SB1739 EngrossedLRB098 10559 AMC 40804 b
1 AN ACT concerning gaming.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
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 1-2. Legislative intent.
9 (a) This Act is intended to benefit the people of the City
10of Chicago and the State of Illinois by assisting economic
11development and promoting tourism and by increasing the amount
12of revenues available to the City and the State to assist and
13support education.
14 (b) While authorization of casino gambling in Chicago will
15enhance investment, development, and tourism in Illinois, it is
16recognized that it will do so successfully only if public
17confidence and trust in the credibility and integrity of the
18gambling operations and the regulatory process is maintained.
19Therefore, the provisions of this Act are designed to allow the
20Illinois Gaming Board to strictly regulate the facilities,
21persons, associations, and practices related to gambling
22operations pursuant to the police powers of the State,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SB1739 Engrossed- 38 -LRB098 10559 AMC 40804 b
1projects.
2 (b) The Casino Board shall annually cause the finances of
3the Authority to be audited by a firm of certified public
4accountants selected by the Casino Board in accordance with the
5rules of the Gaming Board and post on the Authority's Internet
6website such financial information as is required to be posted
7by all other owners licensees under the Illinois Gambling Act.
8 (c) The Casino Board shall, for each fiscal year, prepare
9an annual report setting forth information concerning its
10activities in the fiscal year and the status of the development
11of the casino. The annual report shall include financial
12information of the Authority consistent with that which is
13required for all other owners licensees under the Illinois
14Gambling Act, the budget for the succeeding fiscal year, and
15the current capital plan as of the date of the report. Copies
16of the annual report shall be made available to persons who
17request them and shall be submitted not later than 120 days
18after the end of the Authority's fiscal year or, if the audit
19of the Authority's financial statements is not completed within
20120 days after the end of the Authority's fiscal year, as soon
21as practical after completion of the audit, to the Governor,
22the Mayor, the General Assembly, and the Commission on
23Government Forecasting and Accountability.
24 Section 1-110. Deposit and withdrawal of funds.
25 (a) All funds deposited by the Authority in any bank or

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

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

SB1739 Engrossed- 41 -LRB098 10559 AMC 40804 b
1disclosure must be submitted to the Gaming Board with a copy of
2the contract. All such disclosures shall be posted on the
3websites of the Authority and the Gaming Board.
4 (c) As used in this Section:
5 "Contribution" means contribution as defined in Section
69-1.4 of the Election Code.
7 "Affiliated person" means (i) any person with any ownership
8interest or distributive share of the bidding, responding, or
9contracting entity in excess of 1%, (ii) executive employees of
10the bidding, responding, or contracting entity, and (iii) the
11spouse, minor children, and parents of any such persons.
12 "Affiliated entity" means (i) any parent or subsidiary of
13the bidding or contracting entity, (ii) any member of the same
14unitary business group, or (iii) any political committee for
15which the bidding, responding, or contracting entity is the
16sponsoring entity.
17 (d) The Gaming Board may direct the Authority or a casino
18operator licensee to void a contract if a violation of this
19Section occurs. The Authority may direct a casino operator
20licensee to void a contract if a violation of this Section
21occurs.
22 (e) All contracts pertaining to the actual operation of the
23casino and related gaming activities shall be entered into by
24the casino operator licensee and not the Authority and shall be
25subject to the regulation, oversight, and approval of the
26Gaming Board, applying the same regulation, oversight, and

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

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

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

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

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

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

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

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

SB1739 Engrossed- 50 -LRB098 10559 AMC 40804 b
1contracts and pending bids or proposals for contracts of over
2$50,000 and certain individuals and entities affiliated with
3such persons. Certain gaming licensees will receive receipts
4far in excess of the base level of contract amounts subject to
5such other campaign contribution prohibitions.
6 (b) As used in this Section:
7 "Affiliated entity" means (i) any corporate parent and
8operating subsidiary of the business entity applying for or
9holding a license, (ii) each operating subsidiary of the
10corporate parent of the business entity applying for or holding
11a license, (iii) any organization recognized by the United
12States Internal Revenue Service as a tax-exempt organization
13described in Section 501(c) of the Internal Revenue Code of
141986 (or any successor provision of federal tax law)
15established by one or more business entities seeking or holding
16a license, any affiliated entity of such business entity, or
17any affiliated person of such business entity, and (iv) any
18political committee for which the business entity applying for
19or holding a license, or any 501(c) organization described in
20item (iii) related to that business entity, is the sponsoring
21entity as defined in Section 9-3 of the Election Code. For
22purposes of item (iv), the funding of all business entities
23applying for or holding a license shall be aggregated in
24determining whether such political committee is an affiliated
25entity.
26 "Affiliated person" means (i) any person with any ownership

SB1739 Engrossed- 51 -LRB098 10559 AMC 40804 b
1interest or distributive share in excess of 7.5% of any
2business entity applying for or holding a license, (ii)
3executive employees of any such business entity, (iii) any
4person designated as a key person under the Illinois Gambling
5Act, and (iv) the spouse of the persons described in items (i)
6through (iii).
7 "Business entity" means any entity doing business for
8profit, whether organized as a corporation, partnership, sole
9proprietorship, limited liability company, or partnership or
10otherwise.
11 "Contribution" means a contribution as defined in Section
129-1.4 of the Election Code.
13 "Declared candidate" means a person who has filed a
14statement of candidacy and petition for nomination or election
15in the principal office of the State Board of Elections, or in
16the office of the appropriate election authority for any county
17or municipality in which a casino is located or proposed or
18which receives any gaming revenue.
19 "Executive employee" means (i) any person who is an officer
20or director or who fulfills duties equivalent to those of an
21officer or director of a business entity applying for or
22holding a license and (ii) any employee of such business entity
23who is required to register under the Lobbyist Registration
24Act.
25 "License" means the casino operator license issued
26pursuant to this Act.

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

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

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

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

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

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

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

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

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

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

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

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

SB1739 Engrossed- 64 -LRB098 10559 AMC 40804 b
12008. The initial appointments shall be made within 60 days
2after the effective date of this Act.
3 After the initial term, each Executive Inspector General
4shall serve for 5-year terms commencing on July 1 of the year
5of appointment and running through June 30 of the fifth
6following year. An Executive Inspector General may be
7reappointed to one or more subsequent terms.
8 A vacancy occurring other than at the end of a term shall
9be filled by the appointing authority only for the balance of
10the term of the Executive Inspector General whose office is
11vacant.
12 Terms shall run regardless of whether the position is
13filled.
14 (c) The Executive Inspector General appointed by the
15Attorney General shall have jurisdiction over the Attorney
16General and all officers and employees of, and vendors and
17others doing business with, State agencies within the
18jurisdiction of the Attorney General. The Executive Inspector
19General appointed by the Secretary of State shall have
20jurisdiction over the Secretary of State and all officers and
21employees of, and vendors and others doing business with, State
22agencies within the jurisdiction of the Secretary of State. The
23Executive Inspector General appointed by the Comptroller shall
24have jurisdiction over the Comptroller and all officers and
25employees of, and vendors and others doing business with, State
26agencies within the jurisdiction of the Comptroller. The

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

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

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

SB1739 Engrossed- 68 -LRB098 10559 AMC 40804 b
1 telephone number to provide crisis counseling and referral
2 services to families experiencing difficulty as a result of
3 problem or compulsive gambling.
4 (2) Promotion of public awareness regarding the
5 recognition and prevention of problem and compulsive
6 gambling.
7 (3) Facilitation, through in-service training and
8 other means, of the availability of effective assistance
9 programs for problem and compulsive gamblers.
10 (4) Conducting studies to identify adults and
11 juveniles in this State who are, or who are at risk of
12 becoming, problem or compulsive gamblers.
13 (b) Subject to appropriation, the Department shall either
14establish and maintain the program or contract with a private
15or public entity for the establishment and maintenance of the
16program. Subject to appropriation, either the Department or the
17private or public entity shall implement the toll-free
18telephone number, promote public awareness, and conduct
19in-service training concerning problem and compulsive
20gambling.
21 (c) Subject to appropriation, the Department shall produce
22and supply the signs specified in Section 10.7 of the Illinois
23Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
241975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
25of the Charitable Games Act, and Section 13.1 of the Illinois
26Riverboat Gambling Act.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SB1739 Engrossed- 84 -LRB098 10559 AMC 40804 b
1 upon the management agreement.
2 (21) Right of use of copyrights, trademarks, and
3 service marks held by the Department in the name of the
4 State. The agreement must provide that any use of them by
5 the manager shall only be for the purpose of fulfilling its
6 obligations under the management agreement during the term
7 of the agreement.
8 (22) The disclosure of any information requested by the
9 Department to enable it to comply with the reporting
10 requirements and information requests provided for under
11 subsection (p) of this Section.
12 (e) Notwithstanding any other law to the contrary, the
13Department shall select a private manager through a competitive
14request for qualifications process consistent with Section
1520-35 of the Illinois Procurement Code, which shall take into
16account:
17 (1) the offeror's ability to market the Lottery to
18 those residents who are new, infrequent, or lapsed players
19 of the Lottery, especially those who are most likely to
20 make regular purchases on the Internet;
21 (2) the offeror's ability to address the State's
22 concern with the social effects of gambling on those who
23 can least afford to do so;
24 (3) the offeror's ability to provide the most
25 successful management of the Lottery for the benefit of the
26 people of the State based on current and past business

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

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

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

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

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

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

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

SB1739 Engrossed- 92 -LRB098 10559 AMC 40804 b
1 (p) The Department shall be subject to the following
2reporting and information request requirements:
3 (1) the Department shall submit written quarterly
4 reports to the Governor and the General Assembly on the
5 activities and actions of the private manager selected
6 under this Section;
7 (2) upon request of the Chief Procurement Officer, the
8 Department shall promptly produce information related to
9 the procurement activities of the Department and the
10 private manager requested by the Chief Procurement
11 Officer; the Chief Procurement Officer must retain
12 confidential, proprietary, or trade secret information
13 designated by the Department in complete confidence
14 pursuant to subsection (g) of Section 7 of the Freedom of
15 Information Act; and
16 (3) at least 30 days prior to the beginning of the
17 Department's fiscal year, the Department shall prepare an
18 annual written report on the activities of the private
19 manager selected under this Section and deliver that report
20 to the Governor and General Assembly.
21(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
22eff. 12-23-09; 97-464, eff. 8-19-11; revised 10-17-12.)
23 Section 90-10. The Department of Revenue Law of the Civil
24Administrative Code of Illinois is amended by changing Section
252505-305 as follows:

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

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

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

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

SB1739 Engrossed- 97 -LRB098 10559 AMC 40804 b
1conduct or cause to be conducted a financial and compliance
2audit of the books and records of any county water commission
3organized pursuant to the Water Commission Act of 1985 and
4shall file a copy of the report of that audit with the Governor
5and the Legislative Audit Commission. The filed audit shall be
6open to the public for inspection. The cost of the audit shall
7be charged to the county water commission in accordance with
8Section 6z-27 of the State Finance Act. The county water
9commission shall make available to the Auditor General its
10books and records and any other documentation, whether in the
11possession of its trustees or other parties, necessary to
12conduct the audit required. These audit requirements apply only
13through July 1, 2007.
14 The Auditor General must conduct audits of the Rend Lake
15Conservancy District as provided in Section 25.5 of the River
16Conservancy Districts Act.
17 The Auditor General must conduct financial audits of the
18Southeastern Illinois Economic Development Authority as
19provided in Section 70 of the Southeastern Illinois Economic
20Development Authority Act.
21 The Auditor General shall conduct a compliance audit in
22accordance with subsections (d) and (f) of Section 30 of the
23Innovation Development and Economy Act.
24(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
2596-939, eff. 6-24-10.)

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

SB1739 Engrossed- 99 -LRB098 10559 AMC 40804 b
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(b), (c), (d), and (k) of Section 7.6 of the Illinois Gambling
15Act. All interest earned on moneys in the Fund shall be
16deposited into the 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

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

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

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

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

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

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

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

SB1739 Engrossed- 107 -LRB098 10559 AMC 40804 b
1Tax Replacement Income Tax shall be in addition to the income
2tax imposed by subsections (a) and (b) of this Section and in
3addition to all other occupation or privilege taxes imposed by
4this State or by any municipal corporation or political
5subdivision thereof.
6 (d) Additional Personal Property Tax Replacement Income
7Tax Rates. The personal property tax replacement income tax
8imposed by this subsection and subsection (c) of this Section
9in the case of a corporation, other than a Subchapter S
10corporation and except as adjusted by subsection (d-1), shall
11be an additional amount equal to 2.85% of such taxpayer's net
12income for the taxable year, except that beginning on January
131, 1981, and thereafter, the rate of 2.85% specified in this
14subsection shall be reduced to 2.5%, and in the case of a
15partnership, trust or a Subchapter S corporation shall be an
16additional amount equal to 1.5% of such taxpayer's net income
17for the taxable year.
18 (d-1) Rate reduction for certain foreign insurers. In the
19case of a foreign insurer, as defined by Section 35A-5 of the
20Illinois Insurance Code, whose state or country of domicile
21imposes on insurers domiciled in Illinois a retaliatory tax
22(excluding any insurer whose premiums from reinsurance assumed
23are 50% or more of its total insurance premiums as determined
24under paragraph (2) of subsection (b) of Section 304, except
25that for purposes of this determination premiums from
26reinsurance do not include premiums from inter-affiliate

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SB1739 Engrossed- 126 -LRB098 10559 AMC 40804 b
1(b) of this Section for the tax imposed by subsections (c) and
2(d) of this Section. This credit shall be computed by
3multiplying the tax imposed by subsections (c) and (d) of this
4Section by a fraction, the numerator of which is base income
5allocable to Illinois and the denominator of which is Illinois
6base income, and further multiplying the product by the tax
7rate imposed by subsections (a) and (b) of this Section.
8 Any credit earned on or after December 31, 1986 under this
9subsection which is unused in the year the credit is computed
10because it exceeds the tax liability imposed by subsections (a)
11and (b) for that year (whether it exceeds the original
12liability or the liability as later amended) may be carried
13forward and applied to the tax liability imposed by subsections
14(a) and (b) of the 5 taxable years following the excess credit
15year, provided that no credit may be carried forward to any
16year ending on or after December 31, 2003. This credit shall be
17applied first to the earliest year for which there is a
18liability. If there is a credit under this subsection from more
19than one tax year that is available to offset a liability the
20earliest credit arising under this subsection shall be applied
21first.
22 If, during any taxable year ending on or after December 31,
231986, the tax imposed by subsections (c) and (d) of this
24Section for which a taxpayer has claimed a credit under this
25subsection (i) is reduced, the amount of credit for such tax
26shall also be reduced. Such reduction shall be determined by

SB1739 Engrossed- 127 -LRB098 10559 AMC 40804 b
1recomputing the credit to take into account the reduced tax
2imposed by subsections (c) and (d). If any portion of the
3reduced amount of credit has been carried to a different
4taxable year, an amended return shall be filed for such taxable
5year to reduce the amount of credit claimed.
6 (j) Training expense credit. Beginning with tax years
7ending on or after December 31, 1986 and prior to December 31,
82003, a taxpayer shall be allowed a credit against the tax
9imposed by subsections (a) and (b) under this Section for all
10amounts paid or accrued, on behalf of all persons employed by
11the taxpayer in Illinois or Illinois residents employed outside
12of Illinois by a taxpayer, for educational or vocational
13training in semi-technical or technical fields or semi-skilled
14or skilled fields, which were deducted from gross income in the
15computation of taxable income. The credit against the tax
16imposed by subsections (a) and (b) shall be 1.6% of such
17training expenses. For partners, shareholders of subchapter S
18corporations, and owners of limited liability companies, if the
19liability company is treated as a partnership for purposes of
20federal and State income taxation, there shall be allowed a
21credit under this subsection (j) to be determined in accordance
22with the determination of income and distributive share of
23income under Sections 702 and 704 and subchapter S of the
24Internal Revenue Code.
25 Any credit allowed under this subsection which is unused in
26the year the credit is earned may be carried forward to each of

SB1739 Engrossed- 128 -LRB098 10559 AMC 40804 b
1the 5 taxable years following the year for which the credit is
2first computed until it is used. This credit shall be applied
3first to the earliest year for which there is a liability. If
4there is a credit under this subsection from more than one tax
5year that is available to offset a liability the earliest
6credit arising under this subsection shall be applied first. No
7carryforward credit may be claimed in any tax year ending on or
8after December 31, 2003.
9 (k) Research and development credit. For tax years ending
10after July 1, 1990 and prior to December 31, 2003, and
11beginning again for tax years ending on or after December 31,
122004, and ending prior to January 1, 2016, a taxpayer shall be
13allowed a credit against the tax imposed by subsections (a) and
14(b) of this Section for increasing research activities in this
15State. The credit allowed against the tax imposed by
16subsections (a) and (b) shall be equal to 6 1/2% of the
17qualifying expenditures for increasing research activities in
18this State. For partners, shareholders of subchapter S
19corporations, and owners of limited liability companies, if the
20liability company is treated as a partnership for purposes of
21federal and State income taxation, there shall be allowed a
22credit under this subsection to be determined in accordance
23with the determination of income and distributive share of
24income under Sections 702 and 704 and subchapter S of the
25Internal Revenue Code.
26 For purposes of this subsection, "qualifying expenditures"

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

SB1739 Engrossed- 130 -LRB098 10559 AMC 40804 b
1liability for the given year remains. Any remaining unused
2credit or credits then will be carried forward to the next
3following year in which a tax liability is incurred, except
4that no credit can be carried forward to a year which is more
5than 5 years after the year in which the expense for which the
6credit is given was incurred.
7 No inference shall be drawn from this amendatory Act of the
891st General Assembly in construing this Section for taxable
9years beginning before January 1, 1999.
10 (l) Environmental Remediation Tax Credit.
11 (i) For tax years ending after December 31, 1997 and on
12 or before December 31, 2001, a taxpayer shall be allowed a
13 credit against the tax imposed by subsections (a) and (b)
14 of this Section for certain amounts paid for unreimbursed
15 eligible remediation costs, as specified in this
16 subsection. For purposes of this Section, "unreimbursed
17 eligible remediation costs" means costs approved by the
18 Illinois Environmental Protection Agency ("Agency") under
19 Section 58.14 of the Environmental Protection Act that were
20 paid in performing environmental remediation at a site for
21 which a No Further Remediation Letter was issued by the
22 Agency and recorded under Section 58.10 of the
23 Environmental Protection Act. The credit must be claimed
24 for the taxable year in which Agency approval of the
25 eligible remediation costs is granted. The credit is not
26 available to any taxpayer if the taxpayer or any related

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

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

SB1739 Engrossed- 133 -LRB098 10559 AMC 40804 b
1 amount of the tax credit to be transferred as a portion of
2 the sale. In no event may a credit be transferred to any
3 taxpayer if the taxpayer or a related party would not be
4 eligible under the provisions of subsection (i).
5 (iii) For purposes of this Section, the term "site"
6 shall have the same meaning as under Section 58.2 of the
7 Environmental Protection Act.
8 (m) Education expense credit. Beginning with tax years
9ending after December 31, 1999, a taxpayer who is the custodian
10of one or more qualifying pupils shall be allowed a credit
11against the tax imposed by subsections (a) and (b) of this
12Section for qualified education expenses incurred on behalf of
13the qualifying pupils. The credit shall be equal to 25% of
14qualified education expenses, but in no event may the total
15credit under this subsection claimed by a family that is the
16custodian of qualifying pupils exceed $500. In no event shall a
17credit under this subsection reduce the taxpayer's liability
18under this Act to less than zero. This subsection is exempt
19from the provisions of Section 250 of this Act.
20 For purposes of this subsection:
21 "Qualifying pupils" means individuals who (i) are
22residents of the State of Illinois, (ii) are under the age of
2321 at the close of the school year for which a credit is
24sought, and (iii) during the school year for which a credit is
25sought were full-time pupils enrolled in a kindergarten through
26twelfth grade education program at any school, as defined in

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

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

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

SB1739 Engrossed- 137 -LRB098 10559 AMC 40804 b
1(Source: P.A. 96-115, eff. 7-31-09; 96-116, eff. 7-31-09;
296-937, eff. 6-23-10; 96-1000, eff. 7-2-10; 96-1496, eff.
31-13-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, eff.
48-7-12.)
5 (35 ILCS 5/303) (from Ch. 120, par. 3-303)
6 Sec. 303. (a) In general. Any item of capital gain or loss,
7and any item of income from rents or royalties from real or
8tangible personal property, interest, dividends, and patent or
9copyright royalties, and prizes awarded under the Illinois
10Lottery Law, and, for taxable years ending on or after December
1131, 2013, wagering and gambling winnings from Illinois sources
12as set forth in subsection (e-1) of this Section, to the extent
13such item constitutes nonbusiness income, together with any
14item of deduction directly allocable thereto, shall be
15allocated by any person other than a resident as provided in
16this Section.
17 (b) Capital gains and losses.
18 (1) Real property. Capital gains and losses from sales
19 or exchanges of real property are allocable to this State
20 if the property is located in this State.
21 (2) Tangible personal property. Capital gains and
22 losses from sales or exchanges of tangible personal
23 property are allocable to this State if, at the time of
24 such sale or exchange:
25 (A) The property had its situs in this State; or

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SB1739 Engrossed- 185 -LRB098 10559 AMC 40804 b
1the foregoing, and (iv) all taxpayers who are members of the
2same unitary business group as a federally regulated exchange,
3determined without regard to the prohibition in Section
41501(a)(27) of this Act against including in a unitary business
5group taxpayers who are ordinarily required to apportion
6business income under different subsections of this Section;
7provided that this subparagraph (iv) shall apply only if 50% or
8more of the business receipts of the unitary business group
9determined by application of this subparagraph (iv) for the
10taxable year are attributable to the matching, execution, or
11clearing of transactions conducted by an entity described in
12subparagraph (i), (ii), or (iii) of this paragraph.
13 In no event shall the Illinois apportionment percentage
14computed in accordance with this subsection (c-1) for any
15taxpayer for any tax year be less than the Illinois
16apportionment percentage computed under this subsection (c-1)
17for that taxpayer for the first full tax year ending on or
18after December 31, 2013 for which this subsection (c-1) applied
19to the taxpayer.
20 (d) Transportation services. For taxable years ending
21before December 31, 2008, business income derived from
22furnishing transportation services shall be apportioned to
23this State in accordance with paragraphs (1) and (2):
24 (1) Such business income (other than that derived from
25 transportation by pipeline) shall be apportioned to this
26 State by multiplying such income by a fraction, the

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

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

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

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

SB1739 Engrossed- 190 -LRB098 10559 AMC 40804 b
1 and before December 31, 2000, 8 1/3% of the property factor
2 plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
3 factor;
4 (3) for tax years ending on or after December 31, 2000,
5 the sales factor.
6If, in any tax year ending on or after December 31, 1998 and
7before December 31, 2000, the denominator of the payroll,
8property, or sales factor is zero, the apportionment factor
9computed in paragraph (1) or (2) of this subsection for that
10year shall be divided by an amount equal to 100% minus the
11percentage weight given to each factor whose denominator is
12equal to zero.
13(Source: P.A. 96-763, eff. 8-25-09; 97-507, eff. 8-23-11;
1497-636, eff. 6-1-12.)
15 (35 ILCS 5/710) (from Ch. 120, par. 7-710)
16 Sec. 710. Withholding from lottery winnings.
17 (a) In General.
18 (1) Any person making a payment to a resident or
19 nonresident of winnings under the Illinois Lottery Law and
20 not required to withhold Illinois income tax from such
21 payment under Subsection (b) of Section 701 of this Act
22 because those winnings are not subject to Federal income
23 tax withholding, must withhold Illinois income tax from
24 such payment at a rate equal to the percentage tax rate for
25 individuals provided in subsection (b) of Section 201,

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

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

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

SB1739 Engrossed- 194 -LRB098 10559 AMC 40804 b
1Director of the licensed location at which the books, accounts,
2records, and files shall be maintained.
3 (d) The licensee shall prominently display at the limited
4purpose branch the address and telephone number of the
5licensee's licensed location.
6 (e) No other business shall be conducted at the site of the
7limited purpose branch unless authorized by the Director.
8 (f) The Director shall make and enforce reasonable rules
9for the conduct of a limited purpose branch.
10 (g) A limited purpose branch may not be located within
111,000 feet of a facility operated by an inter-track wagering
12licensee or an organization licensee subject to the Illinois
13Horse Racing Act of 1975, on a riverboat or in a casino subject
14to the Illinois Riverboat Gambling Act, or within 1,000 feet of
15the location at which the riverboat docks or within 1,000 feet
16of a casino.
17(Source: P.A. 90-437, eff. 1-1-98.)
18 Section 90-35. The Illinois Horse Racing Act of 1975 is
19amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
2020, 21, 24, 25, 26, 27, 30, 30.5, 31, 31.1, 32.1, 36, 40, and
2154.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
2234.3, 39.2, and 56 as follows:
23 (230 ILCS 5/1.2)
24 Sec. 1.2. Legislative intent. This Act is intended to

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

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

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

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

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

SB1739 Engrossed- 200 -LRB098 10559 AMC 40804 b
1 (e) Board members and employees may not accept any gift,
2gratuity, service, compensation, travel, lodging, or thing of
3value, with the exception of unsolicited items of an incidental
4nature, from any person, corporation, limited liability
5company, or entity doing business with the Board.
6 (f) A Board member or employee shall not use or attempt to
7use his or her official position to secure, or attempt to
8secure, any privilege, advantage, favor, or influence for
9himself or herself or others. No Board member or employee,
10within a period of one year immediately preceding nomination by
11the Governor or employment, shall have been employed or
12received compensation or fees for services from a person or
13entity, or its parent or affiliate, that has engaged in
14business with the Board, a licensee or a licensee under the
15Illinois Gambling Act. In addition, all Board members and
16employees are subject to the restrictions set forth in Section
175-45 of the State Officials and Employees Ethics Act.
18(Source: P.A. 89-16, eff. 5-30-95.)
19 (230 ILCS 5/9) (from Ch. 8, par. 37-9)
20 Sec. 9. The Board shall have all powers necessary and
21proper to fully and effectively execute the provisions of this
22Act, including, but not limited to, the following:
23 (a) The Board is vested with jurisdiction and supervision
24over all race meetings in this State, over all licensees doing
25business in this State, over all occupation licensees, and over

SB1739 Engrossed- 201 -LRB098 10559 AMC 40804 b
1all persons on the facilities of any licensee. Such
2jurisdiction shall include the power to issue licenses to the
3Illinois Department of Agriculture authorizing the pari-mutuel
4system of wagering on harness and Quarter Horse races held (1)
5at the Illinois State Fair in Sangamon County, and (2) at the
6DuQuoin State Fair in Perry County. The jurisdiction of the
7Board shall also include the power to issue licenses to county
8fairs which are eligible to receive funds pursuant to the
9Agricultural Fair Act, as now or hereafter amended, or their
10agents, authorizing the pari-mutuel system of wagering on horse
11races conducted at the county fairs receiving such licenses.
12Such licenses shall be governed by subsection (n) of this
13Section.
14 Upon application, the Board shall issue a license to the
15Illinois Department of Agriculture to conduct harness and
16Quarter Horse races at the Illinois State Fair and at the
17DuQuoin State Fairgrounds during the scheduled dates of each
18fair. The Board shall not require and the Department of
19Agriculture shall be exempt from the requirements of Sections
2015.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
21(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
22and 25. The Board and the Department of Agriculture may extend
23any or all of these exemptions to any contractor or agent
24engaged by the Department of Agriculture to conduct its race
25meetings when the Board determines that this would best serve
26the public interest and the interest of horse racing.

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

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

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

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

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

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

SB1739 Engrossed- 208 -LRB098 10559 AMC 40804 b
1 (230 ILCS 5/15) (from Ch. 8, par. 37-15)
2 Sec. 15. (a) The Board shall, in its discretion, issue
3occupation licenses to horse owners, trainers, harness
4drivers, jockeys, agents, apprentices, grooms, stable foremen,
5exercise persons, veterinarians, valets, blacksmiths,
6concessionaires and others designated by the Board whose work,
7in whole or in part, is conducted upon facilities within the
8State. Such occupation licenses will be obtained prior to the
9persons engaging in their vocation upon such facilities. The
10Board shall not license pari-mutuel clerks, parking
11attendants, security guards and employees of concessionaires.
12No occupation license shall be required of any person who works
13at facilities within this State as a pari-mutuel clerk, parking
14attendant, security guard or as an employee of a
15concessionaire. Concessionaires of the Illinois State Fair and
16DuQuoin State Fair and employees of the Illinois Department of
17Agriculture shall not be required to obtain an occupation
18license by the Board.
19 (b) Each application for an occupation license shall be on
20forms prescribed by the Board. Such license, when issued, shall
21be for the period ending December 31 of each year, except that
22the Board in its discretion may grant 3-year licenses. The
23application shall be accompanied by a fee of not more than $25
24per year or, in the case of 3-year occupation license
25applications, a fee of not more than $60. Each applicant shall
26set forth in the application his full name and address, and if

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

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

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

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

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

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

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

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

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

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

SB1739 Engrossed- 219 -LRB098 10559 AMC 40804 b
1subsection (e-1).
2 (e-2) In awarding racing dates for calendar year 2014 and
3thereafter, the Board shall award thoroughbred racing days to
4Cook County organization licensees commensurate with these
5organization licensees' requirement that they shall run at
6least 1,950 thoroughbred races in the aggregate, so long as 2
7organization licensees are conducting electronic gaming
8operations. Additionally, if the organization licensees that
9run thoroughbred races in Cook County are conducting electronic
10gaming operations, the Board shall increase the number of
11thoroughbred races to be run in Cook County in the aggregate to
12at least the following:
13 (i) 2,050 races in any year following the most recent
14 preceding complete calendar year when the combined
15 adjusted gross receipts of the electronic gaming licensees
16 operating at Cook County race tracks total in excess of
17 $200,000,000, but do not exceed $250,000,000;
18 (ii) 2,125 races in any year following the most recent
19 preceding complete calendar year when the combined
20 adjusted gross receipts of the electronic gaming licensees
21 operating at Cook County race tracks total in excess of
22 $250,000,000, but do not exceed $300,000,000;
23 (iii) 2,200 races in any year following the most recent
24 preceding complete calendar year when the combined
25 adjusted gross receipts of the electronic gaming licensees
26 operating at Cook County race tracks total in excess of

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

SB1739 Engrossed- 221 -LRB098 10559 AMC 40804 b
1licensee shall run at least 700 thoroughbred races at the race
2track in Madison County each year.
3 Notwithstanding Section 7.6 of the Illinois Gambling Act or
4any provision of this Act other than subsection (e-4.5), for
5each calendar year for which an electronic gaming licensee
6located in Madison County requests racing dates resulting in
7less than 700 live thoroughbred races at its race track
8facility, the electronic gaming licensee may not conduct
9electronic gaming for the calendar year of such requested live
10races.
11 (e-4) Notwithstanding the provisions of Section 7.6 of the
12Illinois Gambling Act or any provision of this Act other than
13subsections (e-3) and (e-4.5), for each calendar year for which
14an electronic gaming licensee requests racing dates for a
15specific horse breed which results in a number of live races
16for that specific breed under its organization license that is
17less than the total number of live races for that specific
18breed which it conducted in 2011 for standardbred racing and in
192009 for thoroughbred racing at its race track facility, the
20electronic gaming licensee may not conduct electronic gaming
21for the calendar year of such requested live races.
22 (e-4.5) The Board shall ensure that each organization
23licensee shall individually run a sufficient number of races
24per year to qualify for an electronic gaming license under this
25Act. The General Assembly finds that the minimum live racing
26guarantees contained in subsections (e-1), (e-2), and (e-3) are

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

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

SB1739 Engrossed- 224 -LRB098 10559 AMC 40804 b
1 (4) the applicant's good faith affirmative action plan
2 to recruit, train, and upgrade minorities in all employment
3 classifications;
4 (5) the applicant's financial ability to purchase and
5 maintain adequate liability and casualty insurance;
6 (6) the applicant's proposed and prior year's
7 promotional and marketing activities and expenditures of
8 the applicant associated with those activities;
9 (7) an agreement, if any, among organization licensees
10 as provided in subsection (b) of Section 21 of this Act;
11 and
12 (8) the extent to which the applicant exceeds or meets
13 other standards for the issuance of an organization license
14 that the Board shall adopt by rule.
15 In granting organization licenses and allocating dates for
16horse race meetings, the Board shall have discretion to
17determine an overall schedule, including required simulcasts
18of Illinois races by host tracks that will, in its judgment, be
19conducive to the best interests of the public and the sport of
20horse racing.
21 (e-10) The Illinois Administrative Procedure Act shall
22apply to administrative procedures of the Board under this Act
23for the granting of an organization license, except that (1)
24notwithstanding the provisions of subsection (b) of Section
2510-40 of the Illinois Administrative Procedure Act regarding
26cross-examination, the Board may prescribe rules limiting the

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

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

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

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

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

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

SB1739 Engrossed- 231 -LRB098 10559 AMC 40804 b
1 (i) Each such organization licensee may provide that at
2least one race per day may be devoted to the racing of quarter
3horses, appaloosas, arabians, or paints.
4 (j) In acting on applications for organization licenses,
5the Board shall give weight to an organization license which
6has implemented a good faith affirmative action effort to
7recruit, train and upgrade minorities in all classifications
8within the organization license.
9(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)
10 (230 ILCS 5/24) (from Ch. 8, par. 37-24)
11 Sec. 24. (a) No license shall be issued to or held by an
12organization licensee unless all of its officers, directors,
13and holders of ownership interests of at least 5% are first
14approved by the Board. The Board shall not give approval of an
15organization license application to any person who has been
16convicted of or is under an indictment for a crime of moral
17turpitude or has violated any provision of the racing law of
18this State or any rules of the Board.
19 (b) An organization licensee must notify the Board within
2010 days of any change in the holders of a direct or indirect
21interest in the ownership of the organization licensee. The
22Board may, after hearing, revoke the organization license of
23any person who registers on its books or knowingly permits a
24direct or indirect interest in the ownership of that person
25without notifying the Board of the name of the holder in

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

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

SB1739 Engrossed- 234 -LRB098 10559 AMC 40804 b
1day, 40 cents shall be paid for each person using such ticket
2on each day that the same shall be used.
3