Sen. Terry Link

Filed: 3/6/2013

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

09800SB1739sam001- 55 -LRB098 10559 AMC 42403 a
1any agency finds reasonably constitutes a threat to the public
2interest, safety, or welfare.
3 (b) If any agency finds that an emergency exists that
4requires adoption of a rule upon fewer days than is required by
5Section 5-40 and states in writing its reasons for that
6finding, the agency may adopt an emergency rule without prior
7notice or hearing upon filing a notice of emergency rulemaking
8with the Secretary of State under Section 5-70. The notice
9shall include the text of the emergency rule and shall be
10published in the Illinois Register. Consent orders or other
11court orders adopting settlements negotiated by an agency may
12be adopted under this Section. Subject to applicable
13constitutional or statutory provisions, an emergency rule
14becomes effective immediately upon filing under Section 5-65 or
15at a stated date less than 10 days thereafter. The agency's
16finding and a statement of the specific reasons for the finding
17shall be filed with the rule. The agency shall take reasonable
18and appropriate measures to make emergency rules known to the
19persons who may be affected by them.
20 (c) An emergency rule may be effective for a period of not
21longer than 150 days, but the agency's authority to adopt an
22identical rule under Section 5-40 is not precluded. No
23emergency rule may be adopted more than once in any 24 month
24period, except that this limitation on the number of emergency
25rules that may be adopted in a 24 month period does not apply
26to (i) emergency rules that make additions to and deletions

09800SB1739sam001- 56 -LRB098 10559 AMC 42403 a
1from the Drug Manual under Section 5-5.16 of the Illinois
2Public Aid Code or the generic drug formulary under Section
33.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
4emergency rules adopted by the Pollution Control Board before
5July 1, 1997 to implement portions of the Livestock Management
6Facilities Act, (iii) emergency rules adopted by the Illinois
7Department of Public Health under subsections (a) through (i)
8of Section 2 of the Department of Public Health Act when
9necessary to protect the public's health, (iv) emergency rules
10adopted pursuant to subsection (n) of this Section, (v)
11emergency rules adopted pursuant to subsection (o) of this
12Section, or (vi) emergency rules adopted pursuant to subsection
13(c-5) of this Section. Two or more emergency rules having
14substantially the same purpose and effect shall be deemed to be
15a single rule for purposes of this Section.
16 (c-5) To facilitate the maintenance of the program of group
17health benefits provided to annuitants, survivors, and retired
18employees under the State Employees Group Insurance Act of
191971, rules to alter the contributions to be paid by the State,
20annuitants, survivors, retired employees, or any combination
21of those entities, for that program of group health benefits,
22shall be adopted as emergency rules. The adoption of those
23rules shall be considered an emergency and necessary for the
24public interest, safety, and welfare.
25 (d) In order to provide for the expeditious and timely
26implementation of the State's fiscal year 1999 budget,

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1emergency rules to implement any provision of Public Act 90-587
2or 90-588 or any other budget initiative for fiscal year 1999
3may be adopted in accordance with this Section by the agency
4charged with administering that provision or initiative,
5except that the 24-month limitation on the adoption of
6emergency rules and the provisions of Sections 5-115 and 5-125
7do not apply to rules adopted under this subsection (d). The
8adoption of emergency rules authorized by this subsection (d)
9shall be deemed to be necessary for the public interest,
10safety, and welfare.
11 (e) In order to provide for the expeditious and timely
12implementation of the State's fiscal year 2000 budget,
13emergency rules to implement any provision of this amendatory
14Act of the 91st General Assembly or any other budget initiative
15for fiscal year 2000 may be adopted in accordance with this
16Section by the agency charged with administering that provision
17or initiative, except that the 24-month limitation on the
18adoption of emergency rules and the provisions of Sections
195-115 and 5-125 do not apply to rules adopted under this
20subsection (e). The adoption of emergency rules authorized by
21this subsection (e) shall be deemed to be necessary for the
22public interest, safety, and welfare.
23 (f) In order to provide for the expeditious and timely
24implementation of the State's fiscal year 2001 budget,
25emergency rules to implement any provision of this amendatory
26Act of the 91st General Assembly or any other budget initiative

09800SB1739sam001- 58 -LRB098 10559 AMC 42403 a
1for fiscal year 2001 may be adopted in accordance with this
2Section by the agency charged with administering that provision
3or initiative, except that the 24-month limitation on the
4adoption of emergency rules and the provisions of Sections
55-115 and 5-125 do not apply to rules adopted under this
6subsection (f). The adoption of emergency rules authorized by
7this subsection (f) shall be deemed to be necessary for the
8public interest, safety, and welfare.
9 (g) In order to provide for the expeditious and timely
10implementation of the State's fiscal year 2002 budget,
11emergency rules to implement any provision of this amendatory
12Act of the 92nd General Assembly or any other budget initiative
13for fiscal year 2002 may be adopted in accordance with this
14Section by the agency charged with administering that provision
15or initiative, except that the 24-month limitation on the
16adoption of emergency rules and the provisions of Sections
175-115 and 5-125 do not apply to rules adopted under this
18subsection (g). The adoption of emergency rules authorized by
19this subsection (g) shall be deemed to be necessary for the
20public interest, safety, and welfare.
21 (h) In order to provide for the expeditious and timely
22implementation of the State's fiscal year 2003 budget,
23emergency rules to implement any provision of this amendatory
24Act of the 92nd General Assembly or any other budget initiative
25for fiscal year 2003 may be adopted in accordance with this
26Section by the agency charged with administering that provision

09800SB1739sam001- 59 -LRB098 10559 AMC 42403 a
1or initiative, except that the 24-month limitation on the
2adoption of emergency rules and the provisions of Sections
35-115 and 5-125 do not apply to rules adopted under this
4subsection (h). The adoption of emergency rules authorized by
5this subsection (h) shall be deemed to be necessary for the
6public interest, safety, and welfare.
7 (i) In order to provide for the expeditious and timely
8implementation of the State's fiscal year 2004 budget,
9emergency rules to implement any provision of this amendatory
10Act of the 93rd General Assembly or any other budget initiative
11for fiscal year 2004 may be adopted in accordance with this
12Section by the agency charged with administering that provision
13or initiative, except that the 24-month limitation on the
14adoption of emergency rules and the provisions of Sections
155-115 and 5-125 do not apply to rules adopted under this
16subsection (i). The adoption of emergency rules authorized by
17this subsection (i) shall be deemed to be necessary for the
18public interest, safety, and welfare.
19 (j) In order to provide for the expeditious and timely
20implementation of the provisions of the State's fiscal year
212005 budget as provided under the Fiscal Year 2005 Budget
22Implementation (Human Services) Act, emergency rules to
23implement any provision of the Fiscal Year 2005 Budget
24Implementation (Human Services) Act may be adopted in
25accordance with this Section by the agency charged with
26administering that provision, except that the 24-month

09800SB1739sam001- 60 -LRB098 10559 AMC 42403 a
1limitation on the adoption of emergency rules and the
2provisions of Sections 5-115 and 5-125 do not apply to rules
3adopted under this subsection (j). The Department of Public Aid
4may also adopt rules under this subsection (j) necessary to
5administer the Illinois Public Aid Code and the Children's
6Health Insurance Program Act. The adoption of emergency rules
7authorized by this subsection (j) shall be deemed to be
8necessary for the public interest, safety, and welfare.
9 (k) In order to provide for the expeditious and timely
10implementation of the provisions of the State's fiscal year
112006 budget, emergency rules to implement any provision of this
12amendatory Act of the 94th General Assembly or any other budget
13initiative for fiscal year 2006 may be adopted in accordance
14with this Section by the agency charged with administering that
15provision or initiative, except that the 24-month limitation on
16the adoption of emergency rules and the provisions of Sections
175-115 and 5-125 do not apply to rules adopted under this
18subsection (k). The Department of Healthcare and Family
19Services may also adopt rules under this subsection (k)
20necessary to administer the Illinois Public Aid Code, the
21Senior Citizens and Disabled Persons Property Tax Relief Act,
22the Senior Citizens and Disabled Persons Prescription Drug
23Discount Program Act (now the Illinois Prescription Drug
24Discount Program Act), and the Children's Health Insurance
25Program Act. The adoption of emergency rules authorized by this
26subsection (k) shall be deemed to be necessary for the public

09800SB1739sam001- 61 -LRB098 10559 AMC 42403 a
1interest, safety, and welfare.
2 (l) In order to provide for the expeditious and timely
3implementation of the provisions of the State's fiscal year
42007 budget, the Department of Healthcare and Family Services
5may adopt emergency rules during fiscal year 2007, including
6rules effective July 1, 2007, in accordance with this
7subsection to the extent necessary to administer the
8Department's responsibilities with respect to amendments to
9the State plans and Illinois waivers approved by the federal
10Centers for Medicare and Medicaid Services necessitated by the
11requirements of Title XIX and Title XXI of the federal Social
12Security Act. The adoption of emergency rules authorized by
13this subsection (l) shall be deemed to be necessary for the
14public interest, safety, and welfare.
15 (m) In order to provide for the expeditious and timely
16implementation of the provisions of the State's fiscal year
172008 budget, the Department of Healthcare and Family Services
18may adopt emergency rules during fiscal year 2008, including
19rules effective July 1, 2008, in accordance with this
20subsection to the extent necessary to administer the
21Department's responsibilities with respect to amendments to
22the State plans and Illinois waivers approved by the federal
23Centers for Medicare and Medicaid Services necessitated by the
24requirements of Title XIX and Title XXI of the federal Social
25Security Act. The adoption of emergency rules authorized by
26this subsection (m) shall be deemed to be necessary for the

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1public interest, safety, and welfare.
2 (n) In order to provide for the expeditious and timely
3implementation of the provisions of the State's fiscal year
42010 budget, emergency rules to implement any provision of this
5amendatory Act of the 96th General Assembly or any other budget
6initiative authorized by the 96th General Assembly for fiscal
7year 2010 may be adopted in accordance with this Section by the
8agency charged with administering that provision or
9initiative. The adoption of emergency rules authorized by this
10subsection (n) shall be deemed to be necessary for the public
11interest, safety, and welfare. The rulemaking authority
12granted in this subsection (n) shall apply only to rules
13promulgated during Fiscal Year 2010.
14 (o) In order to provide for the expeditious and timely
15implementation of the provisions of the State's fiscal year
162011 budget, emergency rules to implement any provision of this
17amendatory Act of the 96th General Assembly or any other budget
18initiative authorized by the 96th General Assembly for fiscal
19year 2011 may be adopted in accordance with this Section by the
20agency charged with administering that provision or
21initiative. The adoption of emergency rules authorized by this
22subsection (o) is deemed to be necessary for the public
23interest, safety, and welfare. The rulemaking authority
24granted in this subsection (o) applies only to rules
25promulgated on or after the effective date of this amendatory
26Act of the 96th General Assembly through June 30, 2011.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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1 months after being placed in service, the Personal Property
2 Tax Replacement Income Tax for such taxable year shall be
3 increased. Such increase shall be determined by (i)
4 recomputing the investment credit which would have been
5 allowed for the year in which credit for such property was
6 originally allowed by eliminating such property from such
7 computation and, (ii) subtracting such recomputed credit
8 from the amount of credit previously allowed. For the
9 purposes of this paragraph (7), a reduction of the basis of
10 qualified property resulting from a redetermination of the
11 purchase price shall be deemed a disposition of qualified
12 property to the extent of such reduction.
13 (8) Unless the investment credit is extended by law,
14 the basis of qualified property shall not include costs
15 incurred after December 31, 2018, except for costs incurred
16 pursuant to a binding contract entered into on or before
17 December 31, 2018.
18 (9) Each taxable year ending before December 31, 2000,
19 a partnership may elect to pass through to its partners the
20 credits to which the partnership is entitled under this
21 subsection (e) for the taxable year. A partner may use the
22 credit allocated to him or her under this paragraph only
23 against the tax imposed in subsections (c) and (d) of this
24 Section. If the partnership makes that election, those
25 credits shall be allocated among the partners in the
26 partnership in accordance with the rules set forth in

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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1 games conducted on a riverboat or in a casino or electronic
2 gaming facility licensed under the Illinois Gambling Act
3 must withhold Illinois income tax from such payment at a
4 rate equal to the percentage tax rate for individuals
5 provided in subsection (b) of Section 201, provided that
6 the person making the payment is required to withhold under
7 Section 3402(q) of the Internal Revenue Code.
8 (b) Credit for taxes withheld. Any amount withheld under
9Subsection (a) shall be a credit against the Illinois income
10tax liability of the person to whom the payment of winnings was
11made for the taxable year in which that person incurred an
12Illinois income tax liability with respect to those winnings.
13(Source: P.A. 85-731.)
14 Section 90-23. The Property Tax Code is amended by adding
15Section 15-144 as follows:
16 (35 ILCS 200/15-144 new)
17 Sec. 15-144. Chicago Casino Development Authority. All
18property owned by the Chicago Casino Development Authority is
19exempt. Any property owned by the Chicago Casino Development
20Authority and leased to any other entity is not exempt.
21 Section 90-24. The Illinois Municipal Code is amended by
22adding Section 8-10-2.6 as follows:

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

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

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

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

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

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

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

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

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

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

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1Agriculture shall be exempt from the requirements of Sections
215.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
3(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
4and 25. The Board and the Department of Agriculture may extend
5any or all of these exemptions to any contractor or agent
6engaged by the Department of Agriculture to conduct its race
7meetings when the Board determines that this would best serve
8the public interest and the interest of horse racing.
9 Notwithstanding any provision of law to the contrary, it
10shall be lawful for any licensee to operate pari-mutuel
11wagering or contract with the Department of Agriculture to
12operate pari-mutuel wagering at the DuQuoin State Fairgrounds
13or for the Department to enter into contracts with a licensee,
14employ its owners, employees or agents and employ such other
15occupation licensees as the Department deems necessary in
16connection with race meetings and wagerings.
17 (b) The Board is vested with the full power to promulgate
18reasonable rules and regulations for the purpose of
19administering the provisions of this Act and to prescribe
20reasonable rules, regulations and conditions under which all
21horse race meetings or wagering in the State shall be
22conducted. Such reasonable rules and regulations are to provide
23for the prevention of practices detrimental to the public
24interest and to promote the best interests of horse racing and
25to impose penalties for violations thereof.
26 (c) The Board, and any person or persons to whom it

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1delegates this power, is vested with the power to enter the
2facilities and other places of business of any licensee to
3determine whether there has been compliance with the provisions
4of this Act and its rules and regulations.
5 (d) The Board, and any person or persons to whom it
6delegates this power, is vested with the authority to
7investigate alleged violations of the provisions of this Act,
8its reasonable rules and regulations, orders and final
9decisions; the Board shall take appropriate disciplinary
10action against any licensee or occupation licensee for
11violation thereof or institute appropriate legal action for the
12enforcement thereof.
13 (e) The Board, and any person or persons to whom it
14delegates this power, may eject or exclude from any race
15meeting or the facilities of any licensee, or any part thereof,
16any occupation licensee or any other individual whose conduct
17or reputation is such that his presence on those facilities
18may, in the opinion of the Board, call into question the
19honesty and integrity of horse racing or wagering or interfere
20with the orderly conduct of horse racing or wagering; provided,
21however, that no person shall be excluded or ejected from the
22facilities of any licensee solely on the grounds of race,
23color, creed, national origin, ancestry, or sex. The power to
24eject or exclude an occupation licensee or other individual may
25be exercised for just cause by the licensee or the Board,
26subject to subsequent hearing by the Board as to the propriety

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1of said exclusion.
2 (f) The Board is vested with the power to acquire,
3establish, maintain and operate (or provide by contract to
4maintain and operate) testing laboratories and related
5facilities, for the purpose of conducting saliva, blood, urine
6and other tests on the horses run or to be run in any horse race
7meeting, including races run at county fairs, and to purchase
8all equipment and supplies deemed necessary or desirable in
9connection with any such testing laboratories and related
10facilities and all such tests.
11 (g) The Board may require that the records, including
12financial or other statements of any licensee or any person
13affiliated with the licensee who is involved directly or
14indirectly in the activities of any licensee as regulated under
15this Act to the extent that those financial or other statements
16relate to such activities be kept in such manner as prescribed
17by the Board, and that Board employees shall have access to
18those records during reasonable business hours. Within 120 days
19of the end of its fiscal year, each licensee shall transmit to
20the Board an audit of the financial transactions and condition
21of the licensee's total operations. All audits shall be
22conducted by certified public accountants. Each certified
23public accountant must be registered in the State of Illinois
24under the Illinois Public Accounting Act. The compensation for
25each certified public accountant shall be paid directly by the
26licensee to the certified public accountant. A licensee shall

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1also submit any other financial or related information the
2Board deems necessary to effectively administer this Act and
3all rules, regulations, and final decisions promulgated under
4this Act.
5 (h) The Board shall name and appoint in the manner provided
6by the rules and regulations of the Board: an Executive
7Director; a State director of mutuels; State veterinarians and
8representatives to take saliva, blood, urine and other tests on
9horses; licensing personnel; revenue inspectors; and State
10seasonal employees (excluding admission ticket sellers and
11mutuel clerks). All of those named and appointed as provided in
12this subsection shall serve during the pleasure of the Board;
13their compensation shall be determined by the Board and be paid
14in the same manner as other employees of the Board under this
15Act.
16 (i) The Board shall require that there shall be 3 stewards
17at each horse race meeting, at least 2 of whom shall be named
18and appointed by the Board. Stewards appointed or approved by
19the Board, while performing duties required by this Act or by
20the Board, shall be entitled to the same rights and immunities
21as granted to Board members and Board employees in Section 10
22of this Act.
23 (j) The Board may discharge any Board employee who fails or
24refuses for any reason to comply with the rules and regulations
25of the Board, or who, in the opinion of the Board, is guilty of
26fraud, dishonesty or who is proven to be incompetent. The Board

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1shall have no right or power to determine who shall be
2officers, directors or employees of any licensee, or their
3salaries except the Board may, by rule, require that all or any
4officials or employees in charge of or whose duties relate to
5the actual running of races be approved by the Board.
6 (k) The Board is vested with the power to appoint delegates
7to execute any of the powers granted to it under this Section
8for the purpose of administering this Act and any rules or
9regulations promulgated in accordance with this Act.
10 (l) The Board is vested with the power to impose civil
11penalties of up to $5,000 against an individual and up to
12$10,000 against a licensee for each violation of any provision
13of this Act, any rules adopted by the Board, any order of the
14Board or any other action which, in the Board's discretion, is
15a detriment or impediment to horse racing or wagering.
16Beginning on the date when any organization licensee begins
17conducting electronic gaming pursuant to an electronic gaming
18license issued under the Illinois Gambling Act, the power
19granted to the Board pursuant to this subsection (l) shall
20authorize the Board to impose penalties of up to $10,000
21against an individual and up to $25,000 against a licensee. All
22such civil penalties shall be deposited into the Horse Racing
23Fund.
24 (m) The Board is vested with the power to prescribe a form
25to be used by licensees as an application for employment for
26employees of each licensee.

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1 (n) The Board shall have the power to issue a license to
2any county fair, or its agent, authorizing the conduct of the
3pari-mutuel system of wagering. The Board is vested with the
4full power to promulgate reasonable rules, regulations and
5conditions under which all horse race meetings licensed
6pursuant to this subsection shall be held and conducted,
7including rules, regulations and conditions for the conduct of
8the pari-mutuel system of wagering. The rules, regulations and
9conditions shall provide for the prevention of practices
10detrimental to the public interest and for the best interests
11of horse racing, and shall prescribe penalties for violations
12thereof. Any authority granted the Board under this Act shall
13extend to its jurisdiction and supervision over county fairs,
14or their agents, licensed pursuant to this subsection. However,
15the Board may waive any provision of this Act or its rules or
16regulations which would otherwise apply to such county fairs or
17their agents.
18 (o) Whenever the Board is authorized or required by law to
19consider some aspect of criminal history record information for
20the purpose of carrying out its statutory powers and
21responsibilities, then, upon request and payment of fees in
22conformance with the requirements of Section 2605-400 of the
23Department of State Police Law (20 ILCS 2605/2605-400), the
24Department of State Police is authorized to furnish, pursuant
25to positive identification, such information contained in
26State files as is necessary to fulfill the request.

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1 (p) To insure the convenience, comfort, and wagering
2accessibility of race track patrons, to provide for the
3maximization of State revenue, and to generate increases in
4purse allotments to the horsemen, the Board shall require any
5licensee to staff the pari-mutuel department with adequate
6personnel.
7(Source: P.A. 97-1060, eff. 8-24-12.)
8 (230 ILCS 5/15) (from Ch. 8, par. 37-15)
9 Sec. 15. (a) The Board shall, in its discretion, issue
10occupation licenses to horse owners, trainers, harness
11drivers, jockeys, agents, apprentices, grooms, stable foremen,
12exercise persons, veterinarians, valets, blacksmiths,
13concessionaires and others designated by the Board whose work,
14in whole or in part, is conducted upon facilities within the
15State. Such occupation licenses will be obtained prior to the
16persons engaging in their vocation upon such facilities. The
17Board shall not license pari-mutuel clerks, parking
18attendants, security guards and employees of concessionaires.
19No occupation license shall be required of any person who works
20at facilities within this State as a pari-mutuel clerk, parking
21attendant, security guard or as an employee of a
22concessionaire. Concessionaires of the Illinois State Fair and
23DuQuoin State Fair and employees of the Illinois Department of
24Agriculture shall not be required to obtain an occupation
25license by the Board.

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1 (b) Each application for an occupation license shall be on
2forms prescribed by the Board. Such license, when issued, shall
3be for the period ending December 31 of each year, except that
4the Board in its discretion may grant 3-year licenses. The
5application shall be accompanied by a fee of not more than $25
6per year or, in the case of 3-year occupation license
7applications, a fee of not more than $60. Each applicant shall
8set forth in the application his full name and address, and if
9he had been issued prior occupation licenses or has been
10licensed in any other state under any other name, such name,
11his age, whether or not a permit or license issued to him in
12any other state has been suspended or revoked and if so whether
13such suspension or revocation is in effect at the time of the
14application, and such other information as the Board may
15require. Fees for registration of stable names shall not exceed
16$50.00. Beginning on the date when any organization licensee
17begins conducting electronic gaming pursuant to an electronic
18gambling license issued under the Illinois Gambling Act, the
19fee for registration of stable names shall not exceed $150, and
20the application fee for an occupation license shall not exceed
21$75, per year or, in the case of a 3-year occupation license
22application, the fee shall not exceed $180.
23 (c) The Board may in its discretion refuse an occupation
24license to any person:
25 (1) who has been convicted of a crime;
26 (2) who is unqualified to perform the duties required

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1 of such applicant;
2 (3) who fails to disclose or states falsely any
3 information called for in the application;
4 (4) who has been found guilty of a violation of this
5 Act or of the rules and regulations of the Board; or
6 (5) whose license or permit has been suspended, revoked
7 or denied for just cause in any other state.
8 (d) The Board may suspend or revoke any occupation license:
9 (1) for violation of any of the provisions of this Act;
10 or
11 (2) for violation of any of the rules or regulations of
12 the Board; or
13 (3) for any cause which, if known to the Board, would
14 have justified the Board in refusing to issue such
15 occupation license; or
16 (4) for any other just cause.
17 (e) Each applicant shall submit his or her fingerprints
18to the Department of State Police in the form and manner
19prescribed by the Department of State Police. These
20fingerprints shall be checked against the fingerprint records
21now and hereafter filed in the Department of State Police and
22Federal Bureau of Investigation criminal history records
23databases. The Department of State Police shall charge a fee
24for conducting the criminal history records check, which shall
25be deposited in the State Police Services Fund and shall not
26exceed the actual cost of the records check. The Department of

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1State Police shall furnish, pursuant to positive
2identification, records of conviction to the Board. Each
3applicant for licensure shall submit with his occupation
4license application, on forms provided by the Board, 2 sets of
5his fingerprints. All such applicants shall appear in person at
6the location designated by the Board for the purpose of
7submitting such sets of fingerprints; however, with the prior
8approval of a State steward, an applicant may have such sets of
9fingerprints taken by an official law enforcement agency and
10submitted to the Board.
11 (f) The Board may, in its discretion, issue an occupation
12license without submission of fingerprints if an applicant has
13been duly licensed in another recognized racing jurisdiction
14after submitting fingerprints that were subjected to a Federal
15Bureau of Investigation criminal history background check in
16that jurisdiction.
17 (g) Beginning on the date when any organization licensee
18begins conducting electronic gambling pursuant to an
19electronic gaming license issued under the Illinois Gambling
20Act, the Board may charge each applicant a reasonable
21non-refundable fee to defray the costs associated with the
22background investigation conducted by the Board. This fee shall
23be exclusive of any other fee or fees charged in connection
24with an application for and, if applicable, the issuance of, an
25electronic gaming license. If the costs of the investigation
26exceed the amount of the fee charged, the Board shall

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1immediately notify the applicant of the additional amount owed,
2payment of which must be submitted to the Board within 7 days
3after such notification. All information, records, interviews,
4reports, statements, memoranda, or other data supplied to or
5used by the Board in the course of its review or investigation
6of an applicant for a license or renewal under this Act shall
7be privileged, strictly confidential, and shall be used only
8for the purpose of evaluating an applicant for a license or a
9renewal. Such information, records, interviews, reports,
10statements, memoranda, or other data shall not be admissible as
11evidence, nor discoverable, in any action of any kind in any
12court or before any tribunal, board, agency, or person, except
13for any action deemed necessary by the Board.
14(Source: P.A. 93-418, eff. 1-1-04.)
15 (230 ILCS 5/18) (from Ch. 8, par. 37-18)
16 Sec. 18. (a) Together with its application, each applicant
17for racing dates shall deliver to the Board a certified check
18or bank draft payable to the order of the Board for $1,000. In
19the event the applicant applies for racing dates in 2 or 3
20successive calendar years as provided in subsection (b) of
21Section 21, the fee shall be $2,000. Filing fees shall not be
22refunded in the event the application is denied. Beginning on
23the date when any organization licensee begins conducting
24electronic gaming pursuant to an electronic gaming license
25issued under the Illinois Gambling Act, the application fee for

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1racing dates imposed by this subsection (a) shall be $10,000
2and the application fee for racing dates in 2 or 3 successive
3calendar years as provided in subsection (b) of Section 21
4shall be $20,000. All filing fees shall be deposited into the
5Horse Racing Fund.
6 (b) In addition to the filing fee imposed by subsection (a)
7of $1000 and the fees provided in subsection (j) of Section 20,
8each organization licensee shall pay a license fee of $100 for
9each racing program on which its daily pari-mutuel handle is
10$400,000 or more but less than $700,000, and a license fee of
11$200 for each racing program on which its daily pari-mutuel
12handle is $700,000 or more. The additional fees required to be
13paid under this Section by this amendatory Act of 1982 shall be
14remitted by the organization licensee to the Illinois Racing
15Board with each day's graduated privilege tax or pari-mutuel
16tax and breakage as provided under Section 27. Beginning on the
17date when any organization licensee begins conducting
18electronic gaming pursuant to an electronic gaming license
19issued under the Illinois Gambling Act, the license fee imposed
20by this subsection (b) shall be $200 for each racing program on
21which the organization licensee's daily pari-mutuel handle is
22$100,000 or more, but less than $400,000, and the license fee
23imposed by this subsection (b) shall be $400 for each racing
24program on which the organization licensee's daily pari-mutuel
25handle is $400,000 or more.
26 (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois

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1Municipal Code," approved May 29, 1961, as now or hereafter
2amended, shall not apply to any license under this Act.
3(Source: P.A. 97-1060, eff. 8-24-12.)
4 (230 ILCS 5/19) (from Ch. 8, par. 37-19)
5 Sec. 19. (a) No organization license may be granted to
6conduct a horse race meeting:
7 (1) except as provided in subsection (c) of Section 21
8 of this Act, to any person at any place within 35 miles of
9 any other place licensed by the Board to hold a race
10 meeting on the same date during the same hours, the mileage
11 measurement used in this subsection (a) shall be certified
12 to the Board by the Bureau of Systems and Services in the
13 Illinois Department of Transportation as the most commonly
14 used public way of vehicular travel;
15 (2) to any person in default in the payment of any
16 obligation or debt due the State under this Act, provided
17 no applicant shall be deemed in default in the payment of
18 any obligation or debt due to the State under this Act as
19 long as there is pending a hearing of any kind relevant to
20 such matter;
21 (3) to any person who has been convicted of the
22 violation of any law of the United States or any State law
23 which provided as all or part of its penalty imprisonment
24 in any penal institution; to any person against whom there
25 is pending a Federal or State criminal charge; to any

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1 person who is or has been connected with or engaged in the
2 operation of any illegal business; to any person who does
3 not enjoy a general reputation in his community of being an
4 honest, upright, law-abiding person; provided that none of
5 the matters set forth in this subparagraph (3) shall make
6 any person ineligible to be granted an organization license
7 if the Board determines, based on circumstances of any such
8 case, that the granting of a license would not be
9 detrimental to the interests of horse racing and of the
10 public;
11 (4) to any person who does not at the time of
12 application for the organization license own or have a
13 contract or lease for the possession of a finished race
14 track suitable for the type of racing intended to be held
15 by the applicant and for the accommodation of the public.
16 (b) (Blank) Horse racing on Sunday shall be prohibited
17unless authorized by ordinance or referendum of the
18municipality in which a race track or any of its appurtenances
19or facilities are located, or utilized.
20 (c) If any person is ineligible to receive an organization
21license because of any of the matters set forth in subsection
22(a) (2) or subsection (a) (3) of this Section, any other or
23separate person that either (i) controls, directly or
24indirectly, such ineligible person or (ii) is controlled,
25directly or indirectly, by such ineligible person or by a
26person which controls, directly or indirectly, such ineligible

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1person shall also be ineligible.
2(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
3 (230 ILCS 5/20) (from Ch. 8, par. 37-20)
4 Sec. 20. (a) Any person desiring to conduct a horse race
5meeting may apply to the Board for an organization license. The
6application shall be made on a form prescribed and furnished by
7the Board. The application shall specify:
8 (1) the dates on which it intends to conduct the horse
9 race meeting, which dates shall be provided under Section
10 21;
11 (2) the hours of each racing day between which it
12 intends to hold or conduct horse racing at such meeting;
13 (3) the location where it proposes to conduct the
14 meeting; and
15 (4) any other information the Board may reasonably
16 require.
17 (b) A separate application for an organization license
18shall be filed for each horse race meeting which such person
19proposes to hold. Any such application, if made by an
20individual, or by any individual as trustee, shall be signed
21and verified under oath by such individual. If the application
22is made by individuals, then it shall be signed and verified
23under oath by at least 2 of the individuals; if the application
24is made by or a partnership, it shall be signed and verified
25under oath by at least 2 of such individuals or members of such

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1partnership as the case may be. If made by an association, a
2corporation, a corporate trustee, a limited liability company,
3or any other entity, it shall be signed by an authorized
4officer, a partner, a member, or a manager, as the case may be,
5of the entity the president and attested by the secretary or
6assistant secretary under the seal of such association, trust
7or corporation if it has a seal, and shall also be verified
8under oath by one of the signing officers.
9 (c) The application shall specify:
10 (1) the name of the persons, association, trust, or
11 corporation making such application; and
12 (2) the principal post office address of the applicant;
13 (3) if the applicant is a trustee, the names and
14 addresses of the beneficiaries; if the applicant is a
15 corporation, the names and post office addresses of all
16 officers, stockholders and directors; or if such
17 stockholders hold stock as a nominee or fiduciary, the
18 names and post office addresses of the parties these
19 persons, partnerships, corporations, or trusts who are the
20 beneficial owners thereof or who are beneficially
21 interested therein; and if the applicant is a partnership,
22 the names and post office addresses of all partners,
23 general or limited; if the applicant is a limited liability
24 company, the names and addresses of the manager and
25 members; and if the applicant is any other entity, the
26 names and addresses of all officers or other authorized

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1 persons of the entity corporation, the name of the state of
2 its incorporation shall be specified.
3 (d) The applicant shall execute and file with the Board a
4good faith affirmative action plan to recruit, train, and
5upgrade minorities in all classifications within the
6association.
7 (e) With such application there shall be delivered to the
8Board a certified check or bank draft payable to the order of
9the Board for an amount equal to $1,000. All applications for
10the issuance of an organization license shall be filed with the
11Board before August 1 of the year prior to the year for which
12application is made and shall be acted upon by the Board at a
13meeting to be held on such date as shall be fixed by the Board
14during the last 15 days of September of such prior year. At
15such meeting, the Board shall announce the award of the racing
16meets, live racing schedule, and designation of host track to
17the applicants and its approval or disapproval of each
18application. No announcement shall be considered binding until
19a formal order is executed by the Board, which shall be
20executed no later than October 15 of that prior year. Absent
21the agreement of the affected organization licensees, the Board
22shall not grant overlapping race meetings to 2 or more tracks
23that are within 100 miles of each other to conduct the
24thoroughbred racing.
25 (e-1) In awarding standardbred racing dates for calendar
26year 2014 and thereafter, the Board shall award at least 310

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1racing days, and each organization licensee shall average at
2least 12 races for each racing day awarded. The Board shall
3have the discretion to allocate those racing days among
4organization licensees requesting standardbred racing dates.
5Once awarded by the Board, organization licensees awarded
6standardbred racing dates shall run at least 3,500 races in
7total during that calendar year. Standardbred racing conducted
8in Sangamon County shall not be considered races under this
9subsection (e-1).
10 (e-2) In awarding racing dates for calendar year 2014 and
11thereafter, the Board shall award thoroughbred racing days to
12Cook County organization licensees commensurate with these
13organization licensees' requirement that they shall run at
14least 1,950 thoroughbred races in the aggregate, so long as 2
15organization licensees are conducting electronic gaming
16operations. Additionally, if the organization licensees that
17run thoroughbred races in Cook County are conducting electronic
18gaming operations, the Board shall increase the number of
19thoroughbred races to be run in Cook County in the aggregate to
20at least the following:
21 (i) 2,050 races in any year following the most recent
22 preceding complete calendar year when the combined
23 adjusted gross receipts of the electronic gaming licensees
24 operating at Cook County race tracks total in excess of
25 $200,000,000, but do not exceed $250,000,000;
26 (ii) 2,125 races in any year following the most recent

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

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1 adjusted gross receipts of the electronic gaming licensees
2 operating at Cook County race tracks exceeds $500,000,000.
3 In awarding racing dates under this subsection (e-2), the
4Board shall have the discretion to allocate those thoroughbred
5racing dates among these Cook County organization licensees.
6 (e-3) In awarding racing dates for calendar year 2014 and
7thereafter in connection with a race track in Madison County,
8the Board shall award racing dates and such organization
9licensee shall run at least 700 thoroughbred races at the race
10track in Madison County each year.
11 Notwithstanding Section 7.6 of the Illinois Gambling Act or
12any provision of this Act other than subsection (e-4.5), for
13each calendar year for which an electronic gaming licensee
14located in Madison County requests racing dates resulting in
15less than 700 live thoroughbred races at its race track
16facility, the electronic gaming licensee may not conduct
17electronic gaming for the calendar year of such requested live
18races.
19 (e-4) Notwithstanding the provisions of Section 7.6 of the
20Illinois Gambling Act or any provision of this Act other than
21subsections (e-3) and (e-4.5), for each calendar year for which
22an electronic gaming licensee requests racing dates for a
23specific horse breed which results in a number of live races
24for that specific breed under its organization license that is
25less than the total number of live races for that specific
26breed which it conducted in 2011 for standardbred racing and in

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12009 for thoroughbred racing at its race track facility, the
2electronic gaming licensee may not conduct electronic gaming
3for the calendar year of such requested live races.
4 (e-4.5) The Board shall ensure that each organization
5licensee shall individually run a sufficient number of races
6per year to qualify for an electronic gaming license under this
7Act. The General Assembly finds that the minimum live racing
8guarantees contained in subsections (e-1), (e-2), and (e-3) are
9in the best interest of the sport of horse racing, and that
10such guarantees may only be reduced in the limited
11circumstances described in this subsection. The Board may
12decrease the number of racing days without affecting an
13organization licensee's ability to conduct electronic gaming
14only if the Board determines, after notice and hearing, that:
15 (i) a decrease is necessary to maintain a sufficient
16 number of betting interests per race to ensure the
17 integrity of racing;
18 (ii) there are unsafe track conditions due to weather
19 or acts of God;
20 (iii) there is an agreement between an organization
21 licensee and the breed association that is applicable to
22 the involved live racing guarantee, such association
23 representing either the largest number of thoroughbred
24 owners and trainers or the largest number of standardbred
25 owners, trainers and drivers who race horses at the
26 involved organization licensee's racing meeting, so long

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1 as the agreement does not compromise the integrity of the
2 sport of horse racing; or
3 (iv) the horse population or purse levels are
4 insufficient to provide the number of racing opportunities
5 otherwise required in this Act.
6 In decreasing the number of racing dates in accordance with
7this subsection, the Board shall hold a hearing and shall
8provide the public and all interested parties notice and an
9opportunity to be heard. The Board shall accept testimony from
10all interested parties, including any association representing
11owners, trainers, jockeys, or drivers who will be affected by
12the decrease in racing dates. The Board shall provide a written
13explanation of the reasons for the decrease and the Board's
14findings. The written explanation shall include a listing and
15content of all communication between any party and any Illinois
16Racing Board member or staff that does not take place at a
17public meeting of the Board.
18 (e-5) In reviewing an application for the purpose of
19granting an organization license consistent with the best
20interests of the public and the sport of horse racing, the
21Board shall consider:
22 (1) the character, reputation, experience, and
23 financial integrity of the applicant and of any other
24 separate person that either:
25 (i) controls the applicant, directly or
26 indirectly, or

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1 (ii) is controlled, directly or indirectly, by
2 that applicant or by a person who controls, directly or
3 indirectly, that applicant;
4 (2) the applicant's facilities or proposed facilities
5 for conducting horse racing;
6 (3) the total revenue without regard to Section 32.1 to
7 be derived by the State and horsemen from the applicant's
8 conducting a race meeting;
9 (4) the applicant's good faith affirmative action plan
10 to recruit, train, and upgrade minorities in all employment
11 classifications;
12 (5) the applicant's financial ability to purchase and
13 maintain adequate liability and casualty insurance;
14 (6) the applicant's proposed and prior year's
15 promotional and marketing activities and expenditures of
16 the applicant associated with those activities;
17 (7) an agreement, if any, among organization licensees
18 as provided in subsection (b) of Section 21 of this Act;
19 and
20 (8) the extent to which the applicant exceeds or meets
21 other standards for the issuance of an organization license
22 that the Board shall adopt by rule.
23 In granting organization licenses and allocating dates for
24horse race meetings, the Board shall have discretion to
25determine an overall schedule, including required simulcasts
26of Illinois races by host tracks that will, in its judgment, be

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1conducive to the best interests of the public and the sport of
2horse racing.
3 (e-10) The Illinois Administrative Procedure Act shall
4apply to administrative procedures of the Board under this Act
5for the granting of an organization license, except that (1)
6notwithstanding the provisions of subsection (b) of Section
710-40 of the Illinois Administrative Procedure Act regarding
8cross-examination, the Board may prescribe rules limiting the
9right of an applicant or participant in any proceeding to award
10an organization license to conduct cross-examination of
11witnesses at that proceeding where that cross-examination
12would unduly obstruct the timely award of an organization
13license under subsection (e) of Section 20 of this Act; (2) the
14provisions of Section 10-45 of the Illinois Administrative
15Procedure Act regarding proposals for decision are excluded
16under this Act; (3) notwithstanding the provisions of
17subsection (a) of Section 10-60 of the Illinois Administrative
18Procedure Act regarding ex parte communications, the Board may
19prescribe rules allowing ex parte communications with
20applicants or participants in a proceeding to award an
21organization license where conducting those communications
22would be in the best interest of racing, provided all those
23communications are made part of the record of that proceeding
24pursuant to subsection (c) of Section 10-60 of the Illinois
25Administrative Procedure Act; (4) the provisions of Section 14a
26of this Act and the rules of the Board promulgated under that

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1Section shall apply instead of the provisions of Article 10 of
2the Illinois Administrative Procedure Act regarding
3administrative law judges; and (5) the provisions of subsection
4(d) of Section 10-65 of the Illinois Administrative Procedure
5Act that prevent summary suspension of a license pending
6revocation or other action shall not apply.
7 (f) The Board may allot racing dates to an organization
8licensee for more than one calendar year but for no more than 3
9successive calendar years in advance, provided that the Board
10shall review such allotment for more than one calendar year
11prior to each year for which such allotment has been made. The
12granting of an organization license to a person constitutes a
13privilege to conduct a horse race meeting under the provisions
14of this Act, and no person granted an organization license
15shall be deemed to have a vested interest, property right, or
16future expectation to receive an organization license in any
17subsequent year as a result of the granting of an organization
18license. Organization licenses shall be subject to revocation
19if the organization licensee has violated any provision of this
20Act or the rules and regulations promulgated under this Act or
21has been convicted of a crime or has failed to disclose or has
22stated falsely any information called for in the application
23for an organization license. Any organization license
24revocation proceeding shall be in accordance with Section 16
25regarding suspension and revocation of occupation licenses.
26 (f-5) If, (i) an applicant does not file an acceptance of

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1the racing dates awarded by the Board as required under part
2(1) of subsection (h) of this Section 20, or (ii) an
3organization licensee has its license suspended or revoked
4under this Act, the Board, upon conducting an emergency hearing
5as provided for in this Act, may reaward on an emergency basis
6pursuant to rules established by the Board, racing dates not
7accepted or the racing dates associated with any suspension or
8revocation period to one or more organization licensees, new
9applicants, or any combination thereof, upon terms and
10conditions that the Board determines are in the best interest
11of racing, provided, the organization licensees or new
12applicants receiving the awarded racing dates file an
13acceptance of those reawarded racing dates as required under
14paragraph (1) of subsection (h) of this Section 20 and comply
15with the other provisions of this Act. The Illinois
16Administrative Procedure Act shall not apply to the
17administrative procedures of the Board in conducting the
18emergency hearing and the reallocation of racing dates on an
19emergency basis.
20 (g) (Blank).
21 (h) The Board shall send the applicant a copy of its
22formally executed order by certified mail addressed to the
23applicant at the address stated in his application, which
24notice shall be mailed within 5 days of the date the formal
25order is executed.
26 Each applicant notified shall, within 10 days after receipt

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1of the final executed order of the Board awarding racing dates:
2 (1) file with the Board an acceptance of such award in
3 the form prescribed by the Board;
4 (2) pay to the Board an additional amount equal to $110
5 for each racing date awarded; and
6 (3) file with the Board the bonds required in Sections
7 21 and 25 at least 20 days prior to the first day of each
8 race meeting.
9Upon compliance with the provisions of paragraphs (1), (2), and
10(3) of this subsection (h), the applicant shall be issued an
11organization license.
12 If any applicant fails to comply with this Section or fails
13to pay the organization license fees herein provided, no
14organization license shall be issued to such applicant.
15(Source: P.A. 97-333, eff. 8-12-11.)
16 (230 ILCS 5/21) (from Ch. 8, par. 37-21)
17 Sec. 21. (a) Applications for organization licenses must be
18filed with the Board at a time and place prescribed by the
19rules and regulations of the Board. The Board shall examine the
20applications within 21 days after the date allowed for filing
21with respect to their conformity with this Act and such rules
22and regulations as may be prescribed by the Board. If any
23application does not comply with this Act or the rules and
24regulations prescribed by the Board, such application may be
25rejected and an organization license refused to the applicant,

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1or the Board may, within 21 days of the receipt of such
2application, advise the applicant of the deficiencies of the
3application under the Act or the rules and regulations of the
4Board, and require the submittal of an amended application
5within a reasonable time determined by the Board; and upon
6submittal of the amended application by the applicant, the
7Board may consider the application consistent with the process
8described in subsection (e-5) of Section 20 of this Act. If it
9is found to be in compliance with this Act and the rules and
10regulations of the Board, the Board may then issue an
11organization license to such applicant.
12 (b) The Board may exercise discretion in granting racing
13dates to qualified applicants different from those requested by
14the applicants in their applications. However, if all eligible
15applicants for organization licenses whose tracks are located
16within 100 miles of each other execute and submit to the Board
17a written agreement among such applicants as to the award of
18racing dates, including where applicable racing programs, for
19up to 3 consecutive years, then subject to annual review of
20each applicant's compliance with Board rules and regulations,
21provisions of this Act and conditions contained in annual dates
22orders issued by the Board, the Board may grant such dates and
23programs to such applicants as so agreed by them if the Board
24determines that the grant of these racing dates is in the best
25interests of racing. The Board shall treat any such agreement
26as the agreement signatories' joint and several application for

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1racing dates during the term of the agreement.
2 (c) Where 2 or more applicants propose to conduct horse
3race meetings within 35 miles of each other, as certified to
4the Board under Section 19 (a) (1) of this Act, on conflicting
5dates, the Board may determine and grant the number of racing
6days to be awarded to the several applicants in accordance with
7the provisions of subsection (e-5) of Section 20 of this Act.
8 (d) (Blank).
9 (e) Prior to the issuance of an organization license, the
10applicant shall file with the Board a bond payable to the State
11of Illinois in the sum of $200,000, executed by the applicant
12and a surety company or companies authorized to do business in
13this State, and conditioned upon the payment by the
14organization licensee of all taxes due under Section 27, other
15monies due and payable under this Act, all purses due and
16payable, and that the organization licensee will upon
17presentation of the winning ticket or tickets distribute all
18sums due to the patrons of pari-mutuel pools. Beginning on the
19date when any organization licensee begins conducting
20electronic gaming pursuant to an electronic gaming license
21issued under the Illinois Gambling Act, the amount of the bond
22required under this subsection (e) shall be $500,000.
23 (f) Each organization license shall specify the person to
24whom it is issued, the dates upon which horse racing is
25permitted, and the location, place, track, or enclosure where
26the horse race meeting is to be held.

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1 (g) Any person who owns one or more race tracks within the
2State may seek, in its own name, a separate organization
3license for each race track.
4 (h) All racing conducted under such organization license is
5subject to this Act and to the rules and regulations from time
6to time prescribed by the Board, and every such organization
7license issued by the Board shall contain a recital to that
8effect.
9 (i) Each such organization licensee may provide that at
10least one race per day may be devoted to the racing of quarter
11horses, appaloosas, arabians, or paints.
12 (j) In acting on applications for organization licenses,
13the Board shall give weight to an organization license which
14has implemented a good faith affirmative action effort to
15recruit, train and upgrade minorities in all classifications
16within the organization license.
17(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)
18 (230 ILCS 5/24) (from Ch. 8, par. 37-24)
19 Sec. 24. (a) No license shall be issued to or held by an
20organization licensee unless all of its officers, directors,
21and holders of ownership interests of at least 5% are first
22approved by the Board. The Board shall not give approval of an
23organization license application to any person who has been
24convicted of or is under an indictment for a crime of moral
25turpitude or has violated any provision of the racing law of

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1this State or any rules of the Board.
2 (b) An organization licensee must notify the Board within
310 days of any change in the holders of a direct or indirect
4interest in the ownership of the organization licensee. The
5Board may, after hearing, revoke the organization license of
6any person who registers on its books or knowingly permits a
7direct or indirect interest in the ownership of that person
8without notifying the Board of the name of the holder in
9interest within this period.
10 (c) In addition to the provisions of subsection (a) of this
11Section, no person shall be granted an organization license if
12any public official of the State or member of his or her family
13holds any ownership or financial interest, directly or
14indirectly, in the person.
15 (d) No person which has been granted an organization
16license to hold a race meeting shall give to any public
17official or member of his family, directly or indirectly, for
18or without consideration, any interest in the person. The Board
19shall, after hearing, revoke the organization license granted
20to a person which has violated this subsection.
21 (e) (Blank).
22 (f) No organization licensee or concessionaire or officer,
23director or holder or controller of 5% or more legal or
24beneficial interest in any organization licensee or concession
25shall make any sort of gift or contribution that is prohibited
26under Article 10 of the State Officials and Employees Ethics

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1Act of any kind or pay or give any money or other thing of value
2to any person who is a public official, or a candidate or
3nominee for public office if that payment or gift is prohibited
4under Article 10 of the State Officials and Employees Ethics
5Act.
6(Source: P.A. 89-16, eff. 5-30-95.)
7 (230 ILCS 5/25) (from Ch. 8, par. 37-25)
8 Sec. 25. Admission charge; bond; fine.
9 (a) There shall be paid to the Board at such time or times
10as it shall prescribe, the sum of fifteen cents (15¢) for each
11person entering the grounds or enclosure of each organization
12licensee and inter-track wagering licensee upon a ticket of
13admission except as provided in subsection (g) of Section 27 of
14this Act. If tickets are issued for more than one day then the
15sum of fifteen cents (15¢) shall be paid for each person using
16such ticket on each day that the same shall be used. Provided,
17however, that no charge shall be made on tickets of admission
18issued to and in the name of directors, officers, agents or
19employees of the organization licensee, or inter-track
20wagering licensee, or to owners, trainers, jockeys, drivers and
21their employees or to any person or persons entering the
22grounds or enclosure for the transaction of business in
23connection with such race meeting. The organization licensee or
24inter-track wagering licensee may, if it desires, collect such
25amount from each ticket holder in addition to the amount or

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1amounts charged for such ticket of admission. Beginning on the
2date when any organization licensee begins conducting
3electronic gaming pursuant to an electronic gaming license
4issued under the Illinois Gambling Act, the admission charge
5imposed by this subsection (a) shall be 40 cents for each
6person entering the grounds or enclosure of each organization
7licensee and inter-track wagering licensee upon a ticket of
8admission, and if such tickets are issued for more than one
9day, 40 cents shall be paid for each person using such ticket
10on each day that the same shall be used.
11 (b) Accurate records and books shall at all times be kept
12and maintained by the organization licensees and inter-track
13wagering licensees showing the admission tickets issued and
14used on each racing day and the attendance thereat of each
15horse racing meeting. The Board or its duly authorized
16representative or representatives shall at all reasonable
17times have access to the admission records of any organization
18licensee and inter-track wagering licensee for the purpose of
19examining and checking the same and ascertaining whether or not
20the proper amount has been or is being paid the State of
21Illinois as herein provided. The Board shall also require,
22before issuing any license, that the licensee shall execute and
23deliver to it a bond, payable to the State of Illinois, in such
24sum as it shall determine, not, however, in excess of fifty
25thousand dollars ($50,000), with a surety or sureties to be
26approved by it, conditioned for the payment of all sums due and

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1payable or collected by it under this Section upon admission
2fees received for any particular racing meetings. The Board may
3also from time to time require sworn statements of the number
4or numbers of such admissions and may prescribe blanks upon
5which such reports shall be made. Any organization licensee or
6inter-track wagering licensee failing or refusing to pay the
7amount found to be due as herein provided, shall be deemed
8guilty of a business offense and upon conviction shall be
9punished by a fine of not more than five thousand dollars
10($5,000) in addition to the amount due from such organization
11licensee or inter-track wagering licensee as herein provided.
12All fines paid into court by an organization licensee or
13inter-track wagering licensee found guilty of violating this
14Section shall be transmitted and paid over by the clerk of the
15court to the Board. Beginning on the date when any organization
16licensee begins conducting electronic gaming pursuant to an
17electronic gaming license issued under the Illinois Gambling
18Act, any fine imposed pursuant to this subsection (b) shall not
19exceed $10,000.
20(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
21 (230 ILCS 5/26) (from Ch. 8, par. 37-26)
22 Sec. 26. Wagering.
23 (a) Any licensee may conduct and supervise the pari-mutuel
24system of wagering, as defined in Section 3.12 of this Act, on
25horse races conducted by an Illinois organization licensee or

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1conducted at a racetrack located in another state or country
2and televised in Illinois in accordance with subsection (g) of
3Section 26 of this Act. Subject to the prior consent of the
4Board, licensees may supplement any pari-mutuel pool in order
5to guarantee a minimum distribution. Such pari-mutuel method of
6wagering shall not, under any circumstances if conducted under
7the provisions of this Act, be held or construed to be
8unlawful, other statutes of this State to the contrary
9notwithstanding. Subject to rules for advance wagering
10promulgated by the Board, any licensee may accept wagers in
11advance of the day of the race wagered upon occurs.
12 (b) Except for those gaming activities for which a license
13is obtained and authorized under the Illinois Lottery Act, the
14Charitable Games Act, the Raffles Act, or the Illinois Gambling
15Act, no No other method of betting, pool making, wagering or
16gambling shall be used or permitted by the licensee. Each
17licensee may retain, subject to the payment of all applicable
18taxes and purses, an amount not to exceed 17% of all money
19wagered under subsection (a) of this Section, except as may
20otherwise be permitted under this Act.
21 (b-5) An individual may place a wager under the pari-mutuel
22system from any licensed location authorized under this Act
23provided that wager is electronically recorded in the manner
24described in Section 3.12 of this Act. Any wager made
25electronically by an individual while physically on the
26premises of a licensee shall be deemed to have been made at the

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1premises of that licensee.
2 (c) Until January 1, 2000, the sum held by any licensee for
3payment of outstanding pari-mutuel tickets, if unclaimed prior
4to December 31 of the next year, shall be retained by the
5licensee for payment of such tickets until that date. Within 10
6days thereafter, the balance of such sum remaining unclaimed,
7less any uncashed supplements contributed by such licensee for
8the purpose of guaranteeing minimum distributions of any
9pari-mutuel pool, shall be paid to the Illinois Veterans'
10Rehabilitation Fund of the State treasury, except as provided
11in subsection (g) of Section 27 of this Act.
12 (c-5) Beginning January 1, 2000, the sum held by any
13licensee for payment of outstanding pari-mutuel tickets, if
14unclaimed prior to December 31 of the next year, shall be
15retained by the licensee for payment of such tickets until that
16date. Within 10 days thereafter, the balance of such sum
17remaining unclaimed, less any uncashed supplements contributed
18by such licensee for the purpose of guaranteeing minimum
19distributions of any pari-mutuel pool, shall be evenly
20distributed to the purse account of the organization licensee
21and the organization licensee.
22 (d) A pari-mutuel ticket shall be honored until December 31
23of the next calendar year, and the licensee shall pay the same
24and may charge the amount thereof against unpaid money
25similarly accumulated on account of pari-mutuel tickets not
26presented for payment.

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1 (e) No licensee shall knowingly permit any minor, other
2than an employee of such licensee or an owner, trainer, jockey,
3driver, or employee thereof, to be admitted during a racing
4program unless accompanied by a parent or guardian, or any
5minor to be a patron of the pari-mutuel system of wagering
6conducted or supervised by it. The admission of any
7unaccompanied minor, other than an employee of the licensee or
8an owner, trainer, jockey, driver, or employee thereof at a
9race track is a Class C misdemeanor.
10 (f) Notwithstanding the other provisions of this Act, an
11organization licensee may contract with an entity in another
12state or country to permit any legal wagering entity in another
13state or country to accept wagers solely within such other
14state or country on races conducted by the organization
15licensee in this State. Beginning January 1, 2000, these wagers
16shall not be subject to State taxation. Until January 1, 2000,
17when the out-of-State entity conducts a pari-mutuel pool
18separate from the organization licensee, a privilege tax equal
19to 7 1/2% of all monies received by the organization licensee
20from entities in other states or countries pursuant to such
21contracts is imposed on the organization licensee, and such
22privilege tax shall be remitted to the Department of Revenue
23within 48 hours of receipt of the moneys from the simulcast.
24When the out-of-State entity conducts a combined pari-mutuel
25pool with the organization licensee, the tax shall be 10% of
26all monies received by the organization licensee with 25% of

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1the receipts from this 10% tax to be distributed to the county
2in which the race was conducted.
3 An organization licensee may permit one or more of its
4races to be utilized for pari-mutuel wagering at one or more
5locations in other states and may transmit audio and visual
6signals of races the organization licensee conducts to one or
7more locations outside the State or country and may also permit
8pari-mutuel pools in other states or countries to be combined
9with its gross or net wagering pools or with wagering pools
10established by other states.
11 (g) A host track may accept interstate simulcast wagers on
12horse races conducted in other states or countries and shall
13control the number of signals and types of breeds of racing in
14its simulcast program, subject to the disapproval of the Board.
15The Board may prohibit a simulcast program only if it finds
16that the simulcast program is clearly adverse to the integrity
17of racing. The host track simulcast program shall include the
18signal of live racing of all organization licensees. All
19non-host licensees and advance deposit wagering licensees
20shall carry the signal of and accept wagers on live racing of
21all organization licensees. Advance deposit wagering licensees
22shall not be permitted to accept out-of-state wagers on any
23Illinois signal provided pursuant to this Section without the
24approval and consent of the organization licensee providing the
25signal. Non-host licensees may carry the host track simulcast
26program and shall accept wagers on all races included as part

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

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1Advance deposit wagering licensees may place advance deposit
2wagering terminals at wagering facilities as a convenience to
3customers. The advance deposit wagering licensee shall not
4charge or collect any fee from purses for the placement of the
5advance deposit wagering terminals. The costs and expenses of
6the host track and non-host licensees associated with
7interstate simulcast wagering, other than the interstate
8commission fee, shall be borne by the host track and all
9non-host licensees incurring these costs. The interstate
10commission fee shall not exceed 5% of Illinois handle on the
11interstate simulcast race or races without prior approval of
12the Board. The Board shall promulgate rules under which it may
13permit interstate commission fees in excess of 5%. The
14interstate commission fee and other fees charged by the sending
15racetrack, including, but not limited to, satellite decoder
16fees, shall be uniformly applied to the host track and all
17non-host licensees.
18 Notwithstanding any other provision of this Act, for a
19period of one year after the effective date of this amendatory
20Act of the 98th General Assembly until January 1, 2013, an
21organization licensee may maintain a system whereby advance
22deposit wagering may take place or an organization licensee,
23with the consent of the horsemen association representing the
24largest number of owners, breeders, trainers, jockeys, or
25standardbred drivers who race horses at that organization
26licensee's racing meeting, may contract with another person to

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1carry out a system of advance deposit wagering. Such consent
2may not be unreasonably withheld. All advance deposit wagers
3placed from within Illinois must be placed through a
4Board-approved advance deposit wagering licensee; no other
5entity may accept an advance deposit wager from a person within
6Illinois. All advance deposit wagering is subject to any rules
7adopted by the Board. The Board may adopt rules necessary to
8regulate advance deposit wagering through the use of emergency
9rulemaking in accordance with Section 5-45 of the Illinois
10Administrative Procedure Act. The General Assembly finds that
11the adoption of rules to regulate advance deposit wagering is
12deemed an emergency and necessary for the public interest,
13safety, and welfare. An advance deposit wagering licensee may
14retain all moneys as agreed to by contract with an organization
15licensee. Any moneys retained by the organization licensee from
16advance deposit wagering, not including moneys retained by the
17advance deposit wagering licensee, shall be paid 50% to the
18organization licensee's purse account and 50% to the
19organization licensee. If more than one breed races at the same
20race track facility, then the 50% of the moneys to be paid to
21an organization licensee's purse account shall be allocated
22among all organization licensees' purse accounts operating at
23that race track facility proportionately based on the actual
24number of host days that the Board grants to that breed at that
25race track facility in the current calendar year. To the extent
26any fees from advance deposit wagering conducted in Illinois

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1for wagers in Illinois or other states have been placed in
2escrow or otherwise withheld from wagers pending a
3determination of the legality of advance deposit wagering, no
4action shall be brought to declare such wagers or the
5disbursement of any fees previously escrowed illegal.
6 (1) Between the hours of 6:30 a.m. and 6:30 p.m. an
7 intertrack wagering licensee other than the host track may
8 supplement the host track simulcast program with
9 additional simulcast races or race programs, provided that
10 between January 1 and the third Friday in February of any
11 year, inclusive, if no live thoroughbred racing is
12 occurring in Illinois during this period, only
13 thoroughbred races may be used for supplemental interstate
14 simulcast purposes. The Board shall withhold approval for a
15 supplemental interstate simulcast only if it finds that the
16 simulcast is clearly adverse to the integrity of racing. A
17 supplemental interstate simulcast may be transmitted from
18 an intertrack wagering licensee to its affiliated non-host
19 licensees. The interstate commission fee for a
20 supplemental interstate simulcast shall be paid by the
21 non-host licensee and its affiliated non-host licensees
22 receiving the simulcast.
23 (2) Between the hours of 6:30 p.m. and 6:30 a.m. an
24 intertrack wagering licensee other than the host track may
25 receive supplemental interstate simulcasts only with the
26 consent of the host track, except when the Board finds that

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1 the simulcast is clearly adverse to the integrity of
2 racing. Consent granted under this paragraph (2) to any
3 intertrack wagering licensee shall be deemed consent to all
4 non-host licensees. The interstate commission fee for the
5 supplemental interstate simulcast shall be paid by all
6 participating non-host licensees.
7 (3) Each licensee conducting interstate simulcast
8 wagering may retain, subject to the payment of all
9 applicable taxes and the purses, an amount not to exceed
10 17% of all money wagered. If any licensee conducts the
11 pari-mutuel system wagering on races conducted at
12 racetracks in another state or country, each such race or
13 race program shall be considered a separate racing day for
14 the purpose of determining the daily handle and computing
15 the privilege tax of that daily handle as provided in
16 subsection (a) of Section 27. Until January 1, 2000, from
17 the sums permitted to be retained pursuant to this
18 subsection, each intertrack wagering location licensee
19 shall pay 1% of the pari-mutuel handle wagered on simulcast
20 wagering to the Horse Racing Tax Allocation Fund, subject
21 to the provisions of subparagraph (B) of paragraph (11) of
22 subsection (h) of Section 26 of this Act.
23 (4) A licensee who receives an interstate simulcast may
24 combine its gross or net pools with pools at the sending
25 racetracks pursuant to rules established by the Board. All
26 licensees combining their gross pools at a sending

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1 racetrack shall adopt the take-out percentages of the
2 sending racetrack. A licensee may also establish a separate
3 pool and takeout structure for wagering purposes on races
4 conducted at race tracks outside of the State of Illinois.
5 The licensee may permit pari-mutuel wagers placed in other
6 states or countries to be combined with its gross or net
7 wagering pools or other wagering pools.
8 (5) After the payment of the interstate commission fee
9 (except for the interstate commission fee on a supplemental
10 interstate simulcast, which shall be paid by the host track
11 and by each non-host licensee through the host-track) and
12 all applicable State and local taxes, except as provided in
13 subsection (g) of Section 27 of this Act, the remainder of
14 moneys retained from simulcast wagering pursuant to this
15 subsection (g), and Section 26.2 shall be divided as
16 follows:
17 (A) For interstate simulcast wagers made at a host
18 track, 50% to the host track and 50% to purses at the
19 host track.
20 (B) For wagers placed on interstate simulcast
21 races, supplemental simulcasts as defined in
22 subparagraphs (1) and (2), and separately pooled races
23 conducted outside of the State of Illinois made at a
24 non-host licensee, 25% to the host track, 25% to the
25 non-host licensee, and 50% to the purses at the host
26 track.

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1 (6) Notwithstanding any provision in this Act to the
2 contrary, non-host licensees who derive their licenses
3 from a track located in a county with a population in
4 excess of 230,000 and that borders the Mississippi River
5 may receive supplemental interstate simulcast races at all
6 times subject to Board approval, which shall be withheld
7 only upon a finding that a supplemental interstate
8 simulcast is clearly adverse to the integrity of racing.
9 (7) Notwithstanding any provision of this Act to the
10 contrary, after payment of all applicable State and local
11 taxes and interstate commission fees, non-host licensees
12 who derive their licenses from a track located in a county
13 with a population in excess of 230,000 and that borders the
14 Mississippi River shall retain 50% of the retention from
15 interstate simulcast wagers and shall pay 50% to purses at
16 the track from which the non-host licensee derives its
17 license as follows:
18 (A) Between January 1 and the third Friday in
19 February, inclusive, if no live thoroughbred racing is
20 occurring in Illinois during this period, when the
21 interstate simulcast is a standardbred race, the purse
22 share to its standardbred purse account;
23 (B) Between January 1 and the third Friday in
24 February, inclusive, if no live thoroughbred racing is
25 occurring in Illinois during this period, and the
26 interstate simulcast is a thoroughbred race, the purse

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1 share to its interstate simulcast purse pool to be
2 distributed under paragraph (10) of this subsection
3 (g);
4 (C) Between January 1 and the third Friday in
5 February, inclusive, if live thoroughbred racing is
6 occurring in Illinois, between 6:30 a.m. and 6:30 p.m.
7 the purse share from wagers made during this time
8 period to its thoroughbred purse account and between
9 6:30 p.m. and 6:30 a.m. the purse share from wagers
10 made during this time period to its standardbred purse
11 accounts;
12 (D) Between the third Saturday in February and
13 December 31, when the interstate simulcast occurs
14 between the hours of 6:30 a.m. and 6:30 p.m., the purse
15 share to its thoroughbred purse account;
16 (E) Between the third Saturday in February and
17 December 31, when the interstate simulcast occurs
18 between the hours of 6:30 p.m. and 6:30 a.m., the purse
19 share to its standardbred purse account.
20 (7.1) Notwithstanding any other provision of this Act
21 to the contrary, if no standardbred racing is conducted at
22 a racetrack located in Madison County during any calendar
23 year beginning on or after January 1, 2002, all moneys
24 derived by that racetrack from simulcast wagering and
25 inter-track wagering that (1) are to be used for purses and
26 (2) are generated between the hours of 6:30 p.m. and 6:30

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1 a.m. during that calendar year shall be paid as follows:
2 (A) If the licensee that conducts horse racing at
3 that racetrack requests from the Board at least as many
4 racing dates as were conducted in calendar year 2000,
5 80% shall be paid to its thoroughbred purse account;
6 and
7 (B) Twenty percent shall be deposited into the
8 Illinois Colt Stakes Purse Distribution Fund and shall
9 be paid to purses for standardbred races for Illinois
10 conceived and foaled horses conducted at any county
11 fairgrounds. The moneys deposited into the Fund
12 pursuant to this subparagraph (B) shall be deposited
13 within 2 weeks after the day they were generated, shall
14 be in addition to and not in lieu of any other moneys
15 paid to standardbred purses under this Act, and shall
16 not be commingled with other moneys paid into that
17 Fund. The moneys deposited pursuant to this
18 subparagraph (B) shall be allocated as provided by the
19 Department of Agriculture, with the advice and
20 assistance of the Illinois Standardbred Breeders Fund
21 Advisory Board.
22 (7.2) Notwithstanding any other provision of this Act
23 to the contrary, if no thoroughbred racing is conducted at
24 a racetrack located in Madison County during any calendar
25 year beginning on or after January 1, 2002, all moneys
26 derived by that racetrack from simulcast wagering and

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1 inter-track wagering that (1) are to be used for purses and
2 (2) are generated between the hours of 6:30 a.m. and 6:30
3 p.m. during that calendar year shall be deposited as
4 follows:
5 (A) If the licensee that conducts horse racing at
6 that racetrack requests from the Board at least as many
7 racing dates as were conducted in calendar year 2000,
8 80% shall be deposited into its standardbred purse
9 account; and
10 (B) Twenty percent shall be deposited into the
11 Illinois Colt Stakes Purse Distribution Fund. Moneys
12 deposited into the Illinois Colt Stakes Purse
13 Distribution Fund pursuant to this subparagraph (B)
14 shall be paid to Illinois conceived and foaled
15 thoroughbred breeders' programs and to thoroughbred
16 purses for races conducted at any county fairgrounds
17 for Illinois conceived and foaled horses at the
18 discretion of the Department of Agriculture, with the
19 advice and assistance of the Illinois Thoroughbred
20 Breeders Fund Advisory Board. The moneys deposited
21 into the Illinois Colt Stakes Purse Distribution Fund
22 pursuant to this subparagraph (B) shall be deposited
23 within 2 weeks after the day they were generated, shall
24 be in addition to and not in lieu of any other moneys
25 paid to thoroughbred purses under this Act, and shall
26 not be commingled with other moneys deposited into that

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1 Fund.
2 (7.3) If no live standardbred racing is conducted at a
3 racetrack located in Madison County in calendar year 2000
4 or 2001, an organization licensee who is licensed to
5 conduct horse racing at that racetrack shall, before
6 January 1, 2002, pay all moneys derived from simulcast
7 wagering and inter-track wagering in calendar years 2000
8 and 2001 and paid into the licensee's standardbred purse
9 account as follows:
10 (A) Eighty percent to that licensee's thoroughbred
11 purse account to be used for thoroughbred purses; and
12 (B) Twenty percent to the Illinois Colt Stakes
13 Purse Distribution Fund.
14 Failure to make the payment to the Illinois Colt Stakes
15 Purse Distribution Fund before January 1, 2002 shall result
16 in the immediate revocation of the licensee's organization
17 license, inter-track wagering license, and inter-track
18 wagering location license.
19 Moneys paid into the Illinois Colt Stakes Purse
20 Distribution Fund pursuant to this paragraph (7.3) shall be
21 paid to purses for standardbred races for Illinois
22 conceived and foaled horses conducted at any county
23 fairgrounds. Moneys paid into the Illinois Colt Stakes
24 Purse Distribution Fund pursuant to this paragraph (7.3)
25 shall be used as determined by the Department of
26 Agriculture, with the advice and assistance of the Illinois

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1 Standardbred Breeders Fund Advisory Board, shall be in
2 addition to and not in lieu of any other moneys paid to
3 standardbred purses under this Act, and shall not be
4 commingled with any other moneys paid into that Fund.
5 (7.4) If live standardbred racing is conducted at a
6 racetrack located in Madison County at any time in calendar
7 year 2001 before the payment required under paragraph (7.3)
8 has been made, the organization licensee who is licensed to
9 conduct racing at that racetrack shall pay all moneys
10 derived by that racetrack from simulcast wagering and
11 inter-track wagering during calendar years 2000 and 2001
12 that (1) are to be used for purses and (2) are generated
13 between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or
14 2001 to the standardbred purse account at that racetrack to
15 be used for standardbred purses.
16 (8) Notwithstanding any provision in this Act to the
17 contrary, an organization licensee from a track located in
18 a county with a population in excess of 230,000 and that
19 borders the Mississippi River and its affiliated non-host
20 licensees shall not be entitled to share in any retention
21 generated on racing, inter-track wagering, or simulcast
22 wagering at any other Illinois wagering facility.
23 (8.1) Notwithstanding any provisions in this Act to the
24 contrary, if 2 organization licensees are conducting
25 standardbred race meetings concurrently between the hours
26 of 6:30 p.m. and 6:30 a.m., after payment of all applicable

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1 State and local taxes and interstate commission fees, the
2 remainder of the amount retained from simulcast wagering
3 otherwise attributable to the host track and to host track
4 purses shall be split daily between the 2 organization
5 licensees and the purses at the tracks of the 2
6 organization licensees, respectively, based on each
7 organization licensee's share of the total live handle for
8 that day, provided that this provision shall not apply to
9 any non-host licensee that derives its license from a track
10 located in a county with a population in excess of 230,000
11 and that borders the Mississippi River.
12 (9) (Blank).
13 (10) (Blank).
14 (11) (Blank).
15 (12) The Board shall have authority to compel all host
16 tracks to receive the simulcast of any or all races
17 conducted at the Springfield or DuQuoin State fairgrounds
18 and include all such races as part of their simulcast
19 programs.
20 (13) Notwithstanding any other provision of this Act,
21 in the event that the total Illinois pari-mutuel handle on
22 Illinois horse races at all wagering facilities in any
23 calendar year is less than 75% of the total Illinois
24 pari-mutuel handle on Illinois horse races at all such
25 wagering facilities for calendar year 1994, then each
26 wagering facility that has an annual total Illinois

09800SB1739sam001- 285 -LRB098 10559 AMC 42403 a
1 pari-mutuel handle on Illinois horse races that is less
2 than 75% of the total Illinois pari-mutuel handle on
3 Illinois horse races at such wagering facility for calendar
4 year 1994, shall be permitted to receive, from any amount
5 otherwise payable to the purse account at the race track
6 with which the wagering facility is affiliated in the
7 succeeding calendar year, an amount equal to 2% of the
8 differential in total Illinois pari-mutuel handle on
9 Illinois horse races at the wagering facility between that
10 calendar year in question and 1994 provided, however, that
11 a wagering facility shall not be entitled to any such
12 payment until the Board certifies in writing to the
13 wagering facility the amount to which the wagering facility
14 is entitled and a schedule for payment of the amount to the
15 wagering facility, based on: (i) the racing dates awarded
16 to the race track affiliated with the wagering facility
17 during the succeeding year; (ii) the sums available or
18 anticipated to be available in the purse account of the
19 race track affiliated with the wagering facility for purses
20 during the succeeding year; and (iii) the need to ensure
21 reasonable purse levels during the payment period. The
22 Board's certification shall be provided no later than
23 January 31 of the succeeding year. In the event a wagering
24 facility entitled to a payment under this paragraph (13) is
25 affiliated with a race track that maintains purse accounts
26 for both standardbred and thoroughbred racing, the amount

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

09800SB1739sam001- 287 -LRB098 10559 AMC 42403 a
1wagering licensees and inter-track wagering location licensees
2subject to the following terms and conditions:
3 (1) Any person licensed to conduct a race meeting (i)
4 at a track where 60 or more days of racing were conducted
5 during the immediately preceding calendar year or where
6 over the 5 immediately preceding calendar years an average
7 of 30 or more days of racing were conducted annually may be
8 issued an inter-track wagering license; (ii) at a track
9 located in a county that is bounded by the Mississippi
10 River, which has a population of less than 150,000
11 according to the 1990 decennial census, and an average of
12 at least 60 days of racing per year between 1985 and 1993
13 may be issued an inter-track wagering license; or (iii) at
14 a track located in Madison County that conducted at least
15 100 days of live racing during the immediately preceding
16 calendar year may be issued an inter-track wagering
17 license, unless a lesser schedule of live racing is the
18 result of (A) weather, unsafe track conditions, or other
19 acts of God; (B) an agreement between the organization
20 licensee and the associations representing the largest
21 number of owners, trainers, jockeys, or standardbred
22 drivers who race horses at that organization licensee's
23 racing meeting; or (C) a finding by the Board of
24 extraordinary circumstances and that it was in the best
25 interest of the public and the sport to conduct fewer than
26 100 days of live racing. Any such person having operating

09800SB1739sam001- 288 -LRB098 10559 AMC 42403 a
1 control of the racing facility may also receive up to 6
2 inter-track wagering location licenses. In no event shall
3 more than 6 inter-track wagering locations be established
4 for each eligible race track, except that an eligible race
5 track located in a county that has a population of more
6 than 230,000 and that is bounded by the Mississippi River
7 may establish up to 7 inter-track wagering locations. An
8 application for said license shall be filed with the Board
9 prior to such dates as may be fixed by the Board. With an
10 application for an inter-track wagering location license
11 there shall be delivered to the Board a certified check or
12 bank draft payable to the order of the Board for an amount
13 equal to $500. The application shall be on forms prescribed
14 and furnished by the Board. The application shall comply
15 with all other rules, regulations and conditions imposed by
16 the Board in connection therewith.
17 (2) The Board shall examine the applications with
18 respect to their conformity with this Act and the rules and
19 regulations imposed by the Board. If found to be in
20 compliance with the Act and rules and regulations of the
21 Board, the Board may then issue a license to conduct
22 inter-track wagering and simulcast wagering to such
23 applicant. All such applications shall be acted upon by the
24 Board at a meeting to be held on such date as may be fixed
25 by the Board.
26 (3) In granting licenses to conduct inter-track

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1 wagering and simulcast wagering, the Board shall give due
2 consideration to the best interests of the public, of horse
3 racing, and of maximizing revenue to the State.
4 (4) Prior to the issuance of a license to conduct
5 inter-track wagering and simulcast wagering, the applicant
6 shall file with the Board a bond payable to the State of
7 Illinois in the sum of $50,000, executed by the applicant
8 and a surety company or companies authorized to do business
9 in this State, and conditioned upon (i) the payment by the
10 licensee of all taxes due under Section 27 or 27.1 and any
11 other monies due and payable under this Act, and (ii)
12 distribution by the licensee, upon presentation of the
13 winning ticket or tickets, of all sums payable to the
14 patrons of pari-mutuel pools.
15 (5) Each license to conduct inter-track wagering and
16 simulcast wagering shall specify the person to whom it is
17 issued, the dates on which such wagering is permitted, and
18 the track or location where the wagering is to be
19 conducted.
20 (6) All wagering under such license is subject to this
21 Act and to the rules and regulations from time to time
22 prescribed by the Board, and every such license issued by
23 the Board shall contain a recital to that effect.
24 (7) An inter-track wagering licensee or inter-track
25 wagering location licensee may accept wagers at the track
26 or location where it is licensed, or as otherwise provided

09800SB1739sam001- 290 -LRB098 10559 AMC 42403 a
1 under this Act.
2 (8) Inter-track wagering or simulcast wagering shall
3 not be conducted at any track less than 4 5 miles from a
4 track at which a racing meeting is in progress.
5 (8.1) Inter-track wagering location licensees who
6 derive their licenses from a particular organization
7 licensee shall conduct inter-track wagering and simulcast
8 wagering only at locations which are either within 90 miles
9 of that race track where the particular organization
10 licensee is licensed to conduct racing, or within 135 miles
11 of that race track where the particular organization
12 licensee is licensed to conduct racing in the case of race
13 tracks in counties of less than 400,000 that were operating
14 on or before June 1, 1986. However, inter-track wagering
15 and simulcast wagering shall not be conducted by those
16 licensees at any location within 5 miles of any race track
17 at which a horse race meeting has been licensed in the
18 current year, unless the person having operating control of
19 such race track has given its written consent to such
20 inter-track wagering location licensees, which consent
21 must be filed with the Board at or prior to the time
22 application is made.
23 (8.2) Inter-track wagering or simulcast wagering shall
24 not be conducted by an inter-track wagering location
25 licensee at any location within 500 feet of an existing
26 church, an or existing elementary or secondary public

09800SB1739sam001- 291 -LRB098 10559 AMC 42403 a
1 school, or an existing elementary or secondary private
2 school registered with or recognized by the State Board of
3 Education school, nor within 500 feet of the residences of
4 more than 50 registered voters without receiving written
5 permission from a majority of the registered voters at such
6 residences. Such written permission statements shall be
7 filed with the Board. The distance of 500 feet shall be
8 measured to the nearest part of any building used for
9 worship services, education programs, residential
10 purposes, or conducting inter-track wagering by an
11 inter-track wagering location licensee, and not to
12 property boundaries. However, inter-track wagering or
13 simulcast wagering may be conducted at a site within 500
14 feet of a church, school or residences of 50 or more
15 registered voters if such church, school or residences have
16 been erected or established, or such voters have been
17 registered, after the Board issues the original
18 inter-track wagering location license at the site in
19 question. Inter-track wagering location licensees may
20 conduct inter-track wagering and simulcast wagering only
21 in areas that are zoned for commercial or manufacturing
22 purposes or in areas for which a special use has been
23 approved by the local zoning authority. However, no license
24 to conduct inter-track wagering and simulcast wagering
25 shall be granted by the Board with respect to any
26 inter-track wagering location within the jurisdiction of

09800SB1739sam001- 292 -LRB098 10559 AMC 42403 a
1 any local zoning authority which has, by ordinance or by
2 resolution, prohibited the establishment of an inter-track
3 wagering location within its jurisdiction. However,
4 inter-track wagering and simulcast wagering may be
5 conducted at a site if such ordinance or resolution is
6 enacted after the Board licenses the original inter-track
7 wagering location licensee for the site in question.
8 (9) (Blank).
9 (10) An inter-track wagering licensee or an
10 inter-track wagering location licensee may retain, subject
11 to the payment of the privilege taxes and the purses, an
12 amount not to exceed 17% of all money wagered. Each program
13 of racing conducted by each inter-track wagering licensee
14 or inter-track wagering location licensee shall be
15 considered a separate racing day for the purpose of
16 determining the daily handle and computing the privilege
17 tax or pari-mutuel tax on such daily handle as provided in
18 Section 27.
19 (10.1) Except as provided in subsection (g) of Section
20 27 of this Act, inter-track wagering location licensees
21 shall pay 1% of the pari-mutuel handle at each location to
22 the municipality in which such location is situated and 1%
23 of the pari-mutuel handle at each location to the county in
24 which such location is situated. In the event that an
25 inter-track wagering location licensee is situated in an
26 unincorporated area of a county, such licensee shall pay 2%

09800SB1739sam001- 293 -LRB098 10559 AMC 42403 a
1 of the pari-mutuel handle from such location to such
2 county.
3 (10.2) Notwithstanding any other provision of this
4 Act, with respect to intertrack wagering at a race track
5 located in a county that has a population of more than
6 230,000 and that is bounded by the Mississippi River ("the
7 first race track"), or at a facility operated by an
8 inter-track wagering licensee or inter-track wagering
9 location licensee that derives its license from the
10 organization licensee that operates the first race track,
11 on races conducted at the first race track or on races
12 conducted at another Illinois race track and
13 simultaneously televised to the first race track or to a
14 facility operated by an inter-track wagering licensee or
15 inter-track wagering location licensee that derives its
16 license from the organization licensee that operates the
17 first race track, those moneys shall be allocated as
18 follows:
19 (A) That portion of all moneys wagered on
20 standardbred racing that is required under this Act to
21 be paid to purses shall be paid to purses for
22 standardbred races.
23 (B) That portion of all moneys wagered on
24 thoroughbred racing that is required under this Act to
25 be paid to purses shall be paid to purses for
26 thoroughbred races.

09800SB1739sam001- 294 -LRB098 10559 AMC 42403 a
1 (11) (A) After payment of the privilege or pari-mutuel
2 tax, any other applicable taxes, and the costs and expenses
3 in connection with the gathering, transmission, and
4 dissemination of all data necessary to the conduct of
5 inter-track wagering, the remainder of the monies retained
6 under either Section 26 or Section 26.2 of this Act by the
7 inter-track wagering licensee on inter-track wagering
8 shall be allocated with 50% to be split between the 2
9 participating licensees and 50% to purses, except that an
10 intertrack wagering licensee that derives its license from
11 a track located in a county with a population in excess of
12 230,000 and that borders the Mississippi River shall not
13 divide any remaining retention with the Illinois
14 organization licensee that provides the race or races, and
15 an intertrack wagering licensee that accepts wagers on
16 races conducted by an organization licensee that conducts a
17 race meet in a county with a population in excess of
18 230,000 and that borders the Mississippi River shall not
19 divide any remaining retention with that organization
20 licensee.
21 (B) From the sums permitted to be retained pursuant to
22 this Act each inter-track wagering location licensee shall
23 pay (i) the privilege or pari-mutuel tax to the State; (ii)
24 4.75% of the pari-mutuel handle on intertrack wagering at
25 such location on races as purses, except that an intertrack
26 wagering location licensee that derives its license from a

09800SB1739sam001- 295 -LRB098 10559 AMC 42403 a
1 track located in a county with a population in excess of
2 230,000 and that borders the Mississippi River shall retain
3 all purse moneys for its own purse account consistent with
4 distribution set forth in this subsection (h), and
5 intertrack wagering location licensees that accept wagers
6 on races conducted by an organization licensee located in a
7 county with a population in excess of 230,000 and that
8 borders the Mississippi River shall distribute all purse
9 moneys to purses at the operating host track; (iii) until
10 January 1, 2000, except as provided in subsection (g) of
11 Section 27 of this Act, 1% of the pari-mutuel handle
12 wagered on inter-track wagering and simulcast wagering at
13 each inter-track wagering location licensee facility to
14 the Horse Racing Tax Allocation Fund, provided that, to the
15 extent the total amount collected and distributed to the
16 Horse Racing Tax Allocation Fund under this subsection (h)
17 during any calendar year exceeds the amount collected and
18 distributed to the Horse Racing Tax Allocation Fund during
19 calendar year 1994, that excess amount shall be
20 redistributed (I) to all inter-track wagering location
21 licensees, based on each licensee's pro-rata share of the
22 total handle from inter-track wagering and simulcast
23 wagering for all inter-track wagering location licensees
24 during the calendar year in which this provision is
25 applicable; then (II) the amounts redistributed to each
26 inter-track wagering location licensee as described in

09800SB1739sam001- 296 -LRB098 10559 AMC 42403 a
1 subpart (I) shall be further redistributed as provided in
2 subparagraph (B) of paragraph (5) of subsection (g) of this
3 Section 26 provided first, that the shares of those
4 amounts, which are to be redistributed to the host track or
5 to purses at the host track under subparagraph (B) of
6 paragraph (5) of subsection (g) of this Section 26 shall be
7 redistributed based on each host track's pro rata share of
8 the total inter-track wagering and simulcast wagering
9 handle at all host tracks during the calendar year in
10 question, and second, that any amounts redistributed as
11 described in part (I) to an inter-track wagering location
12 licensee that accepts wagers on races conducted by an
13 organization licensee that conducts a race meet in a county
14 with a population in excess of 230,000 and that borders the
15 Mississippi River shall be further redistributed as
16 provided in subparagraphs (D) and (E) of paragraph (7) of
17 subsection (g) of this Section 26, with the portion of that
18 further redistribution allocated to purses at that
19 organization licensee to be divided between standardbred
20 purses and thoroughbred purses based on the amounts
21 otherwise allocated to purses at that organization
22 licensee during the calendar year in question; and (iv) 8%
23 of the pari-mutuel handle on inter-track wagering wagered
24 at such location to satisfy all costs and expenses of
25 conducting its wagering. The remainder of the monies
26 retained by the inter-track wagering location licensee

09800SB1739sam001- 297 -LRB098 10559 AMC 42403 a
1 shall be allocated 40% to the location licensee and 60% to
2 the organization licensee which provides the Illinois
3 races to the location, except that an intertrack wagering
4 location licensee that derives its license from a track
5 located in a county with a population in excess of 230,000
6 and that borders the Mississippi River shall not divide any
7 remaining retention with the organization licensee that
8 provides the race or races and an intertrack wagering
9 location licensee that accepts wagers on races conducted by
10 an organization licensee that conducts a race meet in a
11 county with a population in excess of 230,000 and that
12 borders the Mississippi River shall not divide any
13 remaining retention with the organization licensee.
14 Notwithstanding the provisions of clauses (ii) and (iv) of
15 this paragraph, in the case of the additional inter-track
16 wagering location licenses authorized under paragraph (1)
17 of this subsection (h) by this amendatory Act of 1991,
18 those licensees shall pay the following amounts as purses:
19 during the first 12 months the licensee is in operation,
20 5.25% of the pari-mutuel handle wagered at the location on
21 races; during the second 12 months, 5.25%; during the third
22 12 months, 5.75%; during the fourth 12 months, 6.25%; and
23 during the fifth 12 months and thereafter, 6.75%. The
24 following amounts shall be retained by the licensee to
25 satisfy all costs and expenses of conducting its wagering:
26 during the first 12 months the licensee is in operation,

09800SB1739sam001- 298 -LRB098 10559 AMC 42403 a
1 8.25% of the pari-mutuel handle wagered at the location;
2 during the second 12 months, 8.25%; during the third 12
3 months, 7.75%; during the fourth 12 months, 7.25%; and
4 during the fifth 12 months and thereafter, 6.75%. For
5 additional intertrack wagering location licensees
6 authorized under this amendatory Act of 1995, purses for
7 the first 12 months the licensee is in operation shall be
8 5.75% of the pari-mutuel wagered at the location, purses
9 for the second 12 months the licensee is in operation shall
10 be 6.25%, and purses thereafter shall be 6.75%. For
11 additional intertrack location licensees authorized under
12 this amendatory Act of 1995, the licensee shall be allowed
13 to retain to satisfy all costs and expenses: 7.75% of the
14 pari-mutuel handle wagered at the location during its first
15 12 months of operation, 7.25% during its second 12 months
16 of operation, and 6.75% thereafter.
17 (C) There is hereby created the Horse Racing Tax
18 Allocation Fund which shall remain in existence until
19 December 31, 1999. Moneys remaining in the Fund after
20 December 31, 1999 shall be paid into the General Revenue
21 Fund. Until January 1, 2000, all monies paid into the Horse
22 Racing Tax Allocation Fund pursuant to this paragraph (11)
23 by inter-track wagering location licensees located in park
24 districts of 500,000 population or less, or in a
25 municipality that is not included within any park district
26 but is included within a conservation district and is the

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1 county seat of a county that (i) is contiguous to the state
2 of Indiana and (ii) has a 1990 population of 88,257
3 according to the United States Bureau of the Census, and
4 operating on May 1, 1994 shall be allocated by
5 appropriation as follows:
6 Two-sevenths to the Department of Agriculture.
7 Fifty percent of this two-sevenths shall be used to
8 promote the Illinois horse racing and breeding
9 industry, and shall be distributed by the Department of
10 Agriculture upon the advice of a 9-member committee
11 appointed by the Governor consisting of the following
12 members: the Director of Agriculture, who shall serve
13 as chairman; 2 representatives of organization
14 licensees conducting thoroughbred race meetings in
15 this State, recommended by those licensees; 2
16 representatives of organization licensees conducting
17 standardbred race meetings in this State, recommended
18 by those licensees; a representative of the Illinois
19 Thoroughbred Breeders and Owners Foundation,
20 recommended by that Foundation; a representative of
21 the Illinois Standardbred Owners and Breeders
22 Association, recommended by that Association; a
23 representative of the Horsemen's Benevolent and
24 Protective Association or any successor organization
25 thereto established in Illinois comprised of the
26 largest number of owners, breeders, and trainers,

09800SB1739sam001- 300 -LRB098 10559 AMC 42403 a
1 recommended by that Association or that successor
2 organization; and a representative of the Illinois
3 Harness Horsemen's Association, recommended by that
4 Association. Committee members shall serve for terms
5 of 2 years, commencing January 1 of each even-numbered
6 year. If a representative of any of the above-named
7 entities has not been recommended by January 1 of any
8 even-numbered year, the Governor shall appoint a
9 committee member to fill that position. Committee
10 members shall receive no compensation for their
11 services as members but shall be reimbursed for all
12 actual and necessary expenses and disbursements
13 incurred in the performance of their official duties.
14 The remaining 50% of this two-sevenths shall be
15 distributed to county fairs for premiums and
16 rehabilitation as set forth in the Agricultural Fair
17 Act;
18 Four-sevenths to park districts or municipalities
19 that do not have a park district of 500,000 population
20 or less for museum purposes (if an inter-track wagering
21 location licensee is located in such a park district)
22 or to conservation districts for museum purposes (if an
23 inter-track wagering location licensee is located in a
24 municipality that is not included within any park
25 district but is included within a conservation
26 district and is the county seat of a county that (i) is

09800SB1739sam001- 301 -LRB098 10559 AMC 42403 a
1 contiguous to the state of Indiana and (ii) has a 1990
2 population of 88,257 according to the United States
3 Bureau of the Census, except that if the conservation
4 district does not maintain a museum, the monies shall
5 be allocated equally between the county and the
6 municipality in which the inter-track wagering
7 location licensee is located for general purposes) or
8 to a municipal recreation board for park purposes (if
9 an inter-track wagering location licensee is located
10 in a municipality that is not included within any park
11 district and park maintenance is the function of the
12 municipal recreation board and the municipality has a
13 1990 population of 9,302 according to the United States
14 Bureau of the Census); provided that the monies are
15 distributed to each park district or conservation
16 district or municipality that does not have a park
17 district in an amount equal to four-sevenths of the
18 amount collected by each inter-track wagering location
19 licensee within the park district or conservation
20 district or municipality for the Fund. Monies that were
21 paid into the Horse Racing Tax Allocation Fund before
22 the effective date of this amendatory Act of 1991 by an
23 inter-track wagering location licensee located in a
24 municipality that is not included within any park
25 district but is included within a conservation
26 district as provided in this paragraph shall, as soon

09800SB1739sam001- 302 -LRB098 10559 AMC 42403 a
1 as practicable after the effective date of this
2 amendatory Act of 1991, be allocated and paid to that
3 conservation district as provided in this paragraph.
4 Any park district or municipality not maintaining a
5 museum may deposit the monies in the corporate fund of
6 the park district or municipality where the
7 inter-track wagering location is located, to be used
8 for general purposes; and
9 One-seventh to the Agricultural Premium Fund to be
10 used for distribution to agricultural home economics
11 extension councils in accordance with "An Act in
12 relation to additional support and finances for the
13 Agricultural and Home Economic Extension Councils in
14 the several counties of this State and making an
15 appropriation therefor", approved July 24, 1967.
16 Until January 1, 2000, all other monies paid into the
17 Horse Racing Tax Allocation Fund pursuant to this paragraph
18 (11) shall be allocated by appropriation as follows:
19 Two-sevenths to the Department of Agriculture.
20 Fifty percent of this two-sevenths shall be used to
21 promote the Illinois horse racing and breeding
22 industry, and shall be distributed by the Department of
23 Agriculture upon the advice of a 9-member committee
24 appointed by the Governor consisting of the following
25 members: the Director of Agriculture, who shall serve
26 as chairman; 2 representatives of organization

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1 licensees conducting thoroughbred race meetings in
2 this State, recommended by those licensees; 2
3 representatives of organization licensees conducting
4 standardbred race meetings in this State, recommended
5 by those licensees; a representative of the Illinois
6 Thoroughbred Breeders and Owners Foundation,
7 recommended by that Foundation; a representative of
8 the Illinois Standardbred Owners and Breeders
9 Association, recommended by that Association; a
10 representative of the Horsemen's Benevolent and
11 Protective Association or any successor organization
12 thereto established in Illinois comprised of the
13 largest number of owners, breeders, and trainers,
14 recommended by that Association or that successor
15 organization; and a representative of the Illinois
16 Harness Horsemen's Association, recommended by that
17 Association. Committee members shall serve for terms
18 of 2 years, commencing January 1 of each even-numbered
19 year. If a representative of any of the above-named
20 entities has not been recommended by January 1 of any
21 even-numbered year, the Governor shall appoint a
22 committee member to fill that position. Committee
23 members shall receive no compensation for their
24 services as members but shall be reimbursed for all
25 actual and necessary expenses and disbursements
26 incurred in the performance of their official duties.

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1 The remaining 50% of this two-sevenths shall be
2 distributed to county fairs for premiums and
3 rehabilitation as set forth in the Agricultural Fair
4 Act;
5 Four-sevenths to museums and aquariums located in
6 park districts of over 500,000 population; provided
7 that the monies are distributed in accordance with the
8 previous year's distribution of the maintenance tax
9 for such museums and aquariums as provided in Section 2
10 of the Park District Aquarium and Museum Act; and
11 One-seventh to the Agricultural Premium Fund to be
12 used for distribution to agricultural home economics
13 extension councils in accordance with "An Act in
14 relation to additional support and finances for the
15 Agricultural and Home Economic Extension Councils in
16 the several counties of this State and making an
17 appropriation therefor", approved July 24, 1967. This
18 subparagraph (C) shall be inoperative and of no force
19 and effect on and after January 1, 2000.
20 (D) Except as provided in paragraph (11) of this
21 subsection (h), with respect to purse allocation from
22 intertrack wagering, the monies so retained shall be
23 divided as follows:
24 (i) If the inter-track wagering licensee,
25 except an intertrack wagering licensee that
26 derives its license from an organization licensee

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1 located in a county with a population in excess of
2 230,000 and bounded by the Mississippi River, is
3 not conducting its own race meeting during the same
4 dates, then the entire purse allocation shall be to
5 purses at the track where the races wagered on are
6 being conducted.
7 (ii) If the inter-track wagering licensee,
8 except an intertrack wagering licensee that
9 derives its license from an organization licensee
10 located in a county with a population in excess of
11 230,000 and bounded by the Mississippi River, is
12 also conducting its own race meeting during the
13 same dates, then the purse allocation shall be as
14 follows: 50% to purses at the track where the races
15 wagered on are being conducted; 50% to purses at
16 the track where the inter-track wagering licensee
17 is accepting such wagers.
18 (iii) If the inter-track wagering is being
19 conducted by an inter-track wagering location
20 licensee, except an intertrack wagering location
21 licensee that derives its license from an
22 organization licensee located in a county with a
23 population in excess of 230,000 and bounded by the
24 Mississippi River, the entire purse allocation for
25 Illinois races shall be to purses at the track
26 where the race meeting being wagered on is being

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1 held.
2 (12) The Board shall have all powers necessary and
3 proper to fully supervise and control the conduct of
4 inter-track wagering and simulcast wagering by inter-track
5 wagering licensees and inter-track wagering location
6 licensees, including, but not limited to the following:
7 (A) The Board is vested with power to promulgate
8 reasonable rules and regulations for the purpose of
9 administering the conduct of this wagering and to
10 prescribe reasonable rules, regulations and conditions
11 under which such wagering shall be held and conducted.
12 Such rules and regulations are to provide for the
13 prevention of practices detrimental to the public
14 interest and for the best interests of said wagering
15 and to impose penalties for violations thereof.
16 (B) The Board, and any person or persons to whom it
17 delegates this power, is vested with the power to enter
18 the facilities of any licensee to determine whether
19 there has been compliance with the provisions of this
20 Act and the rules and regulations relating to the
21 conduct of such wagering.
22 (C) The Board, and any person or persons to whom it
23 delegates this power, may eject or exclude from any
24 licensee's facilities, any person whose conduct or
25 reputation is such that his presence on such premises
26 may, in the opinion of the Board, call into the

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1 question the honesty and integrity of, or interfere
2 with the orderly conduct of such wagering; provided,
3 however, that no person shall be excluded or ejected
4 from such premises solely on the grounds of race,
5 color, creed, national origin, ancestry, or sex.
6 (D) (Blank).
7 (E) The Board is vested with the power to appoint
8 delegates to execute any of the powers granted to it
9 under this Section for the purpose of administering
10 this wagering and any rules and regulations
11 promulgated in accordance with this Act.
12 (F) The Board shall name and appoint a State
13 director of this wagering who shall be a representative
14 of the Board and whose duty it shall be to supervise
15 the conduct of inter-track wagering as may be provided
16 for by the rules and regulations of the Board; such
17 rules and regulation shall specify the method of
18 appointment and the Director's powers, authority and
19 duties.
20 (G) The Board is vested with the power to impose
21 civil penalties of up to $5,000 against individuals and
22 up to $10,000 against licensees for each violation of
23 any provision of this Act relating to the conduct of
24 this wagering, any rules adopted by the Board, any
25 order of the Board or any other action which in the
26 Board's discretion, is a detriment or impediment to

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1 such wagering.
2 (13) The Department of Agriculture may enter into
3 agreements with licensees authorizing such licensees to
4 conduct inter-track wagering on races to be held at the
5 licensed race meetings conducted by the Department of
6 Agriculture. Such agreement shall specify the races of the
7 Department of Agriculture's licensed race meeting upon
8 which the licensees will conduct wagering. In the event
9 that a licensee conducts inter-track pari-mutuel wagering
10 on races from the Illinois State Fair or DuQuoin State Fair
11 which are in addition to the licensee's previously approved
12 racing program, those races shall be considered a separate
13 racing day for the purpose of determining the daily handle
14 and computing the privilege or pari-mutuel tax on that
15 daily handle as provided in Sections 27 and 27.1. Such
16 agreements shall be approved by the Board before such
17 wagering may be conducted. In determining whether to grant
18 approval, the Board shall give due consideration to the
19 best interests of the public and of horse racing. The
20 provisions of paragraphs (1), (8), (8.1), and (8.2) of
21 subsection (h) of this Section which are not specified in
22 this paragraph (13) shall not apply to licensed race
23 meetings conducted by the Department of Agriculture at the
24 Illinois State Fair in Sangamon County or the DuQuoin State
25 Fair in Perry County, or to any wagering conducted on those
26 race meetings.

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1 (i) Notwithstanding the other provisions of this Act, the
2conduct of wagering at wagering facilities is authorized on all
3days, except as limited by subsection (b) of Section 19 of this
4Act.
5(Source: P.A. 96-762, eff. 8-25-09; 97-1060, eff. 8-24-12.)
6 (230 ILCS 5/27) (from Ch. 8, par. 37-27)
7 Sec. 27. (a) In addition to the organization license fee
8provided by this Act, until January 1, 2000, a graduated
9privilege tax is hereby imposed for conducting the pari-mutuel
10system of wagering permitted under this Act. Until January 1,
112000, except as provided in subsection (g) of Section 27 of
12this Act, all of the breakage of each racing day held by any
13licensee in the State shall be paid to the State. Until January
141, 2000, such daily graduated privilege tax shall be paid by
15the licensee from the amount permitted to be retained under
16this Act. Until January 1, 2000, each day's graduated privilege
17tax, breakage, and Horse Racing Tax Allocation funds shall be
18remitted to the Department of Revenue within 48 hours after the
19close of the racing day upon which it is assessed or within
20such other time as the Board prescribes. The privilege tax
21hereby imposed, until January 1, 2000, shall be a flat tax at
22the rate of 2% of the daily pari-mutuel handle except as
23provided in Section 27.1.
24 In addition, every organization licensee, except as
25provided in Section 27.1 of this Act, which conducts multiple

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1wagering shall pay, until January 1, 2000, as a privilege tax
2on multiple wagers an amount equal to 1.25% of all moneys
3wagered each day on such multiple wagers, plus an additional
4amount equal to 3.5% of the amount wagered each day on any
5other multiple wager which involves a single betting interest
6on 3 or more horses. The licensee shall remit the amount of
7such taxes to the Department of Revenue within 48 hours after
8the close of the racing day on which it is assessed or within
9such other time as the Board prescribes.
10 This subsection (a) shall be inoperative and of no force
11and effect on and after January 1, 2000.
12 (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
13at the rate of 1.5% of the daily pari-mutuel handle is imposed
14at all pari-mutuel wagering facilities and on advance deposit
15wagering from a location other than a wagering facility, except
16as otherwise provided for in this subsection (a-5). In addition
17to the pari-mutuel tax imposed on advance deposit wagering
18pursuant to this subsection (a-5), beginning on the effective
19date of this amendatory Act of the 97th General Assembly until
20January 1, 2013, an additional pari-mutuel tax at the rate of
210.25% shall be imposed on advance deposit wagering. Until
22August 25, 2012, the additional 0.25% pari-mutuel tax imposed
23on advance deposit wagering by Public Act 96-972 shall be
24deposited into the Quarter Horse Purse Fund, which shall be
25created as a non-appropriated trust fund administered by the
26Board for grants to thoroughbred organization licensees for

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1payment of purses for quarter horse races conducted by the
2organization licensee. Beginning on August 26, 2012, the
3additional 0.25% pari-mutuel tax imposed on advance deposit
4wagering shall be deposited equally into the standardbred purse
5accounts of organization licensees conducting standardbred
6racing. Thoroughbred organization licensees may petition the
7Board to conduct quarter horse racing and receive purse grants
8from the Quarter Horse Purse Fund. The Board shall have
9complete discretion in distributing the Quarter Horse Purse
10Fund to the petitioning organization licensees. Beginning on
11the effective date of this amendatory Act of the 96th General
12Assembly and until moneys deposited pursuant to Section 54 are
13distributed and received, a pari-mutuel tax at the rate of
140.75% of the daily pari-mutuel handle is imposed at a
15pari-mutuel facility whose license is derived from a track
16located in a county that borders the Mississippi River and
17conducted live racing in the previous year. After moneys
18deposited pursuant to Section 54 are distributed and received,
19a pari-mutuel tax at the rate of 1.5% of the daily pari-mutuel
20handle is imposed at a pari-mutuel facility whose license is
21derived from a track located in a county that borders the
22Mississippi River and conducted live racing in the previous
23year. The pari-mutuel tax imposed by this subsection (a-5)
24shall be remitted to the Department of Revenue within 48 hours
25after the close of the racing day upon which it is assessed or
26within such other time as the Board prescribes.

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1 (a-10) Beginning on the date when an organization licensee
2begins conducting electronic gaming pursuant to an electronic
3gaming license, the following pari-mutuel tax is imposed upon
4an organization licensee on Illinois races at the licensee's
5race track:
6 1.5% of the pari-mutuel handle at or below the average
7 daily pari-mutuel handle for 2011.
8 2% of the pari-mutuel handle above the average daily
9 pari-mutuel handle for 2011 up to 125% of the average daily
10 pari-mutuel handle for 2011.
11 2.5% of the pari-mutuel handle 125% or more above the
12 average daily pari-mutuel handle for 2011 up to 150% of the
13 average daily pari-mutuel handle for 2011.
14 3% of the pari-mutuel handle 150% or more above the
15 average daily pari-mutuel handle for 2011 up to 175% of the
16 average daily pari-mutuel handle for 2011.
17 3.5% of the pari-mutuel handle 175% or more above the
18 average daily pari-mutuel handle for 2011.
19 The pari-mutuel tax imposed by this subsection (a-10) shall
20be remitted to the Board within 48 hours after the close of the
21racing day upon which it is assessed or within such other time
22as the Board prescribes.
23 (b) On or before December 31, 1999, in the event that any
24organization licensee conducts 2 separate programs of races on
25any day, each such program shall be considered a separate
26racing day for purposes of determining the daily handle and

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1computing the privilege tax on such daily handle as provided in
2subsection (a) of this Section.
3 (c) Licensees shall at all times keep accurate books and
4records of all monies wagered on each day of a race meeting and
5of the taxes paid to the Department of Revenue under the
6provisions of this Section. The Board or its duly authorized
7representative or representatives shall at all reasonable
8times have access to such records for the purpose of examining
9and checking the same and ascertaining whether the proper
10amount of taxes is being paid as provided. The Board shall
11require verified reports and a statement of the total of all
12monies wagered daily at each wagering facility upon which the
13taxes are assessed and may prescribe forms upon which such
14reports and statement shall be made.
15 (d) Before a license is issued or re-issued, the licensee
16shall post a bond in the sum of $500,000 to the State of
17Illinois. The bond shall be used to guarantee that the licensee
18faithfully makes the payments, keeps the books and records and
19makes reports, and conducts games of chance in conformity with
20this Act and the rules adopted by the Board. The bond shall not
21be canceled by a surety on less than 30 days' notice in writing
22to the Board. If a bond is canceled and the licensee fails to
23file a new bond with the Board in the required amount on or
24before the effective date of cancellation, the licensee's
25license shall be revoked. The total and aggregate liability of
26the surety on the bond is limited to the amount specified in

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1the bond. Any licensee failing or refusing to pay the amount of
2any tax due under this Section shall be guilty of a business
3offense and upon conviction shall be fined not more than $5,000
4in addition to the amount found due as tax under this Section.
5Each day's violation shall constitute a separate offense. All
6fines paid into Court by a licensee hereunder shall be
7transmitted and paid over by the Clerk of the Court to the
8Board.
9 (e) No other license fee, privilege tax, excise tax, or
10racing fee, except as provided in this Act, shall be assessed
11or collected from any such licensee by the State.
12 (f) No other license fee, privilege tax, excise tax or
13racing fee shall be assessed or collected from any such
14licensee by units of local government except as provided in
15paragraph 10.1 of subsection (h) and subsection (f) of Section
1626 of this Act. However, any municipality that has a Board
17licensed horse race meeting at a race track wholly within its
18corporate boundaries or a township that has a Board licensed
19horse race meeting at a race track wholly within the
20unincorporated area of the township may charge a local
21amusement tax not to exceed 10¢ per admission to such horse
22race meeting by the enactment of an ordinance. However, any
23municipality or county that has a Board licensed inter-track
24wagering location facility wholly within its corporate
25boundaries may each impose an admission fee not to exceed $1.00
26per admission to such inter-track wagering location facility,

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1so that a total of not more than $2.00 per admission may be
2imposed. Except as provided in subparagraph (g) of Section 27
3of this Act, the inter-track wagering location licensee shall
4collect any and all such fees and within 48 hours remit the
5fees to the Board, which shall, pursuant to rule, cause the
6fees to be distributed to the county or municipality.
7 (g) Notwithstanding any provision in this Act to the
8contrary, if in any calendar year the total taxes and fees from
9wagering on live racing and from inter-track wagering required
10to be collected from licensees and distributed under this Act
11to all State and local governmental authorities exceeds the
12amount of such taxes and fees distributed to each State and
13local governmental authority to which each State and local
14governmental authority was entitled under this Act for calendar
15year 1994, then the first $11 million of that excess amount
16shall be allocated at the earliest possible date for
17distribution as purse money for the succeeding calendar year.
18Upon reaching the 1994 level, and until the excess amount of
19taxes and fees exceeds $11 million, the Board shall direct all
20licensees to cease paying the subject taxes and fees and the
21Board shall direct all licensees to allocate any such excess
22amount for purses as follows:
23 (i) the excess amount shall be initially divided
24 between thoroughbred and standardbred purses based on the
25 thoroughbred's and standardbred's respective percentages
26 of total Illinois live wagering in calendar year 1994;

09800SB1739sam001- 316 -LRB098 10559 AMC 42403 a
1 (ii) each thoroughbred and standardbred organization
2 licensee issued an organization licensee in that
3 succeeding allocation year shall be allocated an amount
4 equal to the product of its percentage of total Illinois
5 live thoroughbred or standardbred wagering in calendar
6 year 1994 (the total to be determined based on the sum of
7 1994 on-track wagering for all organization licensees
8 issued organization licenses in both the allocation year
9 and the preceding year) multiplied by the total amount
10 allocated for standardbred or thoroughbred purses,
11 provided that the first $1,500,000 of the amount allocated
12 to standardbred purses under item (i) shall be allocated to
13 the Department of Agriculture to be expended with the
14 assistance and advice of the Illinois Standardbred
15 Breeders Funds Advisory Board for the purposes listed in
16 subsection (g) of Section 31 of this Act, before the amount
17 allocated to standardbred purses under item (i) is
18 allocated to standardbred organization licensees in the
19 succeeding allocation year.
20 To the extent the excess amount of taxes and fees to be
21collected and distributed to State and local governmental
22authorities exceeds $11 million, that excess amount shall be
23collected and distributed to State and local authorities as
24provided for under this Act.
25(Source: P.A. 96-762, eff. 8-25-09; 96-1287, eff. 7-26-10;
2697-1060, eff. 8-24-12.)

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1 (230 ILCS 5/30) (from Ch. 8, par. 37-30)
2 Sec. 30. (a) The General Assembly declares that it is the
3policy of this State to encourage the breeding of thoroughbred
4horses in this State and the ownership of such horses by
5residents of this State in order to provide for: sufficient
6numbers of high quality thoroughbred horses to participate in
7thoroughbred racing meetings in this State, and to establish
8and preserve the agricultural and commercial benefits of such
9breeding and racing industries to the State of Illinois. It is
10the intent of the General Assembly to further this policy by
11the provisions of this Act.
12 (b) Each organization licensee conducting a thoroughbred
13racing meeting pursuant to this Act shall provide at least two
14races each day limited to Illinois conceived and foaled horses
15or Illinois foaled horses or both. A minimum of 6 races shall
16be conducted each week limited to Illinois conceived and foaled
17or Illinois foaled horses or both. No horses shall be permitted
18to start in such races unless duly registered under the rules
19of the Department of Agriculture.
20 (c) Conditions of races under subsection (b) shall be
21commensurate with past performance, quality, and class of
22Illinois conceived and foaled and Illinois foaled horses
23available. If, however, sufficient competition cannot be had
24among horses of that class on any day, the races may, with
25consent of the Board, be eliminated for that day and substitute

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1races provided.
2 (d) There is hereby created a special fund of the State
3Treasury to be known as the Illinois Thoroughbred Breeders
4Fund.
5 Beginning on the effective date of this amendatory Act of
6the 98th General Assembly, the Illinois Thoroughbred Breeders
7Fund shall become a non-appropriated trust fund held separately
8from State moneys. Expenditures from this Fund shall no longer
9be subject to appropriation.
10 Except as provided in subsection (g) of Section 27 of this
11Act, 8.5% of all the monies received by the State as privilege
12taxes on Thoroughbred racing meetings shall be paid into the
13Illinois Thoroughbred Breeders Fund.
14 Notwithstanding any provision of law to the contrary,
15amounts deposited into the Illinois Thoroughbred Breeders Fund
16from revenues generated by electronic gaming after the
17effective date of this amendatory Act of the 98th General
18Assembly shall be in addition to tax and fee amounts paid under
19this Section for calendar year 2013 and thereafter.
20 (e) The Illinois Thoroughbred Breeders Fund shall be
21administered by the Department of Agriculture with the advice
22and assistance of the Advisory Board created in subsection (f)
23of this Section.
24 (f) The Illinois Thoroughbred Breeders Fund Advisory Board
25shall consist of the Director of the Department of Agriculture,
26who shall serve as Chairman; a member of the Illinois Racing

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1Board, designated by it; 2 representatives of the organization
2licensees conducting thoroughbred racing meetings, recommended
3by them; 2 representatives of the Illinois Thoroughbred
4Breeders and Owners Foundation, recommended by it; one
5representative and 2 representatives of the Horsemen's
6Benevolent Protective Association; and one representative from
7the Illinois Thoroughbred Horsemen's Association or any
8successor organization established in Illinois comprised of
9the largest number of owners and trainers, recommended by it,
10with one representative of the Horsemen's Benevolent and
11Protective Association to come from its Illinois Division, and
12one from its Chicago Division. Advisory Board members shall
13serve for 2 years commencing January 1 of each odd numbered
14year. If representatives of the organization licensees
15conducting thoroughbred racing meetings, the Illinois
16Thoroughbred Breeders and Owners Foundation, and the
17Horsemen's Benevolent Protection Association, and the Illinois
18Thoroughbred Horsemen's Association have not been recommended
19by January 1, of each odd numbered year, the Director of the
20Department of Agriculture shall make an appointment for the
21organization failing to so recommend a member of the Advisory
22Board. Advisory Board members shall receive no compensation for
23their services as members but shall be reimbursed for all
24actual and necessary expenses and disbursements incurred in the
25execution of their official duties.
26 (g) No monies shall be expended from the Illinois

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1Thoroughbred Breeders Fund except as appropriated by the
2General Assembly. Monies expended appropriated from the
3Illinois Thoroughbred Breeders Fund shall be expended by the
4Department of Agriculture, with the advice and assistance of
5the Illinois Thoroughbred Breeders Fund Advisory Board, for the
6following purposes only:
7 (1) To provide purse supplements to breeders owners of
8 horses participating in races limited to Illinois
9 conceived and foaled and Illinois foaled horses. Any such
10 purse supplements shall not be included in and shall be
11 paid in addition to any purses, stakes, or breeders' awards
12 offered by each organization licensee as determined by
13 agreement between such organization licensee and an
14 organization representing the horsemen. No monies from the
15 Illinois Thoroughbred Breeders Fund shall be used to
16 provide purse supplements for claiming races in which the
17 minimum claiming price is less than $7,500.
18 (2) To provide stakes and awards to be paid to the
19 breeders owners of the winning horses in certain races
20 limited to Illinois conceived and foaled and Illinois
21 foaled horses designated as stakes races.
22 (2.5) To provide an award to the breeder owner or
23 breeders owners of an Illinois conceived and foaled or
24 Illinois foaled horse that wins a maiden special weight, an
25 allowance, overnight handicap race, or claiming race with
26 claiming price of $10,000 or more providing the race is not

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1 restricted to Illinois conceived and foaled or Illinois
2 foaled horses. Awards shall also be provided to the owner
3 or owners of Illinois conceived and foaled and Illinois
4 foaled horses that place second or third in those races. To
5 the extent that additional moneys are required to pay the
6 minimum additional awards of 40% of the purse the horse
7 earns for placing first, second or third in those races for
8 Illinois foaled horses and of 60% of the purse the horse
9 earns for placing first, second or third in those races for
10 Illinois conceived and foaled horses, those moneys shall be
11 provided from the purse account at the track where earned.
12 (3) To provide stallion awards to the owner or owners
13 of any stallion that is duly registered with the Illinois
14 Thoroughbred Breeders Fund Program prior to the effective
15 date of this amendatory Act of 1995 whose duly registered
16 Illinois conceived and foaled offspring wins a race
17 conducted at an Illinois thoroughbred racing meeting other
18 than a claiming race, provided that the stallion stood
19 service within Illinois at the time the offspring was
20 conceived and that the stallion did not stand for service
21 outside of Illinois at any time during the year in which
22 the offspring was conceived. Such award shall not be paid
23 to the owner or owners of an Illinois stallion that served
24 outside this State at any time during the calendar year in
25 which such race was conducted.
26 (4) To provide $75,000 annually for purses to be

09800SB1739sam001- 322 -LRB098 10559 AMC 42403 a
1 distributed to county fairs that provide for the running of
2 races during each county fair exclusively for the
3 thoroughbreds conceived and foaled in Illinois. The
4 conditions of the races shall be developed by the county
5 fair association and reviewed by the Department with the
6 advice and assistance of the Illinois Thoroughbred
7 Breeders Fund Advisory Board. There shall be no wagering of
8 any kind on the running of Illinois conceived and foaled
9 races at county fairs.
10 (4.1) To provide purse money for an Illinois stallion
11 stakes program.
12 (5) No less than 90% 80% of all monies appropriated
13 from the Illinois Thoroughbred Breeders Fund shall be
14 expended for the purposes in (1), (2), (2.5), (3), (4),
15 (4.1), and (5) as shown above.
16 (6) To provide for educational programs regarding the
17 thoroughbred breeding industry.
18 (7) To provide for research programs concerning the
19 health, development and care of the thoroughbred horse.
20 (8) To provide for a scholarship and training program
21 for students of equine veterinary medicine.
22 (9) To provide for dissemination of public information
23 designed to promote the breeding of thoroughbred horses in
24 Illinois.
25 (10) To provide for all expenses incurred in the
26 administration of the Illinois Thoroughbred Breeders Fund.

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1 (h) The Illinois Thoroughbred Breeders Fund is not subject
2to administrative charges or chargebacks, including, but not
3limited to, those authorized under Section 8h of the State
4Finance Act. Whenever the Governor finds that the amount in the
5Illinois Thoroughbred Breeders Fund is more than the total of
6the outstanding appropriations from such fund, the Governor
7shall notify the State Comptroller and the State Treasurer of
8such fact. The Comptroller and the State Treasurer, upon
9receipt of such notification, shall transfer such excess amount
10from the Illinois Thoroughbred Breeders Fund to the General
11Revenue Fund.
12 (i) A sum equal to 13% 12 1/2% of the first prize money of
13every purse won by an Illinois foaled or an Illinois conceived
14and foaled horse in races not limited to Illinois foaled horses
15or Illinois conceived and foaled horses, or both, shall be paid
16by the organization licensee conducting the horse race meeting.
17Such sum shall be paid 50% from the organization licensee's
18account and 50% from the purse account of the licensee share of
19the money wagered as follows: 11 1/2% to the breeder of the
20winning horse and 1 1/2% 1% to the organization representing
21thoroughbred breeders and owners whose representative serves
22on the Illinois Thoroughbred Breeders Fund Advisory Board for
23verifying the amounts of breeders' awards earned, assuring
24their distribution in accordance with this Act, and servicing
25and promoting the Illinois thoroughbred horse racing industry.
26The organization representing thoroughbred breeders and owners

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1shall cause all expenditures of monies received under this
2subsection (i) to be audited at least annually by a registered
3public accountant. The organization shall file copies of each
4annual audit with the Racing Board, the Clerk of the House of
5Representatives and the Secretary of the Senate, and shall make
6copies of each annual audit available to the public upon
7request and upon payment of the reasonable cost of photocopying
8the requested number of copies. Such payments shall not reduce
9any award to the owner of the horse or reduce the taxes payable
10under this Act. Upon completion of its racing meet, each
11organization licensee shall deliver to the organization
12representing thoroughbred breeders and owners whose
13representative serves on the Illinois Thoroughbred Breeders
14Fund Advisory Board a listing of all the Illinois foaled and
15the Illinois conceived and foaled horses which won breeders'
16awards and the amount of such breeders' awards under this
17subsection to verify accuracy of payments and assure proper
18distribution of breeders' awards in accordance with the
19provisions of this Act. Such payments shall be delivered by the
20organization licensee within 30 days of the end of each race
21meeting.
22 (j) A sum equal to 13% 12 1/2% of the first prize money won
23in each race limited to Illinois foaled horses or Illinois
24conceived and foaled horses, or both, shall be paid in the
25following manner by the organization licensee conducting the
26horse race meeting, 50% from the organization licensee's

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1account and 50% from the purse account of the licensee share of
2the money wagered: 11 1/2% to the breeders of the horses in
3each such race which are the official first, second, third and
4fourth finishers and 1 1/2% 1% to the organization representing
5thoroughbred breeders and owners whose representative serves
6on the Illinois Thoroughbred Breeders Fund Advisory Board for
7verifying the amounts of breeders' awards earned, assuring
8their proper distribution in accordance with this Act, and
9servicing and promoting the Illinois thoroughbred horse racing
10industry. The organization representing thoroughbred breeders
11and owners shall cause all expenditures of monies received
12under this subsection (j) to be audited at least annually by a
13registered public accountant. The organization shall file
14copies of each annual audit with the Racing Board, the Clerk of
15the House of Representatives and the Secretary of the Senate,
16and shall make copies of each annual audit available to the
17public upon request and upon payment of the reasonable cost of
18photocopying the requested number of copies.
19 The 11 1/2% paid to the breeders in accordance with this
20subsection shall be distributed as follows:
21 (1) 60% of such sum shall be paid to the breeder of the
22 horse which finishes in the official first position;
23 (2) 20% of such sum shall be paid to the breeder of the
24 horse which finishes in the official second position;
25 (3) 15% of such sum shall be paid to the breeder of the
26 horse which finishes in the official third position; and

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1 (4) 5% of such sum shall be paid to the breeder of the
2 horse which finishes in the official fourth position.
3 Such payments shall not reduce any award to the owners of a
4horse or reduce the taxes payable under this Act. Upon
5completion of its racing meet, each organization licensee shall
6deliver to the organization representing thoroughbred breeders
7and owners whose representative serves on the Illinois
8Thoroughbred Breeders Fund Advisory Board a listing of all the
9Illinois foaled and the Illinois conceived and foaled horses
10which won breeders' awards and the amount of such breeders'
11awards in accordance with the provisions of this Act. Such
12payments shall be delivered by the organization licensee within
1330 days of the end of each race meeting.
14 (k) The term "breeder", as used herein, means the owner of
15the mare at the time the foal is dropped. An "Illinois foaled
16horse" is a foal dropped by a mare which enters this State on
17or before December 1, in the year in which the horse is bred,
18provided the mare remains continuously in this State until its
19foal is born. An "Illinois foaled horse" also means a foal born
20of a mare in the same year as the mare enters this State on or
21before March 1, and remains in this State at least 30 days
22after foaling, is bred back during the season of the foaling to
23an Illinois Registered Stallion (unless a veterinarian
24certifies that the mare should not be bred for health reasons),
25and is not bred to a stallion standing in any other state
26during the season of foaling. An "Illinois foaled horse" also

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1means a foal born in Illinois of a mare purchased at public
2auction subsequent to the mare entering this State on or before
3March 1 prior to February 1 of the foaling year providing the
4mare is owned solely by one or more Illinois residents or an
5Illinois entity that is entirely owned by one or more Illinois
6residents.
7 (l) The Department of Agriculture shall, by rule, with the
8advice and assistance of the Illinois Thoroughbred Breeders
9Fund Advisory Board:
10 (1) Qualify stallions for Illinois breeding; such
11 stallions to stand for service within the State of Illinois
12 at the time of a foal's conception. Such stallion must not
13 stand for service at any place outside the State of
14 Illinois during the calendar year in which the foal is
15 conceived. The Department of Agriculture may assess and
16 collect an application fee of up to $500 fees for the
17 registration of Illinois-eligible stallions. All fees
18 collected are to be held in trust accounts for the purposes
19 set forth in this Act and in accordance with Section 205-15
20 of the Department of Agriculture Law paid into the Illinois
21 Thoroughbred Breeders Fund.
22 (2) Provide for the registration of Illinois conceived
23 and foaled horses and Illinois foaled horses. No such horse
24 shall compete in the races limited to Illinois conceived
25 and foaled horses or Illinois foaled horses or both unless
26 registered with the Department of Agriculture. The

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1 Department of Agriculture may prescribe such forms as are
2 necessary to determine the eligibility of such horses. The
3 Department of Agriculture may assess and collect
4 application fees for the registration of Illinois-eligible
5 foals. All fees collected are to be held in trust accounts
6 for the purposes set forth in this Act and in accordance
7 with Section 205-15 of the Department of Agriculture Law
8 paid into the Illinois Thoroughbred Breeders Fund. No
9 person shall knowingly prepare or cause preparation of an
10 application for registration of such foals containing
11 false information.
12 (m) The Department of Agriculture, with the advice and
13assistance of the Illinois Thoroughbred Breeders Fund Advisory
14Board, shall provide that certain races limited to Illinois
15conceived and foaled and Illinois foaled horses be stakes races
16and determine the total amount of stakes and awards to be paid
17to the breeders owners of the winning horses in such races.
18 In determining the stakes races and the amount of awards
19for such races, the Department of Agriculture shall consider
20factors, including but not limited to, the amount of money
21appropriated for the Illinois Thoroughbred Breeders Fund
22program, organization licensees' contributions, availability
23of stakes caliber horses as demonstrated by past performances,
24whether the race can be coordinated into the proposed racing
25dates within organization licensees' racing dates, opportunity
26for colts and fillies and various age groups to race, public

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1wagering on such races, and the previous racing schedule.
2 (n) The Board and the organizational licensee shall notify
3the Department of the conditions and minimum purses for races
4limited to Illinois conceived and foaled and Illinois foaled
5horses conducted for each organizational licensee conducting a
6thoroughbred racing meeting. The Department of Agriculture
7with the advice and assistance of the Illinois Thoroughbred
8Breeders Fund Advisory Board may allocate monies for purse
9supplements for such races. In determining whether to allocate
10money and the amount, the Department of Agriculture shall
11consider factors, including but not limited to, the amount of
12money appropriated for the Illinois Thoroughbred Breeders Fund
13program, the number of races that may occur, and the
14organizational licensee's purse structure.
15 (o) In order to improve the breeding quality of
16thoroughbred horses in the State, the General Assembly
17recognizes that existing provisions of this Section to
18encourage such quality breeding need to be revised and
19strengthened. As such, a Thoroughbred Breeder's Program Task
20Force is to be appointed by the Governor by September 1, 1999
21to make recommendations to the General Assembly by no later
22than March 1, 2000. This task force is to be composed of 2
23representatives from the Illinois Thoroughbred Breeders and
24Owners Foundation, 2 from the Illinois Thoroughbred Horsemen's
25Association, 3 from Illinois race tracks operating
26thoroughbred race meets for an average of at least 30 days in

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1the past 3 years, the Director of Agriculture, the Executive
2Director of the Racing Board, who shall serve as Chairman.
3(Source: P.A. 91-40, eff. 6-25-99.)
4 (230 ILCS 5/30.5)
5 Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
6 (a) The General Assembly declares that it is the policy of
7this State to encourage the breeding of racing quarter horses
8in this State and the ownership of such horses by residents of
9this State in order to provide for sufficient numbers of high
10quality racing quarter horses in this State and to establish
11and preserve the agricultural and commercial benefits of such
12breeding and racing industries to the State of Illinois. It is
13the intent of the General Assembly to further this policy by
14the provisions of this Act.
15 (b) There is hereby created non-appropriated trust a
16special fund in the State Treasury to be known as the Illinois
17Racing Quarter Horse Breeders Fund, which is held separately
18from State moneys. Except as provided in subsection (g) of
19Section 27 of this Act, 8.5% of all the moneys received by the
20State as pari-mutuel taxes on quarter horse racing shall be
21paid into the Illinois Racing Quarter Horse Breeders Fund. The
22Illinois Racing Quarter Horse Breeders Fund shall not be
23subject to administrative charges or chargebacks, including,
24but not limited to, those authorized under Section 8h of the
25State Finance Act.

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1 (c) The Illinois Racing Quarter Horse Breeders Fund shall
2be administered by the Department of Agriculture with the
3advice and assistance of the Advisory Board created in
4subsection (d) of this Section.
5 (d) The Illinois Racing Quarter Horse Breeders Fund
6Advisory Board shall consist of the Director of the Department
7of Agriculture, who shall serve as Chairman; a member of the
8Illinois Racing Board, designated by it; one representative of
9the organization licensees conducting pari-mutuel quarter
10horse racing meetings, recommended by them; 2 representatives
11of the Illinois Running Quarter Horse Association, recommended
12by it; and the Superintendent of Fairs and Promotions from the
13Department of Agriculture. Advisory Board members shall serve
14for 2 years commencing January 1 of each odd numbered year. If
15representatives have not been recommended by January 1 of each
16odd numbered year, the Director of the Department of
17Agriculture may make an appointment for the organization
18failing to so recommend a member of the Advisory Board.
19Advisory Board members shall receive no compensation for their
20services as members but may be reimbursed for all actual and
21necessary expenses and disbursements incurred in the execution
22of their official duties.
23 (e) Moneys in No moneys shall be expended from the Illinois
24Racing Quarter Horse Breeders Fund except as appropriated by
25the General Assembly. Moneys appropriated from the Illinois
26Racing Quarter Horse Breeders Fund shall be expended by the

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1Department of Agriculture, with the advice and assistance of
2the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
3for the following purposes only:
4 (1) To provide stakes and awards to be paid to the
5 owners of the winning horses in certain races. This
6 provision is limited to Illinois conceived and foaled
7 horses.
8 (2) To provide an award to the owner or owners of an
9 Illinois conceived and foaled horse that wins a race when
10 pari-mutuel wagering is conducted; providing the race is
11 not restricted to Illinois conceived and foaled horses.
12 (3) To provide purse money for an Illinois stallion
13 stakes program.
14 (4) To provide for purses to be distributed for the
15 running of races during the Illinois State Fair and the
16 DuQuoin State Fair exclusively for quarter horses
17 conceived and foaled in Illinois.
18 (5) To provide for purses to be distributed for the
19 running of races at Illinois county fairs exclusively for
20 quarter horses conceived and foaled in Illinois.
21 (6) To provide for purses to be distributed for running
22 races exclusively for quarter horses conceived and foaled
23 in Illinois at locations in Illinois determined by the
24 Department of Agriculture with advice and consent of the
25 Illinois Racing Quarter Horse Breeders Fund Advisory
26 Board.

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1 (7) No less than 90% of all moneys appropriated from
2 the Illinois Racing Quarter Horse Breeders Fund shall be
3 expended for the purposes in items (1), (2), (3), (4), and
4 (5) of this subsection (e).
5 (8) To provide for research programs concerning the
6 health, development, and care of racing quarter horses.
7 (9) To provide for dissemination of public information
8 designed to promote the breeding of racing quarter horses
9 in Illinois.
10 (10) To provide for expenses incurred in the
11 administration of the Illinois Racing Quarter Horse
12 Breeders Fund.
13 (f) The Department of Agriculture shall, by rule, with the
14advice and assistance of the Illinois Racing Quarter Horse
15Breeders Fund Advisory Board:
16 (1) Qualify stallions for Illinois breeding; such
17 stallions to stand for service within the State of
18 Illinois, at the time of a foal's conception. Such stallion
19 must not stand for service at any place outside the State
20 of Illinois during the calendar year in which the foal is
21 conceived. The Department of Agriculture may assess and
22 collect application fees for the registration of
23 Illinois-eligible stallions. All fees collected are to be
24 paid into the Illinois Racing Quarter Horse Breeders Fund.
25 (2) Provide for the registration of Illinois conceived
26 and foaled horses. No such horse shall compete in the races

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1 limited to Illinois conceived and foaled horses unless it
2 is registered with the Department of Agriculture. The
3 Department of Agriculture may prescribe such forms as are
4 necessary to determine the eligibility of such horses. The
5 Department of Agriculture may assess and collect
6 application fees for the registration of Illinois-eligible
7 foals. All fees collected are to be paid into the Illinois
8 Racing Quarter Horse Breeders Fund. No person shall
9 knowingly prepare or cause preparation of an application
10 for registration of such foals that contains false
11 information.
12 (g) The Department of Agriculture, with the advice and
13assistance of the Illinois Racing Quarter Horse Breeders Fund
14Advisory Board, shall provide that certain races limited to
15Illinois conceived and foaled be stakes races and determine the
16total amount of stakes and awards to be paid to the owners of
17the winning horses in such races.
18(Source: P.A. 91-40, eff. 6-25-99; revised 10-18-12.)
19 (230 ILCS 5/31) (from Ch. 8, par. 37-31)
20 Sec. 31. (a) The General Assembly declares that it is the
21policy of this State to encourage the breeding of standardbred
22horses in this State and the ownership of such horses by
23residents of this State in order to provide for: sufficient
24numbers of high quality standardbred horses to participate in
25harness racing meetings in this State, and to establish and

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1preserve the agricultural and commercial benefits of such
2breeding and racing industries to the State of Illinois. It is
3the intent of the General Assembly to further this policy by
4the provisions of this Section of this Act.
5 (b) Each organization licensee conducting a harness racing
6meeting pursuant to this Act shall provide for at least two
7races each race program limited to Illinois conceived and
8foaled horses. A minimum of 6 races shall be conducted each
9week limited to Illinois conceived and foaled horses. No horses
10shall be permitted to start in such races unless duly
11registered under the rules of the Department of Agriculture.
12 (b-5) Organization licensees, not including the Illinois
13State Fair or the DuQuoin State Fair, shall provide stake races
14and early closer races for Illinois conceived and foaled horses
15so that purses distributed for such races shall be no less than
1617% of total purses distributed for harness racing in that
17calendar year in addition to any stakes payments and starting
18fees contributed by horse owners.
19 (b-10) Each organization licensee conducting a harness
20racing meeting pursuant to this Act shall provide an owner
21award to be paid from the purse account equal to 25% of the
22amount earned by Illinois conceived and foaled horses in races
23that are not restricted to Illinois conceived and foaled
24horses. The owner awards shall not be paid on races below the
25$10,000 claiming class.
26 (c) Conditions of races under subsection (b) shall be

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1commensurate with past performance, quality and class of
2Illinois conceived and foaled horses available. If, however,
3sufficient competition cannot be had among horses of that class
4on any day, the races may, with consent of the Board, be
5eliminated for that day and substitute races provided.
6 (d) There is hereby created a special fund of the State
7Treasury to be known as the Illinois Standardbred Breeders
8Fund.
9 During the calendar year 1981, and each year thereafter,
10except as provided in subsection (g) of Section 27 of this Act,
11eight and one-half per cent of all the monies received by the
12State as privilege taxes on harness racing meetings shall be
13paid into the Illinois Standardbred Breeders Fund.
14 (e) The Illinois Standardbred Breeders Fund shall be
15administered by the Department of Agriculture with the
16assistance and advice of the Advisory Board created in
17subsection (f) of this Section.
18 (f) The Illinois Standardbred Breeders Fund Advisory Board
19is hereby created. The Advisory Board shall consist of the
20Director of the Department of Agriculture, who shall serve as
21Chairman; the Superintendent of the Illinois State Fair; a
22member of the Illinois Racing Board, designated by it; a
23representative of the Illinois Standardbred Owners and
24Breeders Association, recommended by it; a representative of
25the Illinois Association of Agricultural Fairs, recommended by
26it, such representative to be from a fair at which Illinois

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1conceived and foaled racing is conducted; a representative of
2the organization licensees conducting harness racing meetings,
3recommended by them and a representative of the Illinois
4Harness Horsemen's Association, recommended by it. Advisory
5Board members shall serve for 2 years commencing January 1, of
6each odd numbered year. If representatives of the Illinois
7Standardbred Owners and Breeders Associations, the Illinois
8Association of Agricultural Fairs, the Illinois Harness
9Horsemen's Association, and the organization licensees
10conducting harness racing meetings have not been recommended by
11January 1, of each odd numbered year, the Director of the
12Department of Agriculture shall make an appointment for the
13organization failing to so recommend a member of the Advisory
14Board. Advisory Board members shall receive no compensation for
15their services as members but shall be reimbursed for all
16actual and necessary expenses and disbursements incurred in the
17execution of their official duties.
18 (g) No monies shall be expended from the Illinois
19Standardbred Breeders Fund except as appropriated by the
20General Assembly. Monies appropriated from the Illinois
21Standardbred Breeders Fund shall be expended by the Department
22of Agriculture, with the assistance and advice of the Illinois
23Standardbred Breeders Fund Advisory Board for the following
24purposes only:
25 1. To provide purses for races limited to Illinois
26 conceived and foaled horses at the State Fair and the

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1 DuQuoin State Fair.
2 2. To provide purses for races limited to Illinois
3 conceived and foaled horses at county fairs.
4 3. To provide purse supplements for races limited to
5 Illinois conceived and foaled horses conducted by
6 associations conducting harness racing meetings.
7 4. No less than 75% of all monies in the Illinois
8 Standardbred Breeders Fund shall be expended for purses in
9 1, 2 and 3 as shown above.
10 5. In the discretion of the Department of Agriculture
11 to provide awards to harness breeders of Illinois conceived
12 and foaled horses which win races conducted by organization
13 licensees conducting harness racing meetings. A breeder is
14 the owner of a mare at the time of conception. No more than
15 10% of all monies appropriated from the Illinois
16 Standardbred Breeders Fund shall be expended for such
17 harness breeders awards. No more than 25% of the amount
18 expended for harness breeders awards shall be expended for
19 expenses incurred in the administration of such harness
20 breeders awards.
21 6. To pay for the improvement of racing facilities
22 located at the State Fair and County fairs.
23 7. To pay the expenses incurred in the administration
24 of the Illinois Standardbred Breeders Fund.
25 8. To promote the sport of harness racing, including
26 grants up to a maximum of $7,500 per fair per year for

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1 conducting pari-mutuel wagering during the advertised
2 dates of a county fair.
3 9. To pay up to $50,000 annually for the Department of
4 Agriculture to conduct drug testing at county fairs racing
5 standardbred horses.
6 10. To pay up to $100,000 annually for distribution to
7 Illinois county fairs to supplement premiums offered in
8 junior classes.
9 11. To pay up to $100,000 annually for division and
10 equal distribution to the animal sciences department of
11 each Illinois public university system engaged in equine
12 research and education on or before the effective date of
13 this amendatory Act of the 98th General Assembly for equine
14 research and education.
15 (h) (Blank) Whenever the Governor finds that the amount in
16the Illinois Standardbred Breeders Fund is more than the total
17of the outstanding appropriations from such fund, the Governor
18shall notify the State Comptroller and the State Treasurer of
19such fact. The Comptroller and the State Treasurer, upon
20receipt of such notification, shall transfer such excess amount
21from the Illinois Standardbred Breeders Fund to the General
22Revenue Fund.
23 (i) A sum equal to 13% 12 1/2% of the first prize money of
24the gross every purse won by an Illinois conceived and foaled
25horse shall be paid 50% by the organization licensee conducting
26the horse race meeting to the breeder of such winning horse

09800SB1739sam001- 340 -LRB098 10559 AMC 42403 a
1from the organization licensee's account and 50% from the purse
2account of the licensee share of the money wagered. Such
3payment shall not reduce any award to the owner of the horse or
4reduce the taxes payable under this Act. Such payment shall be
5delivered by the organization licensee at the end of each
6quarter race meeting.
7 (j) The Department of Agriculture shall, by rule, with the
8assistance and advice of the Illinois Standardbred Breeders
9Fund Advisory Board:
10 1. Qualify stallions for Illinois Standardbred
11 Breeders Fund breeding; such stallion shall be owned by a
12 resident of the State of Illinois or by an Illinois
13 corporation all of whose shareholders, directors, officers
14 and incorporators are residents of the State of Illinois.
15 Such stallion shall stand for service at and within the
16 State of Illinois at the time of a foal's conception, and
17 such stallion must not stand for service at any place, nor
18 may semen from such stallion be transported, outside the
19 State of Illinois during that calendar year in which the
20 foal is conceived and that the owner of the stallion was
21 for the 12 months prior, a resident of Illinois. Foals
22 conceived outside the State of Illinois from shipped semen
23 from a stallion qualified for breeders' awards under this
24 Section are not eligible to participate in the Illinois
25 conceived and foaled program. The articles of agreement of
26 any partnership, joint venture, limited partnership,

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1 syndicate, association or corporation and any bylaws and
2 stock certificates must contain a restriction that
3 provides that the ownership or transfer of interest by any
4 one of the persons a party to the agreement can only be
5 made to a person who qualifies as an Illinois resident.
6 2. Provide for the registration of Illinois conceived
7 and foaled horses and no such horse shall compete in the
8 races limited to Illinois conceived and foaled horses
9 unless registered with the Department of Agriculture. The
10 Department of Agriculture may prescribe such forms as may
11 be necessary to determine the eligibility of such horses.
12 No person shall knowingly prepare or cause preparation of
13 an application for registration of such foals containing
14 false information. A mare (dam) must be in the state at
15 least 30 days prior to foaling or remain in the State at
16 least 30 days at the time of foaling. Beginning with the
17 1996 breeding season and for foals of 1997 and thereafter,
18 a foal conceived in the State of Illinois by transported
19 fresh semen may be eligible for Illinois conceived and
20 foaled registration provided all breeding and foaling
21 requirements are met. The stallion must be qualified for
22 Illinois Standardbred Breeders Fund breeding at the time of
23 conception and the mare must be inseminated within the
24 State of Illinois. The foal must be dropped in Illinois and
25 properly registered with the Department of Agriculture in
26 accordance with this Act.

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1 3. Provide that at least a 5 day racing program shall
2 be conducted at the State Fair each year, which program
3 shall include at least the following races limited to
4 Illinois conceived and foaled horses: (a) a two year old
5 Trot and Pace, and Filly Division of each; (b) a three year
6 old Trot and Pace, and Filly Division of each; (c) an aged
7 Trot and Pace, and Mare Division of each.
8 4. Provide for the payment of nominating, sustaining
9 and starting fees for races promoting the sport of harness
10 racing and for the races to be conducted at the State Fair
11 as provided in subsection (j) 3 of this Section provided
12 that the nominating, sustaining and starting payment
13 required from an entrant shall not exceed 2% of the purse
14 of such race. All nominating, sustaining and starting
15 payments shall be held for the benefit of entrants and
16 shall be paid out as part of the respective purses for such
17 races. Nominating, sustaining and starting fees shall be
18 held in trust accounts for the purposes as set forth in
19 this Act and in accordance with Section 205-15 of the
20 Department of Agriculture Law (20 ILCS 205/205-15).
21 5. Provide for the registration with the Department of
22 Agriculture of Colt Associations or county fairs desiring
23 to sponsor races at county fairs.
24 6. Provide for the promotion of producing standardbred
25 racehorses by providing a bonus award program for owners of
26 2-year-old horses that win multiple major stakes races that

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1 are limited to Illinois conceived and foaled horses.
2 (k) The Department of Agriculture, with the advice and
3assistance of the Illinois Standardbred Breeders Fund Advisory
4Board, may allocate monies for purse supplements for such
5races. In determining whether to allocate money and the amount,
6the Department of Agriculture shall consider factors,
7including but not limited to, the amount of money appropriated
8for the Illinois Standardbred Breeders Fund program, the number
9of races that may occur, and an organizational licensee's purse
10structure. The organizational licensee shall notify the
11Department of Agriculture of the conditions and minimum purses
12for races limited to Illinois conceived and foaled horses to be
13conducted by each organizational licensee conducting a harness
14racing meeting for which purse supplements have been
15negotiated.
16 (l) All races held at county fairs and the State Fair which
17receive funds from the Illinois Standardbred Breeders Fund
18shall be conducted in accordance with the rules of the United
19States Trotting Association unless otherwise modified by the
20Department of Agriculture.
21 (m) At all standardbred race meetings held or conducted
22under authority of a license granted by the Board, and at all
23standardbred races held at county fairs which are approved by
24the Department of Agriculture or at the Illinois or DuQuoin
25State Fairs, no one shall jog, train, warm up or drive a
26standardbred horse unless he or she is wearing a protective

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1safety helmet, with the chin strap fastened and in place, which
2meets the standards and requirements as set forth in the 1984
3Standard for Protective Headgear for Use in Harness Racing and
4Other Equestrian Sports published by the Snell Memorial
5Foundation, or any standards and requirements for headgear the
6Illinois Racing Board may approve. Any other standards and
7requirements so approved by the Board shall equal or exceed
8those published by the Snell Memorial Foundation. Any
9equestrian helmet bearing the Snell label shall be deemed to
10have met those standards and requirements.
11(Source: P.A. 91-239, eff. 1-1-00.)
12 (230 ILCS 5/31.1) (from Ch. 8, par. 37-31.1)
13 Sec. 31.1. (a) Organization licensees collectively shall
14contribute annually to charity the sum of $1,000,000 $750,000
15to non-profit organizations that provide medical and family,
16counseling, and similar services to persons who reside or work
17on the backstretch of Illinois racetracks. These contributions
18shall be collected as follows: (i) no later than July 1st of
19each year the Board shall assess each organization licensee,
20except those tracks which are not within 100 miles of each
21other which tracks shall pay $40,000 $30,000 annually apiece
22into the Board charity fund, that amount which equals $920,000
23$690,000 multiplied by the amount of pari-mutuel wagering
24handled by the organization licensee in the year preceding
25assessment and divided by the total pari-mutuel wagering

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1handled by all Illinois organization licensees, except those
2tracks which are not within 100 miles of each other, in the
3year preceding assessment; (ii) notice of the assessed
4contribution shall be mailed to each organization licensee;
5(iii) within thirty days of its receipt of such notice, each
6organization licensee shall remit the assessed contribution to
7the Board. If an organization licensee wilfully fails to so
8remit the contribution, the Board may revoke its license to
9conduct horse racing.
10 (b) No later than October 1st of each year, any qualified
11charitable organization seeking an allotment of contributed
12funds shall submit to the Board an application for those funds,
13using the Board's approved form. No later than December 31st of
14each year, the Board shall distribute all such amounts
15collected that year to such charitable organization
16applicants.
17(Source: P.A. 87-110.)
18 (230 ILCS 5/32.1)
19 Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
20real estate equalization.
21 (a) In order to encourage new investment in Illinois
22racetrack facilities and mitigate differing real estate tax
23burdens among all racetracks, the licensees affiliated or
24associated with each racetrack that has been awarded live
25racing dates in the current year shall receive an immediate

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1pari-mutuel tax credit in an amount equal to the greater of (i)
250% of the amount of the real estate taxes paid in the prior
3year attributable to that racetrack, or (ii) the amount by
4which the real estate taxes paid in the prior year attributable
5to that racetrack exceeds 60% of the average real estate taxes
6paid in the prior year for all racetracks awarded live horse
7racing meets in the current year.
8 Each year, regardless of whether the organization licensee
9conducted live racing in the year of certification, the Board
10shall certify in writing, prior to December 31, the real estate
11taxes paid in that year for each racetrack and the amount of
12the pari-mutuel tax credit that each organization licensee,
13intertrack wagering licensee, and intertrack wagering location
14licensee that derives its license from such racetrack is
15entitled in the succeeding calendar year. The real estate taxes
16considered under this Section for any racetrack shall be those
17taxes on the real estate parcels and related facilities used to
18conduct a horse race meeting and inter-track wagering at such
19racetrack under this Act. In no event shall the amount of the
20tax credit under this Section exceed the amount of pari-mutuel
21taxes otherwise calculated under this Act. The amount of the
22tax credit under this Section shall be retained by each
23licensee and shall not be subject to any reallocation or
24further distribution under this Act. The Board may promulgate
25emergency rules to implement this Section.
26 (b) Beginning on January 1 following the calendar year

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1during which an organization licensee begins conducting
2electronic gaming operations pursuant to an electric gaming
3license issued under the Illinois Gambling Act, the
4organization licensee shall be ineligible to receive a tax
5credit under this Section.
6(Source: P.A. 91-40, eff. 6-25-99.)
7 (230 ILCS 5/34.3 new)
8 Sec. 34.3. Drug testing. The Illinois Racing Board and the
9Department of Agriculture shall jointly establish a program for
10the purpose of conducting drug testing of horses at county
11fairs and shall adopt any rules necessary for enforcement of
12the program. The rules shall include appropriate penalties for
13violations.
14 (230 ILCS 5/36) (from Ch. 8, par. 37-36)
15 Sec. 36. (a) Whoever administers or conspires to administer
16to any horse a hypnotic, narcotic, stimulant, depressant or any
17chemical substance which may affect the speed of a horse at any
18time in any race where the purse or any part of the purse is
19made of money authorized by any Section of this Act, except
20those chemical substances permitted by ruling of the Board,
21internally, externally or by hypodermic method in a race or
22prior thereto, or whoever knowingly enters a horse in any race
23within a period of 24 hours after any hypnotic, narcotic,
24stimulant, depressant or any other chemical substance which may

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1affect the speed of a horse at any time, except those chemical
2substances permitted by ruling of the Board, has been
3administered to such horse either internally or externally or
4by hypodermic method for the purpose of increasing or retarding
5the speed of such horse shall be guilty of a Class 4 felony.
6The Board shall suspend or revoke such violator's license.
7 (b) The term "hypnotic" as used in this Section includes
8all barbituric acid preparations and derivatives.
9 (c) The term "narcotic" as used in this Section includes
10opium and all its alkaloids, salts, preparations and
11derivatives, cocaine and all its salts, preparations and
12derivatives and substitutes.
13 (d) The provisions of this Section 36 and the treatment
14authorized herein apply to horses entered in and competing in
15race meetings as defined in Section 3.07 of this Act and to
16horses entered in and competing at any county fair.
17(Source: P.A. 79-1185.)
18 (230 ILCS 5/39.2 new)
19 Sec. 39.2. Prohibition of political contributions from
20certain licensees and applicants.
21 (a) The General Assembly has a compelling interest in
22protecting the integrity of both the electoral process and the
23legislative process by preventing corruption and the
24appearance of corruption which may arise through permitting
25certain political campaign contributions by certain persons

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1involved in the horse racing and video gaming industries and
2regulated by the State. Unlike most other regulated industries,
3horse racing and gaming are especially susceptible to
4corruption and potential criminal influence. In Illinois, only
5licensed horse racing and gaming activities are legal and all
6other such activities are strictly prohibited. Given these
7circumstances, it is imperative to eliminate any potential
8corrupt influence in the horse racing and industries and the
9electoral process.
10 Banning political campaign contributions by certain
11persons subject to this Section to State officeholders and
12candidates for such offices and to county and municipal
13officeholders and candidates for such offices in counties and
14municipalities that receive financial benefits from horse
15racing and gaming activities is necessary to prevent corruption
16and the appearance of corruption that may arise when political
17campaign contributions and horse racing and gaming that is
18regulated by the State and that confers benefits on counties
19and municipalities are intermingled.
20 (b) As used in this Section:
21 "Affiliated entity" means (i) any corporate parent and each
22operating subsidiary of the business entity applying for or
23holding a license, (ii) each operating subsidiary of the
24corporate parent of the business entity applying for or holding
25a license, (iii) any organization recognized by the United
26States Internal Revenue Service as a tax-exempt organization

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1described in Section 501(c) of the Internal Revenue Code of
21986 (or any successor provision of federal tax law)
3established by one or more business entities seeking or holding
4a license, any affiliated entity of such business entity, or
5any affiliated person of such business entity, and (iv) any
6political committee for which the business entity applying for
7or holding a license, or any 501(c) organization described in
8item (iii) related to that business entity, is the sponsoring
9entity, as defined in Section 9-3 of the Election Code. For
10purposes of item (iv), the funding of all business entities
11applying for or holding a license shall be aggregated in
12determining whether such political committee is an affiliated
13entity.
14 "Affiliated person" means (i) any person with any ownership
15interest or distributive share in excess of 7.5% of any
16business entity applying for or holding a license, (ii)
17executive employees of any such business entity, and (iii) the
18spouse of the persons described in items (i) and (ii).
19 "Business entity" means any entity doing business for
20profit, whether organized as a corporation, partnership, sole
21proprietorship, limited liability company, or partnership or
22otherwise.
23 "Contribution" means a contribution as defined in Section
249-1.4 of the Election Code.
25 "Declared candidate" means a person who has filed a
26statement of candidacy and petition for nomination or election

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1in the principal office of the State Board of Elections, or in
2the office of the appropriate election authority for any county
3or municipality in which a race track is located.
4 "Executive employee" means (i) any person who is an officer
5or director or who fulfills duties equivalent to those of an
6officer or director of a business entity applying for or
7holding a license and (ii) any employee of such business entity
8who is required to register under the Lobbyist Registration
9Act.
10 "License" means any organization, inter-track wagering,
11inter-track wagering location, advance deposit wagering,
12concessionaire, or electronic gaming license issued pursuant
13to this Act.
14 "Officeholder" means the Governor, Lieutenant Governor,
15Attorney General, Secretary of State, Comptroller, Treasurer,
16member of the General Assembly, or any officeholder in any
17county or municipality in which a race track is located.
18 (c) Any person or business entity applying for or holding a
19license, any affiliated entities or persons of such business
20entity, any horsemen's association, and any entities or persons
21soliciting a contribution or causing a contribution to be made
22on behalf of such person, business entity, or horsemen's
23association, are prohibited from making any contribution to any
24officeholder or declared candidate or any political committee
25affiliated with any officeholder or declared candidate, as
26defined in Section 9-1.8 of the Election Code. This prohibition

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

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1affiliated entity prohibited from making contributions to any
2officeholder or declared candidate political committee
3pursuant to subsection (c) shall notify the Board within 7 days
4after discovering any necessary change or addition to the
5information relating to that person, business entity,
6horsemen's association, or affiliated entity contained in the
7list.
8 An individual who acts in good faith and in reliance on any
9information contained in the list shall not be subject to any
10penalties or liability imposed for a violation of this Section.
11 (e) If any provision of this Section is held invalid or its
12application to any person or circumstance is held invalid, the
13invalidity of that provision or application does not affect the
14other provisions or applications of this Section that can be
15given effect without the invalid application or provision.
16 (230 ILCS 5/40) (from Ch. 8, par. 37-40)
17 Sec. 40. (a) The imposition of any fine or penalty provided
18in this Act shall not preclude the Board in its rules and
19regulations from imposing a fine or penalty for any other
20action which, in the Board's discretion, is a detriment or
21impediment to horse racing.
22 (b) The Director of Agriculture or his or her authorized
23representative shall impose the following monetary penalties
24and hold administrative hearings as required for failure to
25submit the following applications, lists, or reports within the

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1time period, date or manner required by statute or rule or for
2removing a foal from Illinois prior to inspection:
3 (1) late filing of a renewal application for offering
4 or standing stallion for service:
5 (A) if an application is submitted no more than 30
6 days late, $50;
7 (B) if an application is submitted no more than 45
8 days late, $150; or
9 (C) if an application is submitted more than 45
10 days late, if filing of the application is allowed
11 under an administrative hearing, $250;
12 (2) late filing of list or report of mares bred:
13 (A) if a list or report is submitted no more than
14 30 days late, $50;
15 (B) if a list or report is submitted no more than
16 60 days late $150; or
17 (C) if a list or report is submitted more than 60
18 days late, if filing of the list or report is allowed
19 under an administrative hearing, $250;
20 (3) filing an Illinois foaled thoroughbred mare status
21 report after the statutory deadline as provided in
22 subsection (k) of Section 30 of this Act December 31:
23 (A) if a report is submitted no more than 30 days
24 late, $50;
25 (B) if a report is submitted no more than 90 days
26 late, $150;

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1 (C) if a report is submitted no more than 150 days
2 late, $250; or
3 (D) if a report is submitted more than 150 days
4 late, if filing of the report is allowed under an
5 administrative hearing, $500;
6 (4) late filing of application for foal eligibility
7 certificate:
8 (A) if an application is submitted no more than 30
9 days late, $50;
10 (B) if an application is submitted no more than 90
11 days late, $150;
12 (C) if an application is submitted no more than 150
13 days late, $250; or
14 (D) if an application is submitted more than 150
15 days late, if filing of the application is allowed
16 under an administrative hearing, $500;
17 (5) failure to report the intent to remove a foal from
18 Illinois prior to inspection, identification and
19 certification by a Department of Agriculture investigator,
20 $50; and
21 (6) if a list or report of mares bred is incomplete,
22 $50 per mare not included on the list or report.
23 Any person upon whom monetary penalties are imposed under
24this Section 3 times within a 5 year period shall have any
25further monetary penalties imposed at double the amounts set
26forth above. All monies assessed and collected for violations

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1relating to thoroughbreds shall be paid into the Thoroughbred
2Breeders Fund. All monies assessed and collected for violations
3relating to standardbreds shall be paid into the Standardbred
4Breeders Fund.
5(Source: P.A. 87-397.)
6 (230 ILCS 5/54.75)
7 Sec. 54.75. Horse Racing Equity Trust Fund.
8 (a) There is created a Fund to be known as the Horse Racing
9Equity Trust Fund, which is a non-appropriated trust fund held
10separate and apart from State moneys. The Fund shall consist of
11moneys paid into it by owners licensees under the Illinois
12Riverboat Gambling Act for the purposes described in this
13Section. The Fund shall be administered by the Board. Moneys in
14the Fund shall be distributed as directed and certified by the
15Board in accordance with the provisions of subsection (b).
16 (b) The moneys deposited into the Fund, plus any accrued
17interest on those moneys, shall be distributed within 10 days
18after those moneys are deposited into the Fund as follows:
19 (1) Sixty percent of all moneys distributed under this
20 subsection shall be distributed to organization licensees
21 to be distributed at their race meetings as purses.
22 Fifty-seven percent of the amount distributed under this
23 paragraph (1) shall be distributed for thoroughbred race
24 meetings and 43% shall be distributed for standardbred race
25 meetings. Within each breed, moneys shall be allocated to

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1 each organization licensee's purse fund in accordance with
2 the ratio between the purses generated for that breed by
3 that licensee during the prior calendar year and the total
4 purses generated throughout the State for that breed during
5 the prior calendar year by licensees in the current
6 calendar year.
7 (2) The remaining 40% of the moneys distributed under
8 this subsection (b) shall be distributed as follows:
9 (A) 11% shall be distributed to any person (or its
10 successors or assigns) who had operating control of a
11 racetrack that conducted live racing in 2002 at a
12 racetrack in a county with at least 230,000 inhabitants
13 that borders the Mississippi River and is a licensee in
14 the current year; and
15 (B) the remaining 89% shall be distributed pro rata
16 according to the aggregate proportion of total handle
17 from wagering on live races conducted in Illinois
18 (irrespective of where the wagers are placed) for
19 calendar years 2004 and 2005 to any person (or its
20 successors or assigns) who (i) had majority operating
21 control of a racing facility at which live racing was
22 conducted in calendar year 2002, (ii) is a licensee in
23 the current year, and (iii) is not eligible to receive
24 moneys under subparagraph (A) of this paragraph (2).
25 The moneys received by an organization licensee
26 under this paragraph (2) shall be used by each

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1 organization licensee to improve, maintain, market,
2 and otherwise operate its racing facilities to conduct
3 live racing, which shall include backstretch services
4 and capital improvements related to live racing and the
5 backstretch. Any organization licensees sharing common
6 ownership may pool the moneys received and spent at all
7 racing facilities commonly owned in order to meet these
8 requirements.
9 If any person identified in this paragraph (2) becomes
10 ineligible to receive moneys from the Fund, such amount
11 shall be redistributed among the remaining persons in
12 proportion to their percentages otherwise calculated.
13 (c) The Board shall monitor organization licensees to
14ensure that moneys paid to organization licensees under this
15Section are distributed by the organization licensees as
16provided in subsection (b).
17(Source: P.A. 95-1008, eff. 12-15-08.)
18 (230 ILCS 5/56 new)
19 Sec. 56. Electronic gaming.
20 (a) A person, firm, corporation, or limited liability
21company having operating control of a race track may apply to
22the Gaming Board for an electronic gaming license. An
23electronic gaming license shall authorize its holder to conduct
24electronic gaming on the grounds of the race track controlled
25by the licensee's race track. Only one electronic gaming

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1license may be awarded for any race track. A holder of an
2electronic gaming license shall be subject to the Illinois
3Gambling Act and rules of the Illinois Gaming Board concerning
4electronic gaming. If the person, firm, corporation, or limited
5liability company having operating control of a race track is
6found by the Illinois Gaming Board to be unsuitable for an
7electronic gaming license under the Illinois Gambling Act and
8rules of the Gaming Board, that person, firm, corporation, or
9limited liability company shall not be granted an electronic
10gaming license. Each license shall specify the number of gaming
11positions that its holder may operate.
12 An electronic gaming licensee may not permit persons under
1321 years of age to be present in its electronic gaming
14facility, but the licensee may accept wagers on live racing and
15inter-track wagers at its electronic gaming facility.
16 (b) For purposes of this subsection, "adjusted gross
17receipts" means an electronic gaming licensee's gross receipts
18less winnings paid to wagerers and shall also include any
19amounts that would otherwise be deducted pursuant to subsection
20(a-9) of Section 13 of the Illinois Gambling Act. The adjusted
21gross receipts by an electronic gaming licensee from electronic
22gaming remaining after the payment of taxes under Section 13 of
23the Illinois Gambling Act shall be distributed as follows:
24 (1) Amounts shall be paid to the purse account at the
25 track at which the organization licensee is conducting
26 racing equal to the following:

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1 12.75% of annual adjusted gross receipts up to and
2 including $75,000,000;
3 20% of annual adjusted gross receipts in excess of
4 $75,000,000 but not exceeding $100,000,000;
5 26.5% of annual adjusted gross receipts in excess
6 of $100,000,000 but not exceeding $125,000,000; and
7 20.5% of annual adjusted gross receipts in excess
8 of $125,000,000.
9 (2) The remainder shall be retained by the electronic
10 gaming licensee.
11 (c) Electronic gaming receipts placed into the purse
12account of an organization licensee racing thoroughbred horses
13shall be used for purses, for health care services or worker's
14compensation for racing industry workers, for equine research,
15for programs to care for and transition injured and retired
16thoroughbred horses that race at the race track, or for horse
17ownership promotion, in accordance with the agreement of the
18horsemen's association representing the largest number of
19owners, breeders, and trainers who race at that organization
20licensee's race meetings.
21 Annually, from the purse account of an organization
22licensee racing thoroughbred horses in this State, except for
23in Madison County, an amount equal to 12% of the electronic
24gaming receipts placed into the purse accounts shall be paid to
25the Illinois Thoroughbred Breeders Fund and shall be used for
26owner awards; a stallion program pursuant to paragraph (3) of

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1subsection (g) of Section 30 of this Act; and Illinois
2conceived and foaled stakes races pursuant to paragraph (2) of
3subsection (g) of Section 30 of this Act, as specifically
4designated by the horsemen's association representing the
5largest number of owners, breeders, and trainers who race at
6the organization licensee's race meetings.
7 Annually, from the purse account of an organization
8licensee racing thoroughbred horses in Madison County, an
9amount equal to 10% of the electronic gaming receipts placed
10into the purse accounts shall be paid to the Illinois
11Thoroughbred Breeders Fund and shall be used for owner awards;
12a stallion program pursuant to paragraph (3) of subsection (g)
13of Section 30 of this Act; and Illinois conceived and foaled
14stakes races pursuant to paragraph (2) of subsection (g) of
15Section 30 of this Act, as specifically designated by the
16horsemen's association representing the largest number of
17owners, breeders, and trainers who race at the organization
18licensee's race meetings.
19 Annually, from the purse account of an organization
20licensee conducting thoroughbred races at a race track in
21Madison County, an amount equal to 1% of the electronic gaming
22receipts distributed to purses per subsection (b) of this
23Section 56 shall be paid as follows: 0.33 1/3% to Southern
24Illinois University Department of Animal Sciences for equine
25research and education, an amount equal to 0.33 1/3% of the
26electronic gaming receipts shall be used to operate laundry

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1facilities for backstretch workers at that race track, and an
2amount equal to 0.33 1/3% of the electronic gaming receipts
3shall be paid to programs to care for injured and unwanted
4horses that race at that race track.
5 Annually, from the purse account of organization licensees
6conducting thoroughbred races at race tracks in Cook County,
7$100,000 shall be paid for division and equal distribution to
8the animal sciences department of each Illinois public
9university system engaged in equine research and education on
10or before the effective date of this amendatory Act of the 98th
11General Assembly for equine research and education.
12 (d) Annually, from the purse account of an organization
13licensee racing standardbred horses, an amount equal to 15% of
14the electronic gaming receipts placed into that purse account
15shall be paid to the Illinois Colt Stakes Purse Distribution
16Fund. Moneys deposited into the Illinois Colt Stakes Purse
17Distribution Fund shall be used for standardbred racing as
18authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of
19subsection (g) of Section 31 of this Act and for bonus awards
20as authorized under paragraph 6 of subsection (j) of Section 31
21of this Act.
22 (e) As a requirement for continued eligibility to conduct
23electronic gaming, each organization licensee must promote
24live racing and horse ownership through marketing and
25promotional efforts. To meet this requirement, all
26organization licensees operating at each race track facility

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1must collectively expend the amount of the pari-mutuel tax
2credit that was certified by the Illinois Racing Board in the
3prior calendar year pursuant to Section 32.1 of this Act for
4that race track facility, in addition to the amount that was
5expended by each organizational licensee for such efforts in
6calendar year 2009. Such incremental expenditures must be
7directed to assure that all marketing expenditures, including
8those for the organization licensee's electronic gaming
9facility, advertise, market, and promote horse racing or horse
10ownership. The amount spent by the organization licensee for
11such marketing and promotional efforts in 2009 shall be
12certified by the Board no later than 90 days after the
13effective date of this Section.
14 The Board shall review any amounts expended pursuant to
15this subsection (e) and shall also include an itemized
16description of the amount that was expended by each
17organization licensee pursuant to this subsection (e) in the
18annual report that the Board is required to submit pursuant to
19subsection (d) of Section 14 of the Illinois Horse Racing Act
20of 1975.
21 (f) The Illinois Gaming Board shall submit a report to the
22General Assembly on or before December 31, 2014 that examines
23the feasibility of conducting electronic gaming at the Illinois
24State Fairgrounds in Sangamon County. At a minimum, this report
25shall analyze the projected revenues that will be generated,
26the potential for cannibalization of existing riverboats,

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1casinos, or other electronic gaming facilities, and the
2potential detriment to the surrounding area and its population.
3The report shall include the Illinois Gaming Board's findings
4together with appropriate recommendations for legislative
5action.
6 Section 90-40. The Riverboat Gambling Act is amended by
7changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,
811.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,
9and 24 and by adding Sections 5.3, 7.6, 7.7, 7.8, 7.9, 7.10,
107.11, 7.12, and 18.2 as follows:
11 (230 ILCS 10/1) (from Ch. 120, par. 2401)
12 Sec. 1. Short title. This Act shall be known and may be
13cited as the Illinois Riverboat Gambling Act.
14(Source: P.A. 86-1029.)
15 (230 ILCS 10/2) (from Ch. 120, par. 2402)
16 Sec. 2. Legislative Intent.
17 (a) This Act is intended to benefit the people of the State
18of Illinois by assisting economic development, and promoting
19Illinois tourism, and by increasing the amount of revenues
20available to the State to assist and support education, and to
21defray State expenses, including unpaid bills.
22 (b) While authorization of riverboat and casino gambling
23will enhance investment, beautification, development and

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1tourism in Illinois, it is recognized that it will do so
2successfully only if public confidence and trust in the
3credibility and integrity of the gambling operations and the
4regulatory process is maintained. Therefore, regulatory
5provisions of this Act are designed to strictly regulate the
6facilities, persons, associations and practices related to
7gambling operations pursuant to the police powers of the State,
8including comprehensive law enforcement supervision.
9 (c) The Illinois Gaming Board established under this Act
10should, as soon as possible, inform each applicant for an
11owners license of the Board's intent to grant or deny a
12license.
13(Source: P.A. 93-28, eff. 6-20-03.)
14 (230 ILCS 10/3) (from Ch. 120, par. 2403)
15 Sec. 3. Riverboat Gambling Authorized.
16 (a) Riverboat and casino gambling operations and
17electronic gaming operations and the system of wagering
18incorporated therein, as defined in this Act, are hereby
19authorized to the extent that they are carried out in
20accordance with the provisions of this Act.
21 (b) This Act does not apply to the pari-mutuel system of
22wagering used or intended to be used in connection with the
23horse-race meetings as authorized under the Illinois Horse
24Racing Act of 1975, lottery games authorized under the Illinois
25Lottery Law, bingo authorized under the Bingo License and Tax

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1Act, charitable games authorized under the Charitable Games Act
2or pull tabs and jar games conducted under the Illinois Pull
3Tabs and Jar Games Act. This Act applies to electronic gaming
4authorized under the Illinois Horse Racing Act of 1975 to the
5extent provided in that Act and in this Act.
6 (c) Riverboat gambling conducted pursuant to this Act may
7be authorized upon any water within the State of Illinois or
8any water other than Lake Michigan which constitutes a boundary
9of the State of Illinois. Notwithstanding any provision in this
10subsection (c) to the contrary, a licensee that receives its
11license pursuant to subsection (e-5) of Section 7 may conduct
12riverboat gambling on Lake Michigan from a home dock located on
13Lake Michigan subject to any limitations contained in Section
147. Notwithstanding any provision in this subsection (c) to the
15contrary, a licensee may conduct gambling at its home dock
16facility as provided in Sections 7 and 11. A licensee may
17conduct riverboat gambling authorized under this Act
18regardless of whether it conducts excursion cruises. A licensee
19may permit the continuous ingress and egress of passengers for
20the purpose of gambling.
21 (d) Gambling that is conducted in accordance with this Act
22using slot machines and video games of chance and other
23electronic gambling games as defined in both the Illinois
24Gambling Act and the Illinois Horse Racing Act of 1975 is
25authorized.
26(Source: P.A. 91-40, eff. 6-25-99.)

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1 (230 ILCS 10/4) (from Ch. 120, par. 2404)
2 Sec. 4. Definitions. As used in this Act:
3 (a) "Board" means the Illinois Gaming Board.
4 (b) "Occupational license" means a license issued by the
5Board to a person or entity to perform an occupation which the
6Board has identified as requiring a license to engage in
7riverboat gambling in Illinois.
8 (c) "Gambling game" includes, but is not limited to,
9baccarat, twenty-one, poker, craps, slot machine, video game of
10chance, roulette wheel, klondike table, punchboard, faro
11layout, keno layout, numbers ticket, push card, jar ticket, or
12pull tab which is authorized by the Board as a wagering device
13under this Act.
14 (d) "Riverboat" means a self-propelled excursion boat, a
15permanently moored barge, or permanently moored barges that are
16permanently fixed together to operate as one vessel, on which
17lawful gambling is authorized and licensed as provided in this
18Act.
19 "Slot machine" means any mechanical, electrical, or other
20device, contrivance, or machine that is authorized by the Board
21as a wagering device under this Act which, upon insertion of a
22coin, currency, token, or similar object therein, or upon
23payment of any consideration whatsoever, is available to play
24or operate, the play or operation of which may deliver or
25entitle the person playing or operating the machine to receive

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1cash, premiums, merchandise, tokens, or anything of value
2whatsoever, whether the payoff is made automatically from the
3machine or in any other manner whatsoever. A slot machine:
4 (1) may utilize spinning reels or video displays or
5 both;
6 (2) may or may not dispense coins, tickets, or tokens
7 to winning patrons;
8 (3) may use an electronic credit system for receiving
9 wagers and making payouts; and
10 (4) may simulate a table game.
11 "Slot machine" does not include table games authorized by
12the Board as a wagering device under this Act.
13 (e) "Managers license" means a license issued by the Board
14to a person or entity to manage gambling operations conducted
15by the State pursuant to Section 7.3.
16 (f) "Dock" means the location where a riverboat moors for
17the purpose of embarking passengers for and disembarking
18passengers from the riverboat.
19 (g) "Gross receipts" means the total amount of money
20exchanged for the purchase of chips, tokens, or electronic
21cards by riverboat patrons.
22 (h) "Adjusted gross receipts" means the gross receipts less
23winnings paid to wagerers.
24 (i) "Cheat" means to alter the selection of criteria which
25determine the result of a gambling game or the amount or
26frequency of payment in a gambling game.

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1 (j) (Blank).
2 (k) "Gambling operation" means the conduct of authorized
3gambling games authorized under this Act upon a riverboat or in
4a casino or authorized under this Act and the Illinois Horse
5Racing Act of 1975 at an electronic gaming facility.
6 (l) "License bid" means the lump sum amount of money that
7an applicant bids and agrees to pay the State in return for an
8owners license that is issued or re-issued on or after July 1,
92003.
10 "Table game" means a live gaming apparatus upon which
11gaming is conducted or that determines an outcome that is the
12object of a wager, including, but not limited to, baccarat,
13twenty-one, blackjack, poker, craps, roulette wheel, klondike
14table, punchboard, faro layout, keno layout, numbers ticket,
15push card, jar ticket, pull tab, or other similar games that
16are authorized by the Board as a wagering device under this
17Act. "Table game" does not include slot machines or video games
18of chance.
19 (m) The terms "minority person", "female", and "person with
20a disability" shall have the same meaning as defined in Section
212 of the Business Enterprise for Minorities, Females, and
22Persons with Disabilities Act.
23 "Authority" means the Chicago Casino Development
24Authority.
25 "Casino" means a facility at which lawful gambling is
26authorized as provided in this Act.

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1 "Owners license" means a license to conduct riverboat or
2casino gambling operations, but does not include an electronic
3gaming license.
4 "Licensed owner" means a person who holds an owners
5license.
6 "Electronic gaming" means slot machine gambling, video
7game of chance gambling, or gambling with electronic gambling
8games as defined in the Illinois Gambling Act or defined by the
9Board that is conducted at a race track pursuant to an
10electronic gaming license.
11 "Electronic gaming facility" means the area where the Board
12has authorized electronic gaming at a race track of an
13organization licensee under the Illinois Horse Racing Act of
141975 that holds an electronic gaming license.
15 "Electronic gaming license" means a license issued by the
16Board under Section 7.6 of this Act authorizing electronic
17gaming at an electronic gaming facility.
18 "Electronic gaming licensee" means an entity that holds an
19electronic gaming license.
20 "Organization licensee" means an entity authorized by the
21Illinois Racing Board to conduct pari-mutuel wagering in
22accordance with the Illinois Horse Racing Act of 1975. With
23respect only to electronic gaming, "organization licensee"
24includes the authorization for electronic gaming created under
25subsection (a) of Section 56 of the Illinois Horse Racing Act
26of 1975.

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1 "Casino operator license" means the license held by the
2person or entity selected by the Authority to manage and
3operate a riverboat or casino within the geographic area of the
4authorized municipality pursuant to this Act and the Chicago
5Casino Development Authority Act.
6(Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)
7 (230 ILCS 10/5) (from Ch. 120, par. 2405)
8 Sec. 5. Gaming Board.
9 (a) (1) There is hereby established the Illinois Gaming
10Board, which shall have the powers and duties specified in this
11Act and in the Chicago Casino Development Authority Act, and
12all other powers necessary and proper to fully and effectively
13execute this Act for the purpose of administering, regulating,
14and enforcing the system of riverboat and casino gambling and
15electronic gaming established by this Act and by the Chicago
16Casino Development Authority Act. Its jurisdiction shall
17extend under this Act and the Chicago Casino Development
18Authority Act to every person, association, corporation,
19partnership and trust involved in riverboat and casino gambling
20operations and electronic gaming in the State of Illinois.
21 (2) Notwithstanding any provision of this Section to the
22contrary, the term of office of each member of the Board
23appointed by the Governor who is sitting on the Board on the
24effective date of this amendatory Act of the 98th General
25Assembly is terminated on that effective date.

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1 Beginning on the 90th day after the effective date of this
2amendatory Act of the 98th General Assembly, the The Board
3shall consist of 5 members to be appointed by the Governor with
4the advice and consent of the Senate, one of whom shall be
5designated by the Governor to be chairperson chairman. Each
6member shall have a reasonable knowledge of the practice,
7procedure and principles of gambling operations. Each member
8shall either be a resident of Illinois or shall certify that he
9or she will become a resident of Illinois before taking office.
10 For the purposes of this subsection (a), the Governor may
11make a nomination and the Senate may confirm the nominee in
12advance of the commencement of the nominee's term of office.
13The Governor shall make nominations for appointment to the
14Board under this Section within 60 days after the effective
15date of this amendatory Act of the 98th General Assembly. A
16Board member sitting on the Board on the effective date of this
17amendatory Act of the 98th General Assembly may not hold over
18in office for more than 90 days after the effective date of
19this amendatory Act of the 98th General Assembly. Nothing in
20this Section shall prevent the Governor from making a temporary
21appointment or nominating a Board member holding office on the
22day before the effective date of this amendatory Act of the
2398th General Assembly.
24 The Board must include the following:
25 (A) One member who has received, at a minimum, a
26 bachelor's degree from an accredited school and at least 10

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1 years of verifiable training and experience in the fields
2 of investigation and law enforcement.
3 (B) One member who is a certified public accountant
4 with experience in auditing and with knowledge of complex
5 corporate structures and transactions.
6 (C) One member who has 5 years' experience as a
7 principal, senior officer, or director of a company or
8 business with either material responsibility for the daily
9 operations and management of the overall company or
10 business or material responsibility for the policy making
11 of the company or business.
12 (D) One member who is a lawyer licensed to practice law
13 in Illinois.
14 No more than 3 members of the Board may be from the same
15political party. The Board should reflect the ethnic, cultural,
16and geographic diversity of the State. No Board member shall,
17within a period of one year immediately preceding nomination,
18have been employed or received compensation or fees for
19services from a person or entity, or its parent or affiliate,
20that has engaged in business with the Board, a licensee, or a
21licensee under the Illinois Horse Racing Act of 1975. Board
22members must publicly disclose all prior affiliations with
23gaming interests, including any compensation, fees, bonuses,
24salaries, and other reimbursement received from a person or
25entity, or its parent or affiliate, that has engaged in
26business with the Board, a licensee, or a licensee under the

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1Illinois Horse Racing Act of 1975. This disclosure must be made
2within 30 days after nomination but prior to confirmation by
3the Senate and must be made available to the members of the
4Senate. At least one member shall be experienced in law
5enforcement and criminal investigation, at least one member
6shall be a certified public accountant experienced in
7accounting and auditing, and at least one member shall be a
8lawyer licensed to practice law in Illinois.
9 (3) The terms of office of the Board members shall be 3
10years, except that the terms of office of the initial Board
11members appointed pursuant to this Act will commence from the
12effective date of this Act and run as follows: one for a term
13ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
14a term ending July 1, 1993. Upon the expiration of the
15foregoing terms, the successors of such members shall serve a
16term for 3 years and until their successors are appointed and
17qualified for like terms. Vacancies in the Board shall be
18filled for the unexpired term in like manner as original
19appointments. Each member of the Board shall be eligible for
20reappointment at the discretion of the Governor with the advice
21and consent of the Senate.
22 (4) Each member of the Board shall receive $300 for each
23day the Board meets and for each day the member conducts any
24hearing pursuant to this Act. Each member of the Board shall
25also be reimbursed for all actual and necessary expenses and
26disbursements incurred in the execution of official duties.

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1 (5) No person shall be appointed a member of the Board or
2continue to be a member of the Board who is, or whose spouse,
3child or parent is, a member of the board of directors of, or a
4person financially interested in, any gambling operation
5subject to the jurisdiction of this Board, or any race track,
6race meeting, racing association or the operations thereof
7subject to the jurisdiction of the Illinois Racing Board. No
8Board member shall hold any other public office. No person
9shall be a member of the Board who is not of good moral
10character or who has been convicted of, or is under indictment
11for, a felony under the laws of Illinois or any other state, or
12the United States.
13 (5.5) No member of the Board shall engage in any political
14activity. For the purposes of this Section, "political" means
15any activity in support of or in connection with any campaign
16for federal, State, or local elective office or any political
17organization, but does not include activities (i) relating to
18the support or opposition of any executive, legislative, or
19administrative action (as those terms are defined in Section 2
20of the Lobbyist Registration Act), (ii) relating to collective
21bargaining, or (iii) that are otherwise in furtherance of the
22person's official State duties or governmental and public
23service functions.
24 (6) Any member of the Board may be removed by the Governor
25for neglect of duty, misfeasance, malfeasance, or nonfeasance
26in office or for engaging in any political activity.

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1 (7) Before entering upon the discharge of the duties of his
2office, each member of the Board shall take an oath that he
3will faithfully execute the duties of his office according to
4the laws of the State and the rules and regulations adopted
5therewith and shall give bond to the State of Illinois,
6approved by the Governor, in the sum of $25,000. Every such
7bond, when duly executed and approved, shall be recorded in the
8office of the Secretary of State. Whenever the Governor
9determines that the bond of any member of the Board has become
10or is likely to become invalid or insufficient, he shall
11require such member forthwith to renew his bond, which is to be
12approved by the Governor. Any member of the Board who fails to
13take oath and give bond within 30 days from the date of his
14appointment, or who fails to renew his bond within 30 days
15after it is demanded by the Governor, shall be guilty of
16neglect of duty and may be removed by the Governor. The cost of
17any bond given by any member of the Board under this Section
18shall be taken to be a part of the necessary expenses of the
19Board.
20 (8) The Board shall employ such personnel as may be
21necessary to carry out its functions and shall determine the
22salaries of all personnel, except those personnel whose
23salaries are determined under the terms of a collective
24bargaining agreement. No person shall be employed to serve the
25Board who is, or whose spouse, parent or child is, an official
26of, or has a financial interest in or financial relation with,

09800SB1739sam001- 377 -LRB098 10559 AMC 42403 a
1any operator engaged in gambling operations within this State
2or any organization engaged in conducting horse racing within
3this State. For the one year immediately preceding employment,
4an employee shall not have been employed or received
5compensation or fees for services from a person or entity, or
6its parent or affiliate, that has engaged in business with the
7Board, a licensee, or a licensee under the Illinois Horse
8Racing Act of 1975. Any employee violating these prohibitions
9shall be subject to termination of employment. In addition, all
10Board members and employees are subject to the restrictions set
11forth in Section 5-45 of the State Officials and Employees
12Ethics Act.
13 (9) An Administrator shall perform any and all duties that
14the Board shall assign him. The salary of the Administrator
15shall be determined by the Board and, in addition, he shall be
16reimbursed for all actual and necessary expenses incurred by
17him in discharge of his official duties. The Administrator
18shall keep records of all proceedings of the Board and shall
19preserve all records, books, documents and other papers
20belonging to the Board or entrusted to its care. The
21Administrator shall devote his full time to the duties of the
22office and shall not hold any other office or employment. In
23addition to other prescribed duties, the Administrator shall
24establish a system by which personnel assisting the Board
25regarding the issuance of owners licenses, whether it be
26relocation, re-issuance, or the initial issuance, shall be

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1assigned specific duties in each instance, thereby preventing a
2conflict of interest in regards to the decision-making process.
3A conflict of interest exists if a situation influences or
4creates the appearance that it may influence judgment or
5performance of duties or responsibilities.
6 (b) The Board shall have general responsibility for the
7implementation of this Act. Its duties include, without
8limitation, the following:
9 (1) To decide promptly and in reasonable order all
10 license applications. Any party aggrieved by an action of
11 the Board denying, suspending, revoking, restricting or
12 refusing to renew a license may request a hearing before
13 the Board. A request for a hearing must be made to the
14 Board in writing within 5 days after service of notice of
15 the action of the Board. Notice of the action of the Board
16 shall be served either by personal delivery or by certified
17 mail, postage prepaid, to the aggrieved party. Notice
18 served by certified mail shall be deemed complete on the
19 business day following the date of such mailing. The Board
20 shall conduct all requested hearings promptly and in
21 reasonable order;
22 (2) To conduct all hearings pertaining to civil
23 violations of this Act or rules and regulations promulgated
24 hereunder;
25 (3) To promulgate such rules and regulations as in its
26 judgment may be necessary to protect or enhance the

09800SB1739sam001- 379 -LRB098 10559 AMC 42403 a
1 credibility and integrity of gambling operations
2 authorized by this Act and the regulatory process
3 hereunder;
4 (4) To provide for the establishment and collection of
5 all license and registration fees and taxes imposed by this
6 Act and the rules and regulations issued pursuant hereto.
7 All such fees and taxes shall be deposited into the State
8 Gaming Fund;
9 (5) To provide for the levy and collection of penalties
10 and fines for the violation of provisions of this Act and
11 the rules and regulations promulgated hereunder. All such
12 fines and penalties shall be deposited into the Education
13 Assistance Fund, created by Public Act 86-0018, of the
14 State of Illinois;
15 (6) To be present through its inspectors and agents any
16 time gambling operations are conducted on any riverboat, in
17 any casino, or at any electronic gaming facility for the
18 purpose of certifying the revenue thereof, receiving
19 complaints from the public, and conducting such other
20 investigations into the conduct of the gambling games and
21 the maintenance of the equipment as from time to time the
22 Board may deem necessary and proper;
23 (7) To review and rule upon any complaint by a licensee
24 regarding any investigative procedures of the State which
25 are unnecessarily disruptive of gambling operations. The
26 need to inspect and investigate shall be presumed at all

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1 times. The disruption of a licensee's operations shall be
2 proved by clear and convincing evidence, and establish
3 that: (A) the procedures had no reasonable law enforcement
4 purposes, and (B) the procedures were so disruptive as to
5 unreasonably inhibit gambling operations;
6 (8) To hold at least one meeting each quarter of the
7 fiscal year. In addition, special meetings may be called by
8 the Chairman or any 2 Board members upon 72 hours written
9 notice to each member. All Board meetings shall be subject
10 to the Open Meetings Act. Three members of the Board shall
11 constitute a quorum, and 3 votes shall be required for any
12 final determination by the Board. The Board shall keep a
13 complete and accurate record of all its meetings. A
14 majority of the members of the Board shall constitute a
15 quorum for the transaction of any business, for the
16 performance of any duty, or for the exercise of any power
17 which this Act requires the Board members to transact,
18 perform or exercise en banc, except that, upon order of the
19 Board, one of the Board members or an administrative law
20 judge designated by the Board may conduct any hearing
21 provided for under this Act or by Board rule and may
22 recommend findings and decisions to the Board. The Board
23 member or administrative law judge conducting such hearing
24 shall have all powers and rights granted to the Board in
25 this Act. The record made at the time of the hearing shall
26 be reviewed by the Board, or a majority thereof, and the

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1 findings and decision of the majority of the Board shall
2 constitute the order of the Board in such case;
3 (9) To maintain records which are separate and distinct
4 from the records of any other State board or commission.
5 Such records shall be available for public inspection and
6 shall accurately reflect all Board proceedings;
7 (10) To file a written annual report with the Governor
8 on or before March 1 each year and such additional reports
9 as the Governor may request. The annual report shall
10 include a statement of receipts and disbursements by the
11 Board, actions taken by the Board, and any additional
12 information and recommendations which the Board may deem
13 valuable or which the Governor may request;
14 (11) (Blank);
15 (12) (Blank);
16 (13) To assume responsibility for administration and
17 enforcement of the Video Gaming Act; and
18 (13.1) To assume responsibility for the administration
19 and enforcement of operations at electronic gaming
20 facilities pursuant to this Act and the Illinois Horse
21 Racing Act of 1975;
22 (13.2) To assume responsibility for the administration
23 and enforcement of gambling operations at the Chicago
24 Casino Development Authority's casino pursuant to the
25 Chicago Casino Development Authority Act; and
26 (14) To adopt, by rule, a code of conduct governing

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1 Board members and employees that ensure, to the maximum
2 extent possible, that persons subject to this Code avoid
3 situations, relationships, or associations that may
4 represent or lead to a conflict of interest.
5 Any action by the Board or staff of the Board, including,
6but not limited to, denying a renewal, approving procedures
7(including internal controls), levying a fine or penalty,
8promotions, or other activities affecting an applicant for
9licensure or a licensee, may, at the discretion of the
10applicant or licensee, be appealed to an administrative law
11judge in accordance with subsection (b) of Section 17.1.
12 Internal controls and changes submitted by licensees must
13be reviewed and either approved or denied with cause within 60
14days after receipt by the Illinois Gaming Board. In the event
15an internal control submission or change does not meet the
16standards set by the Board, staff of the Board must provide
17technical assistance to the licensee to rectify such
18deficiencies within 60 days after the initial submission and
19the revised submission must be reviewed and approved or denied
20with cause within 60 days. For the purposes of this paragraph,
21"with cause" means that the approval of the submission would
22jeopardize the integrity of gaming. In the event the Board
23staff has not acted within the timeframe, the submission shall
24be deemed approved.
25 (c) The Board shall have jurisdiction over and shall
26supervise all gambling operations governed by this Act and the

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1Chicago Casino Development Authority Act. The Board shall have
2all powers necessary and proper to fully and effectively
3execute the provisions of this Act and the Chicago Casino
4Development Authority Act, including, but not limited to, the
5following:
6 (1) To investigate applicants and determine the
7 eligibility of applicants for licenses and to select among
8 competing applicants the applicants which best serve the
9 interests of the citizens of Illinois.
10 (2) To have jurisdiction and supervision over all
11 riverboat gambling operations authorized under this Act
12 and the Chicago Casino Development Authority Act in this
13 State and all persons in places on riverboats where
14 gambling operations are conducted.
15 (3) To promulgate rules and regulations for the purpose
16 of administering the provisions of this Act and the Chicago
17 Casino Development Authority Act and to prescribe rules,
18 regulations and conditions under which all riverboat
19 gambling operations subject to this Act and the Chicago
20 Casino Development Authority Act in the State shall be
21 conducted. Such rules and regulations are to provide for
22 the prevention of practices detrimental to the public
23 interest and for the best interests of riverboat gambling,
24 including rules and regulations regarding the inspection
25 of electronic gaming facilities, casinos, and such
26 riverboats, and the review of any permits or licenses

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1 necessary to operate a riverboat, casino, or electronic
2 gaming facilities under any laws or regulations applicable
3 to riverboats, casinos, or electronic gaming facilities
4 and to impose penalties for violations thereof.
5 (4) To enter the office, riverboats, casinos,
6 electronic gaming facilities, and other facilities, or
7 other places of business of a licensee, where evidence of
8 the compliance or noncompliance with the provisions of this
9 Act and the Chicago Casino Development Authority Act is
10 likely to be found.
11 (5) To investigate alleged violations of this Act, the
12 Chicago Casino Development Authority Act, or the rules of
13 the Board and to take appropriate disciplinary action
14 against a licensee or a holder of an occupational license
15 for a violation, or institute appropriate legal action for
16 enforcement, or both.
17 (6) To adopt standards for the licensing of all persons
18 and entities under this Act and the Chicago Casino
19 Development Authority Act, as well as for electronic or
20 mechanical gambling games, and to establish fees for such
21 licenses.
22 (7) To adopt appropriate standards for all electronic
23 gaming facilities, riverboats, casinos, and other
24 facilities authorized under this Act and the Chicago Casino
25 Development Authority Act.
26 (8) To require that the records, including financial or

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1 other statements of any licensee under this Act and the
2 Chicago Casino Development Authority Act, shall be kept in
3 such manner as prescribed by the Board and that any such
4 licensee involved in the ownership or management of
5 gambling operations submit to the Board an annual balance
6 sheet and profit and loss statement, list of the
7 stockholders or other persons having a 1% or greater
8 beneficial interest in the gambling activities of each
9 licensee, and any other information the Board deems
10 necessary in order to effectively administer this Act and
11 the Chicago Casino Development Authority Act and all rules,
12 regulations, orders and final decisions promulgated under
13 this Act and the Chicago Casino Development Authority Act.
14 (9) To conduct hearings, issue subpoenas for the
15 attendance of witnesses and subpoenas duces tecum for the
16 production of books, records and other pertinent documents
17 in accordance with the Illinois Administrative Procedure
18 Act, and to administer oaths and affirmations to the
19 witnesses, when, in the judgment of the Board, it is
20 necessary to administer or enforce this Act, the Chicago
21 Casino Development Authority Act, or the Board rules.
22 (10) To prescribe a form to be used by any licensee
23 involved in the ownership or management of gambling
24 operations as an application for employment for their
25 employees.
26 (11) To revoke or suspend licenses, other than the

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1 license issued to the Chicago Casino Development
2 Authority, as the Board may see fit and in compliance with
3 applicable laws of the State regarding administrative
4 procedures, and to review applications for the renewal of
5 licenses. The Board may suspend an owners license (other
6 than the license issued to the Chicago Casino Development
7 Authority), electronic gaming license, or casino operator
8 license, without notice or hearing upon a determination
9 that the safety or health of patrons or employees is
10 jeopardized by continuing a gambling operation conducted
11 under that license riverboat's operation. The suspension
12 may remain in effect until the Board determines that the
13 cause for suspension has been abated. The Board may revoke
14 an the owners license (other than the license issued to the
15 Chicago Casino Development Authority), electronic gaming
16 license, or casino operator license upon a determination
17 that the licensee owner has not made satisfactory progress
18 toward abating the hazard.
19 (12) To eject or exclude or authorize the ejection or
20 exclusion of, any person from riverboat gambling
21 facilities where that such person is in violation of this
22 Act or the Chicago Casino Development Authority Act, rules
23 and regulations thereunder, or final orders of the Board,
24 or where such person's conduct or reputation is such that
25 his or her presence within the riverboat gambling
26 facilities may, in the opinion of the Board, call into

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1 question the honesty and integrity of the gambling
2 operations or interfere with the orderly conduct thereof;
3 provided that the propriety of such ejection or exclusion
4 is subject to subsequent hearing by the Board.
5 (13) To require all licensees of gambling operations to
6 utilize a cashless wagering system whereby all players'
7 money is converted to tokens, electronic cards, or chips
8 which shall be used only for wagering in the gambling
9 establishment.
10 (14) (Blank).
11 (15) To suspend, revoke or restrict licenses, other
12 than the license issued to the Chicago Casino Development
13 Authority, to require the removal of a licensee or an
14 employee of a licensee for a violation of this Act, the
15 Chicago Casino Development Authority Act, or a Board rule
16 or for engaging in a fraudulent practice, and to impose
17 civil penalties of up to $5,000 against individuals and up
18 to $10,000 or an amount equal to the daily gross receipts,
19 whichever is larger, against licensees for each violation
20 of any provision of the Act, the Chicago Casino Development
21 Authority Act, any rules adopted by the Board, any order of
22 the Board or any other action which, in the Board's
23 discretion, is a detriment or impediment to riverboat
24 gambling operations.
25 (16) To hire employees to gather information, conduct
26 investigations and carry out any other tasks contemplated

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1 under this Act or the Chicago Casino Development Authority
2 Act.
3 (17) To establish minimum levels of insurance to be
4 maintained by licensees.
5 (18) To authorize a licensee to sell or serve alcoholic
6 liquors, wine or beer as defined in the Liquor Control Act
7 of 1934 on board a riverboat or in a casino and to have
8 exclusive authority to establish the hours for sale and
9 consumption of alcoholic liquor on board a riverboat or in
10 a casino, notwithstanding any provision of the Liquor
11 Control Act of 1934 or any local ordinance, and regardless
12 of whether the riverboat makes excursions. The
13 establishment of the hours for sale and consumption of
14 alcoholic liquor on board a riverboat or in a casino is an
15 exclusive power and function of the State. A home rule unit
16 may not establish the hours for sale and consumption of
17 alcoholic liquor on board a riverboat or in a casino. This
18 subdivision (18) amendatory Act of 1991 is a denial and
19 limitation of home rule powers and functions under
20 subsection (h) of Section 6 of Article VII of the Illinois
21 Constitution.
22 (19) After consultation with the U.S. Army Corps of
23 Engineers, to establish binding emergency orders upon the
24 concurrence of a majority of the members of the Board
25 regarding the navigability of water, relative to
26 excursions, in the event of extreme weather conditions,

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1 acts of God or other extreme circumstances.
2 (20) To delegate the execution of any of its powers
3 under this Act or the Chicago Casino Development Authority
4 Act for the purpose of administering and enforcing this
5 Act, the Chicago Casino Development Authority Act, and the
6 its rules adopted by the Board under both Acts and
7 regulations hereunder.
8 (20.5) To approve any contract entered into on its
9 behalf.
10 (20.6) To appoint investigators to conduct
11 investigations, searches, seizures, arrests, and other
12 duties imposed under this Act, as deemed necessary by the
13 Board. These investigators have and may exercise all of the
14 rights and powers of peace officers, provided that these
15 powers shall be limited to offenses or violations occurring
16 or committed in a casino, in an electronic gaming facility,
17 or on a riverboat or dock, as defined in subsections (d)
18 and (f) of Section 4, or as otherwise provided by this Act,
19 the Chicago Casino Development Authority Act, or any other
20 law.
21 (20.7) To contract with the Department of State Police
22 for the use of trained and qualified State police officers
23 and with the Department of Revenue for the use of trained
24 and qualified Department of Revenue investigators to
25 conduct investigations, searches, seizures, arrests, and
26 other duties imposed under this Act or the Chicago Casino

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1 Development Authority Act and to exercise all of the rights
2 and powers of peace officers, provided that the powers of
3 Department of Revenue investigators under this subdivision
4 (20.7) shall be limited to offenses or violations occurring
5 or committed in a casino, in an electronic gaming facility,
6 or on a riverboat or dock, as defined in subsections (d)
7 and (f) of Section 4, or as otherwise provided by this Act
8 or any other law. In the event the Department of State
9 Police or the Department of Revenue is unable to fill
10 contracted police or investigative positions, the Board
11 may appoint investigators to fill those positions pursuant
12 to subdivision (20.6).
13 (21) To adopt rules concerning the conduct of
14 electronic gaming.
15 (22) To have the same jurisdiction and supervision over
16 casinos and electronic gaming facilities as the Board has
17 over riverboats, including, but not limited to, the power
18 to (i) investigate, review, and approve contracts as that
19 power is applied to riverboats, (ii) adopt rules for
20 administering the provisions of this Act or the Chicago
21 Casino Development Authority Act, (iii) adopt standards
22 for the licensing of all persons involved with a casino or
23 electronic gaming facility, (iv) investigate alleged
24 violations of this Act by any person involved with a casino
25 or electronic gaming facility, and (v) require that
26 records, including financial or other statements of any

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1 casino or electronic gaming facility, shall be kept in such
2 manner as prescribed by the Board.
3 (23) To supervise and regulate the Chicago Casino
4 Development Authority in accordance with the Chicago
5 Casino Development Authority Act and the provisions of this
6 Act.
7 (24) (21) To take any other action as may be reasonable
8 or appropriate to enforce this Act, the Chicago Casino
9 Development Authority Act, and the rules adopted by the
10 Board under both Acts and regulations hereunder.
11 All Board powers enumerated in this Section in relation to
12licensees shall apply equally to the holder of any casino
13management contract entered into pursuant to the Chicago Casino
14Development Authority Act.
15 (d) The Board may seek and shall receive the cooperation of
16the Department of State Police in conducting background
17investigations of applicants and in fulfilling its
18responsibilities under this Section. Costs incurred by the
19Department of State Police as a result of such cooperation
20shall be paid by the Board in conformance with the requirements
21of Section 2605-400 of the Department of State Police Law (20
22ILCS 2605/2605-400).
23 (e) The Board must authorize to each investigator and to
24any other employee of the Board exercising the powers of a
25peace officer a distinct badge that, on its face, (i) clearly
26states that the badge is authorized by the Board and (ii)

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1contains a unique identifying number. No other badge shall be
2authorized by the Board.
3(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
496-1000, eff. 7-2-10; 96-1392, eff. 1-1-11.)
5 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)
6 Sec. 5.1. Disclosure of records.
7 (a) Notwithstanding any applicable statutory provision to
8the contrary, the Board shall, on written request from any
9person, provide information furnished by an applicant or
10licensee concerning the applicant or licensee, his products,
11services or gambling enterprises and his business holdings, as
12follows:
13 (1) The name, business address and business telephone
14 number of any applicant or licensee.
15 (2) An identification of any applicant or licensee
16 including, if an applicant or licensee is not an
17 individual, the names and addresses of all stockholders and
18 directors, if the entity is a corporation; the names and
19 addresses of all members, if the entity is a limited
20 liability company; the names and addresses of all partners,
21 both general and limited, if the entity is a partnership;
22 and the names and addresses of all beneficiaries, if the
23 entity is a trust the state of incorporation or
24 registration, the corporate officers, and the identity of
25 all shareholders or participants. If an applicant or

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1 licensee has a pending registration statement filed with
2 the Securities and Exchange Commission, only the names of
3 those persons or entities holding interest of 5% or more
4 must be provided.
5 (3) An identification of any business, including, if
6 applicable, the state of incorporation or registration, in
7 which an applicant or licensee or an applicant's or
8 licensee's spouse or children has an equity interest of
9 more than 1%. If an applicant or licensee is a corporation,
10 partnership or other business entity, the applicant or
11 licensee shall identify any other corporation, partnership
12 or business entity in which it has an equity interest of 1%
13 or more, including, if applicable, the state of
14 incorporation or registration. This information need not
15 be provided by a corporation, partnership or other business
16 entity that has a pending registration statement filed with
17 the Securities and Exchange Commission.
18 (4) Whether an applicant or licensee has been indicted,
19 convicted, pleaded guilty or nolo contendere, or forfeited
20 bail concerning any criminal offense under the laws of any
21 jurisdiction, either felony or misdemeanor (except for
22 traffic violations), including the date, the name and
23 location of the court, arresting agency and prosecuting
24 agency, the case number, the offense, the disposition and
25 the location and length of incarceration.
26 (5) Whether an applicant or licensee has had any

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1 license or certificate issued by a licensing authority in
2 Illinois or any other jurisdiction denied, restricted,
3 suspended, revoked or not renewed and a statement
4 describing the facts and circumstances concerning the
5 denial, restriction, suspension, revocation or
6 non-renewal, including the licensing authority, the date
7 each such action was taken, and the reason for each such
8 action.
9 (6) Whether an applicant or licensee has ever filed or
10 had filed against it a proceeding in bankruptcy or has ever
11 been involved in any formal process to adjust, defer,
12 suspend or otherwise work out the payment of any debt
13 including the date of filing, the name and location of the
14 court, the case and number of the disposition.
15 (7) Whether an applicant or licensee has filed, or been
16 served with a complaint or other notice filed with any
17 public body, regarding the delinquency in the payment of,
18 or a dispute over the filings concerning the payment of,
19 any tax required under federal, State or local law,
20 including the amount, type of tax, the taxing agency and
21 time periods involved.
22 (8) A statement listing the names and titles of all
23 public officials or officers of any unit of government, and
24 relatives of said public officials or officers who,
25 directly or indirectly, own any financial interest in, have
26 any beneficial interest in, are the creditors of or hold

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1 any debt instrument issued by, or hold or have any interest
2 in any contractual or service relationship with, an
3 applicant or licensee.
4 (9) Whether an applicant or licensee has made, directly
5 or indirectly, any political contribution, or any loans,
6 donations or other payments, to any candidate or office
7 holder, within 5 years from the date of filing the
8 application, including the amount and the method of
9 payment.
10 (10) The name and business telephone number of the
11 counsel representing an applicant or licensee in matters
12 before the Board.
13 (11) A description of any proposed or approved
14 riverboat or casino gaming or electronic gaming operation,
15 including the type of boat, home dock or casino or
16 electronic gaming location, expected economic benefit to
17 the community, anticipated or actual number of employees,
18 any statement from an applicant or licensee regarding
19 compliance with federal and State affirmative action
20 guidelines, projected or actual admissions and projected
21 or actual adjusted gross gaming receipts.
22 (12) A description of the product or service to be
23 supplied by an applicant for a supplier's license.
24 (b) Notwithstanding any applicable statutory provision to
25the contrary, the Board shall, on written request from any
26person, also provide the following information:

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1 (1) The amount of the wagering tax and admission tax
2 paid daily to the State of Illinois by the holder of an
3 owner's license.
4 (2) Whenever the Board finds an applicant for an
5 owner's license unsuitable for licensing, a copy of the
6 written letter outlining the reasons for the denial.
7 (3) Whenever the Board has refused to grant leave for
8 an applicant to withdraw his application, a copy of the
9 letter outlining the reasons for the refusal.
10 (c) Subject to the above provisions, the Board shall not
11disclose any information which would be barred by:
12 (1) Section 7 of the Freedom of Information Act; or
13 (2) The statutes, rules, regulations or
14 intergovernmental agreements of any jurisdiction.
15 (d) The Board may assess fees for the copying of
16information in accordance with Section 6 of the Freedom of
17Information Act.
18(Source: P.A. 96-1392, eff. 1-1-11.)
19 (230 ILCS 10/5.3 new)
20 Sec. 5.3. Ethical conduct.
21 (a) Officials and employees of the corporate authority of a
22host community must carry out their duties and responsibilities
23in such a manner as to promote and preserve public trust and
24confidence in the integrity and conduct of gaming.
25 (b) Officials and employees of the corporate authority of a

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1host community shall not use or attempt to use his or her
2official position to secure or attempt to secure any privilege,
3advantage, favor, or influence for himself or herself or
4others.
5 (c) Officials and employees of the corporate authority of a
6host community may not have a financial interest, directly or
7indirectly, in his or her own name or in the name of any other
8person, partnership, association, trust, corporation, or other
9entity in any contract or subcontract for the performance of
10any work for a riverboat or casino that is located in the host
11community. This prohibition shall extend to the holding or
12acquisition of an interest in any entity identified by Board
13action that, in the Board's judgment, could represent the
14potential for or the appearance of a financial interest. The
15holding or acquisition of an interest in such entities through
16an indirect means, such as through a mutual fund, shall not be
17prohibited, except that the Board may identify specific
18investments or funds that, in its judgment, are so influenced
19by gaming holdings as to represent the potential for or the
20appearance of a conflict of interest.
21 (d) Officials and employees of the corporate authority of a
22host community may not accept any gift, gratuity, service,
23compensation, travel, lodging, or thing of value, with the
24exception of unsolicited items of an incidental nature, from
25any person, corporation, or entity doing business with the
26riverboat or casino that is located in the host community.

09800SB1739sam001- 398 -LRB098 10559 AMC 42403 a
1 (e) Officials and employees of the corporate authority of a
2host community shall not, during the period that the person is
3an official or employee of the corporate authority or for a
4period of 2 years immediately after leaving such office,
5knowingly accept employment or receive compensation or fees for
6services from a person or entity, or its parent or affiliate,
7that has engaged in business with the riverboat or casino that
8is located in the host community that resulted in contracts
9with an aggregate value of at least $25,000 or if that official
10or employee has made a decision that directly applied to the
11person or entity, or its parent or affiliate.
12 (f) A spouse, child, or parent of an official or employee
13of the corporate authority of a host community may not have a
14financial interest, directly or indirectly, in his or her own
15name or in the name of any other person, partnership,
16association, trust, corporation, or other entity in any
17contract or subcontract for the performance of any work for a
18riverboat or casino in the host community. This prohibition
19shall extend to the holding or acquisition of an interest in
20any entity identified by Board action that, in the judgment of
21the Board, could represent the potential for or the appearance
22of a conflict of interest. The holding or acquisition of an
23interest in such entities through an indirect means, such as
24through a mutual fund, shall not be prohibited, expect that the
25Board may identify specific investments or funds that, in its
26judgment, are so influenced by gaming holdings as to represent

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1the potential for or the appearance of a conflict of interest.
2 (g) A spouse, child, or parent of an official or employee
3of the corporate authority of a host community may not accept
4any gift, gratuity, service, compensation, travel, lodging, or
5thing of value, with the exception of unsolicited items of an
6incidental nature, from any person, corporation, or entity
7doing business with the riverboat or casino that is located in
8the host community.
9 (h) A spouse, child, or parent of an official or employee
10of the corporate authority of a host community may not, during
11the period that the person is an official of the corporate
12authority or for a period of 2 years immediately after leaving
13such office or employment, knowingly accept employment or
14receive compensation or fees for services from a person or
15entity, or its parent or affiliate, that has engaged in
16business with the riverboat or casino that is located in the
17host community that resulted in contracts with an aggregate
18value of at least $25,000 or if that official or employee has
19made a decision that directly applied to the person or entity,
20or its parent or affiliate.
21 (i) Officials and employees of the corporate authority of a
22host community shall not attempt, in any way, to influence any
23person or corporation doing business with the riverboat or
24casino that is located in the host community or any officer,
25agent, or employee thereof to hire or contract with any person
26or corporation for any compensated work.

09800SB1739sam001- 400 -LRB098 10559 AMC 42403 a
1 (j) Any communication between an official of the corporate
2authority of a host community and any applicant for an owners
3license in the host community, or an officer, director, or
4employee of a riverboat or casino in the host community,
5concerning any matter relating in any way to gaming shall be
6disclosed to the Board. Such disclosure shall be in writing by
7the official within 30 days after the communication and shall
8be filed with the Board. Disclosure must consist of the date of
9the communication, the identity and job title of the person
10with whom the communication was made, a brief summary of the
11communication, the action requested or recommended, all
12responses made, the identity and job title of the person making
13the response, and any other pertinent information. Public
14disclosure of the written summary provided to the Board and the
15Gaming Board shall be subject to the exemptions provided under
16the Freedom of Information Act.
17 (k) Any official or employee who violates any provision of
18this Section is guilty of a Class 4 felony.
19 (l) For purposes of this Section, "host community" or "host
20municipality" means a unit of local government that contains a
21riverboat or casino within its borders, but does not include
22the City of Chicago or the Chicago Casino Development
23Authority.
24 (230 ILCS 10/6) (from Ch. 120, par. 2406)
25 Sec. 6. Application for Owners License.

09800SB1739sam001- 401 -LRB098 10559 AMC 42403 a
1 (a) A qualified person may apply to the Board for an owners
2license to conduct a riverboat gambling operation as provided
3in this Act. The application shall be made on forms provided by
4the Board and shall contain such information as the Board
5prescribes, including but not limited to the identity of the
6riverboat on which such gambling operation is to be conducted,
7if applicable, and the exact location where such riverboat or
8casino will be located docked, a certification that the
9riverboat will be registered under this Act at all times during
10which gambling operations are conducted on board, detailed
11information regarding the ownership and management of the
12applicant, and detailed personal information regarding the
13applicant. Any application for an owners license to be
14re-issued on or after June 1, 2003 shall also include the
15applicant's license bid in a form prescribed by the Board.
16Information provided on the application shall be used as a
17basis for a thorough background investigation which the Board
18shall conduct with respect to each applicant. An incomplete
19application shall be cause for denial of a license by the
20Board.
21 (a-5) In addition to any other information required under
22this Section, each application for an owners license must
23include the following information:
24 (1) The history and success of the applicant and each
25 person and entity disclosed under subsection (c) of this
26 Section in developing tourism facilities ancillary to

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1 gaming, if applicable.
2 (2) The likelihood that granting a license to the
3 applicant will lead to the creation of quality, living wage
4 jobs and permanent, full-time jobs for residents of the
5 State and residents of the unit of local government that is
6 designated as the home dock of the proposed facility where
7 gambling is to be conducted by the applicant.
8 (3) The projected number of jobs that would be created
9 if the license is granted and the projected number of new
10 employees at the proposed facility where gambling is to be
11 conducted by the applicant.
12 (4) The record, if any, of the applicant and its
13 developer in meeting commitments to local agencies,
14 community-based organizations, and employees at other
15 locations where the applicant or its developer has
16 performed similar functions as they would perform if the
17 applicant were granted a license.
18 (5) Identification of adverse effects that might be
19 caused by the proposed facility where gambling is to be
20 conducted by the applicant, including the costs of meeting
21 increased demand for public health care, child care, public
22 transportation, affordable housing, and social services,
23 and a plan to mitigate those adverse effects.
24 (6) The record, if any, of the applicant and its
25 developer regarding compliance with:
26 (A) federal, state, and local discrimination, wage

09800SB1739sam001- 403 -LRB098 10559 AMC 42403 a
1 and hour, disability, and occupational and
2 environmental health and safety laws; and
3 (B) state and local labor relations and employment
4 laws.
5 (7) The applicant's record, if any, in dealing with its
6 employees and their representatives at other locations.
7 (8) A plan concerning the utilization of
8 minority-owned and female-owned businesses and concerning
9 the hiring of minorities and females.
10 (9) Evidence the applicant used its best efforts to
11 reach a goal of 25% ownership representation by minority
12 persons and 5% ownership representation by females.
13 (b) Applicants shall submit with their application all
14documents, resolutions, and letters of support from the
15governing body that represents the municipality or county
16wherein the licensee will be located dock.
17 (c) Each applicant shall disclose the identity of every
18person or entity , association, trust or corporation having a
19greater than 1% direct or indirect pecuniary interest in the
20riverboat gambling operation with respect to which the license
21is sought. If the disclosed entity is a trust, the application
22shall disclose the names and addresses of all the
23beneficiaries; if a corporation, the names and addresses of all
24stockholders and directors; if a partnership, the names and
25addresses of all partners, both general and limited.
26 (d) An application shall be filed and considered in

09800SB1739sam001- 404 -LRB098 10559 AMC 42403 a
1accordance with the rules of the Board. Each application shall
2be accompanied by a non-refundable An application fee of
3$100,000. In addition, a non-refundable fee of $50,000 shall be
4paid at the time of filing to defray the costs associated with
5the background investigation conducted by the Board. If the
6costs of the investigation exceed $50,000, the applicant shall
7pay the additional amount to the Board within 7 days after
8requested by the Board. If the costs of the investigation are
9less than $50,000, the applicant shall receive a refund of the
10remaining amount. All information, records, interviews,
11reports, statements, memoranda or other data supplied to or
12used by the Board in the course of its review or investigation
13of an application for a license or a renewal under this Act
14shall be privileged, strictly confidential and shall be used
15only for the purpose of evaluating an applicant for a license
16or a renewal. Such information, records, interviews, reports,
17statements, memoranda or other data shall not be admissible as
18evidence, nor discoverable in any action of any kind in any
19court or before any tribunal, board, agency or person, except
20for any action deemed necessary by the Board. The application
21fee shall be deposited into the Gaming Facilities Fee Revenue
22Fund.
23 (e) The Board shall charge each applicant a fee set by the
24Department of State Police to defray the costs associated with
25the search and classification of fingerprints obtained by the
26Board with respect to the applicant's application. These fees

09800SB1739sam001- 405 -LRB098 10559 AMC 42403 a
1shall be paid into the State Police Services Fund.
2 (f) The licensed owner shall be the person primarily
3responsible for the boat or casino itself. Only one riverboat
4gambling operation may be authorized by the Board on any
5riverboat or in any casino. The applicant must identify the
6each riverboat or premises it intends to use and certify that
7the riverboat or premises: (1) has the authorized capacity
8required in this Act; (2) is accessible to disabled persons;
9and (3) is fully registered and licensed in accordance with any
10applicable laws.
11 (g) A person who knowingly makes a false statement on an
12application is guilty of a Class A misdemeanor.
13(Source: P.A. 96-1392, eff. 1-1-11.)
14 (230 ILCS 10/7) (from Ch. 120, par. 2407)
15 Sec. 7. Owners Licenses.
16 (a) The Board shall issue owners licenses to persons or
17entities , firms or corporations which apply for such licenses
18upon payment to the Board of the non-refundable license fee as
19provided in subsection (e) or (e-5) set by the Board, upon
20payment of a $25,000 license fee for the first year of
21operation and a $5,000 license fee for each succeeding year and
22upon a determination by the Board that the applicant is
23eligible for an owners license pursuant to this Act, the
24Chicago Casino Development Authority Act, and the rules of the
25Board. From the effective date of this amendatory Act of the

09800SB1739sam001- 406 -LRB098 10559 AMC 42403 a
195th General Assembly until (i) 3 years after the effective
2date of this amendatory Act of the 95th General Assembly, (ii)
3the date any organization licensee begins to operate a slot
4machine or video game of chance under the Illinois Horse Racing
5Act of 1975 or this Act, (iii) the date that payments begin
6under subsection (c-5) of Section 13 of the Act, or (iv) the
7wagering tax imposed under Section 13 of this Act is increased
8by law to reflect a tax rate that is at least as stringent or
9more stringent than the tax rate contained in subsection (a-3)
10of Section 13, or (v) when an owners licensee holding a license
11issued pursuant to Section 7.1 of this Act begins conducting
12gaming, whichever occurs first, as a condition of licensure and
13as an alternative source of payment for those funds payable
14under subsection (c-5) of Section 13 of this the Riverboat
15Gambling Act, any owners licensee that holds or receives its
16owners license on or after the effective date of this
17amendatory Act of the 94th General Assembly, other than an
18owners licensee operating a riverboat with adjusted gross
19receipts in calendar year 2004 of less than $200,000,000, must
20pay into the Horse Racing Equity Trust Fund, in addition to any
21other payments required under this Act, an amount equal to 3%
22of the adjusted gross receipts received by the owners licensee.
23The payments required under this Section shall be made by the
24owners licensee to the State Treasurer no later than 3:00
25o'clock p.m. of the day after the day when the adjusted gross
26receipts were received by the owners licensee. A person, firm

09800SB1739sam001- 407 -LRB098 10559 AMC 42403 a
1or corporation is ineligible to receive an owners license if:
2 (1) the person has been convicted of a felony under the
3 laws of this State, any other state, or the United States;
4 (2) the person has been convicted of any violation of
5 Article 28 of the Criminal Code of 1961 or the Criminal
6 Code of 2012, or substantially similar laws of any other
7 jurisdiction;
8 (3) the person has submitted an application for a
9 license under this Act or the Chicago Casino Development
10 Authority Act which contains false information;
11 (4) the person is a member of the Board;
12 (5) a person defined in (1), (2), (3) or (4) is an
13 officer, director or managerial employee of the firm or
14 corporation;
15 (6) the firm or corporation employs a person defined in
16 (1), (2), (3) or (4) who participates in the management or
17 operation of gambling operations authorized under this Act
18 or the Chicago Casino Development Authority Act;
19 (7) (blank); or
20 (8) a license of the person, firm or corporation issued
21 under this Act or the Chicago Casino Development Authority
22 Act, or a license to own or operate gambling facilities in
23 any other jurisdiction, has been revoked.
24 The Board is expressly prohibited from making changes to
25the requirement that licensees make payment into the Horse
26Racing Equity Trust Fund without the express authority of the

09800SB1739sam001- 408 -LRB098 10559 AMC 42403 a
1Illinois General Assembly and making any other rule to
2implement or interpret this amendatory Act of the 95th General
3Assembly. For the purposes of this paragraph, "rules" is given
4the meaning given to that term in Section 1-70 of the Illinois
5Administrative Procedure Act.
6 (a-1) Upon approval of the members of the Chicago Casino
7Development Board, the Chicago Casino Development Authority's
8executive director, and the Chicago casino operator licensee,
9the Board shall issue an owners license to the Chicago Casino
10Development Authority that authorizes the conduct of gambling
11operations in a casino or in an airport located in the City of
12Chicago.
13 (b) In determining whether to grant an owners license to an
14applicant other than the Chicago Casino Development Authority,
15the Board shall consider:
16 (1) the character, reputation, experience and
17 financial integrity of the applicants and of any other or
18 separate person that either:
19 (A) controls, directly or indirectly, such
20 applicant, or
21 (B) is controlled, directly or indirectly, by such
22 applicant or by a person which controls, directly or
23 indirectly, such applicant;
24 (2) the facilities or proposed facilities for the
25 conduct of riverboat gambling;
26 (3) the highest prospective total revenue to be derived

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1 by the State from the conduct of riverboat gambling;
2 (4) the extent to which the ownership of the applicant
3 reflects the diversity of the State by including minority
4 persons, females, and persons with a disability and the
5 good faith affirmative action plan of each applicant to
6 recruit, train and upgrade minority persons, females, and
7 persons with a disability in all employment
8 classifications;
9 (5) the financial ability of the applicant to purchase
10 and maintain adequate liability and casualty insurance;
11 (6) whether the applicant has adequate capitalization
12 to provide and maintain, for the duration of a license, a
13 riverboat or casino;
14 (7) the extent to which the applicant exceeds or meets
15 other standards for the issuance of an owners license which
16 the Board may adopt by rule; and
17 (8) the The amount of the applicant's license bid; .
18 (9) the extent to which the applicant or the proposed
19 host municipality plans to enter into revenue sharing
20 agreements with communities other than the host
21 municipality; and
22 (10) the extent to which the ownership of an applicant
23 includes the most qualified number of minority persons,
24 females, and persons with a disability.
25 (c) Each owners license shall specify the place where the
26casino riverboats shall operate or the riverboat shall operate

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1and dock.
2 (d) Each applicant shall submit with his application, on
3forms provided by the Board, 2 sets of his fingerprints.
4 (e) In addition to any licenses authorized under subsection
5(e-5) of this Section, the The Board may issue up to 10
6licenses authorizing the holders of such licenses to own
7riverboats. In the application for an owners license, the
8applicant shall state the dock at which the riverboat is based
9and the water on which the riverboat will be located. The Board
10shall issue 5 licenses to become effective not earlier than
11January 1, 1991. Three of such licenses shall authorize
12riverboat gambling on the Mississippi River, or, with approval
13by the municipality in which the riverboat was docked on August
147, 2003 and with Board approval, be authorized to relocate to a
15new location, in a municipality that (1) borders on the
16Mississippi River or is within 5 miles of the city limits of a
17municipality that borders on the Mississippi River and (2), on
18August 7, 2003, had a riverboat conducting riverboat gambling
19operations pursuant to a license issued under this Act; one of
20which shall authorize riverboat gambling from a home dock in
21the city of East St. Louis. One other license shall authorize
22riverboat gambling on the Illinois River in Tazewell County or,
23with Board approval, shall authorize the riverboat to relocate
24to a new location that is no more than 10 miles away from its
25original location, in a municipality that (1) borders on the
26Illinois River or is within 5 miles of the city limits of a

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1municipality that borders on the Illinois River and (2) on
2January 1, 2010, had a riverboat conducting riverboat gambling
3operations pursuant to a license issued under this Act south of
4Marshall County. The Board shall issue one additional license
5to become effective not earlier than March 1, 1992, which shall
6authorize riverboat gambling on the Des Plaines River in Will
7County. The Board may issue 4 additional licenses to become
8effective not earlier than March 1, 1992. In determining the
9water upon which riverboats will operate, the Board shall
10consider the economic benefit which riverboat gambling confers
11on the State, and shall seek to assure that all regions of the
12State share in the economic benefits of riverboat gambling.
13 In granting all licenses, the Board may give favorable
14consideration to economically depressed areas of the State, to
15applicants presenting plans which provide for significant
16economic development over a large geographic area, and to
17applicants who currently operate non-gambling riverboats in
18Illinois. The Board shall review all applications for owners
19licenses, and shall inform each applicant of the Board's
20decision. The Board may grant an owners license to an applicant
21that has not submitted the highest license bid, but if it does
22not select the highest bidder, the Board shall issue a written
23decision explaining why another applicant was selected and
24identifying the factors set forth in this Section that favored
25the winning bidder. The fee for issuance or renewal of a
26license pursuant to this subsection (e) shall be $100,000.

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1 (e-5) In addition to licenses authorized under subsection
2(e) of this Section:
3 (1) the Board shall issue one owners license
4 authorizing the conduct of casino gambling in the City of
5 Chicago;
6 (2) the Board may issue one owners license authorizing
7 the conduct of riverboat gambling in the City of Danville;
8 (3) the Board may issue one owners license authorizing
9 the conduct of riverboat gambling located in one of the
10 following municipalities in Lake County: Park City, North
11 Chicago, or Waukegan;
12 (4) the Board may issue one owners license authorizing
13 the conduct of riverboat gambling in the City of Rockford;
14 and
15 (5) the Board may issue one owners license authorizing
16 the conduct of riverboat gambling in a municipality that is
17 located in one of the following townships of Cook County:
18 Bloom, Bremen, Calumet, Rich, Thornton, or Worth Township.
19 Each application for a license pursuant to this subsection
20(e-5) shall be submitted to the Board no later than 6 months
21after the effective date of this amendatory Act of the 98th
22General Assembly and shall include the non-refundable
23application fee and the non-refundable background
24investigation fee as provided in subsection (d) of Section 6 of
25this Act. In the event that an applicant submits an application
26for a license pursuant to this subsection (e-5) prior to the

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1effective date of this amendatory Act of the 98th General
2Assembly, such applicant shall submit the non-refundable
3application fee and background investigation fee as provided in
4subsection (d) of Section 6 of this Act no later than 6 months
5after the effective date of this amendatory Act of the 98th
6General Assembly.
7 The Board shall consider issuing a license pursuant to
8paragraphs (2) through (5) of this subsection only after the
9corporate authority of the municipality in which the riverboat
10shall be located has certified to the Board the following:
11 (i) that the applicant has negotiated with the
12 corporate authority in good faith;
13 (ii) that the applicant and the corporate authority
14 have mutually agreed on the permanent location of the
15 riverboat;
16 (iii) that the applicant and the corporate authority
17 have mutually agreed on the temporary location of the
18 riverboat;
19 (iv) that the applicant and the corporate authority
20 have mutually agreed on the percentage of revenues that
21 will be shared with the municipality, if any; and
22 (v) that the applicant and the corporate authority have
23 mutually agreed on any zoning, licensing, public health, or
24 other issues that are within the jurisdiction of the
25 municipality.
26 At least 7 days before the corporate authority of a

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1municipality submits a certification to the Board concerning
2items (i) through (v) of this subsection, it shall hold a
3public hearing to discuss items (i) through (v), as well as any
4other details concerning the proposed riverboat in the
5municipality. The corporate authority must subsequently
6memorialize the details concerning the proposed riverboat or
7casino in a resolution that must be adopted by a majority of
8the corporate authority before any certification is sent to the
9Board. The Board shall not alter, amend, change, or otherwise
10interfere with any agreement between the applicant and the
11corporate authority of the municipality regarding the location
12of any temporary or permanent facility.
13 (e-10) The licenses authorized under subsection (e-5) of
14this Section shall be issued within 12 months after the date
15the license application is submitted. If the Board does not
16issue the licenses within that time period, then the Board
17shall give a written explanation to the applicant as to why it
18has not reached a determination. The Board shall issue the
19license within 6 months after giving the written explanation to
20the applicant. The fee for the issuance or renewal of a license
21issued pursuant to this subsection (e-10) shall be $100,000.
22Additionally, a licensee located outside of Cook County shall
23pay a minimum initial fee of $17,500 per gaming position, and a
24licensee located in Cook County shall pay a minimum initial fee
25of $30,000 per gaming position. The initial fees payable under
26this subsection (e-10) shall be deposited into the Gaming

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1Facilities Fee Revenue Fund.
2 (e-15) Each licensee of a license authorized under
3subsection (e-5) of this Section shall make a reconciliation
4payment 3 years after the date the licensee begins operating in
5an amount equal to 75% of the adjusted gross receipts for the
6most lucrative 12-month period of operations, minus an amount
7equal to the initial payment per gaming position paid by the
8specific licensee. If this calculation results in a negative
9amount, then the licensee is not entitled to any reimbursement
10of fees previously paid. This reconciliation payment may be
11made in installments over a period of no more than 2 years,
12subject to Board approval. Any installment payments shall
13include an annual market interest rate as determined by the
14Board. All payments by licensees under this subsection (e-15)
15shall be deposited into the Gaming Facilities Fee Revenue Fund.
16 (e-20) In addition to any other revocation powers granted
17to the Board under this Act, the Board may revoke the owners
18license of a licensee, other than the Chicago Casino
19Development Authority, which fails to begin conducting
20gambling within 15 months of receipt of the Board's approval of
21the application if the Board determines that license revocation
22is in the best interests of the State.
23 (f) The first 10 owners licenses issued under this Act
24shall permit the holder to own up to 2 riverboats and equipment
25thereon for a period of 3 years after the effective date of the
26license. Holders of the first 10 owners licenses must pay the

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1annual license fee for each of the 3 years during which they
2are authorized to own riverboats.
3 (g) Upon the termination, expiration, or revocation of each
4of the first 10 licenses, which shall be issued for a 3 year
5period, all licenses are renewable annually upon payment of the
6fee and a determination by the Board that the licensee
7continues to meet all of the requirements of this Act and the
8Board's rules. However, for licenses renewed on or after May 1,
91998, including casino operator licenses, renewal shall be for
10a period of 4 years, unless the Board sets a shorter period.
11Notwithstanding any provision in this subsection (g) to the
12contrary, any license that is awarded to the Chicago Casino
13Development Authority shall not expire, but it shall be subject
14to the provisions of this Act and the rules of the Board.
15 (h) An owners license, except for an owners license issued
16under subsection (e-5) of this Section, shall entitle the
17licensee to own up to 2 riverboats.
18 An owners licensee of a casino or riverboat that is located
19in the City of Chicago pursuant to paragraph (1) of subsection
20(e-5) of this Section shall limit the number of gaming
21positions to 4,000 for such owner. All other owners licensees A
22licensee shall limit the number of gaming positions gambling
23participants to 1,200 for any such owners license, except as
24further provided in subsection (h-10) of this Section. The
25initial fee for each gaming position obtained on or after the
26effective date of this amendatory Act of the 98th General

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1Assembly shall be a minimum of $17,500 for licensees not
2located in Cook County and a minimum of $30,000 for licensees
3located in Cook County, in addition to the reconciliation
4payment, as set forth in subsections (e-15) or (h-5) of this
5Section.
6 Each owners licensee shall reserve its gaming positions
7within 90 days after issuance of its owners license. The Board
8may grant an extension to this 90-day period, provided that the
9owners licensee submits a written request and explanation as to
10why it is unable to reserve its positions within the 90-day
11period.
12 A licensee may operate both of its riverboats concurrently,
13provided that the total number of gaming positions gambling
14participants on both riverboats does not exceed the limit
15established pursuant to this subsection and subsection (h-10)
16of this Section 1,200. Riverboats licensed to operate on the
17Mississippi River and the Illinois River south of Marshall
18County shall have an authorized capacity of at least 500
19persons. Any other riverboat licensed under this Act shall have
20an authorized capacity of at least 400 persons.
21 (h-5) An owners licensee who conducted gambling operations
22prior to January 1, 2012 and purchases positions pursuant to
23subsection (h-10) of this Section on or after the effective
24date of this amendatory Act of the 98th General Assembly must
25pay a minimum initial fee of $17,500 per gaming position if the
26licensee is located outside Cook County and a minimum initial

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1fee of $30,000 per gaming position if the licensee is located
2in Cook County, as stated in subsection (h) of this Section.
3These initial fees shall be deposited into the Gaming
4Facilities Fee Revenue Fund. Additionally, that owners
5licensee shall make a reconciliation payment 3 years after any
6additional gaming positions obtained pursuant to subsection
7(h-10) begin operating in an amount equal to 75% of the owners
8licensee's average gross receipts for the most lucrative
912-month period of operations minus an amount equal to the
10initial fee that the owners licensee paid per additional gaming
11position. For purposes of this subsection (h-5), "average gross
12receipts" means (i) the increase in adjusted gross receipts for
13the most lucrative 12-month period of operations over the
14adjusted gross receipts for 2013, multiplied by (ii) the
15percentage derived by dividing the number of additional gaming
16positions that an owners licensee had obtained pursuant to
17subsection (h-10) by the total number of gaming positions
18operated by the owners licensee. If this calculation results in
19a negative amount, then the owners licensee is not entitled to
20any reimbursement of fees previously paid. This reconciliation
21payment may be made in installments over a period of no more
22than 2 years, subject to Board approval. Any installment
23payments shall include an annual market interest rate as
24determined by the Board. These reconciliation payments shall be
25deposited into the Gaming Facilities Fee Revenue Fund.
26 (h-10) For owners licensees authorized under paragraphs

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1(2) through (5) of subsection (e-5) of this Section, the
2application for such new owners licenses shall ask the
3applicants to stipulate in their applications the number of
4gaming positions each applicant would like to reserve, up to
51,200 gaming positions. Once the last winning applicant for
6each of these owners licenses has been selected by the Board,
7the Board shall publish the number of gaming positions reserved
8and unreserved by each winning applicant, shall accept requests
9for additional gaming positions from any winning applicants or
10owners licensee who initially reserved 1,200 gaming positions,
11and shall allocate expeditiously the unreserved gaming
12positions to such requesting winning applicants or owners
13licensees in a manner to maximize revenue to the State. The
14Board may allocate any such unused gaming positions through a
15competitive bidding process pursuant to Section 7.5 of this
16Act.
17 In the event that not all of the unreserved gaming
18positions described in the first and second paragraphs of this
19subsection (h-10) were requested by owners licensees and
20applicants, then until there are no longer unreserved gaming
21positions, the Board periodically shall govern a process to
22allocate the unreserved gaming positions in a manner to
23maximize revenue to the State.
24 Unreserved gaming positions retained from and allocated to
25owners licensees by the Board pursuant to this subsection
26(h-10) shall not be allocated to electronic gaming licensees

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1pursuant to subsection (e) of Section 7.6 of this Act.
2 (i) A licensed owner is authorized to apply to the Board
3for and, if approved therefor, to receive all licenses from the
4Board necessary for the operation of a riverboat or a casino,
5including a liquor license, a license to prepare and serve food
6for human consumption, and other necessary licenses. All use,
7occupation and excise taxes which apply to the sale of food and
8beverages in this State and all taxes imposed on the sale or
9use of tangible personal property apply to such sales aboard
10the riverboat or in the casino.
11 (j) The Board may issue or re-issue a license authorizing a
12riverboat to dock in a municipality or approve a relocation
13under Section 11.2 only if, prior to the issuance or
14re-issuance of the license or approval, the governing body of
15the municipality in which the riverboat will dock has by a
16majority vote approved the docking of riverboats in the
17municipality. The Board may issue or re-issue a license
18authorizing a riverboat to dock in areas of a county outside
19any municipality or approve a relocation under Section 11.2
20only if, prior to the issuance or re-issuance of the license or
21approval, the governing body of the county has by a majority
22vote approved of the docking of riverboats within such areas.
23 (k) An owners licensee may conduct land-based gambling
24operations upon approval by the Board.
25 (l) An owners licensee may conduct gaming at a temporary
26facility pending the construction of a permanent facility or

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1the remodeling or relocation of an existing facility to
2accommodate gaming participants for up to 24 months after the
3temporary facility begins to conduct gaming. Upon request by an
4owners licensee and upon a showing of good cause by the owners
5licensee, the Board shall extend the period during which the
6licensee may conduct gaming at a temporary facility by up to 12
7months. The Board shall make rules concerning the conduct of
8gaming from temporary facilities.
9(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
10 (230 ILCS 10/7.3)
11 Sec. 7.3. State conduct of gambling operations.
12 (a) If, after reviewing each application for a re-issued
13license, the Board determines that the highest prospective
14total revenue to the State would be derived from State conduct
15of the gambling operation in lieu of re-issuing the license,
16the Board shall inform each applicant of its decision. The
17Board shall thereafter have the authority, without obtaining an
18owners license, to conduct casino or riverboat gambling
19operations as previously authorized by the terminated,
20expired, revoked, or nonrenewed license through a licensed
21manager selected pursuant to an open and competitive bidding
22process as set forth in Section 7.5 and as provided in Section
237.4.
24 (b) The Board may locate any casino or riverboat on which a
25gambling operation is conducted by the State in any home dock

09800SB1739sam001- 422 -LRB098 10559 AMC 42403 a
1or other location authorized by Section 3(c) upon receipt of
2approval from a majority vote of the governing body of the
3municipality or county, as the case may be, in which the
4riverboat will dock.
5 (c) The Board shall have jurisdiction over and shall
6supervise all gambling operations conducted by the State
7provided for in this Act and the Chicago Casino Development
8Authority Act and shall have all powers necessary and proper to
9fully and effectively execute the provisions of this Act and
10the Chicago Casino Development Authority Act relating to
11gambling operations conducted by the State.
12 (d) The maximum number of owners licenses authorized under
13Section 7 7(e) shall be reduced by one for each instance in
14which the Board authorizes the State to conduct a casino or
15riverboat gambling operation under subsection (a) in lieu of
16re-issuing a license to an applicant under Section 7.1.
17(Source: P.A. 93-28, eff. 6-20-03.)
18 (230 ILCS 10/7.5)
19 Sec. 7.5. Competitive Bidding. When the Board determines
20that (i) it will re-issue an owners license pursuant to an open
21and competitive bidding process, as set forth in Section 7.1,
22(ii) or that it will issue a managers license pursuant to an
23open and competitive bidding process, as set forth in Section
247.4, (iii) it will issue an owners license pursuant to an open
25and competitive bidding process, as set forth in Section 7.11,

09800SB1739sam001- 423 -LRB098 10559 AMC 42403 a
1or (iv) it will allocate unused gaming positions pursuant to an
2open and competitive bidding process, as set forth in
3subsection (h-10) of Section 7, the open and competitive
4bidding process shall adhere to the following procedures:
5 (1) The Board shall make applications for owners and
6managers licenses available to the public and allow a
7reasonable time for applicants to submit applications to the
8Board.
9 (2) During the filing period for owners or managers license
10applications, the Board may retain the services of an
11investment banking firm to assist the Board in conducting the
12open and competitive bidding process.
13 (3) After receiving all of the bid proposals, the Board
14shall open all of the proposals in a public forum and disclose
15the prospective owners or managers names, venture partners, if
16any, and, in the case of applicants for owners licenses, the
17locations of the proposed development sites.
18 (4) The Board shall summarize the terms of the proposals
19and may make this summary available to the public.
20 (5) The Board shall evaluate the proposals within a
21reasonable time and select no more than 3 final applicants to
22make presentations of their proposals to the Board.
23 (6) The final applicants shall make their presentations to
24the Board on the same day during an open session of the Board.
25 (7) As soon as practicable after the public presentations
26by the final applicants, the Board, in its discretion, may

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1conduct further negotiations among the 3 final applicants.
2During such negotiations, each final applicant may increase its
3license bid or otherwise enhance its bid proposal. At the
4conclusion of such negotiations, the Board shall select the
5winning proposal. In the case of negotiations for an owners
6license, the Board may, at the conclusion of such negotiations,
7make the determination allowed under Section 7.3(a).
8 (8) Upon selection of a winning bid, the Board shall
9evaluate the winning bid within a reasonable period of time for
10licensee suitability in accordance with all applicable
11statutory and regulatory criteria.
12 (9) If the winning bidder is unable or otherwise fails to
13consummate the transaction, (including if the Board determines
14that the winning bidder does not satisfy the suitability
15requirements), the Board may, on the same criteria, select from
16the remaining bidders or make the determination allowed under
17Section 7.3(a).
18(Source: P.A. 93-28, eff. 6-20-03.)
19 (230 ILCS 10/7.6 new)
20 Sec. 7.6. Electronic gaming.
21 (a) The General Assembly finds that the horse racing and
22riverboat gambling industries share many similarities and
23collectively comprise the bulk of the State's gaming industry.
24One feature common to both industries is that each is highly
25regulated by the State of Illinois. The General Assembly

09800SB1739sam001- 425 -LRB098 10559 AMC 42403 a
1further finds, however, that despite their shared features each
2industry is distinct from the other in that horse racing is and
3continues to be intimately tied to Illinois' agricultural
4economy and is, at its core, a spectator sport. This
5distinction requires the General Assembly to utilize different
6methods to regulate and promote the horse racing industry
7throughout the State. The General Assembly finds that in order
8to promote live horse racing as a spectator sport in Illinois
9and the agricultural economy of this State, it is necessary to
10allow electronic gaming at Illinois race tracks as an ancillary
11use given the success of other states in increasing live racing
12purse accounts and improving the quality of horses
13participating in horse race meetings.
14 (b) The Illinois Gaming Board shall award one electronic
15gaming license to each person or entity having operating
16control of a race track that applies under Section 56 of the
17Illinois Horse Racing Act of 1975, subject to the application
18and eligibility requirements of this Section. Within 60 days
19after the effective date of this amendatory Act of the 98th
20General Assembly, a person or entity having operating control
21of a race track may submit an application for an electronic
22gaming license. The application shall be made on such forms as
23provided by the Board and shall contain such information as the
24Board prescribes, including, but not limited to, the identity
25of any race track at which electronic gaming will be conducted,
26detailed information regarding the ownership and management of

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1the applicant, and detailed personal information regarding the
2applicant. The application shall specify the number of gaming
3positions the applicant intends to use and the place where the
4electronic gaming facility will operate. A person who knowingly
5makes a false statement on an application is guilty of a Class
6A misdemeanor.
7 Each applicant shall disclose the identity of every person
8or entity having a direct or indirect pecuniary interest
9greater than 1% in any race track with respect to which the
10license is sought. If the disclosed entity is a corporation,
11the applicant shall disclose the names and addresses of all
12stockholders and directors. If the disclosed entity is a
13limited liability company, the applicant shall disclose the
14names and addresses of all members and managers. If the
15disclosed entity is a partnership, the applicant shall disclose
16the names and addresses of all partners, both general and
17limited. If the disclosed entity is a trust, the applicant
18shall disclose the names and addresses of all beneficiaries.
19 An application shall be filed and considered in accordance
20with the rules of the Board. Each application for an electronic
21gaming license shall include a non-refundable application fee
22of $100,000. In addition, a non-refundable fee of $50,000 shall
23be paid at the time of filing to defray the costs associated
24with background investigations conducted by the Board. If the
25costs of the background investigation exceed $50,000, the
26applicant shall pay the additional amount to the Board within 7

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1days after a request by the Board. If the costs of the
2investigation are less than $50,000, the applicant shall
3receive a refund of the remaining amount. All information,
4records, interviews, reports, statements, memoranda, or other
5data supplied to or used by the Board in the course of this
6review or investigation of an applicant for an electronic
7gaming license under this Act shall be privileged and strictly
8confidential and shall be used only for the purpose of
9evaluating an applicant for an electronic gaming license or a
10renewal. Such information, records, interviews, reports,
11statements, memoranda, or other data shall not be admissible as
12evidence nor discoverable in any action of any kind in any
13court or before any tribunal, board, agency or person, except
14for any action deemed necessary by the Board. The application
15fee shall be deposited into the Gaming Facilities Fee Revenue
16Fund.
17 Each applicant shall submit with his or her application, on
18forms provided by the Board, 2 sets of his or her fingerprints.
19The Board shall charge each applicant a fee set by the
20Department of State Police to defray the costs associated with
21the search and classification of fingerprints obtained by the
22Board with respect to the applicant's application. This fee
23shall be paid into the State Police Services Fund.
24 (c) The Board shall determine within 120 days after
25receiving an application for an electronic gaming license,
26whether to grant an electronic gaming license to the applicant.

09800SB1739sam001- 428 -LRB098 10559 AMC 42403 a
1If the Board does not make a determination within that time
2period, then the Board shall give a written explanation to the
3applicant as to why it has not reached a determination and when
4it reasonably expects to make a determination.
5 The electronic gaming licensee shall purchase up to the
6amount of electronic gaming positions authorized under this Act
7within 120 days after receiving its electronic gaming license.
8If an electronic gaming licensee is prepared to purchase the
9electronic gaming positions, but is temporarily prohibited
10from doing so by order of a court of competent jurisdiction or
11the Board, then the 120-day period is tolled until a resolution
12is reached.
13 An electronic gaming license shall authorize its holder to
14conduct electronic gaming at its race track at the following
15times:
16 (1) On days when it conducts live racing at the track
17 where its electronic gaming facility is located, from 8:00
18 a.m. until 3:00 a.m. on the following day.
19 (2) On days when it is scheduled to conduct simulcast
20 wagering on races run in the United States, from 8:00 a.m.
21 until 3:00 a.m. on the following day.
22 Additionally, the Board may extend these days of operation
23and hours upon request by an organization licensee as the Board
24sees fit.
25 A license to conduct electronic gaming and any renewal of
26an electronic gaming license shall authorize electronic gaming

09800SB1739sam001- 429 -LRB098 10559 AMC 42403 a
1for a period of 4 years. The fee for the issuance or renewal of
2an electronic gaming license shall be $100,000.
3 (d) To be eligible to conduct electronic gaming, a person,
4firm, or corporation having operating control of a race track
5must (i) obtain an electronic gaming license, (ii) hold an
6organization license under the Illinois Horse Racing Act of
71975, (iii) hold an inter-track wagering license, (iv) pay an
8initial fee of $30,000 per gaming position from electronic
9gaming licensees where electronic gaming is conducted in Cook
10County and $17,500 for electronic gaming licensees where
11electronic gaming is located outside of Cook County before
12beginning to conduct electronic gaming plus make the
13reconciliation payment required under subsection (i), (v)
14conduct at least 240 live races at each track per year or for a
15licensee that is only authorized 350 gaming positions pursuant
16to subsection (d) of Section 7.6 of this Act, 96 live races per
17year until such time as the total number of gaming positions is
18increased to 900, (vi) meet the requirements of subsection (a)
19of Section 56 of the Illinois Horse Racing Act of 1975, (vii)
20for organization licensees conducting standardbred race
21meetings that had an open backstretch in 2009, keep backstretch
22barns and dormitories open and operational year-round unless a
23lesser schedule is mutually agreed to by the organization
24licensee and the horsemen's association racing at that
25organization licensee's race meeting, (viii) for organization
26licensees conducting thoroughbred race meetings, the

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1organization licensee must maintain accident medical expense
2liability insurance coverage of $1,000,000 for jockeys, and
3(ix) meet all other requirements of this Act that apply to
4owners licensees. Only those persons, firms, or corporations
5(or its successors or assigns) that had operating control of a
6race track and held an inter-track wagering license authorized
7by the Illinois Racing Board in 2009 are eligible.
8 An electronic gaming licensee may enter into a joint
9venture with a licensed owner to own, manage, conduct, or
10otherwise operate the electronic gaming licensee's electronic
11gaming facilities, unless the electronic gaming licensee has a
12parent company or other affiliated company that is, directly or
13indirectly, wholly owned by a parent company that is also
14licensed to conduct electronic gaming, casino gaming, or their
15equivalent in another state.
16 All payments by licensees under this subsection (c) shall
17be deposited into the Gaming Facilities Fee Revenue Fund.
18 (e) A person or entity is ineligible to receive an owners
19license if:
20 (1) the person or entity has been convicted of a felony
21 under the laws of this State, any other state, or the
22 United States, including a conviction under the Racketeer
23 Influenced and Corrupt Organizations Act;
24 (2) the person or entity has been convicted of any
25 violation of Article 28 of the Criminal Code of 2012, or
26 substantially similar laws of any other jurisdiction;

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1 (3) the person or entity has submitted an application
2 for a license under this Act that contains false
3 information;
4 (4) the person is a member of the Board;
5 (5) a person defined in (1), (2), (3), or (4) of this
6 subsection (e) is an officer, director, or managerial
7 employee of the entity;
8 (6) the person or entity employs a person defined in
9 (1), (2), (3), or (4) of this subsection (e) who
10 participates in the management or operation of gambling
11 operations authorized under this Act; or
12 (7) a license of the person or entity issued under this
13 Act or a license to own or operate gambling facilities in
14 any other jurisdiction has been revoked.
15 (f) The Board may approve electronic gaming positions
16statewide as provided in this Section. The authority to operate
17electronic gaming positions under this Section shall be
18allocated as follows: up to 1,200 gaming positions for any
19electronic gaming licensee in Cook County whose electronic
20gaming license originates with an organization licensee that
21conducted live racing in calendar year 2010; up to 900 gaming
22positions for any electronic gaming licensee outside of Cook
23County whose electronic gaming license originates with an
24organization licensee that conducted live racing in calendar
25year 2010; and up to 350 gaming positions for any electronic
26gaming licensee whose electronic gaming license originates

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1with an organization licensee that did not conduct live racing
2in calendar year 2010, which shall increase to 900 gaming
3positions in the calendar year following the year in which the
4electronic gaming licensee conducts 96 live races.
5 (g) Each applicant for an electronic gaming license shall
6specify in its application for licensure the number of gaming
7positions it will operate, up to the applicable limitation set
8forth in subsection (f) of this Section. Any unreserved gaming
9positions that are not specified shall be forfeited and
10retained by the Board. For the purposes of this subsection (g),
11an electronic gaming licensee that did not conduct live racing
12in 2010 may reserve up to 900 positions and shall not be
13penalized under this Section for not operating those positions
14until it meets the requirements of subsection (f) of this
15Section, but such licensee shall not request unreserved gaming
16positions under this subsection (g) until its 900 positions are
17all operational.
18 Thereafter, the Board shall publish the number of
19unreserved electronic gaming positions and shall accept
20requests for additional positions from any electronic gaming
21licensee that initially reserved all of the positions that were
22offered. The Board shall allocate expeditiously the unreserved
23electronic gaming positions to requesting electronic gaming
24licensees in a manner that maximizes revenue to the State. The
25Board may allocate any such unused electronic gaming positions
26pursuant to an open and competitive bidding process, as

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1provided under Section 7.5 of this Act. This process shall
2continue until all unreserved gaming positions have been
3purchased. All positions obtained pursuant to this process and
4all positions the electronic gaming licensee specified it would
5operate in its application must be in operation within 18
6months after they were obtained or the electronic gaming
7licensee forfeits the right to operate those positions, but is
8not entitled to a refund of any fees paid. The Board may, after
9holding a public hearing, grant extensions so long as the
10electronic gaming licensee is working in good faith to make the
11positions operational. The extension may be for a period of 6
12months. If, after the period of the extension, the electronic
13gaming licensee has not made the positions operational, then
14another public hearing must be held by the Board before it may
15grant another extension.
16 Unreserved gaming positions retained from and allocated to
17electronic gaming licensees by the Board pursuant to this
18subsection (g) shall not be allocated to owners licensees
19pursuant to subsection (h-10) of Section 7 of this Act.
20 For the purpose of this subsection (g), the unreserved
21gaming positions for each electronic gaming licensee shall be
22the applicable limitation set forth in subsection (f) of this
23Section, less the number of reserved gaming positions by such
24electronic gaming licensee, and the total unreserved gaming
25positions shall be the aggregate of the unreserved gaming
26positions for all electronic gaming licensees.

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1 (h) Subject to the approval of the Illinois Gaming Board,
2an electronic gaming licensee may make modification or
3additions to any existing buildings and structures to comply
4with the requirements of this Act. The Illinois Gaming Board
5shall make its decision after consulting with the Illinois
6Racing Board. In no case, however, shall the Illinois Gaming
7Board approve any modification or addition that alters the
8grounds of the organizational licensee such that the act of
9live racing is an ancillary activity to electronic gaming.
10Electronic gaming may take place in existing structures where
11inter-track wagering is conducted at the race track or a
12facility within 300 yards of the race track in accordance with
13the provisions of this Act and the Illinois Horse Racing Act of
141975.
15 (i) An electronic gaming licensee may conduct electronic
16gaming at a temporary facility pending the construction of a
17permanent facility or the remodeling or relocation of an
18existing facility to accommodate electronic gaming
19participants for up to 24 months after the temporary facility
20begins to conduct electronic gaming. Upon request by an
21electronic gaming licensee and upon a showing of good cause by
22the electronic gaming licensee, the Board shall extend the
23period during which the licensee may conduct electronic gaming
24at a temporary facility by up to 12 months. The Board shall
25make rules concerning the conduct of electronic gaming from
26temporary facilities.

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1 Electronic gaming may take place in existing structures
2where inter-track wagering is conducted at the race track or a
3facility within 300 yards of the race track in accordance with
4the provisions of this Act and the Illinois Horse Racing Act of
51975. Any electronic gaming conducted at a permanent facility
6within 300 yards of the race track in accordance with this Act
7and the Illinois Horse Racing Act of 1975 shall have an
8all-weather egress connecting the electronic gaming facility
9and the race track facility or, on days and hours of live
10racing, a complimentary shuttle service between the permanent
11electronic gaming facility and the race track facility and
12shall not charge electronic gaming participants an additional
13admission fee to the race track facility.
14 (j) The Illinois Gaming Board must adopt emergency rules in
15accordance with Section 5-45 of the Illinois Administrative
16Procedure Act as necessary to ensure compliance with the
17provisions of this amendatory Act of the 98th General Assembly
18concerning electronic gaming. The adoption of emergency rules
19authorized by this subsection (j) shall be deemed to be
20necessary for the public interest, safety, and welfare.
21 (k) Each electronic gaming licensee who obtains electronic
22gaming positions must make a reconciliation payment 3 years
23after the date the electronic gaming licensee begins operating
24the positions in an amount equal to 75% of the difference
25between its adjusted gross receipts from electronic gaming and
26amounts paid to its purse accounts pursuant to item (1) of

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1subsection (b) of Section 56 of the Illinois Horse Racing Act
2of 1975 for the 12-month period for which such difference was
3the largest, minus an amount equal to the initial per position
4fee paid by the electronic gaming licensee. If this calculation
5results in a negative amount, then the electronic gaming
6licensee is not entitled to any reimbursement of fees
7previously paid. This reconciliation payment may be made in
8installments over a period of no more than 2 years, subject to
9Board approval. Any installment payments shall include an
10annual market interest rate as determined by the Board.
11 All payments by licensees under this subsection (i) shall
12be deposited into the Gaming Facilities Fee Revenue Fund.
13 (l) As soon as practical after a request is made by the
14Illinois Gaming Board, to minimize duplicate submissions by the
15applicant, the Illinois Racing Board must provide information
16on an applicant for an electronic gaming license to the
17Illinois Gaming Board.
18 (m) Subject to the approval of the Illinois Gaming Board,
19an organization licensee that has received an electronic gaming
20license under this Act and has operating control of a race
21track facility located in Cook County may relocate its race
22track facility as follows:
23 (1) the organization licensee may relocate within a
24 3-mile radius of its existing race track facility so long
25 as the organization licensee remains in Cook County and
26 submits its plan to construct a new structure to conduct

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1 electronic gaming operations; and
2 (2) the organization licensee may not relocate within a
3 5-mile radius of a riverboat if the owners license was
4 issued prior to December 31, 2011.
5The relocation must include the race track facility, including
6the race track operations used to conduct live racing and the
7electronic gaming facility in its entirety. For the purposes of
8this subsection (m), "race track facility" means all operations
9conducted on the race track property for which it was awarded a
10license for pari-mutuel wagering and live racing in the year
112010, except for the real estate itself. The Illinois Gaming
12Board shall make its decision after consulting with the
13Illinois Racing Board, and any relocation application shall be
14subject to all of the provisions of this Act and the Illinois
15Horse Racing Act of 1975.
16 (230 ILCS 10/7.7 new)
17 Sec. 7.7. Home rule. The regulation and licensing of
18electronic gaming and electronic gaming licensees are
19exclusive powers and functions of the State. A home rule unit
20may not regulate or license electronic gaming or electronic
21gaming licensees. This Section is a denial and limitation of
22home rule powers and functions under subsection (h) of Section
236 of Article VII of the Illinois Constitution.
24 (230 ILCS 10/7.8 new)

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1 Sec. 7.8. Casino operator license.
2 (a) A qualified person may apply to the Board for a casino
3operator license to operate and manage any gambling operation
4conducted by the Authority. The application shall be made on
5forms provided by the Board and shall contain such information
6as the Board prescribes, including but not limited to
7information required in Sections 6(a), (b), and (c) and
8information relating to the applicant's proposed price to
9manage the Authority's gambling operations and to provide the
10casino, gambling equipment, and supplies necessary to conduct
11Authority gambling operations. The application shall also
12include a non-refundable application fee of $100,000. This
13application fee shall be deposited into the Gaming Facilities
14Fee Revenue Fund.
15 (b) A person, firm, or corporation is ineligible to receive
16a casino operator license if:
17 (1) the person has been convicted of a felony under the
18 laws of this State, any other state, or the United States;
19 (2) the person has been convicted of any violation of
20 Article 28 of the Criminal Code of 2012, or substantially
21 similar laws of any other jurisdiction;
22 (3) the person has submitted an application for a
23 license under this Act which contains false information;
24 (4) the person is a member of the Board or the Chicago
25 Casino Development Board or the person is an official or
26 employee of the Chicago Casino Development Authority or the

09800SB1739sam001- 439 -LRB098 10559 AMC 42403 a
1 City of Chicago;
2 (5) a person defined in (1), (2), (3), or (4) is an
3 officer, director, or managerial employee of the firm or
4 corporation;
5 (6) the firm or corporation employs a person defined in
6 (1), (2), (3), or (4) who participates in the management or
7 operation of gambling operations authorized under this
8 Act; or
9 (7) a license of the person, firm, or corporation
10 issued under this Act, or a license to own or operate
11 gambling facilities in any other jurisdiction, has been
12 revoked.
13 (c) In determining whether to grant a casino operator
14license, the Board shall consider:
15 (1) the character, reputation, experience and
16 financial integrity of the applicants and of any other or
17 separate person that either:
18 (A) controls, directly or indirectly, such
19 applicant, or
20 (B) is controlled, directly or indirectly, by such
21 applicant or by a person which controls, directly or
22 indirectly, such applicant;
23 (2) the facilities or proposed facilities for the
24 conduct of gambling;
25 (3) the preference of the municipality in which the
26 licensee will operate;

09800SB1739sam001- 440 -LRB098 10559 AMC 42403 a
1 (4) the extent to which the ownership of the applicant
2 reflects the diversity of the State by including minority
3 persons and females and the good faith affirmative action
4 plan of each applicant to recruit, train, and upgrade
5 minority persons and females in all employment
6 classifications;
7 (5) the financial ability of the applicant to purchase
8 and maintain adequate liability and casualty insurance;
9 (6) whether the applicant has adequate capitalization
10 to provide and maintain, for the duration of a license, a
11 casino; and
12 (7) the extent to which the applicant exceeds or meets
13 other standards for the issuance of a managers license that
14 the Board may adopt by rule.
15 (d) Each applicant shall submit with his or her
16application, on forms prescribed by the Board, 2 sets of his or
17her fingerprints. The Board shall charge each applicant a fee
18set by the Department of State Police to defray the costs
19associated with the search and classification of fingerprints
20obtained by the Board with respect to the applicant's
21application. This fee shall be paid into the State Police
22Services Fund.
23 (e) A person who knowingly makes a false statement on an
24application is guilty of a Class A misdemeanor.
25 (f) The Board shall charge each applicant a non-refundable
26fee of $50,000 to defray the costs associated with the

09800SB1739sam001- 441 -LRB098 10559 AMC 42403 a
1background investigation conducted by the Board. This fee shall
2be exclusive of any other fee or fees charged in connection
3with an application for and, if applicable, the issuance of, a
4casino operator license. If the costs of the investigation
5exceed $50,000, the Board shall immediately notify the
6applicant of the additional amount owed, payment of which must
7be submitted to the Board within 7 days after such
8notification. All information, records, interviews, reports,
9statements, memoranda, or other data supplied to or used by the
10Board in the course of its review or investigation of an
11application for a license or a renewal under this Act shall be
12privileged and strictly confidential, and shall be used only
13for the purpose of evaluating an applicant for a license or a
14renewal. Such information, records, interviews, reports,
15statements, memoranda, or other data shall not be admissible as
16evidence, nor discoverable in any action of any kind in any
17court or before any tribunal, board, agency, or person, except
18for any action deemed necessary by the Board.
19 (g) The casino operator license shall be issued only upon
20proof that the applicant has entered into a labor peace
21agreement with each labor organization that is actively engaged
22in representing and attempting to represent casino and
23hospitality industry workers in this State. The labor peace
24agreement must be a valid and enforceable agreement under 29
25U.S.C. 185 that protects the city's and State's revenues from
26the operation of the casino facility by prohibiting the labor

09800SB1739sam001- 442 -LRB098 10559 AMC 42403 a
1organization and its members from engaging in any picketing,
2work stoppages, boycotts, or any other economic interference
3with the casino facility for at least the first 5 years of the
4casino license and must cover all operations at the casino
5facility that are conducted by lessees or tenants or under
6management agreements.
7 (h) The casino operator license shall be for a term of 4
8years, shall be renewable by the Board, and shall contain such
9terms and provisions as the Board deems necessary to protect or
10enhance the credibility and integrity of State gambling
11operations, achieve the highest prospective total revenue to
12the State, and otherwise serve the interests of the citizens of
13Illinois. The Board may revoke the license:
14 (1) for violation of any provision of this Act;
15 (2) for violation of any rules of the Board;
16 (3) for any cause which, if known to the Board, would
17 have disqualified the applicant from receiving the
18 license; or
19 (4) for any other just cause.
20 (230 ILCS 10/7.9 new)
21 Sec. 7.9. Diversity program.
22 (a) Each owners licensee, electronic gaming licensee,
23casino operator licensee, and suppliers licensee shall
24establish and maintain a diversity program to ensure
25non-discrimination in the award and administration of

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1contracts. The programs shall establish goals of awarding not
2less than 20% of the annual dollar value of all contracts,
3purchase orders, or other agreements to minority owned
4businesses and 5% of the annual dollar value of all contracts
5to female owned businesses.
6 (b) Each owners licensee, electronic gaming licensee,
7casino operator licensee, and suppliers licensee shall
8establish and maintain a diversity program designed to promote
9equal opportunity for employment. The program shall establish
10hiring goals as the Board and each licensee determines
11appropriate. The Board shall monitor the progress of the gaming
12licensee's progress with respect to the program's goals.
13 (c) No later than May 31 of each year each licensee shall
14report to the Board the number of respective employees and the
15number of their respective employees who have designated
16themselves as members of a minority group and gender. In
17addition, all licensees shall submit a report with respect to
18the minority owned and female owned businesses program created
19in this Section to the Board.
20 (230 ILCS 10/7.10 new)
21 Sec. 7.10. Annual report on diversity.
22 (a) Each licensee that receives a license under Sections 7,
237.1, and 7.6 shall execute and file a report with the Board no
24later than December 31 of each year that shall contain, but not
25be limited to, the following information:

09800SB1739sam001- 444 -LRB098 10559 AMC 42403 a
1 (i) a good faith affirmative action plan to recruit,
2 train, and upgrade minority persons, females, and persons
3 with a disability in all employment classifications;
4 (ii) the total dollar amount of contracts that were
5 awarded to businesses owned by minority persons, females,
6 and persons with a disability;
7 (iii) the total number of businesses owned by minority
8 persons, females, and persons with a disability that were
9 utilized by the licensee;
10 (iv) the utilization of businesses owned by minority
11 persons, females, and persons with disabilities during the
12 preceding year; and
13 (v) the outreach efforts used by the licensee to
14 attract investors and businesses consisting of minority
15 persons, females, and persons with a disability.
16 (b) The Board shall forward a copy of each licensee's
17annual reports to the General Assembly no later than February 1
18of each year.
19 (230 ILCS 10/7.11 new)
20 Sec. 7.11. Issuance of new owners licenses.
21 (a) Except for the owners license issued to the Chicago
22Casino Development Authority, owners licenses newly authorized
23pursuant to this amendatory Act of the 98th General Assembly
24may be issued by the Board to a qualified applicant pursuant to
25an open and competitive bidding process, as set forth in

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1Section 7.5, and subject to the maximum number of authorized
2licenses set forth in subsection (e-5) of Section 7 of this
3Act.
4 (b) To be a qualified applicant, a person, firm, or
5corporation may not be ineligible to receive an owners license
6under subsection (a) of Section 7 of this Act and must submit
7an application for an owners license that complies with Section
86 of this Act.
9 (c) In determining whether to grant an owners license to an
10applicant, the Board shall consider all of the factors set
11forth in subsections (b) and (e-10) of Section 7 of this Act,
12as well as the amount of the applicant's license bid. The Board
13may grant the owners license to an applicant that has not
14submitted the highest license bid, but if it does not select
15the highest bidder, the Board shall issue a written decision
16explaining why another applicant was selected and identifying
17the factors set forth in subsections (b) and (e-10) of Section
187 of this Act that favored the winning bidder.
19 (230 ILCS 10/7.12 new)
20 Sec. 7.12. Environmental standards. All permanent
21casinos, riverboats, and electronic gaming facilities shall
22consist of buildings that are certified as meeting the U.S.
23Green Building Council's Leadership in Energy and
24Environmental Design standards. The provisions of this Section
25apply to a holder of an owners license, casino operator

09800SB1739sam001- 446 -LRB098 10559 AMC 42403 a
1license, or electronic gaming license that (i) begins
2operations on or after January 1, 2013 or (ii) relocates its
3facilities on or after the effective date of this amendatory
4Act of the 98th General Assembly.
5 (230 ILCS 10/8) (from Ch. 120, par. 2408)
6 Sec. 8. Suppliers licenses.
7 (a) The Board may issue a suppliers license to such
8persons, firms or corporations which apply therefor upon the
9payment of a non-refundable application fee set by the Board,
10upon a determination by the Board that the applicant is
11eligible for a suppliers license and upon payment of a $5,000
12annual license fee.
13 (b) The holder of a suppliers license is authorized to sell
14or lease, and to contract to sell or lease, gambling equipment
15and supplies to any licensee involved in the ownership or
16management of gambling operations.
17 (c) Gambling supplies and equipment may not be distributed
18unless supplies and equipment conform to standards adopted by
19rules of the Board.
20 (d) A person, firm or corporation is ineligible to receive
21a suppliers license if:
22 (1) the person has been convicted of a felony under the
23 laws of this State, any other state, or the United States;
24 (2) the person has been convicted of any violation of
25 Article 28 of the Criminal Code of 1961 or the Criminal

09800SB1739sam001- 447 -LRB098 10559 AMC 42403 a
1 Code of 2012, or substantially similar laws of any other
2 jurisdiction;
3 (3) the person has submitted an application for a
4 license under this Act which contains false information;
5 (4) the person is a member of the Board;
6 (5) the firm or corporation is one in which a person
7 defined in (1), (2), (3) or (4), is an officer, director or
8 managerial employee;
9 (6) the firm or corporation employs a person who
10 participates in the management or operation of riverboat
11 gambling authorized under this Act or the Chicago Casino
12 Development Authority Act;
13 (7) the license of the person, firm or corporation
14 issued under this Act or the Chicago Casino Development
15 Authority Act, or a license to own or operate gambling
16 facilities in any other jurisdiction, has been revoked.
17 (e) Any person that supplies any equipment, devices, or
18supplies to a licensed riverboat gambling operation or casino
19or electronic gaming operation must first obtain a suppliers
20license. A supplier shall furnish to the Board a list of all
21equipment, devices and supplies offered for sale or lease in
22connection with gambling games authorized under this Act. A
23supplier shall keep books and records for the furnishing of
24equipment, devices and supplies to gambling operations
25separate and distinct from any other business that the supplier
26might operate. A supplier shall file a quarterly return with

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1the Board listing all sales and leases. A supplier shall
2permanently affix its name to all its equipment, devices, and
3supplies for gambling operations. Any supplier's equipment,
4devices or supplies which are used by any person in an
5unauthorized gambling operation shall be forfeited to the
6State. A holder of an owners license or an electronic gaming
7license A licensed owner may own its own equipment, devices and
8supplies. Each holder of an owners license or an electronic
9gaming license under the Act shall file an annual report
10listing its inventories of gambling equipment, devices and
11supplies.
12 (f) Any person who knowingly makes a false statement on an
13application is guilty of a Class A misdemeanor.
14 (g) Any gambling equipment, devices and supplies provided
15by any licensed supplier may either be repaired on the
16riverboat, in the casino, or at the electronic gaming facility
17or removed from the riverboat, casino, or electronic gaming
18facility to a an on-shore facility owned by the holder of an
19owners license or electronic gaming license for repair.
20(Source: P.A. 97-1150, eff. 1-25-13.)
21 (230 ILCS 10/9) (from Ch. 120, par. 2409)
22 Sec. 9. Occupational licenses.
23 (a) The Board may issue an occupational license to an
24applicant upon the payment of a non-refundable fee set by the
25Board, upon a determination by the Board that the applicant is

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1eligible for an occupational license and upon payment of an
2annual license fee in an amount to be established. To be
3eligible for an occupational license, an applicant must:
4 (1) be at least 21 years of age if the applicant will
5 perform any function involved in gaming by patrons. Any
6 applicant seeking an occupational license for a non-gaming
7 function shall be at least 18 years of age;
8 (2) not have been convicted of a felony offense, a
9 violation of Article 28 of the Criminal Code of 1961 or the
10 Criminal Code of 2012, or a similar statute of any other
11 jurisdiction;
12 (2.5) not have been convicted of a crime, other than a
13 crime described in item (2) of this subsection (a),
14 involving dishonesty or moral turpitude, except that the
15 Board may, in its discretion, issue an occupational license
16 to a person who has been convicted of a crime described in
17 this item (2.5) more than 10 years prior to his or her
18 application and has not subsequently been convicted of any
19 other crime;
20 (3) have demonstrated a level of skill or knowledge
21 which the Board determines to be necessary in order to
22 operate gambling aboard a riverboat, in a casino, or at an
23 electronic gaming facility; and
24 (4) have met standards for the holding of an
25 occupational license as adopted by rules of the Board. Such
26 rules shall provide that any person or entity seeking an

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1 occupational license to manage gambling operations under
2 this Act or the Chicago Casino Development Authority Act
3 hereunder shall be subject to background inquiries and
4 further requirements similar to those required of
5 applicants for an owners license. Furthermore, such rules
6 shall provide that each such entity shall be permitted to
7 manage gambling operations for only one licensed owner.
8 (b) Each application for an occupational license shall be
9on forms prescribed by the Board and shall contain all
10information required by the Board. The applicant shall set
11forth in the application: whether he has been issued prior
12gambling related licenses; whether he has been licensed in any
13other state under any other name, and, if so, such name and his
14age; and whether or not a permit or license issued to him in
15any other state has been suspended, restricted or revoked, and,
16if so, for what period of time.
17 (c) Each applicant shall submit with his application, on
18forms provided by the Board, 2 sets of his fingerprints. The
19Board shall charge each applicant a fee set by the Department
20of State Police to defray the costs associated with the search
21and classification of fingerprints obtained by the Board with
22respect to the applicant's application. These fees shall be
23paid into the State Police Services Fund.
24 (d) The Board may in its discretion refuse an occupational
25license to any person: (1) who is unqualified to perform the
26duties required of such applicant; (2) who fails to disclose or

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1states falsely any information called for in the application;
2(3) who has been found guilty of a violation of this Act or the
3Chicago Casino Development Authority Act or whose prior
4gambling related license or application therefor has been
5suspended, restricted, revoked or denied for just cause in any
6other state; or (4) for any other just cause.
7 (e) The Board may suspend, revoke or restrict any
8occupational licensee: (1) for violation of any provision of
9this Act; (2) for violation of any of the rules and regulations
10of the Board; (3) for any cause which, if known to the Board,
11would have disqualified the applicant from receiving such
12license; or (4) for default in the payment of any obligation or
13debt due to the State of Illinois; or (5) for any other just
14cause.
15 (f) A person who knowingly makes a false statement on an
16application is guilty of a Class A misdemeanor.
17 (g) Any license issued pursuant to this Section shall be
18valid for a period of one year from the date of issuance.
19 (h) Nothing in this Act shall be interpreted to prohibit a
20licensed owner or electronic gaming licensee from entering into
21an agreement with a public community college or a school
22approved under the Private Business and Vocational Schools Act
23of 2012 for the training of any occupational licensee. Any
24training offered by such a school shall be in accordance with a
25written agreement between the licensed owner or electronic
26gaming licensee and the school.

09800SB1739sam001- 452 -LRB098 10559 AMC 42403 a
1 (i) Any training provided for occupational licensees may be
2conducted either at the site of the gambling facility on the
3riverboat or at a school with which a licensed owner or
4electronic gaming licensee has entered into an agreement
5pursuant to subsection (h).
6(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;
797-1150, eff. 1-25-13.)
8 (230 ILCS 10/11) (from Ch. 120, par. 2411)
9 Sec. 11. Conduct of gambling. Gambling may be conducted by
10licensed owners or licensed managers on behalf of the State
11aboard riverboats. Gambling may be conducted by electronic
12gaming licensees at electronic gaming facilities. Gambling
13authorized under this Section is , subject to the following
14standards:
15 (1) A licensee may conduct riverboat gambling
16 authorized under this Act regardless of whether it conducts
17 excursion cruises. A licensee may permit the continuous
18 ingress and egress of patrons passengers on a riverboat not
19 used for excursion cruises for the purpose of gambling.
20 Excursion cruises shall not exceed 4 hours for a round
21 trip. However, the Board may grant express approval for an
22 extended cruise on a case-by-case basis.
23 (2) (Blank).
24 (3) Minimum and maximum wagers on games shall be set by
25 the licensee.

09800SB1739sam001- 453 -LRB098 10559 AMC 42403 a
1 (4) Agents of the Board and the Department of State
2 Police may board and inspect any riverboat, enter and
3 inspect any portion of a casino, or enter and inspect any
4 portion of an electronic gaming facility at any time for
5 the purpose of determining whether this Act or the Chicago
6 Casino Development Authority Act is being complied with.
7 Every riverboat, if under way and being hailed by a law
8 enforcement officer or agent of the Board, must stop
9 immediately and lay to.
10 (5) Employees of the Board shall have the right to be
11 present on the riverboat or in the casino or on adjacent
12 facilities under the control of the licensee and at the
13 electronic gaming facility under the control of the
14 electronic gaming licensee.
15 (6) Gambling equipment and supplies customarily used
16 in conducting riverboat or casino gambling or electronic
17 gaming must be purchased or leased only from suppliers
18 licensed for such purpose under this Act. The Board may
19 approve the transfer, sale, or lease of gambling equipment
20 and supplies by a licensed owner from or to an affiliate of
21 the licensed owner as long as the gambling equipment and
22 supplies were initially acquired from a supplier licensed
23 in Illinois.
24 (7) Persons licensed under this Act or the Chicago
25 Casino Development Authority Act shall permit no form of
26 wagering on gambling games except as permitted by this Act.

09800SB1739sam001- 454 -LRB098 10559 AMC 42403 a
1 (8) Wagers may be received only from a person present
2 on a licensed riverboat, in a casino, or at an electronic
3 gaming facility. No person present on a licensed riverboat,
4 in a casino, or at an electronic gaming facility shall
5 place or attempt to place a wager on behalf of another
6 person who is not present on the riverboat, in a casino, or
7 at the electronic gaming facility.
8 (9) Wagering, including electronic gaming, shall not
9 be conducted with money or other negotiable currency.
10 (10) A person under age 21 shall not be permitted on an
11 area of a riverboat or casino where gambling is being
12 conducted or at an electronic gaming facility where
13 gambling is being conducted, except for a person at least
14 18 years of age who is an employee of the riverboat or
15 casino gambling operation or electronic gaming operation.
16 No employee under age 21 shall perform any function
17 involved in gambling by the patrons. No person under age 21
18 shall be permitted to make a wager under this Act or the
19 Chicago Casino Development Authority Act, and any winnings
20 that are a result of a wager by a person under age 21,
21 whether or not paid by a licensee, shall be treated as
22 winnings for the privilege tax purposes, confiscated, and
23 forfeited to the State and deposited into the Education
24 Assistance Fund.
25 (11) Gambling excursion cruises are permitted only
26 when the waterway for which the riverboat is licensed is

09800SB1739sam001- 455 -LRB098 10559 AMC 42403 a
1 navigable, as determined by the Board in consultation with
2 the U.S. Army Corps of Engineers. This paragraph (11) does
3 not limit the ability of a licensee to conduct gambling
4 authorized under this Act when gambling excursion cruises
5 are not permitted.
6 (12) All tokens, chips or electronic cards used to make
7 wagers must be purchased (i) from a licensed owner or
8 manager, in the case of a riverboat, either aboard a
9 riverboat or at an onshore facility which has been approved
10 by the Board and which is located where the riverboat
11 docks, (ii) in the case of a casino, from a licensed owner
12 or licensed casino operator at the casino, or (iii) from an
13 electronic gaming licensee at the electronic gaming
14 facility. The tokens, chips or electronic cards may be
15 purchased by means of an agreement under which the owner,
16 or manager, or licensed casino operator extends credit to
17 the patron. Such tokens, chips or electronic cards may be
18 used while aboard the riverboat, in the casino, or at the
19 electronic gaming facility only for the purpose of making
20 wagers on gambling games.
21 (13) Notwithstanding any other Section of this Act or
22 the Chicago Casino Development Authority Act, in addition
23 to the other licenses authorized under this Act or the
24 Chicago Casino Development Authority Act, the Board may
25 issue special event licenses allowing persons who are not
26 otherwise licensed to conduct riverboat gambling to

09800SB1739sam001- 456 -LRB098 10559 AMC 42403 a
1 conduct such gambling on a specified date or series of
2 dates. Riverboat gambling under such a license may take
3 place on a riverboat not normally used for riverboat
4 gambling. The Board shall establish standards, fees and
5 fines for, and limitations upon, such licenses, which may
6 differ from the standards, fees, fines and limitations
7 otherwise applicable under this Act or the Chicago Casino
8 Development Authority Act. All such fees shall be deposited
9 into the State Gaming Fund. All such fines shall be
10 deposited into the Education Assistance Fund, created by
11 Public Act 86-0018, of the State of Illinois.
12 (14) In addition to the above, gambling must be
13 conducted in accordance with all rules adopted by the
14 Board.
15(Source: P.A. 96-1392, eff. 1-1-11.)
16 (230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)
17 Sec. 11.1. Collection of amounts owing under credit
18agreements. Notwithstanding any applicable statutory provision
19to the contrary, a licensed owner, licensed or manager,
20licensed casino operator, or electronic gaming licensee who
21extends credit to a riverboat gambling patron or an electronic
22gaming patron pursuant to Section 11 (a) (12) of this Act is
23expressly authorized to institute a cause of action to collect
24any amounts due and owing under the extension of credit, as
25well as the licensed owner's, licensed or manager's, licensed

09800SB1739sam001- 457 -LRB098 10559 AMC 42403 a
1casino operator's, or electronic gaming licensee's costs,
2expenses and reasonable attorney's fees incurred in
3collection.
4(Source: P.A. 93-28, eff. 6-20-03.)
5 (230 ILCS 10/12) (from Ch. 120, par. 2412)
6 Sec. 12. Admission tax; fees.
7 (a) A tax is hereby imposed upon admissions to riverboat
8and casino gambling facilities riverboats operated by licensed
9owners authorized pursuant to this Act and the Chicago Casino
10Development Authority Act. Until July 1, 2002, the rate is $2
11per person admitted. From July 1, 2002 until July 1, 2003, the
12rate is $3 per person admitted. From July 1, 2003 until August
1323, 2005 (the effective date of Public Act 94-673), for a
14licensee that admitted 1,000,000 persons or fewer in the
15previous calendar year, the rate is $3 per person admitted; for
16a licensee that admitted more than 1,000,000 but no more than
172,300,000 persons in the previous calendar year, the rate is $4
18per person admitted; and for a licensee that admitted more than
192,300,000 persons in the previous calendar year, the rate is $5
20per person admitted. Beginning on August 23, 2005 (the
21effective date of Public Act 94-673), for a licensee that
22admitted 1,000,000 persons or fewer in calendar year 2004, the
23rate is $2 per person admitted, and for all other licensees,
24including licensees that were not conducting gambling
25operations in 2004, the rate is $3 per person admitted. This

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1admission tax is imposed upon the licensed owner conducting
2gambling.
3 (1) The admission tax shall be paid for each admission,
4 except that a person who exits a riverboat gambling
5 facility and reenters that riverboat gambling facility
6 within the same gaming day shall be subject only to the
7 initial admission tax.
8 (2) (Blank).
9 (3) The riverboat licensee may issue tax-free passes to
10 actual and necessary officials and employees of the
11 licensee or other persons actually working on the
12 riverboat.
13 (4) The number and issuance of tax-free passes is
14 subject to the rules of the Board, and a list of all
15 persons to whom the tax-free passes are issued shall be
16 filed with the Board.
17 (a-5) A fee is hereby imposed upon admissions operated by
18licensed managers on behalf of the State pursuant to Section
197.3 at the rates provided in this subsection (a-5). For a
20licensee that admitted 1,000,000 persons or fewer in the
21previous calendar year, the rate is $3 per person admitted; for
22a licensee that admitted more than 1,000,000 but no more than
232,300,000 persons in the previous calendar year, the rate is $4
24per person admitted; and for a licensee that admitted more than
252,300,000 persons in the previous calendar year, the rate is $5
26per person admitted.

09800SB1739sam001- 459 -LRB098 10559 AMC 42403 a
1 (1) The admission fee shall be paid for each admission.
2 (2) (Blank).
3 (3) The licensed manager may issue fee-free passes to
4 actual and necessary officials and employees of the manager
5 or other persons actually working on the riverboat.
6 (4) The number and issuance of fee-free passes is
7 subject to the rules of the Board, and a list of all
8 persons to whom the fee-free passes are issued shall be
9 filed with the Board.
10 (b) Except as provided in subsection (b-5), from From the
11tax imposed under subsection (a) and the fee imposed under
12subsection (a-5), a municipality shall receive from the State
13$1 for each person embarking on a riverboat docked within the
14municipality or entering a casino located within the
15municipality, and a county shall receive $1 for each person
16entering a casino or embarking on a riverboat docked within the
17county but outside the boundaries of any municipality. The
18municipality's or county's share shall be collected by the
19Board on behalf of the State and remitted quarterly by the
20State, subject to appropriation, to the treasurer of the unit
21of local government for deposit in the general fund.
22 (b-5) From the tax imposed under subsection (a) and the fee
23imposed under subsection (a-5), $1 for each person embarking on
24a riverboat designated in paragraph (4) of subsection (e-5) of
25Section 7 shall be divided and remitted from the State
26according to a revenue-sharing agreement between the City of

09800SB1739sam001- 460 -LRB098 10559 AMC 42403 a
1Rockford and Winnebago County, the terms of which shall be
2determined by the City of Rockford and Winnebago County. The
3City of Rockford and Winnebago County shall transmit a copy of
4the executed revenue-sharing agreement to the Board no later
5than 90 days after the effective date of this amendatory Act of
6the 98th General Assembly.
7 The municipality's or county's share shall be collected by
8the Board on behalf of the State and remitted quarterly by the
9State, subject to appropriation, to the treasurer of the unit
10of local government for deposit in the general fund.
11 (c) The licensed owner shall pay the entire admission tax
12to the Board and the licensed manager or the casino operator
13licensee shall pay the entire admission fee to the Board. Such
14payments shall be made daily. Accompanying each payment shall
15be a return on forms provided by the Board which shall include
16other information regarding admissions as the Board may
17require. Failure to submit either the payment or the return
18within the specified time may result in suspension or
19revocation of the owners or managers license.
20 (c-5) A tax is imposed on admissions to electronic gaming
21facilities at the rate of $3 per person admitted by an
22electronic gaming licensee. The tax is imposed upon the
23electronic gaming licensee.
24 (1) The admission tax shall be paid for each admission,
25 except that a person who exits an electronic gaming
26 facility and reenters that electronic gaming facility

09800SB1739sam001- 461 -LRB098 10559 AMC 42403 a
1 within the same gaming day, as the term "gaming day" is
2 defined by the Board by rule, shall be subject only to the
3 initial admission tax. The Board shall establish, by rule,
4 a procedure to determine whether a person admitted to an
5 electronic gaming facility has paid the admission tax.
6 (2) An electronic gaming licensee may issue tax-free
7 passes to actual and necessary officials and employees of
8 the licensee and other persons associated with electronic
9 gaming operations.
10 (3) The number and issuance of tax-free passes is
11 subject to the rules of the Board, and a list of all
12 persons to whom the tax-free passes are issued shall be
13 filed with the Board.
14 (4) The electronic gaming licensee shall pay the entire
15 admission tax to the Board.
16 Such payments shall be made daily. Accompanying each
17payment shall be a return on forms provided by the Board, which
18shall include other information regarding admission as the
19Board may require. Failure to submit either the payment or the
20return within the specified time may result in suspension or
21revocation of the electronic gaming license.
22 From the tax imposed under this subsection (c-5), a
23municipality other than the Village of Stickney or the City of
24Collinsville in which an electronic gaming facility is located,
25or if the electronic gaming facility is not located within a
26municipality, then the county in which the electronic gaming

09800SB1739sam001- 462 -LRB098 10559 AMC 42403 a
1facility is located, except as otherwise provided in this
2Section, shall receive, subject to appropriation, $1 for each
3person who enters the electronic gaming facility. For each
4admission to the electronic gaming facility in excess of
51,500,000 in a year, from the tax imposed under this subsection
6(c-5), the county in which the electronic gaming facility is
7located shall receive, subject to appropriation, $0.30, which
8shall be in addition to any other moneys paid to the county
9under this Section.
10 From the tax imposed under this subsection (c-5) on an
11electronic gaming facility located in the Village of Stickney,
12$1 for each person who enters the electronic gaming facility
13shall be distributed as follows, subject to appropriation:
14$0.25 to the Village of Stickney, $.50 to the Town of Cicero,
15$0.05 to the City of Berwyn, and $0.20 to the Stickney Public
16Health District.
17 From the tax imposed under this subsection (c-5) on an
18electronic gaming facility located in the City of Collinsville,
19$1 for each person who enters the electronic gaming facility
20shall be distributed as follows, subject to appropriation:
21$0.45 to the City of Alton, $0.45 to the City of East St.
22Louis, and $0.10 to the City of Collinsville.
23 From the tax imposed under this subsection (c-5) on an
24electronic gaming facility that is located in an unincorporated
25area of Cook County and has been awarded standardbred racing
26dates during 2011 by the Illinois Racing Board, $1 for each

09800SB1739sam001- 463 -LRB098 10559 AMC 42403 a
1person who enters the electronic gaming facility shall be
2divided equally and distributed, subject to appropriation, to
3the Village of Melrose Park, the Village of Maywood, and Cook
4County.
5 After payments required under this subsection (c-5) have
6been made, all remaining amounts shall be deposited into the
7Education Assistance Fund.
8 (d) The Board shall administer and collect the admission
9tax imposed by this Section, to the extent practicable, in a
10manner consistent with the provisions of Sections 4, 5, 5a, 5b,
115c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
12Retailers' Occupation Tax Act and Section 3-7 of the Uniform
13Penalty and Interest Act.
14(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
15 (230 ILCS 10/13) (from Ch. 120, par. 2413)
16 Sec. 13. Wagering tax; rate; distribution.
17 (a) Until January 1, 1998, a tax is imposed on the adjusted
18gross receipts received from gambling games authorized under
19this Act at the rate of 20%.
20 (a-1) From January 1, 1998 until July 1, 2002, a privilege
21tax is imposed on persons engaged in the business of conducting
22riverboat gambling operations, based on the adjusted gross
23receipts received by a licensed owner from gambling games
24authorized under this Act at the following rates:
25 15% of annual adjusted gross receipts up to and

09800SB1739sam001- 464 -LRB098 10559 AMC 42403 a
1 including $25,000,000;
2 20% of annual adjusted gross receipts in excess of
3 $25,000,000 but not exceeding $50,000,000;
4 25% of annual adjusted gross receipts in excess of
5 $50,000,000 but not exceeding $75,000,000;
6 30% of annual adjusted gross receipts in excess of
7 $75,000,000 but not exceeding $100,000,000;
8 35% of annual adjusted gross receipts in excess of
9 $100,000,000.
10 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
11is imposed on persons engaged in the business of conducting
12riverboat gambling operations, other than licensed managers
13conducting riverboat gambling operations on behalf of the
14State, based on the adjusted gross receipts received by a
15licensed owner from gambling games authorized under this Act at
16the following rates:
17 15% of annual adjusted gross receipts up to and
18 including $25,000,000;
19 22.5% of annual adjusted gross receipts in excess of
20 $25,000,000 but not exceeding $50,000,000;
21 27.5% of annual adjusted gross receipts in excess of
22 $50,000,000 but not exceeding $75,000,000;
23 32.5% of annual adjusted gross receipts in excess of
24 $75,000,000 but not exceeding $100,000,000;
25 37.5% of annual adjusted gross receipts in excess of
26 $100,000,000 but not exceeding $150,000,000;

09800SB1739sam001- 465 -LRB098 10559 AMC 42403 a
1 45% of annual adjusted gross receipts in excess of
2 $150,000,000 but not exceeding $200,000,000;
3 50% of annual adjusted gross receipts in excess of
4 $200,000,000.
5 (a-3) Beginning July 1, 2003, a privilege tax is imposed on
6persons engaged in the business of conducting riverboat
7gambling operations, other than licensed managers conducting
8riverboat gambling operations on behalf of the State, based on
9the adjusted gross receipts received by a licensed owner from
10gambling games authorized under this Act at the following
11rates:
12 15% of annual adjusted gross receipts up to and
13 including $25,000,000;
14 27.5% of annual adjusted gross receipts in excess of
15 $25,000,000 but not exceeding $37,500,000;
16 32.5% of annual adjusted gross receipts in excess of
17 $37,500,000 but not exceeding $50,000,000;
18 37.5% of annual adjusted gross receipts in excess of
19 $50,000,000 but not exceeding $75,000,000;
20 45% of annual adjusted gross receipts in excess of
21 $75,000,000 but not exceeding $100,000,000;
22 50% of annual adjusted gross receipts in excess of
23 $100,000,000 but not exceeding $250,000,000;
24 70% of annual adjusted gross receipts in excess of
25 $250,000,000.
26 An amount equal to the amount of wagering taxes collected

09800SB1739sam001- 466 -LRB098 10559 AMC 42403 a
1under this subsection (a-3) that are in addition to the amount
2of wagering taxes that would have been collected if the
3wagering tax rates under subsection (a-2) were in effect shall
4be paid into the Common School Fund.
5 The privilege tax imposed under this subsection (a-3) shall
6no longer be imposed beginning on the earlier of (i) July 1,
72005; (ii) the first date after June 20, 2003 that riverboat
8gambling operations are conducted pursuant to a dormant
9license; or (iii) the first day that riverboat gambling
10operations are conducted under the authority of an owners
11license that is in addition to the 10 owners licenses initially
12authorized under this Act. For the purposes of this subsection
13(a-3), the term "dormant license" means an owners license that
14is authorized by this Act under which no riverboat gambling
15operations are being conducted on June 20, 2003.
16 (a-4) Beginning on the first day on which the tax imposed
17under subsection (a-3) is no longer imposed and ending upon the
18imposition of the privilege tax under subsection (a-5) of this
19Section, a privilege tax is imposed on persons engaged in the
20business of conducting riverboat or casino gambling or
21electronic gaming operations, other than licensed managers
22conducting riverboat gambling operations on behalf of the
23State, based on the adjusted gross receipts received by a
24licensed owner from gambling games authorized under this Act at
25the following rates:
26 15% of annual adjusted gross receipts up to and

09800SB1739sam001- 467 -LRB098 10559 AMC 42403 a
1 including $25,000,000;
2 22.5% of annual adjusted gross receipts in excess of
3 $25,000,000 but not exceeding $50,000,000;
4 27.5% of annual adjusted gross receipts in excess of
5 $50,000,000 but not exceeding $75,000,000;
6 32.5% of annual adjusted gross receipts in excess of
7 $75,000,000 but not exceeding $100,000,000;
8 37.5% of annual adjusted gross receipts in excess of
9 $100,000,000 but not exceeding $150,000,000;
10 45% of annual adjusted gross receipts in excess of
11 $150,000,000 but not exceeding $200,000,000;
12 50% of annual adjusted gross receipts in excess of
13 $200,000,000.
14 For the imposition of the privilege tax in this subsection
15(a-4), amounts paid pursuant to item (1) of subsection (b) of
16Section 56 of the Illinois Horse Racing Act of 1975 shall not
17be included in the determination of adjusted gross receipts.
18 (a-5) Beginning in the fiscal year following the opening of
19the casino at which gambling operations are conducted pursuant
20to the Chicago Casino Development Authority Act, but not before
21July 1, 2015, a privilege tax is imposed on persons engaged in
22the business of conducting riverboat or casino gambling or
23electronic gaming operations, other than licensed managers
24conducting riverboat gambling operations on behalf of the
25State, based on the adjusted gross receipts received by such
26licensee from the gambling games authorized under this Act and

09800SB1739sam001- 468 -LRB098 10559 AMC 42403 a
1the Chicago Casino Development Authority Act. The privilege tax
2for all gambling games other than table games, including, but
3not limited to, slot machines, video game of chance gambling,
4and electronic gambling games shall be at the following rates:
5 10% of annual adjusted gross receipts up to and
6 including $25,000,000;
7 17.5% of annual adjusted gross receipts in excess of
8 $25,000,000 but not exceeding $50,000,000;
9 22.5% of annual adjusted gross receipts in excess of
10 $50,000,000 but not exceeding $75,000,000;
11 27.5% of annual adjusted gross receipts in excess of
12 $75,000,000 but not exceeding $100,000,000;
13 32.5% of annual adjusted gross receipts in excess of
14 $100,000,000 but not exceeding $150,000,000;
15 35% of annual adjusted gross receipts in excess of
16 $150,000,000 but not exceeding $200,000,000;
17 40% of annual adjusted gross receipts in excess of
18 $200,000,000 but not exceeding $300,000,000;
19 30% of annual adjusted gross receipts in excess of
20 $300,000,000 but not exceeding $350,000,000;
21 20% of annual adjusted gross receipts in excess of
22 $350,000,000, but not exceeding $800,000,000;
23 50% of annual adjusted gross receipts in excess of
24 $800,000,000.
25 The privilege tax for table games shall be at the following
26rates:

09800SB1739sam001- 469 -LRB098 10559 AMC 42403 a
1 10% of annual adjusted gross receipts up to and
2 including $25,000,000;
3 17.5% of annual adjusted gross receipts in excess of
4 $25,000,000 but not exceeding $50,000,000;
5 22.5% of annual adjusted gross receipts in excess of
6 $50,000,000 but not exceeding $70,000,000;
7 16% of annual adjusted gross receipts in excess of
8 $70,000,000.
9 For the imposition of the privilege tax in this subsection
10(a-5), amounts paid pursuant to item (1) of subsection (b) of
11Section 56 of the Illinois Horse Racing Act of 1975 shall not
12be included in the determination of adjusted gross receipts.
13 (a-6) From the effective date of this amendatory Act of the
1498th General Assembly until June 30, 2017, an owners licensee
15that conducted gambling operations prior to January 1, 2011
16shall receive a dollar-for-dollar credit against the tax
17imposed under this Section for any renovation or construction
18costs paid by the owners licensee, but in no event shall the
19credit exceed $2,000,000.
20 Additionally, from the effective date of this amendatory
21Act of the 98th General Assembly until December 31, 2016, an
22owners licensee that (i) is located within 15 miles of the
23Missouri border, and (ii) has at least 3 riverboats, casinos,
24or their equivalent within a 45-mile radius, may be authorized
25to relocate to a new location with the approval of both the
26unit of local government designated as the home dock and the

09800SB1739sam001- 470 -LRB098 10559 AMC 42403 a
1Board, so long as the new location is within the same unit of
2local government and no more than 3 miles away from its
3original location. Such owners licensee shall receive a credit
4against the tax imposed under this Section equal to 8% of the
5total project costs, as approved by the Board, for any
6renovation or construction costs paid by the owners licensee
7for the construction of the new facility, provided that the new
8facility is operational by July 1, 2016. In determining whether
9or not to approve a relocation, the Board must consider the
10extent to which the relocation will diminish the gaming
11revenues received by other Illinois gaming facilities.
12 (a-8) Riverboat gambling operations conducted by a
13licensed manager on behalf of the State are not subject to the
14tax imposed under this Section.
15 (a-9) Beginning on January 1, 2014, the calculation of
16gross receipts or adjusted gross receipts, for the purposes of
17this Section, for a riverboat, casino, or electronic gaming
18facility shall not include the dollar amount of non-cashable
19vouchers, coupons, and electronic promotions redeemed by
20wagerers upon the riverboat, in the casino, or in the
21electronic gaming facility up to and including an amount not to
22exceed 30% of a riverboat casino or electronic gaming
23facility's adjusted gross receipts.
24 The Illinois Gaming Board shall submit to the General
25Assembly a comprehensive report no later than March 31, 2017
26detailing, at a minimum, the effect of removing non-cashable

09800SB1739sam001- 471 -LRB098 10559 AMC 42403 a
1vouchers, coupons, and electronic promotions from this
2calculation on net gaming revenues to the State in calendar
3years 2014 through 2016, the increase or reduction in wagerers
4as a result of removing non-cashable vouchers, coupons, and
5electronic promotions from this calculation, the effect of the
6tax rates in subsection (a-5) on net gaming revenues to the
7State, and proposed modifications to the calculation.
8 (a-10) The taxes imposed by this Section shall be paid by
9the licensed owner or the electronic gaming licensee to the
10Board not later than 5:00 o'clock p.m. of the day after the day
11when the wagers were made.
12 (a-15) If the privilege tax imposed under subsection (a-3)
13is no longer imposed pursuant to item (i) of the last paragraph
14of subsection (a-3), then by June 15 of each year, each owners
15licensee, other than an owners licensee that admitted 1,000,000
16persons or fewer in calendar year 2004, must, in addition to
17the payment of all amounts otherwise due under this Section,
18pay to the Board a reconciliation payment in the amount, if
19any, by which the licensed owner's base amount exceeds the
20amount of net privilege tax paid by the licensed owner to the
21Board in the then current State fiscal year. A licensed owner's
22net privilege tax obligation due for the balance of the State
23fiscal year shall be reduced up to the total of the amount paid
24by the licensed owner in its June 15 reconciliation payment.
25The obligation imposed by this subsection (a-15) is binding on
26any person, firm, corporation, or other entity that acquires an

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

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1avoided by the exercise of due care, and for which no person
2can be held liable.
3 "Base amount" means the following:
4 For a riverboat in Alton, $31,000,000.
5 For a riverboat in East Peoria, $43,000,000.
6 For the Empress riverboat in Joliet, $86,000,000.
7 For a riverboat in Metropolis, $45,000,000.
8 For the Harrah's riverboat in Joliet, $114,000,000.
9 For a riverboat in Aurora, $86,000,000.
10 For a riverboat in East St. Louis, $48,500,000.
11 For a riverboat in Elgin, $198,000,000.
12 "Dormant license" has the meaning ascribed to it in
13subsection (a-3).
14 "Net privilege tax" means all privilege taxes paid by a
15licensed owner to the Board under this Section, less all
16payments made from the State Gaming Fund pursuant to subsection
17(b) of this Section.
18 The changes made to this subsection (a-15) by Public Act
1994-839 are intended to restate and clarify the intent of Public
20Act 94-673 with respect to the amount of the payments required
21to be made under this subsection by an owners licensee to the
22Board.
23 (b) Until January 1, 1998, 25% of the tax revenue deposited
24in the State Gaming Fund under this Section shall be paid,
25subject to appropriation by the General Assembly, to the unit
26of local government which is designated as the home dock of the

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1riverboat. Beginning January 1, 1998, from the tax revenue from
2riverboat or casino gambling deposited in the State Gaming Fund
3under this Section, an amount equal to 5% of adjusted gross
4receipts generated by a riverboat or a casino other than a
5riverboat designated in paragraph (3) or (4) of subsection
6(e-5) of Section 7, shall be paid monthly, subject to
7appropriation by the General Assembly, to the unit of local
8government in which the casino is located or that is designated
9as the home dock of the riverboat. From the tax revenue
10deposited in the State Gaming Fund pursuant to riverboat or
11casino gambling operations conducted by a licensed manager on
12behalf of the State, an amount equal to 5% of adjusted gross
13receipts generated pursuant to those riverboat or casino
14gambling operations shall be paid monthly, subject to
15appropriation by the General Assembly, to the unit of local
16government that is designated as the home dock of the riverboat
17upon which those riverboat gambling operations are conducted or
18in which the casino is located. From the tax revenue from
19riverboat or casino gambling deposited in the State Gaming Fund
20under this Section, an amount equal to 5% of the adjusted gross
21receipts generated by a riverboat designated in paragraph (3)
22of subsection (e-5) of Section 7 shall be divided equally and
23remitted monthly, subject to appropriation, to Park City,
24Waukegan, and North Chicago. From the tax revenue from
25riverboat or casino gambling deposited in the State Gaming Fund
26under this Section, an amount equal to 5% of the adjusted gross

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1receipts generated by a riverboat designated in paragraph (4)
2of subsection (e-5) of Section 7 shall be divided and remitted
3monthly, subject to appropriation, according to a
4revenue-sharing agreement between the City of Rockford and
5Winnebago County, the terms of which shall be determined by the
6City of Rockford and Winnebago County. The City of Rockford and
7Winnebago County shall transmit a copy of the executed
8revenue-sharing agreement to the Board no later than 90 days
9after the effective date of this amendatory Act of the 98th
10General Assembly. Units of local government may refund any
11portion of the payment that they receive pursuant to this
12subsection (b) to the riverboat or casino.
13 (b-5) Beginning on the effective date of this amendatory
14Act of the 98th General Assembly, from the tax revenue
15deposited in the State Gaming Fund under this Section, an
16amount equal to 3% of adjusted gross receipts generated by each
17electronic gaming facility located outside Madison County
18shall be paid monthly, subject to appropriation by the General
19Assembly, to a municipality other than the Village of Stickney
20in which each electronic gaming facility is located or, if the
21electronic gaming facility is not located within a
22municipality, to the county in which the electronic gaming
23facility is located, except as otherwise provided in this
24Section. From the tax revenue deposited in the State Gaming
25Fund under this Section, an amount equal to 3% of adjusted
26gross receipts generated by each electronic gaming facility

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1that is located in an unincorporated area of Cook County and
2has been awarded standardbred racing dates during 2011 by the
3Illinois Racing Board shall be divided equally and distributed,
4subject to appropriation, to the Village of Melrose Park, the
5Village of Maywood, and Cook County. From the tax revenue
6deposited in the State Gaming Fund under this Section, an
7amount equal to 3% of adjusted gross receipts generated by an
8electronic gaming facility located in the Village of Stickney
9shall be paid monthly, subject to appropriation by the General
10Assembly, as follows: 25% to the Village of Stickney, 5% to the
11City of Berwyn, 50% to the Town of Cicero, and 20% to the
12Stickney Public Health District.
13 From the tax revenue deposited in the State Gaming Fund
14under this Section, an amount equal to 3% of adjusted gross
15receipts generated by an electronic gaming facility located in
16the City of Collinsville shall be paid monthly, subject to
17appropriation by the General Assembly, as follows: 45% to the
18City of Alton, 45% to the City of East St. Louis, and 10% to the
19City of Collinsville.
20 Beginning on the effective date of this amendatory Act of
21the 98th General Assembly, from the tax revenue deposited in
22the State Gaming Fund under this Section, an amount equal to
23(i) 1% of adjusted gross receipts generated by an electronic
24gaming facility located in Madison County shall be paid
25monthly, subject to appropriation by the General Assembly, to
26Madison County for the purposes of infrastructure

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1improvements, and (ii) 1% of adjusted gross receipts generated
2by an electronic gaming facility located in Madison County
3shall be paid monthly, subject to appropriation by the General
4Assembly, to St. Clair County for the purposes of
5infrastructure improvements.
6 Municipalities and counties may refund any portion of the
7payment that they receive pursuant to this subsection (b-5) to
8the electronic gaming facility.
9 (b-6) Beginning on the effective date of this amendatory
10Act of the 98th General Assembly, from the tax revenue
11deposited in the State Gaming Fund under this Section, an
12amount equal to 2% of adjusted gross receipts generated by an
13electronic gaming facility located outside Madison County
14shall be paid monthly, subject to appropriation by the General
15Assembly, to the county in which the electronic gaming facility
16is located for the purposes of its criminal justice system or
17health care system.
18 Counties may refund any portion of the payment that they
19receive pursuant to this subsection (b-6) to the electronic
20gaming facility.
21 (b-7) From January 1, 2015 until December 31, 2017, if the
22total amount paid to the Education Assistance Fund annually
23pursuant to this Act will result in the Education Assistance
24Fund receiving less revenue from the State Gaming Fund than it
25received in calendar year 2011, an amount equal to that
26shortfall shall be transferred from the Capital Projects Fund

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1to the Education Assistance Fund, except that no such transfer
2shall exceed the amount deposited into the Capital Projects
3Fund pursuant to subsection (c-4) of this Section.
4 (c) Appropriations, as approved by the General Assembly,
5may be made from the State Gaming Fund to the Board (i) for the
6administration and enforcement of this Act, the Chicago Casino
7Development Authority Act, and the Video Gaming Act, (ii) for
8distribution to the Department of State Police and to the
9Department of Revenue for the enforcement of this Act, the
10Chicago Casino Development Authority Act, and the Video Gaming
11Act, and (iii) to the Department of Human Services for the
12administration of programs to treat problem gambling. The
13Board's annual appropriations request must separately state
14its funding needs for the regulation of electronic gaming,
15riverboat gaming, casino gaming within the City of Chicago, and
16video gaming. From the tax revenue deposited in the Gaming
17Facilities Fee Revenue Fund, the first $50,000,000 shall be
18paid to the Board, subject to appropriation, for the
19administration and enforcement of the provisions of this
20amendatory Act of the 98th General Assembly.
21 (c-3) Appropriations, as approved by the General Assembly,
22may be made from the tax revenue deposited into the State
23Gaming Fund from electronic gaming pursuant to this Section for
24the administration and enforcement of this Act.
25 (c-4) After payments required under subsection (b-5), (c),
26and (c-3) have been made from the tax revenue from electronic

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1gaming deposited into the State Gaming Fund under this Section,
2all remaining amounts from electronic gaming shall be deposited
3into the Education Assistance Fund.
4 (c-5) (Blank). Before May 26, 2006 (the effective date of
5Public Act 94-804) and beginning on the effective date of this
6amendatory Act of the 95th General Assembly, unless any
7organization licensee under the Illinois Horse Racing Act of
81975 begins to operate a slot machine or video game of chance
9under the Illinois Horse Racing Act of 1975 or this Act, after
10the payments required under subsections (b) and (c) have been
11made, an amount equal to 15% of the adjusted gross receipts of
12(1) an owners licensee that relocates pursuant to Section 11.2,
13(2) an owners licensee conducting riverboat gambling
14operations pursuant to an owners license that is initially
15issued after June 25, 1999, or (3) the first riverboat gambling
16operations conducted by a licensed manager on behalf of the
17State under Section 7.3, whichever comes first, shall be paid
18from the State Gaming Fund into the Horse Racing Equity Fund.
19 (c-10) (Blank). Each year the General Assembly shall
20appropriate from the General Revenue Fund to the Education
21Assistance Fund an amount equal to the amount paid into the
22Horse Racing Equity Fund pursuant to subsection (c-5) in the
23prior calendar year.
24 (c-15) (Blank). After the payments required under
25subsections (b), (c), and (c-5) have been made, an amount equal
26to 2% of the adjusted gross receipts of (1) an owners licensee

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1that relocates pursuant to Section 11.2, (2) an owners licensee
2conducting riverboat gambling operations pursuant to an owners
3license that is initially issued after June 25, 1999, or (3)
4the first riverboat gambling operations conducted by a licensed
5manager on behalf of the State under Section 7.3, whichever
6comes first, shall be paid, subject to appropriation from the
7General Assembly, from the State Gaming Fund to each home rule
8county with a population of over 3,000,000 inhabitants for the
9purpose of enhancing the county's criminal justice system.
10 (c-20) Each year the General Assembly shall appropriate
11from the General Revenue Fund to the Education Assistance Fund
12an amount equal to the amount paid to each home rule county
13with a population of over 3,000,000 inhabitants pursuant to
14subsection (c-15) in the prior calendar year.
15 (c-25) (Blank). After the payments required under
16subsections (b), (c), (c-5) and (c-15) have been made, an
17amount equal to 2% of the adjusted gross receipts of (1) an
18owners licensee that relocates pursuant to Section 11.2, (2) an
19owners licensee conducting riverboat gambling operations
20pursuant to an owners license that is initially issued after
21June 25, 1999, or (3) the first riverboat gambling operations
22conducted by a licensed manager on behalf of the State under
23Section 7.3, whichever comes first, shall be paid from the
24State Gaming Fund to Chicago State University.
25 (d) From time to time, the Board shall transfer the
26remainder of the funds generated by this Act into the Education

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1Assistance Fund, created by Public Act 86-0018, of the State of
2Illinois.
3 (e) Nothing in this Act shall prohibit the unit of local
4government designated as the home dock of the riverboat from
5entering into agreements with other units of local government
6in this State or in other states to share its portion of the
7tax revenue.
8 (f) To the extent practicable, the Board shall administer
9and collect the wagering taxes imposed by this Section in a
10manner consistent with the provisions of Sections 4, 5, 5a, 5b,
115c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
12Retailers' Occupation Tax Act and Section 3-7 of the Uniform
13Penalty and Interest Act.
14(Source: P.A. 95-331, eff. 8-21-07; 95-1008, eff. 12-15-08;
1596-37, eff. 7-13-09; 96-1392, eff. 1-1-11.)
16 (230 ILCS 10/14) (from Ch. 120, par. 2414)
17 Sec. 14. Licensees - Records - Reports - Supervision.
18 (a) Licensed owners and electronic gaming licensees A
19licensed owner shall keep his books and records so as to
20clearly show the following:
21 (1) The amount received daily from admission fees.
22 (2) The total amount of gross receipts.
23 (3) The total amount of the adjusted gross receipts.
24 (b) Licensed owners and electronic gaming licensees The
25licensed owner shall furnish to the Board reports and

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1information as the Board may require with respect to its
2activities on forms designed and supplied for such purpose by
3the Board.
4 (c) The books and records kept by a licensed owner as
5provided by this Section are public records and the
6examination, publication, and dissemination of the books and
7records are governed by the provisions of The Freedom of
8Information Act.
9(Source: P.A. 86-1029.)
10 (230 ILCS 10/15) (from Ch. 120, par. 2415)
11 Sec. 15. Audit of Licensee Operations. Annually, the
12licensed owner, or manager, or electronic gaming licensee shall
13transmit to the Board an audit of the financial transactions
14and condition of the licensee's or manager's total operations.
15Additionally, within 90 days after the end of each quarter of
16each fiscal year, the licensed owner, or manager, or electronic
17gaming licensee shall transmit to the Board a compliance report
18on engagement procedures determined by the Board. All audits
19and compliance engagements shall be conducted by certified
20public accountants selected by the Board. Each certified public
21accountant must be registered in the State of Illinois under
22the Illinois Public Accounting Act. The compensation for each
23certified public accountant shall be paid directly by the
24licensed owner, or manager, or electronic gaming licensee to
25the certified public accountant.

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1(Source: P.A. 96-1392, eff. 1-1-11.)
2 (230 ILCS 10/16) (from Ch. 120, par. 2416)
3 Sec. 16. Annual Report of Board. The Board shall make an
4annual report to the Governor, for the period ending December
531 of each year. Included in the report shall be an account of
6the Board actions, its financial position and results of
7operation under this Act and the Chicago Casino Development
8Authority Act, the practical results attained under this Act
9and the Chicago Casino Development Authority Act and any
10recommendations for legislation which the Board deems
11advisable.
12(Source: P.A. 86-1029.)
13 (230 ILCS 10/17) (from Ch. 120, par. 2417)
14 Sec. 17. Administrative Procedures. The Illinois
15Administrative Procedure Act shall apply to all administrative
16rules and procedures of the Board under this Act, the Chicago
17Casino Development Authority Act, and or the Video Gaming Act,
18except that: (1) subsection (b) of Section 5-10 of the Illinois
19Administrative Procedure Act does not apply to final orders,
20decisions and opinions of the Board; (2) subsection (a) of
21Section 5-10 of the Illinois Administrative Procedure Act does
22not apply to forms established by the Board for use under this
23Act, the Chicago Casino Development Authority Act, and or the
24Video Gaming Act; (3) the provisions of Section 10-45 of the

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1Illinois Administrative Procedure Act regarding proposals for
2decision are excluded under this Act, the Chicago Casino
3Development Authority Act, and or the Video Gaming Act; and (4)
4the provisions of subsection (d) of Section 10-65 of the
5Illinois Administrative Procedure Act do not apply so as to
6prevent summary suspension of any license pending revocation or
7other action, which suspension shall remain in effect unless
8modified by the Board or unless the Board's decision is
9reversed on the merits upon judicial review.
10(Source: P.A. 96-34, eff. 7-13-09.)
11 (230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)
12 Sec. 17.1. Judicial Review.
13 (a) Jurisdiction and venue for the judicial review of a
14final order of the Board relating to licensed owners,
15suppliers, electronic gaming licensees, and or special event
16licenses is vested in the Appellate Court of the judicial
17district in which Sangamon County is located. A petition for
18judicial review of a final order of the Board must be filed in
19the Appellate Court, within 35 days from the date that a copy
20of the decision sought to be reviewed was served upon the party
21affected by the decision.
22 (b) Judicial review of all other final orders of the Board
23shall be conducted in accordance with the Administrative Review
24Law.
25(Source: P.A. 88-1.)

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1 (230 ILCS 10/18) (from Ch. 120, par. 2418)
2 Sec. 18. Prohibited Activities - Penalty.
3 (a) A person is guilty of a Class A misdemeanor for doing
4any of the following:
5 (1) Conducting gambling where wagering is used or to be
6 used without a license issued by the Board.
7 (2) Conducting gambling where wagering is permitted
8 other than in the manner specified by Section 11.
9 (b) A person is guilty of a Class B misdemeanor for doing
10any of the following:
11 (1) permitting a person under 21 years to make a wager;
12 or
13 (2) violating paragraph (12) of subsection (a) of
14 Section 11 of this Act.
15 (c) A person wagering or accepting a wager at any location
16outside the riverboat, casino, or electronic gaming facility in
17violation of paragraph is subject to the penalties in
18paragraphs (1) or (2) of subsection (a) of Section 28-1 of the
19Criminal Code of 2012 is subject to the penalties provided in
20that Section.
21 (d) A person commits a Class 4 felony and, in addition,
22shall be barred for life from gambling operations riverboats
23under the jurisdiction of the Board, if the person does any of
24the following:
25 (1) Offers, promises, or gives anything of value or

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1 benefit to a person who is connected with a riverboat or
2 casino owner or electronic gaming licensee, including, but
3 not limited to, an officer or employee of a licensed owner,
4 electronic gaming licensee, or holder of an occupational
5 license pursuant to an agreement or arrangement or with the
6 intent that the promise or thing of value or benefit will
7 influence the actions of the person to whom the offer,
8 promise, or gift was made in order to affect or attempt to
9 affect the outcome of a gambling game, or to influence
10 official action of a member of the Board.
11 (2) Solicits or knowingly accepts or receives a promise
12 of anything of value or benefit while the person is
13 connected with a riverboat, casino, or electronic gaming
14 facility, including, but not limited to, an officer or
15 employee of a licensed owner or electronic gaming licensee,
16 or the holder of an occupational license, pursuant to an
17 understanding or arrangement or with the intent that the
18 promise or thing of value or benefit will influence the
19 actions of the person to affect or attempt to affect the
20 outcome of a gambling game, or to influence official action
21 of a member of the Board.
22 (3) Uses or possesses with the intent to use a device
23 to assist:
24 (i) In projecting the outcome of the game.
25 (ii) In keeping track of the cards played.
26 (iii) In analyzing the probability of the

09800SB1739sam001- 487 -LRB098 10559 AMC 42403 a
1 occurrence of an event relating to the gambling game.
2 (iv) In analyzing the strategy for playing or
3 betting to be used in the game except as permitted by
4 the Board.
5 (4) Cheats at a gambling game.
6 (5) Manufactures, sells, or distributes any cards,
7 chips, dice, game or device which is intended to be used to
8 violate any provision of this Act or the Chicago Casino
9 Development Authority Act.
10 (6) Alters or misrepresents the outcome of a gambling
11 game on which wagers have been made after the outcome is
12 made sure but before it is revealed to the players.
13 (7) Places a bet after acquiring knowledge, not
14 available to all players, of the outcome of the gambling
15 game which is subject of the bet or to aid a person in
16 acquiring the knowledge for the purpose of placing a bet
17 contingent on that outcome.
18 (8) Claims, collects, or takes, or attempts to claim,
19 collect, or take, money or anything of value in or from the
20 gambling games, with intent to defraud, without having made
21 a wager contingent on winning a gambling game, or claims,
22 collects, or takes an amount of money or thing of value of
23 greater value than the amount won.
24 (9) Uses counterfeit chips or tokens in a gambling
25 game.
26 (10) Possesses any key or device designed for the

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1 purpose of opening, entering, or affecting the operation of
2 a gambling game, drop box, or an electronic or mechanical
3 device connected with the gambling game or for removing
4 coins, tokens, chips or other contents of a gambling game.
5 This paragraph (10) does not apply to a gambling licensee
6 or employee of a gambling licensee acting in furtherance of
7 the employee's employment.
8 (e) The possession of more than one of the devices
9described in subsection (d), paragraphs (3), (5), or (10)
10permits a rebuttable presumption that the possessor intended to
11use the devices for cheating.
12 (f) A person under the age of 21 who, except as authorized
13under paragraph (10) of Section 11, enters upon a riverboat or
14in a casino or electronic gaming facility commits a petty
15offense and is subject to a fine of not less than $100 or more
16than $250 for a first offense and of not less than $200 or more
17than $500 for a second or subsequent offense.
18 An action to prosecute any crime occurring on a riverboat
19shall be tried in the county of the dock at which the riverboat
20is based. An action to prosecute any crime occurring in a
21casino or electronic gaming facility shall be tried in the
22county of in which the casino or electronic gaming facility is
23located.
24(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
25 (230 ILCS 10/18.1)

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1 Sec. 18.1. Distribution of certain fines. If a fine is
2imposed on an owner licensee or an electronic gaming licensee
3for knowingly sending marketing or promotional materials to any
4person placed on the self-exclusion list, then the Board shall
5distribute an amount equal to 15% of the fine imposed to the
6unit of local government in which the casino, riverboat, or
7electronic gaming facility is located for the purpose of
8awarding grants to non-profit entities that assist gambling
9addicts.
10(Source: P.A. 96-224, eff. 8-11-09.)
11 (230 ILCS 10/18.2 new)
12 Sec. 18.2. Prohibition on political contributions from
13certain licensees and applicants.
14 (a) The General Assembly has a compelling interest in
15protecting the integrity of both the electoral process and the
16legislative process by preventing corruption and the
17appearance of corruption which may arise through permitting
18certain political campaign contributions by certain persons
19involved in the gaming industry and regulated by the State.
20Unlike most other regulated industries, gaming is especially
21susceptible to corruption and potential criminal influence.
22 In Illinois, only licensed gaming activities are legal and
23all other gaming activities are strictly prohibited. Given
24these circumstances, it is imperative to eliminate any
25potential corrupt influence in the gaming industry and the

09800SB1739sam001- 490 -LRB098 10559 AMC 42403 a
1electoral process. Banning political campaign contributions by
2certain persons subject to this Section to State officeholders
3and candidates for such offices and to county and municipal
4officeholders and candidates for such offices in counties and
5municipalities that receive financial benefits from gaming
6activities is necessary to prevent corruption and the
7appearance of corruption that may arise when political campaign
8contributions and gaming that is regulated by the State and
9that confers benefits on counties and municipalities are
10intermingled.
11 The General Assembly has prohibited political campaign
12contributions to certain State and local officeholders and
13candidates for such offices by certain persons with State of
14Illinois and Metropolitan Pier and Exposition Authority
15contracts and pending bids or proposals for contracts of over
16$50,000 and certain individuals and entities affiliated with
17such persons. Certain gaming licensees will receive receipts
18far in excess of the base level of contract amounts subject to
19such other campaign contribution prohibitions.
20 (b) As used in this Section:
21 "Affiliated entity" means (i) any corporate parent and each
22operating subsidiary of the business entity applying for or
23holding a license, (ii) each operating subsidiary of the
24corporate parent of the business entity applying for or holding
25a license, (iii) any organization recognized by the United
26States Internal Revenue Service as a tax-exempt organization

09800SB1739sam001- 491 -LRB098 10559 AMC 42403 a
1described in Section 501(c) of the Internal Revenue Code of
21986 (or any successor provision of federal tax law)
3established by one or more business entities seeking or holding
4a license, any affiliated entity of such business entity, or
5any affiliated person of such business entity, and (iv) any
6political committee for which the business entity applying for
7or holding a license, or any 501(c) organization described in
8item (iii) related to that business entity, is the sponsoring
9entity, as defined in Section 9-3 of the Election Code. For
10purposes of item (iv), the funding of all business entities
11applying for or holding a license shall be aggregated in
12determining whether such political committee is an affiliated
13entity.
14 "Affiliated person" means (i) any person with any ownership
15interest or distributive share in excess of 7.5% of any
16business entity applying for or holding a license, (ii)
17executive employees of any such business entity, (iii) any
18person designated as a key person under this Act, and (iv) the
19spouse of such persons.
20 "Contribution" means a contribution as defined in Section
219-1.4 of the Election Code.
22 "Declared candidate" means a person who has filed a
23statement of candidacy and petition for nomination or election
24in the principal office of the State Board of Elections, or in
25the office of the appropriate election authority for any county
26or municipality in which a casino or electronic gaming device

09800SB1739sam001- 492 -LRB098 10559 AMC 42403 a
1is located or proposed or which receives any gaming revenue.
2 "Executive employee" means any person who is (i) an officer
3or director or who fulfills duties equivalent to those of an
4officer or director of a business entity applying for or
5holding a license and (ii) any employee of such business entity
6who is required to register under the Lobbyist Registration
7Act.
8 "License" means any owner, electronic gaming, or manager
9license issued pursuant to this Act.
10 "Officeholder" means the Governor, Lieutenant Governor,
11Attorney General, Secretary of State, Comptroller, Treasurer,
12member of the General Assembly, or any officeholder in any
13county or municipality in which a riverboat, casino, or
14electronic gaming device is located or proposed or which
15receives any gaming revenue.
16 "Business entity" means any entity doing business for
17profit, whether organized as a corporation, partnership, sole
18proprietorship, limited liability company, or partnership or
19otherwise.
20 (c) Any person or business entity applying for or holding a
21license, any affiliated entities or persons of such business
22entity, and any entities or persons soliciting a contribution
23or causing a contribution to be made on behalf of such person
24or business entity, are prohibited from making any contribution
25to any officeholder or declared candidate or any political
26committee affiliated with any officeholder or declared

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

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1 Any person, business entity, or affiliated entity
2prohibited from making contributions to any officeholder or
3declared candidate political committee pursuant to subsection
4(c) shall notify the Board within 7 days after discovering any
5necessary change or addition to the information relating to
6that person, business entity, or affiliated entity contained in
7the list.
8 An individual who acts in good faith and in reliance on any
9information contained in the list shall not be subject to any
10penalties or liability imposed for a violation of this Section.
11 (e) If any provision of this Section is held invalid or its
12application to any person or circumstance is held invalid, the
13invalidity of that provision or application does not affect the
14other provisions or applications of this Section that can be
15given effect without the invalid application or provision.
16 (230 ILCS 10/19) (from Ch. 120, par. 2419)
17 Sec. 19. Forfeiture of property.
18 (a) Except as provided in subsection (b), any riverboat,
19casino, or electronic gaming facility used for the conduct of
20gambling games in violation of this Act shall be considered a
21gambling place in violation of Section 28-3 of the Criminal
22Code of 2012. Every gambling device found on a riverboat, in a
23casino, or at an electronic gaming facility operating gambling
24games in violation of this Act and every slot machine and video
25game of chance found at an electronic gaming facility operating

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1gambling games in violation of this Act or the Chicago Casino
2Development Authority Act shall be subject to seizure,
3confiscation and destruction as provided in Section 28-5 of the
4Criminal Code of 2012.
5 (b) It is not a violation of this Act for a riverboat or
6other watercraft which is licensed for gaming by a contiguous
7state to dock on the shores of this State if the municipality
8having jurisdiction of the shores, or the county in the case of
9unincorporated areas, has granted permission for docking and no
10gaming is conducted on the riverboat or other watercraft while
11it is docked on the shores of this State. No gambling device
12shall be subject to seizure, confiscation or destruction if the
13gambling device is located on a riverboat or other watercraft
14which is licensed for gaming by a contiguous state and which is
15docked on the shores of this State if the municipality having
16jurisdiction of the shores, or the county in the case of
17unincorporated areas, has granted permission for docking and no
18gaming is conducted on the riverboat or other watercraft while
19it is docked on the shores of this State.
20(Source: P.A. 97-1150, eff. 1-25-13.)
21 (230 ILCS 10/20) (from Ch. 120, par. 2420)
22 Sec. 20. Prohibited activities - civil penalties. Any
23person who conducts a gambling operation without first
24obtaining a license to do so, or who continues to conduct such
25games after revocation of his license, or any licensee who

09800SB1739sam001- 496 -LRB098 10559 AMC 42403 a
1conducts or allows to be conducted any unauthorized gambling
2games on a riverboat, in a casino, or at an electronic gaming
3facility where it is authorized to conduct its riverboat
4gambling operation, in addition to other penalties provided,
5shall be subject to a civil penalty equal to the amount of
6gross receipts derived from wagering on the gambling games,
7whether unauthorized or authorized, conducted on that day as
8well as confiscation and forfeiture of all gambling game
9equipment used in the conduct of unauthorized gambling games.
10(Source: P.A. 86-1029.)
11 (230 ILCS 10/21) (from Ch. 120, par. 2421)
12 Sec. 21. Limitation on taxation of licensees. Licensees
13shall not be subjected to any excise tax, license tax, permit
14tax, privilege tax, occupation tax or excursion tax which is
15imposed exclusively upon the licensee by the State or any
16political subdivision thereof, except as provided in this Act
17or the Chicago Casino Development Authority Act.
18(Source: P.A. 86-1029.)
19 (230 ILCS 10/23) (from Ch. 120, par. 2423)
20 Sec. 23. The State Gaming Fund. On or after the effective
21date of this Act, except as provided for payments into the
22Horse Racing Equity Trust Fund under subsection (a) of Section
237, all of the fees and taxes collected pursuant to this Act or
24the Chicago Casino Development Authority Act shall be deposited

09800SB1739sam001- 497 -LRB098 10559 AMC 42403 a
1into the State Gaming Fund, a special fund in the State
2Treasury, which is hereby created. The adjusted gross receipts
3of any riverboat gambling operations conducted by a licensed
4manager on behalf of the State remaining after the payment of
5the fees and expenses of the licensed manager shall be
6deposited into the State Gaming Fund. Fines and penalties
7collected pursuant to this Act or the Chicago Casino
8Development Authority Act shall be deposited into the Education
9Assistance Fund, created by Public Act 86-0018, of the State of
10Illinois.
11(Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)
12 (230 ILCS 10/24)
13 Sec. 24. Applicability of this Illinois Riverboat Gambling
14Act. The provisions of the this Illinois Riverboat Gambling
15Act, and all rules promulgated thereunder, shall apply to the
16the Chicago Casino Development Authority Act and the Video
17Gaming Act, except where there is a conflict between the 2
18Acts. In the event of a conflict between this Act and the
19Chicago Casino Development Authority Act, the terms of the
20Chicago Casino Development Authority Act shall prevail. In the
21event of a conflict between this Act and the Video Gaming Act,
22the terms of this Act shall prevail.
23(Source: P.A. 96-37, eff. 7-13-09.)
24 Section 90-42. The Video Gaming Act is amended by changing

09800SB1739sam001- 498 -LRB098 10559 AMC 42403 a
1Sections 5, 25, 45, 79, and 80 and by adding Section 81 as
2follows:
3 (230 ILCS 40/5)
4 Sec. 5. Definitions. As used in this Act:
5 "Board" means the Illinois Gaming Board.
6 "Credit" means one, 5, 10, or 25 cents either won or
7purchased by a player.
8 "Distributor" means an individual, partnership,
9corporation, or limited liability company licensed under this
10Act to buy, sell, lease, or distribute video gaming terminals
11or major components or parts of video gaming terminals to or
12from terminal operators.
13 "Terminal operator" means an individual, partnership,
14corporation, or limited liability company that is licensed
15under this Act and that owns, services, and maintains video
16gaming terminals for placement in licensed establishments,
17licensed truck stop establishments, licensed fraternal
18establishments, or licensed veterans establishments.
19 "Licensed technician" means an individual who is licensed
20under this Act to repair, service, and maintain video gaming
21terminals.
22 "Licensed terminal handler" means a person, including but
23not limited to an employee or independent contractor working
24for a manufacturer, distributor, supplier, technician, or
25terminal operator, who is licensed under this Act to possess or

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1control a video gaming terminal or to have access to the inner
2workings of a video gaming terminal. A licensed terminal
3handler does not include an individual, partnership,
4corporation, or limited liability company defined as a
5manufacturer, distributor, supplier, technician, or terminal
6operator under this Act.
7 "Manufacturer" means an individual, partnership,
8corporation, or limited liability company that is licensed
9under this Act and that manufactures or assembles video gaming
10terminals.
11 "Supplier" means an individual, partnership, corporation,
12or limited liability company that is licensed under this Act to
13supply major components or parts to video gaming terminals to
14licensed terminal operators.
15 "Net terminal income" means money put into a video gaming
16terminal minus credits paid out to players.
17 "Video gaming terminal" means any electronic video game
18machine that, upon insertion of cash, is available to play or
19simulate the play of a video game, including but not limited to
20video poker, line up, and blackjack, as authorized by the Board
21utilizing a video display and microprocessors in which the
22player may receive free games or credits that can be redeemed
23for cash. The term does not include a machine that directly
24dispenses coins, cash, or tokens or is for amusement purposes
25only.
26 "Licensed establishment" means any licensed retail

09800SB1739sam001- 500 -LRB098 10559 AMC 42403 a
1establishment where alcoholic liquor is drawn, poured, mixed,
2or otherwise served for consumption on the premises and
3includes any such establishment that has a contractual
4relationship with an inter-track wagering location licensee
5licensed under the Illinois Horse Racing Act of 1975, provided
6any contractual relationship shall not include any transfer or
7offer of revenue from the operation of video gaming under this
8Act to any licensee licensed under the Illinois Horse Racing
9Act of 1975. Provided, however, that the licensed establishment
10that has such a contractual relationship with an inter-track
11wagering location licensee may not, itself, be (i) an
12inter-track wagering location licensee, (ii) the corporate
13parent or subsidiary of any licensee licensed under the
14Illinois Horse Racing Act of 1975, or (iii) the corporate
15subsidiary of a corporation that is also the corporate parent
16or subsidiary of any licensee licensed under the Illinois Horse
17Racing Act of 1975. "Licensed establishment" does not include a
18facility operated by an organization licensee, an inter-track
19wagering licensee, or an inter-track wagering location
20licensee licensed under the Illinois Horse Racing Act of 1975
21or a riverboat licensed under the Illinois Riverboat Gambling
22Act, except as provided in this paragraph.
23 "Licensed fraternal establishment" means the location
24where a qualified fraternal organization that derives its
25charter from a national fraternal organization regularly
26meets.

09800SB1739sam001- 501 -LRB098 10559 AMC 42403 a
1 "Licensed veterans establishment" means the location where
2a qualified veterans organization that derives its charter from
3a national veterans organization regularly meets.
4 "Licensed truck stop establishment" means a facility (i)
5that is at least a 3-acre facility with a convenience store,
6(ii) with separate diesel islands for fueling commercial motor
7vehicles, (iii) that sells at retail more than 10,000 gallons
8of diesel or biodiesel fuel per month, and (iv) with parking
9spaces for commercial motor vehicles. "Commercial motor
10vehicles" has the same meaning as defined in Section 18b-101 of
11the Illinois Vehicle Code. The requirement of item (iii) of
12this paragraph may be met by showing that estimated future
13sales or past sales average at least 10,000 gallons per month.
14(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
1596-1410, eff. 7-30-10; 96-1479, eff. 8-23-10; 97-333, eff.
168-12-11.)
17 (230 ILCS 40/25)
18 Sec. 25. Restriction of licensees.
19 (a) Manufacturer. A person may not be licensed as a
20manufacturer of a video gaming terminal in Illinois unless the
21person has a valid manufacturer's license issued under this
22Act. A manufacturer may only sell video gaming terminals for
23use in Illinois to persons having a valid distributor's
24license.
25 (b) Distributor. A person may not sell, distribute, or

09800SB1739sam001- 502 -LRB098 10559 AMC 42403 a
1lease or market a video gaming terminal in Illinois unless the
2person has a valid distributor's license issued under this Act.
3A distributor may only sell video gaming terminals for use in
4Illinois to persons having a valid distributor's or terminal
5operator's license.
6 (c) Terminal operator. A person may not own, maintain, or
7place a video gaming terminal unless he has a valid terminal
8operator's license issued under this Act. A terminal operator
9may only place video gaming terminals for use in Illinois in
10licensed establishments, licensed truck stop establishments,
11licensed fraternal establishments, and licensed veterans
12establishments. No terminal operator may give anything of
13value, including but not limited to a loan or financing
14arrangement, to a licensed establishment, licensed truck stop
15establishment, licensed fraternal establishment, or licensed
16veterans establishment as any incentive or inducement to locate
17video terminals in that establishment. Of the after-tax profits
18from a video gaming terminal, 50% shall be paid to the terminal
19operator and 50% shall be paid to the licensed establishment,
20licensed truck stop establishment, licensed fraternal
21establishment, or licensed veterans establishment,
22notwithstanding any agreement to the contrary. A video terminal
23operator that violates one or more requirements of this
24subsection is guilty of a Class 4 felony and is subject to
25termination of his or her license by the Board.
26 (d) Licensed technician. A person may not service,

09800SB1739sam001- 503 -LRB098 10559 AMC 42403 a
1maintain, or repair a video gaming terminal in this State
2unless he or she (1) has a valid technician's license issued
3under this Act, (2) is a terminal operator, or (3) is employed
4by a terminal operator, distributor, or manufacturer.
5 (d-5) Licensed terminal handler. No person, including, but
6not limited to, an employee or independent contractor working
7for a manufacturer, distributor, supplier, technician, or
8terminal operator licensed pursuant to this Act, shall have
9possession or control of a video gaming terminal, or access to
10the inner workings of a video gaming terminal, unless that
11person possesses a valid terminal handler's license issued
12under this Act.
13 (e) Licensed establishment. No video gaming terminal may be
14placed in any licensed establishment, licensed veterans
15establishment, licensed truck stop establishment, or licensed
16fraternal establishment unless the owner or agent of the owner
17of the licensed establishment, licensed veterans
18establishment, licensed truck stop establishment, or licensed
19fraternal establishment has entered into a written use
20agreement with the terminal operator for placement of the
21terminals. A copy of the use agreement shall be on file in the
22terminal operator's place of business and available for
23inspection by individuals authorized by the Board. A licensed
24establishment, licensed truck stop establishment, licensed
25veterans establishment, or licensed fraternal establishment
26may operate up to 5 video gaming terminals on its premises at

09800SB1739sam001- 504 -LRB098 10559 AMC 42403 a
1any time.
2 (f) (Blank).
3 (g) Financial interest restrictions. As used in this Act,
4"substantial interest" in a partnership, a corporation, an
5organization, an association, a business, or a limited
6liability company means:
7 (A) When, with respect to a sole proprietorship, an
8 individual or his or her spouse owns, operates, manages, or
9 conducts, directly or indirectly, the organization,
10 association, or business, or any part thereof; or
11 (B) When, with respect to a partnership, the individual
12 or his or her spouse shares in any of the profits, or
13 potential profits, of the partnership activities; or
14 (C) When, with respect to a corporation, an individual
15 or his or her spouse is an officer or director, or the
16 individual or his or her spouse is a holder, directly or
17 beneficially, of 5% or more of any class of stock of the
18 corporation; or
19 (D) When, with respect to an organization not covered
20 in (A), (B) or (C) above, an individual or his or her
21 spouse is an officer or manages the business affairs, or
22 the individual or his or her spouse is the owner of or
23 otherwise controls 10% or more of the assets of the
24 organization; or
25 (E) When an individual or his or her spouse furnishes
26 5% or more of the capital, whether in cash, goods, or

09800SB1739sam001- 505 -LRB098 10559 AMC 42403 a
1 services, for the operation of any business, association,
2 or organization during any calendar year; or
3 (F) When, with respect to a limited liability company,
4 an individual or his or her spouse is a member, or the
5 individual or his or her spouse is a holder, directly or
6 beneficially, of 5% or more of the membership interest of
7 the limited liability company.
8 For purposes of this subsection (g), "individual" includes
9all individuals or their spouses whose combined interest would
10qualify as a substantial interest under this subsection (g) and
11whose activities with respect to an organization, association,
12or business are so closely aligned or coordinated as to
13constitute the activities of a single entity.
14 (h) Location restriction. A licensed establishment,
15licensed truck stop establishment, licensed fraternal
16establishment, or licensed veterans establishment that is (i)
17located within 1,000 feet of a facility operated by an
18organization licensee or an inter-track wagering licensee
19licensed under the Illinois Horse Racing Act of 1975 or the
20home dock of a riverboat licensed under the Illinois Riverboat
21Gambling Act or (ii) located within 100 feet of a school or a
22place of worship under the Religious Corporation Act, is
23ineligible to operate a video gaming terminal. The location
24restrictions in this subsection (h) do not apply if a facility
25operated by an organization licensee, an inter-track wagering
26licensee, or an inter-track wagering location licensee, a

09800SB1739sam001- 506 -LRB098 10559 AMC 42403 a
1school, or a place of worship moves to or is established within
2the restricted area after a licensed establishment, licensed
3truck stop establishment, licensed fraternal establishment, or
4licensed veterans establishment becomes licensed under this
5Act. For the purpose of this subsection, "school" means an
6elementary or secondary public school, or an elementary or
7secondary private school registered with or recognized by the
8State Board of Education.
9 Notwithstanding the provisions of this subsection (h), the
10Board may waive the requirement that a licensed establishment,
11licensed truck stop establishment, licensed fraternal
12establishment, or licensed veterans establishment not be
13located within 1,000 feet from a facility operated by an
14organization licensee, an inter-track wagering licensee, or an
15inter-track wagering location licensee licensed under the
16Illinois Horse Racing Act of 1975 or the home dock of a
17riverboat licensed under the Illinois Riverboat Gambling Act.
18The Board shall not grant such waiver if there is any common
19ownership or control, shared business activity, or contractual
20arrangement of any type between the establishment and the
21organization licensee, inter-track wagering licensee,
22inter-track wagering location licensee, or owners licensee of a
23riverboat. The Board shall adopt rules to implement the
24provisions of this paragraph.
25 (i) Undue economic concentration. In addition to
26considering all other requirements under this Act, in deciding

09800SB1739sam001- 507 -LRB098 10559 AMC 42403 a
1whether to approve the operation of video gaming terminals by a
2terminal operator in a location, the Board shall consider the
3impact of any economic concentration of such operation of video
4gaming terminals. The Board shall not allow a terminal operator
5to operate video gaming terminals if the Board determines such
6operation will result in undue economic concentration. For
7purposes of this Section, "undue economic concentration" means
8that a terminal operator would have such actual or potential
9influence over video gaming terminals in Illinois as to:
10 (1) substantially impede or suppress competition among
11 terminal operators;
12 (2) adversely impact the economic stability of the
13 video gaming industry in Illinois; or
14 (3) negatively impact the purposes of the Video Gaming
15 Act.
16 The Board shall adopt rules concerning undue economic
17concentration with respect to the operation of video gaming
18terminals in Illinois. The rules shall include, but not be
19limited to, (i) limitations on the number of video gaming
20terminals operated by any terminal operator within a defined
21geographic radius and (ii) guidelines on the discontinuation of
22operation of any such video gaming terminals the Board
23determines will cause undue economic concentration.
24 (j) The provisions of the Illinois Antitrust Act are fully
25and equally applicable to the activities of any licensee under
26this Act.

09800SB1739sam001- 508 -LRB098 10559 AMC 42403 a
1(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
2eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10;
396-1479, eff. 8-23-10; 97-333, eff. 8-12-11.)
4 (230 ILCS 40/45)
5 Sec. 45. Issuance of license.
6 (a) The burden is upon each applicant to demonstrate his
7suitability for licensure. Each video gaming terminal
8manufacturer, distributor, supplier, operator, handler,
9licensed establishment, licensed truck stop establishment,
10licensed fraternal establishment, and licensed veterans
11establishment shall be licensed by the Board. The Board may
12issue or deny a license under this Act to any person pursuant
13to the same criteria set forth in Section 9 of the Illinois
14Riverboat Gambling Act.
15 (a-5) The Board shall not grant a license to a person who
16has facilitated, enabled, or participated in the use of
17coin-operated devices for gambling purposes or who is under the
18significant influence or control of such a person. For the
19purposes of this Act, "facilitated, enabled, or participated in
20the use of coin-operated amusement devices for gambling
21purposes" means that the person has been convicted of any
22violation of Article 28 of the Criminal Code of 1961 or the
23Criminal Code of 2012. If there is pending legal action against
24a person for any such violation, then the Board shall delay the
25licensure of that person until the legal action is resolved.

09800SB1739sam001- 509 -LRB098 10559 AMC 42403 a
1 (b) Each person seeking and possessing a license as a video
2gaming terminal manufacturer, distributor, supplier, operator,
3handler, licensed establishment, licensed truck stop
4establishment, licensed fraternal establishment, or licensed
5veterans establishment shall submit to a background
6investigation conducted by the Board with the assistance of the
7State Police or other law enforcement. The background
8investigation shall include each beneficiary of a trust, each
9partner of a partnership, and each director and officer and all
10stockholders of 5% or more in a parent or subsidiary
11corporation of a video gaming terminal manufacturer,
12distributor, supplier, operator, or licensed establishment,
13licensed truck stop establishment, licensed fraternal
14establishment, or licensed veterans establishment.
15 (c) Each person seeking and possessing a license as a video
16gaming terminal manufacturer, distributor, supplier, operator,
17handler, licensed establishment, licensed truck stop
18establishment, licensed fraternal establishment, or licensed
19veterans establishment shall disclose the identity of every
20person, association, trust, corporation, or limited liability
21company having a greater than 1% direct or indirect pecuniary
22interest in the video gaming terminal operation for which the
23license is sought. If the disclosed entity is a trust, the
24application shall disclose the names and addresses of the
25beneficiaries; if a corporation, the names and addresses of all
26stockholders and directors; if a limited liability company, the

09800SB1739sam001- 510 -LRB098 10559 AMC 42403 a
1names and addresses of all members; or if a partnership, the
2names and addresses of all partners, both general and limited.
3 (d) No person may be licensed as a video gaming terminal
4manufacturer, distributor, supplier, operator, handler,
5licensed establishment, licensed truck stop establishment,
6licensed fraternal establishment, or licensed veterans
7establishment if that person has been found by the Board to:
8 (1) have a background, including a criminal record,
9 reputation, habits, social or business associations, or
10 prior activities that pose a threat to the public interests
11 of the State or to the security and integrity of video
12 gaming;
13 (2) create or enhance the dangers of unsuitable,
14 unfair, or illegal practices, methods, and activities in
15 the conduct of video gaming; or
16 (3) present questionable business practices and
17 financial arrangements incidental to the conduct of video
18 gaming activities.
19 (e) Any applicant for any license under this Act has the
20burden of proving his or her qualifications to the satisfaction
21of the Board. The Board may adopt rules to establish additional
22qualifications and requirements to preserve the integrity and
23security of video gaming in this State.
24 (f) A non-refundable application fee shall be paid at the
25time an application for a license is filed with the Board in
26the following amounts:

09800SB1739sam001- 511 -LRB098 10559 AMC 42403 a
1 (1) Manufacturer..........................$5,000
2 (2) Distributor...........................$5,000
3 (3) Terminal operator.....................$5,000
4 (4) Supplier..............................$2,500
5 (5) Technician..............................$100
6 (6) Terminal Handler..............................$50
7 (g) The Board shall establish an annual fee for each
8license not to exceed the following:
9 (1) Manufacturer.........................$10,000
10 (2) Distributor..........................$10,000
11 (3) Terminal operator.....................$5,000
12 (4) Supplier..............................$2,000
13 (5) Technician..............................$100
14 (6) Licensed establishment, licensed truck stop
15 establishment, licensed fraternal establishment,
16 or licensed veterans establishment..............$100
17 (7) Video gaming terminal...................$100
18 (8) Terminal Handler..............................$50
19(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
20eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10;
2197-1150, eff. 1-25-13.)
22 (230 ILCS 40/79)
23 Sec. 79. Investigators. Investigators appointed by the
24Board pursuant to the powers conferred upon the Board by
25paragraph (20.6) of subsection (c) of Section 5 of the Illinois

09800SB1739sam001- 512 -LRB098 10559 AMC 42403 a
1Riverboat Gambling Act and Section 80 of this Act shall have
2authority to conduct investigations, searches, seizures,
3arrests, and other duties imposed under this Act and the
4Illinois Riverboat Gambling Act, as deemed necessary by the
5Board. These investigators have and may exercise all of the
6rights and powers of peace officers, provided that these powers
7shall be (1) limited to offenses or violations occurring or
8committed in connection with conduct subject to this Act,
9including, but not limited to, the manufacture, distribution,
10supply, operation, placement, service, maintenance, or play of
11video gaming terminals and the distribution of profits and
12collection of revenues resulting from such play, and (2)
13exercised, to the fullest extent practicable, in cooperation
14with the local police department of the applicable municipality
15or, if these powers are exercised outside the boundaries of an
16incorporated municipality or within a municipality that does
17not have its own police department, in cooperation with the
18police department whose jurisdiction encompasses the
19applicable locality.
20(Source: P.A. 97-809, eff. 7-13-12.)
21 (230 ILCS 40/80)
22 Sec. 80. Applicability of Illinois Riverboat Gambling Act.
23The provisions of the Illinois Riverboat Gambling Act, and all
24rules promulgated thereunder, shall apply to the Video Gaming
25Act, except where there is a conflict between the 2 Acts. In

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1the event of a conflict between the 2 Acts, the provisions of
2the Illinois Gambling Act shall prevail. All provisions of the
3Uniform Penalty and Interest Act shall apply, as far as
4practicable, to the subject matter of this Act to the same
5extent as if such provisions were included herein.
6(Source: P.A. 96-37, eff. 7-13-09.)
7 (230 ILCS 40/81 new)
8 Sec. 81. Prohibition of political contributions from
9certain licensees and applicants.
10 (a) The General Assembly has a compelling interest in
11protecting the integrity of both the electoral process and the
12legislative process by preventing corruption and the
13appearance of corruption which may arise through permitting
14certain political campaign contributions by certain persons
15involved in the gaming industry and regulated by the State.
16Unlike most other regulated industries, gaming is especially
17susceptible to corruption and potential criminal influence.
18 In Illinois, only licensed gaming activities are legal and
19all other gaming activities are strictly prohibited. Given
20these circumstances, it is imperative to eliminate any
21potential corrupt influence in the gaming industry and the
22electoral process. Banning political campaign contributions by
23certain persons subject to this Section to State officeholders
24and candidates for such offices and to county and municipal
25officeholders and candidates for such offices in counties and

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1municipalities that receive financial benefits from gaming
2activities is necessary to prevent corruption and the
3appearance of corruption that may arise when political campaign
4contributions and gaming that is regulated by the State and
5that confers benefits on counties and municipalities are
6intermingled.
7 (b) As used in this Section:
8 "Affiliated entity" means (i) any corporate parent and each
9operating subsidiary of the business entity applying for or
10holding a license, (ii) each operating subsidiary of the
11corporate parent of the business entity applying for or holding
12a license, (iii) any organization recognized by the United
13States Internal Revenue Service as a tax-exempt organization
14described in Section 501(c) of the Internal Revenue Code of
151986 (or any successor provision of federal tax law)
16established by one or more business entities seeking or holding
17a license, any affiliated entity of such business entity, or
18any affiliated person of such business entity, and (iv) any
19political committee for which the business entity applying for
20or holding a license, or any 501(c) organization described in
21item (iii) related to that business entity, is the sponsoring
22entity, as defined in Section 9-3 of the Election Code. For
23purposes of item (iv), the funding of all business entities
24applying for or holding a license shall be aggregated in
25determining whether such political committee is an affiliated
26entity.

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1 "Affiliated person" means (i) any person with any ownership
2interest or distributive share in excess of 7.5% of any
3business entity applying for or holding a license, (ii)
4executive employees of any such business entity, (iii) any
5person designated as a person of significant influence and
6control under the Video Gaming Act, and (iv) the spouse of such
7persons.
8 "Business entity" means any entity doing business for
9profit, whether organized as a corporation, partnership, sole
10proprietorship, limited liability company, or partnership or
11otherwise.
12 "Contribution" means a contribution as defined in Section
139-1.4 of the Election Code.
14 "Declared candidate" means a person who has filed a
15statement of candidacy and petition for nomination or election
16in the principal office of the State Board of Elections, or in
17the office of the appropriate election authority for any county
18or municipality in which a video gaming terminal is located or
19proposed or which receives any video gaming revenue.
20 "Executive employee" means any person who is an officer or
21director or who fulfills duties equivalent to those of an
22officer or director of a business entity applying for or
23holding a license; and (ii) any employee of such business
24entity who is required to register under the Lobbyist
25Registration Act.
26 "License" means any terminal operator license issued

09800SB1739sam001- 516 -LRB098 10559 AMC 42403 a
1pursuant to this Act.
2 "Officeholder" means the Governor, Lieutenant Governor,
3Attorney General, Secretary of State, Comptroller, Treasurer,
4member of the General Assembly, or any officeholder in any
5county or municipality in which a video gaming terminal is
6located or proposed or which receives any video 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 Board shall have authority to suspend, revoke, or
19restrict the license and to impose civil penalties of up to
20$100,000, for each violation of this subsection (c). A notice
21of each such violation and the penalty imposed shall be
22published on the Board's website and in the Illinois Register.
23Payments received by the State pursuant to this subsection
24shall be deposited into the General Revenue Fund.
25 Any officeholder or declared candidate or any political
26committee affiliated with any officeholder or declared

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

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1other provisions or applications of this Section that can be
2given effect without the invalid application or provision.
3 Section 90-45. The Liquor Control Act of 1934 is amended by
4changing Sections 5-1 and 6-30 as follows:
5 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
6 Sec. 5-1. Licenses issued by the Illinois Liquor Control
7Commission shall be of the following classes:
8 (a) Manufacturer's license - Class 1. Distiller, Class 2.
9Rectifier, Class 3. Brewer, Class 4. First Class Wine
10Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
11First Class Winemaker, Class 7. Second Class Winemaker, Class
128. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1310. Craft Brewer,
14 (b) Distributor's license,
15 (c) Importing Distributor's license,
16 (d) Retailer's license,
17 (e) Special Event Retailer's license (not-for-profit),
18 (f) Railroad license,
19 (g) Boat license,
20 (h) Non-Beverage User's license,
21 (i) Wine-maker's premises license,
22 (j) Airplane license,
23 (k) Foreign importer's license,
24 (l) Broker's license,

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1 (m) Non-resident dealer's license,
2 (n) Brew Pub license,
3 (o) Auction liquor license,
4 (p) Caterer retailer license,
5 (q) Special use permit license,
6 (r) Winery shipper's license.
7 No person, firm, partnership, corporation, or other legal
8business entity that is engaged in the manufacturing of wine
9may concurrently obtain and hold a wine-maker's license and a
10wine manufacturer's license.
11 (a) A manufacturer's license shall allow the manufacture,
12importation in bulk, storage, distribution and sale of
13alcoholic liquor to persons without the State, as may be
14permitted by law and to licensees in this State as follows:
15 Class 1. A Distiller may make sales and deliveries of
16alcoholic liquor to distillers, rectifiers, importing
17distributors, distributors and non-beverage users and to no
18other licensees.
19 Class 2. A Rectifier, who is not a distiller, as defined
20herein, may make sales and deliveries of alcoholic liquor to
21rectifiers, importing distributors, distributors, retailers
22and non-beverage users and to no other licensees.
23 Class 3. A Brewer may make sales and deliveries of beer to
24importing distributors and distributors and may make sales as
25authorized under subsection (e) of Section 6-4 of this Act.
26 Class 4. A first class wine-manufacturer may make sales and

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1deliveries of up to 50,000 gallons of wine to manufacturers,
2importing distributors and distributors, and to no other
3licensees.
4 Class 5. A second class Wine manufacturer may make sales
5and deliveries of more than 50,000 gallons of wine to
6manufacturers, importing distributors and distributors and to
7no other licensees.
8 Class 6. A first-class wine-maker's license shall allow the
9manufacture of up to 50,000 gallons of wine per year, and the
10storage and sale of such wine to distributors in the State and
11to persons without the State, as may be permitted by law. A
12person who, prior to the effective date of this amendatory Act
13of the 95th General Assembly, is a holder of a first-class
14wine-maker's license and annually produces more than 25,000
15gallons of its own wine and who distributes its wine to
16licensed retailers shall cease this practice on or before July
171, 2008 in compliance with this amendatory Act of the 95th
18General Assembly.
19 Class 7. A second-class wine-maker's license shall allow
20the manufacture of between 50,000 and 150,000 gallons of wine
21per year, and the storage and sale of such wine to distributors
22in this State and to persons without the State, as may be
23permitted by law. A person who, prior to the effective date of
24this amendatory Act of the 95th General Assembly, is a holder
25of a second-class wine-maker's license and annually produces
26more than 25,000 gallons of its own wine and who distributes

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1its wine to licensed retailers shall cease this practice on or
2before July 1, 2008 in compliance with this amendatory Act of
3the 95th General Assembly.
4 Class 8. A limited wine-manufacturer may make sales and
5deliveries not to exceed 40,000 gallons of wine per year to
6distributors, and to non-licensees in accordance with the
7provisions of this Act.
8 Class 9. A craft distiller license shall allow the
9manufacture of up to 15,000 gallons of spirits by distillation
10per year and the storage of such spirits. If a craft distiller
11licensee is not affiliated with any other manufacturer, then
12the craft distiller licensee may sell such spirits to
13distributors in this State and non-licensees to the extent
14permitted by any exemption approved by the Commission pursuant
15to Section 6-4 of this Act.
16 Any craft distiller licensed under this Act who on the
17effective date of this amendatory Act of the 96th General
18Assembly was licensed as a distiller and manufactured no more
19spirits than permitted by this Section shall not be required to
20pay the initial licensing fee.
21 Class 10. A craft brewer's license, which may only be
22issued to a licensed brewer or licensed non-resident dealer,
23shall allow the manufacture of up to 465,000 gallons of beer
24per year. A craft brewer licensee may make sales and deliveries
25to importing distributors and distributors and to retail
26licensees in accordance with the conditions set forth in

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1paragraph (18) of subsection (a) of Section 3-12 of this Act.
2 (a-1) A manufacturer which is licensed in this State to
3make sales or deliveries of alcoholic liquor and which enlists
4agents, representatives, or individuals acting on its behalf
5who contact licensed retailers on a regular and continual basis
6in this State must register those agents, representatives, or
7persons acting on its behalf with the State Commission.
8 Registration of agents, representatives, or persons acting
9on behalf of a manufacturer is fulfilled by submitting a form
10to the Commission. The form shall be developed by the
11Commission and shall include the name and address of the
12applicant, the name and address of the manufacturer he or she
13represents, the territory or areas assigned to sell to or
14discuss pricing terms of alcoholic liquor, and any other
15questions deemed appropriate and necessary. All statements in
16the forms required to be made by law or by rule shall be deemed
17material, and any person who knowingly misstates any material
18fact under oath in an application is guilty of a Class B
19misdemeanor. Fraud, misrepresentation, false statements,
20misleading statements, evasions, or suppression of material
21facts in the securing of a registration are grounds for
22suspension or revocation of the registration.
23 (b) A distributor's license shall allow the wholesale
24purchase and storage of alcoholic liquors and sale of alcoholic
25liquors to licensees in this State and to persons without the
26State, as may be permitted by law.

09800SB1739sam001- 523 -LRB098 10559 AMC 42403 a
1 (c) An importing distributor's license may be issued to and
2held by those only who are duly licensed distributors, upon the
3filing of an application by a duly licensed distributor, with
4the Commission and the Commission shall, without the payment of
5any fee, immediately issue such importing distributor's
6license to the applicant, which shall allow the importation of
7alcoholic liquor by the licensee into this State from any point
8in the United States outside this State, and the purchase of
9alcoholic liquor in barrels, casks or other bulk containers and
10the bottling of such alcoholic liquors before resale thereof,
11but all bottles or containers so filled shall be sealed,
12labeled, stamped and otherwise made to comply with all
13provisions, rules and regulations governing manufacturers in
14the preparation and bottling of alcoholic liquors. The
15importing distributor's license shall permit such licensee to
16purchase alcoholic liquor from Illinois licensed non-resident
17dealers and foreign importers only.
18 (d) A retailer's license shall allow the licensee to sell
19and offer for sale at retail, only in the premises specified in
20the license, alcoholic liquor for use or consumption, but not
21for resale in any form. Nothing in this amendatory Act of the
2295th General Assembly shall deny, limit, remove, or restrict
23the ability of a holder of a retailer's license to transfer,
24deliver, or ship alcoholic liquor to the purchaser for use or
25consumption subject to any applicable local law or ordinance.
26Any retail license issued to a manufacturer shall only permit

09800SB1739sam001- 524 -LRB098 10559 AMC 42403 a
1the manufacturer to sell beer at retail on the premises
2actually occupied by the manufacturer. For the purpose of
3further describing the type of business conducted at a retail
4licensed premises, a retailer's licensee may be designated by
5the State Commission as (i) an on premise consumption retailer,
6(ii) an off premise sale retailer, or (iii) a combined on
7premise consumption and off premise sale retailer.
8 Notwithstanding any other provision of this subsection
9(d), a retail licensee may sell alcoholic liquors to a special
10event retailer licensee for resale to the extent permitted
11under subsection (e).
12 (e) A special event retailer's license (not-for-profit)
13shall permit the licensee to purchase alcoholic liquors from an
14Illinois licensed distributor (unless the licensee purchases
15less than $500 of alcoholic liquors for the special event, in
16which case the licensee may purchase the alcoholic liquors from
17a licensed retailer) and shall allow the licensee to sell and
18offer for sale, at retail, alcoholic liquors for use or
19consumption, but not for resale in any form and only at the
20location and on the specific dates designated for the special
21event in the license. An applicant for a special event retailer
22license must (i) furnish with the application: (A) a resale
23number issued under Section 2c of the Retailers' Occupation Tax
24Act or evidence that the applicant is registered under Section
252a of the Retailers' Occupation Tax Act, (B) a current, valid
26exemption identification number issued under Section 1g of the

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1Retailers' Occupation Tax Act, and a certification to the
2Commission that the purchase of alcoholic liquors will be a
3tax-exempt purchase, or (C) a statement that the applicant is
4not registered under Section 2a of the Retailers' Occupation
5Tax Act, does not hold a resale number under Section 2c of the
6Retailers' Occupation Tax Act, and does not hold an exemption
7number under Section 1g of the Retailers' Occupation Tax Act,
8in which event the Commission shall set forth on the special
9event retailer's license a statement to that effect; (ii)
10submit with the application proof satisfactory to the State
11Commission that the applicant will provide dram shop liability
12insurance in the maximum limits; and (iii) show proof
13satisfactory to the State Commission that the applicant has
14obtained local authority approval.
15 (f) A railroad license shall permit the licensee to import
16alcoholic liquors into this State from any point in the United
17States outside this State and to store such alcoholic liquors
18in this State; to make wholesale purchases of alcoholic liquors
19directly from manufacturers, foreign importers, distributors
20and importing distributors from within or outside this State;
21and to store such alcoholic liquors in this State; provided
22that the above powers may be exercised only in connection with
23the importation, purchase or storage of alcoholic liquors to be
24sold or dispensed on a club, buffet, lounge or dining car
25operated on an electric, gas or steam railway in this State;
26and provided further, that railroad licensees exercising the

09800SB1739sam001- 526 -LRB098 10559 AMC 42403 a
1above powers shall be subject to all provisions of Article VIII
2of this Act as applied to importing distributors. A railroad
3license shall also permit the licensee to sell or dispense
4alcoholic liquors on any club, buffet, lounge or dining car
5operated on an electric, gas or steam railway regularly
6operated by a common carrier in this State, but shall not
7permit the sale for resale of any alcoholic liquors to any
8licensee within this State. A license shall be obtained for
9each car in which such sales are made.
10 (g) A boat license shall allow the sale of alcoholic liquor
11in individual drinks, on any passenger boat regularly operated
12as a common carrier on navigable waters in this State or on any
13riverboat operated under the Illinois Riverboat Gambling Act,
14which boat or riverboat maintains a public dining room or
15restaurant thereon.
16 (h) A non-beverage user's license shall allow the licensee
17to purchase alcoholic liquor from a licensed manufacturer or
18importing distributor, without the imposition of any tax upon
19the business of such licensed manufacturer or importing
20distributor as to such alcoholic liquor to be used by such
21licensee solely for the non-beverage purposes set forth in
22subsection (a) of Section 8-1 of this Act, and such licenses
23shall be divided and classified and shall permit the purchase,
24possession and use of limited and stated quantities of
25alcoholic liquor as follows:
26Class 1, not to exceed ......................... 500 gallons

09800SB1739sam001- 527 -LRB098 10559 AMC 42403 a
1Class 2, not to exceed ....................... 1,000 gallons
2Class 3, not to exceed ....................... 5,000 gallons
3Class 4, not to exceed ...................... 10,000 gallons
4Class 5, not to exceed ....................... 50,000 gallons
5 (i) A wine-maker's premises license shall allow a licensee
6that concurrently holds a first-class wine-maker's license to
7sell and offer for sale at retail in the premises specified in
8such license not more than 50,000 gallons of the first-class
9wine-maker's wine that is made at the first-class wine-maker's
10licensed premises per year for use or consumption, but not for
11resale in any form. A wine-maker's premises license shall allow
12a licensee who concurrently holds a second-class wine-maker's
13license to sell and offer for sale at retail in the premises
14specified in such license up to 100,000 gallons of the
15second-class wine-maker's wine that is made at the second-class
16wine-maker's licensed premises per year for use or consumption
17but not for resale in any form. A wine-maker's premises license
18shall allow a licensee that concurrently holds a first-class
19wine-maker's license or a second-class wine-maker's license to
20sell and offer for sale at retail at the premises specified in
21the wine-maker's premises license, for use or consumption but
22not for resale in any form, any beer, wine, and spirits
23purchased from a licensed distributor. Upon approval from the
24State Commission, a wine-maker's premises license shall allow
25the licensee to sell and offer for sale at (i) the wine-maker's
26licensed premises and (ii) at up to 2 additional locations for

09800SB1739sam001- 528 -LRB098 10559 AMC 42403 a
1use and consumption and not for resale. Each location shall
2require additional licensing per location as specified in
3Section 5-3 of this Act. A wine-maker's premises licensee shall
4secure liquor liability insurance coverage in an amount at
5least equal to the maximum liability amounts set forth in
6subsection (a) of Section 6-21 of this Act.
7 (j) An airplane license shall permit the licensee to import
8alcoholic liquors into this State from any point in the United
9States outside this State and to store such alcoholic liquors
10in this State; to make wholesale purchases of alcoholic liquors
11directly from manufacturers, foreign importers, distributors
12and importing distributors from within or outside this State;
13and to store such alcoholic liquors in this State; provided
14that the above powers may be exercised only in connection with
15the importation, purchase or storage of alcoholic liquors to be
16sold or dispensed on an airplane; and provided further, that
17airplane licensees exercising the above powers shall be subject
18to all provisions of Article VIII of this Act as applied to
19importing distributors. An airplane licensee shall also permit
20the sale or dispensing of alcoholic liquors on any passenger
21airplane regularly operated by a common carrier in this State,
22but shall not permit the sale for resale of any alcoholic
23liquors to any licensee within this State. A single airplane
24license shall be required of an airline company if liquor
25service is provided on board aircraft in this State. The annual
26fee for such license shall be as determined in Section 5-3.

09800SB1739sam001- 529 -LRB098 10559 AMC 42403 a
1 (k) A foreign importer's license shall permit such licensee
2to purchase alcoholic liquor from Illinois licensed
3non-resident dealers only, and to import alcoholic liquor other
4than in bulk from any point outside the United States and to
5sell such alcoholic liquor to Illinois licensed importing
6distributors and to no one else in Illinois; provided that (i)
7the foreign importer registers with the State Commission every
8brand of alcoholic liquor that it proposes to sell to Illinois
9licensees during the license period, (ii) the foreign importer
10complies with all of the provisions of Section 6-9 of this Act
11with respect to registration of such Illinois licensees as may
12be granted the right to sell such brands at wholesale, and
13(iii) the foreign importer complies with the provisions of
14Sections 6-5 and 6-6 of this Act to the same extent that these
15provisions apply to manufacturers.
16 (l) (i) A broker's license shall be required of all persons
17who solicit orders for, offer to sell or offer to supply
18alcoholic liquor to retailers in the State of Illinois, or who
19offer to retailers to ship or cause to be shipped or to make
20contact with distillers, rectifiers, brewers or manufacturers
21or any other party within or without the State of Illinois in
22order that alcoholic liquors be shipped to a distributor,
23importing distributor or foreign importer, whether such
24solicitation or offer is consummated within or without the
25State of Illinois.
26 No holder of a retailer's license issued by the Illinois

09800SB1739sam001- 530 -LRB098 10559 AMC 42403 a
1Liquor Control Commission shall purchase or receive any
2alcoholic liquor, the order for which was solicited or offered
3for sale to such retailer by a broker unless the broker is the
4holder of a valid broker's license.
5 The broker shall, upon the acceptance by a retailer of the
6broker's solicitation of an order or offer to sell or supply or
7deliver or have delivered alcoholic liquors, promptly forward
8to the Illinois Liquor Control Commission a notification of
9said transaction in such form as the Commission may by
10regulations prescribe.
11 (ii) A broker's license shall be required of a person
12within this State, other than a retail licensee, who, for a fee
13or commission, promotes, solicits, or accepts orders for
14alcoholic liquor, for use or consumption and not for resale, to
15be shipped from this State and delivered to residents outside
16of this State by an express company, common carrier, or
17contract carrier. This Section does not apply to any person who
18promotes, solicits, or accepts orders for wine as specifically
19authorized in Section 6-29 of this Act.
20 A broker's license under this subsection (l) shall not
21entitle the holder to buy or sell any alcoholic liquors for his
22own account or to take or deliver title to such alcoholic
23liquors.
24 This subsection (l) shall not apply to distributors,
25employees of distributors, or employees of a manufacturer who
26has registered the trademark, brand or name of the alcoholic

09800SB1739sam001- 531 -LRB098 10559 AMC 42403 a
1liquor pursuant to Section 6-9 of this Act, and who regularly
2sells such alcoholic liquor in the State of Illinois only to
3its registrants thereunder.
4 Any agent, representative, or person subject to
5registration pursuant to subsection (a-1) of this Section shall
6not be eligible to receive a broker's license.
7 (m) A non-resident dealer's license shall permit such
8licensee to ship into and warehouse alcoholic liquor into this
9State from any point outside of this State, and to sell such
10alcoholic liquor to Illinois licensed foreign importers and
11importing distributors and to no one else in this State;
12provided that (i) said non-resident dealer shall register with
13the Illinois Liquor Control Commission each and every brand of
14alcoholic liquor which it proposes to sell to Illinois
15licensees during the license period, (ii) it shall comply with
16all of the provisions of Section 6-9 hereof with respect to
17registration of such Illinois licensees as may be granted the
18right to sell such brands at wholesale, and (iii) the
19non-resident dealer shall comply with the provisions of
20Sections 6-5 and 6-6 of this Act to the same extent that these
21provisions apply to manufacturers.
22 (n) A brew pub license shall allow the licensee (i) to
23manufacture beer only on the premises specified in the license,
24(ii) to make sales of the beer manufactured on the premises or,
25with the approval of the Commission, beer manufactured on
26another brew pub licensed premises that is substantially owned

09800SB1739sam001- 532 -LRB098 10559 AMC 42403 a
1and operated by the same licensee to importing distributors,
2distributors, and to non-licensees for use and consumption,
3(iii) to store the beer upon the premises, and (iv) to sell and
4offer for sale at retail from the licensed premises, provided
5that a brew pub licensee shall not sell for off-premises
6consumption more than 50,000 gallons per year. A person who
7holds a brew pub license may simultaneously hold a craft brewer
8license if he or she otherwise qualifies for the craft brewer
9license and the craft brewer license is for a location separate
10from the brew pub's licensed premises. A brew pub license shall
11permit a person who has received prior approval from the
12Commission to annually transfer no more than a total of 50,000
13gallons of beer manufactured on premises to all other licensed
14brew pubs that are substantially owned and operated by the same
15person.
16 (o) A caterer retailer license shall allow the holder to
17serve alcoholic liquors as an incidental part of a food service
18that serves prepared meals which excludes the serving of snacks
19as the primary meal, either on or off-site whether licensed or
20unlicensed.
21 (p) An auction liquor license shall allow the licensee to
22sell and offer for sale at auction wine and spirits for use or
23consumption, or for resale by an Illinois liquor licensee in
24accordance with provisions of this Act. An auction liquor
25license will be issued to a person and it will permit the
26auction liquor licensee to hold the auction anywhere in the

09800SB1739sam001- 533 -LRB098 10559 AMC 42403 a
1State. An auction liquor license must be obtained for each
2auction at least 14 days in advance of the auction date.
3 (q) A special use permit license shall allow an Illinois
4licensed retailer to transfer a portion of its alcoholic liquor
5inventory from its retail licensed premises to the premises
6specified in the license hereby created, and to sell or offer
7for sale at retail, only in the premises specified in the
8license hereby created, the transferred alcoholic liquor for
9use or consumption, but not for resale in any form. A special
10use permit license may be granted for the following time
11periods: one day or less; 2 or more days to a maximum of 15 days
12per location in any 12 month period. An applicant for the
13special use permit license must also submit with the
14application proof satisfactory to the State Commission that the
15applicant will provide dram shop liability insurance to the
16maximum limits and have local authority approval.
17 (r) A winery shipper's license shall allow a person with a
18first-class or second-class wine manufacturer's license, a
19first-class or second-class wine-maker's license, or a limited
20wine manufacturer's license or who is licensed to make wine
21under the laws of another state to ship wine made by that
22licensee directly to a resident of this State who is 21 years
23of age or older for that resident's personal use and not for
24resale. Prior to receiving a winery shipper's license, an
25applicant for the license must provide the Commission with a
26true copy of its current license in any state in which it is

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1licensed as a manufacturer of wine. An applicant for a winery
2shipper's license must also complete an application form that
3provides any other information the Commission deems necessary.
4The application form shall include an acknowledgement
5consenting to the jurisdiction of the Commission, the Illinois
6Department of Revenue, and the courts of this State concerning
7the enforcement of this Act and any related laws, rules, and
8regulations, including authorizing the Department of Revenue
9and the Commission to conduct audits for the purpose of
10ensuring compliance with this amendatory Act.
11 A winery shipper licensee must pay to the Department of
12Revenue the State liquor gallonage tax under Section 8-1 for
13all wine that is sold by the licensee and shipped to a person
14in this State. For the purposes of Section 8-1, a winery
15shipper licensee shall be taxed in the same manner as a
16manufacturer of wine. A licensee who is not otherwise required
17to register under the Retailers' Occupation Tax Act must
18register under the Use Tax Act to collect and remit use tax to
19the Department of Revenue for all gallons of wine that are sold
20by the licensee and shipped to persons in this State. If a
21licensee fails to remit the tax imposed under this Act in
22accordance with the provisions of Article VIII of this Act, the
23winery shipper's license shall be revoked in accordance with
24the provisions of Article VII of this Act. If a licensee fails
25to properly register and remit tax under the Use Tax Act or the
26Retailers' Occupation Tax Act for all wine that is sold by the

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1winery shipper and shipped to persons in this State, the winery
2shipper's license shall be revoked in accordance with the
3provisions of Article VII of this Act.
4 A winery shipper licensee must collect, maintain, and
5submit to the Commission on a semi-annual basis the total
6number of cases per resident of wine shipped to residents of
7this State. A winery shipper licensed under this subsection (r)
8must comply with the requirements of Section 6-29 of this
9amendatory Act.
10(Source: P.A. 96-1367, eff. 7-28-10; 97-5, eff. 6-1-11; 97-455,
11eff. 8-19-11; 97-813, eff. 7-13-12.)
12 (235 ILCS 5/6-30) (from Ch. 43, par. 144f)
13 Sec. 6-30. Notwithstanding any other provision of this Act,
14the Illinois Gaming Board shall have exclusive authority to
15establish the hours for sale and consumption of alcoholic
16liquor on board a riverboat during riverboat gambling
17excursions and in a casino conducted in accordance with the
18Illinois Riverboat Gambling Act.
19(Source: P.A. 87-826.)
20 Section 90-50. The Criminal Code of 2012 is amended by
21changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as
22follows:
23 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)

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1 Sec. 28-1. Gambling.
2 (a) A person commits gambling when he or she:
3 (1) knowingly plays a game of chance or skill for money
4 or other thing of value, unless excepted in subsection (b)
5 of this Section;
6 (2) knowingly makes a wager upon the result of any
7 game, contest, or any political nomination, appointment or
8 election;
9 (3) knowingly operates, keeps, owns, uses, purchases,
10 exhibits, rents, sells, bargains for the sale or lease of,
11 manufactures or distributes any gambling device;
12 (4) contracts to have or give himself or herself or
13 another the option to buy or sell, or contracts to buy or
14 sell, at a future time, any grain or other commodity
15 whatsoever, or any stock or security of any company, where
16 it is at the time of making such contract intended by both
17 parties thereto that the contract to buy or sell, or the
18 option, whenever exercised, or the contract resulting
19 therefrom, shall be settled, not by the receipt or delivery
20 of such property, but by the payment only of differences in
21 prices thereof; however, the issuance, purchase, sale,
22 exercise, endorsement or guarantee, by or through a person
23 registered with the Secretary of State pursuant to Section
24 8 of the Illinois Securities Law of 1953, or by or through
25 a person exempt from such registration under said Section
26 8, of a put, call, or other option to buy or sell

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1 securities which have been registered with the Secretary of
2 State or which are exempt from such registration under
3 Section 3 of the Illinois Securities Law of 1953 is not
4 gambling within the meaning of this paragraph (4);
5 (5) knowingly owns or possesses any book, instrument or
6 apparatus by means of which bets or wagers have been, or
7 are, recorded or registered, or knowingly possesses any
8 money which he has received in the course of a bet or
9 wager;
10 (6) knowingly sells pools upon the result of any game
11 or contest of skill or chance, political nomination,
12 appointment or election;
13 (7) knowingly sets up or promotes any lottery or sells,
14 offers to sell or transfers any ticket or share for any
15 lottery;
16 (8) knowingly sets up or promotes any policy game or
17 sells, offers to sell or knowingly possesses or transfers
18 any policy ticket, slip, record, document or other similar
19 device;
20 (9) knowingly drafts, prints or publishes any lottery
21 ticket or share, or any policy ticket, slip, record,
22 document or similar device, except for such activity
23 related to lotteries, bingo games and raffles authorized by
24 and conducted in accordance with the laws of Illinois or
25 any other state or foreign government;
26 (10) knowingly advertises any lottery or policy game,

09800SB1739sam001- 538 -LRB098 10559 AMC 42403 a
1 except for such activity related to lotteries, bingo games
2 and raffles authorized by and conducted in accordance with
3 the laws of Illinois or any other state;
4 (11) knowingly transmits information as to wagers,
5 betting odds, or changes in betting odds by telephone,
6 telegraph, radio, semaphore or similar means; or knowingly
7 installs or maintains equipment for the transmission or
8 receipt of such information; except that nothing in this
9 subdivision (11) prohibits transmission or receipt of such
10 information for use in news reporting of sporting events or
11 contests; or
12 (12) knowingly establishes, maintains, or operates an
13 Internet site that permits a person to play a game of
14 chance or skill for money or other thing of value by means
15 of the Internet or to make a wager upon the result of any
16 game, contest, political nomination, appointment, or
17 election by means of the Internet. This item (12) does not
18 apply to activities referenced in items (6) and (6.1) of
19 subsection (b) of this Section.
20 (b) Participants in any of the following activities shall
21not be convicted of gambling:
22 (1) Agreements to compensate for loss caused by the
23 happening of chance including without limitation contracts
24 of indemnity or guaranty and life or health or accident
25 insurance.
26 (2) Offers of prizes, award or compensation to the

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1 actual contestants in any bona fide contest for the
2 determination of skill, speed, strength or endurance or to
3 the owners of animals or vehicles entered in such contest.
4 (3) Pari-mutuel betting as authorized by the law of
5 this State.
6 (4) Manufacture of gambling devices, including the
7 acquisition of essential parts therefor and the assembly
8 thereof, for transportation in interstate or foreign
9 commerce to any place outside this State when such
10 transportation is not prohibited by any applicable Federal
11 law; or the manufacture, distribution, or possession of
12 video gaming terminals, as defined in the Video Gaming Act,
13 by manufacturers, distributors, and terminal operators
14 licensed to do so under the Video Gaming Act.
15 (5) The game commonly known as "bingo", when conducted
16 in accordance with the Bingo License and Tax Act.
17 (6) Lotteries when conducted by the State of Illinois
18 in accordance with the Illinois Lottery Law. This exemption
19 includes any activity conducted by the Department of
20 Revenue to sell lottery tickets pursuant to the provisions
21 of the Illinois Lottery Law and its rules.
22 (6.1) The purchase of lottery tickets through the
23 Internet for a lottery conducted by the State of Illinois
24 under the program established in Section 7.12 of the
25 Illinois Lottery Law.
26 (7) Possession of an antique slot machine that is

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1 neither used nor intended to be used in the operation or
2 promotion of any unlawful gambling activity or enterprise.
3 For the purpose of this subparagraph (b)(7), an antique
4 slot machine is one manufactured 25 years ago or earlier.
5 (8) Raffles when conducted in accordance with the
6 Raffles Act.
7 (9) Charitable games when conducted in accordance with
8 the Charitable Games Act.
9 (10) Pull tabs and jar games when conducted under the
10 Illinois Pull Tabs and Jar Games Act.
11 (11) Gambling games conducted on riverboats when
12 authorized by the Illinois Riverboat Gambling Act.
13 (12) Video gaming terminal games at a licensed
14 establishment, licensed truck stop establishment, licensed
15 fraternal establishment, or licensed veterans
16 establishment when conducted in accordance with the Video
17 Gaming Act.
18 (13) Games of skill or chance where money or other
19 things of value can be won but no payment or purchase is
20 required to participate.
21 (c) Sentence.
22 Gambling is a Class A misdemeanor. A second or subsequent
23conviction under subsections (a)(3) through (a)(12), is a Class
244 felony.
25 (d) Circumstantial evidence.
26 In prosecutions under this Section circumstantial evidence

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1shall have the same validity and weight as in any criminal
2prosecution.
3(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
496-1203, eff. 7-22-10; 97-1108, eff. 1-1-13.)
5 (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)
6 Sec. 28-1.1. Syndicated gambling.
7 (a) Declaration of Purpose. Recognizing the close
8relationship between professional gambling and other organized
9crime, it is declared to be the policy of the legislature to
10restrain persons from engaging in the business of gambling for
11profit in this State. This Section shall be liberally construed
12and administered with a view to carrying out this policy.
13 (b) A person commits syndicated gambling when he or she
14operates a "policy game" or engages in the business of
15bookmaking.
16 (c) A person "operates a policy game" when he or she
17knowingly uses any premises or property for the purpose of
18receiving or knowingly does receive from what is commonly
19called "policy":
20 (1) money from a person other than the bettor or player
21 whose bets or plays are represented by the money; or
22 (2) written "policy game" records, made or used over
23 any period of time, from a person other than the bettor or
24 player whose bets or plays are represented by the written
25 record.

09800SB1739sam001- 542 -LRB098 10559 AMC 42403 a
1 (d) A person engages in bookmaking when he or she knowingly
2receives or accepts more than five bets or wagers upon the
3result of any trials or contests of skill, speed or power of
4endurance or upon any lot, chance, casualty, unknown or
5contingent event whatsoever, which bets or wagers shall be of
6such size that the total of the amounts of money paid or
7promised to be paid to the bookmaker on account thereof shall
8exceed $2,000. Bookmaking is the receiving or accepting of bets
9or wagers regardless of the form or manner in which the
10bookmaker records them.
11 (e) Participants in any of the following activities shall
12not be convicted of syndicated gambling:
13 (1) Agreements to compensate for loss caused by the
14 happening of chance including without limitation contracts
15 of indemnity or guaranty and life or health or accident
16 insurance;
17 (2) Offers of prizes, award or compensation to the
18 actual contestants in any bona fide contest for the
19 determination of skill, speed, strength or endurance or to
20 the owners of animals or vehicles entered in the contest;
21 (3) Pari-mutuel betting as authorized by law of this
22 State;
23 (4) Manufacture of gambling devices, including the
24 acquisition of essential parts therefor and the assembly
25 thereof, for transportation in interstate or foreign
26 commerce to any place outside this State when the

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1 transportation is not prohibited by any applicable Federal
2 law;
3 (5) Raffles when conducted in accordance with the
4 Raffles Act;
5 (6) Gambling games conducted on riverboats, in
6 casinos, or at electronic gaming facilities when
7 authorized by the Illinois Riverboat Gambling Act; and
8 (7) Video gaming terminal games at a licensed
9 establishment, licensed truck stop establishment, licensed
10 fraternal establishment, or licensed veterans
11 establishment when conducted in accordance with the Video
12 Gaming Act.
13 (f) Sentence. Syndicated gambling is a Class 3 felony.
14(Source: P.A. 96-34, eff. 7-13-09; 97-1108, eff. 1-1-13.)
15 (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
16 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
17any real estate, vehicle, boat or any other property whatsoever
18used for the purposes of gambling other than gambling conducted
19in the manner authorized by the Illinois Riverboat Gambling Act
20or the Video Gaming Act. Any person who knowingly permits any
21premises or property owned or occupied by him or under his
22control to be used as a gambling place commits a Class A
23misdemeanor. Each subsequent offense is a Class 4 felony. When
24any premises is determined by the circuit court to be a
25gambling place:

09800SB1739sam001- 544 -LRB098 10559 AMC 42403 a
1 (a) Such premises is a public nuisance and may be proceeded
2against as such, and
3 (b) All licenses, permits or certificates issued by the
4State of Illinois or any subdivision or public agency thereof
5authorizing the serving of food or liquor on such premises
6shall be void; and no license, permit or certificate so
7cancelled shall be reissued for such premises for a period of
860 days thereafter; nor shall any person convicted of keeping a
9gambling place be reissued such license for one year from his
10conviction and, after a second conviction of keeping a gambling
11place, any such person shall not be reissued such license, and
12 (c) Such premises of any person who knowingly permits
13thereon a violation of any Section of this Article shall be
14held liable for, and may be sold to pay any unsatisfied
15judgment that may be recovered and any unsatisfied fine that
16may be levied under any Section of this Article.
17(Source: P.A. 96-34, eff. 7-13-09.)
18 (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
19 Sec. 28-5. Seizure of gambling devices and gambling funds.
20 (a) Every device designed for gambling which is incapable
21of lawful use or every device used unlawfully for gambling
22shall be considered a "gambling device", and shall be subject
23to seizure, confiscation and destruction by the Department of
24State Police or by any municipal, or other local authority,
25within whose jurisdiction the same may be found. As used in

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1this Section, a "gambling device" includes any slot machine,
2and includes any machine or device constructed for the
3reception of money or other thing of value and so constructed
4as to return, or to cause someone to return, on chance to the
5player thereof money, property or a right to receive money or
6property. With the exception of any device designed for
7gambling which is incapable of lawful use, no gambling device
8shall be forfeited or destroyed unless an individual with a
9property interest in said device knows of the unlawful use of
10the device.
11 (b) Every gambling device shall be seized and forfeited to
12the county wherein such seizure occurs. Any money or other
13thing of value integrally related to acts of gambling shall be
14seized and forfeited to the county wherein such seizure occurs.
15 (c) If, within 60 days after any seizure pursuant to
16subparagraph (b) of this Section, a person having any property
17interest in the seized property is charged with an offense, the
18court which renders judgment upon such charge shall, within 30
19days after such judgment, conduct a forfeiture hearing to
20determine whether such property was a gambling device at the
21time of seizure. Such hearing shall be commenced by a written
22petition by the State, including material allegations of fact,
23the name and address of every person determined by the State to
24have any property interest in the seized property, a
25representation that written notice of the date, time and place
26of such hearing has been mailed to every such person by

09800SB1739sam001- 546 -LRB098 10559 AMC 42403 a
1certified mail at least 10 days before such date, and a request
2for forfeiture. Every such person may appear as a party and
3present evidence at such hearing. The quantum of proof required
4shall be a preponderance of the evidence, and the burden of
5proof shall be on the State. If the court determines that the
6seized property was a gambling device at the time of seizure,
7an order of forfeiture and disposition of the seized property
8shall be entered: a gambling device shall be received by the
9State's Attorney, who shall effect its destruction, except that
10valuable parts thereof may be liquidated and the resultant
11money shall be deposited in the general fund of the county
12wherein such seizure occurred; money and other things of value
13shall be received by the State's Attorney and, upon
14liquidation, shall be deposited in the general fund of the
15county wherein such seizure occurred. However, in the event
16that a defendant raises the defense that the seized slot
17machine is an antique slot machine described in subparagraph
18(b) (7) of Section 28-1 of this Code and therefore he is exempt
19from the charge of a gambling activity participant, the seized
20antique slot machine shall not be destroyed or otherwise
21altered until a final determination is made by the Court as to
22whether it is such an antique slot machine. Upon a final
23determination by the Court of this question in favor of the
24defendant, such slot machine shall be immediately returned to
25the defendant. Such order of forfeiture and disposition shall,
26for the purposes of appeal, be a final order and judgment in a

09800SB1739sam001- 547 -LRB098 10559 AMC 42403 a
1civil proceeding.
2 (d) If a seizure pursuant to subparagraph (b) of this
3Section is not followed by a charge pursuant to subparagraph
4(c) of this Section, or if the prosecution of such charge is
5permanently terminated or indefinitely discontinued without
6any judgment of conviction or acquittal (1) the State's
7Attorney shall commence an in rem proceeding for the forfeiture
8and destruction of a gambling device, or for the forfeiture and
9deposit in the general fund of the county of any seized money
10or other things of value, or both, in the circuit court and (2)
11any person having any property interest in such seized gambling
12device, money or other thing of value may commence separate
13civil proceedings in the manner provided by law.
14 (e) Any gambling device displayed for sale to a riverboat
15gambling operation, casino gambling operation, or electronic
16gaming facility or used to train occupational licensees of a
17riverboat gambling operation, casino gambling operation, or
18electronic gaming facility as authorized under the Illinois
19Riverboat Gambling Act is exempt from seizure under this
20Section.
21 (f) Any gambling equipment, devices and supplies provided
22by a licensed supplier in accordance with the Illinois
23Riverboat Gambling Act which are removed from a the riverboat,
24casino, or electronic gaming facility for repair are exempt
25from seizure under this Section.
26(Source: P.A. 87-826.)

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1 (720 ILCS 5/28-7) (from Ch. 38, par. 28-7)
2 Sec. 28-7. Gambling contracts void.
3 (a) All promises, notes, bills, bonds, covenants,
4contracts, agreements, judgments, mortgages, or other
5securities or conveyances made, given, granted, drawn, or
6entered into, or executed by any person whatsoever, where the
7whole or any part of the consideration thereof is for any money
8or thing of value, won or obtained in violation of any Section
9of this Article are null and void.
10 (b) Any obligation void under this Section may be set aside
11and vacated by any court of competent jurisdiction, upon a
12complaint filed for that purpose, by the person so granting,
13giving, entering into, or executing the same, or by his
14executors or administrators, or by any creditor, heir, legatee,
15purchaser or other person interested therein; or if a judgment,
16the same may be set aside on motion of any person stated above,
17on due notice thereof given.
18 (c) No assignment of any obligation void under this Section
19may in any manner affect the defense of the person giving,
20granting, drawing, entering into or executing such obligation,
21or the remedies of any person interested therein.
22 (d) This Section shall not prevent a licensed owner of a
23riverboat gambling operation, casino gambling operation, or an
24electronic gaming licensee under the Illinois Gambling Act and
25the Illinois Horse Racing Act of 1975 from instituting a cause

09800SB1739sam001- 549 -LRB098 10559 AMC 42403 a
1of action to collect any amount due and owing under an
2extension of credit to a riverboat gambling patron as
3authorized under Section 11.1 of the Illinois Riverboat
4Gambling Act.
5(Source: P.A. 87-826.)
6 Section 90-55. The Eminent Domain Act is amended by adding
7Section 15-5-47 as follows:
8 (735 ILCS 30/15-5-47 new)
9 Sec. 15-5-47. Eminent domain powers in new Acts. The
10following provisions of law may include express grants of the
11power to acquire property by condemnation or eminent domain:
12 Chicago Casino Development Authority Act; City of Chicago; for
13 the purposes of the Act.
14 Section 90-60. The Payday Loan Reform Act is amended by
15changing Section 3-5 as follows:
16 (815 ILCS 122/3-5)
17 Sec. 3-5. Licensure.
18 (a) A license to make a payday loan shall state the
19address, including city and state, at which the business is to
20be conducted and shall state fully the name of the licensee.
21The license shall be conspicuously posted in the place of

09800SB1739sam001- 550 -LRB098 10559 AMC 42403 a
1business of the licensee and shall not be transferable or
2assignable.
3 (b) An application for a license shall be in writing and in
4a form prescribed by the Secretary. The Secretary may not issue
5a payday loan license unless and until the following findings
6are made:
7 (1) that the financial responsibility, experience,
8 character, and general fitness of the applicant are such as
9 to command the confidence of the public and to warrant the
10 belief that the business will be operated lawfully and
11 fairly and within the provisions and purposes of this Act;
12 and
13 (2) that the applicant has submitted such other
14 information as the Secretary may deem necessary.
15 (c) A license shall be issued for no longer than one year,
16and no renewal of a license may be provided if a licensee has
17substantially violated this Act and has not cured the violation
18to the satisfaction of the Department.
19 (d) A licensee shall appoint, in writing, the Secretary as
20attorney-in-fact upon whom all lawful process against the
21licensee may be served with the same legal force and validity
22as if served on the licensee. A copy of the written
23appointment, duly certified, shall be filed in the office of
24the Secretary, and a copy thereof certified by the Secretary
25shall be sufficient evidence to subject a licensee to
26jurisdiction in a court of law. This appointment shall remain

09800SB1739sam001- 551 -LRB098 10559 AMC 42403 a
1in effect while any liability remains outstanding in this State
2against the licensee. When summons is served upon the Secretary
3as attorney-in-fact for a licensee, the Secretary shall
4immediately notify the licensee by registered mail, enclosing
5the summons and specifying the hour and day of service.
6 (e) A licensee must pay an annual fee of $1,000. In
7addition to the license fee, the reasonable expense of any
8examination or hearing by the Secretary under any provisions of
9this Act shall be borne by the licensee. If a licensee fails to
10renew its license by December 31, its license shall
11automatically expire; however, the Secretary, in his or her
12discretion, may reinstate an expired license upon:
13 (1) payment of the annual fee within 30 days of the
14 date of expiration; and
15 (2) proof of good cause for failure to renew.
16 (f) Not more than one place of business shall be maintained
17under the same license, but the Secretary may issue more than
18one license to the same licensee upon compliance with all the
19provisions of this Act governing issuance of a single license.
20The location, except those locations already in existence as of
21June 1, 2005, may not be within one mile of a horse race track
22subject to the Illinois Horse Racing Act of 1975, within one
23mile of a facility at which gambling is conducted under the
24Illinois Riverboat Gambling Act, within one mile of the
25location at which a riverboat subject to the Illinois Riverboat
26Gambling Act docks, or within one mile of any State of Illinois

09800SB1739sam001- 552 -LRB098 10559 AMC 42403 a
1or United States military base or naval installation.
2 (g) No licensee shall conduct the business of making loans
3under this Act within any office, suite, room, or place of
4business in which (1) any loans are offered or made under the
5Consumer Installment Loan Act other than title secured loans as
6defined in subsection (a) of Section 15 of the Consumer
7Installment Loan Act and governed by Title 38, Section 110.330
8of the Illinois Administrative Code or (2) any other business
9is solicited or engaged in unless the other business is
10licensed by the Department or, in the opinion of the Secretary,
11the other business would not be contrary to the best interests
12of consumers and is authorized by the Secretary in writing.
13 (g-5) Notwithstanding subsection (g) of this Section, a
14licensee may obtain a license under the Consumer Installment
15Loan Act (CILA) for the exclusive purpose and use of making
16title secured loans, as defined in subsection (a) of Section 15
17of CILA and governed by Title 38, Section 110.300 of the
18Illinois Administrative Code. A licensee may continue to
19service Consumer Installment Loan Act loans that were
20outstanding as of the effective date of this amendatory Act of
21the 96th General Assembly.
22 (h) The Secretary shall maintain a list of licensees that
23shall be available to interested consumers and lenders and the
24public. The Secretary shall maintain a toll-free number whereby
25consumers may obtain information about licensees. The
26Secretary shall also establish a complaint process under which

09800SB1739sam001- 553 -LRB098 10559 AMC 42403 a
1an aggrieved consumer may file a complaint against a licensee
2or non-licensee who violates any provision of this Act.
3(Source: P.A. 96-936, eff. 3-21-11.)
4 Section 90-65. The Travel Promotion Consumer Protection
5Act is amended by changing Section 2 as follows:
6 (815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)
7 Sec. 2. Definitions.
8 (a) "Travel promoter" means a person, including a tour
9operator, who sells, provides, furnishes, contracts for,
10arranges or advertises that he or she will arrange wholesale or
11retail transportation by air, land, sea or navigable stream,
12either separately or in conjunction with other services.
13"Travel promoter" does not include (1) an air carrier; (2) a
14sea carrier; (3) an officially appointed agent of an air
15carrier who is a member in good standing of the Airline
16Reporting Corporation; (4) a travel promoter who has in force
17$1,000,000 or more of liability insurance coverage for
18professional errors and omissions and a surety bond or
19equivalent surety in the amount of $100,000 or more for the
20benefit of consumers in the event of a bankruptcy on the part
21of the travel promoter; or (5) a riverboat subject to
22regulation under the Illinois Riverboat Gambling Act.
23 (b) "Advertise" means to make any representation in the
24solicitation of passengers and includes communication with

09800SB1739sam001- 554 -LRB098 10559 AMC 42403 a
1other members of the same partnership, corporation, joint
2venture, association, organization, group or other entity.
3 (c) "Passenger" means a person on whose behalf money or
4other consideration has been given or is to be given to
5another, including another member of the same partnership,
6corporation, joint venture, association, organization, group
7or other entity, for travel.
8 (d) "Ticket or voucher" means a writing or combination of
9writings which is itself good and sufficient to obtain
10transportation and other services for which the passenger has
11contracted.
12(Source: P.A. 91-357, eff. 7-29-99.)
13 (30 ILCS 105/5.490 rep.)
14 Section 90-70. The State Finance Act is amended by
15repealing Section 5.490.
16 (230 ILCS 5/54 rep.)
17 Section 90-75. The Illinois Horse Racing Act of 1975 is
18amended by repealing Section 54.
19
ARTICLE 99.
20 Section 99-97. Severability. The provisions of this Act are
21severable under Section 1.31 of the Statute on Statutes.

09800SB1739sam001- 555 -LRB098 10559 AMC 42403 a
1 Section 99-99. Effective date. This Act takes effect upon
2becoming law.".