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1 AN ACT concerning gaming.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4
ARTICLE 1.
5 Section 1-1. Short title. This Article may be cited as the
6Chicago Casino Development Authority Act. References in this
7Article to "this Act" mean this Article.
8 Section 1-2. Legislative intent.
9 (a) This Act is intended to benefit the people of the City
10of Chicago and the State of Illinois by assisting economic
11development and promoting tourism and by increasing the amount
12of revenues available to the City and the State to assist and
13support education.
14 (b) While authorization of casino gambling in Chicago will
15enhance investment, development, and tourism in Illinois, it is
16recognized that it will do so successfully only if public
17confidence and trust in the credibility and integrity of the
18gambling operations and the regulatory process is maintained.
19Therefore, the provisions of this Act are designed to allow the
20Illinois Gaming Board to strictly regulate the facilities,
21persons, associations, and practices related to gambling
22operations pursuant to the police powers of the State,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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(b), (c), (d), and (k) of Section 7.6 of the Illinois Gambling
15Act. All interest earned on moneys in the Fund shall be
16deposited into the Fund.
17 (d) The Fund shall not be subject to administrative charges
18or chargebacks, including, but not limited to, those authorized
19under subsection (h) of Section 8 of this Act.
20 (30 ILCS 105/6z-99 new)
21 Sec. 6z-99. The State Fairgrounds Capital Improvement
22Fund. There is created the State Fairgrounds Capital
23Improvement Fund, a special fund in the State treasury. Moneys
24in the Fund may be used by the Department of Agriculture,
25subject to appropriation, solely for infrastructure

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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1day, 40 cents shall be paid for each person using such ticket
2on each day that the same shall be used.
3 (b) Accurate records and books shall at all times be kept
4and maintained by the organization licensees and inter-track
5wagering licensees showing the admission tickets issued and
6used on each racing day and the attendance thereat of each
7horse racing meeting. The Board or its duly authorized
8representative or representatives shall at all reasonable
9times have access to the admission records of any organization
10licensee and inter-track wagering licensee for the purpose of
11examining and checking the same and ascertaining whether or not
12the proper amount has been or is being paid the State of
13Illinois as herein provided. The Board shall also require,
14before issuing any license, that the licensee shall execute and
15deliver to it a bond, payable to the State of Illinois, in such
16sum as it shall determine, not, however, in excess of fifty
17thousand dollars ($50,000), with a surety or sureties to be
18approved by it, conditioned for the payment of all sums due and
19payable or collected by it under this Section upon admission
20fees received for any particular racing meetings. The Board may
21also from time to time require sworn statements of the number
22or numbers of such admissions and may prescribe blanks upon
23which such reports shall be made. Any organization licensee or
24inter-track wagering licensee failing or refusing to pay the
25amount found to be due as herein provided, shall be deemed
26guilty of a business offense and upon conviction shall be

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1punished by a fine of not more than five thousand dollars
2($5,000) in addition to the amount due from such organization
3licensee or inter-track wagering licensee as herein provided.
4All fines paid into court by an organization licensee or
5inter-track wagering licensee found guilty of violating this
6Section shall be transmitted and paid over by the clerk of the
7court to the Board. Beginning on the date when any organization
8licensee begins conducting electronic gaming pursuant to an
9electronic gaming license issued under the Illinois Gambling
10Act, any fine imposed pursuant to this subsection (b) shall not
11exceed $10,000.
12(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
13 (230 ILCS 5/26) (from Ch. 8, par. 37-26)
14 Sec. 26. Wagering.
15 (a) Any licensee may conduct and supervise the pari-mutuel
16system of wagering, as defined in Section 3.12 of this Act, on
17horse races conducted by an Illinois organization licensee or
18conducted at a racetrack located in another state or country
19and televised in Illinois in accordance with subsection (g) of
20Section 26 of this Act. Subject to the prior consent of the
21Board, licensees may supplement any pari-mutuel pool in order
22to guarantee a minimum distribution. Such pari-mutuel method of
23wagering shall not, under any circumstances if conducted under
24the provisions of this Act, be held or construed to be
25unlawful, other statutes of this State to the contrary

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1notwithstanding. Subject to rules for advance wagering
2promulgated by the Board, any licensee may accept wagers in
3advance of the day of the race wagered upon occurs.
4 (b) Except for those gaming activities for which a license
5is obtained and authorized under the Illinois Lottery Act, the
6Charitable Games Act, the Raffles Act, or the Illinois Gambling
7Act, no No other method of betting, pool making, wagering or
8gambling shall be used or permitted by the licensee. Each
9licensee may retain, subject to the payment of all applicable
10taxes and purses, an amount not to exceed 17% of all money
11wagered under subsection (a) of this Section, except as may
12otherwise be permitted under this Act.
13 (b-5) An individual may place a wager under the pari-mutuel
14system from any licensed location authorized under this Act
15provided that wager is electronically recorded in the manner
16described in Section 3.12 of this Act. Any wager made
17electronically by an individual while physically on the
18premises of a licensee shall be deemed to have been made at the
19premises of that licensee.
20 (c) Until January 1, 2000, the sum held by any licensee for
21payment of outstanding pari-mutuel tickets, if unclaimed prior
22to December 31 of the next year, shall be retained by the
23licensee for payment of such tickets until that date. Within 10
24days thereafter, the balance of such sum remaining unclaimed,
25less any uncashed supplements contributed by such licensee for
26the purpose of guaranteeing minimum distributions of any

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1pari-mutuel pool, shall be paid to the Illinois Veterans'
2Rehabilitation Fund of the State treasury, except as provided
3in subsection (g) of Section 27 of this Act.
4 (c-5) Beginning January 1, 2000, the sum held by any
5licensee for payment of outstanding pari-mutuel tickets, if
6unclaimed prior to December 31 of the next year, shall be
7retained by the licensee for payment of such tickets until that
8date. Within 10 days thereafter, the balance of such sum
9remaining unclaimed, less any uncashed supplements contributed
10by such licensee for the purpose of guaranteeing minimum
11distributions of any pari-mutuel pool, shall be evenly
12distributed to the purse account of the organization licensee
13and the organization licensee.
14 (d) A pari-mutuel ticket shall be honored until December 31
15of the next calendar year, and the licensee shall pay the same
16and may charge the amount thereof against unpaid money
17similarly accumulated on account of pari-mutuel tickets not
18presented for payment.
19 (e) No licensee shall knowingly permit any minor, other
20than an employee of such licensee or an owner, trainer, jockey,
21driver, or employee thereof, to be admitted during a racing
22program unless accompanied by a parent or guardian, or any
23minor to be a patron of the pari-mutuel system of wagering
24conducted or supervised by it. The admission of any
25unaccompanied minor, other than an employee of the licensee or
26an owner, trainer, jockey, driver, or employee thereof at a

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1race track is a Class C misdemeanor.
2 (f) Notwithstanding the other provisions of this Act, an
3organization licensee may contract with an entity in another
4state or country to permit any legal wagering entity in another
5state or country to accept wagers solely within such other
6state or country on races conducted by the organization
7licensee in this State. Beginning January 1, 2000, these wagers
8shall not be subject to State taxation. Until January 1, 2000,
9when the out-of-State entity conducts a pari-mutuel pool
10separate from the organization licensee, a privilege tax equal
11to 7 1/2% of all monies received by the organization licensee
12from entities in other states or countries pursuant to such
13contracts is imposed on the organization licensee, and such
14privilege tax shall be remitted to the Department of Revenue
15within 48 hours of receipt of the moneys from the simulcast.
16When the out-of-State entity conducts a combined pari-mutuel
17pool with the organization licensee, the tax shall be 10% of
18all monies received by the organization licensee with 25% of
19the receipts from this 10% tax to be distributed to the county
20in which the race was conducted.
21 An organization licensee may permit one or more of its
22races to be utilized for pari-mutuel wagering at one or more
23locations in other states and may transmit audio and visual
24signals of races the organization licensee conducts to one or
25more locations outside the State or country and may also permit
26pari-mutuel pools in other states or countries to be combined

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1with its gross or net wagering pools or with wagering pools
2established by other states.
3 (g) A host track may accept interstate simulcast wagers on
4horse races conducted in other states or countries and shall
5control the number of signals and types of breeds of racing in
6its simulcast program, subject to the disapproval of the Board.
7The Board may prohibit a simulcast program only if it finds
8that the simulcast program is clearly adverse to the integrity
9of racing. The host track simulcast program shall include the
10signal of live racing of all organization licensees. All
11non-host licensees and advance deposit wagering licensees
12shall carry the signal of and accept wagers on live racing of
13all organization licensees. Advance deposit wagering licensees
14shall not be permitted to accept out-of-state wagers on any
15Illinois signal provided pursuant to this Section without the
16approval and consent of the organization licensee providing the
17signal. Non-host licensees may carry the host track simulcast
18program and shall accept wagers on all races included as part
19of the simulcast program upon which wagering is permitted. All
20organization licensees shall provide their live signal to all
21advance deposit wagering licensees for a simulcast commission
22fee not to exceed 6% of the advance deposit wagering licensee's
23Illinois handle on the organization licensee's signal without
24prior approval by the Board. The Board may adopt rules under
25which it may permit simulcast commission fees in excess of 6%.
26The Board shall adopt rules limiting the interstate commission

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1fees charged to an advance deposit wagering licensee. The Board
2shall adopt rules regarding advance deposit wagering on
3interstate simulcast races that shall reflect, among other
4things, the General Assembly's desire to maximize revenues to
5the State, horsemen purses, and organizational licensees.
6However, organization licensees providing live signals
7pursuant to the requirements of this subsection (g) may
8petition the Board to withhold their live signals from an
9advance deposit wagering licensee if the organization licensee
10discovers and the Board finds reputable or credible information
11that the advance deposit wagering licensee is under
12investigation by another state or federal governmental agency,
13the advance deposit wagering licensee's license has been
14suspended in another state, or the advance deposit wagering
15licensee's license is in revocation proceedings in another
16state. The organization licensee's provision of their live
17signal to an advance deposit wagering licensee under this
18subsection (g) pertains to wagers placed from within Illinois.
19Advance deposit wagering licensees may place advance deposit
20wagering terminals at wagering facilities as a convenience to
21customers. The advance deposit wagering licensee shall not
22charge or collect any fee from purses for the placement of the
23advance deposit wagering terminals. The costs and expenses of
24the host track and non-host licensees associated with
25interstate simulcast wagering, other than the interstate
26commission fee, shall be borne by the host track and all

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1non-host licensees incurring these costs. The interstate
2commission fee shall not exceed 5% of Illinois handle on the
3interstate simulcast race or races without prior approval of
4the Board. The Board shall promulgate rules under which it may
5permit interstate commission fees in excess of 5%. The
6interstate commission fee and other fees charged by the sending
7racetrack, including, but not limited to, satellite decoder
8fees, shall be uniformly applied to the host track and all
9non-host licensees.
10 Notwithstanding any other provision of this Act, for a
11period of one year after the effective date of this amendatory
12Act of the 98th General Assembly until January 1, 2013, an
13organization licensee may maintain a system whereby advance
14deposit wagering may take place or an organization licensee,
15with the consent of the horsemen association representing the
16largest number of owners, trainers, jockeys, or standardbred
17drivers who race horses at that organization licensee's racing
18meeting, may contract with another person to carry out a system
19of advance deposit wagering. Such consent may not be
20unreasonably withheld. All advance deposit wagers placed from
21within Illinois must be placed through a Board-approved advance
22deposit wagering licensee; no other entity may accept an
23advance deposit wager from a person within Illinois. All
24advance deposit wagering is subject to any rules adopted by the
25Board. The Board may adopt rules necessary to regulate advance
26deposit wagering through the use of emergency rulemaking in

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1accordance with Section 5-45 of the Illinois Administrative
2Procedure Act. The General Assembly finds that the adoption of
3rules to regulate advance deposit wagering is deemed an
4emergency and necessary for the public interest, safety, and
5welfare. An advance deposit wagering licensee may retain all
6moneys as agreed to by contract with an organization licensee.
7Any moneys retained by the organization licensee from advance
8deposit wagering, not including moneys retained by the advance
9deposit wagering licensee, shall be paid 50% to the
10organization licensee's purse account and 50% to the
11organization licensee. If more than one breed races at the same
12race track facility, then the 50% of the moneys to be paid to
13an organization licensee's purse account shall be allocated
14among all organization licensees' purse accounts operating at
15that race track facility proportionately based on the actual
16number of host days that the Board grants to that breed at that
17race track facility in the current calendar year. To the extent
18any fees from advance deposit wagering conducted in Illinois
19for wagers in Illinois or other states have been placed in
20escrow or otherwise withheld from wagers pending a
21determination of the legality of advance deposit wagering, no
22action shall be brought to declare such wagers or the
23disbursement of any fees previously escrowed illegal.
24 (1) Between the hours of 6:30 a.m. and 6:30 p.m. an
25 intertrack wagering licensee other than the host track may
26 supplement the host track simulcast program with

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1 additional simulcast races or race programs, provided that
2 between January 1 and the third Friday in February of any
3 year, inclusive, if no live thoroughbred racing is
4 occurring in Illinois during this period, only
5 thoroughbred races may be used for supplemental interstate
6 simulcast purposes. The Board shall withhold approval for a
7 supplemental interstate simulcast only if it finds that the
8 simulcast is clearly adverse to the integrity of racing. A
9 supplemental interstate simulcast may be transmitted from
10 an intertrack wagering licensee to its affiliated non-host
11 licensees. The interstate commission fee for a
12 supplemental interstate simulcast shall be paid by the
13 non-host licensee and its affiliated non-host licensees
14 receiving the simulcast.
15 (2) Between the hours of 6:30 p.m. and 6:30 a.m. an
16 intertrack wagering licensee other than the host track may
17 receive supplemental interstate simulcasts only with the
18 consent of the host track, except when the Board finds that
19 the simulcast is clearly adverse to the integrity of
20 racing. Consent granted under this paragraph (2) to any
21 intertrack wagering licensee shall be deemed consent to all
22 non-host licensees. The interstate commission fee for the
23 supplemental interstate simulcast shall be paid by all
24 participating non-host licensees.
25 (3) Each licensee conducting interstate simulcast
26 wagering may retain, subject to the payment of all

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1 applicable taxes and the purses, an amount not to exceed
2 17% of all money wagered. If any licensee conducts the
3 pari-mutuel system wagering on races conducted at
4 racetracks in another state or country, each such race or
5 race program shall be considered a separate racing day for
6 the purpose of determining the daily handle and computing
7 the privilege tax of that daily handle as provided in
8 subsection (a) of Section 27. Until January 1, 2000, from
9 the sums permitted to be retained pursuant to this
10 subsection, each intertrack wagering location licensee
11 shall pay 1% of the pari-mutuel handle wagered on simulcast
12 wagering to the Horse Racing Tax Allocation Fund, subject
13 to the provisions of subparagraph (B) of paragraph (11) of
14 subsection (h) of Section 26 of this Act.
15 (4) A licensee who receives an interstate simulcast may
16 combine its gross or net pools with pools at the sending
17 racetracks pursuant to rules established by the Board. All
18 licensees combining their gross pools at a sending
19 racetrack shall adopt the take-out percentages of the
20 sending racetrack. A licensee may also establish a separate
21 pool and takeout structure for wagering purposes on races
22 conducted at race tracks outside of the State of Illinois.
23 The licensee may permit pari-mutuel wagers placed in other
24 states or countries to be combined with its gross or net
25 wagering pools or other wagering pools.
26 (5) After the payment of the interstate commission fee

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1 (except for the interstate commission fee on a supplemental
2 interstate simulcast, which shall be paid by the host track
3 and by each non-host licensee through the host-track) and
4 all applicable State and local taxes, except as provided in
5 subsection (g) of Section 27 of this Act, the remainder of
6 moneys retained from simulcast wagering pursuant to this
7 subsection (g), and Section 26.2 shall be divided as
8 follows:
9 (A) For interstate simulcast wagers made at a host
10 track, 50% to the host track and 50% to purses at the
11 host track.
12 (B) For wagers placed on interstate simulcast
13 races, supplemental simulcasts as defined in
14 subparagraphs (1) and (2), and separately pooled races
15 conducted outside of the State of Illinois made at a
16 non-host licensee, 25% to the host track, 25% to the
17 non-host licensee, and 50% to the purses at the host
18 track.
19 (6) Notwithstanding any provision in this Act to the
20 contrary, non-host licensees who derive their licenses
21 from a track located in a county with a population in
22 excess of 230,000 and that borders the Mississippi River
23 may receive supplemental interstate simulcast races at all
24 times subject to Board approval, which shall be withheld
25 only upon a finding that a supplemental interstate
26 simulcast is clearly adverse to the integrity of racing.

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1 (7) Notwithstanding any provision of this Act to the
2 contrary, after payment of all applicable State and local
3 taxes and interstate commission fees, non-host licensees
4 who derive their licenses from a track located in a county
5 with a population in excess of 230,000 and that borders the
6 Mississippi River shall retain 50% of the retention from
7 interstate simulcast wagers and shall pay 50% to purses at
8 the track from which the non-host licensee derives its
9 license as follows:
10 (A) Between January 1 and the third Friday in
11 February, inclusive, if no live thoroughbred racing is
12 occurring in Illinois during this period, when the
13 interstate simulcast is a standardbred race, the purse
14 share to its standardbred purse account;
15 (B) Between January 1 and the third Friday in
16 February, inclusive, if no live thoroughbred racing is
17 occurring in Illinois during this period, and the
18 interstate simulcast is a thoroughbred race, the purse
19 share to its interstate simulcast purse pool to be
20 distributed under paragraph (10) of this subsection
21 (g);
22 (C) Between January 1 and the third Friday in
23 February, inclusive, if live thoroughbred racing is
24 occurring in Illinois, between 6:30 a.m. and 6:30 p.m.
25 the purse share from wagers made during this time
26 period to its thoroughbred purse account and between

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1 6:30 p.m. and 6:30 a.m. the purse share from wagers
2 made during this time period to its standardbred purse
3 accounts;
4 (D) Between the third Saturday in February and
5 December 31, when the interstate simulcast occurs
6 between the hours of 6:30 a.m. and 6:30 p.m., the purse
7 share to its thoroughbred purse account;
8 (E) Between the third Saturday in February and
9 December 31, when the interstate simulcast occurs
10 between the hours of 6:30 p.m. and 6:30 a.m., the purse
11 share to its standardbred purse account.
12 (7.1) Notwithstanding any other provision of this Act
13 to the contrary, if no standardbred racing is conducted at
14 a racetrack located in Madison County during any calendar
15 year beginning on or after January 1, 2002, all moneys
16 derived by that racetrack from simulcast wagering and
17 inter-track wagering that (1) are to be used for purses and
18 (2) are generated between the hours of 6:30 p.m. and 6:30
19 a.m. during that calendar year shall be paid as follows:
20 (A) If the licensee that conducts horse racing at
21 that racetrack requests from the Board at least as many
22 racing dates as were conducted in calendar year 2000,
23 80% shall be paid to its thoroughbred purse account;
24 and
25 (B) Twenty percent shall be deposited into the
26 Illinois Colt Stakes Purse Distribution Fund and shall

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1 be paid to purses for standardbred races for Illinois
2 conceived and foaled horses conducted at any county
3 fairgrounds. The moneys deposited into the Fund
4 pursuant to this subparagraph (B) shall be deposited
5 within 2 weeks after the day they were generated, shall
6 be in addition to and not in lieu of any other moneys
7 paid to standardbred purses under this Act, and shall
8 not be commingled with other moneys paid into that
9 Fund. The moneys deposited pursuant to this
10 subparagraph (B) shall be allocated as provided by the
11 Department of Agriculture, with the advice and
12 assistance of the Illinois Standardbred Breeders Fund
13 Advisory Board.
14 (7.2) Notwithstanding any other provision of this Act
15 to the contrary, if no thoroughbred racing is conducted at
16 a racetrack located in Madison County during any calendar
17 year beginning on or after January 1, 2002, all moneys
18 derived by that racetrack from simulcast wagering and
19 inter-track wagering that (1) are to be used for purses and
20 (2) are generated between the hours of 6:30 a.m. and 6:30
21 p.m. during that calendar year shall be deposited as
22 follows:
23 (A) If the licensee that conducts horse racing at
24 that racetrack requests from the Board at least as many
25 racing dates as were conducted in calendar year 2000,
26 80% shall be deposited into its standardbred purse

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1 account; and
2 (B) Twenty percent shall be deposited into the
3 Illinois Colt Stakes Purse Distribution Fund. Moneys
4 deposited into the Illinois Colt Stakes Purse
5 Distribution Fund pursuant to this subparagraph (B)
6 shall be paid to Illinois conceived and foaled
7 thoroughbred breeders' programs and to thoroughbred
8 purses for races conducted at any county fairgrounds
9 for Illinois conceived and foaled horses at the
10 discretion of the Department of Agriculture, with the
11 advice and assistance of the Illinois Thoroughbred
12 Breeders Fund Advisory Board. The moneys deposited
13 into the Illinois Colt Stakes Purse Distribution Fund
14 pursuant to this subparagraph (B) shall be deposited
15 within 2 weeks after the day they were generated, shall
16 be in addition to and not in lieu of any other moneys
17 paid to thoroughbred purses under this Act, and shall
18 not be commingled with other moneys deposited into that
19 Fund.
20 (7.3) If no live standardbred racing is conducted at a
21 racetrack located in Madison County in calendar year 2000
22 or 2001, an organization licensee who is licensed to
23 conduct horse racing at that racetrack shall, before
24 January 1, 2002, pay all moneys derived from simulcast
25 wagering and inter-track wagering in calendar years 2000
26 and 2001 and paid into the licensee's standardbred purse

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1 account as follows:
2 (A) Eighty percent to that licensee's thoroughbred
3 purse account to be used for thoroughbred purses; and
4 (B) Twenty percent to the Illinois Colt Stakes
5 Purse Distribution Fund.
6 Failure to make the payment to the Illinois Colt Stakes
7 Purse Distribution Fund before January 1, 2002 shall result
8 in the immediate revocation of the licensee's organization
9 license, inter-track wagering license, and inter-track
10 wagering location license.
11 Moneys paid into the Illinois Colt Stakes Purse
12 Distribution Fund pursuant to this paragraph (7.3) shall be
13 paid to purses for standardbred races for Illinois
14 conceived and foaled horses conducted at any county
15 fairgrounds. Moneys paid into the Illinois Colt Stakes
16 Purse Distribution Fund pursuant to this paragraph (7.3)
17 shall be used as determined by the Department of
18 Agriculture, with the advice and assistance of the Illinois
19 Standardbred Breeders Fund Advisory Board, shall be in
20 addition to and not in lieu of any other moneys paid to
21 standardbred purses under this Act, and shall not be
22 commingled with any other moneys paid into that Fund.
23 (7.4) If live standardbred racing is conducted at a
24 racetrack located in Madison County at any time in calendar
25 year 2001 before the payment required under paragraph (7.3)
26 has been made, the organization licensee who is licensed to

SB1739 Engrossed- 251 -LRB098 10559 AMC 40804 b
1 conduct racing at that racetrack shall pay all moneys
2 derived by that racetrack from simulcast wagering and
3 inter-track wagering during calendar years 2000 and 2001
4 that (1) are to be used for purses and (2) are generated
5 between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or
6 2001 to the standardbred purse account at that racetrack to
7 be used for standardbred purses.
8 (8) Notwithstanding any provision in this Act to the
9 contrary, an organization licensee from a track located in
10 a county with a population in excess of 230,000 and that
11 borders the Mississippi River and its affiliated non-host
12 licensees shall not be entitled to share in any retention
13 generated on racing, inter-track wagering, or simulcast
14 wagering at any other Illinois wagering facility.
15 (8.1) Notwithstanding any provisions in this Act to the
16 contrary, if 2 organization licensees are conducting
17 standardbred race meetings concurrently between the hours
18 of 6:30 p.m. and 6:30 a.m., after payment of all applicable
19 State and local taxes and interstate commission fees, the
20 remainder of the amount retained from simulcast wagering
21 otherwise attributable to the host track and to host track
22 purses shall be split daily between the 2 organization
23 licensees and the purses at the tracks of the 2
24 organization licensees, respectively, based on each
25 organization licensee's share of the total live handle for
26 that day, provided that this provision shall not apply to

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1 any non-host licensee that derives its license from a track
2 located in a county with a population in excess of 230,000
3 and that borders the Mississippi River.
4 (9) (Blank).
5 (10) (Blank).
6 (11) (Blank).
7 (12) The Board shall have authority to compel all host
8 tracks to receive the simulcast of any or all races
9 conducted at the Springfield or DuQuoin State fairgrounds
10 and include all such races as part of their simulcast
11 programs.
12 (13) Notwithstanding any other provision of this Act,
13 in the event that the total Illinois pari-mutuel handle on
14 Illinois horse races at all wagering facilities in any
15 calendar year is less than 75% of the total Illinois
16 pari-mutuel handle on Illinois horse races at all such
17 wagering facilities for calendar year 1994, then each
18 wagering facility that has an annual total Illinois
19 pari-mutuel handle on Illinois horse races that is less
20 than 75% of the total Illinois pari-mutuel handle on
21 Illinois horse races at such wagering facility for calendar
22 year 1994, shall be permitted to receive, from any amount
23 otherwise payable to the purse account at the race track
24 with which the wagering facility is affiliated in the
25 succeeding calendar year, an amount equal to 2% of the
26 differential in total Illinois pari-mutuel handle on

SB1739 Engrossed- 253 -LRB098 10559 AMC 40804 b
1 Illinois horse races at the wagering facility between that
2 calendar year in question and 1994 provided, however, that
3 a wagering facility shall not be entitled to any such
4 payment until the Board certifies in writing to the
5 wagering facility the amount to which the wagering facility
6 is entitled and a schedule for payment of the amount to the
7 wagering facility, based on: (i) the racing dates awarded
8 to the race track affiliated with the wagering facility
9 during the succeeding year; (ii) the sums available or
10 anticipated to be available in the purse account of the
11 race track affiliated with the wagering facility for purses
12 during the succeeding year; and (iii) the need to ensure
13 reasonable purse levels during the payment period. The
14 Board's certification shall be provided no later than
15 January 31 of the succeeding year. In the event a wagering
16 facility entitled to a payment under this paragraph (13) is
17 affiliated with a race track that maintains purse accounts
18 for both standardbred and thoroughbred racing, the amount
19 to be paid to the wagering facility shall be divided
20 between each purse account pro rata, based on the amount of
21 Illinois handle on Illinois standardbred and thoroughbred
22 racing respectively at the wagering facility during the
23 previous calendar year. Annually, the General Assembly
24 shall appropriate sufficient funds from the General
25 Revenue Fund to the Department of Agriculture for payment
26 into the thoroughbred and standardbred horse racing purse

SB1739 Engrossed- 254 -LRB098 10559 AMC 40804 b
1 accounts at Illinois pari-mutuel tracks. The amount paid to
2 each purse account shall be the amount certified by the
3 Illinois Racing Board in January to be transferred from
4 each account to each eligible racing facility in accordance
5 with the provisions of this Section. Beginning in the
6 calendar year in which an organization licensee that is
7 eligible to receive payment under this paragraph (13)
8 begins to receive funds from electronic gaming, the amount
9 of the payment due to all wagering facilities licensed
10 under that organization licensee under this paragraph (13)
11 shall be the amount certified by the Board in January of
12 that year. An organization licensee and its related
13 wagering facilities shall no longer be able to receive
14 payments under this paragraph (13) beginning in the year
15 subsequent to the first year in which the organization
16 licensee begins to receive funds from electronic gaming.
17 (h) The Board may approve and license the conduct of
18inter-track wagering and simulcast wagering by inter-track
19wagering licensees and inter-track wagering location licensees
20subject to the following terms and conditions:
21 (1) Any person licensed to conduct a race meeting (i)
22 at a track where 60 or more days of racing were conducted
23 during the immediately preceding calendar year or where
24 over the 5 immediately preceding calendar years an average
25 of 30 or more days of racing were conducted annually may be
26 issued an inter-track wagering license; (ii) at a track

SB1739 Engrossed- 255 -LRB098 10559 AMC 40804 b
1 located in a county that is bounded by the Mississippi
2 River, which has a population of less than 150,000
3 according to the 1990 decennial census, and an average of
4 at least 60 days of racing per year between 1985 and 1993
5 may be issued an inter-track wagering license; or (iii) at
6 a track located in Madison County that conducted at least
7 100 days of live racing during the immediately preceding
8 calendar year may be issued an inter-track wagering
9 license, unless a lesser schedule of live racing is the
10 result of (A) weather, unsafe track conditions, or other
11 acts of God; (B) an agreement between the organization
12 licensee and the associations representing the largest
13 number of owners, trainers, jockeys, or standardbred
14 drivers who race horses at that organization licensee's
15 racing meeting; or (C) a finding by the Board of
16 extraordinary circumstances and that it was in the best
17 interest of the public and the sport to conduct fewer than
18 100 days of live racing. Any such person having operating
19 control of the racing facility may also receive up to 6
20 inter-track wagering location licenses. In no event shall
21 more than 6 inter-track wagering locations be established
22 for each eligible race track, except that an eligible race
23 track located in a county that has a population of more
24 than 230,000 and that is bounded by the Mississippi River
25 may establish up to 7 inter-track wagering locations. An
26 application for said license shall be filed with the Board

SB1739 Engrossed- 256 -LRB098 10559 AMC 40804 b
1 prior to such dates as may be fixed by the Board. With an
2 application for an inter-track wagering location license
3 there shall be delivered to the Board a certified check or
4 bank draft payable to the order of the Board for an amount
5 equal to $500. The application shall be on forms prescribed
6 and furnished by the Board. The application shall comply
7 with all other rules, regulations and conditions imposed by
8 the Board in connection therewith.
9 (2) The Board shall examine the applications with
10 respect to their conformity with this Act and the rules and
11 regulations imposed by the Board. If found to be in
12 compliance with the Act and rules and regulations of the
13 Board, the Board may then issue a license to conduct
14 inter-track wagering and simulcast wagering to such
15 applicant. All such applications shall be acted upon by the
16 Board at a meeting to be held on such date as may be fixed
17 by the Board.
18 (3) In granting licenses to conduct inter-track
19 wagering and simulcast wagering, the Board shall give due
20 consideration to the best interests of the public, of horse
21 racing, and of maximizing revenue to the State.
22 (4) Prior to the issuance of a license to conduct
23 inter-track wagering and simulcast wagering, the applicant
24 shall file with the Board a bond payable to the State of
25 Illinois in the sum of $50,000, executed by the applicant
26 and a surety company or companies authorized to do business

SB1739 Engrossed- 257 -LRB098 10559 AMC 40804 b
1 in this State, and conditioned upon (i) the payment by the
2 licensee of all taxes due under Section 27 or 27.1 and any
3 other monies due and payable under this Act, and (ii)
4 distribution by the licensee, upon presentation of the
5 winning ticket or tickets, of all sums payable to the
6 patrons of pari-mutuel pools.
7 (5) Each license to conduct inter-track wagering and
8 simulcast wagering shall specify the person to whom it is
9 issued, the dates on which such wagering is permitted, and
10 the track or location where the wagering is to be
11 conducted.
12 (6) All wagering under such license is subject to this
13 Act and to the rules and regulations from time to time
14 prescribed by the Board, and every such license issued by
15 the Board shall contain a recital to that effect.
16 (7) An inter-track wagering licensee or inter-track
17 wagering location licensee may accept wagers at the track
18 or location where it is licensed, or as otherwise provided
19 under this Act.
20 (8) Inter-track wagering or simulcast wagering shall
21 not be conducted at any track less than 4 5 miles from a
22 track at which a racing meeting is in progress.
23 (8.1) Inter-track wagering location licensees who
24 derive their licenses from a particular organization
25 licensee shall conduct inter-track wagering and simulcast
26 wagering only at locations which are either within 90 miles

SB1739 Engrossed- 258 -LRB098 10559 AMC 40804 b
1 of that race track where the particular organization
2 licensee is licensed to conduct racing, or within 135 miles
3 of that race track where the particular organization
4 licensee is licensed to conduct racing in the case of race
5 tracks in counties of less than 400,000 that were operating
6 on or before June 1, 1986. However, inter-track wagering
7 and simulcast wagering shall not be conducted by those
8 licensees at any location within 5 miles of any race track
9 at which a horse race meeting has been licensed in the
10 current year, unless the person having operating control of
11 such race track has given its written consent to such
12 inter-track wagering location licensees, which consent
13 must be filed with the Board at or prior to the time
14 application is made.
15 (8.2) Inter-track wagering or simulcast wagering shall
16 not be conducted by an inter-track wagering location
17 licensee at any location within 500 feet of an existing
18 church, an or existing elementary or secondary public
19 school, or an existing elementary or secondary private
20 school registered with or recognized by the State Board of
21 Education school, nor within 500 feet of the residences of
22 more than 50 registered voters without receiving written
23 permission from a majority of the registered voters at such
24 residences. Such written permission statements shall be
25 filed with the Board. The distance of 500 feet shall be
26 measured to the nearest part of any building used for

SB1739 Engrossed- 259 -LRB098 10559 AMC 40804 b
1 worship services, education programs, residential
2 purposes, or conducting inter-track wagering by an
3 inter-track wagering location licensee, and not to
4 property boundaries. However, inter-track wagering or
5 simulcast wagering may be conducted at a site within 500
6 feet of a church, school or residences of 50 or more
7 registered voters if such church, school or residences have
8 been erected or established, or such voters have been
9 registered, after the Board issues the original
10 inter-track wagering location license at the site in
11 question. Inter-track wagering location licensees may
12 conduct inter-track wagering and simulcast wagering only
13 in areas that are zoned for commercial or manufacturing
14 purposes or in areas for which a special use has been
15 approved by the local zoning authority. However, no license
16 to conduct inter-track wagering and simulcast wagering
17 shall be granted by the Board with respect to any
18 inter-track wagering location within the jurisdiction of
19 any local zoning authority which has, by ordinance or by
20 resolution, prohibited the establishment of an inter-track
21 wagering location within its jurisdiction. However,
22 inter-track wagering and simulcast wagering may be
23 conducted at a site if such ordinance or resolution is
24 enacted after the Board licenses the original inter-track
25 wagering location licensee for the site in question.
26 (9) (Blank).

SB1739 Engrossed- 260 -LRB098 10559 AMC 40804 b
1 (10) An inter-track wagering licensee or an
2 inter-track wagering location licensee may retain, subject
3 to the payment of the privilege taxes and the purses, an
4 amount not to exceed 17% of all money wagered. Each program
5 of racing conducted by each inter-track wagering licensee
6 or inter-track wagering location licensee shall be
7 considered a separate racing day for the purpose of
8 determining the daily handle and computing the privilege
9 tax or pari-mutuel tax on such daily handle as provided in
10 Section 27.
11 (10.1) Except as provided in subsection (g) of Section
12 27 of this Act, inter-track wagering location licensees
13 shall pay 1% of the pari-mutuel handle at each location to
14 the municipality in which such location is situated and 1%
15 of the pari-mutuel handle at each location to the county in
16 which such location is situated. In the event that an
17 inter-track wagering location licensee is situated in an
18 unincorporated area of a county, such licensee shall pay 2%
19 of the pari-mutuel handle from such location to such
20 county.
21 (10.2) Notwithstanding any other provision of this
22 Act, with respect to intertrack wagering at a race track
23 located in a county that has a population of more than
24 230,000 and that is bounded by the Mississippi River ("the
25 first race track"), or at a facility operated by an
26 inter-track wagering licensee or inter-track wagering

SB1739 Engrossed- 261 -LRB098 10559 AMC 40804 b
1 location licensee that derives its license from the
2 organization licensee that operates the first race track,
3 on races conducted at the first race track or on races
4 conducted at another Illinois race track and
5 simultaneously televised to the first race track or to a
6 facility operated by an inter-track wagering licensee or
7 inter-track wagering location licensee that derives its
8 license from the organization licensee that operates the
9 first race track, those moneys shall be allocated as
10 follows:
11 (A) That portion of all moneys wagered on
12 standardbred racing that is required under this Act to
13 be paid to purses shall be paid to purses for
14 standardbred races.
15 (B) That portion of all moneys wagered on
16 thoroughbred racing that is required under this Act to
17 be paid to purses shall be paid to purses for
18 thoroughbred races.
19 (11) (A) After payment of the privilege or pari-mutuel
20 tax, any other applicable taxes, and the costs and expenses
21 in connection with the gathering, transmission, and
22 dissemination of all data necessary to the conduct of
23 inter-track wagering, the remainder of the monies retained
24 under either Section 26 or Section 26.2 of this Act by the
25 inter-track wagering licensee on inter-track wagering
26 shall be allocated with 50% to be split between the 2

SB1739 Engrossed- 262 -LRB098 10559 AMC 40804 b
1 participating licensees and 50% to purses, except that an
2 intertrack wagering licensee that derives its license from
3 a track located in a county with a population in excess of
4 230,000 and that borders the Mississippi River shall not
5 divide any remaining retention with the Illinois
6 organization licensee that provides the race or races, and
7 an intertrack wagering licensee that accepts wagers on
8 races conducted by an organization licensee that conducts a
9 race meet in a county with a population in excess of
10 230,000 and that borders the Mississippi River shall not
11 divide any remaining retention with that organization
12 licensee.
13 (B) From the sums permitted to be retained pursuant to
14 this Act each inter-track wagering location licensee shall
15 pay (i) the privilege or pari-mutuel tax to the State; (ii)
16 4.75% of the pari-mutuel handle on intertrack wagering at
17 such location on races as purses, except that an intertrack
18 wagering location licensee that derives its license from a
19 track located in a county with a population in excess of
20 230,000 and that borders the Mississippi River shall retain
21 all purse moneys for its own purse account consistent with
22 distribution set forth in this subsection (h), and
23 intertrack wagering location licensees that accept wagers
24 on races conducted by an organization licensee located in a
25 county with a population in excess of 230,000 and that
26 borders the Mississippi River shall distribute all purse

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1 moneys to purses at the operating host track; (iii) until
2 January 1, 2000, except as provided in subsection (g) of
3 Section 27 of this Act, 1% of the pari-mutuel handle
4 wagered on inter-track wagering and simulcast wagering at
5 each inter-track wagering location licensee facility to
6 the Horse Racing Tax Allocation Fund, provided that, to the
7 extent the total amount collected and distributed to the
8 Horse Racing Tax Allocation Fund under this subsection (h)
9 during any calendar year exceeds the amount collected and
10 distributed to the Horse Racing Tax Allocation Fund during
11 calendar year 1994, that excess amount shall be
12 redistributed (I) to all inter-track wagering location
13 licensees, based on each licensee's pro-rata share of the
14 total handle from inter-track wagering and simulcast
15 wagering for all inter-track wagering location licensees
16 during the calendar year in which this provision is
17 applicable; then (II) the amounts redistributed to each
18 inter-track wagering location licensee as described in
19 subpart (I) shall be further redistributed as provided in
20 subparagraph (B) of paragraph (5) of subsection (g) of this
21 Section 26 provided first, that the shares of those
22 amounts, which are to be redistributed to the host track or
23 to purses at the host track under subparagraph (B) of
24 paragraph (5) of subsection (g) of this Section 26 shall be
25 redistributed based on each host track's pro rata share of
26 the total inter-track wagering and simulcast wagering

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1 handle at all host tracks during the calendar year in
2 question, and second, that any amounts redistributed as
3 described in part (I) to an inter-track wagering location
4 licensee that accepts wagers on races conducted by an
5 organization licensee that conducts a race meet in a county
6 with a population in excess of 230,000 and that borders the
7 Mississippi River shall be further redistributed as
8 provided in subparagraphs (D) and (E) of paragraph (7) of
9 subsection (g) of this Section 26, with the portion of that
10 further redistribution allocated to purses at that
11 organization licensee to be divided between standardbred
12 purses and thoroughbred purses based on the amounts
13 otherwise allocated to purses at that organization
14 licensee during the calendar year in question; and (iv) 8%
15 of the pari-mutuel handle on inter-track wagering wagered
16 at such location to satisfy all costs and expenses of
17 conducting its wagering. The remainder of the monies
18 retained by the inter-track wagering location licensee
19 shall be allocated 40% to the location licensee and 60% to
20 the organization licensee which provides the Illinois
21 races to the location, except that an intertrack wagering
22 location licensee that derives its license from a track
23 located in a county with a population in excess of 230,000
24 and that borders the Mississippi River shall not divide any
25 remaining retention with the organization licensee that
26 provides the race or races and an intertrack wagering

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1 location licensee that accepts wagers on races conducted by
2 an organization licensee that conducts a race meet in a
3 county with a population in excess of 230,000 and that
4 borders the Mississippi River shall not divide any
5 remaining retention with the organization licensee.
6 Notwithstanding the provisions of clauses (ii) and (iv) of
7 this paragraph, in the case of the additional inter-track
8 wagering location licenses authorized under paragraph (1)
9 of this subsection (h) by this amendatory Act of 1991,
10 those licensees shall pay the following amounts as purses:
11 during the first 12 months the licensee is in operation,
12 5.25% of the pari-mutuel handle wagered at the location on
13 races; during the second 12 months, 5.25%; during the third
14 12 months, 5.75%; during the fourth 12 months, 6.25%; and
15 during the fifth 12 months and thereafter, 6.75%. The
16 following amounts shall be retained by the licensee to
17 satisfy all costs and expenses of conducting its wagering:
18 during the first 12 months the licensee is in operation,
19 8.25% of the pari-mutuel handle wagered at the location;
20 during the second 12 months, 8.25%; during the third 12
21 months, 7.75%; during the fourth 12 months, 7.25%; and
22 during the fifth 12 months and thereafter, 6.75%. For
23 additional intertrack wagering location licensees
24 authorized under this amendatory Act of 1995, purses for
25 the first 12 months the licensee is in operation shall be
26 5.75% of the pari-mutuel wagered at the location, purses

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1 for the second 12 months the licensee is in operation shall
2 be 6.25%, and purses thereafter shall be 6.75%. For
3 additional intertrack location licensees authorized under
4 this amendatory Act of 1995, the licensee shall be allowed
5 to retain to satisfy all costs and expenses: 7.75% of the
6 pari-mutuel handle wagered at the location during its first
7 12 months of operation, 7.25% during its second 12 months
8 of operation, and 6.75% thereafter.
9 (C) There is hereby created the Horse Racing Tax
10 Allocation Fund which shall remain in existence until
11 December 31, 1999. Moneys remaining in the Fund after
12 December 31, 1999 shall be paid into the General Revenue
13 Fund. Until January 1, 2000, all monies paid into the Horse
14 Racing Tax Allocation Fund pursuant to this paragraph (11)
15 by inter-track wagering location licensees located in park
16 districts of 500,000 population or less, or in a
17 municipality that is not included within any park district
18 but is included within a conservation district and is the
19 county seat of a county that (i) is contiguous to the state
20 of Indiana and (ii) has a 1990 population of 88,257
21 according to the United States Bureau of the Census, and
22 operating on May 1, 1994 shall be allocated by
23 appropriation as follows:
24 Two-sevenths to the Department of Agriculture.
25 Fifty percent of this two-sevenths shall be used to
26 promote the Illinois horse racing and breeding

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1 industry, and shall be distributed by the Department of
2 Agriculture upon the advice of a 9-member committee
3 appointed by the Governor consisting of the following
4 members: the Director of Agriculture, who shall serve
5 as chairman; 2 representatives of organization
6 licensees conducting thoroughbred race meetings in
7 this State, recommended by those licensees; 2
8 representatives of organization licensees conducting
9 standardbred race meetings in this State, recommended
10 by those licensees; a representative of the Illinois
11 Thoroughbred Breeders and Owners Foundation,
12 recommended by that Foundation; a representative of
13 the Illinois Standardbred Owners and Breeders
14 Association, recommended by that Association; a
15 representative of the Horsemen's Benevolent and
16 Protective Association or any successor organization
17 thereto established in Illinois comprised of the
18 largest number of owners and trainers, recommended by
19 that Association or that successor organization; and a
20 representative of the Illinois Harness Horsemen's
21 Association, recommended by that Association.
22 Committee members shall serve for terms of 2 years,
23 commencing January 1 of each even-numbered year. If a
24 representative of any of the above-named entities has
25 not been recommended by January 1 of any even-numbered
26 year, the Governor shall appoint a committee member to

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1 fill that position. Committee members shall receive no
2 compensation for their services as members but shall be
3 reimbursed for all actual and necessary expenses and
4 disbursements incurred in the performance of their
5 official duties. The remaining 50% of this
6 two-sevenths shall be distributed to county fairs for
7 premiums and rehabilitation as set forth in the
8 Agricultural Fair Act;
9 Four-sevenths to park districts or municipalities
10 that do not have a park district of 500,000 population
11 or less for museum purposes (if an inter-track wagering
12 location licensee is located in such a park district)
13 or to conservation districts for museum purposes (if an
14 inter-track wagering location licensee is located in a
15 municipality that is not included within any park
16 district but is included within a conservation
17 district and is the county seat of a county that (i) is
18 contiguous to the state of Indiana and (ii) has a 1990
19 population of 88,257 according to the United States
20 Bureau of the Census, except that if the conservation
21 district does not maintain a museum, the monies shall
22 be allocated equally between the county and the
23 municipality in which the inter-track wagering
24 location licensee is located for general purposes) or
25 to a municipal recreation board for park purposes (if
26 an inter-track wagering location licensee is located

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1 in a municipality that is not included within any park
2 district and park maintenance is the function of the
3 municipal recreation board and the municipality has a
4 1990 population of 9,302 according to the United States
5 Bureau of the Census); provided that the monies are
6 distributed to each park district or conservation
7 district or municipality that does not have a park
8 district in an amount equal to four-sevenths of the
9 amount collected by each inter-track wagering location
10 licensee within the park district or conservation
11 district or municipality for the Fund. Monies that were
12 paid into the Horse Racing Tax Allocation Fund before
13 the effective date of this amendatory Act of 1991 by an
14 inter-track wagering location licensee located in a
15 municipality that is not included within any park
16 district but is included within a conservation
17 district as provided in this paragraph shall, as soon
18 as practicable after the effective date of this
19 amendatory Act of 1991, be allocated and paid to that
20 conservation district as provided in this paragraph.
21 Any park district or municipality not maintaining a
22 museum may deposit the monies in the corporate fund of
23 the park district or municipality where the
24 inter-track wagering location is located, to be used
25 for general purposes; and
26 One-seventh to the Agricultural Premium Fund to be

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1 used for distribution to agricultural home economics
2 extension councils in accordance with "An Act in
3 relation to additional support and finances for the
4 Agricultural and Home Economic Extension Councils in
5 the several counties of this State and making an
6 appropriation therefor", approved July 24, 1967.
7 Until January 1, 2000, all other monies paid into the
8 Horse Racing Tax Allocation Fund pursuant to this paragraph
9 (11) shall be allocated by appropriation as follows:
10 Two-sevenths to the Department of Agriculture.
11 Fifty percent of this two-sevenths shall be used to
12 promote the Illinois horse racing and breeding
13 industry, and shall be distributed by the Department of
14 Agriculture upon the advice of a 9-member committee
15 appointed by the Governor consisting of the following
16 members: the Director of Agriculture, who shall serve
17 as chairman; 2 representatives of organization
18 licensees conducting thoroughbred race meetings in
19 this State, recommended by those licensees; 2
20 representatives of organization licensees conducting
21 standardbred race meetings in this State, recommended
22 by those licensees; a representative of the Illinois
23 Thoroughbred Breeders and Owners Foundation,
24 recommended by that Foundation; a representative of
25 the Illinois Standardbred Owners and Breeders
26 Association, recommended by that Association; a

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1 representative of the Horsemen's Benevolent and
2 Protective Association or any successor organization
3 thereto established in Illinois comprised of the
4 largest number of owners and trainers, recommended by
5 that Association or that successor organization; and a
6 representative of the Illinois Harness Horsemen's
7 Association, recommended by that Association.
8 Committee members shall serve for terms of 2 years,
9 commencing January 1 of each even-numbered year. If a
10 representative of any of the above-named entities has
11 not been recommended by January 1 of any even-numbered
12 year, the Governor shall appoint a committee member to
13 fill that position. Committee members shall receive no
14 compensation for their services as members but shall be
15 reimbursed for all actual and necessary expenses and
16 disbursements incurred in the performance of their
17 official duties. The remaining 50% of this
18 two-sevenths shall be distributed to county fairs for
19 premiums and rehabilitation as set forth in the
20 Agricultural Fair Act;
21 Four-sevenths to museums and aquariums located in
22 park districts of over 500,000 population; provided
23 that the monies are distributed in accordance with the
24 previous year's distribution of the maintenance tax
25 for such museums and aquariums as provided in Section 2
26 of the Park District Aquarium and Museum Act; and

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1 One-seventh to the Agricultural Premium Fund to be
2 used for distribution to agricultural home economics
3 extension councils in accordance with "An Act in
4 relation to additional support and finances for the
5 Agricultural and Home Economic Extension Councils in
6 the several counties of this State and making an
7 appropriation therefor", approved July 24, 1967. This
8 subparagraph (C) shall be inoperative and of no force
9 and effect on and after January 1, 2000.
10 (D) Except as provided in paragraph (11) of this
11 subsection (h), with respect to purse allocation from
12 intertrack wagering, the monies so retained shall be
13 divided as follows:
14 (i) If the inter-track wagering licensee,
15 except an intertrack wagering licensee that
16 derives its license from an organization licensee
17 located in a county with a population in excess of
18 230,000 and bounded by the Mississippi River, is
19 not conducting its own race meeting during the same
20 dates, then the entire purse allocation shall be to
21 purses at the track where the races wagered on are
22 being conducted.
23 (ii) If the inter-track wagering licensee,
24 except an intertrack wagering licensee that
25 derives its license from an organization licensee
26 located in a county with a population in excess of

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1 230,000 and bounded by the Mississippi River, is
2 also conducting its own race meeting during the
3 same dates, then the purse allocation shall be as
4 follows: 50% to purses at the track where the races
5 wagered on are being conducted; 50% to purses at
6 the track where the inter-track wagering licensee
7 is accepting such wagers.
8 (iii) If the inter-track wagering is being
9 conducted by an inter-track wagering location
10 licensee, except an intertrack wagering location
11 licensee that derives its license from an
12 organization licensee located in a county with a
13 population in excess of 230,000 and bounded by the
14 Mississippi River, the entire purse allocation for
15 Illinois races shall be to purses at the track
16 where the race meeting being wagered on is being
17 held.
18 (12) The Board shall have all powers necessary and
19 proper to fully supervise and control the conduct of
20 inter-track wagering and simulcast wagering by inter-track
21 wagering licensees and inter-track wagering location
22 licensees, including, but not limited to the following:
23 (A) The Board is vested with power to promulgate
24 reasonable rules and regulations for the purpose of
25 administering the conduct of this wagering and to
26 prescribe reasonable rules, regulations and conditions

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1 under which such wagering shall be held and conducted.
2 Such rules and regulations are to provide for the
3 prevention of practices detrimental to the public
4 interest and for the best interests of said wagering
5 and to impose penalties for violations thereof.
6 (B) The Board, and any person or persons to whom it
7 delegates this power, is vested with the power to enter
8 the facilities of any licensee to determine whether
9 there has been compliance with the provisions of this
10 Act and the rules and regulations relating to the
11 conduct of such wagering.
12 (C) The Board, and any person or persons to whom it
13 delegates this power, may eject or exclude from any
14 licensee's facilities, any person whose conduct or
15 reputation is such that his presence on such premises
16 may, in the opinion of the Board, call into the
17 question the honesty and integrity of, or interfere
18 with the orderly conduct of such wagering; provided,
19 however, that no person shall be excluded or ejected
20 from such premises solely on the grounds of race,
21 color, creed, national origin, ancestry, or sex.
22 (D) (Blank).
23 (E) The Board is vested with the power to appoint
24 delegates to execute any of the powers granted to it
25 under this Section for the purpose of administering
26 this wagering and any rules and regulations

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1 promulgated in accordance with this Act.
2 (F) The Board shall name and appoint a State
3 director of this wagering who shall be a representative
4 of the Board and whose duty it shall be to supervise
5 the conduct of inter-track wagering as may be provided
6 for by the rules and regulations of the Board; such
7 rules and regulation shall specify the method of
8 appointment and the Director's powers, authority and
9 duties.
10 (G) The Board is vested with the power to impose
11 civil penalties of up to $5,000 against individuals and
12 up to $10,000 against licensees for each violation of
13 any provision of this Act relating to the conduct of
14 this wagering, any rules adopted by the Board, any
15 order of the Board or any other action which in the
16 Board's discretion, is a detriment or impediment to
17 such wagering.
18 (13) The Department of Agriculture may enter into
19 agreements with licensees authorizing such licensees to
20 conduct inter-track wagering on races to be held at the
21 licensed race meetings conducted by the Department of
22 Agriculture. Such agreement shall specify the races of the
23 Department of Agriculture's licensed race meeting upon
24 which the licensees will conduct wagering. In the event
25 that a licensee conducts inter-track pari-mutuel wagering
26 on races from the Illinois State Fair or DuQuoin State Fair

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1 which are in addition to the licensee's previously approved
2 racing program, those races shall be considered a separate
3 racing day for the purpose of determining the daily handle
4 and computing the privilege or pari-mutuel tax on that
5 daily handle as provided in Sections 27 and 27.1. Such
6 agreements shall be approved by the Board before such
7 wagering may be conducted. In determining whether to grant
8 approval, the Board shall give due consideration to the
9 best interests of the public and of horse racing. The
10 provisions of paragraphs (1), (8), (8.1), and (8.2) of
11 subsection (h) of this Section which are not specified in
12 this paragraph (13) shall not apply to licensed race
13 meetings conducted by the Department of Agriculture at the
14 Illinois State Fair in Sangamon County or the DuQuoin State
15 Fair in Perry County, or to any wagering conducted on those
16 race meetings.
17 (i) Notwithstanding the other provisions of this Act, the
18conduct of wagering at wagering facilities is authorized on all
19days, except as limited by subsection (b) of Section 19 of this
20Act.
21(Source: P.A. 96-762, eff. 8-25-09; 97-1060, eff. 8-24-12.)
22 (230 ILCS 5/27) (from Ch. 8, par. 37-27)
23 Sec. 27. (a) In addition to the organization license fee
24provided by this Act, until January 1, 2000, a graduated
25privilege tax is hereby imposed for conducting the pari-mutuel

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1system of wagering permitted under this Act. Until January 1,
22000, except as provided in subsection (g) of Section 27 of
3this Act, all of the breakage of each racing day held by any
4licensee in the State shall be paid to the State. Until January
51, 2000, such daily graduated privilege tax shall be paid by
6the licensee from the amount permitted to be retained under
7this Act. Until January 1, 2000, each day's graduated privilege
8tax, breakage, and Horse Racing Tax Allocation funds shall be
9remitted to the Department of Revenue within 48 hours after the
10close of the racing day upon which it is assessed or within
11such other time as the Board prescribes. The privilege tax
12hereby imposed, until January 1, 2000, shall be a flat tax at
13the rate of 2% of the daily pari-mutuel handle except as
14provided in Section 27.1.
15 In addition, every organization licensee, except as
16provided in Section 27.1 of this Act, which conducts multiple
17wagering shall pay, until January 1, 2000, as a privilege tax
18on multiple wagers an amount equal to 1.25% of all moneys
19wagered each day on such multiple wagers, plus an additional
20amount equal to 3.5% of the amount wagered each day on any
21other multiple wager which involves a single betting interest
22on 3 or more horses. The licensee shall remit the amount of
23such taxes to the Department of Revenue within 48 hours after
24the close of the racing day on which it is assessed or within
25such other time as the Board prescribes.
26 This subsection (a) shall be inoperative and of no force

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1and effect on and after January 1, 2000.
2 (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
3at the rate of 1.5% of the daily pari-mutuel handle is imposed
4at all pari-mutuel wagering facilities and on advance deposit
5wagering from a location other than a wagering facility, except
6as otherwise provided for in this subsection (a-5). In addition
7to the pari-mutuel tax imposed on advance deposit wagering
8pursuant to this subsection (a-5), beginning on the effective
9date of this amendatory Act of the 97th General Assembly until
10January 1, 2013, an additional pari-mutuel tax at the rate of
110.25% shall be imposed on advance deposit wagering. Until
12August 25, 2012, the additional 0.25% pari-mutuel tax imposed
13on advance deposit wagering by Public Act 96-972 shall be
14deposited into the Quarter Horse Purse Fund, which shall be
15created as a non-appropriated trust fund administered by the
16Board for grants to thoroughbred organization licensees for
17payment of purses for quarter horse races conducted by the
18organization licensee. Beginning on August 26, 2012, the
19additional 0.25% pari-mutuel tax imposed on advance deposit
20wagering shall be deposited equally into the standardbred purse
21accounts of organization licensees conducting standardbred
22racing. Thoroughbred organization licensees may petition the
23Board to conduct quarter horse racing and receive purse grants
24from the Quarter Horse Purse Fund. The Board shall have
25complete discretion in distributing the Quarter Horse Purse
26Fund to the petitioning organization licensees. Beginning on

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1the effective date of this amendatory Act of the 96th General
2Assembly and until moneys deposited pursuant to Section 54 are
3distributed and received, a pari-mutuel tax at the rate of
40.75% of the daily pari-mutuel handle is imposed at a
5pari-mutuel facility whose license is derived from a track
6located in a county that borders the Mississippi River and
7conducted live racing in the previous year. After moneys
8deposited pursuant to Section 54 are distributed and received,
9a pari-mutuel tax at the rate of 1.5% of the daily pari-mutuel
10handle is imposed at a pari-mutuel facility whose license is
11derived from a track located in a county that borders the
12Mississippi River and conducted live racing in the previous
13year. The pari-mutuel tax imposed by this subsection (a-5)
14shall be remitted to the Department of Revenue within 48 hours
15after the close of the racing day upon which it is assessed or
16within such other time as the Board prescribes.
17 (a-10) Beginning on the date when an organization licensee
18begins conducting electronic gaming pursuant to an electronic
19gaming license, the following pari-mutuel tax is imposed upon
20an organization licensee on Illinois races at the licensee's
21race track:
22 1.5% of the pari-mutuel handle at or below the average
23 daily pari-mutuel handle for 2011.
24 2% of the pari-mutuel handle above the average daily
25 pari-mutuel handle for 2011 up to 125% of the average daily
26 pari-mutuel handle for 2011.

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1 2.5% of the pari-mutuel handle 125% or more above the
2 average daily pari-mutuel handle for 2011 up to 150% of the
3 average daily pari-mutuel handle for 2011.
4 3% of the pari-mutuel handle 150% or more above the
5 average daily pari-mutuel handle for 2011 up to 175% of the
6 average daily pari-mutuel handle for 2011.
7 3.5% of the pari-mutuel handle 175% or more above the
8 average daily pari-mutuel handle for 2011.
9 The pari-mutuel tax imposed by this subsection (a-10) shall
10be remitted to the Board within 48 hours after the close of the
11racing day upon which it is assessed or within such other time
12as the Board prescribes.
13 (b) On or before December 31, 1999, in the event that any
14organization licensee conducts 2 separate programs of races on
15any day, each such program shall be considered a separate
16racing day for purposes of determining the daily handle and
17computing the privilege tax on such daily handle as provided in
18subsection (a) of this Section.
19 (c) Licensees shall at all times keep accurate books and
20records of all monies wagered on each day of a race meeting and
21of the taxes paid to the Department of Revenue under the
22provisions of this Section. The Board or its duly authorized
23representative or representatives shall at all reasonable
24times have access to such records for the purpose of examining
25and checking the same and ascertaining whether the proper
26amount of taxes is being paid as provided. The Board shall

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1require verified reports and a statement of the total of all
2monies wagered daily at each wagering facility upon which the
3taxes are assessed and may prescribe forms upon which such
4reports and statement shall be made.
5 (d) Before a license is issued or re-issued, the licensee
6shall post a bond in the sum of $500,000 to the State of
7Illinois. The bond shall be used to guarantee that the licensee
8faithfully makes the payments, keeps the books and records and
9makes reports, and conducts games of chance in conformity with
10this Act and the rules adopted by the Board. The bond shall not
11be canceled by a surety on less than 30 days' notice in writing
12to the Board. If a bond is canceled and the licensee fails to
13file a new bond with the Board in the required amount on or
14before the effective date of cancellation, the licensee's
15license shall be revoked. The total and aggregate liability of
16the surety on the bond is limited to the amount specified in
17the bond. Any licensee failing or refusing to pay the amount of
18any tax due under this Section shall be guilty of a business
19offense and upon conviction shall be fined not more than $5,000
20in addition to the amount found due as tax under this Section.
21Each day's violation shall constitute a separate offense. All
22fines paid into Court by a licensee hereunder shall be
23transmitted and paid over by the Clerk of the Court to the
24Board.
25 (e) No other license fee, privilege tax, excise tax, or
26racing fee, except as provided in this Act, shall be assessed

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1or collected from any such licensee by the State.
2 (f) No other license fee, privilege tax, excise tax or
3racing fee shall be assessed or collected from any such
4licensee by units of local government except as provided in
5paragraph 10.1 of subsection (h) and subsection (f) of Section
626 of this Act. However, any municipality that has a Board
7licensed horse race meeting at a race track wholly within its
8corporate boundaries or a township that has a Board licensed
9horse race meeting at a race track wholly within the
10unincorporated area of the township may charge a local
11amusement tax not to exceed 10¢ per admission to such horse
12race meeting by the enactment of an ordinance. However, any
13municipality or county that has a Board licensed inter-track
14wagering location facility wholly within its corporate
15boundaries may each impose an admission fee not to exceed $1.00
16per admission to such inter-track wagering location facility,
17so that a total of not more than $2.00 per admission may be
18imposed. Except as provided in subparagraph (g) of Section 27
19of this Act, the inter-track wagering location licensee shall
20collect any and all such fees and within 48 hours remit the
21fees to the Board, which shall, pursuant to rule, cause the
22fees to be distributed to the county or municipality.
23 (g) Notwithstanding any provision in this Act to the
24contrary, if in any calendar year the total taxes and fees from
25wagering on live racing and from inter-track wagering required
26to be collected from licensees and distributed under this Act

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1to all State and local governmental authorities exceeds the
2amount of such taxes and fees distributed to each State and
3local governmental authority to which each State and local
4governmental authority was entitled under this Act for calendar
5year 1994, then the first $11 million of that excess amount
6shall be allocated at the earliest possible date for
7distribution as purse money for the succeeding calendar year.
8Upon reaching the 1994 level, and until the excess amount of
9taxes and fees exceeds $11 million, the Board shall direct all
10licensees to cease paying the subject taxes and fees and the
11Board shall direct all licensees to allocate any such excess
12amount for purses as follows:
13 (i) the excess amount shall be initially divided
14 between thoroughbred and standardbred purses based on the
15 thoroughbred's and standardbred's respective percentages
16 of total Illinois live wagering in calendar year 1994;
17 (ii) each thoroughbred and standardbred organization
18 licensee issued an organization licensee in that
19 succeeding allocation year shall be allocated an amount
20 equal to the product of its percentage of total Illinois
21 live thoroughbred or standardbred wagering in calendar
22 year 1994 (the total to be determined based on the sum of
23 1994 on-track wagering for all organization licensees
24 issued organization licenses in both the allocation year
25 and the preceding year) multiplied by the total amount
26 allocated for standardbred or thoroughbred purses,

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1 provided that the first $1,500,000 of the amount allocated
2 to standardbred purses under item (i) shall be allocated to
3 the Department of Agriculture to be expended with the
4 assistance and advice of the Illinois Standardbred
5 Breeders Funds Advisory Board for the purposes listed in
6 subsection (g) of Section 31 of this Act, before the amount
7 allocated to standardbred purses under item (i) is
8 allocated to standardbred organization licensees in the
9 succeeding allocation year.
10 To the extent the excess amount of taxes and fees to be
11collected and distributed to State and local governmental
12authorities exceeds $11 million, that excess amount shall be
13collected and distributed to State and local authorities as
14provided for under this Act.
15(Source: P.A. 96-762, eff. 8-25-09; 96-1287, eff. 7-26-10;
1697-1060, eff. 8-24-12.)
17 (230 ILCS 5/30) (from Ch. 8, par. 37-30)
18 Sec. 30. (a) The General Assembly declares that it is the
19policy of this State to encourage the breeding of thoroughbred
20horses in this State and the ownership of such horses by
21residents of this State in order to provide for: sufficient
22numbers of high quality thoroughbred horses to participate in
23thoroughbred racing meetings in this State, and to establish
24and preserve the agricultural and commercial benefits of such
25breeding and racing industries to the State of Illinois. It is

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1the intent of the General Assembly to further this policy by
2the provisions of this Act.
3 (b) Each organization licensee conducting a thoroughbred
4racing meeting pursuant to this Act shall provide at least two
5races each day limited to Illinois conceived and foaled horses
6or Illinois foaled horses or both. A minimum of 6 races shall
7be conducted each week limited to Illinois conceived and foaled
8or Illinois foaled horses or both. No horses shall be permitted
9to start in such races unless duly registered under the rules
10of the Department of Agriculture.
11 (c) Conditions of races under subsection (b) shall be
12commensurate with past performance, quality, and class of
13Illinois conceived and foaled and Illinois foaled horses
14available. If, however, sufficient competition cannot be had
15among horses of that class on any day, the races may, with
16consent of the Board, be eliminated for that day and substitute
17races provided.
18 (d) There is hereby created a special fund of the State
19Treasury to be known as the Illinois Thoroughbred Breeders
20Fund.
21 Beginning on the effective date of this amendatory Act of
22the 98th General Assembly, the Illinois Thoroughbred Breeders
23Fund shall become a non-appropriated trust fund held separately
24from State moneys. Expenditures from this Fund shall no longer
25be subject to appropriation.
26 Except as provided in subsection (g) of Section 27 of this

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1Act, 8.5% of all the monies received by the State as privilege
2taxes on Thoroughbred racing meetings shall be paid into the
3Illinois Thoroughbred Breeders Fund.
4 Notwithstanding any provision of law to the contrary,
5amounts deposited into the Illinois Thoroughbred Breeders Fund
6from revenues generated by electronic gaming after the
7effective date of this amendatory Act of the 98th General
8Assembly shall be in addition to tax and fee amounts paid under
9this Section for calendar year 2013 and thereafter.
10 (e) The Illinois Thoroughbred Breeders Fund shall be
11administered by the Department of Agriculture with the advice
12and assistance of the Advisory Board created in subsection (f)
13of this Section.
14 (f) The Illinois Thoroughbred Breeders Fund Advisory Board
15shall consist of the Director of the Department of Agriculture,
16who shall serve as Chairman; a member of the Illinois Racing
17Board, designated by it; 2 representatives of the organization
18licensees conducting thoroughbred racing meetings, recommended
19by them; 2 representatives of the Illinois Thoroughbred
20Breeders and Owners Foundation, recommended by it; one
21representative and 2 representatives of the Horsemen's
22Benevolent Protective Association; and one representative from
23the Illinois Thoroughbred Horsemen's Association or any
24successor organization established in Illinois comprised of
25the largest number of owners and trainers, recommended by it,
26with one representative of the Horsemen's Benevolent and

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1Protective Association to come from its Illinois Division, and
2one from its Chicago Division. Advisory Board members shall
3serve for 2 years commencing January 1 of each odd numbered
4year. If representatives of the organization licensees
5conducting thoroughbred racing meetings, the Illinois
6Thoroughbred Breeders and Owners Foundation, and the
7Horsemen's Benevolent Protection Association, and the Illinois
8Thoroughbred Horsemen's Association have not been recommended
9by January 1, of each odd numbered year, the Director of the
10Department of Agriculture shall make an appointment for the
11organization failing to so recommend a member of the Advisory
12Board. Advisory Board members shall receive no compensation for
13their services as members but shall be reimbursed for all
14actual and necessary expenses and disbursements incurred in the
15execution of their official duties.
16 (g) No monies shall be expended from the Illinois
17Thoroughbred Breeders Fund except as appropriated by the
18General Assembly. Monies expended appropriated from the
19Illinois Thoroughbred Breeders Fund shall be expended by the
20Department of Agriculture, with the advice and assistance of
21the Illinois Thoroughbred Breeders Fund Advisory Board, for the
22following purposes only:
23 (1) To provide purse supplements to owners of horses
24 participating in races limited to Illinois conceived and
25 foaled and Illinois foaled horses. Any such purse
26 supplements shall not be included in and shall be paid in

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1 addition to any purses, stakes, or breeders' awards offered
2 by each organization licensee as determined by agreement
3 between such organization licensee and an organization
4 representing the horsemen. No monies from the Illinois
5 Thoroughbred Breeders Fund shall be used to provide purse
6 supplements for claiming races in which the minimum
7 claiming price is less than $7,500.
8 (2) To provide stakes and awards to be paid to the
9 owners of the winning horses in certain races limited to
10 Illinois conceived and foaled and Illinois foaled horses
11 designated as stakes races.
12 (2.5) To provide an award to the owner or owners of an
13 Illinois conceived and foaled or Illinois foaled horse that
14 wins a maiden special weight, an allowance, overnight
15 handicap race, or claiming race with claiming price of
16 $10,000 or more providing the race is not restricted to
17 Illinois conceived and foaled or Illinois foaled horses.
18 Awards shall also be provided to the owner or owners of
19 Illinois conceived and foaled and Illinois foaled horses
20 that place second or third in those races. To the extent
21 that additional moneys are required to pay the minimum
22 additional awards of 40% of the purse the horse earns for
23 placing first, second or third in those races for Illinois
24 foaled horses and of 60% of the purse the horse earns for
25 placing first, second or third in those races for Illinois
26 conceived and foaled horses, those moneys shall be provided

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1 from the purse account at the track where earned.
2 (3) To provide stallion awards to the owner or owners
3 of any stallion that is duly registered with the Illinois
4 Thoroughbred Breeders Fund Program prior to the effective
5 date of this amendatory Act of 1995 whose duly registered
6 Illinois conceived and foaled offspring wins a race
7 conducted at an Illinois thoroughbred racing meeting other
8 than a claiming race, provided that the stallion stood
9 service within Illinois at the time the offspring was
10 conceived and that the stallion did not stand for service
11 outside of Illinois at any time during the year in which
12 the offspring was conceived. Such award shall not be paid
13 to the owner or owners of an Illinois stallion that served
14 outside this State at any time during the calendar year in
15 which such race was conducted.
16 (4) To provide $75,000 annually for purses to be
17 distributed to county fairs that provide for the running of
18 races during each county fair exclusively for the
19 thoroughbreds conceived and foaled in Illinois. The
20 conditions of the races shall be developed by the county
21 fair association and reviewed by the Department with the
22 advice and assistance of the Illinois Thoroughbred
23 Breeders Fund Advisory Board. There shall be no wagering of
24 any kind on the running of Illinois conceived and foaled
25 races at county fairs.
26 (4.1) To provide purse money for an Illinois stallion

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1 stakes program.
2 (5) No less than 90% 80% of all monies appropriated
3 from the Illinois Thoroughbred Breeders Fund shall be
4 expended for the purposes in (1), (2), (2.5), (3), (4),
5 (4.1), and (5) as shown above.
6 (6) To provide for educational programs regarding the
7 thoroughbred breeding industry.
8 (7) To provide for research programs concerning the
9 health, development and care of the thoroughbred horse.
10 (8) To provide for a scholarship and training program
11 for students of equine veterinary medicine.
12 (9) To provide for dissemination of public information
13 designed to promote the breeding of thoroughbred horses in
14 Illinois.
15 (10) To provide for all expenses incurred in the
16 administration of the Illinois Thoroughbred Breeders Fund.
17 (h) The Illinois Thoroughbred Breeders Fund is not subject
18to administrative charges or chargebacks, including, but not
19limited to, those authorized under Section 8h of the State
20Finance Act. Whenever the Governor finds that the amount in the
21Illinois Thoroughbred Breeders Fund is more than the total of
22the outstanding appropriations from such fund, the Governor
23shall notify the State Comptroller and the State Treasurer of
24such fact. The Comptroller and the State Treasurer, upon
25receipt of such notification, shall transfer such excess amount
26from the Illinois Thoroughbred Breeders Fund to the General

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1Revenue Fund.
2 (i) A sum equal to 13% 12 1/2% of the first prize money of
3every purse won by an Illinois foaled or an Illinois conceived
4and foaled horse in races not limited to Illinois foaled horses
5or Illinois conceived and foaled horses, or both, shall be paid
6by the organization licensee conducting the horse race meeting.
7Such sum shall be paid 50% from the organization licensee's
8account and 50% from the purse account of the licensee share of
9the money wagered as follows: 11 1/2% to the breeder of the
10winning horse and 1 1/2% 1% to the organization representing
11thoroughbred breeders and owners whose representative serves
12on the Illinois Thoroughbred Breeders Fund Advisory Board for
13verifying the amounts of breeders' awards earned, assuring
14their distribution in accordance with this Act, and servicing
15and promoting the Illinois thoroughbred horse racing industry.
16The organization representing thoroughbred breeders and owners
17shall cause all expenditures of monies received under this
18subsection (i) to be audited at least annually by a registered
19public accountant. The organization shall file copies of each
20annual audit with the Racing Board, the Clerk of the House of
21Representatives and the Secretary of the Senate, and shall make
22copies of each annual audit available to the public upon
23request and upon payment of the reasonable cost of photocopying
24the requested number of copies. Such payments shall not reduce
25any award to the owner of the horse or reduce the taxes payable
26under this Act. Upon completion of its racing meet, each

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1organization licensee shall deliver to the organization
2representing thoroughbred breeders and owners whose
3representative serves on the Illinois Thoroughbred Breeders
4Fund Advisory Board a listing of all the Illinois foaled and
5the Illinois conceived and foaled horses which won breeders'
6awards and the amount of such breeders' awards under this
7subsection to verify accuracy of payments and assure proper
8distribution of breeders' awards in accordance with the
9provisions of this Act. Such payments shall be delivered by the
10organization licensee within 30 days of the end of each race
11meeting.
12 (j) A sum equal to 13% 12 1/2% of the first prize money won
13in each race limited to Illinois foaled horses or Illinois
14conceived and foaled horses, or both, shall be paid in the
15following manner by the organization licensee conducting the
16horse race meeting, 50% from the organization licensee's
17account and 50% from the purse account of the licensee share of
18the money wagered: 11 1/2% to the breeders of the horses in
19each such race which are the official first, second, third and
20fourth finishers 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 proper distribution in accordance with this Act, and
25servicing and promoting the Illinois thoroughbred horse racing
26industry. The organization representing thoroughbred breeders

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1and owners shall cause all expenditures of monies received
2under this subsection (j) to be audited at least annually by a
3registered public accountant. The organization shall file
4copies of each annual audit with the Racing Board, the Clerk of
5the House of Representatives and the Secretary of the Senate,
6and shall make copies of each annual audit available to the
7public upon request and upon payment of the reasonable cost of
8photocopying the requested number of copies.
9 The 11 1/2% paid to the breeders in accordance with this
10subsection shall be distributed as follows:
11 (1) 60% of such sum shall be paid to the breeder of the
12 horse which finishes in the official first position;
13 (2) 20% of such sum shall be paid to the breeder of the
14 horse which finishes in the official second position;
15 (3) 15% of such sum shall be paid to the breeder of the
16 horse which finishes in the official third position; and
17 (4) 5% of such sum shall be paid to the breeder of the
18 horse which finishes in the official fourth position.
19 Such payments shall not reduce any award to the owners of a
20horse or reduce the taxes payable under this Act. Upon
21completion of its racing meet, each organization licensee shall
22deliver to the organization representing thoroughbred breeders
23and owners whose representative serves on the Illinois
24Thoroughbred Breeders Fund Advisory Board a listing of all the
25Illinois foaled and the Illinois conceived and foaled horses
26which won breeders' awards and the amount of such breeders'

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1awards in accordance with the provisions of this Act. Such
2payments shall be delivered by the organization licensee within
330 days of the end of each race meeting.
4 (k) The term "breeder", as used herein, means the owner of
5the mare at the time the foal is dropped. An "Illinois foaled
6horse" is a foal dropped by a mare which enters this State on
7or before December 1, in the year in which the horse is bred,
8provided the mare remains continuously in this State until its
9foal is born. An "Illinois foaled horse" also means a foal born
10of a mare in the same year as the mare enters this State on or
11before March 1, and remains in this State at least 30 days
12after foaling, is bred back during the season of the foaling to
13an Illinois Registered Stallion (unless a veterinarian
14certifies that the mare should not be bred for health reasons),
15and is not bred to a stallion standing in any other state
16during the season of foaling. An "Illinois foaled horse" also
17means a foal born in Illinois of a mare purchased at public
18auction subsequent to the mare entering this State on or before
19March 1 prior to February 1 of the foaling year providing the
20mare is owned solely by one or more Illinois residents or an
21Illinois entity that is entirely owned by one or more Illinois
22residents.
23 (l) The Department of Agriculture shall, by rule, with the
24advice and assistance of the Illinois Thoroughbred Breeders
25Fund Advisory Board:
26 (1) Qualify stallions for Illinois breeding; such

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1 stallions to stand for service within the State of Illinois
2 at the time of a foal's conception. Such stallion must not
3 stand for service at any place outside the State of
4 Illinois during the calendar year in which the foal is
5 conceived. The Department of Agriculture may assess and
6 collect an application fee of up to $500 fees for the
7 registration of Illinois-eligible stallions. All fees
8 collected are to be held in trust accounts for the purposes
9 set forth in this Act and in accordance with Section 205-15
10 of the Department of Agriculture Law paid into the Illinois
11 Thoroughbred Breeders Fund.
12 (2) Provide for the registration of Illinois conceived
13 and foaled horses and Illinois foaled horses. No such horse
14 shall compete in the races limited to Illinois conceived
15 and foaled horses or Illinois foaled horses or both unless
16 registered with the Department of Agriculture. The
17 Department of Agriculture may prescribe such forms as are
18 necessary to determine the eligibility of such horses. The
19 Department of Agriculture may assess and collect
20 application fees for the registration of Illinois-eligible
21 foals. All fees collected are to be held in trust accounts
22 for the purposes set forth in this Act and in accordance
23 with Section 205-15 of the Department of Agriculture Law
24 paid into the Illinois Thoroughbred Breeders Fund. No
25 person shall knowingly prepare or cause preparation of an
26 application for registration of such foals containing

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1 false information.
2 (m) The Department of Agriculture, with the advice and
3assistance of the Illinois Thoroughbred Breeders Fund Advisory
4Board, shall provide that certain races limited to Illinois
5conceived and foaled and Illinois foaled horses be stakes races
6and determine the total amount of stakes and awards to be paid
7to the owners of the winning horses in such races.
8 In determining the stakes races and the amount of awards
9for such races, the Department of Agriculture shall consider
10factors, including but not limited to, the amount of money
11appropriated for the Illinois Thoroughbred Breeders Fund
12program, organization licensees' contributions, availability
13of stakes caliber horses as demonstrated by past performances,
14whether the race can be coordinated into the proposed racing
15dates within organization licensees' racing dates, opportunity
16for colts and fillies and various age groups to race, public
17wagering on such races, and the previous racing schedule.
18 (n) The Board and the organizational licensee shall notify
19the Department of the conditions and minimum purses for races
20limited to Illinois conceived and foaled and Illinois foaled
21horses conducted for each organizational licensee conducting a
22thoroughbred racing meeting. The Department of Agriculture
23with the advice and assistance of the Illinois Thoroughbred
24Breeders Fund Advisory Board may allocate monies for purse
25supplements for such races. In determining whether to allocate
26money and the amount, the Department of Agriculture shall

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1consider factors, including but not limited to, the amount of
2money appropriated for the Illinois Thoroughbred Breeders Fund
3program, the number of races that may occur, and the
4organizational licensee's purse structure.
5 (o) In order to improve the breeding quality of
6thoroughbred horses in the State, the General Assembly
7recognizes that existing provisions of this Section to
8encourage such quality breeding need to be revised and
9strengthened. As such, a Thoroughbred Breeder's Program Task
10Force is to be appointed by the Governor by September 1, 1999
11to make recommendations to the General Assembly by no later
12than March 1, 2000. This task force is to be composed of 2
13representatives from the Illinois Thoroughbred Breeders and
14Owners Foundation, 2 from the Illinois Thoroughbred Horsemen's
15Association, 3 from Illinois race tracks operating
16thoroughbred race meets for an average of at least 30 days in
17the past 3 years, the Director of Agriculture, the Executive
18Director of the Racing Board, who shall serve as Chairman.
19(Source: P.A. 91-40, eff. 6-25-99.)
20 (230 ILCS 5/30.5)
21 Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
22 (a) The General Assembly declares that it is the policy of
23this State to encourage the breeding of racing quarter horses
24in this State and the ownership of such horses by residents of
25this State in order to provide for sufficient numbers of high

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1quality racing quarter horses in this State and to establish
2and preserve the agricultural and commercial benefits of such
3breeding and racing industries to the State of Illinois. It is
4the intent of the General Assembly to further this policy by
5the provisions of this Act.
6 (b) There is hereby created non-appropriated trust a
7special fund in the State Treasury to be known as the Illinois
8Racing Quarter Horse Breeders Fund, which is held separately
9from State moneys. Except as provided in subsection (g) of
10Section 27 of this Act, 8.5% of all the moneys received by the
11State as pari-mutuel taxes on quarter horse racing shall be
12paid into the Illinois Racing Quarter Horse Breeders Fund. The
13Illinois Racing Quarter Horse Breeders Fund shall not be
14subject to administrative charges or chargebacks, including,
15but not limited to, those authorized under Section 8h of the
16State Finance Act.
17 (c) The Illinois Racing Quarter Horse Breeders Fund shall
18be administered by the Department of Agriculture with the
19advice and assistance of the Advisory Board created in
20subsection (d) of this Section.
21 (d) The Illinois Racing Quarter Horse Breeders Fund
22Advisory Board shall consist of the Director of the Department
23of Agriculture, who shall serve as Chairman; a member of the
24Illinois Racing Board, designated by it; one representative of
25the organization licensees conducting pari-mutuel quarter
26horse racing meetings, recommended by them; 2 representatives

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1of the Illinois Running Quarter Horse Association, recommended
2by it; and the Superintendent of Fairs and Promotions from the
3Department of Agriculture. Advisory Board members shall serve
4for 2 years commencing January 1 of each odd numbered year. If
5representatives have not been recommended by January 1 of each
6odd numbered year, the Director of the Department of
7Agriculture may make an appointment for the organization
8failing to so recommend a member of the Advisory Board.
9Advisory Board members shall receive no compensation for their
10services as members but may be reimbursed for all actual and
11necessary expenses and disbursements incurred in the execution
12of their official duties.
13 (e) Moneys in No moneys shall be expended from the Illinois
14Racing Quarter Horse Breeders Fund except as appropriated by
15the General Assembly. Moneys appropriated from the Illinois
16Racing Quarter Horse Breeders Fund shall be expended by the
17Department of Agriculture, with the advice and assistance of
18the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
19for the following purposes only:
20 (1) To provide stakes and awards to be paid to the
21 owners of the winning horses in certain races. This
22 provision is limited to Illinois conceived and foaled
23 horses.
24 (2) To provide an award to the owner or owners of an
25 Illinois conceived and foaled horse that wins a race when
26 pari-mutuel wagering is conducted; providing the race is

SB1739 Engrossed- 300 -LRB098 10559 AMC 40804 b
1 not restricted to Illinois conceived and foaled horses.
2 (3) To provide purse money for an Illinois stallion
3 stakes program.
4 (4) To provide for purses to be distributed for the
5 running of races during the Illinois State Fair and the
6 DuQuoin State Fair exclusively for quarter horses
7 conceived and foaled in Illinois.
8 (5) To provide for purses to be distributed for the
9 running of races at Illinois county fairs exclusively for
10 quarter horses conceived and foaled in Illinois.
11 (6) To provide for purses to be distributed for running
12 races exclusively for quarter horses conceived and foaled
13 in Illinois at locations in Illinois determined by the
14 Department of Agriculture with advice and consent of the
15 Illinois Racing Quarter Horse Breeders Fund Advisory
16 Board.
17 (7) No less than 90% of all moneys appropriated from
18 the Illinois Racing Quarter Horse Breeders Fund shall be
19 expended for the purposes in items (1), (2), (3), (4), and
20 (5) of this subsection (e).
21 (8) To provide for research programs concerning the
22 health, development, and care of racing quarter horses.
23 (9) To provide for dissemination of public information
24 designed to promote the breeding of racing quarter horses
25 in Illinois.
26 (10) To provide for expenses incurred in the

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1 administration of the Illinois Racing Quarter Horse
2 Breeders Fund.
3 (f) The Department of Agriculture shall, by rule, with the
4advice and assistance of the Illinois Racing Quarter Horse
5Breeders Fund Advisory Board:
6 (1) Qualify stallions for Illinois breeding; such
7 stallions to stand for service within the State of
8 Illinois, at the time of a foal's conception. Such stallion
9 must not stand for service at any place outside the State
10 of Illinois during the calendar year in which the foal is
11 conceived. The Department of Agriculture may assess and
12 collect application fees for the registration of
13 Illinois-eligible stallions. All fees collected are to be
14 paid into the Illinois Racing Quarter Horse Breeders Fund.
15 (2) Provide for the registration of Illinois conceived
16 and foaled horses. No such horse shall compete in the races
17 limited to Illinois conceived and foaled horses unless it
18 is registered with the Department of Agriculture. The
19 Department of Agriculture may prescribe such forms as are
20 necessary to determine the eligibility of such horses. The
21 Department of Agriculture may assess and collect
22 application fees for the registration of Illinois-eligible
23 foals. All fees collected are to be paid into the Illinois
24 Racing Quarter Horse Breeders Fund. No person shall
25 knowingly prepare or cause preparation of an application
26 for registration of such foals that contains false

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1 information.
2 (g) The Department of Agriculture, with the advice and
3assistance of the Illinois Racing Quarter Horse Breeders Fund
4Advisory Board, shall provide that certain races limited to
5Illinois conceived and foaled be stakes races and determine the
6total amount of stakes and awards to be paid to the owners of
7the winning horses in such races.
8(Source: P.A. 91-40, eff. 6-25-99; revised 10-18-12.)
9 (230 ILCS 5/31) (from Ch. 8, par. 37-31)
10 Sec. 31. (a) The General Assembly declares that it is the
11policy of this State to encourage the breeding of standardbred
12horses in this State and the ownership of such horses by
13residents of this State in order to provide for: sufficient
14numbers of high quality standardbred horses to participate in
15harness racing meetings in this State, and to establish and
16preserve the agricultural and commercial benefits of such
17breeding and racing industries to the State of Illinois. It is
18the intent of the General Assembly to further this policy by
19the provisions of this Section of this Act.
20 (b) Each organization licensee conducting a harness racing
21meeting pursuant to this Act shall provide for at least two
22races each race program limited to Illinois conceived and
23foaled horses. A minimum of 6 races shall be conducted each
24week limited to Illinois conceived and foaled horses. No horses
25shall be permitted to start in such races unless duly

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1registered under the rules of the Department of Agriculture.
2 (b-5) Organization licensees, not including the Illinois
3State Fair or the DuQuoin State Fair, shall provide stake races
4and early closer races for Illinois conceived and foaled horses
5so that purses distributed for such races shall be no less than
617% of total purses distributed for harness racing in that
7calendar year in addition to any stakes payments and starting
8fees contributed by horse owners.
9 (b-10) Each organization licensee conducting a harness
10racing meeting pursuant to this Act shall provide an owner
11award to be paid from the purse account equal to 25% of the
12amount earned by Illinois conceived and foaled horses in races
13that are not restricted to Illinois conceived and foaled
14horses. The owner awards shall not be paid on races below the
15$10,000 claiming class.
16 (c) Conditions of races under subsection (b) shall be
17commensurate with past performance, quality and class of
18Illinois conceived and foaled horses available. If, however,
19sufficient competition cannot be had among horses of that class
20on any day, the races may, with consent of the Board, be
21eliminated for that day and substitute races provided.
22 (d) There is hereby created a special fund of the State
23Treasury to be known as the Illinois Standardbred Breeders
24Fund.
25 During the calendar year 1981, and each year thereafter,
26except as provided in subsection (g) of Section 27 of this Act,

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1eight and one-half per cent of all the monies received by the
2State as privilege taxes on harness racing meetings shall be
3paid into the Illinois Standardbred Breeders Fund.
4 (e) The Illinois Standardbred Breeders Fund shall be
5administered by the Department of Agriculture with the
6assistance and advice of the Advisory Board created in
7subsection (f) of this Section.
8 (f) The Illinois Standardbred Breeders Fund Advisory Board
9is hereby created. The Advisory Board shall consist of the
10Director of the Department of Agriculture, who shall serve as
11Chairman; the Superintendent of the Illinois State Fair; a
12member of the Illinois Racing Board, designated by it; a
13representative of the Illinois Standardbred Owners and
14Breeders Association, recommended by it; a representative of
15the Illinois Association of Agricultural Fairs, recommended by
16it, such representative to be from a fair at which Illinois
17conceived and foaled racing is conducted; a representative of
18the organization licensees conducting harness racing meetings,
19recommended by them and a representative of the Illinois
20Harness Horsemen's Association, recommended by it. Advisory
21Board members shall serve for 2 years commencing January 1, of
22each odd numbered year. If representatives of the Illinois
23Standardbred Owners and Breeders Associations, the Illinois
24Association of Agricultural Fairs, the Illinois Harness
25Horsemen's Association, and the organization licensees
26conducting harness racing meetings have not been recommended by

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1January 1, of each odd numbered year, the Director of the
2Department of Agriculture shall make an appointment for the
3organization failing to so recommend a member of the Advisory
4Board. Advisory Board members shall receive no compensation for
5their services as members but shall be reimbursed for all
6actual and necessary expenses and disbursements incurred in the
7execution of their official duties.
8 (g) No monies shall be expended from the Illinois
9Standardbred Breeders Fund except as appropriated by the
10General Assembly. Monies appropriated from the Illinois
11Standardbred Breeders Fund shall be expended by the Department
12of Agriculture, with the assistance and advice of the Illinois
13Standardbred Breeders Fund Advisory Board for the following
14purposes only:
15 1. To provide purses for races limited to Illinois
16 conceived and foaled horses at the State Fair and the
17 DuQuoin State Fair.
18 2. To provide purses for races limited to Illinois
19 conceived and foaled horses at county fairs.
20 3. To provide purse supplements for races limited to
21 Illinois conceived and foaled horses conducted by
22 associations conducting harness racing meetings.
23 4. No less than 75% of all monies in the Illinois
24 Standardbred Breeders Fund shall be expended for purses in
25 1, 2 and 3 as shown above.
26 5. In the discretion of the Department of Agriculture

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1 to provide awards to harness breeders of Illinois conceived
2 and foaled horses which win races conducted by organization
3 licensees conducting harness racing meetings. A breeder is
4 the owner of a mare at the time of conception. No more than
5 10% of all monies appropriated from the Illinois
6 Standardbred Breeders Fund shall be expended for such
7 harness breeders awards. No more than 25% of the amount
8 expended for harness breeders awards shall be expended for
9 expenses incurred in the administration of such harness
10 breeders awards.
11 6. To pay for the improvement of racing facilities
12 located at the State Fair and County fairs.
13 7. To pay the expenses incurred in the administration
14 of the Illinois Standardbred Breeders Fund.
15 8. To promote the sport of harness racing, including
16 grants up to a maximum of $7,500 per fair per year for
17 conducting pari-mutuel wagering during the advertised
18 dates of a county fair.
19 9. To pay up to $50,000 annually for the Department of
20 Agriculture to conduct drug testing at county fairs racing
21 standardbred horses.
22 10. To pay up to $100,000 annually for distribution to
23 Illinois county fairs to supplement premiums offered in
24 junior classes.
25 11. To pay up to $100,000 annually for division and
26 equal distribution to the animal sciences department of

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1 each Illinois public university system engaged in equine
2 research and education on or before the effective date of
3 this amendatory Act of the 98th General Assembly for equine
4 research and education.
5 (h) (Blank) Whenever the Governor finds that the amount in
6the Illinois Standardbred Breeders Fund is more than the total
7of the outstanding appropriations from such fund, the Governor
8shall notify the State Comptroller and the State Treasurer of
9such fact. The Comptroller and the State Treasurer, upon
10receipt of such notification, shall transfer such excess amount
11from the Illinois Standardbred Breeders Fund to the General
12Revenue Fund.
13 (i) A sum equal to 13% 12 1/2% of the first prize money of
14the gross every purse won by an Illinois conceived and foaled
15horse shall be paid 50% by the organization licensee conducting
16the horse race meeting to the breeder of such winning horse
17from the organization licensee's account and 50% from the purse
18account of the licensee share of the money wagered. Such
19payment shall not reduce any award to the owner of the horse or
20reduce the taxes payable under this Act. Such payment shall be
21delivered by the organization licensee at the end of each
22quarter race meeting.
23 (j) The Department of Agriculture shall, by rule, with the
24assistance and advice of the Illinois Standardbred Breeders
25Fund Advisory Board:
26 1. Qualify stallions for Illinois Standardbred

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1 Breeders Fund breeding; such stallion shall be owned by a
2 resident of the State of Illinois or by an Illinois
3 corporation all of whose shareholders, directors, officers
4 and incorporators are residents of the State of Illinois.
5 Such stallion shall stand for service at and within the
6 State of Illinois at the time of a foal's conception, and
7 such stallion must not stand for service at any place, nor
8 may semen from such stallion be transported, outside the
9 State of Illinois during that calendar year in which the
10 foal is conceived and that the owner of the stallion was
11 for the 12 months prior, a resident of Illinois. Foals
12 conceived outside the State of Illinois from shipped semen
13 from a stallion qualified for breeders' awards under this
14 Section are not eligible to participate in the Illinois
15 conceived and foaled program. The articles of agreement of
16 any partnership, joint venture, limited partnership,
17 syndicate, association or corporation and any bylaws and
18 stock certificates must contain a restriction that
19 provides that the ownership or transfer of interest by any
20 one of the persons a party to the agreement can only be
21 made to a person who qualifies as an Illinois resident.
22 2. Provide for the registration of Illinois conceived
23 and foaled horses and no such horse shall compete in the
24 races limited to Illinois conceived and foaled horses
25 unless registered with the Department of Agriculture. The
26 Department of Agriculture may prescribe such forms as may

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1 be necessary to determine the eligibility of such horses.
2 No person shall knowingly prepare or cause preparation of
3 an application for registration of such foals containing
4 false information. A mare (dam) must be in the state at
5 least 180 30 days prior to foaling or remain in the State
6 at least 30 days at the time of foaling. Beginning with the
7 1996 breeding season and for foals of 1997 and thereafter,
8 a foal conceived in the State of Illinois by transported
9 fresh semen may be eligible for Illinois conceived and
10 foaled registration provided all breeding and foaling
11 requirements are met. The stallion must be qualified for
12 Illinois Standardbred Breeders Fund breeding at the time of
13 conception and the mare must be inseminated within the
14 State of Illinois. The foal must be dropped in Illinois and
15 properly registered with the Department of Agriculture in
16 accordance with this Act.
17 3. Provide that at least a 5 day racing program shall
18 be conducted at the State Fair each year, which program
19 shall include at least the following races limited to
20 Illinois conceived and foaled horses: (a) a two year old
21 Trot and Pace, and Filly Division of each; (b) a three year
22 old Trot and Pace, and Filly Division of each; (c) an aged
23 Trot and Pace, and Mare Division of each.
24 4. Provide for the payment of nominating, sustaining
25 and starting fees for races promoting the sport of harness
26 racing and for the races to be conducted at the State Fair

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1 as provided in subsection (j) 3 of this Section provided
2 that the nominating, sustaining and starting payment
3 required from an entrant shall not exceed 2% of the purse
4 of such race. All nominating, sustaining and starting
5 payments shall be held for the benefit of entrants and
6 shall be paid out as part of the respective purses for such
7 races. Nominating, sustaining and starting fees shall be
8 held in trust accounts for the purposes as set forth in
9 this Act and in accordance with Section 205-15 of the
10 Department of Agriculture Law (20 ILCS 205/205-15).
11 5. Provide for the registration with the Department of
12 Agriculture of Colt Associations or county fairs desiring
13 to sponsor races at county fairs.
14 6. Provide for the promotion of producing standardbred
15 racehorses by providing a bonus award program for owners of
16 2-year-old horses that win multiple major stakes races that
17 are limited to Illinois conceived and foaled horses.
18 (k) The Department of Agriculture, with the advice and
19assistance of the Illinois Standardbred Breeders Fund Advisory
20Board, may allocate monies for purse supplements for such
21races. In determining whether to allocate money and the amount,
22the Department of Agriculture shall consider factors,
23including but not limited to, the amount of money appropriated
24for the Illinois Standardbred Breeders Fund program, the number
25of races that may occur, and an organizational licensee's purse
26structure. The organizational licensee shall notify the

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1Department of Agriculture of the conditions and minimum purses
2for races limited to Illinois conceived and foaled horses to be
3conducted by each organizational licensee conducting a harness
4racing meeting for which purse supplements have been
5negotiated.
6 (l) All races held at county fairs and the State Fair which
7receive funds from the Illinois Standardbred Breeders Fund
8shall be conducted in accordance with the rules of the United
9States Trotting Association unless otherwise modified by the
10Department of Agriculture.
11 (m) At all standardbred race meetings held or conducted
12under authority of a license granted by the Board, and at all
13standardbred races held at county fairs which are approved by
14the Department of Agriculture or at the Illinois or DuQuoin
15State Fairs, no one shall jog, train, warm up or drive a
16standardbred horse unless he or she is wearing a protective
17safety helmet, with the chin strap fastened and in place, which
18meets the standards and requirements as set forth in the 1984
19Standard for Protective Headgear for Use in Harness Racing and
20Other Equestrian Sports published by the Snell Memorial
21Foundation, or any standards and requirements for headgear the
22Illinois Racing Board may approve. Any other standards and
23requirements so approved by the Board shall equal or exceed
24those published by the Snell Memorial Foundation. Any
25equestrian helmet bearing the Snell label shall be deemed to
26have met those standards and requirements.

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1(Source: P.A. 91-239, eff. 1-1-00.)
2 (230 ILCS 5/31.1) (from Ch. 8, par. 37-31.1)
3 Sec. 31.1. (a) Organization licensees collectively shall
4contribute annually to charity the sum of $1,000,000 $750,000
5to non-profit organizations that provide medical and family,
6counseling, and similar services to persons who reside or work
7on the backstretch of Illinois racetracks. These contributions
8shall be collected as follows: (i) no later than July 1st of
9each year the Board shall assess each organization licensee,
10except those tracks which are not within 100 miles of each
11other which tracks shall pay $40,000 $30,000 annually apiece
12into the Board charity fund, that amount which equals $920,000
13$690,000 multiplied by the amount of pari-mutuel wagering
14handled by the organization licensee in the year preceding
15assessment and divided by the total pari-mutuel wagering
16handled by all Illinois organization licensees, except those
17tracks which are not within 100 miles of each other, in the
18year preceding assessment; (ii) notice of the assessed
19contribution shall be mailed to each organization licensee;
20(iii) within thirty days of its receipt of such notice, each
21organization licensee shall remit the assessed contribution to
22the Board. If an organization licensee wilfully fails to so
23remit the contribution, the Board may revoke its license to
24conduct horse racing.
25 (b) No later than October 1st of each year, any qualified

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1charitable organization seeking an allotment of contributed
2funds shall submit to the Board an application for those funds,
3using the Board's approved form. No later than December 31st of
4each year, the Board shall distribute all such amounts
5collected that year to such charitable organization
6applicants.
7(Source: P.A. 87-110.)
8 (230 ILCS 5/32.1)
9 Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
10real estate equalization.
11 (a) In order to encourage new investment in Illinois
12racetrack facilities and mitigate differing real estate tax
13burdens among all racetracks, the licensees affiliated or
14associated with each racetrack that has been awarded live
15racing dates in the current year shall receive an immediate
16pari-mutuel tax credit in an amount equal to the greater of (i)
1750% of the amount of the real estate taxes paid in the prior
18year attributable to that racetrack, or (ii) the amount by
19which the real estate taxes paid in the prior year attributable
20to that racetrack exceeds 60% of the average real estate taxes
21paid in the prior year for all racetracks awarded live horse
22racing meets in the current year.
23 Each year, regardless of whether the organization licensee
24conducted live racing in the year of certification, the Board
25shall certify in writing, prior to December 31, the real estate

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1taxes paid in that year for each racetrack and the amount of
2the pari-mutuel tax credit that each organization licensee,
3intertrack wagering licensee, and intertrack wagering location
4licensee that derives its license from such racetrack is
5entitled in the succeeding calendar year. The real estate taxes
6considered under this Section for any racetrack shall be those
7taxes on the real estate parcels and related facilities used to
8conduct a horse race meeting and inter-track wagering at such
9racetrack under this Act. In no event shall the amount of the
10tax credit under this Section exceed the amount of pari-mutuel
11taxes otherwise calculated under this Act. The amount of the
12tax credit under this Section shall be retained by each
13licensee and shall not be subject to any reallocation or
14further distribution under this Act. The Board may promulgate
15emergency rules to implement this Section.
16 (b) Beginning on January 1 following the calendar year
17during which an organization licensee begins conducting
18electronic gaming operations pursuant to an electronic gaming
19license issued under the Illinois Gambling Act, the
20organization licensee shall be ineligible to receive a tax
21credit under this Section.
22(Source: P.A. 91-40, eff. 6-25-99.)
23 (230 ILCS 5/34.3 new)
24 Sec. 34.3. Drug testing. The Illinois Racing Board and the
25Department of Agriculture shall jointly establish a program for

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1the purpose of conducting drug testing of horses at county
2fairs and shall adopt any rules necessary for enforcement of
3the program. The rules shall include appropriate penalties for
4violations.
5 (230 ILCS 5/36) (from Ch. 8, par. 37-36)
6 Sec. 36. (a) Whoever administers or conspires to administer
7to any horse a hypnotic, narcotic, stimulant, depressant or any
8chemical substance which may affect the speed of a horse at any
9time in any race where the purse or any part of the purse is
10made of money authorized by any Section of this Act, except
11those chemical substances permitted by ruling of the Board,
12internally, externally or by hypodermic method in a race or
13prior thereto, or whoever knowingly enters a horse in any race
14within a period of 24 hours after any hypnotic, narcotic,
15stimulant, depressant or any other chemical substance which may
16affect the speed of a horse at any time, except those chemical
17substances permitted by ruling of the Board, has been
18administered to such horse either internally or externally or
19by hypodermic method for the purpose of increasing or retarding
20the speed of such horse shall be guilty of a Class 4 felony.
21The Board shall suspend or revoke such violator's license.
22 (b) The term "hypnotic" as used in this Section includes
23all barbituric acid preparations and derivatives.
24 (c) The term "narcotic" as used in this Section includes
25opium and all its alkaloids, salts, preparations and

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1derivatives, cocaine and all its salts, preparations and
2derivatives and substitutes.
3 (d) The provisions of this Section 36 and the treatment
4authorized herein apply to horses entered in and competing in
5race meetings as defined in Section 3.07 of this Act and to
6horses entered in and competing at any county fair.
7(Source: P.A. 79-1185.)
8 (230 ILCS 5/39.2 new)
9 Sec. 39.2. Prohibition of political contributions from
10certain licensees and applicants.
11 (a) The General Assembly has a compelling interest in
12protecting the integrity of both the electoral process and the
13legislative process by preventing corruption and the
14appearance of corruption which may arise through permitting
15certain political campaign contributions by certain persons
16involved in the horse racing industry and regulated by the
17State. Unlike most other regulated industries, horse racing is
18especially susceptible to corruption and potential criminal
19influence. In Illinois, only licensed horse racing is legal and
20all other such activities are strictly prohibited. Given these
21circumstances, it is imperative to eliminate any potential
22corrupt influence in the horse racing industry and the
23electoral process.
24 Banning political campaign contributions by certain
25persons subject to this Section to State officeholders and

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1candidates for such offices and to county and municipal
2officeholders and candidates for such offices in counties and
3municipalities that receive financial benefits from horse
4racing is necessary to prevent corruption and the appearance of
5corruption that may arise when political campaign
6contributions and horse racing that is regulated by the State
7and that confers benefits on counties and municipalities are
8intermingled.
9 (b) As used in this Section:
10 "Affiliated entity" means (i) any corporate parent and each
11operating subsidiary of the business entity applying for or
12holding a license, (ii) each operating subsidiary of the
13corporate parent of the business entity applying for or holding
14a license, (iii) any organization recognized by the United
15States Internal Revenue Service as a tax-exempt organization
16described in Section 501(c) of the Internal Revenue Code of
171986 (or any successor provision of federal tax law)
18established by one or more business entities seeking or holding
19a license, any affiliated entity of such business entity, or
20any affiliated person of such business entity, and (iv) any
21political committee for which the business entity applying for
22or holding a license, or any 501(c) organization described in
23item (iii) related to that business entity, is the sponsoring
24entity, as defined in Section 9-3 of the Election Code. For
25purposes of item (iv), the funding of all business entities
26applying for or holding a license shall be aggregated in

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1determining whether such political committee is an affiliated
2entity.
3 "Affiliated person" means (i) any person with any ownership
4interest or distributive share in excess of 7.5% of any
5business entity applying for or holding a license, (ii)
6executive employees of any such business entity, and (iii) the
7spouse of the persons described in items (i) and (ii).
8 "Business entity" means any entity doing business for
9profit, whether organized as a corporation, partnership, sole
10proprietorship, limited liability company, or otherwise.
11 "Contribution" means a contribution as defined in Section
129-1.4 of the Election Code.
13 "Declared candidate" means a person who has filed a
14statement of candidacy and petition for nomination or election
15in the principal office of the State Board of Elections, or in
16the office of the appropriate election authority for any county
17or municipality in which a race track is located.
18 "Executive employee" means (i) any person who is an officer
19or director or who fulfills duties equivalent to those of an
20officer or director of a business entity applying for or
21holding a license and (ii) any employee of such business entity
22who is required to register under the Lobbyist Registration
23Act.
24 "License" means any organization, inter-track wagering,
25inter-track wagering location, advance deposit wagering or
26concessionaire license issued pursuant to this Act.

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

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1subsection (c) shall pay an amount equal to the value of the
2contribution to the State no more than 30 days after notice of
3the violation concerning the contribution appears in the
4Illinois Register. Payments received by the State pursuant to
5this subsection (c) shall be deposited into the General Revenue
6Fund.
7 (d) The Board shall post on its website a list of all
8persons, business entities, horsemen's associations, and
9affiliated entities prohibited from making contributions to
10any officeholder or declared candidate political committee
11pursuant to subsection (c), which list shall be updated and
12published, at a minimum, every 6 months.
13 Any person, business entity, horsemen's association, or
14affiliated entity prohibited from making contributions to any
15officeholder or declared candidate political committee
16pursuant to subsection (c) shall notify the Board within 7 days
17after discovering any necessary change or addition to the
18information relating to that person, business entity,
19horsemen's association, or affiliated entity contained in the
20list.
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 (230 ILCS 5/40) (from Ch. 8, par. 37-40)
4 Sec. 40. (a) The imposition of any fine or penalty provided
5in this Act shall not preclude the Board in its rules and
6regulations from imposing a fine or penalty for any other
7action which, in the Board's discretion, is a detriment or
8impediment to horse racing.
9 (b) The Director of Agriculture or his or her authorized
10representative shall impose the following monetary penalties
11and hold administrative hearings as required for failure to
12submit the following applications, lists, or reports within the
13time period, date or manner required by statute or rule or for
14removing a foal from Illinois prior to inspection:
15 (1) late filing of a renewal application for offering
16 or standing stallion for service:
17 (A) if an application is submitted no more than 30
18 days late, $50;
19 (B) if an application is submitted no more than 45
20 days late, $150; or
21 (C) if an application is submitted more than 45
22 days late, if filing of the application is allowed
23 under an administrative hearing, $250;
24 (2) late filing of list or report of mares bred:
25 (A) if a list or report is submitted no more than

SB1739 Engrossed- 322 -LRB098 10559 AMC 40804 b
1 30 days late, $50;
2 (B) if a list or report is submitted no more than
3 60 days late $150; or
4 (C) if a list or report is submitted more than 60
5 days late, if filing of the list or report is allowed
6 under an administrative hearing, $250;
7 (3) filing an Illinois foaled thoroughbred mare status
8 report after the statutory deadline as provided in
9 subsection (k) of Section 30 of this Act December 31:
10 (A) if a report is submitted no more than 30 days
11 late, $50;
12 (B) if a report is submitted no more than 90 days
13 late, $150;
14 (C) if a report is submitted no more than 150 days
15 late, $250; or
16 (D) if a report is submitted more than 150 days
17 late, if filing of the report is allowed under an
18 administrative hearing, $500;
19 (4) late filing of application for foal eligibility
20 certificate:
21 (A) if an application is submitted no more than 30
22 days late, $50;
23 (B) if an application is submitted no more than 90
24 days late, $150;
25 (C) if an application is submitted no more than 150
26 days late, $250; or

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1 (D) if an application is submitted more than 150
2 days late, if filing of the application is allowed
3 under an administrative hearing, $500;
4 (5) failure to report the intent to remove a foal from
5 Illinois prior to inspection, identification and
6 certification by a Department of Agriculture investigator,
7 $50; and
8 (6) if a list or report of mares bred is incomplete,
9 $50 per mare not included on the list or report.
10 Any person upon whom monetary penalties are imposed under
11this Section 3 times within a 5 year period shall have any
12further monetary penalties imposed at double the amounts set
13forth above. All monies assessed and collected for violations
14relating to thoroughbreds shall be paid into the Thoroughbred
15Breeders Fund. All monies assessed and collected for violations
16relating to standardbreds shall be paid into the Standardbred
17Breeders Fund.
18(Source: P.A. 87-397.)
19 (230 ILCS 5/54.75)
20 Sec. 54.75. Horse Racing Equity Trust Fund.
21 (a) There is created a Fund to be known as the Horse Racing
22Equity Trust Fund, which is a non-appropriated trust fund held
23separate and apart from State moneys. The Fund shall consist of
24moneys paid into it by owners licensees under the Illinois
25Riverboat Gambling Act for the purposes described in this

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1Section. The Fund shall be administered by the Board. Moneys in
2the Fund shall be distributed as directed and certified by the
3Board in accordance with the provisions of subsection (b).
4 (b) The moneys deposited into the Fund, plus any accrued
5interest on those moneys, shall be distributed within 10 days
6after those moneys are deposited into the Fund as follows:
7 (1) Sixty percent of all moneys distributed under this
8 subsection shall be distributed to organization licensees
9 to be distributed at their race meetings as purses.
10 Fifty-seven percent of the amount distributed under this
11 paragraph (1) shall be distributed for thoroughbred race
12 meetings and 43% shall be distributed for standardbred race
13 meetings. Within each breed, moneys shall be allocated to
14 each organization licensee's purse fund in accordance with
15 the ratio between the purses generated for that breed by
16 that licensee during the prior calendar year and the total
17 purses generated throughout the State for that breed during
18 the prior calendar year by licensees in the current
19 calendar year.
20 (2) The remaining 40% of the moneys distributed under
21 this subsection (b) shall be distributed as follows:
22 (A) 11% shall be distributed to any person (or its
23 successors or assigns) who had operating control of a
24 racetrack that conducted live racing in 2002 at a
25 racetrack in a county with at least 230,000 inhabitants
26 that borders the Mississippi River and is a licensee in

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1 the current year; and
2 (B) the remaining 89% shall be distributed pro rata
3 according to the aggregate proportion of total handle
4 from wagering on live races conducted in Illinois
5 (irrespective of where the wagers are placed) for
6 calendar years 2004 and 2005 to any person (or its
7 successors or assigns) who (i) had majority operating
8 control of a racing facility at which live racing was
9 conducted in calendar year 2002, (ii) is a licensee in
10 the current year, and (iii) is not eligible to receive
11 moneys under subparagraph (A) of this paragraph (2).
12 The moneys received by an organization licensee
13 under this paragraph (2) shall be used by each
14 organization licensee to improve, maintain, market,
15 and otherwise operate its racing facilities to conduct
16 live racing, which shall include backstretch services
17 and capital improvements related to live racing and the
18 backstretch. Any organization licensees sharing common
19 ownership may pool the moneys received and spent at all
20 racing facilities commonly owned in order to meet these
21 requirements.
22 If any person identified in this paragraph (2) becomes
23 ineligible to receive moneys from the Fund, such amount
24 shall be redistributed among the remaining persons in
25 proportion to their percentages otherwise calculated.
26 (c) The Board shall monitor organization licensees to

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1ensure that moneys paid to organization licensees under this
2Section are distributed by the organization licensees as
3provided in subsection (b).
4(Source: P.A. 95-1008, eff. 12-15-08.)
5 (230 ILCS 5/56 new)
6 Sec. 56. Electronic gaming.
7 (a) A person, firm, corporation, or limited liability
8company having operating control of a race track may apply to
9the Gaming Board for an electronic gaming license. An
10electronic gaming license shall authorize its holder to conduct
11electronic gaming on the grounds of the race track controlled
12by the licensee's race track. Only one electronic gaming
13license may be awarded for any race track. A holder of an
14electronic gaming license shall be subject to the Illinois
15Gambling Act and rules of the Illinois Gaming Board concerning
16electronic gaming. If the person, firm, corporation, or limited
17liability company having operating control of a race track is
18found by the Illinois Gaming Board to be unsuitable for an
19electronic gaming license under the Illinois Gambling Act and
20rules of the Gaming Board, that person, firm, corporation, or
21limited liability company shall not be granted an electronic
22gaming license. Each license shall specify the number of gaming
23positions that its holder may operate.
24 An electronic gaming licensee may not permit persons under
2521 years of age to be present in its electronic gaming

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1facility, but the licensee may accept wagers on live racing and
2inter-track wagers at its electronic gaming facility.
3 (b) For purposes of this subsection, "adjusted gross
4receipts" means an electronic gaming licensee's gross receipts
5less winnings paid to wagerers and shall also include any
6amounts that would otherwise be deducted pursuant to subsection
7(a-9) of Section 13 of the Illinois Gambling Act. The adjusted
8gross receipts by an electronic gaming licensee from electronic
9gaming remaining after the payment of taxes under Section 13 of
10the Illinois Gambling Act shall be distributed as follows:
11 (1) Amounts shall be paid to the purse account at the
12 track at which the organization licensee is conducting
13 racing equal to the following:
14 12.75% of annual adjusted gross receipts up to and
15 including $75,000,000;
16 20% of annual adjusted gross receipts in excess of
17 $75,000,000 but not exceeding $100,000,000;
18 26.5% of annual adjusted gross receipts in excess
19 of $100,000,000 but not exceeding $125,000,000; and
20 20.5% of annual adjusted gross receipts in excess
21 of $125,000,000.
22 (2) The remainder shall be retained by the electronic
23 gaming licensee.
24 (c) Electronic gaming receipts placed into the purse
25account of an organization licensee racing thoroughbred horses
26shall be used for purses, for health care services or worker's

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1compensation for racing industry workers, for equine research,
2for programs to care for and transition injured and retired
3thoroughbred horses that race at the race track, or for horse
4ownership promotion, in accordance with the agreement of the
5horsemen's association representing the largest number of
6owners and trainers who race at that organization licensee's
7race meetings.
8 Annually, from the purse account of an organization
9licensee racing thoroughbred horses in this State, except for
10in Madison County, an amount equal to 12% of the electronic
11gaming receipts placed into the purse accounts shall be paid to
12the Illinois Thoroughbred Breeders Fund and shall be used for
13owner awards; a stallion program pursuant to paragraph (3) of
14subsection (g) of Section 30 of this Act; and Illinois
15conceived and foaled stakes races pursuant to paragraph (2) of
16subsection (g) of Section 30 of this Act, as specifically
17designated by the horsemen's association representing the
18largest number of owners and trainers who race at the
19organization licensee's race meetings.
20 Annually, from the purse account of an organization
21licensee racing thoroughbred horses in Madison County, an
22amount equal to 10% of the electronic gaming receipts placed
23into the purse accounts shall be paid to the Illinois
24Thoroughbred Breeders Fund and shall be used for owner awards;
25a stallion program pursuant to paragraph (3) of subsection (g)
26of Section 30 of this Act; and Illinois conceived and foaled

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1stakes races pursuant to paragraph (2) of subsection (g) of
2Section 30 of this Act, as specifically designated by the
3horsemen's association representing the largest number of
4owners and trainers who race at the organization licensee's
5race meetings.
6 Annually, from the purse account of an organization
7licensee conducting thoroughbred races at a race track in
8Madison County, an amount equal to 1% of the electronic gaming
9receipts distributed to purses per subsection (b) of this
10Section 56 shall be paid as follows: 0.33 1/3% to Southern
11Illinois University Department of Animal Sciences for equine
12research and education, an amount equal to 0.33 1/3% of the
13electronic gaming receipts shall be used to operate laundry
14facilities or a kitchen for backstretch workers at that race
15track, and an amount equal to 0.33 1/3% of the electronic
16gaming receipts shall be paid to R.A.C.E., Inc., a 501(c)(3)
17non-profit organization that cares for injured and unwanted
18horses that race at that race track.
19 Annually, from the purse account of organization licensees
20conducting thoroughbred races at race tracks in Cook County,
21$100,000 shall be paid for division and equal distribution to
22the animal sciences department of each Illinois public
23university system engaged in equine research and education on
24or before the effective date of this amendatory Act of the 98th
25General Assembly for equine research and education.
26 (d) Annually, from the purse account of an organization

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1licensee racing standardbred horses, an amount equal to 15% of
2the electronic gaming receipts placed into that purse account
3shall be paid to the Illinois Colt Stakes Purse Distribution
4Fund. Moneys deposited into the Illinois Colt Stakes Purse
5Distribution Fund shall be used for standardbred racing as
6authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of
7subsection (g) of Section 31 of this Act and for bonus awards
8as authorized under paragraph 6 of subsection (j) of Section 31
9of this Act.
10 (e) The Illinois Gaming Board shall submit a report to the
11General Assembly on or before December 31, 2014 that examines
12the feasibility of conducting electronic gaming at the Illinois
13State Fairgrounds in Sangamon County. At a minimum, this report
14shall analyze the projected revenues that will be generated,
15the potential for cannibalization of existing riverboats,
16casinos, or other electronic gaming facilities, and the
17potential detriment to the surrounding area and its population.
18The report shall include the Illinois Gaming Board's findings
19together with appropriate recommendations for legislative
20action.
21 Section 90-40. The Riverboat Gambling Act is amended by
22changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,
2311.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,
24and 24 and by adding Sections 5.3, 7.6, 7.7, 7.8, 7.9, 7.10,
257.11, 7.12, and 18.2 as follows:

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1 (230 ILCS 10/1) (from Ch. 120, par. 2401)
2 Sec. 1. Short title. This Act shall be known and may be
3cited as the Illinois Riverboat Gambling Act.
4(Source: P.A. 86-1029.)
5 (230 ILCS 10/2) (from Ch. 120, par. 2402)
6 Sec. 2. Legislative Intent.
7 (a) This Act is intended to benefit the people of the State
8of Illinois by assisting economic development, and promoting
9Illinois tourism, and by increasing the amount of revenues
10available to the State to assist and support education, and to
11defray State expenses, including unpaid bills.
12 (b) While authorization of riverboat and casino gambling
13will enhance investment, beautification, development and
14tourism in Illinois, it is recognized that it will do so
15successfully only if public confidence and trust in the
16credibility and integrity of the gambling operations and the
17regulatory process is maintained. Therefore, regulatory
18provisions of this Act are designed to strictly regulate the
19facilities, persons, associations and practices related to
20gambling operations pursuant to the police powers of the State,
21including comprehensive law enforcement supervision.
22 (c) The Illinois Gaming Board established under this Act
23should, as soon as possible, inform each applicant for an
24owners license of the Board's intent to grant or deny a

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1license.
2(Source: P.A. 93-28, eff. 6-20-03.)
3 (230 ILCS 10/3) (from Ch. 120, par. 2403)
4 Sec. 3. Riverboat Gambling Authorized.
5 (a) Riverboat and casino gambling operations and
6electronic gaming operations and the system of wagering
7incorporated therein, as defined in this Act, are hereby
8authorized to the extent that they are carried out in
9accordance with the provisions of this Act.
10 (b) This Act does not apply to the pari-mutuel system of
11wagering used or intended to be used in connection with the
12horse-race meetings as authorized under the Illinois Horse
13Racing Act of 1975, lottery games authorized under the Illinois
14Lottery Law, bingo authorized under the Bingo License and Tax
15Act, charitable games authorized under the Charitable Games Act
16or pull tabs and jar games conducted under the Illinois Pull
17Tabs and Jar Games Act. This Act applies to electronic gaming
18authorized under the Illinois Horse Racing Act of 1975 to the
19extent provided in that Act and in this Act.
20 (c) Riverboat gambling conducted pursuant to this Act may
21be authorized upon any water within the State of Illinois or
22any water other than Lake Michigan which constitutes a boundary
23of the State of Illinois. Notwithstanding any provision in this
24subsection (c) to the contrary, a licensee that receives its
25license pursuant to subsection (e-5) of Section 7 may conduct

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1riverboat gambling on Lake Michigan from a home dock located on
2Lake Michigan subject to any limitations contained in Section
37. Notwithstanding any provision in this subsection (c) to the
4contrary, a licensee may conduct gambling at its home dock
5facility as provided in Sections 7 and 11. A licensee may
6conduct riverboat gambling authorized under this Act
7regardless of whether it conducts excursion cruises. A licensee
8may permit the continuous ingress and egress of passengers for
9the purpose of gambling.
10 (d) Gambling that is conducted in accordance with this Act
11using slot machines and video games of chance and other
12electronic gambling games as defined in both the Illinois
13Gambling Act and the Illinois Horse Racing Act of 1975 is
14authorized.
15(Source: P.A. 91-40, eff. 6-25-99.)
16 (230 ILCS 10/4) (from Ch. 120, par. 2404)
17 Sec. 4. Definitions. As used in this Act:
18 (a) "Board" means the Illinois Gaming Board.
19 (b) "Occupational license" means a license issued by the
20Board to a person or entity to perform an occupation which the
21Board has identified as requiring a license to engage in
22riverboat gambling, casino gambling, or electronic gaming in
23Illinois.
24 (c) "Gambling game" includes, but is not limited to,
25baccarat, twenty-one, poker, craps, slot machine, video game of

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1chance, roulette wheel, klondike table, punchboard, faro
2layout, keno layout, numbers ticket, push card, jar ticket, or
3pull tab which is authorized by the Board as a wagering device
4under this Act.
5 (d) "Riverboat" means a self-propelled excursion boat, a
6permanently moored barge, or permanently moored barges that are
7permanently fixed together to operate as one vessel, on which
8lawful gambling is authorized and licensed as provided in this
9Act.
10 "Slot machine" means any mechanical, electrical, or other
11device, contrivance, or machine that is authorized by the Board
12as a wagering device under this Act which, upon insertion of a
13coin, currency, token, or similar object therein, or upon
14payment of any consideration whatsoever, is available to play
15or operate, the play or operation of which may deliver or
16entitle the person playing or operating the machine to receive
17cash, premiums, merchandise, tokens, or anything of value
18whatsoever, whether the payoff is made automatically from the
19machine or in any other manner whatsoever. A slot machine:
20 (1) may utilize spinning reels or video displays or
21 both;
22 (2) may or may not dispense coins, tickets, or tokens
23 to winning patrons;
24 (3) may use an electronic credit system for receiving
25 wagers and making payouts; and
26 (4) may simulate a table game.

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1 "Slot machine" does not include table games authorized by
2the Board as a wagering device under this Act.
3 (e) "Managers license" means a license issued by the Board
4to a person or entity to manage gambling operations conducted
5by the State pursuant to Section 7.3.
6 (f) "Dock" means the location where a riverboat moors for
7the purpose of embarking passengers for and disembarking
8passengers from the riverboat.
9 (g) "Gross receipts" means the total amount of money
10exchanged for the purchase of chips, tokens, or electronic
11cards by riverboat patrons.
12 (h) "Adjusted gross receipts" means the gross receipts less
13winnings paid to wagerers.
14 (i) "Cheat" means to alter the selection of criteria which
15determine the result of a gambling game or the amount or
16frequency of payment in a gambling game.
17 (j) (Blank).
18 (k) "Gambling operation" means the conduct of authorized
19gambling games authorized under this Act upon a riverboat or in
20a casino or authorized under this Act and the Illinois Horse
21Racing Act of 1975 at an electronic gaming facility.
22 (l) "License bid" means the lump sum amount of money that
23an applicant bids and agrees to pay the State in return for an
24owners license that is issued or re-issued on or after July 1,
252003.
26 "Table game" means a live gaming apparatus upon which

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1gaming is conducted or that determines an outcome that is the
2object of a wager, including, but not limited to, baccarat,
3twenty-one, blackjack, poker, craps, roulette wheel, klondike
4table, punchboard, faro layout, keno layout, numbers ticket,
5push card, jar ticket, pull tab, or other similar games that
6are authorized by the Board as a wagering device under this
7Act. "Table game" does not include slot machines or video games
8of chance.
9 (m) The terms "minority person", "female", and "person with
10a disability" shall have the same meaning as defined in Section
112 of the Business Enterprise for Minorities, Females, and
12Persons with Disabilities Act.
13 "Authority" means the Chicago Casino Development
14Authority.
15 "Casino" means a facility at which lawful gambling is
16authorized as provided in this Act.
17 "Owners license" means a license to conduct riverboat or
18casino gambling operations, but does not include an electronic
19gaming license.
20 "Licensed owner" means a person who holds an owners
21license.
22 "Electronic gaming" means slot machine gambling, video
23game of chance gambling, or gambling with electronic gambling
24games as defined in the Illinois Gambling Act or defined by the
25Board that is conducted at a race track pursuant to an
26electronic gaming license.

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1 "Electronic gaming facility" means the area where the Board
2has authorized electronic gaming at a race track of an
3organization licensee under the Illinois Horse Racing Act of
41975 that holds an electronic gaming license.
5 "Electronic gaming license" means a license issued by the
6Board under Section 7.6 of this Act authorizing electronic
7gaming at an electronic gaming facility.
8 "Electronic gaming licensee" means an entity that holds an
9electronic gaming license.
10 "Organization licensee" means an entity authorized by the
11Illinois Racing Board to conduct pari-mutuel wagering in
12accordance with the Illinois Horse Racing Act of 1975. With
13respect only to electronic gaming, "organization licensee"
14includes the authorization for electronic gaming created under
15subsection (a) of Section 56 of the Illinois Horse Racing Act
16of 1975.
17 "Casino operator license" means the license held by the
18person or entity selected by the Authority to manage and
19operate a riverboat or casino within the geographic area of the
20authorized municipality pursuant to this Act and the Chicago
21Casino Development Authority Act.
22(Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)
23 (230 ILCS 10/5) (from Ch. 120, par. 2405)
24 Sec. 5. Gaming Board.
25 (a) (1) There is hereby established the Illinois Gaming

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1Board, which shall have the powers and duties specified in this
2Act and in the Chicago Casino Development Authority Act, and
3all other powers necessary and proper to fully and effectively
4execute this Act for the purpose of administering, regulating,
5and enforcing the system of riverboat and casino gambling and
6electronic gaming established by this Act and by the Chicago
7Casino Development Authority Act. Its jurisdiction shall
8extend under this Act and the Chicago Casino Development
9Authority Act to every person, association, corporation,
10partnership and trust involved in riverboat and casino gambling
11operations and electronic gaming in the State of Illinois.
12 (2) The Board shall consist of 5 members to be appointed by
13the Governor with the advice and consent of the Senate, one of
14whom shall be designated by the Governor to be chairperson
15chairman. Each member shall have a reasonable knowledge of the
16practice, procedure and principles of gambling operations.
17Each member shall either be a resident of Illinois or shall
18certify that he or she will become a resident of Illinois
19before taking office.
20 On and after the effective date of this amendatory Act of
21the 98th General Assembly, new appointees to the Board must
22include the following:
23 (A) One member who has received, at a minimum, a
24 bachelor's degree from an accredited school and at least 10
25 years of verifiable training and experience in the fields
26 of investigation and law enforcement.

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1 (B) One member who is a certified public accountant
2 with experience in auditing and with knowledge of complex
3 corporate structures and transactions.
4 (C) One member who has 5 years' experience as a
5 principal, senior officer, or director of a company or
6 business with either material responsibility for the daily
7 operations and management of the overall company or
8 business or material responsibility for the policy making
9 of the company or business.
10 (D) One member who is a lawyer licensed to practice law
11 in Illinois.
12 Notwithstanding any provision of this subsection (a), the
13requirements of subparagraphs (A) through (D) of this paragraph
14(2) shall not apply to any person reappointed pursuant to
15paragraph (3).
16 No more than 3 members of the Board may be from the same
17political party. The Board should reflect the ethnic, cultural,
18and geographic diversity of the State. No Board member shall,
19within a period of one year immediately preceding nomination,
20have been employed or received compensation or fees for
21services from a person or entity, or its parent or affiliate,
22that has engaged in business with the Board, a licensee, or a
23licensee under the Illinois Horse Racing Act of 1975. Board
24members must publicly disclose all prior affiliations with
25gaming interests, including any compensation, fees, bonuses,
26salaries, and other reimbursement received from a person or

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

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

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

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1Board who is, or whose spouse, parent or child is, an official
2of, or has a financial interest in or financial relation with,
3any operator engaged in gambling operations within this State
4or any organization engaged in conducting horse racing within
5this State. For the one year immediately preceding employment,
6an employee shall not have been employed or received
7compensation or fees for services from a person or entity, or
8its parent or affiliate, that has engaged in business with the
9Board, a licensee, or a licensee under the Illinois Horse
10Racing Act of 1975. Any employee violating these prohibitions
11shall be subject to termination of employment. In addition, all
12Board members and employees are subject to the restrictions set
13forth in Section 5-45 of the State Officials and Employees
14Ethics Act.
15 (9) An Administrator shall perform any and all duties that
16the Board shall assign him. The salary of the Administrator
17shall be determined by the Board and, in addition, he shall be
18reimbursed for all actual and necessary expenses incurred by
19him in discharge of his official duties. The Administrator
20shall keep records of all proceedings of the Board and shall
21preserve all records, books, documents and other papers
22belonging to the Board or entrusted to its care. The
23Administrator shall devote his full time to the duties of the
24office and shall not hold any other office or employment.
25 (b) The Board shall have general responsibility for the
26implementation of this Act. Its duties include, without

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1limitation, the following:
2 (1) To decide promptly and in reasonable order all
3 license applications. Any party aggrieved by an action of
4 the Board denying, suspending, revoking, restricting or
5 refusing to renew a license may request a hearing before
6 the Board. A request for a hearing must be made to the
7 Board in writing within 5 days after service of notice of
8 the action of the Board. Notice of the action of the Board
9 shall be served either by personal delivery or by certified
10 mail, postage prepaid, to the aggrieved party. Notice
11 served by certified mail shall be deemed complete on the
12 business day following the date of such mailing. The Board
13 shall conduct all requested hearings promptly and in
14 reasonable order;
15 (2) To conduct all hearings pertaining to civil
16 violations of this Act or rules and regulations promulgated
17 hereunder;
18 (3) To promulgate such rules and regulations as in its
19 judgment may be necessary to protect or enhance the
20 credibility and integrity of gambling operations
21 authorized by this Act and the regulatory process
22 hereunder;
23 (4) To provide for the establishment and collection of
24 all license and registration fees and taxes imposed by this
25 Act and the rules and regulations issued pursuant hereto.
26 All such fees and taxes shall be deposited into the State

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1 Gaming Fund;
2 (5) To provide for the levy and collection of penalties
3 and fines for the violation of provisions of this Act and
4 the rules and regulations promulgated hereunder. All such
5 fines and penalties shall be deposited into the Education
6 Assistance Fund, created by Public Act 86-0018, of the
7 State of Illinois;
8 (6) To be present through its inspectors and agents any
9 time gambling operations are conducted on any riverboat, in
10 any casino, or at any electronic gaming facility for the
11 purpose of certifying the revenue thereof, receiving
12 complaints from the public, and conducting such other
13 investigations into the conduct of the gambling games and
14 the maintenance of the equipment as from time to time the
15 Board may deem necessary and proper;
16 (7) To review and rule upon any complaint by a licensee
17 regarding any investigative procedures of the State which
18 are unnecessarily disruptive of gambling operations. The
19 need to inspect and investigate shall be presumed at all
20 times. The disruption of a licensee's operations shall be
21 proved by clear and convincing evidence, and establish
22 that: (A) the procedures had no reasonable law enforcement
23 purposes, and (B) the procedures were so disruptive as to
24 unreasonably inhibit gambling operations;
25 (8) To hold at least one meeting each quarter of the
26 fiscal year. In addition, special meetings may be called by

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1 the Chairman or any 2 Board members upon 72 hours written
2 notice to each member. All Board meetings shall be subject
3 to the Open Meetings Act. Three members of the Board shall
4 constitute a quorum, and 3 votes shall be required for any
5 final determination by the Board. The Board shall keep a
6 complete and accurate record of all its meetings. A
7 majority of the members of the Board shall constitute a
8 quorum for the transaction of any business, for the
9 performance of any duty, or for the exercise of any power
10 which this Act requires the Board members to transact,
11 perform or exercise en banc, except that, upon order of the
12 Board, one of the Board members or an administrative law
13 judge designated by the Board may conduct any hearing
14 provided for under this Act or by Board rule and may
15 recommend findings and decisions to the Board. The Board
16 member or administrative law judge conducting such hearing
17 shall have all powers and rights granted to the Board in
18 this Act. The record made at the time of the hearing shall
19 be reviewed by the Board, or a majority thereof, and the
20 findings and decision of the majority of the Board shall
21 constitute the order of the Board in such case;
22 (9) To maintain records which are separate and distinct
23 from the records of any other State board or commission.
24 Such records shall be available for public inspection and
25 shall accurately reflect all Board proceedings;
26 (10) To file a written annual report with the Governor

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1 on or before March 1 each year and such additional reports
2 as the Governor may request. The annual report shall
3 include a statement of receipts and disbursements by the
4 Board, actions taken by the Board, and any additional
5 information and recommendations which the Board may deem
6 valuable or which the Governor may request;
7 (11) (Blank);
8 (12) (Blank);
9 (13) To assume responsibility for administration and
10 enforcement of the Video Gaming Act; and
11 (13.1) To assume responsibility for the administration
12 and enforcement of operations at electronic gaming
13 facilities pursuant to this Act and the Illinois Horse
14 Racing Act of 1975;
15 (13.2) To assume responsibility for the administration
16 and enforcement of gambling operations at the Chicago
17 Casino Development Authority's casino pursuant to this Act
18 and the Chicago Casino Development Authority Act; and
19 (14) To adopt, by rule, a code of conduct governing
20 Board members and employees that ensure, to the maximum
21 extent possible, that persons subject to this Code avoid
22 situations, relationships, or associations that may
23 represent or lead to a conflict of interest.
24 Internal controls and changes submitted by licensees must
25be reviewed and either approved or denied with cause within 90
26days after receipt of submission is deemed final by the

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1Illinois Gaming Board. In the event an internal control
2submission or change does not meet the standards set by the
3Board, staff of the Board must provide technical assistance to
4the licensee to rectify such deficiencies within 90 days after
5the initial submission and the revised submission must be
6reviewed and approved or denied with cause within 90 days after
7the date the revised submission is deemed final by the Board.
8For the purposes of this paragraph, "with cause" means that the
9approval of the submission would jeopardize the integrity of
10gaming. In the event the Board staff has not acted within the
11timeframe, the submission shall be deemed approved.
12 (c) The Board shall have jurisdiction over and shall
13supervise all gambling operations governed by this Act and the
14Chicago Casino Development Authority Act. The Board shall have
15all powers necessary and proper to fully and effectively
16execute the provisions of this Act and the Chicago Casino
17Development Authority Act, including, but not limited to, the
18following:
19 (1) To investigate applicants and determine the
20 eligibility of applicants for licenses and to select among
21 competing applicants the applicants which best serve the
22 interests of the citizens of Illinois.
23 (2) To have jurisdiction and supervision over all
24 riverboat gambling operations authorized under this Act
25 and the Chicago Casino Development Authority Act in this
26 State and all persons in places on riverboats where

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1 gambling operations are conducted.
2 (3) To promulgate rules and regulations for the purpose
3 of administering the provisions of this Act and the Chicago
4 Casino Development Authority Act and to prescribe rules,
5 regulations and conditions under which all riverboat
6 gambling operations subject to this Act and the Chicago
7 Casino Development Authority Act in the State shall be
8 conducted. Such rules and regulations are to provide for
9 the prevention of practices detrimental to the public
10 interest and for the best interests of riverboat gambling,
11 including rules and regulations regarding the inspection
12 of electronic gaming facilities, casinos, and such
13 riverboats, and the review of any permits or licenses
14 necessary to operate a riverboat, casino, or electronic
15 gaming facilities under any laws or regulations applicable
16 to riverboats, casinos, or electronic gaming facilities
17 and to impose penalties for violations thereof.
18 (4) To enter the office, riverboats, casinos,
19 electronic gaming facilities, and other facilities, or
20 other places of business of a licensee, where evidence of
21 the compliance or noncompliance with the provisions of this
22 Act and the Chicago Casino Development Authority Act is
23 likely to be found.
24 (5) To investigate alleged violations of this Act, the
25 Chicago Casino Development Authority Act, or the rules of
26 the Board and to take appropriate disciplinary action

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1 against a licensee or a holder of an occupational license
2 for a violation, or institute appropriate legal action for
3 enforcement, or both.
4 (6) To adopt standards for the licensing of all persons
5 and entities under this Act and the Chicago Casino
6 Development Authority Act, as well as for electronic or
7 mechanical gambling games, and to establish fees for such
8 licenses.
9 (7) To adopt appropriate standards for all electronic
10 gaming facilities, riverboats, casinos, and other
11 facilities authorized under this Act and the Chicago Casino
12 Development Authority Act.
13 (8) To require that the records, including financial or
14 other statements of any licensee under this Act and the
15 Chicago Casino Development Authority Act, shall be kept in
16 such manner as prescribed by the Board and that any such
17 licensee involved in the ownership or management of
18 gambling operations submit to the Board an annual balance
19 sheet and profit and loss statement, list of the
20 stockholders or other persons having a 1% or greater
21 beneficial interest in the gambling activities of each
22 licensee, and any other information the Board deems
23 necessary in order to effectively administer this Act and
24 the Chicago Casino Development Authority Act and all rules,
25 regulations, orders and final decisions promulgated under
26 this Act and the Chicago Casino Development Authority Act.

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1 (9) To conduct hearings, issue subpoenas for the
2 attendance of witnesses and subpoenas duces tecum for the
3 production of books, records and other pertinent documents
4 in accordance with the Illinois Administrative Procedure
5 Act, and to administer oaths and affirmations to the
6 witnesses, when, in the judgment of the Board, it is
7 necessary to administer or enforce this Act, the Chicago
8 Casino Development Authority Act, or the Board rules.
9 (10) To prescribe a form to be used by any licensee
10 involved in the ownership or management of gambling
11 operations as an application for employment for their
12 employees.
13 (11) To revoke or suspend licenses, other than the
14 license issued to the Chicago Casino Development
15 Authority, as the Board may see fit and in compliance with
16 applicable laws of the State regarding administrative
17 procedures, and to review applications for the renewal of
18 licenses. The Board may suspend an owners license (other
19 than the license issued to the Chicago Casino Development
20 Authority), electronic gaming license, or casino operator
21 license, without notice or hearing upon a determination
22 that the safety or health of patrons or employees is
23 jeopardized by continuing a gambling operation conducted
24 under that license riverboat's operation. The suspension
25 may remain in effect until the Board determines that the
26 cause for suspension has been abated. The Board may revoke

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1 an the owners license (other than the license issued to the
2 Chicago Casino Development Authority), electronic gaming
3 license, or casino operator license upon a determination
4 that the licensee owner has not made satisfactory progress
5 toward abating the hazard.
6 (12) To eject or exclude or authorize the ejection or
7 exclusion of, any person from riverboat gambling
8 facilities where that such person is in violation of this
9 Act or the Chicago Casino Development Authority Act, rules
10 and regulations thereunder, or final orders of the Board,
11 or where such person's conduct or reputation is such that
12 his or her presence within the riverboat gambling
13 facilities may, in the opinion of the Board, call into
14 question the honesty and integrity of the gambling
15 operations or interfere with the orderly conduct thereof;
16 provided that the propriety of such ejection or exclusion
17 is subject to subsequent hearing by the Board.
18 (13) To require all licensees of gambling operations to
19 utilize a cashless wagering system whereby all players'
20 money is converted to tokens, electronic cards, or chips
21 which shall be used only for wagering in the gambling
22 establishment.
23 (14) (Blank).
24 (15) To suspend, revoke or restrict licenses, other
25 than the license issued to the Chicago Casino Development
26 Authority, to require the removal of a licensee or an

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1 employee of a licensee for a violation of this Act, the
2 Chicago Casino Development Authority Act, or a Board rule
3 or for engaging in a fraudulent practice, and to impose
4 civil penalties of up to $5,000 against individuals and up
5 to $10,000 or an amount equal to the daily gross receipts,
6 whichever is larger, against licensees for each violation
7 of any provision of the Act, the Chicago Casino Development
8 Authority Act, any rules adopted by the Board, any order of
9 the Board or any other action which, in the Board's
10 discretion, is a detriment or impediment to riverboat
11 gambling operations.
12 (16) To hire employees to gather information, conduct
13 investigations and carry out any other tasks contemplated
14 under this Act or the Chicago Casino Development Authority
15 Act.
16 (17) To establish minimum levels of insurance to be
17 maintained by licensees.
18 (18) To authorize a licensee to sell or serve alcoholic
19 liquors, wine or beer as defined in the Liquor Control Act
20 of 1934 on board a riverboat or in a casino and to have
21 exclusive authority to establish the hours for sale and
22 consumption of alcoholic liquor on board a riverboat or in
23 a casino, notwithstanding any provision of the Liquor
24 Control Act of 1934 or any local ordinance, and regardless
25 of whether the riverboat makes excursions. The
26 establishment of the hours for sale and consumption of

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1 alcoholic liquor on board a riverboat or in a casino is an
2 exclusive power and function of the State. A home rule unit
3 may not establish the hours for sale and consumption of
4 alcoholic liquor on board a riverboat or in a casino. This
5 subdivision (18) amendatory Act of 1991 is a denial and
6 limitation of home rule powers and functions under
7 subsection (h) of Section 6 of Article VII of the Illinois
8 Constitution.
9 (19) After consultation with the U.S. Army Corps of
10 Engineers, to establish binding emergency orders upon the
11 concurrence of a majority of the members of the Board
12 regarding the navigability of water, relative to
13 excursions, in the event of extreme weather conditions,
14 acts of God or other extreme circumstances.
15 (20) To delegate the execution of any of its powers
16 under this Act or the Chicago Casino Development Authority
17 Act for the purpose of administering and enforcing this
18 Act, the Chicago Casino Development Authority Act, and the
19 its rules adopted by the Board under both Acts and
20 regulations hereunder.
21 (20.5) To approve any contract entered into on its
22 behalf.
23 (20.6) To appoint investigators to conduct
24 investigations, searches, seizures, arrests, and other
25 duties imposed under this Act, as deemed necessary by the
26 Board. These investigators have and may exercise all of the

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1 rights and powers of peace officers, provided that these
2 powers shall be limited to offenses or violations occurring
3 or committed in a casino, in an electronic gaming facility,
4 or on a riverboat or dock, as defined in subsections (d)
5 and (f) of Section 4, or as otherwise provided by this Act,
6 the Chicago Casino Development Authority Act, or any other
7 law.
8 (20.7) To contract with the Department of State Police
9 for the use of trained and qualified State police officers
10 and with the Department of Revenue for the use of trained
11 and qualified Department of Revenue investigators to
12 conduct investigations, searches, seizures, arrests, and
13 other duties imposed under this Act or the Chicago Casino
14 Development Authority Act and to exercise all of the rights
15 and powers of peace officers, provided that the powers of
16 Department of Revenue investigators under this subdivision
17 (20.7) shall be limited to offenses or violations occurring
18 or committed in a casino, in an electronic gaming facility,
19 or on a riverboat or dock, as defined in subsections (d)
20 and (f) of Section 4, or as otherwise provided by this Act
21 or any other law. In the event the Department of State
22 Police or the Department of Revenue is unable to fill
23 contracted police or investigative positions, the Board
24 may appoint investigators to fill those positions pursuant
25 to subdivision (20.6).
26 (21) To adopt rules concerning the conduct of

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1 electronic gaming.
2 (22) To have the same jurisdiction and supervision over
3 casinos and electronic gaming facilities as the Board has
4 over riverboats, including, but not limited to, the power
5 to (i) investigate, review, and approve contracts as that
6 power is applied to riverboats, (ii) adopt rules for
7 administering the provisions of this Act or the Chicago
8 Casino Development Authority Act, (iii) adopt standards
9 for the licensing of all persons involved with a casino or
10 electronic gaming facility, (iv) investigate alleged
11 violations of this Act by any person involved with a casino
12 or electronic gaming facility, and (v) require that
13 records, including financial or other statements of any
14 casino or electronic gaming facility, shall be kept in such
15 manner as prescribed by the Board.
16 (23) To supervise and regulate the Chicago Casino
17 Development Authority in accordance with the Chicago
18 Casino Development Authority Act and the provisions of this
19 Act.
20 (24) (21) To take any other action as may be reasonable
21 or appropriate to enforce this Act, the Chicago Casino
22 Development Authority Act, and the rules adopted by the
23 Board under both Acts and regulations hereunder.
24 All Board powers enumerated in this Section in relation to
25licensees shall apply equally to the holder of any casino
26management contract entered into pursuant to the Chicago Casino

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1Development Authority Act.
2 (d) The Board may seek and shall receive the cooperation of
3the Department of State Police in conducting background
4investigations of applicants and in fulfilling its
5responsibilities under this Section. Costs incurred by the
6Department of State Police as a result of such cooperation
7shall be paid by the Board in conformance with the requirements
8of Section 2605-400 of the Department of State Police Law (20
9ILCS 2605/2605-400).
10 (e) The Board must authorize to each investigator and to
11any other employee of the Board exercising the powers of a
12peace officer a distinct badge that, on its face, (i) clearly
13states that the badge is authorized by the Board and (ii)
14contains a unique identifying number. No other badge shall be
15authorized by the Board.
16(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
1796-1000, eff. 7-2-10; 96-1392, eff. 1-1-11.)
18 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)
19 Sec. 5.1. Disclosure of records.
20 (a) Notwithstanding any applicable statutory provision to
21the contrary, the Board shall, on written request from any
22person, provide information furnished by an applicant or
23licensee concerning the applicant or licensee, his products,
24services or gambling enterprises and his business holdings, as
25follows:

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1 (1) The name, business address and business telephone
2 number of any applicant or licensee.
3 (2) An identification of any applicant or licensee
4 including, if an applicant or licensee is not an
5 individual, the names and addresses of all stockholders and
6 directors, if the entity is a corporation; the names and
7 addresses of all members, if the entity is a limited
8 liability company; the names and addresses of all partners,
9 both general and limited, if the entity is a partnership;
10 and the names and addresses of all beneficiaries, if the
11 entity is a trust the state of incorporation or
12 registration, the corporate officers, and the identity of
13 all shareholders or participants. If an applicant or
14 licensee has a pending registration statement filed with
15 the Securities and Exchange Commission, only the names of
16 those persons or entities holding interest of 5% or more
17 must be provided.
18 (3) An identification of any business, including, if
19 applicable, the state of incorporation or registration, in
20 which an applicant or licensee or an applicant's or
21 licensee's spouse or children has an equity interest of
22 more than 1%. If an applicant or licensee is a corporation,
23 partnership or other business entity, the applicant or
24 licensee shall identify any other corporation, partnership
25 or business entity in which it has an equity interest of 1%
26 or more, including, if applicable, the state of

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1 incorporation or registration. This information need not
2 be provided by a corporation, partnership or other business
3 entity that has a pending registration statement filed with
4 the Securities and Exchange Commission.
5 (4) Whether an applicant or licensee has been indicted,
6 convicted, pleaded guilty or nolo contendere, or forfeited
7 bail concerning any criminal offense under the laws of any
8 jurisdiction, either felony or misdemeanor (except for
9 traffic violations), including the date, the name and
10 location of the court, arresting agency and prosecuting
11 agency, the case number, the offense, the disposition and
12 the location and length of incarceration.
13 (5) Whether an applicant or licensee has had any
14 license or certificate issued by a licensing authority in
15 Illinois or any other jurisdiction denied, restricted,
16 suspended, revoked or not renewed and a statement
17 describing the facts and circumstances concerning the
18 denial, restriction, suspension, revocation or
19 non-renewal, including the licensing authority, the date
20 each such action was taken, and the reason for each such
21 action.
22 (6) Whether an applicant or licensee has ever filed or
23 had filed against it a proceeding in bankruptcy or has ever
24 been involved in any formal process to adjust, defer,
25 suspend or otherwise work out the payment of any debt
26 including the date of filing, the name and location of the

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1 court, the case and number of the disposition.
2 (7) Whether an applicant or licensee has filed, or been
3 served with a complaint or other notice filed with any
4 public body, regarding the delinquency in the payment of,
5 or a dispute over the filings concerning the payment of,
6 any tax required under federal, State or local law,
7 including the amount, type of tax, the taxing agency and
8 time periods involved.
9 (8) A statement listing the names and titles of all
10 public officials or officers of any unit of government, and
11 relatives of said public officials or officers who,
12 directly or indirectly, own any financial interest in, have
13 any beneficial interest in, are the creditors of or hold
14 any debt instrument issued by, or hold or have any interest
15 in any contractual or service relationship with, an
16 applicant or licensee.
17 (9) Whether an applicant or licensee has made, directly
18 or indirectly, any political contribution, or any loans,
19 donations or other payments, to any candidate or office
20 holder, within 5 years from the date of filing the
21 application, including the amount and the method of
22 payment.
23 (10) The name and business telephone number of the
24 counsel representing an applicant or licensee in matters
25 before the Board.
26 (11) A description of any proposed or approved

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1 riverboat or casino gaming or electronic gaming operation,
2 including the type of boat, home dock or casino or
3 electronic gaming location, expected economic benefit to
4 the community, anticipated or actual number of employees,
5 any statement from an applicant or licensee regarding
6 compliance with federal and State affirmative action
7 guidelines, projected or actual admissions and projected
8 or actual adjusted gross gaming receipts.
9 (12) A description of the product or service to be
10 supplied by an applicant for a supplier's license.
11 (b) Notwithstanding any applicable statutory provision to
12the contrary, the Board shall, on written request from any
13person, also provide the following information:
14 (1) The amount of the wagering tax and admission tax
15 paid daily to the State of Illinois by the holder of an
16 owner's license.
17 (2) Whenever the Board finds an applicant for an
18 owner's license unsuitable for licensing, a copy of the
19 written letter outlining the reasons for the denial.
20 (3) Whenever the Board has refused to grant leave for
21 an applicant to withdraw his application, a copy of the
22 letter outlining the reasons for the refusal.
23 (c) Subject to the above provisions, the Board shall not
24disclose any information which would be barred by:
25 (1) Section 7 of the Freedom of Information Act; or
26 (2) The statutes, rules, regulations or

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1 intergovernmental agreements of any jurisdiction.
2 (d) The Board may assess fees for the copying of
3information in accordance with Section 6 of the Freedom of
4Information Act.
5(Source: P.A. 96-1392, eff. 1-1-11.)
6 (230 ILCS 10/5.3 new)
7 Sec. 5.3. Ethical conduct.
8 (a) Officials and employees of the corporate authority of a
9host community must carry out their duties and responsibilities
10in such a manner as to promote and preserve public trust and
11confidence in the integrity and conduct of gaming.
12 (b) Officials and employees of the corporate authority of a
13host community shall not use or attempt to use his or her
14official position to secure or attempt to secure any privilege,
15advantage, favor, or influence for himself or herself or
16others.
17 (c) Officials and employees of the corporate authority of a
18host community may not have a financial interest, directly or
19indirectly, in his or her own name or in the name of any other
20person, partnership, association, trust, corporation, or other
21entity in any contract or subcontract for the performance of
22any work for a riverboat or casino that is located in the host
23community. This prohibition shall extend to the holding or
24acquisition of an interest in any entity identified by Board
25action that, in the Board's judgment, could represent the

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1potential for or the appearance of a financial interest. The
2holding or acquisition of an interest in such entities through
3an indirect means, such as through a mutual fund, shall not be
4prohibited, except that the Board may identify specific
5investments or funds that, in its judgment, are so influenced
6by gaming holdings as to represent the potential for or the
7appearance of a conflict of interest.
8 (d) Officials and employees of the corporate authority of a
9host community may not accept any gift, gratuity, service,
10compensation, travel, lodging, or thing of value, with the
11exception of unsolicited items of an incidental nature, from
12any person, corporation, or entity doing business with the
13riverboat or casino that is located in the host community.
14 (e) Officials and employees of the corporate authority of a
15host community shall not, during the period that the person is
16an official or employee of the corporate authority or for a
17period of 2 years immediately after leaving such office,
18knowingly accept employment or receive compensation or fees for
19services from a person or entity, or its parent or affiliate,
20that has engaged in business with the riverboat or casino that
21is located in the host community that resulted in contracts
22with an aggregate value of at least $25,000 or if that official
23or employee has made a decision that directly applied to the
24person or entity, or its parent or affiliate.
25 (f) A spouse, child, or parent of an official or employee
26of the corporate authority of a host community may not have a

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1financial interest, directly or indirectly, in his or her own
2name or in the name of any other person, partnership,
3association, trust, corporation, or other entity in any
4contract or subcontract for the performance of any work for a
5riverboat or casino in the host community. This prohibition
6shall extend to the holding or acquisition of an interest in
7any entity identified by Board action that, in the judgment of
8the Board, could represent the potential for or the appearance
9of a conflict of interest. The holding or acquisition of an
10interest in such entities through an indirect means, such as
11through a mutual fund, shall not be prohibited, expect that the
12Board may identify specific investments or funds that, in its
13judgment, are so influenced by gaming holdings as to represent
14the potential for or the appearance of a conflict of interest.
15 (g) A spouse, child, or parent of an official or employee
16of the corporate authority of a host community may not accept
17any gift, gratuity, service, compensation, travel, lodging, or
18thing of value, with the exception of unsolicited items of an
19incidental nature, from any person, corporation, or entity
20doing business with the riverboat or casino that is located in
21the host community.
22 (h) A spouse, child, or parent of an official or employee
23of the corporate authority of a host community may not, during
24the period that the person is an official of the corporate
25authority or for a period of 2 years immediately after leaving
26such office or employment, knowingly accept employment or

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1receive compensation or fees for services from a person or
2entity, or its parent or affiliate, that has engaged in
3business with the riverboat or casino that is located in the
4host community that resulted in contracts with an aggregate
5value of at least $25,000 or if that official or employee has
6made a decision that directly applied to the person or entity,
7or its parent or affiliate.
8 (i) Officials and employees of the corporate authority of a
9host community shall not attempt, in any way, to influence any
10person or entity doing business with the riverboat or casino
11that is located in the host community or any officer, agent, or
12employee thereof to hire or contract with any person or entity
13for any compensated work.
14 (j) Any communication between an official of the corporate
15authority of a host community and any applicant for an owners
16license in the host community, or an officer, director, or
17employee of a riverboat or casino in the host community,
18concerning any matter relating in any way to gaming shall be
19disclosed to the Board. Such disclosure shall be in writing by
20the official within 30 days after the communication and shall
21be filed with the Board. Disclosure must consist of the date of
22the communication, the identity and job title of the person
23with whom the communication was made, a brief summary of the
24communication, the action requested or recommended, all
25responses made, the identity and job title of the person making
26the response, and any other pertinent information. Public

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1disclosure of the written summary provided to the Board and the
2Gaming Board shall be subject to the exemptions provided under
3the Freedom of Information Act.
4 This subsection (j) shall not apply to communications
5regarding traffic, law enforcement, security, environmental
6issues, city services, transportation, or other routine
7matters concerning the ordinary operations of the riverboat or
8casino. For purposes of this subsection (j), "ordinary
9operations" means operations relating to the casino or
10riverboat facility other than the conduct of gambling
11activities, and "routine matters" includes the application
12for, issuance of, renewal of, and other processes associated
13with municipal permits and licenses.
14 (k) Any official or employee who violates any provision of
15this Section is guilty of a Class 4 felony.
16 (l) For purposes of this Section, "host community" or "host
17municipality" means a unit of local government that contains a
18riverboat or casino within its borders, but does not include
19the City of Chicago or the Chicago Casino Development
20Authority.
21 (230 ILCS 10/6) (from Ch. 120, par. 2406)
22 Sec. 6. Application for Owners License.
23 (a) A qualified person may apply to the Board for an owners
24license to conduct a riverboat gambling operation as provided
25in this Act. The application shall be made on forms provided by

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

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

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1 laws.
2 (7) The applicant's record, if any, in dealing with its
3 employees and their representatives at other locations.
4 (8) A plan concerning the utilization of
5 minority-owned and female-owned businesses and concerning
6 the hiring of minorities and females.
7 (9) Evidence the applicant used its best efforts to
8 reach a goal of 25% ownership representation by minority
9 persons and 5% ownership representation by females.
10 (b) Applicants shall submit with their application all
11documents, resolutions, and letters of support from the
12governing body that represents the municipality or county
13wherein the licensee will be located dock.
14 (c) Each applicant shall disclose the identity of every
15person or entity , association, trust or corporation having a
16greater than 1% direct or indirect pecuniary interest in the
17riverboat gambling operation with respect to which the license
18is sought. If the disclosed entity is a trust, the application
19shall disclose the names and addresses of all the
20beneficiaries; if a corporation, the names and addresses of all
21stockholders and directors; if a partnership, the names and
22addresses of all partners, both general and limited.
23 (d) An application shall be filed and considered in
24accordance with the rules of the Board. Each application shall
25be accompanied by a non-refundable An application fee of
26$100,000. In addition, a non-refundable fee of $50,000 shall be

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

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1gambling operation may be authorized by the Board on any
2riverboat or in any casino. The applicant must identify the
3each riverboat or premises it intends to use and certify that
4the riverboat or premises: (1) has the authorized capacity
5required in this Act; (2) is accessible to disabled persons;
6and (3) is fully registered and licensed in accordance with any
7applicable laws.
8 (g) A person who knowingly makes a false statement on an
9application is guilty of a Class A misdemeanor.
10(Source: P.A. 96-1392, eff. 1-1-11.)
11 (230 ILCS 10/7) (from Ch. 120, par. 2407)
12 Sec. 7. Owners Licenses.
13 (a) The Board shall issue owners licenses to persons or
14entities , firms or corporations which apply for such licenses
15upon payment to the Board of the non-refundable license fee as
16provided in subsection (e) or (e-5) set by the Board, upon
17payment of a $25,000 license fee for the first year of
18operation and a $5,000 license fee for each succeeding year and
19upon a determination by the Board that the applicant is
20eligible for an owners license pursuant to this Act, the
21Chicago Casino Development Authority Act, and the rules of the
22Board. From the effective date of this amendatory Act of the
2395th General Assembly until (i) 3 years after the effective
24date of this amendatory Act of the 95th General Assembly, (ii)
25the date any organization licensee begins to operate a slot

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1machine or video game of chance under the Illinois Horse Racing
2Act of 1975 or this Act, (iii) the date that payments begin
3under subsection (c-5) of Section 13 of the Act, or (iv) the
4wagering tax imposed under Section 13 of this Act is increased
5by law to reflect a tax rate that is at least as stringent or
6more stringent than the tax rate contained in subsection (a-3)
7of Section 13, or (v) when an owners licensee holding a license
8issued pursuant to Section 7.1 of this Act begins conducting
9gaming, whichever occurs first, as a condition of licensure and
10as an alternative source of payment for those funds payable
11under subsection (c-5) of Section 13 of this the Riverboat
12Gambling Act, any owners licensee that holds or receives its
13owners license on or after the effective date of this
14amendatory Act of the 94th General Assembly, other than an
15owners licensee operating a riverboat with adjusted gross
16receipts in calendar year 2004 of less than $200,000,000, must
17pay into the Horse Racing Equity Trust Fund, in addition to any
18other payments required under this Act, an amount equal to 3%
19of the adjusted gross receipts received by the owners licensee.
20The payments required under this Section shall be made by the
21owners licensee to the State Treasurer no later than 3:00
22o'clock p.m. of the day after the day when the adjusted gross
23receipts were received by the owners licensee. A person, firm
24or entity corporation is ineligible to receive an owners
25license if:
26 (1) the person has been convicted of a felony under the

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1 laws of this State, any other state, or the United States;
2 (2) the person has been convicted of any violation of
3 Article 28 of the Criminal Code of 1961 or the Criminal
4 Code of 2012, or substantially similar laws of any other
5 jurisdiction;
6 (3) the person has submitted an application for a
7 license under this Act or the Chicago Casino Development
8 Authority Act which contains false information;
9 (4) the person is a member of the Board;
10 (5) a person defined in (1), (2), (3) or (4) is an
11 officer, director or managerial employee of the entity firm
12 or corporation;
13 (6) the entity firm or corporation employs a person
14 defined in (1), (2), (3) or (4) who participates in the
15 management or operation of gambling operations authorized
16 under this Act or the Chicago Casino Development Authority
17 Act;
18 (7) (blank); or
19 (8) a license of the person or entity , firm or
20 corporation issued under this Act or the Chicago Casino
21 Development Authority Act, or a license to own or operate
22 gambling facilities in any other jurisdiction, has been
23 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

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

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

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

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

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

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1of the first 10 licenses, which shall be issued for a 3 year
2period, all licenses are renewable annually upon payment of the
3fee and a determination by the Board that the licensee
4continues to meet all of the requirements of this Act and the
5Board's rules. However, for licenses renewed on or after May 1,
61998, including casino operator licenses, renewal shall be for
7a period of 4 years, unless the Board sets a shorter period.
8Notwithstanding any provision in this subsection (g) to the
9contrary, any license that is awarded to the Chicago Casino
10Development Authority shall not expire, but it shall be subject
11to the provisions of this Act and the rules of the Board.
12 (h) An owners license, except for an owners license issued
13under subsection (e-5) of this Section, shall entitle the
14licensee to own up to 2 riverboats.
15 An owners licensee of a casino or riverboat that is located
16in the City of Chicago pursuant to paragraph (1) of subsection
17(e-5) of this Section shall limit the number of gaming
18positions to 4,000 for such owner. All other owners licensees A
19licensee shall limit the number of gaming positions gambling
20participants to 1,600 1,200 for any such owners license, except
21as further provided in subsection (h-10) of this Section. The
22initial fee for each gaming position obtained on or after the
23effective date of this amendatory Act of the 98th General
24Assembly shall be a minimum of $17,500 for licensees not
25located in Cook County and a minimum of $30,000 for licensees
26located in Cook County, in addition to the reconciliation

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

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1Facilities Fee Revenue Fund. Additionally, that owners
2licensee shall make a reconciliation payment 3 years after any
3additional gaming positions obtained pursuant to subsection
4(h-10) begin operating in an amount equal to 75% of the owners
5licensee's average gross receipts for the most lucrative
612-month period of operations minus an amount equal to the
7initial fee that the owners licensee paid per additional gaming
8position. For purposes of this subsection (h-5), "average gross
9receipts" means (i) the increase in adjusted gross receipts for
10the most lucrative 12-month period of operations over the
11adjusted gross receipts for 2013, multiplied by (ii) the
12percentage derived by dividing the number of additional gaming
13positions that an owners licensee had obtained pursuant to
14subsection (h-10) by the total number of gaming positions
15operated by the owners licensee. If this calculation results in
16a negative amount, then the owners licensee is not entitled to
17any reimbursement of fees previously paid. This reconciliation
18payment may be made in installments over a period of no more
19than 2 years, subject to Board approval. Any installment
20payments shall include an annual market interest rate as
21determined by the Board. These reconciliation payments shall be
22deposited into the Gaming Facilities Fee Revenue Fund.
23 (h-10) For owners licensees authorized under paragraphs
24(2) through (5) of subsection (e-5) of this Section, the
25application for such new owners licenses shall ask the
26applicants to stipulate in their applications the number of

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1gaming positions each applicant would like to reserve, up to
21,600 gaming positions. Once the last winning applicant for
3each of these owners licenses has been selected by the Board,
4the Board shall publish the number of gaming positions reserved
5and unreserved by each winning applicant, shall accept requests
6for additional gaming positions from any winning applicants or
7owners licensee who initially reserved 1,600 gaming positions,
8and shall allocate expeditiously the unreserved gaming
9positions to such requesting winning applicants or owners
10licensees in a manner to maximize revenue to the State;
11provided, however, that no owners licensee (other than the
12Chicago Casino Development Authority) shall obtain more than
132,000 positions total. The Board may allocate any such unused
14gaming positions through a competitive bidding process
15pursuant to Section 7.5 of this Act.
16 In the event that not all of the unreserved gaming
17positions described in the first and second paragraphs of this
18subsection (h-10) were requested by owners licensees and
19applicants, then until there are no longer unreserved gaming
20positions, the Board periodically shall govern a process to
21allocate the unreserved gaming positions in a manner to
22maximize revenue to the State.
23 Unreserved gaming positions retained from and allocated to
24owners licensees by the Board pursuant to this subsection
25(h-10) shall not be allocated to electronic gaming licensees
26pursuant to subsection (e) of Section 7.6 of this Act.

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

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1accommodate gaming participants for up to 24 months after the
2temporary facility begins to conduct gaming. Upon request by an
3owners licensee and upon a showing of good cause by the owners
4licensee, the Board shall extend the period during which the
5licensee may conduct gaming at a temporary facility by up to 12
6months. The Board shall make rules concerning the conduct of
7gaming from temporary facilities.
8(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
9 (230 ILCS 10/7.3)
10 Sec. 7.3. State conduct of gambling operations.
11 (a) If, after reviewing each application for a re-issued
12license, the Board determines that the highest prospective
13total revenue to the State would be derived from State conduct
14of the gambling operation in lieu of re-issuing the license,
15the Board shall inform each applicant of its decision. The
16Board shall thereafter have the authority, without obtaining an
17owners license, to conduct casino or riverboat gambling
18operations as previously authorized by the terminated,
19expired, revoked, or nonrenewed license through a licensed
20manager selected pursuant to an open and competitive bidding
21process as set forth in Section 7.5 and as provided in Section
227.4.
23 (b) The Board may locate any casino or riverboat on which a
24gambling operation is conducted by the State in any home dock
25or other location authorized by Section 3(c) upon receipt of

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1approval from a majority vote of the governing body of the
2municipality or county, as the case may be, in which the
3riverboat will dock.
4 (c) The Board shall have jurisdiction over and shall
5supervise all gambling operations conducted by the State
6provided for in this Act and the Chicago Casino Development
7Authority Act and shall have all powers necessary and proper to
8fully and effectively execute the provisions of this Act and
9the Chicago Casino Development Authority Act relating to
10gambling operations conducted by the State.
11 (d) The maximum number of owners licenses authorized under
12Section 7 7(e) shall be reduced by one for each instance in
13which the Board authorizes the State to conduct a casino or
14riverboat gambling operation under subsection (a) in lieu of
15re-issuing a license to an applicant under Section 7.1.
16(Source: P.A. 93-28, eff. 6-20-03.)
17 (230 ILCS 10/7.5)
18 Sec. 7.5. Competitive Bidding. When the Board determines
19that (i) it will re-issue an owners license pursuant to an open
20and competitive bidding process, as set forth in Section 7.1,
21(ii) or that it will issue a managers license pursuant to an
22open and competitive bidding process, as set forth in Section
237.4, (iii) it will issue an owners license pursuant to an open
24and competitive bidding process, as set forth in Section 7.11,
25or (iv) it will allocate unused gaming positions pursuant to an

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

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

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

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

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1investigation are less than $50,000, the applicant shall
2receive a refund of the remaining amount. All information,
3records, interviews, reports, statements, memoranda, or other
4data supplied to or used by the Board in the course of this
5review or investigation of an applicant for an electronic
6gaming license under this Act shall be privileged and strictly
7confidential and shall be used only for the purpose of
8evaluating an applicant for an electronic gaming 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. The application
14fee shall be deposited into the Gaming Facilities Fee Revenue
15Fund.
16 Each applicant shall submit with his or her application, on
17forms provided by the Board, 2 sets of his or her fingerprints.
18The Board shall charge each applicant a fee set by the
19Department of State Police to defray the costs associated with
20the search and classification of fingerprints obtained by the
21Board with respect to the applicant's application. This fee
22shall be paid into the State Police Services Fund.
23 (c) The Board shall determine within 120 days after
24receiving an application for an electronic gaming license
25whether to grant an electronic gaming license to the applicant.
26If the Board does not make a determination within that time

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

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1an electronic gaming license shall be $100,000.
2 (d) To be eligible to conduct electronic gaming, a person
3or entity having operating control of a race track must (i)
4obtain an electronic gaming license, (ii) hold an organization
5license under the Illinois Horse Racing Act of 1975, (iii) hold
6an inter-track wagering license, (iv) pay an initial fee of
7$30,000 per gaming position from electronic gaming licensees
8where electronic gaming is conducted in Cook County and $17,500
9for electronic gaming licensees where electronic gaming is
10located outside of Cook County before beginning to conduct
11electronic gaming plus make the reconciliation payment
12required under subsection (i), (v) conduct at least 240 live
13races at each track per year or for a licensee that is only
14authorized 350 gaming positions pursuant to subsection (d) of
15Section 7.6 of this Act, have a fully operational facility
16running at least 96 live races over a period of at least 15
17days per year until such time as the total number of gaming
18positions is increased to 900, (vi) meet the requirements of
19subsection (a) of Section 56 of the Illinois Horse Racing Act
20of 1975, (vii) for organization licensees conducting
21standardbred race meetings that had an open backstretch in
222009, keep backstretch barns and dormitories open and
23operational year-round unless a lesser schedule is mutually
24agreed to by the organization licensee and the horsemen's
25association racing at that organization licensee's race
26meeting, (viii) for organization licensees conducting

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

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

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

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

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1positions for all electronic gaming licensees.
2 (h) Subject to the approval of the Illinois Gaming Board,
3an electronic gaming licensee may make modification or
4additions to any existing buildings and structures to comply
5with the requirements of this Act. The Illinois Gaming Board
6shall make its decision after consulting with the Illinois
7Racing Board. In no case, however, shall the Illinois Gaming
8Board approve any modification or addition that alters the
9grounds of the organizational licensee such that the act of
10live racing is an ancillary activity to electronic gaming.
11Electronic gaming may take place in existing structures where
12inter-track wagering is conducted at the race track or a
13facility within 300 yards of the race track in accordance with
14the provisions of this Act and the Illinois Horse Racing Act of
151975.
16 (i) An electronic gaming licensee may conduct electronic
17gaming at a temporary facility pending the construction of a
18permanent facility or the remodeling or relocation of an
19existing facility to accommodate electronic gaming
20participants for up to 24 months after the temporary facility
21begins to conduct electronic gaming. Upon request by an
22electronic gaming licensee and upon a showing of good cause by
23the electronic gaming licensee, the Board shall extend the
24period during which the licensee may conduct electronic gaming
25at a temporary facility by up to 12 months. The Board shall
26make rules concerning the conduct of electronic gaming from

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1temporary facilities.
2 Electronic gaming may take place in existing structures
3where inter-track wagering is conducted at the race track or a
4facility within 300 yards of the race track in accordance with
5the provisions of this Act and the Illinois Horse Racing Act of
61975. Any electronic gaming conducted at a permanent facility
7within 300 yards of the race track in accordance with this Act
8and the Illinois Horse Racing Act of 1975 shall have an
9all-weather egress connecting the electronic gaming facility
10and the race track facility or, on days and hours of live
11racing, a complimentary shuttle service between the permanent
12electronic gaming facility and the race track facility and
13shall not charge electronic gaming participants an additional
14admission fee to the race track facility.
15 (j) The Illinois Gaming Board must adopt emergency rules in
16accordance with Section 5-45 of the Illinois Administrative
17Procedure Act as necessary to ensure compliance with the
18provisions of this amendatory Act of the 98th General Assembly
19concerning electronic gaming. The adoption of emergency rules
20authorized by this subsection (j) shall be deemed to be
21necessary for the public interest, safety, and welfare.
22 (k) Each electronic gaming licensee who obtains electronic
23gaming positions must make a reconciliation payment 3 years
24after the date the electronic gaming licensee begins operating
25the positions in an amount equal to 75% of the difference
26between its adjusted gross receipts from electronic gaming and

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

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1 submits its plan to construct a new structure to conduct
2 electronic gaming operations; and
3 (2) the organization licensee may not relocate within a
4 5-mile radius of a riverboat if the owners license was
5 issued prior to December 31, 2011.
6The relocation must include the race track facility, including
7the race track operations used to conduct live racing and the
8electronic gaming facility in its entirety. For the purposes of
9this subsection (m), "race track facility" means all operations
10conducted on the race track property for which it was awarded a
11license for pari-mutuel wagering and live racing in the year
122010, except for the real estate itself. The Illinois Gaming
13Board shall make its decision after consulting with the
14Illinois Racing Board, and any relocation application shall be
15subject to all of the provisions of this Act and the Illinois
16Horse Racing Act of 1975.
17 (230 ILCS 10/7.7 new)
18 Sec. 7.7. Home rule. The regulation and licensing of
19electronic gaming and electronic gaming licensees are
20exclusive powers and functions of the State. A home rule unit
21may not regulate or license electronic gaming or electronic
22gaming licensees. This Section is a denial and limitation of
23home rule powers and functions under subsection (h) of Section
246 of Article VII of the Illinois Constitution.

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1 (230 ILCS 10/7.8 new)
2 Sec. 7.8. Casino operator license.
3 (a) A qualified person may apply to the Board for a casino
4operator license to operate and manage any gambling operation
5conducted by the Authority. The application shall be made on
6forms provided by the Board and shall contain such information
7as the Board prescribes, including but not limited to
8information required in Sections 6(a), (b), and (c) and
9information relating to the applicant's proposed price to
10manage the Authority's gambling operations and to provide the
11casino, gambling equipment, and supplies necessary to conduct
12Authority gambling operations. The application shall also
13include a non-refundable application fee of $100,000. This
14application fee shall be deposited into the Gaming Facilities
15Fee Revenue Fund.
16 (b) A person or entity is ineligible to receive a casino
17operator license if:
18 (1) the person has been convicted of a felony under the
19 laws of this State, any other state, or the United States;
20 (2) the person has been convicted of any violation of
21 Article 28 of the Criminal Code of 2012, or substantially
22 similar laws of any other jurisdiction;
23 (3) the person has submitted an application for a
24 license under this Act or the Chicago Casino Development
25 Authority Act which contains false information;
26 (4) the person is a member of the Board or the Chicago

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

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

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

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1work stoppages, boycotts, or any other economic interference
2with the casino facility for at least the first 5 years of the
3casino license and must cover all operations at the casino
4facility that are conducted by lessees or tenants or under
5management agreements.
6 (h) The casino operator license shall be for a term of 4
7years, shall be renewable by the Board, and shall contain such
8terms and provisions as the Board deems necessary to protect or
9enhance the credibility and integrity of State gambling
10operations, achieve the highest prospective total revenue to
11the State, and otherwise serve the interests of the citizens of
12Illinois. The Board may suspend, restrict, or revoke the
13license:
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:

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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 or entity may not
5be ineligible to receive an owners license under subsection (a)
6of Section 7 of this Act and must submit an application for an
7owners license that complies with Section 6 of this Act.
8 (c) In determining whether to grant an owners license to an
9applicant, the Board shall consider all of the factors set
10forth in subsections (b) and (e-10) of Section 7 of this Act,
11as well as the amount of the applicant's license bid. The Board
12may grant the owners license to an applicant that has not
13submitted the highest license bid, but if it does not select
14the highest bidder, the Board shall issue a written decision
15explaining why another applicant was selected and identifying
16the factors set forth in subsections (b) and (e-10) of Section
177 of this Act that favored the winning bidder.
18 (230 ILCS 10/7.12 new)
19 Sec. 7.12. Environmental standards. All permanent
20casinos, riverboats, and electronic gaming facilities shall
21consist of buildings that are certified as meeting the U.S.
22Green Building Council's Leadership in Energy and
23Environmental Design standards. The provisions of this Section
24apply to a holder of an owners license, casino operator
25license, or electronic gaming license that (i) begins

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1operations on or after January 1, 2013 or (ii) relocates its
2facilities on or after the effective date of this amendatory
3Act of the 98th General Assembly.
4 (230 ILCS 10/8) (from Ch. 120, par. 2408)
5 Sec. 8. Suppliers licenses.
6 (a) The Board may issue a suppliers license to such
7persons, firms or corporations which apply therefor upon the
8payment of a non-refundable application fee set by the Board,
9upon a determination by the Board that the applicant is
10eligible for a suppliers license and upon payment of a $5,000
11annual license fee.
12 (b) The holder of a suppliers license is authorized to sell
13or lease, and to contract to sell or lease, gambling equipment
14and supplies to any licensee involved in the ownership or
15management of gambling operations.
16 (c) Gambling supplies and equipment may not be distributed
17unless supplies and equipment conform to standards adopted by
18rules of the Board.
19 (d) A person, firm or corporation is ineligible to receive
20a suppliers license if:
21 (1) the person has been convicted of a felony under the
22 laws of this State, any other state, or the United States;
23 (2) the person has been convicted of any violation of
24 Article 28 of the Criminal Code of 1961 or the Criminal
25 Code of 2012, or substantially similar laws of any other

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

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

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

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

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

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1conducted either at the site of the gambling facility on the
2riverboat or at a school with which a licensed owner or
3electronic gaming licensee has entered into an agreement
4pursuant to subsection (h).
5(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;
697-1150, eff. 1-25-13.)
7 (230 ILCS 10/11) (from Ch. 120, par. 2411)
8 Sec. 11. Conduct of gambling. Gambling may be conducted by
9licensed owners or licensed managers on behalf of the State
10aboard riverboats. Gambling may be conducted by electronic
11gaming licensees at electronic gaming facilities. Gambling may
12be conducted by a casino operator licensee at a casino.
13Gambling authorized under this Section is , subject to the
14following standards:
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.

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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.

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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

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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

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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

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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.

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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 equally and remitted monthly,
26subject to appropriation, to the City of Rockford and Winnebago

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1County.
2 The municipality's or county's share shall be collected by
3the Board on behalf of the State and remitted quarterly by the
4State, subject to appropriation, to the treasurer of the unit
5of local government for deposit in the general fund.
6 (c) The licensed owner shall pay the entire admission tax
7to the Board and the licensed manager or the casino operator
8licensee shall pay the entire admission fee to the Board. Such
9payments shall be made daily. Accompanying each payment shall
10be a return on forms provided by the Board which shall include
11other information regarding admissions as the Board may
12require. Failure to submit either the payment or the return
13within the specified time may result in suspension or
14revocation of the owners or managers license.
15 (c-5) A tax is imposed on admissions to electronic gaming
16facilities at the rate of $3 per person admitted by an
17electronic gaming licensee. The tax is imposed upon the
18electronic gaming licensee.
19 (1) The admission tax shall be paid for each admission,
20 except that a person who exits an electronic gaming
21 facility and reenters that electronic gaming facility
22 within the same gaming day, as the term "gaming day" is
23 defined by the Board by rule, shall be subject only to the
24 initial admission tax. The Board shall establish, by rule,
25 a procedure to determine whether a person admitted to an
26 electronic gaming facility has paid the admission tax.

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1 (2) An electronic gaming licensee may issue tax-free
2 passes to actual and necessary officials and employees of
3 the licensee and other persons associated with electronic
4 gaming operations.
5 (3) The number and issuance of tax-free passes is
6 subject to the rules of the Board, and a list of all
7 persons to whom the tax-free passes are issued shall be
8 filed with the Board.
9 (4) The electronic gaming licensee shall pay the entire
10 admission tax to the Board.
11 Such payments shall be made daily. Accompanying each
12payment shall be a return on forms provided by the Board, which
13shall include other information regarding admission as the
14Board may require. Failure to submit either the payment or the
15return within the specified time may result in suspension or
16revocation of the electronic gaming license.
17 From the tax imposed under this subsection (c-5), a
18municipality other than the Village of Stickney or the City of
19Collinsville in which an electronic gaming facility is located,
20or if the electronic gaming facility is not located within a
21municipality, then the county in which the electronic gaming
22facility is located, except as otherwise provided in this
23Section, shall receive, subject to appropriation, $1 for each
24person who enters the electronic gaming facility. For each
25admission to the electronic gaming facility in excess of
261,500,000 in a year, from the tax imposed under this subsection

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1(c-5), the county in which the electronic gaming facility is
2located shall receive, subject to appropriation, $0.30, which
3shall be in addition to any other moneys paid to the county
4under this Section.
5 From the tax imposed under this subsection (c-5) on an
6electronic gaming facility located in the Village of Stickney,
7$1 for each person who enters the electronic gaming facility
8shall be distributed as follows, subject to appropriation:
9$0.24 to the Village of Stickney, $0.49 to the Town of Cicero,
10$0.05 to the City of Berwyn, and $0.17 to the Stickney Public
11Health District, and $0.05 to the City of Bridgeview.
12 From the tax imposed under this subsection (c-5) on an
13electronic gaming facility located in the City of Collinsville,
14$1 for each person who enters the electronic gaming facility
15shall be distributed as follows, subject to appropriation:
16$0.45 to the City of Alton, $0.45 to the City of East St.
17Louis, and $0.10 to the City of Collinsville.
18 From the tax imposed under this subsection (c-5) on an
19electronic gaming facility that is located in an unincorporated
20area of Cook County and has been awarded standardbred racing
21dates during 2011 by the Illinois Racing Board, $1 for each
22person who enters the electronic gaming facility shall be
23divided equally and distributed, subject to appropriation, to
24the Village of Melrose Park, the Village of Maywood, and Cook
25County.
26 After payments required under this subsection (c-5) have

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1been made, all remaining amounts shall be deposited into the
2Education Assistance Fund.
3 (d) The Board shall administer and collect the admission
4tax imposed by this Section, to the extent practicable, in a
5manner consistent with the provisions of Sections 4, 5, 5a, 5b,
65c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
7Retailers' Occupation Tax Act and Section 3-7 of the Uniform
8Penalty and Interest Act.
9(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
10 (230 ILCS 10/13) (from Ch. 120, par. 2413)
11 Sec. 13. Wagering tax; rate; distribution.
12 (a) Until January 1, 1998, a tax is imposed on the adjusted
13gross receipts received from gambling games authorized under
14this Act at the rate of 20%.
15 (a-1) From January 1, 1998 until July 1, 2002, a privilege
16tax is imposed on persons engaged in the business of conducting
17riverboat gambling operations, based on the adjusted gross
18receipts received by a licensed owner from gambling games
19authorized under this Act at the following rates:
20 15% of annual adjusted gross receipts up to and
21 including $25,000,000;
22 20% of annual adjusted gross receipts in excess of
23 $25,000,000 but not exceeding $50,000,000;
24 25% of annual adjusted gross receipts in excess of
25 $50,000,000 but not exceeding $75,000,000;

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1 30% of annual adjusted gross receipts in excess of
2 $75,000,000 but not exceeding $100,000,000;
3 35% of annual adjusted gross receipts in excess of
4 $100,000,000.
5 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
6is imposed on persons engaged in the business of conducting
7riverboat gambling operations, other than licensed managers
8conducting riverboat gambling operations on behalf of the
9State, based on the adjusted gross receipts received by a
10licensed owner from gambling games authorized under this Act at
11the following rates:
12 15% of annual adjusted gross receipts up to and
13 including $25,000,000;
14 22.5% of annual adjusted gross receipts in excess of
15 $25,000,000 but not exceeding $50,000,000;
16 27.5% of annual adjusted gross receipts in excess of
17 $50,000,000 but not exceeding $75,000,000;
18 32.5% of annual adjusted gross receipts in excess of
19 $75,000,000 but not exceeding $100,000,000;
20 37.5% of annual adjusted gross receipts in excess of
21 $100,000,000 but not exceeding $150,000,000;
22 45% of annual adjusted gross receipts in excess of
23 $150,000,000 but not exceeding $200,000,000;
24 50% of annual adjusted gross receipts in excess of
25 $200,000,000.
26 (a-3) Beginning July 1, 2003, a privilege tax is imposed on

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1persons engaged in the business of conducting riverboat
2gambling operations, other than licensed managers conducting
3riverboat gambling operations on behalf of the State, based on
4the adjusted gross receipts received by a licensed owner from
5gambling games authorized under this Act at the following
6rates:
7 15% of annual adjusted gross receipts up to and
8 including $25,000,000;
9 27.5% of annual adjusted gross receipts in excess of
10 $25,000,000 but not exceeding $37,500,000;
11 32.5% of annual adjusted gross receipts in excess of
12 $37,500,000 but not exceeding $50,000,000;
13 37.5% of annual adjusted gross receipts in excess of
14 $50,000,000 but not exceeding $75,000,000;
15 45% of annual adjusted gross receipts in excess of
16 $75,000,000 but not exceeding $100,000,000;
17 50% of annual adjusted gross receipts in excess of
18 $100,000,000 but not exceeding $250,000,000;
19 70% of annual adjusted gross receipts in excess of
20 $250,000,000.
21 An amount equal to the amount of wagering taxes collected
22under this subsection (a-3) that are in addition to the amount
23of wagering taxes that would have been collected if the
24wagering tax rates under subsection (a-2) were in effect shall
25be paid into the Common School Fund.
26 The privilege tax imposed under this subsection (a-3) shall

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1no longer be imposed beginning on the earlier of (i) July 1,
22005; (ii) the first date after June 20, 2003 that riverboat
3gambling operations are conducted pursuant to a dormant
4license; or (iii) the first day that riverboat gambling
5operations are conducted under the authority of an owners
6license that is in addition to the 10 owners licenses initially
7authorized under this Act. For the purposes of this subsection
8(a-3), the term "dormant license" means an owners license that
9is authorized by this Act under which no riverboat gambling
10operations are being conducted on June 20, 2003.
11 (a-4) Beginning on the first day on which the tax imposed
12under subsection (a-3) is no longer imposed and ending upon the
13imposition of the privilege tax under subsection (a-5) of this
14Section, a privilege tax is imposed on persons engaged in the
15business of conducting riverboat or casino gambling or
16electronic gaming operations, other than licensed managers
17conducting riverboat gambling operations on behalf of the
18State, based on the adjusted gross receipts received by a
19licensed owner from gambling games authorized under this Act at
20the following rates:
21 15% of annual adjusted gross receipts up to and
22 including $25,000,000;
23 22.5% of annual adjusted gross receipts in excess of
24 $25,000,000 but not exceeding $50,000,000;
25 27.5% of annual adjusted gross receipts in excess of
26 $50,000,000 but not exceeding $75,000,000;

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1 32.5% of annual adjusted gross receipts in excess of
2 $75,000,000 but not exceeding $100,000,000;
3 37.5% of annual adjusted gross receipts in excess of
4 $100,000,000 but not exceeding $150,000,000;
5 45% of annual adjusted gross receipts in excess of
6 $150,000,000 but not exceeding $200,000,000;
7 50% of annual adjusted gross receipts in excess of
8 $200,000,000.
9 For the imposition of the privilege tax in this subsection
10(a-4), 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-5) Beginning in the fiscal year following the opening of
14the casino at which gambling operations are conducted pursuant
15to the Chicago Casino Development Authority Act, but not before
16July 1, 2015, a privilege tax is imposed on persons engaged in
17the business of conducting riverboat or casino gambling or
18electronic gaming operations, other than licensed managers
19conducting riverboat gambling operations on behalf of the
20State, based on the adjusted gross receipts received by such
21licensee from the gambling games authorized under this Act and
22the Chicago Casino Development Authority Act. The privilege tax
23for all gambling games other than table games, including, but
24not limited to, slot machines, video game of chance gambling,
25and electronic gambling games shall be at the following rates:
26 10% of annual adjusted gross receipts up to and

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1 including $25,000,000;
2 17.5% of annual adjusted gross receipts in excess of
3 $25,000,000 but not exceeding $50,000,000;
4 22.5% of annual adjusted gross receipts in excess of
5 $50,000,000 but not exceeding $75,000,000;
6 27.5% of annual adjusted gross receipts in excess of
7 $75,000,000 but not exceeding $100,000,000;
8 32.5% of annual adjusted gross receipts in excess of
9 $100,000,000 but not exceeding $150,000,000;
10 35% of annual adjusted gross receipts in excess of
11 $150,000,000 but not exceeding $200,000,000;
12 40% of annual adjusted gross receipts in excess of
13 $200,000,000 but not exceeding $300,000,000;
14 30% of annual adjusted gross receipts in excess of
15 $300,000,000 but not exceeding $350,000,000;
16 20% of annual adjusted gross receipts in excess of
17 $350,000,000, but not exceeding $800,000,000;
18 50% of annual adjusted gross receipts in excess of
19 $800,000,000.
20 The privilege tax for table games shall be at the following
21rates:
22 10% of annual adjusted gross receipts up to and
23 including $25,000,000;
24 17.5% of annual adjusted gross receipts in excess of
25 $25,000,000 but not exceeding $50,000,000;
26 22.5% of annual adjusted gross receipts in excess of

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1 $50,000,000 but not exceeding $70,000,000;
2 16% of annual adjusted gross receipts in excess of
3 $70,000,000.
4 For the imposition of the privilege tax in this subsection
5(a-5), amounts paid pursuant to item (1) of subsection (b) of
6Section 56 of the Illinois Horse Racing Act of 1975 shall not
7be included in the determination of adjusted gross receipts.
8 (a-6) From the effective date of this amendatory Act of the
998th General Assembly until June 30, 2017, an owners licensee
10that conducted gambling operations prior to January 1, 2011
11shall receive a dollar-for-dollar credit against the tax
12imposed under this Section for any renovation or construction
13costs paid by the owners licensee, but in no event shall the
14credit exceed $2,000,000.
15 Additionally, from the effective date of this amendatory
16Act of the 98th General Assembly until December 31, 2016, an
17owners licensee that (i) is located within 15 miles of the
18Missouri border, and (ii) has at least 3 riverboats, casinos,
19or their equivalent within a 45-mile radius, may be authorized
20to relocate to a new location with the approval of both the
21unit of local government designated as the home dock and the
22Board, so long as the new location is within the same unit of
23local government and no more than 3 miles away from its
24original location. Such owners licensee shall receive a credit
25against the tax imposed under this Section equal to 8% of the
26total project costs, as approved by the Board, for any

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1renovation or construction costs paid by the owners licensee
2for the construction of the new facility, provided that the new
3facility is operational by July 1, 2016. In determining whether
4or not to approve a relocation, the Board must consider the
5extent to which the relocation will diminish the gaming
6revenues received by other Illinois gaming facilities.
7 (a-8) Riverboat gambling operations conducted by a
8licensed manager on behalf of the State are not subject to the
9tax imposed under this Section.
10 (a-9) Beginning on January 1, 2014, the calculation of
11gross receipts or adjusted gross receipts, for the purposes of
12this Section, for a riverboat, casino, or electronic gaming
13facility shall not include the dollar amount of non-cashable
14vouchers, coupons, and electronic promotions redeemed by
15wagerers upon the riverboat, in the casino, or in the
16electronic gaming facility up to and including an amount not to
17exceed 30% of a riverboat casino or electronic gaming
18facility's adjusted gross receipts.
19 The Illinois Gaming Board shall submit to the General
20Assembly a comprehensive report no later than March 31, 2017
21detailing, at a minimum, the effect of removing non-cashable
22vouchers, coupons, and electronic promotions from this
23calculation on net gaming revenues to the State in calendar
24years 2014 through 2016, the increase or reduction in wagerers
25as a result of removing non-cashable vouchers, coupons, and
26electronic promotions from this calculation, the effect of the

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1tax rates in subsection (a-5) on net gaming revenues to the
2State, and proposed modifications to the calculation.
3 (a-10) The taxes imposed by this Section shall be paid by
4the licensed owner or the electronic gaming licensee to the
5Board not later than 5:00 o'clock p.m. of the day after the day
6when the wagers were made.
7 (a-15) If the privilege tax imposed under subsection (a-3)
8is no longer imposed pursuant to item (i) of the last paragraph
9of subsection (a-3), then by June 15 of each year, each owners
10licensee, other than an owners licensee that admitted 1,000,000
11persons or fewer in calendar year 2004, must, in addition to
12the payment of all amounts otherwise due under this Section,
13pay to the Board a reconciliation payment in the amount, if
14any, by which the licensed owner's base amount exceeds the
15amount of net privilege tax paid by the licensed owner to the
16Board in the then current State fiscal year. A licensed owner's
17net privilege tax obligation due for the balance of the State
18fiscal year shall be reduced up to the total of the amount paid
19by the licensed owner in its June 15 reconciliation payment.
20The obligation imposed by this subsection (a-15) is binding on
21any person, firm, corporation, or other entity that acquires an
22ownership interest in any such owners license. The obligation
23imposed under this subsection (a-15) terminates on the earliest
24of: (i) July 1, 2007, (ii) the first day after the effective
25date of this amendatory Act of the 94th General Assembly that
26riverboat gambling operations are conducted pursuant to a

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1dormant license, (iii) the first day that riverboat gambling
2operations are conducted under the authority of an owners
3license that is in addition to the 10 owners licenses initially
4authorized under this Act, or (iv) the first day that a
5licensee under the Illinois Horse Racing Act of 1975 conducts
6gaming operations with slot machines or other electronic gaming
7devices. The Board must reduce the obligation imposed under
8this subsection (a-15) by an amount the Board deems reasonable
9for any of the following reasons: (A) an act or acts of God,
10(B) an act of bioterrorism or terrorism or a bioterrorism or
11terrorism threat that was investigated by a law enforcement
12agency, or (C) a condition beyond the control of the owners
13licensee that does not result from any act or omission by the
14owners licensee or any of its agents and that poses a hazardous
15threat to the health and safety of patrons. If an owners
16licensee pays an amount in excess of its liability under this
17Section, the Board shall apply the overpayment to future
18payments required under this Section.
19 For purposes of this subsection (a-15):
20 "Act of God" means an incident caused by the operation of
21an extraordinary force that cannot be foreseen, that cannot be
22avoided by the exercise of due care, and for which no person
23can be held liable.
24 "Base amount" means the following:
25 For a riverboat in Alton, $31,000,000.
26 For a riverboat in East Peoria, $43,000,000.

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1 For the Empress riverboat in Joliet, $86,000,000.
2 For a riverboat in Metropolis, $45,000,000.
3 For the Harrah's riverboat in Joliet, $114,000,000.
4 For a riverboat in Aurora, $86,000,000.
5 For a riverboat in East St. Louis, $48,500,000.
6 For a riverboat in Elgin, $198,000,000.
7 "Dormant license" has the meaning ascribed to it in
8subsection (a-3).
9 "Net privilege tax" means all privilege taxes paid by a
10licensed owner to the Board under this Section, less all
11payments made from the State Gaming Fund pursuant to subsection
12(b) of this Section.
13 The changes made to this subsection (a-15) by Public Act
1494-839 are intended to restate and clarify the intent of Public
15Act 94-673 with respect to the amount of the payments required
16to be made under this subsection by an owners licensee to the
17Board.
18 (b) Until January 1, 1998, 25% of the tax revenue deposited
19in the State Gaming Fund under this Section shall be paid,
20subject to appropriation by the General Assembly, to the unit
21of local government which is designated as the home dock of the
22riverboat. Beginning January 1, 1998, from the tax revenue from
23riverboat or casino gambling deposited in the State Gaming Fund
24under this Section, an amount equal to 5% of adjusted gross
25receipts generated by a riverboat or a casino other than a
26riverboat designated in paragraph (3) or (4) of subsection

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1(e-5) of Section 7, shall be paid monthly, subject to
2appropriation by the General Assembly, to the unit of local
3government in which the casino is located or that is designated
4as the home dock of the riverboat. From the tax revenue
5deposited in the State Gaming Fund pursuant to riverboat or
6casino gambling operations conducted by a licensed manager on
7behalf of the State, an amount equal to 5% of adjusted gross
8receipts generated pursuant to those riverboat or casino
9gambling operations shall be paid monthly, subject to
10appropriation by the General Assembly, to the unit of local
11government that is designated as the home dock of the riverboat
12upon which those riverboat gambling operations are conducted or
13in which the casino is located. From the tax revenue from
14riverboat or casino gambling deposited in the State Gaming Fund
15under this Section, an amount equal to 5% of the adjusted gross
16receipts generated by a riverboat designated in paragraph (3)
17of subsection (e-5) of Section 7 shall be divided and remitted
18monthly, subject to appropriation, as follows: 50% to Waukegan,
1925% to Park City, and 25% to North Chicago. From the tax
20revenue from riverboat or casino gambling deposited in the
21State Gaming Fund under this Section, an amount equal to 5% of
22the adjusted gross receipts generated by a riverboat designated
23in paragraph (4) of subsection (e-5) of Section 7 shall be
24divided equally and remitted monthly, subject to
25appropriation, to the City of Rockford and Winnebago County.
26Units of local government may refund any portion of the payment

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1that they receive pursuant to this subsection (b) to the
2riverboat or casino.
3 (b-5) Beginning on the effective date of this amendatory
4Act of the 98th General Assembly, from the tax revenue
5deposited in the State Gaming Fund under this Section, an
6amount equal to 3% of adjusted gross receipts generated by each
7electronic gaming facility located outside Madison County
8shall be paid monthly, subject to appropriation by the General
9Assembly, to a municipality other than the Village of Stickney
10in which each electronic gaming facility is located or, if the
11electronic gaming facility is not located within a
12municipality, to the county in which the electronic gaming
13facility is located, except as otherwise provided in this
14Section. From the tax revenue deposited in the State Gaming
15Fund under this Section, an amount equal to 3% of adjusted
16gross receipts generated by each electronic gaming facility
17that is located in an unincorporated area of Cook County and
18has been awarded standardbred racing dates during 2011 by the
19Illinois Racing Board shall be divided equally and distributed,
20subject to appropriation, to the Village of Melrose Park, the
21Village of Maywood, and Cook County. From the tax revenue
22deposited in the State Gaming Fund under this Section, an
23amount equal to 3% of adjusted gross receipts generated by an
24electronic gaming facility located in the Village of Stickney
25shall be paid monthly, subject to appropriation by the General
26Assembly, as follows: 25% to the Village of Stickney, 5% to the

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1City of Berwyn, 50% to the Town of Cicero, and 20% to the
2Stickney Public Health District.
3 From the tax revenue deposited in the State Gaming Fund
4under this Section, an amount equal to 5% of adjusted gross
5receipts generated by an electronic gaming facility located in
6the City of Collinsville shall be paid monthly, subject to
7appropriation by the General Assembly, as follows: 45% to the
8City of Alton, 45% to the City of East St. Louis, and 10% to the
9City of Collinsville.
10 Municipalities and counties may refund any portion of the
11payment that they receive pursuant to this subsection (b-5) to
12the electronic gaming facility.
13 (b-6) 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 2% of adjusted gross receipts generated by an
17electronic gaming facility located outside Madison County
18shall be paid monthly, subject to appropriation by the General
19Assembly, to the county in which the electronic gaming facility
20is located for the purposes of its criminal justice system or
21health care system.
22 Counties may refund any portion of the payment that they
23receive pursuant to this subsection (b-6) to the electronic
24gaming facility.
25 (b-7) Beginning on the effective date of this amendatory
26Act of the 98th General Assembly, from the tax revenue

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1deposited in the State Gaming Fund under this Section,
2$5,000,000 shall be paid annually, subject to appropriation, to
3the Department of Human Services for the administration of
4programs to treat problem gambling.
5 (b-8) Beginning in the fiscal year following the opening of
6the casino at which gambling operations are conducted pursuant
7to the Chicago Casino Development Authority Act, but not before
8July 1, 2015, from the tax revenue deposited in the State
9Gaming Fund under this Section, $5,000,000 shall be transferred
10into the State Fairgrounds Capital Improvements Fund annually.
11 (b-9) Beginning in the fiscal year following the opening of
12the casino at which gambling operations are conducted pursuant
13to the Chicago Casino Development Authority Act, but not before
14July 1, 2015, from the tax revenue deposited in the State
15Gaming Fund under this Section, an amount equal to 5% of the
16wagering taxes paid by the riverboats and casino created
17pursuant to subsection (e-5) of Section 7 shall be transferred
18into the Depressed Communities Economic Development Fund
19annually.
20 (b-10) Beginning in the fiscal year following the opening
21of the casino at which gambling operations are conducted
22pursuant to the Chicago Casino Development Authority Act, but
23not before July 1, 2015, from the tax revenue deposited in the
24State Gaming Fund under this Section, an amount equal to 2.5%
25of the wagering taxes paid by the riverboats and casino created
26pursuant to subsection (e-5) of Section 7 shall be transferred

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1into the Latino Community Economic Development Fund annually.
2 (b-11) The State and County Fair Assistance Fund is created
3as a special fund in the State treasury. The Fund shall be
4administered by the Department of Agriculture. Beginning in the
5fiscal year following the opening of the casino at which
6gambling operations are conducted pursuant to the Chicago
7Casino Development Authority Act, but not before July 1, 2015,
8from the tax revenue deposited in the State Gaming Fund under
9this Section, an amount equal to 1% of adjusted gross receipts,
10not to exceed $3,000,000, shall be transferred into the State
11and County Fair Assistance Fund annually. No moneys shall be
12expended from the State and County Fair Assistance Fund except
13as appropriated by the General Assembly. Deposits made pursuant
14to this subsection (b-11) shall supplement, and not supplant,
15other State funding for these purposes.
16 The Department of Agriculture shall award grants from the
17moneys appropriated from the State and County Fair Assistance
18Fund for the development, expansion, or support of county fairs
19that showcase Illinois agriculture products or byproducts. No
20grant may exceed $100,000, except for an annual grant of
21$1,000,000 that shall be made to the Illinois Standardbred
22Breeders Fund and used for Illinois-bred harness racing purses
23and the Illinois State Fair race track. Not more than one grant
24under this Section may be made to any one county fair board.
25Additionally, grants under this subsection (b-11) shall be
26available to the Illinois State Fair and the DuQuoin State

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1Fair.
2 (b-12) Beginning in the fiscal year following the opening
3of the casino at which gambling operations are conducted
4pursuant to the Chicago Casino Development Authority Act, but
5not before July 1, 2015, from the tax revenue from electronic
6gaming deposited in the State Gaming Fund under this Section,
7(i) $6,250,000 shall be transferred annually into the Partners
8for Conservation Fund for grants to soil and water conservation
9districts and (ii) $2,500,000 shall be transferred annually
10into the State Cooperative Service Trust Fund for grants to the
11State's cooperative extensions. Transfers made pursuant to
12this subsection (b-12) shall supplement, and not supplant,
13other State funding for these purposes.
14 (b-13) Beginning in the fiscal year following the opening
15of the casino at which gambling operations are conducted
16pursuant to the Chicago Casino Development Authority Act, but
17not before July 1, 2015, from the tax revenue deposited in the
18State Gaming Fund under this Section, $75,000 shall be paid
19annually, subject to appropriation, to a county forest preserve
20district for the maintenance of a botanic garden that was
21created by Section 43 of the Cook County Forest Preserve
22District Act.
23 (b-14) Beginning in the fiscal year following the opening
24of the casino at which gambling operations are conducted
25pursuant to the Chicago Casino Development Authority Act, but
26not before July 1, 2015, from the tax revenue deposited in the

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1State Gaming Fund under this Section, $125,000 shall be
2transferred annually into the Illinois Racing Quarter Horse
3Breeders Fund.
4 (b-15) From January 1, 2015 until December 31, 2017, if the
5total amount paid to the Education Assistance Fund annually
6pursuant to this Act will result in the Education Assistance
7Fund receiving less revenue from the State Gaming Fund than it
8received in calendar year 2011, an amount equal to that
9shortfall shall be transferred from the Capital Projects Fund
10to the Education Assistance Fund, except that no such transfer
11shall exceed the amount deposited into the Capital Projects
12Fund pursuant to subsection (c-4) of this Section.
13 (c) Appropriations, as approved by the General Assembly,
14may be made from the State Gaming Fund to the Board (i) for the
15administration and enforcement of this Act, the Chicago Casino
16Development Authority Act, and the Video Gaming Act, (ii) for
17distribution to the Department of State Police and to the
18Department of Revenue for the enforcement of this Act, the
19Chicago Casino Development Authority Act, and the Video Gaming
20Act, and (iii) to the Department of Human Services for the
21administration of programs to treat problem gambling. The
22Board's annual appropriations request must separately state
23its funding needs for the regulation of electronic gaming,
24riverboat gaming, casino gaming within the City of Chicago, and
25video gaming. From the tax revenue deposited in the Gaming
26Facilities Fee Revenue Fund, the first $50,000,000 shall be

SB1739 Engrossed- 447 -LRB098 10559 AMC 40804 b
1paid to the Board, subject to appropriation, for the
2administration and enforcement of the provisions of this
3amendatory Act of the 98th General Assembly.
4 (c-3) Appropriations, as approved by the General Assembly,
5may be made from the tax revenue deposited into the State
6Gaming Fund from electronic gaming pursuant to this Section for
7the administration and enforcement of this Act.
8 (c-4) After payments required under subsection (b-5), (c),
9and (c-3) have been made from the tax revenue from electronic
10gaming deposited into the State Gaming Fund under this Section,
11all remaining amounts from electronic gaming shall be deposited
12into the Education Assistance Fund.
13 (c-5) Before May 26, 2006 (the effective date of Public Act
1494-804) and beginning on the effective date of this amendatory
15Act of the 95th General Assembly, unless any organization
16licensee under the Illinois Horse Racing Act of 1975 begins to
17operate a slot machine or video game of chance under the
18Illinois Horse Racing Act of 1975 or this Act, after the
19payments required under subsections (b) and (c) have been made,
20an amount equal to 15% of the adjusted gross receipts of (1) an
21owners licensee that relocates pursuant to Section 11.2, (2) an
22owners licensee conducting riverboat gambling operations
23pursuant to an owners license that is initially issued after
24June 25, 1999, or (3) the first riverboat gambling operations
25conducted by a licensed manager on behalf of the State under
26Section 7.3, whichever comes first, shall be paid from the

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

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1conducting riverboat gambling operations pursuant to an owners
2license that is initially issued after June 25, 1999, or (3)
3the first riverboat gambling operations conducted by a licensed
4manager on behalf of the State under Section 7.3, whichever
5comes first, shall be paid from the State Gaming Fund to
6Chicago State University.
7 (d) From time to time, the Board shall transfer the
8remainder of the funds generated by this Act into the Education
9Assistance Fund, created by Public Act 86-0018, of the State of
10Illinois.
11 (e) Nothing in this Act shall prohibit the unit of local
12government designated as the home dock of the riverboat from
13entering into agreements with other units of local government
14in this State or in other states to share its portion of the
15tax revenue.
16 (f) To the extent practicable, the Board shall administer
17and collect the wagering taxes imposed by this Section in a
18manner consistent with the provisions of Sections 4, 5, 5a, 5b,
195c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
20Retailers' Occupation Tax Act and Section 3-7 of the Uniform
21Penalty and Interest Act.
22(Source: P.A. 95-331, eff. 8-21-07; 95-1008, eff. 12-15-08;
2396-37, eff. 7-13-09; 96-1392, eff. 1-1-11.)
24 (230 ILCS 10/14) (from Ch. 120, par. 2414)
25 Sec. 14. Licensees - Records - Reports - Supervision.

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1 (a) Licensed owners and electronic gaming licensees A
2licensed owner shall keep his books and records so as to
3clearly show the following:
4 (1) The amount received daily from admission fees.
5 (2) The total amount of gross receipts.
6 (3) The total amount of the adjusted gross receipts.
7 (b) Licensed owners and electronic gaming licensees The
8licensed owner shall furnish to the Board reports and
9information as the Board may require with respect to its
10activities on forms designed and supplied for such purpose by
11the Board.
12 (c) The books and records kept by a licensed owner as
13provided by this Section are public records and the
14examination, publication, and dissemination of the books and
15records are governed by the provisions of The Freedom of
16Information Act.
17(Source: P.A. 86-1029.)
18 (230 ILCS 10/15) (from Ch. 120, par. 2415)
19 Sec. 15. Audit of Licensee Operations. Annually, the
20licensed owner, or manager, or electronic gaming licensee shall
21transmit to the Board an audit of the financial transactions
22and condition of the licensee's or manager's total operations.
23Additionally, within 90 days after the end of each quarter of
24each fiscal year, the licensed owner, or manager, or electronic
25gaming licensee shall transmit to the Board a compliance report

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1on engagement procedures determined by the Board. All audits
2and compliance engagements shall be conducted by certified
3public accountants selected by the Board. Each certified public
4accountant must be registered in the State of Illinois under
5the Illinois Public Accounting Act. The compensation for each
6certified public accountant shall be paid directly by the
7licensed owner, or manager, or electronic gaming licensee to
8the certified public accountant.
9(Source: P.A. 96-1392, eff. 1-1-11.)
10 (230 ILCS 10/16) (from Ch. 120, par. 2416)
11 Sec. 16. Annual Report of Board. The Board shall make an
12annual report to the Governor, for the period ending December
1331 of each year. Included in the report shall be an account of
14the Board actions, its financial position and results of
15operation under this Act and the Chicago Casino Development
16Authority Act, the practical results attained under this Act
17and the Chicago Casino Development Authority Act and any
18recommendations for legislation which the Board deems
19advisable.
20(Source: P.A. 86-1029.)
21 (230 ILCS 10/17) (from Ch. 120, par. 2417)
22 Sec. 17. Administrative Procedures. The Illinois
23Administrative Procedure Act shall apply to all administrative
24rules and procedures of the Board under this Act, the Chicago

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1Casino Development Authority Act, and or the Video Gaming Act,
2except that: (1) subsection (b) of Section 5-10 of the Illinois
3Administrative Procedure Act does not apply to final orders,
4decisions and opinions of the Board; (2) subsection (a) of
5Section 5-10 of the Illinois Administrative Procedure Act does
6not apply to forms established by the Board for use under this
7Act, the Chicago Casino Development Authority Act, and or the
8Video Gaming Act; (3) the provisions of Section 10-45 of the
9Illinois Administrative Procedure Act regarding proposals for
10decision are excluded under this Act, the Chicago Casino
11Development Authority Act, and or the Video Gaming Act; and (4)
12the provisions of subsection (d) of Section 10-65 of the
13Illinois Administrative Procedure Act do not apply so as to
14prevent summary suspension of any license pending revocation or
15other action, which suspension shall remain in effect unless
16modified by the Board or unless the Board's decision is
17reversed on the merits upon judicial review.
18(Source: P.A. 96-34, eff. 7-13-09.)
19 (230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)
20 Sec. 17.1. Judicial Review.
21 (a) Jurisdiction and venue for the judicial review of a
22final order of the Board relating to licensed owners,
23suppliers, electronic gaming licensees, and or special event
24licenses is vested in the Appellate Court of the judicial
25district in which Sangamon County is located. A petition for

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1judicial review of a final order of the Board must be filed in
2the Appellate Court, within 35 days from the date that a copy
3of the decision sought to be reviewed was served upon the party
4affected by the decision.
5 (b) Judicial review of all other final orders of the Board
6shall be conducted in accordance with the Administrative Review
7Law.
8(Source: P.A. 88-1.)
9 (230 ILCS 10/18) (from Ch. 120, par. 2418)
10 Sec. 18. Prohibited Activities - Penalty.
11 (a) A person is guilty of a Class A misdemeanor for doing
12any of the following:
13 (1) Conducting gambling where wagering is used or to be
14 used without a license issued by the Board.
15 (2) Conducting gambling where wagering is permitted
16 other than in the manner specified by Section 11.
17 (b) A person is guilty of a Class B misdemeanor for doing
18any of the following:
19 (1) permitting a person under 21 years to make a wager;
20 or
21 (2) violating paragraph (12) of subsection (a) of
22 Section 11 of this Act.
23 (c) A person wagering or accepting a wager at any location
24outside the riverboat, casino, or electronic gaming facility in
25violation of paragraph is subject to the penalties in

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1paragraphs (1) or (2) of subsection (a) of Section 28-1 of the
2Criminal Code of 2012 is subject to the penalties provided in
3that Section.
4 (d) A person commits a Class 4 felony and, in addition,
5shall be barred for life from gambling operations riverboats
6under the jurisdiction of the Board, if the person does any of
7the following:
8 (1) Offers, promises, or gives anything of value or
9 benefit to a person who is connected with a riverboat or
10 casino owner or electronic gaming licensee, including, but
11 not limited to, an officer or employee of a licensed owner,
12 electronic gaming licensee, or holder of an occupational
13 license pursuant to an agreement or arrangement or with the
14 intent that the promise or thing of value or benefit will
15 influence the actions of the person to whom the offer,
16 promise, or gift was made in order to affect or attempt to
17 affect the outcome of a gambling game, or to influence
18 official action of a member of the Board.
19 (2) Solicits or knowingly accepts or receives a promise
20 of anything of value or benefit while the person is
21 connected with a riverboat, casino, or electronic gaming
22 facility, including, but not limited to, an officer or
23 employee of a licensed owner or electronic gaming licensee,
24 or the holder of an occupational license, pursuant to an
25 understanding or arrangement or with the intent that the
26 promise or thing of value or benefit will influence the

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1 actions of the person to affect or attempt to affect the
2 outcome of a gambling game, or to influence official action
3 of a member of the Board.
4 (3) Uses or possesses with the intent to use a device
5 to assist:
6 (i) In projecting the outcome of the game.
7 (ii) In keeping track of the cards played.
8 (iii) In analyzing the probability of the
9 occurrence of an event relating to the gambling game.
10 (iv) In analyzing the strategy for playing or
11 betting to be used in the game except as permitted by
12 the Board.
13 (4) Cheats at a gambling game.
14 (5) Manufactures, sells, or distributes any cards,
15 chips, dice, game or device which is intended to be used to
16 violate any provision of this Act or the Chicago Casino
17 Development Authority Act.
18 (6) Alters or misrepresents the outcome of a gambling
19 game on which wagers have been made after the outcome is
20 made sure but before it is revealed to the players.
21 (7) Places a bet after acquiring knowledge, not
22 available to all players, of the outcome of the gambling
23 game which is subject of the bet or to aid a person in
24 acquiring the knowledge for the purpose of placing a bet
25 contingent on that outcome.
26 (8) Claims, collects, or takes, or attempts to claim,

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1 collect, or take, money or anything of value in or from the
2 gambling games, with intent to defraud, without having made
3 a wager contingent on winning a gambling game, or claims,
4 collects, or takes an amount of money or thing of value of
5 greater value than the amount won.
6 (9) Uses counterfeit chips or tokens in a gambling
7 game.
8 (10) Possesses any key or device designed for the
9 purpose of opening, entering, or affecting the operation of
10 a gambling game, drop box, or an electronic or mechanical
11 device connected with the gambling game or for removing
12 coins, tokens, chips or other contents of a gambling game.
13 This paragraph (10) does not apply to a gambling licensee
14 or employee of a gambling licensee acting in furtherance of
15 the employee's employment.
16 (e) The possession of more than one of the devices
17described in subsection (d), paragraphs (3), (5), or (10)
18permits a rebuttable presumption that the possessor intended to
19use the devices for cheating.
20 (f) A person under the age of 21 who, except as authorized
21under paragraph (10) of Section 11, enters upon a riverboat or
22in a casino or electronic gaming facility commits a petty
23offense and is subject to a fine of not less than $100 or more
24than $250 for a first offense and of not less than $200 or more
25than $500 for a second or subsequent offense.
26 An action to prosecute any crime occurring on a riverboat

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1shall be tried in the county of the dock at which the riverboat
2is based. An action to prosecute any crime occurring in a
3casino or electronic gaming facility shall be tried in the
4county in which the casino or electronic gaming facility is
5located.
6(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
7 (230 ILCS 10/18.1)
8 Sec. 18.1. Distribution of certain fines. If a fine is
9imposed on an owner licensee or an electronic gaming licensee
10for knowingly sending marketing or promotional materials to any
11person placed on the self-exclusion list, then the Board shall
12distribute an amount equal to 15% of the fine imposed to the
13unit of local government in which the casino, riverboat, or
14electronic gaming facility is located for the purpose of
15awarding grants to non-profit entities that assist gambling
16addicts.
17(Source: P.A. 96-224, eff. 8-11-09.)
18 (230 ILCS 10/18.2 new)
19 Sec. 18.2. Prohibition on 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

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

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1such other campaign contribution prohibitions.
2 (b) As used in this Section:
3 "Affiliated entity" means (i) any corporate parent and each
4operating subsidiary of the business entity applying for or
5holding a license, (ii) each operating subsidiary of the
6corporate parent of the business entity applying for or holding
7a license, (iii) any organization recognized by the United
8States Internal Revenue Service as a tax-exempt organization
9described in Section 501(c) of the Internal Revenue Code of
101986 (or any successor provision of federal tax law)
11established by one or more business entities seeking or holding
12a license, any affiliated entity of such business entity, or
13any affiliated person of such business entity, and (iv) any
14political committee for which the business entity applying for
15or holding a license, or any 501(c) organization described in
16item (iii) related to that business entity, is the sponsoring
17entity, as defined in Section 9-3 of the Election Code. For
18purposes of item (iv), the funding of all business entities
19applying for or holding a license shall be aggregated in
20determining whether such political committee is an affiliated
21entity.
22 "Affiliated person" means (i) any person with any ownership
23interest or distributive share in excess of 7.5% of any
24business entity applying for or holding a license, (ii)
25executive employees of any such business entity, (iii) any
26person designated as a key person under this Act, and (iv) the

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1spouse of such persons.
2 "Contribution" means a contribution as defined in Section
39-1.4 of the Election Code.
4 "Declared candidate" means a person who has filed a
5statement of candidacy and petition for nomination or election
6in the principal office of the State Board of Elections, or in
7the office of the appropriate election authority for any county
8or municipality in which a casino or electronic gaming device
9is located or proposed or which receives any gaming revenue.
10 "Executive employee" means any person who is (i) an officer
11or director or who fulfills duties equivalent to those of an
12officer or director of a business entity applying for or
13holding a license and (ii) any employee of such business entity
14who is required to register under the Lobbyist Registration
15Act.
16 "License" means any owner, electronic gaming, or manager
17license issued pursuant to this Act.
18 "Officeholder" means the Governor, Lieutenant Governor,
19Attorney General, Secretary of State, Comptroller, Treasurer,
20member of the General Assembly, or any officeholder in any
21county or municipality in which a riverboat, casino, or
22electronic gaming device is located or proposed or which
23receives any gaming revenue.
24 "Business entity" means any entity doing business for
25profit, whether organized as a corporation, partnership, sole
26proprietorship, limited liability company, or partnership or

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

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1this subsection (c) shall be deposited into the General Revenue
2Fund.
3 (d) The Board shall post on its website a list of all
4persons, business entities, and affiliated entities prohibited
5from making contributions to any officeholder or declared
6candidate political committee pursuant to subsection (c),
7which list shall be updated and published on, at a minimum, a
8semiannual basis.
9 Any person, business entity, or affiliated entity
10prohibited from making contributions to any officeholder or
11declared candidate political committee pursuant to subsection
12(c) shall notify the Board within 7 days after discovering any
13necessary change or addition to the information relating to
14that person, business entity, or affiliated entity contained in
15the list.
16 An individual who acts in good faith and in reliance on any
17information contained in the list shall not be subject to any
18penalties or liability imposed for a violation of this Section.
19 (e) If any provision of this Section is held invalid or its
20application to any person or circumstance is held invalid, the
21invalidity of that provision or application does not affect the
22other provisions or applications of this Section that can be
23given effect without the invalid application or provision.
24 (230 ILCS 10/19) (from Ch. 120, par. 2419)
25 Sec. 19. Forfeiture of property.

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1 (a) Except as provided in subsection (b), any riverboat,
2casino, or electronic gaming facility used for the conduct of
3gambling games in violation of this Act shall be considered a
4gambling place in violation of Section 28-3 of the Criminal
5Code of 2012. Every gambling device found on a riverboat, in a
6casino, or at an electronic gaming facility operating gambling
7games in violation of this Act and every slot machine and video
8game of chance found at an electronic gaming facility operating
9gambling games in violation of this Act or the Chicago Casino
10Development Authority Act shall be subject to seizure,
11confiscation and destruction as provided in Section 28-5 of the
12Criminal Code of 2012.
13 (b) It is not a violation of this Act for a riverboat or
14other watercraft which is licensed for gaming by a contiguous
15state to dock on the shores of this State if the municipality
16having jurisdiction 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. No gambling device
20shall be subject to seizure, confiscation or destruction if the
21gambling device is located on a riverboat or other watercraft
22which is licensed for gaming by a contiguous state and which is
23docked on the shores of this State if the municipality having
24jurisdiction of the shores, or the county in the case of
25unincorporated areas, has granted permission for docking and no
26gaming is conducted on the riverboat or other watercraft while

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1it is docked on the shores of this State.
2(Source: P.A. 97-1150, eff. 1-25-13.)
3 (230 ILCS 10/20) (from Ch. 120, par. 2420)
4 Sec. 20. Prohibited activities - civil penalties. Any
5person who conducts a gambling operation without first
6obtaining a license to do so, or who continues to conduct such
7games after revocation of his license, or any licensee who
8conducts or allows to be conducted any unauthorized gambling
9games on a riverboat, in a casino, or at an electronic gaming
10facility where it is authorized to conduct its riverboat
11gambling operation, in addition to other penalties provided,
12shall be subject to a civil penalty equal to the amount of
13gross receipts derived from wagering on the gambling games,
14whether unauthorized or authorized, conducted on that day as
15well as confiscation and forfeiture of all gambling game
16equipment used in the conduct of unauthorized gambling games.
17(Source: P.A. 86-1029.)
18 (230 ILCS 10/21) (from Ch. 120, par. 2421)
19 Sec. 21. Limitation on taxation of licensees. Licensees
20shall not be subjected to any excise tax, license tax, permit
21tax, privilege tax, occupation tax or excursion tax which is
22imposed exclusively upon the licensee by the State or any
23political subdivision thereof, except as provided in this Act
24or the Chicago Casino Development Authority Act.

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1(Source: P.A. 86-1029.)
2 (230 ILCS 10/23) (from Ch. 120, par. 2423)
3 Sec. 23. The State Gaming Fund. On or after the effective
4date of this Act, except as provided for payments into the
5Horse Racing Equity Trust Fund under subsection (a) of Section
67, all of the fees and taxes collected pursuant to this Act or
7the Chicago Casino Development Authority Act shall be deposited
8into the State Gaming Fund, a special fund in the State
9Treasury, which is hereby created. The adjusted gross receipts
10of any riverboat gambling operations conducted by a licensed
11manager on behalf of the State remaining after the payment of
12the fees and expenses of the licensed manager shall be
13deposited into the State Gaming Fund. Fines and penalties
14collected pursuant to this Act or the Chicago Casino
15Development Authority Act shall be deposited into the Education
16Assistance Fund, created by Public Act 86-0018, of the State of
17Illinois.
18(Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)
19 (230 ILCS 10/24)
20 Sec. 24. Applicability of this Illinois Riverboat Gambling
21Act. The provisions of the this Illinois Riverboat Gambling
22Act, and all rules promulgated thereunder, shall apply to the
23the Chicago Casino Development Authority Act and the Video
24Gaming Act, except where there is a conflict between the 2

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1Acts. In the event of a conflict between this Act and the
2Chicago Casino Development Authority Act, the terms of the
3Chicago Casino Development Authority Act shall prevail. In the
4event of a conflict between this Act and the Video Gaming Act,
5the terms of this Act shall prevail.
6(Source: P.A. 96-37, eff. 7-13-09.)
7 Section 90-42. The Video Gaming Act is amended by changing
8Sections 5, 25, 45, 79, and 80 and by adding Section 81 as
9follows:
10 (230 ILCS 40/5)
11 Sec. 5. Definitions. As used in this Act:
12 "Board" means the Illinois Gaming Board.
13 "Credit" means one, 5, 10, or 25 cents either won or
14purchased by a player.
15 "Distributor" means an individual, partnership,
16corporation, or limited liability company licensed under this
17Act to buy, sell, lease, or distribute video gaming terminals
18or major components or parts of video gaming terminals to or
19from terminal operators.
20 "Terminal operator" means an individual, partnership,
21corporation, or limited liability company that is licensed
22under this Act and that owns, services, and maintains video
23gaming terminals for placement in licensed establishments,
24licensed truck stop establishments, licensed fraternal

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1establishments, or licensed veterans establishments.
2 "Licensed technician" means an individual who is licensed
3under this Act to repair, service, and maintain video gaming
4terminals.
5 "Licensed terminal handler" means a person, including but
6not limited to an employee or independent contractor working
7for a manufacturer, distributor, supplier, technician, or
8terminal operator, who is licensed under this Act to possess or
9control a video gaming terminal or to have access to the inner
10workings of a video gaming terminal. A licensed terminal
11handler does not include an individual, partnership,
12corporation, or limited liability company defined as a
13manufacturer, distributor, supplier, technician, or terminal
14operator under this Act.
15 "Manufacturer" means an individual, partnership,
16corporation, or limited liability company that is licensed
17under this Act and that manufactures or assembles video gaming
18terminals.
19 "Supplier" means an individual, partnership, corporation,
20or limited liability company that is licensed under this Act to
21supply major components or parts to video gaming terminals to
22licensed terminal operators.
23 "Net terminal income" means money put into a video gaming
24terminal minus credits paid out to players.
25 "Video gaming terminal" means any electronic video game
26machine that, upon insertion of cash, is available to play or

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1simulate the play of a video game, including but not limited to
2video poker, line up, and blackjack, as authorized by the Board
3utilizing a video display and microprocessors in which the
4player may receive free games or credits that can be redeemed
5for cash. The term does not include a machine that directly
6dispenses coins, cash, or tokens or is for amusement purposes
7only.
8 "Licensed establishment" means any licensed retail
9establishment where alcoholic liquor is drawn, poured, mixed,
10or otherwise served for consumption on the premises and
11includes any such establishment that has a contractual
12relationship with an inter-track wagering location licensee
13licensed under the Illinois Horse Racing Act of 1975, provided
14any contractual relationship shall not include any transfer or
15offer of revenue from the operation of video gaming under this
16Act to any licensee licensed under the Illinois Horse Racing
17Act of 1975. Provided, however, that the licensed establishment
18that has such a contractual relationship with an inter-track
19wagering location licensee may not, itself, be (i) an
20inter-track wagering location licensee, (ii) the corporate
21parent or subsidiary of any licensee licensed under the
22Illinois Horse Racing Act of 1975, or (iii) the corporate
23subsidiary of a corporation that is also the corporate parent
24or subsidiary of any licensee licensed under the Illinois Horse
25Racing Act of 1975. "Licensed establishment" does not include a
26facility operated by an organization licensee, an inter-track

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1wagering licensee, or an inter-track wagering location
2licensee licensed under the Illinois Horse Racing Act of 1975
3or a riverboat licensed under the Illinois Riverboat Gambling
4Act, except as provided in this paragraph.
5 "Licensed fraternal establishment" means the location
6where a qualified fraternal organization that derives its
7charter from a national fraternal organization regularly
8meets.
9 "Licensed veterans establishment" means the location where
10a qualified veterans organization that derives its charter from
11a national veterans organization regularly meets.
12 "Licensed truck stop establishment" means a facility (i)
13that is at least a 3-acre facility with a convenience store,
14(ii) with separate diesel islands for fueling commercial motor
15vehicles, (iii) that sells at retail more than 10,000 gallons
16of diesel or biodiesel fuel per month, and (iv) with parking
17spaces for commercial motor vehicles. "Commercial motor
18vehicles" has the same meaning as defined in Section 18b-101 of
19the Illinois Vehicle Code. The requirement of item (iii) of
20this paragraph may be met by showing that estimated future
21sales or past sales average at least 10,000 gallons per month.
22(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
2396-1410, eff. 7-30-10; 96-1479, eff. 8-23-10; 97-333, eff.
248-12-11.)
25 (230 ILCS 40/25)

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1 Sec. 25. Restriction of licensees.
2 (a) Manufacturer. A person may not be licensed as a
3manufacturer of a video gaming terminal in Illinois unless the
4person has a valid manufacturer's license issued under this
5Act. A manufacturer may only sell video gaming terminals for
6use in Illinois to persons having a valid distributor's
7license.
8 (b) Distributor. A person may not sell, distribute, or
9lease or market a video gaming terminal in Illinois unless the
10person has a valid distributor's license issued under this Act.
11A distributor may only sell video gaming terminals for use in
12Illinois to persons having a valid distributor's or terminal
13operator's license.
14 (c) Terminal operator. A person may not own, maintain, or
15place a video gaming terminal unless he has a valid terminal
16operator's license issued under this Act. A terminal operator
17may only place video gaming terminals for use in Illinois in
18licensed establishments, licensed truck stop establishments,
19licensed fraternal establishments, and licensed veterans
20establishments. No terminal operator may give anything of
21value, including but not limited to a loan or financing
22arrangement, to a licensed establishment, licensed truck stop
23establishment, licensed fraternal establishment, or licensed
24veterans establishment as any incentive or inducement to locate
25video terminals in that establishment. Of the after-tax profits
26from a video gaming terminal, 50% shall be paid to the terminal

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1operator and 50% shall be paid to the licensed establishment,
2licensed truck stop establishment, licensed fraternal
3establishment, or licensed veterans establishment,
4notwithstanding any agreement to the contrary. A video terminal
5operator that violates one or more requirements of this
6subsection is guilty of a Class 4 felony and is subject to
7termination of his or her license by the Board.
8 (d) Licensed technician. A person may not service,
9maintain, or repair a video gaming terminal in this State
10unless he or she (1) has a valid technician's license issued
11under this Act, (2) is a terminal operator, or (3) is employed
12by a terminal operator, distributor, or manufacturer.
13 (d-5) Licensed terminal handler. No person, including, but
14not limited to, an employee or independent contractor working
15for a manufacturer, distributor, supplier, technician, or
16terminal operator licensed pursuant to this Act, shall have
17possession or control of a video gaming terminal, or access to
18the inner workings of a video gaming terminal, unless that
19person possesses a valid terminal handler's license issued
20under this Act.
21 (e) Licensed establishment. No video gaming terminal may be
22placed in any licensed establishment, licensed veterans
23establishment, licensed truck stop establishment, or licensed
24fraternal establishment unless the owner or agent of the owner
25of the licensed establishment, licensed veterans
26establishment, licensed truck stop establishment, or licensed

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1fraternal establishment has entered into a written use
2agreement with the terminal operator for placement of the
3terminals. A copy of the use agreement shall be on file in the
4terminal operator's place of business and available for
5inspection by individuals authorized by the Board. A licensed
6establishment, licensed truck stop establishment, licensed
7veterans establishment, or licensed fraternal establishment
8may operate up to 5 video gaming terminals on its premises at
9any time.
10 (f) (Blank).
11 (g) Financial interest restrictions. As used in this Act,
12"substantial interest" in a partnership, a corporation, an
13organization, an association, a business, or a limited
14liability company means:
15 (A) When, with respect to a sole proprietorship, an
16 individual or his or her spouse owns, operates, manages, or
17 conducts, directly or indirectly, the organization,
18 association, or business, or any part thereof; or
19 (B) When, with respect to a partnership, the individual
20 or his or her spouse shares in any of the profits, or
21 potential profits, of the partnership activities; or
22 (C) When, with respect to a corporation, an individual
23 or his or her spouse is an officer or director, or the
24 individual or his or her spouse is a holder, directly or
25 beneficially, of 5% or more of any class of stock of the
26 corporation; or

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1 (D) When, with respect to an organization not covered
2 in (A), (B) or (C) above, an individual or his or her
3 spouse is an officer or manages the business affairs, or
4 the individual or his or her spouse is the owner of or
5 otherwise controls 10% or more of the assets of the
6 organization; or
7 (E) When an individual or his or her spouse furnishes
8 5% or more of the capital, whether in cash, goods, or
9 services, for the operation of any business, association,
10 or organization during any calendar year; or
11 (F) When, with respect to a limited liability company,
12 an individual or his or her spouse is a member, or the
13 individual or his or her spouse is a holder, directly or
14 beneficially, of 5% or more of the membership interest of
15 the limited liability company.
16 For purposes of this subsection (g), "individual" includes
17all individuals or their spouses whose combined interest would
18qualify as a substantial interest under this subsection (g) and
19whose activities with respect to an organization, association,
20or business are so closely aligned or coordinated as to
21constitute the activities of a single entity.
22 (h) Location restriction. A licensed establishment,
23licensed truck stop establishment, licensed fraternal
24establishment, or licensed veterans establishment that is (i)
25located within 1,000 feet of a facility operated by an
26organization licensee or an inter-track wagering licensee

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1licensed under the Illinois Horse Racing Act of 1975 or the
2home dock of a riverboat licensed under the Illinois Riverboat
3Gambling Act or (ii) located within 100 feet of a school or a
4place of worship under the Religious Corporation Act, is
5ineligible to operate a video gaming terminal. The location
6restrictions in this subsection (h) do not apply if a facility
7operated by an organization licensee, an inter-track wagering
8licensee, or an inter-track wagering location licensee, a
9school, or a place of worship moves to or is established within
10the restricted area after a licensed establishment, licensed
11truck stop establishment, licensed fraternal establishment, or
12licensed veterans establishment becomes licensed under this
13Act. For the purpose of this subsection, "school" means an
14elementary or secondary public school, or an elementary or
15secondary private school registered with or recognized by the
16State Board of Education.
17 Notwithstanding the provisions of this subsection (h), the
18Board may waive the requirement that a licensed establishment,
19licensed truck stop establishment, licensed fraternal
20establishment, or licensed veterans establishment not be
21located within 1,000 feet from a facility operated by an
22organization licensee, an inter-track wagering licensee, or an
23inter-track wagering location licensee licensed under the
24Illinois Horse Racing Act of 1975 or the home dock of a
25riverboat licensed under the Illinois Riverboat Gambling Act.
26The Board shall not grant such waiver if there is any common

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1ownership or control, shared business activity, or contractual
2arrangement of any type between the establishment and the
3organization licensee, inter-track wagering licensee,
4inter-track wagering location licensee, or owners licensee of a
5riverboat. The Board shall adopt rules to implement the
6provisions of this paragraph.
7 (i) Undue economic concentration. In addition to
8considering all other requirements under this Act, in deciding
9whether to approve the operation of video gaming terminals by a
10terminal operator in a location, the Board shall consider the
11impact of any economic concentration of such operation of video
12gaming terminals. The Board shall not allow a terminal operator
13to operate video gaming terminals if the Board determines such
14operation will result in undue economic concentration. For
15purposes of this Section, "undue economic concentration" means
16that a terminal operator would have such actual or potential
17influence over video gaming terminals in Illinois as to:
18 (1) substantially impede or suppress competition among
19 terminal operators;
20 (2) adversely impact the economic stability of the
21 video gaming industry in Illinois; or
22 (3) negatively impact the purposes of the Video Gaming
23 Act.
24 The Board shall adopt rules concerning undue economic
25concentration with respect to the operation of video gaming
26terminals in Illinois. The rules shall include, but not be

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1limited to, (i) limitations on the number of video gaming
2terminals operated by any terminal operator within a defined
3geographic radius and (ii) guidelines on the discontinuation of
4operation of any such video gaming terminals the Board
5determines will cause undue economic concentration.
6 (j) The provisions of the Illinois Antitrust Act are fully
7and equally applicable to the activities of any licensee under
8this Act.
9(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
10eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10;
1196-1479, eff. 8-23-10; 97-333, eff. 8-12-11.)
12 (230 ILCS 40/45)
13 Sec. 45. Issuance of license.
14 (a) The burden is upon each applicant to demonstrate his
15suitability for licensure. Each video gaming terminal
16manufacturer, distributor, supplier, operator, handler,
17licensed establishment, licensed truck stop establishment,
18licensed fraternal establishment, and licensed veterans
19establishment shall be licensed by the Board. The Board may
20issue or deny a license under this Act to any person pursuant
21to the same criteria set forth in Section 9 of the Illinois
22Riverboat Gambling Act.
23 (a-5) The Board shall not grant a license to a person who
24has facilitated, enabled, or participated in the use of
25coin-operated devices for gambling purposes or who is under the

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1significant influence or control of such a person. For the
2purposes of this Act, "facilitated, enabled, or participated in
3the use of coin-operated amusement devices for gambling
4purposes" means that the person has been convicted of any
5violation of Article 28 of the Criminal Code of 1961 or the
6Criminal Code of 2012. If there is pending legal action against
7a person for any such violation, then the Board shall delay the
8licensure of that person until the legal action is resolved.
9 (b) Each person seeking and possessing a license as a video
10gaming terminal manufacturer, distributor, supplier, operator,
11handler, licensed establishment, licensed truck stop
12establishment, licensed fraternal establishment, or licensed
13veterans establishment shall submit to a background
14investigation conducted by the Board with the assistance of the
15State Police or other law enforcement. The background
16investigation shall include each beneficiary of a trust, each
17partner of a partnership, and each director and officer and all
18stockholders of 5% or more in a parent or subsidiary
19corporation of a video gaming terminal manufacturer,
20distributor, supplier, operator, or licensed establishment,
21licensed truck stop establishment, licensed fraternal
22establishment, or licensed veterans establishment.
23 (c) Each person seeking and possessing a license as a video
24gaming terminal manufacturer, distributor, supplier, operator,
25handler, licensed establishment, licensed truck stop
26establishment, licensed fraternal establishment, or licensed

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1veterans establishment shall disclose the identity of every
2person, association, trust, corporation, or limited liability
3company having a greater than 1% direct or indirect pecuniary
4interest in the video gaming terminal operation for which the
5license is sought. If the disclosed entity is a trust, the
6application shall disclose the names and addresses of the
7beneficiaries; if a corporation, the names and addresses of all
8stockholders and directors; if a limited liability company, the
9names and addresses of all members; or if a partnership, the
10names and addresses of all partners, both general and limited.
11 (d) No person may be licensed as a video gaming terminal
12manufacturer, distributor, supplier, operator, handler,
13licensed establishment, licensed truck stop establishment,
14licensed fraternal establishment, or licensed veterans
15establishment if that person has been found by the Board to:
16 (1) have a background, including a criminal record,
17 reputation, habits, social or business associations, or
18 prior activities that pose a threat to the public interests
19 of the State or to the security and integrity of video
20 gaming;
21 (2) create or enhance the dangers of unsuitable,
22 unfair, or illegal practices, methods, and activities in
23 the conduct of video gaming; or
24 (3) present questionable business practices and
25 financial arrangements incidental to the conduct of video
26 gaming activities.

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1 (e) Any applicant for any license under this Act has the
2burden of proving his or her qualifications to the satisfaction
3of the Board. The Board may adopt rules to establish additional
4qualifications and requirements to preserve the integrity and
5security of video gaming in this State.
6 (f) A non-refundable application fee shall be paid at the
7time an application for a license is filed with the Board in
8the following amounts:
9 (1) Manufacturer..........................$5,000
10 (2) Distributor...........................$5,000
11 (3) Terminal operator.....................$5,000
12 (4) Supplier..............................$2,500
13 (5) Technician..............................$100
14 (6) Terminal Handler..............................$50
15 (g) The Board shall establish an annual fee for each
16license not to exceed the following:
17 (1) Manufacturer.........................$10,000
18 (2) Distributor..........................$10,000
19 (3) Terminal operator.....................$5,000
20 (4) Supplier..............................$2,000
21 (5) Technician..............................$100
22 (6) Licensed establishment, licensed truck stop
23 establishment, licensed fraternal establishment,
24 or licensed veterans establishment..............$100
25 (7) Video gaming terminal...................$100
26 (8) Terminal Handler..............................$50

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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;
397-1150, eff. 1-25-13.)
4 (230 ILCS 40/79)
5 Sec. 79. Investigators. Investigators appointed by the
6Board pursuant to the powers conferred upon the Board by
7paragraph (20.6) of subsection (c) of Section 5 of the Illinois
8Riverboat Gambling Act and Section 80 of this Act shall have
9authority to conduct investigations, searches, seizures,
10arrests, and other duties imposed under this Act and the
11Illinois Riverboat Gambling Act, as deemed necessary by the
12Board. These investigators have and may exercise all of the
13rights and powers of peace officers, provided that these powers
14shall be (1) limited to offenses or violations occurring or
15committed in connection with conduct subject to this Act,
16including, but not limited to, the manufacture, distribution,
17supply, operation, placement, service, maintenance, or play of
18video gaming terminals and the distribution of profits and
19collection of revenues resulting from such play, and (2)
20exercised, to the fullest extent practicable, in cooperation
21with the local police department of the applicable municipality
22or, if these powers are exercised outside the boundaries of an
23incorporated municipality or within a municipality that does
24not have its own police department, in cooperation with the
25police department whose jurisdiction encompasses the

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1applicable locality.
2(Source: P.A. 97-809, eff. 7-13-12.)
3 (230 ILCS 40/80)
4 Sec. 80. Applicability of Illinois Riverboat Gambling Act.
5The provisions of the Illinois Riverboat Gambling Act, and all
6rules promulgated thereunder, shall apply to the Video Gaming
7Act, except where there is a conflict between the 2 Acts. In
8the event of a conflict between the 2 Acts, the provisions of
9the Illinois Gambling Act shall prevail. All provisions of the
10Uniform Penalty and Interest Act shall apply, as far as
11practicable, to the subject matter of this Act to the same
12extent as if such provisions were included herein.
13(Source: P.A. 96-37, eff. 7-13-09.)
14 (230 ILCS 40/81 new)
15 Sec. 81. Prohibition of political contributions from
16certain licensees and applicants.
17 (a) The General Assembly has a compelling interest in
18protecting the integrity of both the electoral process and the
19legislative process by preventing corruption and the
20appearance of corruption which may arise through permitting
21certain political campaign contributions by certain persons
22involved in the gaming industry and regulated by the State.
23Unlike most other regulated industries, gaming is especially
24susceptible to corruption and potential criminal influence.

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1 In Illinois, only licensed gaming activities are legal and
2all other gaming activities are strictly prohibited. Given
3these circumstances, it is imperative to eliminate any
4potential corrupt influence in the gaming industry and the
5electoral process. Banning political campaign contributions by
6certain persons subject to this Section to State officeholders
7and candidates for such offices and, where necessary, to county
8and municipal officeholders and candidates for such offices in
9counties and municipalities that receive financial benefits
10from gaming activities is necessary to prevent corruption and
11the appearance of corruption that may arise when political
12campaign contributions and gaming that is regulated by the
13State and that confers benefits on counties and municipalities
14are intermingled.
15 (b) As used in this Section:
16 "Affiliated entity" means (i) any corporate parent and each
17operating subsidiary of the business entity applying for or
18holding a license, (ii) each operating subsidiary of the
19corporate parent of the business entity applying for or holding
20a license, (iii) any organization recognized by the United
21States Internal Revenue Service as a tax-exempt organization
22described in Section 501(c) of the Internal Revenue Code of
231986 (or any successor provision of federal tax law)
24established by one or more business entities seeking or holding
25a license, any affiliated entity of such business entity, or
26any affiliated person of such business entity, and (iv) any

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1political committee for which the business entity applying for
2or holding a license, or any 501(c) organization described in
3item (iii) related to that business entity, is the sponsoring
4entity, as defined in Section 9-3 of the Election Code. For
5purposes of item (iv), the funding of all business entities
6applying for or holding a license shall be aggregated in
7determining whether such political committee is an affiliated
8entity.
9 "Affiliated person" means (i) any person with any ownership
10interest or distributive share in excess of 7.5% of any
11business entity applying for or holding a license, (ii)
12executive employees of any such business entity, (iii) any
13person designated as a person of significant influence and
14control under the Video Gaming Act, and (iv) the spouse of such
15persons.
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 "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 video gaming terminal is located or

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1proposed or which receives any video gaming revenue, for the
2office of Governor, Lieutenant Governor, Attorney General,
3Secretary of State, Comptroller, Treasurer, member of the
4General Assembly, chief executive or any member of the
5legislative body of any municipality in which a video gaming
6terminal is located or proposed or which receives any video
7gaming revenue, or chief executive or any member of the
8legislative body of any county containing any unincorporated
9area in which a video gaming terminal is located or which
10receives any video gaming revenue.
11 "Executive employee" means any person who is an officer or
12director or who fulfills duties equivalent to those of an
13officer or director of a business entity applying for or
14holding a license; and (ii) any employee of such business
15entity who is required to register under the Lobbyist
16Registration Act.
17 "License" means any license issued pursuant to this Act.
18 "Officeholder" means the Governor, the Lieutenant
19Governor, the Attorney General, the Secretary of State, the
20Comptroller, the Treasurer, a member of the General Assembly,
21the chief executive or any member of the legislative body of
22any municipality in which a video gaming terminal is located or
23proposed or which receives any video gaming revenue, or the
24chief executive or any member of the legislative body of any
25county containing any unincorporated area in which a video
26gaming terminal is located or which receives any video gaming

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1revenue.
2 (c) Any person or business entity applying for or holding a
3manufacturer or distributor license, any affiliated entities
4or persons of such business entity, and any entities or persons
5soliciting a contribution or causing a contribution to be made
6on behalf of such person or business entity, are prohibited
7from making any contribution to any officeholder or declared
8candidate or any political committee affiliated with any
9officeholder or declared candidate, as defined in Section 9-1.8
10of the Election Code.
11 The Board shall have authority to suspend, revoke, or
12restrict the license and to impose civil penalties of up to
13$100,000, for each violation of this subsection (c). A notice
14of each such violation and the penalty imposed shall be
15published on the Board's website and in the Illinois Register.
16Payments received by the State pursuant to this subsection
17shall be deposited into the General Revenue Fund.
18 Any person or business entity applying for or holding a
19terminal operator license, any affiliated entities or persons
20of such business entity, and any entities or persons soliciting
21a contribution or causing a contribution to be made on behalf
22of such person or business entity, are prohibited from making
23any contribution to any officeholder or declared candidate or
24any political committee affiliated with any officeholder or
25declared candidate, as defined in Section 9-1.8 of the Election
26Code, except that any such person or entity may make a

SB1739 Engrossed- 486 -LRB098 10559 AMC 40804 b
1contribution to the chief executive or any member of the
2legislative body of any municipality in which a video gaming
3terminal is located or proposed or which receives any video
4gaming revenue, the chief executive or any member of the
5legislative body of any county containing any unincorporated
6area in which a video gaming terminal is located or which
7receives any video gaming revenue, or any declared candidates
8for such offices, so long as the video gaming terminal
9associated with the terminal operator license held or applied
10for is not located in the same municipality or county in which
11the officeholder or declared candidate holds or is seeking
12office. This prohibition shall commence upon filing of an
13application for a license and shall continue for a period of 2
14years after termination, suspension, or revocation of the
15license.
16 Any officeholder or declared candidate or any political
17committee affiliated with any officeholder or declared
18candidate that has received a contribution in violation of this
19subsection (c) shall pay an amount equal to the value of the
20contribution to the State no more than 30 days after notice of
21the violation concerning the contribution appears in the
22Illinois Register. Payments received by the State pursuant to
23this subsection shall be deposited into the General Revenue
24Fund.
25 (d) The Board shall post on its website a list of all
26persons, business entities, and affiliated entities prohibited

SB1739 Engrossed- 487 -LRB098 10559 AMC 40804 b
1from making contributions to any officeholder or declared
2candidate political committee pursuant to subsection (c),
3which list shall be updated and published on, at a minimum, a
4semiannual basis.
5 Any person, business entity, or affiliated entity
6prohibited from making contributions to any officeholder or
7declared candidate political committee pursuant to subsection
8(c) of this Section shall notify the Board within 7 days after
9discovering any necessary change or addition to the information
10relating to that person, business entity, or affiliated entity
11contained in the list.
12 An individual who acts in good faith and in reliance on any
13information contained in the list shall not be subject to any
14penalties or liability imposed for a violation of this Section.
15 (e) If any provision of this Section is held invalid or its
16application to any person or circumstance is held invalid, the
17invalidity of that provision or application does not affect the
18other provisions or applications of this Section that can be
19given effect without the invalid application or provision.
20 Section 90-45. The Liquor Control Act of 1934 is amended by
21changing Sections 5-1 and 6-30 as follows:
22 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
23 Sec. 5-1. Licenses issued by the Illinois Liquor Control
24Commission shall be of the following classes:

SB1739 Engrossed- 488 -LRB098 10559 AMC 40804 b
1 (a) Manufacturer's license - Class 1. Distiller, Class 2.
2Rectifier, Class 3. Brewer, Class 4. First Class Wine
3Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
4First Class Winemaker, Class 7. Second Class Winemaker, Class
58. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
610. Craft Brewer,
7 (b) Distributor's license,
8 (c) Importing Distributor's license,
9 (d) Retailer's license,
10 (e) Special Event Retailer's license (not-for-profit),
11 (f) Railroad license,
12 (g) Boat license,
13 (h) Non-Beverage User's license,
14 (i) Wine-maker's premises license,
15 (j) Airplane license,
16 (k) Foreign importer's license,
17 (l) Broker's license,
18 (m) Non-resident dealer's license,
19 (n) Brew Pub license,
20 (o) Auction liquor license,
21 (p) Caterer retailer license,
22 (q) Special use permit license,
23 (r) Winery shipper's license.
24 No person, firm, partnership, corporation, or other legal
25business entity that is engaged in the manufacturing of wine
26may concurrently obtain and hold a wine-maker's license and a

SB1739 Engrossed- 489 -LRB098 10559 AMC 40804 b
1wine manufacturer's license.
2 (a) A manufacturer's license shall allow the manufacture,
3importation in bulk, storage, distribution and sale of
4alcoholic liquor to persons without the State, as may be
5permitted by law and to licensees in this State as follows:
6 Class 1. A Distiller may make sales and deliveries of
7alcoholic liquor to distillers, rectifiers, importing
8distributors, distributors and non-beverage users and to no
9other licensees.
10 Class 2. A Rectifier, who is not a distiller, as defined
11herein, may make sales and deliveries of alcoholic liquor to
12rectifiers, importing distributors, distributors, retailers
13and non-beverage users and to no other licensees.
14 Class 3. A Brewer may make sales and deliveries of beer to
15importing distributors and distributors and may make sales as
16authorized under subsection (e) of Section 6-4 of this Act.
17 Class 4. A first class wine-manufacturer may make sales and
18deliveries of up to 50,000 gallons of wine to manufacturers,
19importing distributors and distributors, and to no other
20licensees.
21 Class 5. A second class Wine manufacturer may make sales
22and deliveries of more than 50,000 gallons of wine to
23manufacturers, importing distributors and distributors and to
24no other licensees.
25 Class 6. A first-class wine-maker's license shall allow the
26manufacture of up to 50,000 gallons of wine per year, and the

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1storage and sale of such wine to distributors in the State and
2to persons without the State, as may be permitted by law. A
3person who, prior to the effective date of this amendatory Act
4of the 95th General Assembly, is a holder of a first-class
5wine-maker's license and annually produces more than 25,000
6gallons of its own wine and who distributes its wine to
7licensed retailers shall cease this practice on or before July
81, 2008 in compliance with this amendatory Act of the 95th
9General Assembly.
10 Class 7. A second-class wine-maker's license shall allow
11the manufacture of between 50,000 and 150,000 gallons of wine
12per year, and the storage and sale of such wine to distributors
13in this State and to persons without the State, as may be
14permitted by law. A person who, prior to the effective date of
15this amendatory Act of the 95th General Assembly, is a holder
16of a second-class wine-maker's license and annually produces
17more than 25,000 gallons of its own wine and who distributes
18its wine to licensed retailers shall cease this practice on or
19before July 1, 2008 in compliance with this amendatory Act of
20the 95th General Assembly.
21 Class 8. A limited wine-manufacturer may make sales and
22deliveries not to exceed 40,000 gallons of wine per year to
23distributors, and to non-licensees in accordance with the
24provisions of this Act.
25 Class 9. A craft distiller license shall allow the
26manufacture of up to 15,000 gallons of spirits by distillation

SB1739 Engrossed- 491 -LRB098 10559 AMC 40804 b
1per year and the storage of such spirits. If a craft distiller
2licensee is not affiliated with any other manufacturer, then
3the craft distiller licensee may sell such spirits to
4distributors in this State and non-licensees to the extent
5permitted by any exemption approved by the Commission pursuant
6to Section 6-4 of this Act.
7 Any craft distiller licensed under this Act who on the
8effective date of this amendatory Act of the 96th General
9Assembly was licensed as a distiller and manufactured no more
10spirits than permitted by this Section shall not be required to
11pay the initial licensing fee.
12 Class 10. A craft brewer's license, which may only be
13issued to a licensed brewer or licensed non-resident dealer,
14shall allow the manufacture of up to 465,000 gallons of beer
15per year. A craft brewer licensee may make sales and deliveries
16to importing distributors and distributors and to retail
17licensees in accordance with the conditions set forth in
18paragraph (18) of subsection (a) of Section 3-12 of this Act.
19 (a-1) A manufacturer which is licensed in this State to
20make sales or deliveries of alcoholic liquor and which enlists
21agents, representatives, or individuals acting on its behalf
22who contact licensed retailers on a regular and continual basis
23in this State must register those agents, representatives, or
24persons acting on its behalf with the State Commission.
25 Registration of agents, representatives, or persons acting
26on behalf of a manufacturer is fulfilled by submitting a form

SB1739 Engrossed- 492 -LRB098 10559 AMC 40804 b
1to the Commission. The form shall be developed by the
2Commission and shall include the name and address of the
3applicant, the name and address of the manufacturer he or she
4represents, the territory or areas assigned to sell to or
5discuss pricing terms of alcoholic liquor, and any other
6questions deemed appropriate and necessary. All statements in
7the forms required to be made by law or by rule shall be deemed
8material, and any person who knowingly misstates any material
9fact under oath in an application is guilty of a Class B
10misdemeanor. Fraud, misrepresentation, false statements,
11misleading statements, evasions, or suppression of material
12facts in the securing of a registration are grounds for
13suspension or revocation of the registration.
14 (b) A distributor's license shall allow the wholesale
15purchase and storage of alcoholic liquors and sale of alcoholic
16liquors to licensees in this State and to persons without the
17State, as may be permitted by law.
18 (c) An importing distributor's license may be issued to and
19held by those only who are duly licensed distributors, upon the
20filing of an application by a duly licensed distributor, with
21the Commission and the Commission shall, without the payment of
22any fee, immediately issue such importing distributor's
23license to the applicant, which shall allow the importation of
24alcoholic liquor by the licensee into this State from any point
25in the United States outside this State, and the purchase of
26alcoholic liquor in barrels, casks or other bulk containers and

SB1739 Engrossed- 493 -LRB098 10559 AMC 40804 b
1the bottling of such alcoholic liquors before resale thereof,
2but all bottles or containers so filled shall be sealed,
3labeled, stamped and otherwise made to comply with all
4provisions, rules and regulations governing manufacturers in
5the preparation and bottling of alcoholic liquors. The
6importing distributor's license shall permit such licensee to
7purchase alcoholic liquor from Illinois licensed non-resident
8dealers and foreign importers only.
9 (d) A retailer's license shall allow the licensee to sell
10and offer for sale at retail, only in the premises specified in
11the license, alcoholic liquor for use or consumption, but not
12for resale in any form. Nothing in this amendatory Act of the
1395th General Assembly shall deny, limit, remove, or restrict
14the ability of a holder of a retailer's license to transfer,
15deliver, or ship alcoholic liquor to the purchaser for use or
16consumption subject to any applicable local law or ordinance.
17Any retail license issued to a manufacturer shall only permit
18the manufacturer to sell beer at retail on the premises
19actually occupied by the manufacturer. For the purpose of
20further describing the type of business conducted at a retail
21licensed premises, a retailer's licensee may be designated by
22the State Commission as (i) an on premise consumption retailer,
23(ii) an off premise sale retailer, or (iii) a combined on
24premise consumption and off premise sale retailer.
25 Notwithstanding any other provision of this subsection
26(d), a retail licensee may sell alcoholic liquors to a special

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1event retailer licensee for resale to the extent permitted
2under subsection (e).
3 (e) A special event retailer's license (not-for-profit)
4shall permit the licensee to purchase alcoholic liquors from an
5Illinois licensed distributor (unless the licensee purchases
6less than $500 of alcoholic liquors for the special event, in
7which case the licensee may purchase the alcoholic liquors from
8a licensed retailer) and shall allow the licensee to sell and
9offer for sale, at retail, alcoholic liquors for use or
10consumption, but not for resale in any form and only at the
11location and on the specific dates designated for the special
12event in the license. An applicant for a special event retailer
13license must (i) furnish with the application: (A) a resale
14number issued under Section 2c of the Retailers' Occupation Tax
15Act or evidence that the applicant is registered under Section
162a of the Retailers' Occupation Tax Act, (B) a current, valid
17exemption identification number issued under Section 1g of the
18Retailers' Occupation Tax Act, and a certification to the
19Commission that the purchase of alcoholic liquors will be a
20tax-exempt purchase, or (C) a statement that the applicant is
21not registered under Section 2a of the Retailers' Occupation
22Tax Act, does not hold a resale number under Section 2c of the
23Retailers' Occupation Tax Act, and does not hold an exemption
24number under Section 1g of the Retailers' Occupation Tax Act,
25in which event the Commission shall set forth on the special
26event retailer's license a statement to that effect; (ii)

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1submit with the application proof satisfactory to the State
2Commission that the applicant will provide dram shop liability
3insurance in the maximum limits; and (iii) show proof
4satisfactory to the State Commission that the applicant has
5obtained local authority approval.
6 (f) A railroad license shall permit the licensee to import
7alcoholic liquors into this State from any point in the United
8States outside this State and to store such alcoholic liquors
9in this State; to make wholesale purchases of alcoholic liquors
10directly from manufacturers, foreign importers, distributors
11and importing distributors from within or outside this State;
12and to store such alcoholic liquors in this State; provided
13that the above powers may be exercised only in connection with
14the importation, purchase or storage of alcoholic liquors to be
15sold or dispensed on a club, buffet, lounge or dining car
16operated on an electric, gas or steam railway in this State;
17and provided further, that railroad licensees exercising the
18above powers shall be subject to all provisions of Article VIII
19of this Act as applied to importing distributors. A railroad
20license shall also permit the licensee to sell or dispense
21alcoholic liquors on any club, buffet, lounge or dining car
22operated on an electric, gas or steam railway regularly
23operated by a common carrier in this State, but shall not
24permit the sale for resale of any alcoholic liquors to any
25licensee within this State. A license shall be obtained for
26each car in which such sales are made.

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1 (g) A boat license shall allow the sale of alcoholic liquor
2in individual drinks, on any passenger boat regularly operated
3as a common carrier on navigable waters in this State or on any
4riverboat operated under the Illinois Riverboat Gambling Act,
5which boat or riverboat maintains a public dining room or
6restaurant thereon.
7 (h) A non-beverage user's license shall allow the licensee
8to purchase alcoholic liquor from a licensed manufacturer or
9importing distributor, without the imposition of any tax upon
10the business of such licensed manufacturer or importing
11distributor as to such alcoholic liquor to be used by such
12licensee solely for the non-beverage purposes set forth in
13subsection (a) of Section 8-1 of this Act, and such licenses
14shall be divided and classified and shall permit the purchase,
15possession and use of limited and stated quantities of
16alcoholic liquor as follows:
17Class 1, not to exceed ......................... 500 gallons
18Class 2, not to exceed ....................... 1,000 gallons
19Class 3, not to exceed ....................... 5,000 gallons
20Class 4, not to exceed ...................... 10,000 gallons
21Class 5, not to exceed ....................... 50,000 gallons
22 (i) A wine-maker's premises license shall allow a licensee
23that concurrently holds a first-class wine-maker's license to
24sell and offer for sale at retail in the premises specified in
25such license not more than 50,000 gallons of the first-class
26wine-maker's wine that is made at the first-class wine-maker's

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1licensed premises per year for use or consumption, but not for
2resale in any form. A wine-maker's premises license shall allow
3a licensee who concurrently holds a second-class wine-maker's
4license to sell and offer for sale at retail in the premises
5specified in such license up to 100,000 gallons of the
6second-class wine-maker's wine that is made at the second-class
7wine-maker's licensed premises per year for use or consumption
8but not for resale in any form. A wine-maker's premises license
9shall allow a licensee that concurrently holds a first-class
10wine-maker's license or a second-class wine-maker's license to
11sell and offer for sale at retail at the premises specified in
12the wine-maker's premises license, for use or consumption but
13not for resale in any form, any beer, wine, and spirits
14purchased from a licensed distributor. Upon approval from the
15State Commission, a wine-maker's premises license shall allow
16the licensee to sell and offer for sale at (i) the wine-maker's
17licensed premises and (ii) at up to 2 additional locations for
18use and consumption and not for resale. Each location shall
19require additional licensing per location as specified in
20Section 5-3 of this Act. A wine-maker's premises licensee shall
21secure liquor liability insurance coverage in an amount at
22least equal to the maximum liability amounts set forth in
23subsection (a) of Section 6-21 of this Act.
24 (j) An airplane license shall permit the licensee to import
25alcoholic liquors into this State from any point in the United
26States outside this State and to store such alcoholic liquors

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1in this State; to make wholesale purchases of alcoholic liquors
2directly from manufacturers, foreign importers, distributors
3and importing distributors from within or outside this State;
4and to store such alcoholic liquors in this State; provided
5that the above powers may be exercised only in connection with
6the importation, purchase or storage of alcoholic liquors to be
7sold or dispensed on an airplane; and provided further, that
8airplane licensees exercising the above powers shall be subject
9to all provisions of Article VIII of this Act as applied to
10importing distributors. An airplane licensee shall also permit
11the sale or dispensing of alcoholic liquors on any passenger
12airplane regularly operated by a common carrier in this State,
13but shall not permit the sale for resale of any alcoholic
14liquors to any licensee within this State. A single airplane
15license shall be required of an airline company if liquor
16service is provided on board aircraft in this State. The annual
17fee for such license shall be as determined in Section 5-3.
18 (k) A foreign importer's license shall permit such licensee
19to purchase alcoholic liquor from Illinois licensed
20non-resident dealers only, and to import alcoholic liquor other
21than in bulk from any point outside the United States and to
22sell such alcoholic liquor to Illinois licensed importing
23distributors and to no one else in Illinois; provided that (i)
24the foreign importer registers with the State Commission every
25brand of alcoholic liquor that it proposes to sell to Illinois
26licensees during the license period, (ii) the foreign importer

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1complies with all of the provisions of Section 6-9 of this Act
2with respect to registration of such Illinois licensees as may
3be granted the right to sell such brands at wholesale, and
4(iii) the foreign importer complies with the provisions of
5Sections 6-5 and 6-6 of this Act to the same extent that these
6provisions apply to manufacturers.
7 (l) (i) A broker's license shall be required of all persons
8who solicit orders for, offer to sell or offer to supply
9alcoholic liquor to retailers in the State of Illinois, or who
10offer to retailers to ship or cause to be shipped or to make
11contact with distillers, rectifiers, brewers or manufacturers
12or any other party within or without the State of Illinois in
13order that alcoholic liquors be shipped to a distributor,
14importing distributor or foreign importer, whether such
15solicitation or offer is consummated within or without the
16State of Illinois.
17 No holder of a retailer's license issued by the Illinois
18Liquor Control Commission shall purchase or receive any
19alcoholic liquor, the order for which was solicited or offered
20for sale to such retailer by a broker unless the broker is the
21holder of a valid broker's license.
22 The broker shall, upon the acceptance by a retailer of the
23broker's solicitation of an order or offer to sell or supply or
24deliver or have delivered alcoholic liquors, promptly forward
25to the Illinois Liquor Control Commission a notification of
26said transaction in such form as the Commission may by

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1regulations prescribe.
2 (ii) A broker's license shall be required of a person
3within this State, other than a retail licensee, who, for a fee
4or commission, promotes, solicits, or accepts orders for
5alcoholic liquor, for use or consumption and not for resale, to
6be shipped from this State and delivered to residents outside
7of this State by an express company, common carrier, or
8contract carrier. This Section does not apply to any person who
9promotes, solicits, or accepts orders for wine as specifically
10authorized in Section 6-29 of this Act.
11 A broker's license under this subsection (l) shall not
12entitle the holder to buy or sell any alcoholic liquors for his
13own account or to take or deliver title to such alcoholic
14liquors.
15 This subsection (l) shall not apply to distributors,
16employees of distributors, or employees of a manufacturer who
17has registered the trademark, brand or name of the alcoholic
18liquor pursuant to Section 6-9 of this Act, and who regularly
19sells such alcoholic liquor in the State of Illinois only to
20its registrants thereunder.
21 Any agent, representative, or person subject to
22registration pursuant to subsection (a-1) of this Section shall
23not be eligible to receive a broker's license.
24 (m) A non-resident dealer's license shall permit such
25licensee to ship into and warehouse alcoholic liquor into this
26State from any point outside of this State, and to sell such

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1alcoholic liquor to Illinois licensed foreign importers and
2importing distributors and to no one else in this State;
3provided that (i) said non-resident dealer shall register with
4the Illinois Liquor Control Commission each and every brand of
5alcoholic liquor which it proposes to sell to Illinois
6licensees during the license period, (ii) it shall comply with
7all of the provisions of Section 6-9 hereof with respect to
8registration of such Illinois licensees as may be granted the
9right to sell such brands at wholesale, and (iii) the
10non-resident dealer shall comply with the provisions of
11Sections 6-5 and 6-6 of this Act to the same extent that these
12provisions apply to manufacturers.
13 (n) A brew pub license shall allow the licensee (i) to
14manufacture beer only on the premises specified in the license,
15(ii) to make sales of the beer manufactured on the premises or,
16with the approval of the Commission, beer manufactured on
17another brew pub licensed premises that is substantially owned
18and operated by the same licensee to importing distributors,
19distributors, and to non-licensees for use and consumption,
20(iii) to store the beer upon the premises, and (iv) to sell and
21offer for sale at retail from the licensed premises, provided
22that a brew pub licensee shall not sell for off-premises
23consumption more than 50,000 gallons per year. A person who
24holds a brew pub license may simultaneously hold a craft brewer
25license if he or she otherwise qualifies for the craft brewer
26license and the craft brewer license is for a location separate

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1from the brew pub's licensed premises. A brew pub license shall
2permit a person who has received prior approval from the
3Commission to annually transfer no more than a total of 50,000
4gallons of beer manufactured on premises to all other licensed
5brew pubs that are substantially owned and operated by the same
6person.
7 (o) A caterer retailer license shall allow the holder to
8serve alcoholic liquors as an incidental part of a food service
9that serves prepared meals which excludes the serving of snacks
10as the primary meal, either on or off-site whether licensed or
11unlicensed.
12 (p) An auction liquor license shall allow the licensee to
13sell and offer for sale at auction wine and spirits for use or
14consumption, or for resale by an Illinois liquor licensee in
15accordance with provisions of this Act. An auction liquor
16license will be issued to a person and it will permit the
17auction liquor licensee to hold the auction anywhere in the
18State. An auction liquor license must be obtained for each
19auction at least 14 days in advance of the auction date.
20 (q) A special use permit license shall allow an Illinois
21licensed retailer to transfer a portion of its alcoholic liquor
22inventory from its retail licensed premises to the premises
23specified in the license hereby created, and to sell or offer
24for sale at retail, only in the premises specified in the
25license hereby created, the transferred alcoholic liquor for
26use or consumption, but not for resale in any form. A special

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1use permit license may be granted for the following time
2periods: one day or less; 2 or more days to a maximum of 15 days
3per location in any 12 month period. An applicant for the
4special use permit license must also submit with the
5application proof satisfactory to the State Commission that the
6applicant will provide dram shop liability insurance to the
7maximum limits and have local authority approval.
8 (r) A winery shipper's license shall allow a person with a
9first-class or second-class wine manufacturer's license, a
10first-class or second-class wine-maker's license, or a limited
11wine manufacturer's license or who is licensed to make wine
12under the laws of another state to ship wine made by that
13licensee directly to a resident of this State who is 21 years
14of age or older for that resident's personal use and not for
15resale. Prior to receiving a winery shipper's license, an
16applicant for the license must provide the Commission with a
17true copy of its current license in any state in which it is
18licensed as a manufacturer of wine. An applicant for a winery
19shipper's license must also complete an application form that
20provides any other information the Commission deems necessary.
21The application form shall include an acknowledgement
22consenting to the jurisdiction of the Commission, the Illinois
23Department of Revenue, and the courts of this State concerning
24the enforcement of this Act and any related laws, rules, and
25regulations, including authorizing the Department of Revenue
26and the Commission to conduct audits for the purpose of

SB1739 Engrossed- 504 -LRB098 10559 AMC 40804 b
1ensuring compliance with this amendatory Act.
2 A winery shipper licensee must pay to the Department of
3Revenue the State liquor gallonage tax under Section 8-1 for
4all wine that is sold by the licensee and shipped to a person
5in this State. For the purposes of Section 8-1, a winery
6shipper licensee shall be taxed in the same manner as a
7manufacturer of wine. A licensee who is not otherwise required
8to register under the Retailers' Occupation Tax Act must
9register under the Use Tax Act to collect and remit use tax to
10the Department of Revenue for all gallons of wine that are sold
11by the licensee and shipped to persons in this State. If a
12licensee fails to remit the tax imposed under this Act in
13accordance with the provisions of Article VIII of this Act, the
14winery shipper's license shall be revoked in accordance with
15the provisions of Article VII of this Act. If a licensee fails
16to properly register and remit tax under the Use Tax Act or the
17Retailers' Occupation Tax Act for all wine that is sold by the
18winery shipper and shipped to persons in this State, the winery
19shipper's license shall be revoked in accordance with the
20provisions of Article VII of this Act.
21 A winery shipper licensee must collect, maintain, and
22submit to the Commission on a semi-annual basis the total
23number of cases per resident of wine shipped to residents of
24this State. A winery shipper licensed under this subsection (r)
25must comply with the requirements of Section 6-29 of this
26amendatory Act.

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1(Source: P.A. 96-1367, eff. 7-28-10; 97-5, eff. 6-1-11; 97-455,
2eff. 8-19-11; 97-813, eff. 7-13-12.)
3 (235 ILCS 5/6-30) (from Ch. 43, par. 144f)
4 Sec. 6-30. Notwithstanding any other provision of this Act,
5the Illinois Gaming Board shall have exclusive authority to
6establish the hours for sale and consumption of alcoholic
7liquor on board a riverboat during riverboat gambling
8excursions and in a casino conducted in accordance with the
9Illinois Riverboat Gambling Act.
10(Source: P.A. 87-826.)
11 Section 90-50. The Criminal Code of 2012 is amended by
12changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as
13follows:
14 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
15 Sec. 28-1. Gambling.
16 (a) A person commits gambling when he or she:
17 (1) knowingly plays a game of chance or skill for money
18 or other thing of value, unless excepted in subsection (b)
19 of this Section;
20 (2) knowingly makes a wager upon the result of any
21 game, contest, or any political nomination, appointment or
22 election;
23 (3) knowingly operates, keeps, owns, uses, purchases,

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1 exhibits, rents, sells, bargains for the sale or lease of,
2 manufactures or distributes any gambling device;
3 (4) contracts to have or give himself or herself or
4 another the option to buy or sell, or contracts to buy or
5 sell, at a future time, any grain or other commodity
6 whatsoever, or any stock or security of any company, where
7 it is at the time of making such contract intended by both
8 parties thereto that the contract to buy or sell, or the
9 option, whenever exercised, or the contract resulting
10 therefrom, shall be settled, not by the receipt or delivery
11 of such property, but by the payment only of differences in
12 prices thereof; however, the issuance, purchase, sale,
13 exercise, endorsement or guarantee, by or through a person
14 registered with the Secretary of State pursuant to Section
15 8 of the Illinois Securities Law of 1953, or by or through
16 a person exempt from such registration under said Section
17 8, of a put, call, or other option to buy or sell
18 securities which have been registered with the Secretary of
19 State or which are exempt from such registration under
20 Section 3 of the Illinois Securities Law of 1953 is not
21 gambling within the meaning of this paragraph (4);
22 (5) knowingly owns or possesses any book, instrument or
23 apparatus by means of which bets or wagers have been, or
24 are, recorded or registered, or knowingly possesses any
25 money which he has received in the course of a bet or
26 wager;

SB1739 Engrossed- 507 -LRB098 10559 AMC 40804 b
1 (6) knowingly sells pools upon the result of any game
2 or contest of skill or chance, political nomination,
3 appointment or election;
4 (7) knowingly sets up or promotes any lottery or sells,
5 offers to sell or transfers any ticket or share for any
6 lottery;
7 (8) knowingly sets up or promotes any policy game or
8 sells, offers to sell or knowingly possesses or transfers
9 any policy ticket, slip, record, document or other similar
10 device;
11 (9) knowingly drafts, prints or publishes any lottery
12 ticket or share, or any policy ticket, slip, record,
13 document or similar device, except for such activity
14 related to lotteries, bingo games and raffles authorized by
15 and conducted in accordance with the laws of Illinois or
16 any other state or foreign government;
17 (10) knowingly advertises any lottery or policy game,
18 except for such activity related to lotteries, bingo games
19 and raffles authorized by and conducted in accordance with
20 the laws of Illinois or any other state;
21 (11) knowingly transmits information as to wagers,
22 betting odds, or changes in betting odds by telephone,
23 telegraph, radio, semaphore or similar means; or knowingly
24 installs or maintains equipment for the transmission or
25 receipt of such information; except that nothing in this
26 subdivision (11) prohibits transmission or receipt of such

SB1739 Engrossed- 508 -LRB098 10559 AMC 40804 b
1 information for use in news reporting of sporting events or
2 contests; or
3 (12) knowingly establishes, maintains, or operates an
4 Internet site that permits a person to play a game of
5 chance or skill for money or other thing of value by means
6 of the Internet or to make a wager upon the result of any
7 game, contest, political nomination, appointment, or
8 election by means of the Internet. This item (12) does not
9 apply to activities referenced in items (6) and (6.1) of
10 subsection (b) of this Section.
11 (b) Participants in any of the following activities shall
12not be convicted of 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 such contest.
21 (3) Pari-mutuel betting as authorized by the law of
22 this 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 such

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1 transportation is not prohibited by any applicable Federal
2 law; or the manufacture, distribution, or possession of
3 video gaming terminals, as defined in the Video Gaming Act,
4 by manufacturers, distributors, and terminal operators
5 licensed to do so under the Video Gaming Act.
6 (5) The game commonly known as "bingo", when conducted
7 in accordance with the Bingo License and Tax Act.
8 (6) Lotteries when conducted by the State of Illinois
9 in accordance with the Illinois Lottery Law. This exemption
10 includes any activity conducted by the Department of
11 Revenue to sell lottery tickets pursuant to the provisions
12 of the Illinois Lottery Law and its rules.
13 (6.1) The purchase of lottery tickets through the
14 Internet for a lottery conducted by the State of Illinois
15 under the program established in Section 7.12 of the
16 Illinois Lottery Law.
17 (7) Possession of an antique slot machine that is
18 neither used nor intended to be used in the operation or
19 promotion of any unlawful gambling activity or enterprise.
20 For the purpose of this subparagraph (b)(7), an antique
21 slot machine is one manufactured 25 years ago or earlier.
22 (8) Raffles when conducted in accordance with the
23 Raffles Act.
24 (9) Charitable games when conducted in accordance with
25 the Charitable Games Act.
26 (10) Pull tabs and jar games when conducted under the

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1 Illinois Pull Tabs and Jar Games Act.
2 (11) Gambling games conducted on riverboats when
3 authorized by the Illinois Riverboat Gambling Act.
4 (12) Video gaming terminal games at a licensed
5 establishment, licensed truck stop establishment, licensed
6 fraternal establishment, or licensed veterans
7 establishment when conducted in accordance with the Video
8 Gaming Act.
9 (13) Games of skill or chance where money or other
10 things of value can be won but no payment or purchase is
11 required to participate.
12 (c) Sentence.
13 Gambling is a Class A misdemeanor. A second or subsequent
14conviction under subsections (a)(3) through (a)(12), is a Class
154 felony.
16 (d) Circumstantial evidence.
17 In prosecutions under this Section circumstantial evidence
18shall have the same validity and weight as in any criminal
19prosecution.
20(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
2196-1203, eff. 7-22-10; 97-1108, eff. 1-1-13.)
22 (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)
23 Sec. 28-1.1. Syndicated gambling.
24 (a) Declaration of Purpose. Recognizing the close
25relationship between professional gambling and other organized

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1crime, it is declared to be the policy of the legislature to
2restrain persons from engaging in the business of gambling for
3profit in this State. This Section shall be liberally construed
4and administered with a view to carrying out this policy.
5 (b) A person commits syndicated gambling when he or she
6operates a "policy game" or engages in the business of
7bookmaking.
8 (c) A person "operates a policy game" when he or she
9knowingly uses any premises or property for the purpose of
10receiving or knowingly does receive from what is commonly
11called "policy":
12 (1) money from a person other than the bettor or player
13 whose bets or plays are represented by the money; or
14 (2) written "policy game" records, made or used over
15 any period of time, from a person other than the bettor or
16 player whose bets or plays are represented by the written
17 record.
18 (d) A person engages in bookmaking when he or she knowingly
19receives or accepts more than five bets or wagers upon the
20result of any trials or contests of skill, speed or power of
21endurance or upon any lot, chance, casualty, unknown or
22contingent event whatsoever, which bets or wagers shall be of
23such size that the total of the amounts of money paid or
24promised to be paid to the bookmaker on account thereof shall
25exceed $2,000. Bookmaking is the receiving or accepting of bets
26or wagers regardless of the form or manner in which the

SB1739 Engrossed- 512 -LRB098 10559 AMC 40804 b
1bookmaker records them.
2 (e) Participants in any of the following activities shall
3not be convicted of syndicated gambling:
4 (1) Agreements to compensate for loss caused by the
5 happening of chance including without limitation contracts
6 of indemnity or guaranty and life or health or accident
7 insurance;
8 (2) Offers of prizes, award or compensation to the
9 actual contestants in any bona fide contest for the
10 determination of skill, speed, strength or endurance or to
11 the owners of animals or vehicles entered in the contest;
12 (3) Pari-mutuel betting as authorized by law of this
13 State;
14 (4) Manufacture of gambling devices, including the
15 acquisition of essential parts therefor and the assembly
16 thereof, for transportation in interstate or foreign
17 commerce to any place outside this State when the
18 transportation is not prohibited by any applicable Federal
19 law;
20 (5) Raffles when conducted in accordance with the
21 Raffles Act;
22 (6) Gambling games conducted on riverboats, in
23 casinos, or at electronic gaming facilities when
24 authorized by the Illinois Riverboat Gambling Act; and
25 (7) Video gaming terminal games at a licensed
26 establishment, licensed truck stop establishment, licensed

SB1739 Engrossed- 513 -LRB098 10559 AMC 40804 b
1 fraternal establishment, or licensed veterans
2 establishment when conducted in accordance with the Video
3 Gaming Act.
4 (f) Sentence. Syndicated gambling is a Class 3 felony.
5(Source: P.A. 96-34, eff. 7-13-09; 97-1108, eff. 1-1-13.)
6 (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
7 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
8any real estate, vehicle, boat or any other property whatsoever
9used for the purposes of gambling other than gambling conducted
10in the manner authorized by the Illinois Riverboat Gambling Act
11or the Video Gaming Act. Any person who knowingly permits any
12premises or property owned or occupied by him or under his
13control to be used as a gambling place commits a Class A
14misdemeanor. Each subsequent offense is a Class 4 felony. When
15any premises is determined by the circuit court to be a
16gambling place:
17 (a) Such premises is a public nuisance and may be proceeded
18against as such, and
19 (b) All licenses, permits or certificates issued by the
20State of Illinois or any subdivision or public agency thereof
21authorizing the serving of food or liquor on such premises
22shall be void; and no license, permit or certificate so
23cancelled shall be reissued for such premises for a period of
2460 days thereafter; nor shall any person convicted of keeping a
25gambling place be reissued such license for one year from his

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1conviction and, after a second conviction of keeping a gambling
2place, any such person shall not be reissued such license, and
3 (c) Such premises of any person who knowingly permits
4thereon a violation of any Section of this Article shall be
5held liable for, and may be sold to pay any unsatisfied
6judgment that may be recovered and any unsatisfied fine that
7may be levied under any Section of this Article.
8(Source: P.A. 96-34, eff. 7-13-09.)
9 (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
10 Sec. 28-5. Seizure of gambling devices and gambling funds.
11 (a) Every device designed for gambling which is incapable
12of lawful use or every device used unlawfully for gambling
13shall be considered a "gambling device", and shall be subject
14to seizure, confiscation and destruction by the Department of
15State Police or by any municipal, or other local authority,
16within whose jurisdiction the same may be found. As used in
17this Section, a "gambling device" includes any slot machine,
18and includes any machine or device constructed for the
19reception of money or other thing of value and so constructed
20as to return, or to cause someone to return, on chance to the
21player thereof money, property or a right to receive money or
22property. With the exception of any device designed for
23gambling which is incapable of lawful use, no gambling device
24shall be forfeited or destroyed unless an individual with a
25property interest in said device knows of the unlawful use of

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1the device.
2 (b) Every gambling device shall be seized and forfeited to
3the county wherein such seizure occurs. Any money or other
4thing of value integrally related to acts of gambling shall be
5seized and forfeited to the county wherein such seizure occurs.
6 (c) If, within 60 days after any seizure pursuant to
7subparagraph (b) of this Section, a person having any property
8interest in the seized property is charged with an offense, the
9court which renders judgment upon such charge shall, within 30
10days after such judgment, conduct a forfeiture hearing to
11determine whether such property was a gambling device at the
12time of seizure. Such hearing shall be commenced by a written
13petition by the State, including material allegations of fact,
14the name and address of every person determined by the State to
15have any property interest in the seized property, a
16representation that written notice of the date, time and place
17of such hearing has been mailed to every such person by
18certified mail at least 10 days before such date, and a request
19for forfeiture. Every such person may appear as a party and
20present evidence at such hearing. The quantum of proof required
21shall be a preponderance of the evidence, and the burden of
22proof shall be on the State. If the court determines that the
23seized property was a gambling device at the time of seizure,
24an order of forfeiture and disposition of the seized property
25shall be entered: a gambling device shall be received by the
26State's Attorney, who shall effect its destruction, except that

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1valuable parts thereof may be liquidated and the resultant
2money shall be deposited in the general fund of the county
3wherein such seizure occurred; money and other things of value
4shall be received by the State's Attorney and, upon
5liquidation, shall be deposited in the general fund of the
6county wherein such seizure occurred. However, in the event
7that a defendant raises the defense that the seized slot
8machine is an antique slot machine described in subparagraph
9(b) (7) of Section 28-1 of this Code and therefore he is exempt
10from the charge of a gambling activity participant, the seized
11antique slot machine shall not be destroyed or otherwise
12altered until a final determination is made by the Court as to
13whether it is such an antique slot machine. Upon a final
14determination by the Court of this question in favor of the
15defendant, such slot machine shall be immediately returned to
16the defendant. Such order of forfeiture and disposition shall,
17for the purposes of appeal, be a final order and judgment in a
18civil proceeding.
19 (d) If a seizure pursuant to subparagraph (b) of this
20Section is not followed by a charge pursuant to subparagraph
21(c) of this Section, or if the prosecution of such charge is
22permanently terminated or indefinitely discontinued without
23any judgment of conviction or acquittal (1) the State's
24Attorney shall commence an in rem proceeding for the forfeiture
25and destruction of a gambling device, or for the forfeiture and
26deposit in the general fund of the county of any seized money

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1or other things of value, or both, in the circuit court and (2)
2any person having any property interest in such seized gambling
3device, money or other thing of value may commence separate
4civil proceedings in the manner provided by law.
5 (e) Any gambling device displayed for sale to a riverboat
6gambling operation, casino gambling operation, or electronic
7gaming facility or used to train occupational licensees of a
8riverboat gambling operation, casino gambling operation, or
9electronic gaming facility as authorized under the Illinois
10Riverboat Gambling Act is exempt from seizure under this
11Section.
12 (f) Any gambling equipment, devices and supplies provided
13by a licensed supplier in accordance with the Illinois
14Riverboat Gambling Act which are removed from a the riverboat,
15casino, or electronic gaming facility for repair are exempt
16from seizure under this Section.
17(Source: P.A. 87-826.)
18 (720 ILCS 5/28-7) (from Ch. 38, par. 28-7)
19 Sec. 28-7. Gambling contracts void.
20 (a) All promises, notes, bills, bonds, covenants,
21contracts, agreements, judgments, mortgages, or other
22securities or conveyances made, given, granted, drawn, or
23entered into, or executed by any person whatsoever, where the
24whole or any part of the consideration thereof is for any money
25or thing of value, won or obtained in violation of any Section

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1of this Article are null and void.
2 (b) Any obligation void under this Section may be set aside
3and vacated by any court of competent jurisdiction, upon a
4complaint filed for that purpose, by the person so granting,
5giving, entering into, or executing the same, or by his
6executors or administrators, or by any creditor, heir, legatee,
7purchaser or other person interested therein; or if a judgment,
8the same may be set aside on motion of any person stated above,
9on due notice thereof given.
10 (c) No assignment of any obligation void under this Section
11may in any manner affect the defense of the person giving,
12granting, drawing, entering into or executing such obligation,
13or the remedies of any person interested therein.
14 (d) This Section shall not prevent a licensed owner of a
15riverboat gambling operation, casino gambling operation, or an
16electronic gaming licensee under the Illinois Gambling Act and
17the Illinois Horse Racing Act of 1975 from instituting a cause
18of action to collect any amount due and owing under an
19extension of credit to a riverboat gambling patron as
20authorized under Section 11.1 of the Illinois Riverboat
21Gambling Act.
22(Source: P.A. 87-826.)
23 Section 90-55. The Eminent Domain Act is amended by adding
24Section 15-5-47 as follows:

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1 (735 ILCS 30/15-5-47 new)
2 Sec. 15-5-47. Eminent domain powers in new Acts. The
3following provisions of law may include express grants of the
4power to acquire property by condemnation or eminent domain:
5 Chicago Casino Development Authority Act; City of Chicago; for
6 the purposes of the Act.
7 Section 90-60. The Payday Loan Reform Act is amended by
8changing Section 3-5 as follows:
9 (815 ILCS 122/3-5)
10 Sec. 3-5. Licensure.
11 (a) A license to make a payday loan shall state the
12address, including city and state, at which the business is to
13be conducted and shall state fully the name of the licensee.
14The license shall be conspicuously posted in the place of
15business of the licensee and shall not be transferable or
16assignable.
17 (b) An application for a license shall be in writing and in
18a form prescribed by the Secretary. The Secretary may not issue
19a payday loan license unless and until the following findings
20are made:
21 (1) that the financial responsibility, experience,
22 character, and general fitness of the applicant are such as
23 to command the confidence of the public and to warrant the

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1 belief that the business will be operated lawfully and
2 fairly and within the provisions and purposes of this Act;
3 and
4 (2) that the applicant has submitted such other
5 information as the Secretary may deem necessary.
6 (c) A license shall be issued for no longer than one year,
7and no renewal of a license may be provided if a licensee has
8substantially violated this Act and has not cured the violation
9to the satisfaction of the Department.
10 (d) A licensee shall appoint, in writing, the Secretary as
11attorney-in-fact upon whom all lawful process against the
12licensee may be served with the same legal force and validity
13as if served on the licensee. A copy of the written
14appointment, duly certified, shall be filed in the office of
15the Secretary, and a copy thereof certified by the Secretary
16shall be sufficient evidence to subject a licensee to
17jurisdiction in a court of law. This appointment shall remain
18in effect while any liability remains outstanding in this State
19against the licensee. When summons is served upon the Secretary
20as attorney-in-fact for a licensee, the Secretary shall
21immediately notify the licensee by registered mail, enclosing
22the summons and specifying the hour and day of service.
23 (e) A licensee must pay an annual fee of $1,000. In
24addition to the license fee, the reasonable expense of any
25examination or hearing by the Secretary under any provisions of
26this Act shall be borne by the licensee. If a licensee fails to

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1renew its license by December 31, its license shall
2automatically expire; however, the Secretary, in his or her
3discretion, may reinstate an expired license upon:
4 (1) payment of the annual fee within 30 days of the
5 date of expiration; and
6 (2) proof of good cause for failure to renew.
7 (f) Not more than one place of business shall be maintained
8under the same license, but the Secretary may issue more than
9one license to the same licensee upon compliance with all the
10provisions of this Act governing issuance of a single license.
11The location, except those locations already in existence as of
12June 1, 2005, may not be within one mile of a horse race track
13subject to the Illinois Horse Racing Act of 1975, within one
14mile of a facility at which gambling is conducted under the
15Illinois Riverboat Gambling Act, within one mile of the
16location at which a riverboat subject to the Illinois Riverboat
17Gambling Act docks, or within one mile of any State of Illinois
18or United States military base or naval installation.
19 (g) No licensee shall conduct the business of making loans
20under this Act within any office, suite, room, or place of
21business in which (1) any loans are offered or made under the
22Consumer Installment Loan Act other than title secured loans as
23defined in subsection (a) of Section 15 of the Consumer
24Installment Loan Act and governed by Title 38, Section 110.330
25of the Illinois Administrative Code or (2) any other business
26is solicited or engaged in unless the other business is

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1licensed by the Department or, in the opinion of the Secretary,
2the other business would not be contrary to the best interests
3of consumers and is authorized by the Secretary in writing.
4 (g-5) Notwithstanding subsection (g) of this Section, a
5licensee may obtain a license under the Consumer Installment
6Loan Act (CILA) for the exclusive purpose and use of making
7title secured loans, as defined in subsection (a) of Section 15
8of CILA and governed by Title 38, Section 110.300 of the
9Illinois Administrative Code. A licensee may continue to
10service Consumer Installment Loan Act loans that were
11outstanding as of the effective date of this amendatory Act of
12the 96th General Assembly.
13 (h) The Secretary shall maintain a list of licensees that
14shall be available to interested consumers and lenders and the
15public. The Secretary shall maintain a toll-free number whereby
16consumers may obtain information about licensees. The
17Secretary shall also establish a complaint process under which
18an aggrieved consumer may file a complaint against a licensee
19or non-licensee who violates any provision of this Act.
20(Source: P.A. 96-936, eff. 3-21-11.)
21 Section 90-65. The Travel Promotion Consumer Protection
22Act is amended by changing Section 2 as follows:
23 (815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)
24 Sec. 2. Definitions.

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1 (a) "Travel promoter" means a person, including a tour
2operator, who sells, provides, furnishes, contracts for,
3arranges or advertises that he or she will arrange wholesale or
4retail transportation by air, land, sea or navigable stream,
5either separately or in conjunction with other services.
6"Travel promoter" does not include (1) an air carrier; (2) a
7sea carrier; (3) an officially appointed agent of an air
8carrier who is a member in good standing of the Airline
9Reporting Corporation; (4) a travel promoter who has in force
10$1,000,000 or more of liability insurance coverage for
11professional errors and omissions and a surety bond or
12equivalent surety in the amount of $100,000 or more for the
13benefit of consumers in the event of a bankruptcy on the part
14of the travel promoter; or (5) a riverboat subject to
15regulation under the Illinois Riverboat Gambling Act.
16 (b) "Advertise" means to make any representation in the
17solicitation of passengers and includes communication with
18other members of the same partnership, corporation, joint
19venture, association, organization, group or other entity.
20 (c) "Passenger" means a person on whose behalf money or
21other consideration has been given or is to be given to
22another, including another member of the same partnership,
23corporation, joint venture, association, organization, group
24or other entity, for travel.
25 (d) "Ticket or voucher" means a writing or combination of
26writings which is itself good and sufficient to obtain

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1transportation and other services for which the passenger has
2contracted.
3(Source: P.A. 91-357, eff. 7-29-99.)
4 (30 ILCS 105/5.490 rep.)
5 Section 90-70. The State Finance Act is amended by
6repealing Section 5.490.
7 (230 ILCS 5/54 rep.)
8 Section 90-75. The Illinois Horse Racing Act of 1975 is
9amended by repealing Section 54.
10
ARTICLE 99.
11 Section 99-97. Severability. The provisions of this Act are
12severable under Section 1.31 of the Statute on Statutes.