broadcasting service in Illinois.
19 (v) In the case where film or radio programming
20 is provided by a taxpayer that is not a network or
21 station to another person for broadcasting in
22 exchange for a fee or other remuneration from that
23 person, the broadcasting service is received at
24 the location of the office of the customer from
25 which the services were ordered in the regular
26 course of the customer's trade or business.

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1 Accordingly, in such a case the revenue derived by
2 the taxpayer that is included in the taxpayer's
3 Illinois numerator of the sales factor is the
4 revenue from such customers who receive the
5 broadcasting service in Illinois.
6 (B-8) For taxable years ending on or after December 31,
7 2013, gross receipts from winnings from pari-mutuel
8 wagering conducted at a wagering facility licensed under
9 the Illinois Horse Racing Act of 1975 or from winnings from
10 gambling games conducted on a riverboat or in a casino or
11 electronic gaming facility licensed under the Illinois
12 Gambling Act are in this State.
13 (C) For taxable years ending before December 31, 2008,
14 sales, other than sales governed by paragraphs (B), (B-1),
15 and (B-2), are in this State if:
16 (i) The income-producing activity is performed in
17 this State; or
18 (ii) The income-producing activity is performed
19 both within and without this State and a greater
20 proportion of the income-producing activity is
21 performed within this State than without this State,
22 based on performance costs.
23 (C-5) For taxable years ending on or after December 31,
24 2008, sales, other than sales governed by paragraphs (B),
25 (B-1), (B-2), (B-5), and (B-7), are in this State if any of
26 the following criteria are met:

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1 (i) Sales from the sale or lease of real property
2 are in this State if the property is located in this
3 State.
4 (ii) Sales from the lease or rental of tangible
5 personal property are in this State if the property is
6 located in this State during the rental period. Sales
7 from the lease or rental of tangible personal property
8 that is characteristically moving property, including,
9 but not limited to, motor vehicles, rolling stock,
10 aircraft, vessels, or mobile equipment are in this
11 State to the extent that the property is used in this
12 State.
13 (iii) In the case of interest, net gains (but not
14 less than zero) and other items of income from
15 intangible personal property, the sale is in this State
16 if:
17 (a) in the case of a taxpayer who is a dealer
18 in the item of intangible personal property within
19 the meaning of Section 475 of the Internal Revenue
20 Code, the income or gain is received from a
21 customer in this State. For purposes of this
22 subparagraph, a customer is in this State if the
23 customer is an individual, trust or estate who is a
24 resident of this State and, for all other
25 customers, if the customer's commercial domicile
26 is in this State. Unless the dealer has actual

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1 knowledge of the residence or commercial domicile
2 of a customer during a taxable year, the customer
3 shall be deemed to be a customer in this State if
4 the billing address of the customer, as shown in
5 the records of the dealer, is in this State; or
6 (b) in all other cases, if the
7 income-producing activity of the taxpayer is
8 performed in this State or, if the
9 income-producing activity of the taxpayer is
10 performed both within and without this State, if a
11 greater proportion of the income-producing
12 activity of the taxpayer is performed within this
13 State than in any other state, based on performance
14 costs.
15 (iv) Sales of services are in this State if the
16 services are received in this State. For the purposes
17 of this section, gross receipts from the performance of
18 services provided to a corporation, partnership, or
19 trust may only be attributed to a state where that
20 corporation, partnership, or trust has a fixed place of
21 business. If the state where the services are received
22 is not readily determinable or is a state where the
23 corporation, partnership, or trust receiving the
24 service does not have a fixed place of business, the
25 services shall be deemed to be received at the location
26 of the office of the customer from which the services

09800SB1739sam001- 201 -LRB098 10559 AMC 42403 a
1 were ordered in the regular course of the customer's
2 trade or business. If the ordering office cannot be
3 determined, the services shall be deemed to be received
4 at the office of the customer to which the services are
5 billed. If the taxpayer is not taxable in the state in
6 which the services are received, the sale must be
7 excluded from both the numerator and the denominator of
8 the sales factor. The Department shall adopt rules
9 prescribing where specific types of service are
10 received, including, but not limited to, publishing,
11 and utility service.
12 (D) For taxable years ending on or after December 31,
13 1995, the following items of income shall not be included
14 in the numerator or denominator of the sales factor:
15 dividends; amounts included under Section 78 of the
16 Internal Revenue Code; and Subpart F income as defined in
17 Section 952 of the Internal Revenue Code. No inference
18 shall be drawn from the enactment of this paragraph (D) in
19 construing this Section for taxable years ending before
20 December 31, 1995.
21 (E) Paragraphs (B-1) and (B-2) shall apply to tax years
22 ending on or after December 31, 1999, provided that a
23 taxpayer may elect to apply the provisions of these
24 paragraphs to prior tax years. Such election shall be made
25 in the form and manner prescribed by the Department, shall
26 be irrevocable, and shall apply to all tax years; provided

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1 that, if a taxpayer's Illinois income tax liability for any
2 tax year, as assessed under Section 903 prior to January 1,
3 1999, was computed in a manner contrary to the provisions
4 of paragraphs (B-1) or (B-2), no refund shall be payable to
5 the taxpayer for that tax year to the extent such refund is
6 the result of applying the provisions of paragraph (B-1) or
7 (B-2) retroactively. In the case of a unitary business
8 group, such election shall apply to all members of such
9 group for every tax year such group is in existence, but
10 shall not apply to any taxpayer for any period during which
11 that taxpayer is not a member of such group.
12 (b) Insurance companies.
13 (1) In general. Except as otherwise provided by
14 paragraph (2), business income of an insurance company for
15 a taxable year shall be apportioned to this State by
16 multiplying such income by a fraction, the numerator of
17 which is the direct premiums written for insurance upon
18 property or risk in this State, and the denominator of
19 which is the direct premiums written for insurance upon
20 property or risk everywhere. For purposes of this
21 subsection, the term "direct premiums written" means the
22 total amount of direct premiums written, assessments and
23 annuity considerations as reported for the taxable year on
24 the annual statement filed by the company with the Illinois
25 Director of Insurance in the form approved by the National
26 Convention of Insurance Commissioners or such other form as

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1 may be prescribed in lieu thereof.
2 (2) Reinsurance. If the principal source of premiums
3 written by an insurance company consists of premiums for
4 reinsurance accepted by it, the business income of such
5 company shall be apportioned to this State by multiplying
6 such income by a fraction, the numerator of which is the
7 sum of (i) direct premiums written for insurance upon
8 property or risk in this State, plus (ii) premiums written
9 for reinsurance accepted in respect of property or risk in
10 this State, and the denominator of which is the sum of
11 (iii) direct premiums written for insurance upon property
12 or risk everywhere, plus (iv) premiums written for
13 reinsurance accepted in respect of property or risk
14 everywhere. For purposes of this paragraph, premiums
15 written for reinsurance accepted in respect of property or
16 risk in this State, whether or not otherwise determinable,
17 may, at the election of the company, be determined on the
18 basis of the proportion which premiums written for
19 reinsurance accepted from companies commercially domiciled
20 in Illinois bears to premiums written for reinsurance
21 accepted from all sources, or, alternatively, in the
22 proportion which the sum of the direct premiums written for
23 insurance upon property or risk in this State by each
24 ceding company from which reinsurance is accepted bears to
25 the sum of the total direct premiums written by each such
26 ceding company for the taxable year. The election made by a

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1 company under this paragraph for its first taxable year
2 ending on or after December 31, 2011, shall be binding for
3 that company for that taxable year and for all subsequent
4 taxable years, and may be altered only with the written
5 permission of the Department, which shall not be
6 unreasonably withheld.
7 (c) Financial organizations.
8 (1) In general. For taxable years ending before
9 December 31, 2008, business income of a financial
10 organization shall be apportioned to this State by
11 multiplying such income by a fraction, the numerator of
12 which is its business income from sources within this
13 State, and the denominator of which is its business income
14 from all sources. For the purposes of this subsection, the
15 business income of a financial organization from sources
16 within this State is the sum of the amounts referred to in
17 subparagraphs (A) through (E) following, but excluding the
18 adjusted income of an international banking facility as
19 determined in paragraph (2):
20 (A) Fees, commissions or other compensation for
21 financial services rendered within this State;
22 (B) Gross profits from trading in stocks, bonds or
23 other securities managed within this State;
24 (C) Dividends, and interest from Illinois
25 customers, which are received within this State;
26 (D) Interest charged to customers at places of

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1 business maintained within this State for carrying
2 debit balances of margin accounts, without deduction
3 of any costs incurred in carrying such accounts; and
4 (E) Any other gross income resulting from the
5 operation as a financial organization within this
6 State. In computing the amounts referred to in
7 paragraphs (A) through (E) of this subsection, any
8 amount received by a member of an affiliated group
9 (determined under Section 1504(a) of the Internal
10 Revenue Code but without reference to whether any such
11 corporation is an "includible corporation" under
12 Section 1504(b) of the Internal Revenue Code) from
13 another member of such group shall be included only to
14 the extent such amount exceeds expenses of the
15 recipient directly related thereto.
16 (2) International Banking Facility. For taxable years
17 ending before December 31, 2008:
18 (A) Adjusted Income. The adjusted income of an
19 international banking facility is its income reduced
20 by the amount of the floor amount.
21 (B) Floor Amount. The floor amount shall be the
22 amount, if any, determined by multiplying the income of
23 the international banking facility by a fraction, not
24 greater than one, which is determined as follows:
25 (i) The numerator shall be:
26 The average aggregate, determined on a

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1 quarterly basis, of the financial organization's
2 loans to banks in foreign countries, to foreign
3 domiciled borrowers (except where secured
4 primarily by real estate) and to foreign
5 governments and other foreign official
6 institutions, as reported for its branches,
7 agencies and offices within the state on its
8 "Consolidated Report of Condition", Schedule A,
9 Lines 2.c., 5.b., and 7.a., which was filed with
10 the Federal Deposit Insurance Corporation and
11 other regulatory authorities, for the year 1980,
12 minus
13 The average aggregate, determined on a
14 quarterly basis, of such loans (other than loans of
15 an international banking facility), as reported by
16 the financial institution for its branches,
17 agencies and offices within the state, on the
18 corresponding Schedule and lines of the
19 Consolidated Report of Condition for the current
20 taxable year, provided, however, that in no case
21 shall the amount determined in this clause (the
22 subtrahend) exceed the amount determined in the
23 preceding clause (the minuend); and
24 (ii) the denominator shall be the average
25 aggregate, determined on a quarterly basis, of the
26 international banking facility's loans to banks in

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1 foreign countries, to foreign domiciled borrowers
2 (except where secured primarily by real estate)
3 and to foreign governments and other foreign
4 official institutions, which were recorded in its
5 financial accounts for the current taxable year.
6 (C) Change to Consolidated Report of Condition and
7 in Qualification. In the event the Consolidated Report
8 of Condition which is filed with the Federal Deposit
9 Insurance Corporation and other regulatory authorities
10 is altered so that the information required for
11 determining the floor amount is not found on Schedule
12 A, lines 2.c., 5.b. and 7.a., the financial institution
13 shall notify the Department and the Department may, by
14 regulations or otherwise, prescribe or authorize the
15 use of an alternative source for such information. The
16 financial institution shall also notify the Department
17 should its international banking facility fail to
18 qualify as such, in whole or in part, or should there
19 be any amendment or change to the Consolidated Report
20 of Condition, as originally filed, to the extent such
21 amendment or change alters the information used in
22 determining the floor amount.
23 (3) For taxable years ending on or after December 31,
24 2008, the business income of a financial organization shall
25 be apportioned to this State by multiplying such income by
26 a fraction, the numerator of which is its gross receipts

09800SB1739sam001- 208 -LRB098 10559 AMC 42403 a
1 from sources in this State or otherwise attributable to
2 this State's marketplace and the denominator of which is
3 its gross receipts everywhere during the taxable year.
4 "Gross receipts" for purposes of this subparagraph (3)
5 means gross income, including net taxable gain on
6 disposition of assets, including securities and money
7 market instruments, when derived from transactions and
8 activities in the regular course of the financial
9 organization's trade or business. The following examples
10 are illustrative:
11 (i) Receipts from the lease or rental of real or
12 tangible personal property are in this State if the
13 property is located in this State during the rental
14 period. Receipts from the lease or rental of tangible
15 personal property that is characteristically moving
16 property, including, but not limited to, motor
17 vehicles, rolling stock, aircraft, vessels, or mobile
18 equipment are from sources in this State to the extent
19 that the property is used in this State.
20 (ii) Interest income, commissions, fees, gains on
21 disposition, and other receipts from assets in the
22 nature of loans that are secured primarily by real
23 estate or tangible personal property are from sources
24 in this State if the security is located in this State.
25 (iii) Interest income, commissions, fees, gains on
26 disposition, and other receipts from consumer loans

09800SB1739sam001- 209 -LRB098 10559 AMC 42403 a
1 that are not secured by real or tangible personal
2 property are from sources in this State if the debtor
3 is a resident of this State.
4 (iv) Interest income, commissions, fees, gains on
5 disposition, and other receipts from commercial loans
6 and installment obligations that are not secured by
7 real or tangible personal property are from sources in
8 this State if the proceeds of the loan are to be
9 applied in this State. If it cannot be determined where
10 the funds are to be applied, the income and receipts
11 are from sources in this State if the office of the
12 borrower from which the loan was negotiated in the
13 regular course of business is located in this State. If
14 the location of this office cannot be determined, the
15 income and receipts shall be excluded from the
16 numerator and denominator of the sales factor.
17 (v) Interest income, fees, gains on disposition,
18 service charges, merchant discount income, and other
19 receipts from credit card receivables are from sources
20 in this State if the card charges are regularly billed
21 to a customer in this State.
22 (vi) Receipts from the performance of services,
23 including, but not limited to, fiduciary, advisory,
24 and brokerage services, are in this State if the
25 services are received in this State within the meaning
26 of subparagraph (a)(3)(C-5)(iv) of this Section.

09800SB1739sam001- 210 -LRB098 10559 AMC 42403 a
1 (vii) Receipts from the issuance of travelers
2 checks and money orders are from sources in this State
3 if the checks and money orders are issued from a
4 location within this State.
5 (viii) Receipts from investment assets and
6 activities and trading assets and activities are
7 included in the receipts factor as follows:
8 (1) Interest, dividends, net gains (but not
9 less than zero) and other income from investment
10 assets and activities from trading assets and
11 activities shall be included in the receipts
12 factor. Investment assets and activities and
13 trading assets and activities include but are not
14 limited to: investment securities; trading account
15 assets; federal funds; securities purchased and
16 sold under agreements to resell or repurchase;
17 options; futures contracts; forward contracts;
18 notional principal contracts such as swaps;
19 equities; and foreign currency transactions. With
20 respect to the investment and trading assets and
21 activities described in subparagraphs (A) and (B)
22 of this paragraph, the receipts factor shall
23 include the amounts described in such
24 subparagraphs.
25 (A) The receipts factor shall include the
26 amount by which interest from federal funds

09800SB1739sam001- 211 -LRB098 10559 AMC 42403 a
1 sold and securities purchased under resale
2 agreements exceeds interest expense on federal
3 funds purchased and securities sold under
4 repurchase agreements.
5 (B) The receipts factor shall include the
6 amount by which interest, dividends, gains and
7 other income from trading assets and
8 activities, including but not limited to
9 assets and activities in the matched book, in
10 the arbitrage book, and foreign currency
11 transactions, exceed amounts paid in lieu of
12 interest, amounts paid in lieu of dividends,
13 and losses from such assets and activities.
14 (2) The numerator of the receipts factor
15 includes interest, dividends, net gains (but not
16 less than zero), and other income from investment
17 assets and activities and from trading assets and
18 activities described in paragraph (1) of this
19 subsection that are attributable to this State.
20 (A) The amount of interest, dividends, net
21 gains (but not less than zero), and other
22 income from investment assets and activities
23 in the investment account to be attributed to
24 this State and included in the numerator is
25 determined by multiplying all such income from
26 such assets and activities by a fraction, the

09800SB1739sam001- 212 -LRB098 10559 AMC 42403 a
1 numerator of which is the gross income from
2 such assets and activities which are properly
3 assigned to a fixed place of business of the
4 taxpayer within this State and the denominator
5 of which is the gross income from all such
6 assets and activities.
7 (B) The amount of interest from federal
8 funds sold and purchased and from securities
9 purchased under resale agreements and
10 securities sold under repurchase agreements
11 attributable to this State and included in the
12 numerator is determined by multiplying the
13 amount described in subparagraph (A) of
14 paragraph (1) of this subsection from such
15 funds and such securities by a fraction, the
16 numerator of which is the gross income from
17 such funds and such securities which are
18 properly assigned to a fixed place of business
19 of the taxpayer within this State and the
20 denominator of which is the gross income from
21 all such funds and such securities.
22 (C) The amount of interest, dividends,
23 gains, and other income from trading assets and
24 activities, including but not limited to
25 assets and activities in the matched book, in
26 the arbitrage book and foreign currency

09800SB1739sam001- 213 -LRB098 10559 AMC 42403 a
1 transactions (but excluding amounts described
2 in subparagraphs (A) or (B) of this paragraph),
3 attributable to this State and included in the
4 numerator is determined by multiplying the
5 amount described in subparagraph (B) of
6 paragraph (1) of this subsection by a fraction,
7 the numerator of which is the gross income from
8 such trading assets and activities 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 assets and activities.
13 (D) Properly assigned, for purposes of
14 this paragraph (2) of this subsection, means
15 the investment or trading asset or activity is
16 assigned to the fixed place of business with
17 which it has a preponderance of substantive
18 contacts. An investment or trading asset or
19 activity assigned by the taxpayer to a fixed
20 place of business without the State shall be
21 presumed to have been properly assigned if:
22 (i) the taxpayer has assigned, in the
23 regular course of its business, such asset
24 or activity on its records to a fixed place
25 of business consistent with federal or
26 state regulatory requirements;

09800SB1739sam001- 214 -LRB098 10559 AMC 42403 a
1 (ii) such assignment on its records is
2 based upon substantive contacts of the
3 asset or activity to such fixed place of
4 business; and
5 (iii) the taxpayer uses such records
6 reflecting assignment of such assets or
7 activities for the filing of all state and
8 local tax returns for which an assignment
9 of such assets or activities to a fixed
10 place of business is required.
11 (E) The presumption of proper assignment
12 of an investment or trading asset or activity
13 provided in subparagraph (D) of paragraph (2)
14 of this subsection may be rebutted upon a
15 showing by the Department, supported by a
16 preponderance of the evidence, that the
17 preponderance of substantive contacts
18 regarding such asset or activity did not occur
19 at the fixed place of business to which it was
20 assigned on the taxpayer's records. If the
21 fixed place of business that has a
22 preponderance of substantive contacts cannot
23 be determined for an investment or trading
24 asset or activity to which the presumption in
25 subparagraph (D) of paragraph (2) of this
26 subsection does not apply or with respect to

09800SB1739sam001- 215 -LRB098 10559 AMC 42403 a
1 which that presumption has been rebutted, that
2 asset or activity is properly assigned to the
3 state in which the taxpayer's commercial
4 domicile is located. For purposes of this
5 subparagraph (E), it shall be presumed,
6 subject to rebuttal, that taxpayer's
7 commercial domicile is in the state of the
8 United States or the District of Columbia to
9 which the greatest number of employees are
10 regularly connected with the management of the
11 investment or trading income or out of which
12 they are working, irrespective of where the
13 services of such employees are performed, as of
14 the last day of the taxable year.
15 (4) (Blank).
16 (5) (Blank).
17 (c-1) Federally regulated exchanges. For taxable years
18ending on or after December 31, 2012, business income of a
19federally regulated exchange shall, at the option of the
20federally regulated exchange, be apportioned to this State by
21multiplying such income by a fraction, the numerator of which
22is its business income from sources within this State, and the
23denominator of which is its business income from all sources.
24For purposes of this subsection, the business income within
25this State of a federally regulated exchange is the sum of the
26following:

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1 (1) Receipts attributable to transactions executed on
2 a physical trading floor if that physical trading floor is
3 located in this State.
4 (2) Receipts attributable to all other matching,
5 execution, or clearing transactions, including without
6 limitation receipts from the provision of matching,
7 execution, or clearing services to another entity,
8 multiplied by (i) for taxable years ending on or after
9 December 31, 2012 but before December 31, 2013, 63.77%; and
10 (ii) for taxable years ending on or after December 31,
11 2013, 27.54%.
12 (3) All other receipts not governed by subparagraphs
13 (1) or (2) of this subsection (c-1), to the extent the
14 receipts would be characterized as "sales in this State"
15 under item (3) of subsection (a) of this Section.
16 "Federally regulated exchange" means (i) a "registered
17entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
18or (C), (ii) an "exchange" or "clearing agency" within the
19meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
20entities regulated under any successor regulatory structure to
21the foregoing, and (iv) all taxpayers who are members of the
22same unitary business group as a federally regulated exchange,
23determined without regard to the prohibition in Section
241501(a)(27) of this Act against including in a unitary business
25group taxpayers who are ordinarily required to apportion
26business income under different subsections of this Section;

09800SB1739sam001- 217 -LRB098 10559 AMC 42403 a
1provided that this subparagraph (iv) shall apply only if 50% or
2more of the business receipts of the unitary business group
3determined by application of this subparagraph (iv) for the
4taxable year are attributable to the matching, execution, or
5clearing of transactions conducted by an entity described in
6subparagraph (i), (ii), or (iii) of this paragraph.
7 In no event shall the Illinois apportionment percentage
8computed in accordance with this subsection (c-1) for any
9taxpayer for any tax year be less than the Illinois
10apportionment percentage computed under this subsection (c-1)
11for that taxpayer for the first full tax year ending on or
12after December 31, 2013 for which this subsection (c-1) applied
13to the taxpayer.
14 (d) Transportation services. For taxable years ending
15before December 31, 2008, business income derived from
16furnishing transportation services shall be apportioned to
17this State in accordance with paragraphs (1) and (2):
18 (1) Such business income (other than that derived from
19 transportation by pipeline) shall be apportioned to this
20 State by multiplying such income by a fraction, the
21 numerator of which is the revenue miles of the person in
22 this State, and the denominator of which is the revenue
23 miles of the person everywhere. For purposes of this
24 paragraph, a revenue mile is the transportation of 1
25 passenger or 1 net ton of freight the distance of 1 mile
26 for a consideration. Where a person is engaged in the

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1 transportation of both passengers and freight, the
2 fraction above referred to shall be determined by means of
3 an average of the passenger revenue mile fraction and the
4 freight revenue mile fraction, weighted to reflect the
5 person's
6 (A) relative railway operating income from total
7 passenger and total freight service, as reported to the
8 Interstate Commerce Commission, in the case of
9 transportation by railroad, and
10 (B) relative gross receipts from passenger and
11 freight transportation, in case of transportation
12 other than by railroad.
13 (2) Such business income derived from transportation
14 by pipeline shall be apportioned to this State by
15 multiplying such income by a fraction, the numerator of
16 which is the revenue miles of the person in this State, and
17 the denominator of which is the revenue miles of the person
18 everywhere. For the purposes of this paragraph, a revenue
19 mile is the transportation by pipeline of 1 barrel of oil,
20 1,000 cubic feet of gas, or of any specified quantity of
21 any other substance, the distance of 1 mile for a
22 consideration.
23 (3) For taxable years ending on or after December 31,
24 2008, business income derived from providing
25 transportation services other than airline services shall
26 be apportioned to this State by using a fraction, (a) the

09800SB1739sam001- 219 -LRB098 10559 AMC 42403 a
1 numerator of which shall be (i) all receipts from any
2 movement or shipment of people, goods, mail, oil, gas, or
3 any other substance (other than by airline) that both
4 originates and terminates in this State, plus (ii) that
5 portion of the person's gross receipts from movements or
6 shipments of people, goods, mail, oil, gas, or any other
7 substance (other than by airline) that originates in one
8 state or jurisdiction and terminates in another state or
9 jurisdiction, that is determined by the ratio that the
10 miles traveled in this State bears to total miles
11 everywhere and (b) the denominator of which shall be all
12 revenue derived from the movement or shipment of people,
13 goods, mail, oil, gas, or any other substance (other than
14 by airline). Where a taxpayer is engaged in the
15 transportation of both passengers and freight, the
16 fraction above referred to shall first be determined
17 separately for passenger miles and freight miles. Then an
18 average of the passenger miles fraction and the freight
19 miles fraction shall be weighted to reflect the taxpayer's:
20 (A) relative railway operating income from total
21 passenger and total freight service, as reported to the
22 Surface Transportation Board, in the case of
23 transportation by railroad; and
24 (B) relative gross receipts from passenger and
25 freight transportation, in case of transportation
26 other than by railroad.

09800SB1739sam001- 220 -LRB098 10559 AMC 42403 a
1 (4) For taxable years ending on or after December 31,
2 2008, business income derived from furnishing airline
3 transportation services shall be apportioned to this State
4 by multiplying such income by a fraction, the numerator of
5 which is the revenue miles of the person in this State, and
6 the denominator of which is the revenue miles of the person
7 everywhere. For purposes of this paragraph, a revenue mile
8 is the transportation of one passenger or one net ton of
9 freight the distance of one mile for a consideration. If a
10 person is engaged in the transportation of both passengers
11 and freight, the fraction above referred to shall be
12 determined by means of an average of the passenger revenue
13 mile fraction and the freight revenue mile fraction,
14 weighted to reflect the person's relative gross receipts
15 from passenger and freight airline transportation.
16 (e) Combined apportionment. Where 2 or more persons are
17engaged in a unitary business as described in subsection
18(a)(27) of Section 1501, a part of which is conducted in this
19State by one or more members of the group, the business income
20attributable to this State by any such member or members shall
21be apportioned by means of the combined apportionment method.
22 (f) Alternative allocation. If the allocation and
23apportionment provisions of subsections (a) through (e) and of
24subsection (h) do not fairly represent the extent of a person's
25business activity in this State, the person may petition for,
26or the Director may, without a petition, permit or require, in

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1respect of all or any part of the person's business activity,
2if reasonable:
3 (1) Separate accounting;
4 (2) The exclusion of any one or more factors;
5 (3) The inclusion of one or more additional factors
6 which will fairly represent the person's business
7 activities in this State; or
8 (4) The employment of any other method to effectuate an
9 equitable allocation and apportionment of the person's
10 business income.
11 (g) Cross reference. For allocation of business income by
12residents, see Section 301(a).
13 (h) For tax years ending on or after December 31, 1998, the
14apportionment factor of persons who apportion their business
15income to this State under subsection (a) shall be equal to:
16 (1) for tax years ending on or after December 31, 1998
17 and before December 31, 1999, 16 2/3% of the property
18 factor plus 16 2/3% of the payroll factor plus 66 2/3% of
19 the sales factor;
20 (2) for tax years ending on or after December 31, 1999
21 and before December 31, 2000, 8 1/3% of the property factor
22 plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
23 factor;
24 (3) for tax years ending on or after December 31, 2000,
25 the sales factor.
26If, in any tax year ending on or after December 31, 1998 and

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1before December 31, 2000, the denominator of the payroll,
2property, or sales factor is zero, the apportionment factor
3computed in paragraph (1) or (2) of this subsection for that
4year shall be divided by an amount equal to 100% minus the
5percentage weight given to each factor whose denominator is
6equal to zero.
7(Source: P.A. 96-763, eff. 8-25-09; 97-507, eff. 8-23-11;
897-636, eff. 6-1-12.)
9 (35 ILCS 5/710) (from Ch. 120, par. 7-710)
10 Sec. 710. Withholding from lottery winnings.
11 (a) In General.
12 (1) Any person making a payment to a resident or
13 nonresident of winnings under the Illinois Lottery Law and
14 not required to withhold Illinois income tax from such
15 payment under Subsection (b) of Section 701 of this Act
16 because those winnings are not subject to Federal income
17 tax withholding, must withhold Illinois income tax from
18 such payment at a rate equal to the percentage tax rate for
19 individuals provided in subsection (b) of Section 201,
20 provided that withholding is not required if such payment
21 of winnings is less than $1,000.
22 (2) Any person making a payment after December 31, 2013
23 to a resident or nonresident of winnings from pari-mutuel
24 wagering conducted at a wagering facility licensed under
25 the Illinois Horse Racing Act of 1975 or from gambling

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1 games conducted on a riverboat or in a casino or electronic
2 gaming facility licensed under the Illinois Gambling Act
3 must withhold Illinois income tax from such payment at a
4 rate equal to the percentage tax rate for individuals
5 provided in subsection (b) of Section 201, provided that
6 the person making the payment is required to withhold under
7 Section 3402(q) of the Internal Revenue 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. 85-731.)
14 Section 90-23. The Property Tax Code is amended by adding
15Section 15-144 as follows:
16 (35 ILCS 200/15-144 new)
17 Sec. 15-144. Chicago Casino Development Authority. All
18property owned by the Chicago Casino Development Authority is
19exempt. Any property owned by the Chicago Casino Development
20Authority and leased to any other entity is not exempt.
21 Section 90-24. The Illinois Municipal Code is amended by
22adding Section 8-10-2.6 as follows:

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1 (65 ILCS 5/8-10-2.6 new)
2 Sec. 8-10-2.6. Chicago Casino Development Authority.
3Except as otherwise provided in the Chicago Casino Development
4Authority Act, this Division 10 applies to purchase orders and
5contracts relating to the Chicago Casino Development
6Authority.
7 Section 90-25. The Joliet Regional Port District Act is
8amended by changing Section 5.1 as follows:
9 (70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)
10 Sec. 5.1. Riverboat and casino gambling. Notwithstanding
11any other provision of this Act, the District may not regulate
12the operation, conduct, or navigation of any riverboat gambling
13casino licensed under the Illinois Riverboat Gambling Act, and
14the District may not license, tax, or otherwise levy any
15assessment of any kind on any riverboat gambling casino
16licensed under the Illinois Riverboat Gambling Act. The General
17Assembly declares that the powers to regulate the operation,
18conduct, and navigation of riverboat gambling casinos and to
19license, tax, and levy assessments upon riverboat gambling
20casinos are exclusive powers of the State of Illinois and the
21Illinois Gaming Board as provided in the Illinois Riverboat
22Gambling Act.
23(Source: P.A. 87-1175.)

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1 Section 90-30. The Consumer Installment Loan Act is amended
2by changing Section 12.5 as follows:
3 (205 ILCS 670/12.5)
4 Sec. 12.5. Limited purpose branch.
5 (a) Upon the written approval of the Director, a licensee
6may maintain a limited purpose branch for the sole purpose of
7making loans as permitted by this Act. A limited purpose branch
8may include an automatic loan machine. No other activity shall
9be conducted at the site, including but not limited to,
10accepting payments, servicing the accounts, or collections.
11 (b) The licensee must submit an application for a limited
12purpose branch to the Director on forms prescribed by the
13Director with an application fee of $300. The approval for the
14limited purpose branch must be renewed concurrently with the
15renewal of the licensee's license along with a renewal fee of
16$300 for the limited purpose branch.
17 (c) The books, accounts, records, and files of the limited
18purpose branch's transactions shall be maintained at the
19licensee's licensed location. The licensee shall notify the
20Director of the licensed location at which the books, accounts,
21records, and files shall be maintained.
22 (d) The licensee shall prominently display at the limited
23purpose branch the address and telephone number of the
24licensee's licensed location.
25 (e) No other business shall be conducted at the site of the

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1limited purpose branch unless authorized by the Director.
2 (f) The Director shall make and enforce reasonable rules
3for the conduct of a limited purpose branch.
4 (g) A limited purpose branch may not be located within
51,000 feet of a facility operated by an inter-track wagering
6licensee or an organization licensee subject to the Illinois
7Horse Racing Act of 1975, on a riverboat or in a casino subject
8to the Illinois Riverboat Gambling Act, or within 1,000 feet of
9the location at which the riverboat docks or within 1,000 feet
10of a casino.
11(Source: P.A. 90-437, eff. 1-1-98.)
12 Section 90-35. The Illinois Horse Racing Act of 1975 is
13amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
1420, 21, 24, 25, 26, 27, 30, 30.5, 31, 31.1, 32.1, 36, 40, and
1554.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
163.37, 34.3, 39.2, and 56 as follows:
17 (230 ILCS 5/1.2)
18 Sec. 1.2. Legislative intent. This Act is intended to
19benefit the people of the State of Illinois by encouraging the
20breeding and production of race horses, assisting economic
21development and promoting Illinois tourism. The General
22Assembly finds and declares it to be the public policy of the
23State of Illinois to:
24 (a) support and enhance Illinois' horse racing industry,

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1which is a significant component within the agribusiness
2industry;
3 (b) ensure that Illinois' horse racing industry remains
4competitive with neighboring states;
5 (c) stimulate growth within Illinois' horse racing
6industry, thereby encouraging new investment and development
7to produce additional tax revenues and to create additional
8jobs;
9 (d) promote the further growth of tourism;
10 (e) encourage the breeding of thoroughbred and
11standardbred horses in this State; and
12 (f) ensure that public confidence and trust in the
13credibility and integrity of racing operations and the
14regulatory process is maintained.
15(Source: P.A. 91-40, eff. 6-25-99.)
16 (230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)
17 Sec. 3.11. "Organization Licensee" means any person
18receiving an organization license from the Board to conduct a
19race meeting or meetings. With respect only to electronic
20gaming, "organization licensee" includes the authorization for
21an electronic gaming license under subsection (a) of Section 56
22of this Act.
23(Source: P.A. 79-1185.)
24 (230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)

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1 Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
2system of wagering" means a form of wagering on the outcome of
3horse races in which wagers are made in various denominations
4on a horse or horses and all wagers for each race are pooled
5and held by a licensee for distribution in a manner approved by
6the Board. "Pari-mutuel system of wagering" shall not include
7wagering on historic races. Wagers may be placed via any method
8or at any location authorized under this Act.
9(Source: P.A. 96-762, eff. 8-25-09.)
10 (230 ILCS 5/3.31 new)
11 Sec. 3.31. Adjusted gross receipts. "Adjusted gross
12receipts" means the gross receipts less winnings paid to
13wagerers.
14 (230 ILCS 5/3.32 new)
15 Sec. 3.32. Gross receipts. "Gross receipts" means the total
16amount of money exchanged for the purchase of chips, tokens, or
17electronic cards by riverboat or casino patrons or electronic
18gaming patrons.
19 (230 ILCS 5/3.33 new)
20 Sec. 3.33. Electronic gaming. "Electronic gaming" means
21slot machine gambling, video game of chance gambling, or
22gambling with electronic gambling games as defined in the
23Illinois Gambling Act or defined by the Illinois Gaming Board

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1that is conducted at a race track pursuant to an electronic
2gaming license.
3 (230 ILCS 5/3.35 new)
4 Sec. 3.35. Electronic gaming license. "Electronic gaming
5license" means a license issued by the Illinois Gaming Board
6under Section 7.6 of the Illinois Gambling Act authorizing
7electronic gaming at an electronic gaming facility.
8 (230 ILCS 5/3.36 new)
9 Sec. 3.36. Electronic gaming facility. "Electronic gaming
10facility" means that portion of an organization licensee's race
11track facility at which electronic gaming is conducted.
12 (230 ILCS 5/3.37 new)
13 Sec. 3.37. Purse. "Purse" means the amount of money won by
14the owner of any competitor in a race. For purposes of
15calculating owners' awards and breeders' awards pursuant to
16Sections 30, 30.5, and 31 of this Act, "purse" shall only
17include the amount paid from the purse account of the
18organization licensee, and does not include (i) any fees paid
19by the owners of the horses nominated to, entered in, or
20starting in a horse race meeting and any money added by the
21organization licensee, and (ii) any purse supplements, stakes
22and awards, and awards expended from the Illinois Thoroughbred
23Breeders Fund, the Illinois Quarter Horse Breeders Fund, and

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1the Illinois Standardbred Breeders Fund.
2 (230 ILCS 5/6) (from Ch. 8, par. 37-6)
3 Sec. 6. Restrictions on Board members.
4 (a) No person shall be appointed a member of the Board or
5continue to be a member of the Board if the person or any
6member of their immediate family is a member of the Board of
7Directors, employee, or financially interested in any of the
8following: (i) any licensee or other person who has applied for
9racing dates to the Board, or the operations thereof including,
10but not limited to, concessions, data processing, track
11maintenance, track security, and pari-mutuel operations,
12located, scheduled or doing business within the State of
13Illinois, (ii) any race horse competing at a meeting under the
14Board's jurisdiction, or (iii) any licensee under the Illinois
15Gambling Act. No person shall be appointed a member of the
16Board or continue to be a member of the Board who is (or any
17member of whose family is) a member of the Board of Directors
18of, or who is a person financially interested in, any licensee
19or other person who has applied for racing dates to the Board,
20or the operations thereof including, but not limited to,
21concessions, data processing, track maintenance, track
22security and pari-mutuel operations, located, scheduled or
23doing business within the State of Illinois, or in any race
24horse competing at a meeting under the Board's jurisdiction. No
25Board member shall hold any other public office for which he

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1shall receive compensation other than necessary travel or other
2incidental expenses.
3 (b) No person shall be a member of the Board who is not of
4good moral character or who has been convicted of, or is under
5indictment for, a felony under the laws of Illinois or any
6other state, or the United States.
7 (c) No member of the Board or employee shall engage in any
8political activity.
9 For the purposes of this subsection (c):
10 "Political" means any activity in support of or in
11connection with any campaign for State or local elective office
12or any political organization, but does not include activities
13(i) relating to the support or opposition of any executive,
14legislative, or administrative action (as those terms are
15defined in Section 2 of the Lobbyist Registration Act), (ii)
16relating to collective bargaining, or (iii) that are otherwise
17in furtherance of the person's official State duties or
18governmental and public service functions.
19 "Political organization" means a party, committee,
20association, fund, or other organization (whether or not
21incorporated) that is required to file a statement of
22organization with the State Board of Elections or county clerk
23under Section 9-3 of the Election Code, but only with regard to
24those activities that require filing with the State Board of
25Elections or county clerk.
26 (d) Board members and employees may not engage in

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1communications or any activity that may cause or have the
2appearance of causing a conflict of interest. A conflict of
3interest exists if a situation influences or creates the
4appearance that it may influence judgment or performance of
5regulatory duties and responsibilities. This prohibition shall
6extend to any act identified by Board action that, in the
7judgment of the Board, could represent the potential for or the
8appearance of a conflict of interest.
9 (e) Board members and employees may not accept any gift,
10gratuity, service, compensation, travel, lodging, or thing of
11value, with the exception of unsolicited items of an incidental
12nature, from any person, corporation, limited liability
13company, or entity doing business with the Board.
14 (f) A Board member or employee shall not use or attempt to
15use his or her official position to secure, or attempt to
16secure, any privilege, advantage, favor, or influence for
17himself or herself or others. No Board member or employee,
18within a period of one year immediately preceding nomination by
19the Governor or employment, shall have been employed or
20received compensation or fees for services from a person or
21entity, or its parent or affiliate, that has engaged in
22business with the Board, a licensee or a licensee under the
23Illinois Gambling Act. In addition, all Board members and
24employees are subject to the restrictions set forth in Section
255-45 of the State Officials and Employees Ethics Act.
26(Source: P.A. 89-16, eff. 5-30-95.)

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1 (230 ILCS 5/9) (from Ch. 8, par. 37-9)
2 Sec. 9. The Board shall have all powers necessary and
3proper to fully and effectively execute the provisions of this
4Act, including, but not limited to, the following:
5 (a) The Board is vested with jurisdiction and supervision
6over all race meetings in this State, over all licensees doing
7business in this State, over all occupation licensees, and over
8all persons on the facilities of any licensee. Such
9jurisdiction shall include the power to issue licenses to the
10Illinois Department of Agriculture authorizing the pari-mutuel
11system of wagering on harness and Quarter Horse races held (1)
12at the Illinois State Fair in Sangamon County, and (2) at the
13DuQuoin State Fair in Perry County. The jurisdiction of the
14Board shall also include the power to issue licenses to county
15fairs which are eligible to receive funds pursuant to the
16Agricultural Fair Act, as now or hereafter amended, or their
17agents, authorizing the pari-mutuel system of wagering on horse
18races conducted at the county fairs receiving such licenses.
19Such licenses shall be governed by subsection (n) of this
20Section.
21 Upon application, the Board shall issue a license to the
22Illinois Department of Agriculture to conduct harness and
23Quarter Horse races at the Illinois State Fair and at the
24DuQuoin State Fairgrounds during the scheduled dates of each
25fair. The Board shall not require and the Department of

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1Agriculture shall be exempt from the requirements of Sections
215.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
3(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
4and 25. The Board and the Department of Agriculture may extend
5any or all of these exemptions to any contractor or agent
6engaged by the Department of Agriculture to conduct its race
7meetings when the Board determines that this would best serve
8the public interest and the interest of horse racing.
9 Notwithstanding any provision of law to the contrary, it
10shall be lawful for any licensee to operate pari-mutuel
11wagering or contract with the Department of Agriculture to
12operate pari-mutuel wagering at the DuQuoin State Fairgrounds
13or for the Department to enter into contracts with a licensee,
14employ its owners, employees or agents and employ such other
15occupation li