100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4002

Introduced , by Rep. Chad Hays

SYNOPSIS AS INTRODUCED:
See Index

Creates the Chicago Casino Development Authority Act. Provides for the creation of the Chicago Casino Development Authority, whose duties include promotion and maintenance of a casino. Amends the Illinois Horse Racing Act of 1975 and the Riverboat Gambling Act to authorize electronic gaming (which includes slot machine gambling and gambling with table games) 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. Indefinitely extends the authorization for advance deposit wagering. Contains provisions concerning testing of horses at county fairs and standardbred horses. Further amends the Riverboat Gambling Act. Changes the short title to the Illinois Gambling Act and changes corresponding references to the Act. Adds additional owners licenses, one of which authorizes the conduct of casino gambling in the City of Chicago. Makes changes in provisions concerning the admission tax and privilege tax. Makes other changes. Contains a severability provision. Effective immediately, but does not take effect at all unless Senate Bills 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, and 13 of the 100th General Assembly become law.
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CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
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
ARTICLE 1.
5 Section 1-1. Short title. This Article may be cited as the
6Chicago Casino Development Authority Act. References in this
7Article to "this Act" mean this Article.
8 Section 1-2. Legislative intent.
9 (a) This Act is intended to benefit the people of the City
10of Chicago and the State of Illinois by assisting economic
11development and promoting tourism and by increasing the amount
12of revenues available to the City and the State to assist and
13support the City's pension obligation in accordance with Public
14Act 99-506.
15 (b) While authorization of casino gambling in Chicago will
16enhance investment, development, and tourism in Illinois, it is
17recognized that it will do so successfully only if public
18confidence and trust in the credibility and integrity of the
19gambling operations and the regulatory process is maintained.
20Therefore, the provisions of this Act are designed to allow the
21Illinois Gaming Board to strictly regulate the facilities,
22persons, associations, and practices related to gambling

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

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1 "Executive director" means the person appointed by the
2Casino Board to oversee the daily operations of the Authority.
3 "Gaming Board" means the Illinois Gaming Board created by
4the Illinois Gambling Act.
5 "Mayor" means the Mayor of the City.
6 Section 1-12. Creation of the Authority. There is hereby
7created a political subdivision, unit of local government with
8only the powers authorized by law, body politic, and municipal
9corporation, by the name and style of the Chicago Casino
10Development Authority.
11 Section 1-13. Duties of the Authority. It shall be the duty
12of the Authority, as an owners licensee under the Illinois
13Gambling Act, to promote and maintain a casino in the City. The
14Authority shall own, acquire, construct, lease, equip, and
15maintain grounds, buildings, and facilities for that purpose.
16However, the Authority shall contract with a casino operator
17licensee to manage and operate the casino and in no event shall
18the Authority or City manage or operate the casino. The
19Authority may contract pursuant to the procedures set forth in
20Section 1-115 with other third parties in order to fulfill its
21purpose. The Authority is responsible for the payment of any
22fees required of a casino operator under subsection (a) of
23Section 7.9 of the Illinois Gambling Act if the casino operator
24licensee is late in paying any such fees. The Authority is

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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1Information Act.
2 Section 1-50. Transfer of funds. The revenues received by
3the Authority (other than amounts required to be paid pursuant
4to the Illinois Gambling Act and amounts required to pay the
5operating expenses of the Authority, to pay amounts due the
6casino operator licensee pursuant to a casino management
7contract, to repay any borrowing of the Authority made pursuant
8to Section 1-31, to pay debt service on any bonds issued under
9Section 1-75, and to pay any expenses in connection with the
10issuance of such bonds pursuant to Section 1-75 or derivative
11products pursuant to Section 1-85) shall be transferred to the
12City by the Authority. Moneys transferred to the City pursuant
13to this Section shall be expended or obligated by the City for
14pension payments in accordance with Public Act 99-506.
15 Section 1-60. Auditor General.
16 (a) Prior to the issuance of bonds under this Act, the
17Authority shall submit to the Auditor General a certification
18that:
19 (1) it is legally authorized to issue bonds;
20 (2) scheduled annual payments of principal and
21 interest on the bonds to be issued meet the requirements of
22 Section 1-75 of this Act;
23 (3) no bond shall mature later than 30 years; and
24 (4) after payment of costs of issuance and necessary

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

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

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1General Assembly. The Advisory Committee shall meet
2periodically and shall report the information to the Mayor of
3the City and to the General Assembly by December 31st of every
4year.
5 The Advisory Committee shall be dissolved on the date that
6casino gambling operations are first conducted at a permanent
7facility under the license authorized under Section 7 of the
8Illinois Gambling Act. For the purposes of this Section, the
9terms "female" and "minority person" have the meanings provided
10in Section 2 of the Business Enterprise for Minorities,
11Females, and Persons with Disabilities Act.
12 Section 1-65. Acquisition of property; eminent domain
13proceedings. For the lawful purposes of this Act, the City may
14acquire, by eminent domain or by condemnation proceedings in
15the manner provided by the Eminent Domain Act, real or personal
16property or interests in real or personal property located in
17the City, and the City may convey to the Authority property so
18acquired. The acquisition of property under this Section is
19declared to be for a public use.
20 Section 1-70. Local regulation. In addition to this Act,
21the Illinois Gambling Act, and all of the rules of the Gaming
22Board, the casino facilities and operations therein shall be
23subject to all ordinances and regulations of the City. The
24construction, development, and operation of the casino shall

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1comply with all ordinances, regulations, rules, and controls of
2the City, including, but not limited to, those relating to
3zoning and planned development, building, fire prevention, and
4land use. However, the regulation of gaming operations is
5subject to the exclusive jurisdiction of the Gaming Board. The
6Gaming Board shall be responsible for the investigation for and
7issuance of all licenses required by this Act and the Illinois
8Gambling Act.
9 Section 1-75. Borrowing.
10 (a) The Authority may borrow money and issue bonds as
11provided in this Section. Bonds of the Authority may be issued
12to provide funds for land acquisition, site assembly and
13preparation, and the design and construction of the casino, as
14defined in the Illinois Gambling Act, all ancillary and related
15facilities comprising the casino complex, and all on-site and
16off-site infrastructure improvements required in connection
17with the development of the casino; to refund (at the time or
18in advance of any maturity or redemption) or redeem any bonds
19of the Authority; to provide or increase a debt service reserve
20fund or other reserves with respect to any or all of its bonds;
21or to pay the legal, financial, administrative, bond insurance,
22credit enhancement, and other legal expenses of the
23authorization, issuance, or delivery of bonds. In this Act, the
24term "bonds" also includes notes of any kind, interim
25certificates, refunding bonds, or any other evidence of

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1obligation for borrowed money issued under this Section. Bonds
2may be issued in one or more series and may be payable and
3secured either on a parity with or separately from other bonds.
4 (b) The bonds of the Authority shall be payable from one or
5more of the following sources: (i) the property or revenues of
6the Authority; (ii) revenues derived from the casino; (iii)
7revenues derived from any casino operator licensee; (iv) fees,
8bid proceeds, charges, lease payments, payments required
9pursuant to any casino management contract or other revenues
10payable to the Authority, or any receipts of the Authority; (v)
11payments by financial institutions, insurance companies, or
12others pursuant to letters or lines of credit, policies of
13insurance, or purchase agreements; (vi) investment earnings
14from funds or accounts maintained pursuant to a bond resolution
15or trust indenture; (vii) proceeds of refunding bonds; (viii)
16any other revenues derived from or payments by the City; and
17(ix) any payments by any casino operator licensee or others
18pursuant to any guaranty agreement.
19 (c) Bonds shall be authorized by a resolution of the
20Authority and may be secured by a trust indenture by and
21between the Authority and a corporate trustee or trustees,
22which may be any trust company or bank having the powers of a
23trust company within or without the State. Bonds shall meet the
24following requirements:
25 (1) Bonds may bear interest payable at any time or
26 times and at any rate or rates, notwithstanding any other

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1 provision of law to the contrary, and may be subject to
2 such other terms and conditions as may be provided by the
3 resolution or indenture authorizing the issuance of such
4 bonds.
5 (2) Bonds issued pursuant to this Section may be
6 payable on such dates and times as may be provided for by
7 the resolution or indenture authorizing the issuance of
8 such bonds; provided, however, that such bonds shall mature
9 no later than 30 years from the date of issuance.
10 (3) Bonds issued pursuant to this Section may be sold
11 pursuant to notice of sale and public bid or by negotiated
12 sale.
13 (4) Bonds shall be payable at a time or times, in the
14 denominations and form, including book entry form, either
15 coupon, registered, or both, and carry the registration and
16 privileges as to exchange, transfer or conversion, and
17 replacement of mutilated, lost, or destroyed bonds as the
18 resolution or trust indenture may provide.
19 (5) Bonds shall be payable in lawful money of the
20 United States at a designated place.
21 (6) Bonds shall be subject to the terms of purchase,
22 payment, redemption, refunding, or refinancing that the
23 resolution or trust indenture provides.
24 (7) Bonds shall be executed by the manual or facsimile
25 signatures of the officers of the Authority designated by
26 the Board, which signatures shall be valid at delivery even

HB4002- 31 -LRB100 11337 MJP 21715 b
1 for one who has ceased to hold office.
2 (8) Bonds shall be sold at public or private sale in
3 the manner and upon the terms determined by the Authority.
4 (9) Bonds shall be issued in accordance with the
5 provisions of the Local Government Debt Reform Act.
6 (d) The Authority shall adopt a procurement program with
7respect to contracts relating to underwriters, bond counsel,
8financial advisors, and accountants. The program shall include
9goals for the payment of not less than 30% of the total dollar
10value of the fees from these contracts to minority-owned
11businesses and female-owned businesses as defined in the
12Business Enterprise for Minorities, Females, and Persons with
13Disabilities Act. The Authority shall conduct outreach to
14minority-owned businesses and female-owned businesses.
15Outreach shall include, but is not limited to, advertisements
16in periodicals and newspapers, mailings, and other appropriate
17media. The Authority shall submit to the General Assembly a
18comprehensive report that shall include, at a minimum, the
19details of the procurement plan, outreach efforts, and the
20results of the efforts to achieve goals for the payment of
21fees.
22 (e) Subject to the Illinois Gambling Act and rules of the
23Gaming Board regarding pledging of interests in holders of
24owners licenses, any resolution or trust indenture may contain
25provisions that may be a part of the contract with the holders
26of the bonds as to the following:

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1 (1) Pledging, assigning, or directing the use,
2 investment, or disposition of revenues of the Authority or
3 proceeds or benefits of any contract, including without
4 limitation any rights in any casino management contract.
5 (2) The setting aside of loan funding deposits, debt
6 service reserves, replacement or operating reserves, cost
7 of issuance accounts and sinking funds, and the regulation,
8 investment, and disposition thereof.
9 (3) Limitations on the purposes to which or the
10 investments in which the proceeds of sale of any issue of
11 bonds or the Authority's revenues and receipts may be
12 applied or made.
13 (4) Limitations on the issue of additional bonds, the
14 terms upon which additional bonds may be issued and
15 secured, the terms upon which additional bonds may rank on
16 a parity with, or be subordinate or superior to, other
17 bonds.
18 (5) The refunding, advance refunding, or refinancing
19 of outstanding bonds.
20 (6) The procedure, if any, by which the terms of any
21 contract with bondholders may be altered or amended and the
22 amount of bonds and holders of which must consent thereto
23 and the manner in which consent shall be given.
24 (7) Defining the acts or omissions that shall
25 constitute a default in the duties of the Authority to
26 holders of bonds and providing the rights or remedies of

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1 such holders in the event of a default, which may include
2 provisions restricting individual rights of action by
3 bondholders.
4 (8) Providing for guarantees, pledges of property,
5 letters of credit, or other security, or insurance for the
6 benefit of bondholders.
7 (f) No member of the Casino Board, nor any person executing
8the bonds, shall be liable personally on the bonds or subject
9to any personal liability by reason of the issuance of the
10bonds.
11 (g) The Authority may issue and secure bonds in accordance
12with the provisions of the Local Government Credit Enhancement
13Act.
14 (h) A pledge by the Authority of revenues and receipts as
15security for an issue of bonds or for the performance of its
16obligations under any casino management contract shall be valid
17and binding from the time when the pledge is made. The revenues
18and receipts pledged shall immediately be subject to the lien
19of the pledge without any physical delivery or further act, and
20the lien of any pledge shall be valid and binding against any
21person having any claim of any kind in tort, contract, or
22otherwise against the Authority, irrespective of whether the
23person has notice. No resolution, trust indenture, management
24agreement or financing statement, continuation statement, or
25other instrument adopted or entered into by the Authority need
26be filed or recorded in any public record other than the

HB4002- 34 -LRB100 11337 MJP 21715 b
1records of the Authority in order to perfect the lien against
2third persons, regardless of any contrary provision of law.
3 (i) Bonds that are being paid or retired by issuance, sale,
4or delivery of bonds, and bonds for which sufficient funds have
5been deposited with the paying agent or trustee to provide for
6payment of principal and interest thereon, and any redemption
7premium, as provided in the authorizing resolution, shall not
8be considered outstanding for the purposes of this subsection.
9 (j) The bonds of the Authority shall not be indebtedness of
10the State. The bonds of the Authority are not general
11obligations of the State and are not secured by a pledge of the
12full faith and credit of the State and the holders of bonds of
13the Authority may not require the application of State revenues
14or funds to the payment of bonds of the Authority. The
15foregoing non-recourse language must be printed in bold-face
16type on the face of the bonds and in the preliminary and final
17official statements on the bonds.
18 (k) The State of Illinois pledges and agrees with the
19owners of the bonds that it will not limit or alter the rights
20and powers vested in the Authority by this Act so as to impair
21the terms of any contract made by the Authority with the owners
22or in any way impair the rights and remedies of the owners
23until the bonds, together with interest on them, and all costs
24and expenses in connection with any action or proceedings by or
25on behalf of the owners, are fully met and discharged. The
26Authority is authorized to include this pledge and agreement in

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1any contract with the owners of bonds issued under this
2Section.
3 (l) No person holding an elective office in the City, in
4Cook County, or in this State, holding a seat in the General
5Assembly, or serving as a board member, trustee, officer, or
6employee of the Authority, including the spouse of that person,
7may receive a legal, banking, consulting, or other fee related
8to the issuance of bonds. This prohibition shall also apply to
9a company or firm that employs a person holding an elective
10office in the City, in Cook County, or in this State, holding a
11seat in the General Assembly, or serving as a board member,
12trustee, officer, or employee of the Authority, including the
13spouse of that person, if the person or his or her spouse has
14greater than 7.5% ownership of the company or firm.
15 Section 1-85. Derivative products. With respect to all or
16part of any issue of its bonds, the Authority may enter into
17agreements or contracts with any necessary or appropriate
18person, which will have the benefit of providing to the
19Authority an interest rate basis, cash flow basis, or other
20basis different from that provided in the bonds for the payment
21of interest. Such agreements or contracts may include, without
22limitation, agreements or contracts commonly known as
23"interest rate swap agreements", "forward payment conversion
24agreements", "futures", "options", "puts", or "calls" and
25agreements or contracts providing for payments based on levels

HB4002- 36 -LRB100 11337 MJP 21715 b
1of or changes in interest rates, agreements or contracts to
2exchange cash flows or a series of payments, or to hedge
3payment, rate spread, or similar exposure. Any such agreement
4or contract shall be solely an obligation or indebtedness of
5the Authority and shall not be an obligation or indebtedness of
6the State, nor shall any party thereto have any recourse
7against the State in connection with the agreement or contract.
8 Section 1-90. Legality for investment. The State of
9Illinois, all governmental entities, all public officers,
10banks, bankers, trust companies, savings banks and
11institutions, building and loan associations, savings and loan
12associations, investment companies, and other persons carrying
13on a banking business, insurance companies, insurance
14associations, and other persons carrying on an insurance
15business, and all executors, administrators, guardians,
16trustees, and other fiduciaries may legally invest any sinking
17funds, moneys, or other funds belonging to them or within their
18control in any bonds issued under this Act. However, nothing in
19this Section shall be construed as relieving any person or
20entity from any duty of exercising reasonable care in selecting
21securities for purchase or investment.
22 Section 1-105. Budgets and reporting.
23 (a) The Casino Board shall annually adopt a budget for each
24fiscal year. The budget may be modified from time to time in

HB4002- 37 -LRB100 11337 MJP 21715 b
1the same manner and upon the same vote as it may be adopted.
2The budget shall include the Authority's available funds and
3estimated revenues and shall provide for payment of its
4obligations and estimated expenditures for the fiscal year,
5including, without limitation, expenditures for
6administration, operation, maintenance and repairs, debt
7service, and deposits into reserve and other funds and capital
8projects.
9 (b) The Casino Board shall annually cause the finances of
10the Authority to be audited by a firm of certified public
11accountants selected by the Casino Board in accordance with the
12rules of the Gaming Board and post on the Authority's Internet
13website such financial information as is required to be posted
14by all other owners licensees under the Illinois Gambling Act.
15 (c) The Casino Board shall, for each fiscal year, prepare
16an annual report setting forth information concerning its
17activities in the fiscal year and the status of the development
18of the casino. The annual report shall include financial
19information of the Authority consistent with that which is
20required for all other owners licensees under the Illinois
21Gambling Act, the budget for the succeeding fiscal year, and
22the current capital plan as of the date of the report. Copies
23of the annual report shall be made available to persons who
24request them and shall be submitted not later than 120 days
25after the end of the Authority's fiscal year or, if the audit
26of the Authority's financial statements is not completed within

HB4002- 38 -LRB100 11337 MJP 21715 b
1120 days after the end of the Authority's fiscal year, as soon
2as practical after completion of the audit, to the Governor,
3the Mayor, the General Assembly, and the Commission on
4Government Forecasting and Accountability.
5 Section 1-110. Deposit and withdrawal of funds.
6 (a) All funds deposited by the Authority in any bank or
7savings and loan association shall be placed in the name of the
8Authority and shall be withdrawn or paid out only by check or
9draft upon the bank or savings and loan association, signed by
102 officers or employees designated by the Casino Board.
11Notwithstanding any other provision of this Section, the Casino
12Board may designate any of its members or any officer or
13employee of the Authority to authorize the wire transfer of
14funds deposited by the secretary-treasurer of funds in a bank
15or savings and loan association for the payment of payroll and
16employee benefits-related expenses.
17 No bank or savings and loan association shall receive
18public funds as permitted by this Section unless it has
19complied with the requirements established pursuant to Section
206 of the Public Funds Investment Act.
21 (b) If any officer or employee whose signature appears upon
22any check or draft issued pursuant to this Act ceases (after
23attaching his signature) to hold his or her office before the
24delivery of such a check or draft to the payee, his or her
25signature shall nevertheless be valid and sufficient for all

HB4002- 39 -LRB100 11337 MJP 21715 b
1purposes with the same effect as if he or she had remained in
2office until delivery thereof.
3 Section 1-112. Contracts with the Authority or casino
4operator licensee; disclosure requirements.
5 (a) A bidder, respondent, offeror, or contractor for
6contracts with the Authority or casino operator licensee shall
7disclose the identity of all officers and directors and every
8owner, beneficiary, or person with beneficial interest of more
9than 1% or shareholder entitled to receive more than 1% of the
10total distributable income of any corporation having any
11interest in the contract or in the bidder, respondent, offeror,
12or contractor. The disclosure shall be in writing and attested
13to by an owner, trustee, corporate official, or agent. If stock
14in a corporation is publicly traded and there is no readily
15known individual having greater than a 1% interest, then a
16statement to that effect attested to by an officer or agent of
17the corporation shall fulfill the disclosure statement
18requirement of this Section. A bidder, respondent, offeror, or
19contractor shall notify the Authority of any changes in
20officers, directors, ownership, or individuals having a
21beneficial interest of more than 1%. Notwithstanding the
22provisions of this subsection (a), the Gaming Board may adopt
23rules in connection with contractors for contracts with the
24Authority or the casino operator licensee.
25 (b) A bidder, respondent, offeror, or contractor for

HB4002- 40 -LRB100 11337 MJP 21715 b
1contracts with an annual value of $25,000 or more or for a
2period to exceed one year shall disclose all political
3contributions of the bidder, respondent, offeror, or
4contractor and any affiliated person or entity. Disclosure
5shall include at least the names and addresses of the
6contributors and the dollar amounts of any contributions to any
7political committee made within the previous 2 years. The
8disclosure must be submitted to the Gaming Board with a copy of
9the contract. All such disclosures shall be posted on the
10websites of the Authority and the Gaming Board.
11 (c) As used in this Section:
12 "Contribution" means contribution as defined in Section
139-1.4 of the Election Code.
14 "Affiliated person" means (i) any person with any ownership
15interest or distributive share of the bidding, responding, or
16contracting entity in excess of 1%, (ii) executive employees of
17the bidding, responding, or contracting entity, and (iii) the
18spouse, minor children, and parents of any such persons.
19 "Affiliated entity" means (i) any parent or subsidiary of
20the bidding or contracting entity, (ii) any member of the same
21unitary business group, or (iii) any political committee for
22which the bidding, responding, or contracting entity is the
23sponsoring entity.
24 (d) The Gaming Board may direct the Authority or a casino
25operator licensee to void a contract if a violation of this
26Section occurs. The Authority may direct a casino operator

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1licensee to void a contract if a violation of this Section
2occurs.
3 (e) All contracts pertaining to the actual operation of the
4casino and related gaming activities shall be entered into by
5the casino operator licensee and not the Authority and shall be
6subject to the regulation, oversight, and approval of the
7Gaming Board, applying the same regulation, oversight, and
8approval requirements as would be applied to any other owners
9licensee under the Illinois Gambling Act.
10 Section 1-115. Purchasing.
11 (a) The Casino Board shall designate an officer of the
12Authority to serve as the Chief Procurement Officer for the
13Authority. The Chief Procurement Officer shall have all powers
14and duties set forth in Section 15 of Division 10 of Article 8
15of the Illinois Municipal Code. Except as otherwise provided in
16this Section, the Chief Procurement Officer of the Authority
17shall conduct procurements on behalf of the Authority subject
18to Title 2, Chapter 92 of the Municipal Code of Chicago, which
19by its terms incorporates Division 10 of Article 8 of the
20Illinois Municipal Code.
21 (b) All contracts for amounts greater than $25,000 must be
22approved by the Casino Board and executed by the chairperson of
23the Casino Board and executive director of the Authority.
24Contracts for amounts of $25,000 or less may be approved and
25executed by the Chief Procurement Officer for the Authority and

HB4002- 42 -LRB100 11337 MJP 21715 b
1executive director of the Authority, with approval by the chief
2legal counsel for the Authority as to form and legality.
3 (c) All construction contracts and contracts for supplies,
4materials, equipment, and services for amounts greater than
5$25,000 shall be let by a competitive selection process to the
6lowest responsible proposer, after advertising for proposals,
7except for the following:
8 (1) when repair parts, accessories, equipment, or
9 services are required for equipment or services previously
10 furnished or contracted for;
11 (2) when services such as water, light, heat, power,
12 telephone (other than long-distance service), or telegraph
13 are required;
14 (3) casino management contracts, which shall be
15 awarded as set forth in Section 1-45 of this Act;
16 (4) contracts where there is only one economically
17 feasible source;
18 (5) when a purchase is needed on an immediate,
19 emergency basis because there exists a threat to public
20 health or public safety, or when immediate expenditure is
21 necessary for repairs to Authority property in order to
22 protect against further loss of or damage to Authority
23 property, to prevent or minimize serious disruption in
24 Authority services or to ensure the integrity of Authority
25 records;
26 (6) contracts for professional services other than for

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1 management of the casino, except such contracts described
2 in subsection (d) of this Section; and
3 (7) contracts for the use, purchase, delivery,
4 movement, or installation of (i) data processing
5 equipment, software, and services and (ii)
6 telecommunications equipment, software, and services.
7 (d) Contracts for professional services for a term of more
8than one year or contracts that may require payment in excess
9of $25,000 in one year shall be let by a competitive bidding
10process to the most highly qualified firm that agrees to
11compensation and other terms of engagement that are both
12reasonable and acceptable to the Casino Board.
13 (e) All contracts involving less than $25,000 shall be let
14by competitive selection process whenever possible, and in any
15event in a manner calculated to ensure the best interests of
16the public.
17 (f) In determining the responsibility of any proposer, the
18Authority may take into account the proposer's (or an
19individual having a beneficial interest, directly or
20indirectly, of more than 1% in such proposing entity) past
21record of dealings with the Authority, the proposer's
22experience, adequacy of equipment, and ability to complete
23performance within the time set, and other factors besides
24financial responsibility. No such contract shall be awarded to
25any proposer other than the lowest proposer (in case of
26purchase or expenditure) unless authorized or approved by a

HB4002- 44 -LRB100 11337 MJP 21715 b
1vote of at least 3 members of the Casino Board and such action
2is accompanied by a written statement setting forth the reasons
3for not awarding the contract to the highest or lowest
4proposer, as the case may be. The statement shall be kept on
5file in the principal office of the Authority and open to
6public inspection.
7 (g) The Authority shall have the right to reject all
8proposals and to re-advertise for proposals. If after any such
9re-advertisement, no responsible and satisfactory proposals,
10within the terms of the re-advertisement, is received, the
11Authority may award such contract without competitive
12selection. The contract must not be less advantageous to the
13Authority than any valid proposal received pursuant to
14advertisement.
15 (h) Advertisements for proposals and re-proposals shall be
16published at least once in a daily newspaper of general
17circulation published in the City at least 10 calendar days
18before the time for receiving proposals and in an online
19bulletin published on the Authority's website. Such
20advertisements shall state the time and place for receiving and
21opening of proposals and, by reference to plans and
22specifications on file at the time of the first publication or
23in the advertisement itself, shall describe the character of
24the proposed contract in sufficient detail to fully advise
25prospective proposers of their obligations and to ensure free
26and open competitive selection.

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1 (i) All proposals in response to advertisements shall be
2sealed and shall be publicly opened by the Authority. All
3proposers shall be entitled to be present in person or by
4representatives. Cash or a certified or satisfactory cashier's
5check, as a deposit of good faith, in a reasonable amount to be
6fixed by the Authority before advertising for proposals, shall
7be required with the proposal. A bond for faithful performance
8of the contract with surety or sureties satisfactory to the
9Authority and adequate insurance may be required in reasonable
10amounts to be fixed by the Authority before advertising for
11proposals.
12 (j) The contract shall be awarded as promptly as possible
13after the opening of proposals. The proposal of the successful
14proposer, as well as the bids of the unsuccessful proposers,
15shall be placed on file and be open to public inspection
16subject to the exemptions from disclosure provided under
17Section 7 of the Freedom of Information Act. All proposals
18shall be void if any disclosure of the terms of any proposals
19in response to an advertisement is made or permitted to be made
20by the Authority before the time fixed for opening proposals.
21 (k) Notice of each and every contract that is offered,
22including renegotiated contracts and change orders, shall be
23published in an online bulletin. The online bulletin must
24include at least the date first offered, the date submission of
25offers is due, the location that offers are to be submitted to,
26a brief purchase description, the method of source selection,

HB4002- 46 -LRB100 11337 MJP 21715 b
1information of how to obtain a comprehensive purchase
2description and any disclosure and contract forms, and
3encouragement to prospective vendors to hire qualified
4veterans, as defined by Section 45-67 of the Illinois
5Procurement Code, and Illinois residents discharged from any
6Illinois adult correctional center subject to Gaming Board
7licensing and eligibility rules. Notice of each and every
8contract that is let or awarded, including renegotiated
9contracts and change orders, shall be published in the online
10bulletin and must include at least all of the information
11specified in this subsection (k), as well as the name of the
12successful responsible proposer or offeror, the contract
13price, and the number of unsuccessful responsive proposers and
14any other disclosure specified in this Section. This notice
15must be posted in the online electronic bulletin prior to
16execution of the contract.
17 Section 1-130. Affirmative action and equal opportunity
18obligations of Authority.
19 (a) The Authority is subject to the requirements of Article
20IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720
21inclusive) of the Chicago Municipal Code, as now or hereafter
22amended, renumbered, or succeeded, concerning a Minority-Owned
23and Women-Owned Business Enterprise Procurement Program for
24construction contracts, and Section 2-92-420 et seq. of the
25Chicago Municipal Code, as now or hereafter amended,

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1renumbered, or succeeded, concerning a Minority-Owned and
2Women-Owned Business Enterprise Procurement Program.
3 (b) The Authority is authorized to enter into agreements
4with contractors' associations, labor unions, and the
5contractors working on the development of the casino to
6establish an apprenticeship preparedness training program to
7provide for an increase in the number of minority and female
8journeymen and apprentices in the building trades and to enter
9into agreements with community college districts or other
10public or private institutions to provide readiness training.
11The Authority is further authorized to enter into contracts
12with public and private educational institutions and persons in
13the gaming, entertainment, hospitality, and tourism industries
14to provide training for employment in those industries.
15 Section 1-135. Transfer of interest. Neither the Authority
16nor the City may sell, lease, rent, transfer, exchange, or
17otherwise convey any interest that they have in the casino
18without prior approval of the General Assembly.
19 Section 1-140. Home rule. The regulation and licensing of
20casinos and casino gaming, casino gaming facilities, and casino
21operator licensees under this Act are exclusive powers and
22functions of the State. A home rule unit may not regulate or
23license casinos, casino gaming, casino gaming facilities, or
24casino operator licensees under this Act, except as provided

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1under this Act. This Section is a denial and limitation of home
2rule powers and functions under subsection (h) of Section 6 of
3Article VII of the Illinois Constitution.
4
ARTICLE 90.
5 Section 90-1. Findings. The General Assembly makes all of
6the following findings:
7 (1) That the cumulative reduction to pre-K through 12
8 education funding since 2009 is approximately
9 $861,000,000.
10 (2) That general state aid to Illinois common schools
11 has been underfunded as a result of budget cuts, resulting
12 in pro-rated payments to school districts that are less
13 than the foundational level of $6,119 per pupil, which
14 represents the minimum each pupil 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 100th 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

HB4002- 49 -LRB100 11337 MJP 21715 b
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 the 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 90-3. The State Officials and Employees Ethics Act
2is amended by changing Sections 5-45 and 20-10 as follows:
3 (5 ILCS 430/5-45)
4 Sec. 5-45. Procurement; revolving door prohibition.
5 (a) No former officer, member, or State employee, or spouse
6or immediate family member living with such person, shall,
7within a period of one year immediately after termination of
8State employment, knowingly accept employment or receive
9compensation or fees for services from a person or entity if
10the officer, member, or State employee, during the year
11immediately preceding termination of State employment,
12participated personally and substantially in the award of State
13contracts, or the issuance of State contract change orders,
14with a cumulative value of $25,000 or more to the person or
15entity, or its parent or subsidiary.
16 (b) No former officer of the executive branch or State
17employee of the executive branch with regulatory or licensing
18authority, or spouse or immediate family member living with
19such person, shall, within a period of one year immediately
20after termination of State employment, knowingly accept
21employment or receive compensation or fees for services from a
22person or entity if the officer or State employee, during the
23year immediately preceding termination of State employment,
24participated personally and substantially in making a
25regulatory or licensing decision that directly applied to the

HB4002- 51 -LRB100 11337 MJP 21715 b
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

HB4002- 52 -LRB100 11337 MJP 21715 b
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

HB4002- 53 -LRB100 11337 MJP 21715 b
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

HB4002- 54 -LRB100 11337 MJP 21715 b
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;

HB4002- 55 -LRB100 11337 MJP 21715 b
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

HB4002- 56 -LRB100 11337 MJP 21715 b
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,

HB4002- 57 -LRB100 11337 MJP 21715 b
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

HB4002- 58 -LRB100 11337 MJP 21715 b
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

HB4002- 59 -LRB100 11337 MJP 21715 b
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

HB4002- 60 -LRB100 11337 MJP 21715 b
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:

HB4002- 61 -LRB100 11337 MJP 21715 b
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 90-5. 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

HB4002- 62 -LRB100 11337 MJP 21715 b
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.)

HB4002- 63 -LRB100 11337 MJP 21715 b
1 Section 90-6. The Department of Commerce and Economic
2Opportunity Law of the Civil Administrative Code of Illinois is
3amended by adding Sections 605-530 and 605-535 as follows:
4 (20 ILCS 605/605-530 new)
5 Sec. 605-530. The Depressed Communities Economic
6Development Board.
7 (a) The Depressed Communities Economic Development Board
8is created as an advisory board within the Department of
9Commerce and Economic Opportunity. The Board shall consist of
10the following members:
11 (1) 3 members appointed by the Governor, one of whom
12 shall be appointed to serve an initial term of one year and
13 2 of whom shall be appointed to serve an initial term of 2
14 years;
15 (2) 2 members appointed by the Speaker of the House of
16 Representatives, one of whom shall be appointed to serve an
17 initial term of one year and one of whom shall be appointed
18 to serve an initial term of 2 years;
19 (3) 2 members appointed by the President of the Senate,
20 one of whom shall be appointed to serve an initial term of
21 one year and one of whom shall be appointed to serve an
22 initial term of 2 years;
23 (4) 2 members appointed by the Minority Leader of the
24 House of Representatives, one of whom shall be appointed to

HB4002- 64 -LRB100 11337 MJP 21715 b
1 serve an initial term of one year and one of whom shall be
2 appointed to serve an initial term of 2 years; and
3 (5) 2 members appointed by the Minority Leader of the
4 Senate, one of whom shall be appointed to serve an initial
5 term of one year and one of whom shall be appointed to
6 serve an initial term of 2 years.
7 The members of the Board shall elect a member to serve as
8chair of the Board. The members of the Board shall reflect the
9composition of the Illinois population with regard to ethnic
10and racial composition.
11 After the initial terms, each member shall be appointed to
12serve a term of 2 years and until his or her successor has been
13appointed and assumes office. If a vacancy occurs in the Board
14membership, then the vacancy shall be filled in the same manner
15as the initial appointment. No member of the Board shall, at
16the time of his or her appointment or within 2 years before the
17appointment, hold elected office or be appointed to a State
18board, commission, or agency. All Board members are subject to
19the State Officials and Employees Ethics Act.
20 (b) Board members shall serve without compensation, but may
21be reimbursed for their reasonable travel expenses from funds
22available for that purpose. The Department of Commerce and
23Economic Opportunity shall provide staff and administrative
24support services to the Board.
25 (c) The Board must make recommendations, which must be
26approved by a majority of the Board, to the Department of

HB4002- 65 -LRB100 11337 MJP 21715 b
1Commerce and Economic Opportunity concerning the award of
2grants from amounts appropriated to the Department from the
3Depressed Communities Economic Development Fund, a special
4fund created in the State treasury. The Department must make
5grants to public or private entities submitting proposals to
6the Board to revitalize an Illinois depressed community. Grants
7may be used by these entities only for those purposes
8conditioned with the grant. For the purposes of this subsection
9(c), plans for revitalizing an Illinois depressed community
10include plans intended to curb high levels of poverty,
11unemployment, job and population loss, and general distress. An
12Illinois depressed community is an area where the poverty rate,
13as determined by using the most recent data released by the
14United States Census Bureau, is at least 3% greater than the
15State poverty rate as determined by using the most recent data
16released by the United States Census Bureau.
17 (20 ILCS 605/605-535 new)
18 Sec. 605-535. The Commission on the Future of Economic
19Development of the Latino Community.
20 (a) There is hereby created the Commission on the Future of
21Economic Development of the Latino Community within the
22Department. The purpose of the Commission shall be to maintain
23and develop the economy of Latinos and to provide opportunities
24for this community, which will enhance and expand the quality
25of their lives.

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

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

HB4002- 68 -LRB100 11337 MJP 21715 b
1Section.
2 (b) The Commission shall consist of 12 voting members,
3appointed by the Governor, 4 of whom shall be appointed to
4serve an initial term of one year, 4 of whom shall be appointed
5to serve an initial term of 2 years, and 4 of whom shall be
6appointed to serve an initial term of 3 years. After the
7initial term, each member shall be appointed to a term of 3
8years. Members of the Commission shall serve at the pleasure of
9the Governor for not more than 2 consecutive 3-year terms. In
10appointing members, the Governor shall appoint individuals
11from the following private industry sectors:
12 (1) production agriculture;
13 (2) at least 2 individuals from manufacturing, one of
14 whom shall represent a company with no more than 75
15 employees;
16 (3) transportation, construction, and logistics;
17 (4) travel and tourism;
18 (5) financial services and insurance;
19 (6) information technology and communications; and
20 (7) biotechnology.
21 The members of the Commission shall choose a member to
22serve as chair of the Commission. The members of the Commission
23shall be representative, to the extent possible, of the various
24geographic areas of the State. The Director shall serve as an
25ad hoc nonvoting member of the Commission. Vacancies shall be
26filled in the same manner as the original appointments. The

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

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

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

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

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

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

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

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

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

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1 (21) Right of use of copyrights, trademarks, and
2 service marks held by the Department in the name of the
3 State. The agreement must provide that any use of them by
4 the manager shall only be for the purpose of fulfilling its
5 obligations under the management agreement during the term
6 of the agreement.
7 (22) The disclosure of any information requested by the
8 Department to enable it to comply with the reporting
9 requirements and information requests provided for under
10 subsection (p) of this Section.
11 (e) Notwithstanding any other law to the contrary, the
12Department shall select a private manager through a competitive
13request for qualifications process consistent with Section
1420-35 of the Illinois Procurement Code, which shall take into
15account:
16 (1) the offeror's ability to market the Lottery to
17 those residents who are new, infrequent, or lapsed players
18 of the Lottery, especially those who are most likely to
19 make regular purchases on the Internet;
20 (2) the offeror's ability to address the State's
21 concern with the social effects of gambling on those who
22 can least afford to do so;
23 (3) the offeror's ability to provide the most
24 successful management of the Lottery for the benefit of the
25 people of the State based on current and past business
26 practices or plans of the offeror; and

HB4002- 79 -LRB100 11337 MJP 21715 b
1 (4) the offeror's poor or inadequate past performance
2 in servicing, equipping, operating or managing a lottery on
3 behalf of Illinois, another State or foreign government and
4 attracting persons who are not currently regular players of
5 a lottery.
6 (f) The Department may retain the services of an advisor or
7advisors with significant experience in financial services or
8the management, operation, and procurement of goods, services,
9and equipment for a government-run lottery to assist in the
10preparation of the terms of the request for qualifications and
11selection of the private manager. Any prospective advisor
12seeking to provide services under this subsection (f) shall
13disclose any material business or financial relationship
14during the past 3 years with any potential offeror, or with a
15contractor or subcontractor presently providing goods,
16services, or equipment to the Department to support the
17Lottery. The Department shall evaluate the material business or
18financial relationship of each prospective advisor. The
19Department shall not select any prospective advisor with a
20substantial business or financial relationship that the
21Department deems to impair the objectivity of the services to
22be provided by the prospective advisor. During the course of
23the advisor's engagement by the Department, and for a period of
24one year thereafter, the advisor shall not enter into any
25business or financial relationship with any offeror or any
26vendor identified to assist an offeror in performing its

HB4002- 80 -LRB100 11337 MJP 21715 b
1obligations under the management agreement. Any advisor
2retained by the Department shall be disqualified from being an
3offeror. The Department shall not include terms in the request
4for qualifications that provide a material advantage whether
5directly or indirectly to any potential offeror, or any
6contractor or subcontractor presently providing goods,
7services, or equipment to the Department to support the
8Lottery, including terms contained in previous responses to
9requests for proposals or qualifications submitted to
10Illinois, another State or foreign government when those terms
11are uniquely associated with a particular potential offeror,
12contractor, or subcontractor. The request for proposals
13offered by the Department on December 22, 2008 as
14"LOT08GAMESYS" and reference number "22016176" is declared
15void.
16 (g) The Department shall select at least 2 offerors as
17finalists to potentially serve as the private manager no later
18than August 9, 2010. Upon making preliminary selections, the
19Department shall schedule a public hearing on the finalists'
20proposals and provide public notice of the hearing at least 7
21calendar days before the hearing. The notice must include all
22of the following:
23 (1) The date, time, and place of the hearing.
24 (2) The subject matter of the hearing.
25 (3) A brief description of the management agreement to
26 be awarded.

HB4002- 81 -LRB100 11337 MJP 21715 b
1 (4) The identity of the offerors that have been
2 selected as finalists to serve as the private manager.
3 (5) The address and telephone number of the Department.
4 (h) At the public hearing, the Department shall (i) provide
5sufficient time for each finalist to present and explain its
6proposal to the Department and the Governor or the Governor's
7designee, including an opportunity to respond to questions
8posed by the Department, Governor, or designee and (ii) allow
9the public and non-selected offerors to comment on the
10presentations. The Governor or a designee shall attend the
11public hearing. After the public hearing, the Department shall
12have 14 calendar days to recommend to the Governor whether a
13management agreement should be entered into with a particular
14finalist. After reviewing the Department's recommendation, the
15Governor may accept or reject the Department's recommendation,
16and shall select a final offeror as the private manager by
17publication of a notice in the Illinois Procurement Bulletin on
18or before September 15, 2010. The Governor shall include in the
19notice a detailed explanation and the reasons why the final
20offeror is superior to other offerors and will provide
21management services in a manner that best achieves the
22objectives of this Section. The Governor shall also sign the
23management agreement with the private manager.
24 (i) Any action to contest the private manager selected by
25the Governor under this Section must be brought within 7
26calendar days after the publication of the notice of the

HB4002- 82 -LRB100 11337 MJP 21715 b
1designation of the private manager as provided in subsection
2(h) of this Section.
3 (j) The Lottery shall remain, for so long as a private
4manager manages the Lottery in accordance with provisions of
5this Act, a Lottery conducted by the State, and the State shall
6not be authorized to sell or transfer the Lottery to a third
7party.
8 (k) Any tangible personal property used exclusively in
9connection with the lottery that is owned by the Department and
10leased to the private manager shall be owned by the Department
11in the name of the State and shall be considered to be public
12property devoted to an essential public and governmental
13function.
14 (l) The Department may exercise any of its powers under
15this Section or any other law as necessary or desirable for the
16execution of the Department's powers under this Section.
17 (m) Neither this Section nor any management agreement
18entered into under this Section prohibits the General Assembly
19from authorizing forms of gambling that are not in direct
20competition with the Lottery. The forms of gambling authorized
21by this amendatory Act of the 100th General Assembly constitute
22authorized forms of gambling that are not in direct competition
23with the Lottery.
24 (n) The private manager shall be subject to a complete
25investigation in the third, seventh, and tenth years of the
26agreement (if the agreement is for a 10-year term) by the

HB4002- 83 -LRB100 11337 MJP 21715 b
1Department in cooperation with the Auditor General to determine
2whether the private manager has complied with this Section and
3the management agreement. The private manager shall bear the
4cost of an investigation or reinvestigation of the private
5manager under this subsection.
6 (o) The powers conferred by this Section are in addition
7and supplemental to the powers conferred by any other law. If
8any other law or rule is inconsistent with this Section,
9including, but not limited to, provisions of the Illinois
10Procurement Code, then this Section controls as to any
11management agreement entered into under this Section. This
12Section and any rules adopted under this Section contain full
13and complete authority for a management agreement between the
14Department and a private manager. No law, procedure,
15proceeding, publication, notice, consent, approval, order, or
16act by the Department or any other officer, Department, agency,
17or instrumentality of the State or any political subdivision is
18required for the Department to enter into a management
19agreement under this Section. This Section contains full and
20complete authority for the Department to approve any contracts
21entered into by a private manager with a vendor providing
22goods, services, or both goods and services to the private
23manager under the terms of the management agreement, including
24subcontractors of such vendors.
25 Upon receipt of a written request from the Chief
26Procurement Officer, the Department shall provide to the Chief

HB4002- 84 -LRB100 11337 MJP 21715 b
1Procurement Officer a complete and un-redacted copy of the
2management agreement or any contract that is subject to the
3Department's approval authority under this subsection (o). The
4Department shall provide a copy of the agreement or contract to
5the Chief Procurement Officer in the time specified by the
6Chief Procurement Officer in his or her written request, but no
7later than 5 business days after the request is received by the
8Department. The Chief Procurement Officer must retain any
9portions of the management agreement or of any contract
10designated by the Department as confidential, proprietary, or
11trade secret information in complete confidence pursuant to
12subsection (g) of Section 7 of the Freedom of Information Act.
13The Department shall also provide the Chief Procurement Officer
14with reasonable advance written notice of any contract that is
15pending Department approval.
16 Notwithstanding any other provision of this Section to the
17contrary, the Chief Procurement Officer shall adopt
18administrative rules, including emergency rules, to establish
19a procurement process to select a successor private manager if
20a private management agreement has been terminated. The
21selection process shall at a minimum take into account the
22criteria set forth in items (1) through (4) of subsection (e)
23of this Section and may include provisions consistent with
24subsections (f), (g), (h), and (i) of this Section. The Chief
25Procurement Officer shall also implement and administer the
26adopted selection process upon the termination of a private

HB4002- 85 -LRB100 11337 MJP 21715 b
1management agreement. The Department, after the Chief
2Procurement Officer certifies that the procurement process has
3been followed in accordance with the rules adopted under this
4subsection (o), shall select a final offeror as the private
5manager and sign the management agreement with the private
6manager.
7 Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and
821.9, the Department shall distribute all proceeds of lottery
9tickets and shares sold in the following priority and manner:
10 (1) The payment of prizes and retailer bonuses.
11 (2) The payment of costs incurred in the operation and
12 administration of the Lottery, including the payment of
13 sums due to the private manager under the management
14 agreement with the Department.
15 (3) On the last day of each month or as soon thereafter
16 as possible, the State Comptroller shall direct and the
17 State Treasurer shall transfer from the State Lottery Fund
18 to the Common School Fund an amount that is equal to the
19 proceeds transferred in the corresponding month of fiscal
20 year 2009, as adjusted for inflation, to the Common School
21 Fund.
22 (4) On or before the last day of each fiscal year,
23 deposit any remaining proceeds, subject to payments under
24 items (1), (2), and (3) into the Capital Projects Fund each
25 fiscal year.
26 (p) The Department shall be subject to the following

HB4002- 86 -LRB100 11337 MJP 21715 b
1reporting and information request requirements:
2 (1) the Department shall submit written quarterly
3 reports to the Governor and the General Assembly on the
4 activities and actions of the private manager selected
5 under this Section;
6 (2) upon request of the Chief Procurement Officer, the
7 Department shall promptly produce information related to
8 the procurement activities of the Department and the
9 private manager requested by the Chief Procurement
10 Officer; the Chief Procurement Officer must retain
11 confidential, proprietary, or trade secret information
12 designated by the Department in complete confidence
13 pursuant to subsection (g) of Section 7 of the Freedom of
14 Information Act; and
15 (3) at least 30 days prior to the beginning of the
16 Department's fiscal year, the Department shall prepare an
17 annual written report on the activities of the private
18 manager selected under this Section and deliver that report
19 to the Governor and General Assembly.
20(Source: P.A. 98-463, eff. 8-16-13; 98-649, eff. 6-16-14;
2199-933, eff. 1-27-17.)
22 Section 90-10. The Department of Revenue Law of the Civil
23Administrative Code of Illinois is amended by changing Section
242505-305 as follows:

HB4002- 87 -LRB100 11337 MJP 21715 b
1 (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)
2 Sec. 2505-305. Investigators.
3 (a) The Department has the power to appoint investigators
4to conduct all investigations, searches, seizures, arrests,
5and other duties imposed under the provisions of any law
6administered by the Department. Except as provided in
7subsection (c), these investigators have and may exercise all
8the powers of peace officers solely for the purpose of
9enforcing taxing measures administered by the Department.
10 (b) The Director must authorize to each investigator
11employed under this Section and to any other employee of the
12Department exercising the powers of a peace officer a distinct
13badge that, on its face, (i) clearly states that the badge is
14authorized by the Department and (ii) contains a unique
15identifying number. No other badge shall be authorized by the
16Department.
17 (c) The Department may enter into agreements with the
18Illinois Gaming Board providing that investigators appointed
19under this Section shall exercise the peace officer powers set
20forth in paragraph (20.6) of subsection (c) of Section 5 of the
21Illinois Riverboat Gambling Act.
22(Source: P.A. 96-37, eff. 7-13-09.)
23 Section 90-12. The Illinois State Auditing Act is amended
24by changing Section 3-1 as follows:

HB4002- 88 -LRB100 11337 MJP 21715 b
1 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
2 Sec. 3-1. Jurisdiction of Auditor General. The Auditor
3General has jurisdiction over all State agencies to make post
4audits and investigations authorized by or under this Act or
5the Constitution.
6 The Auditor General has jurisdiction over local government
7agencies and private agencies only:
8 (a) to make such post audits authorized by or under
9 this Act as are necessary and incidental to a post audit of
10 a State agency or of a program administered by a State
11 agency involving public funds of the State, but this
12 jurisdiction does not include any authority to review local
13 governmental agencies in the obligation, receipt,
14 expenditure or use of public funds of the State that are
15 granted without limitation or condition imposed by law,
16 other than the general limitation that such funds be used
17 for public purposes;
18 (b) to make investigations authorized by or under this
19 Act or the Constitution; and
20 (c) to make audits of the records of local government
21 agencies to verify actual costs of state-mandated programs
22 when directed to do so by the Legislative Audit Commission
23 at the request of the State Board of Appeals under the
24 State Mandates Act.
25 In addition to the foregoing, the Auditor General may
26conduct an audit of the Metropolitan Pier and Exposition

HB4002- 89 -LRB100 11337 MJP 21715 b
1Authority, the Regional Transportation Authority, the Suburban
2Bus Division, the Commuter Rail Division and the Chicago
3Transit Authority and any other subsidized carrier when
4authorized by the Legislative Audit Commission. Such audit may
5be a financial, management or program audit, or any combination
6thereof.
7 The audit shall determine whether they are operating in
8accordance with all applicable laws and regulations. Subject to
9the limitations of this Act, the Legislative Audit Commission
10may by resolution specify additional determinations to be
11included in the scope of the audit.
12 In addition to the foregoing, the Auditor General must also
13conduct a financial audit of the Illinois Sports Facilities
14Authority's expenditures of public funds in connection with the
15reconstruction, renovation, remodeling, extension, or
16improvement of all or substantially all of any existing
17"facility", as that term is defined in the Illinois Sports
18Facilities Authority Act.
19 The Auditor General may also conduct an audit, when
20authorized by the Legislative Audit Commission, of any hospital
21which receives 10% or more of its gross revenues from payments
22from the State of Illinois, Department of Healthcare and Family
23Services (formerly Department of Public Aid), Medical
24Assistance Program.
25 The Auditor General is authorized to conduct financial and
26compliance audits of the Illinois Distance Learning Foundation

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

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1audit of the books and records of any county water commission
2organized pursuant to the Water Commission Act of 1985 and
3shall file a copy of the report of that audit with the Governor
4and the Legislative Audit Commission. The filed audit shall be
5open to the public for inspection. The cost of the audit shall
6be charged to the county water commission in accordance with
7Section 6z-27 of the State Finance Act. The county water
8commission shall make available to the Auditor General its
9books and records and any other documentation, whether in the
10possession of its trustees or other parties, necessary to
11conduct the audit required. These audit requirements apply only
12through July 1, 2007.
13 The Auditor General must conduct audits of the Rend Lake
14Conservancy District as provided in Section 25.5 of the River
15Conservancy Districts Act.
16 The Auditor General must conduct financial audits of the
17Southeastern Illinois Economic Development Authority as
18provided in Section 70 of the Southeastern Illinois Economic
19Development Authority Act.
20 The Auditor General shall conduct a compliance audit in
21accordance with subsections (d) and (f) of Section 30 of the
22Innovation Development and Economy Act.
23(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
2496-939, eff. 6-24-10.)
25 Section 90-15. The State Finance Act is amended by adding

HB4002- 92 -LRB100 11337 MJP 21715 b
1Sections 5.878, 5.879, 5.880, and 6z-102 and by changing
2Section 6z-45 as follows:
3 (30 ILCS 105/5.878 new)
4 Sec. 5.878. The Gaming Facilities Fee Revenue Fund.
5 (30 ILCS 105/5.879 new)
6 Sec. 5.879. The Depressed Communities Economic Development
7Fund.
8 (30 ILCS 105/5.880 new)
9 Sec. 5.880. The Latino Community Economic Development
10Fund.
11 (30 ILCS 105/6z-45)
12 Sec. 6z-45. The School Infrastructure Fund.
13 (a) The School Infrastructure Fund is created as a special
14fund in the State Treasury.
15 In addition to any other deposits authorized by law,
16beginning January 1, 2000, on the first day of each month, or
17as soon thereafter as may be practical, the State Treasurer and
18State Comptroller shall transfer the sum of $5,000,000 from the
19General Revenue Fund to the School Infrastructure Fund, except
20that, notwithstanding any other provision of law, and in
21addition to any other transfers that may be provided for by
22law, before June 30, 2012, the Comptroller and the Treasurer

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1shall transfer $45,000,000 from the General Revenue Fund into
2the School Infrastructure Fund, and, for fiscal year 2013 only,
3the Treasurer and the Comptroller shall transfer $1,250,000
4from the General Revenue Fund to the School Infrastructure Fund
5on the first day of each month; provided, however, that no such
6transfers shall be made from July 1, 2001 through June 30,
72003.
8 (b) Subject to the transfer provisions set forth below,
9money in the School Infrastructure Fund shall, if and when the
10State of Illinois incurs any bonded indebtedness for the
11construction of school improvements under the School
12Construction Law, be set aside and used for the purpose of
13paying and discharging annually the principal and interest on
14that bonded indebtedness then due and payable, and for no other
15purpose.
16 In addition to other transfers to the General Obligation
17Bond Retirement and Interest Fund made pursuant to Section 15
18of the General Obligation Bond Act, upon each delivery of bonds
19issued for construction of school improvements under the School
20Construction Law, the State Comptroller shall compute and
21certify to the State Treasurer the total amount of principal
22of, interest on, and premium, if any, on such bonds during the
23then current and each succeeding fiscal year. With respect to
24the interest payable on variable rate bonds, such
25certifications shall be calculated at the maximum rate of
26interest that may be payable during the fiscal year, after

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1taking into account any credits permitted in the related
2indenture or other instrument against the amount of such
3interest required to be appropriated for that period.
4 On or before the last day of each month, the State
5Treasurer and State Comptroller shall transfer from the School
6Infrastructure Fund to the General Obligation Bond Retirement
7and Interest Fund an amount sufficient to pay the aggregate of
8the principal of, interest on, and premium, if any, on the
9bonds payable on their next payment date, divided by the number
10of monthly transfers occurring between the last previous
11payment date (or the delivery date if no payment date has yet
12occurred) and the next succeeding payment date. Interest
13payable on variable rate bonds shall be calculated at the
14maximum rate of interest that may be payable for the relevant
15period, after taking into account any credits permitted in the
16related indenture or other instrument against the amount of
17such interest required to be appropriated for that period.
18Interest for which moneys have already been deposited into the
19capitalized interest account within the General Obligation
20Bond Retirement and Interest Fund shall not be included in the
21calculation of the amounts to be transferred under this
22subsection.
23 (b-5) The money deposited into the School Infrastructure
24Fund from transfers pursuant to subsections (c-30) and (c-35)
25of Section 13 of the Illinois Riverboat Gambling Act shall be
26applied, without further direction, as provided in subsection

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1(b-3) of Section 5-35 of the School Construction Law.
2 (c) The surplus, if any, in the School Infrastructure Fund
3after payments made pursuant to subsections (b) and (b-5) of
4this Section shall, subject to appropriation, be used as
5follows:
6 First - to make 3 payments to the School Technology
7Revolving Loan Fund as follows:
8 Transfer of $30,000,000 in fiscal year 1999;
9 Transfer of $20,000,000 in fiscal year 2000; and
10 Transfer of $10,000,000 in fiscal year 2001.
11 Second - to pay the expenses of the State Board of
12Education and the Capital Development Board in administering
13programs under the School Construction Law, the total expenses
14not to exceed $1,200,000 in any fiscal year.
15 Third - to pay any amounts due for grants for school
16construction projects and debt service under the School
17Construction Law.
18 Fourth - to pay any amounts due for grants for school
19maintenance projects under the School Construction Law.
20(Source: P.A. 97-732, eff. 6-30-12; 98-18, eff. 6-7-13.)
21 (30 ILCS 105/6z-102 new)
22 Sec. 6z-102. The Gaming Facilities Fee Revenue Fund.
23 (a) The Gaming Facilities Fee Revenue Fund is created as a
24special fund in the State treasury.
25 (b) The revenues in the Fund shall be used, subject to

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1appropriation, by the Comptroller for the purpose of (i)
2providing appropriations to the Illinois Gaming Board for the
3administration and enforcement of the Illinois Gambling Act and
4the applicable provisions of the Chicago Casino Development
5Authority Act and (ii) payment of vouchers that are outstanding
6for more than 60 days. Whenever practical, the Comptroller must
7prioritize voucher payments for expenses related to medical
8assistance under the Illinois Public Aid Code, the Children's
9Health Insurance Program Act, and the Covering ALL KIDS Health
10Insurance Act.
11 (c) The Fund shall consist of fee revenues received
12pursuant to subsection (e) of Section 1-45 of the Chicago
13Casino Development Authority Act and pursuant to subsections
14(e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections
15(b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling
16Act. All interest earned on moneys in the Fund shall be
17deposited into the Fund.
18 (d) The Fund shall not be subject to administrative charges
19or chargebacks, including, but not limited to, those authorized
20under subsection (h) of Section 8 of this Act.
21 Section 90-20. The Illinois Income Tax Act is amended by
22changing Sections 201, 303, 304 and 710 as follows:
23 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
24 Sec. 201. Tax Imposed.

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1 (a) In general. A tax measured by net income is hereby
2imposed on every individual, corporation, trust and estate for
3each taxable year ending after July 31, 1969 on the privilege
4of earning or receiving income in or as a resident of this
5State. Such tax shall be in addition to all other occupation or
6privilege taxes imposed by this State or by any municipal
7corporation or political subdivision thereof.
8 (b) Rates. The tax imposed by subsection (a) of this
9Section shall be determined as follows, except as adjusted by
10subsection (d-1):
11 (1) In the case of an individual, trust or estate, for
12 taxable years ending prior to July 1, 1989, an amount equal
13 to 2 1/2% of the taxpayer's net income for the taxable
14 year.
15 (2) In the case of an individual, trust or estate, for
16 taxable years beginning prior to July 1, 1989 and ending
17 after June 30, 1989, an amount equal to the sum of (i) 2
18 1/2% of the taxpayer's net income for the period prior to
19 July 1, 1989, as calculated under Section 202.3, and (ii)
20 3% of the taxpayer's net income for the period after June
21 30, 1989, as calculated under Section 202.3.
22 (3) In the case of an individual, trust or estate, for
23 taxable years beginning after June 30, 1989, and ending
24 prior to January 1, 2011, an amount equal to 3% of the
25 taxpayer's net income for the taxable year.
26 (4) In the case of an individual, trust, or estate, for

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

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1 202.5, and (ii) 3.25% of the taxpayer's net income for the
2 period after December 31, 2024, as calculated under Section
3 202.5.
4 (5.4) In the case of an individual, trust, or estate,
5 for taxable years beginning on or after January 1, 2025, an
6 amount equal to 3.25% of the taxpayer's net income for the
7 taxable year.
8 (6) In the case of a corporation, for taxable years
9 ending prior to July 1, 1989, an amount equal to 4% of the
10 taxpayer's net income for the taxable year.
11 (7) In the case of a corporation, for taxable years
12 beginning prior to July 1, 1989 and ending after June 30,
13 1989, an amount equal to the sum of (i) 4% of the
14 taxpayer's net income for the period prior to July 1, 1989,
15 as calculated under Section 202.3, and (ii) 4.8% of the
16 taxpayer's net income for the period after June 30, 1989,
17 as calculated under Section 202.3.
18 (8) In the case of a corporation, for taxable years
19 beginning after June 30, 1989, and ending prior to January
20 1, 2011, an amount equal to 4.8% of the taxpayer's net
21 income for the taxable year.
22 (9) In the case of a corporation, for taxable years
23 beginning prior to January 1, 2011, and ending after
24 December 31, 2010, an amount equal to the sum of (i) 4.8%
25 of the taxpayer's net income for the period prior to
26 January 1, 2011, as calculated under Section 202.5, and

HB4002- 100 -LRB100 11337 MJP 21715 b
1 (ii) 7% of the taxpayer's net income for the period after
2 December 31, 2010, as calculated under Section 202.5.
3 (10) In the case of a corporation, for taxable years
4 beginning on or after January 1, 2011, and ending prior to
5 January 1, 2015, an amount equal to 7% of the taxpayer's
6 net income for the taxable year.
7 (11) In the case of a corporation, for taxable years
8 beginning prior to January 1, 2015, and ending after
9 December 31, 2014, an amount equal to the sum of (i) 7% of
10 the taxpayer's net income for the period prior to January
11 1, 2015, as calculated under Section 202.5, and (ii) 5.25%
12 of the taxpayer's net income for the period after December
13 31, 2014, as calculated under Section 202.5.
14 (12) In the case of a corporation, for taxable years
15 beginning on or after January 1, 2015, and ending prior to
16 January 1, 2025, an amount equal to 5.25% of the taxpayer's
17 net income for the taxable year.
18 (13) In the case of a corporation, for taxable years
19 beginning prior to January 1, 2025, and ending after
20 December 31, 2024, an amount equal to the sum of (i) 5.25%
21 of the taxpayer's net income for the period prior to
22 January 1, 2025, as calculated under Section 202.5, and
23 (ii) 4.8% of the taxpayer's net income for the period after
24 December 31, 2024, as calculated under Section 202.5.
25 (14) In the case of a corporation, for taxable years
26 beginning on or after January 1, 2025, an amount equal to

HB4002- 101 -LRB100 11337 MJP 21715 b
1 4.8% of the taxpayer's net income for the taxable year.
2 The rates under this subsection (b) are subject to the
3provisions of Section 201.5.
4 (b-5) Surcharge; sale or exchange of assets, properties,
5and intangibles of electronic gaming licensees. For each of
6taxable years 2017 through 2025, a surcharge is imposed on all
7taxpayers on income arising from the sale or exchange of
8capital assets, depreciable business property, real property
9used in the trade or business, and Section 197 intangibles (i)
10of an organization licensee under the Illinois Horse Racing Act
11of 1975 and (ii) of an electronic gaming licensee under the
12Illinois Gambling Act. The amount of the surcharge is equal to
13the amount of federal income tax liability for the taxable year
14attributable to those sales and exchanges. The surcharge
15imposed shall not apply if:
16 (1) the electronic gaming license, organization
17 license, or race track property is transferred as a result
18 of any of the following:
19 (A) bankruptcy, a receivership, or a debt
20 adjustment initiated by or against the initial
21 licensee or the substantial owners of the initial
22 licensee;
23 (B) cancellation, revocation, or termination of
24 any such license by the Illinois Gaming Board or the
25 Illinois Racing Board;
26 (C) a determination by the Illinois Gaming Board

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

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1 (c) Personal Property Tax Replacement Income Tax.
2Beginning on July 1, 1979 and thereafter, in addition to such
3income tax, there is also hereby imposed the Personal Property
4Tax Replacement Income Tax measured by net income on every
5corporation (including Subchapter S corporations), partnership
6and trust, for each taxable year ending after June 30, 1979.
7Such taxes are imposed on the privilege of earning or receiving
8income in or as a resident of this State. The Personal Property
9Tax Replacement Income Tax shall be in addition to the income
10tax imposed by subsections (a) and (b) of this Section and in
11addition to all other occupation or privilege taxes imposed by
12this State or by any municipal corporation or political
13subdivision thereof.
14 (d) Additional Personal Property Tax Replacement Income
15Tax Rates. The personal property tax replacement income tax
16imposed by this subsection and subsection (c) of this Section
17in the case of a corporation, other than a Subchapter S
18corporation and except as adjusted by subsection (d-1), shall
19be an additional amount equal to 2.85% of such taxpayer's net
20income for the taxable year, except that beginning on January
211, 1981, and thereafter, the rate of 2.85% specified in this
22subsection shall be reduced to 2.5%, and in the case of a
23partnership, trust or a Subchapter S corporation shall be an
24additional amount equal to 1.5% of such taxpayer's net income
25for the taxable year.
26 (d-1) Rate reduction for certain foreign insurers. In the

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1case of a foreign insurer, as defined by Section 35A-5 of the
2Illinois Insurance Code, whose state or country of domicile
3imposes on insurers domiciled in Illinois a retaliatory tax
4(excluding any insurer whose premiums from reinsurance assumed
5are 50% or more of its total insurance premiums as determined
6under paragraph (2) of subsection (b) of Section 304, except
7that for purposes of this determination premiums from
8reinsurance do not include premiums from inter-affiliate
9reinsurance arrangements), beginning with taxable years ending
10on or after December 31, 1999, the sum of the rates of tax
11imposed by subsections (b) and (d) shall be reduced (but not
12increased) to the rate at which the total amount of tax imposed
13under this Act, net of all credits allowed under this Act,
14shall equal (i) the total amount of tax that would be imposed
15on the foreign insurer's net income allocable to Illinois for
16the taxable year by such foreign insurer's state or country of
17domicile if that net income were subject to all income taxes
18and taxes measured by net income imposed by such foreign
19insurer's state or country of domicile, net of all credits
20allowed or (ii) a rate of zero if no such tax is imposed on such
21income by the foreign insurer's state of domicile. For the
22purposes of this subsection (d-1), an inter-affiliate includes
23a mutual insurer under common management.
24 (1) For the purposes of subsection (d-1), in no event
25 shall the sum of the rates of tax imposed by subsections
26 (b) and (d) be reduced below the rate at which the sum of:

HB4002- 105 -LRB100 11337 MJP 21715 b
1 (A) the total amount of tax imposed on such foreign
2 insurer under this Act for a taxable year, net of all
3 credits allowed under this Act, plus
4 (B) the privilege tax imposed by Section 409 of the
5 Illinois Insurance Code, the fire insurance company
6 tax imposed by Section 12 of the Fire Investigation
7 Act, and the fire department taxes imposed under
8 Section 11-10-1 of the Illinois Municipal Code,
9 equals 1.25% for taxable years ending prior to December 31,
10 2003, or 1.75% for taxable years ending on or after
11 December 31, 2003, of the net taxable premiums written for
12 the taxable year, as described by subsection (1) of Section
13 409 of the Illinois Insurance Code. This paragraph will in
14 no event increase the rates imposed under subsections (b)
15 and (d).
16 (2) Any reduction in the rates of tax imposed by this
17 subsection shall be applied first against the rates imposed
18 by subsection (b) and only after the tax imposed by
19 subsection (a) net of all credits allowed under this
20 Section other than the credit allowed under subsection (i)
21 has been reduced to zero, against the rates imposed by
22 subsection (d).
23 This subsection (d-1) is exempt from the provisions of
24Section 250.
25 (e) Investment credit. A taxpayer shall be allowed a credit
26against the Personal Property Tax Replacement Income Tax for

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

HB4002- 107 -LRB100 11337 MJP 21715 b
1 any credit for qualified property be allowed for any year
2 other than the year in which the property was placed in
3 service in Illinois. For tax years ending on or after
4 December 31, 1987, and on or before December 31, 1988, the
5 credit shall be allowed for the tax year in which the
6 property is placed in service, or, if the amount of the
7 credit exceeds the tax liability for that year, whether it
8 exceeds the original liability or the liability as later
9 amended, such excess may be carried forward and applied to
10 the tax liability of the 5 taxable years following the
11 excess credit years if the taxpayer (i) makes investments
12 which cause the creation of a minimum of 2,000 full-time
13 equivalent jobs in Illinois, (ii) is located in an
14 enterprise zone established pursuant to the Illinois
15 Enterprise Zone Act and (iii) is certified by the
16 Department of Commerce and Community Affairs (now
17 Department of Commerce and Economic Opportunity) as
18 complying with the requirements specified in clause (i) and
19 (ii) by July 1, 1986. The Department of Commerce and
20 Community Affairs (now Department of Commerce and Economic
21 Opportunity) shall notify the Department of Revenue of all
22 such certifications immediately. For tax years ending
23 after December 31, 1988, the credit shall be allowed for
24 the tax year in which the property is placed in service,
25 or, if the amount of the credit exceeds the tax liability
26 for that year, whether it exceeds the original liability or

HB4002- 108 -LRB100 11337 MJP 21715 b
1 the liability as later amended, such excess may be carried
2 forward and applied to the tax liability of the 5 taxable
3 years following the excess credit years. The credit shall
4 be applied to the earliest year for which there is a
5 liability. If there is credit from more than one tax year
6 that is available to offset a liability, earlier credit
7 shall be applied first.
8 (2) The term "qualified property" means property
9 which:
10 (A) is tangible, whether new or used, including
11 buildings and structural components of buildings and
12 signs that are real property, but not including land or
13 improvements to real property that are not a structural
14 component of a building such as landscaping, sewer
15 lines, local access roads, fencing, parking lots, and
16 other appurtenances;
17 (B) is depreciable pursuant to Section 167 of the
18 Internal Revenue Code, except that "3-year property"
19 as defined in Section 168(c)(2)(A) of that Code is not
20 eligible for the credit provided by this subsection
21 (e);
22 (C) is acquired by purchase as defined in Section
23 179(d) of the Internal Revenue Code;
24 (D) is used in Illinois by a taxpayer who is
25 primarily engaged in manufacturing, or in mining coal
26 or fluorite, or in retailing, or was placed in service

HB4002- 109 -LRB100 11337 MJP 21715 b
1 on or after July 1, 2006 in a River Edge Redevelopment
2 Zone established pursuant to the River Edge
3 Redevelopment Zone Act; and
4 (E) has not previously been used in Illinois in
5 such a manner and by such a person as would qualify for
6 the credit provided by this subsection (e) or
7 subsection (f).
8 (3) For purposes of this subsection (e),
9 "manufacturing" means the material staging and production
10 of tangible personal property by procedures commonly
11 regarded as manufacturing, processing, fabrication, or
12 assembling which changes some existing material into new
13 shapes, new qualities, or new combinations. For purposes of
14 this subsection (e) the term "mining" shall have the same
15 meaning as the term "mining" in Section 613(c) of the
16 Internal Revenue Code. For purposes of this subsection (e),
17 the term "retailing" means the sale of tangible personal
18 property for use or consumption and not for resale, or
19 services rendered in conjunction with the sale of tangible
20 personal property for use or consumption and not for
21 resale. For purposes of this subsection (e), "tangible
22 personal property" has the same meaning as when that term
23 is used in the Retailers' Occupation Tax Act, and, for
24 taxable years ending after December 31, 2008, does not
25 include the generation, transmission, or distribution of
26 electricity.

HB4002- 110 -LRB100 11337 MJP 21715 b
1 (4) The basis of qualified property shall be the basis
2 used to compute the depreciation deduction for federal
3 income tax purposes.
4 (5) If the basis of the property for federal income tax
5 depreciation purposes is increased after it has been placed
6 in service in Illinois by the taxpayer, the amount of such
7 increase shall be deemed property placed in service on the
8 date of such increase in basis.
9 (6) The term "placed in service" shall have the same
10 meaning as under Section 46 of the Internal Revenue Code.
11 (7) If during any taxable year, any property ceases to
12 be qualified property in the hands of the taxpayer within
13 48 months after being placed in service, or the situs of
14 any qualified property is moved outside Illinois within 48
15 months after being placed in service, the Personal Property
16 Tax Replacement Income Tax for such taxable year shall be
17 increased. Such increase shall be determined by (i)
18 recomputing the investment credit which would have been
19 allowed for the year in which credit for such property was
20 originally allowed by eliminating such property from such
21 computation and, (ii) subtracting such recomputed credit
22 from the amount of credit previously allowed. For the
23 purposes of this paragraph (7), a reduction of the basis of
24 qualified property resulting from a redetermination of the
25 purchase price shall be deemed a disposition of qualified
26 property to the extent of such reduction.

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1 (8) Unless the investment credit is extended by law,
2 the basis of qualified property shall not include costs
3 incurred after December 31, 2018, except for costs incurred
4 pursuant to a binding contract entered into on or before
5 December 31, 2018.
6 (9) Each taxable year ending before December 31, 2000,
7 a partnership may elect to pass through to its partners the
8 credits to which the partnership is entitled under this
9 subsection (e) for the taxable year. A partner may use the
10 credit allocated to him or her under this paragraph only
11 against the tax imposed in subsections (c) and (d) of this
12 Section. If the partnership makes that election, those
13 credits shall be allocated among the partners in the
14 partnership in accordance with the rules set forth in
15 Section 704(b) of the Internal Revenue Code, and the rules
16 promulgated under that Section, and the allocated amount of
17 the credits shall be allowed to the partners for that
18 taxable year. The partnership shall make this election on
19 its Personal Property Tax Replacement Income Tax return for
20 that taxable year. The election to pass through the credits
21 shall be irrevocable.
22 For taxable years ending on or after December 31, 2000,
23 a partner that qualifies its partnership for a subtraction
24 under subparagraph (I) of paragraph (2) of subsection (d)
25 of Section 203 or a shareholder that qualifies a Subchapter
26 S corporation for a subtraction under subparagraph (S) of

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1 paragraph (2) of subsection (b) of Section 203 shall be
2 allowed a credit under this subsection (e) equal to its
3 share of the credit earned under this subsection (e) during
4 the taxable year by the partnership or Subchapter S
5 corporation, determined in accordance with the
6 determination of income and distributive share of income
7 under Sections 702 and 704 and Subchapter S of the Internal
8 Revenue Code. This paragraph is exempt from the provisions
9 of Section 250.
10 (f) Investment credit; Enterprise Zone; River Edge
11Redevelopment Zone.
12 (1) A taxpayer shall be allowed a credit against the
13 tax imposed by subsections (a) and (b) of this Section for
14 investment in qualified property which is placed in service
15 in an Enterprise Zone created pursuant to the Illinois
16 Enterprise Zone Act or, for property placed in service on
17 or after July 1, 2006, a River Edge Redevelopment Zone
18 established pursuant to the River Edge Redevelopment Zone
19 Act. For partners, shareholders of Subchapter S
20 corporations, and owners of limited liability companies,
21 if the liability company is treated as a partnership for
22 purposes of federal and State income taxation, there shall
23 be allowed a credit under this subsection (f) to be
24 determined in accordance with the determination of income
25 and distributive share of income under Sections 702 and 704
26 and Subchapter S of the Internal Revenue Code. The credit

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

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1 (C) is acquired by purchase as defined in Section
2 179(d) of the Internal Revenue Code;
3 (D) is used in the Enterprise Zone or River Edge
4 Redevelopment Zone by the taxpayer; and
5 (E) has not been previously used in Illinois in
6 such a manner and by such a person as would qualify for
7 the credit provided by this subsection (f) or
8 subsection (e).
9 (3) The basis of qualified property shall be the basis
10 used to compute the depreciation deduction for federal
11 income tax purposes.
12 (4) If the basis of the property for federal income tax
13 depreciation purposes is increased after it has been placed
14 in service in the Enterprise Zone or River Edge
15 Redevelopment Zone by the taxpayer, the amount of such
16 increase shall be deemed property placed in service on the
17 date of such increase in basis.
18 (5) The term "placed in service" shall have the same
19 meaning as under Section 46 of the Internal Revenue Code.
20 (6) If during any taxable year, any property ceases to
21 be qualified property in the hands of the taxpayer within
22 48 months after being placed in service, or the situs of
23 any qualified property is moved outside the Enterprise Zone
24 or River Edge Redevelopment Zone within 48 months after
25 being placed in service, the tax imposed under subsections
26 (a) and (b) of this Section for such taxable year shall be

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1 increased. Such increase shall be determined by (i)
2 recomputing the investment credit which would have been
3 allowed for the year in which credit for such property was
4 originally allowed by eliminating such property from such
5 computation, and (ii) subtracting such recomputed credit
6 from the amount of credit previously allowed. For the
7 purposes of this paragraph (6), a reduction of the basis of
8 qualified property resulting from a redetermination of the
9 purchase price shall be deemed a disposition of qualified
10 property to the extent of such reduction.
11 (7) There shall be allowed an additional credit equal
12 to 0.5% of the basis of qualified property placed in
13 service during the taxable year in a River Edge
14 Redevelopment Zone, provided such property is placed in
15 service on or after July 1, 2006, and the taxpayer's base
16 employment within Illinois has increased by 1% or more over
17 the preceding year as determined by the taxpayer's
18 employment records filed with the Illinois Department of
19 Employment Security. Taxpayers who are new to Illinois
20 shall be deemed to have met the 1% growth in base
21 employment for the first year in which they file employment
22 records with the Illinois Department of Employment
23 Security. If, in any year, the increase in base employment
24 within Illinois over the preceding year is less than 1%,
25 the additional credit shall be limited to that percentage
26 times a fraction, the numerator of which is 0.5% and the

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1 denominator of which is 1%, but shall not exceed 0.5%.
2 (g) (Blank).
3 (h) Investment credit; High Impact Business.
4 (1) Subject to subsections (b) and (b-5) of Section 5.5
5 of the Illinois Enterprise Zone Act, a taxpayer shall be
6 allowed a credit against the tax imposed by subsections (a)
7 and (b) of this Section for investment in qualified
8 property which is placed in service by a Department of
9 Commerce and Economic Opportunity designated High Impact
10 Business. The credit shall be .5% of the basis for such
11 property. The credit shall not be available (i) until the
12 minimum investments in qualified property set forth in
13 subdivision (a)(3)(A) of Section 5.5 of the Illinois
14 Enterprise Zone Act have been satisfied or (ii) until the
15 time authorized in subsection (b-5) of the Illinois
16 Enterprise Zone Act for entities designated as High Impact
17 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
18 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
19 Act, and shall not be allowed to the extent that it would
20 reduce a taxpayer's liability for the tax imposed by
21 subsections (a) and (b) of this Section to below zero. The
22 credit applicable to such investments shall be taken in the
23 taxable year in which such investments have been completed.
24 The credit for additional investments beyond the minimum
25 investment by a designated high impact business authorized
26 under subdivision (a)(3)(A) of Section 5.5 of the Illinois

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

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

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

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1allocable to Illinois and the denominator of which is Illinois
2base income, and further multiplying the product by the tax
3rate imposed by subsections (a) and (b) of this Section.
4 Any credit earned on or after December 31, 1986 under this
5subsection which is unused in the year the credit is computed
6because it exceeds the tax liability imposed by subsections (a)
7and (b) for that year (whether it exceeds the original
8liability or the liability as later amended) may be carried
9forward and applied to the tax liability imposed by subsections
10(a) and (b) of the 5 taxable years following the excess credit
11year, provided that no credit may be carried forward to any
12year ending on or after December 31, 2003. This credit shall be
13applied first to the earliest year for which there is a
14liability. If there is a credit under this subsection from more
15than one tax year that is available to offset a liability the
16earliest credit arising under this subsection shall be applied
17first.
18 If, during any taxable year ending on or after December 31,
191986, the tax imposed by subsections (c) and (d) of this
20Section for which a taxpayer has claimed a credit under this
21subsection (i) is reduced, the amount of credit for such tax
22shall also be reduced. Such reduction shall be determined by
23recomputing the credit to take into account the reduced tax
24imposed by subsections (c) and (d). If any portion of the
25reduced amount of credit has been carried to a different
26taxable year, an amended return shall be filed for such taxable

HB4002- 121 -LRB100 11337 MJP 21715 b
1year to reduce the amount of credit claimed.
2 (j) Training expense credit. Beginning with tax years
3ending on or after December 31, 1986 and prior to December 31,
42003, a taxpayer shall be allowed a credit against the tax
5imposed by subsections (a) and (b) under this Section for all
6amounts paid or accrued, on behalf of all persons employed by
7the taxpayer in Illinois or Illinois residents employed outside
8of Illinois by a taxpayer, for educational or vocational
9training in semi-technical or technical fields or semi-skilled
10or skilled fields, which were deducted from gross income in the
11computation of taxable income. The credit against the tax
12imposed by subsections (a) and (b) shall be 1.6% of such
13training expenses. For partners, shareholders of subchapter S
14corporations, and owners of limited liability companies, if the
15liability company is treated as a partnership for purposes of
16federal and State income taxation, there shall be allowed a
17credit under this subsection (j) to be determined in accordance
18with the determination of income and distributive share of
19income under Sections 702 and 704 and subchapter S of the
20Internal Revenue Code.
21 Any credit allowed under this subsection which is unused in
22the year the credit is earned may be carried forward to each of
23the 5 taxable years following the year for which the credit is
24first computed until it is used. This credit shall be applied
25first to the earliest year for which there is a liability. If
26there is a credit under this subsection from more than one tax

HB4002- 122 -LRB100 11337 MJP 21715 b
1year that is available to offset a liability the earliest
2credit arising under this subsection shall be applied first. No
3carryforward credit may be claimed in any tax year ending on or
4after December 31, 2003.
5 (k) Research and development credit. For tax years ending
6after July 1, 1990 and prior to December 31, 2003, and
7beginning again for tax years ending on or after December 31,
82004, and ending prior to January 1, 2016, a taxpayer shall be
9allowed a credit against the tax imposed by subsections (a) and
10(b) of this Section for increasing research activities in this
11State. The credit allowed against the tax imposed by
12subsections (a) and (b) shall be equal to 6 1/2% of the
13qualifying expenditures for increasing research activities in
14this State. For partners, shareholders of subchapter S
15corporations, and owners of limited liability companies, if the
16liability company is treated as a partnership for purposes of
17federal and State income taxation, there shall be allowed a
18credit under this subsection to be determined in accordance
19with the determination of income and distributive share of
20income under Sections 702 and 704 and subchapter S of the
21Internal Revenue Code.
22 For purposes of this subsection, "qualifying expenditures"
23means the qualifying expenditures as defined for the federal
24credit for increasing research activities which would be
25allowable under Section 41 of the Internal Revenue Code and
26which are conducted in this State, "qualifying expenditures for

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1increasing research activities in this State" means the excess
2of qualifying expenditures for the taxable year in which
3incurred over qualifying expenditures for the base period,
4"qualifying expenditures for the base period" means the average
5of the qualifying expenditures for each year in the base
6period, and "base period" means the 3 taxable years immediately
7preceding the taxable year for which the determination is being
8made.
9 Any credit in excess of the tax liability for the taxable
10year may be carried forward. A taxpayer may elect to have the
11unused credit shown on its final completed return carried over
12as a credit against the tax liability for the following 5
13taxable years or until it has been fully used, whichever occurs
14first; provided that no credit earned in a tax year ending
15prior to December 31, 2003 may be carried forward to any year
16ending on or after December 31, 2003.
17 If an unused credit is carried forward to a given year from
182 or more earlier years, that credit arising in the earliest
19year will be applied first against the tax liability for the
20given year. If a tax liability for the given year still
21remains, the credit from the next earliest year will then be
22applied, and so on, until all credits have been used or no tax
23liability for the given year remains. Any remaining unused
24credit or credits then will be carried forward to the next
25following year in which a tax liability is incurred, except
26that no credit can be carried forward to a year which is more

HB4002- 124 -LRB100 11337 MJP 21715 b
1than 5 years after the year in which the expense for which the
2credit is given was incurred.
3 No inference shall be drawn from this amendatory Act of the
491st General Assembly in construing this Section for taxable
5years beginning before January 1, 1999.
6 (l) Environmental Remediation Tax Credit.
7 (i) For tax years ending after December 31, 1997 and on
8 or before December 31, 2001, a taxpayer shall be allowed a
9 credit against the tax imposed by subsections (a) and (b)
10 of this Section for certain amounts paid for unreimbursed
11 eligible remediation costs, as specified in this
12 subsection. For purposes of this Section, "unreimbursed
13 eligible remediation costs" means costs approved by the
14 Illinois Environmental Protection Agency ("Agency") under
15 Section 58.14 of the Environmental Protection Act that were
16 paid in performing environmental remediation at a site for
17 which a No Further Remediation Letter was issued by the
18 Agency and recorded under Section 58.10 of the
19 Environmental Protection Act. The credit must be claimed
20 for the taxable year in which Agency approval of the
21 eligible remediation costs is granted. The credit is not
22 available to any taxpayer if the taxpayer or any related
23 party caused or contributed to, in any material respect, a
24 release of regulated substances on, in, or under the site
25 that was identified and addressed by the remedial action
26 pursuant to the Site Remediation Program of the

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

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

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1 (iii) For purposes of this Section, the term "site"
2 shall have the same meaning as under Section 58.2 of the
3 Environmental Protection Act.
4 (m) Education expense credit. Beginning with tax years
5ending after December 31, 1999, a taxpayer who is the custodian
6of one or more qualifying pupils shall be allowed a credit
7against the tax imposed by subsections (a) and (b) of this
8Section for qualified education expenses incurred on behalf of
9the qualifying pupils. The credit shall be equal to 25% of
10qualified education expenses, but in no event may the total
11credit under this subsection claimed by a family that is the
12custodian of qualifying pupils exceed $500. In no event shall a
13credit under this subsection reduce the taxpayer's liability
14under this Act to less than zero. This subsection is exempt
15from the provisions of Section 250 of this Act.
16 For purposes of this subsection:
17 "Qualifying pupils" means individuals who (i) are
18residents of the State of Illinois, (ii) are under the age of
1921 at the close of the school year for which a credit is
20sought, and (iii) during the school year for which a credit is
21sought were full-time pupils enrolled in a kindergarten through
22twelfth grade education program at any school, as defined in
23this subsection.
24 "Qualified education expense" means the amount incurred on
25behalf of a qualifying pupil in excess of $250 for tuition,
26book fees, and lab fees at the school in which the pupil is

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

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1 be claimed for the taxable year in which Agency approval of
2 the eligible remediation costs is granted. The credit is
3 not available to any taxpayer if the taxpayer or any
4 related party caused or contributed to, in any material
5 respect, a release of regulated substances on, in, or under
6 the site that was identified and addressed by the remedial
7 action pursuant to the Site Remediation Program of the
8 Environmental Protection Act. Determinations as to credit
9 availability for purposes of this Section shall be made
10 consistent with rules adopted by the Pollution Control
11 Board pursuant to the Illinois Administrative Procedure
12 Act for the administration and enforcement of Section 58.9
13 of the Environmental Protection Act. For purposes of this
14 Section, "taxpayer" includes a person whose tax attributes
15 the taxpayer has succeeded to under Section 381 of the
16 Internal Revenue Code and "related party" includes the
17 persons disallowed a deduction for losses by paragraphs
18 (b), (c), and (f)(1) of Section 267 of the Internal Revenue
19 Code by virtue of being a related taxpayer, as well as any
20 of its partners. The credit allowed against the tax imposed
21 by subsections (a) and (b) shall be equal to 25% of the
22 unreimbursed eligible remediation costs in excess of
23 $100,000 per site.
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. This
2 credit shall be applied first to the earliest year for
3 which there is a liability. If there is a credit under this
4 subsection from more than one tax year that is available to
5 offset a liability, the earliest credit arising under this
6 subsection shall be applied first. A credit allowed under
7 this subsection may be sold to a buyer as part of a sale of
8 all or part of the remediation site for which the credit
9 was granted. The purchaser of a remediation site and the
10 tax credit shall succeed to the unused credit and remaining
11 carry-forward period of the seller. To perfect the
12 transfer, the assignor shall record the transfer in the
13 chain of title for the site and provide written notice to
14 the Director of the Illinois Department of Revenue of the
15 assignor's intent to sell the remediation site and the
16 amount of the tax credit to be transferred as a portion of
17 the sale. In no event may a credit be transferred to any
18 taxpayer if the taxpayer or a related party would not be
19 eligible under the provisions of subsection (i).
20 (iii) For purposes of this Section, the term "site"
21 shall have the same meaning as under Section 58.2 of the
22 Environmental Protection Act.
23 (o) For each of taxable years during the Compassionate Use
24of Medical Cannabis Pilot Program, a surcharge is imposed on
25all taxpayers on income arising from the sale or exchange of
26capital assets, depreciable business property, real property

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1used in the trade or business, and Section 197 intangibles of
2an organization registrant under the Compassionate Use of
3Medical Cannabis Pilot Program Act. The amount of the surcharge
4is equal to the amount of federal income tax liability for the
5taxable year attributable to those sales and exchanges. The
6surcharge imposed does not apply if:
7 (1) the medical cannabis cultivation center
8 registration, medical cannabis dispensary registration, or
9 the property of a registration is transferred as a result
10 of any of the following:
11 (A) bankruptcy, a receivership, or a debt
12 adjustment initiated by or against the initial
13 registration or the substantial owners of the initial
14 registration;
15 (B) cancellation, revocation, or termination of
16 any registration by the Illinois Department of Public
17 Health;
18 (C) a determination by the Illinois Department of
19 Public Health that transfer of the registration is in
20 the best interests of Illinois qualifying patients as
21 defined by the Compassionate Use of Medical Cannabis
22 Pilot Program Act;
23 (D) the death of an owner of the equity interest in
24 a registrant;
25 (E) the acquisition of a controlling interest in
26 the stock or substantially all of the assets of a

HB4002- 132 -LRB100 11337 MJP 21715 b
1 publicly traded company;
2 (F) a transfer by a parent company to a wholly
3 owned subsidiary; or
4 (G) the transfer or sale to or by one person to
5 another person where both persons were initial owners
6 of the registration when the registration was issued;
7 or
8 (2) the cannabis cultivation center registration,
9 medical cannabis dispensary registration, or the
10 controlling interest in a registrant's 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.
15(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
16eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,
17eff. 7-16-14.)
18 (35 ILCS 5/303) (from Ch. 120, par. 3-303)
19 Sec. 303. (a) In general. Any item of capital gain or loss,
20and any item of income from rents or royalties from real or
21tangible personal property, interest, dividends, and patent or
22copyright royalties, and prizes awarded under the Illinois
23Lottery Law, and, for taxable years ending on or after December
2431, 2017, wagering and gambling winnings from Illinois sources
25as set forth in subsection (e-1) of this Section, to the extent

HB4002- 133 -LRB100 11337 MJP 21715 b
1such item constitutes nonbusiness income, together with any
2item of deduction directly allocable thereto, shall be
3allocated by any person other than a resident as provided in
4this Section.
5 (b) Capital gains and losses.
6 (1) Real property. Capital gains and losses from sales
7 or exchanges of real property are allocable to this State
8 if the property is located in this State.
9 (2) Tangible personal property. Capital gains and
10 losses from sales or exchanges of tangible personal
11 property are allocable to this State if, at the time of
12 such sale or exchange:
13 (A) The property had its situs in this State; or
14 (B) The taxpayer had its commercial domicile in
15 this State and was not taxable in the state in which
16 the property had its situs.
17 (3) Intangibles. Capital gains and losses from sales or
18 exchanges of intangible personal property are allocable to
19 this State if the taxpayer had its commercial domicile in
20 this State at the time of such sale or exchange.
21 (c) Rents and royalties.
22 (1) Real property. Rents and royalties from real
23 property are allocable to this State if the property is
24 located in this State.
25 (2) Tangible personal property. Rents and royalties
26 from tangible personal property are allocable to this

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

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1 (A) If and to the extent that the patent or
2 copyright is utilized by the payer in this State; or
3 (B) If and to the extent that the patent or
4 copyright is utilized by the payer in a state in which
5 the taxpayer is not taxable with respect to such
6 royalties and, at the time such royalties were paid or
7 accrued, the taxpayer had its commercial domicile in
8 this State.
9 (2) Utilization.
10 (A) A patent is utilized in a state to the extent
11 that it is employed in production, fabrication,
12 manufacturing or other processing in the state or to
13 the extent that a patented product is produced in the
14 state. If the basis of receipts from patent royalties
15 does not permit allocation to states or if the
16 accounting procedures do not reflect states of
17 utilization, the patent is utilized in this State if
18 the taxpayer has its commercial domicile in this State.
19 (B) A copyright is utilized in a state to the
20 extent that printing or other publication originates
21 in the state. If the basis of receipts from copyright
22 royalties does not permit allocation to states or if
23 the accounting procedures do not reflect states of
24 utilization, the copyright is utilized in this State if
25 the taxpayer has its commercial domicile in this State.
26 (e) Illinois lottery prizes. Prizes awarded under the

HB4002- 136 -LRB100 11337 MJP 21715 b
1Illinois Lottery Law are allocable to this State. Payments
2received in taxable years ending on or after December 31, 2013,
3from the assignment of a prize under Section 13.1 of the
4Illinois Lottery Law are allocable to this State.
5 (e-1) Wagering and gambling winnings. Payments received in
6taxable years ending on or after December 31, 2017 of winnings
7from pari-mutuel wagering conducted at a wagering facility
8licensed under the Illinois Horse Racing Act of 1975 and from
9gambling games conducted on a riverboat or in a casino or
10electronic gaming facility licensed under the Illinois
11Gambling Act are allocable to this State.
12 (e-5) Unemployment benefits. Unemployment benefits paid by
13the Illinois Department of Employment Security are allocable to
14this State.
15 (f) Taxability in other state. For purposes of allocation
16of income pursuant to this Section, a taxpayer is taxable in
17another state if:
18 (1) In that state he is subject to a net income tax, a
19 franchise tax measured by net income, a franchise tax for
20 the privilege of doing business, or a corporate stock tax;
21 or
22 (2) That state has jurisdiction to subject the taxpayer
23 to a net income tax regardless of whether, in fact, the
24 state does or does not.
25 (g) Cross references.
26 (1) For allocation of interest and dividends by persons

HB4002- 137 -LRB100 11337 MJP 21715 b
1 other than residents, see Section 301(c)(2).
2 (2) For allocation of nonbusiness income by residents,
3 see Section 301(a).
4(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)
5 (35 ILCS 5/304) (from Ch. 120, par. 3-304)
6 Sec. 304. Business income of persons other than residents.
7 (a) In general. The business income of a person other than
8a resident shall be allocated to this State if such person's
9business income is derived solely from this State. If a person
10other than a resident derives business income from this State
11and one or more other states, then, for tax years ending on or
12before December 30, 1998, and except as otherwise provided by
13this Section, such person's business income shall be
14apportioned to this State by multiplying the income by a
15fraction, the numerator of which is the sum of the property
16factor (if any), the payroll factor (if any) and 200% of the
17sales factor (if any), and the denominator of which is 4
18reduced by the number of factors other than the sales factor
19which have a denominator of zero and by an additional 2 if the
20sales factor has a denominator of zero. For tax years ending on
21or after December 31, 1998, and except as otherwise provided by
22this Section, persons other than residents who derive business
23income from this State and one or more other states shall
24compute their apportionment factor by weighting their
25property, payroll, and sales factors as provided in subsection

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1(h) of this Section.
2 (1) Property factor.
3 (A) The property factor is a fraction, the numerator of
4 which is the average value of the person's real and
5 tangible personal property owned or rented and used in the
6 trade or business in this State during the taxable year and
7 the denominator of which is the average value of all the
8 person's real and tangible personal property owned or
9 rented and used in the trade or business during the taxable
10 year.
11 (B) Property owned by the person is valued at its
12 original cost. Property rented by the person is valued at 8
13 times the net annual rental rate. Net annual rental rate is
14 the annual rental rate paid by the person less any annual
15 rental rate received by the person from sub-rentals.
16 (C) The average value of property shall be determined
17 by averaging the values at the beginning and ending of the
18 taxable year but the Director may require the averaging of
19 monthly values during the taxable year if reasonably
20 required to reflect properly the average value of the
21 person's property.
22 (2) Payroll factor.
23 (A) The payroll factor is a fraction, the numerator of
24 which is the total amount paid in this State during the
25 taxable year by the person for compensation, and the
26 denominator of which is the total compensation paid

HB4002- 139 -LRB100 11337 MJP 21715 b
1 everywhere during the taxable year.
2 (B) Compensation is paid in this State if:
3 (i) The individual's service is performed entirely
4 within this State;
5 (ii) The individual's service is performed both
6 within and without this State, but the service
7 performed without this State is incidental to the
8 individual's service performed within this State; or
9 (iii) Some of the service is performed within this
10 State and either the base of operations, or if there is
11 no base of operations, the place from which the service
12 is directed or controlled is within this State, or the
13 base of operations or the place from which the service
14 is directed or controlled is not in any state in which
15 some part of the service is performed, but the
16 individual's residence is in this State.
17 (iv) Compensation paid to nonresident professional
18 athletes.
19 (a) General. The Illinois source income of a
20 nonresident individual who is a member of a
21 professional athletic team includes the portion of the
22 individual's total compensation for services performed
23 as a member of a professional athletic team during the
24 taxable year which the number of duty days spent within
25 this State performing services for the team in any
26 manner during the taxable year bears to the total

HB4002- 140 -LRB100 11337 MJP 21715 b
1 number of duty days spent both within and without this
2 State during the taxable year.
3 (b) Travel days. Travel days that do not involve
4 either a game, practice, team meeting, or other similar
5 team event are not considered duty days spent in this
6 State. However, such travel days are considered in the
7 total duty days spent both within and without this
8 State.
9 (c) Definitions. For purposes of this subpart
10 (iv):
11 (1) The term "professional athletic team"
12 includes, but is not limited to, any professional
13 baseball, basketball, football, soccer, or hockey
14 team.
15 (2) The term "member of a professional
16 athletic team" includes those employees who are
17 active players, players on the disabled list, and
18 any other persons required to travel and who travel
19 with and perform services on behalf of a
20 professional athletic team on a regular basis.
21 This includes, but is not limited to, coaches,
22 managers, and trainers.
23 (3) Except as provided in items (C) and (D) of
24 this subpart (3), the term "duty days" means all
25 days during the taxable year from the beginning of
26 the professional athletic team's official

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

HB4002- 142 -LRB100 11337 MJP 21715 b
1 the professional athletic team's official
2 pre-season training period through the last
3 game in which the team competes, or is
4 scheduled to compete, shall begin on the day
5 that person joins the team. Conversely, duty
6 days for any person who leaves a team during
7 this period shall end on the day that person
8 leaves the team. Where a person switches teams
9 during a taxable year, a separate duty-day
10 calculation shall be made for the period the
11 person was with each team.
12 (D) Days for which a member of a
13 professional athletic team is not compensated
14 and is not performing services for the team in
15 any manner, including days when such member of
16 a professional athletic team has been
17 suspended without pay and prohibited from
18 performing any services for the team, shall not
19 be treated as duty days.
20 (E) Days for which a member of a
21 professional athletic team is on the disabled
22 list and does not conduct rehabilitation
23 activities at facilities of the team, and is
24 not otherwise performing services for the team
25 in Illinois, shall not be considered duty days
26 spent in this State. All days on the disabled

HB4002- 143 -LRB100 11337 MJP 21715 b
1 list, however, are considered to be included in
2 total duty days spent both within and without
3 this State.
4 (4) The term "total compensation for services
5 performed as a member of a professional athletic
6 team" means the total compensation received during
7 the taxable year for services performed:
8 (A) from the beginning of the official
9 pre-season training period through the last
10 game in which the team competes or is scheduled
11 to compete during that taxable year; and
12 (B) during the taxable year on a date which
13 does not fall within the foregoing period
14 (e.g., participation in instructional leagues,
15 the "All Star Game", or promotional caravans).
16 This compensation shall include, but is not
17 limited to, salaries, wages, bonuses as described
18 in this subpart, and any other type of compensation
19 paid during the taxable year to a member of a
20 professional athletic team for services performed
21 in that year. This compensation does not include
22 strike benefits, severance pay, termination pay,
23 contract or option year buy-out payments,
24 expansion or relocation payments, or any other
25 payments not related to services performed for the
26 team.

HB4002- 144 -LRB100 11337 MJP 21715 b
1 For purposes of this subparagraph, "bonuses"
2 included in "total compensation for services
3 performed as a member of a professional athletic
4 team" subject to the allocation described in
5 Section 302(c)(1) are: bonuses earned as a result
6 of play (i.e., performance bonuses) during the
7 season, including bonuses paid for championship,
8 playoff or "bowl" games played by a team, or for
9 selection to all-star league or other honorary
10 positions; and bonuses paid for signing a
11 contract, unless the payment of the signing bonus
12 is not conditional upon the signee playing any
13 games for the team or performing any subsequent
14 services for the team or even making the team, the
15 signing bonus is payable separately from the
16 salary and any other compensation, and the signing
17 bonus is nonrefundable.
18 (3) Sales factor.
19 (A) The sales factor is a fraction, the numerator of
20 which is the total sales of the person in this State during
21 the taxable year, and the denominator of which is the total
22 sales of the person everywhere during the taxable year.
23 (B) Sales of tangible personal property are in this
24 State if:
25 (i) The property is delivered or shipped to a
26 purchaser, other than the United States government,

HB4002- 145 -LRB100 11337 MJP 21715 b
1 within this State regardless of the f. o. b. point or
2 other conditions of the sale; or
3 (ii) The property is shipped from an office, store,
4 warehouse, factory or other place of storage in this
5 State and either the purchaser is the United States
6 government or the person is not taxable in the state of
7 the purchaser; provided, however, that premises owned
8 or leased by a person who has independently contracted
9 with the seller for the printing of newspapers,
10 periodicals or books shall not be deemed to be an
11 office, store, warehouse, factory or other place of
12 storage for purposes of this Section. Sales of tangible
13 personal property are not in this State if the seller
14 and purchaser would be members of the same unitary
15 business group but for the fact that either the seller
16 or purchaser is a person with 80% or more of total
17 business activity outside of the United States and the
18 property is purchased for resale.
19 (B-1) Patents, copyrights, trademarks, and similar
20 items of intangible personal property.
21 (i) Gross receipts from the licensing, sale, or
22 other disposition of a patent, copyright, trademark,
23 or similar item of intangible personal property, other
24 than gross receipts governed by paragraph (B-7) of this
25 item (3), are in this State to the extent the item is
26 utilized in this State during the year the gross

HB4002- 146 -LRB100 11337 MJP 21715 b
1 receipts are included in gross income.
2 (ii) Place of utilization.
3 (I) A patent is utilized in a state to the
4 extent that it is employed in production,
5 fabrication, manufacturing, or other processing in
6 the state or to the extent that a patented product
7 is produced in the state. If a patent is utilized
8 in more than one state, the extent to which it is
9 utilized in any one state shall be a fraction equal
10 to the gross receipts of the licensee or purchaser
11 from sales or leases of items produced,
12 fabricated, manufactured, or processed within that
13 state using the patent and of patented items
14 produced within that state, divided by the total of
15 such gross receipts for all states in which the
16 patent is utilized.
17 (II) A copyright is utilized in a state to the
18 extent that printing or other publication
19 originates in the state. If a copyright is utilized
20 in more than one state, the extent to which it is
21 utilized in any one state shall be a fraction equal
22 to the gross receipts from sales or licenses of
23 materials printed or published in that state
24 divided by the total of such gross receipts for all
25 states in which the copyright is utilized.
26 (III) Trademarks and other items of intangible

HB4002- 147 -LRB100 11337 MJP 21715 b
1 personal property governed by this paragraph (B-1)
2 are utilized in the state in which the commercial
3 domicile of the licensee or purchaser is located.
4 (iii) If the state of utilization of an item of
5 property governed by this paragraph (B-1) cannot be
6 determined from the taxpayer's books and records or
7 from the books and records of any person related to the
8 taxpayer within the meaning of Section 267(b) of the
9 Internal Revenue Code, 26 U.S.C. 267, the gross
10 receipts attributable to that item shall be excluded
11 from both the numerator and the denominator of the
12 sales factor.
13 (B-2) Gross receipts from the license, sale, or other
14 disposition of patents, copyrights, trademarks, and
15 similar items of intangible personal property, other than
16 gross receipts governed by paragraph (B-7) of this item
17 (3), may be included in the numerator or denominator of the
18 sales factor only if gross receipts from licenses, sales,
19 or other disposition of such items comprise more than 50%
20 of the taxpayer's total gross receipts included in gross
21 income during the tax year and during each of the 2
22 immediately preceding tax years; provided that, when a
23 taxpayer is a member of a unitary business group, such
24 determination shall be made on the basis of the gross
25 receipts of the entire unitary business group.
26 (B-5) For taxable years ending on or after December 31,

HB4002- 148 -LRB100 11337 MJP 21715 b
1 2008, except as provided in subsections (ii) through (vii),
2 receipts from the sale of telecommunications service or
3 mobile telecommunications service are in this State if the
4 customer's service address is in this State.
5 (i) For purposes of this subparagraph (B-5), the
6 following terms have the following meanings:
7 "Ancillary services" means services that are
8 associated with or incidental to the provision of
9 "telecommunications services", including but not
10 limited to "detailed telecommunications billing",
11 "directory assistance", "vertical service", and "voice
12 mail services".
13 "Air-to-Ground Radiotelephone service" means a
14 radio service, as that term is defined in 47 CFR 22.99,
15 in which common carriers are authorized to offer and
16 provide radio telecommunications service for hire to
17 subscribers in aircraft.
18 "Call-by-call Basis" means any method of charging
19 for telecommunications services where the price is
20 measured by individual calls.
21 "Communications Channel" means a physical or
22 virtual path of communications over which signals are
23 transmitted between or among customer channel
24 termination points.
25 "Conference bridging service" means an "ancillary
26 service" that links two or more participants of an

HB4002- 149 -LRB100 11337 MJP 21715 b
1 audio or video conference call and may include the
2 provision of a telephone number. "Conference bridging
3 service" does not include the "telecommunications
4 services" used to reach the conference bridge.
5 "Customer Channel Termination Point" means the
6 location where the customer either inputs or receives
7 the communications.
8 "Detailed telecommunications billing service"
9 means an "ancillary service" of separately stating
10 information pertaining to individual calls on a
11 customer's billing statement.
12 "Directory assistance" means an "ancillary
13 service" of providing telephone number information,
14 and/or address information.
15 "Home service provider" means the facilities based
16 carrier or reseller with which the customer contracts
17 for the provision of mobile telecommunications
18 services.
19 "Mobile telecommunications service" means
20 commercial mobile radio service, as defined in Section
21 20.3 of Title 47 of the Code of Federal Regulations as
22 in effect on June 1, 1999.
23 "Place of primary use" means the street address
24 representative of where the customer's use of the
25 telecommunications service primarily occurs, which
26 must be the residential street address or the primary

HB4002- 150 -LRB100 11337 MJP 21715 b
1 business street address of the customer. In the case of
2 mobile telecommunications services, "place of primary
3 use" must be within the licensed service area of the
4 home service provider.
5 "Post-paid telecommunication service" means the
6 telecommunications service obtained by making a
7 payment on a call-by-call basis either through the use
8 of a credit card or payment mechanism such as a bank
9 card, travel card, credit card, or debit card, or by
10 charge made to a telephone number which is not
11 associated with the origination or termination of the
12 telecommunications service. A post-paid calling
13 service includes telecommunications service, except a
14 prepaid wireless calling service, that would be a
15 prepaid calling service except it is not exclusively a
16 telecommunication service.
17 "Prepaid telecommunication service" means the
18 right to access exclusively telecommunications
19 services, which must be paid for in advance and which
20 enables the origination of calls using an access number
21 or authorization code, whether manually or
22 electronically dialed, and that is sold in
23 predetermined units or dollars of which the number
24 declines with use in a known amount.
25 "Prepaid Mobile telecommunication service" means a
26 telecommunications service that provides the right to

HB4002- 151 -LRB100 11337 MJP 21715 b
1 utilize mobile wireless service as well as other
2 non-telecommunication services, including but not
3 limited to ancillary services, which must be paid for
4 in advance that is sold in predetermined units or
5 dollars of which the number declines with use in a
6 known amount.
7 "Private communication service" means a
8 telecommunication service that entitles the customer
9 to exclusive or priority use of a communications
10 channel or group of channels between or among
11 termination points, regardless of the manner in which
12 such channel or channels are connected, and includes
13 switching capacity, extension lines, stations, and any
14 other associated services that are provided in
15 connection with the use of such channel or channels.
16 "Service address" means:
17 (a) The location of the telecommunications
18 equipment to which a customer's call is charged and
19 from which the call originates or terminates,
20 regardless of where the call is billed or paid;
21 (b) If the location in line (a) is not known,
22 service address means the origination point of the
23 signal of the telecommunications services first
24 identified by either the seller's
25 telecommunications system or in information
26 received by the seller from its service provider

HB4002- 152 -LRB100 11337 MJP 21715 b
1 where the system used to transport such signals is
2 not that of the seller; and
3 (c) If the locations in line (a) and line (b)
4 are not known, the service address means the
5 location of the customer's place of primary use.
6 "Telecommunications service" means the electronic
7 transmission, conveyance, or routing of voice, data,
8 audio, video, or any other information or signals to a
9 point, or between or among points. The term
10 "telecommunications service" includes such
11 transmission, conveyance, or routing in which computer
12 processing applications are used to act on the form,
13 code or protocol of the content for purposes of
14 transmission, conveyance or routing without regard to
15 whether such service is referred to as voice over
16 Internet protocol services or is classified by the
17 Federal Communications Commission as enhanced or value
18 added. "Telecommunications service" does not include:
19 (a) Data processing and information services
20 that allow data to be generated, acquired, stored,
21 processed, or retrieved and delivered by an
22 electronic transmission to a purchaser when such
23 purchaser's primary purpose for the underlying
24 transaction is the processed data or information;
25 (b) Installation or maintenance of wiring or
26 equipment on a customer's premises;

HB4002- 153 -LRB100 11337 MJP 21715 b
1 (c) Tangible personal property;
2 (d) Advertising, including but not limited to
3 directory advertising; .
4 (e) Billing and collection services provided
5 to third parties;
6 (f) Internet access service;
7 (g) Radio and television audio and video
8 programming services, regardless of the medium,
9 including the furnishing of transmission,
10 conveyance and routing of such services by the
11 programming service provider. Radio and television
12 audio and video programming services shall include
13 but not be limited to cable service as defined in
14 47 USC 522(6) and audio and video programming
15 services delivered by commercial mobile radio
16 service providers, as defined in 47 CFR 20.3;
17 (h) "Ancillary services"; or
18 (i) Digital products "delivered
19 electronically", including but not limited to
20 software, music, video, reading materials or ring
21 tones.
22 "Vertical service" means an "ancillary service"
23 that is offered in connection with one or more
24 "telecommunications services", which offers advanced
25 calling features that allow customers to identify
26 callers and to manage multiple calls and call

HB4002- 154 -LRB100 11337 MJP 21715 b
1 connections, including "conference bridging services".
2 "Voice mail service" means an "ancillary service"
3 that enables the customer to store, send or receive
4 recorded messages. "Voice mail service" does not
5 include any "vertical services" that the customer may
6 be required to have in order to utilize the "voice mail
7 service".
8 (ii) Receipts from the sale of telecommunications
9 service sold on an individual call-by-call basis are in
10 this State if either of the following applies:
11 (a) The call both originates and terminates in
12 this State.
13 (b) The call either originates or terminates
14 in this State and the service address is located in
15 this State.
16 (iii) Receipts from the sale of postpaid
17 telecommunications service at retail are in this State
18 if the origination point of the telecommunication
19 signal, as first identified by the service provider's
20 telecommunication system or as identified by
21 information received by the seller from its service
22 provider if the system used to transport
23 telecommunication signals is not the seller's, is
24 located in this State.
25 (iv) Receipts from the sale of prepaid
26 telecommunications service or prepaid mobile

HB4002- 155 -LRB100 11337 MJP 21715 b
1 telecommunications service at retail are in this State
2 if the purchaser obtains the prepaid card or similar
3 means of conveyance at a location in this State.
4 Receipts from recharging a prepaid telecommunications
5 service or mobile telecommunications service is in
6 this State if the purchaser's billing information
7 indicates a location in this State.
8 (v) Receipts from the sale of private
9 communication services are in this State as follows:
10 (a) 100% of receipts from charges imposed at
11 each channel termination point in this State.
12 (b) 100% of receipts from charges for the total
13 channel mileage between each channel termination
14 point in this State.
15 (c) 50% of the total receipts from charges for
16 service segments when those segments are between 2
17 customer channel termination points, 1 of which is
18 located in this State and the other is located
19 outside of this State, which segments are
20 separately charged.
21 (d) The receipts from charges for service
22 segments with a channel termination point located
23 in this State and in two or more other states, and
24 which segments are not separately billed, are in
25 this State based on a percentage determined by
26 dividing the number of customer channel

HB4002- 156 -LRB100 11337 MJP 21715 b
1 termination points in this State by the total
2 number of customer channel termination points.
3 (vi) Receipts from charges for ancillary services
4 for telecommunications service sold to customers at
5 retail are in this State if the customer's primary
6 place of use of telecommunications services associated
7 with those ancillary services is in this State. If the
8 seller of those ancillary services cannot determine
9 where the associated telecommunications are located,
10 then the ancillary services shall be based on the
11 location of the purchaser.
12 (vii) Receipts to access a carrier's network or
13 from the sale of telecommunication services or
14 ancillary services for resale are in this State as
15 follows:
16 (a) 100% of the receipts from access fees
17 attributable to intrastate telecommunications
18 service that both originates and terminates in
19 this State.
20 (b) 50% of the receipts from access fees
21 attributable to interstate telecommunications
22 service if the interstate call either originates
23 or terminates in this State.
24 (c) 100% of the receipts from interstate end
25 user access line charges, if the customer's
26 service address is in this State. As used in this

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1 subdivision, "interstate end user access line
2 charges" includes, but is not limited to, the
3 surcharge approved by the federal communications
4 commission and levied pursuant to 47 CFR 69.
5 (d) Gross receipts from sales of
6 telecommunication services or from ancillary
7 services for telecommunications services sold to
8 other telecommunication service providers for
9 resale shall be sourced to this State using the
10 apportionment concepts used for non-resale
11 receipts of telecommunications services if the
12 information is readily available to make that
13 determination. If the information is not readily
14 available, then the taxpayer may use any other
15 reasonable and consistent method.
16 (B-7) For taxable years ending on or after December 31,
17 2008, receipts from the sale of broadcasting services are
18 in this State if the broadcasting services are received in
19 this State. For purposes of this paragraph (B-7), the
20 following terms have the following meanings:
21 "Advertising revenue" means consideration received
22 by the taxpayer in exchange for broadcasting services
23 or allowing the broadcasting of commercials or
24 announcements in connection with the broadcasting of
25 film or radio programming, from sponsorships of the
26 programming, or from product placements in the

HB4002- 158 -LRB100 11337 MJP 21715 b
1 programming.
2 "Audience factor" means the ratio that the
3 audience or subscribers located in this State of a
4 station, a network, or a cable system bears to the
5 total audience or total subscribers for that station,
6 network, or cable system. The audience factor for film
7 or radio programming shall be determined by reference
8 to the books and records of the taxpayer or by
9 reference to published rating statistics provided the
10 method used by the taxpayer is consistently used from
11 year to year for this purpose and fairly represents the
12 taxpayer's activity in this State.
13 "Broadcast" or "broadcasting" or "broadcasting
14 services" means the transmission or provision of film
15 or radio programming, whether through the public
16 airwaves, by cable, by direct or indirect satellite
17 transmission, or by any other means of communication,
18 either through a station, a network, or a cable system.
19 "Film" or "film programming" means the broadcast
20 on television of any and all performances, events, or
21 productions, including but not limited to news,
22 sporting events, plays, stories, or other literary,
23 commercial, educational, or artistic works, either
24 live or through the use of video tape, disc, or any
25 other type of format or medium. Each episode of a
26 series of films produced for television shall

HB4002- 159 -LRB100 11337 MJP 21715 b
1 constitute separate "film" notwithstanding that the
2 series relates to the same principal subject and is
3 produced during one or more tax periods.
4 "Radio" or "radio programming" means the broadcast
5 on radio of any and all performances, events, or
6 productions, including but not limited to news,
7 sporting events, plays, stories, or other literary,
8 commercial, educational, or artistic works, either
9 live or through the use of an audio tape, disc, or any
10 other format or medium. Each episode in a series of
11 radio programming produced for radio broadcast shall
12 constitute a separate "radio programming"
13 notwithstanding that the series relates to the same
14 principal subject and is produced during one or more
15 tax periods.
16 (i) In the case of advertising revenue from
17 broadcasting, the customer is the advertiser and
18 the service is received in this State if the
19 commercial domicile of the advertiser is in this
20 State.
21 (ii) In the case where film or radio
22 programming is broadcast by a station, a network,
23 or a cable system for a fee or other remuneration
24 received from the recipient of the broadcast, the
25 portion of the service that is received in this
26 State is measured by the portion of the recipients

HB4002- 160 -LRB100 11337 MJP 21715 b
1 of the broadcast located in this State.
2 Accordingly, the fee or other remuneration for
3 such service that is included in the Illinois
4 numerator of the sales factor is the total of those
5 fees or other remuneration received from
6 recipients in Illinois. For purposes of this
7 paragraph, a taxpayer may determine the location
8 of the recipients of its broadcast using the
9 address of the recipient shown in its contracts
10 with the recipient or using the billing address of
11 the recipient in the taxpayer's records.
12 (iii) In the case where film or radio
13 programming is broadcast by a station, a network,
14 or a cable system for a fee or other remuneration
15 from the person providing the programming, the
16 portion of the broadcast service that is received
17 by such station, network, or cable system in this
18 State is measured by the portion of recipients of
19 the broadcast located in this State. Accordingly,
20 the amount of revenue related to such an
21 arrangement that is included in the Illinois
22 numerator of the sales factor is the total fee or
23 other total remuneration from the person providing
24 the programming related to that broadcast
25 multiplied by the Illinois audience factor for
26 that broadcast.

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

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1 (B-8) Gross receipts from winnings under the Illinois
2 Lottery Law from the assignment of a prize under Section
3 13.1 of the Illinois Lottery Law are received in this
4 State. This paragraph (B-8) applies only to taxable years
5 ending on or after December 31, 2013.
6 (B-9) For taxable years ending on or after December 31,
7 2017, gross receipts from winnings from pari-mutuel
8 wagering conducted at a wagering facility licensed under
9 the Illinois Horse Racing Act of 1975 or from winnings from
10 gambling games conducted on a riverboat or in a casino or
11 electronic gaming facility licensed under the Illinois
12 Gambling Act are in this State.
13 (C) For taxable years ending before December 31, 2008,
14 sales, other than sales governed by paragraphs (B), (B-1),
15 (B-2), and (B-8) are in this State if:
16 (i) The income-producing activity is performed in
17 this State; or
18 (ii) The income-producing activity is performed
19 both within and without this State and a greater
20 proportion of the income-producing activity is
21 performed within this State than without this State,
22 based on performance costs.
23 (C-5) For taxable years ending on or after December 31,
24 2008, sales, other than sales governed by paragraphs (B),
25 (B-1), (B-2), (B-5), and (B-7), are in this State if any of
26 the following criteria are met:

HB4002- 163 -LRB100 11337 MJP 21715 b
1 (i) Sales from the sale or lease of real property
2 are in this State if the property is located in this
3 State.
4 (ii) Sales from the lease or rental of tangible
5 personal property are in this State if the property is
6 located in this State during the rental period. Sales
7 from the lease or rental of tangible personal property
8 that is characteristically moving property, including,
9 but not limited to, motor vehicles, rolling stock,
10 aircraft, vessels, or mobile equipment are in this
11 State to the extent that the property is used in this
12 State.
13 (iii) In the case of interest, net gains (but not
14 less than zero) and other items of income from
15 intangible personal property, the sale is in this State
16 if:
17 (a) in the case of a taxpayer who is a dealer
18 in the item of intangible personal property within
19 the meaning of Section 475 of the Internal Revenue
20 Code, the income or gain is received from a
21 customer in this State. For purposes of this
22 subparagraph, a customer is in this State if the
23 customer is an individual, trust or estate who is a
24 resident of this State and, for all other
25 customers, if the customer's commercial domicile
26 is in this State. Unless the dealer has actual

HB4002- 164 -LRB100 11337 MJP 21715 b
1 knowledge of the residence or commercial domicile
2 of a customer during a taxable year, the customer
3 shall be deemed to be a customer in this State if
4 the billing address of the customer, as shown in
5 the records of the dealer, is in this State; or
6 (b) in all other cases, if the
7 income-producing activity of the taxpayer is
8 performed in this State or, if the
9 income-producing activity of the taxpayer is
10 performed both within and without this State, if a
11 greater proportion of the income-producing
12 activity of the taxpayer is performed within this
13 State than in any other state, based on performance
14 costs.
15 (iv) Sales of services are in this State if the
16 services are received in this State. For the purposes
17 of this section, gross receipts from the performance of
18 services provided to a corporation, partnership, or
19 trust may only be attributed to a state where that
20 corporation, partnership, or trust has a fixed place of
21 business. If the state where the services are received
22 is not readily determinable or is a state where the
23 corporation, partnership, or trust receiving the
24 service does not have a fixed place of business, the
25 services shall be deemed to be received at the location
26 of the office of the customer from which the services

HB4002- 165 -LRB100 11337 MJP 21715 b
1 were ordered in the regular course of the customer's
2 trade or business. If the ordering office cannot be
3 determined, the services shall be deemed to be received
4 at the office of the customer to which the services are
5 billed. If the taxpayer is not taxable in the state in
6 which the services are received, the sale must be
7 excluded from both the numerator and the denominator of
8 the sales factor. The Department shall adopt rules
9 prescribing where specific types of service are
10 received, including, but not limited to, publishing,
11 and utility service.
12 (D) For taxable years ending on or after December 31,
13 1995, the following items of income shall not be included
14 in the numerator or denominator of the sales factor:
15 dividends; amounts included under Section 78 of the
16 Internal Revenue Code; and Subpart F income as defined in
17 Section 952 of the Internal Revenue Code. No inference
18 shall be drawn from the enactment of this paragraph (D) in
19 construing this Section for taxable years ending before
20 December 31, 1995.
21 (E) Paragraphs (B-1) and (B-2) shall apply to tax years
22 ending on or after December 31, 1999, provided that a
23 taxpayer may elect to apply the provisions of these
24 paragraphs to prior tax years. Such election shall be made
25 in the form and manner prescribed by the Department, shall
26 be irrevocable, and shall apply to all tax years; provided

HB4002- 166 -LRB100 11337 MJP 21715 b
1 that, if a taxpayer's Illinois income tax liability for any
2 tax year, as assessed under Section 903 prior to January 1,
3 1999, was computed in a manner contrary to the provisions
4 of paragraphs (B-1) or (B-2), no refund shall be payable to
5 the taxpayer for that tax year to the extent such refund is
6 the result of applying the provisions of paragraph (B-1) or
7 (B-2) retroactively. In the case of a unitary business
8 group, such election shall apply to all members of such
9 group for every tax year such group is in existence, but
10 shall not apply to any taxpayer for any period during which
11 that taxpayer is not a member of such group.
12 (b) Insurance companies.
13 (1) In general. Except as otherwise provided by
14 paragraph (2), business income of an insurance company for
15 a taxable year shall be apportioned to this State by
16 multiplying such income by a fraction, the numerator of
17 which is the direct premiums written for insurance upon
18 property or risk in this State, and the denominator of
19 which is the direct premiums written for insurance upon
20 property or risk everywhere. For purposes of this
21 subsection, the term "direct premiums written" means the
22 total amount of direct premiums written, assessments and
23 annuity considerations as reported for the taxable year on
24 the annual statement filed by the company with the Illinois
25 Director of Insurance in the form approved by the National
26 Convention of Insurance Commissioners or such other form as

HB4002- 167 -LRB100 11337 MJP 21715 b
1 may be prescribed in lieu thereof.
2 (2) Reinsurance. If the principal source of premiums
3 written by an insurance company consists of premiums for
4 reinsurance accepted by it, the business income of such
5 company shall be apportioned to this State by multiplying
6 such income by a fraction, the numerator of which is the
7 sum of (i) direct premiums written for insurance upon
8 property or risk in this State, plus (ii) premiums written
9 for reinsurance accepted in respect of property or risk in
10 this State, and the denominator of which is the sum of
11 (iii) direct premiums written for insurance upon property
12 or risk everywhere, plus (iv) premiums written for
13 reinsurance accepted in respect of property or risk
14 everywhere. For purposes of this paragraph, premiums
15 written for reinsurance accepted in respect of property or
16 risk in this State, whether or not otherwise determinable,
17 may, at the election of the company, be determined on the
18 basis of the proportion which premiums written for
19 reinsurance accepted from companies commercially domiciled
20 in Illinois bears to premiums written for reinsurance
21 accepted from all sources, or, alternatively, in the
22 proportion which the sum of the direct premiums written for
23 insurance upon property or risk in this State by each
24 ceding company from which reinsurance is accepted bears to
25 the sum of the total direct premiums written by each such
26 ceding company for the taxable year. The election made by a

HB4002- 168 -LRB100 11337 MJP 21715 b
1 company under this paragraph for its first taxable year
2 ending on or after December 31, 2011, shall be binding for
3 that company for that taxable year and for all subsequent
4 taxable years, and may be altered only with the written
5 permission of the Department, which shall not be
6 unreasonably withheld.
7 (c) Financial organizations.
8 (1) In general. For taxable years ending before
9 December 31, 2008, business income of a financial
10 organization shall be apportioned to this State by
11 multiplying such income by a fraction, the numerator of
12 which is its business income from sources within this
13 State, and the denominator of which is its business income
14 from all sources. For the purposes of this subsection, the
15 business income of a financial organization from sources
16 within this State is the sum of the amounts referred to in
17 subparagraphs (A) through (E) following, but excluding the
18 adjusted income of an international banking facility as
19 determined in paragraph (2):
20 (A) Fees, commissions or other compensation for
21 financial services rendered within this State;
22 (B) Gross profits from trading in stocks, bonds or
23 other securities managed within this State;
24 (C) Dividends, and interest from Illinois
25 customers, which are received within this State;
26 (D) Interest charged to customers at places of

HB4002- 169 -LRB100 11337 MJP 21715 b
1 business maintained within this State for carrying
2 debit balances of margin accounts, without deduction
3 of any costs incurred in carrying such accounts; and
4 (E) Any other gross income resulting from the
5 operation as a financial organization within this
6 State. In computing the amounts referred to in
7 paragraphs (A) through (E) of this subsection, any
8 amount received by a member of an affiliated group
9 (determined under Section 1504(a) of the Internal
10 Revenue Code but without reference to whether any such
11 corporation is an "includible corporation" under
12 Section 1504(b) of the Internal Revenue Code) from
13 another member of such group shall be included only to
14 the extent such amount exceeds expenses of the
15 recipient directly related thereto.
16 (2) International Banking Facility. For taxable years
17 ending before December 31, 2008:
18 (A) Adjusted Income. The adjusted income of an
19 international banking facility is its income reduced
20 by the amount of the floor amount.
21 (B) Floor Amount. The floor amount shall be the
22 amount, if any, determined by multiplying the income of
23 the international banking facility by a fraction, not
24 greater than one, which is determined as follows:
25 (i) The numerator shall be:
26 The average aggregate, determined on a

HB4002- 170 -LRB100 11337 MJP 21715 b
1 quarterly basis, of the financial organization's
2 loans to banks in foreign countries, to foreign
3 domiciled borrowers (except where secured
4 primarily by real estate) and to foreign
5 governments and other foreign official
6 institutions, as reported for its branches,
7 agencies and offices within the state on its
8 "Consolidated Report of Condition", Schedule A,
9 Lines 2.c., 5.b., and 7.a., which was filed with
10 the Federal Deposit Insurance Corporation and
11 other regulatory authorities, for the year 1980,
12 minus
13 The average aggregate, determined on a
14 quarterly basis, of such loans (other than loans of
15 an international banking facility), as reported by
16 the financial institution for its branches,
17 agencies and offices within the state, on the
18 corresponding Schedule and lines of the
19 Consolidated Report of Condition for the current
20 taxable year, provided, however, that in no case
21 shall the amount determined in this clause (the
22 subtrahend) exceed the amount determined in the
23 preceding clause (the minuend); and
24 (ii) the denominator shall be the average
25 aggregate, determined on a quarterly basis, of the
26 international banking facility's loans to banks in

HB4002- 171 -LRB100 11337 MJP 21715 b
1 foreign countries, to foreign domiciled borrowers
2 (except where secured primarily by real estate)
3 and to foreign governments and other foreign
4 official institutions, which were recorded in its
5 financial accounts for the current taxable year.
6 (C) Change to Consolidated Report of Condition and
7 in Qualification. In the event the Consolidated Report
8 of Condition which is filed with the Federal Deposit
9 Insurance Corporation and other regulatory authorities
10 is altered so that the information required for
11 determining the floor amount is not found on Schedule
12 A, lines 2.c., 5.b. and 7.a., the financial institution
13 shall notify the Department and the Department may, by
14 regulations or otherwise, prescribe or authorize the
15 use of an alternative source for such information. The
16 financial institution shall also notify the Department
17 should its international banking facility fail to
18 qualify as such, in whole or in part, or should there
19 be any amendment or change to the Consolidated Report
20 of Condition, as originally filed, to the extent such
21 amendment or change alters the information used in
22 determining the floor amount.
23 (3) For taxable years ending on or after December 31,
24 2008, the business income of a financial organization shall
25 be apportioned to this State by multiplying such income by
26 a fraction, the numerator of which is its gross receipts

HB4002- 172 -LRB100 11337 MJP 21715 b
1 from sources in this State or otherwise attributable to
2 this State's marketplace and the denominator of which is
3 its gross receipts everywhere during the taxable year.
4 "Gross receipts" for purposes of this subparagraph (3)
5 means gross income, including net taxable gain on
6 disposition of assets, including securities and money
7 market instruments, when derived from transactions and
8 activities in the regular course of the financial
9 organization's trade or business. The following examples
10 are illustrative:
11 (i) Receipts from the lease or rental of real or
12 tangible personal property are in this State if the
13 property is located in this State during the rental
14 period. Receipts from the lease or rental of tangible
15 personal property that is characteristically moving
16 property, including, but not limited to, motor
17 vehicles, rolling stock, aircraft, vessels, or mobile
18 equipment are from sources in this State to the extent
19 that the property is used in this State.
20 (ii) Interest income, commissions, fees, gains on
21 disposition, and other receipts from assets in the
22 nature of loans that are secured primarily by real
23 estate or tangible personal property are from sources
24 in this State if the security is located in this State.
25 (iii) Interest income, commissions, fees, gains on
26 disposition, and other receipts from consumer loans

HB4002- 173 -LRB100 11337 MJP 21715 b
1 that are not secured by real or tangible personal
2 property are from sources in this State if the debtor
3 is a resident of this State.
4 (iv) Interest income, commissions, fees, gains on
5 disposition, and other receipts from commercial loans
6 and installment obligations that are not secured by
7 real or tangible personal property are from sources in
8 this State if the proceeds of the loan are to be
9 applied in this State. If it cannot be determined where
10 the funds are to be applied, the income and receipts
11 are from sources in this State if the office of the
12 borrower from which the loan was negotiated in the
13 regular course of business is located in this State. If
14 the location of this office cannot be determined, the
15 income and receipts shall be excluded from the
16 numerator and denominator of the sales factor.
17 (v) Interest income, fees, gains on disposition,
18 service charges, merchant discount income, and other
19 receipts from credit card receivables are from sources
20 in this State if the card charges are regularly billed
21 to a customer in this State.
22 (vi) Receipts from the performance of services,
23 including, but not limited to, fiduciary, advisory,
24 and brokerage services, are in this State if the
25 services are received in this State within the meaning
26 of subparagraph (a)(3)(C-5)(iv) of this Section.

HB4002- 174 -LRB100 11337 MJP 21715 b
1 (vii) Receipts from the issuance of travelers
2 checks and money orders are from sources in this State
3 if the checks and money orders are issued from a
4 location within this State.
5 (viii) Receipts from investment assets and
6 activities and trading assets and activities are
7 included in the receipts factor as follows:
8 (1) Interest, dividends, net gains (but not
9 less than zero) and other income from investment
10 assets and activities from trading assets and
11 activities shall be included in the receipts
12 factor. Investment assets and activities and
13 trading assets and activities include but are not
14 limited to: investment securities; trading account
15 assets; federal funds; securities purchased and
16 sold under agreements to resell or repurchase;
17 options; futures contracts; forward contracts;
18 notional principal contracts such as swaps;
19 equities; and foreign currency transactions. With
20 respect to the investment and trading assets and
21 activities described in subparagraphs (A) and (B)
22 of this paragraph, the receipts factor shall
23 include the amounts described in such
24 subparagraphs.
25 (A) The receipts factor shall include the
26 amount by which interest from federal funds

HB4002- 175 -LRB100 11337 MJP 21715 b
1 sold and securities purchased under resale
2 agreements exceeds interest expense on federal
3 funds purchased and securities sold under
4 repurchase agreements.
5 (B) The receipts factor shall include the
6 amount by which interest, dividends, gains and
7 other income from trading assets and
8 activities, including but not limited to
9 assets and activities in the matched book, in
10 the arbitrage book, and foreign currency
11 transactions, exceed amounts paid in lieu of
12 interest, amounts paid in lieu of dividends,
13 and losses from such assets and activities.
14 (2) The numerator of the receipts factor
15 includes interest, dividends, net gains (but not
16 less than zero), and other income from investment
17 assets and activities and from trading assets and
18 activities described in paragraph (1) of this
19 subsection that are attributable to this State.
20 (A) The amount of interest, dividends, net
21 gains (but not less than zero), and other
22 income from investment assets and activities
23 in the investment account to be attributed to
24 this State and included in the numerator is
25 determined by multiplying all such income from
26 such assets and activities by a fraction, the

HB4002- 176 -LRB100 11337 MJP 21715 b
1 numerator of which is the gross income from
2 such assets and activities which are properly
3 assigned to a fixed place of business of the
4 taxpayer within this State and the denominator
5 of which is the gross income from all such
6 assets and activities.
7 (B) The amount of interest from federal
8 funds sold and purchased and from securities
9 purchased under resale agreements and
10 securities sold under repurchase agreements
11 attributable to this State and included in the
12 numerator is determined by multiplying the
13 amount described in subparagraph (A) of
14 paragraph (1) of this subsection from such
15 funds and such securities by a fraction, the
16 numerator of which is the gross income from
17 such funds and such securities which are
18 properly assigned to a fixed place of business
19 of the taxpayer within this State and the
20 denominator of which is the gross income from
21 all such funds and such securities.
22 (C) The amount of interest, dividends,
23 gains, and other income from trading assets and
24 activities, including but not limited to
25 assets and activities in the matched book, in
26 the arbitrage book and foreign currency

HB4002- 177 -LRB100 11337 MJP 21715 b
1 transactions (but excluding amounts described
2 in subparagraphs (A) or (B) of this paragraph),
3 attributable to this State and included in the
4 numerator is determined by multiplying the
5 amount described in subparagraph (B) of
6 paragraph (1) of this subsection by a fraction,
7 the numerator of which is the gross income from
8 such trading assets and activities which are
9 properly assigned to a fixed place of business
10 of the taxpayer within this State and the
11 denominator of which is the gross income from
12 all such assets and activities.
13 (D) Properly assigned, for purposes of
14 this paragraph (2) of this subsection, means
15 the investment or trading asset or activity is
16 assigned to the fixed place of business with
17 which it has a preponderance of substantive
18 contacts. An investment or trading asset or
19 activity assigned by the taxpayer to a fixed
20 place of business without the State shall be
21 presumed to have been properly assigned if:
22 (i) the taxpayer has assigned, in the
23 regular course of its business, such asset
24 or activity on its records to a fixed place
25 of business consistent with federal or
26 state regulatory requirements;

HB4002- 178 -LRB100 11337 MJP 21715 b
1 (ii) such assignment on its records is
2 based upon substantive contacts of the
3 asset or activity to such fixed place of
4 business; and
5 (iii) the taxpayer uses such records
6 reflecting assignment of such assets or
7 activities for the filing of all state and
8 local tax returns for which an assignment
9 of such assets or activities to a fixed
10 place of business is required.
11 (E) The presumption of proper assignment
12 of an investment or trading asset or activity
13 provided in subparagraph (D) of paragraph (2)
14 of this subsection may be rebutted upon a
15 showing by the Department, supported by a
16 preponderance of the evidence, that the
17 preponderance of substantive contacts
18 regarding such asset or activity did not occur
19 at the fixed place of business to which it was
20 assigned on the taxpayer's records. If the
21 fixed place of business that has a
22 preponderance of substantive contacts cannot
23 be determined for an investment or trading
24 asset or activity to which the presumption in
25 subparagraph (D) of paragraph (2) of this
26 subsection does not apply or with respect to

HB4002- 179 -LRB100 11337 MJP 21715 b
1 which that presumption has been rebutted, that
2 asset or activity is properly assigned to the
3 state in which the taxpayer's commercial
4 domicile is located. For purposes of this
5 subparagraph (E), it shall be presumed,
6 subject to rebuttal, that taxpayer's
7 commercial domicile is in the state of the
8 United States or the District of Columbia to
9 which the greatest number of employees are
10 regularly connected with the management of the
11 investment or trading income or out of which
12 they are working, irrespective of where the
13 services of such employees are performed, as of
14 the last day of the taxable year.
15 (4) (Blank).
16 (5) (Blank).
17 (c-1) Federally regulated exchanges. For taxable years
18ending on or after December 31, 2012, business income of a
19federally regulated exchange shall, at the option of the
20federally regulated exchange, be apportioned to this State by
21multiplying such income by a fraction, the numerator of which
22is its business income from sources within this State, and the
23denominator of which is its business income from all sources.
24For purposes of this subsection, the business income within
25this State of a federally regulated exchange is the sum of the
26following:

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

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

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

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

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1 (4) For taxable years ending on or after December 31,
2 2008, business income derived from furnishing airline
3 transportation services shall be apportioned to this State
4 by multiplying such income by a fraction, the numerator of
5 which is the revenue miles of the person in this State, and
6 the denominator of which is the revenue miles of the person
7 everywhere. For purposes of this paragraph, a revenue mile
8 is the transportation of one passenger or one net ton of
9 freight the distance of one mile for a consideration. If a
10 person is engaged in the transportation of both passengers
11 and freight, the fraction above referred to shall be
12 determined by means of an average of the passenger revenue
13 mile fraction and the freight revenue mile fraction,
14 weighted to reflect the person's relative gross receipts
15 from passenger and freight airline transportation.
16 (e) Combined apportionment. Where 2 or more persons are
17engaged in a unitary business as described in subsection
18(a)(27) of Section 1501, a part of which is conducted in this
19State by one or more members of the group, the business income
20attributable to this State by any such member or members shall
21be apportioned by means of the combined apportionment method.
22 (f) Alternative allocation. If the allocation and
23apportionment provisions of subsections (a) through (e) and of
24subsection (h) do not, for taxable years ending before December
2531, 2008, fairly represent the extent of a person's business
26activity in this State, or, for taxable years ending on or

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1after December 31, 2008, fairly represent the market for the
2person's goods, services, or other sources of business income,
3the person may petition for, or the Director may, without a
4petition, permit or require, in respect of all or any part of
5the person's business activity, if reasonable:
6 (1) Separate accounting;
7 (2) The exclusion of any one or more factors;
8 (3) The inclusion of one or more additional factors
9 which will fairly represent the person's business
10 activities or market in this State; or
11 (4) The employment of any other method to effectuate an
12 equitable allocation and apportionment of the person's
13 business income.
14 (g) Cross reference. For allocation of business income by
15residents, see Section 301(a).
16 (h) For tax years ending on or after December 31, 1998, the
17apportionment factor of persons who apportion their business
18income to this State under subsection (a) shall be equal to:
19 (1) for tax years ending on or after December 31, 1998
20 and before December 31, 1999, 16 2/3% of the property
21 factor plus 16 2/3% of the payroll factor plus 66 2/3% of
22 the sales factor;
23 (2) for tax years ending on or after December 31, 1999
24 and before December 31, 2000, 8 1/3% of the property factor
25 plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
26 factor;

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1 (3) for tax years ending on or after December 31, 2000,
2 the sales factor.
3If, in any tax year ending on or after December 31, 1998 and
4before December 31, 2000, the denominator of the payroll,
5property, or sales factor is zero, the apportionment factor
6computed in paragraph (1) or (2) of this subsection for that
7year shall be divided by an amount equal to 100% minus the
8percentage weight given to each factor whose denominator is
9equal to zero.
10(Source: P.A. 98-478, eff. 1-1-14; 98-496, eff. 1-1-14; 98-756,
11eff. 7-16-14; 99-642, eff. 7-28-16; revised 11-14-16.)
12 (35 ILCS 5/710) (from Ch. 120, par. 7-710)
13 Sec. 710. Withholding from lottery winnings.
14 (a) In general.
15 (1) Any person making a payment to a resident or
16 nonresident of winnings under the Illinois Lottery Law and
17 not required to withhold Illinois income tax from such
18 payment under Subsection (b) of Section 701 of this Act
19 because those winnings are not subject to Federal income
20 tax withholding, must withhold Illinois income tax from
21 such payment at a rate equal to the percentage tax rate for
22 individuals provided in subsection (b) of Section 201,
23 provided that withholding is not required if such payment
24 of winnings is less than $1,000.
25 (2) In the case of an assignment of a lottery prize

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1 under Section 13.1 of the Illinois Lottery Law, any person
2 making a payment of the purchase price after December 31,
3 2013, shall withhold from the amount of each payment at a
4 rate equal to the percentage tax rate for individuals
5 provided in subsection (b) of Section 201.
6 (3) Any person making a payment after December 31, 2017
7 to a resident or nonresident of winnings from pari-mutuel
8 wagering conducted at a wagering facility licensed under
9 the Illinois Horse Racing Act of 1975 or from gambling
10 games conducted on a riverboat or in a casino or electronic
11 gaming facility licensed under the Illinois Gambling Act
12 must withhold Illinois income tax from such payment at a
13 rate equal to the percentage tax rate for individuals
14 provided in subsection (b) of Section 201, provided that
15 the person making the payment is required to withhold under
16 Section 3402(q) of the Internal Revenue Code.
17 (b) Credit for taxes withheld. Any amount withheld under
18Subsection (a) shall be a credit against the Illinois income
19tax liability of the person to whom the payment of winnings was
20made for the taxable year in which that person incurred an
21Illinois income tax liability with respect to those winnings.
22(Source: P.A. 98-496, eff. 1-1-14.)
23 Section 90-23. The Property Tax Code is amended by adding
24Section 15-144 as follows:

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1 (35 ILCS 200/15-144 new)
2 Sec. 15-144. Chicago Casino Development Authority. All
3property owned by the Chicago Casino Development Authority is
4exempt. Any property owned by the Chicago Casino Development
5Authority and leased to any other entity is not exempt.
6 Section 90-24. The Illinois Municipal Code is amended by
7adding Section 8-10-2.6 as follows:
8 (65 ILCS 5/8-10-2.6 new)
9 Sec. 8-10-2.6. Chicago Casino Development Authority.
10Except as otherwise provided in the Chicago Casino Development
11Authority Act, this Division 10 applies to purchase orders and
12contracts relating to the Chicago Casino Development
13Authority.
14 Section 90-25. 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

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

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1 (c) The books, accounts, records, and files of the limited
2purpose branch's transactions shall be maintained at the
3licensee's licensed location. The licensee shall notify the
4Director of the licensed location at which the books, accounts,
5records, and files shall be maintained.
6 (d) The licensee shall prominently display at the limited
7purpose branch the address and telephone number of the
8licensee's licensed location.
9 (e) No other business shall be conducted at the site of the
10limited purpose branch unless authorized by the Director.
11 (f) The Director shall make and enforce reasonable rules
12for the conduct of a limited purpose branch.
13 (g) A limited purpose branch may not be located within
141,000 feet of a facility operated by an inter-track wagering
15licensee or an organization licensee subject to the Illinois
16Horse Racing Act of 1975, on a riverboat or in a casino subject
17to the Illinois Riverboat Gambling Act, or within 1,000 feet of
18the location at which the riverboat docks or within 1,000 feet
19of a casino.
20(Source: P.A. 90-437, eff. 1-1-98.)
21 Section 90-35. The Illinois Horse Racing Act of 1975 is
22amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
2320, 21, 24, 25, 26, 26.8, 26.9, 27, 30, 30.5, 31, 32.1, 36, 40,
24and 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
2534.3, and 56 as follows:

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

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1 Sec. 3.11. "Organization Licensee" means any person
2receiving an organization license from the Board to conduct a
3race meeting or meetings. With respect only to electronic
4gaming, "organization licensee" includes the authorization for
5an electronic gaming license under subsection (a) of Section 56
6of this Act.
7(Source: P.A. 79-1185.)
8 (230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)
9 Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
10system of wagering" means a form of wagering on the outcome of
11horse races in which wagers are made in various denominations
12on a horse or horses and all wagers for each race are pooled
13and held by a licensee for distribution in a manner approved by
14the Board. "Pari-mutuel system of wagering" shall not include
15wagering on historic races. Wagers may be placed via any method
16or at any location authorized under this Act.
17(Source: P.A. 96-762, eff. 8-25-09.)
18 (230 ILCS 5/3.31 new)
19 Sec. 3.31. Adjusted gross receipts. "Adjusted gross
20receipts" means the gross receipts less winnings paid to
21wagerers.
22 (230 ILCS 5/3.32 new)
23 Sec. 3.32. Gross receipts. "Gross receipts" means the total

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

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

HB4002- 195 -LRB100 11337 MJP 21715 b
1other state, or the United States.
2 (c) No member of the Board or employee shall engage in any
3political activity.
4 For the purposes of this subsection (c):
5 "Political" means any activity in support of or in
6connection with any campaign for State or local elective office
7or any political organization, but does not include activities
8(i) relating to the support or opposition of any executive,
9legislative, or administrative action (as those terms are
10defined in Section 2 of the Lobbyist Registration Act), (ii)
11relating to collective bargaining, or (iii) that are otherwise
12in furtherance of the person's official State duties or
13governmental and public service functions.
14 "Political organization" means a party, committee,
15association, fund, or other organization (whether or not
16incorporated) that is required to file a statement of
17organization with the State Board of Elections or county clerk
18under Section 9-3 of the Election Code, but only with regard to
19those activities that require filing with the State Board of
20Elections or county clerk.
21 (d) Board members and employees may not engage in
22communications or any activity that may cause or have the
23appearance of causing a conflict of interest. A conflict of
24interest exists if a situation influences or creates the
25appearance that it may influence judgment or performance of
26regulatory duties and responsibilities. This prohibition shall

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1extend to any act identified by Board action that, in the
2judgment of the Board, could represent the potential for or the
3appearance of a conflict of interest.
4 (e) Board members and employees may not accept any gift,
5gratuity, service, compensation, travel, lodging, or thing of
6value, with the exception of unsolicited items of an incidental
7nature, from any person, corporation, limited liability
8company, or entity doing business with the Board.
9 (f) A Board member or employee shall not use or attempt to
10use his or her official position to secure, or attempt to
11secure, any privilege, advantage, favor, or influence for
12himself or herself or others. No Board member or employee,
13within a period of one year immediately preceding nomination by
14the Governor or employment, shall have been employed or
15received compensation or fees for services from a person or
16entity, or its parent or affiliate, that has engaged in
17business with the Board, a licensee or a licensee under the
18Illinois Gambling Act. In addition, all Board members and
19employees are subject to the restrictions set forth in Section
205-45 of the State Officials and Employees Ethics Act.
21(Source: P.A. 89-16, eff. 5-30-95.)
22 (230 ILCS 5/9) (from Ch. 8, par. 37-9)
23 Sec. 9. The Board shall have all powers necessary and
24proper to fully and effectively execute the provisions of this
25Act, including, but not limited to, the following:

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1 (a) The Board is vested with jurisdiction and supervision
2over all race meetings in this State, over all licensees doing
3business in this State, over all occupation licensees, and over
4all persons on the facilities of any licensee. Such
5jurisdiction shall include the power to issue licenses to the
6Illinois Department of Agriculture authorizing the pari-mutuel
7system of wagering on harness and Quarter Horse races held (1)
8at the Illinois State Fair in Sangamon County, and (2) at the
9DuQuoin State Fair in Perry County. The jurisdiction of the
10Board shall also include the power to issue licenses to county
11fairs which are eligible to receive funds pursuant to the
12Agricultural Fair Act, as now or hereafter amended, or their
13agents, authorizing the pari-mutuel system of wagering on horse
14races conducted at the county fairs receiving such licenses.
15Such licenses shall be governed by subsection (n) of this
16Section.
17 Upon application, the Board shall issue a license to the
18Illinois Department of Agriculture to conduct harness and
19Quarter Horse races at the Illinois State Fair and at the
20DuQuoin State Fairgrounds during the scheduled dates of each
21fair. The Board shall not require and the Department of
22Agriculture shall be exempt from the requirements of Sections
2315.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
24(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
25and 25. The Board and the Department of Agriculture may extend
26any or all of these exemptions to any contractor or agent

HB4002- 198 -LRB100 11337 MJP 21715 b
1engaged by the Department of Agriculture to conduct its race
2meetings when the Board determines that this would best serve
3the public interest and the interest of horse racing.
4 Notwithstanding any provision of law to the contrary, it
5shall be lawful for any licensee to operate pari-mutuel
6wagering or contract with the Department of Agriculture to
7operate pari-mutuel wagering at the DuQuoin State Fairgrounds
8or for the Department to enter into contracts with a licensee,
9employ its owners, employees or agents and employ such other
10occupation licensees as the Department deems necessary in
11connection with race meetings and wagerings.
12 (b) The Board is vested with the full power to promulgate
13reasonable rules and regulations for the purpose of
14administering the provisions of this Act and to prescribe
15reasonable rules, regulations and conditions under which all
16horse race meetings or wagering in the State shall be
17conducted. Such reasonable rules and regulations are to provide
18for the prevention of practices detrimental to the public
19interest and to promote the best interests of horse racing and
20to impose penalties for violations thereof.
21 (c) The Board, and any person or persons to whom it
22delegates this power, is vested with the power to enter the
23facilities and other places of business of any licensee to
24determine whether there has been compliance with the provisions
25of this Act and its rules and regulations.
26 (d) The Board, and any person or persons to whom it

HB4002- 199 -LRB100 11337 MJP 21715 b
1delegates this power, is vested with the authority to
2investigate alleged violations of the provisions of this Act,
3its reasonable rules and regulations, orders and final
4decisions; the Board shall take appropriate disciplinary
5action against any licensee or occupation licensee for
6violation thereof or institute appropriate legal action for the
7enforcement thereof.
8 (e) The Board, and any person or persons to whom it
9delegates this power, may eject or exclude from any race
10meeting or the facilities of any licensee, or any part thereof,
11any occupation licensee or any other individual whose conduct
12or reputation is such that his presence on those facilities
13may, in the opinion of the Board, call into question the
14honesty and integrity of horse racing or wagering or interfere
15with the orderly conduct of horse racing or wagering; provided,
16however, that no person shall be excluded or ejected from the
17facilities of any licensee solely on the grounds of race,
18color, creed, national origin, ancestry, or sex. The power to
19eject or exclude an occupation licensee or other individual may
20be exercised for just cause by the licensee or the Board,
21subject to subsequent hearing by the Board as to the propriety
22of said exclusion.
23 (f) The Board is vested with the power to acquire,
24establish, maintain and operate (or provide by contract to
25maintain and operate) testing laboratories and related
26facilities, for the purpose of conducting saliva, blood, urine

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

HB4002- 201 -LRB100 11337 MJP 21715 b
1by the rules and regulations of the Board: an Executive
2Director; a State director of mutuels; State veterinarians and
3representatives to take saliva, blood, urine and other tests on
4horses; licensing personnel; revenue inspectors; and State
5seasonal employees (excluding admission ticket sellers and
6mutuel clerks). All of those named and appointed as provided in
7this subsection shall serve during the pleasure of the Board;
8their compensation shall be determined by the Board and be paid
9in the same manner as other employees of the Board under this
10Act.
11 (i) The Board shall require that there shall be 3 stewards
12at each horse race meeting, at least 2 of whom shall be named
13and appointed by the Board. Stewards appointed or approved by
14the Board, while performing duties required by this Act or by
15the Board, shall be entitled to the same rights and immunities
16as granted to Board members and Board employees in Section 10
17of this Act.
18 (j) The Board may discharge any Board employee who fails or
19refuses for any reason to comply with the rules and regulations
20of the Board, or who, in the opinion of the Board, is guilty of
21fraud, dishonesty or who is proven to be incompetent. The Board
22shall have no right or power to determine who shall be
23officers, directors or employees of any licensee, or their
24salaries except the Board may, by rule, require that all or any
25officials or employees in charge of or whose duties relate to
26the actual running of races be approved by the Board.

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

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

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

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

HB4002- 206 -LRB100 11337 MJP 21715 b
1 (5) whose license or permit has been suspended, revoked
2 or denied for just cause in any other state.
3 (d) The Board may suspend or revoke any occupation license:
4 (1) for violation of any of the provisions of this Act;
5 or
6 (2) for violation of any of the rules or regulations of
7 the Board; or
8 (3) for any cause which, if known to the Board, would
9 have justified the Board in refusing to issue such
10 occupation license; or
11 (4) for any other just cause.
12 (e) Each applicant shall submit his or her fingerprints
13to the Department of State Police in the form and manner
14prescribed by the Department of State Police. These
15fingerprints shall be checked against the fingerprint records
16now and hereafter filed in the Department of State Police and
17Federal Bureau of Investigation criminal history records
18databases. The Department of State Police shall charge a fee
19for conducting the criminal history records check, which shall
20be deposited in the State Police Services Fund and shall not
21exceed the actual cost of the records check. The Department of
22State Police shall furnish, pursuant to positive
23identification, records of conviction to the Board. Each
24applicant for licensure shall submit with his occupation
25license application, on forms provided by the Board, 2 sets of
26his fingerprints. All such applicants shall appear in person at

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

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

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1 (b) In addition to the filing fee imposed by subsection (a)
2of $1000 and the fees provided in subsection (j) of Section 20,
3each organization licensee shall pay a license fee of $100 for
4each racing program on which its daily pari-mutuel handle is
5$400,000 or more but less than $700,000, and a license fee of
6$200 for each racing program on which its daily pari-mutuel
7handle is $700,000 or more. The additional fees required to be
8paid under this Section by this amendatory Act of 1982 shall be
9remitted by the organization licensee to the Illinois Racing
10Board with each day's graduated privilege tax or pari-mutuel
11tax and breakage as provided under Section 27. Beginning on the
12date when any organization licensee begins conducting
13electronic gaming pursuant to an electronic gaming license
14issued under the Illinois Gambling Act, the license fee imposed
15by this subsection (b) shall be $200 for each racing program on
16which the organization licensee's daily pari-mutuel handle is
17$100,000 or more, but less than $400,000, and the license fee
18imposed by this subsection (b) shall be $400 for each racing
19program on which the organization licensee's daily pari-mutuel
20handle is $400,000 or more.
21 (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
22Municipal Code," approved May 29, 1961, as now or hereafter
23amended, shall not apply to any license under this Act.
24(Source: P.A. 97-1060, eff. 8-24-12.)
25 (230 ILCS 5/19) (from Ch. 8, par. 37-19)

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

HB4002- 211 -LRB100 11337 MJP 21715 b
1 any person ineligible to be granted an organization license
2 if the Board determines, based on circumstances of any such
3 case, that the granting of a license would not be
4 detrimental to the interests of horse racing and of the
5 public;
6 (4) to any person who does not at the time of
7 application for the organization license own or have a
8 contract or lease for the possession of a finished race
9 track suitable for the type of racing intended to be held
10 by the applicant and for the accommodation of the public.
11 (b) (Blank) Horse racing on Sunday shall be prohibited
12unless authorized by ordinance or referendum of the
13municipality in which a race track or any of its appurtenances
14or facilities are located, or utilized.
15 (c) If any person is ineligible to receive an organization
16license because of any of the matters set forth in subsection
17(a) (2) or subsection (a) (3) of this Section, any other or
18separate person that either (i) controls, directly or
19indirectly, such ineligible person or (ii) is controlled,
20directly or indirectly, by such ineligible person or by a
21person which controls, directly or indirectly, such ineligible
22person shall also be ineligible.
23(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
24 (230 ILCS 5/20) (from Ch. 8, par. 37-20)
25 Sec. 20. (a) Any person desiring to conduct a horse race

HB4002- 212 -LRB100 11337 MJP 21715 b
1meeting may apply to the Board for an organization license. The
2application shall be made on a form prescribed and furnished by
3the Board. The application shall specify:
4 (1) the dates on which it intends to conduct the horse
5 race meeting, which dates shall be provided under Section
6 21;
7 (2) the hours of each racing day between which it
8 intends to hold or conduct horse racing at such meeting;
9 (3) the location where it proposes to conduct the
10 meeting; and
11 (4) any other information the Board may reasonably
12 require.
13 (b) A separate application for an organization license
14shall be filed for each horse race meeting which such person
15proposes to hold. Any such application, if made by an
16individual, or by any individual as trustee, shall be signed
17and verified under oath by such individual. If the application
18is made by individuals, then it shall be signed and verified
19under oath by at least 2 of the individuals; if the application
20is made by or a partnership, it shall be signed and verified
21under oath by at least 2 of such individuals or members of such
22partnership as the case may be. If made by an association, a
23corporation, a corporate trustee, a limited liability company,
24or any other entity, it shall be signed by an authorized
25officer, a partner, a member, or a manager, as the case may be,
26of the entity the president and attested by the secretary or

HB4002- 213 -LRB100 11337 MJP 21715 b
1assistant secretary under the seal of such association, trust
2or corporation if it has a seal, and shall also be verified
3under oath by one of the signing officers.
4 (c) The application shall specify:
5 (1) the name of the persons, association, trust, or
6 corporation making such application; and
7 (2) the principal post office address of the applicant;
8 (3) if the applicant is a trustee, the names and
9 addresses of the beneficiaries; if the applicant is a
10 corporation, the names and post office addresses of all
11 officers, stockholders and directors; or if such
12 stockholders hold stock as a nominee or fiduciary, the
13 names and post office addresses of the parties these
14 persons, partnerships, corporations, or trusts who are the
15 beneficial owners thereof or who are beneficially
16 interested therein; and if the applicant is a partnership,
17 the names and post office addresses of all partners,
18 general or limited; if the applicant is a limited liability
19 company, the names and addresses of the manager and
20 members; and if the applicant is any other entity, the
21 names and addresses of all officers or other authorized
22 persons of the entity corporation, the name of the state of
23 its incorporation shall be specified.
24 (d) The applicant shall execute and file with the Board a
25good faith affirmative action plan to recruit, train, and
26upgrade minorities in all classifications within the

HB4002- 214 -LRB100 11337 MJP 21715 b
1association.
2 (e) With such application there shall be delivered to the
3Board a certified check or bank draft payable to the order of
4the Board for an amount equal to $1,000. All applications for
5the issuance of an organization license shall be filed with the
6Board before August 1 of the year prior to the year for which
7application is made and shall be acted upon by the Board at a
8meeting to be held on such date as shall be fixed by the Board
9during the last 15 days of September of such prior year. At
10such meeting, the Board shall announce the award of the racing
11meets, live racing schedule, and designation of host track to
12the applicants and its approval or disapproval of each
13application. No announcement shall be considered binding until
14a formal order is executed by the Board, which shall be
15executed no later than October 15 of that prior year. Absent
16the agreement of the affected organization licensees, the Board
17shall not grant overlapping race meetings to 2 or more tracks
18that are within 100 miles of each other to conduct the
19thoroughbred racing.
20 (e-1) In awarding standardbred racing dates for calendar
21year 2018 and thereafter, the Board shall award at least 310
22racing days, and each organization licensee shall average at
23least 12 races for each racing day awarded. The Board shall
24have the discretion to allocate those racing days among
25organization licensees requesting standardbred racing dates.
26Once awarded by the Board, organization licensees awarded

HB4002- 215 -LRB100 11337 MJP 21715 b
1standardbred racing dates shall run at least 3,500 races in
2total during that calendar year. Standardbred racing conducted
3in Sangamon County shall not be considered races under this
4subsection (e-1).
5 (e-2) In awarding racing dates for calendar year 2018 and
6thereafter, the Board shall award thoroughbred racing days to
7Cook County organization licensees commensurate with these
8organization licensees' requirement that they shall run at
9least 1,950 thoroughbred races in the aggregate, so long as 2
10organization licensees are conducting electronic gaming
11operations. Additionally, if the organization licensees that
12run thoroughbred races in Cook County are conducting electronic
13gaming operations, the Board shall increase the number of
14thoroughbred races to be run in Cook County in the aggregate to
15at least the following:
16 (i) 2,050 races in any year following the most recent
17 preceding complete calendar year when the combined
18 adjusted gross receipts of the electronic gaming licensees
19 operating at Cook County race tracks total in excess of
20 $200,000,000, but do not exceed $250,000,000;
21 (ii) 2,125 races in any year following the most recent
22 preceding complete calendar year when the combined
23 adjusted gross receipts of the electronic gaming licensees
24 operating at Cook County race tracks total in excess of
25 $250,000,000, but do not exceed $300,000,000;
26 (iii) 2,200 races in any year following the most recent

HB4002- 216 -LRB100 11337 MJP 21715 b
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 $300,000,000, but do not exceed $350,000,000;
5 (iv) 2,300 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 $350,000,000, but do not exceed $400,000,000;
10 (v) 2,375 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 $400,000,000, but do not exceed $450,000,000;
15 (vi) 2,450 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 $450,000,000, but do not exceed $500,000,000;
20 (vii) 2,550 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 exceeds $500,000,000.
24 In awarding racing dates under this subsection (e-2), the
25Board shall have the discretion to allocate those thoroughbred
26racing dates among these Cook County organization licensees.

HB4002- 217 -LRB100 11337 MJP 21715 b
1 (e-3) In awarding racing dates for calendar year 2018 and
2thereafter in connection with a race track in Madison County,
3the Board shall award racing dates and such organization
4licensee shall run at least 700 thoroughbred races at the race
5track in Madison County each year.
6 Notwithstanding Section 7.7 of the Illinois Gambling Act or
7any provision of this Act other than subsection (e-4.5), for
8each calendar year for which an electronic gaming licensee
9located in Madison County requests racing dates resulting in
10less than 700 live thoroughbred races at its race track
11facility, the electronic gaming licensee may not conduct
12electronic gaming for the calendar year of such requested live
13races.
14 (e-4) Notwithstanding the provisions of Section 7.7 of the
15Illinois Gambling Act or any provision of this Act other than
16subsections (e-3) and (e-4.5), for each calendar year for which
17an electronic gaming licensee requests racing dates for a
18specific horse breed which results in a number of live races
19for that specific breed under its organization license that is
20less than the total number of live races for that specific
21breed which it conducted in 2011 for standardbred racing and in
222016 for thoroughbred racing at its race track facility, the
23electronic gaming licensee may not conduct electronic gaming
24for the calendar year of such requested live races.
25 (e-4.5) The Board shall ensure that each organization
26licensee shall individually run a sufficient number of races

HB4002- 218 -LRB100 11337 MJP 21715 b
1per year to qualify for an electronic gaming license under this
2Act. The General Assembly finds that the minimum live racing
3guarantees contained in subsections (e-1), (e-2), and (e-3) are
4in the best interest of the sport of horse racing, and that
5such guarantees may only be reduced in the limited
6circumstances described in this subsection. The Board may
7decrease the number of racing days without affecting an
8organization licensee's ability to conduct electronic gaming
9only if the Board determines, after notice and hearing, that:
10 (i) a decrease is necessary to maintain a sufficient
11 number of betting interests per race to ensure the
12 integrity of racing;
13 (ii) there are unsafe track conditions due to weather
14 or acts of God;
15 (iii) there is an agreement between an organization
16 licensee and the breed association that is applicable to
17 the involved live racing guarantee, such association
18 representing either the largest number of thoroughbred
19 owners and trainers or the largest number of standardbred
20 owners, trainers and drivers who race horses at the
21 involved organization licensee's racing meeting, so long
22 as the agreement does not compromise the integrity of the
23 sport of horse racing; or
24 (iv) the horse population or purse levels are
25 insufficient to provide the number of racing opportunities
26 otherwise required in this Act.

HB4002- 219 -LRB100 11337 MJP 21715 b
1 In decreasing the number of racing dates in accordance with
2this subsection, the Board shall hold a hearing and shall
3provide the public and all interested parties notice and an
4opportunity to be heard. The Board shall accept testimony from
5all interested parties, including any association representing
6owners, trainers, jockeys, or drivers who will be affected by
7the decrease in racing dates. The Board shall provide a written
8explanation of the reasons for the decrease and the Board's
9findings. The written explanation shall include a listing and
10content of all communication between any party and any Illinois
11Racing Board member or staff that does not take place at a
12public meeting of the Board.
13 (e-5) In reviewing an application for the purpose of
14granting an organization license consistent with the best
15interests of the public and the sport of horse racing, the
16Board shall consider:
17 (1) the character, reputation, experience, and
18 financial integrity of the applicant and of any other
19 separate person that either:
20 (i) controls the applicant, directly or
21 indirectly, or
22 (ii) is controlled, directly or indirectly, by
23 that applicant or by a person who controls, directly or
24 indirectly, that applicant;
25 (2) the applicant's facilities or proposed facilities
26 for conducting horse racing;

HB4002- 220 -LRB100 11337 MJP 21715 b
1 (3) the total revenue without regard to Section 32.1 to
2 be derived by the State and horsemen from the applicant's
3 conducting a race meeting;
4 (4) the applicant's good faith affirmative action plan
5 to recruit, train, and upgrade minorities in all employment
6 classifications;
7 (5) the applicant's financial ability to purchase and
8 maintain adequate liability and casualty insurance;
9 (6) the applicant's proposed and prior year's
10 promotional and marketing activities and expenditures of
11 the applicant associated with those activities;
12 (7) an agreement, if any, among organization licensees
13 as provided in subsection (b) of Section 21 of this Act;
14 and
15 (8) the extent to which the applicant exceeds or meets
16 other standards for the issuance of an organization license
17 that the Board shall adopt by rule.
18 In granting organization licenses and allocating dates for
19horse race meetings, the Board shall have discretion to
20determine an overall schedule, including required simulcasts
21of Illinois races by host tracks that will, in its judgment, be
22conducive to the best interests of the public and the sport of
23horse racing.
24 (e-10) The Illinois Administrative Procedure Act shall
25apply to administrative procedures of the Board under this Act
26for the granting of an organization license, except that (1)

HB4002- 221 -LRB100 11337 MJP 21715 b
1notwithstanding the provisions of subsection (b) of Section
210-40 of the Illinois Administrative Procedure Act regarding
3cross-examination, the Board may prescribe rules limiting the
4right of an applicant or participant in any proceeding to award
5an organization license to conduct cross-examination of
6witnesses at that proceeding where that cross-examination
7would unduly obstruct the timely award of an organization
8license under subsection (e) of Section 20 of this Act; (2) the
9provisions of Section 10-45 of the Illinois Administrative
10Procedure Act regarding proposals for decision are excluded
11under this Act; (3) notwithstanding the provisions of
12subsection (a) of Section 10-60 of the Illinois Administrative
13Procedure Act regarding ex parte communications, the Board may
14prescribe rules allowing ex parte communications with
15applicants or participants in a proceeding to award an
16organization license where conducting those communications
17would be in the best interest of racing, provided all those
18communications are made part of the record of that proceeding
19pursuant to subsection (c) of Section 10-60 of the Illinois
20Administrative Procedure Act; (4) the provisions of Section 14a
21of this Act and the rules of the Board promulgated under that
22Section shall apply instead of the provisions of Article 10 of
23the Illinois Administrative Procedure Act regarding
24administrative law judges; and (5) the provisions of subsection
25(d) of Section 10-65 of the Illinois Administrative Procedure
26Act that prevent summary suspension of a license pending

HB4002- 222 -LRB100 11337 MJP 21715 b
1revocation or other action shall not apply.
2 (f) The Board may allot racing dates to an organization
3licensee for more than one calendar year but for no more than 3
4successive calendar years in advance, provided that the Board
5shall review such allotment for more than one calendar year
6prior to each year for which such allotment has been made. The
7granting of an organization license to a person constitutes a
8privilege to conduct a horse race meeting under the provisions
9of this Act, and no person granted an organization license
10shall be deemed to have a vested interest, property right, or
11future expectation to receive an organization license in any
12subsequent year as a result of the granting of an organization
13license. Organization licenses shall be subject to revocation
14if the organization licensee has violated any provision of this
15Act or the rules and regulations promulgated under this Act or
16has been convicted of a crime or has failed to disclose or has
17stated falsely any information called for in the application
18for an organization license. Any organization license
19revocation proceeding shall be in accordance with Section 16
20regarding suspension and revocation of occupation licenses.
21 (f-5) If, (i) an applicant does not file an acceptance of
22the racing dates awarded by the Board as required under part
23(1) of subsection (h) of this Section 20, or (ii) an
24organization licensee has its license suspended or revoked
25under this Act, the Board, upon conducting an emergency hearing
26as provided for in this Act, may reaward on an emergency basis

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

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

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

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

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1to time prescribed by the Board, and every such organization
2license issued by the Board shall contain a recital to that
3effect.
4 (i) Each such organization licensee may provide that at
5least one race per day may be devoted to the racing of quarter
6horses, appaloosas, arabians, or paints.
7 (j) In acting on applications for organization licenses,
8the Board shall give weight to an organization license which
9has implemented a good faith affirmative action effort to
10recruit, train and upgrade minorities in all classifications
11within the organization license.
12(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)
13 (230 ILCS 5/24) (from Ch. 8, par. 37-24)
14 Sec. 24. (a) No license shall be issued to or held by an
15organization licensee unless all of its officers, directors,
16and holders of ownership interests of at least 5% are first
17approved by the Board. The Board shall not give approval of an
18organization license application to any person who has been
19convicted of or is under an indictment for a crime of moral
20turpitude or has violated any provision of the racing law of
21this State or any rules of the Board.
22 (b) An organization licensee must notify the Board within
2310 days of any change in the holders of a direct or indirect
24interest in the ownership of the organization licensee. The
25Board may, after hearing, revoke the organization license of

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1any person who registers on its books or knowingly permits a
2direct or indirect interest in the ownership of that person
3without notifying the Board of the name of the holder in
4interest within this period.
5 (c) In addition to the provisions of subsection (a) of this
6Section, no person shall be granted an organization license if
7any public official of the State or member of his or her family
8holds any ownership or financial interest, directly or
9indirectly, in the person.
10 (d) No person which has been granted an organization
11license to hold a race meeting shall give to any public
12official or member of his family, directly or indirectly, for
13or without consideration, any interest in the person. The Board
14shall, after hearing, revoke the organization license granted
15to a person which has violated this subsection.
16 (e) (Blank).
17 (f) No organization licensee or concessionaire or officer,
18director or holder or controller of 5% or more legal or
19beneficial interest in any organization licensee or concession
20shall make any sort of gift or contribution that is prohibited
21under Article 10 of the State Officials and Employees Ethics
22Act of any kind or pay or give any money or other thing of value
23to any person who is a public official, or a candidate or
24nominee for public office if that payment or gift is prohibited
25under Article 10 of the State Officials and Employees Ethics
26Act.

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1(Source: P.A. 89-16, eff. 5-30-95.)
2 (230 ILCS 5/25) (from Ch. 8, par. 37-25)
3 Sec. 25. Admission charge; bond; fine.
4 (a) There shall be paid to the Board at such time or times
5as it shall prescribe, the sum of fifteen cents (15¢) for each
6person entering the grounds or enclosure of each organization
7licensee and inter-track wagering licensee upon a ticket of
8admission except as provided in subsection (g) of Section 27 of
9this Act. If tickets are issued for more than one day then the
10sum of fifteen cents (15¢) shall be paid for each person using
11such ticket on each day that the same shall be used. Provided,
12however, that no charge shall be made on tickets of admission
13issued to and in the name of directors, officers, agents or
14employees of the organization licensee, or inter-track
15wagering licensee, or to owners, trainers, jockeys, drivers and
16their employees or to any person or persons entering the
17grounds or enclosure for the transaction of business in
18connection with such race meeting. The organization licensee or
19inter-track wagering licensee may, if it desires, collect such
20amount from each ticket holder in addition to the amount or
21amounts charged for such ticket of admission. Beginning on the
22date when any organization licensee begins conducting
23electronic gaming pursuant to an electronic gaming license
24issued under the Illinois Gambling Act, the admission charge
25imposed by this subsection (a) shall be 40 cents for each

HB4002- 230 -LRB100 11337 MJP 21715 b
1person entering the grounds or enclosure of each organization
2licensee and inter-track wagering licensee upon a ticket of
3admission, and if such tickets are issued for more than one
4day, 40 cents shall be paid for each person using such ticket
5on each day that the same shall be used.
6 (b) Accurate records and books shall at all times be kept
7and maintained by the organization licensees and inter-track
8wagering licensees showing the admission tickets issued and
9used on each racing day and the attendance thereat of each
10horse racing meeting. The Board or its duly authorized
11representative or representatives shall at all reasonable
12times have access to the admission records of any organization
13licensee and inter-track wagering licensee for the purpose of
14examining and checking the same and ascertaining whether or not
15the proper amount has been or is being paid the State of
16Illinois as herein provided. The Board shall also require,
17before issuing any license, that the licensee shall execute and
18deliver to it a bond, payable to the State of Illinois, in such
19sum as it shall determine, not, however, in excess of fifty
20thousand dollars ($50,000), with a surety or sureties to be
21approved by it, conditioned for the payment of all sums due and
22payable or collected by it under this Section upon admission
23fees received for any particular racing meetings. The Board may
24also from time to time require sworn statements of the number
25or numbers of such admissions and may prescribe blanks upon
26which such reports shall be made. Any organization licensee or

HB4002- 231 -LRB100 11337 MJP 21715 b
1inter-track wagering licensee failing or refusing to pay the
2amount found to be due as herein provided, shall be deemed
3guilty of a business offense and upon conviction shall be
4punished by a fine of not more than five thousand dollars
5($5,000) in addition to the amount due from such organization
6licensee or inter-track wagering licensee as herein provided.
7All fines paid into court by an organization licensee or
8inter-track wagering licensee found guilty of violating this
9Section shall be transmitted and paid over by the clerk of the
10court to the Board. Beginning on the date when any organization
11licensee begins conducting electronic gaming pursuant to an
12electronic gaming license issued under the Illinois Gambling
13Act, any fine imposed pursuant to this subsection (b) shall not
14exceed $10,000.
15(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
16 (230 ILCS 5/26) (from Ch. 8, par. 37-26)
17 Sec. 26. Wagering.
18 (a) Any licensee may conduct and supervise the pari-mutuel
19system of wagering, as defined in Section 3.12 of this Act, on
20horse races conducted by an Illinois organization licensee or
21conducted at a racetrack located in another state or country
22and televised in Illinois in accordance with subsection (g) of
23Section 26 of this Act. Subject to the prior consent of the
24Board, licensees may supplement any pari-mutuel pool in order
25to guarantee a minimum distribution. Such pari-mutuel method of

HB4002- 232 -LRB100 11337 MJP 21715 b
1wagering shall not, under any circumstances if conducted under
2the provisions of this Act, be held or construed to be
3unlawful, other statutes of this State to the contrary
4notwithstanding. Subject to rules for advance wagering
5promulgated by the Board, any licensee may accept wagers in
6advance of the day of the race wagered upon occurs.
7 (b) Except for those gaming activities for which a license
8is obtained and authorized under the Illinois Lottery Law, the
9Charitable Games Act, the Raffles and Poker Runs Act, or the
10Illinois Gambling Act, no No other method of betting, pool
11making, wagering or gambling shall be used or permitted by the
12licensee. Each licensee may retain, subject to the payment of
13all applicable taxes and purses, an amount not to exceed 17% of
14all money wagered under subsection (a) of this Section, except
15as may otherwise be permitted under this Act.
16 (b-5) An individual may place a wager under the pari-mutuel
17system from any licensed location authorized under this Act
18provided that wager is electronically recorded in the manner
19described in Section 3.12 of this Act. Any wager made
20electronically by an individual while physically on the
21premises of a licensee shall be deemed to have been made at the
22premises of that licensee.
23 (c) Until January 1, 2000, the sum held by any licensee for
24payment of outstanding pari-mutuel tickets, if unclaimed prior
25to December 31 of the next year, shall be retained by the
26licensee for payment of such tickets until that date. Within 10

HB4002- 233 -LRB100 11337 MJP 21715 b
1days thereafter, the balance of such sum remaining unclaimed,
2less any uncashed supplements contributed by such licensee for
3the purpose of guaranteeing minimum distributions of any
4pari-mutuel pool, shall be paid to the Illinois Veterans'
5Rehabilitation Fund of the State treasury, except as provided
6in subsection (g) of Section 27 of this Act.
7 (c-5) Beginning January 1, 2000, the sum held by any
8licensee for payment of outstanding pari-mutuel tickets, if
9unclaimed prior to December 31 of the next year, shall be
10retained by the licensee for payment of such tickets until that
11date. Within 10 days thereafter, the balance of such sum
12remaining unclaimed, less any uncashed supplements contributed
13by such licensee for the purpose of guaranteeing minimum
14distributions of any pari-mutuel pool, shall be evenly
15distributed to the purse account of the organization licensee
16and the organization licensee.
17 (d) A pari-mutuel ticket shall be honored until December 31
18of the next calendar year, and the licensee shall pay the same
19and may charge the amount thereof against unpaid money
20similarly accumulated on account of pari-mutuel tickets not
21presented for payment.
22 (e) No licensee shall knowingly permit any minor, other
23than an employee of such licensee or an owner, trainer, jockey,
24driver, or employee thereof, to be admitted during a racing
25program unless accompanied by a parent or guardian, or any
26minor to be a patron of the pari-mutuel system of wagering

HB4002- 234 -LRB100 11337 MJP 21715 b
1conducted or supervised by it. The admission of any
2unaccompanied minor, other than an employee of the licensee or
3an owner, trainer, jockey, driver, or employee thereof at a
4race track is a Class C misdemeanor.
5 (f) Notwithstanding the other provisions of this Act, an
6organization licensee may contract with an entity in another
7state or country to permit any legal wagering entity in another
8state or country to accept wagers solely within such other
9state or country on races conducted by the organization
10licensee in this State. Beginning January 1, 2000, these wagers
11shall not be subject to State taxation. Until January 1, 2000,
12when the out-of-State entity conducts a pari-mutuel pool
13separate from the organization licensee, a privilege tax equal
14to 7 1/2% of all monies received by the organization licensee
15from entities in other states or countries pursuant to such
16contracts is imposed on the organization licensee, and such
17privilege tax shall be remitted to the Department of Revenue
18within 48 hours of receipt of the moneys from the simulcast.
19When the out-of-State entity conducts a combined pari-mutuel
20pool with the organization licensee, the tax shall be 10% of
21all monies received by the organization licensee with 25% of
22the receipts from this 10% tax to be distributed to the county
23in which the race was conducted.
24 An organization licensee may permit one or more of its
25races to be utilized for pari-mutuel wagering at one or more
26locations in other states and may transmit audio and visual

HB4002- 235 -LRB100 11337 MJP 21715 b
1signals of races the organization licensee conducts to one or
2more locations outside the State or country and may also permit
3pari-mutuel pools in other states or countries to be combined
4with its gross or net wagering pools or with wagering pools
5established by other states.
6 (g) A host track may accept interstate simulcast wagers on
7horse races conducted in other states or countries and shall
8control the number of signals and types of breeds of racing in
9its simulcast program, subject to the disapproval of the Board.
10The Board may prohibit a simulcast program only if it finds
11that the simulcast program is clearly adverse to the integrity
12of racing. The host track simulcast program shall include the
13signal of live racing of all organization licensees. All
14non-host licensees and advance deposit wagering licensees
15shall carry the signal of and accept wagers on live racing of
16all organization licensees. Advance deposit wagering licensees
17shall not be permitted to accept out-of-state wagers on any
18Illinois signal provided pursuant to this Section without the
19approval and consent of the organization licensee providing the
20signal. For one year after August 15, 2014 (the effective date
21of Public Act 98-968) this amendatory Act of the 98th General
22Assembly, non-host licensees may carry the host track simulcast
23program and shall accept wagers on all races included as part
24of the simulcast program of horse races conducted at race
25tracks located within North America upon which wagering is
26permitted. For a period of one year after August 15, 2014 (the

HB4002- 236 -LRB100 11337 MJP 21715 b
1effective date of Public Act 98-968) this amendatory Act of the
298th General Assembly, on horse races conducted at race tracks
3located outside of North America, non-host licensees may accept
4wagers on all races included as part of the simulcast program
5upon which wagering is permitted. Beginning August 15, 2015
6(one year after the effective date of Public Act 98-968) this
7amendatory Act of the 98th General Assembly, non-host licensees
8may carry the host track simulcast program and shall accept
9wagers on all races included as part of the simulcast program
10upon which wagering is permitted. All organization licensees
11shall provide their live signal to all advance deposit wagering
12licensees for a simulcast commission fee not to exceed 6% of
13the advance deposit wagering licensee's Illinois handle on the
14organization licensee's signal without prior approval by the
15Board. The Board may adopt rules under which it may permit
16simulcast commission fees in excess of 6%. The Board shall
17adopt rules limiting the interstate commission fees charged to
18an advance deposit wagering licensee. The Board shall adopt
19rules regarding advance deposit wagering on interstate
20simulcast races that shall reflect, among other things, the
21General Assembly's desire to maximize revenues to the State,
22horsemen purses, and organizational licensees. However,
23organization licensees providing live signals pursuant to the
24requirements of this subsection (g) may petition the Board to
25withhold their live signals from an advance deposit wagering
26licensee if the organization licensee discovers and the Board

HB4002- 237 -LRB100 11337 MJP 21715 b
1finds reputable or credible information that the advance
2deposit wagering licensee is under investigation by another
3state or federal governmental agency, the advance deposit
4wagering licensee's license has been suspended in another
5state, or the advance deposit wagering licensee's license is in
6revocation proceedings in another state. The organization
7licensee's provision of their live signal to an advance deposit
8wagering licensee under this subsection (g) pertains to wagers
9placed from within Illinois. Advance deposit wagering
10licensees may place advance deposit wagering terminals at
11wagering facilities as a convenience to customers. The advance
12deposit wagering licensee shall not charge or collect any fee
13from purses for the placement of the advance deposit wagering
14terminals. The costs and expenses of the host track and
15non-host licensees associated with interstate simulcast
16wagering, other than the interstate commission fee, shall be
17borne by the host track and all non-host licensees incurring
18these costs. The interstate commission fee shall not exceed 5%
19of Illinois handle on the interstate simulcast race or races
20without prior approval of the Board. The Board shall promulgate
21rules under which it may permit interstate commission fees in
22excess of 5%. The interstate commission fee and other fees
23charged by the sending racetrack, including, but not limited
24to, satellite decoder fees, shall be uniformly applied to the
25host track and all non-host licensees.
26 Notwithstanding any other provision of this Act, through

HB4002- 238 -LRB100 11337 MJP 21715 b
1December 31, 2018, an organization licensee, with the consent
2of the horsemen association representing the largest number of
3owners, trainers, jockeys, or standardbred drivers who race
4horses at that organization licensee's racing meeting, may
5maintain a system whereby advance deposit wagering may take
6place or an organization licensee, with the consent of the
7horsemen association representing the largest number of
8owners, trainers, jockeys, or standardbred drivers who race
9horses at that organization licensee's racing meeting, may
10contract with another person to carry out a system of advance
11deposit wagering. Such consent may not be unreasonably
12withheld. Only with respect to an appeal to the Board that
13consent for an organization licensee that maintains its own
14advance deposit wagering system is being unreasonably
15withheld, the Board shall issue a final order within 30 days
16after initiation of the appeal, and the organization licensee's
17advance deposit wagering system may remain operational during
18that 30-day period. The actions of any organization licensee
19who conducts advance deposit wagering or any person who has a
20contract with an organization licensee to conduct advance
21deposit wagering who conducts advance deposit wagering on or
22after January 1, 2013 and prior to June 7, 2013 (the effective
23date of Public Act 98-18) this amendatory Act of the 98th
24General Assembly taken in reliance on the changes made to this
25subsection (g) by Public Act 98-18 this amendatory Act of the
2698th General Assembly are hereby validated, provided payment of

HB4002- 239 -LRB100 11337 MJP 21715 b
1all applicable pari-mutuel taxes are remitted to the Board. All
2advance deposit wagers placed from within Illinois must be
3placed through a Board-approved advance deposit wagering
4licensee; no other entity may accept an advance deposit wager
5from a person within Illinois. All advance deposit wagering is
6subject to any rules adopted by the Board. The Board may adopt
7rules necessary to regulate advance deposit wagering through
8the use of emergency rulemaking in accordance with Section 5-45
9of the Illinois Administrative Procedure Act. The General
10Assembly finds that the adoption of rules to regulate advance
11deposit wagering is deemed an emergency and necessary for the
12public interest, safety, and welfare. An advance deposit
13wagering licensee may retain all moneys as agreed to by
14contract with an organization licensee. Any moneys retained by
15the organization licensee from advance deposit wagering, not
16including moneys retained by the advance deposit wagering
17licensee, shall be paid 50% to the organization licensee's
18purse account and 50% to the organization licensee. With the
19exception of any organization licensee that is owned by a
20publicly traded company that is incorporated in a state other
21than Illinois and advance deposit wagering licensees under
22contract with such organization licensees, organization
23licensees that maintain advance deposit wagering systems and
24advance deposit wagering licensees that contract with
25organization licensees shall provide sufficiently detailed
26monthly accountings to the horsemen association representing

HB4002- 240 -LRB100 11337 MJP 21715 b
1the largest number of owners, trainers, jockeys, or
2standardbred drivers who race horses at that organization
3licensee's racing meeting so that the horsemen association, as
4an interested party, can confirm the accuracy of the amounts
5paid to the purse account at the horsemen association's
6affiliated organization licensee from advance deposit
7wagering. If more than one breed races at the same race track
8facility, then the 50% of the moneys to be paid to an
9organization licensee's purse account shall be allocated among
10all organization licensees' purse accounts operating at that
11race track facility proportionately based on the actual number
12of host days that the Board grants to that breed at that race
13track facility in the current calendar year. To the extent any
14fees from advance deposit wagering conducted in Illinois for
15wagers in Illinois or other states have been placed in escrow
16or otherwise withheld from wagers pending a determination of
17the legality of advance deposit wagering, no action shall be
18brought to declare such wagers or the disbursement of any fees
19previously escrowed illegal.
20 (1) Between the hours of 6:30 a.m. and 6:30 p.m. an
21 inter-track intertrack wagering licensee other than the
22 host track may supplement the host track simulcast program
23 with additional simulcast races or race programs, provided
24 that between January 1 and the third Friday in February of
25 any year, inclusive, if no live thoroughbred racing is
26 occurring in Illinois during this period, only

HB4002- 241 -LRB100 11337 MJP 21715 b
1 thoroughbred races may be used for supplemental interstate
2 simulcast purposes. The Board shall withhold approval for a
3 supplemental interstate simulcast only if it finds that the
4 simulcast is clearly adverse to the integrity of racing. A
5 supplemental interstate simulcast may be transmitted from
6 an inter-track intertrack wagering licensee to its
7 affiliated non-host licensees. The interstate commission
8 fee for a supplemental interstate simulcast shall be paid
9 by the non-host licensee and its affiliated non-host
10 licensees receiving the simulcast.
11 (2) Between the hours of 6:30 p.m. and 6:30 a.m. an
12 inter-track intertrack wagering licensee other than the
13 host track may receive supplemental interstate simulcasts
14 only with the consent of the host track, except when the
15 Board finds that the simulcast is clearly adverse to the
16 integrity of racing. Consent granted under this paragraph
17 (2) to any inter-track intertrack wagering licensee shall
18 be deemed consent to all non-host licensees. The interstate
19 commission fee for the supplemental interstate simulcast
20 shall be paid by all participating non-host licensees.
21 (3) Each licensee conducting interstate simulcast
22 wagering may retain, subject to the payment of all
23 applicable taxes and the purses, an amount not to exceed
24 17% of all money wagered. If any licensee conducts the
25 pari-mutuel system wagering on races conducted at
26 racetracks in another state or country, each such race or

HB4002- 242 -LRB100 11337 MJP 21715 b
1 race program shall be considered a separate racing day for
2 the purpose of determining the daily handle and computing
3 the privilege tax of that daily handle as provided in
4 subsection (a) of Section 27. Until January 1, 2000, from
5 the sums permitted to be retained pursuant to this
6 subsection, each inter-track intertrack wagering location
7 licensee shall pay 1% of the pari-mutuel handle wagered on
8 simulcast wagering to the Horse Racing Tax Allocation Fund,
9 subject to the provisions of subparagraph (B) of paragraph
10 (11) of subsection (h) of Section 26 of this Act.
11 (4) A licensee who receives an interstate simulcast may
12 combine its gross or net pools with pools at the sending
13 racetracks pursuant to rules established by the Board. All
14 licensees combining their gross pools at a sending
15 racetrack shall adopt the take-out percentages of the
16 sending racetrack. A licensee may also establish a separate
17 pool and takeout structure for wagering purposes on races
18 conducted at race tracks outside of the State of Illinois.
19 The licensee may permit pari-mutuel wagers placed in other
20 states or countries to be combined with its gross or net
21 wagering pools or other wagering pools.
22 (5) After the payment of the interstate commission fee
23 (except for the interstate commission fee on a supplemental
24 interstate simulcast, which shall be paid by the host track
25 and by each non-host licensee through the host-track) and
26 all applicable State and local taxes, except as provided in

HB4002- 243 -LRB100 11337 MJP 21715 b
1 subsection (g) of Section 27 of this Act, the remainder of
2 moneys retained from simulcast wagering pursuant to this
3 subsection (g), and Section 26.2 shall be divided as
4 follows:
5 (A) For interstate simulcast wagers made at a host
6 track, 50% to the host track and 50% to purses at the
7 host track.
8 (B) For wagers placed on interstate simulcast
9 races, supplemental simulcasts as defined in
10 subparagraphs (1) and (2), and separately pooled races
11 conducted outside of the State of Illinois made at a
12 non-host licensee, 25% to the host track, 25% to the
13 non-host licensee, and 50% to the purses at the host
14 track.
15 (6) Notwithstanding any provision in this Act to the
16 contrary, non-host licensees who derive their licenses
17 from a track located in a county with a population in
18 excess of 230,000 and that borders the Mississippi River
19 may receive supplemental interstate simulcast races at all
20 times subject to Board approval, which shall be withheld
21 only upon a finding that a supplemental interstate
22 simulcast is clearly adverse to the integrity of racing.
23 (7) Notwithstanding any provision of this Act to the
24 contrary, after payment of all applicable State and local
25 taxes and interstate commission fees, non-host licensees
26 who derive their licenses from a track located in a county

HB4002- 244 -LRB100 11337 MJP 21715 b
1 with a population in excess of 230,000 and that borders the
2 Mississippi River shall retain 50% of the retention from
3 interstate simulcast wagers and shall pay 50% to purses at
4 the track from which the non-host licensee derives its
5 license as follows:
6 (A) Between January 1 and the third Friday in
7 February, inclusive, if no live thoroughbred racing is
8 occurring in Illinois during this period, when the
9 interstate simulcast is a standardbred race, the purse
10 share to its standardbred purse account;
11 (B) Between January 1 and the third Friday in
12 February, inclusive, if no live thoroughbred racing is
13 occurring in Illinois during this period, and the
14 interstate simulcast is a thoroughbred race, the purse
15 share to its interstate simulcast purse pool to be
16 distributed under paragraph (10) of this subsection
17 (g);
18 (C) Between January 1 and the third Friday in
19 February, inclusive, if live thoroughbred racing is
20 occurring in Illinois, between 6:30 a.m. and 6:30 p.m.
21 the purse share from wagers made during this time
22 period to its thoroughbred purse account and between
23 6:30 p.m. and 6:30 a.m. the purse share from wagers
24 made during this time period to its standardbred purse
25 accounts;
26 (D) Between the third Saturday in February and

HB4002- 245 -LRB100 11337 MJP 21715 b
1 December 31, when the interstate simulcast occurs
2 between the hours of 6:30 a.m. and 6:30 p.m., the purse
3 share to its thoroughbred purse account;
4 (E) Between the third Saturday in February and
5 December 31, when the interstate simulcast occurs
6 between the hours of 6:30 p.m. and 6:30 a.m., the purse
7 share to its standardbred purse account.
8 (7.1) Notwithstanding any other provision of this Act
9 to the contrary, if no standardbred racing is conducted at
10 a racetrack located in Madison County during any calendar
11 year beginning on or after January 1, 2002, all moneys
12 derived by that racetrack from simulcast wagering and
13 inter-track wagering that (1) are to be used for purses and
14 (2) are generated between the hours of 6:30 p.m. and 6:30
15 a.m. during that calendar year shall be paid as follows:
16 (A) If the licensee that conducts horse racing at
17 that racetrack requests from the Board at least as many
18 racing dates as were conducted in calendar year 2000,
19 80% shall be paid to its thoroughbred purse account;
20 and
21 (B) Twenty percent shall be deposited into the
22 Illinois Colt Stakes Purse Distribution Fund and shall
23 be paid to purses for standardbred races for Illinois
24 conceived and foaled horses conducted at any county
25 fairgrounds. The moneys deposited into the Fund
26 pursuant to this subparagraph (B) shall be deposited

HB4002- 246 -LRB100 11337 MJP 21715 b
1 within 2 weeks after the day they were generated, shall
2 be in addition to and not in lieu of any other moneys
3 paid to standardbred purses under this Act, and shall
4 not be commingled with other moneys paid into that
5 Fund. The moneys deposited pursuant to this
6 subparagraph (B) shall be allocated as provided by the
7 Department of Agriculture, with the advice and
8 assistance of the Illinois Standardbred Breeders Fund
9 Advisory Board.
10 (7.2) Notwithstanding any other provision of this Act
11 to the contrary, if no thoroughbred racing is conducted at
12 a racetrack located in Madison County during any calendar
13 year beginning on or after January 1, 2002, all moneys
14 derived by that racetrack from simulcast wagering and
15 inter-track wagering that (1) are to be used for purses and
16 (2) are generated between the hours of 6:30 a.m. and 6:30
17 p.m. during that calendar year shall be deposited as
18 follows:
19 (A) If the licensee that conducts horse racing at
20 that racetrack requests from the Board at least as many
21 racing dates as were conducted in calendar year 2000,
22 80% shall be deposited into its standardbred purse
23 account; and
24 (B) Twenty percent shall be deposited into the
25 Illinois Colt Stakes Purse Distribution Fund. Moneys
26 deposited into the Illinois Colt Stakes Purse

HB4002- 247 -LRB100 11337 MJP 21715 b
1 Distribution Fund pursuant to this subparagraph (B)
2 shall be paid to Illinois conceived and foaled
3 thoroughbred breeders' programs and to thoroughbred
4 purses for races conducted at any county fairgrounds
5 for Illinois conceived and foaled horses at the
6 discretion of the Department of Agriculture, with the
7 advice and assistance of the Illinois Thoroughbred
8 Breeders Fund Advisory Board. The moneys deposited
9 into the Illinois Colt Stakes Purse Distribution Fund
10 pursuant to this subparagraph (B) shall be deposited
11 within 2 weeks after the day they were generated, shall
12 be in addition to and not in lieu of any other moneys
13 paid to thoroughbred purses under this Act, and shall
14 not be commingled with other moneys deposited into that
15 Fund.
16 (7.3) If no live standardbred racing is conducted at a
17 racetrack located in Madison County in calendar year 2000
18 or 2001, an organization licensee who is licensed to
19 conduct horse racing at that racetrack shall, before
20 January 1, 2002, pay all moneys derived from simulcast
21 wagering and inter-track wagering in calendar years 2000
22 and 2001 and paid into the licensee's standardbred purse
23 account as follows:
24 (A) Eighty percent to that licensee's thoroughbred
25 purse account to be used for thoroughbred purses; and
26 (B) Twenty percent to the Illinois Colt Stakes

HB4002- 248 -LRB100 11337 MJP 21715 b
1 Purse Distribution Fund.
2 Failure to make the payment to the Illinois Colt Stakes
3 Purse Distribution Fund before January 1, 2002 shall result
4 in the immediate revocation of the licensee's organization
5 license, inter-track wagering license, and inter-track
6 wagering location license.
7 Moneys paid into the Illinois Colt Stakes Purse
8 Distribution Fund pursuant to this paragraph (7.3) shall be
9 paid to purses for standardbred races for Illinois
10 conceived and foaled horses conducted at any county
11 fairgrounds. Moneys paid into the Illinois Colt Stakes
12 Purse Distribution Fund pursuant to this paragraph (7.3)
13 shall be used as determined by the Department of
14 Agriculture, with the advice and assistance of the Illinois
15 Standardbred Breeders Fund Advisory Board, shall be in
16 addition to and not in lieu of any other moneys paid to
17 standardbred purses under this Act, and shall not be
18 commingled with any other moneys paid into that Fund.
19 (7.4) If live standardbred racing is conducted at a
20 racetrack located in Madison County at any time in calendar
21 year 2001 before the payment required under paragraph (7.3)
22 has been made, the organization licensee who is licensed to
23 conduct racing at that racetrack shall pay all moneys
24 derived by that racetrack from simulcast wagering and
25 inter-track wagering during calendar years 2000 and 2001
26 that (1) are to be used for purses and (2) are generated

HB4002- 249 -LRB100 11337 MJP 21715 b
1 between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or
2 2001 to the standardbred purse account at that racetrack to
3 be used for standardbred purses.
4 (8) Notwithstanding any provision in this Act to the
5 contrary, an organization licensee from a track located in
6 a county with a population in excess of 230,000 and that
7 borders the Mississippi River and its affiliated non-host
8 licensees shall not be entitled to share in any retention
9 generated on racing, inter-track wagering, or simulcast
10 wagering at any other Illinois wagering facility.
11 (8.1) Notwithstanding any provisions in this Act to the
12 contrary, if 2 organization licensees are conducting
13 standardbred race meetings concurrently between the hours
14 of 6:30 p.m. and 6:30 a.m., after payment of all applicable
15 State and local taxes and interstate commission fees, the
16 remainder of the amount retained from simulcast wagering
17 otherwise attributable to the host track and to host track
18 purses shall be split daily between the 2 organization
19 licensees and the purses at the tracks of the 2
20 organization licensees, respectively, based on each
21 organization licensee's share of the total live handle for
22 that day, provided that this provision shall not apply to
23 any non-host licensee that derives its license from a track
24 located in a county with a population in excess of 230,000
25 and that borders the Mississippi River.
26 (9) (Blank).

HB4002- 250 -LRB100 11337 MJP 21715 b
1 (10) (Blank).
2 (11) (Blank).
3 (12) The Board shall have authority to compel all host
4 tracks to receive the simulcast of any or all races
5 conducted at the Springfield or DuQuoin State fairgrounds
6 and include all such races as part of their simulcast
7 programs.
8 (13) Notwithstanding any other provision of this Act,
9 in the event that the total Illinois pari-mutuel handle on
10 Illinois horse races at all wagering facilities in any
11 calendar year is less than 75% of the total Illinois
12 pari-mutuel handle on Illinois horse races at all such
13 wagering facilities for calendar year 1994, then each
14 wagering facility that has an annual total Illinois
15 pari-mutuel handle on Illinois horse races that is less
16 than 75% of the total Illinois pari-mutuel handle on
17 Illinois horse races at such wagering facility for calendar
18 year 1994, shall be permitted to receive, from any amount
19 otherwise payable to the purse account at the race track
20 with which the wagering facility is affiliated in the
21 succeeding calendar year, an amount equal to 2% of the
22 differential in total Illinois pari-mutuel handle on
23 Illinois horse races at the wagering facility between that
24 calendar year in question and 1994 provided, however, that
25 a wagering facility shall not be entitled to any such
26 payment until the Board certifies in writing to the

HB4002- 251 -LRB100 11337 MJP 21715 b
1 wagering facility the amount to which the wagering facility
2 is entitled and a schedule for payment of the amount to the
3 wagering facility, based on: (i) the racing dates awarded
4 to the race track affiliated with the wagering facility
5 during the succeeding year; (ii) the sums available or
6 anticipated to be available in the purse account of the
7 race track affiliated with the wagering facility for purses
8 during the succeeding year; and (iii) the need to ensure
9 reasonable purse levels during the payment period. The
10 Board's certification shall be provided no later than
11 January 31 of the succeeding year. In the event a wagering
12 facility entitled to a payment under this paragraph (13) is
13 affiliated with a race track that maintains purse accounts
14 for both standardbred and thoroughbred racing, the amount
15 to be paid to the wagering facility shall be divided
16 between each purse account pro rata, based on the amount of
17 Illinois handle on Illinois standardbred and thoroughbred
18 racing respectively at the wagering facility during the
19 previous calendar year. Annually, the General Assembly
20 shall appropriate sufficient funds from the General
21 Revenue Fund to the Department of Agriculture for payment
22 into the thoroughbred and standardbred horse racing purse
23 accounts at Illinois pari-mutuel tracks. The amount paid to
24 each purse account shall be the amount certified by the
25 Illinois Racing Board in January to be transferred from
26 each account to each eligible racing facility in accordance

HB4002- 252 -LRB100 11337 MJP 21715 b
1 with the provisions of this Section. Beginning in the
2 calendar year in which an organization licensee that is
3 eligible to receive payment under this paragraph (13)
4 begins to receive funds from electronic gaming, the amount
5 of the payment due to all wagering facilities licensed
6 under that organization licensee under this paragraph (13)
7 shall be the amount certified by the Board in January of
8 that year. An organization licensee and its related
9 wagering facilities shall no longer be able to receive
10 payments under this paragraph (13) beginning in the year
11 subsequent to the first year in which the organization
12 licensee begins to receive funds from electronic gaming.
13 (h) The Board may approve and license the conduct of
14inter-track wagering and simulcast wagering by inter-track
15wagering licensees and inter-track wagering location licensees
16subject to the following terms and conditions:
17 (1) Any person licensed to conduct a race meeting (i)
18 at a track where 60 or more days of racing were conducted
19 during the immediately preceding calendar year or where
20 over the 5 immediately preceding calendar years an average
21 of 30 or more days of racing were conducted annually may be
22 issued an inter-track wagering license; (ii) at a track
23 located in a county that is bounded by the Mississippi
24 River, which has a population of less than 150,000
25 according to the 1990 decennial census, and an average of
26 at least 60 days of racing per year between 1985 and 1993

HB4002- 253 -LRB100 11337 MJP 21715 b
1 may be issued an inter-track wagering license; or (iii) at
2 a track located in Madison County that conducted at least
3 100 days of live racing during the immediately preceding
4 calendar year may be issued an inter-track wagering
5 license, unless a lesser schedule of live racing is the
6 result of (A) weather, unsafe track conditions, or other
7 acts of God; (B) an agreement between the organization
8 licensee and the associations representing the largest
9 number of owners, trainers, jockeys, or standardbred
10 drivers who race horses at that organization licensee's
11 racing meeting; or (C) a finding by the Board of
12 extraordinary circumstances and that it was in the best
13 interest of the public and the sport to conduct fewer than
14 100 days of live racing. Any such person having operating
15 control of the racing facility may receive inter-track
16 wagering location licenses. An eligible race track located
17 in a county that has a population of more than 230,000 and
18 that is bounded by the Mississippi River may establish up
19 to 9 inter-track wagering locations, and an eligible race
20 track located in Stickney Township in Cook County may
21 establish up to 16 inter-track wagering locations, and an
22 eligible race track located in Palatine Township in Cook
23 County may establish up to 18 inter-track wagering
24 locations. An application for said license shall be filed
25 with the Board prior to such dates as may be fixed by the
26 Board. With an application for an inter-track wagering

HB4002- 254 -LRB100 11337 MJP 21715 b
1 location license there shall be delivered to the Board a
2 certified check or bank draft payable to the order of the
3 Board for an amount equal to $500. The application shall be
4 on forms prescribed and furnished by the Board. The
5 application shall comply with all other rules, regulations
6 and conditions imposed by the Board in connection
7 therewith.
8 (2) The Board shall examine the applications with
9 respect to their conformity with this Act and the rules and
10 regulations imposed by the Board. If found to be in
11 compliance with the Act and rules and regulations of the
12 Board, the Board may then issue a license to conduct
13 inter-track wagering and simulcast wagering to such
14 applicant. All such applications shall be acted upon by the
15 Board at a meeting to be held on such date as may be fixed
16 by the Board.
17 (3) In granting licenses to conduct inter-track
18 wagering and simulcast wagering, the Board shall give due
19 consideration to the best interests of the public, of horse
20 racing, and of maximizing revenue to the State.
21 (4) Prior to the issuance of a license to conduct
22 inter-track wagering and simulcast wagering, the applicant
23 shall file with the Board a bond payable to the State of
24 Illinois in the sum of $50,000, executed by the applicant
25 and a surety company or companies authorized to do business
26 in this State, and conditioned upon (i) the payment by the

HB4002- 255 -LRB100 11337 MJP 21715 b
1 licensee of all taxes due under Section 27 or 27.1 and any
2 other monies due and payable under this Act, and (ii)
3 distribution by the licensee, upon presentation of the
4 winning ticket or tickets, of all sums payable to the
5 patrons of pari-mutuel pools.
6 (5) Each license to conduct inter-track wagering and
7 simulcast wagering shall specify the person to whom it is
8 issued, the dates on which such wagering is permitted, and
9 the track or location where the wagering is to be
10 conducted.
11 (6) All wagering under such license is subject to this
12 Act and to the rules and regulations from time to time
13 prescribed by the Board, and every such license issued by
14 the Board shall contain a recital to that effect.
15 (7) An inter-track wagering licensee or inter-track
16 wagering location licensee may accept wagers at the track
17 or location where it is licensed, or as otherwise provided
18 under this Act.
19 (8) Inter-track wagering or simulcast wagering shall
20 not be conducted at any track less than 4 5 miles from a
21 track at which a racing meeting is in progress.
22 (8.1) Inter-track wagering location licensees who
23 derive their licenses from a particular organization
24 licensee shall conduct inter-track wagering and simulcast
25 wagering only at locations that are within 160 miles of
26 that race track where the particular organization licensee

HB4002- 256 -LRB100 11337 MJP 21715 b
1 is licensed to conduct racing. However, inter-track
2 wagering and simulcast wagering shall not be conducted by
3 those licensees at any location within 5 miles of any race
4 track at which a horse race meeting has been licensed in
5 the current year, unless the person having operating
6 control of such race track has given its written consent to
7 such inter-track wagering location licensees, which
8 consent must be filed with the Board at or prior to the
9 time application is made. In the case of any inter-track
10 wagering location licensee initially licensed after
11 December 31, 2013, inter-track wagering and simulcast
12 wagering shall not be conducted by those inter-track
13 wagering location licensees that are located outside the
14 City of Chicago at any location within 8 miles of any race
15 track at which a horse race meeting has been licensed in
16 the current year, unless the person having operating
17 control of such race track has given its written consent to
18 such inter-track wagering location licensees, which
19 consent must be filed with the Board at or prior to the
20 time application is made.
21 (8.2) Inter-track wagering or simulcast wagering shall
22 not be conducted by an inter-track wagering location
23 licensee at any location within 500 feet of an existing
24 church, an or existing elementary or secondary public
25 school, or an existing elementary or secondary private
26 school registered with or recognized by the State Board of

HB4002- 257 -LRB100 11337 MJP 21715 b
1 Education school, nor within 500 feet of the residences of
2 more than 50 registered voters without receiving written
3 permission from a majority of the registered voters at such
4 residences. Such written permission statements shall be
5 filed with the Board. The distance of 500 feet shall be
6 measured to the nearest part of any building used for
7 worship services, education programs, residential
8 purposes, or conducting inter-track wagering by an
9 inter-track wagering location licensee, and not to
10 property boundaries. However, inter-track wagering or
11 simulcast wagering may be conducted at a site within 500
12 feet of a church, school or residences of 50 or more
13 registered voters if such church, school or residences have
14 been erected or established, or such voters have been
15 registered, after the Board issues the original
16 inter-track wagering location license at the site in
17 question. Inter-track wagering location licensees may
18 conduct inter-track wagering and simulcast wagering only
19 in areas that are zoned for commercial or manufacturing
20 purposes or in areas for which a special use has been
21 approved by the local zoning authority. However, no license
22 to conduct inter-track wagering and simulcast wagering
23 shall be granted by the Board with respect to any
24 inter-track wagering location within the jurisdiction of
25 any local zoning authority which has, by ordinance or by
26 resolution, prohibited the establishment of an inter-track

HB4002- 258 -LRB100 11337 MJP 21715 b
1 wagering location within its jurisdiction. However,
2 inter-track wagering and simulcast wagering may be
3 conducted at a site if such ordinance or resolution is
4 enacted after the Board licenses the original inter-track
5 wagering location licensee for the site in question.
6 (9) (Blank).
7 (10) An inter-track wagering licensee or an
8 inter-track wagering location licensee may retain, subject
9 to the payment of the privilege taxes and the purses, an
10 amount not to exceed 17% of all money wagered. Each program
11 of racing conducted by each inter-track wagering licensee
12 or inter-track wagering location licensee shall be
13 considered a separate racing day for the purpose of
14 determining the daily handle and computing the privilege
15 tax or pari-mutuel tax on such daily handle as provided in
16 Section 27.
17 (10.1) Except as provided in subsection (g) of Section
18 27 of this Act, inter-track wagering location licensees
19 shall pay 1% of the pari-mutuel handle at each location to
20 the municipality in which such location is situated and 1%
21 of the pari-mutuel handle at each location to the county in
22 which such location is situated. In the event that an
23 inter-track wagering location licensee is situated in an
24 unincorporated area of a county, such licensee shall pay 2%
25 of the pari-mutuel handle from such location to such
26 county.

HB4002- 259 -LRB100 11337 MJP 21715 b
1 (10.2) Notwithstanding any other provision of this
2 Act, with respect to inter-track intertrack wagering at a
3 race track located in a county that has a population of
4 more than 230,000 and that is bounded by the Mississippi
5 River ("the first race track"), or at a facility operated
6 by an inter-track wagering licensee or inter-track
7 wagering location licensee that derives its license from
8 the organization licensee that operates the first race
9 track, on races conducted at the first race track or on
10 races conducted at another Illinois race track and
11 simultaneously televised to the first race track or to a
12 facility operated by an inter-track wagering licensee or
13 inter-track wagering location licensee that derives its
14 license from the organization licensee that operates the
15 first race track, those moneys shall be allocated as
16 follows:
17 (A) That portion of all moneys wagered on
18 standardbred racing that is required under this Act to
19 be paid to purses shall be paid to purses for
20 standardbred races.
21 (B) That portion of all moneys wagered on
22 thoroughbred racing that is required under this Act to
23 be paid to purses shall be paid to purses for
24 thoroughbred races.
25 (11) (A) After payment of the privilege or pari-mutuel
26 tax, any other applicable taxes, and the costs and expenses

HB4002- 260 -LRB100 11337 MJP 21715 b
1 in connection with the gathering, transmission, and
2 dissemination of all data necessary to the conduct of
3 inter-track wagering, the remainder of the monies retained
4 under either Section 26 or Section 26.2 of this Act by the
5 inter-track wagering licensee on inter-track wagering
6 shall be allocated with 50% to be split between the 2
7 participating licensees and 50% to purses, except that an
8 inter-track intertrack wagering licensee that derives its
9 license from a track located in a county with a population
10 in excess of 230,000 and that borders the Mississippi River
11 shall not divide any remaining retention with the Illinois
12 organization licensee that provides the race or races, and
13 an inter-track intertrack wagering licensee that accepts
14 wagers on races conducted by an organization licensee that
15 conducts a race meet in a county with a population in
16 excess of 230,000 and that borders the Mississippi River
17 shall not divide any remaining retention with that
18 organization licensee.
19 (B) From the sums permitted to be retained pursuant to
20 this Act each inter-track wagering location licensee shall
21 pay (i) the privilege or pari-mutuel tax to the State; (ii)
22 4.75% of the pari-mutuel handle on inter-track intertrack
23 wagering at such location on races as purses, except that
24 an inter-track intertrack wagering location licensee that
25 derives its license from a track located in a county with a
26 population in excess of 230,000 and that borders the

HB4002- 261 -LRB100 11337 MJP 21715 b
1 Mississippi River shall retain all purse moneys for its own
2 purse account consistent with distribution set forth in
3 this subsection (h), and inter-track intertrack wagering
4 location licensees that accept wagers on races conducted by
5 an organization licensee located in a county with a
6 population in excess of 230,000 and that borders the
7 Mississippi River shall distribute all purse moneys to
8 purses at the operating host track; (iii) until January 1,
9 2000, except as provided in subsection (g) of Section 27 of
10 this Act, 1% of the pari-mutuel handle wagered on
11 inter-track wagering and simulcast wagering at each
12 inter-track wagering location licensee facility to the
13 Horse Racing Tax Allocation Fund, provided that, to the
14 extent the total amount collected and distributed to the
15 Horse Racing Tax Allocation Fund under this subsection (h)
16 during any calendar year exceeds the amount collected and
17 distributed to the Horse Racing Tax Allocation Fund during
18 calendar year 1994, that excess amount shall be
19 redistributed (I) to all inter-track wagering location
20 licensees, based on each licensee's pro-rata share of the
21 total handle from inter-track wagering and simulcast
22 wagering for all inter-track wagering location licensees
23 during the calendar year in which this provision is
24 applicable; then (II) the amounts redistributed to each
25 inter-track wagering location licensee as described in
26 subpart (I) shall be further redistributed as provided in

HB4002- 262 -LRB100 11337 MJP 21715 b
1 subparagraph (B) of paragraph (5) of subsection (g) of this
2 Section 26 provided first, that the shares of those
3 amounts, which are to be redistributed to the host track or
4 to purses at the host track under subparagraph (B) of
5 paragraph (5) of subsection (g) of this Section 26 shall be
6 redistributed based on each host track's pro rata share of
7 the total inter-track wagering and simulcast wagering
8 handle at all host tracks during the calendar year in
9 question, and second, that any amounts redistributed as
10 described in part (I) to an inter-track wagering location
11 licensee that accepts wagers on races conducted by an
12 organization licensee that conducts a race meet in a county
13 with a population in excess of 230,000 and that borders the
14 Mississippi River shall be further redistributed as
15 provided in subparagraphs (D) and (E) of paragraph (7) of
16 subsection (g) of this Section 26, with the portion of that
17 further redistribution allocated to purses at that
18 organization licensee to be divided between standardbred
19 purses and thoroughbred purses based on the amounts
20 otherwise allocated to purses at that organization
21 licensee during the calendar year in question; and (iv) 8%
22 of the pari-mutuel handle on inter-track wagering wagered
23 at such location to satisfy all costs and expenses of
24 conducting its wagering. The remainder of the monies
25 retained by the inter-track wagering location licensee
26 shall be allocated 40% to the location licensee and 60% to

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1 the organization licensee which provides the Illinois
2 races to the location, except that an inter-track
3 intertrack wagering location licensee that derives its
4 license from a track located in a county with a population
5 in excess of 230,000 and that borders the Mississippi River
6 shall not divide any remaining retention with the
7 organization licensee that provides the race or races and
8 an inter-track intertrack wagering location licensee that
9 accepts wagers on races conducted by an organization
10 licensee that conducts a race meet in a county with a
11 population in excess of 230,000 and that borders the
12 Mississippi River shall not divide any remaining retention
13 with the organization licensee. Notwithstanding the
14 provisions of clauses (ii) and (iv) of this paragraph, in
15 the case of the additional inter-track wagering location
16 licenses authorized under paragraph (1) of this subsection
17 (h) by Public Act 87-110 this amendatory Act of 1991, those
18 licensees shall pay the following amounts as purses: during
19 the first 12 months the licensee is in operation, 5.25% of
20 the pari-mutuel handle wagered at the location on races;
21 during the second 12 months, 5.25%; during the third 12
22 months, 5.75%; during the fourth 12 months, 6.25%; and
23 during the fifth 12 months and thereafter, 6.75%. The
24 following amounts shall be retained by the licensee to
25 satisfy all costs and expenses of conducting its wagering:
26 during the first 12 months the licensee is in operation,

HB4002- 264 -LRB100 11337 MJP 21715 b
1 8.25% of the pari-mutuel handle wagered at the location;
2 during the second 12 months, 8.25%; during the third 12
3 months, 7.75%; during the fourth 12 months, 7.25%; and
4 during the fifth 12 months and thereafter, 6.75%. For
5 additional inter-track intertrack wagering location
6 licensees authorized under Public Act 89-16 this
7 amendatory Act of 1995, purses for the first 12 months the
8 licensee is in operation shall be 5.75% of the pari-mutuel
9 wagered at the location, purses for the second 12 months
10 the licensee is in operation shall be 6.25%, and purses
11 thereafter shall be 6.75%. For additional inter-track
12 intertrack location licensees authorized under Public Act
13 89-16 this amendatory Act of 1995, the licensee shall be
14 allowed to retain to satisfy all costs and expenses: 7.75%
15 of the pari-mutuel handle wagered at the location during
16 its first 12 months of operation, 7.25% during its second
17 12 months of operation, and 6.75% thereafter.
18 (C) There is hereby created the Horse Racing Tax
19 Allocation Fund which shall remain in existence until
20 December 31, 1999. Moneys remaining in the Fund after
21 December 31, 1999 shall be paid into the General Revenue
22 Fund. Until January 1, 2000, all monies paid into the Horse
23 Racing Tax Allocation Fund pursuant to this paragraph (11)
24 by inter-track wagering location licensees located in park
25 districts of 500,000 population or less, or in a
26 municipality that is not included within any park district

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

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

HB4002- 267 -LRB100 11337 MJP 21715 b
1 contiguous to the state of Indiana and (ii) has a 1990
2 population of 88,257 according to the United States
3 Bureau of the Census, except that if the conservation
4 district does not maintain a museum, the monies shall
5 be allocated equally between the county and the
6 municipality in which the inter-track wagering
7 location licensee is located for general purposes) or
8 to a municipal recreation board for park purposes (if
9 an inter-track wagering location licensee is located
10 in a municipality that is not included within any park
11 district and park maintenance is the function of the
12 municipal recreation board and the municipality has a
13 1990 population of 9,302 according to the United States
14 Bureau of the Census); provided that the monies are
15 distributed to each park district or conservation
16 district or municipality that does not have a park
17 district in an amount equal to four-sevenths of the
18 amount collected by each inter-track wagering location
19 licensee within the park district or conservation
20 district or municipality for the Fund. Monies that were
21 paid into the Horse Racing Tax Allocation Fund before
22 August 9, 1991 (the effective date of Public Act
23 87-110) this amendatory Act of 1991 by an inter-track
24 wagering location licensee located in a municipality
25 that is not included within any park district but is
26 included within a conservation district as provided in

HB4002- 268 -LRB100 11337 MJP 21715 b
1 this paragraph shall, as soon as practicable after
2 August 9, 1991 (the effective date of Public Act
3 87-110) this amendatory Act of 1991, be allocated and
4 paid to that conservation district as provided in this
5 paragraph. Any park district or municipality not
6 maintaining a museum may deposit the monies in the
7 corporate fund of the park district or municipality
8 where the inter-track wagering location is located, to
9 be used for general purposes; and
10 One-seventh to the Agricultural Premium Fund to be
11 used for distribution to agricultural home economics
12 extension councils in accordance with "An Act in
13 relation to additional support and finances for the
14 Agricultural and Home Economic Extension Councils in
15 the several counties of this State and making an
16 appropriation therefor", approved July 24, 1967.
17 Until January 1, 2000, all other monies paid into the
18 Horse Racing Tax Allocation Fund pursuant to this paragraph
19 (11) shall be allocated by appropriation as follows:
20 Two-sevenths to the Department of Agriculture.
21 Fifty percent of this two-sevenths shall be used to
22 promote the Illinois horse racing and breeding
23 industry, and shall be distributed by the Department of
24 Agriculture upon the advice of a 9-member committee
25 appointed by the Governor consisting of the following
26 members: the Director of Agriculture, who shall serve

HB4002- 269 -LRB100 11337 MJP 21715 b
1 as chairman; 2 representatives of organization
2 licensees conducting thoroughbred race meetings in
3 this State, recommended by those licensees; 2
4 representatives of organization licensees conducting
5 standardbred race meetings in this State, recommended
6 by those licensees; a representative of the Illinois
7 Thoroughbred Breeders and Owners Foundation,
8 recommended by that Foundation; a representative of
9 the Illinois Standardbred Owners and Breeders
10 Association, recommended by that Association; a
11 representative of the Horsemen's Benevolent and
12 Protective Association or any successor organization
13 thereto established in Illinois comprised of the
14 largest number of owners and trainers, recommended by
15 that Association or that successor organization; and a
16 representative of the Illinois Harness Horsemen's
17 Association, recommended by that Association.
18 Committee members shall serve for terms of 2 years,
19 commencing January 1 of each even-numbered year. If a
20 representative of any of the above-named entities has
21 not been recommended by January 1 of any even-numbered
22 year, the Governor shall appoint a committee member to
23 fill that position. Committee members shall receive no
24 compensation for their services as members but shall be
25 reimbursed for all actual and necessary expenses and
26 disbursements incurred in the performance of their

HB4002- 270 -LRB100 11337 MJP 21715 b
1 official duties. The remaining 50% of this
2 two-sevenths shall be distributed to county fairs for
3 premiums and rehabilitation as set forth in the
4 Agricultural Fair Act;
5 Four-sevenths to museums and aquariums located in
6 park districts of over 500,000 population; provided
7 that the monies are distributed in accordance with the
8 previous year's distribution of the maintenance tax
9 for such museums and aquariums as provided in Section 2
10 of the Park District Aquarium and Museum Act; and
11 One-seventh to the Agricultural Premium Fund to be
12 used for distribution to agricultural home economics
13 extension councils in accordance with "An Act in
14 relation to additional support and finances for the
15 Agricultural and Home Economic Extension Councils in
16 the several counties of this State and making an
17 appropriation therefor", approved July 24, 1967. This
18 subparagraph (C) shall be inoperative and of no force
19 and effect on and after January 1, 2000.
20 (D) Except as provided in paragraph (11) of this
21 subsection (h), with respect to purse allocation from
22 inter-track intertrack wagering, the monies so
23 retained shall be divided as follows:
24 (i) If the inter-track wagering licensee,
25 except an inter-track intertrack wagering licensee
26 that derives its license from an organization

HB4002- 271 -LRB100 11337 MJP 21715 b
1 licensee located in a county with a population in
2 excess of 230,000 and bounded by the Mississippi
3 River, is not conducting its own race meeting
4 during the same dates, then the entire purse
5 allocation shall be to purses at the track where
6 the races wagered on are being conducted.
7 (ii) If the inter-track wagering licensee,
8 except an inter-track intertrack wagering licensee
9 that derives its license from an organization
10 licensee located in a county with a population in
11 excess of 230,000 and bounded by the Mississippi
12 River, is also conducting its own race meeting
13 during the same dates, then the purse allocation
14 shall be as follows: 50% to purses at the track
15 where the races wagered on are being conducted; 50%
16 to purses at the track where the inter-track
17 wagering licensee is accepting such wagers.
18 (iii) If the inter-track wagering is being
19 conducted by an inter-track wagering location
20 licensee, except an inter-track intertrack
21 wagering location licensee that derives its
22 license from an organization licensee located in a
23 county with a population in excess of 230,000 and
24 bounded by the Mississippi River, the entire purse
25 allocation for Illinois races shall be to purses at
26 the track where the race meeting being wagered on

HB4002- 272 -LRB100 11337 MJP 21715 b
1 is being held.
2 (12) The Board shall have all powers necessary and
3 proper to fully supervise and control the conduct of
4 inter-track wagering and simulcast wagering by inter-track
5 wagering licensees and inter-track wagering location
6 licensees, including, but not limited to the following:
7 (A) The Board is vested with power to promulgate
8 reasonable rules and regulations for the purpose of
9 administering the conduct of this wagering and to
10 prescribe reasonable rules, regulations and conditions
11 under which such wagering shall be held and conducted.
12 Such rules and regulations are to provide for the
13 prevention of practices detrimental to the public
14 interest and for the best interests of said wagering
15 and to impose penalties for violations thereof.
16 (B) The Board, and any person or persons to whom it
17 delegates this power, is vested with the power to enter
18 the facilities of any licensee to determine whether
19 there has been compliance with the provisions of this
20 Act and the rules and regulations relating to the
21 conduct of such wagering.
22 (C) The Board, and any person or persons to whom it
23 delegates this power, may eject or exclude from any
24 licensee's facilities, any person whose conduct or
25 reputation is such that his presence on such premises
26 may, in the opinion of the Board, call into the

HB4002- 273 -LRB100 11337 MJP 21715 b
1 question the honesty and integrity of, or interfere
2 with the orderly conduct of such wagering; provided,
3 however, that no person shall be excluded or ejected
4 from such premises solely on the grounds of race,
5 color, creed, national origin, ancestry, or sex.
6 (D) (Blank).
7 (E) The Board is vested with the power to appoint
8 delegates to execute any of the powers granted to it
9 under this Section for the purpose of administering
10 this wagering and any rules and regulations
11 promulgated in accordance with this Act.
12 (F) The Board shall name and appoint a State
13 director of this wagering who shall be a representative
14 of the Board and whose duty it shall be to supervise
15 the conduct of inter-track wagering as may be provided
16 for by the rules and regulations of the Board; such
17 rules and regulation shall specify the method of
18 appointment and the Director's powers, authority and
19 duties.
20 (G) The Board is vested with the power to impose
21 civil penalties of up to $5,000 against individuals and
22 up to $10,000 against licensees for each violation of
23 any provision of this Act relating to the conduct of
24 this wagering, any rules adopted by the Board, any
25 order of the Board or any other action which in the
26 Board's discretion, is a detriment or impediment to

HB4002- 274 -LRB100 11337 MJP 21715 b
1 such wagering.
2 (13) The Department of Agriculture may enter into
3 agreements with licensees authorizing such licensees to
4 conduct inter-track wagering on races to be held at the
5 licensed race meetings conducted by the Department of
6 Agriculture. Such agreement shall specify the races of the
7 Department of Agriculture's licensed race meeting upon
8 which the licensees will conduct wagering. In the event
9 that a licensee conducts inter-track pari-mutuel wagering
10 on races from the Illinois State Fair or DuQuoin State Fair
11 which are in addition to the licensee's previously approved
12 racing program, those races shall be considered a separate
13 racing day for the purpose of determining the daily handle
14 and computing the privilege or pari-mutuel tax on that
15 daily handle as provided in Sections 27 and 27.1. Such
16 agreements shall be approved by the Board before such
17 wagering may be conducted. In determining whether to grant
18 approval, the Board shall give due consideration to the
19 best interests of the public and of horse racing. The
20 provisions of paragraphs (1), (8), (8.1), and (8.2) of
21 subsection (h) of this Section which are not specified in
22 this paragraph (13) shall not apply to licensed race
23 meetings conducted by the Department of Agriculture at the
24 Illinois State Fair in Sangamon County or the DuQuoin State
25 Fair in Perry County, or to any wagering conducted on those
26 race meetings.

HB4002- 275 -LRB100 11337 MJP 21715 b
1 (14) An inter-track wagering location license
2 authorized by the Board in 2016 that is owned and operated
3 by a race track in Rock Island County shall be transferred
4 to a commonly owned race track in Cook County on August 12,
5 2016 (the effective date of Public Act 99-757) this
6 amendatory Act of the 99th General Assembly. The licensee
7 shall retain its status in relation to purse distribution
8 under paragraph (11) of this subsection (h) following the
9 transfer to the new entity. The pari-mutuel tax credit
10 under Section 32.1 shall not be applied toward any
11 pari-mutuel tax obligation of the inter-track wagering
12 location licensee of the license that is transferred under
13 this paragraph (14).
14 (i) Notwithstanding the other provisions of this Act, the
15conduct of wagering at wagering facilities is authorized on all
16days, except as limited by subsection (b) of Section 19 of this
17Act.
18(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 98-968,
19eff. 8-15-14; 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;
20revised 9-14-16.)
21 (230 ILCS 5/26.8)
22 Sec. 26.8. Beginning on February 1, 2014 and through
23December 31, 2018, each wagering licensee may impose a
24surcharge of up to 0.5% on winning wagers and winnings from
25wagers. The surcharge shall be deducted from winnings prior to

HB4002- 276 -LRB100 11337 MJP 21715 b
1payout. All amounts collected from the imposition of this
2surcharge shall be evenly distributed to the organization
3licensee and the purse account of the organization licensee
4with which the licensee is affiliated. The amounts distributed
5under this Section shall be in addition to the amounts paid
6pursuant to paragraph (10) of subsection (h) of Section 26,
7Section 26.3, Section 26.4, Section 26.5, and Section 26.7.
8(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
9 (230 ILCS 5/26.9)
10 Sec. 26.9. Beginning on February 1, 2014 and through
11December 31, 2018, in addition to the surcharge imposed in
12Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each
13licensee shall impose a surcharge of 0.2% on winning wagers and
14winnings from wagers. The surcharge shall be deducted from
15winnings prior to payout. All amounts collected from the
16surcharges imposed under this Section shall be remitted to the
17Board. From amounts collected under this Section, the Board
18shall deposit an amount not to exceed $100,000 annually into
19the Quarter Horse Purse Fund and all remaining amounts into the
20Horse Racing Fund.
21(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
22 (230 ILCS 5/27) (from Ch. 8, par. 37-27)
23 Sec. 27. (a) In addition to the organization license fee
24provided by this Act, until January 1, 2000, a graduated

HB4002- 277 -LRB100 11337 MJP 21715 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.

HB4002- 278 -LRB100 11337 MJP 21715 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) and through December
1131, 2018, an additional pari-mutuel tax at the rate of 0.25%
12shall be imposed on advance deposit wagering. Until August 25,
132012, the additional 0.25% pari-mutuel tax imposed on advance
14deposit wagering by Public Act 96-972 shall be deposited into
15the Quarter 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

HB4002- 279 -LRB100 11337 MJP 21715 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.

HB4002- 280 -LRB100 11337 MJP 21715 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

HB4002- 281 -LRB100 11337 MJP 21715 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

HB4002- 282 -LRB100 11337 MJP 21715 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 as the Board prescribes, which shall,
19pursuant to rule, cause the fees to be distributed to the
20county or municipality.
21 (g) Notwithstanding any provision in this Act to the
22contrary, if in any calendar year the total taxes and fees from
23wagering on live racing and from inter-track wagering required
24to be collected from licensees and distributed under this Act
25to all State and local governmental authorities exceeds the
26amount of such taxes and fees distributed to each State and

HB4002- 283 -LRB100 11337 MJP 21715 b
1local governmental authority to which each State and local
2governmental authority was entitled under this Act for calendar
3year 1994, then the first $11 million of that excess amount
4shall be allocated at the earliest possible date for
5distribution as purse money for the succeeding calendar year.
6Upon reaching the 1994 level, and until the excess amount of
7taxes and fees exceeds $11 million, the Board shall direct all
8licensees to cease paying the subject taxes and fees and the
9Board shall direct all licensees to allocate any such excess
10amount for purses as follows:
11 (i) the excess amount shall be initially divided
12 between thoroughbred and standardbred purses based on the
13 thoroughbred's and standardbred's respective percentages
14 of total Illinois live wagering in calendar year 1994;
15 (ii) each thoroughbred and standardbred organization
16 licensee issued an organization licensee in that
17 succeeding allocation year shall be allocated an amount
18 equal to the product of its percentage of total Illinois
19 live thoroughbred or standardbred wagering in calendar
20 year 1994 (the total to be determined based on the sum of
21 1994 on-track wagering for all organization licensees
22 issued organization licenses in both the allocation year
23 and the preceding year) multiplied by the total amount
24 allocated for standardbred or thoroughbred purses,
25 provided that the first $1,500,000 of the amount allocated
26 to standardbred purses under item (i) shall be allocated to

HB4002- 284 -LRB100 11337 MJP 21715 b
1 the Department of Agriculture to be expended with the
2 assistance and advice of the Illinois Standardbred
3 Breeders Funds Advisory Board for the purposes listed in
4 subsection (g) of Section 31 of this Act, before the amount
5 allocated to standardbred purses under item (i) is
6 allocated to standardbred organization licensees in the
7 succeeding allocation year.
8 To the extent the excess amount of taxes and fees to be
9collected and distributed to State and local governmental
10authorities exceeds $11 million, that excess amount shall be
11collected and distributed to State and local authorities as
12provided for under this Act.
13(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756,
14eff. 8-12-16.)
15 (230 ILCS 5/30) (from Ch. 8, par. 37-30)
16 Sec. 30. (a) The General Assembly declares that it is the
17policy of this State to encourage the breeding of thoroughbred
18horses in this State and the ownership of such horses by
19residents of this State in order to provide for: sufficient
20numbers of high quality thoroughbred horses to participate in
21thoroughbred racing meetings in this State, and to establish
22and preserve the agricultural and commercial benefits of such
23breeding and racing industries to the State of Illinois. It is
24the intent of the General Assembly to further this policy by
25the provisions of this Act.

HB4002- 285 -LRB100 11337 MJP 21715 b
1 (b) Each organization licensee conducting a thoroughbred
2racing meeting pursuant to this Act shall provide at least two
3races each day limited to Illinois conceived and foaled horses
4or Illinois foaled horses or both. A minimum of 6 races shall
5be conducted each week limited to Illinois conceived and foaled
6or Illinois foaled horses or both. No horses shall be permitted
7to start in such races unless duly registered under the rules
8of the Department of Agriculture.
9 (c) Conditions of races under subsection (b) shall be
10commensurate with past performance, quality, and class of
11Illinois conceived and foaled and Illinois foaled horses
12available. If, however, sufficient competition cannot be had
13among horses of that class on any day, the races may, with
14consent of the Board, be eliminated for that day and substitute
15races provided.
16 (d) There is hereby created a special fund of the State
17Treasury to be known as the Illinois Thoroughbred Breeders
18Fund.
19 Beginning on the effective date of this amendatory Act of
20the 100th General Assembly, the Illinois Thoroughbred Breeders
21Fund shall become a non-appropriated trust fund held separately
22from State moneys. Expenditures from this Fund shall no longer
23be subject to appropriation.
24 Except as provided in subsection (g) of Section 27 of this
25Act, 8.5% of all the monies received by the State as privilege
26taxes on Thoroughbred racing meetings shall be paid into the

HB4002- 286 -LRB100 11337 MJP 21715 b
1Illinois Thoroughbred Breeders Fund.
2 Notwithstanding any provision of law to the contrary,
3amounts deposited into the Illinois Thoroughbred Breeders Fund
4from revenues generated by electronic gaming after the
5effective date of this amendatory Act of the 100th General
6Assembly shall be in addition to tax and fee amounts paid under
7this Section for calendar year 2017 and thereafter.
8 (e) The Illinois Thoroughbred Breeders Fund shall be
9administered by the Department of Agriculture with the advice
10and assistance of the Advisory Board created in subsection (f)
11of this Section.
12 (f) The Illinois Thoroughbred Breeders Fund Advisory Board
13shall consist of the Director of the Department of Agriculture,
14who shall serve as Chairman; a member of the Illinois Racing
15Board, designated by it; 2 representatives of the organization
16licensees conducting thoroughbred racing meetings, recommended
17by them; 2 representatives of the Illinois Thoroughbred
18Breeders and Owners Foundation, recommended by it; one
19representative and 2 representatives of the Horsemen's
20Benevolent Protective Association; and one representative from
21the Illinois Thoroughbred Horsemen's Association or any
22successor organization established in Illinois comprised of
23the largest number of owners and trainers, recommended by it,
24with one representative of the Horsemen's Benevolent and
25Protective Association to come from its Illinois Division, and
26one from its Chicago Division. Advisory Board members shall

HB4002- 287 -LRB100 11337 MJP 21715 b
1serve for 2 years commencing January 1 of each odd numbered
2year. If representatives of the organization licensees
3conducting thoroughbred racing meetings, the Illinois
4Thoroughbred Breeders and Owners Foundation, and the
5Horsemen's Benevolent Protection Association, and the Illinois
6Thoroughbred Horsemen's Association have not been recommended
7by January 1, of each odd numbered year, the Director of the
8Department of Agriculture shall make an appointment for the
9organization failing to so recommend a member of the Advisory
10Board. Advisory Board members shall receive no compensation for
11their services as members but shall be reimbursed for all
12actual and necessary expenses and disbursements incurred in the
13execution of their official duties.
14 (g) No monies shall be expended from the Illinois
15Thoroughbred Breeders Fund except as appropriated by the
16General Assembly. Monies expended appropriated from the
17Illinois Thoroughbred Breeders Fund shall be expended by the
18Department of Agriculture, with the advice and assistance of
19the Illinois Thoroughbred Breeders Fund Advisory Board, for the
20following purposes only:
21 (1) To provide purse supplements to owners of horses
22 participating in races limited to Illinois conceived and
23 foaled and Illinois foaled horses. Any such purse
24 supplements shall not be included in and shall be paid in
25 addition to any purses, stakes, or breeders' awards offered
26 by each organization licensee as determined by agreement

HB4002- 288 -LRB100 11337 MJP 21715 b
1 between such organization licensee and an organization
2 representing the horsemen. No monies from the Illinois
3 Thoroughbred Breeders Fund shall be used to provide purse
4 supplements for claiming races in which the minimum
5 claiming price is less than $7,500.
6 (2) To provide stakes and awards to be paid to the
7 owners of the winning horses in certain races limited to
8 Illinois conceived and foaled and Illinois foaled horses
9 designated as stakes races.
10 (2.5) To provide an award to the owner or owners of an
11 Illinois conceived and foaled or Illinois foaled horse that
12 wins a maiden special weight, an allowance, overnight
13 handicap race, or claiming race with claiming price of
14 $10,000 or more providing the race is not restricted to
15 Illinois conceived and foaled or Illinois foaled horses.
16 Awards shall also be provided to the owner or owners of
17 Illinois conceived and foaled and Illinois foaled horses
18 that place second or third in those races. To the extent
19 that additional moneys are required to pay the minimum
20 additional awards of 40% of the purse the horse earns for
21 placing first, second or third in those races for Illinois
22 foaled horses and of 60% of the purse the horse earns for
23 placing first, second or third in those races for Illinois
24 conceived and foaled horses, those moneys shall be provided
25 from the purse account at the track where earned.
26 (3) To provide stallion awards to the owner or owners

HB4002- 289 -LRB100 11337 MJP 21715 b
1 of any stallion that is duly registered with the Illinois
2 Thoroughbred Breeders Fund Program prior to the effective
3 date of this amendatory Act of 1995 whose duly registered
4 Illinois conceived and foaled offspring wins a race
5 conducted at an Illinois thoroughbred racing meeting other
6 than a claiming race, provided that the stallion stood
7 service within Illinois at the time the offspring was
8 conceived and that the stallion did not stand for service
9 outside of Illinois at any time during the year in which
10 the offspring was conceived. Such award shall not be paid
11 to the owner or owners of an Illinois stallion that served
12 outside this State at any time during the calendar year in
13 which such race was conducted.
14 (4) To provide $75,000 annually for purses to be
15 distributed to county fairs that provide for the running of
16 races during each county fair exclusively for the
17 thoroughbreds conceived and foaled in Illinois. The
18 conditions of the races shall be developed by the county
19 fair association and reviewed by the Department with the
20 advice and assistance of the Illinois Thoroughbred
21 Breeders Fund Advisory Board. There shall be no wagering of
22 any kind on the running of Illinois conceived and foaled
23 races at county fairs.
24 (4.1) To provide purse money for an Illinois stallion
25 stakes program.
26 (5) No less than 90% 80% of all monies appropriated

HB4002- 290 -LRB100 11337 MJP 21715 b
1 from the Illinois Thoroughbred Breeders Fund shall be
2 expended for the purposes in (1), (2), (2.5), (3), (4),
3 (4.1), and (5) as shown above.
4 (6) To provide for educational programs regarding the
5 thoroughbred breeding industry.
6 (7) To provide for research programs concerning the
7 health, development and care of the thoroughbred horse.
8 (8) To provide for a scholarship and training program
9 for students of equine veterinary medicine.
10 (9) To provide for dissemination of public information
11 designed to promote the breeding of thoroughbred horses in
12 Illinois.
13 (10) To provide for all expenses incurred in the
14 administration of the Illinois Thoroughbred Breeders Fund.
15 (h) The Illinois Thoroughbred Breeders Fund is not subject
16to administrative charges or chargebacks, including, but not
17limited to, those authorized under Section 8h of the State
18Finance Act. Whenever the Governor finds that the amount in the
19Illinois Thoroughbred Breeders Fund is more than the total of
20the outstanding appropriations from such fund, the Governor
21shall notify the State Comptroller and the State Treasurer of
22such fact. The Comptroller and the State Treasurer, upon
23receipt of such notification, shall transfer such excess amount
24from the Illinois Thoroughbred Breeders Fund to the General
25Revenue Fund.
26 (i) A sum equal to 13% of the first prize money of every

HB4002- 291 -LRB100 11337 MJP 21715 b
1purse won by an Illinois foaled or Illinois conceived and
2foaled horse in races not limited to Illinois foaled horses or
3Illinois conceived and foaled horses, or both, shall be paid by
4the organization licensee conducting the horse race meeting.
5Such sum shall be paid 50% from the organization licensee's
6share of the money wagered and 50% from the purse account as
7follows: 11 1/2% to the breeder of the winning horse and 1 1/2%
8to the organization representing thoroughbred breeders and
9owners who representative serves on the Illinois Thoroughbred
10Breeders Fund Advisory Board for verifying the amounts of
11breeders' awards earned, ensuring their distribution in
12accordance with this Act, and servicing and promoting the
13Illinois thoroughbred horse racing industry. Beginning in the
14calendar year in which an organization licensee that is
15eligible to receive payments 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 an Illinois
20conceived and foaled horse, or both, shall be paid 30% from the
21organization licensee's account and 70% from the purse account
22as follows: 20% to the breeder of the winning horse and 1 1/2%
23to the organization representing thoroughbred breeders and
24owners whose representatives serves on the Illinois
25Thoroughbred Breeders Fund Advisory Board for verifying the
26amounts of breeders' awards earned, assuring their

HB4002- 292 -LRB100 11337 MJP 21715 b
1distribution in accordance with this Act, and servicing and
2promoting the Illinois Thoroughbred racing industry. A sum
3equal to 12 1/2% of the first prize money of every purse won by
4an Illinois foaled or an Illinois conceived and foaled horse in
5races not limited to Illinois foaled horses or Illinois
6conceived and foaled horses, or both, shall be paid by the
7organization licensee conducting the horse race meeting. Such
8sum shall be paid from the organization licensee's share of the
9money wagered as follows: 11 1/2% to the breeder of the winning
10horse and 1% to the organization representing thoroughbred
11breeders and owners whose representative serves on the Illinois
12Thoroughbred Breeders Fund Advisory Board for verifying the
13amounts of breeders' awards earned, assuring their
14distribution in accordance with this Act, and servicing and
15promoting the Illinois thoroughbred horse racing industry. The
16organization representing thoroughbred breeders and owners
17shall cause all expenditures of monies received under this
18subsection (i) to be audited at least annually by a registered
19public accountant. The organization shall file copies of each
20annual audit with the Racing Board, the Clerk of the House of
21Representatives and the Secretary of the Senate, and shall make
22copies of each annual audit available to the public upon
23request and upon payment of the reasonable cost of photocopying
24the requested number of copies. Such payments shall not reduce
25any award to the owner of the horse or reduce the taxes payable
26under this Act. Upon completion of its racing meet, each

HB4002- 293 -LRB100 11337 MJP 21715 b
1organization licensee shall deliver to the organization
2representing thoroughbred breeders and owners whose
3representative serves on the Illinois Thoroughbred Breeders
4Fund Advisory Board a listing of all the Illinois foaled and
5the Illinois conceived and foaled horses which won breeders'
6awards and the amount of such breeders' awards under this
7subsection to verify accuracy of payments and assure proper
8distribution of breeders' awards in accordance with the
9provisions of this Act. Such payments shall be delivered by the
10organization licensee within 30 days of the end of each race
11meeting.
12 (j) A sum equal to 13% of the first prize money won in
13every race limited to Illinois foaled horses or Illinois
14conceived and foaled horses, or both, shall be paid in the
15following manner by the organization licensee conducting the
16horse race meeting, 50% from the organization licensee's share
17of the money wagered and 50% from the purse account as follows:
1811 1/2% to the breeders of the horses in each such race which
19are the official first, second, third, and fourth finishers and
201 1/2% to the organization representing thoroughbred breeders
21and owners whose representatives serves on the Illinois
22Thoroughbred Breeders Fund Advisory Board for verifying the
23amounts of breeders' awards earned, ensuring their proper
24distribution in accordance with this Act, and servicing and
25promoting the Illinois horse racing industry. Beginning in the
26calendar year in which an organization licensee that is

HB4002- 294 -LRB100 11337 MJP 21715 b
1eligible to receive payments under paragraph (13) of subsection
2(g) of Section 26 of this Act begins to receive funds from
3electronic gaming, a sum of 21 1/2% of every purse in a race
4limited to Illinois foaled horses or Illinois conceived and
5foaled horses, or both, shall be paid by the organization
6licensee conducting the horse race meeting. Such sum shall be
7paid 30% from the organization licensee's account and 70% from
8the purse account as follows: 20% to the breeders of the horses
9in each such race who are official first, second, third and
10fourth finishers and 1 1/2% to the organization representing
11thoroughbred breeders and owners whose representatives serve
12on the Illinois Thoroughbred Breeders Fund Advisory Board for
13verifying the amounts of breeders' awards earned, ensuring
14their proper distribution in accordance with this Act, and
15servicing and promoting the Illinois thoroughbred horse racing
16industry. The organization representing thoroughbred breeders
17and owners shall cause all expenditures of moneys received
18under this subsection (j) to be audited at least annually by a
19registered public accountant. The organization shall file
20copies of each annual audit with the Racing Board, the Clerk of
21the House of Representatives and the Secretary of the Senate,
22and shall make copies of each annual audit available to the
23public upon request and upon payment of the reasonable cost of
24photocopying the requested number of copies. A sum equal to 12
251/2% of the first prize money won in each race limited to
26Illinois foaled horses or Illinois conceived and foaled horses,

HB4002- 295 -LRB100 11337 MJP 21715 b
1or both, shall be paid in the following manner by the
2organization licensee conducting the horse race meeting, from
3the organization licensee's share of the money wagered: 11 1/2%
4to the breeders of the horses in each such race which are the
5official first, second, third and fourth finishers and 1% to
6the organization representing thoroughbred breeders and owners
7whose representative serves on the Illinois Thoroughbred
8Breeders Fund Advisory Board for verifying the amounts of
9breeders' awards earned, assuring their proper distribution in
10accordance with this Act, and servicing and promoting the
11Illinois thoroughbred horse racing industry. The organization
12representing thoroughbred breeders and owners shall cause all
13expenditures of monies received under this subsection (j) to be
14audited at least annually by a registered public accountant.
15The organization shall file copies of each annual audit with
16the Racing Board, the Clerk of the House of Representatives and
17the Secretary of the Senate, and shall make copies of each
18annual audit available to the public upon request and upon
19payment of the reasonable cost of photocopying the requested
20number of copies.
21 The amounts 11 1/2% paid to the breeders in accordance with
22this subsection shall be distributed as follows:
23 (1) 60% of such sum shall be paid to the breeder of the
24 horse which finishes in the official first position;
25 (2) 20% of such sum shall be paid to the breeder of the
26 horse which finishes in the official second position;

HB4002- 296 -LRB100 11337 MJP 21715 b
1 (3) 15% of such sum shall be paid to the breeder of the
2 horse which finishes in the official third position; and
3 (4) 5% of such sum shall be paid to the breeder of the
4 horse which finishes in the official fourth position.
5 Such payments shall not reduce any award to the owners of a
6horse or reduce the taxes payable under this Act. Upon
7completion of its racing meet, each organization licensee shall
8deliver to the organization representing thoroughbred breeders
9and owners whose representative serves on the Illinois
10Thoroughbred Breeders Fund Advisory Board a listing of all the
11Illinois foaled and the Illinois conceived and foaled horses
12which won breeders' awards and the amount of such breeders'
13awards in accordance with the provisions of this Act. Such
14payments shall be delivered by the organization licensee within
1530 days of the end of each race meeting.
16 (k) The term "breeder", as used herein, means the owner of
17the mare at the time the foal is dropped. An "Illinois foaled
18horse" is a foal dropped by a mare which enters this State on
19or before December 1, in the year in which the horse is bred,
20provided the mare remains continuously in this State until its
21foal is born. An "Illinois foaled horse" also means a foal born
22of a mare in the same year as the mare enters this State on or
23before March 1, and remains in this State at least 30 days
24after foaling, is bred back during the season of the foaling to
25an Illinois Registered Stallion (unless a veterinarian
26certifies that the mare should not be bred for health reasons),

HB4002- 297 -LRB100 11337 MJP 21715 b
1and is not bred to a stallion standing in any other state
2during the season of foaling. An "Illinois foaled horse" also
3means a foal born in Illinois of a mare purchased at public
4auction subsequent to the mare entering this State on or before
5March 1 prior to February 1 of the foaling year providing the
6mare is owned solely by one or more Illinois residents or an
7Illinois entity that is entirely owned by one or more Illinois
8residents.
9 (l) The Department of Agriculture shall, by rule, with the
10advice and assistance of the Illinois Thoroughbred Breeders
11Fund Advisory Board:
12 (1) Qualify stallions for Illinois breeding; such
13 stallions to stand for service within the State of Illinois
14 at the time of a foal's conception. Such stallion must not
15 stand for service at any place outside the State of
16 Illinois during the calendar year in which the foal is
17 conceived. The Department of Agriculture may assess and
18 collect an application fee of up to $500 fees for the
19 registration of Illinois-eligible stallions. All fees
20 collected are to be held in trust accounts for the purposes
21 set forth in this Act and in accordance with Section 205-15
22 of the Department of Agriculture Law paid into the Illinois
23 Thoroughbred Breeders Fund.
24 (2) Provide for the registration of Illinois conceived
25 and foaled horses and Illinois foaled horses. No such horse
26 shall compete in the races limited to Illinois conceived

HB4002- 298 -LRB100 11337 MJP 21715 b
1 and foaled horses or Illinois foaled horses or both unless
2 registered with the Department of Agriculture. The
3 Department of Agriculture may prescribe such forms as are
4 necessary to determine the eligibility of such horses. The
5 Department of Agriculture may assess and collect
6 application fees for the registration of Illinois-eligible
7 foals. All fees collected are to be held in trust accounts
8 for the purposes set forth in this Act and in accordance
9 with Section 205-15 of the Department of Agriculture Law
10 paid into the Illinois Thoroughbred Breeders Fund. No
11 person shall knowingly prepare or cause preparation of an
12 application for registration of such foals containing
13 false information.
14 (m) The Department of Agriculture, with the advice and
15assistance of the Illinois Thoroughbred Breeders Fund Advisory
16Board, shall provide that certain races limited to Illinois
17conceived and foaled and Illinois foaled horses be stakes races
18and determine the total amount of stakes and awards to be paid
19to the owners of the winning horses in such races.
20 In determining the stakes races and the amount of awards
21for such races, the Department of Agriculture shall consider
22factors, including but not limited to, the amount of money
23appropriated for the Illinois Thoroughbred Breeders Fund
24program, organization licensees' contributions, availability
25of stakes caliber horses as demonstrated by past performances,
26whether the race can be coordinated into the proposed racing

HB4002- 299 -LRB100 11337 MJP 21715 b
1dates within organization licensees' racing dates, opportunity
2for colts and fillies and various age groups to race, public
3wagering on such races, and the previous racing schedule.
4 (n) The Board and the organizational licensee shall notify
5the Department of the conditions and minimum purses for races
6limited to Illinois conceived and foaled and Illinois foaled
7horses conducted for each organizational licensee conducting a
8thoroughbred racing meeting. The Department of Agriculture
9with the advice and assistance of the Illinois Thoroughbred
10Breeders Fund Advisory Board may allocate monies for purse
11supplements for such races. In determining whether to allocate
12money and the amount, the Department of Agriculture shall
13consider factors, including but not limited to, the amount of
14money appropriated for the Illinois Thoroughbred Breeders Fund
15program, the number of races that may occur, and the
16organizational licensee's purse structure.
17 (o) (Blank).
18(Source: P.A. 98-692, eff. 7-1-14.)
19 (230 ILCS 5/30.5)
20 Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
21 (a) The General Assembly declares that it is the policy of
22this State to encourage the breeding of racing quarter horses
23in this State and the ownership of such horses by residents of
24this State in order to provide for sufficient numbers of high
25quality racing quarter horses in this State and to establish

HB4002- 300 -LRB100 11337 MJP 21715 b
1and preserve the agricultural and commercial benefits of such
2breeding and racing industries to the State of Illinois. It is
3the intent of the General Assembly to further this policy by
4the provisions of this Act.
5 (b) There is hereby created non-appropriated trust a
6special fund in the State Treasury to be known as the Illinois
7Racing Quarter Horse Breeders Fund, which is held separately
8from State moneys. Except as provided in subsection (g) of
9Section 27 of this Act, 8.5% of all the moneys received by the
10State as pari-mutuel taxes on quarter horse racing shall be
11paid into the Illinois Racing Quarter Horse Breeders Fund. The
12Illinois Racing Quarter Horse Breeders Fund shall not be
13subject to administrative charges or chargebacks, including,
14but not limited to, those authorized under Section 8h of the
15State Finance Act.
16 (c) The Illinois Racing Quarter Horse Breeders Fund shall
17be administered by the Department of Agriculture with the
18advice and assistance of the Advisory Board created in
19subsection (d) of this Section.
20 (d) The Illinois Racing Quarter Horse Breeders Fund
21Advisory Board shall consist of the Director of the Department
22of Agriculture, who shall serve as Chairman; a member of the
23Illinois Racing Board, designated by it; one representative of
24the organization licensees conducting pari-mutuel quarter
25horse racing meetings, recommended by them; 2 representatives
26of the Illinois Running Quarter Horse Association, recommended

HB4002- 301 -LRB100 11337 MJP 21715 b
1by it; and the Superintendent of Fairs and Promotions from the
2Department of Agriculture. Advisory Board members shall serve
3for 2 years commencing January 1 of each odd numbered year. If
4representatives have not been recommended by January 1 of each
5odd numbered year, the Director of the Department of
6Agriculture may make an appointment for the organization
7failing to so recommend a member of the Advisory Board.
8Advisory Board members shall receive no compensation for their
9services as members but may be reimbursed for all actual and
10necessary expenses and disbursements incurred in the execution
11of their official duties.
12 (e) Moneys in No moneys shall be expended from the Illinois
13Racing Quarter Horse Breeders Fund except as appropriated by
14the General Assembly. Moneys appropriated from the Illinois
15Racing Quarter Horse Breeders Fund shall be expended by the
16Department of Agriculture, with the advice and assistance of
17the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
18for the following purposes only:
19 (1) To provide stakes and awards to be paid to the
20 owners of the winning horses in certain races. This
21 provision is limited to Illinois conceived and foaled
22 horses.
23 (2) To provide an award to the owner or owners of an
24 Illinois conceived and foaled horse that wins a race when
25 pari-mutuel wagering is conducted; providing the race is
26 not restricted to Illinois conceived and foaled horses.

HB4002- 302 -LRB100 11337 MJP 21715 b
1 (3) To provide purse money for an Illinois stallion
2 stakes program.
3 (4) To provide for purses to be distributed for the
4 running of races during the Illinois State Fair and the
5 DuQuoin State Fair exclusively for quarter horses
6 conceived and foaled in Illinois.
7 (5) To provide for purses to be distributed for the
8 running of races at Illinois county fairs exclusively for
9 quarter horses conceived and foaled in Illinois.
10 (6) To provide for purses to be distributed for running
11 races exclusively for quarter horses conceived and foaled
12 in Illinois at locations in Illinois determined by the
13 Department of Agriculture with advice and consent of the
14 Illinois Racing Quarter Horse Breeders Fund Advisory
15 Board.
16 (7) No less than 90% of all moneys appropriated from
17 the Illinois Racing Quarter Horse Breeders Fund shall be
18 expended for the purposes in items (1), (2), (3), (4), and
19 (5) of this subsection (e).
20 (8) To provide for research programs concerning the
21 health, development, and care of racing quarter horses.
22 (9) To provide for dissemination of public information
23 designed to promote the breeding of racing quarter horses
24 in Illinois.
25 (10) To provide for expenses incurred in the
26 administration of the Illinois Racing Quarter Horse

HB4002- 303 -LRB100 11337 MJP 21715 b
1 Breeders Fund.
2 (f) The Department of Agriculture shall, by rule, with the
3advice and assistance of the Illinois Racing Quarter Horse
4Breeders Fund Advisory Board:
5 (1) Qualify stallions for Illinois breeding; such
6 stallions to stand for service within the State of
7 Illinois, at the time of a foal's conception. Such stallion
8 must not stand for service at any place outside the State
9 of Illinois during the calendar year in which the foal is
10 conceived. The Department of Agriculture may assess and
11 collect application fees for the registration of
12 Illinois-eligible stallions. All fees collected are to be
13 paid into the Illinois Racing Quarter Horse Breeders Fund.
14 (2) Provide for the registration of Illinois conceived
15 and foaled horses. No such horse shall compete in the races
16 limited to Illinois conceived and foaled horses unless it
17 is registered with the Department of Agriculture. The
18 Department of Agriculture may prescribe such forms as are
19 necessary to determine the eligibility of such horses. The
20 Department of Agriculture may assess and collect
21 application fees for the registration of Illinois-eligible
22 foals. All fees collected are to be paid into the Illinois
23 Racing Quarter Horse Breeders Fund. No person shall
24 knowingly prepare or cause preparation of an application
25 for registration of such foals that contains false
26 information.

HB4002- 304 -LRB100 11337 MJP 21715 b
1 (g) The Department of Agriculture, with the advice and
2assistance of the Illinois Racing Quarter Horse Breeders Fund
3Advisory Board, shall provide that certain races limited to
4Illinois conceived and foaled be stakes races and determine the
5total amount of stakes and awards to be paid to the owners of
6the winning horses in such races.
7(Source: P.A. 98-463, eff. 8-16-13.)
8 (230 ILCS 5/31) (from Ch. 8, par. 37-31)
9 Sec. 31. (a) The General Assembly declares that it is the
10policy of this State to encourage the breeding of standardbred
11horses in this State and the ownership of such horses by
12residents of this State in order to provide for: sufficient
13numbers of high quality standardbred horses to participate in
14harness racing meetings in this State, and to establish and
15preserve the agricultural and commercial benefits of such
16breeding and racing industries to the State of Illinois. It is
17the intent of the General Assembly to further this policy by
18the provisions of this Section of this Act.
19 (b) Each organization licensee conducting a harness racing
20meeting pursuant to this Act shall provide for at least two
21races each race program limited to Illinois conceived and
22foaled horses. A minimum of 6 races shall be conducted each
23week limited to Illinois conceived and foaled horses. No horses
24shall be permitted to start in such races unless duly
25registered under the rules of the Department of Agriculture.

HB4002- 305 -LRB100 11337 MJP 21715 b
1 (b-5) Organization licensees, not including the Illinois
2State Fair or the DuQuoin State Fair, shall provide stake races
3and early closer races for Illinois conceived and foaled horses
4so that purses distributed for such races shall be no less than
517% of total purses distributed for harness racing in that
6calendar year in addition to any stakes payments and starting
7fees contributed by horse owners.
8 (b-10) Each organization licensee conducting a harness
9racing meeting pursuant to this Act shall provide an owner
10award to be paid from the purse account equal to 25% of the
11amount earned by Illinois conceived and foaled horses in races
12that are not restricted to Illinois conceived and foaled
13horses. The owner awards shall not be paid on races below the
14$10,000 claiming class.
15 (c) Conditions of races under subsection (b) shall be
16commensurate with past performance, quality and class of
17Illinois conceived and foaled horses available. If, however,
18sufficient competition cannot be had among horses of that class
19on any day, the races may, with consent of the Board, be
20eliminated for that day and substitute races provided.
21 (d) There is hereby created a special fund of the State
22Treasury to be known as the Illinois Standardbred Breeders
23Fund.
24 During the calendar year 1981, and each year thereafter,
25except as provided in subsection (g) of Section 27 of this Act,
26eight and one-half per cent of all the monies received by the

HB4002- 306 -LRB100 11337 MJP 21715 b
1State as privilege taxes on harness racing meetings shall be
2paid into the Illinois Standardbred Breeders Fund.
3 (e) The Illinois Standardbred Breeders Fund shall be
4administered by the Department of Agriculture with the
5assistance and advice of the Advisory Board created in
6subsection (f) of this Section.
7 (f) The Illinois Standardbred Breeders Fund Advisory Board
8is hereby created. The Advisory Board shall consist of the
9Director of the Department of Agriculture, who shall serve as
10Chairman; the Superintendent of the Illinois State Fair; a
11member of the Illinois Racing Board, designated by it; a
12representative of the largest association of Illinois
13standardbred owners and breeders, recommended by it; a
14representative of a statewide association representing
15agricultural fairs in Illinois, recommended by it, such
16representative to be from a fair at which Illinois conceived
17and foaled racing is conducted; a representative of the
18organization licensees conducting harness racing meetings,
19recommended by them; a representative of the Breeder's
20Committee of the association representing the largest number of
21standardbred owners, breeders, trainers, caretakers, and
22drivers, recommended by it; and a representative of the
23association representing the largest number of standardbred
24owners, breeders, trainers, caretakers, and drivers,
25recommended by it. Advisory Board members shall serve for 2
26years commencing January 1 of each odd numbered year. If

HB4002- 307 -LRB100 11337 MJP 21715 b
1representatives of the largest association of Illinois
2standardbred owners and breeders, a statewide association of
3agricultural fairs in Illinois, the association representing
4the largest number of standardbred owners, breeders, trainers,
5caretakers, and drivers, a member of the Breeder's Committee of
6the association representing the largest number of
7standardbred owners, breeders, trainers, caretakers, and
8drivers, and the organization licensees conducting harness
9racing meetings have not been recommended by January 1 of each
10odd numbered year, the Director of the Department of
11Agriculture shall make an appointment for the organization
12failing to so recommend a member of the Advisory Board.
13Advisory Board members shall receive no compensation for their
14services as members but shall be reimbursed for all actual and
15necessary expenses and disbursements incurred in the execution
16of their official duties.
17 (g) No monies shall be expended from the Illinois
18Standardbred Breeders Fund except as appropriated by the
19General Assembly. Monies appropriated from the Illinois
20Standardbred Breeders Fund shall be expended by the Department
21of Agriculture, with the assistance and advice of the Illinois
22Standardbred Breeders Fund Advisory Board for the following
23purposes only:
24 1. To provide purses for races limited to Illinois
25 conceived and foaled horses at the State Fair and the
26 DuQuoin State Fair.

HB4002- 308 -LRB100 11337 MJP 21715 b
1 2. To provide purses for races limited to Illinois
2 conceived and foaled horses at county fairs.
3 3. To provide purse supplements for races limited to
4 Illinois conceived and foaled horses conducted by
5 associations conducting harness racing meetings.
6 4. No less than 75% of all monies in the Illinois
7 Standardbred Breeders Fund shall be expended for purses in
8 1, 2 and 3 as shown above.
9 5. In the discretion of the Department of Agriculture
10 to provide awards to harness breeders of Illinois conceived
11 and foaled horses which win races conducted by organization
12 licensees conducting harness racing meetings. A breeder is
13 the owner of a mare at the time of conception. No more than
14 10% of all monies appropriated from the Illinois
15 Standardbred Breeders Fund shall be expended for such
16 harness breeders awards. No more than 25% of the amount
17 expended for harness breeders awards shall be expended for
18 expenses incurred in the administration of such harness
19 breeders awards.
20 6. To pay for the improvement of racing facilities
21 located at the State Fair and County fairs.
22 7. To pay the expenses incurred in the administration
23 of the Illinois Standardbred Breeders Fund.
24 8. To promote the sport of harness racing, including
25 grants up to a maximum of $7,500 per fair per year for
26 conducting pari-mutuel wagering during the advertised

HB4002- 309 -LRB100 11337 MJP 21715 b
1 dates of a county fair.
2 9. To pay up to $50,000 annually for the Department of
3 Agriculture to conduct drug testing at county fairs racing
4 standardbred horses.
5 10. To pay up to $100,000 annually for distribution to
6 Illinois county fairs to supplement premiums offered in
7 junior classes.
8 11. To pay up to $100,000 annually for division and
9 equal distribution to the animal sciences department of
10 each Illinois public university system engaged in equine
11 research and education on or before the effective date of
12 this amendatory Act of the 100th General Assembly for
13 equine research and education.
14 (h) (Blank) Whenever the Governor finds that the amount in
15the Illinois Standardbred Breeders Fund is more than the total
16of the outstanding appropriations from such fund, the Governor
17shall notify the State Comptroller and the State Treasurer of
18such fact. The Comptroller and the State Treasurer, upon
19receipt of such notification, shall transfer such excess amount
20from the Illinois Standardbred Breeders Fund to the General
21Revenue Fund.
22 (i) A sum equal to 13% 12 1/2% of the first prize money of
23the gross every purse won by an Illinois conceived and foaled
24horse shall be paid 50% by the organization licensee conducting
25the horse race meeting to the breeder of such winning horse
26from the organization licensee's account and 50% from the purse

HB4002- 310 -LRB100 11337 MJP 21715 b
1account of the licensee share of the money wagered. Such
2payment shall not reduce any award to the owner of the horse or
3reduce the taxes payable under this Act. Such payment shall be
4delivered by the organization licensee at the end of each
5quarter race meeting.
6 (j) The Department of Agriculture shall, by rule, with the
7assistance and advice of the Illinois Standardbred Breeders
8Fund Advisory Board:
9 1. Qualify stallions for Illinois Standardbred
10 Breeders Fund breeding; such stallion shall be owned by a
11 resident of the State of Illinois or by an Illinois
12 corporation all of whose shareholders, directors, officers
13 and incorporators are residents of the State of Illinois.
14 Such stallion shall stand for service at and within the
15 State of Illinois at the time of a foal's conception, and
16 such stallion must not stand for service at any place, nor
17 may semen from such stallion be transported, outside the
18 State of Illinois during that calendar year in which the
19 foal is conceived and that the owner of the stallion was
20 for the 12 months prior, a resident of Illinois. Foals
21 conceived outside the State of Illinois from shipped semen
22 from a stallion qualified for breeders' awards under this
23 Section are not eligible to participate in the Illinois
24 conceived and foaled program. The articles of agreement of
25 any partnership, joint venture, limited partnership,
26 syndicate, association or corporation and any bylaws and

HB4002- 311 -LRB100 11337 MJP 21715 b
1 stock certificates must contain a restriction that
2 provides that the ownership or transfer of interest by any
3 one of the persons a party to the agreement can only be
4 made to a person who qualifies as an Illinois resident.
5 2. Provide for the registration of Illinois conceived
6 and foaled horses and no such horse shall compete in the
7 races limited to Illinois conceived and foaled horses
8 unless registered with the Department of Agriculture. The
9 Department of Agriculture may prescribe such forms as may
10 be necessary to determine the eligibility of such horses.
11 No person shall knowingly prepare or cause preparation of
12 an application for registration of such foals containing
13 false information. A mare (dam) must be in the state at
14 least 180 30 days prior to foaling or remain in the State
15 at least 30 days at the time of foaling. Beginning with the
16 1996 breeding season and for foals of 1997 and thereafter,
17 a foal conceived in the State of Illinois by transported
18 fresh semen may be eligible for Illinois conceived and
19 foaled registration provided all breeding and foaling
20 requirements are met. The stallion must be qualified for
21 Illinois Standardbred Breeders Fund breeding at the time of
22 conception and the mare must be inseminated within the
23 State of Illinois. The foal must be dropped in Illinois and
24 properly registered with the Department of Agriculture in
25 accordance with this Act.
26 3. Provide that at least a 5 day racing program shall

HB4002- 312 -LRB100 11337 MJP 21715 b
1 be conducted at the State Fair each year, which program
2 shall include at least the following races limited to
3 Illinois conceived and foaled horses: (a) a two year old
4 Trot and Pace, and Filly Division of each; (b) a three year
5 old Trot and Pace, and Filly Division of each; (c) an aged
6 Trot and Pace, and Mare Division of each.
7 4. Provide for the payment of nominating, sustaining
8 and starting fees for races promoting the sport of harness
9 racing and for the races to be conducted at the State Fair
10 as provided in subsection (j) 3 of this Section provided
11 that the nominating, sustaining and starting payment
12 required from an entrant shall not exceed 2% of the purse
13 of such race. All nominating, sustaining and starting
14 payments shall be held for the benefit of entrants and
15 shall be paid out as part of the respective purses for such
16 races. Nominating, sustaining and starting fees shall be
17 held in trust accounts for the purposes as set forth in
18 this Act and in accordance with Section 205-15 of the
19 Department of Agriculture Law (20 ILCS 205/205-15).
20 5. Provide for the registration with the Department of
21 Agriculture of Colt Associations or county fairs desiring
22 to sponsor races at county fairs.
23 6. Provide for the promotion of producing standardbred
24 racehorses by providing a bonus award program for owners of
25 2-year-old horses that win multiple major stakes races that
26 are limited to Illinois conceived and foaled horses.

HB4002- 313 -LRB100 11337 MJP 21715 b
1 (k) The Department of Agriculture, with the advice and
2assistance of the Illinois Standardbred Breeders Fund Advisory
3Board, may allocate monies for purse supplements for such
4races. In determining whether to allocate money and the amount,
5the Department of Agriculture shall consider factors,
6including but not limited to, the amount of money appropriated
7for the Illinois Standardbred Breeders Fund program, the number
8of races that may occur, and an organizational licensee's purse
9structure. The organizational licensee shall notify the
10Department of Agriculture of the conditions and minimum purses
11for races limited to Illinois conceived and foaled horses to be
12conducted by each organizational licensee conducting a harness
13racing meeting for which purse supplements have been
14negotiated.
15 (l) All races held at county fairs and the State Fair which
16receive funds from the Illinois Standardbred Breeders Fund
17shall be conducted in accordance with the rules of the United
18States Trotting Association unless otherwise modified by the
19Department of Agriculture.
20 (m) At all standardbred race meetings held or conducted
21under authority of a license granted by the Board, and at all
22standardbred races held at county fairs which are approved by
23the Department of Agriculture or at the Illinois or DuQuoin
24State Fairs, no one shall jog, train, warm up or drive a
25standardbred horse unless he or she is wearing a protective
26safety helmet, with the chin strap fastened and in place, which

HB4002- 314 -LRB100 11337 MJP 21715 b
1meets the standards and requirements as set forth in the 1984
2Standard for Protective Headgear for Use in Harness Racing and
3Other Equestrian Sports published by the Snell Memorial
4Foundation, or any standards and requirements for headgear the
5Illinois Racing Board may approve. Any other standards and
6requirements so approved by the Board shall equal or exceed
7those published by the Snell Memorial Foundation. Any
8equestrian helmet bearing the Snell label shall be deemed to
9have met those standards and requirements.
10(Source: P.A. 99-756, eff. 8-12-16.)
11 (230 ILCS 5/32.1)
12 Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
13real estate equalization.
14 (a) In order to encourage new investment in Illinois
15racetrack facilities and mitigate differing real estate tax
16burdens among all racetracks, the licensees affiliated or
17associated with each racetrack that has been awarded live
18racing dates in the current year shall receive an immediate
19pari-mutuel tax credit in an amount equal to the greater of (i)
2050% of the amount of the real estate taxes paid in the prior
21year attributable to that racetrack, or (ii) the amount by
22which the real estate taxes paid in the prior year attributable
23to that racetrack exceeds 60% of the average real estate taxes
24paid in the prior year for all racetracks awarded live horse
25racing meets in the current year.

HB4002- 315 -LRB100 11337 MJP 21715 b
1 Each year, regardless of whether the organization licensee
2conducted live racing in the year of certification, the Board
3shall certify in writing, prior to December 31, the real estate
4taxes paid in that year for each racetrack and the amount of
5the pari-mutuel tax credit that each organization licensee,
6inter-track intertrack wagering licensee, and inter-track
7intertrack wagering location licensee that derives its license
8from such racetrack is entitled in the succeeding calendar
9year. The real estate taxes considered under this Section for
10any racetrack shall be those taxes on the real estate parcels
11and related facilities used to conduct a horse race meeting and
12inter-track wagering at such racetrack under this Act. In no
13event shall the amount of the tax credit under this Section
14exceed the amount of pari-mutuel taxes otherwise calculated
15under this Act. The amount of the tax credit under this Section
16shall be retained by each licensee and shall not be subject to
17any reallocation or further distribution under this Act. The
18Board may promulgate emergency rules to implement this Section.
19 (b) After the end of the 7-year period beginning on January
201 of the calendar year immediately following the effective date
21of this amendatory Act of the 100th General Assembly, the
22organization licensee shall be ineligible to receive a tax
23credit under this Section.
24(Source: P.A. 91-40, eff. 6-25-99; revised 9-2-16.)
25 (230 ILCS 5/34.3 new)

HB4002- 316 -LRB100 11337 MJP 21715 b
1 Sec. 34.3. Drug testing. The Illinois Racing Board and the
2Department of Agriculture shall jointly establish a program for
3the purpose of conducting drug testing of horses at county
4fairs and shall adopt any rules necessary for enforcement of
5the program. The rules shall include appropriate penalties for
6violations.
7 (230 ILCS 5/36) (from Ch. 8, par. 37-36)
8 Sec. 36. (a) Whoever administers or conspires to administer
9to any horse a hypnotic, narcotic, stimulant, depressant or any
10chemical substance which may affect the speed of a horse at any
11time in any race where the purse or any part of the purse is
12made of money authorized by any Section of this Act, except
13those chemical substances permitted by ruling of the Board,
14internally, externally or by hypodermic method in a race or
15prior thereto, or whoever knowingly enters a horse in any race
16within a period of 24 hours after any hypnotic, narcotic,
17stimulant, depressant or any other chemical substance which may
18affect the speed of a horse at any time, except those chemical
19substances permitted by ruling of the Board, has been
20administered to such horse either internally or externally or
21by hypodermic method for the purpose of increasing or retarding
22the speed of such horse shall be guilty of a Class 4 felony.
23The Board shall suspend or revoke such violator's license.
24 (b) The term "hypnotic" as used in this Section includes
25all barbituric acid preparations and derivatives.

HB4002- 317 -LRB100 11337 MJP 21715 b
1 (c) The term "narcotic" as used in this Section includes
2opium and all its alkaloids, salts, preparations and
3derivatives, cocaine and all its salts, preparations and
4derivatives and substitutes.
5 (d) The provisions of this Section 36 and the treatment
6authorized herein apply to horses entered in and competing in
7race meetings as defined in Section 3.07 of this Act and to
8horses entered in and competing at any county fair.
9(Source: P.A. 79-1185.)
10 (230 ILCS 5/40) (from Ch. 8, par. 37-40)
11 Sec. 40. (a) The imposition of any fine or penalty provided
12in this Act shall not preclude the Board in its rules and
13regulations from imposing a fine or penalty for any other
14action which, in the Board's discretion, is a detriment or
15impediment to horse racing.
16 (b) The Director of Agriculture or his or her authorized
17representative shall impose the following monetary penalties
18and hold administrative hearings as required for failure to
19submit the following applications, lists, or reports within the
20time period, date or manner required by statute or rule or for
21removing a foal from Illinois prior to inspection:
22 (1) late filing of a renewal application for offering
23 or standing stallion for service:
24 (A) if an application is submitted no more than 30
25 days late, $50;

HB4002- 318 -LRB100 11337 MJP 21715 b
1 (B) if an application is submitted no more than 45
2 days late, $150; or
3 (C) if an application is submitted more than 45
4 days late, if filing of the application is allowed
5 under an administrative hearing, $250;
6 (2) late filing of list or report of mares bred:
7 (A) if a list or report is submitted no more than
8 30 days late, $50;
9 (B) if a list or report is submitted no more than
10 60 days late, $150; or
11 (C) if a list or report is submitted more than 60
12 days late, if filing of the list or report is allowed
13 under an administrative hearing, $250;
14 (3) filing an Illinois foaled thoroughbred mare status
15 report after the statutory deadline as provided in
16 subsection (k) of Section 30 of this Act December 31:
17 (A) if a report is submitted no more than 30 days
18 late, $50;
19 (B) if a report is submitted no more than 90 days
20 late, $150;
21 (C) if a report is submitted no more than 150 days
22 late, $250; or
23 (D) if a report is submitted more than 150 days
24 late, if filing of the report is allowed under an
25 administrative hearing, $500;
26 (4) late filing of application for foal eligibility

HB4002- 319 -LRB100 11337 MJP 21715 b
1 certificate:
2 (A) if an application is submitted no more than 30
3 days late, $50;
4 (B) if an application is submitted no more than 90
5 days late, $150;
6 (C) if an application is submitted no more than 150
7 days late, $250; or
8 (D) if an application is submitted more than 150
9 days late, if filing of the application is allowed
10 under an administrative hearing, $500;
11 (5) failure to report the intent to remove a foal from
12 Illinois prior to inspection, identification and
13 certification by a Department of Agriculture investigator,
14 $50; and
15 (6) if a list or report of mares bred is incomplete,
16 $50 per mare not included on the list or report.
17 Any person upon whom monetary penalties are imposed under
18this Section 3 times within a 5-year 5 year period shall have
19any further monetary penalties imposed at double the amounts
20set forth above. All monies assessed and collected for
21violations relating to thoroughbreds shall be paid into the
22Illinois Thoroughbred Breeders Fund. All monies assessed and
23collected for violations relating to standardbreds shall be
24paid into the Illinois Standardbred Breeders Fund.
25(Source: P.A. 99-933, eff. 1-27-17.)

HB4002- 320 -LRB100 11337 MJP 21715 b
1 (230 ILCS 5/54.75)
2 Sec. 54.75. Horse Racing Equity Trust Fund.
3 (a) There is created a Fund to be known as the Horse Racing
4Equity Trust Fund, which is a non-appropriated trust fund held
5separate and apart from State moneys. The Fund shall consist of
6moneys paid into it by owners licensees under the Illinois
7Riverboat Gambling Act for the purposes described in this
8Section. The Fund shall be administered by the Board. Moneys in
9the Fund shall be distributed as directed and certified by the
10Board in accordance with the provisions of subsection (b).
11 (b) The moneys deposited into the Fund, plus any accrued
12interest on those moneys, shall be distributed within 10 days
13after those moneys are deposited into the Fund as follows:
14 (1) Sixty percent of all moneys distributed under this
15 subsection shall be distributed to organization licensees
16 to be distributed at their race meetings as purses.
17 Fifty-seven percent of the amount distributed under this
18 paragraph (1) shall be distributed for thoroughbred race
19 meetings and 43% shall be distributed for standardbred race
20 meetings. Within each breed, moneys shall be allocated to
21 each organization licensee's purse fund in accordance with
22 the ratio between the purses generated for that breed by
23 that licensee during the prior calendar year and the total
24 purses generated throughout the State for that breed during
25 the prior calendar year by licensees in the current
26 calendar year.

HB4002- 321 -LRB100 11337 MJP 21715 b
1 (2) The remaining 40% of the moneys distributed under
2 this subsection (b) shall be distributed as follows:
3 (A) 11% shall be distributed to any person (or its
4 successors or assigns) who had operating control of a
5 racetrack that conducted live racing in 2002 at a
6 racetrack in a county with at least 230,000 inhabitants
7 that borders the Mississippi River and is a licensee in
8 the current year; and
9 (B) the remaining 89% shall be distributed pro rata
10 according to the aggregate proportion of total handle
11 from wagering on live races conducted in Illinois
12 (irrespective of where the wagers are placed) for
13 calendar years 2004 and 2005 to any person (or its
14 successors or assigns) who (i) had majority operating
15 control of a racing facility at which live racing was
16 conducted in calendar year 2002, (ii) is a licensee in
17 the current year, and (iii) is not eligible to receive
18 moneys under subparagraph (A) of this paragraph (2).
19 The moneys received by an organization licensee
20 under this paragraph (2) shall be used by each
21 organization licensee to improve, maintain, market,
22 and otherwise operate its racing facilities to conduct
23 live racing, which shall include backstretch services
24 and capital improvements related to live racing and the
25 backstretch. Any organization licensees sharing common
26 ownership may pool the moneys received and spent at all

HB4002- 322 -LRB100 11337 MJP 21715 b
1 racing facilities commonly owned in order to meet these
2 requirements.
3 If any person identified in this paragraph (2) becomes
4 ineligible to receive moneys from the Fund, such amount
5 shall be redistributed among the remaining persons in
6 proportion to their percentages otherwise calculated.
7 (c) The Board shall monitor organization licensees to
8ensure that moneys paid to organization licensees under this
9Section are distributed by the organization licensees as
10provided in subsection (b).
11(Source: P.A. 95-1008, eff. 12-15-08.)
12 (230 ILCS 5/56 new)
13 Sec. 56. Electronic gaming.
14 (a) A person, firm, corporation, or limited liability
15company having operating control of a race track may apply to
16the Gaming Board for an electronic gaming license. An
17electronic gaming license shall authorize its holder to conduct
18electronic gaming on the grounds of the race track controlled
19by the licensee's race track. Only one electronic gaming
20license may be awarded for any race track. A holder of an
21electronic gaming license shall be subject to the Illinois
22Gambling Act and rules of the Illinois Gaming Board concerning
23electronic gaming. If the person, firm, corporation, or limited
24liability company having operating control of a race track is
25found by the Illinois Gaming Board to be unsuitable for an

HB4002- 323 -LRB100 11337 MJP 21715 b
1electronic gaming license under the Illinois Gambling Act and
2rules of the Gaming Board, that person, firm, corporation, or
3limited liability company shall not be granted an electronic
4gaming license. Each license shall specify the number of gaming
5positions that its holder may operate.
6 An electronic gaming licensee may not permit persons under
721 years of age to be present in its electronic gaming
8facility, but the licensee may accept wagers on live racing and
9inter-track wagers at its electronic gaming facility.
10 (b) For purposes of this subsection, "adjusted gross
11receipts" means an electronic gaming licensee's gross receipts
12less winnings paid to wagerers and shall also include any
13amounts that would otherwise be deducted pursuant to subsection
14(a-9) of Section 13 of the Illinois Gambling Act. The adjusted
15gross receipts by an electronic gaming licensee from electronic
16gaming remaining after the payment of taxes under Section 13 of
17the Illinois Gambling Act shall be distributed as follows:
18 (1) Amounts shall be paid to the purse account at the
19 track at which the organization licensee is conducting
20 racing equal to the following:
21 12.75% of annual adjusted gross receipts up to and
22 including $75,000,000;
23 20% of annual adjusted gross receipts in excess of
24 $75,000,000 but not exceeding $100,000,000;
25 26.5% of annual adjusted gross receipts in excess
26 of $100,000,000 but not exceeding $125,000,000; and

HB4002- 324 -LRB100 11337 MJP 21715 b
1 20.5% of annual adjusted gross receipts in excess
2 of $125,000,000.
3 (2) The remainder shall be retained by the electronic
4 gaming licensee.
5 (c) Electronic gaming receipts placed into the purse
6account of an organization licensee racing thoroughbred horses
7shall be used for purses, for health care services or worker's
8compensation for racing industry workers, for equine research,
9for programs to care for and transition injured and retired
10thoroughbred horses that race at the race track, or for horse
11ownership promotion, in accordance with the agreement of the
12horsemen's association representing the largest number of
13owners and trainers who race at that organization licensee's
14race meetings.
15 Annually, from the purse account of an organization
16licensee racing thoroughbred horses in this State, except for
17in Madison County, an amount equal to 12% of the electronic
18gaming receipts placed into the purse accounts shall be paid to
19the Illinois Thoroughbred Breeders Fund and shall be used for
20owner awards; a stallion program pursuant to paragraph (3) of
21subsection (g) of Section 30 of this Act; and Illinois
22conceived and foaled stakes races pursuant to paragraph (2) of
23subsection (g) of Section 30 of this Act, as specifically
24designated by the horsemen's association representing the
25largest number of owners and trainers who race at the
26organization licensee's race meetings.

HB4002- 325 -LRB100 11337 MJP 21715 b
1 Annually, from the purse account of an organization
2licensee racing thoroughbred horses in Madison County, an
3amount equal to 10% of the electronic gaming receipts placed
4into the purse accounts shall be paid to the Illinois
5Thoroughbred Breeders Fund and shall be used for owner awards;
6a stallion program pursuant to paragraph (3) of subsection (g)
7of Section 30 of this Act; and Illinois conceived and foaled
8stakes races pursuant to paragraph (2) of subsection (g) of
9Section 30 of this Act, as specifically designated by the
10horsemen's association representing the largest number of
11owners and trainers who race at the organization licensee's
12race meetings.
13 Annually, from the purse account of an organization
14licensee conducting thoroughbred races at a race track in
15Madison County, an amount equal to 1% of the electronic gaming
16receipts distributed to purses per subsection (b) of this
17Section 56 shall be paid as follows: 0.33 1/3% to Southern
18Illinois University Department of Animal Sciences for equine
19research and education, an amount equal to 0.33 1/3% of the
20electronic gaming receipts shall be used to operate laundry
21facilities or a kitchen for backstretch workers at that race
22track, and an amount equal to 0.33 1/3% of the electronic
23gaming receipts shall be paid to R.A.C.E., Inc., a 501(c)(3)
24non-profit organization that cares for injured and unwanted
25horses that race at that race track.
26 Annually, from the purse account of organization licensees

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1conducting thoroughbred races at race tracks in Cook County,
2$100,000 shall be paid for division and equal distribution to
3the animal sciences department of each Illinois public
4university system engaged in equine research and education on
5or before the effective date of this amendatory Act of the
6100th General Assembly for equine research and education.
7 (d) Annually, from the purse account of an organization
8licensee racing standardbred horses, an amount equal to 15% of
9the electronic gaming receipts placed into that purse account
10shall be paid to the Illinois Colt Stakes Purse Distribution
11Fund. Moneys deposited into the Illinois Colt Stakes Purse
12Distribution Fund shall be used for standardbred racing as
13authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of
14subsection (g) of Section 31 of this Act and for bonus awards
15as authorized under paragraph 6 of subsection (j) of Section 31
16of this Act.
17 Section 90-40. The Riverboat Gambling Act is amended by
18changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,
1911.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,
20and 24 and by adding Sections 5.3, 7.7, 7.8, 7.9, 7.10, 7.11,
217.12, and 7.13 as follows:
22 (230 ILCS 10/1) (from Ch. 120, par. 2401)
23 Sec. 1. Short title. This Act shall be known and may be
24cited as the Illinois Riverboat Gambling Act.

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1(Source: P.A. 86-1029.)
2 (230 ILCS 10/2) (from Ch. 120, par. 2402)
3 Sec. 2. Legislative Intent.
4 (a) This Act is intended to benefit the people of the State
5of Illinois by assisting economic development, and promoting
6Illinois tourism, and by increasing the amount of revenues
7available to the State to assist and support education, and to
8defray State expenses, including unpaid bills.
9 (b) While authorization of riverboat and casino gambling
10will enhance investment, beautification, development and
11tourism in Illinois, it is recognized that it will do so
12successfully only if public confidence and trust in the
13credibility and integrity of the gambling operations and the
14regulatory process is maintained. Therefore, regulatory
15provisions of this Act are designed to strictly regulate the
16facilities, persons, associations and practices related to
17gambling operations pursuant to the police powers of the State,
18including comprehensive law enforcement supervision.
19 (c) The Illinois Gaming Board established under this Act
20should, as soon as possible, inform each applicant for an
21owners license of the Board's intent to grant or deny a
22license.
23(Source: P.A. 93-28, eff. 6-20-03.)
24 (230 ILCS 10/3) (from Ch. 120, par. 2403)

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1 Sec. 3. Riverboat Gambling Authorized.
2 (a) Riverboat and casino gambling operations and
3electronic gaming operations and the system of wagering
4incorporated therein, as defined in this Act, are hereby
5authorized to the extent that they are carried out in
6accordance with the provisions of this Act.
7 (b) This Act does not apply to the pari-mutuel system of
8wagering used or intended to be used in connection with the
9horse-race meetings as authorized under the Illinois Horse
10Racing Act of 1975, lottery games authorized under the Illinois
11Lottery Law, bingo authorized under the Bingo License and Tax
12Act, charitable games authorized under the Charitable Games Act
13or pull tabs and jar games conducted under the Illinois Pull
14Tabs and Jar Games Act. This Act applies to electronic gaming
15authorized under the Illinois Horse Racing Act of 1975 to the
16extent provided in that Act and in this Act.
17 (c) Riverboat gambling conducted pursuant to this Act may
18be authorized upon any water within the State of Illinois or
19any water other than Lake Michigan which constitutes a boundary
20of the State of Illinois. Notwithstanding any provision in this
21subsection (c) to the contrary, a licensee that receives its
22license pursuant to subsection (e-5) of Section 7 may conduct
23riverboat gambling on Lake Michigan from a home dock located on
24Lake Michigan subject to any limitations contained in Section
257. Notwithstanding any provision in this subsection (c) to the
26contrary, a licensee may conduct gambling at its home dock

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

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1permanently moored barge, or permanently moored barges that are
2permanently fixed together to operate as one vessel, on which
3lawful gambling is authorized and licensed as provided in this
4Act.
5 "Slot machine" means any mechanical, electrical, or other
6device, contrivance, or machine that is authorized by the Board
7as a wagering device under this Act which, upon insertion of a
8coin, currency, token, or similar object therein, or upon
9payment of any consideration whatsoever, is available to play
10or operate, the play or operation of which may deliver or
11entitle the person playing or operating the machine to receive
12cash, premiums, merchandise, tokens, or anything of value
13whatsoever, whether the payoff is made automatically from the
14machine or in any other manner whatsoever. A slot machine:
15 (1) may utilize spinning reels or video displays or
16 both;
17 (2) may or may not dispense coins, tickets, or tokens
18 to winning patrons;
19 (3) may use an electronic credit system for receiving
20 wagers and making payouts; and
21 (4) may simulate a table game.
22 "Slot machine" does not include table games authorized by
23the Board as a wagering device under this Act.
24 (e) "Managers license" means a license issued by the Board
25to a person or entity to manage gambling operations conducted
26by the State pursuant to Section 7.3.

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1 (f) "Dock" means the location where a riverboat moors for
2the purpose of embarking passengers for and disembarking
3passengers from the riverboat.
4 (g) "Gross receipts" means the total amount of money
5exchanged for the purchase of chips, tokens, or electronic
6cards by riverboat patrons.
7 (h) "Adjusted gross receipts" means the gross receipts less
8winnings paid to wagerers.
9 (i) "Cheat" means to alter the selection of criteria which
10determine the result of a gambling game or the amount or
11frequency of payment in a gambling game.
12 (j) (Blank).
13 (k) "Gambling operation" means the conduct of authorized
14gambling games authorized under this Act upon a riverboat or in
15a casino or authorized under this Act and the Illinois Horse
16Racing Act of 1975 at an electronic gaming facility.
17 (l) "License bid" means the lump sum amount of money that
18an applicant bids and agrees to pay the State in return for an
19owners license that is issued or re-issued on or after July 1,
202003.
21 "Table game" means a live gaming apparatus upon which
22gaming is conducted or that determines an outcome that is the
23object of a wager, including, but not limited to, baccarat,
24twenty-one, blackjack, poker, craps, roulette wheel, klondike
25table, punchboard, faro layout, keno layout, numbers ticket,
26push card, jar ticket, pull tab, or other similar games that

HB4002- 332 -LRB100 11337 MJP 21715 b
1are authorized by the Board as a wagering device under this
2Act. "Table game" does not include slot machines or video games
3of chance.
4 (m) The terms "minority person", "female", and "person with
5a disability" shall have the same meaning as defined in Section
62 of the Business Enterprise for Minorities, Females, and
7Persons with Disabilities Act.
8 "Authority" means the Chicago Casino Development
9Authority.
10 "Casino" means a facility at which lawful gambling is
11authorized as provided in this Act.
12 "Owners license" means a license to conduct riverboat or
13casino gambling operations, but does not include an electronic
14gaming license.
15 "Licensed owner" means a person who holds an owners
16license.
17 "Electronic gaming" means slot machine gambling or
18gambling with table games positioned within an electronic
19gaming facility as defined in the Illinois Gambling Act, as
20defined in this Act, or defined by the Board that is conducted
21at a race track pursuant to an electronic gaming license.
22 "Electronic gaming facility" means the area where the Board
23has authorized electronic gaming at a race track of an
24organization licensee under the Illinois Horse Racing Act of
251975 that holds an electronic gaming license.
26 "Electronic gaming license" means a license issued by the

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1Board under Section 7.7 of this Act authorizing electronic
2gaming at an electronic gaming facility.
3 "Electronic gaming licensee" means an entity that holds an
4electronic gaming license.
5 "Organization licensee" means an entity authorized by the
6Illinois Racing Board to conduct pari-mutuel wagering in
7accordance with the Illinois Horse Racing Act of 1975. With
8respect only to electronic gaming, "organization licensee"
9includes the authorization for electronic gaming created under
10subsection (a) of Section 56 of the Illinois Horse Racing Act
11of 1975.
12 "Casino operator license" means the license held by the
13person or entity selected by the Authority to manage and
14operate a riverboat or casino within the geographic area of the
15authorized municipality pursuant to this Act and the Chicago
16Casino Development Authority Act.
17(Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)
18 (230 ILCS 10/5) (from Ch. 120, par. 2405)
19 Sec. 5. Gaming Board.
20 (a) (1) There is hereby established the Illinois Gaming
21Board, which shall have the powers and duties specified in this
22Act and in the Chicago Casino Development Authority Act, and
23all other powers necessary and proper to fully and effectively
24execute this Act for the purpose of administering, regulating,
25and enforcing the system of riverboat and casino gambling and

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1electronic gaming established by this Act and by the Chicago
2Casino Development Authority Act. Its jurisdiction shall
3extend under this Act and the Chicago Casino Development
4Authority Act to every person, association, corporation,
5partnership and trust involved in riverboat and casino gambling
6operations and electronic gaming in the State of Illinois.
7 (2) The Board shall consist of 5 members to be appointed by
8the Governor with the advice and consent of the Senate, one of
9whom shall be designated by the Governor to be chairperson
10chairman. Each member shall have a reasonable knowledge of the
11practice, procedure and principles of gambling operations.
12Each member shall either be a resident of Illinois or shall
13certify that he or she will become a resident of Illinois
14before taking office.
15 On and after the effective date of this amendatory Act of
16the 100th General Assembly, new appointees to the Board must
17include the following:
18 (A) One member who has received, at a minimum, a
19 bachelor's degree from an accredited school and at least 10
20 years of verifiable training and experience in the fields
21 of investigation and law enforcement.
22 (B) One member who is a certified public accountant
23 with experience in auditing and with knowledge of complex
24 corporate structures and transactions.
25 (C) One member who has 5 years' experience as a
26 principal, senior officer, or director of a company or

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

HB4002- 336 -LRB100 11337 MJP 21715 b
1Senate. At least one member shall be experienced in law
2enforcement and criminal investigation, at least one member
3shall be a certified public accountant experienced in
4accounting and auditing, and at least one member shall be a
5lawyer licensed to practice law in Illinois.
6 (3) The terms of office of the Board members shall be 3
7years, except that the terms of office of the initial Board
8members appointed pursuant to this Act will commence from the
9effective date of this Act and run as follows: one for a term
10ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
11a term ending July 1, 1993. Upon the expiration of the
12foregoing terms, the successors of such members shall serve a
13term for 3 years and until their successors are appointed and
14qualified for like terms. Vacancies in the Board shall be
15filled for the unexpired term in like manner as original
16appointments. Each member of the Board shall be eligible for
17reappointment at the discretion of the Governor with the advice
18and consent of the Senate.
19 (4) Each member of the Board shall receive $300 for each
20day the Board meets and for each day the member conducts any
21hearing pursuant to this Act. Each member of the Board shall
22also be reimbursed for all actual and necessary expenses and
23disbursements incurred in the execution of official duties.
24 (5) No person shall be appointed a member of the Board or
25continue to be a member of the Board who is, or whose spouse,
26child or parent is, a member of the board of directors of, or a

HB4002- 337 -LRB100 11337 MJP 21715 b
1person financially interested in, any gambling operation
2subject to the jurisdiction of this Board, or any race track,
3race meeting, racing association or the operations thereof
4subject to the jurisdiction of the Illinois Racing Board. No
5Board member shall hold any other public office. No person
6shall be a member of the Board who is not of good moral
7character or who has been convicted of, or is under indictment
8for, a felony under the laws of Illinois or any other state, or
9the United States.
10 (5.5) No member of the Board shall engage in any political
11activity. For the purposes of this Section, "political" means
12any activity in support of or in connection with any campaign
13for federal, State, or local elective office or any political
14organization, but does not include activities (i) relating to
15the support or opposition of any executive, legislative, or
16administrative action (as those terms are defined in Section 2
17of the Lobbyist Registration Act), (ii) relating to collective
18bargaining, or (iii) that are otherwise in furtherance of the
19person's official State duties or governmental and public
20service functions.
21 (6) Any member of the Board may be removed by the Governor
22for neglect of duty, misfeasance, malfeasance, or nonfeasance
23in office or for engaging in any political activity.
24 (7) Before entering upon the discharge of the duties of his
25office, each member of the Board shall take an oath that he
26will faithfully execute the duties of his office according to

HB4002- 338 -LRB100 11337 MJP 21715 b
1the laws of the State and the rules and regulations adopted
2therewith and shall give bond to the State of Illinois,
3approved by the Governor, in the sum of $25,000. Every such
4bond, when duly executed and approved, shall be recorded in the
5office of the Secretary of State. Whenever the Governor
6determines that the bond of any member of the Board has become
7or is likely to become invalid or insufficient, he shall
8require such member forthwith to renew his bond, which is to be
9approved by the Governor. Any member of the Board who fails to
10take oath and give bond within 30 days from the date of his
11appointment, or who fails to renew his bond within 30 days
12after it is demanded by the Governor, shall be guilty of
13neglect of duty and may be removed by the Governor. The cost of
14any bond given by any member of the Board under this Section
15shall be taken to be a part of the necessary expenses of the
16Board.
17 (7.5) For the examination of all mechanical,
18electromechanical, or electronic table games, slot machines,
19slot accounting systems, and other electronic gaming equipment
20for compliance with this Act, the Board may utilize the
21services of one or more independent outside testing
22laboratories that have been accredited by a national
23accreditation body and that, in the judgment of the Board, are
24qualified to perform such examinations.
25 (8) The Board shall employ such personnel as may be
26necessary to carry out its functions and shall determine the

HB4002- 339 -LRB100 11337 MJP 21715 b
1salaries of all personnel, except those personnel whose
2salaries are determined under the terms of a collective
3bargaining agreement. No person shall be employed to serve the
4Board who is, or whose spouse, parent or child is, an official
5of, or has a financial interest in or financial relation with,
6any operator engaged in gambling operations within this State
7or any organization engaged in conducting horse racing within
8this State. For the one year immediately preceding employment,
9an employee shall not have been employed or received
10compensation or fees for services from a person or entity, or
11its parent or affiliate, that has engaged in business with the
12Board, a licensee, or a licensee under the Illinois Horse
13Racing Act of 1975. Any employee violating these prohibitions
14shall be subject to termination of employment. In addition, all
15Board members and employees are subject to the restrictions set
16forth in Section 5-45 of the State Officials and Employees
17Ethics Act.
18 (9) An Administrator shall perform any and all duties that
19the Board shall assign him. The salary of the Administrator
20shall be determined by the Board and, in addition, he shall be
21reimbursed for all actual and necessary expenses incurred by
22him in discharge of his official duties. The Administrator
23shall keep records of all proceedings of the Board and shall
24preserve all records, books, documents and other papers
25belonging to the Board or entrusted to its care. The
26Administrator shall devote his full time to the duties of the

HB4002- 340 -LRB100 11337 MJP 21715 b
1office and shall not hold any other office or employment.
2 (b) The Board shall have general responsibility for the
3implementation of this Act. Its duties include, without
4limitation, the following:
5 (1) To decide promptly and in reasonable order all
6 license applications. Any party aggrieved by an action of
7 the Board denying, suspending, revoking, restricting or
8 refusing to renew a license may request a hearing before
9 the Board. A request for a hearing must be made to the
10 Board in writing within 5 days after service of notice of
11 the action of the Board. Notice of the action of the Board
12 shall be served either by personal delivery or by certified
13 mail, postage prepaid, to the aggrieved party. Notice
14 served by certified mail shall be deemed complete on the
15 business day following the date of such mailing. The Board
16 shall conduct all requested hearings promptly and in
17 reasonable order;
18 (2) To conduct all hearings pertaining to civil
19 violations of this Act or rules and regulations promulgated
20 hereunder;
21 (3) To promulgate such rules and regulations as in its
22 judgment may be necessary to protect or enhance the
23 credibility and integrity of gambling operations
24 authorized by this Act and the regulatory process
25 hereunder;
26 (4) To provide for the establishment and collection of

HB4002- 341 -LRB100 11337 MJP 21715 b
1 all license and registration fees and taxes imposed by this
2 Act and the rules and regulations issued pursuant hereto.
3 All such fees and taxes shall be deposited into the State
4 Gaming Fund;
5 (5) To provide for the levy and collection of penalties
6 and fines for the violation of provisions of this Act and
7 the rules and regulations promulgated hereunder. All such
8 fines and penalties shall be deposited into the Education
9 Assistance Fund, created by Public Act 86-0018, of the
10 State of Illinois;
11 (6) To be present through its inspectors and agents any
12 time gambling operations are conducted on any riverboat, in
13 any casino, or at any electronic gaming facility for the
14 purpose of certifying the revenue thereof, receiving
15 complaints from the public, and conducting such other
16 investigations into the conduct of the gambling games and
17 the maintenance of the equipment as from time to time the
18 Board may deem necessary and proper;
19 (7) To review and rule upon any complaint by a licensee
20 regarding any investigative procedures of the State which
21 are unnecessarily disruptive of gambling operations. The
22 need to inspect and investigate shall be presumed at all
23 times. The disruption of a licensee's operations shall be
24 proved by clear and convincing evidence, and establish
25 that: (A) the procedures had no reasonable law enforcement
26 purposes, and (B) the procedures were so disruptive as to

HB4002- 342 -LRB100 11337 MJP 21715 b
1 unreasonably inhibit gambling operations;
2 (8) To hold at least one meeting each quarter of the
3 fiscal year. In addition, special meetings may be called by
4 the Chairman or any 2 Board members upon 72 hours written
5 notice to each member. All Board meetings shall be subject
6 to the Open Meetings Act. Three members of the Board shall
7 constitute a quorum, and 3 votes shall be required for any
8 final determination by the Board. The Board shall keep a
9 complete and accurate record of all its meetings. A
10 majority of the members of the Board shall constitute a
11 quorum for the transaction of any business, for the
12 performance of any duty, or for the exercise of any power
13 which this Act requires the Board members to transact,
14 perform or exercise en banc, except that, upon order of the
15 Board, one of the Board members or an administrative law
16 judge designated by the Board may conduct any hearing
17 provided for under this Act or by Board rule and may
18 recommend findings and decisions to the Board. The Board
19 member or administrative law judge conducting such hearing
20 shall have all powers and rights granted to the Board in
21 this Act. The record made at the time of the hearing shall
22 be reviewed by the Board, or a majority thereof, and the
23 findings and decision of the majority of the Board shall
24 constitute the order of the Board in such case;
25 (9) To maintain records which are separate and distinct
26 from the records of any other State board or commission.

HB4002- 343 -LRB100 11337 MJP 21715 b
1 Such records shall be available for public inspection and
2 shall accurately reflect all Board proceedings;
3 (10) To file a written annual report with the Governor
4 on or before March 1 each year and such additional reports
5 as the Governor may request. The annual report shall
6 include a statement of receipts and disbursements by the
7 Board, actions taken by the Board, and any additional
8 information and recommendations which the Board may deem
9 valuable or which the Governor may request;
10 (11) (Blank);
11 (12) (Blank);
12 (13) To assume responsibility for administration and
13 enforcement of the Video Gaming Act; and
14 (13.1) To assume responsibility for the administration
15 and enforcement of operations at electronic gaming
16 facilities pursuant to this Act and the Illinois Horse
17 Racing Act of 1975;
18 (13.2) To assume responsibility for the administration
19 and enforcement of gambling operations at the Chicago
20 Casino Development Authority's casino pursuant to this Act
21 and the Chicago Casino Development Authority Act; and
22 (14) To adopt, by rule, a code of conduct governing
23 Board members and employees that ensure, to the maximum
24 extent possible, that persons subject to this Code avoid
25 situations, relationships, or associations that may
26 represent or lead to a conflict of interest.

HB4002- 344 -LRB100 11337 MJP 21715 b
1 Internal controls and changes submitted by licensees must
2be reviewed and either approved or denied with cause within 90
3days after receipt of submission is deemed final by the
4Illinois Gaming Board. In the event an internal control
5submission or change does not meet the standards set by the
6Board, staff of the Board must provide technical assistance to
7the licensee to rectify such deficiencies within 90 days after
8the initial submission and the revised submission must be
9reviewed and approved or denied with cause within 90 days after
10the date the revised submission is deemed final by the Board.
11For the purposes of this paragraph, "with cause" means that the
12approval of the submission would jeopardize the integrity of
13gaming. In the event the Board staff has not acted within the
14timeframe, the submission shall be deemed approved.
15 (c) The Board shall have jurisdiction over and shall
16supervise all gambling operations governed by this Act and the
17Chicago Casino Development Authority Act. The Board shall have
18all powers necessary and proper to fully and effectively
19execute the provisions of this Act and the Chicago Casino
20Development Authority Act, including, but not limited to, the
21following:
22 (1) To investigate applicants and determine the
23 eligibility of applicants for licenses and to select among
24 competing applicants the applicants which best serve the
25 interests of the citizens of Illinois.
26 (2) To have jurisdiction and supervision over all

HB4002- 345 -LRB100 11337 MJP 21715 b
1 riverboat gambling operations authorized under this Act
2 and the Chicago Casino Development Authority Act in this
3 State and all persons in places on riverboats where
4 gambling operations are conducted.
5 (3) To promulgate rules and regulations for the purpose
6 of administering the provisions of this Act and the Chicago
7 Casino Development Authority Act and to prescribe rules,
8 regulations and conditions under which all riverboat
9 gambling operations subject to this Act and the Chicago
10 Casino Development Authority Act in the State shall be
11 conducted. Such rules and regulations are to provide for
12 the prevention of practices detrimental to the public
13 interest and for the best interests of riverboat gambling,
14 including rules and regulations regarding the inspection
15 of electronic gaming facilities, casinos, and such
16 riverboats, and the review of any permits or licenses
17 necessary to operate a riverboat, casino, or electronic
18 gaming facilities under any laws or regulations applicable
19 to riverboats, casinos, or electronic gaming facilities
20 and to impose penalties for violations 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 and the Chicago Casino Development Authority Act is
26 likely to be found.

HB4002- 346 -LRB100 11337 MJP 21715 b
1 (5) To investigate alleged violations of this Act, the
2 Chicago Casino Development Authority Act, or the rules of
3 the Board and to take appropriate disciplinary action
4 against a licensee or a holder of an occupational license
5 for a violation, or institute appropriate legal action for
6 enforcement, or both.
7 (6) To adopt standards for the licensing of all persons
8 and entities under this Act and the Chicago Casino
9 Development Authority Act, as well as for electronic or
10 mechanical gambling games, and to establish fees for such
11 licenses.
12 (7) To adopt appropriate standards for all electronic
13 gaming facilities, riverboats, casinos, and other
14 facilities authorized under this Act and the Chicago Casino
15 Development Authority Act.
16 (8) To require that the records, including financial or
17 other statements of any licensee under this Act and the
18 Chicago Casino Development Authority Act, shall be kept in
19 such manner as prescribed by the Board and that any such
20 licensee involved in the ownership or management of
21 gambling operations submit to the Board an annual balance
22 sheet and profit and loss statement, list of the
23 stockholders or other persons having a 1% or greater
24 beneficial interest in the gambling activities of each
25 licensee, and any other information the Board deems
26 necessary in order to effectively administer this Act and

HB4002- 347 -LRB100 11337 MJP 21715 b
1 the Chicago Casino Development Authority Act and all rules,
2 regulations, orders and final decisions promulgated under
3 this Act and the Chicago Casino Development Authority Act.
4 (9) To conduct hearings, issue subpoenas for the
5 attendance of witnesses and subpoenas duces tecum for the
6 production of books, records and other pertinent documents
7 in accordance with the Illinois Administrative Procedure
8 Act, and to administer oaths and affirmations to the
9 witnesses, when, in the judgment of the Board, it is
10 necessary to administer or enforce this Act, the Chicago
11 Casino Development Authority Act, or the Board rules.
12 (10) To prescribe a form to be used by any licensee
13 involved in the ownership or management of gambling
14 operations as an application for employment for their
15 employees.
16 (11) To revoke or suspend licenses, other than the
17 license issued to the Chicago Casino Development
18 Authority, as the Board may see fit and in compliance with
19 applicable laws of the State regarding administrative
20 procedures, and to review applications for the renewal of
21 licenses. The Board may suspend an owners license (other
22 than the license issued to the Chicago Casino Development
23 Authority), electronic gaming license, or casino operator
24 license, without notice or hearing upon a determination
25 that the safety or health of patrons or employees is
26 jeopardized by continuing a gambling operation conducted

HB4002- 348 -LRB100 11337 MJP 21715 b
1 under that license riverboat's operation. The suspension
2 may remain in effect until the Board determines that the
3 cause for suspension has been abated. The Board may revoke
4 an the owners license (other than the license issued to the
5 Chicago Casino Development Authority), electronic gaming
6 license, or casino operator license upon a determination
7 that the licensee owner has not made satisfactory progress
8 toward abating the hazard.
9 (12) To eject or exclude or authorize the ejection or
10 exclusion of, any person from riverboat gambling
11 facilities where that such person is in violation of this
12 Act or the Chicago Casino Development Authority Act, rules
13 and regulations thereunder, or final orders of the Board,
14 or where such person's conduct or reputation is such that
15 his or her presence within the riverboat gambling
16 facilities may, in the opinion of the Board, call into
17 question the honesty and integrity of the gambling
18 operations or interfere with the orderly conduct thereof;
19 provided that the propriety of such ejection or exclusion
20 is subject to subsequent hearing by the Board.
21 (13) To require all licensees of gambling operations to
22 utilize a cashless wagering system whereby all players'
23 money is converted to tokens, electronic cards, or chips
24 which shall be used only for wagering in the gambling
25 establishment.
26 (14) (Blank).

HB4002- 349 -LRB100 11337 MJP 21715 b
1 (15) To suspend, revoke or restrict licenses, other
2 than the license issued to the Chicago Casino Development
3 Authority, to require the removal of a licensee or an
4 employee of a licensee for a violation of this Act, the
5 Chicago Casino Development Authority Act, or a Board rule
6 or for engaging in a fraudulent practice, and to impose
7 civil penalties of up to $5,000 against individuals and up
8 to $10,000 or an amount equal to the daily gross receipts,
9 whichever is larger, against licensees for each violation
10 of any provision of the Act, the Chicago Casino Development
11 Authority Act, any rules adopted by the Board, any order of
12 the Board or any other action which, in the Board's
13 discretion, is a detriment or impediment to riverboat
14 gambling operations.
15 (16) To hire employees to gather information, conduct
16 investigations and carry out any other tasks contemplated
17 under this Act or the Chicago Casino Development Authority
18 Act.
19 (17) To establish minimum levels of insurance to be
20 maintained by licensees.
21 (18) To authorize a licensee to sell or serve alcoholic
22 liquors, wine or beer as defined in the Liquor Control Act
23 of 1934 on board a riverboat or in a casino and to have
24 exclusive authority to establish the hours for sale and
25 consumption of alcoholic liquor on board a riverboat or in
26 a casino, notwithstanding any provision of the Liquor

HB4002- 350 -LRB100 11337 MJP 21715 b
1 Control Act of 1934 or any local ordinance, and regardless
2 of whether the riverboat makes excursions. The
3 establishment of the hours for sale and consumption of
4 alcoholic liquor on board a riverboat or in a casino is an
5 exclusive power and function of the State. A home rule unit
6 may not establish the hours for sale and consumption of
7 alcoholic liquor on board a riverboat or in a casino. This
8 subdivision (18) amendatory Act of 1991 is a denial and
9 limitation of home rule powers and functions under
10 subsection (h) of Section 6 of Article VII of the Illinois
11 Constitution.
12 (19) After consultation with the U.S. Army Corps of
13 Engineers, to establish binding emergency orders upon the
14 concurrence of a majority of the members of the Board
15 regarding the navigability of water, relative to
16 excursions, in the event of extreme weather conditions,
17 acts of God or other extreme circumstances.
18 (20) To delegate the execution of any of its powers
19 under this Act or the Chicago Casino Development Authority
20 Act for the purpose of administering and enforcing this
21 Act, the Chicago Casino Development Authority Act, and the
22 its rules adopted by the Board under both Acts and
23 regulations hereunder.
24 (20.5) To approve any contract entered into on its
25 behalf.
26 (20.6) To appoint investigators to conduct

HB4002- 351 -LRB100 11337 MJP 21715 b
1 investigations, searches, seizures, arrests, and other
2 duties imposed under this Act, as deemed necessary by the
3 Board. These investigators have and may exercise all of the
4 rights and powers of peace officers, provided that these
5 powers shall be limited to offenses or violations occurring
6 or committed in a casino, in an electronic gaming facility,
7 or on a riverboat or dock, as defined in subsections (d)
8 and (f) of Section 4, or as otherwise provided by this Act,
9 the Chicago Casino Development Authority Act, or any other
10 law.
11 (20.7) To contract with the Department of State Police
12 for the use of trained and qualified State police officers
13 and with the Department of Revenue for the use of trained
14 and qualified Department of Revenue investigators to
15 conduct investigations, searches, seizures, arrests, and
16 other duties imposed under this Act or the Chicago Casino
17 Development Authority Act and to exercise all of the rights
18 and powers of peace officers, provided that the powers of
19 Department of Revenue investigators under this subdivision
20 (20.7) shall be limited to offenses or violations occurring
21 or committed in a casino, in an electronic gaming facility,
22 or on a riverboat or dock, as defined in subsections (d)
23 and (f) of Section 4, or as otherwise provided by this Act
24 or any other law. In the event the Department of State
25 Police or the Department of Revenue is unable to fill
26 contracted police or investigative positions, the Board

HB4002- 352 -LRB100 11337 MJP 21715 b
1 may appoint investigators to fill those positions pursuant
2 to subdivision (20.6).
3 (21) To adopt rules concerning the conduct of
4 electronic gaming.
5 (22) To have the same jurisdiction and supervision over
6 casinos and electronic gaming facilities as the Board has
7 over riverboats, including, but not limited to, the power
8 to (i) investigate, review, and approve contracts as that
9 power is applied to riverboats, (ii) adopt rules for
10 administering the provisions of this Act or the Chicago
11 Casino Development Authority Act, (iii) adopt standards
12 for the licensing of all persons involved with a casino or
13 electronic gaming facility, (iv) investigate alleged
14 violations of this Act by any person involved with a casino
15 or electronic gaming facility, and (v) require that
16 records, including financial or other statements of any
17 casino or electronic gaming facility, shall be kept in such
18 manner as prescribed by the Board.
19 (23) To supervise and regulate the Chicago Casino
20 Development Authority in accordance with the Chicago
21 Casino Development Authority Act and the provisions of this
22 Act.
23 (24) (21) To take any other action as may be reasonable
24 or appropriate to enforce this Act, the Chicago Casino
25 Development Authority Act, and the rules adopted by the
26 Board under both Acts and regulations hereunder.

HB4002- 353 -LRB100 11337 MJP 21715 b
1 All Board powers enumerated in this Section in relation to
2licensees shall apply equally to the holder of any casino
3management contract entered into pursuant to the Chicago Casino
4Development Authority Act.
5 (d) The Board may seek and shall receive the cooperation of
6the Department of State Police in conducting background
7investigations of applicants and in fulfilling its
8responsibilities under this Section. Costs incurred by the
9Department of State Police as a result of such cooperation
10shall be paid by the Board in conformance with the requirements
11of Section 2605-400 of the Department of State Police Law (20
12ILCS 2605/2605-400).
13 (e) The Board must authorize to each investigator and to
14any other employee of the Board exercising the powers of a
15peace officer a distinct badge that, on its face, (i) clearly
16states that the badge is authorized by the Board and (ii)
17contains a unique identifying number. No other badge shall be
18authorized by the Board.
19(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)
20 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)
21 Sec. 5.1. Disclosure of records.
22 (a) Notwithstanding any applicable statutory provision to
23the contrary, the Board shall, on written request from any
24person, provide information furnished by an applicant or
25licensee concerning the applicant or licensee, his products,

HB4002- 354 -LRB100 11337 MJP 21715 b
1services or gambling enterprises and his business holdings, as
2follows:
3 (1) The name, business address and business telephone
4 number of any applicant or licensee.
5 (2) An identification of any applicant or licensee
6 including, if an applicant or licensee is not an
7 individual, the names and addresses of all stockholders and
8 directors, if the entity is a corporation; the names and
9 addresses of all members, if the entity is a limited
10 liability company; the names and addresses of all partners,
11 both general and limited, if the entity is a partnership;
12 and the names and addresses of all beneficiaries, if the
13 entity is a trust the state of incorporation or
14 registration, the corporate officers, and the identity of
15 all shareholders or participants. If an applicant or
16 licensee has a pending registration statement filed with
17 the Securities and Exchange Commission, only the names of
18 those persons or entities holding interest of 5% or more
19 must be provided.
20 (3) An identification of any business, including, if
21 applicable, the state of incorporation or registration, in
22 which an applicant or licensee or an applicant's or
23 licensee's spouse or children has an equity interest of
24 more than 1%. If an applicant or licensee is a corporation,
25 partnership or other business entity, the applicant or
26 licensee shall identify any other corporation, partnership

HB4002- 355 -LRB100 11337 MJP 21715 b
1 or business entity in which it has an equity interest of 1%
2 or more, including, if applicable, the state of
3 incorporation or registration. This information need not
4 be provided by a corporation, partnership or other business
5 entity that has a pending registration statement filed with
6 the Securities and Exchange Commission.
7 (4) Whether an applicant or licensee has been indicted,
8 convicted, pleaded guilty or nolo contendere, or forfeited
9 bail concerning any criminal offense under the laws of any
10 jurisdiction, either felony or misdemeanor (except for
11 traffic violations), including the date, the name and
12 location of the court, arresting agency and prosecuting
13 agency, the case number, the offense, the disposition and
14 the location and length of incarceration.
15 (5) Whether an applicant or licensee has had any
16 license or certificate issued by a licensing authority in
17 Illinois or any other jurisdiction denied, restricted,
18 suspended, revoked or not renewed and a statement
19 describing the facts and circumstances concerning the
20 denial, restriction, suspension, revocation or
21 non-renewal, including the licensing authority, the date
22 each such action was taken, and the reason for each such
23 action.
24 (6) Whether an applicant or licensee has ever filed or
25 had filed against it a proceeding in bankruptcy or has ever
26 been involved in any formal process to adjust, defer,

HB4002- 356 -LRB100 11337 MJP 21715 b
1 suspend or otherwise work out the payment of any debt
2 including the date of filing, the name and location of the
3 court, the case and number of the disposition.
4 (7) Whether an applicant or licensee has filed, or been
5 served with a complaint or other notice filed with any
6 public body, regarding the delinquency in the payment of,
7 or a dispute over the filings concerning the payment of,
8 any tax required under federal, State or local law,
9 including the amount, type of tax, the taxing agency and
10 time periods involved.
11 (8) A statement listing the names and titles of all
12 public officials or officers of any unit of government, and
13 relatives of said public officials or officers who,
14 directly or indirectly, own any financial interest in, have
15 any beneficial interest in, are the creditors of or hold
16 any debt instrument issued by, or hold or have any interest
17 in any contractual or service relationship with, an
18 applicant or licensee.
19 (9) Whether an applicant or licensee has made, directly
20 or indirectly, any political contribution, or any loans,
21 donations or other payments, to any candidate or office
22 holder, within 5 years from the date of filing the
23 application, including the amount and the method of
24 payment.
25 (10) The name and business telephone number of the
26 counsel representing an applicant or licensee in matters

HB4002- 357 -LRB100 11337 MJP 21715 b
1 before the Board.
2 (11) A description of any proposed or approved
3 riverboat or casino gaming or electronic gaming operation,
4 including the type of boat, home dock or casino or
5 electronic gaming location, expected economic benefit to
6 the community, anticipated or actual number of employees,
7 any statement from an applicant or licensee regarding
8 compliance with federal and State affirmative action
9 guidelines, projected or actual admissions and projected
10 or actual adjusted gross gaming receipts.
11 (12) A description of the product or service to be
12 supplied by an applicant for a supplier's license.
13 (b) Notwithstanding any applicable statutory provision to
14the contrary, the Board shall, on written request from any
15person, also provide the following information:
16 (1) The amount of the wagering tax and admission tax
17 paid daily to the State of Illinois by the holder of an
18 owner's license.
19 (2) Whenever the Board finds an applicant for an
20 owner's license unsuitable for licensing, a copy of the
21 written letter outlining the reasons for the denial.
22 (3) Whenever the Board has refused to grant leave for
23 an applicant to withdraw his application, a copy of the
24 letter outlining the reasons for the refusal.
25 (c) Subject to the above provisions, the Board shall not
26disclose any information which would be barred by:

HB4002- 358 -LRB100 11337 MJP 21715 b
1 (1) Section 7 of the Freedom of Information Act; or
2 (2) The statutes, rules, regulations or
3 intergovernmental agreements of any jurisdiction.
4 (d) The Board may assess fees for the copying of
5information in accordance with Section 6 of the Freedom of
6Information Act.
7(Source: P.A. 96-1392, eff. 1-1-11.)
8 (230 ILCS 10/5.3 new)
9 Sec. 5.3. Ethical conduct.
10 (a) Officials and employees of the corporate authority of a
11host community must carry out their duties and responsibilities
12in such a manner as to promote and preserve public trust and
13confidence in the integrity and conduct of gaming.
14 (b) Officials and employees of the corporate authority of a
15host community shall not use or attempt to use his or her
16official position to secure or attempt to secure any privilege,
17advantage, favor, or influence for himself or herself or
18others.
19 (c) Officials and employees of the corporate authority of a
20host community may not have a financial interest, directly or
21indirectly, in his or her own name or in the name of any other
22person, partnership, association, trust, corporation, or other
23entity in any contract or subcontract for the performance of
24any work for a riverboat or casino that is located in the host
25community. This prohibition shall extend to the holding or

HB4002- 359 -LRB100 11337 MJP 21715 b
1acquisition of an interest in any entity identified by Board
2action that, in the Board's judgment, could represent the
3potential for or the appearance of a financial interest. The
4holding or acquisition of an interest in such entities through
5an indirect means, such as through a mutual fund, shall not be
6prohibited, except that the Board may identify specific
7investments or funds that, in its judgment, are so influenced
8by gaming holdings as to represent the potential for or the
9appearance of a conflict of interest.
10 (d) Officials and employees of the corporate authority of a
11host community may not accept any gift, gratuity, service,
12compensation, travel, lodging, or thing of value, with the
13exception of unsolicited items of an incidental nature, from
14any person, corporation, or entity doing business with the
15riverboat or casino that is located in the host community.
16 (e) Officials and employees of the corporate authority of a
17host community shall not, during the period that the person is
18an official or employee of the corporate authority or for a
19period of 2 years immediately after leaving such office,
20knowingly accept employment or receive compensation or fees for
21services from a person or entity, or its parent or affiliate,
22that has engaged in business with the riverboat or casino that
23is located in the host community that resulted in contracts
24with an aggregate value of at least $25,000 or if that official
25or employee has made a decision that directly applied to the
26person or entity, or its parent or affiliate.

HB4002- 360 -LRB100 11337 MJP 21715 b
1 (f) A spouse, child, or parent of an official or employee
2of the corporate authority of a host community may not have a
3financial interest, directly or indirectly, in his or her own
4name or in the name of any other person, partnership,
5association, trust, corporation, or other entity in any
6contract or subcontract for the performance of any work for a
7riverboat or casino in the host community. This prohibition
8shall extend to the holding or acquisition of an interest in
9any entity identified by Board action that, in the judgment of
10the Board, could represent the potential for or the appearance
11of a conflict of interest. The holding or acquisition of an
12interest in such entities through an indirect means, such as
13through a mutual fund, shall not be prohibited, expect that the
14Board may identify specific investments or funds that, in its
15judgment, are so influenced by gaming holdings as to represent
16the potential for or the appearance of a conflict of interest.
17 (g) A spouse, child, or parent of an official or employee
18of the corporate authority of a host community may not accept
19any gift, gratuity, service, compensation, travel, lodging, or
20thing of value, with the exception of unsolicited items of an
21incidental nature, from any person, corporation, or entity
22doing business with the riverboat or casino that is located in
23the host community.
24 (h) A spouse, child, or parent of an official or employee
25of the corporate authority of a host community may not, during
26the period that the person is an official of the corporate

HB4002- 361 -LRB100 11337 MJP 21715 b
1authority or for a period of 2 years immediately after leaving
2such office or employment, knowingly accept employment or
3receive compensation or fees for services from a person or
4entity, or its parent or affiliate, that has engaged in
5business with the riverboat or casino that is located in the
6host community that resulted in contracts with an aggregate
7value of at least $25,000 or if that official or employee has
8made a decision that directly applied to the person or entity,
9or its parent or affiliate.
10 (i) Officials and employees of the corporate authority of a
11host community shall not attempt, in any way, to influence any
12person or entity doing business with the riverboat or casino
13that is located in the host community or any officer, agent, or
14employee thereof to hire or contract with any person or entity
15for any compensated work.
16 (j) Any communication between an official of the corporate
17authority of a host community and any applicant for an owners
18license in the host community, or an officer, director, or
19employee of a riverboat or casino in the host community,
20concerning any matter relating in any way to gaming shall be
21disclosed to the Board. Such disclosure shall be in writing by
22the official within 30 days after the communication and shall
23be filed with the Board. Disclosure must consist of the date of
24the communication, the identity and job title of the person
25with whom the communication was made, a brief summary of the
26communication, the action requested or recommended, all

HB4002- 362 -LRB100 11337 MJP 21715 b
1responses made, the identity and job title of the person making
2the response, and any other pertinent information. Public
3disclosure of the written summary provided to the Board and the
4Gaming Board shall be subject to the exemptions provided under
5the Freedom of Information Act.
6 This subsection (j) shall not apply to communications
7regarding traffic, law enforcement, security, environmental
8issues, city services, transportation, or other routine
9matters concerning the ordinary operations of the riverboat or
10casino. For purposes of this subsection (j), "ordinary
11operations" means operations relating to the casino or
12riverboat facility other than the conduct of gambling
13activities, and "routine matters" includes the application
14for, issuance of, renewal of, and other processes associated
15with municipal permits and licenses.
16 (k) Any official or employee who violates any provision of
17this Section is guilty of a Class 4 felony.
18 (l) For purposes of this Section, "host community" or "host
19municipality" means a unit of local government that contains a
20riverboat or casino within its borders, but does not include
21the City of Chicago or the Chicago Casino Development
22Authority.
23 (230 ILCS 10/6) (from Ch. 120, par. 2406)
24 Sec. 6. Application for Owners License.
25 (a) A qualified person may apply to the Board for an owners

HB4002- 363 -LRB100 11337 MJP 21715 b
1license to conduct a riverboat gambling operation as provided
2in this Act. The application shall be made on forms provided by
3the Board and shall contain such information as the Board
4prescribes, including but not limited to the identity of the
5riverboat on which such gambling operation is to be conducted,
6if applicable, and the exact location where such riverboat or
7casino will be located docked, a certification that the
8riverboat will be registered under this Act at all times during
9which gambling operations are conducted on board, detailed
10information regarding the ownership and management of the
11applicant, and detailed personal information regarding the
12applicant. Any application for an owners license to be
13re-issued on or after June 1, 2003 shall also include the
14applicant's license bid in a form prescribed by the Board.
15Information provided on the application shall be used as a
16basis for a thorough background investigation which the Board
17shall conduct with respect to each applicant. An incomplete
18application shall be cause for denial of a license by the
19Board.
20 (a-5) In addition to any other information required under
21this Section, each application for an owners license must
22include the following information:
23 (1) The history and success of the applicant and each
24 person and entity disclosed under subsection (c) of this
25 Section in developing tourism facilities ancillary to
26 gaming, if applicable.

HB4002- 364 -LRB100 11337 MJP 21715 b
1 (2) The likelihood that granting a license to the
2 applicant will lead to the creation of quality, living wage
3 jobs and permanent, full-time jobs for residents of the
4 State and residents of the unit of local government that is
5 designated as the home dock of the proposed facility where
6 gambling is to be conducted by the applicant.
7 (3) The projected number of jobs that would be created
8 if the license is granted and the projected number of new
9 employees at the proposed facility where gambling is to be
10 conducted by the applicant.
11 (4) The record, if any, of the applicant and its
12 developer in meeting commitments to local agencies,
13 community-based organizations, and employees at other
14 locations where the applicant or its developer has
15 performed similar functions as they would perform if the
16 applicant were granted a license.
17 (5) Identification of adverse effects that might be
18 caused by the proposed facility where gambling is to be
19 conducted by the applicant, including the costs of meeting
20 increased demand for public health care, child care, public
21 transportation, affordable housing, and social services,
22 and a plan to mitigate those adverse effects.
23 (6) The record, if any, of the applicant and its
24 developer regarding compliance with:
25 (A) federal, state, and local discrimination, wage
26 and hour, disability, and occupational and

HB4002- 365 -LRB100 11337 MJP 21715 b
1 environmental health and safety laws; and
2 (B) state and local labor relations and employment
3 laws.
4 (7) The applicant's record, if any, in dealing with its
5 employees and their representatives at other locations.
6 (8) A plan concerning the utilization of
7 minority-owned and female-owned businesses and concerning
8 the hiring of minorities and females.
9 (9) Evidence the applicant used its best efforts to
10 reach a goal of 25% ownership representation by minority
11 persons and 5% ownership representation by females.
12 (b) Applicants shall submit with their application all
13documents, resolutions, and letters of support from the
14governing body that represents the municipality or county
15wherein the licensee will be located dock.
16 (c) Each applicant shall disclose the identity of every
17person or entity , association, trust or corporation having a
18greater than 1% direct or indirect pecuniary interest in the
19riverboat gambling operation with respect to which the license
20is sought. If the disclosed entity is a trust, the application
21shall disclose the names and addresses of all the
22beneficiaries; if a corporation, the names and addresses of all
23stockholders and directors; if a partnership, the names and
24addresses of all partners, both general and limited.
25 (d) An application shall be filed and considered in
26accordance with the rules of the Board. Each application shall

HB4002- 366 -LRB100 11337 MJP 21715 b
1be accompanied by a non-refundable An application fee of
2$100,000. In addition, a non-refundable fee of $50,000 shall be
3paid at the time of filing to defray the costs associated with
4the background investigation conducted by the Board. If the
5costs of the investigation exceed $50,000, the applicant shall
6pay the additional amount to the Board within 7 days after
7requested by the Board. If the costs of the investigation are
8less than $50,000, the applicant shall receive a refund of the
9remaining amount. All information, records, interviews,
10reports, statements, memoranda or other data supplied to or
11used by the Board in the course of its review or investigation
12of an application for a license or a renewal under this Act
13shall be privileged, strictly confidential and shall be used
14only for the purpose of evaluating an applicant for a license
15or a renewal. Such information, records, interviews, reports,
16statements, memoranda or other data shall not be admissible as
17evidence, nor discoverable in any action of any kind in any
18court or before any tribunal, board, agency or person, except
19for any action deemed necessary by the Board. The application
20fee shall be deposited into the Gaming Facilities Fee Revenue
21Fund.
22 (e) The Board shall charge each applicant a fee set by the
23Department of State Police to defray the costs associated with
24the search and classification of fingerprints obtained by the
25Board with respect to the applicant's application. These fees
26shall be paid into the State Police Services Fund.

HB4002- 367 -LRB100 11337 MJP 21715 b
1 (f) The licensed owner shall be the person primarily
2responsible for the boat or casino itself. Only one riverboat
3gambling operation may be authorized by the Board on any
4riverboat or in any casino. The applicant must identify the
5each riverboat or premises it intends to use and certify that
6the riverboat or premises: (1) has the authorized capacity
7required in this Act; (2) is accessible to persons with
8disabilities; and (3) is fully registered and licensed in
9accordance with any applicable laws.
10 (g) A person who knowingly makes a false statement on an
11application is guilty of a Class A misdemeanor.
12(Source: P.A. 99-143, eff. 7-27-15.)
13 (230 ILCS 10/7) (from Ch. 120, par. 2407)
14 Sec. 7. Owners Licenses.
15 (a) The Board shall issue owners licenses to persons or
16entities , firms or corporations which apply for such licenses
17upon payment to the Board of the non-refundable license fee as
18provided in subsection (e) or (e-5) set by the Board, upon
19payment of a $25,000 license fee for the first year of
20operation and a $5,000 license fee for each succeeding year and
21upon a determination by the Board that the applicant is
22eligible for an owners license pursuant to this Act, the
23Chicago Casino Development Authority Act, and the rules of the
24Board. From the effective date of this amendatory Act of the
2595th General Assembly until (i) 3 years after the effective

HB4002- 368 -LRB100 11337 MJP 21715 b
1date of this amendatory Act of the 95th General Assembly, (ii)
2the date any organization licensee begins to operate a slot
3machine or video game of chance under the Illinois Horse Racing
4Act of 1975 or this Act, (iii) the date that payments begin
5under subsection (c-5) of Section 13 of the Act, or (iv) the
6wagering tax imposed under Section 13 of this Act is increased
7by law to reflect a tax rate that is at least as stringent or
8more stringent than the tax rate contained in subsection (a-3)
9of Section 13, or (v) when an owners licensee holding a license
10issued pursuant to Section 7.1 of this Act begins conducting
11gaming, whichever occurs first, as a condition of licensure and
12as an alternative source of payment for those funds payable
13under subsection (c-5) of Section 13 of this the Riverboat
14Gambling Act, any owners licensee that holds or receives its
15owners license on or after the effective date of this
16amendatory Act of the 94th General Assembly, other than an
17owners licensee operating a riverboat with adjusted gross
18receipts in calendar year 2004 of less than $200,000,000, must
19pay into the Horse Racing Equity Trust Fund, in addition to any
20other payments required under this Act, an amount equal to 3%
21of the adjusted gross receipts received by the owners licensee.
22The payments required under this Section shall be made by the
23owners licensee to the State Treasurer no later than 3:00
24o'clock p.m. of the day after the day when the adjusted gross
25receipts were received by the owners licensee. A person, firm
26or entity corporation is ineligible to receive an owners

HB4002- 369 -LRB100 11337 MJP 21715 b
1license if:
2 (1) the person has been convicted of a felony under the
3 laws of this State, any other state, or the United States;
4 (2) the person has been convicted of any violation of
5 Article 28 of the Criminal Code of 1961 or the Criminal
6 Code of 2012, or substantially similar laws of any other
7 jurisdiction;
8 (3) the person has submitted an application for a
9 license under this Act or the Chicago Casino Development
10 Authority Act which contains false information;
11 (4) the person is a member of the Board;
12 (5) a person defined in (1), (2), (3) or (4) is an
13 officer, director or managerial employee of the entity firm
14 or corporation;
15 (6) the entity firm or corporation employs a person
16 defined in (1), (2), (3) or (4) who participates in the
17 management or operation of gambling operations authorized
18 under this Act or the Chicago Casino Development Authority
19 Act;
20 (7) (blank); or
21 (8) a license of the person or entity , firm or
22 corporation issued under this Act or the Chicago Casino
23 Development Authority Act, or a license to own or operate
24 gambling facilities in any other jurisdiction, has been
25 revoked.
26 The Board is expressly prohibited from making changes to

HB4002- 370 -LRB100 11337 MJP 21715 b
1the requirement that licensees make payment into the Horse
2Racing Equity Trust Fund without the express authority of the
3Illinois General Assembly and making any other rule to
4implement or interpret this amendatory Act of the 95th General
5Assembly. For the purposes of this paragraph, "rules" is given
6the meaning given to that term in Section 1-70 of the Illinois
7Administrative Procedure Act.
8 (a-1) Upon approval of the members of the Chicago Casino
9Development Board, the Chicago Casino Development Authority's
10executive director, and the Chicago casino operator licensee,
11the Board shall issue an owners license to the Chicago Casino
12Development Authority that authorizes the conduct of gambling
13operations in a casino located in the City of Chicago.
14 (b) In determining whether to grant an owners license to an
15applicant other than the Chicago Casino Development Authority,
16the Board shall consider:
17 (1) the character, reputation, experience and
18 financial integrity of the applicants and of any other or
19 separate person that either:
20 (A) controls, directly or indirectly, such
21 applicant, or
22 (B) is controlled, directly or indirectly, by such
23 applicant or by a person which controls, directly or
24 indirectly, such applicant;
25 (2) the facilities or proposed facilities for the
26 conduct of riverboat gambling;

HB4002- 371 -LRB100 11337 MJP 21715 b
1 (3) the highest prospective total revenue to be derived
2 by the State from the conduct of riverboat gambling;
3 (4) the extent to which the ownership of the applicant
4 reflects the diversity of the State by including minority
5 persons, females, and persons with a disability and the
6 good faith affirmative action plan of each applicant to
7 recruit, train and upgrade minority persons, females, and
8 persons with a disability in all employment
9 classifications;
10 (5) the financial ability of the applicant to purchase
11 and maintain adequate liability and casualty insurance;
12 (6) whether the applicant has adequate capitalization
13 to provide and maintain, for the duration of a license, a
14 riverboat or casino;
15 (7) the extent to which the applicant exceeds or meets
16 other standards for the issuance of an owners license which
17 the Board may adopt by rule; and
18 (8) the The amount of the applicant's license bid; .
19 (9) the extent to which the applicant or the proposed
20 host municipality plans to enter into revenue sharing
21 agreements with communities other than the host
22 municipality; and
23 (10) the extent to which the ownership of an applicant
24 includes the most qualified number of minority persons,
25 females, and persons with a disability.
26 (c) Each owners license shall specify the place where the

HB4002- 372 -LRB100 11337 MJP 21715 b
1casino riverboats shall operate or the riverboat shall operate
2and dock.
3 (d) Each applicant shall submit with his application, on
4forms provided by the Board, 2 sets of his fingerprints.
5 (e) In addition to any licenses authorized under subsection
6(e-5) of this Section, the The Board may issue up to 10
7licenses authorizing the holders of such licenses to own
8riverboats. In the application for an owners license, the
9applicant shall state the dock at which the riverboat is based
10and the water on which the riverboat will be located. The Board
11shall issue 5 licenses to become effective not earlier than
12January 1, 1991. Three of such licenses shall authorize
13riverboat gambling on the Mississippi River, or, with approval
14by the municipality in which the riverboat was docked on August
157, 2003 and with Board approval, be authorized to relocate to a
16new location, in a municipality that (1) borders on the
17Mississippi River or is within 5 miles of the city limits of a
18municipality that borders on the Mississippi River and (2), on
19August 7, 2003, had a riverboat conducting riverboat gambling
20operations pursuant to a license issued under this Act; one of
21which shall authorize riverboat gambling from a home dock in
22the city of East St. Louis. One other license shall authorize
23riverboat gambling on the Illinois River in Tazewell County or,
24with Board approval, shall authorize the riverboat to relocate
25to a new location that is no more than 10 miles away from its
26original location, in a municipality that borders on the

HB4002- 373 -LRB100 11337 MJP 21715 b
1Illinois River or is within 5 miles of the city limits of a
2municipality that borders on the Illinois River south of
3Marshall County. The Board shall issue one additional license
4to become effective not earlier than March 1, 1992, which shall
5authorize riverboat gambling on the Des Plaines River in Will
6County. The Board may issue 4 additional licenses to become
7effective not earlier than March 1, 1992. In determining the
8water upon which riverboats will operate, the Board shall
9consider the economic benefit which riverboat gambling confers
10on the State, and shall seek to assure that all regions of the
11State share in the economic benefits of riverboat gambling.
12 In granting all licenses, the Board may give favorable
13consideration to economically depressed areas of the State, to
14applicants presenting plans which provide for significant
15economic development over a large geographic area, and to
16applicants who currently operate non-gambling riverboats in
17Illinois. The Board shall review all applications for owners
18licenses, and shall inform each applicant of the Board's
19decision. The Board may grant an owners license to an applicant
20that has not submitted the highest license bid, but if it does
21not select the highest bidder, the Board shall issue a written
22decision explaining why another applicant was selected and
23identifying the factors set forth in this Section that favored
24the winning bidder. The fee for issuance or renewal of a
25license pursuant to this subsection (e) shall be $100,000.
26 (e-5) In addition to licenses authorized under subsection

HB4002- 374 -LRB100 11337 MJP 21715 b
1(e) of this Section:
2 (1) the Board shall issue one owners license
3 authorizing the conduct of casino gambling in the City of
4 Chicago;
5 (2) the Board may issue one owners license authorizing
6 the conduct of riverboat gambling in the City of Danville;
7 (3) the Board may issue one owners license authorizing
8 the conduct of riverboat gambling located in one of the
9 following municipalities in Lake County: Park City, North
10 Chicago, or Waukegan;
11 (4) the Board may issue one owners license authorizing
12 the conduct of riverboat gambling in the City of Rockford;
13 (5) the Board may issue one owners license authorizing
14 the conduct of riverboat gambling in a municipality that is
15 wholly or partially located in one of the following
16 townships of Cook County: Bloom, Bremen, Calumet, Rich,
17 Thornton, or Worth Township; and
18 (6) the Board may issue one owners license authorizing
19 the conduct of riverboat gambling in the unincorporated
20 area of Williamson County adjacent to the Big Muddy River.
21 Each application for a license pursuant to this subsection
22(e-5) shall be submitted to the Board no later than 6 months
23after the effective date of this amendatory Act of the 100th
24General Assembly and shall include the non-refundable
25application fee and the non-refundable background
26investigation fee as provided in subsection (d) of Section 6 of

HB4002- 375 -LRB100 11337 MJP 21715 b
1this Act. In the event that an applicant submits an application
2for a license pursuant to this subsection (e-5) prior to the
3effective date of this amendatory Act of the 100th General
4Assembly, such applicant shall submit the non-refundable
5application fee and background investigation fee as provided in
6subsection (d) of Section 6 of this Act no later than 6 months
7after the effective date of this amendatory Act of the 100th
8General Assembly.
9 The Board shall consider issuing a license pursuant to
10paragraphs (2) through (6) of this subsection only after the
11corporate authority of the municipality or the county board of
12the county in which the riverboat shall be located has
13certified to the Board the following:
14 (i) that the applicant has negotiated with the
15 corporate authority or county board in good faith;
16 (ii) that the applicant and the corporate authority or
17 county board have mutually agreed on the permanent location
18 of the riverboat;
19 (iii) that the applicant and the corporate authority or
20 county board have mutually agreed on the temporary location
21 of the riverboat;
22 (iv) that the applicant and the corporate authority or
23 the county board have mutually agreed on the percentage of
24 revenues that will be shared with the municipality or
25 county, if any; and
26 (v) that the applicant and the corporate authority or

HB4002- 376 -LRB100 11337 MJP 21715 b
1 county board have mutually agreed on any zoning, licensing,
2 public health, or other issues that are within the
3 jurisdiction of the municipality or county.
4 At least 7 days before the corporate authority of a
5municipality or county board of the county submits a
6certification to the Board concerning items (i) through (v) of
7this subsection, it shall hold a public hearing to discuss
8items (i) through (v), as well as any other details concerning
9the proposed riverboat in the municipality or county. The
10corporate authority or county board must subsequently
11memorialize the details concerning the proposed riverboat in a
12resolution that must be adopted by a majority of the corporate
13authority or county board before any certification is sent to
14the Board. The Board shall not alter, amend, change, or
15otherwise interfere with any agreement between the applicant
16and the corporate authority of the municipality or county board
17of the county regarding the location of any temporary or
18permanent facility.
19 In addition, prior to the Board issuing the owners license
20authorized under paragraph (4) of subsection (e-5), an impact
21study shall be completed to determine what location in the city
22will provide the greater impact to the region, including the
23creation of jobs and the generation of tax revenue.
24 (e-10) The licenses authorized under subsection (e-5) of
25this Section shall be issued within 12 months after the date
26the license application is submitted. If the Board does not

HB4002- 377 -LRB100 11337 MJP 21715 b
1issue the licenses within that time period, then the Board
2shall give a written explanation to the applicant as to why it
3has not reached a determination and when it reasonably expects
4to make a determination. The fee for the issuance or renewal of
5a license issued pursuant to this subsection (e-10) shall be
6$100,000. Additionally, a licensee located outside of Cook
7County shall pay a minimum initial fee of $17,500 per gaming
8position, and a licensee located in Cook County shall pay a
9minimum initial fee of $30,000 per gaming position. The initial
10fees payable under this subsection (e-10) shall be deposited
11into the Gaming Facilities Fee Revenue Fund.
12 (e-15) Each licensee of a license authorized under
13subsection (e-5) of this Section shall make a reconciliation
14payment 3 years after the date the licensee begins operating in
15an amount equal to 75% of the adjusted gross receipts for the
16most lucrative 12-month period of operations, minus an amount
17equal to the initial payment per gaming position paid by the
18specific licensee. If this calculation results in a negative
19amount, then the licensee is not entitled to any reimbursement
20of fees previously paid. This reconciliation payment may be
21made in installments over a period of no more than 2 years,
22subject to Board approval. Any installment payments shall
23include an annual market interest rate as determined by the
24Board. All payments by licensees under this subsection (e-15)
25shall be deposited into the Gaming Facilities Fee Revenue Fund.
26 (e-20) In addition to any other revocation powers granted

HB4002- 378 -LRB100 11337 MJP 21715 b
1to the Board under this Act, the Board may revoke the owners
2license of a licensee, other than the Chicago Casino
3Development Authority, which fails to begin conducting
4gambling within 15 months of receipt of the Board's approval of
5the application if the Board determines that license revocation
6is in the best interests of the State.
7 (f) The first 10 owners licenses issued under this Act
8shall permit the holder to own up to 2 riverboats and equipment
9thereon for a period of 3 years after the effective date of the
10license. Holders of the first 10 owners licenses must pay the
11annual license fee for each of the 3 years during which they
12are authorized to own riverboats.
13 (g) Upon the termination, expiration, or revocation of each
14of the first 10 licenses, which shall be issued for a 3 year
15period, all licenses are renewable annually upon payment of the
16fee and a determination by the Board that the licensee
17continues to meet all of the requirements of this Act and the
18Board's rules. However, for licenses renewed on or after May 1,
191998, including casino operator licenses, renewal shall be for
20a period of 4 years, unless the Board sets a shorter period.
21Notwithstanding any provision in this subsection (g) to the
22contrary, any license that is awarded to the Chicago Casino
23Development Authority shall not expire, but it shall be subject
24to the provisions of this Act and the rules of the Board.
25 (h) An owners license, except for an owners license issued
26under subsection (e-5) of this Section, shall entitle the

HB4002- 379 -LRB100 11337 MJP 21715 b
1licensee to own up to 2 riverboats.
2 An owners licensee of a casino or riverboat that is located
3in the City of Chicago pursuant to paragraph (1) of subsection
4(e-5) of this Section shall limit the number of gaming
5positions to 4,000 for such owner. An owners licensee
6authorized under paragraphs (2) through (5) of subsection (e-5)
7of this Section shall limit the number of gaming positions to
81,600 for any such owners license, except as further provided
9in subsection (h-10) of this Section. An owners licensee
10authorized under paragraph (6) of subsection (e-5) of this
11Section A licensee shall limit the number of gaming positions
12gambling participants to 1,200 for any such owner. The initial
13fee for each gaming position obtained on or after the effective
14date of this amendatory Act of the 100th General Assembly shall
15be a minimum of $17,500 for licensees not located in Cook
16County and a minimum of $30,000 for licensees located in Cook
17County, in addition to the reconciliation payment, as set forth
18in subsections (e-15) or (h-5) of this Section owners license.
19 Each owners licensee shall reserve its gaming positions
20within 90 days after issuance of its owners license. The Board
21may grant an extension to this 90-day period, provided that the
22owners licensee submits a written request and explanation as to
23why it is unable to reserve its positions within the 90-day
24period.
25 A licensee may operate both of its riverboats concurrently,
26provided that the total number of gaming positions gambling

HB4002- 380 -LRB100 11337 MJP 21715 b
1participants on both riverboats does not exceed the limit
2established pursuant to this subsection and subsection (h-10)
3of this Section 1,200. Riverboats licensed to operate on the
4Mississippi River and the Illinois River south of Marshall
5County shall have an authorized capacity of at least 500
6persons. Any other riverboat licensed under this Act shall have
7an authorized capacity of at least 400 persons.
8 (h-5) An owners licensee who conducted gambling operations
9prior to January 1, 2012 and purchases positions pursuant to
10subsection (h-10) of this Section on or after the effective
11date of this amendatory Act of the 100th General Assembly must
12pay a minimum initial fee of $17,500 per gaming position if the
13licensee is located outside Cook County and a minimum initial
14fee of $30,000 per gaming position if the licensee is located
15in Cook County, as stated in subsection (h) of this Section.
16These initial fees shall be deposited into the Gaming
17Facilities Fee Revenue Fund. Additionally, that owners
18licensee shall make a reconciliation payment 3 years after any
19additional gaming positions obtained pursuant to subsection
20(h-10) begin operating in an amount equal to 75% of the owners
21licensee's average gross receipts for the most lucrative
2212-month period of operations minus an amount equal to the
23initial fee that the owners licensee paid per additional gaming
24position. For purposes of this subsection (h-5), "average gross
25receipts" means (i) the increase in adjusted gross receipts for
26the most lucrative 12-month period of operations over the

HB4002- 381 -LRB100 11337 MJP 21715 b
1adjusted gross receipts for 2017, multiplied by (ii) the
2percentage derived by dividing the number of additional gaming
3positions that an owners licensee had obtained pursuant to
4subsection (h-10) by the total number of gaming positions
5operated by the owners licensee. If this calculation results in
6a negative amount, then the owners licensee is not entitled to
7any reimbursement of fees previously paid. This reconciliation
8payment may be made in installments over a period of no more
9than 2 years, subject to Board approval. Any installment
10payments shall include an annual market interest rate as
11determined by the Board. These reconciliation payments shall be
12deposited into the Gaming Facilities Fee Revenue Fund.
13 (h-10) For owners licensees authorized under paragraphs
14(2) through (5) of subsection (e-5) of this Section, the
15application for such new owners licenses shall ask the
16applicants to stipulate in their applications the number of
17gaming positions each applicant would like to reserve, up to
181,600 gaming positions. Once the last winning applicant for
19each of these owners licenses has been selected by the Board,
20the Board shall publish the number of gaming positions reserved
21and unreserved by each winning applicant, shall accept requests
22for additional gaming positions from any winning applicants or
23owners licensee who initially reserved 1,600 gaming positions,
24and shall allocate expeditiously the unreserved gaming
25positions to such requesting winning applicants or owners
26licensees in a manner to maximize revenue to the State;

HB4002- 382 -LRB100 11337 MJP 21715 b
1provided, however, that no owners licensee (other than the
2Chicago Casino Development Authority) shall obtain more than
32,000 positions total. The Board may allocate any such unused
4gaming positions through a competitive bidding process
5pursuant to Section 7.5 of this Act.
6 In the event that not all of the unreserved gaming
7positions described in the first and second paragraphs of this
8subsection (h-10) were requested by owners licensees and
9applicants, then until there are no longer unreserved gaming
10positions, the Board periodically shall govern a process to
11allocate the unreserved gaming positions in a manner to
12maximize revenue to the State.
13 Unreserved gaming positions retained from and allocated to
14owners licensees by the Board pursuant to this subsection
15(h-10) shall not be allocated to electronic gaming licensees
16pursuant to subsection (e) of Section 7.7 of this Act.
17 (i) A licensed owner is authorized to apply to the Board
18for and, if approved therefor, to receive all licenses from the
19Board necessary for the operation of a riverboat or a casino,
20including a liquor license, a license to prepare and serve food
21for human consumption, and other necessary licenses. All use,
22occupation and excise taxes which apply to the sale of food and
23beverages in this State and all taxes imposed on the sale or
24use of tangible personal property apply to such sales aboard
25the riverboat or in the casino.
26 (j) The Board may issue or re-issue a license authorizing a

HB4002- 383 -LRB100 11337 MJP 21715 b
1riverboat to dock in a municipality or approve a relocation
2under Section 11.2 only if, prior to the issuance or
3re-issuance of the license or approval, the governing body of
4the municipality in which the riverboat will dock has by a
5majority vote approved the docking of riverboats in the
6municipality. The Board may issue or re-issue a license
7authorizing a riverboat to dock in areas of a county outside
8any municipality or approve a relocation under Section 11.2
9only if, prior to the issuance or re-issuance of the license or
10approval, the governing body of the county has by a majority
11vote approved of the docking of riverboats within such areas.
12 (k) An owners licensee may conduct land-based gambling
13operations upon approval by the Board.
14 (l) An owners licensee may conduct gaming at a temporary
15facility pending the construction of a permanent facility or
16the remodeling or relocation of an existing facility to
17accommodate gaming participants for up to 24 months after the
18temporary facility begins to conduct gaming. Upon request by an
19owners licensee and upon a showing of good cause by the owners
20licensee, the Board shall extend the period during which the
21licensee may conduct gaming at a temporary facility by up to 12
22months. The Board shall make rules concerning the conduct of
23gaming from temporary facilities.
24(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
25 (230 ILCS 10/7.3)

HB4002- 384 -LRB100 11337 MJP 21715 b
1 Sec. 7.3. State conduct of gambling operations.
2 (a) If, after reviewing each application for a re-issued
3license, the Board determines that the highest prospective
4total revenue to the State would be derived from State conduct
5of the gambling operation in lieu of re-issuing the license,
6the Board shall inform each applicant of its decision. The
7Board shall thereafter have the authority, without obtaining an
8owners license, to conduct casino or riverboat gambling
9operations as previously authorized by the terminated,
10expired, revoked, or nonrenewed license through a licensed
11manager selected pursuant to an open and competitive bidding
12process as set forth in Section 7.5 and as provided in Section
137.4.
14 (b) The Board may locate any casino or riverboat on which a
15gambling operation is conducted by the State in any home dock
16or other location authorized by Section 3(c) upon receipt of
17approval from a majority vote of the governing body of the
18municipality or county, as the case may be, in which the
19riverboat will dock.
20 (c) The Board shall have jurisdiction over and shall
21supervise all gambling operations conducted by the State
22provided for in this Act and the Chicago Casino Development
23Authority Act and shall have all powers necessary and proper to
24fully and effectively execute the provisions of this Act and
25the Chicago Casino Development Authority Act relating to
26gambling operations conducted by the State.

HB4002- 385 -LRB100 11337 MJP 21715 b
1 (d) The maximum number of owners licenses authorized under
2Section 7 7(e) shall be reduced by one for each instance in
3which the Board authorizes the State to conduct a casino or
4riverboat gambling operation under subsection (a) in lieu of
5re-issuing a license to an applicant under Section 7.1.
6(Source: P.A. 93-28, eff. 6-20-03.)
7 (230 ILCS 10/7.5)
8 Sec. 7.5. Competitive Bidding. When the Board determines
9that (i) it will re-issue an owners license pursuant to an open
10and competitive bidding process, as set forth in Section 7.1,
11(ii) or that it will issue a managers license pursuant to an
12open and competitive bidding process, as set forth in Section
137.4, (iii) it will issue an owners license pursuant to an open
14and competitive bidding process, as set forth in Section 7.12,
15or (iv) it will allocate unused gaming positions pursuant to an
16open and competitive bidding process, as set forth in
17subsection (h-10) of Section 7, the open and competitive
18bidding process shall adhere to the following procedures:
19 (1) The Board shall make applications for owners and
20managers licenses available to the public and allow a
21reasonable time for applicants to submit applications to the
22Board.
23 (2) During the filing period for owners or managers license
24applications, the Board may retain the services of an
25investment banking firm to assist the Board in conducting the

HB4002- 386 -LRB100 11337 MJP 21715 b
1open and competitive bidding process.
2 (3) After receiving all of the bid proposals, the Board
3shall open all of the proposals in a public forum and disclose
4the prospective owners or managers names, venture partners, if
5any, and, in the case of applicants for owners licenses, the
6locations of the proposed development sites.
7 (4) The Board shall summarize the terms of the proposals
8and may make this summary available to the public.
9 (5) The Board shall evaluate the proposals within a
10reasonable time and select no more than 3 final applicants to
11make presentations of their proposals to the Board.
12 (6) The final applicants shall make their presentations to
13the Board on the same day during an open session of the Board.
14 (7) As soon as practicable after the public presentations
15by the final applicants, the Board, in its discretion, may
16conduct further negotiations among the 3 final applicants.
17During such negotiations, each final applicant may increase its
18license bid or otherwise enhance its bid proposal. At the
19conclusion of such negotiations, the Board shall select the
20winning proposal. In the case of negotiations for an owners
21license, the Board may, at the conclusion of such negotiations,
22make the determination allowed under Section 7.3(a).
23 (8) Upon selection of a winning bid, the Board shall
24evaluate the winning bid within a reasonable period of time for
25licensee suitability in accordance with all applicable
26statutory and regulatory criteria.

HB4002- 387 -LRB100 11337 MJP 21715 b
1 (9) If the winning bidder is unable or otherwise fails to
2consummate the transaction, (including if the Board determines
3that the winning bidder does not satisfy the suitability
4requirements), the Board may, on the same criteria, select from
5the remaining bidders or make the determination allowed under
6Section 7.3(a).
7(Source: P.A. 93-28, eff. 6-20-03.)
8 (230 ILCS 10/7.7 new)
9 Sec. 7.7. Electronic gaming.
10 (a) The General Assembly finds that the horse racing and
11riverboat gambling industries share many similarities and
12collectively comprise the bulk of the State's gaming industry.
13One feature common to both industries is that each is highly
14regulated by the State of Illinois. The General Assembly
15further finds, however, that despite their shared features each
16industry is distinct from the other in that horse racing is and
17continues to be intimately tied to Illinois' agricultural
18economy and is, at its core, a spectator sport. This
19distinction requires the General Assembly to utilize different
20methods to regulate and promote the horse racing industry
21throughout the State. The General Assembly finds that in order
22to promote live horse racing as a spectator sport in Illinois
23and the agricultural economy of this State, it is necessary to
24allow electronic gaming at Illinois race tracks as an ancillary
25use given the success of other states in increasing live racing

HB4002- 388 -LRB100 11337 MJP 21715 b
1purse accounts and improving the quality of horses
2participating in horse race meetings.
3 (b) The Illinois Gaming Board shall award one electronic
4gaming license to each person or entity having operating
5control of a race track that applies under Section 56 of the
6Illinois Horse Racing Act of 1975, subject to the application
7and eligibility requirements of this Section. Within 60 days
8after the effective date of this amendatory Act of the 100th
9General Assembly, a person or entity having operating control
10of a race track may submit an application for an electronic
11gaming license. The application shall be made on such forms as
12provided by the Board and shall contain such information as the
13Board prescribes, including, but not limited to, the identity
14of any race track at which electronic gaming will be conducted,
15detailed information regarding the ownership and management of
16the applicant, and detailed personal information regarding the
17applicant. The application shall specify the number of gaming
18positions the applicant intends to use and the place where the
19electronic gaming facility will operate. A person who knowingly
20makes a false statement on an application is guilty of a Class
21A misdemeanor.
22 Each applicant shall disclose the identity of every person
23or entity having a direct or indirect pecuniary interest
24greater than 1% in any race track with respect to which the
25license is sought. If the disclosed entity is a corporation,
26the applicant shall disclose the names and addresses of all

HB4002- 389 -LRB100 11337 MJP 21715 b
1stockholders and directors. If the disclosed entity is a
2limited liability company, the applicant shall disclose the
3names and addresses of all members and managers. If the
4disclosed entity is a partnership, the applicant shall disclose
5the names and addresses of all partners, both general and
6limited. If the disclosed entity is a trust, the applicant
7shall disclose the names and addresses of all beneficiaries.
8 An application shall be filed and considered in accordance
9with the rules of the Board. Each application for an electronic
10gaming license shall include a non-refundable application fee
11of $100,000. In addition, a non-refundable fee of $50,000 shall
12be paid at the time of filing to defray the costs associated
13with background investigations conducted by the Board. If the
14costs of the background investigation exceed $50,000, the
15applicant shall pay the additional amount to the Board within 7
16days after a request by the Board. If the costs of the
17investigation are less than $50,000, the applicant shall
18receive a refund of the remaining amount. All information,
19records, interviews, reports, statements, memoranda, or other
20data supplied to or used by the Board in the course of this
21review or investigation of an applicant for an electronic
22gaming license under this Act shall be privileged and strictly
23confidential and shall be used only for the purpose of
24evaluating an applicant for an electronic gaming license or a
25renewal. Such information, records, interviews, reports,
26statements, memoranda, or other data shall not be admissible as

HB4002- 390 -LRB100 11337 MJP 21715 b
1evidence nor discoverable in any action of any kind in any
2court or before any tribunal, board, agency or person, except
3for any action deemed necessary by the Board. The application
4fee shall be deposited into the Gaming Facilities Fee Revenue
5Fund.
6 Each applicant shall submit with his or her application, on
7forms provided by the Board, 2 sets of his or her fingerprints.
8The Board shall charge each applicant a fee set by the
9Department of State Police to defray the costs associated with
10the search and classification of fingerprints obtained by the
11Board with respect to the applicant's application. This fee
12shall be paid into the State Police Services Fund.
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

HB4002- 391 -LRB100 11337 MJP 21715 b
1is reached.
2 An electronic gaming license shall authorize its holder to
3conduct gaming under this Act at its racetracks on the same
4days of the year and hours of the day that owner licenses are
5allowed to operate under approval of the Board.
6 A license to conduct electronic gaming and any renewal of
7an electronic gaming license shall authorize electronic gaming
8for a period of 4 years. The fee for the issuance or renewal of
9an electronic gaming license shall be $100,000.
10 (d) To be eligible to conduct electronic gaming, a person
11or entity having operating control of a race track must (i)
12obtain an electronic gaming license, (ii) hold an organization
13license under the Illinois Horse Racing Act of 1975, (iii) hold
14an inter-track wagering license, (iv) pay an initial fee of
15$30,000 per gaming position from electronic gaming licensees
16where electronic gaming is conducted in Cook County and $17,500
17for electronic gaming licensees where electronic gaming is
18located outside of Cook County before beginning to conduct
19electronic gaming plus make the reconciliation payment
20required under subsection (i), (v) conduct at least 240 live
21races at each track per year or for a licensee that is only
22authorized 350 gaming positions pursuant to subsection (d) of
23Section 7.7 of this Act, have a fully operational facility
24running at least 96 live races over a period of at least 15
25days per year until such time as the total number of gaming
26positions is increased to 900, (vi) meet the requirements of

HB4002- 392 -LRB100 11337 MJP 21715 b
1subsection (a) of Section 56 of the Illinois Horse Racing Act
2of 1975, (vii) for organization licensees conducting
3standardbred race meetings that had an open backstretch in
42009, keep backstretch barns and dormitories open and
5operational year-round unless a lesser schedule is mutually
6agreed to by the organization licensee and the horsemen's
7association racing at that organization licensee's race
8meeting, (viii) for organization licensees conducting
9thoroughbred race meetings, the organization licensee must
10maintain accident medical expense liability insurance coverage
11of $1,000,000 for jockeys, and (ix) meet all other requirements
12of this Act that apply to owners licensees. Only those persons
13or entities (or its successors or assigns) that had operating
14control of a race track and held an inter-track wagering
15license authorized by the Illinois Racing Board in 2009 are
16eligible.
17 An electronic gaming licensee may enter into a joint
18venture with a licensed owner to own, manage, conduct, or
19otherwise operate the electronic gaming licensee's electronic
20gaming facilities, unless the electronic gaming licensee has a
21parent company or other affiliated company that is, directly or
22indirectly, wholly owned by a parent company that is also
23licensed to conduct electronic gaming, casino gaming, or their
24equivalent in another state.
25 All payments by licensees under this subsection (c) shall
26be deposited into the Gaming Facilities Fee Revenue Fund.

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1 (e) A person or entity is ineligible to receive an
2electronic gaming license if:
3 (1) the person or entity has been convicted of a felony
4 under the laws of this State, any other state, or the
5 United States, including a conviction under the Racketeer
6 Influenced and Corrupt Organizations Act;
7 (2) the person or entity has been convicted of any
8 violation of Article 28 of the Criminal Code of 2012, or
9 substantially similar laws of any other jurisdiction;
10 (3) the person or entity has submitted an application
11 for a license under this Act that contains false
12 information;
13 (4) the person is a member of the Board;
14 (5) a person defined in (1), (2), (3), or (4) of this
15 subsection (e) is an officer, director, or managerial
16 employee of the entity;
17 (6) the person or entity employs a person defined in
18 (1), (2), (3), or (4) of this subsection (e) who
19 participates in the management or operation of gambling
20 operations authorized under this Act; or
21 (7) a license of the person or entity issued under this
22 Act or a license to own or operate gambling facilities in
23 any other jurisdiction has been revoked.
24 (f) The Board may approve electronic gaming positions
25statewide as provided in this Section. The authority to operate
26electronic gaming positions under this Section shall be

HB4002- 394 -LRB100 11337 MJP 21715 b
1allocated as follows: up to 1,200 gaming positions for any
2electronic gaming licensee in Cook County whose electronic
3gaming license originates with an organization licensee that
4conducted live racing in calendar year 2016; up to 900 gaming
5positions for any electronic gaming licensee outside of Cook
6County whose electronic gaming license originates with an
7organization licensee that conducted live racing in calendar
8year 2016; and up to 350 gaming positions for any electronic
9gaming licensee whose electronic gaming license originates
10with an organization licensee that did not conduct live racing
11in calendar year 2010, which shall increase to 900 gaming
12positions in the calendar year following the year in which the
13electronic gaming licensee conducts 96 live races.
14 (g) Each applicant for an electronic gaming license shall
15specify in its application for licensure the number of gaming
16positions it will operate, up to the applicable limitation set
17forth in subsection (f) of this Section. Any unreserved gaming
18positions that are not specified shall be forfeited and
19retained by the Board. For the purposes of this subsection (g),
20an electronic gaming licensee that did not conduct live racing
21in 2010 may reserve up to 900 positions and shall not be
22penalized under this Section for not operating those positions
23until it meets the requirements of subsection (f) of this
24Section, but such licensee shall not request unreserved gaming
25positions under this subsection (g) until its 900 positions are
26all operational.

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1 Thereafter, the Board shall publish the number of
2unreserved electronic gaming positions and shall accept
3requests for additional positions from any electronic gaming
4licensee that initially reserved all of the positions that were
5offered. The Board shall allocate expeditiously the unreserved
6electronic gaming positions to requesting electronic gaming
7licensees in a manner that maximizes revenue to the State. The
8Board may allocate any such unused electronic gaming positions
9pursuant to an open and competitive bidding process, as
10provided under Section 7.5 of this Act. This process shall
11continue until all unreserved gaming positions have been
12purchased. All positions obtained pursuant to this process and
13all positions the electronic gaming licensee specified it would
14operate in its application must be in operation within 18
15months after they were obtained or the electronic gaming
16licensee forfeits the right to operate those positions, but is
17not entitled to a refund of any fees paid. The Board may, after
18holding a public hearing, grant extensions so long as the
19electronic gaming licensee is working in good faith to make the
20positions operational. The extension may be for a period of 6
21months. If, after the period of the extension, the electronic
22gaming licensee has not made the positions operational, then
23another public hearing must be held by the Board before it may
24grant another extension.
25 Unreserved gaming positions retained from and allocated to
26electronic gaming licensees by the Board pursuant to this

HB4002- 396 -LRB100 11337 MJP 21715 b
1subsection (g) shall not be allocated to owners licensees
2pursuant to subsection (h-10) of Section 7 of this Act.
3 For the purpose of this subsection (g), the unreserved
4gaming positions for each electronic gaming licensee shall be
5the applicable limitation set forth in subsection (f) of this
6Section, less the number of reserved gaming positions by such
7electronic gaming licensee, and the total unreserved gaming
8positions shall be the aggregate of the unreserved gaming
9positions for all electronic gaming licensees.
10 (h) Subject to the approval of the Illinois Gaming Board,
11an electronic gaming licensee may make modification or
12additions to any existing buildings and structures to comply
13with the requirements of this Act. The Illinois Gaming Board
14shall make its decision after consulting with the Illinois
15Racing Board. In no case, however, shall the Illinois Gaming
16Board approve any modification or addition that alters the
17grounds of the organization licensee such that the act of live
18racing is an ancillary activity to electronic gaming.
19Electronic gaming may take place in existing structures where
20inter-track wagering is conducted at the race track or a
21facility within 300 yards of the race track in accordance with
22the provisions of this Act and the Illinois Horse Racing Act of
231975.
24 (i) An electronic gaming licensee may conduct electronic
25gaming at a temporary facility pending the construction of a
26permanent facility or the remodeling or relocation of an

HB4002- 397 -LRB100 11337 MJP 21715 b
1existing facility to accommodate electronic gaming
2participants for up to 24 months after the temporary facility
3begins to conduct electronic gaming. Upon request by an
4electronic gaming licensee and upon a showing of good cause by
5the electronic gaming licensee, the Board shall extend the
6period during which the licensee may conduct electronic gaming
7at a temporary facility by up to 12 months. The Board shall
8make rules concerning the conduct of electronic gaming from
9temporary facilities.
10 Electronic gaming may take place in existing structures
11where inter-track wagering is conducted at the race track or a
12facility within 300 yards of the race track in accordance with
13the provisions of this Act and the Illinois Horse Racing Act of
141975.
15 (j) The Illinois Gaming Board must adopt emergency rules in
16accordance with Section 5-45 of the Illinois Administrative
17Procedure Act as necessary to ensure compliance with the
18provisions of this amendatory Act of the 100th General Assembly
19concerning electronic gaming. The adoption of emergency rules
20authorized by this subsection (j) shall be deemed to be
21necessary for the public interest, safety, and welfare.
22 (k) Each electronic gaming licensee who obtains electronic
23gaming positions must make a reconciliation payment 3 years
24after the date the electronic gaming licensee begins operating
25the positions in an amount equal to 75% of the difference
26between its adjusted gross receipts from electronic gaming and

HB4002- 398 -LRB100 11337 MJP 21715 b
1amounts paid to its purse accounts pursuant to item (1) of
2subsection (b) of Section 56 of the Illinois Horse Racing Act
3of 1975 for the 12-month period for which such difference was
4the largest, minus an amount equal to the initial per position
5fee paid by the electronic gaming licensee. If this calculation
6results in a negative amount, then the electronic gaming
7licensee is not entitled to any reimbursement of fees
8previously paid. This reconciliation payment may be made in
9installments over a period of no more than 2 years, subject to
10Board approval. Any installment payments shall include an
11annual market interest rate as determined by the Board.
12 All payments by licensees under this subsection (i) shall
13be deposited into the Gaming Facilities Fee Revenue Fund.
14 (l) As soon as practical after a request is made by the
15Illinois Gaming Board, to minimize duplicate submissions by the
16applicant, the Illinois Racing Board must provide information
17on an applicant for an electronic gaming license to the
18Illinois Gaming Board.
19 (230 ILCS 10/7.8 new)
20 Sec. 7.8. Home rule. The regulation and licensing of
21electronic gaming and electronic gaming licensees are
22exclusive powers and functions of the State. A home rule unit
23may not regulate or license electronic gaming or electronic
24gaming licensees. This Section is a denial and limitation of
25home rule powers and functions under subsection (h) of Section

HB4002- 399 -LRB100 11337 MJP 21715 b
16 of Article VII of the Illinois Constitution.
2 (230 ILCS 10/7.9 new)
3 Sec. 7.9. Casino operator license.
4 (a) A qualified person may apply to the Board for a casino
5operator license to operate and manage any gambling operation
6conducted by the Authority. The application shall be made on
7forms provided by the Board and shall contain such information
8as the Board prescribes, including but not limited to
9information required in Sections 6(a), (b), and (c) and
10information relating to the applicant's proposed price to
11manage the Authority's gambling operations and to provide the
12casino, gambling equipment, and supplies necessary to conduct
13Authority gambling operations. The application shall also
14include a non-refundable application fee of $100,000. This
15application fee shall be deposited into the Gaming Facilities
16Fee Revenue Fund.
17 (b) A person or entity is ineligible to receive a casino
18operator license if:
19 (1) the person has been convicted of a felony under the
20 laws of this State, any other state, or the United States;
21 (2) the person has been convicted of any violation of
22 Article 28 of the Criminal Code of 2012, or substantially
23 similar laws of any other jurisdiction;
24 (3) the person has submitted an application for a
25 license under this Act or the Chicago Casino Development

HB4002- 400 -LRB100 11337 MJP 21715 b
1 Authority Act which contains false information;
2 (4) the person is a member of the Board or the Chicago
3 Casino Development Board or the person is an official or
4 employee of the Chicago Casino Development Authority or the
5 City of Chicago;
6 (5) a person defined in (1), (2), (3), or (4) is an
7 officer, director, or managerial employee of the entity;
8 (6) the entity employs a person defined in (1), (2),
9 (3), or (4) who participates in the management or operation
10 of gambling operations authorized under this Act; or
11 (7) a license of the person or entity issued under this
12 Act, or a license to own or operate gambling facilities in
13 any other jurisdiction, has been revoked.
14 (c) In determining whether to grant a casino operator
15license, the Board shall consider:
16 (1) the character, reputation, experience and
17 financial integrity of the applicants and of any other or
18 separate person that either:
19 (A) controls, directly or indirectly, such
20 applicant, or
21 (B) is controlled, directly or indirectly, by such
22 applicant or by a person which controls, directly or
23 indirectly, such applicant;
24 (2) the facilities or proposed facilities for the
25 conduct of gambling;
26 (3) the preference of the municipality in which the

HB4002- 401 -LRB100 11337 MJP 21715 b
1 licensee will operate;
2 (4) the extent to which the ownership of the applicant
3 reflects the diversity of the State by including minority
4 persons and females and the good faith affirmative action
5 plan of each applicant to recruit, train, and upgrade
6 minority persons and females in all employment
7 classifications;
8 (5) the financial ability of the applicant to purchase
9 and maintain adequate liability and casualty insurance;
10 (6) whether the applicant has adequate capitalization
11 to provide and maintain, for the duration of a license, a
12 casino; and
13 (7) the extent to which the applicant exceeds or meets
14 other standards for the issuance of a casino operator
15 license that the Board may adopt by rule.
16 (d) Each applicant shall submit with his or her
17application, on forms prescribed by the Board, 2 sets of his or
18her fingerprints. The Board shall charge each applicant a fee
19set by the Department of State Police to defray the costs
20associated with the search and classification of fingerprints
21obtained by the Board with respect to the applicant's
22application. This fee shall be paid into the State Police
23Services Fund.
24 (e) A person who knowingly makes a false statement on an
25application is guilty of a Class A misdemeanor.
26 (f) The Board shall charge each applicant a non-refundable

HB4002- 402 -LRB100 11337 MJP 21715 b
1fee of $50,000 to defray the costs associated with the
2background investigation conducted by the Board. This fee shall
3be exclusive of any other fee or fees charged in connection
4with an application for and, if applicable, the issuance of, a
5casino operator license. If the costs of the investigation
6exceed $50,000, the Board shall immediately notify the
7applicant of the additional amount owed, payment of which must
8be submitted to the Board within 7 days after such
9notification. All information, records, interviews, reports,
10statements, memoranda, or other data supplied to or used by the
11Board in the course of its review or investigation of an
12application for a license or a renewal under this Act shall be
13privileged and strictly confidential and shall be used only for
14the purpose of evaluating an applicant for a license or a
15renewal. Such information, records, interviews, reports,
16statements, memoranda, or other data shall not be admissible as
17evidence, nor discoverable in any action of any kind in any
18court or before any tribunal, board, agency, or person, except
19for any action deemed necessary by the Board.
20 (g) The casino operator license shall be issued only upon
21proof that the applicant has entered into a labor peace
22agreement with each labor organization that is actively engaged
23in representing and attempting to represent casino and
24hospitality industry workers in this State. The labor peace
25agreement must be a valid and enforceable agreement under 29
26U.S.C. 185 that protects the city's and State's revenues from

HB4002- 403 -LRB100 11337 MJP 21715 b
1the operation of the casino facility by prohibiting the labor
2organization and its members from engaging in any picketing,
3work stoppages, boycotts, or any other economic interference
4with the casino facility for at least the first 5 years of the
5casino license and must cover all operations at the casino
6facility that are conducted by lessees or tenants or under
7management agreements.
8 (h) The casino operator license shall be for a term of 4
9years, shall be renewable by the Board, and shall contain such
10terms and provisions as the Board deems necessary to protect or
11enhance the credibility and integrity of State gambling
12operations, achieve the highest prospective total revenue to
13the State, and otherwise serve the interests of the citizens of
14Illinois. The Board may suspend, restrict, or revoke the
15license:
16 (1) for violation of any provision of this Act;
17 (2) for violation of any rules of the Board;
18 (3) for any cause which, if known to the Board, would
19 have disqualified the applicant from receiving the
20 license; or
21 (4) for any other just cause.
22 (230 ILCS 10/7.10 new)
23 Sec. 7.10. Diversity program.
24 (a) Each owners licensee, electronic gaming licensee,
25casino operator licensee, and suppliers licensee shall

HB4002- 404 -LRB100 11337 MJP 21715 b
1establish and maintain a diversity program to ensure
2non-discrimination in the award and administration of
3contracts. The programs shall establish goals of awarding not
4less than 20% of the annual dollar value of all contracts,
5purchase orders, or other agreements to minority-owned
6businesses and 5% of the annual dollar value of all contracts
7to female-owned businesses.
8 (b) Each owners licensee, electronic gaming licensee,
9casino operator licensee, and suppliers licensee shall
10establish and maintain a diversity program designed to promote
11equal opportunity for employment. The program shall establish
12hiring goals as the Board and each licensee determines
13appropriate. The Board shall monitor the progress of the gaming
14licensee's progress with respect to the program's goals.
15 (c) No later than May 31 of each year, each licensee shall
16report to the Board (1) the number of respective employees and
17the number of its respective employees who have designated
18themselves as members of a minority group and gender and (2)
19the total goals achieved under subsection (a) of this Section
20as a percentage of the total contracts awarded by the license.
21In addition, all licensees shall submit a report with respect
22to the minority-owned and female-owned businesses program
23created in this Section to the Board.
24 (d) When considering whether to re-issue or renew a license
25to an owners licensee, electronic gaming licensee, casino
26operator licensee, or suppliers licensee, the Board shall take

HB4002- 405 -LRB100 11337 MJP 21715 b
1into account the licensee's success in complying with the
2provisions of this Section. If an owners licensee, electronic
3gaming licensee, casino operator licensee, or suppliers
4licensee has not satisfied the goals contained in this Section,
5the Board shall require a written explanation as to why the
6licensee is not in compliance and shall require the licensee to
7file multi-year metrics designed to achieve compliance with the
8provisions by the next renewal period, consistent with State
9and federal law.
10 (230 ILCS 10/7.11 new)
11 Sec. 7.11. Annual report on diversity.
12 (a) Each licensee that receives a license under Sections 7,
137.1, and 7.7 shall execute and file a report with the Board no
14later than December 31 of each year that shall contain, but not
15be limited to, the following information:
16 (i) a good faith affirmative action plan to recruit,
17 train, and upgrade minority persons, females, and persons
18 with a disability in all employment classifications;
19 (ii) the total dollar amount of contracts that were
20 awarded to businesses owned by minority persons, females,
21 and persons with a disability;
22 (iii) the total number of businesses owned by minority
23 persons, females, and persons with a disability that were
24 utilized by the licensee;
25 (iv) the utilization of businesses owned by minority

HB4002- 406 -LRB100 11337 MJP 21715 b
1 persons, females, and persons with disabilities during the
2 preceding year; and
3 (v) the outreach efforts used by the licensee to
4 attract investors and businesses consisting of minority
5 persons, females, and persons with a disability.
6 (b) The Board shall forward a copy of each licensee's
7annual reports to the General Assembly no later than February 1
8of each year.
9 (230 ILCS 10/7.12 new)
10 Sec. 7.12. Issuance of new owners licenses.
11 (a) Except for the owners license issued to the Chicago
12Casino Development Authority, owners licenses newly authorized
13pursuant to this amendatory Act of the 100th General Assembly
14may be issued by the Board to a qualified applicant pursuant to
15an open and competitive bidding process, as set forth in
16Section 7.5, and subject to the maximum number of authorized
17licenses set forth in subsection (e-5) of Section 7 of this
18Act.
19 (b) To be a qualified applicant, a person or entity may not
20be ineligible to receive an owners license under subsection (a)
21of Section 7 of this Act and must submit an application for an
22owners license that complies with Section 6 of this Act.
23 (c) In determining whether to grant an owners license to an
24applicant, the Board shall consider all of the factors set
25forth in subsections (b) and (e-10) of Section 7 of this Act,

HB4002- 407 -LRB100 11337 MJP 21715 b
1as well as the amount of the applicant's license bid. The Board
2may grant the owners license to an applicant that has not
3submitted the highest license bid, but if it does not select
4the highest bidder, the Board shall issue a written decision
5explaining why another applicant was selected and identifying
6the factors set forth in subsections (b) and (e-10) of Section
77 of this Act that favored the winning bidder.
8 (230 ILCS 10/7.13 new)
9 Sec. 7.13. Environmental standards. All permanent
10casinos, riverboats, and electronic gaming facilities shall
11consist of buildings that are certified as meeting the U.S.
12Green Building Council's Leadership in Energy and
13Environmental Design standards. The provisions of this Section
14apply to a holder of an owners license, casino operator
15license, or electronic gaming license that (i) begins
16operations on or after January 1, 2017 or (ii) relocates its
17facilities on or after the effective date of this amendatory
18Act of the 100th General Assembly.
19 (230 ILCS 10/8) (from Ch. 120, par. 2408)
20 Sec. 8. Suppliers licenses.
21 (a) The Board may issue a suppliers license to such
22persons, firms or corporations which apply therefor upon the
23payment of a non-refundable application fee set by the Board,
24upon a determination by the Board that the applicant is

HB4002- 408 -LRB100 11337 MJP 21715 b
1eligible for a suppliers license and upon payment of a $5,000
2annual license fee.
3 (b) The holder of a suppliers license is authorized to sell
4or lease, and to contract to sell or lease, gambling equipment
5and supplies to any licensee involved in the ownership or
6management of gambling operations.
7 (c) Gambling supplies and equipment may not be distributed
8unless supplies and equipment conform to standards adopted by
9rules of the Board.
10 (d) A person, firm or corporation is ineligible to receive
11a suppliers license if:
12 (1) the person has been convicted of a felony under the
13 laws of this State, any other state, or the United States;
14 (2) the person has been convicted of any violation of
15 Article 28 of the Criminal Code of 1961 or the Criminal
16 Code of 2012, or substantially similar laws of any other
17 jurisdiction;
18 (3) the person has submitted an application for a
19 license under this Act which contains false information;
20 (4) the person is a member of the Board;
21 (5) the entity firm or corporation is one in which a
22 person defined in (1), (2), (3) or (4), is an officer,
23 director or managerial employee;
24 (6) the firm or corporation employs a person who
25 participates in the management or operation of riverboat
26 gambling authorized under this Act or the Chicago Casino

HB4002- 409 -LRB100 11337 MJP 21715 b
1 Development Authority Act;
2 (7) the license of the person, firm or corporation
3 issued under this Act or the Chicago Casino Development
4 Authority Act, or a license to own or operate gambling
5 facilities in any other jurisdiction, has been revoked.
6 (e) Any person that supplies any equipment, devices, or
7supplies to a licensed riverboat gambling operation or casino
8or electronic gaming operation must first obtain a suppliers
9license. A supplier shall furnish to the Board a list of all
10equipment, devices and supplies offered for sale or lease in
11connection with gambling games authorized under this Act. A
12supplier shall keep books and records for the furnishing of
13equipment, devices and supplies to gambling operations
14separate and distinct from any other business that the supplier
15might operate. A supplier shall file a quarterly return with
16the Board listing all sales and leases. A supplier shall
17permanently affix its name or a distinctive logo or other mark
18or design element identifying the manufacturer or supplier to
19all its equipment, devices, and supplies, except gaming chips
20without a value impressed, engraved, or imprinted on it, for
21gambling operations. The Board may waive this requirement for
22any specific product or products if it determines that the
23requirement is not necessary to protect the integrity of the
24game. Items purchased from a licensed supplier may continue to
25be used even though the supplier subsequently changes its name,
26distinctive logo, or other mark or design element; undergoes a

HB4002- 410 -LRB100 11337 MJP 21715 b
1change in ownership; or ceases to be licensed as a supplier for
2any reason. Any supplier's equipment, devices or supplies which
3are used by any person in an unauthorized gambling operation
4shall be forfeited to the State. A holder of an owners license
5or an electronic gaming license A licensed owner may own its
6own equipment, devices and supplies. Each holder of an owners
7license or an electronic gaming license under the Act shall
8file an annual report listing its inventories of gambling
9equipment, devices and supplies.
10 (f) Any person who knowingly makes a false statement on an
11application is guilty of a Class A misdemeanor.
12 (g) Any gambling equipment, devices and supplies provided
13by any licensed supplier may either be repaired on the
14riverboat, in the casino, or at the electronic gaming facility
15or removed from the riverboat, casino, or electronic gaming
16facility to a an on-shore facility owned by the holder of an
17owners license or electronic gaming license for repair.
18(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;
1998-756, eff. 7-16-14.)
20 (230 ILCS 10/9) (from Ch. 120, par. 2409)
21 Sec. 9. Occupational licenses.
22 (a) The Board may issue an occupational license to an
23applicant upon the payment of a non-refundable fee set by the
24Board, upon a determination by the Board that the applicant is
25eligible for an occupational license and upon payment of an

HB4002- 411 -LRB100 11337 MJP 21715 b
1annual license fee in an amount to be established. To be
2eligible for an occupational license, an applicant must:
3 (1) be at least 21 years of age if the applicant will
4 perform any function involved in gaming by patrons. Any
5 applicant seeking an occupational license for a non-gaming
6 function shall be at least 18 years of age;
7 (2) not have been convicted of a felony offense, a
8 violation of Article 28 of the Criminal Code of 1961 or the
9 Criminal Code of 2012, or a similar statute of any other
10 jurisdiction;
11 (2.5) not have been convicted of a crime, other than a
12 crime described in item (2) of this subsection (a),
13 involving dishonesty or moral turpitude, except that the
14 Board may, in its discretion, issue an occupational license
15 to a person who has been convicted of a crime described in
16 this item (2.5) more than 10 years prior to his or her
17 application and has not subsequently been convicted of any
18 other crime;
19 (3) have demonstrated a level of skill or knowledge
20 which the Board determines to be necessary in order to
21 operate gambling aboard a riverboat, in a casino, or at an
22 electronic gaming facility; and
23 (4) have met standards for the holding of an
24 occupational license as adopted by rules of the Board. Such
25 rules shall provide that any person or entity seeking an
26 occupational license to manage gambling operations under

HB4002- 412 -LRB100 11337 MJP 21715 b
1 this Act or the Chicago Casino Development Authority Act
2 hereunder shall be subject to background inquiries and
3 further requirements similar to those required of
4 applicants for an owners license. Furthermore, such rules
5 shall provide that each such entity shall be permitted to
6 manage gambling operations for only one licensed owner.
7 (b) Each application for an occupational license shall be
8on forms prescribed by the Board and shall contain all
9information required by the Board. The applicant shall set
10forth in the application: whether he has been issued prior
11gambling related licenses; whether he has been licensed in any
12other state under any other name, and, if so, such name and his
13age; and whether or not a permit or license issued to him in
14any other state has been suspended, restricted or revoked, and,
15if so, for what period of time.
16 (c) Each applicant shall submit with his application, on
17forms provided by the Board, 2 sets of his fingerprints. The
18Board shall charge each applicant a fee set by the Department
19of State Police to defray the costs associated with the search
20and classification of fingerprints obtained by the Board with
21respect to the applicant's application. These fees shall be
22paid into the State Police Services Fund.
23 (d) The Board may in its discretion refuse an occupational
24license to any person: (1) who is unqualified to perform the
25duties required of such applicant; (2) who fails to disclose or
26states falsely any information called for in the application;

HB4002- 413 -LRB100 11337 MJP 21715 b
1(3) who has been found guilty of a violation of this Act or the
2Chicago Casino Development Authority Act or whose prior
3gambling related license or application therefor has been
4suspended, restricted, revoked or denied for just cause in any
5other state; or (4) for any other just cause.
6 (e) The Board may suspend, revoke or restrict any
7occupational licensee: (1) for violation of any provision of
8this Act; (2) for violation of any of the rules and regulations
9of the Board; (3) for any cause which, if known to the Board,
10would have disqualified the applicant from receiving such
11license; or (4) for default in the payment of any obligation or
12debt due to the State of Illinois; or (5) for any other just
13cause.
14 (f) A person who knowingly makes a false statement on an
15application is guilty of a Class A misdemeanor.
16 (g) Any license issued pursuant to this Section shall be
17valid for a period of one year from the date of issuance.
18 (h) Nothing in this Act shall be interpreted to prohibit a
19licensed owner or electronic gaming licensee from entering into
20an agreement with a public community college or a school
21approved under the Private Business and Vocational Schools Act
22of 2012 for the training of any occupational licensee. Any
23training offered by such a school shall be in accordance with a
24written agreement between the licensed owner or electronic
25gaming licensee and the school.
26 (i) Any training provided for occupational licensees may be

HB4002- 414 -LRB100 11337 MJP 21715 b
1conducted either at the site of the gambling facility on the
2riverboat or at a school with which a licensed owner or
3electronic gaming licensee has entered into an agreement
4pursuant to subsection (h).
5(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;
697-1150, eff. 1-25-13.)
7 (230 ILCS 10/11) (from Ch. 120, par. 2411)
8 Sec. 11. Conduct of gambling. Gambling may be conducted by
9licensed owners or licensed managers on behalf of the State
10aboard riverboats. Gambling may be conducted by electronic
11gaming licensees at electronic gaming facilities. Gambling may
12be conducted by a casino operator licensee at a casino.
13Gambling authorized under this Section is , subject to the
14following standards:
15 (1) A licensee may conduct riverboat gambling
16 authorized under this Act regardless of whether it conducts
17 excursion cruises. A licensee may permit the continuous
18 ingress and egress of patrons passengers on a riverboat not
19 used for excursion cruises for the purpose of gambling.
20 Excursion cruises shall not exceed 4 hours for a round
21 trip. However, the Board may grant express approval for an
22 extended cruise on a case-by-case basis.
23 (2) (Blank).
24 (3) Minimum and maximum wagers on games shall be set by
25 the licensee.

HB4002- 415 -LRB100 11337 MJP 21715 b
1 (4) Agents of the Board and the Department of State
2 Police may board and inspect any riverboat, enter and
3 inspect any portion of a casino, or enter and inspect any
4 portion of an electronic gaming facility at any time for
5 the purpose of determining whether this Act or the Chicago
6 Casino Development Authority Act is being complied with.
7 Every riverboat, if under way and being hailed by a law
8 enforcement officer or agent of the Board, must stop
9 immediately and lay to.
10 (5) Employees of the Board shall have the right to be
11 present on the riverboat or in the casino or on adjacent
12 facilities under the control of the licensee and at the
13 electronic gaming facility under the control of the
14 electronic gaming licensee.
15 (6) Gambling equipment and supplies customarily used
16 in conducting riverboat or casino gambling or electronic
17 gaming must be purchased or leased only from suppliers
18 licensed for such purpose under this Act. The Board may
19 approve the transfer, sale, or lease of gambling equipment
20 and supplies by a licensed owner from or to an affiliate of
21 the licensed owner as long as the gambling equipment and
22 supplies were initially acquired from a supplier licensed
23 in Illinois.
24 (7) Persons licensed under this Act or the Chicago
25 Casino Development Authority Act shall permit no form of
26 wagering on gambling games except as permitted by this Act.

HB4002- 416 -LRB100 11337 MJP 21715 b
1 (8) Wagers may be received only from a person present
2 on a licensed riverboat, in a casino, or at an electronic
3 gaming facility. No person present on a licensed riverboat,
4 in a casino, or at an electronic gaming facility shall
5 place or attempt to place a wager on behalf of another
6 person who is not present on the riverboat, in a casino, or
7 at the electronic gaming facility.
8 (9) Wagering, including electronic gaming, shall not
9 be conducted with money or other negotiable currency.
10 (10) A person under age 21 shall not be permitted on an
11 area of a riverboat or casino where gambling is being
12 conducted or at an electronic gaming facility where
13 gambling is being conducted, except for a person at least
14 18 years of age who is an employee of the riverboat or
15 casino gambling operation or electronic gaming operation.
16 No employee under age 21 shall perform any function
17 involved in gambling by the patrons. No person under age 21
18 shall be permitted to make a wager under this Act or the
19 Chicago Casino Development Authority Act, and any winnings
20 that are a result of a wager by a person under age 21,
21 whether or not paid by a licensee, shall be treated as
22 winnings for the privilege tax purposes, confiscated, and
23 forfeited to the State and deposited into the Education
24 Assistance Fund.
25 (11) Gambling excursion cruises are permitted only
26 when the waterway for which the riverboat is licensed is

HB4002- 417 -LRB100 11337 MJP 21715 b
1 navigable, as determined by the Board in consultation with
2 the U.S. Army Corps of Engineers. This paragraph (11) does
3 not limit the ability of a licensee to conduct gambling
4 authorized under this Act when gambling excursion cruises
5 are not permitted.
6 (12) All tokens, chips or electronic cards used to make
7 wagers must be purchased (i) from a licensed owner or
8 manager, in the case of a riverboat, either aboard a
9 riverboat or at an onshore facility which has been approved
10 by the Board and which is located where the riverboat
11 docks, (ii) in the case of a casino, from a licensed owner
12 or licensed casino operator at the casino, or (iii) from an
13 electronic gaming licensee at the electronic gaming
14 facility. The tokens, chips or electronic cards may be
15 purchased by means of an agreement under which the owner,
16 or manager, or licensed casino operator extends credit to
17 the patron. Such tokens, chips or electronic cards may be
18 used while aboard the riverboat, in the casino, or at the
19 electronic gaming facility only for the purpose of making
20 wagers on gambling games.
21 (13) Notwithstanding any other Section of this Act or
22 the Chicago Casino Development Authority Act, in addition
23 to the other licenses authorized under this Act or the
24 Chicago Casino Development Authority Act, the Board may
25 issue special event licenses allowing persons who are not
26 otherwise licensed to conduct riverboat gambling to

HB4002- 418 -LRB100 11337 MJP 21715 b
1 conduct such gambling on a specified date or series of
2 dates. Riverboat gambling under such a license may take
3 place on a riverboat not normally used for riverboat
4 gambling. The Board shall establish standards, fees and
5 fines for, and limitations upon, such licenses, which may
6 differ from the standards, fees, fines and limitations
7 otherwise applicable under this Act or the Chicago Casino
8 Development Authority Act. All such fees shall be deposited
9 into the State Gaming Fund. All such fines shall be
10 deposited into the Education Assistance Fund, created by
11 Public Act 86-0018, of the State of Illinois.
12 (14) In addition to the above, gambling must be
13 conducted in accordance with all rules adopted by the
14 Board.
15(Source: P.A. 96-1392, eff. 1-1-11.)
16 (230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)
17 Sec. 11.1. Collection of amounts owing under credit
18agreements. Notwithstanding any applicable statutory provision
19to the contrary, a licensed owner, licensed or manager,
20licensed casino operator, or electronic gaming licensee who
21extends credit to a riverboat gambling patron or an electronic
22gaming patron pursuant to Section 11 (a) (12) of this Act is
23expressly authorized to institute a cause of action to collect
24any amounts due and owing under the extension of credit, as
25well as the licensed owner's, licensed or manager's, licensed

HB4002- 419 -LRB100 11337 MJP 21715 b
1casino operator's, or electronic gaming licensee's costs,
2expenses and reasonable attorney's fees incurred in
3collection.
4(Source: P.A. 93-28, eff. 6-20-03.)
5 (230 ILCS 10/12) (from Ch. 120, par. 2412)
6 Sec. 12. Admission tax; fees.
7 (a) A tax is hereby imposed upon admissions to riverboat
8and casino gambling facilities riverboats operated by licensed
9owners authorized pursuant to this Act and the Chicago Casino
10Development Authority Act. Until July 1, 2002, the rate is $2
11per person admitted. From July 1, 2002 until July 1, 2003, the
12rate is $3 per person admitted. From July 1, 2003 until August
1323, 2005 (the effective date of Public Act 94-673), for a
14licensee that admitted 1,000,000 persons or fewer in the
15previous calendar year, the rate is $3 per person admitted; for
16a licensee that admitted more than 1,000,000 but no more than
172,300,000 persons in the previous calendar year, the rate is $4
18per person admitted; and for a licensee that admitted more than
192,300,000 persons in the previous calendar year, the rate is $5
20per person admitted. Beginning on August 23, 2005 (the
21effective date of Public Act 94-673), for a licensee that
22admitted 1,000,000 persons or fewer in calendar year 2004, the
23rate is $2 per person admitted, and for all other licensees,
24including licensees that were not conducting gambling
25operations in 2004, the rate is $3 per person admitted. This

HB4002- 420 -LRB100 11337 MJP 21715 b
1admission tax is imposed upon the licensed owner conducting
2gambling.
3 (1) The admission tax shall be paid for each admission,
4 except that a person who exits a riverboat gambling
5 facility and reenters that riverboat gambling facility
6 within the same gaming day shall be subject only to the
7 initial admission tax.
8 (2) (Blank).
9 (3) The riverboat licensee may issue tax-free passes to
10 actual and necessary officials and employees of the
11 licensee or other persons actually working on the
12 riverboat.
13 (4) The number and issuance of tax-free passes is
14 subject to the rules of the Board, and a list of all
15 persons to whom the tax-free passes are issued shall be
16 filed with the Board.
17 (a-5) A fee is hereby imposed upon admissions operated by
18licensed managers on behalf of the State pursuant to Section
197.3 at the rates provided in this subsection (a-5). For a
20licensee that admitted 1,000,000 persons or fewer in the
21previous calendar year, the rate is $3 per person admitted; for
22a licensee that admitted more than 1,000,000 but no more than
232,300,000 persons in the previous calendar year, the rate is $4
24per person admitted; and for a licensee that admitted more than
252,300,000 persons in the previous calendar year, the rate is $5
26per person admitted.

HB4002- 421 -LRB100 11337 MJP 21715 b
1 (1) The admission fee shall be paid for each admission.
2 (2) (Blank).
3 (3) The licensed manager may issue fee-free passes to
4 actual and necessary officials and employees of the manager
5 or other persons actually working on the riverboat.
6 (4) The number and issuance of fee-free passes is
7 subject to the rules of the Board, and a list of all
8 persons to whom the fee-free passes are issued shall be
9 filed with the Board.
10 (b) Except as provided in subsection (b-5), from From the
11tax imposed under subsection (a) and the fee imposed under
12subsection (a-5), a municipality shall receive from the State
13$1 for each person embarking on a riverboat docked within the
14municipality or entering a casino located within the
15municipality, and a county shall receive $1 for each person
16entering a casino or embarking on a riverboat docked within the
17county but outside the boundaries of any municipality. The
18municipality's or county's share shall be collected by the
19Board on behalf of the State and remitted quarterly by the
20State, subject to appropriation, to the treasurer of the unit
21of local government for deposit in the general fund.
22 (b-5) From the tax imposed under subsection (a) and the fee
23imposed under subsection (a-5), $1 for each person embarking on
24a riverboat designated in paragraph (4) of subsection (e-5) of
25Section 7 shall be divided as follows: $0.70 to the City of
26Rockford, $0.05 to the City of Loves Park, $0.05 to the Village

HB4002- 422 -LRB100 11337 MJP 21715 b
1of Machesney Park, and $0.20 to Winnebago County.
2 The municipality's or county's share shall be collected by
3the Board on behalf of the State and remitted monthly by the
4State, subject to appropriation, to the treasurer of the unit
5of local government for deposit in the general fund.
6 (c) The licensed owner shall pay the entire admission tax
7to the Board and the licensed manager or the casino operator
8licensee shall pay the entire admission fee to the Board. Such
9payments shall be made daily. Accompanying each payment shall
10be a return on forms provided by the Board which shall include
11other information regarding admissions as the Board may
12require. Failure to submit either the payment or the return
13within the specified time may result in suspension or
14revocation of the owners or managers license.
15 (c-5) A tax is imposed on admissions to electronic gaming
16facilities at the rate of $3 per person admitted by an
17electronic gaming licensee. The tax is imposed upon the
18electronic gaming licensee.
19 (1) The admission tax shall be paid for each admission,
20 except that a person who exits an electronic gaming
21 facility and reenters that electronic gaming facility
22 within the same gaming day, as the term "gaming day" is
23 defined by the Board by rule, shall be subject only to the
24 initial admission tax. The Board shall establish, by rule,
25 a procedure to determine whether a person admitted to an
26 electronic gaming facility has paid the admission tax.

HB4002- 423 -LRB100 11337 MJP 21715 b
1 (2) An electronic gaming licensee may issue tax-free
2 passes to actual and necessary officials and employees of
3 the licensee and other persons associated with electronic
4 gaming operations.
5 (3) The number and issuance of tax-free passes is
6 subject to the rules of the Board, and a list of all
7 persons to whom the tax-free passes are issued shall be
8 filed with the Board.
9 (4) The electronic gaming licensee shall pay the entire
10 admission tax to the Board.
11 Such payments shall be made daily. Accompanying each
12payment shall be a return on forms provided by the Board, which
13shall include other information regarding admission as the
14Board may require. Failure to submit either the payment or the
15return within the specified time may result in suspension or
16revocation of the electronic gaming license.
17 From the tax imposed under this subsection (c-5), a
18municipality other than the Village of Stickney or the City of
19Collinsville in which an electronic gaming facility is located,
20or if the electronic gaming facility is not located within a
21municipality, then the county in which the electronic gaming
22facility is located, except as otherwise provided in this
23Section, shall receive, subject to appropriation, $1 for each
24person who enters the electronic gaming facility. For each
25admission to the electronic gaming facility in excess of
261,500,000 in a year, from the tax imposed under this subsection

HB4002- 424 -LRB100 11337 MJP 21715 b
1(c-5), the county in which the electronic gaming facility is
2located shall receive, subject to appropriation, $0.30, which
3shall be in addition to any other moneys paid to the county
4under this Section.
5 From the tax imposed under this subsection (c-5) on an
6electronic gaming facility located in the Village of Stickney,
7$1 for each person who enters the electronic gaming facility
8shall be distributed as follows, subject to appropriation:
9$0.24 to the Village of Stickney, $0.49 to the Town of Cicero,
10$0.05 to the City of Berwyn, and $0.17 to the Stickney Public
11Health District, and $0.05 to the City of Bridgeview.
12 From the tax imposed under this subsection (c-5) on an
13electronic gaming facility located in the City of Collinsville,
14$1 for each person who enters the electronic gaming facility
15shall be distributed as follows, subject to appropriation:
16$0.45 to the City of Alton, $0.45 to the City of East St.
17Louis, and $0.10 to the City of Collinsville.
18 After payments required under this subsection (c-5) have
19been made, all remaining amounts shall be deposited into the
20Education Assistance Fund.
21 (d) The Board shall administer and collect the admission
22tax imposed by this Section, to the extent practicable, in a
23manner consistent with the provisions of Sections 4, 5, 5a, 5b,
245c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
25Retailers' Occupation Tax Act and Section 3-7 of the Uniform
26Penalty and Interest Act.

HB4002- 425 -LRB100 11337 MJP 21715 b
1(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
2 (230 ILCS 10/13) (from Ch. 120, par. 2413)
3 Sec. 13. Wagering tax; rate; distribution.
4 (a) Until January 1, 1998, a tax is imposed on the adjusted
5gross receipts received from gambling games authorized under
6this Act at the rate of 20%.
7 (a-1) From January 1, 1998 until July 1, 2002, a privilege
8tax is imposed on persons engaged in the business of conducting
9riverboat gambling operations, based on the adjusted gross
10receipts received by a licensed owner from gambling games
11authorized under this Act at the following rates:
12 15% of annual adjusted gross receipts up to and
13 including $25,000,000;
14 20% of annual adjusted gross receipts in excess of
15 $25,000,000 but not exceeding $50,000,000;
16 25% of annual adjusted gross receipts in excess of
17 $50,000,000 but not exceeding $75,000,000;
18 30% of annual adjusted gross receipts in excess of
19 $75,000,000 but not exceeding $100,000,000;
20 35% of annual adjusted gross receipts in excess of
21 $100,000,000.
22 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
23is imposed on persons engaged in the business of conducting
24riverboat gambling operations, other than licensed managers
25conducting riverboat gambling operations on behalf of the

HB4002- 426 -LRB100 11337 MJP 21715 b
1State, based on the adjusted gross receipts received by a
2licensed owner from gambling games authorized under this Act at
3the following rates:
4 15% of annual adjusted gross receipts up to and
5 including $25,000,000;
6 22.5% of annual adjusted gross receipts in excess of
7 $25,000,000 but not exceeding $50,000,000;
8 27.5% of annual adjusted gross receipts in excess of
9 $50,000,000 but not exceeding $75,000,000;
10 32.5% of annual adjusted gross receipts in excess of
11 $75,000,000 but not exceeding $100,000,000;
12 37.5% of annual adjusted gross receipts in excess of
13 $100,000,000 but not exceeding $150,000,000;
14 45% of annual adjusted gross receipts in excess of
15 $150,000,000 but not exceeding $200,000,000;
16 50% of annual adjusted gross receipts in excess of
17 $200,000,000.
18 (a-3) Beginning July 1, 2003, a privilege tax is imposed on
19persons engaged in the business of conducting riverboat
20gambling operations, other than licensed managers conducting
21riverboat gambling operations on behalf of the State, based on
22the adjusted gross receipts received by a licensed owner from
23gambling games authorized under this Act at the following
24rates:
25 15% of annual adjusted gross receipts up to and
26 including $25,000,000;

HB4002- 427 -LRB100 11337 MJP 21715 b
1 27.5% of annual adjusted gross receipts in excess of
2 $25,000,000 but not exceeding $37,500,000;
3 32.5% of annual adjusted gross receipts in excess of
4 $37,500,000 but not exceeding $50,000,000;
5 37.5% of annual adjusted gross receipts in excess of
6 $50,000,000 but not exceeding $75,000,000;
7 45% of annual adjusted gross receipts in excess of
8 $75,000,000 but not exceeding $100,000,000;
9 50% of annual adjusted gross receipts in excess of
10 $100,000,000 but not exceeding $250,000,000;
11 70% of annual adjusted gross receipts in excess of
12 $250,000,000.
13 An amount equal to the amount of wagering taxes collected
14under this subsection (a-3) that are in addition to the amount
15of wagering taxes that would have been collected if the
16wagering tax rates under subsection (a-2) were in effect shall
17be paid into the Common School Fund.
18 The privilege tax imposed under this subsection (a-3) shall
19no longer be imposed beginning on the earlier of (i) July 1,
202005; (ii) the first date after June 20, 2003 that riverboat
21gambling operations are conducted pursuant to a dormant
22license; or (iii) the first day that riverboat gambling
23operations are conducted under the authority of an owners
24license that is in addition to the 10 owners licenses initially
25authorized under this Act. For the purposes of this subsection
26(a-3), the term "dormant license" means an owners license that

HB4002- 428 -LRB100 11337 MJP 21715 b
1is authorized by this Act under which no riverboat gambling
2operations are being conducted on June 20, 2003.
3 (a-4) Beginning on the first day on which the tax imposed
4under subsection (a-3) is no longer imposed and ending upon the
5imposition of the privilege tax under subsection (a-5) of this
6Section, a privilege tax is imposed on persons engaged in the
7business of conducting riverboat or casino gambling or
8electronic gaming operations, other than licensed managers
9conducting riverboat gambling operations on behalf of the
10State, based on the adjusted gross receipts received by a
11licensed owner from gambling games authorized under this Act at
12the following rates:
13 15% of annual adjusted gross receipts up to and
14 including $25,000,000;
15 22.5% of annual adjusted gross receipts in excess of
16 $25,000,000 but not exceeding $50,000,000;
17 27.5% of annual adjusted gross receipts in excess of
18 $50,000,000 but not exceeding $75,000,000;
19 32.5% of annual adjusted gross receipts in excess of
20 $75,000,000 but not exceeding $100,000,000;
21 37.5% of annual adjusted gross receipts in excess of
22 $100,000,000 but not exceeding $150,000,000;
23 45% of annual adjusted gross receipts in excess of
24 $150,000,000 but not exceeding $200,000,000;
25 50% of annual adjusted gross receipts in excess of
26 $200,000,000.

HB4002- 429 -LRB100 11337 MJP 21715 b
1 For the imposition of the privilege tax in this subsection
2(a-4), amounts paid pursuant to item (1) of subsection (b) of
3Section 56 of the Illinois Horse Racing Act of 1975 shall not
4be included in the determination of adjusted gross receipts.
5 (a-5) Beginning in the fiscal year following the opening of
6the casino at which gambling operations are conducted pursuant
7to the Chicago Casino Development Authority Act, but not before
8July 1, 2019, a privilege tax is imposed on persons engaged in
9the business of conducting riverboat or casino gambling or
10electronic gaming operations, other than licensed managers
11conducting riverboat gambling operations on behalf of the
12State, based on the adjusted gross receipts received by such
13licensee from the gambling games authorized under this Act and
14the Chicago Casino Development Authority Act. The privilege tax
15for all gambling games other than table games, including, but
16not limited to, slot machines, video game of chance gambling,
17and electronic gambling games shall be at the following rates:
18 10% of annual adjusted gross receipts up to and
19 including $25,000,000;
20 17.5% of annual adjusted gross receipts in excess of
21 $25,000,000 but not exceeding $50,000,000;
22 22.5% of annual adjusted gross receipts in excess of
23 $50,000,000 but not exceeding $75,000,000;
24 27.5% of annual adjusted gross receipts in excess of
25 $75,000,000 but not exceeding $100,000,000;
26 32.5% of annual adjusted gross receipts in excess of

HB4002- 430 -LRB100 11337 MJP 21715 b
1 $100,000,000 but not exceeding $150,000,000;
2 35% of annual adjusted gross receipts in excess of
3 $150,000,000 but not exceeding $200,000,000;
4 40% of annual adjusted gross receipts in excess of
5 $200,000,000 but not exceeding $300,000,000;
6 30% of annual adjusted gross receipts in excess of
7 $300,000,000 but not exceeding $350,000,000;
8 20% of annual adjusted gross receipts in excess of
9 $350,000,000, but not exceeding $800,000,000;
10 50% of annual adjusted gross receipts in excess of
11 $800,000,000.
12 The privilege tax for table games shall be at the following
13rates:
14 10% of annual adjusted gross receipts up to and
15 including $25,000,000;
16 17.5% of annual adjusted gross receipts in excess of
17 $25,000,000 but not exceeding $50,000,000;
18 22.5% of annual adjusted gross receipts in excess of
19 $50,000,000 but not exceeding $70,000,000;
20 16% of annual adjusted gross receipts in excess of
21 $70,000,000.
22 For the imposition of the privilege tax in this subsection
23(a-5), 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-6) From the effective date of this amendatory Act of the

HB4002- 431 -LRB100 11337 MJP 21715 b
1100th General Assembly until June 30, 2021, an owners licensee
2that conducted gambling operations prior to January 1, 2011
3shall receive a dollar-for-dollar credit against the tax
4imposed under this Section for any renovation or construction
5costs paid by the owners licensee, but in no event shall the
6credit exceed $2,000,000.
7 Additionally, from the effective date of this amendatory
8Act of the 100th General Assembly until December 31, 2020, an
9owners licensee that (i) is located within 15 miles of the
10Missouri border, and (ii) has at least 3 riverboats, casinos,
11or their equivalent within a 45-mile radius, may be authorized
12to relocate to a new location with the approval of both the
13unit of local government designated as the home dock and the
14Board, so long as the new location is within the same unit of
15local government and no more than 3 miles away from its
16original location. Such owners licensee shall receive a credit
17against the tax imposed under this Section equal to 8% of the
18total project costs, as approved by the Board, for any
19renovation or construction costs paid by the owners licensee
20for the construction of the new facility, provided that the new
21facility is operational by July 1, 2020. In determining whether
22or not to approve a relocation, the Board must consider the
23extent to which the relocation will diminish the gaming
24revenues received by other Illinois gaming facilities.
25 (a-8) Riverboat gambling operations conducted by a
26licensed manager on behalf of the State are not subject to the

HB4002- 432 -LRB100 11337 MJP 21715 b
1tax imposed under this Section.
2 (a-9) Beginning on January 1, 2018, the calculation of
3gross receipts or adjusted gross receipts, for the purposes of
4this Section, for a riverboat, casino, or electronic gaming
5facility shall not include the dollar amount of non-cashable
6vouchers, coupons, and electronic promotions redeemed by
7wagerers upon the riverboat, in the casino, or in the
8electronic gaming facility up to and including an amount not to
9exceed 30% of a riverboat casino or electronic gaming
10facility's adjusted gross receipts.
11 The Illinois Gaming Board shall submit to the General
12Assembly a comprehensive report no later than March 31, 2021
13detailing, at a minimum, the effect of removing non-cashable
14vouchers, coupons, and electronic promotions from this
15calculation on net gaming revenues to the State in calendar
16years 2018 through 2020, the increase or reduction in wagerers
17as a result of removing non-cashable vouchers, coupons, and
18electronic promotions from this calculation, the effect of the
19tax rates in subsection (a-5) on net gaming revenues to the
20State, and proposed modifications to the calculation.
21 (a-10) The taxes imposed by this Section shall be paid by
22the licensed owner or the electronic gaming licensee to the
23Board not later than 5:00 o'clock p.m. of the day after the day
24when the wagers were made.
25 (a-15) If the privilege tax imposed under subsection (a-3)
26is no longer imposed pursuant to item (i) of the last paragraph

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1of subsection (a-3), then by June 15 of each year, each owners
2licensee, other than an owners licensee that admitted 1,000,000
3persons or fewer in calendar year 2004, must, in addition to
4the payment of all amounts otherwise due under this Section,
5pay to the Board a reconciliation payment in the amount, if
6any, by which the licensed owner's base amount exceeds the
7amount of net privilege tax paid by the licensed owner to the
8Board in the then current State fiscal year. A licensed owner's
9net privilege tax obligation due for the balance of the State
10fiscal year shall be reduced up to the total of the amount paid
11by the licensed owner in its June 15 reconciliation payment.
12The obligation imposed by this subsection (a-15) is binding on
13any person, firm, corporation, or other entity that acquires an
14ownership interest in any such owners license. The obligation
15imposed under this subsection (a-15) terminates on the earliest
16of: (i) July 1, 2007, (ii) the first day after the effective
17date of this amendatory Act of the 94th General Assembly that
18riverboat gambling operations are conducted pursuant to a
19dormant license, (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, or (iv) the first day that a
23licensee under the Illinois Horse Racing Act of 1975 conducts
24gaming operations with slot machines or other electronic gaming
25devices. The Board must reduce the obligation imposed under
26this subsection (a-15) by an amount the Board deems reasonable

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1for any of the following reasons: (A) an act or acts of God,
2(B) an act of bioterrorism or terrorism or a bioterrorism or
3terrorism threat that was investigated by a law enforcement
4agency, or (C) a condition beyond the control of the owners
5licensee that does not result from any act or omission by the
6owners licensee or any of its agents and that poses a hazardous
7threat to the health and safety of patrons. If an owners
8licensee pays an amount in excess of its liability under this
9Section, the Board shall apply the overpayment to future
10payments required under this Section.
11 For purposes of this subsection (a-15):
12 "Act of God" means an incident caused by the operation of
13an extraordinary force that cannot be foreseen, that cannot be
14avoided by the exercise of due care, and for which no person
15can be held liable.
16 "Base amount" means the following:
17 For a riverboat in Alton, $31,000,000.
18 For a riverboat in East Peoria, $43,000,000.
19 For the Empress riverboat in Joliet, $86,000,000.
20 For a riverboat in Metropolis, $45,000,000.
21 For the Harrah's riverboat in Joliet, $114,000,000.
22 For a riverboat in Aurora, $86,000,000.
23 For a riverboat in East St. Louis, $48,500,000.
24 For a riverboat in Elgin, $198,000,000.
25 "Dormant license" has the meaning ascribed to it in
26subsection (a-3).

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1 "Net privilege tax" means all privilege taxes paid by a
2licensed owner to the Board under this Section, less all
3payments made from the State Gaming Fund pursuant to subsection
4(b) of this Section.
5 The changes made to this subsection (a-15) by Public Act
694-839 are intended to restate and clarify the intent of Public
7Act 94-673 with respect to the amount of the payments required
8to be made under this subsection by an owners licensee to the
9Board.
10 (b) Until January 1, 1998, 25% of the tax revenue deposited
11in the State Gaming Fund under this Section shall be paid,
12subject to appropriation by the General Assembly, to the unit
13of local government which is designated as the home dock of the
14riverboat. Beginning January 1, 1998, from the tax revenue from
15riverboat or casino gambling deposited in the State Gaming Fund
16under this Section, an amount equal to 5% of adjusted gross
17receipts generated by a riverboat or a casino other than a
18riverboat designated in paragraph (3) or (4) of subsection
19(e-5) of Section 7, shall be paid monthly, subject to
20appropriation by the General Assembly, to the unit of local
21government in which the casino is located or that is designated
22as the home dock of the riverboat. From the tax revenue
23deposited in the State Gaming Fund pursuant to riverboat or
24casino gambling operations conducted by a licensed manager on
25behalf of the State, an amount equal to 5% of adjusted gross
26receipts generated pursuant to those riverboat or casino

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1gambling operations shall be paid monthly, subject to
2appropriation by the General Assembly, to the unit of local
3government that is designated as the home dock of the riverboat
4upon which those riverboat gambling operations are conducted or
5in which the casino is located. From the tax revenue from
6riverboat or casino gambling deposited in the State Gaming Fund
7under this Section, an amount equal to 5% of the adjusted gross
8receipts generated by a riverboat designated in paragraph (3)
9of subsection (e-5) of Section 7 shall be divided and remitted
10monthly, subject to appropriation, as follows: 50% to Waukegan,
1125% to Park City, and 25% to North Chicago. From the tax
12revenue from riverboat or casino gambling deposited in the
13State Gaming Fund under this Section, an amount equal to 5% of
14the adjusted gross receipts generated by a riverboat designated
15in paragraph (4) of subsection (e-5) of Section 7 shall be
16remitted monthly, subject to appropriation, as follows: 70% to
17the City of Rockford, 5% to the City of Loves Park, 5% to the
18Village of Machesney, and 20% to Winnebago County. Units of
19local government may refund any portion of the payment that
20they receive pursuant to this subsection (b) to the riverboat
21or casino.
22 (b-5) Beginning on the effective date of this amendatory
23Act of the 100th General Assembly, from the tax revenue
24deposited in the State Gaming Fund under this Section, an
25amount equal to 3% of adjusted gross receipts generated by each
26electronic gaming facility located outside Madison County

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1shall be paid monthly, subject to appropriation by the General
2Assembly, to a municipality other than the Village of Stickney
3in which each electronic gaming facility is located or, if the
4electronic gaming facility is not located within a
5municipality, to the county in which the electronic gaming
6facility is located, except as otherwise provided in this
7Section. From the tax revenue deposited in the State Gaming
8Fund under this Section, an amount equal to 3% of adjusted
9gross receipts generated by an electronic gaming facility
10located in the Village of Stickney shall be paid monthly,
11subject to appropriation by the General Assembly, as follows:
1225% to the Village of Stickney, 5% to the City of Berwyn, 50%
13to the Town of Cicero, and 20% to the Stickney Public Health
14District.
15 From the tax revenue deposited in the State Gaming Fund
16under this Section, an amount equal to 5% of adjusted gross
17receipts generated by an electronic gaming facility located in
18the City of Collinsville shall be paid monthly, subject to
19appropriation by the General Assembly, as follows: 45% to the
20City of Alton, 45% to the City of East St. Louis, and 10% to the
21City of Collinsville.
22 Municipalities and counties may refund any portion of the
23payment that they receive pursuant to this subsection (b-5) to
24the electronic gaming facility.
25 (b-6) Beginning on the effective date of this amendatory
26Act of the 100th General Assembly, from the tax revenue

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1deposited in the State Gaming Fund under this Section, an
2amount equal to 2% of adjusted gross receipts generated by an
3electronic gaming facility located outside Madison County
4shall be paid monthly, subject to appropriation by the General
5Assembly, to the county in which the electronic gaming facility
6is located for the purposes of its criminal justice system or
7health care system.
8 Counties may refund any portion of the payment that they
9receive pursuant to this subsection (b-6) to the electronic
10gaming facility.
11 (c) Appropriations, as approved by the General Assembly,
12may be made from the State Gaming Fund to the Board (i) for the
13administration and enforcement of this Act, the Chicago Casino
14Development Authority Act, and the Video Gaming Act, (ii) for
15distribution to the Department of State Police and to the
16Department of Revenue for the enforcement of this Act, the
17Chicago Casino Development Authority Act, and the Video Gaming
18Act, and (iii) to the Department of Human Services for the
19administration of programs to treat problem gambling. The
20Board's annual appropriations request must separately state
21its funding needs for the regulation of electronic gaming,
22riverboat gaming, casino gaming within the City of Chicago, and
23video gaming. From the tax revenue deposited in the Gaming
24Facilities Fee Revenue Fund, the first $50,000,000 shall be
25paid to the Board, subject to appropriation, for the
26administration and enforcement of the provisions of this

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1amendatory Act of the 100th General Assembly.
2 (c-3) Appropriations, as approved by the General Assembly,
3may be made from the tax revenue deposited into the State
4Gaming Fund from electronic gaming pursuant to this Section for
5the administration and enforcement of this Act.
6 (c-4) After payments required under subsections (b),
7(b-5), (b-6), (c), and (c-3) have been made from the tax
8revenue from electronic gaming deposited into the State Gaming
9Fund under this Section, all remaining amounts from electronic
10gaming shall be deposited into the Education Assistance 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

HB4002- 440 -LRB100 11337 MJP 21715 b
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

HB4002- 441 -LRB100 11337 MJP 21715 b
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 (d) From time to time, the Board shall transfer the
8remainder of the funds generated by this Act into the Education
9Assistance Fund, created by Public Act 86-0018, of the State of
10Illinois.
11 (e) Nothing in this Act shall prohibit the unit of local
12government designated as the home dock of the riverboat from
13entering into agreements with other units of local government
14in this State or in other states to share its portion of the
15tax revenue.
16 (f) To the extent practicable, the Board shall administer
17and collect the wagering taxes imposed by this Section in a
18manner consistent with the provisions of Sections 4, 5, 5a, 5b,
195c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
20Retailers' Occupation Tax Act and Section 3-7 of the Uniform
21Penalty and Interest Act.
22(Source: P.A. 98-18, eff. 6-7-13.)
23 (230 ILCS 10/14) (from Ch. 120, par. 2414)
24 Sec. 14. Licensees - Records - Reports - Supervision.
25 (a) Licensed owners and electronic gaming licensees A

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

HB4002- 443 -LRB100 11337 MJP 21715 b
1and compliance engagements shall be conducted by certified
2public accountants selected by the Board. Each certified public
3accountant must be registered in the State of Illinois under
4the Illinois Public Accounting Act. The compensation for each
5certified public accountant shall be paid directly by the
6licensed owner, or manager, or electronic gaming licensee to
7the certified public accountant.
8(Source: P.A. 96-1392, eff. 1-1-11.)
9 (230 ILCS 10/16) (from Ch. 120, par. 2416)
10 Sec. 16. Annual Report of Board. The Board shall make an
11annual report to the Governor, for the period ending December
1231 of each year. Included in the report shall be an account of
13the Board actions, its financial position and results of
14operation under this Act and the Chicago Casino Development
15Authority Act, the practical results attained under this Act
16and the Chicago Casino Development Authority Act and any
17recommendations for legislation which the Board deems
18advisable.
19(Source: P.A. 86-1029.)
20 (230 ILCS 10/17) (from Ch. 120, par. 2417)
21 Sec. 17. Administrative Procedures. The Illinois
22Administrative Procedure Act shall apply to all administrative
23rules and procedures of the Board under this Act, the Chicago
24Casino Development Authority Act, and or the Video Gaming Act,

HB4002- 444 -LRB100 11337 MJP 21715 b
1except that: (1) subsection (b) of Section 5-10 of the Illinois
2Administrative Procedure Act does not apply to final orders,
3decisions and opinions of the Board; (2) subsection (a) of
4Section 5-10 of the Illinois Administrative Procedure Act does
5not apply to forms established by the Board for use under this
6Act, the Chicago Casino Development Authority Act, and or the
7Video Gaming Act; (3) the provisions of Section 10-45 of the
8Illinois Administrative Procedure Act regarding proposals for
9decision are excluded under this Act, the Chicago Casino
10Development Authority Act, and or the Video Gaming Act; and (4)
11the provisions of subsection (d) of Section 10-65 of the
12Illinois Administrative Procedure Act do not apply so as to
13prevent summary suspension of any license pending revocation or
14other action, which suspension shall remain in effect unless
15modified by the Board or unless the Board's decision is
16reversed on the merits upon judicial review.
17(Source: P.A. 96-34, eff. 7-13-09.)
18 (230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)
19 Sec. 17.1. Judicial Review.
20 (a) Jurisdiction and venue for the judicial review of a
21final order of the Board relating to licensed owners,
22suppliers, electronic gaming licensees, and or special event
23licenses is vested in the Appellate Court of the judicial
24district in which Sangamon County is located. A petition for
25judicial review of a final order of the Board must be filed in

HB4002- 445 -LRB100 11337 MJP 21715 b
1the Appellate Court, within 35 days from the date that a copy
2of the decision sought to be reviewed was served upon the party
3affected by the decision.
4 (b) Judicial review of all other final orders of the Board
5shall be conducted in accordance with the Administrative Review
6Law.
7(Source: P.A. 88-1.)
8 (230 ILCS 10/18) (from Ch. 120, par. 2418)
9 Sec. 18. Prohibited Activities - Penalty.
10 (a) A person is guilty of a Class A misdemeanor for doing
11any of the following:
12 (1) Conducting gambling where wagering is used or to be
13 used without a license issued by the Board.
14 (2) Conducting gambling where wagering is permitted
15 other than in the manner specified by Section 11.
16 (b) A person is guilty of a Class B misdemeanor for doing
17any of the following:
18 (1) permitting a person under 21 years to make a wager;
19 or
20 (2) violating paragraph (12) of subsection (a) of
21 Section 11 of this Act.
22 (c) A person wagering or accepting a wager at any location
23outside the riverboat, casino, or electronic gaming facility in
24violation of paragraph is subject to the penalties in
25paragraphs (1) or (2) of subsection (a) of Section 28-1 of the

HB4002- 446 -LRB100 11337 MJP 21715 b
1Criminal Code of 2012 is subject to the penalties provided in
2that Section.
3 (d) A person commits a Class 4 felony and, in addition,
4shall be barred for life from gambling operations riverboats
5under the jurisdiction of the Board, if the person does any of
6the following:
7 (1) Offers, promises, or gives anything of value or
8 benefit to a person who is connected with a riverboat or
9 casino owner or electronic gaming licensee, including, but
10 not limited to, an officer or employee of a licensed owner,
11 electronic gaming licensee, or holder of an occupational
12 license pursuant to an agreement or arrangement or with the
13 intent that the promise or thing of value or benefit will
14 influence the actions of the person to whom the offer,
15 promise, or gift was made in order to affect or attempt to
16 affect the outcome of a gambling game, or to influence
17 official action of a member of the Board.
18 (2) Solicits or knowingly accepts or receives a promise
19 of anything of value or benefit while the person is
20 connected with a riverboat, casino, or electronic gaming
21 facility, including, but not limited to, an officer or
22 employee of a licensed owner or electronic gaming licensee,
23 or the holder of an occupational license, pursuant to an
24 understanding or arrangement or with the intent that the
25 promise or thing of value or benefit will influence the
26 actions of the person to affect or attempt to affect the

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

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

HB4002- 449 -LRB100 11337 MJP 21715 b
1is based. An action to prosecute any crime occurring in a
2casino or electronic gaming facility shall be tried in the
3county in which the casino or electronic gaming facility is
4located.
5(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
6 (230 ILCS 10/18.1)
7 Sec. 18.1. Distribution of certain fines. If a fine is
8imposed on an owner licensee or an electronic gaming licensee
9for knowingly sending marketing or promotional materials to any
10person placed on the self-exclusion list, then the Board shall
11distribute an amount equal to 15% of the fine imposed to the
12unit of local government in which the casino, riverboat, or
13electronic gaming facility is located for the purpose of
14awarding grants to non-profit entities that assist gambling
15addicts.
16(Source: P.A. 96-224, eff. 8-11-09.)
17 (230 ILCS 10/19) (from Ch. 120, par. 2419)
18 Sec. 19. Forfeiture of property.
19 (a) Except as provided in subsection (b), any riverboat,
20casino, or electronic gaming facility used for the conduct of
21gambling games in violation of this Act shall be considered a
22gambling place in violation of Section 28-3 of the Criminal
23Code of 2012. Every gambling device found on a riverboat, in a
24casino, or at an electronic gaming facility operating gambling

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

HB4002- 451 -LRB100 11337 MJP 21715 b
1obtaining a license to do so, or who continues to conduct such
2games after revocation of his license, or any licensee who
3conducts or allows to be conducted any unauthorized gambling
4games on a riverboat, in a casino, or at an electronic gaming
5facility where it is authorized to conduct its riverboat
6gambling operation, in addition to other penalties provided,
7shall be subject to a civil penalty equal to the amount of
8gross receipts derived from wagering on the gambling games,
9whether unauthorized or authorized, conducted on that day as
10well as confiscation and forfeiture of all gambling game
11equipment used in the conduct of unauthorized gambling games.
12(Source: P.A. 86-1029.)
13 (230 ILCS 10/21) (from Ch. 120, par. 2421)
14 Sec. 21. Limitation on taxation of licensees. Licensees
15shall not be subjected to any excise tax, license tax, permit
16tax, privilege tax, occupation tax or excursion tax which is
17imposed exclusively upon the licensee by the State or any
18political subdivision thereof, except as provided in this Act
19or the Chicago Casino Development Authority Act.
20(Source: P.A. 86-1029.)
21 (230 ILCS 10/23) (from Ch. 120, par. 2423)
22 Sec. 23. The State Gaming Fund. On or after the effective
23date of this Act, except as provided for payments into the
24Horse Racing Equity Trust Fund under subsection (a) of Section

HB4002- 452 -LRB100 11337 MJP 21715 b
17, all of the fees and taxes collected pursuant to this Act or
2the Chicago Casino Development Authority Act shall be deposited
3into the State Gaming Fund, a special fund in the State
4Treasury, which is hereby created. The adjusted gross receipts
5of any riverboat gambling operations conducted by a licensed
6manager on behalf of the State remaining after the payment of
7the fees and expenses of the licensed manager shall be
8deposited into the State Gaming Fund. Fines and penalties
9collected pursuant to this Act or the Chicago Casino
10Development Authority Act shall be deposited into the Education
11Assistance Fund, created by Public Act 86-0018, of the State of
12Illinois.
13(Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)
14 (230 ILCS 10/24)
15 Sec. 24. Applicability of this Illinois Riverboat Gambling
16Act. The provisions of the this Illinois Riverboat Gambling
17Act, and all rules promulgated thereunder, shall apply to the
18Chicago Casino Development Authority Act and the Video Gaming
19Act, except where there is a conflict between the 2 Acts. In
20the event of a conflict between this Act and the Chicago Casino
21Development Authority Act, the terms of the Chicago Casino
22Development Authority Act shall prevail. In the event of a
23conflict between this Act and the Video Gaming Act, the terms
24of this Act shall prevail.
25(Source: P.A. 96-37, eff. 7-13-09.)

HB4002- 453 -LRB100 11337 MJP 21715 b
1 Section 90-42. The Video Gaming Act is amended by changing
2Sections 5, 25, 45, 79, and 80 as follows:
3 (230 ILCS 40/5)
4 Sec. 5. Definitions. As used in this Act:
5 "Board" means the Illinois Gaming Board.
6 "Credit" means one, 5, 10, or 25 cents either won or
7purchased by a player.
8 "Distributor" means an individual, partnership,
9corporation, or limited liability company licensed under this
10Act to buy, sell, lease, or distribute video gaming terminals
11or major components or parts of video gaming terminals to or
12from terminal operators.
13 "Electronic card" means a card purchased from a licensed
14establishment, licensed fraternal establishment, licensed
15veterans establishment, or licensed truck stop establishment
16for use in that establishment as a substitute for cash in the
17conduct of gaming on a video gaming terminal.
18 "Electronic voucher" means a voucher printed by an
19electronic video game machine that is redeemable in the
20licensed establishment for which it was issued.
21 "Terminal operator" means an individual, partnership,
22corporation, or limited liability company that is licensed
23under this Act and that owns, services, and maintains video
24gaming terminals for placement in licensed establishments,

HB4002- 454 -LRB100 11337 MJP 21715 b
1licensed truck stop establishments, licensed fraternal
2establishments, or licensed veterans establishments.
3 "Licensed technician" means an individual who is licensed
4under this Act to repair, service, and maintain video gaming
5terminals.
6 "Licensed terminal handler" means a person, including but
7not limited to an employee or independent contractor working
8for a manufacturer, distributor, supplier, technician, or
9terminal operator, who is licensed under this Act to possess or
10control a video gaming terminal or to have access to the inner
11workings of a video gaming terminal. A licensed terminal
12handler does not include an individual, partnership,
13corporation, or limited liability company defined as a
14manufacturer, distributor, supplier, technician, or terminal
15operator under this Act.
16 "Manufacturer" means an individual, partnership,
17corporation, or limited liability company that is licensed
18under this Act and that manufactures or assembles video gaming
19terminals.
20 "Supplier" means an individual, partnership, corporation,
21or limited liability company that is licensed under this Act to
22supply major components or parts to video gaming terminals to
23licensed terminal operators.
24 "Net terminal income" means money put into a video gaming
25terminal minus credits paid out to players.
26 "Video gaming terminal" means any electronic video game

HB4002- 455 -LRB100 11337 MJP 21715 b
1machine that, upon insertion of cash, electronic cards or
2vouchers, or any combination thereof, is available to play or
3simulate the play of a video game, including but not limited to
4video poker, line up, and blackjack, as authorized by the Board
5utilizing a video display and microprocessors in which the
6player may receive free games or credits that can be redeemed
7for cash. The term does not include a machine that directly
8dispenses coins, cash, or tokens or is for amusement purposes
9only.
10 "Licensed establishment" means any licensed retail
11establishment where alcoholic liquor is drawn, poured, mixed,
12or otherwise served for consumption on the premises, whether
13the establishment operates on a nonprofit or for-profit basis.
14"Licensed establishment" includes any such establishment that
15has a contractual relationship with an inter-track wagering
16location licensee licensed under the Illinois Horse Racing Act
17of 1975, provided any contractual relationship shall not
18include any transfer or offer of revenue from the operation of
19video gaming under this Act to any licensee licensed under the
20Illinois Horse Racing Act of 1975. Provided, however, that the
21licensed establishment that has such a contractual
22relationship with an inter-track wagering location licensee
23may not, itself, be (i) an inter-track wagering location
24licensee, (ii) the corporate parent or subsidiary of any
25licensee licensed under the Illinois Horse Racing Act of 1975,
26or (iii) the corporate subsidiary of a corporation that is also

HB4002- 456 -LRB100 11337 MJP 21715 b
1the corporate parent or subsidiary of any licensee licensed
2under the Illinois Horse Racing Act of 1975. "Licensed
3establishment" does not include a facility operated by an
4organization licensee, an inter-track wagering licensee, or an
5inter-track wagering location licensee licensed under the
6Illinois Horse Racing Act of 1975 or a riverboat licensed under
7the Illinois Riverboat Gambling Act, except as provided in this
8paragraph. The changes made to this definition by Public Act
998-587 are declarative of existing law.
10 "Licensed fraternal establishment" means the location
11where a qualified fraternal organization that derives its
12charter from a national fraternal organization regularly
13meets.
14 "Licensed veterans establishment" means the location where
15a qualified veterans organization that derives its charter from
16a national veterans organization regularly meets.
17 "Licensed truck stop establishment" means a facility (i)
18that is at least a 3-acre facility with a convenience store,
19(ii) with separate diesel islands for fueling commercial motor
20vehicles, (iii) that sells at retail more than 10,000 gallons
21of diesel or biodiesel fuel per month, and (iv) with parking
22spaces for commercial motor vehicles. "Commercial motor
23vehicles" has the same meaning as defined in Section 18b-101 of
24the Illinois Vehicle Code. The requirement of item (iii) of
25this paragraph may be met by showing that estimated future
26sales or past sales average at least 10,000 gallons per month.

HB4002- 457 -LRB100 11337 MJP 21715 b
1(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
298-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
37-16-14.)
4 (230 ILCS 40/25)
5 Sec. 25. Restriction of licensees.
6 (a) Manufacturer. A person may not be licensed as a
7manufacturer of a video gaming terminal in Illinois unless the
8person has a valid manufacturer's license issued under this
9Act. A manufacturer may only sell video gaming terminals for
10use in Illinois to persons having a valid distributor's
11license.
12 (b) Distributor. A person may not sell, distribute, or
13lease or market a video gaming terminal in Illinois unless the
14person has a valid distributor's license issued under this Act.
15A distributor may only sell video gaming terminals for use in
16Illinois to persons having a valid distributor's or terminal
17operator's license.
18 (c) Terminal operator. A person may not own, maintain, or
19place a video gaming terminal unless he has a valid terminal
20operator's license issued under this Act. A terminal operator
21may only place video gaming terminals for use in Illinois in
22licensed establishments, licensed truck stop establishments,
23licensed fraternal establishments, and licensed veterans
24establishments. No terminal operator may give anything of
25value, including but not limited to a loan or financing

HB4002- 458 -LRB100 11337 MJP 21715 b
1arrangement, to a licensed establishment, licensed truck stop
2establishment, licensed fraternal establishment, or licensed
3veterans establishment as any incentive or inducement to locate
4video terminals in that establishment. Of the after-tax profits
5from a video gaming terminal, 50% shall be paid to the terminal
6operator and 50% shall be paid to the licensed establishment,
7licensed truck stop establishment, licensed fraternal
8establishment, or licensed veterans establishment,
9notwithstanding any agreement to the contrary. A video terminal
10operator that violates one or more requirements of this
11subsection is guilty of a Class 4 felony and is subject to
12termination of his or her license by the Board.
13 (d) Licensed technician. A person may not service,
14maintain, or repair a video gaming terminal in this State
15unless he or she (1) has a valid technician's license issued
16under this Act, (2) is a terminal operator, or (3) is employed
17by a terminal operator, distributor, or manufacturer.
18 (d-5) Licensed terminal handler. No person, including, but
19not limited to, an employee or independent contractor working
20for a manufacturer, distributor, supplier, technician, or
21terminal operator licensed pursuant to this Act, shall have
22possession or control of a video gaming terminal, or access to
23the inner workings of a video gaming terminal, unless that
24person possesses a valid terminal handler's license issued
25under this Act.
26 (e) Licensed establishment. No video gaming terminal may be

HB4002- 459 -LRB100 11337 MJP 21715 b
1placed in any licensed establishment, licensed veterans
2establishment, licensed truck stop establishment, or licensed
3fraternal establishment unless the owner or agent of the owner
4of the licensed establishment, licensed veterans
5establishment, licensed truck stop establishment, or licensed
6fraternal establishment has entered into a written use
7agreement with the terminal operator for placement of the
8terminals. A copy of the use agreement shall be on file in the
9terminal operator's place of business and available for
10inspection by individuals authorized by the Board. A licensed
11establishment, licensed truck stop establishment, licensed
12veterans establishment, or licensed fraternal establishment
13may operate up to 5 video gaming terminals on its premises at
14any time.
15 (f) (Blank).
16 (g) Financial interest restrictions. As used in this Act,
17"substantial interest" in a partnership, a corporation, an
18organization, an association, a business, or a limited
19liability company means:
20 (A) When, with respect to a sole proprietorship, an
21 individual or his or her spouse owns, operates, manages, or
22 conducts, directly or indirectly, the organization,
23 association, or business, or any part thereof; or
24 (B) When, with respect to a partnership, the individual
25 or his or her spouse shares in any of the profits, or
26 potential profits, of the partnership activities; or

HB4002- 460 -LRB100 11337 MJP 21715 b
1 (C) When, with respect to a corporation, an individual
2 or his or her spouse is an officer or director, or the
3 individual or his or her spouse is a holder, directly or
4 beneficially, of 5% or more of any class of stock of the
5 corporation; or
6 (D) When, with respect to an organization not covered
7 in (A), (B) or (C) above, an individual or his or her
8 spouse is an officer or manages the business affairs, or
9 the individual or his or her spouse is the owner of or
10 otherwise controls 10% or more of the assets of the
11 organization; or
12 (E) When an individual or his or her spouse furnishes
13 5% or more of the capital, whether in cash, goods, or
14 services, for the operation of any business, association,
15 or organization during any calendar year; or
16 (F) When, with respect to a limited liability company,
17 an individual or his or her spouse is a member, or the
18 individual or his or her spouse is a holder, directly or
19 beneficially, of 5% or more of the membership interest of
20 the limited liability company.
21 For purposes of this subsection (g), "individual" includes
22all individuals or their spouses whose combined interest would
23qualify as a substantial interest under this subsection (g) and
24whose activities with respect to an organization, association,
25or business are so closely aligned or coordinated as to
26constitute the activities of a single entity.

HB4002- 461 -LRB100 11337 MJP 21715 b
1 (h) Location restriction. A licensed establishment,
2licensed truck stop establishment, licensed fraternal
3establishment, or licensed veterans establishment that is (i)
4located within 1,000 feet of a facility operated by an
5organization licensee licensed under the Illinois Horse Racing
6Act of 1975 or the home dock of a riverboat licensed under the
7Illinois Riverboat Gambling Act or (ii) located within 100 feet
8of a school or a place of worship under the Religious
9Corporation Act, is ineligible to operate a video gaming
10terminal. The location restrictions in this subsection (h) do
11not apply if (A) a facility operated by an organization
12licensee, a school, or a place of worship moves to or is
13established within the restricted area after a licensed
14establishment, licensed truck stop establishment, licensed
15fraternal establishment, or licensed veterans establishment
16becomes licensed under this Act or (B) a school or place of
17worship moves to or is established within the restricted area
18after a licensed establishment, licensed truck stop
19establishment, licensed fraternal establishment, or licensed
20veterans establishment obtains its original liquor license.
21For the purpose of this subsection, "school" means an
22elementary or secondary public school, or an elementary or
23secondary private school registered with or recognized by the
24State Board of Education.
25 Notwithstanding the provisions of this subsection (h), the
26Board may waive the requirement that a licensed establishment,

HB4002- 462 -LRB100 11337 MJP 21715 b
1licensed truck stop establishment, licensed fraternal
2establishment, or licensed veterans establishment not be
3located within 1,000 feet from a facility operated by an
4organization licensee licensed under the Illinois Horse Racing
5Act of 1975 or the home dock of a riverboat licensed under the
6Illinois Riverboat Gambling Act. The Board shall not grant such
7waiver if there is any common ownership or control, shared
8business activity, or contractual arrangement of any type
9between the establishment and the organization licensee or
10owners licensee of a riverboat. The Board shall adopt rules to
11implement the provisions of this paragraph.
12 (i) Undue economic concentration. In addition to
13considering all other requirements under this Act, in deciding
14whether to approve the operation of video gaming terminals by a
15terminal operator in a location, the Board shall consider the
16impact of any economic concentration of such operation of video
17gaming terminals. The Board shall not allow a terminal operator
18to operate video gaming terminals if the Board determines such
19operation will result in undue economic concentration. For
20purposes of this Section, "undue economic concentration" means
21that a terminal operator would have such actual or potential
22influence over video gaming terminals in Illinois as to:
23 (1) substantially impede or suppress competition among
24 terminal operators;
25 (2) adversely impact the economic stability of the
26 video gaming industry in Illinois; or

HB4002- 463 -LRB100 11337 MJP 21715 b
1 (3) negatively impact the purposes of the Video Gaming
2 Act.
3 The Board shall adopt rules concerning undue economic
4concentration with respect to the operation of video gaming
5terminals in Illinois. The rules shall include, but not be
6limited to, (i) limitations on the number of video gaming
7terminals operated by any terminal operator within a defined
8geographic radius and (ii) guidelines on the discontinuation of
9operation of any such video gaming terminals the Board
10determines will cause undue economic concentration.
11 (j) The provisions of the Illinois Antitrust Act are fully
12and equally applicable to the activities of any licensee under
13this Act.
14(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
15eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
16 (230 ILCS 40/45)
17 Sec. 45. Issuance of license.
18 (a) The burden is upon each applicant to demonstrate his
19suitability for licensure. Each video gaming terminal
20manufacturer, distributor, supplier, operator, handler,
21licensed establishment, licensed truck stop establishment,
22licensed fraternal establishment, and licensed veterans
23establishment shall be licensed by the Board. The Board may
24issue or deny a license under this Act to any person pursuant
25to the same criteria set forth in Section 9 of the Illinois

HB4002- 464 -LRB100 11337 MJP 21715 b
1Riverboat Gambling Act.
2 (a-5) The Board shall not grant a license to a person who
3has facilitated, enabled, or participated in the use of
4coin-operated devices for gambling purposes or who is under the
5significant influence or control of such a person. For the
6purposes of this Act, "facilitated, enabled, or participated in
7the use of coin-operated amusement devices for gambling
8purposes" means that the person has been convicted of any
9violation of Article 28 of the Criminal Code of 1961 or the
10Criminal Code of 2012. If there is pending legal action against
11a person for any such violation, then the Board shall delay the
12licensure of that person until the legal action is resolved.
13 (b) 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 submit to a background
18investigation conducted by the Board with the assistance of the
19State Police or other law enforcement. To the extent that the
20corporate structure of the applicant allows, the background
21investigation shall include any or all of the following as the
22Board deems appropriate or as provided by rule for each
23category of licensure: (i) each beneficiary of a trust, (ii)
24each partner of a partnership, (iii) each member of a limited
25liability company, (iv) each director and officer of a publicly
26or non-publicly held corporation, (v) each stockholder of a

HB4002- 465 -LRB100 11337 MJP 21715 b
1non-publicly held corporation, (vi) each stockholder of 5% or
2more of a publicly held corporation, or (vii) each stockholder
3of 5% or more in a parent or subsidiary corporation.
4 (c) Each person seeking and possessing a license as a video
5gaming terminal manufacturer, distributor, supplier, operator,
6handler, licensed establishment, licensed truck stop
7establishment, licensed fraternal establishment, or licensed
8veterans establishment shall disclose the identity of every
9person, association, trust, corporation, or limited liability
10company having a greater than 1% direct or indirect pecuniary
11interest in the video gaming terminal operation for which the
12license is sought. If the disclosed entity is a trust, the
13application shall disclose the names and addresses of the
14beneficiaries; if a corporation, the names and addresses of all
15stockholders and directors; if a limited liability company, the
16names and addresses of all members; or if a partnership, the
17names and addresses of all partners, both general and limited.
18 (d) No person may be licensed as a video gaming terminal
19manufacturer, distributor, supplier, operator, handler,
20licensed establishment, licensed truck stop establishment,
21licensed fraternal establishment, or licensed veterans
22establishment if that person has been found by the Board to:
23 (1) have a background, including a criminal record,
24 reputation, habits, social or business associations, or
25 prior activities that pose a threat to the public interests
26 of the State or to the security and integrity of video

HB4002- 466 -LRB100 11337 MJP 21715 b
1 gaming;
2 (2) create or enhance the dangers of unsuitable,
3 unfair, or illegal practices, methods, and activities in
4 the conduct of video gaming; or
5 (3) present questionable business practices and
6 financial arrangements incidental to the conduct of video
7 gaming activities.
8 (e) Any applicant for any license under this Act has the
9burden of proving his or her qualifications to the satisfaction
10of the Board. The Board may adopt rules to establish additional
11qualifications and requirements to preserve the integrity and
12security of video gaming in this State.
13 (f) A non-refundable application fee shall be paid at the
14time an application for a license is filed with the Board in
15the following amounts:
16 (1) Manufacturer..........................$5,000
17 (2) Distributor...........................$5,000
18 (3) Terminal operator.....................$5,000
19 (4) Supplier..............................$2,500
20 (5) Technician..............................$100
21 (6) Terminal Handler..............................$50
22 (g) The Board shall establish an annual fee for each
23license not to exceed the following:
24 (1) Manufacturer.........................$10,000
25 (2) Distributor..........................$10,000
26 (3) Terminal operator.....................$5,000

HB4002- 467 -LRB100 11337 MJP 21715 b
1 (4) Supplier..............................$2,000
2 (5) Technician..............................$100
3 (6) Licensed establishment, licensed truck stop
4 establishment, licensed fraternal establishment,
5 or licensed veterans establishment..............$100
6 (7) Video gaming terminal...................$100
7 (8) Terminal Handler..............................$50
8 (h) A terminal operator and a licensed establishment,
9licensed truck stop establishment, licensed fraternal
10establishment, or licensed veterans establishment shall
11equally split the fees specified in item (7) of subsection (g).
12(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
1398-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
14 (230 ILCS 40/79)
15 Sec. 79. Investigators. Investigators appointed by the
16Board pursuant to the powers conferred upon the Board by
17paragraph (20.6) of subsection (c) of Section 5 of the Illinois
18Riverboat Gambling Act and Section 80 of this Act shall have
19authority to conduct investigations, searches, seizures,
20arrests, and other duties imposed under this Act and the
21Illinois Riverboat Gambling Act, as deemed necessary by the
22Board. These investigators have and may exercise all of the
23rights and powers of peace officers, provided that these powers
24shall be (1) limited to offenses or violations occurring or
25committed in connection with conduct subject to this Act,

HB4002- 468 -LRB100 11337 MJP 21715 b
1including, but not limited to, the manufacture, distribution,
2supply, operation, placement, service, maintenance, or play of
3video gaming terminals and the distribution of profits and
4collection of revenues resulting from such play, and (2)
5exercised, to the fullest extent practicable, in cooperation
6with the local police department of the applicable municipality
7or, if these powers are exercised outside the boundaries of an
8incorporated municipality or within a municipality that does
9not have its own police department, in cooperation with the
10police department whose jurisdiction encompasses the
11applicable locality.
12(Source: P.A. 97-809, eff. 7-13-12.)
13 (230 ILCS 40/80)
14 Sec. 80. Applicability of Illinois Riverboat Gambling Act.
15The provisions of the Illinois Riverboat Gambling Act, and all
16rules promulgated thereunder, shall apply to the Video Gaming
17Act, except where there is a conflict between the 2 Acts. In
18the event of a conflict between the 2 Acts, the provisions of
19the Illinois Gambling Act shall prevail. All provisions of the
20Uniform Penalty and Interest Act shall apply, as far as
21practicable, to the subject matter of this Act to the same
22extent as if such provisions were included herein.
23(Source: P.A. 96-37, eff. 7-13-09.)
24 Section 90-45. The Liquor Control Act of 1934 is amended by

HB4002- 469 -LRB100 11337 MJP 21715 b
1changing Sections 5-1 and 6-30 as follows:
2 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
3 Sec. 5-1. Licenses issued by the Illinois Liquor Control
4Commission shall be of the following classes:
5 (a) Manufacturer's license - Class 1. Distiller, Class 2.
6Rectifier, Class 3. Brewer, Class 4. First Class Wine
7Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
8First Class Winemaker, Class 7. Second Class Winemaker, Class
98. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1010. Class 1 Brewer, Class 11. Class 2 Brewer,
11 (b) Distributor's license,
12 (c) Importing Distributor's license,
13 (d) Retailer's license,
14 (e) Special Event Retailer's license (not-for-profit),
15 (f) Railroad license,
16 (g) Boat license,
17 (h) Non-Beverage User's license,
18 (i) Wine-maker's premises license,
19 (j) Airplane license,
20 (k) Foreign importer's license,
21 (l) Broker's license,
22 (m) Non-resident dealer's license,
23 (n) Brew Pub license,
24 (o) Auction liquor license,
25 (p) Caterer retailer license,

HB4002- 470 -LRB100 11337 MJP 21715 b
1 (q) Special use permit license,
2 (r) Winery shipper's license,
3 (s) Craft distiller tasting permit.
4 No person, firm, partnership, corporation, or other legal
5business entity that is engaged in the manufacturing of wine
6may concurrently obtain and hold a wine-maker's license and a
7wine manufacturer's license.
8 (a) A manufacturer's license shall allow the manufacture,
9importation in bulk, storage, distribution and sale of
10alcoholic liquor to persons without the State, as may be
11permitted by law and to licensees in this State as follows:
12 Class 1. A Distiller may make sales and deliveries of
13alcoholic liquor to distillers, rectifiers, importing
14distributors, distributors and non-beverage users and to no
15other licensees.
16 Class 2. A Rectifier, who is not a distiller, as defined
17herein, may make sales and deliveries of alcoholic liquor to
18rectifiers, importing distributors, distributors, retailers
19and non-beverage users and to no other licensees.
20 Class 3. A Brewer may make sales and deliveries of beer to
21importing distributors and distributors and may make sales as
22authorized under subsection (e) of Section 6-4 of this Act.
23 Class 4. A first class wine-manufacturer may make sales and
24deliveries of up to 50,000 gallons of wine to manufacturers,
25importing distributors and distributors, and to no other
26licensees.

HB4002- 471 -LRB100 11337 MJP 21715 b
1 Class 5. A second class Wine manufacturer may make sales
2and deliveries of more than 50,000 gallons of wine to
3manufacturers, importing distributors and distributors and to
4no other licensees.
5 Class 6. A first-class wine-maker's license shall allow the
6manufacture of up to 50,000 gallons of wine per year, and the
7storage and sale of such wine to distributors in the State and
8to persons without the State, as may be permitted by law. A
9person who, prior to June 1, 2008 (the effective date of Public
10Act 95-634), is a holder of a first-class wine-maker's license
11and annually produces more than 25,000 gallons of its own wine
12and who distributes its wine to licensed retailers shall cease
13this practice on or before July 1, 2008 in compliance with
14Public Act 95-634.
15 Class 7. A second-class wine-maker's license shall allow
16the manufacture of between 50,000 and 150,000 gallons of wine
17per year, and the storage and sale of such wine to distributors
18in this State and to persons without the State, as may be
19permitted by law. A person who, prior to June 1, 2008 (the
20effective date of Public Act 95-634), is a holder of a
21second-class wine-maker's license and annually produces more
22than 25,000 gallons of its own wine and who distributes its
23wine to licensed retailers shall cease this practice on or
24before July 1, 2008 in compliance with Public Act 95-634.
25 Class 8. A limited wine-manufacturer may make sales and
26deliveries not to exceed 40,000 gallons of wine per year to

HB4002- 472 -LRB100 11337 MJP 21715 b
1distributors, and to non-licensees in accordance with the
2provisions of this Act.
3 Class 9. A craft distiller license shall allow the
4manufacture of up to 100,000 March 1, 2013 (Public Act 97-1166)
5gallons of spirits by distillation per year and the storage of
6such spirits. If a craft distiller licensee, including a craft
7distiller licensee who holds more than one craft distiller
8license, is not affiliated with any other manufacturer of
9spirits, then the craft distiller licensee may sell such
10spirits to distributors in this State and up to 2,500 gallons
11of such spirits to non-licensees to the extent permitted by any
12exemption approved by the Commission pursuant to Section 6-4 of
13this Act. A craft distiller license holder may store such
14spirits at a non-contiguous licensed location, but at no time
15shall a craft distiller license holder directly or indirectly
16produce in the aggregate more than 100,000 gallons of spirits
17per year.
18 A craft distiller licensee may hold more than one craft
19distiller's license. However, a craft distiller that holds more
20than one craft distiller license shall not manufacture, in the
21aggregate, more than 100,000 gallons of spirits by distillation
22per year and shall not sell, in the aggregate, more than 2,500
23gallons of such spirits to non-licensees in accordance with an
24exemption approved by the State Commission pursuant to Section
256-4 of this Act.
26 Any craft distiller licensed under this Act who on July 28,

HB4002- 473 -LRB100 11337 MJP 21715 b
12010 (the effective date of Public Act 96-1367) was licensed as
2a distiller and manufactured no more spirits than permitted by
3this Section shall not be required to pay the initial licensing
4fee.
5 Class 10. A class 1 brewer license, which may only be
6issued to a licensed brewer or licensed non-resident dealer,
7shall allow the manufacture of up to 930,000 gallons of beer
8per year provided that the class 1 brewer licensee does not
9manufacture more than a combined 930,000 gallons of beer per
10year and is not a member of or affiliated with, directly or
11indirectly, a manufacturer that produces more than 930,000
12gallons of beer per year or any other alcoholic liquor. A class
131 brewer licensee may make sales and deliveries to importing
14distributors and distributors and to retail licensees in
15accordance with the conditions set forth in paragraph (18) of
16subsection (a) of Section 3-12 of this Act.
17 Class 11. A class 2 brewer license, which may only be
18issued to a licensed brewer or licensed non-resident dealer,
19shall allow the manufacture of up to 3,720,000 gallons of beer
20per year provided that the class 2 brewer licensee does not
21manufacture more than a combined 3,720,000 gallons of beer per
22year and is not a member of or affiliated with, directly or
23indirectly, a manufacturer that produces more than 3,720,000
24gallons of beer per year or any other alcoholic liquor. A class
252 brewer licensee may make sales and deliveries to importing
26distributors and distributors, but shall not make sales or

HB4002- 474 -LRB100 11337 MJP 21715 b
1deliveries to any other licensee. If the State Commission
2provides prior approval, a class 2 brewer licensee may annually
3transfer up to 3,720,000 gallons of beer manufactured by that
4class 2 brewer licensee to the premises of a licensed class 2
5brewer wholly owned and operated by the same licensee.
6 (a-1) A manufacturer which is licensed in this State to
7make sales or deliveries of alcoholic liquor to licensed
8distributors or importing distributors and which enlists
9agents, representatives, or individuals acting on its behalf
10who contact licensed retailers on a regular and continual basis
11in this State must register those agents, representatives, or
12persons acting on its behalf with the State Commission.
13 Registration of agents, representatives, or persons acting
14on behalf of a manufacturer is fulfilled by submitting a form
15to the Commission. The form shall be developed by the
16Commission and shall include the name and address of the
17applicant, the name and address of the manufacturer he or she
18represents, the territory or areas assigned to sell to or
19discuss pricing terms of alcoholic liquor, and any other
20questions deemed appropriate and necessary. All statements in
21the forms required to be made by law or by rule shall be deemed
22material, and any person who knowingly misstates any material
23fact under oath in an application is guilty of a Class B
24misdemeanor. Fraud, misrepresentation, false statements,
25misleading statements, evasions, or suppression of material
26facts in the securing of a registration are grounds for

HB4002- 475 -LRB100 11337 MJP 21715 b
1suspension or revocation of the registration. The State
2Commission shall post a list of registered agents on the
3Commission's website.
4 (b) A distributor's license shall allow the wholesale
5purchase and storage of alcoholic liquors and sale of alcoholic
6liquors to licensees in this State and to persons without the
7State, as may be permitted by law. No person licensed as a
8distributor shall be granted a non-resident dealer's license.
9 (c) An importing distributor's license may be issued to and
10held by those only who are duly licensed distributors, upon the
11filing of an application by a duly licensed distributor, with
12the Commission and the Commission shall, without the payment of
13any fee, immediately issue such importing distributor's
14license to the applicant, which shall allow the importation of
15alcoholic liquor by the licensee into this State from any point
16in the United States outside this State, and the purchase of
17alcoholic liquor in barrels, casks or other bulk containers and
18the bottling of such alcoholic liquors before resale thereof,
19but all bottles or containers so filled shall be sealed,
20labeled, stamped and otherwise made to comply with all
21provisions, rules and regulations governing manufacturers in
22the preparation and bottling of alcoholic liquors. The
23importing distributor's license shall permit such licensee to
24purchase alcoholic liquor from Illinois licensed non-resident
25dealers and foreign importers only. No person licensed as an
26importing distributor shall be granted a non-resident dealer's

HB4002- 476 -LRB100 11337 MJP 21715 b
1license.
2 (d) A retailer's license shall allow the licensee to sell
3and offer for sale at retail, only in the premises specified in
4the license, alcoholic liquor for use or consumption, but not
5for resale in any form. Nothing in Public Act 95-634 shall
6deny, limit, remove, or restrict the ability of a holder of a
7retailer's license to transfer, deliver, or ship alcoholic
8liquor to the purchaser for use or consumption subject to any
9applicable local law or ordinance. Any retail license issued to
10a manufacturer shall only permit the manufacturer to sell beer
11at retail on the premises actually occupied by the
12manufacturer. For the purpose of further describing the type of
13business conducted at a retail licensed premises, a retailer's
14licensee may be designated by the State Commission as (i) an on
15premise consumption retailer, (ii) an off premise sale
16retailer, or (iii) a combined on premise consumption and off
17premise sale retailer.
18 Notwithstanding any other provision of this subsection
19(d), a retail licensee may sell alcoholic liquors to a special
20event retailer licensee for resale to the extent permitted
21under subsection (e).
22 (e) A special event retailer's license (not-for-profit)
23shall permit the licensee to purchase alcoholic liquors from an
24Illinois licensed distributor (unless the licensee purchases
25less than $500 of alcoholic liquors for the special event, in
26which case the licensee may purchase the alcoholic liquors from

HB4002- 477 -LRB100 11337 MJP 21715 b
1a licensed retailer) and shall allow the licensee to sell and
2offer for sale, at retail, alcoholic liquors for use or
3consumption, but not for resale in any form and only at the
4location and on the specific dates designated for the special
5event in the license. An applicant for a special event retailer
6license must (i) furnish with the application: (A) a resale
7number issued under Section 2c of the Retailers' Occupation Tax
8Act or evidence that the applicant is registered under Section
92a of the Retailers' Occupation Tax Act, (B) a current, valid
10exemption identification number issued under Section 1g of the
11Retailers' Occupation Tax Act, and a certification to the
12Commission that the purchase of alcoholic liquors will be a
13tax-exempt purchase, or (C) a statement that the applicant is
14not registered under Section 2a of the Retailers' Occupation
15Tax Act, does not hold a resale number under Section 2c of the
16Retailers' Occupation Tax Act, and does not hold an exemption
17number under Section 1g of the Retailers' Occupation Tax Act,
18in which event the Commission shall set forth on the special
19event retailer's license a statement to that effect; (ii)
20submit with the application proof satisfactory to the State
21Commission that the applicant will provide dram shop liability
22insurance in the maximum limits; and (iii) show proof
23satisfactory to the State Commission that the applicant has
24obtained local authority approval.
25 (f) A railroad license shall permit the licensee to import
26alcoholic liquors into this State from any point in the United

HB4002- 478 -LRB100 11337 MJP 21715 b
1States outside this State and to store such alcoholic liquors
2in this State; to make wholesale purchases of alcoholic liquors
3directly from manufacturers, foreign importers, distributors
4and importing distributors from within or outside this State;
5and to store such alcoholic liquors in this State; provided
6that the above powers may be exercised only in connection with
7the importation, purchase or storage of alcoholic liquors to be
8sold or dispensed on a club, buffet, lounge or dining car
9operated on an electric, gas or steam railway in this State;
10and provided further, that railroad licensees exercising the
11above powers shall be subject to all provisions of Article VIII
12of this Act as applied to importing distributors. A railroad
13license shall also permit the licensee to sell or dispense
14alcoholic liquors on any club, buffet, lounge or dining car
15operated on an electric, gas or steam railway regularly
16operated by a common carrier in this State, but shall not
17permit the sale for resale of any alcoholic liquors to any
18licensee within this State. A license shall be obtained for
19each car in which such sales are made.
20 (g) A boat license shall allow the sale of alcoholic liquor
21in individual drinks, on any passenger boat regularly operated
22as a common carrier on navigable waters in this State or on any
23riverboat operated under the Illinois Riverboat Gambling Act,
24which boat or riverboat maintains a public dining room or
25restaurant thereon.
26 (h) A non-beverage user's license shall allow the licensee

HB4002- 479 -LRB100 11337 MJP 21715 b
1to purchase alcoholic liquor from a licensed manufacturer or
2importing distributor, without the imposition of any tax upon
3the business of such licensed manufacturer or importing
4distributor as to such alcoholic liquor to be used by such
5licensee solely for the non-beverage purposes set forth in
6subsection (a) of Section 8-1 of this Act, and such licenses
7shall be divided and classified and shall permit the purchase,
8possession and use of limited and stated quantities of
9alcoholic liquor as follows:
10Class 1, not to exceed ......................... 500 gallons
11Class 2, not to exceed ....................... 1,000 gallons
12Class 3, not to exceed ....................... 5,000 gallons
13Class 4, not to exceed ...................... 10,000 gallons
14Class 5, not to exceed ....................... 50,000 gallons
15 (i) A wine-maker's premises license shall allow a licensee
16that concurrently holds a first-class wine-maker's license to
17sell and offer for sale at retail in the premises specified in
18such license not more than 50,000 gallons of the first-class
19wine-maker's wine that is made at the first-class wine-maker's
20licensed premises per year for use or consumption, but not for
21resale in any form. A wine-maker's premises license shall allow
22a licensee who concurrently holds a second-class wine-maker's
23license to sell and offer for sale at retail in the premises
24specified in such license up to 100,000 gallons of the
25second-class wine-maker's wine that is made at the second-class
26wine-maker's licensed premises per year for use or consumption

HB4002- 480 -LRB100 11337 MJP 21715 b
1but not for resale in any form. A wine-maker's premises license
2shall allow a licensee that concurrently holds a first-class
3wine-maker's license or a second-class wine-maker's license to
4sell and offer for sale at retail at the premises specified in
5the wine-maker's premises license, for use or consumption but
6not for resale in any form, any beer, wine, and spirits
7purchased from a licensed distributor. Upon approval from the
8State Commission, a wine-maker's premises license shall allow
9the licensee to sell and offer for sale at (i) the wine-maker's
10licensed premises and (ii) at up to 2 additional locations for
11use and consumption and not for resale. Each location shall
12require additional licensing per location as specified in
13Section 5-3 of this Act. A wine-maker's premises licensee shall
14secure liquor liability insurance coverage in an amount at
15least equal to the maximum liability amounts set forth in
16subsection (a) of Section 6-21 of this Act.
17 (j) An airplane license shall permit the licensee to import
18alcoholic liquors into this State from any point in the United
19States outside this State and to store such alcoholic liquors
20in this State; to make wholesale purchases of alcoholic liquors
21directly from manufacturers, foreign importers, distributors
22and importing distributors from within or outside this State;
23and to store such alcoholic liquors in this State; provided
24that the above powers may be exercised only in connection with
25the importation, purchase or storage of alcoholic liquors to be
26sold or dispensed on an airplane; and provided further, that

HB4002- 481 -LRB100 11337 MJP 21715 b
1airplane licensees exercising the above powers shall be subject
2to all provisions of Article VIII of this Act as applied to
3importing distributors. An airplane licensee shall also permit
4the sale or dispensing of alcoholic liquors on any passenger
5airplane regularly operated by a common carrier in this State,
6but shall not permit the sale for resale of any alcoholic
7liquors to any licensee within this State. A single airplane
8license shall be required of an airline company if liquor
9service is provided on board aircraft in this State. The annual
10fee for such license shall be as determined in Section 5-3.
11 (k) A foreign importer's license shall permit such licensee
12to purchase alcoholic liquor from Illinois licensed
13non-resident dealers only, and to import alcoholic liquor other
14than in bulk from any point outside the United States and to
15sell such alcoholic liquor to Illinois licensed importing
16distributors and to no one else in Illinois; provided that (i)
17the foreign importer registers with the State Commission every
18brand of alcoholic liquor that it proposes to sell to Illinois
19licensees during the license period, (ii) the foreign importer
20complies with all of the provisions of Section 6-9 of this Act
21with respect to registration of such Illinois licensees as may
22be granted the right to sell such brands at wholesale, and
23(iii) the foreign importer complies with the provisions of
24Sections 6-5 and 6-6 of this Act to the same extent that these
25provisions apply to manufacturers.
26 (l) (i) A broker's license shall be required of all persons

HB4002- 482 -LRB100 11337 MJP 21715 b
1who solicit orders for, offer to sell or offer to supply
2alcoholic liquor to retailers in the State of Illinois, or who
3offer to retailers to ship or cause to be shipped or to make
4contact with distillers, rectifiers, brewers or manufacturers
5or any other party within or without the State of Illinois in
6order that alcoholic liquors be shipped to a distributor,
7importing distributor or foreign importer, whether such
8solicitation or offer is consummated within or without the
9State of Illinois.
10 No holder of a retailer's license issued by the Illinois
11Liquor Control Commission shall purchase or receive any
12alcoholic liquor, the order for which was solicited or offered
13for sale to such retailer by a broker unless the broker is the
14holder of a valid broker's license.
15 The broker shall, upon the acceptance by a retailer of the
16broker's solicitation of an order or offer to sell or supply or
17deliver or have delivered alcoholic liquors, promptly forward
18to the Illinois Liquor Control Commission a notification of
19said transaction in such form as the Commission may by
20regulations prescribe.
21 (ii) A broker's license shall be required of a person
22within this State, other than a retail licensee, who, for a fee
23or commission, promotes, solicits, or accepts orders for
24alcoholic liquor, for use or consumption and not for resale, to
25be shipped from this State and delivered to residents outside
26of this State by an express company, common carrier, or

HB4002- 483 -LRB100 11337 MJP 21715 b
1contract carrier. This Section does not apply to any person who
2promotes, solicits, or accepts orders for wine as specifically
3authorized in Section 6-29 of this Act.
4 A broker's license under this subsection (l) shall not
5entitle the holder to buy or sell any alcoholic liquors for his
6own account or to take or deliver title to such alcoholic
7liquors.
8 This subsection (l) shall not apply to distributors,
9employees of distributors, or employees of a manufacturer who
10has registered the trademark, brand or name of the alcoholic
11liquor pursuant to Section 6-9 of this Act, and who regularly
12sells such alcoholic liquor in the State of Illinois only to
13its registrants thereunder.
14 Any agent, representative, or person subject to
15registration pursuant to subsection (a-1) of this Section shall
16not be eligible to receive a broker's license.
17 (m) A non-resident dealer's license shall permit such
18licensee to ship into and warehouse alcoholic liquor into this
19State from any point outside of this State, and to sell such
20alcoholic liquor to Illinois licensed foreign importers and
21importing distributors and to no one else in this State;
22provided that (i) said non-resident dealer shall register with
23the Illinois Liquor Control Commission each and every brand of
24alcoholic liquor which it proposes to sell to Illinois
25licensees during the license period, (ii) it shall comply with
26all of the provisions of Section 6-9 hereof with respect to

HB4002- 484 -LRB100 11337 MJP 21715 b
1registration of such Illinois licensees as may be granted the
2right to sell such brands at wholesale, and (iii) the
3non-resident dealer shall comply with the provisions of
4Sections 6-5 and 6-6 of this Act to the same extent that these
5provisions apply to manufacturers. No person licensed as a
6non-resident dealer shall be granted a distributor's or
7importing distributor's license.
8 (n) A brew pub license shall allow the licensee to only (i)
9manufacture up to 155,000 gallons of beer per year only on the
10premises specified in the license, (ii) make sales of the beer
11manufactured on the premises or, with the approval of the
12Commission, beer manufactured on another brew pub licensed
13premises that is wholly owned and operated by the same licensee
14to importing distributors, distributors, and to non-licensees
15for use and consumption, (iii) store the beer upon the
16premises, (iv) sell and offer for sale at retail from the
17licensed premises for off-premises consumption no more than
18155,000 gallons per year so long as such sales are only made
19in-person, (v) sell and offer for sale at retail for use and
20consumption on the premises specified in the license any form
21of alcoholic liquor purchased from a licensed distributor or
22importing distributor, and (vi) with the prior approval of the
23Commission, annually transfer no more than 155,000 gallons of
24beer manufactured on the premises to a licensed brew pub wholly
25owned and operated by the same licensee.
26 A brew pub licensee shall not under any circumstance sell

HB4002- 485 -LRB100 11337 MJP 21715 b
1or offer for sale beer manufactured by the brew pub licensee to
2retail licensees.
3 A person who holds a class 2 brewer license may
4simultaneously hold a brew pub license if the class 2 brewer
5(i) does not, under any circumstance, sell or offer for sale
6beer manufactured by the class 2 brewer to retail licensees;
7(ii) does not hold more than 3 brew pub licenses in this State;
8(iii) does not manufacture more than a combined 3,720,000
9gallons of beer per year, including the beer manufactured at
10the brew pub; and (iv) is not a member of or affiliated with,
11directly or indirectly, a manufacturer that produces more than
123,720,000 gallons of beer per year or any other alcoholic
13liquor.
14 Notwithstanding any other provision of this Act, a licensed
15brewer, class 2 brewer, or non-resident dealer who before July
161, 2015 manufactured less than 3,720,000 gallons of beer per
17year and held a brew pub license on or before July 1, 2015 may
18(i) continue to qualify for and hold that brew pub license for
19the licensed premises and (ii) manufacture more than 3,720,000
20gallons of beer per year and continue to qualify for and hold
21that brew pub license if that brewer, class 2 brewer, or
22non-resident dealer does not simultaneously hold a class 1
23brewer license and is not a member of or affiliated with,
24directly or indirectly, a manufacturer that produces more than
253,720,000 gallons of beer per year or that produces any other
26alcoholic liquor.

HB4002- 486 -LRB100 11337 MJP 21715 b
1 (o) A caterer retailer license shall allow the holder to
2serve alcoholic liquors as an incidental part of a food service
3that serves prepared meals which excludes the serving of snacks
4as the primary meal, either on or off-site whether licensed or
5unlicensed.
6 (p) An auction liquor license shall allow the licensee to
7sell and offer for sale at auction wine and spirits for use or
8consumption, or for resale by an Illinois liquor licensee in
9accordance with provisions of this Act. An auction liquor
10license will be issued to a person and it will permit the
11auction liquor licensee to hold the auction anywhere in the
12State. An auction liquor license must be obtained for each
13auction at least 14 days in advance of the auction date.
14 (q) A special use permit license shall allow an Illinois
15licensed retailer to transfer a portion of its alcoholic liquor
16inventory from its retail licensed premises to the premises
17specified in the license hereby created, and to sell or offer
18for sale at retail, only in the premises specified in the
19license hereby created, the transferred alcoholic liquor for
20use or consumption, but not for resale in any form. A special
21use permit license may be granted for the following time
22periods: one day or less; 2 or more days to a maximum of 15 days
23per location in any 12-month 12 month period. An applicant for
24the special use permit license must also submit with the
25application proof satisfactory to the State Commission that the
26applicant will provide dram shop liability insurance to the

HB4002- 487 -LRB100 11337 MJP 21715 b
1maximum limits and have local authority approval.
2 (r) A winery shipper's license shall allow a person with a
3first-class or second-class wine manufacturer's license, a
4first-class or second-class wine-maker's license, or a limited
5wine manufacturer's license or who is licensed to make wine
6under the laws of another state to ship wine made by that
7licensee directly to a resident of this State who is 21 years
8of age or older for that resident's personal use and not for
9resale. Prior to receiving a winery shipper's license, an
10applicant for the license must provide the Commission with a
11true copy of its current license in any state in which it is
12licensed as a manufacturer of wine. An applicant for a winery
13shipper's license must also complete an application form that
14provides any other information the Commission deems necessary.
15The application form shall include all addresses from which the
16applicant for a winery shipper's license intends to ship wine,
17including the name and address of any third party, except for a
18common carrier, authorized to ship wine on behalf of the
19manufacturer. The application form shall include an
20acknowledgement consenting to the jurisdiction of the
21Commission, the Illinois Department of Revenue, and the courts
22of this State concerning the enforcement of this Act and any
23related laws, rules, and regulations, including authorizing
24the Department of Revenue and the Commission to conduct audits
25for the purpose of ensuring compliance with Public Act 95-634,
26and an acknowledgement that the wine manufacturer is in

HB4002- 488 -LRB100 11337 MJP 21715 b
1compliance with Section 6-2 of this Act. Any third party,
2except for a common carrier, authorized to ship wine on behalf
3of a first-class or second-class wine manufacturer's licensee,
4a first-class or second-class wine-maker's licensee, a limited
5wine manufacturer's licensee, or a person who is licensed to
6make wine under the laws of another state shall also be
7disclosed by the winery shipper's licensee, and a copy of the
8written appointment of the third-party wine provider, except
9for a common carrier, to the wine manufacturer shall be filed
10with the State Commission as a supplement to the winery
11shipper's license application or any renewal thereof. The
12winery shipper's license holder shall affirm under penalty of
13perjury, as part of the winery shipper's license application or
14renewal, that he or she only ships wine, either directly or
15indirectly through a third-party provider, from the licensee's
16own production.
17 Except for a common carrier, a third-party provider
18shipping wine on behalf of a winery shipper's license holder is
19the agent of the winery shipper's license holder and, as such,
20a winery shipper's license holder is responsible for the acts
21and omissions of the third-party provider acting on behalf of
22the license holder. A third-party provider, except for a common
23carrier, that engages in shipping wine into Illinois on behalf
24of a winery shipper's license holder shall consent to the
25jurisdiction of the State Commission and the State. Any
26third-party, except for a common carrier, holding such an

HB4002- 489 -LRB100 11337 MJP 21715 b
1appointment shall, by February 1 of each calendar year, file
2with the State Commission a statement detailing each shipment
3made to an Illinois resident. The State Commission shall adopt
4rules as soon as practicable to implement the requirements of
5Public Act 99-904 this amendatory Act of the 99th General
6Assembly and shall adopt rules prohibiting any such third-party
7appointment of a third-party provider, except for a common
8carrier, that has been deemed by the State Commission to have
9violated the provisions of this Act with regard to any winery
10shipper licensee.
11 A winery shipper licensee must pay to the Department of
12Revenue the State liquor gallonage tax under Section 8-1 for
13all wine that is sold by the licensee and shipped to a person
14in this State. For the purposes of Section 8-1, a winery
15shipper licensee shall be taxed in the same manner as a
16manufacturer of wine. A licensee who is not otherwise required
17to register under the Retailers' Occupation Tax Act must
18register under the Use Tax Act to collect and remit use tax to
19the Department of Revenue for all gallons of wine that are sold
20by the licensee and shipped to persons in this State. If a
21licensee fails to remit the tax imposed under this Act in
22accordance with the provisions of Article VIII of this Act, the
23winery shipper's license shall be revoked in accordance with
24the provisions of Article VII of this Act. If a licensee fails
25to properly register and remit tax under the Use Tax Act or the
26Retailers' Occupation Tax Act for all wine that is sold by the

HB4002- 490 -LRB100 11337 MJP 21715 b
1winery shipper and shipped to persons in this State, the winery
2shipper's license shall be revoked in accordance with the
3provisions of Article VII of this Act.
4 A winery shipper licensee must collect, maintain, and
5submit to the Commission on a semi-annual basis the total
6number of cases per resident of wine shipped to residents of
7this State. A winery shipper licensed under this subsection (r)
8must comply with the requirements of Section 6-29 of this Act.
9 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
10Section 3-12, the State Commission may receive, respond to, and
11investigate any complaint and impose any of the remedies
12specified in paragraph (1) of subsection (a) of Section 3-12.
13 (s) A craft distiller tasting permit license shall allow an
14Illinois licensed craft distiller to transfer a portion of its
15alcoholic liquor inventory from its craft distiller licensed
16premises to the premises specified in the license hereby
17created and to conduct a sampling, only in the premises
18specified in the license hereby created, of the transferred
19alcoholic liquor in accordance with subsection (c) of Section
206-31 of this Act. The transferred alcoholic liquor may not be
21sold or resold in any form. An applicant for the craft
22distiller tasting permit license must also submit with the
23application proof satisfactory to the State Commission that the
24applicant will provide dram shop liability insurance to the
25maximum limits and have local authority approval.
26(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;

HB4002- 491 -LRB100 11337 MJP 21715 b
198-756, eff. 7-16-14; 99-448, eff. 8-24-15; 99-642, eff.
27-28-16; 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904,
3eff. 1-1-17; revised 9-15-16.)
4 (235 ILCS 5/6-30) (from Ch. 43, par. 144f)
5 Sec. 6-30. Notwithstanding any other provision of this Act,
6the Illinois Gaming Board shall have exclusive authority to
7establish the hours for sale and consumption of alcoholic
8liquor on board a riverboat during riverboat gambling
9excursions and in a casino conducted in accordance with the
10Illinois Riverboat Gambling Act.
11(Source: P.A. 87-826.)
12 Section 90-46. The Illinois Public Aid Code is amended by
13changing Section 10-17.15 as follows:
14 (305 ILCS 5/10-17.15)
15 Sec. 10-17.15. Certification of information to State
16gaming licensees.
17 (a) For purposes of this Section, "State gaming licensee"
18means, as applicable, an organization licensee or advance
19deposit wagering licensee licensed under the Illinois Horse
20Racing Act of 1975, an owners licensee licensed under the
21Illinois Riverboat Gambling Act, or a licensee that operates,
22under any law of this State, one or more facilities or gaming
23locations at which lawful gambling is authorized and licensed

HB4002- 492 -LRB100 11337 MJP 21715 b
1as provided in the Illinois Riverboat Gambling Act.
2 (b) The Department may provide, by rule, for certification
3to any State gaming licensee of past due child support owed by
4a responsible relative under a support order entered by a court
5or administrative body of this or any other State on behalf of
6a resident or non-resident receiving child support services
7under this Article in accordance with the requirements of Title
8IV-D, Part D, of the Social Security Act. The State gaming
9licensee shall have the ability to withhold from winnings
10required to be reported to the Internal Revenue Service on Form
11W-2G, up to the full amount of winnings necessary to pay the
12winner's past due child support. The rule shall provide for
13notice to and an opportunity to be heard by each responsible
14relative affected and any final administrative decision
15rendered by the Department shall be reviewed only under and in
16accordance with the Administrative Review Law.
17 (c) For withholding of winnings, the State gaming licensee
18shall be entitled to an administrative fee not to exceed the
19lesser of 4% of the total amount of cash winnings paid to the
20gambling winner or $150.
21 (d) In no event may the total amount withheld from the cash
22payout, including the administrative fee, exceed the total cash
23winnings claimed by the obligor. If the cash payout claimed is
24greater than the amount sufficient to satisfy the obligor's
25delinquent child support payments, the State gaming licensee
26shall pay the obligor the remaining balance of the payout, less

HB4002- 493 -LRB100 11337 MJP 21715 b
1the administrative fee authorized by subsection (c) of this
2Section, at the time it is claimed.
3 (e) A State gaming licensee who in good faith complies with
4the requirements of this Section shall not be liable to the
5gaming winner or any other individual or entity.
6(Source: P.A. 98-318, eff. 8-12-13.)
7 Section 90-47. The Firearm Concealed Carry Act is amended
8by changing Section 65 as follows:
9 (430 ILCS 66/65)
10 Sec. 65. Prohibited areas.
11 (a) A licensee under this Act shall not knowingly carry a
12firearm on or into:
13 (1) Any building, real property, and parking area under
14 the control of a public or private elementary or secondary
15 school.
16 (2) Any building, real property, and parking area under
17 the control of a pre-school or child care facility,
18 including any room or portion of a building under the
19 control of a pre-school or child care facility. Nothing in
20 this paragraph shall prevent the operator of a child care
21 facility in a family home from owning or possessing a
22 firearm in the home or license under this Act, if no child
23 under child care at the home is present in the home or the
24 firearm in the home is stored in a locked container when a

HB4002- 494 -LRB100 11337 MJP 21715 b
1 child under child care at the home is present in the home.
2 (3) Any building, parking area, or portion of a
3 building under the control of an officer of the executive
4 or legislative branch of government, provided that nothing
5 in this paragraph shall prohibit a licensee from carrying a
6 concealed firearm onto the real property, bikeway, or trail
7 in a park regulated by the Department of Natural Resources
8 or any other designated public hunting area or building
9 where firearm possession is permitted as established by the
10 Department of Natural Resources under Section 1.8 of the
11 Wildlife Code.
12 (4) Any building designated for matters before a
13 circuit court, appellate court, or the Supreme Court, or
14 any building or portion of a building under the control of
15 the Supreme Court.
16 (5) Any building or portion of a building under the
17 control of a unit of local government.
18 (6) Any building, real property, and parking area under
19 the control of an adult or juvenile detention or
20 correctional institution, prison, or jail.
21 (7) Any building, real property, and parking area under
22 the control of a public or private hospital or hospital
23 affiliate, mental health facility, or nursing home.
24 (8) Any bus, train, or form of transportation paid for
25 in whole or in part with public funds, and any building,
26 real property, and parking area under the control of a

HB4002- 495 -LRB100 11337 MJP 21715 b
1 public transportation facility paid for in whole or in part
2 with public funds.
3 (9) Any building, real property, and parking area under
4 the control of an establishment that serves alcohol on its
5 premises, if more than 50% of the establishment's gross
6 receipts within the prior 3 months is from the sale of
7 alcohol. The owner of an establishment who knowingly fails
8 to prohibit concealed firearms on its premises as provided
9 in this paragraph or who knowingly makes a false statement
10 or record to avoid the prohibition on concealed firearms
11 under this paragraph is subject to the penalty under
12 subsection (c-5) of Section 10-1 of the Liquor Control Act
13 of 1934.
14 (10) Any public gathering or special event conducted on
15 property open to the public that requires the issuance of a
16 permit from the unit of local government, provided this
17 prohibition shall not apply to a licensee who must walk
18 through a public gathering in order to access his or her
19 residence, place of business, or vehicle.
20 (11) Any building or real property that has been issued
21 a Special Event Retailer's license as defined in Section
22 1-3.17.1 of the Liquor Control Act during the time
23 designated for the sale of alcohol by the Special Event
24 Retailer's license, or a Special use permit license as
25 defined in subsection (q) of Section 5-1 of the Liquor
26 Control Act during the time designated for the sale of

HB4002- 496 -LRB100 11337 MJP 21715 b
1 alcohol by the Special use permit license.
2 (12) Any public playground.
3 (13) Any public park, athletic area, or athletic
4 facility under the control of a municipality or park
5 district, provided nothing in this Section shall prohibit a
6 licensee from carrying a concealed firearm while on a trail
7 or bikeway if only a portion of the trail or bikeway
8 includes a public park.
9 (14) Any real property under the control of the Cook
10 County Forest Preserve District.
11 (15) Any building, classroom, laboratory, medical
12 clinic, hospital, artistic venue, athletic venue,
13 entertainment venue, officially recognized
14 university-related organization property, whether owned or
15 leased, and any real property, including parking areas,
16 sidewalks, and common areas under the control of a public
17 or private community college, college, or university.
18 (16) Any building, real property, or parking area under
19 the control of a gaming facility licensed under the
20 Illinois Riverboat Gambling Act or the Illinois Horse
21 Racing Act of 1975, including an inter-track wagering
22 location licensee.
23 (17) Any stadium, arena, or the real property or
24 parking area under the control of a stadium, arena, or any
25 collegiate or professional sporting event.
26 (18) Any building, real property, or parking area under

HB4002- 497 -LRB100 11337 MJP 21715 b
1 the control of a public library.
2 (19) Any building, real property, or parking area under
3 the control of an airport.
4 (20) Any building, real property, or parking area under
5 the control of an amusement park.
6 (21) Any building, real property, or parking area under
7 the control of a zoo or museum.
8 (22) Any street, driveway, parking area, property,
9 building, or facility, owned, leased, controlled, or used
10 by a nuclear energy, storage, weapons, or development site
11 or facility regulated by the federal Nuclear Regulatory
12 Commission. The licensee shall not under any circumstance
13 store a firearm or ammunition in his or her vehicle or in a
14 compartment or container within a vehicle located anywhere
15 in or on the street, driveway, parking area, property,
16 building, or facility described in this paragraph.
17 (23) Any area where firearms are prohibited under
18 federal law.
19 (a-5) Nothing in this Act shall prohibit a public or
20private community college, college, or university from:
21 (1) prohibiting persons from carrying a firearm within
22 a vehicle owned, leased, or controlled by the college or
23 university;
24 (2) developing resolutions, regulations, or policies
25 regarding student, employee, or visitor misconduct and
26 discipline, including suspension and expulsion;

HB4002- 498 -LRB100 11337 MJP 21715 b
1 (3) developing resolutions, regulations, or policies
2 regarding the storage or maintenance of firearms, which
3 must include designated areas where persons can park
4 vehicles that carry firearms; and
5 (4) permitting the carrying or use of firearms for the
6 purpose of instruction and curriculum of officially
7 recognized programs, including but not limited to military
8 science and law enforcement training programs, or in any
9 designated area used for hunting purposes or target
10 shooting.
11 (a-10) The owner of private real property of any type may
12prohibit the carrying of concealed firearms on the property
13under his or her control. The owner must post a sign in
14accordance with subsection (d) of this Section indicating that
15firearms are prohibited on the property, unless the property is
16a private residence.
17 (b) Notwithstanding subsections (a), (a-5), and (a-10) of
18this Section except under paragraph (22) or (23) of subsection
19(a), any licensee prohibited from carrying a concealed firearm
20into the parking area of a prohibited location specified in
21subsection (a), (a-5), or (a-10) of this Section shall be
22permitted to carry a concealed firearm on or about his or her
23person within a vehicle into the parking area and may store a
24firearm or ammunition concealed in a case within a locked
25vehicle or locked container out of plain view within the
26vehicle in the parking area. A licensee may carry a concealed

HB4002- 499 -LRB100 11337 MJP 21715 b
1firearm in the immediate area surrounding his or her vehicle
2within a prohibited parking lot area only for the limited
3purpose of storing or retrieving a firearm within the vehicle's
4trunk. For purposes of this subsection, "case" includes a glove
5compartment or console that completely encloses the concealed
6firearm or ammunition, the trunk of the vehicle, or a firearm
7carrying box, shipping box, or other container.
8 (c) A licensee shall not be in violation of this Section
9while he or she is traveling along a public right of way that
10touches or crosses any of the premises under subsection (a),
11(a-5), or (a-10) of this Section if the concealed firearm is
12carried on his or her person in accordance with the provisions
13of this Act or is being transported in a vehicle by the
14licensee in accordance with all other applicable provisions of
15law.
16 (d) Signs stating that the carrying of firearms is
17prohibited shall be clearly and conspicuously posted at the
18entrance of a building, premises, or real property specified in
19this Section as a prohibited area, unless the building or
20premises is a private residence. Signs shall be of a uniform
21design as established by the Department and shall be 4 inches
22by 6 inches in size. The Department shall adopt rules for
23standardized signs to be used under this subsection.
24(Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)
25 Section 90-50. The Criminal Code of 2012 is amended by

HB4002- 500 -LRB100 11337 MJP 21715 b
1changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as
2follows:
3 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
4 Sec. 28-1. Gambling.
5 (a) A person commits gambling when he or she:
6 (1) knowingly plays a game of chance or skill for money
7 or other thing of value, unless excepted in subsection (b)
8 of this Section;
9 (2) knowingly makes a wager upon the result of any
10 game, contest, or any political nomination, appointment or
11 election;
12 (3) knowingly operates, keeps, owns, uses, purchases,
13 exhibits, rents, sells, bargains for the sale or lease of,
14 manufactures or distributes any gambling device;
15 (4) contracts to have or give himself or herself or
16 another the option to buy or sell, or contracts to buy or
17 sell, at a future time, any grain or other commodity
18 whatsoever, or any stock or security of any company, where
19 it is at the time of making such contract intended by both
20 parties thereto that the contract to buy or sell, or the
21 option, whenever exercised, or the contract resulting
22 therefrom, shall be settled, not by the receipt or delivery
23 of such property, but by the payment only of differences in
24 prices thereof; however, the issuance, purchase, sale,
25 exercise, endorsement or guarantee, by or through a person

HB4002- 501 -LRB100 11337 MJP 21715 b
1 registered with the Secretary of State pursuant to Section
2 8 of the Illinois Securities Law of 1953, or by or through
3 a person exempt from such registration under said Section
4 8, of a put, call, or other option to buy or sell
5 securities which have been registered with the Secretary of
6 State or which are exempt from such registration under
7 Section 3 of the Illinois Securities Law of 1953 is not
8 gambling within the meaning of this paragraph (4);
9 (5) knowingly owns or possesses any book, instrument or
10 apparatus by means of which bets or wagers have been, or
11 are, recorded or registered, or knowingly possesses any
12 money which he has received in the course of a bet or
13 wager;
14 (6) knowingly sells pools upon the result of any game
15 or contest of skill or chance, political nomination,
16 appointment or election;
17 (7) knowingly sets up or promotes any lottery or sells,
18 offers to sell or transfers any ticket or share for any
19 lottery;
20 (8) knowingly sets up or promotes any policy game or
21 sells, offers to sell or knowingly possesses or transfers
22 any policy ticket, slip, record, document or other similar
23 device;
24 (9) knowingly drafts, prints or publishes any lottery
25 ticket or share, or any policy ticket, slip, record,
26 document or similar device, except for such activity

HB4002- 502 -LRB100 11337 MJP 21715 b
1 related to lotteries, bingo games and raffles authorized by
2 and conducted in accordance with the laws of Illinois or
3 any other state or foreign government;
4 (10) knowingly advertises any lottery or policy game,
5 except for such activity related to lotteries, bingo games
6 and raffles authorized by and conducted in accordance with
7 the laws of Illinois or any other state;
8 (11) knowingly transmits information as to wagers,
9 betting odds, or changes in betting odds by telephone,
10 telegraph, radio, semaphore or similar means; or knowingly
11 installs or maintains equipment for the transmission or
12 receipt of such information; except that nothing in this
13 subdivision (11) prohibits transmission or receipt of such
14 information for use in news reporting of sporting events or
15 contests; or
16 (12) knowingly establishes, maintains, or operates an
17 Internet site that permits a person to play a game of
18 chance or skill for money or other thing of value by means
19 of the Internet or to make a wager upon the result of any
20 game, contest, political nomination, appointment, or
21 election by means of the Internet. This item (12) does not
22 apply to activities referenced in items (6) and (6.1) of
23 subsection (b) of this Section.
24 (b) Participants in any of the following activities shall
25not be convicted of gambling:
26 (1) Agreements to compensate for loss caused by the

HB4002- 503 -LRB100 11337 MJP 21715 b
1 happening of chance including without limitation contracts
2 of indemnity or guaranty and life or health or accident
3 insurance.
4 (2) Offers of prizes, award or compensation to the
5 actual contestants in any bona fide contest for the
6 determination of skill, speed, strength or endurance or to
7 the owners of animals or vehicles entered in such contest.
8 (3) Pari-mutuel betting as authorized by the law of
9 this State.
10 (4) Manufacture of gambling devices, including the
11 acquisition of essential parts therefor and the assembly
12 thereof, for transportation in interstate or foreign
13 commerce to any place outside this State when such
14 transportation is not prohibited by any applicable Federal
15 law; or the manufacture, distribution, or possession of
16 video gaming terminals, as defined in the Video Gaming Act,
17 by manufacturers, distributors, and terminal operators
18 licensed to do so under the Video Gaming Act.
19 (5) The game commonly known as "bingo", when conducted
20 in accordance with the Bingo License and Tax Act.
21 (6) Lotteries when conducted by the State of Illinois
22 in accordance with the Illinois Lottery Law. This exemption
23 includes any activity conducted by the Department of
24 Revenue to sell lottery tickets pursuant to the provisions
25 of the Illinois Lottery Law and its rules.
26 (6.1) The purchase of lottery tickets through the

HB4002- 504 -LRB100 11337 MJP 21715 b
1 Internet for a lottery conducted by the State of Illinois
2 under the program established in Section 7.12 of the
3 Illinois Lottery Law.
4 (7) Possession of an antique slot machine that is
5 neither used nor intended to be used in the operation or
6 promotion of any unlawful gambling activity or enterprise.
7 For the purpose of this subparagraph (b)(7), an antique
8 slot machine is one manufactured 25 years ago or earlier.
9 (8) Raffles and poker runs when conducted in accordance
10 with the Raffles and Poker Runs Act.
11 (9) Charitable games when conducted in accordance with
12 the Charitable Games Act.
13 (10) Pull tabs and jar games when conducted under the
14 Illinois Pull Tabs and Jar Games Act.
15 (11) Gambling games conducted on riverboats when
16 authorized by the Illinois Riverboat Gambling Act.
17 (12) Video gaming terminal games at a licensed
18 establishment, licensed truck stop establishment, licensed
19 fraternal establishment, or licensed veterans
20 establishment when conducted in accordance with the Video
21 Gaming Act.
22 (13) Games of skill or chance where money or other
23 things of value can be won but no payment or purchase is
24 required to participate.
25 (14) Savings promotion raffles authorized under
26 Section 5g of the Illinois Banking Act, Section 7008 of the

HB4002- 505 -LRB100 11337 MJP 21715 b
1 Savings Bank Act, Section 42.7 of the Illinois Credit Union
2 Act, Section 5136B of the National Bank Act (12 U.S.C.
3 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
4 1463).
5 (c) Sentence.
6 Gambling is a Class A misdemeanor. A second or subsequent
7conviction under subsections (a)(3) through (a)(12), is a Class
84 felony.
9 (d) Circumstantial evidence.
10 In prosecutions under this Section circumstantial evidence
11shall have the same validity and weight as in any criminal
12prosecution.
13(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
14 (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)
15 Sec. 28-1.1. Syndicated gambling.
16 (a) Declaration of Purpose. Recognizing the close
17relationship between professional gambling and other organized
18crime, it is declared to be the policy of the legislature to
19restrain persons from engaging in the business of gambling for
20profit in this State. This Section shall be liberally construed
21and administered with a view to carrying out this policy.
22 (b) A person commits syndicated gambling when he or she
23operates a "policy game" or engages in the business of
24bookmaking.
25 (c) A person "operates a policy game" when he or she

HB4002- 506 -LRB100 11337 MJP 21715 b
1knowingly uses any premises or property for the purpose of
2receiving or knowingly does receive from what is commonly
3called "policy":
4 (1) money from a person other than the bettor or player
5 whose bets or plays are represented by the money; or
6 (2) written "policy game" records, made or used over
7 any period of time, from a person other than the bettor or
8 player whose bets or plays are represented by the written
9 record.
10 (d) A person engages in bookmaking when he or she knowingly
11receives or accepts more than five bets or wagers upon the
12result of any trials or contests of skill, speed or power of
13endurance or upon any lot, chance, casualty, unknown or
14contingent event whatsoever, which bets or wagers shall be of
15such size that the total of the amounts of money paid or
16promised to be paid to the bookmaker on account thereof shall
17exceed $2,000. Bookmaking is the receiving or accepting of bets
18or wagers regardless of the form or manner in which the
19bookmaker records them.
20 (e) Participants in any of the following activities shall
21not be convicted of syndicated gambling:
22 (1) Agreements to compensate for loss caused by the
23 happening of chance including without limitation contracts
24 of indemnity or guaranty and life or health or accident
25 insurance;
26 (2) Offers of prizes, award or compensation to the

HB4002- 507 -LRB100 11337 MJP 21715 b
1 actual contestants in any bona fide contest for the
2 determination of skill, speed, strength or endurance or to
3 the owners of animals or vehicles entered in the contest;
4 (3) Pari-mutuel betting as authorized by law of this
5 State;
6 (4) Manufacture of gambling devices, including the
7 acquisition of essential parts therefor and the assembly
8 thereof, for transportation in interstate or foreign
9 commerce to any place outside this State when the
10 transportation is not prohibited by any applicable Federal
11 law;
12 (5) Raffles and poker runs when conducted in accordance
13 with the Raffles and Poker Runs Act;
14 (6) Gambling games conducted on riverboats, in
15 casinos, or at electronic gaming facilities when
16 authorized by the Illinois Riverboat Gambling Act;
17 (7) Video gaming terminal games at a licensed
18 establishment, licensed truck stop establishment, licensed
19 fraternal establishment, or licensed veterans
20 establishment when conducted in accordance with the Video
21 Gaming Act; and
22 (8) Savings promotion raffles authorized under Section
23 5g of the Illinois Banking Act, Section 7008 of the Savings
24 Bank Act, Section 42.7 of the Illinois Credit Union Act,
25 Section 5136B of the National Bank Act (12 U.S.C. 25a), or
26 Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).

HB4002- 508 -LRB100 11337 MJP 21715 b
1 (f) Sentence. Syndicated gambling is a Class 3 felony.
2(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
3 (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
4 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
5any real estate, vehicle, boat or any other property whatsoever
6used for the purposes of gambling other than gambling conducted
7in the manner authorized by the Illinois Riverboat Gambling Act
8or the Video Gaming Act. Any person who knowingly permits any
9premises or property owned or occupied by him or under his
10control to be used as a gambling place commits a Class A
11misdemeanor. Each subsequent offense is a Class 4 felony. When
12any premises is determined by the circuit court to be a
13gambling place:
14 (a) Such premises is a public nuisance and may be proceeded
15against as such, and
16 (b) All licenses, permits or certificates issued by the
17State of Illinois or any subdivision or public agency thereof
18authorizing the serving of food or liquor on such premises
19shall be void; and no license, permit or certificate so
20cancelled shall be reissued for such premises for a period of
2160 days thereafter; nor shall any person convicted of keeping a
22gambling place be reissued such license for one year from his
23conviction and, after a second conviction of keeping a gambling
24place, any such person shall not be reissued such license, and
25 (c) Such premises of any person who knowingly permits

HB4002- 509 -LRB100 11337 MJP 21715 b
1thereon a violation of any Section of this Article shall be
2held liable for, and may be sold to pay any unsatisfied
3judgment that may be recovered and any unsatisfied fine that
4may be levied under any Section of this Article.
5(Source: P.A. 96-34, eff. 7-13-09.)
6 (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
7 Sec. 28-5. Seizure of gambling devices and gambling funds.
8 (a) Every device designed for gambling which is incapable
9of lawful use or every device used unlawfully for gambling
10shall be considered a "gambling device", and shall be subject
11to seizure, confiscation and destruction by the Department of
12State Police or by any municipal, or other local authority,
13within whose jurisdiction the same may be found. As used in
14this Section, a "gambling device" includes any slot machine,
15and includes any machine or device constructed for the
16reception of money or other thing of value and so constructed
17as to return, or to cause someone to return, on chance to the
18player thereof money, property or a right to receive money or
19property. With the exception of any device designed for
20gambling which is incapable of lawful use, no gambling device
21shall be forfeited or destroyed unless an individual with a
22property interest in said device knows of the unlawful use of
23the device.
24 (b) Every gambling device shall be seized and forfeited to
25the county wherein such seizure occurs. Any money or other

HB4002- 510 -LRB100 11337 MJP 21715 b
1thing of value integrally related to acts of gambling shall be
2seized and forfeited to the county wherein such seizure occurs.
3 (c) If, within 60 days after any seizure pursuant to
4subparagraph (b) of this Section, a person having any property
5interest in the seized property is charged with an offense, the
6court which renders judgment upon such charge shall, within 30
7days after such judgment, conduct a forfeiture hearing to
8determine whether such property was a gambling device at the
9time of seizure. Such hearing shall be commenced by a written
10petition by the State, including material allegations of fact,
11the name and address of every person determined by the State to
12have any property interest in the seized property, a
13representation that written notice of the date, time and place
14of such hearing has been mailed to every such person by
15certified mail at least 10 days before such date, and a request
16for forfeiture. Every such person may appear as a party and
17present evidence at such hearing. The quantum of proof required
18shall be a preponderance of the evidence, and the burden of
19proof shall be on the State. If the court determines that the
20seized property was a gambling device at the time of seizure,
21an order of forfeiture and disposition of the seized property
22shall be entered: a gambling device shall be received by the
23State's Attorney, who shall effect its destruction, except that
24valuable parts thereof may be liquidated and the resultant
25money shall be deposited in the general fund of the county
26wherein such seizure occurred; money and other things of value

HB4002- 511 -LRB100 11337 MJP 21715 b
1shall be received by the State's Attorney and, upon
2liquidation, shall be deposited in the general fund of the
3county wherein such seizure occurred. However, in the event
4that a defendant raises the defense that the seized slot
5machine is an antique slot machine described in subparagraph
6(b) (7) of Section 28-1 of this Code and therefore he is exempt
7from the charge of a gambling activity participant, the seized
8antique slot machine shall not be destroyed or otherwise
9altered until a final determination is made by the Court as to
10whether it is such an antique slot machine. Upon a final
11determination by the Court of this question in favor of the
12defendant, such slot machine shall be immediately returned to
13the defendant. Such order of forfeiture and disposition shall,
14for the purposes of appeal, be a final order and judgment in a
15civil proceeding.
16 (d) If a seizure pursuant to subparagraph (b) of this
17Section is not followed by a charge pursuant to subparagraph
18(c) of this Section, or if the prosecution of such charge is
19permanently terminated or indefinitely discontinued without
20any judgment of conviction or acquittal (1) the State's
21Attorney shall commence an in rem proceeding for the forfeiture
22and destruction of a gambling device, or for the forfeiture and
23deposit in the general fund of the county of any seized money
24or other things of value, or both, in the circuit court and (2)
25any person having any property interest in such seized gambling
26device, money or other thing of value may commence separate

HB4002- 512 -LRB100 11337 MJP 21715 b
1civil proceedings in the manner provided by law.
2 (e) Any gambling device displayed for sale to a riverboat
3gambling operation, casino gambling operation, or electronic
4gaming facility or used to train occupational licensees of a
5riverboat gambling operation, casino gambling operation, or
6electronic gaming facility as authorized under the Illinois
7Riverboat Gambling Act is exempt from seizure under this
8Section.
9 (f) Any gambling equipment, devices and supplies provided
10by a licensed supplier in accordance with the Illinois
11Riverboat Gambling Act which are removed from a the riverboat,
12casino, or electronic gaming facility for repair are exempt
13from seizure under this Section.
14 (g) The following video gaming terminals are exempt from
15seizure under this Section:
16 (1) Video gaming terminals for sale to a licensed
17 distributor or operator under the Video Gaming Act.
18 (2) Video gaming terminals used to train licensed
19 technicians or licensed terminal handlers.
20 (3) Video gaming terminals that are removed from a
21 licensed establishment, licensed truck stop establishment,
22 licensed fraternal establishment, or licensed veterans
23 establishment for repair.
24(Source: P.A. 98-31, eff. 6-24-13.)
25 (720 ILCS 5/28-7) (from Ch. 38, par. 28-7)

HB4002- 513 -LRB100 11337 MJP 21715 b
1 Sec. 28-7. Gambling contracts void.
2 (a) All promises, notes, bills, bonds, covenants,
3contracts, agreements, judgments, mortgages, or other
4securities or conveyances made, given, granted, drawn, or
5entered into, or executed by any person whatsoever, where the
6whole or any part of the consideration thereof is for any money
7or thing of value, won or obtained in violation of any Section
8of this Article are null and void.
9 (b) Any obligation void under this Section may be set aside
10and vacated by any court of competent jurisdiction, upon a
11complaint filed for that purpose, by the person so granting,
12giving, entering into, or executing the same, or by his
13executors or administrators, or by any creditor, heir, legatee,
14purchaser or other person interested therein; or if a judgment,
15the same may be set aside on motion of any person stated above,
16on due notice thereof given.
17 (c) No assignment of any obligation void under this Section
18may in any manner affect the defense of the person giving,
19granting, drawing, entering into or executing such obligation,
20or the remedies of any person interested therein.
21 (d) This Section shall not prevent a licensed owner of a
22riverboat gambling operation, casino gambling operation, or an
23electronic gaming licensee under the Illinois Gambling Act and
24the Illinois Horse Racing Act of 1975 from instituting a cause
25of action to collect any amount due and owing under an
26extension of credit to a riverboat gambling patron as

HB4002- 514 -LRB100 11337 MJP 21715 b
1authorized under Section 11.1 of the Illinois Riverboat
2Gambling Act.
3(Source: P.A. 87-826.)
4 Section 90-55. The Eminent Domain Act is amended by adding
5Section 15-5-48 as follows:
6 (735 ILCS 30/15-5-48 new)
7 Sec. 15-5-48. Eminent domain powers in new Acts. The
8following provisions of law may include express grants of the
9power to acquire property by condemnation or eminent domain:
10 Chicago Casino Development Authority Act; City of Chicago; for
11 the purposes of the Act.
12 Section 90-60. The Payday Loan Reform Act is amended by
13changing Section 3-5 as follows:
14 (815 ILCS 122/3-5)
15 Sec. 3-5. Licensure.
16 (a) A license to make a payday loan shall state the
17address, including city and state, at which the business is to
18be conducted and shall state fully the name of the licensee.
19The license shall be conspicuously posted in the place of
20business of the licensee and shall not be transferable or
21assignable.

HB4002- 515 -LRB100 11337 MJP 21715 b
1 (b) An application for a license shall be in writing and in
2a form prescribed by the Secretary. The Secretary may not issue
3a payday loan license unless and until the following findings
4are made:
5 (1) that the financial responsibility, experience,
6 character, and general fitness of the applicant are such as
7 to command the confidence of the public and to warrant the
8 belief that the business will be operated lawfully and
9 fairly and within the provisions and purposes of this Act;
10 and
11 (2) that the applicant has submitted such other
12 information as the Secretary may deem necessary.
13 (c) A license shall be issued for no longer than one year,
14and no renewal of a license may be provided if a licensee has
15substantially violated this Act and has not cured the violation
16to the satisfaction of the Department.
17 (d) A licensee shall appoint, in writing, the Secretary as
18attorney-in-fact upon whom all lawful process against the
19licensee may be served with the same legal force and validity
20as if served on the licensee. A copy of the written
21appointment, duly certified, shall be filed in the office of
22the Secretary, and a copy thereof certified by the Secretary
23shall be sufficient evidence to subject a licensee to
24jurisdiction in a court of law. This appointment shall remain
25in effect while any liability remains outstanding in this State
26against the licensee. When summons is served upon the Secretary

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1as attorney-in-fact for a licensee, the Secretary shall
2immediately notify the licensee by registered mail, enclosing
3the summons and specifying the hour and day of service.
4 (e) A licensee must pay an annual fee of $1,000. In
5addition to the license fee, the reasonable expense of any
6examination or hearing by the Secretary under any provisions of
7this Act shall be borne by the licensee. If a licensee fails to
8renew its license by December 31, its license shall
9automatically expire; however, the Secretary, in his or her
10discretion, may reinstate an expired license upon:
11 (1) payment of the annual fee within 30 days of the
12 date of expiration; and
13 (2) proof of good cause for failure to renew.
14 (f) Not more than one place of business shall be maintained
15under the same license, but the Secretary may issue more than
16one license to the same licensee upon compliance with all the
17provisions of this Act governing issuance of a single license.
18The location, except those locations already in existence as of
19June 1, 2005, may not be within one mile of a horse race track
20subject to the Illinois Horse Racing Act of 1975, within one
21mile of a facility at which gambling is conducted under the
22Illinois Riverboat Gambling Act, within one mile of the
23location at which a riverboat subject to the Illinois Riverboat
24Gambling Act docks, or within one mile of any State of Illinois
25or United States military base or naval installation.
26 (g) No licensee shall conduct the business of making loans

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1under this Act within any office, suite, room, or place of
2business in which (1) any loans are offered or made under the
3Consumer Installment Loan Act other than title secured loans as
4defined in subsection (a) of Section 15 of the Consumer
5Installment Loan Act and governed by Title 38, Section 110.330
6of the Illinois Administrative Code or (2) any other business
7is solicited or engaged in unless the other business is
8licensed by the Department or, in the opinion of the Secretary,
9the other business would not be contrary to the best interests
10of consumers and is authorized by the Secretary in writing.
11 (g-5) Notwithstanding subsection (g) of this Section, a
12licensee may obtain a license under the Consumer Installment
13Loan Act (CILA) for the exclusive purpose and use of making
14title secured loans, as defined in subsection (a) of Section 15
15of CILA and governed by Title 38, Section 110.300 of the
16Illinois Administrative Code. A licensee may continue to
17service Consumer Installment Loan Act loans that were
18outstanding as of the effective date of this amendatory Act of
19the 96th General Assembly.
20 (h) The Secretary shall maintain a list of licensees that
21shall be available to interested consumers and lenders and the
22public. The Secretary shall maintain a toll-free number whereby
23consumers may obtain information about licensees. The
24Secretary shall also establish a complaint process under which
25an aggrieved consumer may file a complaint against a licensee
26or non-licensee who violates any provision of this Act.

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

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

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1 INDEX
2 Statutes amended in order of appearance
3 New Act
4 5 ILCS 430/5-45
5 5 ILCS 430/20-10
6 20 ILCS 301/5-20
7 20 ILCS 605/605-530 new
8 20 ILCS 605/605-535 new
9 20 ILCS 1605/9.1
10 20 ILCS 2505/2505-305was 20 ILCS 2505/39b15.1
11 30 ILCS 5/3-1from Ch. 15, par. 303-1
12 30 ILCS 105/5.878 new
13 30 ILCS 105/5.879 new
14 30 ILCS 105/5.880 new
15 30 ILCS 105/6z-45
16 30 ILCS 105/6z-102 new
17 35 ILCS 5/201from Ch. 120, par. 2-201
18 35 ILCS 5/303from Ch. 120, par. 3-303
19 35 ILCS 5/304from Ch. 120, par. 3-304
20 35 ILCS 5/710from Ch. 120, par. 7-710
21 35 ILCS 200/15-144 new
22 65 ILCS 5/8-10-2.6 new
23 70 ILCS 1825/5.1from Ch. 19, par. 255.1
24 205 ILCS 670/12.5
25 230 ILCS 5/1.2

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1 230 ILCS 5/3.11from Ch. 8, par. 37-3.11
2 230 ILCS 5/3.12from Ch. 8, par. 37-3.12
3 230 ILCS 5/3.31 new
4 230 ILCS 5/3.32 new
5 230 ILCS 5/3.33 new
6 230 ILCS 5/3.35 new
7 230 ILCS 5/3.36 new
8 230 ILCS 5/6from Ch. 8, par. 37-6
9 230 ILCS 5/9from Ch. 8, par. 37-9
10 230 ILCS 5/15from Ch. 8, par. 37-15
11 230 ILCS 5/18from Ch. 8, par. 37-18
12 230 ILCS 5/19from Ch. 8, par. 37-19
13 230 ILCS 5/20from Ch. 8, par. 37-20
14 230 ILCS 5/21from Ch. 8, par. 37-21
15 230 ILCS 5/24from Ch. 8, par. 37-24
16 230 ILCS 5/25from Ch. 8, par. 37-25
17 230 ILCS 5/26from Ch. 8, par. 37-26
18 230 ILCS 5/26.8
19 230 ILCS 5/26.9
20 230 ILCS 5/27from Ch. 8, par. 37-27
21 230 ILCS 5/30from Ch. 8, par. 37-30
22 230 ILCS 5/30.5
23 230 ILCS 5/31from Ch. 8, par. 37-31
24 230 ILCS 5/32.1
25 230 ILCS 5/34.3 new
26 230 ILCS 5/36from Ch. 8, par. 37-36

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1 230 ILCS 5/40from Ch. 8, par. 37-40
2 230 ILCS 5/54.75
3 230 ILCS 5/56 new
4 230 ILCS 10/1from Ch. 120, par. 2401
5 230 ILCS 10/2from Ch. 120, par. 2402
6 230 ILCS 10/3from Ch. 120, par. 2403
7 230 ILCS 10/4from Ch. 120, par. 2404
8 230 ILCS 10/5from Ch. 120, par. 2405
9 230 ILCS 10/5.1from Ch. 120, par. 2405.1
10 230 ILCS 10/5.3 new
11 230 ILCS 10/6from Ch. 120, par. 2406
12 230 ILCS 10/7from Ch. 120, par. 2407
13 230 ILCS 10/7.3
14 230 ILCS 10/7.5
15 230 ILCS 10/7.7 new
16 230 ILCS 10/7.8 new
17 230 ILCS 10/7.9 new
18 230 ILCS 10/7.10 new
19 230 ILCS 10/7.11 new
20 230 ILCS 10/7.12 new
21 230 ILCS 10/7.13 new
22 230 ILCS 10/8from Ch. 120, par. 2408
23 230 ILCS 10/9from Ch. 120, par. 2409
24 230 ILCS 10/11from Ch. 120, par. 2411
25 230 ILCS 10/11.1from Ch. 120, par. 2411.1
26 230 ILCS 10/12from Ch. 120, par. 2412

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1 230 ILCS 10/13from Ch. 120, par. 2413
2 230 ILCS 10/14from Ch. 120, par. 2414
3 230 ILCS 10/15from Ch. 120, par. 2415
4 230 ILCS 10/16from Ch. 120, par. 2416
5 230 ILCS 10/17from Ch. 120, par. 2417
6 230 ILCS 10/17.1from Ch. 120, par. 2417.1
7 230 ILCS 10/18from Ch. 120, par. 2418
8 230 ILCS 10/18.1
9 230 ILCS 10/19from Ch. 120, par. 2419
10 230 ILCS 10/20from Ch. 120, par. 2420
11 230 ILCS 10/21from Ch. 120, par. 2421
12 230 ILCS 10/23from Ch. 120, par. 2423
13 230 ILCS 10/24
14 230 ILCS 40/5
15 230 ILCS 40/25
16 230 ILCS 40/45
17 230 ILCS 40/79
18 230 ILCS 40/80
19 235 ILCS 5/5-1from Ch. 43, par. 115
20 235 ILCS 5/6-30from Ch. 43, par. 144f
21 305 ILCS 5/10-17.15
22 430 ILCS 66/65
23 720 ILCS 5/28-1from Ch. 38, par. 28-1
24 720 ILCS 5/28-1.1from Ch. 38, par. 28-1.1
25 720 ILCS 5/28-3from Ch. 38, par. 28-3
26 720 ILCS 5/28-5from Ch. 38, par. 28-5

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