99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3564

Introduced , by Rep. Robert Rita

SYNOPSIS AS INTRODUCED:
See Index

Amends the Illinois Horse Racing Act of 1975 and the Riverboat Gambling Act to authorize electronic gaming at race tracks (and makes conforming changes in various Acts). Further amends the Illinois Horse Racing Act of 1975. Makes various changes concerning Board members. Contains provisions concerning testing of horses. Further amends the Riverboat Gambling Act. Changes the short title to the Illinois Gambling Act and changes corresponding references to the Act throughout the statutes. Adds 4 additional owners licenses. Authorizes the Illinois Gaming Board to conduct gambling operations on a riverboat or in a casino, through a licensed manager, within the City of Chicago. Provides that the City of Chicago shall select the site for the operation and acquire, upon consultation with the Capital Development Board, any land necessary for its construction, including by condemnation or eminent domain, and the City of Chicago shall convey to the Illinois Gaming Board property so acquired upon reimbursement, plus reasonable interest costs, to the City of Chicago. Requires the Capital Development Board to construct, repair, and maintain, or contract for and supervise the construction, repair, and maintenance of, facilities for use by the Board to conduct the gambling operations. Limits the number of positions that may be operated. Provides that no admissions tax shall be imposed upon admissions. Makes changes in provisions concerning the admission tax and privilege tax. Amends the Illinois Horse Racing Act of 1975, the Riverboat Gambling Act, and the Video Gaming Act to prohibit political contributions from certain licensees. Makes other changes. Contains a severability clause. Effective September 1, 2015.
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FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY

A BILL FOR

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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 Section 1. Findings. The General Assembly makes all of the
5following findings:
6 (1) That the cumulative reduction to pre-K through 12
7 education funding since 2009 is approximately
8 $861,000,000.
9 (2) That during the last 2 years, general State aid to
10 Illinois common schools has been underfunded as a result of
11 budget cuts, resulting in pro-rated payments to school
12 districts that are less than the foundational level of
13 $6,119 per pupil, which represents the minimum each pupil
14 needs to be educated.
15 (3) That a significant infusion of new revenue is
16 necessary in order to fully fund the foundation level and
17 to maintain and support education in Illinois.
18 (4) That the decline of the Illinois horse racing and
19 breeding program, a $2.5 billion industry, would be
20 reversed if this amendatory Act of the 99th General
21 Assembly would be enacted.
22 (5) That the Illinois horse racing industry is on the
23 verge of extinction due to fierce competition from fully
24 developed horse racing and gaming operations in other

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

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1 Section 5. The State Officials and Employees Ethics Act is
2amended 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
25regulatory or licensing decision that directly applied to the

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

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

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

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

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

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

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1or Treasurer of any other inspector general required or
2permitted by law. The Governor, Attorney General, Secretary of
3State, Comptroller, and Treasurer each may appoint an existing
4inspector general as the Executive Inspector General required
5by this Article, provided that such an inspector general is not
6prohibited by law, rule, jurisdiction, qualification, or
7interest from serving as the Executive Inspector General
8required by this Article. An appointing authority may not
9appoint a relative as an Executive Inspector General.
10 Each Executive Inspector General shall have the following
11qualifications:
12 (1) has not been convicted of any felony under the laws
13 of this State, another State, or the United States;
14 (2) has earned a baccalaureate degree from an
15 institution of higher education; and
16 (3) has 5 or more years of cumulative service (A) with
17 a federal, State, or local law enforcement agency, at least
18 2 years of which have been in a progressive investigatory
19 capacity; (B) as a federal, State, or local prosecutor; (C)
20 as a senior manager or executive of a federal, State, or
21 local agency; (D) as a member, an officer, or a State or
22 federal judge; or (E) representing any combination of (A)
23 through (D).
24 The term of each initial Executive Inspector General shall
25commence upon qualification and shall run through June 30,
262008. The initial appointments shall be made within 60 days

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

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

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

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

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1 services to families experiencing difficulty as a result of
2 problem or compulsive gambling.
3 (2) Promotion of public awareness regarding the
4 recognition and prevention of problem and compulsive
5 gambling.
6 (3) Facilitation, through in-service training and
7 other means, of the availability of effective assistance
8 programs for problem and compulsive gamblers.
9 (4) Conducting studies to identify adults and
10 juveniles in this State who are, or who are at risk of
11 becoming, problem or compulsive gamblers.
12 (b) Subject to appropriation, the Department shall either
13establish and maintain the program or contract with a private
14or public entity for the establishment and maintenance of the
15program. Subject to appropriation, either the Department or the
16private or public entity shall implement the toll-free
17telephone number, promote public awareness, and conduct
18in-service training concerning problem and compulsive
19gambling.
20 (c) Subject to appropriation, the Department shall produce
21and supply the signs specified in Section 10.7 of the Illinois
22Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
231975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
24of the Charitable Games Act, and Section 13.1 of the Illinois
25Riverboat Gambling Act.
26(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)

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

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1subsection (h) of this Section.
2 (b) By September 15, 2010, the Governor shall select a
3private manager for the total management of the Lottery with
4integrated functions, such as lottery game design, supply of
5goods and services, and advertising and as specified in this
6Section.
7 (c) Pursuant to the terms of this subsection, the
8Department shall endeavor to expeditiously terminate the
9existing contracts in support of the Lottery in effect on the
10effective date of this amendatory Act of the 96th General
11Assembly in connection with the selection of the private
12manager. As part of its obligation to terminate these contracts
13and select the private manager, the Department shall establish
14a mutually agreeable timetable to transfer the functions of
15existing contractors to the private manager so that existing
16Lottery operations are not materially diminished or impaired
17during the transition. To that end, the Department shall do the
18following:
19 (1) where such contracts contain a provision
20 authorizing termination upon notice, the Department shall
21 provide notice of termination to occur upon the mutually
22 agreed timetable for transfer of functions;
23 (2) upon the expiration of any initial term or renewal
24 term of the current Lottery contracts, the Department shall
25 not renew such contract for a term extending beyond the
26 mutually agreed timetable for transfer of functions; or

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1 (3) in the event any current contract provides for
2 termination of that contract upon the implementation of a
3 contract with the private manager, the Department shall
4 perform all necessary actions to terminate the contract on
5 the date that coincides with the mutually agreed timetable
6 for transfer of functions.
7 If the contracts to support the current operation of the
8Lottery in effect on the effective date of this amendatory Act
9of the 96th General Assembly are not subject to termination as
10provided for in this subsection (c), then the Department may
11include a provision in the contract with the private manager
12specifying a mutually agreeable methodology for incorporation.
13 (c-5) The Department shall include provisions in the
14management agreement whereby the private manager shall, for a
15fee, and pursuant to a contract negotiated with the Department
16(the "Employee Use Contract"), utilize the services of current
17Department employees to assist in the administration and
18operation of the Lottery. The Department shall be the employer
19of all such bargaining unit employees assigned to perform such
20work for the private manager, and such employees shall be State
21employees, as defined by the Personnel Code. Department
22employees shall operate under the same employment policies,
23rules, regulations, and procedures, as other employees of the
24Department. In addition, neither historical representation
25rights under the Illinois Public Labor Relations Act, nor
26existing collective bargaining agreements, shall be disturbed

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1by the management agreement with the private manager for the
2management of the Lottery.
3 (d) The management agreement with the private manager shall
4include all of the following:
5 (1) A term not to exceed 10 years, including any
6 renewals.
7 (2) A provision specifying that the Department:
8 (A) shall exercise actual control over all
9 significant business decisions;
10 (A-5) has the authority to direct or countermand
11 operating decisions by the private manager at any time;
12 (B) has ready access at any time to information
13 regarding Lottery operations;
14 (C) has the right to demand and receive information
15 from the private manager concerning any aspect of the
16 Lottery operations at any time; and
17 (D) retains ownership of all trade names,
18 trademarks, and intellectual property associated with
19 the Lottery.
20 (3) A provision imposing an affirmative duty on the
21 private manager to provide the Department with material
22 information and with any information the private manager
23 reasonably believes the Department would want to know to
24 enable the Department to conduct the Lottery.
25 (4) A provision requiring the private manager to
26 provide the Department with advance notice of any operating

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1 decision that bears significantly on the public interest,
2 including, but not limited to, decisions on the kinds of
3 games to be offered to the public and decisions affecting
4 the relative risk and reward of the games being offered, so
5 the Department has a reasonable opportunity to evaluate and
6 countermand that decision.
7 (5) A provision providing for compensation of the
8 private manager that may consist of, among other things, a
9 fee for services and a performance based bonus as
10 consideration for managing the Lottery, including terms
11 that may provide the private manager with an increase in
12 compensation if Lottery revenues grow by a specified
13 percentage in a given year.
14 (6) (Blank).
15 (7) A provision requiring the deposit of all Lottery
16 proceeds to be deposited into the State Lottery Fund except
17 as otherwise provided in Section 20 of this Act.
18 (8) A provision requiring the private manager to locate
19 its principal office within the State.
20 (8-5) A provision encouraging that at least 20% of the
21 cost of contracts entered into for goods and services by
22 the private manager in connection with its management of
23 the Lottery, other than contracts with sales agents or
24 technical advisors, be awarded to businesses that are a
25 minority owned business, a female owned business, or a
26 business owned by a person with disability, as those terms

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1 are defined in the Business Enterprise for Minorities,
2 Females, and Persons with Disabilities Act.
3 (9) A requirement that so long as the private manager
4 complies with all the conditions of the agreement under the
5 oversight of the Department, the private manager shall have
6 the following duties and obligations with respect to the
7 management of the Lottery:
8 (A) The right to use equipment and other assets
9 used in the operation of the Lottery.
10 (B) The rights and obligations under contracts
11 with retailers and vendors.
12 (C) The implementation of a comprehensive security
13 program by the private manager.
14 (D) The implementation of a comprehensive system
15 of internal audits.
16 (E) The implementation of a program by the private
17 manager to curb compulsive gambling by persons playing
18 the Lottery.
19 (F) A system for determining (i) the type of
20 Lottery games, (ii) the method of selecting winning
21 tickets, (iii) the manner of payment of prizes to
22 holders of winning tickets, (iv) the frequency of
23 drawings of winning tickets, (v) the method to be used
24 in selling tickets, (vi) a system for verifying the
25 validity of tickets claimed to be winning tickets,
26 (vii) the basis upon which retailer commissions are

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1 established by the manager, and (viii) minimum
2 payouts.
3 (10) A requirement that advertising and promotion must
4 be consistent with Section 7.8a of this Act.
5 (11) A requirement that the private manager market the
6 Lottery to those residents who are new, infrequent, or
7 lapsed players of the Lottery, especially those who are
8 most likely to make regular purchases on the Internet as
9 permitted by law.
10 (12) A code of ethics for the private manager's
11 officers and employees.
12 (13) A requirement that the Department monitor and
13 oversee the private manager's practices and take action
14 that the Department considers appropriate to ensure that
15 the private manager is in compliance with the terms of the
16 management agreement, while allowing the manager, unless
17 specifically prohibited by law or the management
18 agreement, to negotiate and sign its own contracts with
19 vendors.
20 (14) A provision requiring the private manager to
21 periodically file, at least on an annual basis, appropriate
22 financial statements in a form and manner acceptable to the
23 Department.
24 (15) Cash reserves requirements.
25 (16) Procedural requirements for obtaining the prior
26 approval of the Department when a management agreement or

HB3564- 23 -LRB099 06481 MLM 31222 b
1 an interest in a management agreement is sold, assigned,
2 transferred, or pledged as collateral to secure financing.
3 (17) Grounds for the termination of the management
4 agreement by the Department or the private manager.
5 (18) Procedures for amendment of the agreement.
6 (19) A provision requiring the private manager to
7 engage in an open and competitive bidding process for any
8 procurement having a cost in excess of $50,000 that is not
9 a part of the private manager's final offer. The process
10 shall favor the selection of a vendor deemed to have
11 submitted a proposal that provides the Lottery with the
12 best overall value. The process shall not be subject to the
13 provisions of the Illinois Procurement Code, unless
14 specifically required by the management agreement.
15 (20) The transition of rights and obligations,
16 including any associated equipment or other assets used in
17 the operation of the Lottery, from the manager to any
18 successor manager of the lottery, including the
19 Department, following the termination of or foreclosure
20 upon the management agreement.
21 (21) Right of use of copyrights, trademarks, and
22 service marks held by the Department in the name of the
23 State. The agreement must provide that any use of them by
24 the manager shall only be for the purpose of fulfilling its
25 obligations under the management agreement during the term
26 of the agreement.

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1 (22) The disclosure of any information requested by the
2 Department to enable it to comply with the reporting
3 requirements and information requests provided for under
4 subsection (p) of this Section.
5 (e) Notwithstanding any other law to the contrary, the
6Department shall select a private manager through a competitive
7request for qualifications process consistent with Section
820-35 of the Illinois Procurement Code, which shall take into
9account:
10 (1) the offeror's ability to market the Lottery to
11 those residents who are new, infrequent, or lapsed players
12 of the Lottery, especially those who are most likely to
13 make regular purchases on the Internet;
14 (2) the offeror's ability to address the State's
15 concern with the social effects of gambling on those who
16 can least afford to do so;
17 (3) the offeror's ability to provide the most
18 successful management of the Lottery for the benefit of the
19 people of the State based on current and past business
20 practices or plans of the offeror; and
21 (4) the offeror's poor or inadequate past performance
22 in servicing, equipping, operating or managing a lottery on
23 behalf of Illinois, another State or foreign government and
24 attracting persons who are not currently regular players of
25 a lottery.
26 (f) The Department may retain the services of an advisor or

HB3564- 25 -LRB099 06481 MLM 31222 b
1advisors with significant experience in financial services or
2the management, operation, and procurement of goods, services,
3and equipment for a government-run lottery to assist in the
4preparation of the terms of the request for qualifications and
5selection of the private manager. Any prospective advisor
6seeking to provide services under this subsection (f) shall
7disclose any material business or financial relationship
8during the past 3 years with any potential offeror, or with a
9contractor or subcontractor presently providing goods,
10services, or equipment to the Department to support the
11Lottery. The Department shall evaluate the material business or
12financial relationship of each prospective advisor. The
13Department shall not select any prospective advisor with a
14substantial business or financial relationship that the
15Department deems to impair the objectivity of the services to
16be provided by the prospective advisor. During the course of
17the advisor's engagement by the Department, and for a period of
18one year thereafter, the advisor shall not enter into any
19business or financial relationship with any offeror or any
20vendor identified to assist an offeror in performing its
21obligations under the management agreement. Any advisor
22retained by the Department shall be disqualified from being an
23offeror. The Department shall not include terms in the request
24for qualifications that provide a material advantage whether
25directly or indirectly to any potential offeror, or any
26contractor or subcontractor presently providing goods,

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1services, or equipment to the Department to support the
2Lottery, including terms contained in previous responses to
3requests for proposals or qualifications submitted to
4Illinois, another State or foreign government when those terms
5are uniquely associated with a particular potential offeror,
6contractor, or subcontractor. The request for proposals
7offered by the Department on December 22, 2008 as
8"LOT08GAMESYS" and reference number "22016176" is declared
9void.
10 (g) The Department shall select at least 2 offerors as
11finalists to potentially serve as the private manager no later
12than August 9, 2010. Upon making preliminary selections, the
13Department shall schedule a public hearing on the finalists'
14proposals and provide public notice of the hearing at least 7
15calendar days before the hearing. The notice must include all
16of the following:
17 (1) The date, time, and place of the hearing.
18 (2) The subject matter of the hearing.
19 (3) A brief description of the management agreement to
20 be awarded.
21 (4) The identity of the offerors that have been
22 selected as finalists to serve as the private manager.
23 (5) The address and telephone number of the Department.
24 (h) At the public hearing, the Department shall (i) provide
25sufficient time for each finalist to present and explain its
26proposal to the Department and the Governor or the Governor's

HB3564- 27 -LRB099 06481 MLM 31222 b
1designee, including an opportunity to respond to questions
2posed by the Department, Governor, or designee and (ii) allow
3the public and non-selected offerors to comment on the
4presentations. The Governor or a designee shall attend the
5public hearing. After the public hearing, the Department shall
6have 14 calendar days to recommend to the Governor whether a
7management agreement should be entered into with a particular
8finalist. After reviewing the Department's recommendation, the
9Governor may accept or reject the Department's recommendation,
10and shall select a final offeror as the private manager by
11publication of a notice in the Illinois Procurement Bulletin on
12or before September 15, 2010. The Governor shall include in the
13notice a detailed explanation and the reasons why the final
14offeror is superior to other offerors and will provide
15management services in a manner that best achieves the
16objectives of this Section. The Governor shall also sign the
17management agreement with the private manager.
18 (i) Any action to contest the private manager selected by
19the Governor under this Section must be brought within 7
20calendar days after the publication of the notice of the
21designation of the private manager as provided in subsection
22(h) of this Section.
23 (j) The Lottery shall remain, for so long as a private
24manager manages the Lottery in accordance with provisions of
25this Act, a Lottery conducted by the State, and the State shall
26not be authorized to sell or transfer the Lottery to a third

HB3564- 28 -LRB099 06481 MLM 31222 b
1party.
2 (k) Any tangible personal property used exclusively in
3connection with the lottery that is owned by the Department and
4leased to the private manager shall be owned by the Department
5in the name of the State and shall be considered to be public
6property devoted to an essential public and governmental
7function.
8 (l) The Department may exercise any of its powers under
9this Section or any other law as necessary or desirable for the
10execution of the Department's powers under this Section.
11 (m) Neither this Section nor any management agreement
12entered into under this Section prohibits the General Assembly
13from authorizing forms of gambling that are not in direct
14competition with the Lottery. The forms of gambling authorized
15by this amendatory Act of the 99th General Assembly constitute
16authorized forms of gambling that are not in direct competition
17with the Lottery.
18 (n) The private manager shall be subject to a complete
19investigation in the third, seventh, and tenth years of the
20agreement (if the agreement is for a 10-year term) by the
21Department in cooperation with the Auditor General to determine
22whether the private manager has complied with this Section and
23the management agreement. The private manager shall bear the
24cost of an investigation or reinvestigation of the private
25manager under this subsection.
26 (o) The powers conferred by this Section are in addition

HB3564- 29 -LRB099 06481 MLM 31222 b
1and supplemental to the powers conferred by any other law. If
2any other law or rule is inconsistent with this Section,
3including, but not limited to, provisions of the Illinois
4Procurement Code, then this Section controls as to any
5management agreement entered into under this Section. This
6Section and any rules adopted under this Section contain full
7and complete authority for a management agreement between the
8Department and a private manager. No law, procedure,
9proceeding, publication, notice, consent, approval, order, or
10act by the Department or any other officer, Department, agency,
11or instrumentality of the State or any political subdivision is
12required for the Department to enter into a management
13agreement under this Section. This Section contains full and
14complete authority for the Department to approve any contracts
15entered into by a private manager with a vendor providing
16goods, services, or both goods and services to the private
17manager under the terms of the management agreement, including
18subcontractors of such vendors.
19 Upon receipt of a written request from the Chief
20Procurement Officer, the Department shall provide to the Chief
21Procurement Officer a complete and un-redacted copy of the
22management agreement or any contract that is subject to the
23Department's approval authority under this subsection (o). The
24Department shall provide a copy of the agreement or contract to
25the Chief Procurement Officer in the time specified by the
26Chief Procurement Officer in his or her written request, but no

HB3564- 30 -LRB099 06481 MLM 31222 b
1later than 5 business days after the request is received by the
2Department. The Chief Procurement Officer must retain any
3portions of the management agreement or of any contract
4designated by the Department as confidential, proprietary, or
5trade secret information in complete confidence pursuant to
6subsection (g) of Section 7 of the Freedom of Information Act.
7The Department shall also provide the Chief Procurement Officer
8with reasonable advance written notice of any contract that is
9pending Department approval.
10 Notwithstanding any other provision of this Section to the
11contrary, the Chief Procurement Officer shall adopt
12administrative rules, including emergency rules, to establish
13a procurement process to select a successor private manager if
14a private management agreement has been terminated. The
15selection process shall at a minimum take into account the
16criteria set forth in items (1) through (4) of subsection (e)
17of this Section and may include provisions consistent with
18subsections (f), (g), (h), and (i) of this Section. The Chief
19Procurement Officer shall also implement and administer the
20adopted selection process upon the termination of a private
21management agreement. The Department, after the Chief
22Procurement Officer certifies that the procurement process has
23been followed in accordance with the rules adopted under this
24subsection (o), shall select a final offeror as the private
25manager and sign the management agreement with the private
26manager.

HB3564- 31 -LRB099 06481 MLM 31222 b
1 Except as provided in Sections 21.2, 21.5, 21.6, 21.7,
221.8, and 21.9, the Department shall distribute all proceeds of
3lottery tickets and shares sold in the following priority and
4manner:
5 (1) The payment of prizes and retailer bonuses.
6 (2) The payment of costs incurred in the operation and
7 administration of the Lottery, including the payment of
8 sums due to the private manager under the management
9 agreement with the Department.
10 (3) On the last day of each month or as soon thereafter
11 as possible, the State Comptroller shall direct and the
12 State Treasurer shall transfer from the State Lottery Fund
13 to the Common School Fund an amount that is equal to the
14 proceeds transferred in the corresponding month of fiscal
15 year 2009, as adjusted for inflation, to the Common School
16 Fund.
17 (4) On or before the last day of each fiscal year,
18 deposit any remaining proceeds, subject to payments under
19 items (1), (2), and (3) into the Capital Projects Fund each
20 fiscal year.
21 (p) The Department shall be subject to the following
22reporting and information request requirements:
23 (1) the Department shall submit written quarterly
24 reports to the Governor and the General Assembly on the
25 activities and actions of the private manager selected
26 under this Section;

HB3564- 32 -LRB099 06481 MLM 31222 b
1 (2) upon request of the Chief Procurement Officer, the
2 Department shall promptly produce information related to
3 the procurement activities of the Department and the
4 private manager requested by the Chief Procurement
5 Officer; the Chief Procurement Officer must retain
6 confidential, proprietary, or trade secret information
7 designated by the Department in complete confidence
8 pursuant to subsection (g) of Section 7 of the Freedom of
9 Information Act; and
10 (3) at least 30 days prior to the beginning of the
11 Department's fiscal year, the Department shall prepare an
12 annual written report on the activities of the private
13 manager selected under this Section and deliver that report
14 to the Governor and General Assembly.
15(Source: P.A. 97-464, eff. 8-19-11; 98-463, eff. 8-16-13;
1698-649, eff. 6-16-14.)
17 Section 20. The Department of Revenue Law of the Civil
18Administrative Code of Illinois is amended by changing Section
192505-305 as follows:
20 (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)
21 Sec. 2505-305. Investigators.
22 (a) The Department has the power to appoint investigators
23to conduct all investigations, searches, seizures, arrests,
24and other duties imposed under the provisions of any law

HB3564- 33 -LRB099 06481 MLM 31222 b
1administered by the Department. Except as provided in
2subsection (c), these investigators have and may exercise all
3the powers of peace officers solely for the purpose of
4enforcing taxing measures administered by the Department.
5 (b) The Director must authorize to each investigator
6employed under this Section and to any other employee of the
7Department exercising the powers of a peace officer a distinct
8badge that, on its face, (i) clearly states that the badge is
9authorized by the Department and (ii) contains a unique
10identifying number. No other badge shall be authorized by the
11Department.
12 (c) The Department may enter into agreements with the
13Illinois Gaming Board providing that investigators appointed
14under this Section shall exercise the peace officer powers set
15forth in paragraph (20.6) of subsection (c) of Section 5 of the
16Illinois Riverboat Gambling Act.
17(Source: P.A. 96-37, eff. 7-13-09.)
18 Section 25. The State Finance Act is amended by adding
19Sections 5.866 and 6z-101 and by changing Sections 5d and 6z-45
20as follows:
21 (30 ILCS 105/5.866 new)
22 Sec. 5.866. The Gaming Facilities Fee Revenue Fund.
23 (30 ILCS 105/5d) (from Ch. 127, par. 141d)

HB3564- 34 -LRB099 06481 MLM 31222 b
1 Sec. 5d. State Construction Account Fund.
2 (a) Except as provided in subsection (b) of this Section or
3by Section 5e of this Act, the State Construction Account Fund
4shall be used exclusively for the construction, reconstruction
5and maintenance of the State maintained highway system. Except
6as provided by Section 5e of this Act, none of the money
7deposited in the State Construction Account Fund shall be used
8to pay the cost of administering the Motor Fuel Tax Law as now
9or hereafter amended, nor be appropriated for use by the
10Department of Transportation to pay the cost of its operations
11or administration, nor be used in any manner for the payment of
12regular or contractual employees of the State, nor be
13transferred or allocated by the Comptroller and Treasurer or be
14otherwise used, except for the sole purpose of construction,
15reconstruction and maintenance of the State maintained highway
16system as the Illinois General Assembly shall provide by
17appropriation from this fund. Beginning with the month
18immediately following the effective date of this amendatory Act
19of 1985, investment income which is attributable to the
20investment of moneys of the State Construction Account Fund
21shall be retained in that fund for the uses specified in this
22Section.
23 (b) None of the money deposited into the State Construction
24Account Fund pursuant to subsection (c-40) of Section 13 of the
25Illinois Gambling Act shall be used for the construction,
26reconstruction, or maintenance of highways located within the

HB3564- 35 -LRB099 06481 MLM 31222 b
1City of Chicago.
2(Source: P.A. 84-431.)
3 (30 ILCS 105/6z-45)
4 Sec. 6z-45. The School Infrastructure Fund.
5 (a) The School Infrastructure Fund is created as a special
6fund in the State Treasury.
7 In addition to any other deposits authorized by law,
8beginning January 1, 2000, on the first day of each month, or
9as soon thereafter as may be practical, the State Treasurer and
10State Comptroller shall transfer the sum of $5,000,000 from the
11General Revenue Fund to the School Infrastructure Fund, except
12that, notwithstanding any other provision of law, and in
13addition to any other transfers that may be provided for by
14law, before June 30, 2012, the Comptroller and the Treasurer
15shall transfer $45,000,000 from the General Revenue Fund into
16the School Infrastructure Fund, and, for fiscal year 2013 only,
17the Treasurer and the Comptroller shall transfer $1,250,000
18from the General Revenue Fund to the School Infrastructure Fund
19on the first day of each month; provided, however, that no such
20transfers shall be made from July 1, 2001 through June 30,
212003.
22 (b) Subject to the transfer provisions set forth below,
23money in the School Infrastructure Fund shall, if and when the
24State of Illinois incurs any bonded indebtedness for the
25construction of school improvements under the School

HB3564- 36 -LRB099 06481 MLM 31222 b
1Construction Law, be set aside and used for the purpose of
2paying and discharging annually the principal and interest on
3that bonded indebtedness then due and payable, and for no other
4purpose.
5 In addition to other transfers to the General Obligation
6Bond Retirement and Interest Fund made pursuant to Section 15
7of the General Obligation Bond Act, upon each delivery of bonds
8issued for construction of school improvements under the School
9Construction Law, the State Comptroller shall compute and
10certify to the State Treasurer the total amount of principal
11of, interest on, and premium, if any, on such bonds during the
12then current and each succeeding fiscal year. With respect to
13the interest payable on variable rate bonds, such
14certifications shall be calculated at the maximum rate of
15interest that may be payable during the fiscal year, after
16taking into account any credits permitted in the related
17indenture or other instrument against the amount of such
18interest required to be appropriated for that period.
19 On or before the last day of each month, the State
20Treasurer and State Comptroller shall transfer from the School
21Infrastructure Fund to the General Obligation Bond Retirement
22and Interest Fund an amount sufficient to pay the aggregate of
23the principal of, interest on, and premium, if any, on the
24bonds payable on their next payment date, divided by the number
25of monthly transfers occurring between the last previous
26payment date (or the delivery date if no payment date has yet

HB3564- 37 -LRB099 06481 MLM 31222 b
1occurred) and the next succeeding payment date. Interest
2payable on variable rate bonds shall be calculated at the
3maximum rate of interest that may be payable for the relevant
4period, after taking into account any credits permitted in the
5related indenture or other instrument against the amount of
6such interest required to be appropriated for that period.
7Interest for which moneys have already been deposited into the
8capitalized interest account within the General Obligation
9Bond Retirement and Interest Fund shall not be included in the
10calculation of the amounts to be transferred under this
11subsection.
12 (b-5) The money deposited into the School Infrastructure
13Fund from transfers pursuant to subsections (c-30) and (c-35)
14of Section 13 of the Illinois Riverboat Gambling Act shall be
15applied, without further direction, as provided in subsection
16(b-3) of Section 5-35 of the School Construction Law.
17 (c) The surplus, if any, in the School Infrastructure Fund
18after payments made pursuant to subsections (b) and (b-5) of
19this Section shall, subject to appropriation, be used as
20follows:
21 First - to make 3 payments to the School Technology
22Revolving Loan Fund as follows:
23 Transfer of $30,000,000 in fiscal year 1999;
24 Transfer of $20,000,000 in fiscal year 2000; and
25 Transfer of $10,000,000 in fiscal year 2001.
26 Second - to pay the expenses of the State Board of

HB3564- 38 -LRB099 06481 MLM 31222 b
1Education and the Capital Development Board in administering
2programs under the School Construction Law, the total expenses
3not to exceed $1,200,000 in any fiscal year.
4 Third - to pay any amounts due for grants for school
5construction projects and debt service under the School
6Construction Law.
7 Fourth - to pay any amounts due for grants for school
8maintenance projects under the School Construction Law.
9(Source: P.A. 97-732, eff. 6-30-12; 98-18, eff. 6-7-13.)
10 (30 ILCS 105/6z-101 new)
11 Sec. 6z-101. The Gaming Facilities Fee Revenue Fund.
12 (a) The Gaming Facilities Fee Revenue Fund is created as a
13special fund in the State treasury.
14 (b) The revenues in the Fund shall be used, subject to
15appropriation, by the Comptroller for the purpose of (i)
16providing appropriations to the Illinois Gaming Board for the
17administration and enforcement of the Illinois Gambling Act,
18(ii) providing appropriations to the Illinois Racing Board for
19the administration and enforcement of the Illinois Horse Racing
20Act of 1975, and (iii) payment of vouchers that are outstanding
21for more than 60 days. Whenever practical, the Comptroller must
22prioritize voucher payments for expenses related to medical
23assistance under the Illinois Public Aid Code, the Children's
24Health Insurance Program Act, and the Covering ALL KIDS Health
25Insurance Act.

HB3564- 39 -LRB099 06481 MLM 31222 b
1 (c) The Fund shall consist of fee revenues received
2pursuant to subsection (e-10) of Section 7 and subsections (b),
3(c), and (d) of Section 7.7 of the Illinois Gambling Act. All
4interest earned on moneys in the Fund shall be deposited into
5the Fund.
6 (d) The Fund shall not be subject to administrative charges
7or chargebacks, including, but not limited to, those authorized
8under Section 8h of this Act.
9 Section 27. The General Obligation Bond Act is amended by
10changing Sections 2 and 3 as follows:
11 (30 ILCS 330/2) (from Ch. 127, par. 652)
12 Sec. 2. Authorization for Bonds. The State of Illinois is
13authorized to issue, sell and provide for the retirement of
14General Obligation Bonds of the State of Illinois for the
15categories and specific purposes expressed in Sections 2
16through 8 of this Act, in the total amount of $50,817,925,743
17$49,917,925,743.
18 The bonds authorized in this Section 2 and in Section 16 of
19this Act are herein called "Bonds".
20 Of the total amount of Bonds authorized in this Act, up to
21$2,200,000,000 in aggregate original principal amount may be
22issued and sold in accordance with the Baccalaureate Savings
23Act in the form of General Obligation College Savings Bonds.
24 Of the total amount of Bonds authorized in this Act, up to

HB3564- 40 -LRB099 06481 MLM 31222 b
1$300,000,000 in aggregate original principal amount may be
2issued and sold in accordance with the Retirement Savings Act
3in the form of General Obligation Retirement Savings Bonds.
4 Of the total amount of Bonds authorized in this Act, the
5additional $10,000,000,000 authorized by Public Act 93-2, the
6$3,466,000,000 authorized by Public Act 96-43, and the
7$4,096,348,300 authorized by Public Act 96-1497 shall be used
8solely as provided in Section 7.2.
9 The issuance and sale of Bonds pursuant to the General
10Obligation Bond Act is an economical and efficient method of
11financing the long-term capital needs of the State. This Act
12will permit the issuance of a multi-purpose General Obligation
13Bond with uniform terms and features. This will not only lower
14the cost of registration but also reduce the overall cost of
15issuing debt by improving the marketability of Illinois General
16Obligation Bonds.
17(Source: P.A. 97-333, eff. 8-12-11; 97-771, eff. 7-10-12;
1897-813, eff. 7-13-12; 98-94, eff. 7-17-13; 98-463, eff.
198-16-13; 98-781, eff. 7-22-14.)
20 (30 ILCS 330/3) (from Ch. 127, par. 653)
21 Sec. 3. Capital Facilities. The amount of $10,653,963,443
22$9,753,963,443 is authorized to be used for the acquisition,
23development, construction, reconstruction, improvement,
24financing, architectural planning and installation of capital
25facilities within the State, consisting of buildings,

HB3564- 41 -LRB099 06481 MLM 31222 b
1structures, durable equipment, land, interests in land, and the
2costs associated with the purchase and implementation of
3information technology, including but not limited to the
4purchase of hardware and software, for the following specific
5purposes:
6 (a) $3,393,228,000 for educational purposes by State
7 universities and colleges, the Illinois Community College
8 Board created by the Public Community College Act and for
9 grants to public community colleges as authorized by
10 Sections 5-11 and 5-12 of the Public Community College Act;
11 (b) $1,648,420,000 for correctional purposes at State
12 prison and correctional centers;
13 (c) $599,183,000 for open spaces, recreational and
14 conservation purposes and the protection of land;
15 (d) $751,317,000 for child care facilities, mental and
16 public health facilities, and facilities for the care of
17 disabled veterans and their spouses;
18 (e) $2,152,790,000 for use by the State, its
19 departments, authorities, public corporations, commissions
20 and agencies;
21 (f) $818,100 for cargo handling facilities at port
22 districts and for breakwaters, including harbor entrances,
23 at port districts in conjunction with facilities for small
24 boats and pleasure crafts;
25 (g) $297,177,074 for water resource management
26 projects;

HB3564- 42 -LRB099 06481 MLM 31222 b
1 (h) $16,940,269 for the provision of facilities for
2 food production research and related instructional and
3 public service activities at the State universities and
4 public community colleges;
5 (i) $36,000,000 for grants by the Secretary of State,
6 as State Librarian, for central library facilities
7 authorized by Section 8 of the Illinois Library System Act
8 and for grants by the Capital Development Board to units of
9 local government for public library facilities;
10 (j) $25,000,000 for the acquisition, development,
11 construction, reconstruction, improvement, financing,
12 architectural planning and installation of capital
13 facilities consisting of buildings, structures, durable
14 equipment and land for grants to counties, municipalities
15 or public building commissions with correctional
16 facilities that do not comply with the minimum standards of
17 the Department of Corrections under Section 3-15-2 of the
18 Unified Code of Corrections;
19 (k) $5,000,000 for grants in fiscal year 1988 by the
20 Department of Conservation for improvement or expansion of
21 aquarium facilities located on property owned by a park
22 district;
23 (l) $599,590,000 to State agencies for grants to local
24 governments for the acquisition, financing, architectural
25 planning, development, alteration, installation, and
26 construction of capital facilities consisting of

HB3564- 43 -LRB099 06481 MLM 31222 b
1 buildings, structures, durable equipment, and land; and
2 (m) $228,500,000 for the Illinois Open Land Trust
3 Program as defined by the Illinois Open Land Trust Act.
4 (n) $900,000,000 for the acquisition, development,
5 construction, reconstruction, improvement, financing,
6 architectural planning, and installation of capital
7 facilities consisting of buildings, structures, durable
8 equipment, and land for gambling operations authorized
9 under Section 7.3a of the Illinois Gambling Act.
10 The amounts authorized above for capital facilities may be
11used for the acquisition, installation, alteration,
12construction, or reconstruction of capital facilities and for
13the purchase of equipment for the purpose of major capital
14improvements which will reduce energy consumption in State
15buildings or facilities.
16(Source: P.A. 98-94, eff. 7-17-13.)
17 Section 30. The Illinois Income Tax Act is amended by
18changing Section 201 as follows:
19 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
20 Sec. 201. Tax Imposed.
21 (a) In general. A tax measured by net income is hereby
22imposed on every individual, corporation, trust and estate for
23each taxable year ending after July 31, 1969 on the privilege
24of earning or receiving income in or as a resident of this

HB3564- 44 -LRB099 06481 MLM 31222 b
1State. Such tax shall be in addition to all other occupation or
2privilege taxes imposed by this State or by any municipal
3corporation or political subdivision thereof.
4 (b) Rates. The tax imposed by subsection (a) of this
5Section shall be determined as follows, except as adjusted by
6subsection (d-1):
7 (1) In the case of an individual, trust or estate, for
8 taxable years ending prior to July 1, 1989, an amount equal
9 to 2 1/2% of the taxpayer's net income for the taxable
10 year.
11 (2) In the case of an individual, trust or estate, for
12 taxable years beginning prior to July 1, 1989 and ending
13 after June 30, 1989, an amount equal to the sum of (i) 2
14 1/2% of the taxpayer's net income for the period prior to
15 July 1, 1989, as calculated under Section 202.3, and (ii)
16 3% of the taxpayer's net income for the period after June
17 30, 1989, as calculated under Section 202.3.
18 (3) In the case of an individual, trust or estate, for
19 taxable years beginning after June 30, 1989, and ending
20 prior to January 1, 2011, an amount equal to 3% of the
21 taxpayer's net income for the taxable year.
22 (4) In the case of an individual, trust, or estate, for
23 taxable years beginning prior to January 1, 2011, and
24 ending after December 31, 2010, an amount equal to the sum
25 of (i) 3% of the taxpayer's net income for the period prior
26 to January 1, 2011, as calculated under Section 202.5, and

HB3564- 45 -LRB099 06481 MLM 31222 b
1 (ii) 5% of the taxpayer's net income for the period after
2 December 31, 2010, as calculated under Section 202.5.
3 (5) In the case of an individual, trust, or estate, for
4 taxable years beginning on or after January 1, 2011, and
5 ending prior to January 1, 2015, an amount equal to 5% of
6 the taxpayer's net income for the taxable year.
7 (5.1) In the case of an individual, trust, or estate,
8 for taxable years beginning prior to January 1, 2015, and
9 ending after December 31, 2014, an amount equal to the sum
10 of (i) 5% of the taxpayer's net income for the period prior
11 to January 1, 2015, as calculated under Section 202.5, and
12 (ii) 3.75% of the taxpayer's net income for the period
13 after December 31, 2014, as calculated under Section 202.5.
14 (5.2) In the case of an individual, trust, or estate,
15 for taxable years beginning on or after January 1, 2015,
16 and ending prior to January 1, 2025, an amount equal to
17 3.75% of the taxpayer's net income for the taxable year.
18 (5.3) In the case of an individual, trust, or estate,
19 for taxable years beginning prior to January 1, 2025, and
20 ending after December 31, 2024, an amount equal to the sum
21 of (i) 3.75% of the taxpayer's net income for the period
22 prior to January 1, 2025, as calculated under Section
23 202.5, and (ii) 3.25% of the taxpayer's net income for the
24 period after December 31, 2024, as calculated under Section
25 202.5.
26 (5.4) In the case of an individual, trust, or estate,

HB3564- 46 -LRB099 06481 MLM 31222 b
1 for taxable years beginning on or after January 1, 2025, an
2 amount equal to 3.25% of the taxpayer's net income for the
3 taxable year.
4 (6) In the case of a corporation, for taxable years
5 ending prior to July 1, 1989, an amount equal to 4% of the
6 taxpayer's net income for the taxable year.
7 (7) In the case of a corporation, for taxable years
8 beginning prior to July 1, 1989 and ending after June 30,
9 1989, an amount equal to the sum of (i) 4% of the
10 taxpayer's net income for the period prior to July 1, 1989,
11 as calculated under Section 202.3, and (ii) 4.8% of the
12 taxpayer's net income for the period after June 30, 1989,
13 as calculated under Section 202.3.
14 (8) In the case of a corporation, for taxable years
15 beginning after June 30, 1989, and ending prior to January
16 1, 2011, an amount equal to 4.8% of the taxpayer's net
17 income for the taxable year.
18 (9) In the case of a corporation, for taxable years
19 beginning prior to January 1, 2011, and ending after
20 December 31, 2010, an amount equal to the sum of (i) 4.8%
21 of the taxpayer's net income for the period prior to
22 January 1, 2011, as calculated under Section 202.5, and
23 (ii) 7% of the taxpayer's net income for the period after
24 December 31, 2010, as calculated under Section 202.5.
25 (10) In the case of a corporation, for taxable years
26 beginning on or after January 1, 2011, and ending prior to

HB3564- 47 -LRB099 06481 MLM 31222 b
1 January 1, 2015, an amount equal to 7% of the taxpayer's
2 net income for the taxable year.
3 (11) In the case of a corporation, for taxable years
4 beginning prior to January 1, 2015, and ending after
5 December 31, 2014, an amount equal to the sum of (i) 7% of
6 the taxpayer's net income for the period prior to January
7 1, 2015, as calculated under Section 202.5, and (ii) 5.25%
8 of the taxpayer's net income for the period after December
9 31, 2014, as calculated under Section 202.5.
10 (12) In the case of a corporation, for taxable years
11 beginning on or after January 1, 2015, and ending prior to
12 January 1, 2025, an amount equal to 5.25% of the taxpayer's
13 net income for the taxable year.
14 (13) In the case of a corporation, for taxable years
15 beginning prior to January 1, 2025, and ending after
16 December 31, 2024, an amount equal to the sum of (i) 5.25%
17 of the taxpayer's net income for the period prior to
18 January 1, 2025, as calculated under Section 202.5, and
19 (ii) 4.8% of the taxpayer's net income for the period after
20 December 31, 2024, as calculated under Section 202.5.
21 (14) In the case of a corporation, for taxable years
22 beginning on or after January 1, 2025, an amount equal to
23 4.8% of the taxpayer's net income for the taxable year.
24 The rates under this subsection (b) are subject to the
25provisions of Section 201.5.
26 (b-5) Surcharge; sale or exchange of assets, properties,

HB3564- 48 -LRB099 06481 MLM 31222 b
1and intangibles of electronic gaming licensees. For each of
2taxable years 2015 through 2023, a surcharge is imposed on all
3taxpayers on income arising from the sale or exchange of
4capital assets, depreciable business property, real property
5used in the trade or business, and Section 197 intangibles (i)
6of an organization licensee under the Illinois Horse Racing Act
7of 1975 and (ii) of an electronic gaming licensee under the
8Illinois Gambling Act. The amount of the surcharge is equal to
9the amount of federal income tax liability for the taxable year
10attributable to those sales and exchanges. The surcharge
11imposed shall not apply if:
12 (1) the electronic gaming license, organization
13 license, or race track property is transferred as a result
14 of any of the following:
15 (A) bankruptcy, a receivership, or a debt
16 adjustment initiated by or against the initial
17 licensee or the substantial owners of the initial
18 licensee;
19 (B) cancellation, revocation, or termination of
20 any such license by the Illinois Gaming Board or the
21 Illinois Racing Board;
22 (C) a determination by the Illinois Gaming Board
23 that transfer of the license is in the best interests
24 of Illinois gaming;
25 (D) the death of an owner of the equity interest in
26 a licensee;

HB3564- 49 -LRB099 06481 MLM 31222 b
1 (E) the acquisition of a controlling interest in
2 the stock or substantially all of the assets of a
3 publicly traded company;
4 (F) a transfer by a parent company to a wholly
5 owned subsidiary; or
6 (G) the transfer or sale to or by one person to
7 another person where both persons were initial owners
8 of the license when the license was issued;
9 (2) the controlling interest in the electronic gaming
10 license, organization license, or race track property is
11 transferred in a transaction to lineal descendants in which
12 no gain or loss is recognized or as a result of a
13 transaction in accordance with Section 351 of the Internal
14 Revenue Code in which no gain or loss is recognized; or
15 (3) live horse racing was not conducted in 2011 under a
16 license issued pursuant to the Illinois Horse Racing Act of
17 1975.
18 The transfer of an electronic gaming license, organization
19license, or race track property by a person other than the
20initial licensee to receive the electronic gaming license is
21not subject to a surcharge. The Department shall adopt rules
22necessary to implement and administer this subsection.
23 (c) Personal Property Tax Replacement Income Tax.
24Beginning on July 1, 1979 and thereafter, in addition to such
25income tax, there is also hereby imposed the Personal Property
26Tax Replacement Income Tax measured by net income on every

HB3564- 50 -LRB099 06481 MLM 31222 b
1corporation (including Subchapter S corporations), partnership
2and trust, for each taxable year ending after June 30, 1979.
3Such taxes are imposed on the privilege of earning or receiving
4income in or as a resident of this State. The Personal Property
5Tax Replacement Income Tax shall be in addition to the income
6tax imposed by subsections (a) and (b) of this Section and in
7addition to all other occupation or privilege taxes imposed by
8this State or by any municipal corporation or political
9subdivision thereof.
10 (d) Additional Personal Property Tax Replacement Income
11Tax Rates. The personal property tax replacement income tax
12imposed by this subsection and subsection (c) of this Section
13in the case of a corporation, other than a Subchapter S
14corporation and except as adjusted by subsection (d-1), shall
15be an additional amount equal to 2.85% of such taxpayer's net
16income for the taxable year, except that beginning on January
171, 1981, and thereafter, the rate of 2.85% specified in this
18subsection shall be reduced to 2.5%, and in the case of a
19partnership, trust or a Subchapter S corporation shall be an
20additional amount equal to 1.5% of such taxpayer's net income
21for the taxable year.
22 (d-1) Rate reduction for certain foreign insurers. In the
23case of a foreign insurer, as defined by Section 35A-5 of the
24Illinois Insurance Code, whose state or country of domicile
25imposes on insurers domiciled in Illinois a retaliatory tax
26(excluding any insurer whose premiums from reinsurance assumed

HB3564- 51 -LRB099 06481 MLM 31222 b
1are 50% or more of its total insurance premiums as determined
2under paragraph (2) of subsection (b) of Section 304, except
3that for purposes of this determination premiums from
4reinsurance do not include premiums from inter-affiliate
5reinsurance arrangements), beginning with taxable years ending
6on or after December 31, 1999, the sum of the rates of tax
7imposed by subsections (b) and (d) shall be reduced (but not
8increased) to the rate at which the total amount of tax imposed
9under this Act, net of all credits allowed under this Act,
10shall equal (i) the total amount of tax that would be imposed
11on the foreign insurer's net income allocable to Illinois for
12the taxable year by such foreign insurer's state or country of
13domicile if that net income were subject to all income taxes
14and taxes measured by net income imposed by such foreign
15insurer's state or country of domicile, net of all credits
16allowed or (ii) a rate of zero if no such tax is imposed on such
17income by the foreign insurer's state of domicile. For the
18purposes of this subsection (d-1), an inter-affiliate includes
19a mutual insurer under common management.
20 (1) For the purposes of subsection (d-1), in no event
21 shall the sum of the rates of tax imposed by subsections
22 (b) and (d) be reduced below the rate at which the sum of:
23 (A) the total amount of tax imposed on such foreign
24 insurer under this Act for a taxable year, net of all
25 credits allowed under this Act, plus
26 (B) the privilege tax imposed by Section 409 of the

HB3564- 52 -LRB099 06481 MLM 31222 b
1 Illinois Insurance Code, the fire insurance company
2 tax imposed by Section 12 of the Fire Investigation
3 Act, and the fire department taxes imposed under
4 Section 11-10-1 of the Illinois Municipal Code,
5 equals 1.25% for taxable years ending prior to December 31,
6 2003, or 1.75% for taxable years ending on or after
7 December 31, 2003, of the net taxable premiums written for
8 the taxable year, as described by subsection (1) of Section
9 409 of the Illinois Insurance Code. This paragraph will in
10 no event increase the rates imposed under subsections (b)
11 and (d).
12 (2) Any reduction in the rates of tax imposed by this
13 subsection shall be applied first against the rates imposed
14 by subsection (b) and only after the tax imposed by
15 subsection (a) net of all credits allowed under this
16 Section other than the credit allowed under subsection (i)
17 has been reduced to zero, against the rates imposed by
18 subsection (d).
19 This subsection (d-1) is exempt from the provisions of
20Section 250.
21 (e) Investment credit. A taxpayer shall be allowed a credit
22against the Personal Property Tax Replacement Income Tax for
23investment in qualified property.
24 (1) A taxpayer shall be allowed a credit equal to .5%
25 of the basis of qualified property placed in service during
26 the taxable year, provided such property is placed in

HB3564- 53 -LRB099 06481 MLM 31222 b
1 service on or after July 1, 1984. There shall be allowed an
2 additional credit equal to .5% of the basis of qualified
3 property placed in service during the taxable year,
4 provided such property is placed in service on or after
5 July 1, 1986, and the taxpayer's base employment within
6 Illinois has increased by 1% or more over the preceding
7 year as determined by the taxpayer's employment records
8 filed with the Illinois Department of Employment Security.
9 Taxpayers who are new to Illinois shall be deemed to have
10 met the 1% growth in base employment for the first year in
11 which they file employment records with the Illinois
12 Department of Employment Security. The provisions added to
13 this Section by Public Act 85-1200 (and restored by Public
14 Act 87-895) shall be construed as declaratory of existing
15 law and not as a new enactment. If, in any year, the
16 increase in base employment within Illinois over the
17 preceding year is less than 1%, the additional credit shall
18 be limited to that percentage times a fraction, the
19 numerator of which is .5% and the denominator of which is
20 1%, but shall not exceed .5%. The investment credit shall
21 not be allowed to the extent that it would reduce a
22 taxpayer's liability in any tax year below zero, nor may
23 any credit for qualified property be allowed for any year
24 other than the year in which the property was placed in
25 service in Illinois. For tax years ending on or after
26 December 31, 1987, and on or before December 31, 1988, the

HB3564- 54 -LRB099 06481 MLM 31222 b
1 credit shall be allowed for the tax year in which the
2 property is placed in service, or, if the amount of the
3 credit exceeds the tax liability for that year, whether it
4 exceeds the original liability or the liability as later
5 amended, such excess may be carried forward and applied to
6 the tax liability of the 5 taxable years following the
7 excess credit years if the taxpayer (i) makes investments
8 which cause the creation of a minimum of 2,000 full-time
9 equivalent jobs in Illinois, (ii) is located in an
10 enterprise zone established pursuant to the Illinois
11 Enterprise Zone Act and (iii) is certified by the
12 Department of Commerce and Community Affairs (now
13 Department of Commerce and Economic Opportunity) as
14 complying with the requirements specified in clause (i) and
15 (ii) by July 1, 1986. The Department of Commerce and
16 Community Affairs (now Department of Commerce and Economic
17 Opportunity) shall notify the Department of Revenue of all
18 such certifications immediately. For tax years ending
19 after December 31, 1988, the credit shall be allowed for
20 the tax year in which the property is placed in service,
21 or, if the amount of the credit exceeds the tax liability
22 for that year, whether it exceeds the original liability or
23 the liability as later amended, such excess may be carried
24 forward and applied to the tax liability of the 5 taxable
25 years following the excess credit years. The credit shall
26 be applied to the earliest year for which there is a

HB3564- 55 -LRB099 06481 MLM 31222 b
1 liability. If there is credit from more than one tax year
2 that is available to offset a liability, earlier credit
3 shall be applied first.
4 (2) The term "qualified property" means property
5 which:
6 (A) is tangible, whether new or used, including
7 buildings and structural components of buildings and
8 signs that are real property, but not including land or
9 improvements to real property that are not a structural
10 component of a building such as landscaping, sewer
11 lines, local access roads, fencing, parking lots, and
12 other appurtenances;
13 (B) is depreciable pursuant to Section 167 of the
14 Internal Revenue Code, except that "3-year property"
15 as defined in Section 168(c)(2)(A) of that Code is not
16 eligible for the credit provided by this subsection
17 (e);
18 (C) is acquired by purchase as defined in Section
19 179(d) of the Internal Revenue Code;
20 (D) is used in Illinois by a taxpayer who is
21 primarily engaged in manufacturing, or in mining coal
22 or fluorite, or in retailing, or was placed in service
23 on or after July 1, 2006 in a River Edge Redevelopment
24 Zone established pursuant to the River Edge
25 Redevelopment Zone Act; and
26 (E) has not previously been used in Illinois in

HB3564- 56 -LRB099 06481 MLM 31222 b
1 such a manner and by such a person as would qualify for
2 the credit provided by this subsection (e) or
3 subsection (f).
4 (3) For purposes of this subsection (e),
5 "manufacturing" means the material staging and production
6 of tangible personal property by procedures commonly
7 regarded as manufacturing, processing, fabrication, or
8 assembling which changes some existing material into new
9 shapes, new qualities, or new combinations. For purposes of
10 this subsection (e) the term "mining" shall have the same
11 meaning as the term "mining" in Section 613(c) of the
12 Internal Revenue Code. For purposes of this subsection (e),
13 the term "retailing" means the sale of tangible personal
14 property for use or consumption and not for resale, or
15 services rendered in conjunction with the sale of tangible
16 personal property for use or consumption and not for
17 resale. For purposes of this subsection (e), "tangible
18 personal property" has the same meaning as when that term
19 is used in the Retailers' Occupation Tax Act, and, for
20 taxable years ending after December 31, 2008, does not
21 include the generation, transmission, or distribution of
22 electricity.
23 (4) The basis of qualified property shall be the basis
24 used to compute the depreciation deduction for federal
25 income tax purposes.
26 (5) If the basis of the property for federal income tax

HB3564- 57 -LRB099 06481 MLM 31222 b
1 depreciation purposes is increased after it has been placed
2 in service in Illinois by the taxpayer, the amount of such
3 increase shall be deemed property placed in service on the
4 date of such increase in basis.
5 (6) The term "placed in service" shall have the same
6 meaning as under Section 46 of the Internal Revenue Code.
7 (7) If during any taxable year, any property ceases to
8 be qualified property in the hands of the taxpayer within
9 48 months after being placed in service, or the situs of
10 any qualified property is moved outside Illinois within 48
11 months after being placed in service, the Personal Property
12 Tax Replacement Income Tax for such taxable year shall be
13 increased. Such increase shall be determined by (i)
14 recomputing the investment credit which would have been
15 allowed for the year in which credit for such property was
16 originally allowed by eliminating such property from such
17 computation and, (ii) subtracting such recomputed credit
18 from the amount of credit previously allowed. For the
19 purposes of this paragraph (7), a reduction of the basis of
20 qualified property resulting from a redetermination of the
21 purchase price shall be deemed a disposition of qualified
22 property to the extent of such reduction.
23 (8) Unless the investment credit is extended by law,
24 the basis of qualified property shall not include costs
25 incurred after December 31, 2018, except for costs incurred
26 pursuant to a binding contract entered into on or before

HB3564- 58 -LRB099 06481 MLM 31222 b
1 December 31, 2018.
2 (9) Each taxable year ending before December 31, 2000,
3 a partnership may elect to pass through to its partners the
4 credits to which the partnership is entitled under this
5 subsection (e) for the taxable year. A partner may use the
6 credit allocated to him or her under this paragraph only
7 against the tax imposed in subsections (c) and (d) of this
8 Section. If the partnership makes that election, those
9 credits shall be allocated among the partners in the
10 partnership in accordance with the rules set forth in
11 Section 704(b) of the Internal Revenue Code, and the rules
12 promulgated under that Section, and the allocated amount of
13 the credits shall be allowed to the partners for that
14 taxable year. The partnership shall make this election on
15 its Personal Property Tax Replacement Income Tax return for
16 that taxable year. The election to pass through the credits
17 shall be irrevocable.
18 For taxable years ending on or after December 31, 2000,
19 a partner that qualifies its partnership for a subtraction
20 under subparagraph (I) of paragraph (2) of subsection (d)
21 of Section 203 or a shareholder that qualifies a Subchapter
22 S corporation for a subtraction under subparagraph (S) of
23 paragraph (2) of subsection (b) of Section 203 shall be
24 allowed a credit under this subsection (e) equal to its
25 share of the credit earned under this subsection (e) during
26 the taxable year by the partnership or Subchapter S

HB3564- 59 -LRB099 06481 MLM 31222 b
1 corporation, determined in accordance with the
2 determination of income and distributive share of income
3 under Sections 702 and 704 and Subchapter S of the Internal
4 Revenue Code. This paragraph is exempt from the provisions
5 of Section 250.
6 (f) Investment credit; Enterprise Zone; River Edge
7Redevelopment Zone.
8 (1) A taxpayer shall be allowed a credit against the
9 tax imposed by subsections (a) and (b) of this Section for
10 investment in qualified property which is placed in service
11 in an Enterprise Zone created pursuant to the Illinois
12 Enterprise Zone Act or, for property placed in service on
13 or after July 1, 2006, a River Edge Redevelopment Zone
14 established pursuant to the River Edge Redevelopment Zone
15 Act. For partners, shareholders of Subchapter S
16 corporations, and owners of limited liability companies,
17 if the liability company is treated as a partnership for
18 purposes of federal and State income taxation, there shall
19 be allowed a credit under this subsection (f) to be
20 determined in accordance with the determination of income
21 and distributive share of income under Sections 702 and 704
22 and Subchapter S of the Internal Revenue Code. The credit
23 shall be .5% of the basis for such property. The credit
24 shall be available only in the taxable year in which the
25 property is placed in service in the Enterprise Zone or
26 River Edge Redevelopment Zone and shall not be allowed to

HB3564- 60 -LRB099 06481 MLM 31222 b
1 the extent that it would reduce a taxpayer's liability for
2 the tax imposed by subsections (a) and (b) of this Section
3 to below zero. For tax years ending on or after December
4 31, 1985, the credit shall be allowed for the tax year in
5 which the property is placed in service, or, if the amount
6 of the credit exceeds the tax liability for that year,
7 whether it exceeds the original liability or the liability
8 as later amended, such excess may be carried forward and
9 applied to the tax liability of the 5 taxable years
10 following the excess credit year. The credit shall be
11 applied to the earliest year for which there is a
12 liability. If there is credit from more than one tax year
13 that is available to offset a liability, the credit
14 accruing first in time shall be applied first.
15 (2) The term qualified property means property which:
16 (A) is tangible, whether new or used, including
17 buildings and structural components of buildings;
18 (B) is depreciable pursuant to Section 167 of the
19 Internal Revenue Code, except that "3-year property"
20 as defined in Section 168(c)(2)(A) of that Code is not
21 eligible for the credit provided by this subsection
22 (f);
23 (C) is acquired by purchase as defined in Section
24 179(d) of the Internal Revenue Code;
25 (D) is used in the Enterprise Zone or River Edge
26 Redevelopment Zone by the taxpayer; and

HB3564- 61 -LRB099 06481 MLM 31222 b
1 (E) has not been previously used in Illinois in
2 such a manner and by such a person as would qualify for
3 the credit provided by this subsection (f) or
4 subsection (e).
5 (3) The basis of qualified property shall be the basis
6 used to compute the depreciation deduction for federal
7 income tax purposes.
8 (4) If the basis of the property for federal income tax
9 depreciation purposes is increased after it has been placed
10 in service in the Enterprise Zone or River Edge
11 Redevelopment Zone by the taxpayer, the amount of such
12 increase shall be deemed property placed in service on the
13 date of such increase in basis.
14 (5) The term "placed in service" shall have the same
15 meaning as under Section 46 of the Internal Revenue Code.
16 (6) If during any taxable year, any property ceases to
17 be qualified property in the hands of the taxpayer within
18 48 months after being placed in service, or the situs of
19 any qualified property is moved outside the Enterprise Zone
20 or River Edge Redevelopment Zone within 48 months after
21 being placed in service, the tax imposed under subsections
22 (a) and (b) of this Section for such taxable year shall be
23 increased. Such increase shall be determined by (i)
24 recomputing the investment credit which would have been
25 allowed for the year in which credit for such property was
26 originally allowed by eliminating such property from such

HB3564- 62 -LRB099 06481 MLM 31222 b
1 computation, and (ii) subtracting such recomputed credit
2 from the amount of credit previously allowed. For the
3 purposes of this paragraph (6), a reduction of the basis of
4 qualified property resulting from a redetermination of the
5 purchase price shall be deemed a disposition of qualified
6 property to the extent of such reduction.
7 (7) There shall be allowed an additional credit equal
8 to 0.5% of the basis of qualified property placed in
9 service during the taxable year in a River Edge
10 Redevelopment Zone, provided such property is placed in
11 service on or after July 1, 2006, and the taxpayer's base
12 employment within Illinois has increased by 1% or more over
13 the preceding year as determined by the taxpayer's
14 employment records filed with the Illinois Department of
15 Employment Security. Taxpayers who are new to Illinois
16 shall be deemed to have met the 1% growth in base
17 employment for the first year in which they file employment
18 records with the Illinois Department of Employment
19 Security. If, in any year, the increase in base employment
20 within Illinois over the preceding year is less than 1%,
21 the additional credit shall be limited to that percentage
22 times a fraction, the numerator of which is 0.5% and the
23 denominator of which is 1%, but shall not exceed 0.5%.
24 (g) (Blank).
25 (h) Investment credit; High Impact Business.
26 (1) Subject to subsections (b) and (b-5) of Section 5.5

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

HB3564- 64 -LRB099 06481 MLM 31222 b
1 and (b) of this Section to below zero. For tax years ending
2 on or after December 31, 1987, the credit shall be allowed
3 for the tax year in which the property is placed in
4 service, or, if the amount of the credit exceeds the tax
5 liability for that year, whether it exceeds the original
6 liability or the liability as later amended, such excess
7 may be carried forward and applied to the tax liability of
8 the 5 taxable years following the excess credit year. The
9 credit shall be applied to the earliest year for which
10 there is a liability. If there is credit from more than one
11 tax year that is available to offset a liability, the
12 credit accruing first in time shall be applied first.
13 Changes made in this subdivision (h)(1) by Public Act
14 88-670 restore changes made by Public Act 85-1182 and
15 reflect existing law.
16 (2) The term qualified property means property which:
17 (A) is tangible, whether new or used, including
18 buildings and structural components of buildings;
19 (B) is depreciable pursuant to Section 167 of the
20 Internal Revenue Code, except that "3-year property"
21 as defined in Section 168(c)(2)(A) of that Code is not
22 eligible for the credit provided by this subsection
23 (h);
24 (C) is acquired by purchase as defined in Section
25 179(d) of the Internal Revenue Code; and
26 (D) is not eligible for the Enterprise Zone

HB3564- 65 -LRB099 06481 MLM 31222 b
1 Investment Credit provided by subsection (f) of this
2 Section.
3 (3) The basis of qualified property shall be the basis
4 used to compute the depreciation deduction for federal
5 income tax purposes.
6 (4) If the basis of the property for federal income tax
7 depreciation purposes is increased after it has been placed
8 in service in a federally designated Foreign Trade Zone or
9 Sub-Zone located in Illinois by the taxpayer, the amount of
10 such increase shall be deemed property placed in service on
11 the date of such increase in basis.
12 (5) The term "placed in service" shall have the same
13 meaning as under Section 46 of the Internal Revenue Code.
14 (6) If during any taxable year ending on or before
15 December 31, 1996, any property ceases to be qualified
16 property in the hands of the taxpayer within 48 months
17 after being placed in service, or the situs of any
18 qualified property is moved outside Illinois within 48
19 months after being placed in service, the tax imposed under
20 subsections (a) and (b) of this Section for such taxable
21 year shall be increased. Such increase shall be determined
22 by (i) recomputing the investment credit which would have
23 been allowed for the year in which credit for such property
24 was originally allowed by eliminating such property from
25 such computation, and (ii) subtracting such recomputed
26 credit from the amount of credit previously allowed. For

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1 the purposes of this paragraph (6), a reduction of the
2 basis of qualified property resulting from a
3 redetermination of the purchase price shall be deemed a
4 disposition of qualified property to the extent of such
5 reduction.
6 (7) Beginning with tax years ending after December 31,
7 1996, if a taxpayer qualifies for the credit under this
8 subsection (h) and thereby is granted a tax abatement and
9 the taxpayer relocates its entire facility in violation of
10 the explicit terms and length of the contract under Section
11 18-183 of the Property Tax Code, the tax imposed under
12 subsections (a) and (b) of this Section shall be increased
13 for the taxable year in which the taxpayer relocated its
14 facility by an amount equal to the amount of credit
15 received by the taxpayer under this subsection (h).
16 (i) Credit for Personal Property Tax Replacement Income
17Tax. For tax years ending prior to December 31, 2003, a credit
18shall be allowed against the tax imposed by subsections (a) and
19(b) of this Section for the tax imposed by subsections (c) and
20(d) of this Section. This credit shall be computed by
21multiplying the tax imposed by subsections (c) and (d) of this
22Section by a fraction, the numerator of which is base income
23allocable to Illinois and the denominator of which is Illinois
24base income, and further multiplying the product by the tax
25rate imposed by subsections (a) and (b) of this Section.
26 Any credit earned on or after December 31, 1986 under this

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1subsection which is unused in the year the credit is computed
2because it exceeds the tax liability imposed by subsections (a)
3and (b) for that year (whether it exceeds the original
4liability or the liability as later amended) may be carried
5forward and applied to the tax liability imposed by subsections
6(a) and (b) of the 5 taxable years following the excess credit
7year, provided that no credit may be carried forward to any
8year ending on or after December 31, 2003. This credit shall be
9applied first to the earliest year for which there is a
10liability. If there is a credit under this subsection from more
11than one tax year that is available to offset a liability the
12earliest credit arising under this subsection shall be applied
13first.
14 If, during any taxable year ending on or after December 31,
151986, the tax imposed by subsections (c) and (d) of this
16Section for which a taxpayer has claimed a credit under this
17subsection (i) is reduced, the amount of credit for such tax
18shall also be reduced. Such reduction shall be determined by
19recomputing the credit to take into account the reduced tax
20imposed by subsections (c) and (d). If any portion of the
21reduced amount of credit has been carried to a different
22taxable year, an amended return shall be filed for such taxable
23year to reduce the amount of credit claimed.
24 (j) Training expense credit. Beginning with tax years
25ending on or after December 31, 1986 and prior to December 31,
262003, a taxpayer shall be allowed a credit against the tax

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1imposed by subsections (a) and (b) under this Section for all
2amounts paid or accrued, on behalf of all persons employed by
3the taxpayer in Illinois or Illinois residents employed outside
4of Illinois by a taxpayer, for educational or vocational
5training in semi-technical or technical fields or semi-skilled
6or skilled fields, which were deducted from gross income in the
7computation of taxable income. The credit against the tax
8imposed by subsections (a) and (b) shall be 1.6% of such
9training expenses. For partners, shareholders of subchapter S
10corporations, and owners of limited liability companies, if the
11liability company is treated as a partnership for purposes of
12federal and State income taxation, there shall be allowed a
13credit under this subsection (j) to be determined in accordance
14with the determination of income and distributive share of
15income under Sections 702 and 704 and subchapter S of the
16Internal Revenue Code.
17 Any credit allowed under this subsection which is unused in
18the year the credit is earned may be carried forward to each of
19the 5 taxable years following the year for which the credit is
20first computed until it is used. This credit shall be applied
21first to the earliest year for which there is a liability. If
22there is a credit under this subsection from more than one tax
23year that is available to offset a liability the earliest
24credit arising under this subsection shall be applied first. No
25carryforward credit may be claimed in any tax year ending on or
26after December 31, 2003.

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1 (k) Research and development credit. For tax years ending
2after July 1, 1990 and prior to December 31, 2003, and
3beginning again for tax years ending on or after December 31,
42004, and ending prior to January 1, 2016, a taxpayer shall be
5allowed a credit against the tax imposed by subsections (a) and
6(b) of this Section for increasing research activities in this
7State. The credit allowed against the tax imposed by
8subsections (a) and (b) shall be equal to 6 1/2% of the
9qualifying expenditures for increasing research activities in
10this State. For partners, shareholders of subchapter S
11corporations, and owners of limited liability companies, if the
12liability company is treated as a partnership for purposes of
13federal and State income taxation, there shall be allowed a
14credit under this subsection to be determined in accordance
15with the determination of income and distributive share of
16income under Sections 702 and 704 and subchapter S of the
17Internal Revenue Code.
18 For purposes of this subsection, "qualifying expenditures"
19means the qualifying expenditures as defined for the federal
20credit for increasing research activities which would be
21allowable under Section 41 of the Internal Revenue Code and
22which are conducted in this State, "qualifying expenditures for
23increasing research activities in this State" means the excess
24of qualifying expenditures for the taxable year in which
25incurred over qualifying expenditures for the base period,
26"qualifying expenditures for the base period" means the average

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1of the qualifying expenditures for each year in the base
2period, and "base period" means the 3 taxable years immediately
3preceding the taxable year for which the determination is being
4made.
5 Any credit in excess of the tax liability for the taxable
6year may be carried forward. A taxpayer may elect to have the
7unused credit shown on its final completed return carried over
8as a credit against the tax liability for the following 5
9taxable years or until it has been fully used, whichever occurs
10first; provided that no credit earned in a tax year ending
11prior to December 31, 2003 may be carried forward to any year
12ending on or after December 31, 2003.
13 If an unused credit is carried forward to a given year from
142 or more earlier years, that credit arising in the earliest
15year will be applied first against the tax liability for the
16given year. If a tax liability for the given year still
17remains, the credit from the next earliest year will then be
18applied, and so on, until all credits have been used or no tax
19liability for the given year remains. Any remaining unused
20credit or credits then will be carried forward to the next
21following year in which a tax liability is incurred, except
22that no credit can be carried forward to a year which is more
23than 5 years after the year in which the expense for which the
24credit is given was incurred.
25 No inference shall be drawn from this amendatory Act of the
2691st General Assembly in construing this Section for taxable

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1years beginning before January 1, 1999.
2 (l) Environmental Remediation Tax Credit.
3 (i) For tax years ending after December 31, 1997 and on
4 or before December 31, 2001, a taxpayer shall be allowed a
5 credit against the tax imposed by subsections (a) and (b)
6 of this Section for certain amounts paid for unreimbursed
7 eligible remediation costs, as specified in this
8 subsection. For purposes of this Section, "unreimbursed
9 eligible remediation costs" means costs approved by the
10 Illinois Environmental Protection Agency ("Agency") under
11 Section 58.14 of the Environmental Protection Act that were
12 paid in performing environmental remediation at a site for
13 which a No Further Remediation Letter was issued by the
14 Agency and recorded under Section 58.10 of the
15 Environmental Protection Act. The credit must be claimed
16 for the taxable year in which Agency approval of the
17 eligible remediation costs is granted. The credit is not
18 available to any taxpayer if the taxpayer or any related
19 party caused or contributed to, in any material respect, a
20 release of regulated substances on, in, or under the site
21 that was identified and addressed by the remedial action
22 pursuant to the Site Remediation Program of the
23 Environmental Protection Act. After the Pollution Control
24 Board rules are adopted pursuant to the Illinois
25 Administrative Procedure Act for the administration and
26 enforcement of Section 58.9 of the Environmental

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

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

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1ending after December 31, 1999, a taxpayer who is the custodian
2of one or more qualifying pupils shall be allowed a credit
3against the tax imposed by subsections (a) and (b) of this
4Section for qualified education expenses incurred on behalf of
5the qualifying pupils. The credit shall be equal to 25% of
6qualified education expenses, but in no event may the total
7credit under this subsection claimed by a family that is the
8custodian of qualifying pupils exceed $500. In no event shall a
9credit under this subsection reduce the taxpayer's liability
10under this Act to less than zero. This subsection is exempt
11from the provisions of Section 250 of this Act.
12 For purposes of this subsection:
13 "Qualifying pupils" means individuals who (i) are
14residents of the State of Illinois, (ii) are under the age of
1521 at the close of the school year for which a credit is
16sought, and (iii) during the school year for which a credit is
17sought were full-time pupils enrolled in a kindergarten through
18twelfth grade education program at any school, as defined in
19this subsection.
20 "Qualified education expense" means the amount incurred on
21behalf of a qualifying pupil in excess of $250 for tuition,
22book fees, and lab fees at the school in which the pupil is
23enrolled during the regular school year.
24 "School" means any public or nonpublic elementary or
25secondary school in Illinois that is in compliance with Title
26VI of the Civil Rights Act of 1964 and attendance at which

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1satisfies the requirements of Section 26-1 of the School Code,
2except that nothing shall be construed to require a child to
3attend any particular public or nonpublic school to qualify for
4the credit under this Section.
5 "Custodian" means, with respect to qualifying pupils, an
6Illinois resident who is a parent, the parents, a legal
7guardian, or the legal guardians of the qualifying pupils.
8 (n) River Edge Redevelopment Zone site remediation tax
9credit.
10 (i) For tax years ending on or after December 31, 2006,
11 a taxpayer shall be allowed a credit against the tax
12 imposed by subsections (a) and (b) of this Section for
13 certain amounts paid for unreimbursed eligible remediation
14 costs, as specified in this subsection. For purposes of
15 this Section, "unreimbursed eligible remediation costs"
16 means costs approved by the Illinois Environmental
17 Protection Agency ("Agency") under Section 58.14a of the
18 Environmental Protection Act that were paid in performing
19 environmental remediation at a site within a River Edge
20 Redevelopment Zone for which a No Further Remediation
21 Letter was issued by the Agency and recorded under Section
22 58.10 of the Environmental Protection Act. The credit must
23 be claimed for the taxable year in which Agency approval of
24 the eligible remediation costs is granted. The credit is
25 not available to any taxpayer if the taxpayer or any
26 related party caused or contributed to, in any material

HB3564- 76 -LRB099 06481 MLM 31222 b
1 respect, a release of regulated substances on, in, or under
2 the site that was identified and addressed by the remedial
3 action pursuant to the Site Remediation Program of the
4 Environmental Protection Act. Determinations as to credit
5 availability for purposes of this Section shall be made
6 consistent with rules adopted by the Pollution Control
7 Board pursuant to the Illinois Administrative Procedure
8 Act for the administration and enforcement of Section 58.9
9 of the Environmental Protection Act. For purposes of this
10 Section, "taxpayer" includes a person whose tax attributes
11 the taxpayer has succeeded to under Section 381 of the
12 Internal Revenue Code and "related party" includes the
13 persons disallowed a deduction for losses by paragraphs
14 (b), (c), and (f)(1) of Section 267 of the Internal Revenue
15 Code by virtue of being a related taxpayer, as well as any
16 of its partners. The credit allowed against the tax imposed
17 by subsections (a) and (b) shall be equal to 25% of the
18 unreimbursed eligible remediation costs in excess of
19 $100,000 per site.
20 (ii) A credit allowed under this subsection that is
21 unused in the year the credit is earned may be carried
22 forward to each of the 5 taxable years following the year
23 for which the credit is first earned until it is used. This
24 credit shall be applied first to the earliest year for
25 which there is a liability. If there is a credit under this
26 subsection from more than one tax year that is available to

HB3564- 77 -LRB099 06481 MLM 31222 b
1 offset a liability, the earliest credit arising under this
2 subsection shall be applied first. A credit allowed under
3 this subsection may be sold to a buyer as part of a sale of
4 all or part of the remediation site for which the credit
5 was granted. The purchaser of a remediation site and the
6 tax credit shall succeed to the unused credit and remaining
7 carry-forward period of the seller. To perfect the
8 transfer, the assignor shall record the transfer in the
9 chain of title for the site and provide written notice to
10 the Director of the Illinois Department of Revenue of the
11 assignor's intent to sell the remediation site and the
12 amount of the tax credit to be transferred as a portion of
13 the sale. In no event may a credit be transferred to any
14 taxpayer if the taxpayer or a related party would not be
15 eligible under the provisions of subsection (i).
16 (iii) For purposes of this Section, the term "site"
17 shall have the same meaning as under Section 58.2 of the
18 Environmental Protection Act.
19 (o) For each of taxable years during the Compassionate Use
20of Medical Cannabis Pilot Program, a surcharge is imposed on
21all taxpayers on income arising from the sale or exchange of
22capital assets, depreciable business property, real property
23used in the trade or business, and Section 197 intangibles of
24an organization registrant under the Compassionate Use of
25Medical Cannabis Pilot Program Act. The amount of the surcharge
26is equal to the amount of federal income tax liability for the

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1taxable year attributable to those sales and exchanges. The
2surcharge imposed does not apply if:
3 (1) the medical cannabis cultivation center
4 registration, medical cannabis dispensary registration, or
5 the property of a registration is transferred as a result
6 of any of the following:
7 (A) bankruptcy, a receivership, or a debt
8 adjustment initiated by or against the initial
9 registration or the substantial owners of the initial
10 registration;
11 (B) cancellation, revocation, or termination of
12 any registration by the Illinois Department of Public
13 Health;
14 (C) a determination by the Illinois Department of
15 Public Health that transfer of the registration is in
16 the best interests of Illinois qualifying patients as
17 defined by the Compassionate Use of Medical Cannabis
18 Pilot Program Act;
19 (D) the death of an owner of the equity interest in
20 a registrant;
21 (E) the acquisition of a controlling interest in
22 the stock or substantially all of the assets of a
23 publicly traded company;
24 (F) a transfer by a parent company to a wholly
25 owned subsidiary; or
26 (G) the transfer or sale to or by one person to

HB3564- 79 -LRB099 06481 MLM 31222 b
1 another person where both persons were initial owners
2 of the registration when the registration was issued;
3 or
4 (2) the cannabis cultivation center registration,
5 medical cannabis dispensary registration, or the
6 controlling interest in a registrant's 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.
11(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
12eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,
13eff. 7-16-14.)
14 Section 35. The Joliet Regional Port District Act is
15amended by changing Section 5.1 as follows:
16 (70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)
17 Sec. 5.1. Riverboat and casino gambling. Notwithstanding
18any other provision of this Act, the District may not regulate
19the operation, conduct, or navigation of any riverboat gambling
20casino licensed under the Illinois Riverboat Gambling Act, and
21the District may not license, tax, or otherwise levy any
22assessment of any kind on any riverboat gambling casino
23licensed under the Illinois Riverboat Gambling Act. The General
24Assembly declares that the powers to regulate the operation,

HB3564- 80 -LRB099 06481 MLM 31222 b
1conduct, and navigation of riverboat gambling casinos and to
2license, tax, and levy assessments upon riverboat gambling
3casinos are exclusive powers of the State of Illinois and the
4Illinois Gaming Board as provided in the Illinois Riverboat
5Gambling Act.
6(Source: P.A. 87-1175.)
7 Section 40. The Consumer Installment Loan Act is amended by
8changing Section 12.5 as follows:
9 (205 ILCS 670/12.5)
10 Sec. 12.5. Limited purpose branch.
11 (a) Upon the written approval of the Director, a licensee
12may maintain a limited purpose branch for the sole purpose of
13making loans as permitted by this Act. A limited purpose branch
14may include an automatic loan machine. No other activity shall
15be conducted at the site, including but not limited to,
16accepting payments, servicing the accounts, or collections.
17 (b) The licensee must submit an application for a limited
18purpose branch to the Director on forms prescribed by the
19Director with an application fee of $300. The approval for the
20limited purpose branch must be renewed concurrently with the
21renewal of the licensee's license along with a renewal fee of
22$300 for the limited purpose branch.
23 (c) The books, accounts, records, and files of the limited
24purpose branch's transactions shall be maintained at the

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1licensee's licensed location. The licensee shall notify the
2Director of the licensed location at which the books, accounts,
3records, and files shall be maintained.
4 (d) The licensee shall prominently display at the limited
5purpose branch the address and telephone number of the
6licensee's licensed location.
7 (e) No other business shall be conducted at the site of the
8limited purpose branch unless authorized by the Director.
9 (f) The Director shall make and enforce reasonable rules
10for the conduct of a limited purpose branch.
11 (g) A limited purpose branch may not be located within
121,000 feet of a facility operated by an inter-track wagering
13licensee or an organization licensee subject to the Illinois
14Horse Racing Act of 1975, on a riverboat or in a casino subject
15to the Illinois Riverboat Gambling Act, or within 1,000 feet of
16the location at which the riverboat docks or within 1,000 feet
17of a casino.
18(Source: P.A. 90-437, eff. 1-1-98.)
19 Section 45. The Illinois Horse Racing Act of 1975 is
20amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 19, 20,
2121, 24, 25, 26, 27, 30, 30.5, 31, 31.1, 32.1, 36, 40, 54, and
2254.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
2334.3, 39.2, and 56 as follows:
24 (230 ILCS 5/1.2)

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1 Sec. 1.2. Legislative intent. This Act is intended to
2benefit the people of the State of Illinois by encouraging the
3breeding and production of race horses, assisting economic
4development and promoting Illinois tourism. The General
5Assembly finds and declares it to be the public policy of the
6State of Illinois to:
7 (a) support and enhance Illinois' horse racing industry,
8which is a significant component within the agribusiness
9industry;
10 (b) ensure that Illinois' horse racing industry remains
11competitive with neighboring states;
12 (c) stimulate growth within Illinois' horse racing
13industry, thereby encouraging new investment and development
14to produce additional tax revenues and to create additional
15jobs;
16 (d) promote the further growth of tourism;
17 (e) encourage the breeding of thoroughbred and
18standardbred horses in this State; and
19 (f) ensure that public confidence and trust in the
20credibility and integrity of racing operations and the
21regulatory process is maintained.
22(Source: P.A. 91-40, eff. 6-25-99.)
23 (230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)
24 Sec. 3.11. "Organization Licensee" means any person
25receiving an organization license from the Board to conduct a

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

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1gaming patrons.
2 (230 ILCS 5/3.33 new)
3 Sec. 3.33. Electronic gaming. "Electronic gaming" means
4slot machine gambling, video game of chance gambling, or
5gambling with electronic gambling games as defined in the
6Illinois Gambling Act or defined by the Illinois Gaming Board
7that is conducted at a race track pursuant to an electronic
8gaming license.
9 (230 ILCS 5/3.35 new)
10 Sec. 3.35. Electronic gaming license. "Electronic gaming
11license" means a license issued by the Illinois Gaming Board
12under Section 7.7 of the Illinois Gambling Act authorizing
13electronic gaming at an electronic gaming facility.
14 (230 ILCS 5/3.36 new)
15 Sec. 3.36. Electronic gaming facility. "Electronic gaming
16facility" means that portion of an organization licensee's race
17track facility at which electronic gaming is conducted.
18 (230 ILCS 5/6) (from Ch. 8, par. 37-6)
19 Sec. 6. Restrictions on Board members.
20 (a) No person shall be appointed a member of the Board or
21continue to be a member of the Board if the person or any
22member of their immediate family is a member of the Board of

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

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

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1appearance of a conflict of interest.
2 (e) Board members and employees may not accept any gift,
3gratuity, service, compensation, travel, lodging, or thing of
4value, with the exception of unsolicited items of an incidental
5nature, from any person, corporation, limited liability
6company, or entity doing business with the Board.
7 (f) A Board member or employee shall not use or attempt to
8use his or her official position to secure, or attempt to
9secure, any privilege, advantage, favor, or influence for
10himself or herself or others. No Board member or employee,
11within a period of one year immediately preceding nomination by
12the Governor or employment, shall have been employed by or
13received compensation or fees for services from a person or
14entity, or its parent or affiliate, that has engaged in
15business with the Board, a licensee under this Act, or a
16licensee under the Illinois Gambling Act. In addition, all
17Board members and employees are subject to the restrictions set
18forth in Section 5-45 of the State Officials and Employees
19Ethics Act.
20(Source: P.A. 89-16, eff. 5-30-95.)
21 (230 ILCS 5/9) (from Ch. 8, par. 37-9)
22 Sec. 9. The Board shall have all powers necessary and
23proper to fully and effectively execute the provisions of this
24Act, including, but not limited to, the following:
25 (a) The Board is vested with jurisdiction and supervision

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1over all race meetings in this State, over all licensees doing
2business in this State, over all occupation licensees, and over
3all persons on the facilities of any licensee. Such
4jurisdiction shall include the power to issue licenses to the
5Illinois Department of Agriculture authorizing the pari-mutuel
6system of wagering on harness and Quarter Horse races held (1)
7at the Illinois State Fair in Sangamon County, and (2) at the
8DuQuoin State Fair in Perry County. The jurisdiction of the
9Board shall also include the power to issue licenses to county
10fairs which are eligible to receive funds pursuant to the
11Agricultural Fair Act, as now or hereafter amended, or their
12agents, authorizing the pari-mutuel system of wagering on horse
13races conducted at the county fairs receiving such licenses.
14Such licenses shall be governed by subsection (n) of this
15Section.
16 Upon application, the Board shall issue a license to the
17Illinois Department of Agriculture to conduct harness and
18Quarter Horse races at the Illinois State Fair and at the
19DuQuoin State Fairgrounds during the scheduled dates of each
20fair. The Board shall not require and the Department of
21Agriculture shall be exempt from the requirements of Sections
2215.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
23(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
24and 25. The Board and the Department of Agriculture may extend
25any or all of these exemptions to any contractor or agent
26engaged by the Department of Agriculture to conduct its race

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

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

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

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

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

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1including rules, regulations and conditions for the conduct of
2the pari-mutuel system of wagering. The rules, regulations and
3conditions shall provide for the prevention of practices
4detrimental to the public interest and for the best interests
5of horse racing, and shall prescribe penalties for violations
6thereof. Any authority granted the Board under this Act shall
7extend to its jurisdiction and supervision over county fairs,
8or their agents, licensed pursuant to this subsection. However,
9the Board may waive any provision of this Act or its rules or
10regulations which would otherwise apply to such county fairs or
11their agents.
12 (o) Whenever the Board is authorized or required by law to
13consider some aspect of criminal history record information for
14the purpose of carrying out its statutory powers and
15responsibilities, then, upon request and payment of fees in
16conformance with the requirements of Section 2605-400 of the
17Department of State Police Law (20 ILCS 2605/2605-400), the
18Department of State Police is authorized to furnish, pursuant
19to positive identification, such information contained in
20State files as is necessary to fulfill the request.
21 (p) To insure the convenience, comfort, and wagering
22accessibility of race track patrons, to provide for the
23maximization of State revenue, and to generate increases in
24purse allotments to the horsemen, the Board shall require any
25licensee to staff the pari-mutuel department with adequate
26personnel.

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1(Source: P.A. 97-1060, eff. 8-24-12.)
2 (230 ILCS 5/15) (from Ch. 8, par. 37-15)
3 Sec. 15. (a) The Board shall, in its discretion, issue
4occupation licenses to horse owners, trainers, harness
5drivers, jockeys, agents, apprentices, grooms, stable foremen,
6exercise persons, veterinarians, valets, blacksmiths,
7concessionaires and others designated by the Board whose work,
8in whole or in part, is conducted upon facilities within the
9State. Such occupation licenses will be obtained prior to the
10persons engaging in their vocation upon such facilities. The
11Board shall not license pari-mutuel clerks, parking
12attendants, security guards and employees of concessionaires.
13No occupation license shall be required of any person who works
14at facilities within this State as a pari-mutuel clerk, parking
15attendant, security guard or as an employee of a
16concessionaire. Concessionaires of the Illinois State Fair and
17DuQuoin State Fair and employees of the Illinois Department of
18Agriculture shall not be required to obtain an occupation
19license by the Board.
20 (b) Each application for an occupation license shall be on
21forms prescribed by the Board. Such license, when issued, shall
22be for the period ending December 31 of each year, except that
23the Board in its discretion may grant 3-year licenses. The
24application shall be accompanied by a fee of not more than $25
25per year or, in the case of 3-year occupation license

HB3564- 96 -LRB099 06481 MLM 31222 b
1applications, a fee of not more than $60. Each applicant shall
2set forth in the application his full name and address, and if
3he had been issued prior occupation licenses or has been
4licensed in any other state under any other name, such name,
5his age, whether or not a permit or license issued to him in
6any other state has been suspended or revoked and if so whether
7such suspension or revocation is in effect at the time of the
8application, and such other information as the Board may
9require. Fees for registration of stable names shall not exceed
10$50.00. Beginning on the date when any organization licensee
11begins conducting electronic gaming pursuant to an electronic
12gaming license issued under the Illinois Gambling Act, the fee
13for registration of stable names shall not exceed $150, and the
14application fee for an occupation license shall not exceed $75,
15per year or, in the case of a 3-year occupation license
16application, the fee shall not exceed $180.
17 (c) The Board may in its discretion refuse an occupation
18license to any person:
19 (1) who has been convicted of a crime;
20 (2) who is unqualified to perform the duties required
21 of such applicant;
22 (3) who fails to disclose or states falsely any
23 information called for in the application;
24 (4) who has been found guilty of a violation of this
25 Act or of the rules and regulations of the Board; or
26 (5) whose license or permit has been suspended, revoked

HB3564- 97 -LRB099 06481 MLM 31222 b
1 or denied for just cause in any other state.
2 (d) The Board may suspend or revoke any occupation license:
3 (1) for violation of any of the provisions of this Act;
4 or
5 (2) for violation of any of the rules or regulations of
6 the Board; or
7 (3) for any cause which, if known to the Board, would
8 have justified the Board in refusing to issue such
9 occupation license; or
10 (4) for any other just cause.
11 (e) Each applicant shall submit his or her fingerprints
12to the Department of State Police in the form and manner
13prescribed by the Department of State Police. These
14fingerprints shall be checked against the fingerprint records
15now and hereafter filed in the Department of State Police and
16Federal Bureau of Investigation criminal history records
17databases. The Department of State Police shall charge a fee
18for conducting the criminal history records check, which shall
19be deposited in the State Police Services Fund and shall not
20exceed the actual cost of the records check. The Department of
21State Police shall furnish, pursuant to positive
22identification, records of conviction to the Board. Each
23applicant for licensure shall submit with his occupation
24license application, on forms provided by the Board, 2 sets of
25his fingerprints. All such applicants shall appear in person at
26the location designated by the Board for the purpose of

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

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1be privileged, strictly confidential, and shall be used only
2for the purpose of evaluating an applicant for a license or a
3renewal. Such information, records, interviews, reports,
4statements, memoranda, or other data shall not be admissible as
5evidence, nor discoverable, in any action of any kind in any
6court or before any tribunal, board, agency, or person, except
7for any action deemed necessary by the Board.
8(Source: P.A. 93-418, eff. 1-1-04.)
9 (230 ILCS 5/19) (from Ch. 8, par. 37-19)
10 Sec. 19. (a) No organization license may be granted to
11conduct a horse race meeting:
12 (1) except as provided in subsection (c) of Section 21
13 of this Act, to any person at any place within 35 miles of
14 any other place licensed by the Board to hold a race
15 meeting on the same date during the same hours, the mileage
16 measurement used in this subsection (a) shall be certified
17 to the Board by the Bureau of Systems and Services in the
18 Illinois Department of Transportation as the most commonly
19 used public way of vehicular travel;
20 (2) to any person in default in the payment of any
21 obligation or debt due the State under this Act, provided
22 no applicant shall be deemed in default in the payment of
23 any obligation or debt due to the State under this Act as
24 long as there is pending a hearing of any kind relevant to
25 such matter;

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

HB3564- 101 -LRB099 06481 MLM 31222 b
1(a) (2) or subsection (a) (3) of this Section, any other or
2separate person that either (i) controls, directly or
3indirectly, such ineligible person or (ii) is controlled,
4directly or indirectly, by such ineligible person or by a
5person which controls, directly or indirectly, such ineligible
6person shall also be ineligible.
7(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
8 (230 ILCS 5/20) (from Ch. 8, par. 37-20)
9 Sec. 20. (a) Any person desiring to conduct a horse race
10meeting may apply to the Board for an organization license. The
11application shall be made on a form prescribed and furnished by
12the Board. The application shall specify:
13 (1) the dates on which it intends to conduct the horse
14 race meeting, which dates shall be provided under Section
15 21;
16 (2) the hours of each racing day between which it
17 intends to hold or conduct horse racing at such meeting;
18 (3) the location where it proposes to conduct the
19 meeting; and
20 (4) any other information the Board may reasonably
21 require.
22 (b) A separate application for an organization license
23shall be filed for each horse race meeting which such person
24proposes to hold. Any such application, if made by an
25individual, or by any individual as trustee, shall be signed

HB3564- 102 -LRB099 06481 MLM 31222 b
1and verified under oath by such individual. If the application
2is made by individuals, then it shall be signed and verified
3under oath by at least 2 of the individuals; if the application
4is made by or a partnership, it shall be signed and verified
5under oath by at least 2 of such individuals or members of such
6partnership as the case may be. If made by an association, a
7corporation, a corporate trustee, a limited liability company,
8or any other entity, it shall be signed by an authorized
9officer, a partner, a member, or a manager, as the case may be,
10of the entity the president and attested by the secretary or
11assistant secretary under the seal of such association, trust
12or corporation if it has a seal, and shall also be verified
13under oath by one of the signing officers.
14 (c) The application shall specify:
15 (1) the name of the persons, association, trust, or
16 corporation making such application; and
17 (2) the principal post office address of the applicant;
18 (3) if the applicant is a trustee, the names and
19 addresses of the beneficiaries; if the applicant is a
20 corporation, the names and post office addresses of all
21 officers, stockholders and directors; or if such
22 stockholders hold stock as a nominee or fiduciary, the
23 names and post office addresses of the parties these
24 persons, partnerships, corporations, or trusts who are the
25 beneficial owners thereof or who are beneficially
26 interested therein; and if the applicant is a partnership,

HB3564- 103 -LRB099 06481 MLM 31222 b
1 the names and post office addresses of all partners,
2 general or limited; if the applicant is a limited liability
3 company, the names and addresses of the manager and
4 members; and if the applicant is any other entity, the
5 names and addresses of all officers or other authorized
6 persons of the entity corporation, the name of the state of
7 its incorporation shall be specified.
8 (d) The applicant shall execute and file with the Board a
9good faith affirmative action plan to recruit, train, and
10upgrade minorities in all classifications within the
11association.
12 (e) With such application there shall be delivered to the
13Board a certified check or bank draft payable to the order of
14the Board for an amount equal to $1,000. All applications for
15the issuance of an organization license shall be filed with the
16Board before August 1 of the year prior to the year for which
17application is made and shall be acted upon by the Board at a
18meeting to be held on such date as shall be fixed by the Board
19during the last 15 days of September of such prior year. At
20such meeting, the Board shall announce the award of the racing
21meets, live racing schedule, and designation of host track to
22the applicants and its approval or disapproval of each
23application. No announcement shall be considered binding until
24a formal order is executed by the Board, which shall be
25executed no later than October 15 of that prior year. Absent
26the agreement of the affected organization licensees, the Board

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1shall not grant overlapping race meetings to 2 or more tracks
2that are within 100 miles of each other to conduct the
3thoroughbred racing.
4 (e-1) In awarding standardbred racing dates for calendar
5year 2016 and thereafter, the Board shall award at least 310
6racing days, and each organization licensee shall average at
7least 12 races for each racing day awarded. The Board shall
8have the discretion to allocate those racing days among
9organization licensees requesting standardbred racing dates.
10Once awarded by the Board, organization licensees awarded
11standardbred racing dates shall run at least 3,500 races in
12total during that calendar year. Standardbred racing conducted
13in Sangamon County shall not be considered races under this
14subsection (e-1).
15 (e-2) In awarding racing dates for calendar year 2016 and
16thereafter, the Board shall award thoroughbred racing days to
17Cook County organization licensees commensurate with these
18organization licensees' requirement that they shall run at
19least 1,950 thoroughbred races in the aggregate, so long as 2
20organization licensees are conducting electronic gaming
21operations. Additionally, if the organization licensees that
22run thoroughbred races in Cook County are conducting electronic
23gaming operations, the Board shall increase the number of
24thoroughbred races to be run in Cook County in the aggregate to
25at least the following:
26 (i) 2,050 races in any year following the most recent

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1 preceding complete calendar year when the combined
2 adjusted gross receipts of the electronic gaming licensees
3 operating at Cook County race tracks total in excess of
4 $200,000,000, but do not exceed $250,000,000;
5 (ii) 2,125 races in any year following the most recent
6 preceding complete calendar year when the combined
7 adjusted gross receipts of the electronic gaming licensees
8 operating at Cook County race tracks total in excess of
9 $250,000,000, but do not exceed $300,000,000;
10 (iii) 2,200 races in any year following the most recent
11 preceding complete calendar year when the combined
12 adjusted gross receipts of the electronic gaming licensees
13 operating at Cook County race tracks total in excess of
14 $300,000,000, but do not exceed $350,000,000;
15 (iv) 2,300 races in any year following the most recent
16 preceding complete calendar year when the combined
17 adjusted gross receipts of the electronic gaming licensees
18 operating at Cook County race tracks total in excess of
19 $350,000,000, but do not exceed $400,000,000;
20 (v) 2,375 races in any year following the most recent
21 preceding complete calendar year when the combined
22 adjusted gross receipts of the electronic gaming licensees
23 operating at Cook County race tracks total in excess of
24 $400,000,000, but do not exceed $450,000,000;
25 (vi) 2,450 races in any year following the most recent
26 preceding complete calendar year when the combined

HB3564- 106 -LRB099 06481 MLM 31222 b
1 adjusted gross receipts of the electronic gaming licensees
2 operating at Cook County race tracks total in excess of
3 $450,000,000, but do not exceed $500,000,000;
4 (vii) 2,550 races in any year following the most recent
5 preceding complete calendar year when the combined
6 adjusted gross receipts of the electronic gaming licensees
7 operating at Cook County race tracks exceeds $500,000,000.
8 In awarding racing dates under this subsection (e-2), the
9Board shall have the discretion to allocate those thoroughbred
10racing dates among these Cook County organization licensees.
11 (e-3) Notwithstanding the provisions of Section 7.7 of the
12Illinois Gambling Act or any provision of this Act other than
13subsection (e-4), for each calendar year for which an
14electronic gaming licensee requests racing dates for a specific
15horse breed which results in a number of live races for that
16specific breed under its organization license that is less than
17the total number of live races for that specific breed which it
18conducted in 2011 for standardbred racing and in 2009 for
19thoroughbred racing at its race track facility, the electronic
20gaming licensee may not conduct electronic gaming for the
21calendar year of such requested live races.
22 (e-4) 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) and (e-2) are in the

HB3564- 107 -LRB099 06481 MLM 31222 b
1best interest of the sport of horse racing, and that such
2guarantees may only be reduced in the limited circumstances
3described in this subsection. The Board may decrease the number
4of racing days without affecting an organization licensee's
5ability to conduct electronic gaming only if the Board
6determines, 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 Law, the
6Charitable Games Act, the Raffles and Poker Runs Act, or the
7Illinois Gambling Act, no No other method of betting, pool
8making, wagering or gambling shall be used or permitted by the
9licensee. Each licensee may retain, subject to the payment of
10all applicable taxes and purses, an amount not to exceed 17% of
11all money wagered under subsection (a) of this Section, except
12as may otherwise 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

HB3564- 122 -LRB099 06481 MLM 31222 b
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. For one year after the effective date of this
18amendatory Act of the 98th General Assembly, non-host licensees
19may carry the host track simulcast program and shall accept
20wagers on all races included as part of the simulcast program
21of horse races conducted at race tracks located within North
22America upon which wagering is permitted. For a period of one
23year after the effective date of this amendatory Act of the
2498th General Assembly, on horse races conducted at race tracks
25located outside of North America, non-host licensees may accept
26wagers on all races included as part of the simulcast program

HB3564- 125 -LRB099 06481 MLM 31222 b
1upon which wagering is permitted. Beginning one year after the
2effective date of this amendatory Act of the 98th General
3Assembly, non-host licensees may carry the host track simulcast
4program and shall accept wagers on all races included as part
5of the simulcast program upon which wagering is permitted. All
6organization licensees shall provide their live signal to all
7advance deposit wagering licensees for a simulcast commission
8fee not to exceed 6% of the advance deposit wagering licensee's
9Illinois handle on the organization licensee's signal without
10prior approval by the Board. The Board may adopt rules under
11which it may permit simulcast commission fees in excess of 6%.
12The Board shall adopt rules limiting the interstate commission
13fees charged to an advance deposit wagering licensee. The Board
14shall adopt rules regarding advance deposit wagering on
15interstate simulcast races that shall reflect, among other
16things, the General Assembly's desire to maximize revenues to
17the State, horsemen purses, and organizational licensees.
18However, organization licensees providing live signals
19pursuant to the requirements of this subsection (g) may
20petition the Board to withhold their live signals from an
21advance deposit wagering licensee if the organization licensee
22discovers and the Board finds reputable or credible information
23that the advance deposit wagering licensee is under
24investigation by another state or federal governmental agency,
25the advance deposit wagering licensee's license has been
26suspended in another state, or the advance deposit wagering

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1licensee's license is in revocation proceedings in another
2state. The organization licensee's provision of their live
3signal to an advance deposit wagering licensee under this
4subsection (g) pertains to wagers placed from within Illinois.
5Advance deposit wagering licensees may place advance deposit
6wagering terminals at wagering facilities as a convenience to
7customers. The advance deposit wagering licensee shall not
8charge or collect any fee from purses for the placement of the
9advance deposit wagering terminals. The costs and expenses of
10the host track and non-host licensees associated with
11interstate simulcast wagering, other than the interstate
12commission fee, shall be borne by the host track and all
13non-host licensees incurring these costs. The interstate
14commission fee shall not exceed 5% of Illinois handle on the
15interstate simulcast race or races without prior approval of
16the Board. The Board shall promulgate rules under which it may
17permit interstate commission fees in excess of 5%. The
18interstate commission fee and other fees charged by the sending
19racetrack, including, but not limited to, satellite decoder
20fees, shall be uniformly applied to the host track and all
21non-host licensees.
22 Notwithstanding any other provision of this Act, until
23February 1, 2017, an organization licensee, with the consent of
24the horsemen association representing the largest number of
25owners, trainers, jockeys, or standardbred drivers who race
26horses at that organization licensee's racing meeting, may

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1maintain a system whereby advance deposit wagering may take
2place or an organization licensee, with the consent of the
3horsemen association representing the largest number of
4owners, trainers, jockeys, or standardbred drivers who race
5horses at that organization licensee's racing meeting, may
6contract with another person to carry out a system of advance
7deposit wagering. Such consent may not be unreasonably
8withheld. Only with respect to an appeal to the Board that
9consent for an organization licensee that maintains its own
10advance deposit wagering system is being unreasonably
11withheld, the Board shall issue a final order within 30 days
12after initiation of the appeal, and the organization licensee's
13advance deposit wagering system may remain operational during
14that 30-day period. The actions of any organization licensee
15who conducts advance deposit wagering or any person who has a
16contract with an organization licensee to conduct advance
17deposit wagering who conducts advance deposit wagering on or
18after January 1, 2013 and prior to the effective date of this
19amendatory Act of the 98th General Assembly taken in reliance
20on the changes made to this subsection (g) by this amendatory
21Act of the 98th General Assembly are hereby validated, provided
22payment of all applicable pari-mutuel taxes are remitted to the
23Board. All advance deposit wagers placed from within Illinois
24must be placed through a Board-approved advance deposit
25wagering licensee; no other entity may accept an advance
26deposit wager from a person within Illinois. All advance

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1deposit wagering is subject to any rules adopted by the Board.
2The Board may adopt rules necessary to regulate advance deposit
3wagering through the use of emergency rulemaking in accordance
4with Section 5-45 of the Illinois Administrative Procedure Act.
5The General Assembly finds that the adoption of rules to
6regulate advance deposit wagering is deemed an emergency and
7necessary for the public interest, safety, and welfare. An
8advance deposit wagering licensee may retain all moneys as
9agreed to by contract with an organization licensee. Any moneys
10retained by the organization licensee from advance deposit
11wagering, not including moneys retained by the advance deposit
12wagering licensee, shall be paid 50% to the organization
13licensee's purse account and 50% to the organization licensee.
14With the exception of any organization licensee that is owned
15by a publicly traded company that is incorporated in a state
16other than Illinois and advance deposit wagering licensees
17under contract with such organization licensees, organization
18licensees that maintain advance deposit wagering systems and
19advance deposit wagering licensees that contract with
20organization licensees shall provide sufficiently detailed
21monthly accountings to the horsemen association representing
22the largest number of owners, trainers, jockeys, or
23standardbred drivers who race horses at that organization
24licensee's racing meeting so that the horsemen association, as
25an interested party, can confirm the accuracy of the amounts
26paid to the purse account at the horsemen association's

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1affiliated organization licensee from advance deposit
2wagering. If more than one breed races at the same race track
3facility, then the 50% of the moneys to be paid to an
4organization licensee's purse account shall be allocated among
5all organization licensees' purse accounts operating at that
6race track facility proportionately based on the actual number
7of host days that the Board grants to that breed at that race
8track facility in the current calendar year. To the extent any
9fees from advance deposit wagering conducted in Illinois for
10wagers in Illinois or other states have been placed in escrow
11or otherwise withheld from wagers pending a determination of
12the legality of advance deposit wagering, no action shall be
13brought to declare such wagers or the disbursement of any fees
14previously escrowed illegal.
15 (1) Between the hours of 6:30 a.m. and 6:30 p.m. an
16 intertrack wagering licensee other than the host track may
17 supplement the host track simulcast program with
18 additional simulcast races or race programs, provided that
19 between January 1 and the third Friday in February of any
20 year, inclusive, if no live thoroughbred racing is
21 occurring in Illinois during this period, only
22 thoroughbred races may be used for supplemental interstate
23 simulcast purposes. The Board shall withhold approval for a
24 supplemental interstate simulcast only if it finds that the
25 simulcast is clearly adverse to the integrity of racing. A
26 supplemental interstate simulcast may be transmitted from

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1 an intertrack wagering licensee to its affiliated non-host
2 licensees. The interstate commission fee for a
3 supplemental interstate simulcast shall be paid by the
4 non-host licensee and its affiliated non-host licensees
5 receiving the simulcast.
6 (2) Between the hours of 6:30 p.m. and 6:30 a.m. an
7 intertrack wagering licensee other than the host track may
8 receive supplemental interstate simulcasts only with the
9 consent of the host track, except when the Board finds that
10 the simulcast is clearly adverse to the integrity of
11 racing. Consent granted under this paragraph (2) to any
12 intertrack wagering licensee shall be deemed consent to all
13 non-host licensees. The interstate commission fee for the
14 supplemental interstate simulcast shall be paid by all
15 participating non-host licensees.
16 (3) Each licensee conducting interstate simulcast
17 wagering may retain, subject to the payment of all
18 applicable taxes and the purses, an amount not to exceed
19 17% of all money wagered. If any licensee conducts the
20 pari-mutuel system wagering on races conducted at
21 racetracks in another state or country, each such race or
22 race program shall be considered a separate racing day for
23 the purpose of determining the daily handle and computing
24 the privilege tax of that daily handle as provided in
25 subsection (a) of Section 27. Until January 1, 2000, from
26 the sums permitted to be retained pursuant to this

HB3564- 131 -LRB099 06481 MLM 31222 b
1 subsection, each intertrack wagering location licensee
2 shall pay 1% of the pari-mutuel handle wagered on simulcast
3 wagering to the Horse Racing Tax Allocation Fund, subject
4 to the provisions of subparagraph (B) of paragraph (11) of
5 subsection (h) of Section 26 of this Act.
6 (4) A licensee who receives an interstate simulcast may
7 combine its gross or net pools with pools at the sending
8 racetracks pursuant to rules established by the Board. All
9 licensees combining their gross pools at a sending
10 racetrack shall adopt the take-out percentages of the
11 sending racetrack. A licensee may also establish a separate
12 pool and takeout structure for wagering purposes on races
13 conducted at race tracks outside of the State of Illinois.
14 The licensee may permit pari-mutuel wagers placed in other
15 states or countries to be combined with its gross or net
16 wagering pools or other wagering pools.
17 (5) After the payment of the interstate commission fee
18 (except for the interstate commission fee on a supplemental
19 interstate simulcast, which shall be paid by the host track
20 and by each non-host licensee through the host-track) and
21 all applicable State and local taxes, except as provided in
22 subsection (g) of Section 27 of this Act, the remainder of
23 moneys retained from simulcast wagering pursuant to this
24 subsection (g), and Section 26.2 shall be divided as
25 follows:
26 (A) For interstate simulcast wagers made at a host

HB3564- 132 -LRB099 06481 MLM 31222 b
1 track, 50% to the host track and 50% to purses at the
2 host track.
3 (B) For wagers placed on interstate simulcast
4 races, supplemental simulcasts as defined in
5 subparagraphs (1) and (2), and separately pooled races
6 conducted outside of the State of Illinois made at a
7 non-host licensee, 25% to the host track, 25% to the
8 non-host licensee, and 50% to the purses at the host
9 track.
10 (6) Notwithstanding any provision in this Act to the
11 contrary, non-host licensees who derive their licenses
12 from a track located in a county with a population in
13 excess of 230,000 and that borders the Mississippi River
14 may receive supplemental interstate simulcast races at all
15 times subject to Board approval, which shall be withheld
16 only upon a finding that a supplemental interstate
17 simulcast is clearly adverse to the integrity of racing.
18 (7) Notwithstanding any provision of this Act to the
19 contrary, after payment of all applicable State and local
20 taxes and interstate commission fees, non-host licensees
21 who derive their licenses from a track located in a county
22 with a population in excess of 230,000 and that borders the
23 Mississippi River shall retain 50% of the retention from
24 interstate simulcast wagers and shall pay 50% to purses at
25 the track from which the non-host licensee derives its
26 license as follows:

HB3564- 133 -LRB099 06481 MLM 31222 b
1 (A) Between January 1 and the third Friday in
2 February, inclusive, if no live thoroughbred racing is
3 occurring in Illinois during this period, when the
4 interstate simulcast is a standardbred race, the purse
5 share to its standardbred purse account;
6 (B) Between January 1 and the third Friday in
7 February, inclusive, if no live thoroughbred racing is
8 occurring in Illinois during this period, and the
9 interstate simulcast is a thoroughbred race, the purse
10 share to its interstate simulcast purse pool to be
11 distributed under paragraph (10) of this subsection
12 (g);
13 (C) Between January 1 and the third Friday in
14 February, inclusive, if live thoroughbred racing is
15 occurring in Illinois, between 6:30 a.m. and 6:30 p.m.
16 the purse share from wagers made during this time
17 period to its thoroughbred purse account and between
18 6:30 p.m. and 6:30 a.m. the purse share from wagers
19 made during this time period to its standardbred purse
20 accounts;
21 (D) Between the third Saturday in February and
22 December 31, when the interstate simulcast occurs
23 between the hours of 6:30 a.m. and 6:30 p.m., the purse
24 share to its thoroughbred purse account;
25 (E) Between the third Saturday in February and
26 December 31, when the interstate simulcast occurs

HB3564- 134 -LRB099 06481 MLM 31222 b
1 between the hours of 6:30 p.m. and 6:30 a.m., the purse
2 share to its standardbred purse account.
3 (7.1) Notwithstanding any other provision of this Act
4 to the contrary, if no standardbred racing is conducted at
5 a racetrack located in Madison County during any calendar
6 year beginning on or after January 1, 2002, all moneys
7 derived by that racetrack from simulcast wagering and
8 inter-track wagering that (1) are to be used for purses and
9 (2) are generated between the hours of 6:30 p.m. and 6:30
10 a.m. during that calendar year shall be paid as follows:
11 (A) If the licensee that conducts horse racing at
12 that racetrack requests from the Board at least as many
13 racing dates as were conducted in calendar year 2000,
14 80% shall be paid to its thoroughbred purse account;
15 and
16 (B) Twenty percent shall be deposited into the
17 Illinois Colt Stakes Purse Distribution Fund and shall
18 be paid to purses for standardbred races for Illinois
19 conceived and foaled horses conducted at any county
20 fairgrounds. The moneys deposited into the Fund
21 pursuant to this subparagraph (B) shall be deposited
22 within 2 weeks after the day they were generated, shall
23 be in addition to and not in lieu of any other moneys
24 paid to standardbred purses under this Act, and shall
25 not be commingled with other moneys paid into that
26 Fund. The moneys deposited pursuant to this

HB3564- 135 -LRB099 06481 MLM 31222 b
1 subparagraph (B) shall be allocated as provided by the
2 Department of Agriculture, with the advice and
3 assistance of the Illinois Standardbred Breeders Fund
4 Advisory Board.
5 (7.2) Notwithstanding any other provision of this Act
6 to the contrary, if no thoroughbred racing is conducted at
7 a racetrack located in Madison County during any calendar
8 year beginning on or after January 1, 2002, all moneys
9 derived by that racetrack from simulcast wagering and
10 inter-track wagering that (1) are to be used for purses and
11 (2) are generated between the hours of 6:30 a.m. and 6:30
12 p.m. during that calendar year shall be deposited as
13 follows:
14 (A) If the licensee that conducts horse racing at
15 that racetrack requests from the Board at least as many
16 racing dates as were conducted in calendar year 2000,
17 80% shall be deposited into its standardbred purse
18 account; and
19 (B) Twenty percent shall be deposited into the
20 Illinois Colt Stakes Purse Distribution Fund. Moneys
21 deposited into the Illinois Colt Stakes Purse
22 Distribution Fund pursuant to this subparagraph (B)
23 shall be paid to Illinois conceived and foaled
24 thoroughbred breeders' programs and to thoroughbred
25 purses for races conducted at any county fairgrounds
26 for Illinois conceived and foaled horses at the

HB3564- 136 -LRB099 06481 MLM 31222 b
1 discretion of the Department of Agriculture, with the
2 advice and assistance of the Illinois Thoroughbred
3 Breeders Fund Advisory Board. The moneys deposited
4 into the Illinois Colt Stakes Purse Distribution Fund
5 pursuant to this subparagraph (B) shall be deposited
6 within 2 weeks after the day they were generated, shall
7 be in addition to and not in lieu of any other moneys
8 paid to thoroughbred purses under this Act, and shall
9 not be commingled with other moneys deposited into that
10 Fund.
11 (7.3) If no live standardbred racing is conducted at a
12 racetrack located in Madison County in calendar year 2000
13 or 2001, an organization licensee who is licensed to
14 conduct horse racing at that racetrack shall, before
15 January 1, 2002, pay all moneys derived from simulcast
16 wagering and inter-track wagering in calendar years 2000
17 and 2001 and paid into the licensee's standardbred purse
18 account as follows:
19 (A) Eighty percent to that licensee's thoroughbred
20 purse account to be used for thoroughbred purses; and
21 (B) Twenty percent to the Illinois Colt Stakes
22 Purse Distribution Fund.
23 Failure to make the payment to the Illinois Colt Stakes
24 Purse Distribution Fund before January 1, 2002 shall result
25 in the immediate revocation of the licensee's organization
26 license, inter-track wagering license, and inter-track

HB3564- 137 -LRB099 06481 MLM 31222 b
1 wagering location license.
2 Moneys paid into the Illinois Colt Stakes Purse
3 Distribution Fund pursuant to this paragraph (7.3) shall be
4 paid to purses for standardbred races for Illinois
5 conceived and foaled horses conducted at any county
6 fairgrounds. Moneys paid into the Illinois Colt Stakes
7 Purse Distribution Fund pursuant to this paragraph (7.3)
8 shall be used as determined by the Department of
9 Agriculture, with the advice and assistance of the Illinois
10 Standardbred Breeders Fund Advisory Board, shall be in
11 addition to and not in lieu of any other moneys paid to
12 standardbred purses under this Act, and shall not be
13 commingled with any other moneys paid into that Fund.
14 (7.4) If live standardbred racing is conducted at a
15 racetrack located in Madison County at any time in calendar
16 year 2001 before the payment required under paragraph (7.3)
17 has been made, the organization licensee who is licensed to
18 conduct racing at that racetrack shall pay all moneys
19 derived by that racetrack from simulcast wagering and
20 inter-track wagering during calendar years 2000 and 2001
21 that (1) are to be used for purses and (2) are generated
22 between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or
23 2001 to the standardbred purse account at that racetrack to
24 be used for standardbred purses.
25 (8) Notwithstanding any provision in this Act to the
26 contrary, an organization licensee from a track located in

HB3564- 138 -LRB099 06481 MLM 31222 b
1 a county with a population in excess of 230,000 and that
2 borders the Mississippi River and its affiliated non-host
3 licensees shall not be entitled to share in any retention
4 generated on racing, inter-track wagering, or simulcast
5 wagering at any other Illinois wagering facility.
6 (8.1) Notwithstanding any provisions in this Act to the
7 contrary, if 2 organization licensees are conducting
8 standardbred race meetings concurrently between the hours
9 of 6:30 p.m. and 6:30 a.m., after payment of all applicable
10 State and local taxes and interstate commission fees, the
11 remainder of the amount retained from simulcast wagering
12 otherwise attributable to the host track and to host track
13 purses shall be split daily between the 2 organization
14 licensees and the purses at the tracks of the 2
15 organization licensees, respectively, based on each
16 organization licensee's share of the total live handle for
17 that day, provided that this provision shall not apply to
18 any non-host licensee that derives its license from a track
19 located in a county with a population in excess of 230,000
20 and that borders the Mississippi River.
21 (9) (Blank).
22 (10) (Blank).
23 (11) (Blank).
24 (12) The Board shall have authority to compel all host
25 tracks to receive the simulcast of any or all races
26 conducted at the Springfield or DuQuoin State fairgrounds

HB3564- 139 -LRB099 06481 MLM 31222 b
1 and include all such races as part of their simulcast
2 programs.
3 (13) Notwithstanding any other provision of this Act,
4 in the event that the total Illinois pari-mutuel handle on
5 Illinois horse races at all wagering facilities in any
6 calendar year is less than 75% of the total Illinois
7 pari-mutuel handle on Illinois horse races at all such
8 wagering facilities for calendar year 1994, then each
9 wagering facility that has an annual total Illinois
10 pari-mutuel handle on Illinois horse races that is less
11 than 75% of the total Illinois pari-mutuel handle on
12 Illinois horse races at such wagering facility for calendar
13 year 1994, shall be permitted to receive, from any amount
14 otherwise payable to the purse account at the race track
15 with which the wagering facility is affiliated in the
16 succeeding calendar year, an amount equal to 2% of the
17 differential in total Illinois pari-mutuel handle on
18 Illinois horse races at the wagering facility between that
19 calendar year in question and 1994 provided, however, that
20 a wagering facility shall not be entitled to any such
21 payment until the Board certifies in writing to the
22 wagering facility the amount to which the wagering facility
23 is entitled and a schedule for payment of the amount to the
24 wagering facility, based on: (i) the racing dates awarded
25 to the race track affiliated with the wagering facility
26 during the succeeding year; (ii) the sums available or

HB3564- 140 -LRB099 06481 MLM 31222 b
1 anticipated to be available in the purse account of the
2 race track affiliated with the wagering facility for purses
3 during the succeeding year; and (iii) the need to ensure
4 reasonable purse levels during the payment period. The
5 Board's certification shall be provided no later than
6 January 31 of the succeeding year. In the event a wagering
7 facility entitled to a payment under this paragraph (13) is
8 affiliated with a race track that maintains purse accounts
9 for both standardbred and thoroughbred racing, the amount
10 to be paid to the wagering facility shall be divided
11 between each purse account pro rata, based on the amount of
12 Illinois handle on Illinois standardbred and thoroughbred
13 racing respectively at the wagering facility during the
14 previous calendar year. Annually, the General Assembly
15 shall appropriate sufficient funds from the General
16 Revenue Fund to the Department of Agriculture for payment
17 into the thoroughbred and standardbred horse racing purse
18 accounts at Illinois pari-mutuel tracks. The amount paid to
19 each purse account shall be the amount certified by the
20 Illinois Racing Board in January to be transferred from
21 each account to each eligible racing facility in accordance
22 with the provisions of this Section. Beginning in the
23 calendar year in which an organization licensee that is
24 eligible to receive payment under this paragraph (13)
25 begins to receive funds from electronic gaming, the amount
26 of the payment due to all wagering facilities licensed

HB3564- 141 -LRB099 06481 MLM 31222 b
1 under that organization licensee under this paragraph (13)
2 shall be the amount certified by the Board in January of
3 that year. An organization licensee and its related
4 wagering facilities shall no longer be able to receive
5 payments under this paragraph (13) beginning in the year
6 subsequent to the first year in which the organization
7 licensee begins to receive funds from electronic gaming.
8 (h) The Board may approve and license the conduct of
9inter-track wagering and simulcast wagering by inter-track
10wagering licensees and inter-track wagering location licensees
11subject to the following terms and conditions:
12 (1) Any person licensed to conduct a race meeting (i)
13 at a track where 60 or more days of racing were conducted
14 during the immediately preceding calendar year or where
15 over the 5 immediately preceding calendar years an average
16 of 30 or more days of racing were conducted annually may be
17 issued an inter-track wagering license; (ii) at a track
18 located in a county that is bounded by the Mississippi
19 River, which has a population of less than 150,000
20 according to the 1990 decennial census, and an average of
21 at least 60 days of racing per year between 1985 and 1993
22 may be issued an inter-track wagering license; or (iii) at
23 a track located in Madison County that conducted at least
24 100 days of live racing during the immediately preceding
25 calendar year may be issued an inter-track wagering
26 license, unless a lesser schedule of live racing is the

HB3564- 142 -LRB099 06481 MLM 31222 b
1 result of (A) weather, unsafe track conditions, or other
2 acts of God; (B) an agreement between the organization
3 licensee and the associations representing the largest
4 number of owners, trainers, jockeys, or standardbred
5 drivers who race horses at that organization licensee's
6 racing meeting; or (C) a finding by the Board of
7 extraordinary circumstances and that it was in the best
8 interest of the public and the sport to conduct fewer than
9 100 days of live racing. Any such person having operating
10 control of the racing facility may also receive up to 6
11 inter-track wagering location licenses. In no event shall
12 more than 6 inter-track wagering locations be established
13 for each eligible race track, except that an eligible race
14 track located in a county that has a population of more
15 than 230,000 and that is bounded by the Mississippi River
16 may establish up to 7 inter-track wagering locations and an
17 eligible race track located in Cook County may establish up
18 to 8 inter-track wagering locations. An application for
19 said license shall be filed with the Board prior to such
20 dates as may be fixed by the Board. With an application for
21 an inter-track wagering location license there shall be
22 delivered to the Board a certified check or bank draft
23 payable to the order of the Board for an amount equal to
24 $500. The application shall be on forms prescribed and
25 furnished by the Board. The application shall comply with
26 all other rules, regulations and conditions imposed by the

HB3564- 143 -LRB099 06481 MLM 31222 b
1 Board in connection therewith.
2 (2) The Board shall examine the applications with
3 respect to their conformity with this Act and the rules and
4 regulations imposed by the Board. If found to be in
5 compliance with the Act and rules and regulations of the
6 Board, the Board may then issue a license to conduct
7 inter-track wagering and simulcast wagering to such
8 applicant. All such applications shall be acted upon by the
9 Board at a meeting to be held on such date as may be fixed
10 by the Board.
11 (3) In granting licenses to conduct inter-track
12 wagering and simulcast wagering, the Board shall give due
13 consideration to the best interests of the public, of horse
14 racing, and of maximizing revenue to the State.
15 (4) Prior to the issuance of a license to conduct
16 inter-track wagering and simulcast wagering, the applicant
17 shall file with the Board a bond payable to the State of
18 Illinois in the sum of $50,000, executed by the applicant
19 and a surety company or companies authorized to do business
20 in this State, and conditioned upon (i) the payment by the
21 licensee of all taxes due under Section 27 or 27.1 and any
22 other monies due and payable under this Act, and (ii)
23 distribution by the licensee, upon presentation of the
24 winning ticket or tickets, of all sums payable to the
25 patrons of pari-mutuel pools.
26 (5) Each license to conduct inter-track wagering and

HB3564- 144 -LRB099 06481 MLM 31222 b
1 simulcast wagering shall specify the person to whom it is
2 issued, the dates on which such wagering is permitted, and
3 the track or location where the wagering is to be
4 conducted.
5 (6) All wagering under such license is subject to this
6 Act and to the rules and regulations from time to time
7 prescribed by the Board, and every such license issued by
8 the Board shall contain a recital to that effect.
9 (7) An inter-track wagering licensee or inter-track
10 wagering location licensee may accept wagers at the track
11 or location where it is licensed, or as otherwise provided
12 under this Act.
13 (8) Inter-track wagering or simulcast wagering shall
14 not be conducted at any track less than 5 miles from a
15 track at which a racing meeting is in progress.
16 (8.1) Inter-track wagering location licensees who
17 derive their licenses from a particular organization
18 licensee shall conduct inter-track wagering and simulcast
19 wagering only at locations that are within 140 miles of
20 that race track where the particular organization licensee
21 is licensed to conduct racing. However, inter-track
22 wagering and simulcast wagering shall not be conducted by
23 those licensees at any location within 5 miles of any race
24 track at which a horse race meeting has been licensed in
25 the current year, unless the person having operating
26 control of such race track has given its written consent to

HB3564- 145 -LRB099 06481 MLM 31222 b
1 such inter-track wagering location licensees, which
2 consent must be filed with the Board at or prior to the
3 time application is made. In the case of any inter-track
4 wagering location licensee initially licensed after
5 December 31, 2013, inter-track wagering and simulcast
6 wagering shall not be conducted by those inter-track
7 wagering location licensees that are located outside the
8 City of Chicago at any location within 8 miles of any race
9 track at which a horse race meeting has been licensed in
10 the current year, unless the person having operating
11 control of such race track has given its written consent to
12 such inter-track wagering location licensees, which
13 consent must be filed with the Board at or prior to the
14 time 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

HB3564- 146 -LRB099 06481 MLM 31222 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).

HB3564- 147 -LRB099 06481 MLM 31222 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

HB3564- 148 -LRB099 06481 MLM 31222 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

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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

HB3564- 150 -LRB099 06481 MLM 31222 b
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

HB3564- 155 -LRB099 06481 MLM 31222 b
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

HB3564- 156 -LRB099 06481 MLM 31222 b
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

HB3564- 157 -LRB099 06481 MLM 31222 b
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

HB3564- 158 -LRB099 06481 MLM 31222 b
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

HB3564- 159 -LRB099 06481 MLM 31222 b
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

HB3564- 160 -LRB099 06481 MLM 31222 b
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

HB3564- 161 -LRB099 06481 MLM 31222 b
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

HB3564- 162 -LRB099 06481 MLM 31222 b
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

HB3564- 163 -LRB099 06481 MLM 31222 b
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. 97-1060, eff. 8-24-12; 98-18, eff. 6-7-13;
2298-624, eff. 1-29-14; 98-968, eff. 8-15-14.)
23 (230 ILCS 5/27) (from Ch. 8, par. 37-27)
24 Sec. 27. (a) In addition to the organization license fee
25provided by this Act, until January 1, 2000, a graduated

HB3564- 164 -LRB099 06481 MLM 31222 b
1privilege tax is hereby imposed for conducting the pari-mutuel
2system of wagering permitted under this Act. Until January 1,
32000, except as provided in subsection (g) of Section 27 of
4this Act, all of the breakage of each racing day held by any
5licensee in the State shall be paid to the State. Until January
61, 2000, such daily graduated privilege tax shall be paid by
7the licensee from the amount permitted to be retained under
8this Act. Until January 1, 2000, each day's graduated privilege
9tax, breakage, and Horse Racing Tax Allocation funds shall be
10remitted to the Department of Revenue within 48 hours after the
11close of the racing day upon which it is assessed or within
12such other time as the Board prescribes. The privilege tax
13hereby imposed, until January 1, 2000, shall be a flat tax at
14the rate of 2% of the daily pari-mutuel handle except as
15provided in Section 27.1.
16 In addition, every organization licensee, except as
17provided in Section 27.1 of this Act, which conducts multiple
18wagering shall pay, until January 1, 2000, as a privilege tax
19on multiple wagers an amount equal to 1.25% of all moneys
20wagered each day on such multiple wagers, plus an additional
21amount equal to 3.5% of the amount wagered each day on any
22other multiple wager which involves a single betting interest
23on 3 or more horses. The licensee shall remit the amount of
24such taxes to the Department of Revenue within 48 hours after
25the close of the racing day on which it is assessed or within
26such other time as the Board prescribes.

HB3564- 165 -LRB099 06481 MLM 31222 b
1 This subsection (a) shall be inoperative and of no force
2and effect on and after January 1, 2000.
3 (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
4at the rate of 1.5% of the daily pari-mutuel handle is imposed
5at all pari-mutuel wagering facilities and on advance deposit
6wagering from a location other than a wagering facility, except
7as otherwise provided for in this subsection (a-5). In addition
8to the pari-mutuel tax imposed on advance deposit wagering
9pursuant to this subsection (a-5), beginning on August 24, 2012
10(the effective date of Public Act 97-1060) until February 1,
112017, an additional pari-mutuel tax at the rate of 0.25% shall
12be imposed on advance deposit wagering. Until August 25, 2012,
13the additional 0.25% pari-mutuel tax imposed on advance deposit
14wagering by Public Act 96-972 shall be deposited into the
15Quarter Horse Purse Fund, which shall be created as a
16non-appropriated trust fund administered by the Board for
17grants to thoroughbred organization licensees for payment of
18purses for quarter horse races conducted by the organization
19licensee. Beginning on August 26, 2012, the additional 0.25%
20pari-mutuel tax imposed on advance deposit wagering shall be
21deposited into the Standardbred Purse Fund, which shall be
22created as a non-appropriated trust fund administered by the
23Board, for grants to the standardbred organization licensees
24for payment of purses for standardbred horse races conducted by
25the organization licensee. Thoroughbred organization licensees
26may petition the Board to conduct quarter horse racing and

HB3564- 166 -LRB099 06481 MLM 31222 b
1receive purse grants from the Quarter Horse Purse Fund. The
2Board shall have complete discretion in distributing the
3Quarter Horse Purse Fund to the petitioning organization
4licensees. Beginning on July 26, 2010 (the effective date of
5Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of
6the daily pari-mutuel handle is imposed at a pari-mutuel
7facility whose license is derived from a track located in a
8county that borders the Mississippi River and conducted live
9racing in the previous year. The pari-mutuel tax imposed by
10this subsection (a-5) shall be remitted to the Department of
11Revenue within 48 hours after the close of the racing day upon
12which it is assessed or within such other time as the Board
13prescribes.
14 (a-10) Beginning on the date when an organization licensee
15begins conducting electronic gaming pursuant to an electronic
16gaming license, the following pari-mutuel tax is imposed upon
17an organization licensee on Illinois races at the licensee's
18race track:
19 1.5% of the pari-mutuel handle at or below the average
20 daily pari-mutuel handle for 2011.
21 2% of the pari-mutuel handle above the average daily
22 pari-mutuel handle for 2011 up to 125% of the average daily
23 pari-mutuel handle for 2011.
24 2.5% of the pari-mutuel handle 125% or more above the
25 average daily pari-mutuel handle for 2011 up to 150% of the
26 average daily pari-mutuel handle for 2011.

HB3564- 167 -LRB099 06481 MLM 31222 b
1 3% of the pari-mutuel handle 150% or more above the
2 average daily pari-mutuel handle for 2011 up to 175% of the
3 average daily pari-mutuel handle for 2011.
4 3.5% of the pari-mutuel handle 175% or more above the
5 average daily pari-mutuel handle for 2011.
6 The pari-mutuel tax imposed by this subsection (a-10) shall
7be remitted to the Board within 48 hours after the close of the
8racing day upon which it is assessed or within such other time
9as the Board prescribes.
10 (b) On or before December 31, 1999, in the event that any
11organization licensee conducts 2 separate programs of races on
12any day, each such program shall be considered a separate
13racing day for purposes of determining the daily handle and
14computing the privilege tax on such daily handle as provided in
15subsection (a) of this Section.
16 (c) Licensees shall at all times keep accurate books and
17records of all monies wagered on each day of a race meeting and
18of the taxes paid to the Department of Revenue under the
19provisions of this Section. The Board or its duly authorized
20representative or representatives shall at all reasonable
21times have access to such records for the purpose of examining
22and checking the same and ascertaining whether the proper
23amount of taxes is being paid as provided. The Board shall
24require verified reports and a statement of the total of all
25monies wagered daily at each wagering facility upon which the
26taxes are assessed and may prescribe forms upon which such

HB3564- 168 -LRB099 06481 MLM 31222 b
1reports and statement shall be made.
2 (d) Before a license is issued or re-issued, the licensee
3shall post a bond in the sum of $500,000 to the State of
4Illinois. The bond shall be used to guarantee that the licensee
5faithfully makes the payments, keeps the books and records and
6makes reports, and conducts games of chance in conformity with
7this Act and the rules adopted by the Board. The bond shall not
8be canceled by a surety on less than 30 days' notice in writing
9to the Board. If a bond is canceled and the licensee fails to
10file a new bond with the Board in the required amount on or
11before the effective date of cancellation, the licensee's
12license shall be revoked. The total and aggregate liability of
13the surety on the bond is limited to the amount specified in
14the bond. Any licensee failing or refusing to pay the amount of
15any tax due under this Section shall be guilty of a business
16offense and upon conviction shall be fined not more than $5,000
17in addition to the amount found due as tax under this Section.
18Each day's violation shall constitute a separate offense. All
19fines paid into Court by a licensee hereunder shall be
20transmitted and paid over by the Clerk of the Court to the
21Board.
22 (e) No other license fee, privilege tax, excise tax, or
23racing fee, except as provided in this Act, shall be assessed
24or collected from any such licensee by the State.
25 (f) No other license fee, privilege tax, excise tax or
26racing fee shall be assessed or collected from any such

HB3564- 169 -LRB099 06481 MLM 31222 b
1licensee by units of local government except as provided in
2paragraph 10.1 of subsection (h) and subsection (f) of Section
326 of this Act. However, any municipality that has a Board
4licensed horse race meeting at a race track wholly within its
5corporate boundaries or a township that has a Board licensed
6horse race meeting at a race track wholly within the
7unincorporated area of the township may charge a local
8amusement tax not to exceed 10¢ per admission to such horse
9race meeting by the enactment of an ordinance. However, any
10municipality or county that has a Board licensed inter-track
11wagering location facility wholly within its corporate
12boundaries may each impose an admission fee not to exceed $1.00
13per admission to such inter-track wagering location facility,
14so that a total of not more than $2.00 per admission may be
15imposed. Except as provided in subparagraph (g) of Section 27
16of this Act, the inter-track wagering location licensee shall
17collect any and all such fees and within 48 hours remit the
18fees to the Board, which shall, pursuant to rule, cause the
19fees to be distributed to the county or municipality.
20 (g) Notwithstanding any provision in this Act to the
21contrary, if in any calendar year the total taxes and fees from
22wagering on live racing and from inter-track wagering required
23to be collected from licensees and distributed under this Act
24to all State and local governmental authorities exceeds the
25amount of such taxes and fees distributed to each State and
26local governmental authority to which each State and local

HB3564- 170 -LRB099 06481 MLM 31222 b
1governmental authority was entitled under this Act for calendar
2year 1994, then the first $11 million of that excess amount
3shall be allocated at the earliest possible date for
4distribution as purse money for the succeeding calendar year.
5Upon reaching the 1994 level, and until the excess amount of
6taxes and fees exceeds $11 million, the Board shall direct all
7licensees to cease paying the subject taxes and fees and the
8Board shall direct all licensees to allocate any such excess
9amount for purses as follows:
10 (i) the excess amount shall be initially divided
11 between thoroughbred and standardbred purses based on the
12 thoroughbred's and standardbred's respective percentages
13 of total Illinois live wagering in calendar year 1994;
14 (ii) each thoroughbred and standardbred organization
15 licensee issued an organization licensee in that
16 succeeding allocation year shall be allocated an amount
17 equal to the product of its percentage of total Illinois
18 live thoroughbred or standardbred wagering in calendar
19 year 1994 (the total to be determined based on the sum of
20 1994 on-track wagering for all organization licensees
21 issued organization licenses in both the allocation year
22 and the preceding year) multiplied by the total amount
23 allocated for standardbred or thoroughbred purses,
24 provided that the first $1,500,000 of the amount allocated
25 to standardbred purses under item (i) shall be allocated to
26 the Department of Agriculture to be expended with the

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1 assistance and advice of the Illinois Standardbred
2 Breeders Funds Advisory Board for the purposes listed in
3 subsection (g) of Section 31 of this Act, before the amount
4 allocated to standardbred purses under item (i) is
5 allocated to standardbred organization licensees in the
6 succeeding allocation year.
7 To the extent the excess amount of taxes and fees to be
8collected and distributed to State and local governmental
9authorities exceeds $11 million, that excess amount shall be
10collected and distributed to State and local authorities as
11provided for under this Act.
12(Source: P.A. 97-1060, eff. 8-24-12; 98-18, eff. 6-7-13;
1398-624, eff. 1-29-14.)
14 (230 ILCS 5/30) (from Ch. 8, par. 37-30)
15 Sec. 30. (a) The General Assembly declares that it is the
16policy of this State to encourage the breeding of thoroughbred
17horses in this State and the ownership of such horses by
18residents of this State in order to provide for: sufficient
19numbers of high quality thoroughbred horses to participate in
20thoroughbred racing meetings in this State, and to establish
21and preserve the agricultural and commercial benefits of such
22breeding and racing industries to the State of Illinois. It is
23the intent of the General Assembly to further this policy by
24the provisions of this Act.
25 (b) Each organization licensee conducting a thoroughbred

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1racing meeting pursuant to this Act shall provide at least two
2races each day limited to Illinois conceived and foaled horses
3or Illinois foaled horses or both. A minimum of 6 races shall
4be conducted each week limited to Illinois conceived and foaled
5or Illinois foaled horses or both. No horses shall be permitted
6to start in such races unless duly registered under the rules
7of the Department of Agriculture.
8 (c) Conditions of races under subsection (b) shall be
9commensurate with past performance, quality, and class of
10Illinois conceived and foaled and Illinois foaled horses
11available. If, however, sufficient competition cannot be had
12among horses of that class on any day, the races may, with
13consent of the Board, be eliminated for that day and substitute
14races provided.
15 (d) There is hereby created a special fund of the State
16Treasury to be known as the Illinois Thoroughbred Breeders
17Fund.
18 Beginning on the effective date of this amendatory Act of
19the 99th General Assembly, the Illinois Thoroughbred Breeders
20Fund shall become a non-appropriated trust fund held separately
21from State moneys. Expenditures from this Fund shall no longer
22be subject to appropriation.
23 Except as provided in subsection (g) of Section 27 of this
24Act, 8.5% of all the monies received by the State as privilege
25taxes on Thoroughbred racing meetings shall be paid into the
26Illinois Thoroughbred Breeders Fund.

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1 Notwithstanding any provision of law to the contrary,
2amounts deposited into the Illinois Thoroughbred Breeders Fund
3from revenues generated by electronic gaming after the
4effective date of this amendatory Act of the 99th General
5Assembly shall be in addition to tax and fee amounts paid under
6this Section for calendar year 2015 and thereafter.
7 (e) The Illinois Thoroughbred Breeders Fund shall be
8administered by the Department of Agriculture with the advice
9and assistance of the Advisory Board created in subsection (f)
10of this Section.
11 (f) The Illinois Thoroughbred Breeders Fund Advisory Board
12shall consist of the Director of the Department of Agriculture,
13who shall serve as Chairman; a member of the Illinois Racing
14Board, designated by it; 2 representatives of the organization
15licensees conducting thoroughbred racing meetings, recommended
16by them; 2 representatives of the Illinois Thoroughbred
17Breeders and Owners Foundation, recommended by it; one
18representative and 2 representatives of the Horsemen's
19Benevolent Protective Association; and one representative from
20the Illinois Thoroughbred Horsemen's Association or any
21successor organization established in Illinois comprised of
22the largest number of owners and trainers, recommended by it,
23with one representative of the Horsemen's Benevolent and
24Protective Association to come from its Illinois Division, and
25one from its Chicago Division. Advisory Board members shall
26serve for 2 years commencing January 1 of each odd numbered

HB3564- 174 -LRB099 06481 MLM 31222 b
1year. If representatives of the organization licensees
2conducting thoroughbred racing meetings, the Illinois
3Thoroughbred Breeders and Owners Foundation, and the
4Horsemen's Benevolent Protection Association, and the Illinois
5Thoroughbred Horsemen's Association have not been recommended
6by January 1, of each odd numbered year, the Director of the
7Department of Agriculture shall make an appointment for the
8organization failing to so recommend a member of the Advisory
9Board. Advisory Board members shall receive no compensation for
10their services as members but shall be reimbursed for all
11actual and necessary expenses and disbursements incurred in the
12execution of their official duties.
13 (g) No monies shall be expended from the Illinois
14Thoroughbred Breeders Fund except as appropriated by the
15General Assembly. Monies expended appropriated from the
16Illinois Thoroughbred Breeders Fund shall be expended by the
17Department of Agriculture, with the advice and assistance of
18the Illinois Thoroughbred Breeders Fund Advisory Board, for the
19following purposes only:
20 (1) To provide purse supplements to owners of horses
21 participating in races limited to Illinois conceived and
22 foaled and Illinois foaled horses. Any such purse
23 supplements shall not be included in and shall be paid in
24 addition to any purses, stakes, or breeders' awards offered
25 by each organization licensee as determined by agreement
26 between such organization licensee and an organization

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

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1 Thoroughbred Breeders Fund Program prior to the effective
2 date of this amendatory Act of 1995 whose duly registered
3 Illinois conceived and foaled offspring wins a race
4 conducted at an Illinois thoroughbred racing meeting other
5 than a claiming race, provided that the stallion stood
6 service within Illinois at the time the offspring was
7 conceived and that the stallion did not stand for service
8 outside of Illinois at any time during the year in which
9 the offspring was conceived. Such award shall not be paid
10 to the owner or owners of an Illinois stallion that served
11 outside this State at any time during the calendar year in
12 which such race was conducted.
13 (4) To provide $75,000 annually for purses to be
14 distributed to county fairs that provide for the running of
15 races during each county fair exclusively for the
16 thoroughbreds conceived and foaled in Illinois. The
17 conditions of the races shall be developed by the county
18 fair association and reviewed by the Department with the
19 advice and assistance of the Illinois Thoroughbred
20 Breeders Fund Advisory Board. There shall be no wagering of
21 any kind on the running of Illinois conceived and foaled
22 races at county fairs.
23 (4.1) To provide purse money for an Illinois stallion
24 stakes program.
25 (5) No less than 90% 80% of all monies expended
26 appropriated from the Illinois Thoroughbred Breeders Fund

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1 shall be expended for the purposes in paragraphs (1), (2),
2 (2.5), (3), (4), (4.1), and (5) as shown above.
3 (6) To provide for educational programs regarding the
4 thoroughbred breeding industry.
5 (7) To provide for research programs concerning the
6 health, development and care of the thoroughbred horse.
7 (8) To provide for a scholarship and training program
8 for students of equine veterinary medicine.
9 (9) To provide for dissemination of public information
10 designed to promote the breeding of thoroughbred horses in
11 Illinois.
12 (10) To provide for all expenses incurred in the
13 administration of the Illinois Thoroughbred Breeders Fund.
14 (h) The Illinois Thoroughbred Breeders Fund is not subject
15to administrative charges or chargebacks, including, but not
16limited to, those authorized under Section 8h of the State
17Finance Act. Whenever the Governor finds that the amount in the
18Illinois Thoroughbred Breeders Fund is more than the total of
19the outstanding appropriations from such fund, the Governor
20shall notify the State Comptroller and the State Treasurer of
21such fact. The Comptroller and the State Treasurer, upon
22receipt of such notification, shall transfer such excess amount
23from the Illinois Thoroughbred Breeders Fund to the General
24Revenue Fund.
25 (i) A sum equal to 13% 12 1/2% of the first prize money of
26every purse won by an Illinois foaled or an Illinois conceived

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1and foaled horse in races not limited to Illinois foaled horses
2or Illinois conceived and foaled horses, or both, shall be paid
3by the organization licensee conducting the horse race meeting.
4Such sum shall be paid 50% from the organization licensee's
5account and 50% from the purse account of the licensee share of
6the money wagered as follows: 11 1/2% to the breeder of the
7winning horse and 1 1/2% 1% to the organization representing
8thoroughbred breeders and owners whose representative serves
9on the Illinois Thoroughbred Breeders Fund Advisory Board for
10verifying the amounts of breeders' awards earned, assuring
11their distribution in accordance with this Act, and servicing
12and promoting the Illinois thoroughbred horse racing industry.
13Except for that track that races in Madison County, beginning
14in the calendar year in which an organization licensee that is
15eligible to receive payment under paragraph (13) of subsection
16(g) of Section 26 of this Act begins to receive funds from
17electronic gaming, a sum equal to 21 1/2% of the first prize
18money of every purse won by an Illinois foaled or an Illinois
19conceived and foaled horse in races not limited to Illinois
20foaled horses or Illinois conceived and foaled horses, or both,
21shall be paid by the organization licensee conducting the horse
22race meeting. Such sum shall be paid 30% from the organization
23licensee's account and 70% from the purse account of the
24licensee as follows: 20% to the breeder of the winning horse
25and 1 1/2% to the organization representing thoroughbred
26breeders and owners whose representative serves on the Illinois

HB3564- 179 -LRB099 06481 MLM 31222 b
1Thoroughbred Breeders Fund Advisory Board for verifying the
2amounts of breeders' awards earned, ensuring their
3distribution in accordance with this Act, and service and
4promotion of the Illinois thoroughbred horse racing industry.
5The organization representing thoroughbred breeders and owners
6shall cause all expenditures of monies received under this
7subsection (i) to be audited at least annually by a registered
8public accountant. The organization shall file copies of each
9annual audit with the Racing Board, the Clerk of the House of
10Representatives and the Secretary of the Senate, and shall make
11copies of each annual audit available to the public upon
12request and upon payment of the reasonable cost of photocopying
13the requested number of copies. Such payments shall not reduce
14any award to the owner of the horse or reduce the taxes payable
15under this Act. Upon completion of its racing meet, each
16organization licensee shall deliver to the organization
17representing thoroughbred breeders and owners whose
18representative serves on the Illinois Thoroughbred Breeders
19Fund Advisory Board a listing of all the Illinois foaled and
20the Illinois conceived and foaled horses which won breeders'
21awards and the amount of such breeders' awards under this
22subsection to verify accuracy of payments and assure proper
23distribution of breeders' awards in accordance with the
24provisions of this Act. Such payments shall be delivered by the
25organization licensee within 30 days of the end of each race
26meeting.

HB3564- 180 -LRB099 06481 MLM 31222 b
1 (j) A sum equal to 13% 12 1/2% of the first prize money won
2in each race limited to Illinois foaled horses or Illinois
3conceived and foaled horses, or both, shall be paid in the
4following manner by the organization licensee conducting the
5horse race meeting, 50% from the organization licensee's
6account and 50% from the purse account of the licensee share of
7the money wagered: 11 1/2% to the breeders of the horses in
8each such race which are the official first, second, third and
9fourth finishers and 1 1/2% 1% to the organization representing
10thoroughbred breeders and owners whose representative serves
11on the Illinois Thoroughbred Breeders Fund Advisory Board for
12verifying the amounts of breeders' awards earned, assuring
13their proper distribution in accordance with this Act, and
14servicing and promoting the Illinois thoroughbred horse racing
15industry. The organization representing thoroughbred breeders
16and owners shall cause all expenditures of monies received
17under this subsection (j) to be audited at least annually by a
18registered public accountant. The organization shall file
19copies of each annual audit with the Racing Board, the Clerk of
20the House of Representatives and the Secretary of the Senate,
21and shall make copies of each annual audit available to the
22public upon request and upon payment of the reasonable cost of
23photocopying the requested number of copies.
24 The 11 1/2% paid to the breeders in accordance with this
25subsection shall be distributed as follows:
26 (1) 60% of such sum shall be paid to the breeder of the

HB3564- 181 -LRB099 06481 MLM 31222 b
1 horse which finishes in the official first position;
2 (2) 20% of such sum shall be paid to the breeder of the
3 horse which finishes in the official second position;
4 (3) 15% of such sum shall be paid to the breeder of the
5 horse which finishes in the official third position; and
6 (4) 5% of such sum shall be paid to the breeder of the
7 horse which finishes in the official fourth position.
8 Such payments shall not reduce any award to the owners of a
9horse or reduce the taxes payable under this Act. Upon
10completion of its racing meet, each organization licensee shall
11deliver to the organization representing thoroughbred breeders
12and owners whose representative serves on the Illinois
13Thoroughbred Breeders Fund Advisory Board a listing of all the
14Illinois foaled and the Illinois conceived and foaled horses
15which won breeders' awards and the amount of such breeders'
16awards in accordance with the provisions of this Act. Such
17payments shall be delivered by the organization licensee within
1830 days of the end of each race meeting.
19 (k) The term "breeder", as used herein, means the owner of
20the mare at the time the foal is dropped. An "Illinois foaled
21horse" is a foal dropped by a mare which enters this State on
22or before December 1, in the year in which the horse is bred,
23provided the mare remains continuously in this State until its
24foal is born. An "Illinois foaled horse" also means a foal born
25of a mare in the same year as the mare enters this State on or
26before March 1, and remains in this State at least 30 days

HB3564- 182 -LRB099 06481 MLM 31222 b
1after foaling, is bred back during the season of the foaling to
2an Illinois Registered Stallion (unless a veterinarian
3certifies that the mare should not be bred for health reasons),
4and is not bred to a stallion standing in any other state
5during the season of foaling. An "Illinois foaled horse" also
6means a foal born in Illinois of a mare purchased at public
7auction subsequent to the mare entering this State on or before
8March 1 prior to February 1 of the foaling year providing the
9mare is owned solely by one or more Illinois residents or an
10Illinois entity that is entirely owned by one or more Illinois
11residents.
12 (l) The Department of Agriculture shall, by rule, with the
13advice and assistance of the Illinois Thoroughbred Breeders
14Fund Advisory Board:
15 (1) Qualify stallions for Illinois breeding; such
16 stallions to stand for service within the State of Illinois
17 at the time of a foal's conception. Such stallion must not
18 stand for service at any place outside the State of
19 Illinois during the calendar year in which the foal is
20 conceived. The Department of Agriculture may assess and
21 collect an application fee of up to $500 fees for the
22 registration of Illinois-eligible stallions. All fees
23 collected are to be held in trust accounts for the purposes
24 set forth in this Act and in accordance with Section 205-15
25 of the Department of Agriculture Law paid into the Illinois
26 Thoroughbred Breeders Fund.

HB3564- 183 -LRB099 06481 MLM 31222 b
1 (2) Provide for the registration of Illinois conceived
2 and foaled horses and Illinois foaled horses. No such horse
3 shall compete in the races limited to Illinois conceived
4 and foaled horses or Illinois foaled horses or both unless
5 registered with the Department of Agriculture. The
6 Department of Agriculture may prescribe such forms as are
7 necessary to determine the eligibility of such horses. The
8 Department of Agriculture may assess and collect
9 application fees for the registration of Illinois-eligible
10 foals. All fees collected are to be held in trust accounts
11 for the purposes set forth in this Act and in accordance
12 with Section 205-15 of the Department of Agriculture Law
13 paid into the Illinois Thoroughbred Breeders Fund. No
14 person shall knowingly prepare or cause preparation of an
15 application for registration of such foals containing
16 false information.
17 (m) The Department of Agriculture, with the advice and
18assistance of the Illinois Thoroughbred Breeders Fund Advisory
19Board, shall provide that certain races limited to Illinois
20conceived and foaled and Illinois foaled horses be stakes races
21and determine the total amount of stakes and awards to be paid
22to the owners of the winning horses in such races.
23 In determining the stakes races and the amount of awards
24for such races, the Department of Agriculture shall consider
25factors, including but not limited to, the amount of money
26appropriated for the Illinois Thoroughbred Breeders Fund

HB3564- 184 -LRB099 06481 MLM 31222 b
1program, organization licensees' contributions, availability
2of stakes caliber horses as demonstrated by past performances,
3whether the race can be coordinated into the proposed racing
4dates within organization licensees' racing dates, opportunity
5for colts and fillies and various age groups to race, public
6wagering on such races, and the previous racing schedule.
7 (n) The Board and the organizational licensee shall notify
8the Department of the conditions and minimum purses for races
9limited to Illinois conceived and foaled and Illinois foaled
10horses conducted for each organizational licensee conducting a
11thoroughbred racing meeting. The Department of Agriculture
12with the advice and assistance of the Illinois Thoroughbred
13Breeders Fund Advisory Board may allocate monies for purse
14supplements for such races. In determining whether to allocate
15money and the amount, the Department of Agriculture shall
16consider factors, including but not limited to, the amount of
17money appropriated for the Illinois Thoroughbred Breeders Fund
18program, the number of races that may occur, and the
19organizational licensee's purse structure.
20 (o) (Blank).
21(Source: P.A. 98-692, eff. 7-1-14.)
22 (230 ILCS 5/30.5)
23 Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
24 (a) The General Assembly declares that it is the policy of
25this State to encourage the breeding of racing quarter horses

HB3564- 185 -LRB099 06481 MLM 31222 b
1in this State and the ownership of such horses by residents of
2this State in order to provide for sufficient numbers of high
3quality racing quarter horses in this State and to establish
4and preserve the agricultural and commercial benefits of such
5breeding and racing industries to the State of Illinois. It is
6the intent of the General Assembly to further this policy by
7the provisions of this Act.
8 (b) There is hereby created a non-appropriated trust
9special fund in the State Treasury to be known as the Illinois
10Racing Quarter Horse Breeders Fund, which is held separately
11from State moneys. Except as provided in subsection (g) of
12Section 27 of this Act, 8.5% of all the moneys received by the
13State as pari-mutuel taxes on quarter horse racing shall be
14paid into the Illinois Racing Quarter Horse Breeders Fund. The
15Illinois Racing Quarter Horse Breeders Fund shall not be
16subject to administrative charges or chargebacks, including,
17but not limited to, those authorized under Section 8h of the
18State Finance Act.
19 (c) The Illinois Racing Quarter Horse Breeders Fund shall
20be administered by the Department of Agriculture with the
21advice and assistance of the Advisory Board created in
22subsection (d) of this Section.
23 (d) The Illinois Racing Quarter Horse Breeders Fund
24Advisory Board shall consist of the Director of the Department
25of Agriculture, who shall serve as Chairman; a member of the
26Illinois Racing Board, designated by it; one representative of

HB3564- 186 -LRB099 06481 MLM 31222 b
1the organization licensees conducting pari-mutuel quarter
2horse racing meetings, recommended by them; 2 representatives
3of the Illinois Running Quarter Horse Association, recommended
4by it; and the Superintendent of Fairs and Promotions from the
5Department of Agriculture. Advisory Board members shall serve
6for 2 years commencing January 1 of each odd numbered year. If
7representatives have not been recommended by January 1 of each
8odd numbered year, the Director of the Department of
9Agriculture may make an appointment for the organization
10failing to so recommend a member of the Advisory Board.
11Advisory Board members shall receive no compensation for their
12services as members but may be reimbursed for all actual and
13necessary expenses and disbursements incurred in the execution
14of their official duties.
15 (e) Moneys in No moneys shall be expended from the Illinois
16Racing Quarter Horse Breeders Fund except as appropriated by
17the General Assembly. Moneys appropriated from the Illinois
18Racing Quarter Horse Breeders Fund shall be expended by the
19Department of Agriculture, with the advice and assistance of
20the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
21for the following purposes only:
22 (1) To provide stakes and awards to be paid to the
23 owners of the winning horses in certain races. This
24 provision is limited to Illinois conceived and foaled
25 horses.
26 (2) To provide an award to the owner or owners of an

HB3564- 187 -LRB099 06481 MLM 31222 b
1 Illinois conceived and foaled horse that wins a race when
2 pari-mutuel wagering is conducted; providing the race is
3 not restricted to Illinois conceived and foaled horses.
4 (3) To provide purse money for an Illinois stallion
5 stakes program.
6 (4) To provide for purses to be distributed for the
7 running of races during the Illinois State Fair and the
8 DuQuoin State Fair exclusively for quarter horses
9 conceived and foaled in Illinois.
10 (5) To provide for purses to be distributed for the
11 running of races at Illinois county fairs exclusively for
12 quarter horses conceived and foaled in Illinois.
13 (6) To provide for purses to be distributed for running
14 races exclusively for quarter horses conceived and foaled
15 in Illinois at locations in Illinois determined by the
16 Department of Agriculture with advice and consent of the
17 Illinois Racing Quarter Horse Breeders Fund Advisory
18 Board.
19 (7) No less than 90% of all moneys expended
20 appropriated from the Illinois Racing Quarter Horse
21 Breeders Fund shall be expended for the purposes in items
22 (1), (2), (3), (4), and (5) of this subsection (e).
23 (8) To provide for research programs concerning the
24 health, development, and care of racing quarter horses.
25 (9) To provide for dissemination of public information
26 designed to promote the breeding of racing quarter horses

HB3564- 188 -LRB099 06481 MLM 31222 b
1 in Illinois.
2 (10) To provide for expenses incurred in the
3 administration of the Illinois Racing Quarter Horse
4 Breeders Fund.
5 (f) The Department of Agriculture shall, by rule, with the
6advice and assistance of the Illinois Racing Quarter Horse
7Breeders Fund Advisory Board:
8 (1) Qualify stallions for Illinois breeding; such
9 stallions to stand for service within the State of
10 Illinois, at the time of a foal's conception. Such stallion
11 must not stand for service at any place outside the State
12 of Illinois during the calendar year in which the foal is
13 conceived. The Department of Agriculture may assess and
14 collect application fees for the registration of
15 Illinois-eligible stallions. All fees collected are to be
16 paid into the Illinois Racing Quarter Horse Breeders Fund.
17 (2) Provide for the registration of Illinois conceived
18 and foaled horses. No such horse shall compete in the races
19 limited to Illinois conceived and foaled horses unless it
20 is registered with the Department of Agriculture. The
21 Department of Agriculture may prescribe such forms as are
22 necessary to determine the eligibility of such horses. The
23 Department of Agriculture may assess and collect
24 application fees for the registration of Illinois-eligible
25 foals. All fees collected are to be paid into the Illinois
26 Racing Quarter Horse Breeders Fund. No person shall

HB3564- 189 -LRB099 06481 MLM 31222 b
1 knowingly prepare or cause preparation of an application
2 for registration of such foals that contains false
3 information.
4 (g) The Department of Agriculture, with the advice and
5assistance of the Illinois Racing Quarter Horse Breeders Fund
6Advisory Board, shall provide that certain races limited to
7Illinois conceived and foaled be stakes races and determine the
8total amount of stakes and awards to be paid to the owners of
9the winning horses in such races.
10(Source: P.A. 98-463, eff. 8-16-13.)
11 (230 ILCS 5/31) (from Ch. 8, par. 37-31)
12 Sec. 31. (a) The General Assembly declares that it is the
13policy of this State to encourage the breeding of standardbred
14horses in this State and the ownership of such horses by
15residents of this State in order to provide for: sufficient
16numbers of high quality standardbred horses to participate in
17harness racing meetings in this State, and to establish and
18preserve the agricultural and commercial benefits of such
19breeding and racing industries to the State of Illinois. It is
20the intent of the General Assembly to further this policy by
21the provisions of this Section of this Act.
22 (b) Each organization licensee conducting a harness racing
23meeting pursuant to this Act shall provide for at least two
24races each race program limited to Illinois conceived and
25foaled horses. A minimum of 6 races shall be conducted each

HB3564- 190 -LRB099 06481 MLM 31222 b
1week limited to Illinois conceived and foaled horses. No horses
2shall be permitted to start in such races unless duly
3registered under the rules of the Department of Agriculture.
4 (b-5) Organization licensees, not including the Illinois
5State Fair or the DuQuoin State Fair, shall provide stake races
6and early closer races for Illinois conceived and foaled horses
7so that purses distributed for such races shall be no less than
817% of total purses distributed for harness racing in that
9calendar year in addition to any stakes payments and starting
10fees contributed by horse owners.
11 (b-10) Each organization licensee conducting a harness
12racing meeting pursuant to this Act shall provide an owner
13award to be paid from the purse account equal to 25% of the
14amount earned by Illinois conceived and foaled horses in races
15that are not restricted to Illinois conceived and foaled
16horses. The owner awards shall not be paid on races below the
17$10,000 claiming class.
18 (c) Conditions of races under subsection (b) shall be
19commensurate with past performance, quality and class of
20Illinois conceived and foaled horses available. If, however,
21sufficient competition cannot be had among horses of that class
22on any day, the races may, with consent of the Board, be
23eliminated for that day and substitute races provided.
24 (d) There is hereby created a special fund of the State
25Treasury to be known as the Illinois Standardbred Breeders
26Fund.

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1 During the calendar year 1981, and each year thereafter,
2except as provided in subsection (g) of Section 27 of this Act,
3eight and one-half per cent of all the monies received by the
4State as privilege taxes on harness racing meetings shall be
5paid into the Illinois Standardbred Breeders Fund.
6 (e) The Illinois Standardbred Breeders Fund shall be
7administered by the Department of Agriculture with the
8assistance and advice of the Advisory Board created in
9subsection (f) of this Section.
10 (f) The Illinois Standardbred Breeders Fund Advisory Board
11is hereby created. The Advisory Board shall consist of the
12Director of the Department of Agriculture, who shall serve as
13Chairman; the Superintendent of the Illinois State Fair; a
14member of the Illinois Racing Board, designated by it; a
15representative of the Illinois Standardbred Owners and
16Breeders Association, recommended by it; a representative of
17the Illinois Association of Agricultural Fairs, recommended by
18it, such representative to be from a fair at which Illinois
19conceived and foaled racing is conducted; a representative of
20the organization licensees conducting harness racing meetings,
21recommended by them and a representative of the Illinois
22Harness Horsemen's Association, recommended by it. Advisory
23Board members shall serve for 2 years commencing January 1, of
24each odd numbered year. If representatives of the Illinois
25Standardbred Owners and Breeders Associations, the Illinois
26Association of Agricultural Fairs, the Illinois Harness

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1Horsemen's Association, and the organization licensees
2conducting harness racing meetings have not been recommended by
3January 1, of each odd numbered year, the Director of the
4Department of Agriculture shall make an appointment for the
5organization failing to so recommend a member of the Advisory
6Board. Advisory Board members shall receive no compensation for
7their services as members but shall be reimbursed for all
8actual and necessary expenses and disbursements incurred in the
9execution of their official duties.
10 (g) No monies shall be expended from the Illinois
11Standardbred Breeders Fund except as appropriated by the
12General Assembly. Monies appropriated from the Illinois
13Standardbred Breeders Fund shall be expended by the Department
14of Agriculture, with the assistance and advice of the Illinois
15Standardbred Breeders Fund Advisory Board for the following
16purposes only:
17 1. To provide purses for races limited to Illinois
18 conceived and foaled horses at the State Fair and the
19 DuQuoin State Fair.
20 2. To provide purses for races limited to Illinois
21 conceived and foaled horses at county fairs.
22 3. To provide purse supplements for races limited to
23 Illinois conceived and foaled horses conducted by
24 associations conducting harness racing meetings.
25 4. No less than 75% of all monies in the Illinois
26 Standardbred Breeders Fund shall be expended for purses in

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

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

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

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1 least 180 30 days prior to foaling and or remain in the
2 State at least 30 days after at the time of foaling.
3 Beginning with the 1996 breeding season and for foals of
4 1997 and thereafter, a foal conceived in the State of
5 Illinois by transported fresh semen may be eligible for
6 Illinois conceived and foaled registration provided all
7 breeding and foaling requirements are met. The stallion
8 must be qualified for Illinois Standardbred Breeders Fund
9 breeding at the time of conception and the mare must be
10 inseminated within the State of Illinois. The foal must be
11 dropped in Illinois and properly registered with the
12 Department of Agriculture in accordance with this Act.
13 3. Provide that at least a 5 day racing program shall
14 be conducted at the State Fair each year, which program
15 shall include at least the following races limited to
16 Illinois conceived and foaled horses: (a) a two year old
17 Trot and Pace, and Filly Division of each; (b) a three year
18 old Trot and Pace, and Filly Division of each; (c) an aged
19 Trot and Pace, and Mare Division of each.
20 4. Provide for the payment of nominating, sustaining
21 and starting fees for races promoting the sport of harness
22 racing and for the races to be conducted at the State Fair
23 as provided in subsection (j) 3 of this Section provided
24 that the nominating, sustaining and starting payment
25 required from an entrant shall not exceed 2% of the purse
26 of such race. All nominating, sustaining and starting

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

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1negotiated.
2 (l) All races held at county fairs and the State Fair which
3receive funds from the Illinois Standardbred Breeders Fund
4shall be conducted in accordance with the rules of the United
5States Trotting Association unless otherwise modified by the
6Department of Agriculture.
7 (m) At all standardbred race meetings held or conducted
8under authority of a license granted by the Board, and at all
9standardbred races held at county fairs which are approved by
10the Department of Agriculture or at the Illinois or DuQuoin
11State Fairs, no one shall jog, train, warm up or drive a
12standardbred horse unless he or she is wearing a protective
13safety helmet, with the chin strap fastened and in place, which
14meets the standards and requirements as set forth in the 1984
15Standard for Protective Headgear for Use in Harness Racing and
16Other Equestrian Sports published by the Snell Memorial
17Foundation, or any standards and requirements for headgear the
18Illinois Racing Board may approve. Any other standards and
19requirements so approved by the Board shall equal or exceed
20those published by the Snell Memorial Foundation. Any
21equestrian helmet bearing the Snell label shall be deemed to
22have met those standards and requirements.
23(Source: P.A. 91-239, eff. 1-1-00.)
24 (230 ILCS 5/31.1) (from Ch. 8, par. 37-31.1)
25 Sec. 31.1. (a) Organization licensees collectively shall

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1contribute annually to charity the sum of $1,000,000 $750,000
2to non-profit organizations that provide medical and family,
3counseling, and similar services to persons who reside or work
4on the backstretch of Illinois racetracks. These contributions
5shall be collected as follows: (i) no later than July 1st of
6each year the Board shall assess each organization licensee,
7except those tracks which are not within 100 miles of each
8other which tracks shall pay $40,000 $30,000 annually apiece
9into the Board charity fund, that amount which equals $920,000
10$690,000 multiplied by the amount of pari-mutuel wagering
11handled by the organization licensee in the year preceding
12assessment and divided by the total pari-mutuel wagering
13handled by all Illinois organization licensees, except those
14tracks which are not within 100 miles of each other, in the
15year preceding assessment; (ii) notice of the assessed
16contribution shall be mailed to each organization licensee;
17(iii) within thirty days of its receipt of such notice, each
18organization licensee shall remit the assessed contribution to
19the Board. If an organization licensee wilfully fails to so
20remit the contribution, the Board may revoke its license to
21conduct horse racing.
22 (b) No later than October 1st of each year, any qualified
23charitable organization seeking an allotment of contributed
24funds shall submit to the Board an application for those funds,
25using the Board's approved form. No later than December 31st of
26each year, the Board shall distribute all such amounts

HB3564- 200 -LRB099 06481 MLM 31222 b
1collected that year to such charitable organization
2applicants.
3(Source: P.A. 87-110.)
4 (230 ILCS 5/32.1)
5 Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
6real estate equalization.
7 (a) In order to encourage new investment in Illinois
8racetrack facilities and mitigate differing real estate tax
9burdens among all racetracks, the licensees affiliated or
10associated with each racetrack that has been awarded live
11racing dates in the current year shall receive an immediate
12pari-mutuel tax credit in an amount equal to the greater of (i)
1350% of the amount of the real estate taxes paid in the prior
14year attributable to that racetrack, or (ii) the amount by
15which the real estate taxes paid in the prior year attributable
16to that racetrack exceeds 60% of the average real estate taxes
17paid in the prior year for all racetracks awarded live horse
18racing meets in the current year.
19 Each year, regardless of whether the organization licensee
20conducted live racing in the year of certification, the Board
21shall certify in writing, prior to December 31, the real estate
22taxes paid in that year for each racetrack and the amount of
23the pari-mutuel tax credit that each organization licensee,
24intertrack wagering licensee, and intertrack wagering location
25licensee that derives its license from such racetrack is

HB3564- 201 -LRB099 06481 MLM 31222 b
1entitled in the succeeding calendar year. The real estate taxes
2considered under this Section for any racetrack shall be those
3taxes on the real estate parcels and related facilities used to
4conduct a horse race meeting and inter-track wagering at such
5racetrack under this Act. In no event shall the amount of the
6tax credit under this Section exceed the amount of pari-mutuel
7taxes otherwise calculated under this Act. The amount of the
8tax credit under this Section shall be retained by each
9licensee and shall not be subject to any reallocation or
10further distribution under this Act. The Board may promulgate
11emergency rules to implement this Section.
12 (b) Beginning on January 1 following the calendar year
13during which an organization licensee begins conducting
14electronic gaming operations pursuant to an electronic gaming
15license issued under the Illinois Gambling Act, the
16organization licensee shall be ineligible to receive a tax
17credit under this Section.
18(Source: P.A. 91-40, eff. 6-25-99.)
19 (230 ILCS 5/34.3 new)
20 Sec. 34.3. Drug testing. The Illinois Racing Board and the
21Department of Agriculture shall jointly establish a program for
22the purpose of conducting drug testing of horses at county
23fairs and shall adopt any rules necessary for enforcement of
24the program. The rules shall include appropriate penalties for
25violations.

HB3564- 202 -LRB099 06481 MLM 31222 b
1 (230 ILCS 5/36) (from Ch. 8, par. 37-36)
2 Sec. 36. (a) Whoever administers or conspires to administer
3to any horse a hypnotic, narcotic, stimulant, depressant or any
4chemical substance which may affect the speed of a horse at any
5time in any race where the purse or any part of the purse is
6made of money authorized by any Section of this Act, except
7those chemical substances permitted by ruling of the Board,
8internally, externally or by hypodermic method in a race or
9prior thereto, or whoever knowingly enters a horse in any race
10within a period of 24 hours after any hypnotic, narcotic,
11stimulant, depressant or any other chemical substance which may
12affect the speed of a horse at any time, except those chemical
13substances permitted by ruling of the Board, has been
14administered to such horse either internally or externally or
15by hypodermic method for the purpose of increasing or retarding
16the speed of such horse shall be guilty of a Class 4 felony.
17The Board shall suspend or revoke such violator's license.
18 (b) The term "hypnotic" as used in this Section includes
19all barbituric acid preparations and derivatives.
20 (c) The term "narcotic" as used in this Section includes
21opium and all its alkaloids, salts, preparations and
22derivatives, cocaine and all its salts, preparations and
23derivatives and substitutes.
24 (d) The provisions of this Section 36 and the treatment
25authorized herein apply to horses entered in and competing in

HB3564- 203 -LRB099 06481 MLM 31222 b
1race meetings as defined in Section 3.07 of this Act and to
2horses entered in and competing at any county fair.
3(Source: P.A. 79-1185.)
4 (230 ILCS 5/39.2 new)
5 Sec. 39.2. Prohibition of political contributions from
6certain licensees and applicants.
7 (a) The General Assembly has a compelling interest in
8protecting the integrity of both the electoral process and the
9legislative process by preventing corruption and the
10appearance of corruption which may arise through permitting
11certain political campaign contributions by certain persons
12involved in the horse racing industry and regulated by the
13State. Unlike most other regulated industries, horse racing is
14especially susceptible to corruption and potential criminal
15influence. In Illinois, only licensed horse racing is legal and
16all other such activities are strictly prohibited. Given these
17circumstances, it is imperative to eliminate any potential
18corrupt influence in the horse racing industry and the
19electoral process.
20 Banning political campaign contributions by certain
21persons subject to this Section to State officeholders and
22candidates for such offices and to county and municipal
23officeholders and candidates for such offices in counties and
24municipalities that receive financial benefits from horse
25racing is necessary to prevent corruption and the appearance of

HB3564- 204 -LRB099 06481 MLM 31222 b
1corruption that may arise when political campaign
2contributions and horse racing that is regulated by the State
3and that confers benefits on counties and municipalities are
4intermingled.
5 (b) As used in this Section:
6 "Affiliated entity" means (i) any corporate parent and each
7operating subsidiary of the business entity applying for or
8holding a license, (ii) each operating subsidiary of the
9corporate parent of the business entity applying for or holding
10a license, (iii) any organization recognized by the United
11States Internal Revenue Service as a tax-exempt organization
12described in Section 501(c) of the Internal Revenue Code of
131986 (or any successor provision of federal tax law)
14established by one or more business entities seeking or holding
15a license, any affiliated entity of such business entity, or
16any affiliated person of such business entity, and (iv) any
17political committee for which the business entity applying for
18or holding a license, or any 501(c) organization described in
19item (iii) related to that business entity, is the sponsoring
20entity, as defined in Section 9-3 of the Election Code. For
21purposes of item (iv), the funding of all business entities
22applying for or holding a license shall be aggregated in
23determining whether such political committee is an affiliated
24entity.
25 "Affiliated person" means (i) any person with any ownership
26interest or distributive share in excess of 1% of any business

HB3564- 205 -LRB099 06481 MLM 31222 b
1entity applying for or holding a license, (ii) executive
2employees of any such business entity, and (iii) the spouse of
3the persons described in items (i) and (ii).
4 "Business entity" means any entity doing business for
5profit, whether organized as a corporation, partnership, sole
6proprietorship, limited liability company, or otherwise.
7 "Contribution" means a contribution as defined in Section
89-1.4 of the Election Code.
9 "Declared candidate" means a person who has filed a
10statement of candidacy and petition for nomination or election
11in the principal office of the State Board of Elections, or in
12the office of the appropriate election authority for any county
13or municipality in which a race track is located.
14 "Executive employee" means (i) any person who is an officer
15or director or who fulfills duties equivalent to those of an
16officer or director of a business entity applying for or
17holding a license and (ii) any employee of such business entity
18who is required to register under the Lobbyist Registration
19Act.
20 "License" means any organization, inter-track wagering,
21inter-track wagering location, advance deposit wagering or
22concessionaire license issued pursuant to this Act.
23 "Officeholder" means the Governor, Lieutenant Governor,
24Attorney General, Secretary of State, Comptroller, Treasurer,
25member of the General Assembly, or any officeholder in any
26county or municipality in which a race track is located.

HB3564- 206 -LRB099 06481 MLM 31222 b
1 (c) Any person or business entity applying for or holding a
2license, any affiliated entities or persons of such business
3entity, any horsemen's association, and any entities or persons
4soliciting a contribution or causing a contribution to be made
5on behalf of such person, business entity, or horsemen's
6association, are prohibited from making any contribution to any
7officeholder or declared candidate or any political committee
8affiliated with any officeholder or declared candidate, as
9defined in Section 9-1.8 of the Election Code. This prohibition
10shall commence upon filing of an application for a license and
11shall continue for a period of 2 years after termination,
12suspension 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 Internet website and in the Illinois Register.
18Payments received by the State pursuant to this subsection
19shall be deposited 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

HB3564- 207 -LRB099 06481 MLM 31222 b
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, horsemen's associations, and
5affiliated entities prohibited from making contributions to
6any officeholder or declared candidate political committee
7pursuant to subsection (c), which list shall be updated and
8published, at a minimum, every 6 months.
9 Any person, business entity, horsemen's association, or
10affiliated entity prohibited from making contributions to any
11officeholder or declared candidate political committee
12pursuant to subsection (c) shall notify the Board within 7 days
13after discovering any necessary change or addition to the
14information relating to that person, business entity,
15horsemen's association, or affiliated entity contained in the
16list.
17 An individual who acts in good faith and in reliance on any
18information contained in the list shall not be subject to any
19penalties or liability imposed for a violation of this Section.
20 (e) If any provision of this Section is held invalid or its
21application to any person or circumstance is held invalid, the
22invalidity of that provision or application does not affect the
23other provisions or applications of this Section that can be
24given effect without the invalid application or provision.
25 (230 ILCS 5/40) (from Ch. 8, par. 37-40)

HB3564- 208 -LRB099 06481 MLM 31222 b
1 Sec. 40. (a) The imposition of any fine or penalty provided
2in this Act shall not preclude the Board in its rules and
3regulations from imposing a fine or penalty for any other
4action which, in the Board's discretion, is a detriment or
5impediment to horse racing.
6 (b) The Director of Agriculture or his or her authorized
7representative shall impose the following monetary penalties
8and hold administrative hearings as required for failure to
9submit the following applications, lists, or reports within the
10time period, date or manner required by statute or rule or for
11removing a foal from Illinois prior to inspection:
12 (1) late filing of a renewal application for offering
13 or standing stallion for service:
14 (A) if an application is submitted no more than 30
15 days late, $50;
16 (B) if an application is submitted no more than 45
17 days late, $150; or
18 (C) if an application is submitted more than 45
19 days late, if filing of the application is allowed
20 under an administrative hearing, $250;
21 (2) late filing of list or report of mares bred:
22 (A) if a list or report is submitted no more than
23 30 days late, $50;
24 (B) if a list or report is submitted no more than
25 60 days late $150; or
26 (C) if a list or report is submitted more than 60

HB3564- 209 -LRB099 06481 MLM 31222 b
1 days late, if filing of the list or report is allowed
2 under an administrative hearing, $250;
3 (3) filing an Illinois foaled thoroughbred mare status
4 report after the statutory deadline as provided in
5 subsection (k) of Section 30 of this Act December 31:
6 (A) if a report is submitted no more than 30 days
7 late, $50;
8 (B) if a report is submitted no more than 90 days
9 late, $150;
10 (C) if a report is submitted no more than 150 days
11 late, $250; or
12 (D) if a report is submitted more than 150 days
13 late, if filing of the report is allowed under an
14 administrative hearing, $500;
15 (4) late filing of application for foal eligibility
16 certificate:
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 90
20 days late, $150;
21 (C) if an application is submitted no more than 150
22 days late, $250; or
23 (D) if an application is submitted more than 150
24 days late, if filing of the application is allowed
25 under an administrative hearing, $500;
26 (5) failure to report the intent to remove a foal from

HB3564- 210 -LRB099 06481 MLM 31222 b
1 Illinois prior to inspection, identification and
2 certification by a Department of Agriculture investigator,
3 $50; and
4 (6) if a list or report of mares bred is incomplete,
5 $50 per mare not included on the list or report.
6 Any person upon whom monetary penalties are imposed under
7this Section 3 times within a 5 year period shall have any
8further monetary penalties imposed at double the amounts set
9forth above. All monies assessed and collected for violations
10relating to thoroughbreds shall be paid into the Thoroughbred
11Breeders Fund. All monies assessed and collected for violations
12relating to standardbreds shall be paid into the Standardbred
13Breeders Fund.
14(Source: P.A. 87-397.)
15 (230 ILCS 5/54)
16 Sec. 54. Horse Racing Equity Fund.
17 (a) There is created in the State Treasury a Fund to be
18known as the Horse Racing Equity Fund. The Fund shall consist
19of moneys paid into it pursuant to subsection (c-5) of Section
2013 of the Illinois Riverboat Gambling Act. The Fund shall be
21administered by the Racing Board.
22 (b) The moneys deposited into the Fund shall be distributed
23by the Racing Board within 10 days after those moneys are
24deposited into the Fund as follows:
25 (1) Fifty percent of all moneys distributed under this

HB3564- 211 -LRB099 06481 MLM 31222 b
1 subsection shall be distributed to organization licensees
2 to be distributed at their race meetings as purses.
3 Fifty-seven percent of the amount distributed under this
4 paragraph (1) shall be distributed for thoroughbred race
5 meetings and 43% shall be distributed for standardbred race
6 meetings. Within each breed, moneys shall be allocated to
7 each organization licensee's purse fund in accordance with
8 the ratio between the purses generated for that breed by
9 that licensee during the prior calendar year and the total
10 purses generated throughout the State for that breed during
11 the prior calendar year.
12 (2) The remaining 50% of the moneys distributed under
13 this subsection (b) shall be distributed pro rata according
14 to the aggregate proportion of state-wide handle at the
15 racetrack, inter-track, and inter-track wagering locations
16 that derive their licenses from a racetrack identified in
17 this paragraph (2) for calendar years 1994, 1996, and 1997
18 to (i) any person (or its successors or assigns) who had
19 operating control of a racing facility at which live racing
20 was conducted in calendar year 1997 and who has operating
21 control of an organization licensee that conducted racing
22 in calendar year 1997 and is a licensee in the current
23 year, or (ii) any person (or its successors or assigns) who
24 has operating control of a racing facility located in a
25 county that is bounded by the Mississippi River that has a
26 population of less than 150,000 according to the 1990

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1 decennial census and conducted an average of 60 days of
2 racing per year between 1985 and 1993 and has been awarded
3 an inter-track wagering license in the current year.
4 If any person identified in this paragraph (2) becomes
5 ineligible to receive moneys from the Fund, such amount
6 shall be redistributed among the remaining persons in
7 proportion to their percentages otherwise calculated.
8(Source: P.A. 98-18, eff. 6-7-13.)
9 (230 ILCS 5/54.75)
10 Sec. 54.75. Horse Racing Equity Trust Fund.
11 (a) There is created a Fund to be known as the Horse Racing
12Equity Trust Fund, which is a non-appropriated trust fund held
13separate and apart from State moneys. The Fund shall consist of
14moneys paid into it by owners licensees under the Illinois
15Riverboat Gambling Act for the purposes described in this
16Section. The Fund shall be administered by the Board. Moneys in
17the Fund shall be distributed as directed and certified by the
18Board in accordance with the provisions of subsection (b).
19 (b) The moneys deposited into the Fund, plus any accrued
20interest on those moneys, shall be distributed within 10 days
21after those moneys are deposited into the Fund as follows:
22 (1) Sixty percent of all moneys distributed under this
23 subsection shall be distributed to organization licensees
24 to be distributed at their race meetings as purses.
25 Fifty-seven percent of the amount distributed under this

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1 paragraph (1) shall be distributed for thoroughbred race
2 meetings and 43% shall be distributed for standardbred race
3 meetings. Within each breed, moneys shall be allocated to
4 each organization licensee's purse fund in accordance with
5 the ratio between the purses generated for that breed by
6 that licensee during the prior calendar year and the total
7 purses generated throughout the State for that breed during
8 the prior calendar year by licensees in the current
9 calendar year.
10 (2) The remaining 40% of the moneys distributed under
11 this subsection (b) shall be distributed as follows:
12 (A) 11% shall be distributed to any person (or its
13 successors or assigns) who had operating control of a
14 racetrack that conducted live racing in 2002 at a
15 racetrack in a county with at least 230,000 inhabitants
16 that borders the Mississippi River and is a licensee in
17 the current year; and
18 (B) the remaining 89% shall be distributed pro rata
19 according to the aggregate proportion of total handle
20 from wagering on live races conducted in Illinois
21 (irrespective of where the wagers are placed) for
22 calendar years 2004 and 2005 to any person (or its
23 successors or assigns) who (i) had majority operating
24 control of a racing facility at which live racing was
25 conducted in calendar year 2002, (ii) is a licensee in
26 the current year, and (iii) is not eligible to receive

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

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1Board for an electronic gaming license. An electronic gaming
2license shall authorize its holder to conduct electronic gaming
3on the grounds of the race track controlled by the licensee's
4race track. Only one electronic gaming license may be awarded
5for any race track. A holder of an electronic gaming license
6shall be subject to the Illinois Gambling Act and rules of the
7Illinois Gaming Board concerning electronic gaming. If the
8person, firm, corporation, or limited liability company having
9operating control of a race track is found by the Illinois
10Gaming Board to be unsuitable for an electronic gaming license
11under the Illinois Gambling Act and rules of the Gaming Board,
12that person, firm, corporation, or limited liability company
13shall not be granted an electronic gaming license. Each license
14shall specify the number of gaming positions that its holder
15may operate.
16 An electronic gaming licensee may not permit persons under
1721 years of age to be present in its electronic gaming
18facility, but the licensee may accept wagers on live racing and
19inter-track wagers at its electronic gaming facility.
20 (b) For purposes of this subsection, "adjusted gross
21receipts" means an electronic gaming licensee's gross receipts
22less winnings paid to wagerers. The adjusted gross receipts by
23an electronic gaming licensee from electronic gaming remaining
24after the payment of taxes under Section 13 of the Illinois
25Gambling Act shall be distributed as follows:
26 (1) Amounts shall be paid to the purse account at the

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

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1the Illinois Thoroughbred Breeders Fund and shall be used for
2owner awards; a stallion program pursuant to paragraph (3) of
3subsection (g) of Section 30 of this Act; and Illinois
4conceived and foaled stakes races pursuant to paragraph (2) of
5subsection (g) of Section 30 of this Act, as specifically
6designated by the horsemen's association representing the
7largest number of owners and trainers who race at the
8organization licensee's race meetings.
9 (e) The Illinois Gaming Board shall submit a report to the
10General Assembly on or before December 31, 2016 that examines
11the feasibility of conducting electronic gaming at the Illinois
12State Fairgrounds in Sangamon County. At a minimum, this report
13shall analyze the projected revenues that will be generated,
14the potential for cannibalization of existing riverboats,
15casinos, or other electronic gaming facilities, and the
16potential detriment to the surrounding area and its population.
17The report shall include the Illinois Gaming Board's findings
18together with appropriate recommendations for legislative
19action.
20 Section 50. The Riverboat Gambling Act is amended by
21changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.4, 7.5, 8, 9,
2211, 11.1, 12, 13, 14, 15, 17.1, 18, 18.1, 19, 20, and 24 and by
23adding Sections 5.3, 7.3a, 7.7, 7.8, 7.9, 7.10, 7.11, 7.12, and
2418.2 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, to fund
11capital projects, and to defray State expenses, including
12unpaid bills.
13 (b) While authorization of riverboat and casino gambling
14will enhance investment, beautification, development and
15tourism in Illinois, it is recognized that it will do so
16successfully only if public confidence and trust in the
17credibility and integrity of the gambling operations and the
18regulatory process is maintained. Therefore, regulatory
19provisions of this Act are designed to strictly regulate the
20facilities, persons, associations and practices related to
21gambling operations pursuant to the police powers of the State,
22including comprehensive law enforcement supervision.
23 (c) The Illinois Gaming Board established under this Act
24should, as soon as possible, inform each applicant for an
25owners 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 manager conducting gambling
25operations on behalf of the State may conduct riverboat

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1gambling on Lake Michigan from a home dock located on Lake
2Michigan. Notwithstanding any provision in this subsection (c)
3to the contrary, a licensee may conduct gambling at its home
4dock facility as provided in Sections 7 and 11. A licensee may
5conduct riverboat gambling authorized under this Act
6regardless of whether it conducts excursion cruises. A licensee
7may permit the continuous ingress and egress of passengers for
8the purpose of gambling.
9 (d) Gambling that is conducted in accordance with this Act
10using slot machines and video games of chance and other
11electronic gambling games as defined in both the Illinois
12Gambling Act and the Illinois Horse Racing Act of 1975 is
13authorized.
14(Source: P.A. 91-40, eff. 6-25-99.)
15 (230 ILCS 10/4) (from Ch. 120, par. 2404)
16 Sec. 4. Definitions. As used in this Act:
17 (a) "Board" means the Illinois Gaming Board.
18 (b) "Occupational license" means a license issued by the
19Board to a person or entity to perform an occupation which the
20Board has identified as requiring a license to engage in
21riverboat gambling, casino gambling, or electronic gaming in
22Illinois.
23 (c) "Gambling game" includes, but is not limited to,
24baccarat, twenty-one, poker, craps, slot machine, video game of
25chance, roulette wheel, klondike table, punchboard, faro

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

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1the Board as a wagering device under this Act.
2 (e) "Managers license" means a license issued by the Board
3to a person or entity to manage gambling operations conducted
4by the State pursuant to Section 7.3 or Section 7.3a.
5 (f) "Dock" means the location where a riverboat moors for
6the purpose of embarking passengers for and disembarking
7passengers from the riverboat.
8 (g) "Gross receipts" means the total amount of money
9exchanged for the purchase of chips, tokens, or electronic
10cards by riverboat patrons.
11 (h) "Adjusted gross receipts" means the gross receipts less
12winnings paid to wagerers.
13 (i) "Cheat" means to alter the selection of criteria which
14determine the result of a gambling game or the amount or
15frequency of payment in a gambling game.
16 (j) (Blank).
17 (k) "Gambling operation" means the conduct of authorized
18gambling games authorized under this Act upon a riverboat or in
19a casino or authorized under this Act and the Illinois Horse
20Racing Act of 1975 at an electronic gaming facility.
21 (l) "License bid" means the lump sum amount of money that
22an applicant bids and agrees to pay the State in return for an
23owners license that is issued or re-issued on or after July 1,
242003.
25 "Table game" means a live gaming apparatus upon which
26gaming is conducted or that determines an outcome that is the

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1object of a wager, including, but not limited to, baccarat,
2twenty-one, blackjack, poker, craps, roulette wheel, klondike
3table, punchboard, faro layout, keno layout, numbers ticket,
4push card, jar ticket, pull tab, or other similar games that
5are authorized by the Board as a wagering device under this
6Act. "Table game" does not include slot machines or video games
7of chance.
8 (m) The terms "minority person", "female", and "person with
9a disability" shall have the same meaning as defined in Section
102 of the Business Enterprise for Minorities, Females, and
11Persons with Disabilities Act.
12 "Casino" means a facility at which lawful gambling is
13authorized as provided in this Act.
14 "Owners license" means a license to conduct riverboat or
15casino gambling operations and the authorization to conduct
16gambling operations under Section 7.3a of this Act, but does
17not include an electronic gaming license.
18 "Licensed owner" means a person who holds an owners
19license.
20 "Electronic gaming" means slot machine gambling, video
21game of chance gambling, or gambling with electronic gambling
22games as defined in the Illinois Gambling Act or defined by the
23Board that is conducted at a race track pursuant to an
24electronic gaming license.
25 "Electronic gaming facility" means the area where the Board
26has authorized electronic gaming at a race track of an

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1organization licensee under the Illinois Horse Racing Act of
21975 that holds an electronic gaming license.
3 "Electronic gaming license" means a license issued by the
4Board under Section 7.7 of this Act authorizing electronic
5gaming at an electronic gaming facility.
6 "Electronic gaming licensee" means an entity that holds an
7electronic gaming license.
8 "Organization licensee" means an entity authorized by the
9Illinois Racing Board to conduct pari-mutuel wagering in
10accordance with the Illinois Horse Racing Act of 1975. With
11respect only to electronic gaming, "organization licensee"
12includes the authorization for electronic gaming created under
13subsection (a) of Section 56 of the Illinois Horse Racing Act
14of 1975.
15(Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)
16 (230 ILCS 10/5) (from Ch. 120, par. 2405)
17 Sec. 5. Gaming Board.
18 (a) (1) There is hereby established the Illinois Gaming
19Board, which shall have the powers and duties specified in this
20Act, and all other powers necessary and proper to fully and
21effectively execute this Act for the purpose of administering,
22regulating, and enforcing the system of riverboat and casino
23gambling and electronic gaming established by this Act. Its
24jurisdiction shall extend under this Act to every person,
25association, corporation, partnership and trust involved in

HB3564- 225 -LRB099 06481 MLM 31222 b
1riverboat and casino gambling operations and electronic gaming
2in the State of Illinois.
3 (2) The Board shall consist of 5 members to be appointed by
4the Governor with the advice and consent of the Senate, one of
5whom shall be designated by the Governor to be chairperson
6chairman. Each member shall have a reasonable knowledge of the
7practice, procedure and principles of gambling operations.
8Each member shall either be a resident of Illinois or shall
9certify that he or she will become a resident of Illinois
10before taking office.
11 On and after the effective date of this amendatory Act of
12the 99th General Assembly, new appointees to the Board must
13include the following:
14 (A) One member who has received, at a minimum, a
15 bachelor's degree from an accredited school and at least 10
16 years of verifiable training and experience in the fields
17 of investigation and law enforcement.
18 (B) One member who is a certified public accountant
19 with experience in auditing and with knowledge of complex
20 corporate structures and transactions.
21 (C) One member who has 5 years' experience as a
22 principal, senior officer, or director of a company or
23 business with either material responsibility for the daily
24 operations and management of the overall company or
25 business or material responsibility for the policy making
26 of the company or business.

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1 (D) One member who is a lawyer licensed to practice law
2 in Illinois.
3 Notwithstanding any provision of this subsection (a), the
4requirements of subparagraphs (A) through (D) of this paragraph
5(2) shall not apply to any person reappointed pursuant to
6paragraph (3).
7 No more than 3 members of the Board may be from the same
8political party. The Board should reflect the ethnic, cultural,
9and geographic diversity of the State. No Board member shall,
10within a period of one year immediately preceding nomination,
11have been employed or received compensation or fees for
12services from a person or entity, or its parent or affiliate,
13that has engaged in business with the Board, a licensee, or a
14licensee under the Illinois Horse Racing Act of 1975. Board
15members must publicly disclose all prior affiliations with
16gaming interests, including any compensation, fees, bonuses,
17salaries, and other reimbursement received from a person or
18entity, or its parent or affiliate, that has engaged in
19business with the Board, a licensee, or a licensee under the
20Illinois Horse Racing Act of 1975. This disclosure must be made
21within 30 days after nomination but prior to confirmation by
22the Senate and must be made available to the members of the
23Senate. At least one member shall be experienced in law
24enforcement and criminal investigation, at least one member
25shall be a certified public accountant experienced in
26accounting and auditing, and at least one member shall be a

HB3564- 227 -LRB099 06481 MLM 31222 b
1lawyer licensed to practice law in Illinois.
2 (3) The terms of office of the Board members shall be 3
3years, except that the terms of office of the initial Board
4members appointed pursuant to this Act will commence from the
5effective date of this Act and run as follows: one for a term
6ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
7a term ending July 1, 1993. Upon the expiration of the
8foregoing terms, the successors of such members shall serve a
9term for 3 years and until their successors are appointed and
10qualified for like terms. Vacancies in the Board shall be
11filled for the unexpired term in like manner as original
12appointments. Each member of the Board shall be eligible for
13reappointment at the discretion of the Governor with the advice
14and consent of the Senate.
15 (4) Each member of the Board shall receive $300 for each
16day the Board meets and for each day the member conducts any
17hearing pursuant to this Act. Each member of the Board shall
18also be reimbursed for all actual and necessary expenses and
19disbursements incurred in the execution of official duties.
20 (5) No person shall be appointed a member of the Board or
21continue to be a member of the Board who is, or whose spouse,
22child or parent is, a member of the board of directors of, or a
23person financially interested in, any gambling operation
24subject to the jurisdiction of this Board, or any race track,
25race meeting, racing association or the operations thereof
26subject to the jurisdiction of the Illinois Racing Board. No

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1Board member shall hold any other public office. No person
2shall be a member of the Board who is not of good moral
3character or who has been convicted of, or is under indictment
4for, a felony under the laws of Illinois or any other state, or
5the United States.
6 (5.5) No member of the Board shall engage in any political
7activity. For the purposes of this Section, "political" means
8any activity in support of or in connection with any campaign
9for federal, State, or local elective office or any political
10organization, but does not include activities (i) relating to
11the support or opposition of any executive, legislative, or
12administrative action (as those terms are defined in Section 2
13of the Lobbyist Registration Act), (ii) relating to collective
14bargaining, or (iii) that are otherwise in furtherance of the
15person's official State duties or governmental and public
16service functions.
17 (6) Any member of the Board may be removed by the Governor
18for neglect of duty, misfeasance, malfeasance, or nonfeasance
19in office or for engaging in any political activity.
20 (7) Before entering upon the discharge of the duties of his
21office, each member of the Board shall take an oath that he
22will faithfully execute the duties of his office according to
23the laws of the State and the rules and regulations adopted
24therewith and shall give bond to the State of Illinois,
25approved by the Governor, in the sum of $25,000. Every such
26bond, when duly executed and approved, shall be recorded in the

HB3564- 229 -LRB099 06481 MLM 31222 b
1office of the Secretary of State. Whenever the Governor
2determines that the bond of any member of the Board has become
3or is likely to become invalid or insufficient, he shall
4require such member forthwith to renew his bond, which is to be
5approved by the Governor. Any member of the Board who fails to
6take oath and give bond within 30 days from the date of his
7appointment, or who fails to renew his bond within 30 days
8after it is demanded by the Governor, shall be guilty of
9neglect of duty and may be removed by the Governor. The cost of
10any bond given by any member of the Board under this Section
11shall be taken to be a part of the necessary expenses of the
12Board.
13 (7.5) For the examination of all mechanical,
14electromechanical, or electronic table games, slot machines,
15slot accounting systems, and other electronic gaming equipment
16for compliance with this Act, the Board may utilize the
17services of one or more independent outside testing
18laboratories that have been accredited by a national
19accreditation body and that, in the judgment of the Board, are
20qualified to perform such examinations.
21 (8) The Board shall employ such personnel as may be
22necessary to carry out its functions and shall determine the
23salaries of all personnel, except those personnel whose
24salaries are determined under the terms of a collective
25bargaining agreement. No person shall be employed to serve the
26Board who is, or whose spouse, parent or child is, an official

HB3564- 230 -LRB099 06481 MLM 31222 b
1of, or has a financial interest in or financial relation with,
2any operator engaged in gambling operations within this State
3or any organization engaged in conducting horse racing within
4this State. For the one year immediately preceding employment,
5an employee shall not have been employed or received
6compensation or fees for services from a person or entity, or
7its parent or affiliate, that has engaged in business with the
8Board, a licensee, or a licensee under the Illinois Horse
9Racing Act of 1975. Any employee violating these prohibitions
10shall be subject to termination of employment. In addition, all
11Board members and employees are subject to the restrictions set
12forth in Section 5-45 of the State Officials and Employees
13Ethics Act.
14 (9) An Administrator shall perform any and all duties that
15the Board shall assign him. The salary of the Administrator
16shall be determined by the Board and, in addition, he shall be
17reimbursed for all actual and necessary expenses incurred by
18him in discharge of his official duties. The Administrator
19shall keep records of all proceedings of the Board and shall
20preserve all records, books, documents and other papers
21belonging to the Board or entrusted to its care. The
22Administrator shall devote his full time to the duties of the
23office and shall not hold any other office or employment.
24 (b) The Board shall have general responsibility for the
25implementation of this Act. Its duties include, without
26limitation, the following:

HB3564- 231 -LRB099 06481 MLM 31222 b
1 (1) To decide promptly and in reasonable order all
2 license applications. Any party aggrieved by an action of
3 the Board denying, suspending, revoking, restricting or
4 refusing to renew a license may request a hearing before
5 the Board. A request for a hearing must be made to the
6 Board in writing within 5 days after service of notice of
7 the action of the Board. Notice of the action of the Board
8 shall be served either by personal delivery or by certified
9 mail, postage prepaid, to the aggrieved party. Notice
10 served by certified mail shall be deemed complete on the
11 business day following the date of such mailing. The Board
12 shall conduct all requested hearings promptly and in
13 reasonable order;
14 (2) To conduct all hearings pertaining to civil
15 violations of this Act or rules and regulations promulgated
16 hereunder;
17 (3) To promulgate such rules and regulations as in its
18 judgment may be necessary to protect or enhance the
19 credibility and integrity of gambling operations
20 authorized by this Act and the regulatory process
21 hereunder;
22 (4) To provide for the establishment and collection of
23 all license and registration fees and taxes imposed by this
24 Act and the rules and regulations issued pursuant hereto.
25 All such fees and taxes shall be deposited into the State
26 Gaming Fund;

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1 (5) To provide for the levy and collection of penalties
2 and fines for the violation of provisions of this Act and
3 the rules and regulations promulgated hereunder. All such
4 fines and penalties shall be deposited into the Education
5 Assistance Fund, created by Public Act 86-0018, of the
6 State of Illinois;
7 (6) To be present through its inspectors and agents any
8 time gambling operations are conducted on any riverboat, in
9 any casino, or at any electronic gaming facility for the
10 purpose of certifying the revenue thereof, receiving
11 complaints from the public, and conducting such other
12 investigations into the conduct of the gambling games and
13 the maintenance of the equipment as from time to time the
14 Board may deem necessary and proper;
15 (7) To review and rule upon any complaint by a licensee
16 regarding any investigative procedures of the State which
17 are unnecessarily disruptive of gambling operations. The
18 need to inspect and investigate shall be presumed at all
19 times. The disruption of a licensee's operations shall be
20 proved by clear and convincing evidence, and establish
21 that: (A) the procedures had no reasonable law enforcement
22 purposes, and (B) the procedures were so disruptive as to
23 unreasonably inhibit gambling operations;
24 (8) To hold at least one meeting each quarter of the
25 fiscal year. In addition, special meetings may be called by
26 the Chairman or any 2 Board members upon 72 hours written

HB3564- 233 -LRB099 06481 MLM 31222 b
1 notice to each member. All Board meetings shall be subject
2 to the Open Meetings Act. Three members of the Board shall
3 constitute a quorum, and 3 votes shall be required for any
4 final determination by the Board. The Board shall keep a
5 complete and accurate record of all its meetings. A
6 majority of the members of the Board shall constitute a
7 quorum for the transaction of any business, for the
8 performance of any duty, or for the exercise of any power
9 which this Act requires the Board members to transact,
10 perform or exercise en banc, except that, upon order of the
11 Board, one of the Board members or an administrative law
12 judge designated by the Board may conduct any hearing
13 provided for under this Act or by Board rule and may
14 recommend findings and decisions to the Board. The Board
15 member or administrative law judge conducting such hearing
16 shall have all powers and rights granted to the Board in
17 this Act. The record made at the time of the hearing shall
18 be reviewed by the Board, or a majority thereof, and the
19 findings and decision of the majority of the Board shall
20 constitute the order of the Board in such case;
21 (9) To maintain records which are separate and distinct
22 from the records of any other State board or commission.
23 Such records shall be available for public inspection and
24 shall accurately reflect all Board proceedings;
25 (10) To file a written annual report with the Governor
26 on or before March 1 each year and such additional reports

HB3564- 234 -LRB099 06481 MLM 31222 b
1 as the Governor may request. The annual report shall
2 include a statement of receipts and disbursements by the
3 Board, actions taken by the Board, and any additional
4 information and recommendations which the Board may deem
5 valuable or which the Governor may request;
6 (11) (Blank);
7 (12) (Blank);
8 (13) To assume responsibility for administration and
9 enforcement of the Video Gaming Act; and
10 (13.1) To assume responsibility for the administration
11 and enforcement of operations at electronic gaming
12 facilities pursuant to this Act and the Illinois Horse
13 Racing Act of 1975; and
14 (14) To adopt, by rule, a code of conduct governing
15 Board members and employees that ensures ensure, to the
16 maximum extent possible, that persons subject to this Code
17 avoid situations, relationships, or associations that may
18 represent or lead to a conflict of interest.
19 (c) The Board shall have jurisdiction over and shall
20supervise all gambling operations governed by this Act. The
21Board shall have all powers necessary and proper to fully and
22effectively execute the provisions of this Act, including, but
23not limited to, the following:
24 (1) To investigate applicants and determine the
25 eligibility of applicants for licenses and to select among
26 competing applicants the applicants which best serve the

HB3564- 235 -LRB099 06481 MLM 31222 b
1 interests of the citizens of Illinois.
2 (2) To have jurisdiction and supervision over all
3 riverboat gambling operations authorized under this Act in
4 this State and all persons in places on riverboats where
5 gambling operations are conducted.
6 (3) To promulgate rules and regulations for the purpose
7 of administering the provisions of this Act and to
8 prescribe rules, regulations and conditions under which
9 all riverboat gambling operations subject to this Act in
10 the State shall be conducted. Such rules and regulations
11 are to provide for the prevention of practices detrimental
12 to the public interest and for the best interests of
13 riverboat gambling, including rules and regulations
14 regarding the inspection of electronic gaming facilities,
15 casinos, and such riverboats and the review of any permits
16 or licenses necessary to operate a riverboat, casino, or
17 electronic gaming facility under any laws or regulations
18 applicable to riverboats, casinos, or electronic gaming
19 facilities, and to impose penalties for violations
20 thereof.
21 (4) To enter the office, riverboats, casinos,
22 electronic gaming facilities, and other facilities, or
23 other places of business of a licensee, where evidence of
24 the compliance or noncompliance with the provisions of this
25 Act is likely to be found.
26 (5) To investigate alleged violations of this Act or

HB3564- 236 -LRB099 06481 MLM 31222 b
1 the rules of the Board and to take appropriate disciplinary
2 action against a licensee or a holder of an occupational
3 license for a violation, or institute appropriate legal
4 action for enforcement, or both.
5 (6) To adopt standards for the licensing of all persons
6 and entities under Section 7 of this Act, as well as for
7 electronic or mechanical gambling games, and to establish
8 fees for such licenses.
9 (7) To adopt appropriate standards for all electronic
10 gaming facilities, riverboats, casinos, and other
11 facilities authorized under this Act.
12 (8) To require that the records, including financial or
13 other statements of any licensee under this Act, shall be
14 kept in such manner as prescribed by the Board and that any
15 such licensee involved in the ownership or management of
16 gambling operations submit to the Board an annual balance
17 sheet and profit and loss statement, list of the
18 stockholders or other persons having a 1% or greater
19 beneficial interest in the gambling activities of each
20 licensee, and any other information the Board deems
21 necessary in order to effectively administer this Act and
22 all rules, regulations, orders and final decisions
23 promulgated under this Act.
24 (9) To conduct hearings, issue subpoenas for the
25 attendance of witnesses and subpoenas duces tecum for the
26 production of books, records and other pertinent documents

HB3564- 237 -LRB099 06481 MLM 31222 b
1 in accordance with the Illinois Administrative Procedure
2 Act, and to administer oaths and affirmations to the
3 witnesses, when, in the judgment of the Board, it is
4 necessary to administer or enforce this Act or the Board
5 rules.
6 (10) To prescribe a form to be used by any licensee
7 involved in the ownership or management of gambling
8 operations as an application for employment for their
9 employees.
10 (11) To revoke or suspend licenses, as the Board may
11 see fit and in compliance with applicable laws of the State
12 regarding administrative procedures, and to review
13 applications for the renewal of licenses. The Board may
14 suspend an owners license, electronic gaming license, or
15 managers license, without notice or hearing, upon a
16 determination that the safety or health of patrons or
17 employees is jeopardized by continuing a gambling
18 operation conducted under that license riverboat's
19 operation. The suspension may remain in effect until the
20 Board determines that the cause for suspension has been
21 abated. The Board may revoke an the owners license,
22 electronic gaming license, or managers license upon a
23 determination that the licensee owner has not made
24 satisfactory progress toward abating the hazard. The
25 authority to revoke or suspend licenses under this
26 paragraph (11) does not extend to the authorization to

HB3564- 238 -LRB099 06481 MLM 31222 b
1 conduct casino gambling operations under Section 7.3a of
2 this Act.
3 (12) To eject or exclude or authorize the ejection or
4 exclusion of, any person from riverboat gambling
5 facilities where that such person is in violation of this
6 Act, rules and regulations thereunder, or final orders of
7 the Board, or where such person's conduct or reputation is
8 such that his or her presence within the riverboat gambling
9 facilities may, in the opinion of the Board, call into
10 question the honesty and integrity of the gambling
11 operations or interfere with the orderly conduct thereof;
12 provided that the propriety of such ejection or exclusion
13 is subject to subsequent hearing by the Board.
14 (13) To require all licensees of gambling operations to
15 utilize a cashless wagering system whereby all players'
16 money is converted to tokens, electronic cards, or chips
17 which shall be used only for wagering in the gambling
18 establishment.
19 (14) (Blank).
20 (15) To suspend, revoke, or restrict licenses, to
21 require the removal of a licensee or an employee of a
22 licensee for a violation of this Act or a Board rule or for
23 engaging in a fraudulent practice, and to impose civil
24 penalties of up to $5,000 against individuals and up to
25 $10,000 or an amount equal to the daily gross receipts,
26 whichever is larger, against licensees for each violation

HB3564- 239 -LRB099 06481 MLM 31222 b
1 of any provision of the Act, any rules adopted by the
2 Board, any order of the Board or any other action which, in
3 the Board's discretion, is a detriment or impediment to
4 riverboat gambling operations. The authority to suspend,
5 revoke, or restrict licenses under this paragraph (15) does
6 not extend to the authorization to conduct casino gambling
7 operations under Section 7.3a of this Act.
8 (16) To hire employees to gather information, conduct
9 investigations and carry out any other tasks contemplated
10 under this Act.
11 (17) To establish minimum levels of insurance to be
12 maintained by licensees.
13 (18) To authorize a licensee to sell or serve alcoholic
14 liquors, wine or beer as defined in the Liquor Control Act
15 of 1934 on board a riverboat or in a casino and to have
16 exclusive authority to establish the hours for sale and
17 consumption of alcoholic liquor on board a riverboat or in
18 a casino, notwithstanding any provision of the Liquor
19 Control Act of 1934 or any local ordinance, and regardless
20 of whether the riverboat makes excursions. The
21 establishment of the hours for sale and consumption of
22 alcoholic liquor on board a riverboat or in a casino is an
23 exclusive power and function of the State. A home rule unit
24 may not establish the hours for sale and consumption of
25 alcoholic liquor on board a riverboat or in a casino. This
26 paragraph (18) amendatory Act of 1991 is a denial and

HB3564- 240 -LRB099 06481 MLM 31222 b
1 limitation of home rule powers and functions under
2 subsection (h) of Section 6 of Article VII of the Illinois
3 Constitution.
4 (19) After consultation with the U.S. Army Corps of
5 Engineers, to establish binding emergency orders upon the
6 concurrence of a majority of the members of the Board
7 regarding the navigability of water, relative to
8 excursions, in the event of extreme weather conditions,
9 acts of God or other extreme circumstances.
10 (20) To delegate the execution of any of its powers
11 under this Act for the purpose of administering and
12 enforcing this Act and the its rules adopted by the Board
13 under this Act and regulations hereunder.
14 (20.5) To approve any contract entered into on its
15 behalf.
16 (20.6) To appoint investigators to conduct
17 investigations, searches, seizures, arrests, and other
18 duties imposed under this Act, as deemed necessary by the
19 Board. These investigators have and may exercise all of the
20 rights and powers of peace officers, provided that these
21 powers shall be limited to offenses or violations occurring
22 or committed in a casino, in an electronic gaming facility,
23 or on a riverboat or dock, as defined in subsections (d)
24 and (f) of Section 4, or as otherwise provided by this Act
25 or any other law.
26 (20.7) To contract with the Department of State Police

HB3564- 241 -LRB099 06481 MLM 31222 b
1 for the use of trained and qualified State police officers
2 and with the Department of Revenue for the use of trained
3 and qualified Department of Revenue investigators to
4 conduct investigations, searches, seizures, arrests, and
5 other duties imposed under this Act and to exercise all of
6 the rights and powers of peace officers, provided that the
7 powers of Department of Revenue investigators under this
8 paragraph subdivision (20.7) shall be limited to offenses
9 or violations occurring or committed in a casino, in an
10 electronic gaming facility, or on a riverboat or dock, as
11 defined in subsections (d) and (f) of Section 4, or as
12 otherwise provided by this Act or any other law. In the
13 event the Department of State Police or the Department of
14 Revenue is unable to fill contracted police or
15 investigative positions, the Board may appoint
16 investigators to fill those positions pursuant to
17 paragraph subdivision (20.6).
18 (21) To adopt rules concerning the conduct of
19 electronic gaming.
20 (22) To have the same jurisdiction and supervision over
21 casinos and electronic gaming facilities as the Board has
22 over riverboats, including, but not limited to, the power
23 to (i) investigate, review, and approve contracts as that
24 power is applied to riverboats, (ii) adopt standards for
25 the licensing of all persons involved with a casino or
26 electronic gaming facility, (iii) investigate alleged

HB3564- 242 -LRB099 06481 MLM 31222 b
1 violations of this Act by any person involved with a casino
2 or electronic gaming facility, and (iv) require that
3 records, including financial or other statements of any
4 casino or electronic gaming facility, shall be kept in such
5 manner as prescribed by the Board.
6 (23) (21) To take any other action as may be reasonable
7 or appropriate to enforce this Act and the rules adopted by
8 the board under this Act and regulations hereunder.
9 All Board powers enumerated in this Section in relation to
10licensees shall apply equally to the holder of a managers
11license issued pursuant to Section 7.3 of this Act.
12 (d) The Board may seek and shall receive the cooperation of
13the Department of State Police in conducting background
14investigations of applicants and in fulfilling its
15responsibilities under this Section. Costs incurred by the
16Department of State Police as a result of such cooperation
17shall be paid by the Board in conformance with the requirements
18of Section 2605-400 of the Department of State Police Law (20
19ILCS 2605/2605-400).
20 (e) The Board must authorize to each investigator and to
21any other employee of the Board exercising the powers of a
22peace officer a distinct badge that, on its face, (i) clearly
23states that the badge is authorized by the Board and (ii)
24contains a unique identifying number. No other badge shall be
25authorized by the Board.
26 (f) The Board, on behalf of the State of Illinois, is

HB3564- 243 -LRB099 06481 MLM 31222 b
1authorized to acquire by conveyance from the City of Chicago in
2Cook County, Illinois real estate acquired by the City of
3Chicago under subsection (b) of Section 7.3a of this Act.
4 The Board shall have the authority to hold title to
5property as provided in subsection (b) of Section 7.3a of this
6Act.
7(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)
8 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)
9 Sec. 5.1. Disclosure of records.
10 (a) Notwithstanding any applicable statutory provision to
11the contrary, the Board shall, on written request from any
12person, provide information furnished by an applicant or
13licensee concerning the applicant or licensee, his products,
14services or gambling enterprises and his business holdings, as
15follows:
16 (1) The name, business address and business telephone
17 number of any applicant or licensee.
18 (2) An identification of any applicant or licensee
19 including, if an applicant or licensee is not an
20 individual, the names and addresses of all stockholders and
21 directors, if the entity is a corporation; the names and
22 addresses of all members, if the entity is a limited
23 liability company; the names and addresses of all partners,
24 both general and limited, if the entity is a partnership;
25 and the names and addresses of all beneficiaries, if the

HB3564- 244 -LRB099 06481 MLM 31222 b
1 entity is a trust the state of incorporation or
2 registration, the corporate officers, and the identity of
3 all shareholders or participants. If an applicant or
4 licensee has a pending registration statement filed with
5 the Securities and Exchange Commission, only the names of
6 those persons or entities holding interest of 5% or more
7 must be provided.
8 (3) An identification of any business, including, if
9 applicable, the state of incorporation or registration, in
10 which an applicant or licensee or an applicant's or
11 licensee's spouse or children has an equity interest of
12 more than 1%. If an applicant or licensee is a corporation,
13 partnership or other business entity, the applicant or
14 licensee shall identify any other corporation, partnership
15 or business entity in which it has an equity interest of 1%
16 or more, including, if applicable, the state of
17 incorporation or registration. This information need not
18 be provided by a corporation, partnership or other business
19 entity that has a pending registration statement filed with
20 the Securities and Exchange Commission.
21 (4) Whether an applicant or licensee has been indicted,
22 convicted, pleaded guilty or nolo contendere, or forfeited
23 bail concerning any criminal offense under the laws of any
24 jurisdiction, either felony or misdemeanor (except for
25 traffic violations), including the date, the name and
26 location of the court, arresting agency and prosecuting

HB3564- 245 -LRB099 06481 MLM 31222 b
1 agency, the case number, the offense, the disposition and
2 the location and length of incarceration.
3 (5) Whether an applicant or licensee has had any
4 license or certificate issued by a licensing authority in
5 Illinois or any other jurisdiction denied, restricted,
6 suspended, revoked or not renewed and a statement
7 describing the facts and circumstances concerning the
8 denial, restriction, suspension, revocation or
9 non-renewal, including the licensing authority, the date
10 each such action was taken, and the reason for each such
11 action.
12 (6) Whether an applicant or licensee has ever filed or
13 had filed against it a proceeding in bankruptcy or has ever
14 been involved in any formal process to adjust, defer,
15 suspend or otherwise work out the payment of any debt
16 including the date of filing, the name and location of the
17 court, the case and number of the disposition.
18 (7) Whether an applicant or licensee has filed, or been
19 served with a complaint or other notice filed with any
20 public body, regarding the delinquency in the payment of,
21 or a dispute over the filings concerning the payment of,
22 any tax required under federal, State or local law,
23 including the amount, type of tax, the taxing agency and
24 time periods involved.
25 (8) A statement listing the names and titles of all
26 public officials or officers of any unit of government, and

HB3564- 246 -LRB099 06481 MLM 31222 b
1 relatives of said public officials or officers who,
2 directly or indirectly, own any financial interest in, have
3 any beneficial interest in, are the creditors of or hold
4 any debt instrument issued by, or hold or have any interest
5 in any contractual or service relationship with, an
6 applicant or licensee.
7 (9) Whether an applicant or licensee has made, directly
8 or indirectly, any political contribution, or any loans,
9 donations or other payments, to any candidate or office
10 holder, within 5 years from the date of filing the
11 application, including the amount and the method of
12 payment.
13 (10) The name and business telephone number of the
14 counsel representing an applicant or licensee in matters
15 before the Board.
16 (11) A description of any proposed or approved
17 riverboat or casino gaming or electronic gaming operation,
18 including the type of boat, home dock or casino or
19 electronic gaming location, expected economic benefit to
20 the community, anticipated or actual number of employees,
21 any statement from an applicant or licensee regarding
22 compliance with federal and State affirmative action
23 guidelines, projected or actual admissions and projected
24 or actual adjusted gross gaming receipts.
25 (12) A description of the product or service to be
26 supplied by an applicant for a supplier's license.

HB3564- 247 -LRB099 06481 MLM 31222 b
1 (b) Notwithstanding any applicable statutory provision to
2the contrary, the Board shall, on written request from any
3person, also provide the following information:
4 (1) The amount of the wagering tax and admission tax
5 paid daily to the State of Illinois by the holder of an
6 owner's license.
7 (2) Whenever the Board finds an applicant for an
8 owner's license unsuitable for licensing, a copy of the
9 written letter outlining the reasons for the denial.
10 (3) Whenever the Board has refused to grant leave for
11 an applicant to withdraw his application, a copy of the
12 letter outlining the reasons for the refusal.
13 (c) Subject to the above provisions, the Board shall not
14disclose any information which would be barred by:
15 (1) Section 7 of the Freedom of Information Act; or
16 (2) The statutes, rules, regulations or
17 intergovernmental agreements of any jurisdiction.
18 (d) The Board may assess fees for the copying of
19information in accordance with Section 6 of the Freedom of
20Information Act.
21(Source: P.A. 96-1392, eff. 1-1-11.)
22 (230 ILCS 10/5.3 new)
23 Sec. 5.3. Ethical conduct.
24 (a) Officials and employees of the corporate authority of a
25host community must carry out their duties and responsibilities

HB3564- 248 -LRB099 06481 MLM 31222 b
1in such a manner as to promote and preserve public trust and
2confidence in the integrity and conduct of gaming.
3 (b) Officials and employees of the corporate authority of a
4host community shall not use or attempt to use his or her
5official position to secure or attempt to secure any privilege,
6advantage, favor, or influence for himself or herself or
7others.
8 (c) Officials and employees of the corporate authority of a
9host community may not have a financial interest, directly or
10indirectly, in his or her own name or in the name of any other
11person, partnership, association, trust, corporation, or other
12entity in any contract or subcontract for the performance of
13any work for a riverboat or casino that is located in the host
14community. This prohibition shall extend to the holding or
15acquisition of an interest in any entity identified by Board
16action that, in the Board's judgment, could represent the
17potential for or the appearance of a financial interest. The
18holding or acquisition of an interest in such entities through
19an indirect means, such as through a mutual fund, shall not be
20prohibited, except that the Board may identify specific
21investments or funds that, in its judgment, are so influenced
22by gaming holdings as to represent the potential for or the
23appearance of a conflict of interest.
24 (d) Officials and employees of the corporate authority of a
25host community may not accept any gift, gratuity, service,
26compensation, travel, lodging, or thing of value, with the

HB3564- 249 -LRB099 06481 MLM 31222 b
1exception of unsolicited items of an incidental nature, from
2any person, corporation, or entity doing business with the
3riverboat or casino that is located in the host community.
4 (e) Officials and employees of the corporate authority of a
5host community shall not, during the period that the person is
6an official or employee of the corporate authority or for a
7period of 2 years immediately after leaving such office,
8knowingly accept employment or receive compensation or fees for
9services from a person or entity, or its parent or affiliate,
10that has engaged in business with the riverboat or casino that
11is located in the host community that resulted in contracts
12with an aggregate value of at least $25,000 or if that official
13or employee has made a decision that directly applied to the
14person or entity, or its parent or affiliate.
15 (f) A spouse, child, or parent of an official or employee
16of the corporate authority of a host community may not have a
17financial interest, directly or indirectly, in his or her own
18name or in the name of any other person, partnership,
19association, trust, corporation, or other entity in any
20contract or subcontract for the performance of any work for a
21riverboat or casino in the host community. This prohibition
22shall extend to the holding or acquisition of an interest in
23any entity identified by Board action that, in the judgment of
24the Board, could represent the potential for or the appearance
25of a conflict of interest. The holding or acquisition of an
26interest in such entities through an indirect means, such as

HB3564- 250 -LRB099 06481 MLM 31222 b
1through a mutual fund, shall not be prohibited, expect that the
2Board may identify specific investments or funds that, in its
3judgment, are so influenced by gaming holdings as to represent
4the potential for or the appearance of a conflict of interest.
5 (g) A spouse, child, or parent of an official or employee
6of the corporate authority of a host community may not accept
7any gift, gratuity, service, compensation, travel, lodging, or
8thing of value, with the exception of unsolicited items of an
9incidental nature, from any person, corporation, or entity
10doing business with the riverboat or casino that is located in
11the host community.
12 (h) A spouse, child, or parent of an official or employee
13of the corporate authority of a host community may not, during
14the period that the person is an official of the corporate
15authority or for a period of 2 years immediately after leaving
16such office or employment, knowingly accept employment or
17receive compensation or fees for services from a person or
18entity, or its parent or affiliate, that has engaged in
19business with the riverboat or casino that is located in the
20host community that resulted in contracts with an aggregate
21value of at least $25,000 or if that official or employee has
22made a decision that directly applied to the person or entity,
23or its parent or affiliate.
24 (i) Officials and employees of the corporate authority of a
25host community shall not attempt, in any way, to influence any
26person or entity doing business with the riverboat or casino

HB3564- 251 -LRB099 06481 MLM 31222 b
1that is located in the host community or any officer, agent, or
2employee thereof to hire or contract with any person or entity
3for any compensated work.
4 (j) Any communication between an official of the corporate
5authority of a host community and any applicant for an owners
6license in the host community, or an officer, director, or
7employee of a riverboat or casino in the host community,
8concerning any matter relating in any way to gaming shall be
9disclosed to the Board. Such disclosure shall be in writing by
10the official within 30 days after the communication and shall
11be filed with the Board. Disclosure must consist of the date of
12the communication, the identity and job title of the person
13with whom the communication was made, a brief summary of the
14communication, the action requested or recommended, all
15responses made, the identity and job title of the person making
16the response, and any other pertinent information. Public
17disclosure of the written summary provided to the Board and the
18Gaming Board shall be subject to the exemptions provided under
19the Freedom of Information Act.
20 This subsection (j) shall not apply to communications
21regarding traffic, law enforcement, security, environmental
22issues, city services, transportation, or other routine
23matters concerning the ordinary operations of the riverboat or
24casino. For purposes of this subsection (j), "ordinary
25operations" means operations relating to the casino or
26riverboat facility other than the conduct of gambling

HB3564- 252 -LRB099 06481 MLM 31222 b
1activities, and "routine matters" includes the application
2for, issuance of, renewal of, and other processes associated
3with municipal permits and licenses.
4 (k) Any official or employee who violates any provision of
5this Section is guilty of a Class 4 felony.
6 (l) For purposes of this Section, "host community" or "host
7municipality" means a unit of local government that contains a
8riverboat or casino within its borders, but does not include
9the City of Chicago.
10 (230 ILCS 10/6) (from Ch. 120, par. 2406)
11 Sec. 6. Application for Owners License.
12 (a) A qualified person may apply to the Board for an owners
13license to conduct a riverboat gambling operation as provided
14in Section 7 of this Act. The application shall be made on
15forms provided by the Board and shall contain such information
16as the Board prescribes, including but not limited to the
17identity of the riverboat on which such gambling operation is
18to be conducted, if applicable, and the exact location where
19such riverboat or casino will be located docked, a
20certification that the riverboat will be registered under this
21Act at all times during which gambling operations are conducted
22on board, detailed information regarding the ownership and
23management of the applicant, and detailed personal information
24regarding the applicant. Any application for an owners license
25to be re-issued on or after June 1, 2003 shall also include the

HB3564- 253 -LRB099 06481 MLM 31222 b
1applicant's license bid in a form prescribed by the Board.
2Information provided on the application shall be used as a
3basis for a thorough background investigation which the Board
4shall conduct with respect to each applicant. An incomplete
5application shall be cause for denial of a license by the
6Board.
7 (a-5) In addition to any other information required under
8this Section, each application for an owners license must
9include the following information:
10 (1) The history and success of the applicant and each
11 person and entity disclosed under subsection (c) of this
12 Section in developing tourism facilities ancillary to
13 gaming, if applicable.
14 (2) The likelihood that granting a license to the
15 applicant will lead to the creation of quality, living wage
16 jobs and permanent, full-time jobs for residents of the
17 State and residents of the unit of local government that is
18 designated as the home dock of the proposed facility where
19 gambling is to be conducted by the applicant.
20 (3) The projected number of jobs that would be created
21 if the license is granted and the projected number of new
22 employees at the proposed facility where gambling is to be
23 conducted by the applicant.
24 (4) The record, if any, of the applicant and its
25 developer in meeting commitments to local agencies,
26 community-based organizations, and employees at other

HB3564- 254 -LRB099 06481 MLM 31222 b
1 locations where the applicant or its developer has
2 performed similar functions as they would perform if the
3 applicant were granted a license.
4 (5) Identification of adverse effects that might be
5 caused by the proposed facility where gambling is to be
6 conducted by the applicant, including the costs of meeting
7 increased demand for public health care, child care, public
8 transportation, affordable housing, and social services,
9 and a plan to mitigate those adverse effects.
10 (6) The record, if any, of the applicant and its
11 developer regarding compliance with:
12 (A) federal, state, and local discrimination, wage
13 and hour, disability, and occupational and
14 environmental health and safety laws; and
15 (B) state and local labor relations and employment
16 laws.
17 (7) The applicant's record, if any, in dealing with its
18 employees and their representatives at other locations.
19 (8) A plan concerning the utilization of
20 minority-owned and female-owned businesses and concerning
21 the hiring of minorities and females.
22 (9) Evidence the applicant used its best efforts to
23 reach a goal of 25% ownership representation by minority
24 persons and 5% ownership representation by females.
25 (b) Applicants shall submit with their application all
26documents, resolutions, and letters of support from the

HB3564- 255 -LRB099 06481 MLM 31222 b
1governing body that represents the municipality or county
2wherein the licensee will be located dock.
3 (c) Each applicant shall disclose the identity of every
4person or entity , association, trust or corporation having a
5greater than 1% direct or indirect pecuniary interest in the
6riverboat gambling operation with respect to which the license
7is sought. If the disclosed entity is a trust, the application
8shall disclose the names and addresses of all the
9beneficiaries; if a corporation, the names and addresses of all
10stockholders and directors; if a partnership, the names and
11addresses of all partners, both general and limited.
12 (d) An application shall be filed and considered in
13accordance with the rules of the Board. Each application shall
14be accompanied by a non-refundable An application fee of
15$100,000. In addition, a non-refundable fee of $50,000 shall be
16paid at the time of filing to defray the costs associated with
17the background investigation conducted by the Board. If the
18costs of the investigation exceed $50,000, the applicant shall
19pay the additional amount to the Board within 7 days after
20requested by the Board. If the costs of the investigation are
21less than $50,000, the applicant shall receive a refund of the
22remaining amount. All information, records, interviews,
23reports, statements, memoranda or other data supplied to or
24used by the Board in the course of its review or investigation
25of an application for a license or a renewal under this Act
26shall be privileged, strictly confidential and shall be used

HB3564- 256 -LRB099 06481 MLM 31222 b
1only for the purpose of evaluating an applicant for a license
2or a renewal. Such information, records, interviews, reports,
3statements, memoranda or other data shall not be admissible as
4evidence, nor discoverable in any action of any kind in any
5court or before any tribunal, board, agency or person, except
6for any action deemed necessary by the Board. The application
7fee shall be deposited into the Gaming Facilities Fee Revenue
8Fund.
9 (e) The Board shall charge each applicant a fee set by the
10Department of State Police to defray the costs associated with
11the search and classification of fingerprints obtained by the
12Board with respect to the applicant's application. These fees
13shall be paid into the State Police Services Fund.
14 (f) The licensed owner shall be the person primarily
15responsible for the boat or casino itself. Only one riverboat
16gambling operation may be authorized by the Board on any
17riverboat or in any casino. The applicant must identify the
18each riverboat or premises it intends to use and certify that
19the riverboat or premises: (1) has the authorized capacity
20required in this Act; (2) is accessible to disabled persons;
21and (3) is fully registered and licensed in accordance with any
22applicable laws.
23 (g) A person who knowingly makes a false statement on an
24application is guilty of a Class A misdemeanor.
25(Source: P.A. 96-1392, eff. 1-1-11.)

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1 (230 ILCS 10/7) (from Ch. 120, par. 2407)
2 Sec. 7. Owners Licenses.
3 (a) The Board shall issue owners licenses to persons or
4entities , firms or corporations which apply for such licenses
5upon payment to the Board of the non-refundable license fee as
6provided in subsection (e) or (e-5) set by the Board, upon
7payment of a $25,000 license fee for the first year of
8operation and a $5,000 license fee for each succeeding year and
9upon a determination by the Board that the applicant is
10eligible for an owners license pursuant to this Act and the
11rules of the Board. From the effective date of this amendatory
12Act of the 95th General Assembly until (i) 3 years after the
13effective date of this amendatory Act of the 95th General
14Assembly, (ii) the date any organization licensee begins to
15operate a slot machine or video game of chance under the
16Illinois Horse Racing Act of 1975 or this Act, (iii) the date
17that payments begin under subsection (c-5) of Section 13 of the
18Act, or (iv) the wagering tax imposed under Section 13 of this
19Act is increased by law to reflect a tax rate that is at least
20as stringent or more stringent than the tax rate contained in
21subsection (a-3) of Section 13, or (v) when an owners licensee
22holding a license issued pursuant to Section 7.1 of this Act
23begins conducting gaming, whichever occurs first, as a
24condition of licensure and as an alternative source of payment
25for those funds payable under subsection (c-5) of Section 13 of
26this the Riverboat Gambling Act, any owners licensee that holds

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1or receives its owners license on or after the effective date
2of this amendatory Act of the 94th General Assembly, other than
3an owners licensee operating a riverboat with adjusted gross
4receipts in calendar year 2004 of less than $200,000,000, must
5pay into the Horse Racing Equity Trust Fund, in addition to any
6other payments required under this Act, an amount equal to 3%
7of the adjusted gross receipts received by the owners licensee.
8The payments required under this Section shall be made by the
9owners licensee to the State Treasurer no later than 3:00
10o'clock p.m. of the day after the day when the adjusted gross
11receipts were received by the owners licensee. A person, firm
12or entity corporation is ineligible to receive an owners
13license if:
14 (1) the person has been convicted of a felony under the
15 laws of this State, any other state, or the United States;
16 (2) the person has been convicted of any violation of
17 Article 28 of the Criminal Code of 1961 or the Criminal
18 Code of 2012, or substantially similar laws of any other
19 jurisdiction;
20 (3) the person or entity has submitted an application
21 for a license under this Act which contains false
22 information;
23 (4) the person is a member of the Board;
24 (5) a person defined in paragraph (1), (2), (3), or (4)
25 is an officer, director or managerial employee of the
26 entity firm or corporation;

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1 (6) the entity firm or corporation employs a person
2 defined in paragraph (1), (2), (3), or (4) who participates
3 in the management or operation of gambling operations
4 authorized under this Act;
5 (7) (blank); or
6 (8) a license of the person or entity , firm or
7 corporation issued under this Act, or a license to own or
8 operate gambling facilities in any other jurisdiction, has
9 been revoked.
10 The Board is expressly prohibited from making changes to
11the requirement that licensees make payment into the Horse
12Racing Equity Trust Fund without the express authority of the
13Illinois General Assembly and making any other rule to
14implement or interpret this amendatory Act of the 95th General
15Assembly. For the purposes of this paragraph, "rules" is given
16the meaning given to that term in Section 1-70 of the Illinois
17Administrative Procedure Act.
18 (b) In determining whether to grant an owners license to an
19applicant, the Board shall consider:
20 (1) the character, reputation, experience and
21 financial integrity of the applicants and of any other or
22 separate person that either:
23 (A) controls, directly or indirectly, such
24 applicant, or
25 (B) is controlled, directly or indirectly, by such
26 applicant or by a person which controls, directly or

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

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1 includes the most qualified number of minority persons,
2 females, and persons with a disability.
3 (c) Each owners license shall specify the place where the
4casino riverboats shall operate or the riverboat shall operate
5and dock.
6 (d) Each applicant shall submit with his application, on
7forms provided by the Board, 2 sets of his fingerprints.
8 (e) In addition to any licenses authorized under subsection
9(e-5) of this Section, the The Board may issue up to 10
10licenses authorizing the holders of such licenses to own
11riverboats. In the application for an owners license, the
12applicant shall state the dock at which the riverboat is based
13and the water on which the riverboat will be located. The Board
14shall issue 5 licenses to become effective not earlier than
15January 1, 1991. Three of such licenses shall authorize
16riverboat gambling on the Mississippi River, or, with approval
17by the municipality in which the riverboat was docked on August
187, 2003 and with Board approval, be authorized to relocate to a
19new location, in a municipality that (1) borders on the
20Mississippi River or is within 5 miles of the city limits of a
21municipality that borders on the Mississippi River and (2), on
22August 7, 2003, had a riverboat conducting riverboat gambling
23operations pursuant to a license issued under this Act; one of
24which shall authorize riverboat gambling from a home dock in
25the city of East St. Louis. One other license shall authorize
26riverboat gambling on the Illinois River in Tazewell County or,

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1with Board approval, shall authorize the riverboat to relocate
2to a new location that is no more than 10 miles away from its
3original location, in a municipality that borders on the
4Illinois River or is within 5 miles of the city limits of a
5municipality that borders on the Illinois River south of
6Marshall County. The Board shall issue one additional license
7to become effective not earlier than March 1, 1992, which shall
8authorize riverboat gambling on the Des Plaines River in Will
9County. The Board may issue 4 additional licenses to become
10effective not earlier than March 1, 1992. In determining the
11water upon which riverboats will operate, the Board shall
12consider the economic benefit which riverboat gambling confers
13on the State, and shall seek to assure that all regions of the
14State share in the economic benefits of riverboat gambling.
15 In granting all licenses, the Board may give favorable
16consideration to economically depressed areas of the State, to
17applicants presenting plans which provide for significant
18economic development over a large geographic area, and to
19applicants who currently operate non-gambling riverboats in
20Illinois. The Board shall review all applications for owners
21licenses, and shall inform each applicant of the Board's
22decision. The Board may grant an owners license to an applicant
23that has not submitted the highest license bid, but if it does
24not select the highest bidder, the Board shall issue a written
25decision explaining why another applicant was selected and
26identifying the factors set forth in this Section that favored

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1the winning bidder. The fee for issuance or renewal of a
2license pursuant to this subsection (e) shall be $100,000.
3 (e-5) In addition to licenses authorized under subsection
4(e) of this Section the Board may issue:
5 (1) one owners license authorizing the conduct of
6 riverboat gambling in Vermilion County;
7 (2) one owners license authorizing the conduct of
8 riverboat gambling in Lake County;
9 (3) one owners license authorizing the conduct of
10 riverboat gambling in Winnebago County; and
11 (4) one owners license authorizing the conduct of
12 riverboat gambling in a municipality that is located in one
13 of the following townships of Cook County: Bloom, Bremen,
14 Calumet, Rich, Thornton, or Worth Township.
15 Each application for a license pursuant to this subsection
16(e-5) shall be submitted to the Board no later than 6 months
17after the effective date of this amendatory Act of the 99th
18General Assembly and shall include the non-refundable
19application fee and the non-refundable background
20investigation fee as provided in subsection (d) of Section 6 of
21this Act. In the event that an applicant submits an application
22for a license pursuant to this subsection (e-5) prior to the
23effective date of this amendatory Act of the 99th General
24Assembly, such applicant shall submit the non-refundable
25application fee and background investigation fee as provided in
26subsection (d) of Section 6 of this Act no later than 6 months

HB3564- 264 -LRB099 06481 MLM 31222 b
1after the effective date of this amendatory Act of the 99th
2General Assembly.
3 The Board shall consider issuing a license pursuant this
4subsection only after the corporate authority of the
5municipality in which the riverboat shall be located has
6certified to the Board the following:
7 (i) that the applicant has negotiated with the
8 corporate authority in good faith;
9 (ii) that the applicant and the corporate authority
10 have mutually agreed on the permanent location of the
11 riverboat;
12 (iii) that the applicant and the corporate authority
13 have mutually agreed on the temporary location of the
14 riverboat;
15 (iv) that the applicant and the corporate authority
16 have mutually agreed on the percentage of revenues that
17 will be shared with the municipality, if any; and
18 (v) that the applicant and the corporate authority have
19 mutually agreed on any zoning, licensing, public health, or
20 other issues that are within the jurisdiction of the
21 municipality.
22 At least 7 days before the corporate authority of a
23municipality submits a certification to the Board concerning
24items (i) through (v) of this subsection, it shall hold a
25public hearing to discuss items (i) through (v), as well as any
26other details concerning the proposed riverboat in the

HB3564- 265 -LRB099 06481 MLM 31222 b
1municipality. The corporate authority must subsequently
2memorialize the details concerning the proposed riverboat or
3casino in a resolution that must be adopted by a majority of
4the corporate authority before any certification is sent to the
5Board. The Board shall not alter, amend, change, or otherwise
6interfere with any agreement between the applicant and the
7corporate authority of the municipality regarding the location
8of any temporary or permanent facility.
9 (e-10) The licenses authorized under subsection (e-5) of
10this Section shall be issued within 12 months after the date
11the license application is submitted. If the Board does not
12issue the licenses within that time period, then the Board
13shall give a written explanation to the applicant as to why it
14has not reached a determination and when it reasonably expects
15to make a determination. The fee for the issuance or renewal of
16a license issued pursuant to this subsection (e-10) shall be
17$100,000. Additionally, a licensee located outside of Cook
18County shall pay a minimum initial fee of $12,500 per gaming
19position, and a licensee located in Cook County shall pay a
20minimum initial fee of $25,000 per gaming position. The initial
21fees payable under this subsection (e-10) shall be deposited
22into the Gaming Facilities Fee Revenue Fund.
23 (e-20) In addition to any other revocation powers granted
24to the Board under this Act, the Board may revoke the owners
25license of a licensee which fails to begin conducting gambling
26within 15 months of receipt of the Board's approval of the

HB3564- 266 -LRB099 06481 MLM 31222 b
1application if the Board determines that license revocation is
2in the best interests of the State.
3 (f) The first 10 owners licenses issued under this Act
4shall permit the holder to own up to 2 riverboats and equipment
5thereon for a period of 3 years after the effective date of the
6license. Holders of the first 10 owners licenses must pay the
7annual license fee for each of the 3 years during which they
8are authorized to own riverboats.
9 (g) Upon the termination, expiration, or revocation of each
10of the first 10 licenses, which shall be issued for a 3 year
11period, all licenses are renewable annually upon payment of the
12fee and a determination by the Board that the licensee
13continues to meet all of the requirements of this Act and the
14Board's rules. However, for licenses renewed on or after May 1,
151998, renewal shall be for a period of 4 years, unless the
16Board sets a shorter period.
17 (h) An owners license issued under this Section, except for
18an owners license issued under subsection (e-5) of this
19Section, shall entitle the licensee to own up to 2 riverboats.
20 A licensee shall limit the number of gaming positions
21gambling participants to 1,200 for any such owners license.
22 A licensee may operate both of its riverboats concurrently,
23provided that the total number of gaming positions gambling
24participants on both riverboats does not exceed 1,200.
25Riverboats licensed to operate on the Mississippi River and the
26Illinois River south of Marshall County shall have an

HB3564- 267 -LRB099 06481 MLM 31222 b
1authorized capacity of at least 500 persons. Any other
2riverboat licensed under this Act shall have an authorized
3capacity of at least 400 persons.
4 (i) A licensed owner is authorized to apply to the Board
5for and, if approved therefor, to receive all licenses from the
6Board necessary for the operation of a riverboat or a casino,
7including a liquor license, a license to prepare and serve food
8for human consumption, and other necessary licenses. All use,
9occupation and excise taxes which apply to the sale of food and
10beverages in this State and all taxes imposed on the sale or
11use of tangible personal property apply to such sales aboard
12the riverboat or in the casino.
13 (j) The Board may issue or re-issue a license authorizing a
14riverboat to dock in a municipality or approve a relocation
15under Section 11.2 only if, prior to the issuance or
16re-issuance of the license or approval, the governing body of
17the municipality in which the riverboat will dock has by a
18majority vote approved the docking of riverboats in the
19municipality. The Board may issue or re-issue a license
20authorizing a riverboat to dock in areas of a county outside
21any municipality or approve a relocation under Section 11.2
22only if, prior to the issuance or re-issuance of the license or
23approval, the governing body of the county has by a majority
24vote approved of the docking of riverboats within such areas.
25 (k) An owners licensee may conduct land-based gambling
26operations upon approval by the Board.

HB3564- 268 -LRB099 06481 MLM 31222 b
1 (l) An owners licensee may conduct gaming at a temporary
2facility pending the construction of a permanent facility or
3the remodeling or relocation of an existing facility to
4accommodate gaming participants for up to 24 months after the
5temporary facility begins to conduct gaming. Upon request by an
6owners licensee and upon a showing of good cause by the owners
7licensee, the Board shall extend the period during which the
8licensee may conduct gaming at a temporary facility by up to 12
9months. The Board shall make rules concerning the conduct of
10gaming from temporary facilities.
11(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
12 (230 ILCS 10/7.3)
13 Sec. 7.3. State conduct of gambling operations; reissued
14license.
15 (a) If, after reviewing each application for a re-issued
16license, the Board determines that the highest prospective
17total revenue to the State would be derived from State conduct
18of the gambling operation in lieu of re-issuing the license,
19the Board shall inform each applicant of its decision. The
20Board shall thereafter have the authority, without obtaining an
21owners license, to conduct casino or riverboat gambling
22operations as previously authorized by the terminated,
23expired, revoked, or nonrenewed license through a licensed
24manager selected pursuant to an open and competitive bidding
25process as set forth in Section 7.5 and as provided in Section

HB3564- 269 -LRB099 06481 MLM 31222 b
17.4.
2 (b) The Board may locate any casino or riverboat on which a
3gambling operation is conducted by the State in any home dock
4or other location authorized by Section 3(c) upon receipt of
5approval from a majority vote of the governing body of the
6municipality or county, as the case may be, in which the
7riverboat will dock.
8 (c) The Board shall have jurisdiction over and shall
9supervise all gambling operations conducted by the State
10provided for in this Act and shall have all powers necessary
11and proper to fully and effectively execute the provisions of
12this Act relating to gambling operations conducted by the
13State.
14 (d) The maximum number of owners licenses authorized under
15Section 7 7(e) shall be reduced by one for each instance in
16which the Board authorizes the State to conduct a casino or
17riverboat gambling operation under subsection (a) in lieu of
18re-issuing a license to an applicant under Section 7.1.
19(Source: P.A. 93-28, eff. 6-20-03.)
20 (230 ILCS 10/7.3a new)
21 Sec. 7.3a. State conduct of gambling operations; Chicago
22casino.
23 (a) The Board is authorized to conduct gambling operations
24on a riverboat or in a casino, through a licensed manager,
25within the City of Chicago.

HB3564- 270 -LRB099 06481 MLM 31222 b
1 (b) The City of Chicago shall select the site for the
2gambling operation and acquire, upon consultation with the
3Capital Development Board, any land necessary for its
4construction. For the purposes of this subsection (b), the City
5of Chicago may acquire, by eminent domain or by condemnation
6proceedings in the manner provided by the Eminent Domain Act,
7real or personal property or interests in real or personal
8property located in the City of Chicago, and the City of
9Chicago shall convey to the Illinois Gaming Board property so
10acquired upon reimbursement to the City of Chicago of the
11purchase price of the property, plus reasonable interest costs.
12The acquisition of property under this subsection (b) is
13declared to be for a public use.
14 (c) The Capital Development Board shall construct, repair,
15and maintain, or contract for and supervise the construction,
16repair, or maintenance of, facilities for use by the Board to
17conduct gambling operations under this Section.
18 (d) The Board must select and license a manager for the
19gambling operations authorized under this Section pursuant to
20Section 7.4 of this Act within 6 months after the effective
21date of this amendatory Act of the 99th General Assembly. The
22Board may, upon written request to the majority and minority
23leaders of the House of Representatives and the Senate no less
24than 14 days prior to the expiration of the 6-month period,
25request an extension on this deadline to select and license a
26manager of no more than 45 days. Either house of the General

HB3564- 271 -LRB099 06481 MLM 31222 b
1Assembly may, by resolution, deny the 45-day extension.
2 (e) The gambling operation authorized under this Section
3shall operate not less than 4,000 positions or more than 6,000
4positions.
5 (f) The Board shall have jurisdiction over and shall
6supervise all gambling operations conducted by the State
7provided for in this Section and shall have all powers
8necessary and proper to fully and effectively execute the
9provisions of this Section relating to gambling operations
10conducted by the State.
11 (230 ILCS 10/7.4)
12 Sec. 7.4. Managers licenses.
13 (a) A qualified person may apply to the Board for a
14managers license to operate and manage any gambling operation
15conducted by the State. The application shall be made on forms
16provided by the Board and shall contain such information as the
17Board prescribes, including but not limited to information
18required in Sections 6(a), (b), and (c) and information
19relating to the applicant's proposed price to manage State
20gambling operations and to provide the riverboat, gambling
21equipment, and supplies necessary to conduct State gambling
22operations.
23 (b) Each applicant must submit evidence to the Board that
24minority persons and females hold ownership interests in the
25applicant of at least 16% and 4%, respectively.

HB3564- 272 -LRB099 06481 MLM 31222 b
1 (c) A person, firm, or corporation is ineligible to receive
2a managers license if:
3 (1) the person has been convicted of a felony under the
4 laws of this State, any other state, or the United States;
5 (2) the person has been convicted of any violation of
6 Article 28 of the Criminal Code of 1961 or the Criminal
7 Code of 2012, or substantially similar laws of any other
8 jurisdiction;
9 (3) the person has submitted an application for a
10 license under this Act which contains false information;
11 (4) the person is a member of the Board;
12 (5) a person defined in paragraph (1), (2), (3), or (4)
13 is an officer, director, or managerial employee of the firm
14 or corporation;
15 (6) the firm or corporation employs a person defined in
16 paragraph (1), (2), (3), or (4) who participates in the
17 management or operation of gambling operations authorized
18 under this Act; or
19 (7) a license of the person, firm, or corporation
20 issued under this Act, or a license to own or operate
21 gambling facilities in any other jurisdiction, has been
22 revoked.
23 (d) Each applicant shall submit with his or her
24application, on forms prescribed by the Board, 2 sets of his or
25her fingerprints.
26 (e) The Board shall charge each applicant a fee, set by the

HB3564- 273 -LRB099 06481 MLM 31222 b
1Board, to defray the costs associated with the background
2investigation conducted by the Board.
3 (f) A person who knowingly makes a false statement on an
4application is guilty of a Class A misdemeanor.
5 (g) The managers license shall be for a term not less than
64 years but not more than to exceed 10 years, shall be
7renewable at the Board's option, and shall contain such terms
8and 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.
13 (h) Issuance of a managers license shall be subject to an
14open and competitive bidding process. The Board may select an
15applicant other than the lowest bidder by price. If it does not
16select the lowest bidder, the Board shall issue a notice of who
17the lowest bidder was and a written decision as to why another
18bidder was selected.
19(Source: P.A. 97-1150, eff. 1-25-13.)
20 (230 ILCS 10/7.5)
21 Sec. 7.5. Competitive Bidding. When the Board determines
22that (i) it will re-issue an owners license pursuant to an open
23and competitive bidding process, as set forth in Section 7.1,
24(ii) or that it will issue a managers license pursuant to an
25open and competitive bidding process, as set forth in Section

HB3564- 274 -LRB099 06481 MLM 31222 b
17.4, or (iii) it will issue an owners license pursuant to an
2open and competitive bidding process, as set forth in Section
37.12, the open and competitive bidding process shall adhere to
4the following procedures:
5 (1) The Board shall make applications for owners and
6managers licenses available to the public and allow a
7reasonable time for applicants to submit applications to the
8Board.
9 (2) During the filing period for owners or managers license
10applications, the Board may retain the services of an
11investment banking firm to assist the Board in conducting the
12open and competitive bidding process.
13 (3) After receiving all of the bid proposals, the Board
14shall open all of the proposals in a public forum and disclose
15the prospective owners or managers names, venture partners, if
16any, and, in the case of applicants for owners licenses, the
17locations of the proposed development sites.
18 (4) The Board shall summarize the terms of the proposals
19and may make this summary available to the public.
20 (5) The Board shall evaluate the proposals within a
21reasonable time and select no more than 3 final applicants to
22make presentations of their proposals to the Board.
23 (6) The final applicants shall make their presentations to
24the Board on the same day during an open session of the Board.
25 (7) As soon as practicable after the public presentations
26by the final applicants, the Board, in its discretion, may

HB3564- 275 -LRB099 06481 MLM 31222 b
1conduct further negotiations among the 3 final applicants.
2During such negotiations, each final applicant may increase its
3license bid or otherwise enhance its bid proposal. At the
4conclusion of such negotiations, the Board shall select the
5winning proposal. In the case of negotiations for an owners
6license, the Board may, at the conclusion of such negotiations,
7make the determination allowed under Section 7.3(a).
8 (8) Upon selection of a winning bid, the Board shall
9evaluate the winning bid within a reasonable period of time for
10licensee suitability in accordance with all applicable
11statutory and regulatory criteria.
12 (9) If the winning bidder is unable or otherwise fails to
13consummate the transaction, (including if the Board determines
14that the winning bidder does not satisfy the suitability
15requirements), the Board may, on the same criteria, select from
16the remaining bidders or make the determination allowed under
17Section 7.3(a).
18(Source: P.A. 93-28, eff. 6-20-03.)
19 (230 ILCS 10/7.7 new)
20 Sec. 7.7. Electronic gaming.
21 (a) The General Assembly finds that the horse racing and
22riverboat gambling industries share many similarities and
23collectively comprise the bulk of the State's gaming industry.
24One feature common to both industries is that each is highly
25regulated by the State of Illinois. The General Assembly

HB3564- 276 -LRB099 06481 MLM 31222 b
1further finds, however, that despite their shared features each
2industry is distinct from the other in that horse racing is and
3continues to be intimately tied to Illinois' agricultural
4economy and is, at its core, a spectator sport. This
5distinction requires the General Assembly to utilize different
6methods to regulate and promote the horse racing industry
7throughout the State. The General Assembly finds that in order
8to promote live horse racing as a spectator sport in Illinois
9and the agricultural economy of this State, it is necessary to
10allow electronic gaming at Illinois race tracks as an ancillary
11use given the success of other states in increasing live racing
12purse accounts and improving the quality of horses
13participating in horse race meetings.
14 (b) The Illinois Gaming Board shall award one electronic
15gaming license to each person or entity having operating
16control of a race track that applies under Section 56 of the
17Illinois Horse Racing Act of 1975, subject to the application
18and eligibility requirements of this Section. Within 60 days
19after the effective date of this amendatory Act of the 99th
20General Assembly, a person or entity having operating control
21of a race track may submit an application for an electronic
22gaming license. The application shall be made on such forms as
23provided by the Board and shall contain such information as the
24Board prescribes, including, but not limited to, the identity
25of any race track at which electronic gaming will be conducted,
26detailed information regarding the ownership and management of

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

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

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1performing custodial or maintenance work must include written
2proof that the person or entity has entered into a labor peace
3agreement with each labor organization that is actively engaged
4in representing and attempting to represent food and beverage,
5hospitality, custodial, and maintenance workers in this State.
6If the application does not include the written proof that the
7applicant has entered into the labor peace agreement, then the
8application shall not be processed and the application must be
9resubmitted. For the purposes of this paragraph, "labor peace
10agreement" means an agreement in which a labor organization
11waives the right of itself and its members to strike, picket,
12or otherwise boycott the operation for at least 3 years.
13 (c) The Board shall determine within 120 days after
14receiving an application for an electronic gaming license
15whether to grant an electronic gaming license to the applicant.
16If the Board does not make a determination within that time
17period, then the Board shall give a written explanation to the
18applicant as to why it has not reached a determination and when
19it reasonably expects to make a determination.
20 The electronic gaming licensee shall purchase up to the
21amount of electronic gaming positions authorized under this Act
22within 120 days after receiving its electronic gaming license.
23If an electronic gaming licensee is prepared to purchase the
24electronic gaming positions, but is temporarily prohibited
25from doing so by order of a court of competent jurisdiction or
26the Board, then the 120-day period is tolled until a resolution

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1is reached.
2 An electronic gaming license shall authorize its holder to
3conduct electronic gaming at its race track at the following
4times:
5 (1) On days when it conducts live racing at the track
6 where its electronic gaming facility is located, from 8:00
7 a.m. until 3:00 a.m. on the following day.
8 (2) On days when it is scheduled to conduct simulcast
9 wagering on races run in the United States, from 8:00 a.m.
10 until 3:00 a.m. on the following day.
11 Additionally, the Board may extend these days of operation
12and hours upon request by an organization licensee as the Board
13sees fit.
14 A license to conduct electronic gaming and any renewal of
15an electronic gaming license shall authorize electronic gaming
16for a period of 4 years. The fee for the issuance or renewal of
17an electronic gaming license shall be $100,000.
18 (d) To be eligible to conduct electronic gaming, a person
19or entity having operating control of a race track must (i)
20obtain an electronic gaming license, (ii) hold an organization
21license under the Illinois Horse Racing Act of 1975, (iii) hold
22an inter-track wagering license, (iv) pay an initial fee of
23$25,000 per gaming position from electronic gaming licensees
24where electronic gaming is conducted in Cook County and $12,500
25for electronic gaming licensees where electronic gaming is
26located outside of Cook County before beginning to conduct

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1electronic gaming, (v) conduct at least 240 live races at each
2track per year or, for a licensee that is only authorized 175
3gaming positions pursuant to subsection (f) of this Section,
4have a fully operational facility running at least 96 live
5races over a period of at least 15 days per year until such
6time as the total number of gaming positions is increased to
7450, (vi) meet the requirements of subsection (a) of Section 56
8of the Illinois Horse Racing Act of 1975, (vii) for
9organization licensees conducting standardbred race meetings
10that had an open backstretch in 2009, keep backstretch barns
11and dormitories open and operational year-round unless a lesser
12schedule is mutually agreed to by the organization licensee and
13the horsemen's association racing at that organization
14licensee's race meeting, (viii) for organization licensees
15conducting thoroughbred race meetings, the organization
16licensee must maintain accident medical expense liability
17insurance coverage of $1,000,000 for jockeys, and (ix) meet all
18other requirements of this Act that apply to owners licensees.
19Only those persons or entities (or its successors or assigns)
20that had operating control of a race track and held an
21inter-track wagering license authorized by the Illinois Racing
22Board in 2009 are eligible.
23 An electronic gaming licensee may enter into a joint
24venture with a licensed owner to own, manage, conduct, or
25otherwise operate the electronic gaming licensee's electronic
26gaming facilities, unless the electronic gaming licensee has a

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1parent company or other affiliated company that is, directly or
2indirectly, wholly owned by a parent company that is also
3licensed to conduct electronic gaming, casino gaming, or their
4equivalent in another state.
5 All payments by licensees under this subsection (c) shall
6be deposited into the Gaming Facilities Fee Revenue Fund.
7 (e) A person or entity is ineligible to receive an
8electronic gaming license if:
9 (1) the person or entity has been convicted of a felony
10 under the laws of this State, any other state, or the
11 United States, including a conviction under the Racketeer
12 Influenced and Corrupt Organizations Act;
13 (2) the person or entity has been convicted of any
14 violation of Article 28 of the Criminal Code of 2012, or
15 substantially similar laws of any other jurisdiction;
16 (3) the person or entity has submitted an application
17 for a license under this Act that contains false
18 information;
19 (4) the person is a member of the Board;
20 (5) a person defined in paragraph (1), (2), (3), or (4)
21 of this subsection (e) is an officer, director, or
22 managerial employee of the entity;
23 (6) the person or entity employs a person defined in
24 paragraph (1), (2), (3), or (4) of this subsection (e) who
25 participates in the management or operation of gambling
26 operations authorized under this Act; or

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1 (7) a license of the person or entity issued under this
2 Act or a license to own or operate gambling facilities in
3 any other jurisdiction has been revoked.
4 (f) The Board may approve electronic gaming positions
5statewide as provided in this Section. The authority to operate
6electronic gaming positions under this Section shall be
7allocated as follows: up to 600 gaming positions for any
8electronic gaming licensee in Cook County whose electronic
9gaming license originates with an organization licensee that
10conducted live racing in calendar year 2010; up to 450 gaming
11positions for any electronic gaming licensee outside of Cook
12County whose electronic gaming license originates with an
13organization licensee that conducted live racing in calendar
14year 2010; and up to 175 gaming positions for any electronic
15gaming licensee whose electronic gaming license originates
16with an organization licensee that did not conduct live racing
17in calendar year 2010, which shall increase to 450 gaming
18positions in the calendar year following the year in which the
19electronic gaming licensee conducts 96 live races.
20 (g) Subject to the approval of the Illinois Gaming Board,
21an electronic gaming licensee may make modification or
22additions to any existing buildings and structures to comply
23with the requirements of this Act. The Illinois Gaming Board
24shall make its decision after consulting with the Illinois
25Racing Board. In no case, however, shall the Illinois Gaming
26Board approve any modification or addition that alters the

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1grounds of the organizational licensee such that the act of
2live racing is an ancillary activity to electronic gaming.
3Electronic gaming may take place in existing structures where
4inter-track wagering is conducted at the race track or a
5facility within 300 yards of the race track in accordance with
6the provisions of this Act and the Illinois Horse Racing Act of
71975.
8 (h) An electronic gaming licensee may conduct electronic
9gaming at a temporary facility pending the construction of a
10permanent facility or the remodeling or relocation of an
11existing facility to accommodate electronic gaming
12participants for up to 24 months after the temporary facility
13begins to conduct electronic gaming. Upon request by an
14electronic gaming licensee and upon a showing of good cause by
15the electronic gaming licensee, the Board shall extend the
16period during which the licensee may conduct electronic gaming
17at a temporary facility by up to 12 months. The Board shall
18make rules concerning the conduct of electronic gaming from
19temporary facilities.
20 Electronic gaming may take place in existing structures
21where inter-track wagering is conducted at the race track or a
22facility within 300 yards of the race track in accordance with
23the provisions of this Act and the Illinois Horse Racing Act of
241975. Any electronic gaming conducted at a permanent facility
25within 300 yards of the race track in accordance with this Act
26and the Illinois Horse Racing Act of 1975 shall have an

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1all-weather egress connecting the electronic gaming facility
2and the race track facility or, on days and hours of live
3racing, a complimentary shuttle service between the permanent
4electronic gaming facility and the race track facility and
5shall not charge electronic gaming participants an additional
6admission fee to the race track facility.
7 (i) The Illinois Gaming Board must adopt emergency rules in
8accordance with Section 5-45 of the Illinois Administrative
9Procedure Act as necessary to ensure compliance with the
10provisions of this amendatory Act of the 99th General Assembly
11concerning electronic gaming. The adoption of emergency rules
12authorized by this subsection (i) shall be deemed to be
13necessary for the public interest, safety, and welfare.
14 (j) 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 (k) 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 (k), "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 10/7.8 new)
18 Sec. 7.8. 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 10/7.9 new)
2 Sec. 7.9. Diversity program.
3 (a) Each owners licensee, electronic gaming licensee, and
4suppliers licensee shall establish and maintain a diversity
5program to ensure non-discrimination in the award and
6administration of contracts. The programs shall establish
7goals of awarding not less than 20% of the annual dollar value
8of all contracts, purchase orders, or other agreements to
9minority-owned businesses and 5% of the annual dollar value of
10all contracts to female-owned businesses.
11 (b) Each owners licensee, electronic gaming licensee, and
12suppliers licensee shall establish and maintain a diversity
13program designed to promote equal opportunity for employment.
14The program shall establish hiring goals as the Board and each
15licensee determines appropriate. The Board shall monitor the
16progress of the gaming licensee's progress with respect to the
17program's goals.
18 (c) No later than May 31 of each year, each licensee shall
19report to the Board the number of respective employees and the
20number of their respective employees who have designated
21themselves as members of a minority group and gender. In
22addition, all licensees shall submit a report with respect to
23the minority-owned and female-owned businesses program created
24in this Section to the Board.
25 (230 ILCS 10/7.10 new)

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1 Sec. 7.10. Annual report on diversity.
2 (a) Each licensee that receives a license under Sections 7,
37.1, and 7.7 shall execute and file a report with the Board no
4later than December 31 of each year that shall contain, but not
5be limited to, the following information:
6 (i) a good faith affirmative action plan to recruit,
7 train, and upgrade minority persons, females, and persons
8 with a disability in all employment classifications;
9 (ii) the total dollar amount of contracts that were
10 awarded to businesses owned by minority persons, females,
11 and persons with a disability;
12 (iii) the total number of businesses owned by minority
13 persons, females, and persons with a disability that were
14 utilized by the licensee;
15 (iv) the utilization of businesses owned by minority
16 persons, females, and persons with disabilities during the
17 preceding year; and
18 (v) the outreach efforts used by the licensee to
19 attract investors and businesses consisting of minority
20 persons, females, and persons with a disability.
21 (b) The Board shall forward a copy of each licensee's
22annual reports to the General Assembly no later than February 1
23of each year.
24 (230 ILCS 10/7.11 new)
25 Sec. 7.11. Issuance of new owners licenses.

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1 (a) Owners licenses authorized pursuant to subsection
2(e-5) of Section 7 of this Act may be issued by the Board to a
3qualified applicant pursuant to an open and competitive bidding
4process, as set forth in Section 7.5, and subject to the
5maximum number of authorized licenses set forth in subsection
6(e-5) of Section 7 of this Act.
7 (b) To be a qualified applicant, a person or entity may not
8be ineligible to receive an owners license under subsection (a)
9of Section 7 of this Act and must submit an application for an
10owners license that complies with Section 6 of this Act.
11 (c) In determining whether to grant an owners license to an
12applicant, the Board shall consider all of the factors set
13forth in subsections (b) and (e-10) of Section 7 of this Act,
14as well as the amount of the applicant's license bid. The Board
15may grant the owners license to an applicant that has not
16submitted the highest license bid, but if it does not select
17the highest bidder, the Board shall issue a written decision
18explaining why another applicant was selected and identifying
19the factors set forth in subsections (b) and (e-10) of Section
207 of this Act that favored the winning bidder.
21 (230 ILCS 10/7.12 new)
22 Sec. 7.12. Environmental standards. All permanent
23casinos, riverboats, and electronic gaming facilities shall
24consist of buildings that are certified as meeting the U.S.
25Green Building Council's Leadership in Energy and

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1Environmental Design standards. The provisions of this Section
2apply to a holder of an owners license, or electronic gaming
3license that (i) begins operations on or after January 1, 2016
4or (ii) relocates its facilities on or after the effective date
5of this amendatory Act of the 99th General Assembly.
6 (230 ILCS 10/8) (from Ch. 120, par. 2408)
7 Sec. 8. Suppliers licenses.
8 (a) The Board may issue a suppliers license to such
9persons, firms or corporations which apply therefor upon the
10payment of a non-refundable application fee set by the Board,
11upon a determination by the Board that the applicant is
12eligible for a suppliers license and upon payment of a $5,000
13annual license fee.
14 (b) The holder of a suppliers license is authorized to sell
15or lease, and to contract to sell or lease, gambling equipment
16and supplies to any licensee involved in the ownership or
17management of gambling operations.
18 (c) Gambling supplies and equipment may not be distributed
19unless supplies and equipment conform to standards adopted by
20rules of the Board.
21 (d) A person, firm or corporation is ineligible to receive
22a suppliers license if:
23 (1) the person has been convicted of a felony under the
24 laws of this State, any other state, or the United States;
25 (2) the person has been convicted of any violation of

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1 Article 28 of the Criminal Code of 1961 or the Criminal
2 Code of 2012, or substantially similar laws of any other
3 jurisdiction;
4 (3) the person has submitted an application for a
5 license under this Act which contains false information;
6 (4) the person is a member of the Board;
7 (5) the entity firm or corporation is one in which a
8 person defined in paragraph (1), (2), (3), or (4), is an
9 officer, director, or managerial employee;
10 (6) the firm or corporation employs a person who
11 participates in the management or operation of riverboat
12 gambling authorized under this Act;
13 (7) the license of the person, firm, or corporation
14 issued under this Act, or a license to own or operate
15 gambling facilities in any other jurisdiction, has been
16 revoked.
17 (e) Any person that supplies any equipment, devices, or
18supplies to a licensed riverboat or casino gambling operation
19or electronic gaming operation must first obtain a suppliers
20license. A supplier shall furnish to the Board a list of all
21equipment, devices and supplies offered for sale or lease in
22connection with gambling games authorized under this Act. A
23supplier shall keep books and records for the furnishing of
24equipment, devices and supplies to gambling operations
25separate and distinct from any other business that the supplier
26might operate. A supplier shall file a quarterly return with

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1the Board listing all sales and leases. A supplier shall
2permanently affix its name or a distinctive logo or other mark
3or design element identifying the manufacturer or supplier to
4all its equipment, devices, and supplies, except gaming chips
5without a value impressed, engraved, or imprinted on it, for
6gambling operations. The Board may waive this requirement for
7any specific product or products if it determines that the
8requirement is not necessary to protect the integrity of the
9game. Items purchased from a licensed supplier may continue to
10be used even though the supplier subsequently changes its name,
11distinctive logo, or other mark or design element; undergoes a
12change in ownership; or ceases to be licensed as a supplier for
13any reason. Any supplier's equipment, devices or supplies which
14are used by any person in an unauthorized gambling operation
15shall be forfeited to the State. A holder of an owners license
16or an electronic gaming license A licensed owner may own its
17own equipment, devices and supplies. Each holder of an owners
18license or an electronic gaming license or, in the case of a
19gambling operation conducted on behalf of the State, a
20manager's license under this the Act shall file an annual
21report listing its inventories of gambling equipment, devices
22and supplies.
23 (f) Any person who knowingly makes a false statement on an
24application is guilty of a Class A misdemeanor.
25 (g) Any gambling equipment, devices, and supplies provided
26by any licensed supplier may either be repaired on the

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1riverboat, in the casino, or at the electronic gaming facility
2or removed from the riverboat, casino, or electronic gaming
3facility to a an on-shore facility owned by the holder of an
4owners license or electronic gaming license for repair.
5(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;
698-756, eff. 7-16-14.)
7 (230 ILCS 10/9) (from Ch. 120, par. 2409)
8 Sec. 9. Occupational licenses.
9 (a) The Board may issue an occupational license to an
10applicant upon the payment of a non-refundable fee set by the
11Board, upon a determination by the Board that the applicant is
12eligible for an occupational license and upon payment of an
13annual license fee in an amount to be established. To be
14eligible for an occupational license, an applicant must:
15 (1) be at least 21 years of age if the applicant will
16 perform any function involved in gaming by patrons. Any
17 applicant seeking an occupational license for a non-gaming
18 function shall be at least 18 years of age;
19 (2) not have been convicted of a felony offense, a
20 violation of Article 28 of the Criminal Code of 1961 or the
21 Criminal Code of 2012, or a similar statute of any other
22 jurisdiction;
23 (2.5) not have been convicted of a crime, other than a
24 crime described in item (2) of this subsection (a),
25 involving dishonesty or moral turpitude, except that the

HB3564- 294 -LRB099 06481 MLM 31222 b
1 Board may, in its discretion, issue an occupational license
2 to a person who has been convicted of a crime described in
3 this item (2.5) more than 10 years prior to his or her
4 application and has not subsequently been convicted of any
5 other crime;
6 (3) have demonstrated a level of skill or knowledge
7 which the Board determines to be necessary in order to
8 operate gambling aboard a riverboat, in a casino, or at an
9 electronic gaming facility; and
10 (4) have met standards for the holding of an
11 occupational license as adopted by rules of the Board. Such
12 rules shall provide that any person or entity seeking an
13 occupational license to manage gambling operations under
14 this Act hereunder shall be subject to background inquiries
15 and further requirements similar to those required of
16 applicants for an owners license. Furthermore, such rules
17 shall provide that each such entity shall be permitted to
18 manage gambling operations for only one licensed owner.
19 (b) Each application for an occupational license shall be
20on forms prescribed by the Board and shall contain all
21information required by the Board. The applicant shall set
22forth in the application: whether he has been issued prior
23gambling related licenses; whether he has been licensed in any
24other state under any other name, and, if so, such name and his
25age; and whether or not a permit or license issued to him in
26any other state has been suspended, restricted or revoked, and,

HB3564- 295 -LRB099 06481 MLM 31222 b
1if so, for what period of time.
2 (c) Each applicant shall submit with his application, on
3forms provided by the Board, 2 sets of his fingerprints. The
4Board shall charge each applicant a fee set by the Department
5of State Police to defray the costs associated with the search
6and classification of fingerprints obtained by the Board with
7respect to the applicant's application. These fees shall be
8paid into the State Police Services Fund.
9 (d) The Board may in its discretion refuse an occupational
10license to any person: (1) who is unqualified to perform the
11duties required of such applicant; (2) who fails to disclose or
12states falsely any information called for in the application;
13(3) who has been found guilty of a violation of this Act or
14whose prior gambling related license or application therefor
15has been suspended, restricted, revoked or denied for just
16cause in any other state; or (4) for any other just cause.
17 (e) The Board may suspend, revoke or restrict any
18occupational licensee: (1) for violation of any provision of
19this Act; (2) for violation of any of the rules and regulations
20of the Board; (3) for any cause which, if known to the Board,
21would have disqualified the applicant from receiving such
22license; or (4) for default in the payment of any obligation or
23debt due to the State of Illinois; or (5) for any other just
24cause.
25 (f) A person who knowingly makes a false statement on an
26application is guilty of a Class A misdemeanor.

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1 (g) Any license issued pursuant to this Section shall be
2valid for a period of one year from the date of issuance.
3 (h) Nothing in this Act shall be interpreted to prohibit a
4licensed owner or electronic gaming licensee from entering into
5an agreement with a public community college or a school
6approved under the Private Business and Vocational Schools Act
7of 2012 for the training of any occupational licensee. Any
8training offered by such a school shall be in accordance with a
9written agreement between the licensed owner or electronic
10gaming licensee and the school.
11 (i) Any training provided for occupational licensees may be
12conducted either at the site of the gambling facility on the
13riverboat or at a school with which a licensed owner or
14electronic gaming licensee has entered into an agreement
15pursuant to subsection (h).
16(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;
1797-1150, eff. 1-25-13.)
18 (230 ILCS 10/11) (from Ch. 120, par. 2411)
19 Sec. 11. Conduct of gambling. Gambling may be conducted by
20licensed owners or licensed managers on behalf of the State
21aboard riverboats or in a casino. Gambling may be conducted by
22electronic gaming licensees at electronic gaming facilities.
23Gambling authorized under this Section is , subject to the
24following standards:
25 (1) A licensee may conduct riverboat gambling

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1 authorized under this Act regardless of whether it conducts
2 excursion cruises. A licensee may permit the continuous
3 ingress and egress of patrons passengers on a riverboat not
4 used for excursion cruises for the purpose of gambling.
5 Excursion cruises shall not exceed 4 hours for a round
6 trip. However, the Board may grant express approval for an
7 extended cruise on a case-by-case basis.
8 (2) (Blank).
9 (3) Minimum and maximum wagers on games shall be set by
10 the licensee.
11 (4) Agents of the Board and the Department of State
12 Police may board and inspect any riverboat, enter and
13 inspect any portion of a casino, or enter and inspect any
14 portion of an electronic gaming facility at any time for
15 the purpose of determining whether this Act is being
16 complied with. Every riverboat, if under way and being
17 hailed by a law enforcement officer or agent of the Board,
18 must stop immediately and lay to.
19 (5) Employees of the Board shall have the right to be
20 present on the riverboat or in the casino or on adjacent
21 facilities under the control of the licensee and at the
22 electronic gaming facility under the control of the
23 electronic gaming licensee.
24 (6) Gambling equipment and supplies customarily used
25 in conducting riverboat or casino gambling or electronic
26 gaming must be purchased or leased only from suppliers

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1 licensed for such purpose under this Act. The Board may
2 approve the transfer, sale, or lease of gambling equipment
3 and supplies by a licensed owner from or to an affiliate of
4 the licensed owner as long as the gambling equipment and
5 supplies were initially acquired from a supplier licensed
6 in Illinois.
7 (7) Persons licensed under this Act shall permit no
8 form of wagering on gambling games except as permitted by
9 this Act.
10 (8) Wagers may be received only from a person present
11 on a licensed riverboat, in a casino, or at an electronic
12 gaming facility. No person present on a licensed riverboat,
13 in a casino, or at an electronic gaming facility shall
14 place or attempt to place a wager on behalf of another
15 person who is not present on the riverboat, in a casino, or
16 at the electronic gaming facility.
17 (9) Wagering, including electronic gaming, shall not
18 be conducted with money or other negotiable currency.
19 (10) A person under age 21 shall not be permitted on an
20 area of a riverboat or casino where gambling is being
21 conducted or at an electronic gaming facility where
22 gambling is being conducted, except for a person at least
23 18 years of age who is an employee of the riverboat or
24 casino gambling operation or electronic gaming operation.
25 No employee under age 21 shall perform any function
26 involved in gambling by the patrons. No person under age 21

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1 shall be permitted to make a wager under this Act, and any
2 winnings that are a result of a wager by a person under age
3 21, whether or not paid by a licensee, shall be treated as
4 winnings for the privilege tax purposes, confiscated, and
5 forfeited to the State and deposited into the Education
6 Assistance Fund.
7 (11) Gambling excursion cruises are permitted only
8 when the waterway for which the riverboat is licensed is
9 navigable, as determined by the Board in consultation with
10 the U.S. Army Corps of Engineers. This paragraph (11) does
11 not limit the ability of a licensee to conduct gambling
12 authorized under this Act when gambling excursion cruises
13 are not permitted.
14 (12) All tokens, chips or electronic cards used to make
15 wagers must be purchased (i) from a licensed owner or
16 manager, in the case of a riverboat, either aboard a
17 riverboat or at an onshore facility which has been approved
18 by the Board and which is located where the riverboat
19 docks, (ii) in the case of a casino, from a licensed owner
20 or licensed manager at the casino, or (iii) from an
21 electronic gaming licensee at the electronic gaming
22 facility. The tokens, chips or electronic cards may be
23 purchased by means of an agreement under which the owner or
24 manager extends credit to the patron. Such tokens, chips or
25 electronic cards may be used while aboard the riverboat, in
26 the casino, or at the electronic gaming facility only for

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1 the purpose of making wagers on gambling games.
2 (13) Notwithstanding any other Section of this Act, in
3 addition to the other licenses authorized under this Act,
4 the Board may issue special event licenses allowing persons
5 who are not otherwise licensed to conduct riverboat
6 gambling to conduct such gambling on a specified date or
7 series of dates. Riverboat gambling under such a license
8 may take place on a riverboat not normally used for
9 riverboat gambling. The Board shall establish standards,
10 fees and fines for, and limitations upon, such licenses,
11 which may differ from the standards, fees, fines and
12 limitations otherwise applicable under this Act. All such
13 fees shall be deposited into the State Gaming Fund. All
14 such fines shall be deposited into the Education Assistance
15 Fund, created by Public Act 86-0018, of the State of
16 Illinois.
17 (14) In addition to the above, gambling must be
18 conducted in accordance with all rules adopted by the
19 Board.
20(Source: P.A. 96-1392, eff. 1-1-11.)
21 (230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)
22 Sec. 11.1. Collection of amounts owing under credit
23agreements. Notwithstanding any applicable statutory provision
24to the contrary, a licensed owner, licensed or manager, or
25electronic gaming licensee who extends credit to a riverboat

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1gambling patron or an electronic gaming patron pursuant to
2Section 11 (a) (12) of this Act is expressly authorized to
3institute a cause of action to collect any amounts due and
4owing under the extension of credit, as well as the licensed
5owner's, licensed or manager's, or electronic gaming
6licensee's costs, expenses and reasonable attorney's fees
7incurred in collection.
8(Source: P.A. 93-28, eff. 6-20-03.)
9 (230 ILCS 10/12) (from Ch. 120, par. 2412)
10 Sec. 12. Admission tax; fees.
11 (a) A tax is hereby imposed upon admissions to riverboat
12and casino gambling facilities riverboats operated by licensed
13owners authorized pursuant to Section 7 of this Act. Until July
141, 2002, the rate is $2 per person admitted. From July 1, 2002
15until July 1, 2003, the rate is $3 per person admitted. From
16July 1, 2003 until August 23, 2005 (the effective date of
17Public Act 94-673), for a licensee that admitted 1,000,000
18persons or fewer in the previous calendar year, the rate is $3
19per person admitted; for a licensee that admitted more than
201,000,000 but no more than 2,300,000 persons in the previous
21calendar year, the rate is $4 per person admitted; and for a
22licensee that admitted more than 2,300,000 persons in the
23previous calendar year, the rate is $5 per person admitted.
24Beginning on August 23, 2005 (the effective date of Public Act
2594-673), for a licensee that admitted 1,000,000 persons or

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1fewer in calendar year 2004, the rate is $2 per person
2admitted, and for all other licensees, including licensees that
3were not conducting gambling operations in 2004, the rate is $3
4per person admitted. This admission tax is imposed upon the
5licensed owner conducting gambling.
6 (1) The admission tax shall be paid for each admission,
7 except that a person who exits a riverboat gambling
8 facility and reenters that riverboat gambling facility
9 within the same gaming day shall be subject only to the
10 initial admission tax.
11 (2) (Blank).
12 (3) The riverboat licensee may issue tax-free passes to
13 actual and necessary officials and employees of the
14 licensee or other persons actually working on the
15 riverboat.
16 (4) The number and issuance of tax-free passes is
17 subject to the rules of the Board, and a list of all
18 persons to whom the tax-free passes are issued shall be
19 filed with the Board.
20 (a-5) A fee is hereby imposed upon admissions to gambling
21operations operated by licensed managers on behalf of the State
22pursuant to Section 7.3 at the rates provided in this
23subsection (a-5). For a licensee that admitted 1,000,000
24persons or fewer in the previous calendar year, the rate is $3
25per person admitted; for a licensee that admitted more than
261,000,000 but no more than 2,300,000 persons in the previous

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1calendar year, the rate is $4 per person admitted; and for a
2licensee that admitted more than 2,300,000 persons in the
3previous calendar year, the rate is $5 per person admitted.
4 (1) The admission fee shall be paid for each admission.
5 (2) (Blank).
6 (3) The licensed manager may issue fee-free passes to
7 actual and necessary officials and employees of the manager
8 or other persons actually working on the riverboat.
9 (4) The number and issuance of fee-free passes is
10 subject to the rules of the Board, and a list of all
11 persons to whom the fee-free passes are issued shall be
12 filed with the Board.
13 (a-10) No fee shall be imposed upon admissions to the
14gambling operation operated by a licensed manager on behalf of
15the State pursuant to Section 7.3a.
16 (b) Except as otherwise provided in subsection (b-1), from
17From the tax imposed under subsection (a) and the fee imposed
18under subsection (a-5), a municipality shall receive from the
19State $1 for each person embarking on a riverboat docked within
20the municipality or entering a casino located within the
21municipality, and a county shall receive $1 for each person
22entering a casino or embarking on a riverboat docked within the
23county but outside the boundaries of any municipality. The
24municipality's or county's share shall be collected by the
25Board on behalf of the State and remitted quarterly by the
26State, subject to appropriation, to the treasurer of the unit

HB3564- 304 -LRB099 06481 MLM 31222 b
1of local government for deposit in the general fund. The moneys
2remitted to units of local government under this subsection (b)
3for riverboats and casinos authorized under subsection (e-5) of
4Section 7, other than the riverboat or casino authorized under
5paragraph (4) of subsection (e-5) of Section 7, shall be used
6for capital expenditures or public pension payments, or both.
7 (b-1) From the tax imposed under subsection (a) and the fee
8imposed under subsection (a-5) on admissions to a riverboat or
9casino gambling facility authorized under paragraph (4) of
10subsection (e-5) of Section 7, $1 shall be distributed as
11provided in subsection (b-1) of Section 13.
12 (c) The licensed owner shall pay the entire admission tax
13to the Board and the licensed manager shall pay the entire
14admission fee to the Board. Such payments shall be made daily.
15Accompanying each payment shall be a return on forms provided
16by the Board which shall include other information regarding
17admissions as the Board may require. Failure to submit either
18the payment or the return within the specified time may result
19in suspension or revocation of the owners or managers license.
20 (c-1) After payments required under subsection (b) have
21been made, all remaining amounts collected under this Section
22for riverboats and casinos authorized under subsection (e-5) of
23Section 7, other than the riverboat or casino authorized under
24paragraph (4) of subsection (e-5) of Section 7, shall be
25divided equally and transferred into the Education Assistance
26Fund and the Capital Projects Fund.

HB3564- 305 -LRB099 06481 MLM 31222 b
1 (c-5) A tax is imposed on admissions to electronic gaming
2facilities at the rate of $3 per person admitted by an
3electronic gaming licensee. The tax is imposed upon the
4electronic gaming licensee.
5 (1) The admission tax shall be paid for each admission,
6 except that a person who exits an electronic gaming
7 facility and reenters that electronic gaming facility
8 within the same gaming day, as the term "gaming day" is
9 defined by the Board by rule, shall be subject only to the
10 initial admission tax. The Board shall establish, by rule,
11 a procedure to determine whether a person admitted to an
12 electronic gaming facility has paid the admission tax.
13 (2) An electronic gaming licensee may issue tax-free
14 passes to actual and necessary officials and employees of
15 the licensee and other persons associated with electronic
16 gaming operations.
17 (3) The number and issuance of tax-free passes is
18 subject to the rules of the Board, and a list of all
19 persons to whom the tax-free passes are issued shall be
20 filed with the Board.
21 (4) The electronic gaming licensee shall pay the entire
22 admission tax to the Board.
23 Such payments shall be made daily. Accompanying each
24payment shall be a return on forms provided by the Board, which
25shall include other information regarding admission as the
26Board may require. Failure to submit either the payment or the

HB3564- 306 -LRB099 06481 MLM 31222 b
1return within the specified time may result in suspension or
2revocation of the electronic gaming license.
3 From the tax imposed under this subsection (c-5), a
4municipality in which an electronic gaming facility is located,
5or if the electronic gaming facility is not located within a
6municipality, then the county in which the electronic gaming
7facility is located, shall receive from the State $1 for each
8person who enters the electronic gaming facility. The
9municipality's or county's share shall be collected by the
10Board on behalf of the State and remitted quarterly by the
11State, subject to appropriation, to the unit of local
12government and shall be used for capital expenditures or public
13pension payments, or both.
14 After payments required under this subsection (c-5) have
15been made, all remaining amounts shall be divided equally and
16transferred into the Education Assistance Fund and the Capital
17Projects Fund.
18 (d) The Board shall administer and collect the admission
19tax imposed by this Section, to the extent practicable, in a
20manner consistent with the provisions of Sections 4, 5, 5a, 5b,
215c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
22Retailers' Occupation Tax Act and Section 3-7 of the Uniform
23Penalty and Interest Act.
24(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
25 (230 ILCS 10/13) (from Ch. 120, par. 2413)

HB3564- 307 -LRB099 06481 MLM 31222 b
1 Sec. 13. Wagering tax; rate; distribution.
2 (a) Until January 1, 1998, a tax is imposed on the adjusted
3gross receipts received from gambling games authorized under
4this Act at the rate of 20%.
5 (a-1) From January 1, 1998 until July 1, 2002, a privilege
6tax is imposed on persons engaged in the business of conducting
7riverboat gambling operations, based on the adjusted gross
8receipts received by a licensed owner from gambling games
9authorized under this Act at the following rates:
10 15% of annual adjusted gross receipts up to and
11 including $25,000,000;
12 20% of annual adjusted gross receipts in excess of
13 $25,000,000 but not exceeding $50,000,000;
14 25% of annual adjusted gross receipts in excess of
15 $50,000,000 but not exceeding $75,000,000;
16 30% of annual adjusted gross receipts in excess of
17 $75,000,000 but not exceeding $100,000,000;
18 35% of annual adjusted gross receipts in excess of
19 $100,000,000.
20 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
21is imposed on persons engaged in the business of conducting
22riverboat gambling operations, other than licensed managers
23conducting riverboat gambling operations on behalf of the
24State, based on the adjusted gross receipts received by a
25licensed owner from gambling games authorized under this Act at
26the following rates:

HB3564- 308 -LRB099 06481 MLM 31222 b
1 15% of annual adjusted gross receipts up to and
2 including $25,000,000;
3 22.5% of annual adjusted gross receipts in excess of
4 $25,000,000 but not exceeding $50,000,000;
5 27.5% of annual adjusted gross receipts in excess of
6 $50,000,000 but not exceeding $75,000,000;
7 32.5% of annual adjusted gross receipts in excess of
8 $75,000,000 but not exceeding $100,000,000;
9 37.5% of annual adjusted gross receipts in excess of
10 $100,000,000 but not exceeding $150,000,000;
11 45% of annual adjusted gross receipts in excess of
12 $150,000,000 but not exceeding $200,000,000;
13 50% of annual adjusted gross receipts in excess of
14 $200,000,000.
15 (a-3) Beginning July 1, 2003, a privilege tax is imposed on
16persons engaged in the business of conducting riverboat
17gambling operations, other than licensed managers conducting
18riverboat gambling operations on behalf of the State, based on
19the adjusted gross receipts received by a licensed owner from
20gambling games authorized under this Act at the following
21rates:
22 15% of annual adjusted gross receipts up to and
23 including $25,000,000;
24 27.5% of annual adjusted gross receipts in excess of
25 $25,000,000 but not exceeding $37,500,000;
26 32.5% of annual adjusted gross receipts in excess of

HB3564- 309 -LRB099 06481 MLM 31222 b
1 $37,500,000 but not exceeding $50,000,000;
2 37.5% of annual adjusted gross receipts in excess of
3 $50,000,000 but not exceeding $75,000,000;
4 45% of annual adjusted gross receipts in excess of
5 $75,000,000 but not exceeding $100,000,000;
6 50% of annual adjusted gross receipts in excess of
7 $100,000,000 but not exceeding $250,000,000;
8 70% of annual adjusted gross receipts in excess of
9 $250,000,000.
10 An amount equal to the amount of wagering taxes collected
11under this subsection (a-3) that are in addition to the amount
12of wagering taxes that would have been collected if the
13wagering tax rates under subsection (a-2) were in effect shall
14be paid into the Common School Fund.
15 The privilege tax imposed under this subsection (a-3) shall
16no longer be imposed beginning on the earlier of (i) July 1,
172005; (ii) the first date after June 20, 2003 that riverboat
18gambling operations are conducted pursuant to a dormant
19license; or (iii) the first day that riverboat gambling
20operations are conducted under the authority of an owners
21license that is in addition to the 10 owners licenses initially
22authorized under this Act. For the purposes of this subsection
23(a-3), the term "dormant license" means an owners license that
24is authorized by this Act under which no riverboat gambling
25operations are being conducted on June 20, 2003.
26 (a-4) Beginning on the first day on which the tax imposed

HB3564- 310 -LRB099 06481 MLM 31222 b
1under subsection (a-3) is no longer imposed, a privilege tax is
2imposed on persons engaged in the business of conducting
3riverboat or casino gambling operations or electronic gaming,
4other than licensed managers conducting riverboat gambling
5operations on behalf of the State, based on the adjusted gross
6receipts received by a licensed owner from gambling games
7authorized under this Act at the following rates:
8 15% of annual adjusted gross receipts up to and
9 including $25,000,000;
10 22.5% of annual adjusted gross receipts in excess of
11 $25,000,000 but not exceeding $50,000,000;
12 27.5% of annual adjusted gross receipts in excess of
13 $50,000,000 but not exceeding $75,000,000;
14 32.5% of annual adjusted gross receipts in excess of
15 $75,000,000 but not exceeding $100,000,000;
16 37.5% of annual adjusted gross receipts in excess of
17 $100,000,000 but not exceeding $150,000,000;
18 45% of annual adjusted gross receipts in excess of
19 $150,000,000 but not exceeding $200,000,000;
20 50% of annual adjusted gross receipts in excess of
21 $200,000,000.
22 For the imposition of the privilege tax in this subsection
23(a-4), amounts paid pursuant to item (1) of subsection (b) of
24Section 56 of the Illinois Horse Racing Act of 1975 shall not
25be included in the determination of adjusted gross receipts.
26 (a-8) Riverboat gambling operations conducted by a

HB3564- 311 -LRB099 06481 MLM 31222 b
1licensed manager on behalf of the State are not subject to the
2tax imposed under this Section.
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

HB3564- 312 -LRB099 06481 MLM 31222 b
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.

HB3564- 313 -LRB099 06481 MLM 31222 b
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. Except as otherwise provided in this subsection (b),
23beginning Beginning January 1, 1998, from the tax revenue
24deposited in the State Gaming Fund under this Section, an
25amount equal to 5% of adjusted gross receipts generated by a
26riverboat or a casino licensed under Section 7 of this Act or

HB3564- 314 -LRB099 06481 MLM 31222 b
1by an electronic gaming facility shall be paid monthly, subject
2to appropriation by the General Assembly, to the unit of local
3government in which the electronic gaming facility or casino is
4located or that is designated as the home dock of the
5riverboat. The moneys paid to units of local government under
6this subsection (b) for electronic gaming facilities and
7riverboats and casinos authorized under subsection (e-5) of
8Section 7, other than the riverboat or casino authorized under
9paragraph (4) of subsection (e-5) of Section 7, shall be used
10for capital expenditures or public pension payments, or both.
11 From the tax revenue deposited in the State Gaming Fund
12under this Section, an amount equal to 5% of adjusted gross
13receipts from riverboat or casino gambling operations
14authorized by paragraph (4) of subsection (e-5) of Section 7
15shall be distributed as provided in subsection (b-1) of this
16Section.
17 From the tax revenue deposited in the State Gaming Fund
18pursuant to riverboat or casino gambling operations conducted
19by a licensed manager on behalf of the State pursuant to
20Section 7.3 of this Act, an amount equal to 5% of adjusted
21gross receipts generated pursuant to those riverboat or casino
22gambling operations shall be paid monthly, subject to
23appropriation by the General Assembly, to the unit of local
24government that is designated as the home dock of the riverboat
25upon which those riverboat gambling operations are conducted or
26in which the casino is located.

HB3564- 315 -LRB099 06481 MLM 31222 b
1 (b-1) The moneys held in the State Gaming Fund pursuant to
2this subsection (b) of this Section and subsection (b-1) of
3Section 12 from riverboat or casino gambling operations
4authorized by paragraph (4) of subsection (e-5) of Section 7,
5shall be paid monthly, subject to appropriation by the General
6Assembly, as follows: (i) 20% shall be paid to the municipality
7in which the riverboat is docked or the casino is located and
8(ii) 80% shall be divided equally among the following
9communities: Village of Beecher, City of Blue Island, Village
10of Burnham, Calumet City, Village of Calumet Park, City of
11Chicago Heights, City of County Club Hills, Village of Dixmoor,
12Village of Dolton, Village of East Hazel Crest, Village of
13Flossmoor, Village of Ford Heights, Village of Glenwood, City
14of Harvey, Village of Hazel Crest, Village of Homewood, Village
15of Lansing, Village of Lynwood, City of Markham, Village of
16Matteson, Village of Midlothian, City of Oak Forest, Village of
17Olympia Fields, Village of Orland Hills, Village of Orland
18Park, City of Palos Heights, Village of Park Forest, Village of
19Phoenix, Village of Posen, Village of Richton Park, Village of
20Riverdale, Village of Robbins, Village of Sauk Village, Village
21of South Chicago Heights, Village of South Holland, Village of
22Steger, Village of Thornton, Village of Tinley Park; however,
23if a community listed in item (ii) is the municipality in which
24the riverboat is docked or the casino is located, then that
25municipality shall not receive moneys under item (ii).
26 (b-5) Beginning on the effective date of this amendatory

HB3564- 316 -LRB099 06481 MLM 31222 b
1Act of the 99th General Assembly, from the tax revenue
2deposited in the State Gaming Fund under this Section,
3$5,000,000 shall be paid annually, subject to appropriation, to
4the Department of Human Services for the administration of
5programs to treat problem gambling.
6 (c) Appropriations, as approved by the General Assembly,
7may be made from the State Gaming Fund to the Board (i) for the
8administration and enforcement of this Act and the Video Gaming
9Act, (ii) for distribution to the Department of State Police
10and to the Department of Revenue for the enforcement of this
11Act and the Video Gaming Act, and (iii) to the Department of
12Human Services for the administration of programs to treat
13problem gambling. The Board's annual appropriations request
14must separately state its funding needs for the regulation of
15electronic gaming, riverboat gaming, casino gaming within the
16City of Chicago, and video gaming. From the tax revenue
17deposited in the Gaming Facilities Fee Revenue Fund, the first
18$50,000,000 shall be paid to the Board, subject to
19appropriation, for the administration and enforcement of the
20provisions of this amendatory Act of the 99th General Assembly.
21 (c-3) Appropriations, as approved by the General Assembly,
22may be made from the tax revenue deposited into the State
23Gaming Fund from electronic gaming pursuant to this Section for
24the administration and enforcement of this Act.
25 (c-4) After payments required under subsections (b), (c),
26and (c-3) have been made from the tax revenue from electronic

HB3564- 317 -LRB099 06481 MLM 31222 b
1gaming facilities and riverboats and casinos authorized under
2subsection (e-5) of Section 7, other than the riverboat or
3casino authorized under paragraph (4) of subsection (e-5) of
4Section 7, deposited into the State Gaming Fund under this
5Section, all remaining amounts from electronic gaming
6facilities and riverboats and casinos authorized under
7subsection (e-5) of Section 7, other than the riverboat or
8casino authorized under paragraph (4) of subsection (e-5) of
9Section 7, shall be divided equally and transferred into the
10Education Assistance Fund and the Capital Projects Fund.
11 (c-5) Before May 26, 2006 (the effective date of Public Act
1294-804) and beginning on the effective date of this amendatory
13Act of the 95th General Assembly, unless any organization
14licensee under the Illinois Horse Racing Act of 1975 begins to
15operate a slot machine or video game of chance under the
16Illinois Horse Racing Act of 1975 or this Act, after the
17payments required under subsections (b) and (c) have been made,
18an amount equal to 15% of the adjusted gross receipts of (1) an
19owners licensee that relocates pursuant to Section 11.2, (2) an
20owners licensee conducting riverboat gambling operations
21pursuant to an owners license that is initially issued after
22June 25, 1999, or (3) the first riverboat gambling operations
23conducted by a licensed manager on behalf of the State under
24Section 7.3, whichever comes first, shall be paid from the
25State Gaming Fund into the Horse Racing Equity Fund.
26 (c-10) Each year the General Assembly shall appropriate

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1from the General Revenue Fund to the Education Assistance Fund
2an amount equal to the amount paid into the Horse Racing Equity
3Fund pursuant to subsection (c-5) in the prior calendar year.
4 (c-15) After the payments required under subsections (b),
5(c), and (c-5) have been made, an amount equal to 2% of the
6adjusted gross receipts of (1) an owners licensee that
7relocates pursuant to Section 11.2, (2) an owners licensee
8conducting riverboat gambling operations pursuant to an owners
9license that is initially issued after June 25, 1999, or (3)
10the first riverboat gambling operations conducted by a licensed
11manager on behalf of the State under Section 7.3, whichever
12comes first, shall be paid, subject to appropriation from the
13General Assembly, from the State Gaming Fund to each home rule
14county with a population of over 3,000,000 inhabitants for the
15purpose of enhancing the county's criminal justice system.
16 (c-20) Each year the General Assembly shall appropriate
17from the General Revenue Fund to the Education Assistance Fund
18an amount equal to the amount paid to each home rule county
19with a population of over 3,000,000 inhabitants pursuant to
20subsection (c-15) in the prior calendar year.
21 (c-25) On July 1, 2013 and each July 1 thereafter,
22$1,600,000 shall be transferred from the State Gaming Fund to
23the Chicago State University Education Improvement Fund.
24 (c-30) On July 1, 2013 or as soon as possible thereafter,
25$92,000,000 shall be transferred from the State Gaming Fund to
26the School Infrastructure Fund and $23,000,000 shall be

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1transferred from the State Gaming Fund to the Horse Racing
2Equity Fund.
3 (c-35) Beginning on July 1, 2013, in addition to any amount
4transferred under subsection (c-30) of this Section,
5$5,530,000 shall be transferred monthly from the State Gaming
6Fund to the School Infrastructure Fund.
7 (c-40) Revenues from the gambling operation operated by a
8licensed manager on behalf of the State pursuant to Section
97.3a deposited into the State Gaming Fund shall be distributed
10as follows:
11 (1) reimbursement of any construction costs of the
12 gambling facility, including debt service on any bonds
13 issued for that purpose, shall be made to the Capital
14 Development Board;
15 (2) any amounts due to the licensed manager of the
16 gambling operation shall be paid in accordance with the
17 terms of any agreement made with the managers licensee
18 under Section 7.4 of this Act and during the competitive
19 bidding process under Section 7.5 of this Act; and
20 (3) the remainder of amounts deposited shall be
21 distributed as follows:
22 (A) an amount equal to 50% of the remainder shall
23 be distributed as follows:
24 (i) an amount equal to 2%, at least $8,000,000
25 annually, shall be distributed to Cook County to be
26 used for capital expenditures or public pension

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1 payments, or both; and
2 (ii) the remainder shall be distributed to the
3 City of Chicago to be used for capital
4 expenditures, public pension payments, or
5 education purposes, or any combination thereof; if
6 used for education purposes, moneys must be
7 allocated on a per-student basis;
8 (B) an amount equal to 25% of the remainder shall
9 be appropriated each month to the State Board of
10 Education to be used for grants to school districts by
11 the State Board of Education in amounts determined as
12 follows: the total amount appropriated to the State
13 Board of Education divided by the number of students in
14 the State outside of City of Chicago School District
15 299 and then multiplied by the number of students in
16 the school district, based on average daily attendance
17 in that district; moneys distributed under this item
18 (B) shall be in addition to and not in lieu of other
19 moneys provided to school districts by the State; and
20 (C) an amount equal to 25% of the remainder shall
21 be transferred monthly into the State Construction
22 Account Fund.
23 (d) From time to time, the Board shall transfer the
24remainder of the funds generated by this Act into the Education
25Assistance Fund, created by Public Act 86-0018, of the State of
26Illinois.

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1 (e) Nothing in this Act shall prohibit the unit of local
2government designated as the home dock of the riverboat from
3entering into agreements with other units of local government
4in this State or in other states to share its portion of the
5tax revenue.
6 (f) To the extent practicable, the Board shall administer
7and collect the wagering taxes imposed by this Section in a
8manner consistent with the provisions of Sections 4, 5, 5a, 5b,
95c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
10Retailers' Occupation Tax Act and Section 3-7 of the Uniform
11Penalty and Interest Act.
12(Source: P.A. 98-18, eff. 6-7-13.)
13 (230 ILCS 10/14) (from Ch. 120, par. 2414)
14 Sec. 14. Licensees - Records - Reports - Supervision.
15 (a) Licensed owners or, in the case of gambling operations
16operated by licensed managers on behalf of the State, licensed
17managers and electronic gaming licensees A licensed owner shall
18keep his books and records so as to clearly show the following:
19 (1) The amount received daily from admission fees.
20 (2) The total amount of gross receipts.
21 (3) The total amount of the adjusted gross receipts.
22 (b) Licensed owners or, in the case of gambling operations
23operated by licensed managers on behalf of the State, licensed
24managers and electronic gaming licensees The licensed owner
25shall furnish to the Board reports and information as the Board

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1may require with respect to its activities on forms designed
2and supplied for such purpose by the Board.
3 (c) The books and records kept by a licensed owner as
4provided by this Section are public records and the
5examination, publication, and dissemination of the books and
6records are governed by the provisions of The Freedom of
7Information Act.
8(Source: P.A. 86-1029.)
9 (230 ILCS 10/15) (from Ch. 120, par. 2415)
10 Sec. 15. Audit of Licensee Operations. Annually, the
11licensed owner, or manager, or electronic gaming licensee shall
12transmit to the Board an audit of the financial transactions
13and condition of the licensee's or manager's total operations.
14Additionally, within 90 days after the end of each quarter of
15each fiscal year, the licensed owner, or manager, or electronic
16gaming licensee shall transmit to the Board a compliance report
17on engagement procedures determined by the Board. All audits
18and compliance engagements shall be conducted by certified
19public accountants selected by the Board. Each certified public
20accountant must be registered in the State of Illinois under
21the Illinois Public Accounting Act. The compensation for each
22certified public accountant shall be paid directly by the
23licensed owner, or manager, or electronic gaming licensee to
24the certified public accountant.
25(Source: P.A. 96-1392, eff. 1-1-11.)

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1 (230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)
2 Sec. 17.1. Judicial Review.
3 (a) Jurisdiction and venue for the judicial review of a
4final order of the Board relating to licensed owners,
5suppliers, electronic gaming licensees, and or special event
6licenses is vested in the Appellate Court of the judicial
7district in which Sangamon County is located. A petition for
8judicial review of a final order of the Board must be filed in
9the Appellate Court, within 35 days from the date that a copy
10of the decision sought to be reviewed was served upon the party
11affected by the decision.
12 (b) Judicial review of all other final orders of the Board
13shall be conducted in accordance with the Administrative Review
14Law.
15(Source: P.A. 88-1.)
16 (230 ILCS 10/18) (from Ch. 120, par. 2418)
17 Sec. 18. Prohibited Activities - Penalty.
18 (a) A person is guilty of a Class A misdemeanor for doing
19any of the following:
20 (1) Conducting gambling where wagering is used or to be
21 used without a license issued by the Board.
22 (2) Conducting gambling where wagering is permitted
23 other than in the manner specified by Section 11.
24 (b) A person is guilty of a Class B misdemeanor for doing

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

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1 (2) Solicits or knowingly accepts or receives a promise
2 of anything of value or benefit while the person is
3 connected with a riverboat, casino, or electronic gaming
4 facility, including, but not limited to, an officer or
5 employee of a licensed owner or electronic gaming licensee,
6 or the holder of an occupational license, pursuant to an
7 understanding or arrangement or with the intent that the
8 promise or thing of value or benefit will influence the
9 actions of the person to affect or attempt to affect the
10 outcome of a gambling game, or to influence official action
11 of a member of the Board.
12 (3) Uses or possesses with the intent to use a device
13 to assist:
14 (i) In projecting the outcome of the game.
15 (ii) In keeping track of the cards played.
16 (iii) In analyzing the probability of the
17 occurrence of an event relating to the gambling game.
18 (iv) In analyzing the strategy for playing or
19 betting to be used in the game except as permitted by
20 the Board.
21 (4) Cheats at a gambling game.
22 (5) Manufactures, sells, or distributes any cards,
23 chips, dice, game or device which is intended to be used to
24 violate any provision of this Act.
25 (6) Alters or misrepresents the outcome of a gambling
26 game on which wagers have been made after the outcome is

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1 made sure but before it is revealed to the players.
2 (7) Places a bet after acquiring knowledge, not
3 available to all players, of the outcome of the gambling
4 game which is subject of the bet or to aid a person in
5 acquiring the knowledge for the purpose of placing a bet
6 contingent on that outcome.
7 (8) Claims, collects, or takes, or attempts to claim,
8 collect, or take, money or anything of value in or from the
9 gambling games, with intent to defraud, without having made
10 a wager contingent on winning a gambling game, or claims,
11 collects, or takes an amount of money or thing of value of
12 greater value than the amount won.
13 (9) Uses counterfeit chips or tokens in a gambling
14 game.
15 (10) Possesses any key or device designed for the
16 purpose of opening, entering, or affecting the operation of
17 a gambling game, drop box, or an electronic or mechanical
18 device connected with the gambling game or for removing
19 coins, tokens, chips or other contents of a gambling game.
20 This paragraph (10) does not apply to a gambling licensee
21 or employee of a gambling licensee acting in furtherance of
22 the employee's employment.
23 (e) The possession of more than one of the devices
24described in subsection (d), paragraphs (3), (5), or (10)
25permits a rebuttable presumption that the possessor intended to
26use the devices for cheating.

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1 (f) A person under the age of 21 who, except as authorized
2under paragraph (10) of Section 11, enters upon a riverboat or
3in a casino or electronic gaming facility commits a petty
4offense and is subject to a fine of not less than $100 or more
5than $250 for a first offense and of not less than $200 or more
6than $500 for a second or subsequent offense.
7 An action to prosecute any crime occurring on a riverboat
8shall be tried in the county of the dock at which the riverboat
9is based. An action to prosecute any crime occurring in a
10casino or electronic gaming facility shall be tried in the
11county in which the casino or electronic gaming facility is
12located.
13(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
14 (230 ILCS 10/18.1)
15 Sec. 18.1. Distribution of certain fines. If a fine is
16imposed on an owner licensee or an electronic gaming licensee
17for knowingly sending marketing or promotional materials to any
18person placed on the self-exclusion list, then the Board shall
19distribute an amount equal to 15% of the fine imposed to the
20unit of local government in which the casino, riverboat, or
21electronic gaming facility is located for the purpose of
22awarding grants to non-profit entities that assist gambling
23addicts.
24(Source: P.A. 96-224, eff. 8-11-09.)

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1 (230 ILCS 10/18.2 new)
2 Sec. 18.2. Prohibition on political contributions from
3certain licensees and applicants.
4 (a) The General Assembly has a compelling interest in
5protecting the integrity of both the electoral process and the
6legislative process by preventing corruption and the
7appearance of corruption which may arise through permitting
8certain political campaign contributions by certain persons
9involved in the gaming industry and regulated by the State.
10Unlike most other regulated industries, gaming is especially
11susceptible to corruption and potential criminal influence.
12 In Illinois, only licensed gaming activities are legal and
13all other gaming activities are strictly prohibited. Given
14these circumstances, it is imperative to eliminate any
15potential corrupt influence in the gaming industry and the
16electoral process. Banning political campaign contributions by
17certain persons subject to this Section to State officeholders
18and candidates for such offices and to county and municipal
19officeholders and candidates for such offices in counties and
20municipalities that receive financial benefits from gaming
21activities is necessary to prevent corruption and the
22appearance of corruption that may arise when political campaign
23contributions and gaming that is regulated by the State and
24that confers benefits on counties and municipalities are
25intermingled.
26 The General Assembly has prohibited political campaign

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1contributions to certain State and local officeholders and
2candidates for such offices by certain persons with State of
3Illinois and Metropolitan Pier and Exposition Authority
4contracts and pending bids or proposals for contracts of over
5$50,000 and certain individuals and entities affiliated with
6such persons. Certain gaming licensees will receive receipts
7far in excess of the base level of contract amounts subject to
8such other campaign contribution prohibitions.
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 1% of any business
5entity applying for or holding a license, (ii) executive
6employees of any such business entity, (iii) any person
7designated as a key person under this Act, and (iv) the spouse
8of such persons.
9 "Contribution" means a contribution as defined in Section
109-1.4 of the Election Code.
11 "Declared candidate" means a person who has filed a
12statement of candidacy and petition for nomination or election
13in the principal office of the State Board of Elections, or in
14the office of the appropriate election authority for any county
15or municipality in which a casino or electronic gaming device
16is located or proposed or which receives any gaming revenue.
17 "Executive employee" means any person who is (i) an officer
18or director or who fulfills duties equivalent to those of an
19officer or director of a business entity applying for or
20holding a license and (ii) any employee of such business entity
21who is required to register under the Lobbyist Registration
22Act.
23 "License" means any owners license issued pursuant to
24Section 7 of this Act, electronic gaming license issued
25pursuant to Section 7.7 of this Act, or managers license issued
26pursuant to Section 7.4 of 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 which
6receives any gaming revenue.
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 (c) Any person or business entity applying for or holding a
12license, any affiliated entities or persons of such business
13entity, and any entities or persons soliciting a contribution
14or causing a contribution to be made on behalf of such person
15or business entity, are prohibited from making any contribution
16to any officeholder or declared candidate or any political
17committee affiliated with any officeholder or declared
18candidate, as defined in Section 9-1.8 of the Election Code.
19This prohibition shall commence upon filing of an application
20for a license and shall continue for a period of 2 years after
21termination, suspension, or revocation of the license.
22 The Board shall have authority to suspend, revoke, or
23restrict the license and to impose civil penalties of up to
24$100,000 for each violation of this subsection (c). A notice of
25each such violation and the penalty imposed shall be published
26on the Board's website and in the Illinois Register. Payments

HB3564- 332 -LRB099 06481 MLM 31222 b
1received by the State pursuant to this subsection (c) shall be
2deposited into the General Revenue Fund.
3 Any officeholder or declared candidate or any political
4committee affiliated with any officeholder or declared
5candidate that has received a contribution in violation of this
6subsection (c) shall pay an amount equal to the value of the
7contribution to the State no more than 30 days after notice of
8the violation concerning the contribution appears in the
9Illinois Register. Payments received by the State pursuant to
10this subsection (c) shall be deposited into the General Revenue
11Fund.
12 (d) The Board shall post on its website a list of all
13persons, business entities, and affiliated entities prohibited
14from making contributions to any officeholder or declared
15candidate political committee pursuant to subsection (c),
16which list shall be updated and published on, at a minimum, a
17semiannual basis.
18 Any person, business entity, or affiliated entity
19prohibited from making contributions to any officeholder or
20declared candidate political committee pursuant to subsection
21(c) shall notify the Board within 7 days after discovering any
22necessary change or addition to the information relating to
23that person, business entity, or affiliated entity contained in
24the list.
25 An individual who acts in good faith and in reliance on any
26information contained in the list shall not be subject to any

HB3564- 333 -LRB099 06481 MLM 31222 b
1penalties or liability imposed for a violation of this Section.
2 (e) If any provision of this Section is held invalid or its
3application to any person or circumstance is held invalid, the
4invalidity of that provision or application does not affect the
5other provisions or applications of this Section that can be
6given effect without the invalid application or provision.
7 (230 ILCS 10/19) (from Ch. 120, par. 2419)
8 Sec. 19. Forfeiture of property.
9 (a) Except as provided in subsection (b), any riverboat,
10casino, or electronic gaming facility used for the conduct of
11gambling games in violation of this Act shall be considered a
12gambling place in violation of Section 28-3 of the Criminal
13Code of 2012. Every gambling device found on a riverboat, in a
14casino, or at an electronic gaming facility operating gambling
15games in violation of this Act and every slot machine and video
16game of chance found at an electronic gaming facility operating
17gambling games in violation of this Act shall be subject to
18seizure, confiscation and destruction as provided in Section
1928-5 of the Criminal Code of 2012.
20 (b) It is not a violation of this Act for a riverboat or
21other watercraft which is licensed for gaming by a contiguous
22state to dock on the shores of this State if the municipality
23having jurisdiction of the shores, or the county in the case of
24unincorporated areas, has granted permission for docking and no
25gaming is conducted on the riverboat or other watercraft while

HB3564- 334 -LRB099 06481 MLM 31222 b
1it is docked on the shores of this State. No gambling device
2shall be subject to seizure, confiscation or destruction if the
3gambling device is located on a riverboat or other watercraft
4which is licensed for gaming by a contiguous state and which is
5docked on the shores of this State if the municipality having
6jurisdiction of the shores, or the county in the case of
7unincorporated areas, has granted permission for docking and no
8gaming is conducted on the riverboat or other watercraft while
9it is docked on the shores of this State.
10(Source: P.A. 97-1150, eff. 1-25-13.)
11 (230 ILCS 10/20) (from Ch. 120, par. 2420)
12 Sec. 20. Prohibited activities - civil penalties. Any
13person who conducts a gambling operation without first
14obtaining a license to do so, or who continues to conduct such
15games after revocation of his license, or any licensee who
16conducts or allows to be conducted any unauthorized gambling
17games on a riverboat, in a casino, or at an electronic gaming
18facility where it is authorized to conduct its riverboat
19gambling operation, in addition to other penalties provided,
20shall be subject to a civil penalty equal to the amount of
21gross receipts derived from wagering on the gambling games,
22whether unauthorized or authorized, conducted on that day as
23well as confiscation and forfeiture of all gambling game
24equipment used in the conduct of unauthorized gambling games.
25(Source: P.A. 86-1029.)

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1 (230 ILCS 10/24)
2 Sec. 24. Applicability of this Illinois Riverboat Gambling
3Act. The provisions of the this Illinois Riverboat Gambling
4Act, and all rules promulgated thereunder, shall apply to the
5Video Gaming Act, except where there is a conflict between the
62 Acts.
7(Source: P.A. 96-37, eff. 7-13-09.)
8 Section 55. The Video Gaming Act is amended by changing
9Sections 5, 25, 45, 79, and 80 and by adding Section 81 as
10follows:
11 (230 ILCS 40/5)
12 Sec. 5. Definitions. As used in this Act:
13 "Board" means the Illinois Gaming Board.
14 "Credit" means one, 5, 10, or 25 cents either won or
15purchased by a player.
16 "Distributor" means an individual, partnership,
17corporation, or limited liability company licensed under this
18Act to buy, sell, lease, or distribute video gaming terminals
19or major components or parts of video gaming terminals to or
20from terminal operators.
21 "Electronic card" means a card purchased from a licensed
22establishment, licensed fraternal establishment, licensed
23veterans establishment, or licensed truck stop establishment

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1for use in that establishment as a substitute for cash in the
2conduct of gaming on a video gaming terminal.
3 "Electronic voucher" means a voucher printed by an
4electronic video game machine that is redeemable in the
5licensed establishment for which it was issued.
6 "Terminal operator" means an individual, partnership,
7corporation, or limited liability company that is licensed
8under this Act and that owns, services, and maintains video
9gaming terminals for placement in licensed establishments,
10licensed truck stop establishments, licensed fraternal
11establishments, or licensed veterans establishments.
12 "Licensed technician" means an individual who is licensed
13under this Act to repair, service, and maintain video gaming
14terminals.
15 "Licensed terminal handler" means a person, including but
16not limited to an employee or independent contractor working
17for a manufacturer, distributor, supplier, technician, or
18terminal operator, who is licensed under this Act to possess or
19control a video gaming terminal or to have access to the inner
20workings of a video gaming terminal. A licensed terminal
21handler does not include an individual, partnership,
22corporation, or limited liability company defined as a
23manufacturer, distributor, supplier, technician, or terminal
24operator under this Act.
25 "Manufacturer" means an individual, partnership,
26corporation, or limited liability company that is licensed

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1under this Act and that manufactures or assembles video gaming
2terminals.
3 "Supplier" means an individual, partnership, corporation,
4or limited liability company that is licensed under this Act to
5supply major components or parts to video gaming terminals to
6licensed terminal operators.
7 "Net terminal income" means money put into a video gaming
8terminal minus credits paid out to players.
9 "Video gaming terminal" means any electronic video game
10machine that, upon insertion of cash, electronic cards or
11vouchers, or any combination thereof, is available to play or
12simulate the play of a video game, including but not limited to
13video poker, line up, and blackjack, as authorized by the Board
14utilizing a video display and microprocessors in which the
15player may receive free games or credits that can be redeemed
16for cash. The term does not include a machine that directly
17dispenses coins, cash, or tokens or is for amusement purposes
18only.
19 "Licensed establishment" means any licensed retail
20establishment where alcoholic liquor is drawn, poured, mixed,
21or otherwise served for consumption on the premises, whether
22the establishment operates on a nonprofit or for-profit basis.
23"Licensed establishment" includes any such establishment that
24has a contractual relationship with an inter-track wagering
25location licensee licensed under the Illinois Horse Racing Act
26of 1975, provided any contractual relationship shall not

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1include any transfer or offer of revenue from the operation of
2video gaming under this Act to any licensee licensed under the
3Illinois Horse Racing Act of 1975. Provided, however, that the
4licensed establishment that has such a contractual
5relationship with an inter-track wagering location licensee
6may not, itself, be (i) an inter-track wagering location
7licensee, (ii) the corporate parent or subsidiary of any
8licensee licensed under the Illinois Horse Racing Act of 1975,
9or (iii) the corporate subsidiary of a corporation that is also
10the corporate parent or subsidiary of any licensee licensed
11under the Illinois Horse Racing Act of 1975. "Licensed
12establishment" does not include a facility operated by an
13organization licensee, an inter-track wagering licensee, or an
14inter-track wagering location licensee licensed under the
15Illinois Horse Racing Act of 1975 or a riverboat licensed under
16the Illinois Riverboat Gambling Act, except as provided in this
17paragraph. The changes made to this definition by Public Act
1898-587 are declarative of existing law.
19 "Licensed fraternal establishment" means the location
20where a qualified fraternal organization that derives its
21charter from a national fraternal organization regularly
22meets.
23 "Licensed veterans establishment" means the location where
24a qualified veterans organization that derives its charter from
25a national veterans organization regularly meets.
26 "Licensed truck stop establishment" means a facility (i)

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1that is at least a 3-acre facility with a convenience store,
2(ii) with separate diesel islands for fueling commercial motor
3vehicles, (iii) that sells at retail more than 10,000 gallons
4of diesel or biodiesel fuel per month, and (iv) with parking
5spaces for commercial motor vehicles. "Commercial motor
6vehicles" has the same meaning as defined in Section 18b-101 of
7the Illinois Vehicle Code. The requirement of item (iii) of
8this paragraph may be met by showing that estimated future
9sales or past sales average at least 10,000 gallons per month.
10(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
1198-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
127-16-14.)
13 (230 ILCS 40/25)
14 Sec. 25. Restriction of licensees.
15 (a) Manufacturer. A person may not be licensed as a
16manufacturer of a video gaming terminal in Illinois unless the
17person has a valid manufacturer's license issued under this
18Act. A manufacturer may only sell video gaming terminals for
19use in Illinois to persons having a valid distributor's
20license.
21 (b) Distributor. A person may not sell, distribute, or
22lease or market a video gaming terminal in Illinois unless the
23person has a valid distributor's license issued under this Act.
24A distributor may only sell video gaming terminals for use in
25Illinois to persons having a valid distributor's or terminal

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

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

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1organization, an association, a business, or a limited
2liability company means:
3 (A) When, with respect to a sole proprietorship, an
4 individual or his or her spouse owns, operates, manages, or
5 conducts, directly or indirectly, the organization,
6 association, or business, or any part thereof; or
7 (B) When, with respect to a partnership, the individual
8 or his or her spouse shares in any of the profits, or
9 potential profits, of the partnership activities; or
10 (C) When, with respect to a corporation, an individual
11 or his or her spouse is an officer or director, or the
12 individual or his or her spouse is a holder, directly or
13 beneficially, of 5% or more of any class of stock of the
14 corporation; or
15 (D) When, with respect to an organization not covered
16 in (A), (B) or (C) above, an individual or his or her
17 spouse is an officer or manages the business affairs, or
18 the individual or his or her spouse is the owner of or
19 otherwise controls 10% or more of the assets of the
20 organization; or
21 (E) When an individual or his or her spouse furnishes
22 5% or more of the capital, whether in cash, goods, or
23 services, for the operation of any business, association,
24 or organization during any calendar year; or
25 (F) When, with respect to a limited liability company,
26 an individual or his or her spouse is a member, or the

HB3564- 343 -LRB099 06481 MLM 31222 b
1 individual or his or her spouse is a holder, directly or
2 beneficially, of 5% or more of the membership interest of
3 the limited liability company.
4 For purposes of this subsection (g), "individual" includes
5all individuals or their spouses whose combined interest would
6qualify as a substantial interest under this subsection (g) and
7whose activities with respect to an organization, association,
8or business are so closely aligned or coordinated as to
9constitute the activities of a single entity.
10 (h) Location restriction. A licensed establishment,
11licensed truck stop establishment, licensed fraternal
12establishment, or licensed veterans establishment that is (i)
13located within 1,000 feet of a facility operated by an
14organization licensee licensed under the Illinois Horse Racing
15Act of 1975 or a casino or the home dock of a riverboat
16licensed under the Illinois Riverboat Gambling Act or (ii)
17located within 100 feet of a school or a place of worship under
18the Religious Corporation Act, is ineligible to operate a video
19gaming terminal. The location restrictions in this subsection
20(h) do not apply if (A) a facility operated by an organization
21licensee, a school, or a place of worship moves to or is
22established within the restricted area after a licensed
23establishment, licensed truck stop establishment, licensed
24fraternal establishment, or licensed veterans establishment
25becomes licensed under this Act or (B) a school or place of
26worship moves to or is established within the restricted area

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1after a licensed establishment, licensed truck stop
2establishment, licensed fraternal establishment, or licensed
3veterans establishment obtains its original liquor license.
4For the purpose of this subsection, "school" means an
5elementary or secondary public school, or an elementary or
6secondary private school registered with or recognized by the
7State Board of Education.
8 Notwithstanding the provisions of this subsection (h), the
9Board may waive the requirement that a licensed establishment,
10licensed truck stop establishment, licensed fraternal
11establishment, or licensed veterans establishment not be
12located within 1,000 feet from a facility operated by an
13organization licensee licensed under the Illinois Horse Racing
14Act of 1975 or a casino or the home dock of a riverboat
15licensed under the Illinois Riverboat Gambling Act. The Board
16shall not grant such waiver if there is any common ownership or
17control, shared business activity, or contractual arrangement
18of any type between the establishment and the organization
19licensee or owners licensee of a riverboat. The Board shall
20adopt rules to implement the provisions of this paragraph.
21 (i) Undue economic concentration. In addition to
22considering all other requirements under this Act, in deciding
23whether to approve the operation of video gaming terminals by a
24terminal operator in a location, the Board shall consider the
25impact of any economic concentration of such operation of video
26gaming terminals. The Board shall not allow a terminal operator

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1to operate video gaming terminals if the Board determines such
2operation will result in undue economic concentration. For
3purposes of this Section, "undue economic concentration" means
4that a terminal operator would have such actual or potential
5influence over video gaming terminals in Illinois as to:
6 (1) substantially impede or suppress competition among
7 terminal operators;
8 (2) adversely impact the economic stability of the
9 video gaming industry in Illinois; or
10 (3) negatively impact the purposes of the Video Gaming
11 Act.
12 The Board shall adopt rules concerning undue economic
13concentration with respect to the operation of video gaming
14terminals in Illinois. The rules shall include, but not be
15limited to, (i) limitations on the number of video gaming
16terminals operated by any terminal operator within a defined
17geographic radius and (ii) guidelines on the discontinuation of
18operation of any such video gaming terminals the Board
19determines will cause undue economic concentration.
20 (j) The provisions of the Illinois Antitrust Act are fully
21and equally applicable to the activities of any licensee under
22this Act.
23(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
24eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
25 (230 ILCS 40/45)

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1 Sec. 45. Issuance of license.
2 (a) The burden is upon each applicant to demonstrate his
3suitability for licensure. Each video gaming terminal
4manufacturer, distributor, supplier, operator, handler,
5licensed establishment, licensed truck stop establishment,
6licensed fraternal establishment, and licensed veterans
7establishment shall be licensed by the Board. The Board may
8issue or deny a license under this Act to any person pursuant
9to the same criteria set forth in Section 9 of the Illinois
10Riverboat Gambling Act.
11 (a-5) The Board shall not grant a license to a person who
12has facilitated, enabled, or participated in the use of
13coin-operated devices for gambling purposes or who is under the
14significant influence or control of such a person. For the
15purposes of this Act, "facilitated, enabled, or participated in
16the use of coin-operated amusement devices for gambling
17purposes" means that the person has been convicted of any
18violation of Article 28 of the Criminal Code of 1961 or the
19Criminal Code of 2012. If there is pending legal action against
20a person for any such violation, then the Board shall delay the
21licensure of that person until the legal action is resolved.
22 (b) Each person seeking and possessing a license as a video
23gaming terminal manufacturer, distributor, supplier, operator,
24handler, licensed establishment, licensed truck stop
25establishment, licensed fraternal establishment, or licensed
26veterans establishment shall submit to a background

HB3564- 347 -LRB099 06481 MLM 31222 b
1investigation conducted by the Board with the assistance of the
2State Police or other law enforcement. To the extent that the
3corporate structure of the applicant allows, the background
4investigation shall include any or all of the following as the
5Board deems appropriate or as provided by rule for each
6category of licensure: (i) each beneficiary of a trust, (ii)
7each partner of a partnership, (iii) each member of a limited
8liability company, (iv) each director and officer of a publicly
9or non-publicly held corporation, (v) each stockholder of a
10non-publicly held corporation, (vi) each stockholder of 5% or
11more of a publicly held corporation, or (vii) each stockholder
12of 5% or more in a parent or subsidiary corporation.
13 (c) Each person seeking and possessing a license as a video
14gaming terminal manufacturer, distributor, supplier, operator,
15handler, licensed establishment, licensed truck stop
16establishment, licensed fraternal establishment, or licensed
17veterans establishment shall disclose the identity of every
18person, association, trust, corporation, or limited liability
19company having a greater than 1% direct or indirect pecuniary
20interest in the video gaming terminal operation for which the
21license is sought. If the disclosed entity is a trust, the
22application shall disclose the names and addresses of the
23beneficiaries; if a corporation, the names and addresses of all
24stockholders and directors; if a limited liability company, the
25names and addresses of all members; or if a partnership, the
26names and addresses of all partners, both general and limited.

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1 (d) No person may be licensed as a video gaming terminal
2manufacturer, distributor, supplier, operator, handler,
3licensed establishment, licensed truck stop establishment,
4licensed fraternal establishment, or licensed veterans
5establishment if that person has been found by the Board to:
6 (1) have a background, including a criminal record,
7 reputation, habits, social or business associations, or
8 prior activities that pose a threat to the public interests
9 of the State or to the security and integrity of video
10 gaming;
11 (2) create or enhance the dangers of unsuitable,
12 unfair, or illegal practices, methods, and activities in
13 the conduct of video gaming; or
14 (3) present questionable business practices and
15 financial arrangements incidental to the conduct of video
16 gaming activities.
17 (e) Any applicant for any license under this Act has the
18burden of proving his or her qualifications to the satisfaction
19of the Board. The Board may adopt rules to establish additional
20qualifications and requirements to preserve the integrity and
21security of video gaming in this State.
22 (f) A non-refundable application fee shall be paid at the
23time an application for a license is filed with the Board in
24the following amounts:
25 (1) Manufacturer..........................$5,000
26 (2) Distributor...........................$5,000

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1 (3) Terminal operator.....................$5,000
2 (4) Supplier..............................$2,500
3 (5) Technician..............................$100
4 (6) Terminal Handler..............................$50
5 (g) The Board shall establish an annual fee for each
6license not to exceed the following:
7 (1) Manufacturer.........................$10,000
8 (2) Distributor..........................$10,000
9 (3) Terminal operator.....................$5,000
10 (4) Supplier..............................$2,000
11 (5) Technician..............................$100
12 (6) Licensed establishment, licensed truck stop
13 establishment, licensed fraternal establishment,
14 or licensed veterans establishment..............$100
15 (7) Video gaming terminal...................$100
16 (8) Terminal Handler..............................$50
17 (h) A terminal operator and a licensed establishment,
18licensed truck stop establishment, licensed fraternal
19establishment, or licensed veterans establishment shall
20equally split the fees specified in item (7) of subsection (g).
21(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
2298-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
23 (230 ILCS 40/79)
24 Sec. 79. Investigators. Investigators appointed by the
25Board pursuant to the powers conferred upon the Board by

HB3564- 350 -LRB099 06481 MLM 31222 b
1paragraph (20.6) of subsection (c) of Section 5 of the Illinois
2Riverboat Gambling Act and Section 80 of this Act shall have
3authority to conduct investigations, searches, seizures,
4arrests, and other duties imposed under this Act and the
5Illinois Riverboat Gambling Act, as deemed necessary by the
6Board. These investigators have and may exercise all of the
7rights and powers of peace officers, provided that these powers
8shall be (1) limited to offenses or violations occurring or
9committed in connection with conduct subject to this Act,
10including, but not limited to, the manufacture, distribution,
11supply, operation, placement, service, maintenance, or play of
12video gaming terminals and the distribution of profits and
13collection of revenues resulting from such play, and (2)
14exercised, to the fullest extent practicable, in cooperation
15with the local police department of the applicable municipality
16or, if these powers are exercised outside the boundaries of an
17incorporated municipality or within a municipality that does
18not have its own police department, in cooperation with the
19police department whose jurisdiction encompasses the
20applicable locality.
21(Source: P.A. 97-809, eff. 7-13-12.)
22 (230 ILCS 40/80)
23 Sec. 80. Applicability of Illinois Riverboat Gambling Act.
24The provisions of the Illinois Riverboat Gambling Act, and all
25rules promulgated thereunder, shall apply to the Video Gaming

HB3564- 351 -LRB099 06481 MLM 31222 b
1Act, except where there is a conflict between the 2 Acts. In
2the event of a conflict between the 2 Acts, the provisions of
3the Illinois Gambling Act shall prevail. All provisions of the
4Uniform Penalty and Interest Act shall apply, as far as
5practicable, to the subject matter of this Act to the same
6extent as if such provisions were included herein.
7(Source: P.A. 96-37, eff. 7-13-09.)
8 (230 ILCS 40/81 new)
9 Sec. 81. 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 gaming industry and regulated by the State.
17Unlike most other regulated industries, gaming is especially
18susceptible to corruption and potential criminal influence.
19 In Illinois, only licensed gaming activities are legal and
20all other gaming activities are strictly prohibited. Given
21these circumstances, it is imperative to eliminate any
22potential corrupt influence in the gaming industry and the
23electoral process. Banning political campaign contributions by
24certain persons subject to this Section to State officeholders
25and candidates for such offices and, where necessary, to county

HB3564- 352 -LRB099 06481 MLM 31222 b
1and municipal officeholders and candidates for such offices in
2counties and municipalities that receive financial benefits
3from gaming activities is necessary to prevent corruption and
4the appearance of corruption that may arise when political
5campaign contributions and gaming that is regulated by the
6State and that confers benefits on counties and municipalities
7are intermingled.
8 (b) As used in this Section:
9 "Affiliated entity" means (i) any corporate parent and each
10operating subsidiary of the business entity applying for or
11holding a license, (ii) each operating subsidiary of the
12corporate parent of the business entity applying for or holding
13a license, (iii) any organization recognized by the United
14States Internal Revenue Service as a tax-exempt organization
15described in Section 501(c) of the Internal Revenue Code of
161986 (or any successor provision of federal tax law)
17established by one or more business entities seeking or holding
18a license, any affiliated entity of such business entity, or
19any affiliated person of such business entity, and (iv) any
20political committee for which the business entity applying for
21or holding a license, or any 501(c) organization described in
22item (iii) related to that business entity, is the sponsoring
23entity, as defined in Section 9-3 of the Election Code. For
24purposes of item (iv), the funding of all business entities
25applying for or holding a license shall be aggregated in
26determining whether such political committee is an affiliated

HB3564- 353 -LRB099 06481 MLM 31222 b
1entity.
2 "Affiliated person" means (i) any person with any ownership
3interest or distributive share in excess of 1% of any business
4entity applying for or holding a license, (ii) executive
5employees of any such business entity, (iii) any person
6designated as a person of significant influence and control
7under the Video Gaming Act, and (iv) the spouse of such
8persons.
9 "Business entity" means any entity doing business for
10profit, whether organized as a corporation, partnership, sole
11proprietorship, limited liability company, or partnership or
12otherwise.
13 "Contribution" means a contribution as defined in Section
149-1.4 of the Election Code.
15 "Declared candidate" means a person who has filed a
16statement of candidacy and petition for nomination or election
17in the principal office of the State Board of Elections, or in
18the office of the appropriate election authority for any county
19or municipality in which a video gaming terminal is located or
20proposed or which receives any video gaming revenue, for the
21office of Governor, Lieutenant Governor, Attorney General,
22Secretary of State, Comptroller, Treasurer, member of the
23General Assembly, chief executive or any member of the
24legislative body of any municipality in which a video gaming
25terminal is located or proposed or which receives any video
26gaming revenue, or chief executive or any member of the

HB3564- 354 -LRB099 06481 MLM 31222 b
1legislative body of any county containing any unincorporated
2area in which a video gaming terminal is located or which
3receives any video gaming revenue.
4 "Executive employee" means any person who is an officer or
5director or who fulfills duties equivalent to those of an
6officer or director of a business entity applying for or
7holding a license; and (ii) any employee of such business
8entity who is required to register under the Lobbyist
9Registration Act.
10 "License" means any license issued pursuant to this Act.
11 "Officeholder" means the Governor, the Lieutenant
12Governor, the Attorney General, the Secretary of State, the
13Comptroller, the Treasurer, a member of the General Assembly,
14the chief executive or any member of the legislative body of
15any municipality in which a video gaming terminal is located or
16proposed or which receives any video gaming revenue, or the
17chief executive or any member of the legislative body of any
18county containing any unincorporated area in which a video
19gaming terminal is located or which receives any video gaming
20revenue.
21 (c) Any person or business entity applying for or holding a
22manufacturer or distributor license, any affiliated entities
23or persons of such business entity, and any entities or persons
24soliciting a contribution or causing a contribution to be made
25on behalf of such person or business entity, are prohibited
26from making any contribution to any officeholder or declared

HB3564- 355 -LRB099 06481 MLM 31222 b
1candidate or any political committee affiliated with any
2officeholder or declared candidate, as defined in Section 9-1.8
3of the Election Code.
4 The Board shall have authority to suspend, revoke, or
5restrict the license and to impose civil penalties of up to
6$100,000, for each violation of this subsection (c). A notice
7of each such violation and the penalty imposed shall be
8published on the Board's website and in the Illinois Register.
9Payments received by the State pursuant to this subsection
10shall be deposited into the General Revenue Fund.
11 Any person or business entity applying for or holding a
12terminal operator license, any affiliated entities or persons
13of such business entity, and any entities or persons soliciting
14a contribution or causing a contribution to be made on behalf
15of such person or business entity, are prohibited from making
16any contribution to any officeholder or declared candidate or
17any political committee affiliated with any officeholder or
18declared candidate, as defined in Section 9-1.8 of the Election
19Code, except that any such person or entity may make a
20contribution to the chief executive or any member of the
21legislative body of any municipality in which a video gaming
22terminal is located or proposed or which receives any video
23gaming revenue, the chief executive or any member of the
24legislative body of any county containing any unincorporated
25area in which a video gaming terminal is located or which
26receives any video gaming revenue, or any declared candidates

HB3564- 356 -LRB099 06481 MLM 31222 b
1for such offices, so long as the video gaming terminal
2associated with the terminal operator license held or applied
3for is not located in the same municipality or county in which
4the officeholder or declared candidate holds or is seeking
5office. This prohibition shall commence upon filing of an
6application for a license and shall continue for a period of 2
7years after termination, suspension, or revocation of the
8license.
9 Any officeholder or declared candidate or any political
10committee affiliated with any officeholder or declared
11candidate that has received a contribution in violation of this
12subsection (c) shall pay an amount equal to the value of the
13contribution to the State no more than 30 days after notice of
14the violation concerning the contribution appears in the
15Illinois Register. Payments received by the State pursuant to
16this subsection shall be deposited into the General Revenue
17Fund.
18 The provisions of this subsection (c) shall apply only to
19persons or entities applying for or holding a manufacturer
20license, a distributor license, or a terminal operator license
21and shall not apply to persons or entities applying for or
22holding any other licenses under this Act.
23 (d) The Board shall post on its website a list of all
24persons, business entities, and affiliated entities prohibited
25from making contributions to any officeholder or declared
26candidate political committee pursuant to subsection (c),

HB3564- 357 -LRB099 06481 MLM 31222 b
1which list shall be updated and published on, at a minimum, a
2semiannual basis.
3 Any person, business entity, or affiliated entity
4prohibited from making contributions to any officeholder or
5declared candidate political committee pursuant to subsection
6(c) of this Section shall notify the Board within 7 days after
7discovering any necessary change or addition to the information
8relating to that person, business entity, or affiliated entity
9contained in the list.
10 An individual who acts in good faith and in reliance on any
11information contained in the list shall not be subject to any
12penalties or liability imposed for a violation of this Section.
13 (e) If any provision of this Section is held invalid or its
14application to any person or circumstance is held invalid, the
15invalidity of that provision or application does not affect the
16other provisions or applications of this Section that can be
17given effect without the invalid application or provision.
18 Section 60. The Liquor Control Act of 1934 is amended by
19changing Sections 5-1 and 6-30 as follows:
20 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
21 Sec. 5-1. Licenses issued by the Illinois Liquor Control
22Commission shall be of the following classes:
23 (a) Manufacturer's license - Class 1. Distiller, Class 2.
24Rectifier, Class 3. Brewer, Class 4. First Class Wine

HB3564- 358 -LRB099 06481 MLM 31222 b
1Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
2First Class Winemaker, Class 7. Second Class Winemaker, Class
38. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
410. Craft Brewer,
5 (b) Distributor's license,
6 (c) Importing Distributor's license,
7 (d) Retailer's license,
8 (e) Special Event Retailer's license (not-for-profit),
9 (f) Railroad license,
10 (g) Boat license,
11 (h) Non-Beverage User's license,
12 (i) Wine-maker's premises license,
13 (j) Airplane license,
14 (k) Foreign importer's license,
15 (l) Broker's license,
16 (m) Non-resident dealer's license,
17 (n) Brew Pub license,
18 (o) Auction liquor license,
19 (p) Caterer retailer license,
20 (q) Special use permit license,
21 (r) Winery shipper's license.
22 No person, firm, partnership, corporation, or other legal
23business entity that is engaged in the manufacturing of wine
24may concurrently obtain and hold a wine-maker's license and a
25wine manufacturer's license.
26 (a) A manufacturer's license shall allow the manufacture,

HB3564- 359 -LRB099 06481 MLM 31222 b
1importation in bulk, storage, distribution and sale of
2alcoholic liquor to persons without the State, as may be
3permitted by law and to licensees in this State as follows:
4 Class 1. A Distiller may make sales and deliveries of
5alcoholic liquor to distillers, rectifiers, importing
6distributors, distributors and non-beverage users and to no
7other licensees.
8 Class 2. A Rectifier, who is not a distiller, as defined
9herein, may make sales and deliveries of alcoholic liquor to
10rectifiers, importing distributors, distributors, retailers
11and non-beverage users and to no other licensees.
12 Class 3. A Brewer may make sales and deliveries of beer to
13importing distributors and distributors and may make sales as
14authorized under subsection (e) of Section 6-4 of this Act.
15 Class 4. A first class wine-manufacturer may make sales and
16deliveries of up to 50,000 gallons of wine to manufacturers,
17importing distributors and distributors, and to no other
18licensees.
19 Class 5. A second class Wine manufacturer may make sales
20and deliveries of more than 50,000 gallons of wine to
21manufacturers, importing distributors and distributors and to
22no other licensees.
23 Class 6. A first-class wine-maker's license shall allow the
24manufacture of up to 50,000 gallons of wine per year, and the
25storage and sale of such wine to distributors in the State and
26to persons without the State, as may be permitted by law. A

HB3564- 360 -LRB099 06481 MLM 31222 b
1person who, prior to the effective date of this amendatory Act
2of the 95th General Assembly, is a holder of a first-class
3wine-maker's license and annually produces more than 25,000
4gallons of its own wine and who distributes its wine to
5licensed retailers shall cease this practice on or before July
61, 2008 in compliance with this amendatory Act of the 95th
7General Assembly.
8 Class 7. A second-class wine-maker's license shall allow
9the manufacture of between 50,000 and 150,000 gallons of wine
10per year, and the storage and sale of such wine to distributors
11in this State and to persons without the State, as may be
12permitted by law. A person who, prior to the effective date of
13this amendatory Act of the 95th General Assembly, is a holder
14of a second-class wine-maker's license and annually produces
15more than 25,000 gallons of its own wine and who distributes
16its wine to licensed retailers shall cease this practice on or
17before July 1, 2008 in compliance with this amendatory Act of
18the 95th General Assembly.
19 Class 8. A limited wine-manufacturer may make sales and
20deliveries not to exceed 40,000 gallons of wine per year to
21distributors, and to non-licensees in accordance with the
22provisions of this Act.
23 Class 9. A craft distiller license shall allow the
24manufacture of up to 30,000 gallons of spirits by distillation
25for one year after the effective date of this amendatory Act of
26the 97th General Assembly and up to 35,000 gallons of spirits

HB3564- 361 -LRB099 06481 MLM 31222 b
1by distillation per year thereafter and the storage of such
2spirits. If a craft distiller licensee is not affiliated with
3any other manufacturer, then the craft distiller licensee may
4sell such spirits to distributors in this State and up to 2,500
5gallons of such spirits to non-licensees to the extent
6permitted by any exemption approved by the Commission pursuant
7to Section 6-4 of this Act.
8 Any craft distiller licensed under this Act who on the
9effective date of this amendatory Act of the 96th General
10Assembly was licensed as a distiller and manufactured no more
11spirits than permitted by this Section shall not be required to
12pay the initial licensing fee.
13 Class 10. A craft brewer's license, which may only be
14issued to a licensed brewer or licensed non-resident dealer,
15shall allow the manufacture of up to 930,000 gallons of beer
16per year. A craft brewer licensee may make sales and deliveries
17to importing distributors and distributors and to retail
18licensees in accordance with the conditions set forth in
19paragraph (18) of subsection (a) of Section 3-12 of this Act.
20 (a-1) A manufacturer which is licensed in this State to
21make sales or deliveries of alcoholic liquor to licensed
22distributors or importing distributors and which enlists
23agents, representatives, or individuals acting on its behalf
24who contact licensed retailers on a regular and continual basis
25in this State must register those agents, representatives, or
26persons acting on its behalf with the State Commission.

HB3564- 362 -LRB099 06481 MLM 31222 b
1 Registration of agents, representatives, or persons acting
2on behalf of a manufacturer is fulfilled by submitting a form
3to the Commission. The form shall be developed by the
4Commission and shall include the name and address of the
5applicant, the name and address of the manufacturer he or she
6represents, the territory or areas assigned to sell to or
7discuss pricing terms of alcoholic liquor, and any other
8questions deemed appropriate and necessary. All statements in
9the forms required to be made by law or by rule shall be deemed
10material, and any person who knowingly misstates any material
11fact under oath in an application is guilty of a Class B
12misdemeanor. Fraud, misrepresentation, false statements,
13misleading statements, evasions, or suppression of material
14facts in the securing of a registration are grounds for
15suspension or revocation of the registration. The State
16Commission shall post a list of registered agents on the
17Commission's website.
18 (b) A distributor's license shall allow the wholesale
19purchase and storage of alcoholic liquors and sale of alcoholic
20liquors to licensees in this State and to persons without the
21State, as may be permitted by law.
22 (c) An importing distributor's license may be issued to and
23held by those only who are duly licensed distributors, upon the
24filing of an application by a duly licensed distributor, with
25the Commission and the Commission shall, without the payment of
26any fee, immediately issue such importing distributor's

HB3564- 363 -LRB099 06481 MLM 31222 b
1license to the applicant, which shall allow the importation of
2alcoholic liquor by the licensee into this State from any point
3in the United States outside this State, and the purchase of
4alcoholic liquor in barrels, casks or other bulk containers and
5the bottling of such alcoholic liquors before resale thereof,
6but all bottles or containers so filled shall be sealed,
7labeled, stamped and otherwise made to comply with all
8provisions, rules and regulations governing manufacturers in
9the preparation and bottling of alcoholic liquors. The
10importing distributor's license shall permit such licensee to
11purchase alcoholic liquor from Illinois licensed non-resident
12dealers and foreign importers only.
13 (d) A retailer's license shall allow the licensee to sell
14and offer for sale at retail, only in the premises specified in
15the license, alcoholic liquor for use or consumption, but not
16for resale in any form. Nothing in this amendatory Act of the
1795th General Assembly shall deny, limit, remove, or restrict
18the ability of a holder of a retailer's license to transfer,
19deliver, or ship alcoholic liquor to the purchaser for use or
20consumption subject to any applicable local law or ordinance.
21Any retail license issued to a manufacturer shall only permit
22the manufacturer to sell beer at retail on the premises
23actually occupied by the manufacturer. For the purpose of
24further describing the type of business conducted at a retail
25licensed premises, a retailer's licensee may be designated by
26the State Commission as (i) an on premise consumption retailer,

HB3564- 364 -LRB099 06481 MLM 31222 b
1(ii) an off premise sale retailer, or (iii) a combined on
2premise consumption and off premise sale retailer.
3 Notwithstanding any other provision of this subsection
4(d), a retail licensee may sell alcoholic liquors to a special
5event retailer licensee for resale to the extent permitted
6under subsection (e).
7 (e) A special event retailer's license (not-for-profit)
8shall permit the licensee to purchase alcoholic liquors from an
9Illinois licensed distributor (unless the licensee purchases
10less than $500 of alcoholic liquors for the special event, in
11which case the licensee may purchase the alcoholic liquors from
12a licensed retailer) and shall allow the licensee to sell and
13offer for sale, at retail, alcoholic liquors for use or
14consumption, but not for resale in any form and only at the
15location and on the specific dates designated for the special
16event in the license. An applicant for a special event retailer
17license must (i) furnish with the application: (A) a resale
18number issued under Section 2c of the Retailers' Occupation Tax
19Act or evidence that the applicant is registered under Section
202a of the Retailers' Occupation Tax Act, (B) a current, valid
21exemption identification number issued under Section 1g of the
22Retailers' Occupation Tax Act, and a certification to the
23Commission that the purchase of alcoholic liquors will be a
24tax-exempt purchase, or (C) a statement that the applicant is
25not registered under Section 2a of the Retailers' Occupation
26Tax Act, does not hold a resale number under Section 2c of the

HB3564- 365 -LRB099 06481 MLM 31222 b
1Retailers' Occupation Tax Act, and does not hold an exemption
2number under Section 1g of the Retailers' Occupation Tax Act,
3in which event the Commission shall set forth on the special
4event retailer's license a statement to that effect; (ii)
5submit with the application proof satisfactory to the State
6Commission that the applicant will provide dram shop liability
7insurance in the maximum limits; and (iii) show proof
8satisfactory to the State Commission that the applicant has
9obtained local authority approval.
10 (f) A railroad license shall permit the licensee to import
11alcoholic liquors into this State from any point in the United
12States outside this State and to store such alcoholic liquors
13in this State; to make wholesale purchases of alcoholic liquors
14directly from manufacturers, foreign importers, distributors
15and importing distributors from within or outside this State;
16and to store such alcoholic liquors in this State; provided
17that the above powers may be exercised only in connection with
18the importation, purchase or storage of alcoholic liquors to be
19sold or dispensed on a club, buffet, lounge or dining car
20operated on an electric, gas or steam railway in this State;
21and provided further, that railroad licensees exercising the
22above powers shall be subject to all provisions of Article VIII
23of this Act as applied to importing distributors. A railroad
24license shall also permit the licensee to sell or dispense
25alcoholic liquors on any club, buffet, lounge or dining car
26operated on an electric, gas or steam railway regularly

HB3564- 366 -LRB099 06481 MLM 31222 b
1operated by a common carrier in this State, but shall not
2permit the sale for resale of any alcoholic liquors to any
3licensee within this State. A license shall be obtained for
4each car in which such sales are made.
5 (g) A boat license shall allow the sale of alcoholic liquor
6in individual drinks, on any passenger boat regularly operated
7as a common carrier on navigable waters in this State or on any
8riverboat operated under the Illinois Riverboat Gambling Act,
9which boat or riverboat maintains a public dining room or
10restaurant thereon.
11 (h) A non-beverage user's license shall allow the licensee
12to purchase alcoholic liquor from a licensed manufacturer or
13importing distributor, without the imposition of any tax upon
14the business of such licensed manufacturer or importing
15distributor as to such alcoholic liquor to be used by such
16licensee solely for the non-beverage purposes set forth in
17subsection (a) of Section 8-1 of this Act, and such licenses
18shall be divided and classified and shall permit the purchase,
19possession and use of limited and stated quantities of
20alcoholic liquor as follows:
21Class 1, not to exceed ......................... 500 gallons
22Class 2, not to exceed ....................... 1,000 gallons
23Class 3, not to exceed ....................... 5,000 gallons
24Class 4, not to exceed ...................... 10,000 gallons
25Class 5, not to exceed ....................... 50,000 gallons
26 (i) A wine-maker's premises license shall allow a licensee

HB3564- 367 -LRB099 06481 MLM 31222 b
1that concurrently holds a first-class wine-maker's license to
2sell and offer for sale at retail in the premises specified in
3such license not more than 50,000 gallons of the first-class
4wine-maker's wine that is made at the first-class wine-maker's
5licensed premises per year for use or consumption, but not for
6resale in any form. A wine-maker's premises license shall allow
7a licensee who concurrently holds a second-class wine-maker's
8license to sell and offer for sale at retail in the premises
9specified in such license up to 100,000 gallons of the
10second-class wine-maker's wine that is made at the second-class
11wine-maker's licensed premises per year for use or consumption
12but not for resale in any form. A wine-maker's premises license
13shall allow a licensee that concurrently holds a first-class
14wine-maker's license or a second-class wine-maker's license to
15sell and offer for sale at retail at the premises specified in
16the wine-maker's premises license, for use or consumption but
17not for resale in any form, any beer, wine, and spirits
18purchased from a licensed distributor. Upon approval from the
19State Commission, a wine-maker's premises license shall allow
20the licensee to sell and offer for sale at (i) the wine-maker's
21licensed premises and (ii) at up to 2 additional locations for
22use and consumption and not for resale. Each location shall
23require additional licensing per location as specified in
24Section 5-3 of this Act. A wine-maker's premises licensee shall
25secure liquor liability insurance coverage in an amount at
26least equal to the maximum liability amounts set forth in

HB3564- 368 -LRB099 06481 MLM 31222 b
1subsection (a) of Section 6-21 of this Act.
2 (j) An airplane license shall permit the licensee to import
3alcoholic liquors into this State from any point in the United
4States outside this State and to store such alcoholic liquors
5in this State; to make wholesale purchases of alcoholic liquors
6directly from manufacturers, foreign importers, distributors
7and importing distributors from within or outside this State;
8and to store such alcoholic liquors in this State; provided
9that the above powers may be exercised only in connection with
10the importation, purchase or storage of alcoholic liquors to be
11sold or dispensed on an airplane; and provided further, that
12airplane licensees exercising the above powers shall be subject
13to all provisions of Article VIII of this Act as applied to
14importing distributors. An airplane licensee shall also permit
15the sale or dispensing of alcoholic liquors on any passenger
16airplane regularly operated by a common carrier in this State,
17but shall not permit the sale for resale of any alcoholic
18liquors to any licensee within this State. A single airplane
19license shall be required of an airline company if liquor
20service is provided on board aircraft in this State. The annual
21fee for such license shall be as determined in Section 5-3.
22 (k) A foreign importer's license shall permit such licensee
23to purchase alcoholic liquor from Illinois licensed
24non-resident dealers only, and to import alcoholic liquor other
25than in bulk from any point outside the United States and to
26sell such alcoholic liquor to Illinois licensed importing

HB3564- 369 -LRB099 06481 MLM 31222 b
1distributors and to no one else in Illinois; provided that (i)
2the foreign importer registers with the State Commission every
3brand of alcoholic liquor that it proposes to sell to Illinois
4licensees during the license period, (ii) the foreign importer
5complies with all of the provisions of Section 6-9 of this Act
6with respect to registration of such Illinois licensees as may
7be granted the right to sell such brands at wholesale, and
8(iii) the foreign importer complies with the provisions of
9Sections 6-5 and 6-6 of this Act to the same extent that these
10provisions apply to manufacturers.
11 (l) (i) A broker's license shall be required of all persons
12who solicit orders for, offer to sell or offer to supply
13alcoholic liquor to retailers in the State of Illinois, or who
14offer to retailers to ship or cause to be shipped or to make
15contact with distillers, rectifiers, brewers or manufacturers
16or any other party within or without the State of Illinois in
17order that alcoholic liquors be shipped to a distributor,
18importing distributor or foreign importer, whether such
19solicitation or offer is consummated within or without the
20State of Illinois.
21 No holder of a retailer's license issued by the Illinois
22Liquor Control Commission shall purchase or receive any
23alcoholic liquor, the order for which was solicited or offered
24for sale to such retailer by a broker unless the broker is the
25holder of a valid broker's license.
26 The broker shall, upon the acceptance by a retailer of the

HB3564- 370 -LRB099 06481 MLM 31222 b
1broker's solicitation of an order or offer to sell or supply or
2deliver or have delivered alcoholic liquors, promptly forward
3to the Illinois Liquor Control Commission a notification of
4said transaction in such form as the Commission may by
5regulations prescribe.
6 (ii) A broker's license shall be required of a person
7within this State, other than a retail licensee, who, for a fee
8or commission, promotes, solicits, or accepts orders for
9alcoholic liquor, for use or consumption and not for resale, to
10be shipped from this State and delivered to residents outside
11of this State by an express company, common carrier, or
12contract carrier. This Section does not apply to any person who
13promotes, solicits, or accepts orders for wine as specifically
14authorized in Section 6-29 of this Act.
15 A broker's license under this subsection (l) shall not
16entitle the holder to buy or sell any alcoholic liquors for his
17own account or to take or deliver title to such alcoholic
18liquors.
19 This subsection (l) shall not apply to distributors,
20employees of distributors, or employees of a manufacturer who
21has registered the trademark, brand or name of the alcoholic
22liquor pursuant to Section 6-9 of this Act, and who regularly
23sells such alcoholic liquor in the State of Illinois only to
24its registrants thereunder.
25 Any agent, representative, or person subject to
26registration pursuant to subsection (a-1) of this Section shall

HB3564- 371 -LRB099 06481 MLM 31222 b
1not be eligible to receive a broker's license.
2 (m) A non-resident dealer's license shall permit such
3licensee to ship into and warehouse alcoholic liquor into this
4State from any point outside of this State, and to sell such
5alcoholic liquor to Illinois licensed foreign importers and
6importing distributors and to no one else in this State;
7provided that (i) said non-resident dealer shall register with
8the Illinois Liquor Control Commission each and every brand of
9alcoholic liquor which it proposes to sell to Illinois
10licensees during the license period, (ii) it shall comply with
11all of the provisions of Section 6-9 hereof with respect to
12registration of such Illinois licensees as may be granted the
13right to sell such brands at wholesale, and (iii) the
14non-resident dealer shall comply with the provisions of
15Sections 6-5 and 6-6 of this Act to the same extent that these
16provisions apply to manufacturers.
17 (n) A brew pub license shall allow the licensee (i) to
18manufacture beer only on the premises specified in the license,
19(ii) to make sales of the beer manufactured on the premises or,
20with the approval of the Commission, beer manufactured on
21another brew pub licensed premises that is substantially owned
22and operated by the same licensee to importing distributors,
23distributors, and to non-licensees for use and consumption,
24(iii) to store the beer upon the premises, and (iv) to sell and
25offer for sale at retail from the licensed premises, provided
26that a brew pub licensee shall not sell for off-premises

HB3564- 372 -LRB099 06481 MLM 31222 b
1consumption more than 50,000 gallons per year. A person who
2holds a brew pub license may simultaneously hold a craft brewer
3license if he or she otherwise qualifies for the craft brewer
4license and the craft brewer license is for a location separate
5from the brew pub's licensed premises. A brew pub license shall
6permit a person who has received prior approval from the
7Commission to annually transfer no more than a total of 50,000
8gallons of beer manufactured on premises to all other licensed
9brew pubs that are substantially owned and operated by the same
10person.
11 (o) A caterer retailer license shall allow the holder to
12serve alcoholic liquors as an incidental part of a food service
13that serves prepared meals which excludes the serving of snacks
14as the primary meal, either on or off-site whether licensed or
15unlicensed.
16 (p) An auction liquor license shall allow the licensee to
17sell and offer for sale at auction wine and spirits for use or
18consumption, or for resale by an Illinois liquor licensee in
19accordance with provisions of this Act. An auction liquor
20license will be issued to a person and it will permit the
21auction liquor licensee to hold the auction anywhere in the
22State. An auction liquor license must be obtained for each
23auction at least 14 days in advance of the auction date.
24 (q) A special use permit license shall allow an Illinois
25licensed retailer to transfer a portion of its alcoholic liquor
26inventory from its retail licensed premises to the premises

HB3564- 373 -LRB099 06481 MLM 31222 b
1specified in the license hereby created, and to sell or offer
2for sale at retail, only in the premises specified in the
3license hereby created, the transferred alcoholic liquor for
4use or consumption, but not for resale in any form. A special
5use permit license may be granted for the following time
6periods: one day or less; 2 or more days to a maximum of 15 days
7per location in any 12 month period. An applicant for the
8special use permit license must also submit with the
9application proof satisfactory to the State Commission that the
10applicant will provide dram shop liability insurance to the
11maximum limits and have local authority approval.
12 (r) A winery shipper's license shall allow a person with a
13first-class or second-class wine manufacturer's license, a
14first-class or second-class wine-maker's license, or a limited
15wine manufacturer's license or who is licensed to make wine
16under the laws of another state to ship wine made by that
17licensee directly to a resident of this State who is 21 years
18of age or older for that resident's personal use and not for
19resale. Prior to receiving a winery shipper's license, an
20applicant for the license must provide the Commission with a
21true copy of its current license in any state in which it is
22licensed as a manufacturer of wine. An applicant for a winery
23shipper's license must also complete an application form that
24provides any other information the Commission deems necessary.
25The application form shall include an acknowledgement
26consenting to the jurisdiction of the Commission, the Illinois

HB3564- 374 -LRB099 06481 MLM 31222 b
1Department of Revenue, and the courts of this State concerning
2the enforcement of this Act and any related laws, rules, and
3regulations, including authorizing the Department of Revenue
4and the Commission to conduct audits for the purpose of
5ensuring compliance with this amendatory Act.
6 A winery shipper licensee must pay to the Department of
7Revenue the State liquor gallonage tax under Section 8-1 for
8all wine that is sold by the licensee and shipped to a person
9in this State. For the purposes of Section 8-1, a winery
10shipper licensee shall be taxed in the same manner as a
11manufacturer of wine. A licensee who is not otherwise required
12to register under the Retailers' Occupation Tax Act must
13register under the Use Tax Act to collect and remit use tax to
14the Department of Revenue for all gallons of wine that are sold
15by the licensee and shipped to persons in this State. If a
16licensee fails to remit the tax imposed under this Act in
17accordance with the provisions of Article VIII of this Act, the
18winery shipper's license shall be revoked in accordance with
19the provisions of Article VII of this Act. If a licensee fails
20to properly register and remit tax under the Use Tax Act or the
21Retailers' Occupation Tax Act for all wine that is sold by the
22winery shipper and shipped to persons in this State, the winery
23shipper's license shall be revoked in accordance with the
24provisions of Article VII of this Act.
25 A winery shipper licensee must collect, maintain, and
26submit to the Commission on a semi-annual basis the total

HB3564- 375 -LRB099 06481 MLM 31222 b
1number of cases per resident of wine shipped to residents of
2this State. A winery shipper licensed under this subsection (r)
3must comply with the requirements of Section 6-29 of this
4amendatory Act.
5(Source: P.A. 97-5, eff. 6-1-11; 97-455, eff. 8-19-11; 97-813,
6eff. 7-13-12; 97-1166, eff. 3-1-13; 98-394, eff. 8-16-13;
798-401, eff. 8-16-13; 98-756, eff. 7-16-14.)
8 (235 ILCS 5/6-30) (from Ch. 43, par. 144f)
9 Sec. 6-30. Notwithstanding any other provision of this Act,
10the Illinois Gaming Board shall have exclusive authority to
11establish the hours for sale and consumption of alcoholic
12liquor on board a riverboat during riverboat gambling
13excursions conducted in accordance with the Illinois Riverboat
14Gambling Act.
15(Source: P.A. 87-826.)
16 Section 65. The Illinois Public Aid Code is amended by
17changing Section 10-17.15 as follows:
18 (305 ILCS 5/10-17.15)
19 Sec. 10-17.15. Certification of information to State
20gaming licensees.
21 (a) For purposes of this Section, "State gaming licensee"
22means, as applicable, an organization licensee or advance
23deposit wagering licensee licensed under the Illinois Horse

HB3564- 376 -LRB099 06481 MLM 31222 b
1Racing Act of 1975, an owners licensee licensed under the
2Illinois Riverboat Gambling Act, an electronic gaming licensee
3under the Illinois Gambling Act and the Illinois Horse Racing
4Act of 1975, or a licensee that operates, under any law of this
5State, one or more facilities or gaming locations at which
6lawful gambling is authorized and licensed as provided in the
7Illinois Riverboat Gambling Act.
8 (b) The Department may provide, by rule, for certification
9to any State gaming licensee of past due child support owed by
10a responsible relative under a support order entered by a court
11or administrative body of this or any other State on behalf of
12a resident or non-resident receiving child support services
13under this Article in accordance with the requirements of Title
14IV-D, Part D, of the Social Security Act. The State gaming
15licensee shall have the ability to withhold from winnings
16required to be reported to the Internal Revenue Service on Form
17W-2G, up to the full amount of winnings necessary to pay the
18winner's past due child support. The rule shall provide for
19notice to and an opportunity to be heard by each responsible
20relative affected and any final administrative decision
21rendered by the Department shall be reviewed only under and in
22accordance with the Administrative Review Law.
23 (c) For withholding of winnings, the State gaming licensee
24shall be entitled to an administrative fee not to exceed the
25lesser of 4% of the total amount of cash winnings paid to the
26gambling winner or $150.

HB3564- 377 -LRB099 06481 MLM 31222 b
1 (d) In no event may the total amount withheld from the cash
2payout, including the administrative fee, exceed the total cash
3winnings claimed by the obligor. If the cash payout claimed is
4greater than the amount sufficient to satisfy the obligor's
5delinquent child support payments, the State gaming licensee
6shall pay the obligor the remaining balance of the payout, less
7the administrative fee authorized by subsection (c) of this
8Section, at the time it is claimed.
9 (e) A State gaming licensee who in good faith complies with
10the requirements of this Section shall not be liable to the
11gaming winner or any other individual or entity.
12(Source: P.A. 98-318, eff. 8-12-13.)
13 Section 70. The Firearm Concealed Carry Act is amended by
14changing Section 65 as follows:
15 (430 ILCS 66/65)
16 Sec. 65. Prohibited areas.
17 (a) A licensee under this Act shall not knowingly carry a
18firearm on or into:
19 (1) Any building, real property, and parking area under
20 the control of a public or private elementary or secondary
21 school.
22 (2) Any building, real property, and parking area under
23 the control of a pre-school or child care facility,
24 including any room or portion of a building under the

HB3564- 378 -LRB099 06481 MLM 31222 b
1 control of a pre-school or child care facility. Nothing in
2 this paragraph shall prevent the operator of a child care
3 facility in a family home from owning or possessing a
4 firearm in the home or license under this Act, if no child
5 under child care at the home is present in the home or the
6 firearm in the home is stored in a locked container when a
7 child under child care at the home is present in the home.
8 (3) Any building, parking area, or portion of a
9 building under the control of an officer of the executive
10 or legislative branch of government, provided that nothing
11 in this paragraph shall prohibit a licensee from carrying a
12 concealed firearm onto the real property, bikeway, or trail
13 in a park regulated by the Department of Natural Resources
14 or any other designated public hunting area or building
15 where firearm possession is permitted as established by the
16 Department of Natural Resources under Section 1.8 of the
17 Wildlife Code.
18 (4) Any building designated for matters before a
19 circuit court, appellate court, or the Supreme Court, or
20 any building or portion of a building under the control of
21 the Supreme Court.
22 (5) Any building or portion of a building under the
23 control of a unit of local government.
24 (6) Any building, real property, and parking area under
25 the control of an adult or juvenile detention or
26 correctional institution, prison, or jail.

HB3564- 379 -LRB099 06481 MLM 31222 b
1 (7) Any building, real property, and parking area under
2 the control of a public or private hospital or hospital
3 affiliate, mental health facility, or nursing home.
4 (8) Any bus, train, or form of transportation paid for
5 in whole or in part with public funds, and any building,
6 real property, and parking area under the control of a
7 public transportation facility paid for in whole or in part
8 with public funds.
9 (9) Any building, real property, and parking area under
10 the control of an establishment that serves alcohol on its
11 premises, if more than 50% of the establishment's gross
12 receipts within the prior 3 months is from the sale of
13 alcohol. The owner of an establishment who knowingly fails
14 to prohibit concealed firearms on its premises as provided
15 in this paragraph or who knowingly makes a false statement
16 or record to avoid the prohibition on concealed firearms
17 under this paragraph is subject to the penalty under
18 subsection (c-5) of Section 10-1 of the Liquor Control Act
19 of 1934.
20 (10) Any public gathering or special event conducted on
21 property open to the public that requires the issuance of a
22 permit from the unit of local government, provided this
23 prohibition shall not apply to a licensee who must walk
24 through a public gathering in order to access his or her
25 residence, place of business, or vehicle.
26 (11) Any building or real property that has been issued

HB3564- 380 -LRB099 06481 MLM 31222 b
1 a Special Event Retailer's license as defined in Section
2 1-3.17.1 of the Liquor Control Act during the time
3 designated for the sale of alcohol by the Special Event
4 Retailer's license, or a Special use permit license as
5 defined in subsection (q) of Section 5-1 of the Liquor
6 Control Act during the time designated for the sale of
7 alcohol by the Special use permit license.
8 (12) Any public playground.
9 (13) Any public park, athletic area, or athletic
10 facility under the control of a municipality or park
11 district, provided nothing in this Section shall prohibit a
12 licensee from carrying a concealed firearm while on a trail
13 or bikeway if only a portion of the trail or bikeway
14 includes a public park.
15 (14) Any real property under the control of the Cook
16 County Forest Preserve District.
17 (15) Any building, classroom, laboratory, medical
18 clinic, hospital, artistic venue, athletic venue,
19 entertainment venue, officially recognized
20 university-related organization property, whether owned or
21 leased, and any real property, including parking areas,
22 sidewalks, and common areas under the control of a public
23 or private community college, college, or university.
24 (16) Any building, real property, or parking area under
25 the control of a gaming facility licensed under the
26 Illinois Riverboat Gambling Act or the Illinois Horse

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1 Racing Act of 1975, including an inter-track wagering
2 location licensee.
3 (17) Any stadium, arena, or the real property or
4 parking area under the control of a stadium, arena, or any
5 collegiate or professional sporting event.
6 (18) Any building, real property, or parking area under
7 the control of a public library.
8 (19) Any building, real property, or parking area under
9 the control of an airport.
10 (20) Any building, real property, or parking area under
11 the control of an amusement park.
12 (21) Any building, real property, or parking area under
13 the control of a zoo or museum.
14 (22) Any street, driveway, parking area, property,
15 building, or facility, owned, leased, controlled, or used
16 by a nuclear energy, storage, weapons, or development site
17 or facility regulated by the federal Nuclear Regulatory
18 Commission. The licensee shall not under any circumstance
19 store a firearm or ammunition in his or her vehicle or in a
20 compartment or container within a vehicle located anywhere
21 in or on the street, driveway, parking area, property,
22 building, or facility described in this paragraph.
23 (23) Any area where firearms are prohibited under
24 federal law.
25 (a-5) Nothing in this Act shall prohibit a public or
26private community college, college, or university from:

HB3564- 382 -LRB099 06481 MLM 31222 b
1 (1) prohibiting persons from carrying a firearm within
2 a vehicle owned, leased, or controlled by the college or
3 university;
4 (2) developing resolutions, regulations, or policies
5 regarding student, employee, or visitor misconduct and
6 discipline, including suspension and expulsion;
7 (3) developing resolutions, regulations, or policies
8 regarding the storage or maintenance of firearms, which
9 must include designated areas where persons can park
10 vehicles that carry firearms; and
11 (4) permitting the carrying or use of firearms for the
12 purpose of instruction and curriculum of officially
13 recognized programs, including but not limited to military
14 science and law enforcement training programs, or in any
15 designated area used for hunting purposes or target
16 shooting.
17 (a-10) The owner of private real property of any type may
18prohibit the carrying of concealed firearms on the property
19under his or her control. The owner must post a sign in
20accordance with subsection (d) of this Section indicating that
21firearms are prohibited on the property, unless the property is
22a private residence.
23 (b) Notwithstanding subsections (a), (a-5), and (a-10) of
24this Section except under paragraph (22) or (23) of subsection
25(a), any licensee prohibited from carrying a concealed firearm
26into the parking area of a prohibited location specified in

HB3564- 383 -LRB099 06481 MLM 31222 b
1subsection (a), (a-5), or (a-10) of this Section shall be
2permitted to carry a concealed firearm on or about his or her
3person within a vehicle into the parking area and may store a
4firearm or ammunition concealed in a case within a locked
5vehicle or locked container out of plain view within the
6vehicle in the parking area. A licensee may carry a concealed
7firearm in the immediate area surrounding his or her vehicle
8within a prohibited parking lot area only for the limited
9purpose of storing or retrieving a firearm within the vehicle's
10trunk, provided the licensee ensures the concealed firearm is
11unloaded prior to exiting the vehicle. For purposes of this
12subsection, "case" includes a glove compartment or console that
13completely encloses the concealed firearm or ammunition, the
14trunk of the vehicle, or a firearm carrying box, shipping box,
15or other container.
16 (c) A licensee shall not be in violation of this Section
17while he or she is traveling along a public right of way that
18touches or crosses any of the premises under subsection (a),
19(a-5), or (a-10) of this Section if the concealed firearm is
20carried on his or her person in accordance with the provisions
21of this Act or is being transported in a vehicle by the
22licensee in accordance with all other applicable provisions of
23law.
24 (d) Signs stating that the carrying of firearms is
25prohibited shall be clearly and conspicuously posted at the
26entrance of a building, premises, or real property specified in

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1this Section as a prohibited area, unless the building or
2premises is a private residence. Signs shall be of a uniform
3design as established by the Department and shall be 4 inches
4by 6 inches in size. The Department shall adopt rules for
5standardized signs to be used under this subsection.
6(Source: P.A. 98-63, eff. 7-9-13.)
7 Section 75. The Criminal Code of 2012 is amended by
8changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as
9follows:
10 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
11 Sec. 28-1. Gambling.
12 (a) A person commits gambling when he or she:
13 (1) knowingly plays a game of chance or skill for money
14 or other thing of value, unless excepted in subsection (b)
15 of this Section;
16 (2) knowingly makes a wager upon the result of any
17 game, contest, or any political nomination, appointment or
18 election;
19 (3) knowingly operates, keeps, owns, uses, purchases,
20 exhibits, rents, sells, bargains for the sale or lease of,
21 manufactures or distributes any gambling device;
22 (4) contracts to have or give himself or herself or
23 another the option to buy or sell, or contracts to buy or
24 sell, at a future time, any grain or other commodity

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1 whatsoever, or any stock or security of any company, where
2 it is at the time of making such contract intended by both
3 parties thereto that the contract to buy or sell, or the
4 option, whenever exercised, or the contract resulting
5 therefrom, shall be settled, not by the receipt or delivery
6 of such property, but by the payment only of differences in
7 prices thereof; however, the issuance, purchase, sale,
8 exercise, endorsement or guarantee, by or through a person
9 registered with the Secretary of State pursuant to Section
10 8 of the Illinois Securities Law of 1953, or by or through
11 a person exempt from such registration under said Section
12 8, of a put, call, or other option to buy or sell
13 securities which have been registered with the Secretary of
14 State or which are exempt from such registration under
15 Section 3 of the Illinois Securities Law of 1953 is not
16 gambling within the meaning of this paragraph (4);
17 (5) knowingly owns or possesses any book, instrument or
18 apparatus by means of which bets or wagers have been, or
19 are, recorded or registered, or knowingly possesses any
20 money which he has received in the course of a bet or
21 wager;
22 (6) knowingly sells pools upon the result of any game
23 or contest of skill or chance, political nomination,
24 appointment or election;
25 (7) knowingly sets up or promotes any lottery or sells,
26 offers to sell or transfers any ticket or share for any

HB3564- 386 -LRB099 06481 MLM 31222 b
1 lottery;
2 (8) knowingly sets up or promotes any policy game or
3 sells, offers to sell or knowingly possesses or transfers
4 any policy ticket, slip, record, document or other similar
5 device;
6 (9) knowingly drafts, prints or publishes any lottery
7 ticket or share, or any policy ticket, slip, record,
8 document or similar device, except for such activity
9 related to lotteries, bingo games and raffles authorized by
10 and conducted in accordance with the laws of Illinois or
11 any other state or foreign government;
12 (10) knowingly advertises any lottery or policy game,
13 except for such activity related to lotteries, bingo games
14 and raffles authorized by and conducted in accordance with
15 the laws of Illinois or any other state;
16 (11) knowingly transmits information as to wagers,
17 betting odds, or changes in betting odds by telephone,
18 telegraph, radio, semaphore or similar means; or knowingly
19 installs or maintains equipment for the transmission or
20 receipt of such information; except that nothing in this
21 subdivision (11) prohibits transmission or receipt of such
22 information for use in news reporting of sporting events or
23 contests; or
24 (12) knowingly establishes, maintains, or operates an
25 Internet site that permits a person to play a game of
26 chance or skill for money or other thing of value by means

HB3564- 387 -LRB099 06481 MLM 31222 b
1 of the Internet or to make a wager upon the result of any
2 game, contest, political nomination, appointment, or
3 election by means of the Internet. This item (12) does not
4 apply to activities referenced in items (6) and (6.1) of
5 subsection (b) of this Section.
6 (b) Participants in any of the following activities shall
7not be convicted of gambling:
8 (1) Agreements to compensate for loss caused by the
9 happening of chance including without limitation contracts
10 of indemnity or guaranty and life or health or accident
11 insurance.
12 (2) Offers of prizes, award or compensation to the
13 actual contestants in any bona fide contest for the
14 determination of skill, speed, strength or endurance or to
15 the owners of animals or vehicles entered in such contest.
16 (3) Pari-mutuel betting as authorized by the law of
17 this State.
18 (4) Manufacture of gambling devices, including the
19 acquisition of essential parts therefor and the assembly
20 thereof, for transportation in interstate or foreign
21 commerce to any place outside this State when such
22 transportation is not prohibited by any applicable Federal
23 law; or the manufacture, distribution, or possession of
24 video gaming terminals, as defined in the Video Gaming Act,
25 by manufacturers, distributors, and terminal operators
26 licensed to do so under the Video Gaming Act.

HB3564- 388 -LRB099 06481 MLM 31222 b
1 (5) The game commonly known as "bingo", when conducted
2 in accordance with the Bingo License and Tax Act.
3 (6) Lotteries when conducted by the State of Illinois
4 in accordance with the Illinois Lottery Law. This exemption
5 includes any activity conducted by the Department of
6 Revenue to sell lottery tickets pursuant to the provisions
7 of the Illinois Lottery Law and its rules.
8 (6.1) The purchase of lottery tickets through the
9 Internet for a lottery conducted by the State of Illinois
10 under the program established in Section 7.12 of the
11 Illinois Lottery Law.
12 (7) Possession of an antique slot machine that is
13 neither used nor intended to be used in the operation or
14 promotion of any unlawful gambling activity or enterprise.
15 For the purpose of this subparagraph (b)(7), an antique
16 slot machine is one manufactured 25 years ago or earlier.
17 (8) Raffles and poker runs when conducted in accordance
18 with the Raffles and Poker Runs Act.
19 (9) Charitable games when conducted in accordance with
20 the Charitable Games Act.
21 (10) Pull tabs and jar games when conducted under the
22 Illinois Pull Tabs and Jar Games Act.
23 (11) Gambling games conducted on riverboats when
24 authorized by the Illinois Riverboat Gambling Act.
25 (12) Video gaming terminal games at a licensed
26 establishment, licensed truck stop establishment, licensed

HB3564- 389 -LRB099 06481 MLM 31222 b
1 fraternal establishment, or licensed veterans
2 establishment when conducted in accordance with the Video
3 Gaming Act.
4 (13) Games of skill or chance where money or other
5 things of value can be won but no payment or purchase is
6 required to participate.
7 (c) Sentence.
8 Gambling is a Class A misdemeanor. A second or subsequent
9conviction under subsections (a)(3) through (a)(12), is a Class
104 felony.
11 (d) Circumstantial evidence.
12 In prosecutions under this Section circumstantial evidence
13shall have the same validity and weight as in any criminal
14prosecution.
15(Source: P.A. 97-1108, eff. 1-1-13; 98-644, eff. 6-10-14.)
16 (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)
17 Sec. 28-1.1. Syndicated gambling.
18 (a) Declaration of Purpose. Recognizing the close
19relationship between professional gambling and other organized
20crime, it is declared to be the policy of the legislature to
21restrain persons from engaging in the business of gambling for
22profit in this State. This Section shall be liberally construed
23and administered with a view to carrying out this policy.
24 (b) A person commits syndicated gambling when he or she
25operates a "policy game" or engages in the business of

HB3564- 390 -LRB099 06481 MLM 31222 b
1bookmaking.
2 (c) A person "operates a policy game" when he or she
3knowingly uses any premises or property for the purpose of
4receiving or knowingly does receive from what is commonly
5called "policy":
6 (1) money from a person other than the bettor or player
7 whose bets or plays are represented by the money; or
8 (2) written "policy game" records, made or used over
9 any period of time, from a person other than the bettor or
10 player whose bets or plays are represented by the written
11 record.
12 (d) A person engages in bookmaking when he or she knowingly
13receives or accepts more than five bets or wagers upon the
14result of any trials or contests of skill, speed or power of
15endurance or upon any lot, chance, casualty, unknown or
16contingent event whatsoever, which bets or wagers shall be of
17such size that the total of the amounts of money paid or
18promised to be paid to the bookmaker on account thereof shall
19exceed $2,000. Bookmaking is the receiving or accepting of bets
20or wagers regardless of the form or manner in which the
21bookmaker records them.
22 (e) Participants in any of the following activities shall
23not be convicted of syndicated gambling:
24 (1) Agreements to compensate for loss caused by the
25 happening of chance including without limitation contracts
26 of indemnity or guaranty and life or health or accident

HB3564- 391 -LRB099 06481 MLM 31222 b
1 insurance;
2 (2) Offers of prizes, award or compensation to the
3 actual contestants in any bona fide contest for the
4 determination of skill, speed, strength or endurance or to
5 the owners of animals or vehicles entered in the contest;
6 (3) Pari-mutuel betting as authorized by law of this
7 State;
8 (4) Manufacture of gambling devices, including the
9 acquisition of essential parts therefor and the assembly
10 thereof, for transportation in interstate or foreign
11 commerce to any place outside this State when the
12 transportation is not prohibited by any applicable Federal
13 law;
14 (5) Raffles and poker runs when conducted in accordance
15 with the Raffles and Poker Runs Act;
16 (6) Gambling games conducted on riverboats, in
17 casinos, or at electronic gaming facilities when
18 authorized by the Illinois Riverboat Gambling Act; and
19 (7) Video gaming terminal games at a licensed
20 establishment, licensed truck stop establishment, licensed
21 fraternal establishment, or licensed veterans
22 establishment when conducted in accordance with the Video
23 Gaming Act.
24 (f) Sentence. Syndicated gambling is a Class 3 felony.
25(Source: P.A. 97-1108, eff. 1-1-13; 98-644, eff. 6-10-14.)

HB3564- 392 -LRB099 06481 MLM 31222 b
1 (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
2 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
3any real estate, vehicle, boat or any other property whatsoever
4used for the purposes of gambling other than gambling conducted
5in the manner authorized by the Illinois Riverboat Gambling Act
6or the Video Gaming Act. Any person who knowingly permits any
7premises or property owned or occupied by him or under his
8control to be used as a gambling place commits a Class A
9misdemeanor. Each subsequent offense is a Class 4 felony. When
10any premises is determined by the circuit court to be a
11gambling place:
12 (a) Such premises is a public nuisance and may be proceeded
13against as such, and
14 (b) All licenses, permits or certificates issued by the
15State of Illinois or any subdivision or public agency thereof
16authorizing the serving of food or liquor on such premises
17shall be void; and no license, permit or certificate so
18cancelled shall be reissued for such premises for a period of
1960 days thereafter; nor shall any person convicted of keeping a
20gambling place be reissued such license for one year from his
21conviction and, after a second conviction of keeping a gambling
22place, any such person shall not be reissued such license, and
23 (c) Such premises of any person who knowingly permits
24thereon a violation of any Section of this Article shall be
25held liable for, and may be sold to pay any unsatisfied
26judgment that may be recovered and any unsatisfied fine that

HB3564- 393 -LRB099 06481 MLM 31222 b
1may be levied under any Section of this Article.
2(Source: P.A. 96-34, eff. 7-13-09.)
3 (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
4 Sec. 28-5. Seizure of gambling devices and gambling funds.
5 (a) Every device designed for gambling which is incapable
6of lawful use or every device used unlawfully for gambling
7shall be considered a "gambling device", and shall be subject
8to seizure, confiscation and destruction by the Department of
9State Police or by any municipal, or other local authority,
10within whose jurisdiction the same may be found. As used in
11this Section, a "gambling device" includes any slot machine,
12and includes any machine or device constructed for the
13reception of money or other thing of value and so constructed
14as to return, or to cause someone to return, on chance to the
15player thereof money, property or a right to receive money or
16property. With the exception of any device designed for
17gambling which is incapable of lawful use, no gambling device
18shall be forfeited or destroyed unless an individual with a
19property interest in said device knows of the unlawful use of
20the device.
21 (b) Every gambling device shall be seized and forfeited to
22the county wherein such seizure occurs. Any money or other
23thing of value integrally related to acts of gambling shall be
24seized and forfeited to the county wherein such seizure occurs.
25 (c) If, within 60 days after any seizure pursuant to

HB3564- 394 -LRB099 06481 MLM 31222 b
1subparagraph (b) of this Section, a person having any property
2interest in the seized property is charged with an offense, the
3court which renders judgment upon such charge shall, within 30
4days after such judgment, conduct a forfeiture hearing to
5determine whether such property was a gambling device at the
6time of seizure. Such hearing shall be commenced by a written
7petition by the State, including material allegations of fact,
8the name and address of every person determined by the State to
9have any property interest in the seized property, a
10representation that written notice of the date, time and place
11of such hearing has been mailed to every such person by
12certified mail at least 10 days before such date, and a request
13for forfeiture. Every such person may appear as a party and
14present evidence at such hearing. The quantum of proof required
15shall be a preponderance of the evidence, and the burden of
16proof shall be on the State. If the court determines that the
17seized property was a gambling device at the time of seizure,
18an order of forfeiture and disposition of the seized property
19shall be entered: a gambling device shall be received by the
20State's Attorney, who shall effect its destruction, except that
21valuable parts thereof may be liquidated and the resultant
22money shall be deposited in the general fund of the county
23wherein such seizure occurred; money and other things of value
24shall be received by the State's Attorney and, upon
25liquidation, shall be deposited in the general fund of the
26county wherein such seizure occurred. However, in the event

HB3564- 395 -LRB099 06481 MLM 31222 b
1that a defendant raises the defense that the seized slot
2machine is an antique slot machine described in subparagraph
3(b) (7) of Section 28-1 of this Code and therefore he is exempt
4from the charge of a gambling activity participant, the seized
5antique slot machine shall not be destroyed or otherwise
6altered until a final determination is made by the Court as to
7whether it is such an antique slot machine. Upon a final
8determination by the Court of this question in favor of the
9defendant, such slot machine shall be immediately returned to
10the defendant. Such order of forfeiture and disposition shall,
11for the purposes of appeal, be a final order and judgment in a
12civil proceeding.
13 (d) If a seizure pursuant to subparagraph (b) of this
14Section is not followed by a charge pursuant to subparagraph
15(c) of this Section, or if the prosecution of such charge is
16permanently terminated or indefinitely discontinued without
17any judgment of conviction or acquittal (1) the State's
18Attorney shall commence an in rem proceeding for the forfeiture
19and destruction of a gambling device, or for the forfeiture and
20deposit in the general fund of the county of any seized money
21or other things of value, or both, in the circuit court and (2)
22any person having any property interest in such seized gambling
23device, money or other thing of value may commence separate
24civil proceedings in the manner provided by law.
25 (e) Any gambling device displayed for sale to a riverboat
26gambling operation, casino gambling operation, or electronic

HB3564- 396 -LRB099 06481 MLM 31222 b
1gaming facility or used to train occupational licensees of a
2riverboat gambling operation, casino gambling operation, or
3electronic gaming facility as authorized under the Illinois
4Riverboat Gambling Act is exempt from seizure under this
5Section.
6 (f) Any gambling equipment, devices, and supplies provided
7by a licensed supplier in accordance with the Illinois
8Riverboat Gambling Act which are removed from a the riverboat,
9casino, or electronic gaming facility for repair are exempt
10from seizure under this Section.
11 (g) The following video gaming terminals are exempt from
12seizure under this Section:
13 (1) Video gaming terminals for sale to a licensed
14 distributor or operator under the Video Gaming Act.
15 (2) Video gaming terminals used to train licensed
16 technicians or licensed terminal handlers.
17 (3) Video gaming terminals that are removed from a
18 licensed establishment, licensed truck stop establishment,
19 licensed fraternal establishment, or licensed veterans
20 establishment for repair.
21(Source: P.A. 98-31, eff. 6-24-13.)
22 (720 ILCS 5/28-7) (from Ch. 38, par. 28-7)
23 Sec. 28-7. Gambling contracts void.
24 (a) All promises, notes, bills, bonds, covenants,
25contracts, agreements, judgments, mortgages, or other

HB3564- 397 -LRB099 06481 MLM 31222 b
1securities or conveyances made, given, granted, drawn, or
2entered into, or executed by any person whatsoever, where the
3whole or any part of the consideration thereof is for any money
4or thing of value, won or obtained in violation of any Section
5of this Article are null and void.
6 (b) Any obligation void under this Section may be set aside
7and vacated by any court of competent jurisdiction, upon a
8complaint filed for that purpose, by the person so granting,
9giving, entering into, or executing the same, or by his
10executors or administrators, or by any creditor, heir, legatee,
11purchaser or other person interested therein; or if a judgment,
12the same may be set aside on motion of any person stated above,
13on due notice thereof given.
14 (c) No assignment of any obligation void under this Section
15may in any manner affect the defense of the person giving,
16granting, drawing, entering into or executing such obligation,
17or the remedies of any person interested therein.
18 (d) This Section shall not prevent a licensed owner or
19licensed manager of a riverboat gambling operation, casino
20gambling operation, or an electronic gaming licensee under the
21Illinois Gambling Act and the Illinois Horse Racing Act of 1975
22from instituting a cause of action to collect any amount due
23and owing under an extension of credit to a riverboat gambling
24patron as authorized under Section 11.1 of the Illinois
25Riverboat Gambling Act.
26(Source: P.A. 87-826.)

HB3564- 398 -LRB099 06481 MLM 31222 b
1 Section 82. The Eminent Domain Act is amended by changing
2Section 15-5-25 as follows:
3 (735 ILCS 30/15-5-25)
4 Sec. 15-5-25. Eminent domain powers in ILCS Chapters 205
5through 430. The following provisions of law may include
6express grants of the power to acquire property by condemnation
7or eminent domain:
8(220 ILCS 5/8-509); Public Utilities Act; public utilities; for
9 construction of certain improvements.
10(220 ILCS 15/1); Gas Storage Act; corporations engaged in the
11 distribution, transportation, or storage of natural gas or
12 manufactured gas; for their operations.
13(220 ILCS 15/2 and 15/6); Gas Storage Act; corporations engaged
14 in the distribution, transportation, or storage of natural
15 gas or manufactured gas; for use of an underground
16 geological formation for gas storage.
17(220 ILCS 30/13); Electric Supplier Act; electric
18 cooperatives; for general purposes.
19(220 ILCS 55/3); Telegraph Act; telegraph companies; for
20 telegraph lines.
21(220 ILCS 65/4); Telephone Company Act; telecommunications
22 carriers; for telephone company purposes.
23(225 ILCS 435/23); Ferries Act; ferry operators; for a landing,

HB3564- 399 -LRB099 06481 MLM 31222 b
1 ferryhouse, or approach.
2(225 ILCS 440/9); Highway Advertising Control Act of 1971;
3 Department of Transportation; for removal of signs
4 adjacent to highways.
5 (230 ILCS 10/7.3a); Illinois Gambling Act; City of Chicago; for
6 construction of gambling facilities.
7(310 ILCS 5/6 and 5/38); State Housing Act; housing
8 corporations; for general purposes.
9(310 ILCS 10/8.3); Housing Authorities Act; housing
10 authorities; for general purposes.
11(310 ILCS 10/8.15); Housing Authorities Act; housing
12 authorities; for implementation of conservation plans and
13 demolition.
14(310 ILCS 10/9); Housing Authorities Act; housing authorities;
15 for general purposes.
16(310 ILCS 20/5); Housing Development and Construction Act;
17 housing authorities; for development or redevelopment.
18(310 ILCS 35/2); House Relocation Act; political subdivisions
19 and municipal corporations; for relocation of dwellings
20 for highway construction.
21(315 ILCS 5/14); Blighted Areas Redevelopment Act of 1947; land
22 clearance commissions; for redevelopment projects.
23(315 ILCS 10/5); Blighted Vacant Areas Development Act of 1949;
24 State of Illinois; for housing development.
25(315 ILCS 20/9 and 20/42); Neighborhood Redevelopment
26 Corporation Law; neighborhood redevelopment corporations;

HB3564- 400 -LRB099 06481 MLM 31222 b
1 for general purposes.
2(315 ILCS 25/4 and 25/6); Urban Community Conservation Act;
3 municipal conservation boards; for conservation areas.
4(315 ILCS 30/12); Urban Renewal Consolidation Act of 1961;
5 municipal departments of urban renewal; for blighted area
6 redevelopment projects.
7(315 ILCS 30/20 and 30/22); Urban Renewal Consolidation Act of
8 1961; municipal departments of urban renewal; for
9 implementing conservation areas.
10(315 ILCS 30/24); Urban Renewal Consolidation Act of 1961;
11 municipal departments of urban renewal; for general
12 purposes.
13(415 ILCS 95/6); Junkyard Act; Department of Transportation;
14 for junkyards or scrap processing facilities.
15(420 ILCS 35/1); Radioactive Waste Storage Act; Illinois
16 Emergency Management Agency; for radioactive by-product
17 and waste storage.
18(Source: P.A. 94-1055, eff. 1-1-07.)
19 Section 85. The Payday Loan Reform Act is amended by
20changing Section 3-5 as follows:
21 (815 ILCS 122/3-5)
22 Sec. 3-5. Licensure.
23 (a) A license to make a payday loan shall state the
24address, including city and state, at which the business is to

HB3564- 401 -LRB099 06481 MLM 31222 b
1be conducted and shall state fully the name of the licensee.
2The license shall be conspicuously posted in the place of
3business of the licensee and shall not be transferable or
4assignable.
5 (b) An application for a license shall be in writing and in
6a form prescribed by the Secretary. The Secretary may not issue
7a payday loan license unless and until the following findings
8are made:
9 (1) that the financial responsibility, experience,
10 character, and general fitness of the applicant are such as
11 to command the confidence of the public and to warrant the
12 belief that the business will be operated lawfully and
13 fairly and within the provisions and purposes of this Act;
14 and
15 (2) that the applicant has submitted such other
16 information as the Secretary may deem necessary.
17 (c) A license shall be issued for no longer than one year,
18and no renewal of a license may be provided if a licensee has
19substantially violated this Act and has not cured the violation
20to the satisfaction of the Department.
21 (d) A licensee shall appoint, in writing, the Secretary as
22attorney-in-fact upon whom all lawful process against the
23licensee may be served with the same legal force and validity
24as if served on the licensee. A copy of the written
25appointment, duly certified, shall be filed in the office of
26the Secretary, and a copy thereof certified by the Secretary

HB3564- 402 -LRB099 06481 MLM 31222 b
1shall be sufficient evidence to subject a licensee to
2jurisdiction in a court of law. This appointment shall remain
3in effect while any liability remains outstanding in this State
4against the licensee. When summons is served upon the Secretary
5as attorney-in-fact for a licensee, the Secretary shall
6immediately notify the licensee by registered mail, enclosing
7the summons and specifying the hour and day of service.
8 (e) A licensee must pay an annual fee of $1,000. In
9addition to the license fee, the reasonable expense of any
10examination or hearing by the Secretary under any provisions of
11this Act shall be borne by the licensee. If a licensee fails to
12renew its license by December 31, its license shall
13automatically expire; however, the Secretary, in his or her
14discretion, may reinstate an expired license upon:
15 (1) payment of the annual fee within 30 days of the
16 date of expiration; and
17 (2) proof of good cause for failure to renew.
18 (f) Not more than one place of business shall be maintained
19under the same license, but the Secretary may issue more than
20one license to the same licensee upon compliance with all the
21provisions of this Act governing issuance of a single license.
22The location, except those locations already in existence as of
23June 1, 2005, may not be within one mile of a horse race track
24subject to the Illinois Horse Racing Act of 1975, within one
25mile of a facility at which gambling is conducted under the
26Illinois Riverboat Gambling Act, within one mile of the

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

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

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1 (b) "Advertise" means to make any representation in the
2solicitation of passengers and includes communication with
3other members of the same partnership, corporation, joint
4venture, association, organization, group or other entity.
5 (c) "Passenger" means a person on whose behalf money or
6other consideration has been given or is to be given to
7another, including another member of the same partnership,
8corporation, joint venture, association, organization, group
9or other entity, for travel.
10 (d) "Ticket or voucher" means a writing or combination of
11writings which is itself good and sufficient to obtain
12transportation and other services for which the passenger has
13contracted.
14(Source: P.A. 91-357, eff. 7-29-99.)
15 Section 997. Severability. The provisions of this Act are
16severable under Section 1.31 of the Statute on Statutes.
17 Section 999. Effective date. This Act takes effect
18September 1, 2015.

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1 INDEX
2 Statutes amended in order of appearance
3 5 ILCS 430/5-45
4 5 ILCS 430/20-10
5 20 ILCS 301/5-20
6 20 ILCS 1605/9.1
7 20 ILCS 2505/2505-305was 20 ILCS 2505/39b15.1
8 30 ILCS 105/5.866 new
9 30 ILCS 105/5dfrom Ch. 127, par. 141d
10 30 ILCS 105/6z-45
11 30 ILCS 105/6z-101 new
12 30 ILCS 330/2from Ch. 127, par. 652
13 30 ILCS 330/3from Ch. 127, par. 653
14 35 ILCS 5/201from Ch. 120, par. 2-201
15 70 ILCS 1825/5.1from Ch. 19, par. 255.1
16 205 ILCS 670/12.5
17 230 ILCS 5/1.2
18 230 ILCS 5/3.11from Ch. 8, par. 37-3.11
19 230 ILCS 5/3.12from Ch. 8, par. 37-3.12
20 230 ILCS 5/3.31 new
21 230 ILCS 5/3.32 new
22 230 ILCS 5/3.33 new
23 230 ILCS 5/3.35 new
24 230 ILCS 5/3.36 new
25 230 ILCS 5/6from Ch. 8, par. 37-6

HB3564- 407 -LRB099 06481 MLM 31222 b
1 230 ILCS 5/9from Ch. 8, par. 37-9
2 230 ILCS 5/15from Ch. 8, par. 37-15
3 230 ILCS 5/19from Ch. 8, par. 37-19
4 230 ILCS 5/20from Ch. 8, par. 37-20
5 230 ILCS 5/21from Ch. 8, par. 37-21
6 230 ILCS 5/24from Ch. 8, par. 37-24
7 230 ILCS 5/25from Ch. 8, par. 37-25
8 230 ILCS 5/26from Ch. 8, par. 37-26
9 230 ILCS 5/27from Ch. 8, par. 37-27
10 230 ILCS 5/30from Ch. 8, par. 37-30
11 230 ILCS 5/30.5
12 230 ILCS 5/31from Ch. 8, par. 37-31
13 230 ILCS 5/31.1from Ch. 8, par. 37-31.1
14 230 ILCS 5/32.1
15 230 ILCS 5/34.3 new
16 230 ILCS 5/36from Ch. 8, par. 37-36
17 230 ILCS 5/39.2 new
18 230 ILCS 5/40from Ch. 8, par. 37-40
19 230 ILCS 5/54
20 230 ILCS 5/54.75
21 230 ILCS 5/56 new
22 230 ILCS 10/1from Ch. 120, par. 2401
23 230 ILCS 10/2from Ch. 120, par. 2402
24 230 ILCS 10/3from Ch. 120, par. 2403
25 230 ILCS 10/4from Ch. 120, par. 2404
26 230 ILCS 10/5from Ch. 120, par. 2405

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1 230 ILCS 10/5.1from Ch. 120, par. 2405.1
2 230 ILCS 10/5.3 new
3 230 ILCS 10/6from Ch. 120, par. 2406
4 230 ILCS 10/7from Ch. 120, par. 2407
5 230 ILCS 10/7.3
6 230 ILCS 10/7.3a new
7 230 ILCS 10/7.4
8 230 ILCS 10/7.5
9 230 ILCS 10/7.7 new
10 230 ILCS 10/7.8 new
11 230 ILCS 10/7.9 new
12 230 ILCS 10/7.10 new
13 230 ILCS 10/7.11 new
14 230 ILCS 10/7.12 new
15 230 ILCS 10/8from Ch. 120, par. 2408
16 230 ILCS 10/9from Ch. 120, par. 2409
17 230 ILCS 10/11from Ch. 120, par. 2411
18 230 ILCS 10/11.1from Ch. 120, par. 2411.1
19 230 ILCS 10/12from Ch. 120, par. 2412
20 230 ILCS 10/13from Ch. 120, par. 2413
21 230 ILCS 10/14from Ch. 120, par. 2414
22 230 ILCS 10/15from Ch. 120, par. 2415
23 230 ILCS 10/17.1from Ch. 120, par. 2417.1
24 230 ILCS 10/18from Ch. 120, par. 2418
25 230 ILCS 10/18.1
26 230 ILCS 10/18.2 new

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