Rep. Robert Rita

Filed: 5/31/2019

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1
AMENDMENT TO SENATE BILL 690
2 AMENDMENT NO. ______. Amend Senate Bill 690, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
5
"Article 5. Leveling the Playing Field for Illinois Retail Act
6 Section 5-1. Short title. This Article may be cited as the
7Leveling the Playing Field for Illinois Retail Act. References
8in this Article to "this Act" means this Article.
9 Section 5-5. Findings. The General Assembly finds that
10certified service providers and certified automated systems
11simplify use and occupation tax compliance for out-of-state
12sellers, which fosters higher levels of accurate tax collection
13and remittance and generates administrative savings and new
14marginal tax revenue for both State and local taxing
15jurisdictions. By making the services of certified service

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1providers and certified automated systems available to remote
2retailers without charge as provided in this Act, the State
3will substantially eliminate the burden on those remote
4retailers to collect and remit both State and local taxing
5jurisdiction use and occupation taxes. While providing a means
6for remote retailers to collect and remit tax on an even basis
7with Illinois retailers, this Act also protects existing local
8tax revenue streams by retaining origin sourcing for all
9transactions by retailers maintaining a physical presence in
10Illinois.
11 Section 5-10. Definitions. As used in this Act:
12 "Certified service provider" means an agent certified by
13the Department to perform the remote retailer's use and
14occupation tax functions, as outlined in the contract between
15the State and the certified service provider.
16 "Certified automated system" means an automated software
17system that is certified by the State as meeting all
18performance and tax calculation standards required by
19Department rules.
20 "Department" means the Department of Revenue.
21 "Remote retailer" means a retailer as defined in Section 1
22of the Retailers' Occupation Tax Act that has an obligation to
23collect State and local retailers' occupation tax under
24subsection (b) of Section 2 of the Retailers' Occupation Tax
25Act.

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1 "Retailers' occupation tax" means the tax levied under the
2Retailers' Occupation Tax Act and all applicable local
3retailers' occupation taxes collected by the Department in
4conjunction with the State retailers' occupation tax.
5 Section 5-15. Certification of certified service
6providers. The Department shall, no later than December 31,
72019, establish standards for the certification of certified
8service providers and certified automated systems and may act
9jointly with other states to accomplish these ends.
10 The Department may take other actions reasonably required
11to implement the provisions of this Act, including the adoption
12of rules and emergency rules and the procurement of goods and
13services, which also may be coordinated jointly with other
14states.
15 Section 5-20. Provision of databases. The Department
16shall, no later than July 1, 2020:
17 (1) provide and maintain an electronic, downloadable
18 database of defined product categories that identifies the
19 taxability of each category;
20 (2) provide and maintain an electronic, downloadable
21 database of all retailers' occupation tax rates for the
22 jurisdictions in this State that levy a retailers'
23 occupation tax; and
24 (3) provide and maintain an electronic, downloadable

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1 database that assigns delivery addresses in this State to
2 the applicable taxing jurisdictions.
3 Section 5-25. Certification. The Department shall, no
4later than July 1, 2020:
5 (1) provide uniform minimum standards that companies
6 wishing to be designated as a certified service provider in
7 this State must meet; those minimum standards must include
8 an expedited certification process for companies that have
9 been certified in at least 5 other states;
10 (2) provide uniform minimum standards that certified
11 automated systems must meet; those minimum standards may
12 include an expedited certification process for automated
13 systems that have been certified in at least 5 other
14 states;
15 (3) establish a certification process to review the
16 systems of companies wishing to be designated as a
17 certified service provider in this State or of companies
18 wishing to use a certified automated process; this
19 certification process shall provide that companies that
20 meet all required standards and whose systems have been
21 tested and approved by the Department for properly
22 determining the taxability of items to be sold, the correct
23 tax rate to apply to a transaction, and the appropriate
24 jurisdictions to which the tax shall be remitted, shall be
25 certified;

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1 (4) enter into a contractual relationship with each
2 company that qualifies as a certified service provider or
3 that will be using a certified automated system; those
4 contracts shall, at a minimum, provide:
5 (A) the responsibilities of the certified service
6 provider and the remote retailers that contract with
7 the certified service provider or the user of a
8 certified automated system related to liability for
9 proper collection and remittance of use and occupation
10 taxes;
11 (B) the responsibilities of the certified service
12 provider and the remote retailers that contract with
13 the certified service provider or the user of a
14 certified service provider related to record keeping
15 and auditing;
16 (C) for the protection and confidentiality of tax
17 information; and
18 (D) compensation equal to 1.75% of the tax dollars
19 collected and remitted to the State by a certified
20 service provider on a timely basis on behalf of remote
21 retailers; remote retailers using a certified service
22 provider may not claim the vendor's discount allowed
23 under the Retailers' Occupation Tax Act or the Service
24 Occupation Tax Act.
25 The provisions of this Section shall supersede the
26provisions of the Illinois Procurement Code.

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1 Section 5-30. Relief from liability. Beginning January 1,
22020, remote retailers using certified service providers or
3certified automated systems and their certified service
4providers or certified automated systems providers are
5relieved from liability to the State for having charged and
6collected the incorrect amount of use or occupation tax
7resulting from a certified service provider or certified
8automated system relying, at the time of the sale, on: (1)
9erroneous data provided by the State in database files on tax
10rates, boundaries, or taxing jurisdictions; or (2) erroneous
11data provided by the State concerning the taxability of
12products and services.
13 The Department shall, to the best of its ability, assign
14addresses to the proper local taxing jurisdiction using a
159-digit zip code identifier. On an annual basis, the Department
16shall make available to local taxing jurisdictions the taxing
17jurisdiction boundaries determined by the Department for their
18verification. If a jurisdiction fails to verify their taxing
19jurisdiction boundaries to the Department in any given year,
20the Department shall assign retailers' occupation tax revenue
21from remote retail sales based on its best information. In that
22case, tax revenues from remote retail sales remitted to a
23taxing jurisdiction based on erroneous local tax boundary
24information will be assigned to the correct taxing jurisdiction
25on a prospective basis upon notice of the boundary error from a

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1local taxing jurisdiction. No certified service provider,
2remote retailer using a certified automated system, or taxpayer
3shall be liable under the Illinois False Claims Act for any
4error in the amount of tax computed or remitted in accordance
5with this Act. No certified service provider or remote retailer
6using a certified automated system shall be subject to a class
7action brought on behalf of customers and arising from, or in
8any way related to, an overpayment of retailers' occupation tax
9collected by the certified service provider if, at the time of
10the sale, they relied on information provided by the
11Department, regardless of whether that claim is characterized
12as a tax refund claim. Nothing in this Section affects a
13customer's right to seek a refund from the remote retailer as
14provided in this Act.
15 Section 5-97. Severability. The provisions of this Act are
16severable under Section 1.31 of the Statute on Statutes.
17
Article 10. Parking Excise Tax Act
18 Section 10-1. Short title. This Article may be cited as the
19Parking Excise Tax Act. References in this Article to "this
20Act" mean this Article.
21 Section 10-5. Definitions.
22 "Booking intermediary" means any person or entity that

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1facilitates the processing and fulfillment of reservation
2transactions between an operator and a person or entity
3desiring parking in a parking lot or garage of that operator.
4 "Charge or fee paid for parking" means the gross amount of
5consideration for the use or privilege of parking a motor
6vehicle in or upon any parking lot or garage in the State,
7collected by an operator and valued in money, whether received
8in money or otherwise, including cash, credits, property, and
9services, determined without any deduction for costs or
10expenses, but not including charges that are added to the
11charge or fee on account of the tax imposed by this Act or on
12account of any other tax imposed on the charge or fee. "Charge
13or fee paid for parking" excludes separately stated charges not
14for the use or privilege or parking and excludes amounts
15retained by or paid to a booking intermediary for services
16provided by the booking intermediary. If any separately stated
17charge is not optional, it shall be presumed that it is part of
18the charge for the use or privilege or parking.
19 "Department" means the Department of Revenue.
20 "Operator" means any person who engages in the business of
21operating a parking area or garage, or who, directly or through
22an agreement or arrangement with another party, collects the
23consideration for parking or storage of motor vehicles,
24recreational vehicles, or other self-propelled vehicles, at
25that parking place. This includes, but is not limited to, any
26facilitator or aggregator that collects from the purchaser the

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1charge or fee paid for parking. "Operator" does not include a
2bank, credit card company, payment processor, booking
3intermediary, or person whose involvement is limited to
4performing functions that are similar to those performed by a
5bank, credit card company, payment processor, or booking
6intermediary.
7 "Parking area or garage" means any real estate, building,
8structure, premises, enclosure or other place, whether
9enclosed or not, except a public way, within the State, where
10motor vehicles, recreational vehicles, or other self-propelled
11vehicles, are stored, housed or parked for hire, charge, fee or
12other valuable consideration in a condition ready for use, or
13where rent or compensation is paid to the owner, manager,
14operator or lessee of the premises for the housing, storing,
15sheltering, keeping or maintaining motor vehicles,
16recreational vehicles, or other self-propelled vehicles.
17"Parking area or garage" includes any parking area or garage,
18whether the vehicle is parked by the owner of the vehicle or by
19the operator or an attendant.
20 "Person" means any natural individual, firm, trust,
21estate, partnership, association, joint stock company, joint
22venture, corporation, limited liability company, or a
23receiver, trustee, guardian, or other representative appointed
24by order of any court.
25 "Purchase price" means the consideration paid for the
26purchase of a parking space in a parking area or garage, valued

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1in money, whether received in money or otherwise, including
2cash, gift cards, credits, and property, and shall be
3determined without any deduction on account of the cost of
4materials used, labor or service costs, or any other expense
5whatsoever.
6 "Purchase price" includes any and all charges that the
7recipient pays related to or incidental to obtaining the use or
8privilege of using a parking space in a parking area or garage,
9including but not limited to any and all related markups,
10service fees, convenience fees, facilitation fees,
11cancellation fees, overtime fees, or other such charges,
12regardless of terminology. However, "purchase price" shall not
13include consideration paid for:
14 (1) optional, separately stated charges not for the use
15 or privilege of using a parking space in the parking area
16 or garage;
17 (2) any charge for a dishonored check;
18 (3) any finance or credit charge, penalty or charge for
19 delayed payment, or discount for prompt payment;
20 (4) any purchase by a purchaser if the operator is
21 prohibited by federal or State Constitution, treaty,
22 convention, statute or court decision from collecting the
23 tax from such purchaser;
24 (5) the isolated or occasional sale of parking spaces
25 subject to tax under this Act by a person who does not hold
26 himself out as being engaged (or who does not habitually

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1 engage) in selling of parking spaces; and
2 (6) any amounts added to a purchaser's bills because of
3 charges made pursuant to the tax imposed by this Act. If
4 credit is extended, then the amount thereof shall be
5 included only as and when payments are made.
6 "Purchaser" means any person who acquires a parking space
7in a parking area or garage for use for valuable consideration.
8 "Use" means the exercise by any person of any right or
9power over, or the enjoyment of, a parking space in a parking
10area or garage subject to tax under this Act.
11 Section 10-10. Imposition of tax; calculation of tax.
12 (a) Beginning on January 1, 2020, a tax is imposed on the
13privilege of using in this State a parking space in a parking
14area or garage for the use of parking one or more motor
15vehicles, recreational vehicles, or other self-propelled
16vehicles, at the rate of:
17 (1) 6% of the purchase price for a parking space paid
18 for on an hourly, daily, or weekly basis; and
19 (2) 9% of the purchase price for a parking space paid
20 for on a monthly or annual basis.
21 (b) The tax shall be collected from the purchaser by the
22operator.
23 (c) An operator that has paid or remitted the tax imposed
24by this Act to another operator in connection with the same
25parking transaction, or the use of the same parking space, that

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1is subject to tax under this Act, shall be entitled to a credit
2for such tax paid or remitted against the amount of tax owed
3under this Act, provided that the other operator is registered
4under this Act. The operator claiming the credit shall have the
5burden of proving it is entitled to claim a credit.
6 (d) If any operator erroneously collects tax or collects
7more from the purchaser than the purchaser's liability for the
8transaction, the purchaser shall have a legal right to claim a
9refund of such amount from the operator. However, if such
10amount is not refunded to the purchaser for any reason, the
11operator is liable to pay such amount to the Department.
12 (e) The tax imposed by this Section is not imposed with
13respect to any transaction in interstate commerce, to the
14extent that the transaction may not, under the Constitution and
15statutes of the United States, be made the subject of taxation
16by this State.
17 Section 10-15. Filing of returns and deposit of proceeds.
18On or before the last day of each calendar month, every
19operator engaged in the business of providing to purchasers
20parking areas and garages in this State during the preceding
21calendar month shall file a return with the Department,
22stating:
23 (1) the name of the operator;
24 (2) the address of its principal place of business and
25 the address of the principal place of business from which

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1 it provides parking areas and garages in this State;
2 (3) the total amount of receipts received by the
3 operator during the preceding calendar month or quarter, as
4 the case may be, from sales of parking spaces to purchasers
5 in parking areas or garages during the preceding calendar
6 month or quarter;
7 (4) deductions allowed by law;
8 (5) the total amount of receipts received by the
9 operator during the preceding calendar month or quarter
10 upon which the tax was computed;
11 (6) the amount of tax due; and
12 (7) such other reasonable information as the
13 Department may require.
14 If an operator ceases to engage in the kind of business
15that makes it responsible for filing returns under this Act,
16then that operator shall file a final return under this Act
17with the Department on or before the last day of the month
18after discontinuing such business.
19 All returns required to be filed and payments required to
20be made under this Act shall be by electronic means. Taxpayers
21who demonstrate hardship in filing or paying electronically may
22petition the Department to waive the electronic filing or
23payment requirement, or both. The Department may require a
24separate return for the tax under this Act or combine the
25return for the tax under this Act with the return for other
26taxes.

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1 If the same person has more than one business registered
2with the Department under separate registrations under this
3Act, that person shall not file each return that is due as a
4single return covering all such registered businesses but shall
5file separate returns for each such registered business.
6 If the operator is a corporation, the return filed on
7behalf of that corporation shall be signed by the president,
8vice-president, secretary, or treasurer, or by a properly
9accredited agent of such corporation.
10 The operator filing the return under this Act shall, at the
11time of filing the return, pay to the Department the amount of
12tax imposed by this Act less a discount of 1.75%, not to exceed
13$1,000 per month, which is allowed to reimburse the operator
14for the expenses incurred in keeping records, preparing and
15filing returns, remitting the tax, and supplying data to the
16Department on request.
17 If any payment provided for in this Section exceeds the
18taxpayer's liabilities under this Act, as shown on an original
19return, the Department may authorize the taxpayer to credit
20such excess payment against liability subsequently to be
21remitted to the Department under this Act, in accordance with
22reasonable rules adopted by the Department. If the Department
23subsequently determines that all or any part of the credit
24taken was not actually due to the taxpayer, the taxpayer's
25discount shall be reduced by an amount equal to the difference
26between the discount as applied to the credit taken and that

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1actually due, and that taxpayer shall be liable for penalties
2and interest on such difference.
3 Section 10-20. Exemptions. The tax imposed by this Act
4shall not apply to:
5 (1) parking in a parking area or garage operated by the
6 federal government or its instrumentalities that has been
7 issued an active tax exemption number by the Department
8 under Section 1g of the Retailers' Occupation Tax Act; for
9 this exemption to apply, the parking area or garage must be
10 operated by the federal government or its
11 instrumentalities; the exemption under this paragraph (1)
12 does not apply if the parking area or garage is operated by
13 a third party, whether under a lease or other contractual
14 arrangement, or any other manner whatsoever;
15 (2) residential off-street parking for home or
16 apartment tenants or condominium occupants, if the
17 arrangement for such parking is provided in the home or
18 apartment lease or in a separate writing between the
19 landlord and tenant, or in a condominium agreement between
20 the condominium association and the owner, occupant, or
21 guest of a unit, whether the parking charge is payable to
22 the landlord, condominium association, or to the operator
23 of the parking spaces;
24 (3) parking by hospital employees in a parking space
25 that is owned and operated by the hospital for which they

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1 work; and
2 (4) parking in a parking area or garage where 3 or
3 fewer motor vehicles are stored, housed, or parked for
4 hire, charge, fee or other valuable consideration, if the
5 operator of the parking area or garage does not act as the
6 operator of more than a total of 3 parking spaces located
7 in the State; if any operator of parking areas or garages,
8 including any facilitator or aggregator, acts as an
9 operator of more than 3 parking spaces in total that are
10 located in the State, then this exemption shall not apply
11 to any of those spaces.
12 Section 10-25. Collection of tax.
13 (a) Beginning with bills issued or charges collected for a
14purchase of a parking space in a parking area or garage on and
15after January 1, 2020, the tax imposed by this Act shall be
16collected from the purchaser by the operator at the rate stated
17in Section 10-10 and shall be remitted to the Department as
18provided in this Act. All charges for parking spaces in a
19parking area or garage are presumed subject to tax collection.
20Operators shall collect the tax from purchasers by adding the
21tax to the amount of the purchase price received from the
22purchaser. The tax imposed by the Act shall when collected be
23stated as a distinct item separate and apart from the purchase
24price of the service subject to tax under this Act. However,
25where it is not possible to state the tax separately the

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1Department may by rule exempt such purchases from this
2requirement so long as purchasers are notified by language on
3the invoice or notified by a sign that the tax is included in
4the purchase price.
5 (b) Any person purchasing a parking space in a parking area
6or garage subject to tax under this Act as to which there has
7been no charge made to him of the tax imposed by Section 10-10,
8shall make payment of the tax imposed by Section 10-10 of this
9Act in the form and manner provided by the Department, such
10payment to be made to the Department in the manner and form
11required by the Department not later than the 20th day of the
12month following the month of purchase of the parking space.
13 Section 10-30. Registration of operators.
14 (a) A person who engages in business as an operator of a
15parking area or garage in this State shall register with the
16Department. Application for a certificate of registration
17shall be made to the Department, by electronic means, in the
18form and manner prescribed by the Department and shall contain
19any reasonable information the Department may require. Upon
20receipt of the application for a certificate of registration in
21proper form and manner, the Department shall issue to the
22applicant a certificate of registration. Operators who
23demonstrate that they do not have access to the Internet or
24demonstrate hardship in applying electronically may petition
25the Department to waive the electronic application

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1requirements.
2 (b) The Department may refuse to issue or reissue a
3certificate of registration to any applicant for the reasons
4set forth in Section 2505-380 of the Department of Revenue Law
5of the Civil Administrative Code of Illinois.
6 (c) Any person aggrieved by any decision of the Department
7under this Section may, within 20 days after notice of such
8decision, protest and request a hearing, whereupon the
9Department shall give notice to such person of the time and
10place fixed for such hearing and shall hold a hearing in
11conformity with the provisions of this Act and then issue its
12final administrative decision in the matter to such person. In
13the absence of such a protest within 20 days, the Department's
14decision shall become final without any further determination
15being made or notice given.
16 Section 10-35. Revocation of certificate of registration.
17 (a) The Department may, after notice and a hearing as
18provided in this Act, revoke the certificate of registration of
19any operator who violates any of the provisions of this Act or
20any rule adopted pursuant to this Act. Before revocation of a
21certificate of registration, the Department shall, within 90
22days after non-compliance and at least 7 days prior to the date
23of the hearing, give the operator so accused notice in writing
24of the charge against him or her, and on the date designated
25shall conduct a hearing upon this matter. The lapse of such

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190-day period shall not preclude the Department from conducting
2revocation proceedings at a later date if necessary. Any
3hearing held under this Section shall be conducted by the
4Director or by any officer or employee of the Department
5designated in writing by the Director.
6 (b) The Department may revoke a certificate of registration
7for the reasons set forth in Section 2505-380 of the Department
8of Revenue Law of the Civil Administrative Code of Illinois.
9 (c) Upon the hearing of any such proceeding, the Director
10or any officer or employee of the Department designated in
11writing by the Director may administer oaths, and the
12Department may procure by its subpoena the attendance of
13witnesses and, by its subpoena duces tecum, the production of
14relevant books and papers. Any circuit court, upon application
15either of the operator or of the Department, may, by order duly
16entered, require the attendance of witnesses and the production
17of relevant books and papers before the Department in any
18hearing relating to the revocation of certificates of
19registration. Upon refusal or neglect to obey the order of the
20court, the court may compel obedience thereof by proceedings
21for contempt.
22 (d) The Department may, by application to any circuit
23court, obtain an injunction requiring any person who engages in
24business as an operator under this Act to obtain a certificate
25of registration. Upon refusal or neglect to obey the order of
26the court, the court may compel obedience by proceedings for

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1contempt.
2 Section 10-40. Valet services.
3 (a) Persons engaged in the business of providing valet
4services are subject to the tax imposed by this Act on the
5purchase price received in connection with their valet parking
6operations.
7 (b) Persons engaged in the business of providing valet
8services are entitled to take the credit in subsection (c) of
9Section 10-10.
10 (c) Tips received by persons parking cars for persons
11engaged in the business of providing valet services are not
12subject to the tax imposed by this Act if the tips are retained
13by the person receiving the tip. If the tips are turned over to
14the valet business, the tips shall be included in the purchase
15price.
16 Section 10-45. Tax collected as debt owed to State. The tax
17herein required to be collected by any operator or valet
18business and any such tax collected by that person, shall
19constitute a debt owed by that person to this State.
20 Section 10-50. Incorporation by reference. All of the
21provisions of Sections 1, 2a, 2b, 3 (except provisions relating
22to transaction returns and except for provisions that are
23inconsistent with this Act), in respect to all provisions

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1therein other than the State rate of tax) 4, 5, 5a, 5b, 5c, 5d,
25e, 5f, 5g, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and
313 of the Retailers' Occupation Tax Act that are not
4inconsistent with this Act, and all provisions of the Uniform
5Penalty and Interest Act shall apply, as far as practicable, to
6the subject matter of this Act to the same extent as if such
7provisions were included in this Act.
8 Section 10-55. Deposit of proceeds from parking excise tax.
9The moneys received by the Department from the tax imposed by
10this Act shall be deposited into the Capital Projects Fund.
11 Section 10-60. Illinois False Claims Act. No acts or
12omissions by an operator regarding the charging of taxes under
13this Act shall be a basis for filing an action by a private
14person under the Illinois False Claims Act.
15 The Department shall have the sole authority to bring an
16administrative action resulting from information provided by
17any person alleging a false claim, statement or records, as
18defined in Section 3 of the Illinois False Claims Act
19pertaining to any tax administered by the Department under this
20Act.
21
Article 15. Amendatory Provisions
22 Section 15-5. The Illinois Administrative Procedure Act is

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1amended by changing Section 5-45 as follows:
2 (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
3 Sec. 5-45. Emergency rulemaking.
4 (a) "Emergency" means the existence of any situation that
5any agency finds reasonably constitutes a threat to the public
6interest, safety, or welfare.
7 (b) If any agency finds that an emergency exists that
8requires adoption of a rule upon fewer days than is required by
9Section 5-40 and states in writing its reasons for that
10finding, the agency may adopt an emergency rule without prior
11notice or hearing upon filing a notice of emergency rulemaking
12with the Secretary of State under Section 5-70. The notice
13shall include the text of the emergency rule and shall be
14published in the Illinois Register. Consent orders or other
15court orders adopting settlements negotiated by an agency may
16be adopted under this Section. Subject to applicable
17constitutional or statutory provisions, an emergency rule
18becomes effective immediately upon filing under Section 5-65 or
19at a stated date less than 10 days thereafter. The agency's
20finding and a statement of the specific reasons for the finding
21shall be filed with the rule. The agency shall take reasonable
22and appropriate measures to make emergency rules known to the
23persons who may be affected by them.
24 (c) An emergency rule may be effective for a period of not
25longer than 150 days, but the agency's authority to adopt an

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1identical rule under Section 5-40 is not precluded. No
2emergency rule may be adopted more than once in any 24-month
3period, except that this limitation on the number of emergency
4rules that may be adopted in a 24-month period does not apply
5to (i) emergency rules that make additions to and deletions
6from the Drug Manual under Section 5-5.16 of the Illinois
7Public Aid Code or the generic drug formulary under Section
83.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
9emergency rules adopted by the Pollution Control Board before
10July 1, 1997 to implement portions of the Livestock Management
11Facilities Act, (iii) emergency rules adopted by the Illinois
12Department of Public Health under subsections (a) through (i)
13of Section 2 of the Department of Public Health Act when
14necessary to protect the public's health, (iv) emergency rules
15adopted pursuant to subsection (n) of this Section, (v)
16emergency rules adopted pursuant to subsection (o) of this
17Section, or (vi) emergency rules adopted pursuant to subsection
18(c-5) of this Section. Two or more emergency rules having
19substantially the same purpose and effect shall be deemed to be
20a single rule for purposes of this Section.
21 (c-5) To facilitate the maintenance of the program of group
22health benefits provided to annuitants, survivors, and retired
23employees under the State Employees Group Insurance Act of
241971, rules to alter the contributions to be paid by the State,
25annuitants, survivors, retired employees, or any combination
26of those entities, for that program of group health benefits,

10100SB0690ham002- 24 -LRB101 04451 SMS 61506 a
1shall be adopted as emergency rules. The adoption of those
2rules shall be considered an emergency and necessary for the
3public interest, safety, and welfare.
4 (d) In order to provide for the expeditious and timely
5implementation of the State's fiscal year 1999 budget,
6emergency rules to implement any provision of Public Act 90-587
7or 90-588 or any other budget initiative for fiscal year 1999
8may be adopted in accordance with this Section by the agency
9charged with administering that provision or initiative,
10except that the 24-month limitation on the adoption of
11emergency rules and the provisions of Sections 5-115 and 5-125
12do not apply to rules adopted under this subsection (d). The
13adoption of emergency rules authorized by this subsection (d)
14shall be deemed to be necessary for the public interest,
15safety, and welfare.
16 (e) In order to provide for the expeditious and timely
17implementation of the State's fiscal year 2000 budget,
18emergency rules to implement any provision of Public Act 91-24
19or any other budget initiative for fiscal year 2000 may be
20adopted in accordance with this Section by the agency charged
21with administering that provision or initiative, except that
22the 24-month limitation on the adoption of emergency rules and
23the provisions of Sections 5-115 and 5-125 do not apply to
24rules adopted under this subsection (e). The adoption of
25emergency rules authorized by this subsection (e) shall be
26deemed to be necessary for the public interest, safety, and

10100SB0690ham002- 25 -LRB101 04451 SMS 61506 a
1welfare.
2 (f) In order to provide for the expeditious and timely
3implementation of the State's fiscal year 2001 budget,
4emergency rules to implement any provision of Public Act 91-712
5or any other budget initiative for fiscal year 2001 may be
6adopted in accordance with this Section by the agency charged
7with administering that provision or initiative, except that
8the 24-month limitation on the adoption of emergency rules and
9the provisions of Sections 5-115 and 5-125 do not apply to
10rules adopted under this subsection (f). The adoption of
11emergency rules authorized by this subsection (f) shall be
12deemed to be necessary for the public interest, safety, and
13welfare.
14 (g) In order to provide for the expeditious and timely
15implementation of the State's fiscal year 2002 budget,
16emergency rules to implement any provision of Public Act 92-10
17or any other budget initiative for fiscal year 2002 may be
18adopted in accordance with this Section by the agency charged
19with administering that provision or initiative, except that
20the 24-month limitation on the adoption of emergency rules and
21the provisions of Sections 5-115 and 5-125 do not apply to
22rules adopted under this subsection (g). The adoption of
23emergency rules authorized by this subsection (g) shall be
24deemed to be necessary for the public interest, safety, and
25welfare.
26 (h) In order to provide for the expeditious and timely

10100SB0690ham002- 26 -LRB101 04451 SMS 61506 a
1implementation of the State's fiscal year 2003 budget,
2emergency rules to implement any provision of Public Act 92-597
3or any other budget initiative for fiscal year 2003 may be
4adopted in accordance with this Section by the agency charged
5with administering that provision or initiative, except that
6the 24-month limitation on the adoption of emergency rules and
7the provisions of Sections 5-115 and 5-125 do not apply to
8rules adopted under this subsection (h). The adoption of
9emergency rules authorized by this subsection (h) shall be
10deemed to be necessary for the public interest, safety, and
11welfare.
12 (i) In order to provide for the expeditious and timely
13implementation of the State's fiscal year 2004 budget,
14emergency rules to implement any provision of Public Act 93-20
15or any other budget initiative for fiscal year 2004 may be
16adopted in accordance with this Section by the agency charged
17with administering that provision or initiative, except that
18the 24-month limitation on the adoption of emergency rules and
19the provisions of Sections 5-115 and 5-125 do not apply to
20rules adopted under this subsection (i). The adoption of
21emergency rules authorized by this subsection (i) shall be
22deemed to be necessary for the public interest, safety, and
23welfare.
24 (j) In order to provide for the expeditious and timely
25implementation of the provisions of the State's fiscal year
262005 budget as provided under the Fiscal Year 2005 Budget

10100SB0690ham002- 27 -LRB101 04451 SMS 61506 a
1Implementation (Human Services) Act, emergency rules to
2implement any provision of the Fiscal Year 2005 Budget
3Implementation (Human Services) Act may be adopted in
4accordance with this Section by the agency charged with
5administering that provision, except that the 24-month
6limitation on the adoption of emergency rules and the
7provisions of Sections 5-115 and 5-125 do not apply to rules
8adopted under this subsection (j). The Department of Public Aid
9may also adopt rules under this subsection (j) necessary to
10administer the Illinois Public Aid Code and the Children's
11Health Insurance Program Act. The adoption of emergency rules
12authorized by this subsection (j) shall be deemed to be
13necessary for the public interest, safety, and welfare.
14 (k) In order to provide for the expeditious and timely
15implementation of the provisions of the State's fiscal year
162006 budget, emergency rules to implement any provision of
17Public Act 94-48 or any other budget initiative for fiscal year
182006 may be adopted in accordance with this Section by the
19agency charged with administering that provision or
20initiative, except that the 24-month limitation on the adoption
21of emergency rules and the provisions of Sections 5-115 and
225-125 do not apply to rules adopted under this subsection (k).
23The Department of Healthcare and Family Services may also adopt
24rules under this subsection (k) necessary to administer the
25Illinois Public Aid Code, the Senior Citizens and Persons with
26Disabilities Property Tax Relief Act, the Senior Citizens and

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1Disabled Persons Prescription Drug Discount Program Act (now
2the Illinois Prescription Drug Discount Program Act), and the
3Children's Health Insurance Program Act. The adoption of
4emergency rules authorized by this subsection (k) shall be
5deemed to be necessary for the public interest, safety, and
6welfare.
7 (l) In order to provide for the expeditious and timely
8implementation of the provisions of the State's fiscal year
92007 budget, the Department of Healthcare and Family Services
10may adopt emergency rules during fiscal year 2007, including
11rules effective July 1, 2007, in accordance with this
12subsection to the extent necessary to administer the
13Department's responsibilities with respect to amendments to
14the State plans and Illinois waivers approved by the federal
15Centers for Medicare and Medicaid Services necessitated by the
16requirements of Title XIX and Title XXI of the federal Social
17Security Act. The adoption of emergency rules authorized by
18this subsection (l) shall be deemed to be necessary for the
19public interest, safety, and welfare.
20 (m) In order to provide for the expeditious and timely
21implementation of the provisions of the State's fiscal year
222008 budget, the Department of Healthcare and Family Services
23may adopt emergency rules during fiscal year 2008, including
24rules effective July 1, 2008, in accordance with this
25subsection to the extent necessary to administer the
26Department's responsibilities with respect to amendments to

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1the State plans and Illinois waivers approved by the federal
2Centers for Medicare and Medicaid Services necessitated by the
3requirements of Title XIX and Title XXI of the federal Social
4Security Act. The adoption of emergency rules authorized by
5this subsection (m) shall be deemed to be necessary for the
6public interest, safety, and welfare.
7 (n) In order to provide for the expeditious and timely
8implementation of the provisions of the State's fiscal year
92010 budget, emergency rules to implement any provision of
10Public Act 96-45 or any other budget initiative authorized by
11the 96th General Assembly for fiscal year 2010 may be adopted
12in accordance with this Section by the agency charged with
13administering that provision or initiative. The adoption of
14emergency rules authorized by this subsection (n) shall be
15deemed to be necessary for the public interest, safety, and
16welfare. The rulemaking authority granted in this subsection
17(n) shall apply only to rules promulgated during Fiscal Year
182010.
19 (o) In order to provide for the expeditious and timely
20implementation of the provisions of the State's fiscal year
212011 budget, emergency rules to implement any provision of
22Public Act 96-958 or any other budget initiative authorized by
23the 96th General Assembly for fiscal year 2011 may be adopted
24in accordance with this Section by the agency charged with
25administering that provision or initiative. The adoption of
26emergency rules authorized by this subsection (o) is deemed to

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1be necessary for the public interest, safety, and welfare. The
2rulemaking authority granted in this subsection (o) applies
3only to rules promulgated on or after July 1, 2010 (the
4effective date of Public Act 96-958) through June 30, 2011.
5 (p) In order to provide for the expeditious and timely
6implementation of the provisions of Public Act 97-689,
7emergency rules to implement any provision of Public Act 97-689
8may be adopted in accordance with this subsection (p) by the
9agency charged with administering that provision or
10initiative. The 150-day limitation of the effective period of
11emergency rules does not apply to rules adopted under this
12subsection (p), and the effective period may continue through
13June 30, 2013. The 24-month limitation on the adoption of
14emergency rules does not apply to rules adopted under this
15subsection (p). The adoption of emergency rules authorized by
16this subsection (p) is deemed to be necessary for the public
17interest, safety, and welfare.
18 (q) In order to provide for the expeditious and timely
19implementation of the provisions of Articles 7, 8, 9, 11, and
2012 of Public Act 98-104, emergency rules to implement any
21provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
22may be adopted in accordance with this subsection (q) by the
23agency charged with administering that provision or
24initiative. The 24-month limitation on the adoption of
25emergency rules does not apply to rules adopted under this
26subsection (q). The adoption of emergency rules authorized by

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1this subsection (q) is deemed to be necessary for the public
2interest, safety, and welfare.
3 (r) In order to provide for the expeditious and timely
4implementation of the provisions of Public Act 98-651,
5emergency rules to implement Public Act 98-651 may be adopted
6in accordance with this subsection (r) by the Department of
7Healthcare and Family Services. The 24-month limitation on the
8adoption of emergency rules does not apply to rules adopted
9under this subsection (r). The adoption of emergency rules
10authorized by this subsection (r) is deemed to be necessary for
11the public interest, safety, and welfare.
12 (s) In order to provide for the expeditious and timely
13implementation of the provisions of Sections 5-5b.1 and 5A-2 of
14the Illinois Public Aid Code, emergency rules to implement any
15provision of Section 5-5b.1 or Section 5A-2 of the Illinois
16Public Aid Code may be adopted in accordance with this
17subsection (s) by the Department of Healthcare and Family
18Services. The rulemaking authority granted in this subsection
19(s) shall apply only to those rules adopted prior to July 1,
202015. Notwithstanding any other provision of this Section, any
21emergency rule adopted under this subsection (s) shall only
22apply to payments made for State fiscal year 2015. The adoption
23of emergency rules authorized by this subsection (s) is deemed
24to be necessary for the public interest, safety, and welfare.
25 (t) In order to provide for the expeditious and timely
26implementation of the provisions of Article II of Public Act

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199-6, emergency rules to implement the changes made by Article
2II of Public Act 99-6 to the Emergency Telephone System Act may
3be adopted in accordance with this subsection (t) by the
4Department of State Police. The rulemaking authority granted in
5this subsection (t) shall apply only to those rules adopted
6prior to July 1, 2016. The 24-month limitation on the adoption
7of emergency rules does not apply to rules adopted under this
8subsection (t). The adoption of emergency rules authorized by
9this subsection (t) is deemed to be necessary for the public
10interest, safety, and welfare.
11 (u) In order to provide for the expeditious and timely
12implementation of the provisions of the Burn Victims Relief
13Act, emergency rules to implement any provision of the Act may
14be adopted in accordance with this subsection (u) by the
15Department of Insurance. The rulemaking authority granted in
16this subsection (u) shall apply only to those rules adopted
17prior to December 31, 2015. The adoption of emergency rules
18authorized by this subsection (u) is deemed to be necessary for
19the public interest, safety, and welfare.
20 (v) In order to provide for the expeditious and timely
21implementation of the provisions of Public Act 99-516,
22emergency rules to implement Public Act 99-516 may be adopted
23in accordance with this subsection (v) by the Department of
24Healthcare and Family Services. The 24-month limitation on the
25adoption of emergency rules does not apply to rules adopted
26under this subsection (v). The adoption of emergency rules

10100SB0690ham002- 33 -LRB101 04451 SMS 61506 a
1authorized by this subsection (v) is deemed to be necessary for
2the public interest, safety, and welfare.
3 (w) In order to provide for the expeditious and timely
4implementation of the provisions of Public Act 99-796,
5emergency rules to implement the changes made by Public Act
699-796 may be adopted in accordance with this subsection (w) by
7the Adjutant General. The adoption of emergency rules
8authorized by this subsection (w) is deemed to be necessary for
9the public interest, safety, and welfare.
10 (x) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 99-906,
12emergency rules to implement subsection (i) of Section 16-115D,
13subsection (g) of Section 16-128A, and subsection (a) of
14Section 16-128B of the Public Utilities Act may be adopted in
15accordance with this subsection (x) by the Illinois Commerce
16Commission. The rulemaking authority granted in this
17subsection (x) shall apply only to those rules adopted within
18180 days after June 1, 2017 (the effective date of Public Act
1999-906). The adoption of emergency rules authorized by this
20subsection (x) is deemed to be necessary for the public
21interest, safety, and welfare.
22 (y) In order to provide for the expeditious and timely
23implementation of the provisions of Public Act 100-23,
24emergency rules to implement the changes made by Public Act
25100-23 to Section 4.02 of the Illinois Act on the Aging,
26Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,

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1Section 55-30 of the Alcoholism and Other Drug Abuse and
2Dependency Act, and Sections 74 and 75 of the Mental Health and
3Developmental Disabilities Administrative Act may be adopted
4in accordance with this subsection (y) by the respective
5Department. The adoption of emergency rules authorized by this
6subsection (y) is deemed to be necessary for the public
7interest, safety, and welfare.
8 (z) In order to provide for the expeditious and timely
9implementation of the provisions of Public Act 100-554,
10emergency rules to implement the changes made by Public Act
11100-554 to Section 4.7 of the Lobbyist Registration Act may be
12adopted in accordance with this subsection (z) by the Secretary
13of State. The adoption of emergency rules authorized by this
14subsection (z) is deemed to be necessary for the public
15interest, safety, and welfare.
16 (aa) In order to provide for the expeditious and timely
17initial implementation of the changes made to Articles 5, 5A,
1812, and 14 of the Illinois Public Aid Code under the provisions
19of Public Act 100-581, the Department of Healthcare and Family
20Services may adopt emergency rules in accordance with this
21subsection (aa). The 24-month limitation on the adoption of
22emergency rules does not apply to rules to initially implement
23the changes made to Articles 5, 5A, 12, and 14 of the Illinois
24Public Aid Code adopted under this subsection (aa). The
25adoption of emergency rules authorized by this subsection (aa)
26is deemed to be necessary for the public interest, safety, and

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1welfare.
2 (bb) In order to provide for the expeditious and timely
3implementation of the provisions of Public Act 100-587,
4emergency rules to implement the changes made by Public Act
5100-587 to Section 4.02 of the Illinois Act on the Aging,
6Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
7subsection (b) of Section 55-30 of the Alcoholism and Other
8Drug Abuse and Dependency Act, Section 5-104 of the Specialized
9Mental Health Rehabilitation Act of 2013, and Section 75 and
10subsection (b) of Section 74 of the Mental Health and
11Developmental Disabilities Administrative Act may be adopted
12in accordance with this subsection (bb) by the respective
13Department. The adoption of emergency rules authorized by this
14subsection (bb) is deemed to be necessary for the public
15interest, safety, and welfare.
16 (cc) In order to provide for the expeditious and timely
17implementation of the provisions of Public Act 100-587,
18emergency rules may be adopted in accordance with this
19subsection (cc) to implement the changes made by Public Act
20100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
21Pension Code by the Board created under Article 14 of the Code;
22Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
23the Board created under Article 15 of the Code; and Sections
2416-190.5 and 16-190.6 of the Illinois Pension Code by the Board
25created under Article 16 of the Code. The adoption of emergency
26rules authorized by this subsection (cc) is deemed to be

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1necessary for the public interest, safety, and welfare.
2 (dd) In order to provide for the expeditious and timely
3implementation of the provisions of Public Act 100-864,
4emergency rules to implement the changes made by Public Act
5100-864 to Section 3.35 of the Newborn Metabolic Screening Act
6may be adopted in accordance with this subsection (dd) by the
7Secretary of State. The adoption of emergency rules authorized
8by this subsection (dd) is deemed to be necessary for the
9public interest, safety, and welfare.
10 (ee) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 100-1172 this
12amendatory Act of the 100th General Assembly, emergency rules
13implementing the Illinois Underground Natural Gas Storage
14Safety Act may be adopted in accordance with this subsection by
15the Department of Natural Resources. The adoption of emergency
16rules authorized by this subsection is deemed to be necessary
17for the public interest, safety, and welfare.
18 (ff) (ee) In order to provide for the expeditious and
19timely initial implementation of the changes made to Articles
205A and 14 of the Illinois Public Aid Code under the provisions
21of Public Act 100-1181 this amendatory Act of the 100th General
22Assembly, the Department of Healthcare and Family Services may
23on a one-time-only basis adopt emergency rules in accordance
24with this subsection (ff) (ee). The 24-month limitation on the
25adoption of emergency rules does not apply to rules to
26initially implement the changes made to Articles 5A and 14 of

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1the Illinois Public Aid Code adopted under this subsection (ff)
2(ee). The adoption of emergency rules authorized by this
3subsection (ff) (ee) is deemed to be necessary for the public
4interest, safety, and welfare.
5 (gg) (ff) In order to provide for the expeditious and
6timely implementation of the provisions of Public Act 101-1
7this amendatory Act of the 101st General Assembly, emergency
8rules may be adopted by the Department of Labor in accordance
9with this subsection (gg) (ff) to implement the changes made by
10Public Act 101-1 this amendatory Act of the 101st General
11Assembly to the Minimum Wage Law. The adoption of emergency
12rules authorized by this subsection (gg) (ff) is deemed to be
13necessary for the public interest, safety, and welfare.
14 (hh) In order to provide for the expeditious and timely
15implementation of the provisions of the Leveling the Playing
16Field for Illinois Retail Act, emergency rules may be adopted
17in accordance with this subsection (hh) to implement the
18changes made by the Leveling the Playing Field for Illinois
19Retail Act. The adoption of emergency rules authorized by this
20subsection (hh) is deemed to be necessary for the public
21interest, safety, and welfare.
22(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
23100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
246-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
25100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
263-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)

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1 Section 15-10. The State Finance Act is amended by adding
2Sections 5.891, 5.893, and 5.894 as follows:
3 (30 ILCS 105/5.891 new)
4 Sec. 5.891. The Transportation Renewal Fund.
5 (30 ILCS 105/5.893 new)
6 Sec. 5.893. The Regional Transportation Authority Capital
7Improvement Fund.
8 (30 ILCS 105/5.894 new)
9 Sec. 5.894. The Downstate Mass Transportation Capital
10Improvement Fund.
11 Section 15-15. The Use Tax Act is amended by changing
12Sections 2 as follows:
13 (35 ILCS 105/2) (from Ch. 120, par. 439.2)
14 Sec. 2. Definitions.
15 "Use" means the exercise by any person of any right or
16power over tangible personal property incident to the ownership
17of that property, except that it does not include the sale of
18such property in any form as tangible personal property in the
19regular course of business to the extent that such property is
20not first subjected to a use for which it was purchased, and

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1does not include the use of such property by its owner for
2demonstration purposes: Provided that the property purchased
3is deemed to be purchased for the purpose of resale, despite
4first being used, to the extent to which it is resold as an
5ingredient of an intentionally produced product or by-product
6of manufacturing. "Use" does not mean the demonstration use or
7interim use of tangible personal property by a retailer before
8he sells that tangible personal property. For watercraft or
9aircraft, if the period of demonstration use or interim use by
10the retailer exceeds 18 months, the retailer shall pay on the
11retailers' original cost price the tax imposed by this Act, and
12no credit for that tax is permitted if the watercraft or
13aircraft is subsequently sold by the retailer. "Use" does not
14mean the physical incorporation of tangible personal property,
15to the extent not first subjected to a use for which it was
16purchased, as an ingredient or constituent, into other tangible
17personal property (a) which is sold in the regular course of
18business or (b) which the person incorporating such ingredient
19or constituent therein has undertaken at the time of such
20purchase to cause to be transported in interstate commerce to
21destinations outside the State of Illinois: Provided that the
22property purchased is deemed to be purchased for the purpose of
23resale, despite first being used, to the extent to which it is
24resold as an ingredient of an intentionally produced product or
25by-product of manufacturing.
26 "Watercraft" means a Class 2, Class 3, or Class 4

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1watercraft as defined in Section 3-2 of the Boat Registration
2and Safety Act, a personal watercraft, or any boat equipped
3with an inboard motor.
4 "Purchase at retail" means the acquisition of the ownership
5of or title to tangible personal property through a sale at
6retail.
7 "Purchaser" means anyone who, through a sale at retail,
8acquires the ownership of tangible personal property for a
9valuable consideration.
10 "Sale at retail" means any transfer of the ownership of or
11title to tangible personal property to a purchaser, for the
12purpose of use, and not for the purpose of resale in any form
13as tangible personal property to the extent not first subjected
14to a use for which it was purchased, for a valuable
15consideration: Provided that the property purchased is deemed
16to be purchased for the purpose of resale, despite first being
17used, to the extent to which it is resold as an ingredient of
18an intentionally produced product or by-product of
19manufacturing. For this purpose, slag produced as an incident
20to manufacturing pig iron or steel and sold is considered to be
21an intentionally produced by-product of manufacturing. "Sale
22at retail" includes any such transfer made for resale unless
23made in compliance with Section 2c of the Retailers' Occupation
24Tax Act, as incorporated by reference into Section 12 of this
25Act. Transactions whereby the possession of the property is
26transferred but the seller retains the title as security for

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1payment of the selling price are sales.
2 "Sale at retail" shall also be construed to include any
3Illinois florist's sales transaction in which the purchase
4order is received in Illinois by a florist and the sale is for
5use or consumption, but the Illinois florist has a florist in
6another state deliver the property to the purchaser or the
7purchaser's donee in such other state.
8 Nonreusable tangible personal property that is used by
9persons engaged in the business of operating a restaurant,
10cafeteria, or drive-in is a sale for resale when it is
11transferred to customers in the ordinary course of business as
12part of the sale of food or beverages and is used to deliver,
13package, or consume food or beverages, regardless of where
14consumption of the food or beverages occurs. Examples of those
15items include, but are not limited to nonreusable, paper and
16plastic cups, plates, baskets, boxes, sleeves, buckets or other
17containers, utensils, straws, placemats, napkins, doggie bags,
18and wrapping or packaging materials that are transferred to
19customers as part of the sale of food or beverages in the
20ordinary course of business.
21 The purchase, employment and transfer of such tangible
22personal property as newsprint and ink for the primary purpose
23of conveying news (with or without other information) is not a
24purchase, use or sale of tangible personal property.
25 "Selling price" means the consideration for a sale valued
26in money whether received in money or otherwise, including

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1cash, credits, property other than as hereinafter provided, and
2services, but, prior to January 1, 2020, not including the
3value of or credit given for traded-in tangible personal
4property where the item that is traded-in is of like kind and
5character as that which is being sold; beginning January 1,
62020, "selling price" includes the portion of the value of or
7credit given for traded-in tangible personal property of like
8kind and character as that which is being sold that exceeds
9$10,000. "Selling price" , and shall be determined without any
10deduction on account of the cost of the property sold, the cost
11of materials used, labor or service cost or any other expense
12whatsoever, but does not include interest or finance charges
13which appear as separate items on the bill of sale or sales
14contract nor charges that are added to prices by sellers on
15account of the seller's tax liability under the "Retailers'
16Occupation Tax Act", or on account of the seller's duty to
17collect, from the purchaser, the tax that is imposed by this
18Act, or, except as otherwise provided with respect to any
19cigarette tax imposed by a home rule unit, on account of the
20seller's tax liability under any local occupation tax
21administered by the Department, or, except as otherwise
22provided with respect to any cigarette tax imposed by a home
23rule unit on account of the seller's duty to collect, from the
24purchasers, the tax that is imposed under any local use tax
25administered by the Department. Effective December 1, 1985,
26"selling price" shall include charges that are added to prices

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1by sellers on account of the seller's tax liability under the
2Cigarette Tax Act, on account of the seller's duty to collect,
3from the purchaser, the tax imposed under the Cigarette Use Tax
4Act, and on account of the seller's duty to collect, from the
5purchaser, any cigarette tax imposed by a home rule unit.
6 Notwithstanding any law to the contrary, for any motor
7vehicle, as defined in Section 1-146 of the Vehicle Code, that
8is sold on or after January 1, 2015 for the purpose of leasing
9the vehicle for a defined period that is longer than one year
10and (1) is a motor vehicle of the second division that: (A) is
11a self-contained motor vehicle designed or permanently
12converted to provide living quarters for recreational,
13camping, or travel use, with direct walk through access to the
14living quarters from the driver's seat; (B) is of the van
15configuration designed for the transportation of not less than
167 nor more than 16 passengers; or (C) has a gross vehicle
17weight rating of 8,000 pounds or less or (2) is a motor vehicle
18of the first division, "selling price" or "amount of sale"
19means the consideration received by the lessor pursuant to the
20lease contract, including amounts due at lease signing and all
21monthly or other regular payments charged over the term of the
22lease. Also included in the selling price is any amount
23received by the lessor from the lessee for the leased vehicle
24that is not calculated at the time the lease is executed,
25including, but not limited to, excess mileage charges and
26charges for excess wear and tear. For sales that occur in

10100SB0690ham002- 44 -LRB101 04451 SMS 61506 a
1Illinois, with respect to any amount received by the lessor
2from the lessee for the leased vehicle that is not calculated
3at the time the lease is executed, the lessor who purchased the
4motor vehicle does not incur the tax imposed by the Use Tax Act
5on those amounts, and the retailer who makes the retail sale of
6the motor vehicle to the lessor is not required to collect the
7tax imposed by this Act or to pay the tax imposed by the
8Retailers' Occupation Tax Act on those amounts. However, the
9lessor who purchased the motor vehicle assumes the liability
10for reporting and paying the tax on those amounts directly to
11the Department in the same form (Illinois Retailers' Occupation
12Tax, and local retailers' occupation taxes, if applicable) in
13which the retailer would have reported and paid such tax if the
14retailer had accounted for the tax to the Department. For
15amounts received by the lessor from the lessee that are not
16calculated at the time the lease is executed, the lessor must
17file the return and pay the tax to the Department by the due
18date otherwise required by this Act for returns other than
19transaction returns. If the retailer is entitled under this Act
20to a discount for collecting and remitting the tax imposed
21under this Act to the Department with respect to the sale of
22the motor vehicle to the lessor, then the right to the discount
23provided in this Act shall be transferred to the lessor with
24respect to the tax paid by the lessor for any amount received
25by the lessor from the lessee for the leased vehicle that is
26not calculated at the time the lease is executed; provided that

10100SB0690ham002- 45 -LRB101 04451 SMS 61506 a
1the discount is only allowed if the return is timely filed and
2for amounts timely paid. The "selling price" of a motor vehicle
3that is sold on or after January 1, 2015 for the purpose of
4leasing for a defined period of longer than one year shall not
5be reduced by the value of or credit given for traded-in
6tangible personal property owned by the lessor, nor shall it be
7reduced by the value of or credit given for traded-in tangible
8personal property owned by the lessee, regardless of whether
9the trade-in value thereof is assigned by the lessee to the
10lessor. In the case of a motor vehicle that is sold for the
11purpose of leasing for a defined period of longer than one
12year, the sale occurs at the time of the delivery of the
13vehicle, regardless of the due date of any lease payments. A
14lessor who incurs a Retailers' Occupation Tax liability on the
15sale of a motor vehicle coming off lease may not take a credit
16against that liability for the Use Tax the lessor paid upon the
17purchase of the motor vehicle (or for any tax the lessor paid
18with respect to any amount received by the lessor from the
19lessee for the leased vehicle that was not calculated at the
20time the lease was executed) if the selling price of the motor
21vehicle at the time of purchase was calculated using the
22definition of "selling price" as defined in this paragraph.
23Notwithstanding any other provision of this Act to the
24contrary, lessors shall file all returns and make all payments
25required under this paragraph to the Department by electronic
26means in the manner and form as required by the Department.

10100SB0690ham002- 46 -LRB101 04451 SMS 61506 a
1This paragraph does not apply to leases of motor vehicles for
2which, at the time the lease is entered into, the term of the
3lease is not a defined period, including leases with a defined
4initial period with the option to continue the lease on a
5month-to-month or other basis beyond the initial defined
6period.
7 The phrase "like kind and character" shall be liberally
8construed (including but not limited to any form of motor
9vehicle for any form of motor vehicle, or any kind of farm or
10agricultural implement for any other kind of farm or
11agricultural implement), while not including a kind of item
12which, if sold at retail by that retailer, would be exempt from
13retailers' occupation tax and use tax as an isolated or
14occasional sale.
15 "Department" means the Department of Revenue.
16 "Person" means any natural individual, firm, partnership,
17association, joint stock company, joint adventure, public or
18private corporation, limited liability company, or a receiver,
19executor, trustee, guardian or other representative appointed
20by order of any court.
21 "Retailer" means and includes every person engaged in the
22business of making sales at retail as defined in this Section.
23 A person who holds himself or herself out as being engaged
24(or who habitually engages) in selling tangible personal
25property at retail is a retailer hereunder with respect to such
26sales (and not primarily in a service occupation)

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1notwithstanding the fact that such person designs and produces
2such tangible personal property on special order for the
3purchaser and in such a way as to render the property of value
4only to such purchaser, if such tangible personal property so
5produced on special order serves substantially the same
6function as stock or standard items of tangible personal
7property that are sold at retail.
8 A person whose activities are organized and conducted
9primarily as a not-for-profit service enterprise, and who
10engages in selling tangible personal property at retail
11(whether to the public or merely to members and their guests)
12is a retailer with respect to such transactions, excepting only
13a person organized and operated exclusively for charitable,
14religious or educational purposes either (1), to the extent of
15sales by such person to its members, students, patients or
16inmates of tangible personal property to be used primarily for
17the purposes of such person, or (2), to the extent of sales by
18such person of tangible personal property which is not sold or
19offered for sale by persons organized for profit. The selling
20of school books and school supplies by schools at retail to
21students is not "primarily for the purposes of" the school
22which does such selling. This paragraph does not apply to nor
23subject to taxation occasional dinners, social or similar
24activities of a person organized and operated exclusively for
25charitable, religious or educational purposes, whether or not
26such activities are open to the public.

10100SB0690ham002- 48 -LRB101 04451 SMS 61506 a
1 A person who is the recipient of a grant or contract under
2Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
3serves meals to participants in the federal Nutrition Program
4for the Elderly in return for contributions established in
5amount by the individual participant pursuant to a schedule of
6suggested fees as provided for in the federal Act is not a
7retailer under this Act with respect to such transactions.
8 Persons who engage in the business of transferring tangible
9personal property upon the redemption of trading stamps are
10retailers hereunder when engaged in such business.
11 The isolated or occasional sale of tangible personal
12property at retail by a person who does not hold himself out as
13being engaged (or who does not habitually engage) in selling
14such tangible personal property at retail or a sale through a
15bulk vending machine does not make such person a retailer
16hereunder. However, any person who is engaged in a business
17which is not subject to the tax imposed by the "Retailers'
18Occupation Tax Act" because of involving the sale of or a
19contract to sell real estate or a construction contract to
20improve real estate, but who, in the course of conducting such
21business, transfers tangible personal property to users or
22consumers in the finished form in which it was purchased, and
23which does not become real estate, under any provision of a
24construction contract or real estate sale or real estate sales
25agreement entered into with some other person arising out of or
26because of such nontaxable business, is a retailer to the

10100SB0690ham002- 49 -LRB101 04451 SMS 61506 a
1extent of the value of the tangible personal property so
2transferred. If, in such transaction, a separate charge is made
3for the tangible personal property so transferred, the value of
4such property, for the purposes of this Act, is the amount so
5separately charged, but not less than the cost of such property
6to the transferor; if no separate charge is made, the value of
7such property, for the purposes of this Act, is the cost to the
8transferor of such tangible personal property.
9 "Retailer maintaining a place of business in this State",
10or any like term, means and includes any of the following
11retailers:
12 (1) A retailer having or maintaining within this State,
13 directly or by a subsidiary, an office, distribution house,
14 sales house, warehouse or other place of business, or any
15 agent or other representative operating within this State
16 under the authority of the retailer or its subsidiary,
17 irrespective of whether such place of business or agent or
18 other representative is located here permanently or
19 temporarily, or whether such retailer or subsidiary is
20 licensed to do business in this State. However, the
21 ownership of property that is located at the premises of a
22 printer with which the retailer has contracted for printing
23 and that consists of the final printed product, property
24 that becomes a part of the final printed product, or copy
25 from which the printed product is produced shall not result
26 in the retailer being deemed to have or maintain an office,

10100SB0690ham002- 50 -LRB101 04451 SMS 61506 a
1 distribution house, sales house, warehouse, or other place
2 of business within this State.
3 (1.1) (Blank). A retailer having a contract with a
4 person located in this State under which the person, for a
5 commission or other consideration based upon the sale of
6 tangible personal property by the retailer, directly or
7 indirectly refers potential customers to the retailer by
8 providing to the potential customers a promotional code or
9 other mechanism that allows the retailer to track purchases
10 referred by such persons. Examples of mechanisms that allow
11 the retailer to track purchases referred by such persons
12 include but are not limited to the use of a link on the
13 person's Internet website, promotional codes distributed
14 through the person's hand-delivered or mailed material,
15 and promotional codes distributed by the person through
16 radio or other broadcast media. The provisions of this
17 paragraph (1.1) shall apply only if the cumulative gross
18 receipts from sales of tangible personal property by the
19 retailer to customers who are referred to the retailer by
20 all persons in this State under such contracts exceed
21 $10,000 during the preceding 4 quarterly periods ending on
22 the last day of March, June, September, and December. A
23 retailer meeting the requirements of this paragraph (1.1)
24 shall be presumed to be maintaining a place of business in
25 this State but may rebut this presumption by submitting
26 proof that the referrals or other activities pursued within

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1 this State by such persons were not sufficient to meet the
2 nexus standards of the United States Constitution during
3 the preceding 4 quarterly periods.
4 (1.2) (Blank). Beginning July 1, 2011, a retailer
5 having a contract with a person located in this State under
6 which:
7 (A) the retailer sells the same or substantially
8 similar line of products as the person located in this
9 State and does so using an identical or substantially
10 similar name, trade name, or trademark as the person
11 located in this State; and
12 (B) the retailer provides a commission or other
13 consideration to the person located in this State based
14 upon the sale of tangible personal property by the
15 retailer.
16 The provisions of this paragraph (1.2) shall apply only if
17 the cumulative gross receipts from sales of tangible
18 personal property by the retailer to customers in this
19 State under all such contracts exceed $10,000 during the
20 preceding 4 quarterly periods ending on the last day of
21 March, June, September, and December.
22 (2) (Blank). A retailer soliciting orders for tangible
23 personal property by means of a telecommunication or
24 television shopping system (which utilizes toll free
25 numbers) which is intended by the retailer to be broadcast
26 by cable television or other means of broadcasting, to

10100SB0690ham002- 52 -LRB101 04451 SMS 61506 a
1 consumers located in this State.
2 (3) (Blank). A retailer, pursuant to a contract with a
3 broadcaster or publisher located in this State, soliciting
4 orders for tangible personal property by means of
5 advertising which is disseminated primarily to consumers
6 located in this State and only secondarily to bordering
7 jurisdictions.
8 (4) (Blank). A retailer soliciting orders for tangible
9 personal property by mail if the solicitations are
10 substantial and recurring and if the retailer benefits from
11 any banking, financing, debt collection,
12 telecommunication, or marketing activities occurring in
13 this State or benefits from the location in this State of
14 authorized installation, servicing, or repair facilities.
15 (5) (Blank). A retailer that is owned or controlled by
16 the same interests that own or control any retailer
17 engaging in business in the same or similar line of
18 business in this State.
19 (6) (Blank). A retailer having a franchisee or licensee
20 operating under its trade name if the franchisee or
21 licensee is required to collect the tax under this Section.
22 (7) (Blank). A retailer, pursuant to a contract with a
23 cable television operator located in this State,
24 soliciting orders for tangible personal property by means
25 of advertising which is transmitted or distributed over a
26 cable television system in this State.

10100SB0690ham002- 53 -LRB101 04451 SMS 61506 a
1 (8) (Blank). A retailer engaging in activities in
2 Illinois, which activities in the state in which the retail
3 business engaging in such activities is located would
4 constitute maintaining a place of business in that state.
5 (9) Beginning October 1, 2018 through June 30, 2020, a
6 retailer making sales of tangible personal property to
7 purchasers in Illinois from outside of Illinois if:
8 (A) the cumulative gross receipts from sales of
9 tangible personal property to purchasers in Illinois
10 are $100,000 or more; or
11 (B) the retailer enters into 200 or more separate
12 transactions for the sale of tangible personal
13 property to purchasers in Illinois.
14 The retailer shall determine on a quarterly basis,
15 ending on the last day of March, June, September, and
16 December, whether he or she meets the criteria of either
17 subparagraph (A) or (B) of this paragraph (9) for the
18 preceding 12-month period. If the retailer meets the
19 criteria of either subparagraph (A) or (B) for a 12-month
20 period, he or she is considered a retailer maintaining a
21 place of business in this State and is required to collect
22 and remit the tax imposed under this Act and file returns
23 for one year. At the end of that one-year period, the
24 retailer shall determine whether the retailer met the
25 criteria of either subparagraph (A) or (B) during the
26 preceding 12-month period. If the retailer met the criteria

10100SB0690ham002- 54 -LRB101 04451 SMS 61506 a
1 in either subparagraph (A) or (B) for the preceding
2 12-month period, he or she is considered a retailer
3 maintaining a place of business in this State and is
4 required to collect and remit the tax imposed under this
5 Act and file returns for the subsequent year. If at the end
6 of a one-year period a retailer that was required to
7 collect and remit the tax imposed under this Act determines
8 that he or she did not meet the criteria in either
9 subparagraph (A) or (B) during the preceding 12-month
10 period, the retailer shall subsequently determine on a
11 quarterly basis, ending on the last day of March, June,
12 September, and December, whether he or she meets the
13 criteria of either subparagraph (A) or (B) for the
14 preceding 12-month period.
15 "Bulk vending machine" means a vending machine, containing
16unsorted confections, nuts, toys, or other items designed
17primarily to be used or played with by children which, when a
18coin or coins of a denomination not larger than $0.50 are
19inserted, are dispensed in equal portions, at random and
20without selection by the customer.
21(Source: P.A. 99-78, eff. 7-20-15; 100-587, eff. 6-4-18.)
22 Section 15-30. The Retailers' Occupation Tax Act is amended
23by changing Sections 1, 2, 2-12, and 2a as follows:
24 (35 ILCS 120/1) (from Ch. 120, par. 440)

10100SB0690ham002- 55 -LRB101 04451 SMS 61506 a
1 Sec. 1. Definitions. "Sale at retail" means any transfer of
2the ownership of or title to tangible personal property to a
3purchaser, for the purpose of use or consumption, and not for
4the purpose of resale in any form as tangible personal property
5to the extent not first subjected to a use for which it was
6purchased, for a valuable consideration: Provided that the
7property purchased is deemed to be purchased for the purpose of
8resale, despite first being used, to the extent to which it is
9resold as an ingredient of an intentionally produced product or
10byproduct of manufacturing. For this purpose, slag produced as
11an incident to manufacturing pig iron or steel and sold is
12considered to be an intentionally produced byproduct of
13manufacturing. Transactions whereby the possession of the
14property is transferred but the seller retains the title as
15security for payment of the selling price shall be deemed to be
16sales.
17 "Sale at retail" shall be construed to include any transfer
18of the ownership of or title to tangible personal property to a
19purchaser, for use or consumption by any other person to whom
20such purchaser may transfer the tangible personal property
21without a valuable consideration, and to include any transfer,
22whether made for or without a valuable consideration, for
23resale in any form as tangible personal property unless made in
24compliance with Section 2c of this Act.
25 Sales of tangible personal property, which property, to the
26extent not first subjected to a use for which it was purchased,

10100SB0690ham002- 56 -LRB101 04451 SMS 61506 a
1as an ingredient or constituent, goes into and forms a part of
2tangible personal property subsequently the subject of a "Sale
3at retail", are not sales at retail as defined in this Act:
4Provided that the property purchased is deemed to be purchased
5for the purpose of resale, despite first being used, to the
6extent to which it is resold as an ingredient of an
7intentionally produced product or byproduct of manufacturing.
8 "Sale at retail" shall be construed to include any Illinois
9florist's sales transaction in which the purchase order is
10received in Illinois by a florist and the sale is for use or
11consumption, but the Illinois florist has a florist in another
12state deliver the property to the purchaser or the purchaser's
13donee in such other state.
14 Nonreusable tangible personal property that is used by
15persons engaged in the business of operating a restaurant,
16cafeteria, or drive-in is a sale for resale when it is
17transferred to customers in the ordinary course of business as
18part of the sale of food or beverages and is used to deliver,
19package, or consume food or beverages, regardless of where
20consumption of the food or beverages occurs. Examples of those
21items include, but are not limited to nonreusable, paper and
22plastic cups, plates, baskets, boxes, sleeves, buckets or other
23containers, utensils, straws, placemats, napkins, doggie bags,
24and wrapping or packaging materials that are transferred to
25customers as part of the sale of food or beverages in the
26ordinary course of business.

10100SB0690ham002- 57 -LRB101 04451 SMS 61506 a
1 The purchase, employment and transfer of such tangible
2personal property as newsprint and ink for the primary purpose
3of conveying news (with or without other information) is not a
4purchase, use or sale of tangible personal property.
5 A person whose activities are organized and conducted
6primarily as a not-for-profit service enterprise, and who
7engages in selling tangible personal property at retail
8(whether to the public or merely to members and their guests)
9is engaged in the business of selling tangible personal
10property at retail with respect to such transactions, excepting
11only a person organized and operated exclusively for
12charitable, religious or educational purposes either (1), to
13the extent of sales by such person to its members, students,
14patients or inmates of tangible personal property to be used
15primarily for the purposes of such person, or (2), to the
16extent of sales by such person of tangible personal property
17which is not sold or offered for sale by persons organized for
18profit. The selling of school books and school supplies by
19schools at retail to students is not "primarily for the
20purposes of" the school which does such selling. The provisions
21of this paragraph shall not apply to nor subject to taxation
22occasional dinners, socials or similar activities of a person
23organized and operated exclusively for charitable, religious
24or educational purposes, whether or not such activities are
25open to the public.
26 A person who is the recipient of a grant or contract under

10100SB0690ham002- 58 -LRB101 04451 SMS 61506 a
1Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
2serves meals to participants in the federal Nutrition Program
3for the Elderly in return for contributions established in
4amount by the individual participant pursuant to a schedule of
5suggested fees as provided for in the federal Act is not
6engaged in the business of selling tangible personal property
7at retail with respect to such transactions.
8 "Purchaser" means anyone who, through a sale at retail,
9acquires the ownership of or title to tangible personal
10property for a valuable consideration.
11 "Reseller of motor fuel" means any person engaged in the
12business of selling or delivering or transferring title of
13motor fuel to another person other than for use or consumption.
14No person shall act as a reseller of motor fuel within this
15State without first being registered as a reseller pursuant to
16Section 2c or a retailer pursuant to Section 2a.
17 "Selling price" or the "amount of sale" means the
18consideration for a sale valued in money whether received in
19money or otherwise, including cash, credits, property, other
20than as hereinafter provided, and services, but, prior to
21January 1, 2020, not including the value of or credit given for
22traded-in tangible personal property where the item that is
23traded-in is of like kind and character as that which is being
24sold; beginning January 1, 2020, "selling price" includes the
25portion of the value of or credit given for traded-in tangible
26personal property of like kind and character as that which is

10100SB0690ham002- 59 -LRB101 04451 SMS 61506 a
1being sold that exceeds $10,000. "Selling price" , and shall be
2determined without any deduction on account of the cost of the
3property sold, the cost of materials used, labor or service
4cost or any other expense whatsoever, but does not include
5charges that are added to prices by sellers on account of the
6seller's tax liability under this Act, or on account of the
7seller's duty to collect, from the purchaser, the tax that is
8imposed by the Use Tax Act, or, except as otherwise provided
9with respect to any cigarette tax imposed by a home rule unit,
10on account of the seller's tax liability under any local
11occupation tax administered by the Department, or, except as
12otherwise provided with respect to any cigarette tax imposed by
13a home rule unit on account of the seller's duty to collect,
14from the purchasers, the tax that is imposed under any local
15use tax administered by the Department. Effective December 1,
161985, "selling price" shall include charges that are added to
17prices by sellers on account of the seller's tax liability
18under the Cigarette Tax Act, on account of the sellers' duty to
19collect, from the purchaser, the tax imposed under the
20Cigarette Use Tax Act, and on account of the seller's duty to
21collect, from the purchaser, any cigarette tax imposed by a
22home rule unit.
23 Notwithstanding any law to the contrary, for any motor
24vehicle, as defined in Section 1-146 of the Vehicle Code, that
25is sold on or after January 1, 2015 for the purpose of leasing
26the vehicle for a defined period that is longer than one year

10100SB0690ham002- 60 -LRB101 04451 SMS 61506 a
1and (1) is a motor vehicle of the second division that: (A) is
2a self-contained motor vehicle designed or permanently
3converted to provide living quarters for recreational,
4camping, or travel use, with direct walk through access to the
5living quarters from the driver's seat; (B) is of the van
6configuration designed for the transportation of not less than
77 nor more than 16 passengers; or (C) has a gross vehicle
8weight rating of 8,000 pounds or less or (2) is a motor vehicle
9of the first division, "selling price" or "amount of sale"
10means the consideration received by the lessor pursuant to the
11lease contract, including amounts due at lease signing and all
12monthly or other regular payments charged over the term of the
13lease. Also included in the selling price is any amount
14received by the lessor from the lessee for the leased vehicle
15that is not calculated at the time the lease is executed,
16including, but not limited to, excess mileage charges and
17charges for excess wear and tear. For sales that occur in
18Illinois, with respect to any amount received by the lessor
19from the lessee for the leased vehicle that is not calculated
20at the time the lease is executed, the lessor who purchased the
21motor vehicle does not incur the tax imposed by the Use Tax Act
22on those amounts, and the retailer who makes the retail sale of
23the motor vehicle to the lessor is not required to collect the
24tax imposed by the Use Tax Act or to pay the tax imposed by this
25Act on those amounts. However, the lessor who purchased the
26motor vehicle assumes the liability for reporting and paying

10100SB0690ham002- 61 -LRB101 04451 SMS 61506 a
1the tax on those amounts directly to the Department in the same
2form (Illinois Retailers' Occupation Tax, and local retailers'
3occupation taxes, if applicable) in which the retailer would
4have reported and paid such tax if the retailer had accounted
5for the tax to the Department. For amounts received by the
6lessor from the lessee that are not calculated at the time the
7lease is executed, the lessor must file the return and pay the
8tax to the Department by the due date otherwise required by
9this Act for returns other than transaction returns. If the
10retailer is entitled under this Act to a discount for
11collecting and remitting the tax imposed under this Act to the
12Department with respect to the sale of the motor vehicle to the
13lessor, then the right to the discount provided in this Act
14shall be transferred to the lessor with respect to the tax paid
15by the lessor for any amount received by the lessor from the
16lessee for the leased vehicle that is not calculated at the
17time the lease is executed; provided that the discount is only
18allowed if the return is timely filed and for amounts timely
19paid. The "selling price" of a motor vehicle that is sold on or
20after January 1, 2015 for the purpose of leasing for a defined
21period of longer than one year shall not be reduced by the
22value of or credit given for traded-in tangible personal
23property owned by the lessor, nor shall it be reduced by the
24value of or credit given for traded-in tangible personal
25property owned by the lessee, regardless of whether the
26trade-in value thereof is assigned by the lessee to the lessor.

10100SB0690ham002- 62 -LRB101 04451 SMS 61506 a
1In the case of a motor vehicle that is sold for the purpose of
2leasing for a defined period of longer than one year, the sale
3occurs at the time of the delivery of the vehicle, regardless
4of the due date of any lease payments. A lessor who incurs a
5Retailers' Occupation Tax liability on the sale of a motor
6vehicle coming off lease may not take a credit against that
7liability for the Use Tax the lessor paid upon the purchase of
8the motor vehicle (or for any tax the lessor paid with respect
9to any amount received by the lessor from the lessee for the
10leased vehicle that was not calculated at the time the lease
11was executed) if the selling price of the motor vehicle at the
12time of purchase was calculated using the definition of
13"selling price" as defined in this paragraph. Notwithstanding
14any other provision of this Act to the contrary, lessors shall
15file all returns and make all payments required under this
16paragraph to the Department by electronic means in the manner
17and form as required by the Department. This paragraph does not
18apply to leases of motor vehicles for which, at the time the
19lease is entered into, the term of the lease is not a defined
20period, including leases with a defined initial period with the
21option to continue the lease on a month-to-month or other basis
22beyond the initial defined period.
23 The phrase "like kind and character" shall be liberally
24construed (including but not limited to any form of motor
25vehicle for any form of motor vehicle, or any kind of farm or
26agricultural implement for any other kind of farm or

10100SB0690ham002- 63 -LRB101 04451 SMS 61506 a
1agricultural implement), while not including a kind of item
2which, if sold at retail by that retailer, would be exempt from
3retailers' occupation tax and use tax as an isolated or
4occasional sale.
5 "Gross receipts" from the sales of tangible personal
6property at retail means the total selling price or the amount
7of such sales, as hereinbefore defined. In the case of charge
8and time sales, the amount thereof shall be included only as
9and when payments are received by the seller. Receipts or other
10consideration derived by a seller from the sale, transfer or
11assignment of accounts receivable to a wholly owned subsidiary
12will not be deemed payments prior to the time the purchaser
13makes payment on such accounts.
14 "Department" means the Department of Revenue.
15 "Person" means any natural individual, firm, partnership,
16association, joint stock company, joint adventure, public or
17private corporation, limited liability company, or a receiver,
18executor, trustee, guardian or other representative appointed
19by order of any court.
20 The isolated or occasional sale of tangible personal
21property at retail by a person who does not hold himself out as
22being engaged (or who does not habitually engage) in selling
23such tangible personal property at retail, or a sale through a
24bulk vending machine, does not constitute engaging in a
25business of selling such tangible personal property at retail
26within the meaning of this Act; provided that any person who is

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1engaged in a business which is not subject to the tax imposed
2by this Act because of involving the sale of or a contract to
3sell real estate or a construction contract to improve real
4estate or a construction contract to engineer, install, and
5maintain an integrated system of products, but who, in the
6course of conducting such business, transfers tangible
7personal property to users or consumers in the finished form in
8which it was purchased, and which does not become real estate
9or was not engineered and installed, under any provision of a
10construction contract or real estate sale or real estate sales
11agreement entered into with some other person arising out of or
12because of such nontaxable business, is engaged in the business
13of selling tangible personal property at retail to the extent
14of the value of the tangible personal property so transferred.
15If, in such a transaction, a separate charge is made for the
16tangible personal property so transferred, the value of such
17property, for the purpose of this Act, shall be the amount so
18separately charged, but not less than the cost of such property
19to the transferor; if no separate charge is made, the value of
20such property, for the purposes of this Act, is the cost to the
21transferor of such tangible personal property. Construction
22contracts for the improvement of real estate consisting of
23engineering, installation, and maintenance of voice, data,
24video, security, and all telecommunication systems do not
25constitute engaging in a business of selling tangible personal
26property at retail within the meaning of this Act if they are

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1sold at one specified contract price.
2 A person who holds himself or herself out as being engaged
3(or who habitually engages) in selling tangible personal
4property at retail is a person engaged in the business of
5selling tangible personal property at retail hereunder with
6respect to such sales (and not primarily in a service
7occupation) notwithstanding the fact that such person designs
8and produces such tangible personal property on special order
9for the purchaser and in such a way as to render the property
10of value only to such purchaser, if such tangible personal
11property so produced on special order serves substantially the
12same function as stock or standard items of tangible personal
13property that are sold at retail.
14 Persons who engage in the business of transferring tangible
15personal property upon the redemption of trading stamps are
16engaged in the business of selling such property at retail and
17shall be liable for and shall pay the tax imposed by this Act
18on the basis of the retail value of the property transferred
19upon redemption of such stamps.
20 "Bulk vending machine" means a vending machine, containing
21unsorted confections, nuts, toys, or other items designed
22primarily to be used or played with by children which, when a
23coin or coins of a denomination not larger than $0.50 are
24inserted, are dispensed in equal portions, at random and
25without selection by the customer.
26 "Remote retailer" means a retailer located outside of this

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1State that does not maintain within this State, directly or by
2a subsidiary, an office, distribution house, sales house,
3warehouse or other place of business, or any agent or other
4representative operating within this State under the authority
5of the retailer or its subsidiary, irrespective of whether such
6place of business or agent is located here permanently or
7temporarily or whether such retailer or subsidiary is licensed
8to do business in this State.
9(Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14.)
10 (35 ILCS 120/2) (from Ch. 120, par. 441)
11 Sec. 2. Tax imposed.
12 (a) A tax is imposed upon persons engaged in the business
13of selling at retail tangible personal property, including
14computer software, and including photographs, negatives, and
15positives that are the product of photoprocessing, but not
16including products of photoprocessing produced for use in
17motion pictures for public commercial exhibition. Beginning
18January 1, 2001, prepaid telephone calling arrangements shall
19be considered tangible personal property subject to the tax
20imposed under this Act regardless of the form in which those
21arrangements may be embodied, transmitted, or fixed by any
22method now known or hereafter developed. Sales of (1)
23electricity delivered to customers by wire; (2) natural or
24artificial gas that is delivered to customers through pipes,
25pipelines, or mains; and (3) water that is delivered to

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1customers through pipes, pipelines, or mains are not subject to
2tax under this Act. The provisions of this amendatory Act of
3the 98th General Assembly are declaratory of existing law as to
4the meaning and scope of this Act.
5 (b) Beginning on July 1, 2020, a remote retailer is engaged
6in the occupation of selling at retail in Illinois for purposes
7of this Act, if:
8 (1) the cumulative gross receipts from sales of
9 tangible personal property to purchasers in Illinois are
10 $100,000 or more; or
11 (2) the retailer enters into 200 or more separate
12 transactions for the sale of tangible personal property to
13 purchasers in Illinois.
14 Remote retailers that meet or exceed the threshold in
15either (1) or (2) above shall be liable for all applicable
16State and locally imposed retailers' occupation taxes on all
17retail sales to Illinois purchasers.
18 The remote retailer shall determine on a quarterly basis,
19ending on the last day of March, June, September, and December,
20whether he or she meets the criteria of either paragraph (1) or
21(2) of this subsection for the preceding 12-month period. If
22the retailer meets the criteria of either paragraph (1) or (2)
23for a 12-month period, he or she is considered a retailer
24maintaining a place of business in this State and is required
25to collect and remit the tax imposed under this Act and all
26retailers' occupation tax imposed by local taxing

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1jurisdictions in Illinois, provided such local taxes are
2administered by the Department, and to file all applicable
3returns for one year. At the end of that one-year period, the
4retailer shall determine whether the retailer met the criteria
5of either paragraph (1) or (2) for the preceding 12-month
6period. If the retailer met the criteria in either paragraph
7(1) or (2) for the preceding 12-month period, he or she is
8considered a retailer maintaining a place of business in this
9State and is required to collect and remit all applicable State
10and local retailers' occupation taxes and file returns for the
11subsequent year. If, at the end of a one-year period, a
12retailer that was required to collect and remit the tax imposed
13under this Act determines that he or she did not meet the
14criteria in either paragraph (1) or (2) during the preceding
1512-month period, then the retailer shall subsequently
16determine on a quarterly basis, ending on the last day of
17March, June, September, and December, whether he or she meets
18the criteria of either paragraph (1) or (2) for the preceding
1912-month period.
20(Source: P.A. 98-583, eff. 1-1-14.)
21 (35 ILCS 120/2-12)
22 Sec. 2-12. Location where retailer is deemed to be engaged
23in the business of selling. The purpose of this Section is to
24specify where a retailer is deemed to be engaged in the
25business of selling tangible personal property for the purposes

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1of this Act, the Use Tax Act, the Service Use Tax Act, and the
2Service Occupation Tax Act, and for the purpose of collecting
3any other local retailers' occupation tax administered by the
4Department. This Section applies only with respect to the
5particular selling activities described in the following
6paragraphs. The provisions of this Section are not intended to,
7and shall not be interpreted to, affect where a retailer is
8deemed to be engaged in the business of selling with respect to
9any activity that is not specifically described in the
10following paragraphs.
11 (1) If a purchaser who is present at the retailer's
12 place of business, having no prior commitment to the
13 retailer, agrees to purchase and makes payment for tangible
14 personal property at the retailer's place of business, then
15 the transaction shall be deemed an over-the-counter sale
16 occurring at the retailer's same place of business where
17 the purchaser was present and made payment for that
18 tangible personal property if the retailer regularly
19 stocks the purchased tangible personal property or similar
20 tangible personal property in the quantity, or similar
21 quantity, for sale at the retailer's same place of business
22 and then either (i) the purchaser takes possession of the
23 tangible personal property at the same place of business or
24 (ii) the retailer delivers or arranges for the tangible
25 personal property to be delivered to the purchaser.
26 (2) If a purchaser, having no prior commitment to the

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1 retailer, agrees to purchase tangible personal property
2 and makes payment over the phone, in writing, or via the
3 Internet and takes possession of the tangible personal
4 property at the retailer's place of business, then the sale
5 shall be deemed to have occurred at the retailer's place of
6 business where the purchaser takes possession of the
7 property if the retailer regularly stocks the item or
8 similar items in the quantity, or similar quantities,
9 purchased by the purchaser.
10 (3) A retailer is deemed to be engaged in the business
11 of selling food, beverages, or other tangible personal
12 property through a vending machine at the location where
13 the vending machine is located at the time the sale is made
14 if (i) the vending machine is a device operated by coin,
15 currency, credit card, token, coupon or similar device; (2)
16 the food, beverage or other tangible personal property is
17 contained within the vending machine and dispensed from the
18 vending machine; and (3) the purchaser takes possession of
19 the purchased food, beverage or other tangible personal
20 property immediately.
21 (4) Minerals. A producer of coal or other mineral mined
22 in Illinois is deemed to be engaged in the business of
23 selling at the place where the coal or other mineral mined
24 in Illinois is extracted from the earth. With respect to
25 minerals (i) the term "extracted from the earth" means the
26 location at which the coal or other mineral is extracted

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1 from the mouth of the mine, and (ii) a "mineral" includes
2 not only coal, but also oil, sand, stone taken from a
3 quarry, gravel and any other thing commonly regarded as a
4 mineral and extracted from the earth. This paragraph does
5 not apply to coal or another mineral when it is delivered
6 or shipped by the seller to the purchaser at a point
7 outside Illinois so that the sale is exempt under the
8 United States Constitution as a sale in interstate or
9 foreign commerce.
10 (5) A retailer selling tangible personal property to a
11 nominal lessee or bailee pursuant to a lease with a dollar
12 or other nominal option to purchase is engaged in the
13 business of selling at the location where the property is
14 first delivered to the lessee or bailee for its intended
15 use.
16 (6) Beginning on July 1, 2020, for the purposes of
17 determining the correct local retailers' occupation tax
18 rate, retail sales made by a remote retailer that meet or
19 exceed the thresholds established in paragraph (1) or (2)
20 of subsection (b) of Section 2 of this Act shall be deemed
21 to be made at the Illinois location to which the tangible
22 personal property is shipped or delivered or at which
23 possession is taken by the purchaser.
24(Source: P.A. 98-1098, eff. 8-26-14; 99-126, eff. 7-23-15.)
25 (35 ILCS 120/2a) (from Ch. 120, par. 441a)

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1 Sec. 2a. It is unlawful for any person to engage in the
2business of selling tangible personal property at retail in
3this State without a certificate of registration from the
4Department. Application for a certificate of registration
5shall be made to the Department upon forms furnished by it.
6Each such application shall be signed and verified and shall
7state: (1) the name and social security number of the
8applicant; (2) the address of his principal place of business;
9(3) the address of the principal place of business from which
10he engages in the business of selling tangible personal
11property at retail in this State and the addresses of all other
12places of business, if any (enumerating such addresses, if any,
13in a separate list attached to and made a part of the
14application), from which he engages in the business of selling
15tangible personal property at retail in this State; (4) the
16name and address of the person or persons who will be
17responsible for filing returns and payment of taxes due under
18this Act; (5) in the case of a publicly traded corporation, the
19name and title of the Chief Financial Officer, Chief Operating
20Officer, and any other officer or employee with responsibility
21for preparing tax returns under this Act, and, in the case of
22all other corporations, the name, title, and social security
23number of each corporate officer; (6) in the case of a limited
24liability company, the name, social security number, and FEIN
25number of each manager and member; and (7) such other
26information as the Department may reasonably require. The

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1application shall contain an acceptance of responsibility
2signed by the person or persons who will be responsible for
3filing returns and payment of the taxes due under this Act. If
4the applicant will sell tangible personal property at retail
5through vending machines, his application to register shall
6indicate the number of vending machines to be so operated. If
7requested by the Department at any time, that person shall
8verify the total number of vending machines he or she uses in
9his or her business of selling tangible personal property at
10retail.
11 The Department shall provide by rule for an expedited
12business registration process for remote retailers required to
13register and file under subsection (b) of Section 2 who use a
14certified service provider to file their returns under this
15Act. Such expedited registration process shall allow the
16Department to register a taxpayer based upon the same
17registration information required by the Streamlined Sales Tax
18Governing Board for states participating in the Streamlined
19Sales Tax Project.
20 The Department may deny a certificate of registration to
21any applicant if a person who is named as the owner, a partner,
22a manager or member of a limited liability company, or a
23corporate officer of the applicant on the application for the
24certificate of registration is or has been named as the owner,
25a partner, a manager or member of a limited liability company,
26or a corporate officer on the application for the certificate

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1of registration of another retailer that is in default for
2moneys due under this Act or any other tax or fee Act
3administered by the Department. For purposes of this paragraph
4only, in determining whether a person is in default for moneys
5due, the Department shall include only amounts established as a
6final liability within the 20 years prior to the date of the
7Department's notice of denial of a certificate of registration.
8 The Department may require an applicant for a certificate
9of registration hereunder to, at the time of filing such
10application, furnish a bond from a surety company authorized to
11do business in the State of Illinois, or an irrevocable bank
12letter of credit or a bond signed by 2 personal sureties who
13have filed, with the Department, sworn statements disclosing
14net assets equal to at least 3 times the amount of the bond to
15be required of such applicant, or a bond secured by an
16assignment of a bank account or certificate of deposit, stocks
17or bonds, conditioned upon the applicant paying to the State of
18Illinois all moneys becoming due under this Act and under any
19other State tax law or municipal or county tax ordinance or
20resolution under which the certificate of registration that is
21issued to the applicant under this Act will permit the
22applicant to engage in business without registering separately
23under such other law, ordinance or resolution. In making a
24determination as to whether to require a bond or other
25security, the Department shall take into consideration whether
26the owner, any partner, any manager or member of a limited

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1liability company, or a corporate officer of the applicant is
2or has been the owner, a partner, a manager or member of a
3limited liability company, or a corporate officer of another
4retailer that is in default for moneys due under this Act or
5any other tax or fee Act administered by the Department; and
6whether the owner, any partner, any manager or member of a
7limited liability company, or a corporate officer of the
8applicant is or has been the owner, a partner, a manager or
9member of a limited liability company, or a corporate officer
10of another retailer whose certificate of registration has been
11revoked within the previous 5 years under this Act or any other
12tax or fee Act administered by the Department. If a bond or
13other security is required, the Department shall fix the amount
14of the bond or other security, taking into consideration the
15amount of money expected to become due from the applicant under
16this Act and under any other State tax law or municipal or
17county tax ordinance or resolution under which the certificate
18of registration that is issued to the applicant under this Act
19will permit the applicant to engage in business without
20registering separately under such other law, ordinance, or
21resolution. The amount of security required by the Department
22shall be such as, in its opinion, will protect the State of
23Illinois against failure to pay the amount which may become due
24from the applicant under this Act and under any other State tax
25law or municipal or county tax ordinance or resolution under
26which the certificate of registration that is issued to the

10100SB0690ham002- 76 -LRB101 04451 SMS 61506 a
1applicant under this Act will permit the applicant to engage in
2business without registering separately under such other law,
3ordinance or resolution, but the amount of the security
4required by the Department shall not exceed three times the
5amount of the applicant's average monthly tax liability, or
6$50,000.00, whichever amount is lower.
7 No certificate of registration under this Act shall be
8issued by the Department until the applicant provides the
9Department with satisfactory security, if required, as herein
10provided for.
11 Upon receipt of the application for certificate of
12registration in proper form, and upon approval by the
13Department of the security furnished by the applicant, if
14required, the Department shall issue to such applicant a
15certificate of registration which shall permit the person to
16whom it is issued to engage in the business of selling tangible
17personal property at retail in this State. The certificate of
18registration shall be conspicuously displayed at the place of
19business which the person so registered states in his
20application to be the principal place of business from which he
21engages in the business of selling tangible personal property
22at retail in this State.
23 No certificate of registration issued prior to July 1, 2017
24to a taxpayer who files returns required by this Act on a
25monthly basis or renewed prior to July 1, 2017 by a taxpayer
26who files returns required by this Act on a monthly basis shall

10100SB0690ham002- 77 -LRB101 04451 SMS 61506 a
1be valid after the expiration of 5 years from the date of its
2issuance or last renewal. No certificate of registration issued
3on or after July 1, 2017 to a taxpayer who files returns
4required by this Act on a monthly basis or renewed on or after
5July 1, 2017 by a taxpayer who files returns required by this
6Act on a monthly basis shall be valid after the expiration of
7one year from the date of its issuance or last renewal. The
8expiration date of a sub-certificate of registration shall be
9that of the certificate of registration to which the
10sub-certificate relates. Prior to July 1, 2017, a certificate
11of registration shall automatically be renewed, subject to
12revocation as provided by this Act, for an additional 5 years
13from the date of its expiration unless otherwise notified by
14the Department as provided by this paragraph. On and after July
151, 2017, a certificate of registration shall automatically be
16renewed, subject to revocation as provided by this Act, for an
17additional one year from the date of its expiration unless
18otherwise notified by the Department as provided by this
19paragraph.
20 Where a taxpayer to whom a certificate of registration is
21issued under this Act is in default to the State of Illinois
22for delinquent returns or for moneys due under this Act or any
23other State tax law or municipal or county ordinance
24administered or enforced by the Department, the Department
25shall, not less than 60 days before the expiration date of such
26certificate of registration, give notice to the taxpayer to

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1whom the certificate was issued of the account period of the
2delinquent returns, the amount of tax, penalty and interest due
3and owing from the taxpayer, and that the certificate of
4registration shall not be automatically renewed upon its
5expiration date unless the taxpayer, on or before the date of
6expiration, has filed and paid the delinquent returns or paid
7the defaulted amount in full. A taxpayer to whom such a notice
8is issued shall be deemed an applicant for renewal. The
9Department shall promulgate regulations establishing
10procedures for taxpayers who file returns on a monthly basis
11but desire and qualify to change to a quarterly or yearly
12filing basis and will no longer be subject to renewal under
13this Section, and for taxpayers who file returns on a yearly or
14quarterly basis but who desire or are required to change to a
15monthly filing basis and will be subject to renewal under this
16Section.
17 The Department may in its discretion approve renewal by an
18applicant who is in default if, at the time of application for
19renewal, the applicant files all of the delinquent returns or
20pays to the Department such percentage of the defaulted amount
21as may be determined by the Department and agrees in writing to
22waive all limitations upon the Department for collection of the
23remaining defaulted amount to the Department over a period not
24to exceed 5 years from the date of renewal of the certificate;
25however, no renewal application submitted by an applicant who
26is in default shall be approved if the immediately preceding

10100SB0690ham002- 79 -LRB101 04451 SMS 61506 a
1renewal by the applicant was conditioned upon the installment
2payment agreement described in this Section. The payment
3agreement herein provided for shall be in addition to and not
4in lieu of the security that may be required by this Section of
5a taxpayer who is no longer considered a prior continuous
6compliance taxpayer. The execution of the payment agreement as
7provided in this Act shall not toll the accrual of interest at
8the statutory rate.
9 The Department may suspend a certificate of registration if
10the Department finds that the person to whom the certificate of
11registration has been issued knowingly sold contraband
12cigarettes.
13 A certificate of registration issued under this Act more
14than 5 years before January 1, 1990 (the effective date of
15Public Act 86-383) shall expire and be subject to the renewal
16provisions of this Section on the next anniversary of the date
17of issuance of such certificate which occurs more than 6 months
18after January 1, 1990 (the effective date of Public Act
1986-383). A certificate of registration issued less than 5 years
20before January 1, 1990 (the effective date of Public Act
2186-383) shall expire and be subject to the renewal provisions
22of this Section on the 5th anniversary of the issuance of the
23certificate.
24 If the person so registered states that he operates other
25places of business from which he engages in the business of
26selling tangible personal property at retail in this State, the

10100SB0690ham002- 80 -LRB101 04451 SMS 61506 a
1Department shall furnish him with a sub-certificate of
2registration for each such place of business, and the applicant
3shall display the appropriate sub-certificate of registration
4at each such place of business. All sub-certificates of
5registration shall bear the same registration number as that
6appearing upon the certificate of registration to which such
7sub-certificates relate.
8 If the applicant will sell tangible personal property at
9retail through vending machines, the Department shall furnish
10him with a sub-certificate of registration for each such
11vending machine, and the applicant shall display the
12appropriate sub-certificate of registration on each such
13vending machine by attaching the sub-certificate of
14registration to a conspicuous part of such vending machine. If
15a person who is registered to sell tangible personal property
16at retail through vending machines adds an additional vending
17machine or additional vending machines to the number of vending
18machines he or she uses in his or her business of selling
19tangible personal property at retail, he or she shall notify
20the Department, on a form prescribed by the Department, to
21request an additional sub-certificate or additional
22sub-certificates of registration, as applicable. With each
23such request, the applicant shall report the number of
24sub-certificates of registration he or she is requesting as
25well as the total number of vending machines from which he or
26she makes retail sales.

10100SB0690ham002- 81 -LRB101 04451 SMS 61506 a
1 Where the same person engages in 2 or more businesses of
2selling tangible personal property at retail in this State,
3which businesses are substantially different in character or
4engaged in under different trade names or engaged in under
5other substantially dissimilar circumstances (so that it is
6more practicable, from an accounting, auditing or bookkeeping
7standpoint, for such businesses to be separately registered),
8the Department may require or permit such person (subject to
9the same requirements concerning the furnishing of security as
10those that are provided for hereinbefore in this Section as to
11each application for a certificate of registration) to apply
12for and obtain a separate certificate of registration for each
13such business or for any of such businesses, under a single
14certificate of registration supplemented by related
15sub-certificates of registration.
16 Any person who is registered under the Retailers'
17Occupation Tax Act as of March 8, 1963, and who, during the
183-year period immediately prior to March 8, 1963, or during a
19continuous 3-year period part of which passed immediately
20before and the remainder of which passes immediately after
21March 8, 1963, has been so registered continuously and who is
22determined by the Department not to have been either delinquent
23or deficient in the payment of tax liability during that period
24under this Act or under any other State tax law or municipal or
25county tax ordinance or resolution under which the certificate
26of registration that is issued to the registrant under this Act

10100SB0690ham002- 82 -LRB101 04451 SMS 61506 a
1will permit the registrant to engage in business without
2registering separately under such other law, ordinance or
3resolution, shall be considered to be a Prior Continuous
4Compliance taxpayer. Also any taxpayer who has, as verified by
5the Department, faithfully and continuously complied with the
6condition of his bond or other security under the provisions of
7this Act for a period of 3 consecutive years shall be
8considered to be a Prior Continuous Compliance taxpayer.
9 Every Prior Continuous Compliance taxpayer shall be exempt
10from all requirements under this Act concerning the furnishing
11of a bond or other security as a condition precedent to his
12being authorized to engage in the business of selling tangible
13personal property at retail in this State. This exemption shall
14continue for each such taxpayer until such time as he may be
15determined by the Department to be delinquent in the filing of
16any returns, or is determined by the Department (either through
17the Department's issuance of a final assessment which has
18become final under the Act, or by the taxpayer's filing of a
19return which admits tax that is not paid to be due) to be
20delinquent or deficient in the paying of any tax under this Act
21or under any other State tax law or municipal or county tax
22ordinance or resolution under which the certificate of
23registration that is issued to the registrant under this Act
24will permit the registrant to engage in business without
25registering separately under such other law, ordinance or
26resolution, at which time that taxpayer shall become subject to

10100SB0690ham002- 83 -LRB101 04451 SMS 61506 a
1all the financial responsibility requirements of this Act and,
2as a condition of being allowed to continue to engage in the
3business of selling tangible personal property at retail, may
4be required to post bond or other acceptable security with the
5Department covering liability which such taxpayer may
6thereafter incur. Any taxpayer who fails to pay an admitted or
7established liability under this Act may also be required to
8post bond or other acceptable security with this Department
9guaranteeing the payment of such admitted or established
10liability.
11 No certificate of registration shall be issued to any
12person who is in default to the State of Illinois for moneys
13due under this Act or under any other State tax law or
14municipal or county tax ordinance or resolution under which the
15certificate of registration that is issued to the applicant
16under this Act will permit the applicant to engage in business
17without registering separately under such other law, ordinance
18or resolution.
19 Any person aggrieved by any decision of the Department
20under this Section may, within 20 days after notice of such
21decision, protest and request a hearing, whereupon the
22Department shall give notice to such person of the time and
23place fixed for such hearing and shall hold a hearing in
24conformity with the provisions of this Act and then issue its
25final administrative decision in the matter to such person. In
26the absence of such a protest within 20 days, the Department's

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1decision shall become final without any further determination
2being made or notice given.
3 With respect to security other than bonds (upon which the
4Department may sue in the event of a forfeiture), if the
5taxpayer fails to pay, when due, any amount whose payment such
6security guarantees, the Department shall, after such
7liability is admitted by the taxpayer or established by the
8Department through the issuance of a final assessment that has
9become final under the law, convert the security which that
10taxpayer has furnished into money for the State, after first
11giving the taxpayer at least 10 days' written notice, by
12registered or certified mail, to pay the liability or forfeit
13such security to the Department. If the security consists of
14stocks or bonds or other securities which are listed on a
15public exchange, the Department shall sell such securities
16through such public exchange. If the security consists of an
17irrevocable bank letter of credit, the Department shall convert
18the security in the manner provided for in the Uniform
19Commercial Code. If the security consists of a bank certificate
20of deposit, the Department shall convert the security into
21money by demanding and collecting the amount of such bank
22certificate of deposit from the bank which issued such
23certificate. If the security consists of a type of stocks or
24other securities which are not listed on a public exchange, the
25Department shall sell such security to the highest and best
26bidder after giving at least 10 days' notice of the date, time

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1and place of the intended sale by publication in the "State
2Official Newspaper". If the Department realizes more than the
3amount of such liability from the security, plus the expenses
4incurred by the Department in converting the security into
5money, the Department shall pay such excess to the taxpayer who
6furnished such security, and the balance shall be paid into the
7State Treasury.
8 The Department shall discharge any surety and shall release
9and return any security deposited, assigned, pledged or
10otherwise provided to it by a taxpayer under this Section
11within 30 days after:
12 (1) such taxpayer becomes a Prior Continuous
13 Compliance taxpayer; or
14 (2) such taxpayer has ceased to collect receipts on
15 which he is required to remit tax to the Department, has
16 filed a final tax return, and has paid to the Department an
17 amount sufficient to discharge his remaining tax
18 liability, as determined by the Department, under this Act
19 and under every other State tax law or municipal or county
20 tax ordinance or resolution under which the certificate of
21 registration issued under this Act permits the registrant
22 to engage in business without registering separately under
23 such other law, ordinance or resolution. The Department
24 shall make a final determination of the taxpayer's
25 outstanding tax liability as expeditiously as possible
26 after his final tax return has been filed; if the

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1 Department cannot make such final determination within 45
2 days after receiving the final tax return, within such
3 period it shall so notify the taxpayer, stating its reasons
4 therefor.
5(Source: P.A. 100-302, eff. 8-24-17; 100-303, eff. 8-24-17;
6100-863, eff. 8-14-18.)
7 Section 15-35. The Cigarette Tax Act is amended by changing
8Section 2 as follows:
9 (35 ILCS 130/2) (from Ch. 120, par. 453.2)
10 Sec. 2. Tax imposed; rate; collection, payment, and
11distribution; discount.
12 (a) Beginning on July 1, 2019, in place of the aggregate
13tax rate of 99 mills previously imposed by this Act, a tax is
14imposed upon any person engaged in business as a retailer of
15cigarettes at the rate of 149 mills per cigarette sold or
16otherwise disposed of in the course of such business in this
17State. A tax is imposed upon any person engaged in business as
18a retailer of cigarettes in this State at the rate of 5 1/2
19mills per cigarette sold, or otherwise disposed of in the
20course of such business in this State. In addition to any other
21tax imposed by this Act, a tax is imposed upon any person
22engaged in business as a retailer of cigarettes in this State
23at a rate of 1/2 mill per cigarette sold or otherwise disposed
24of in the course of such business in this State on and after

10100SB0690ham002- 87 -LRB101 04451 SMS 61506 a
1January 1, 1947, and shall be paid into the Metropolitan Fair
2and Exposition Authority Reconstruction Fund or as otherwise
3provided in Section 29. On and after December 1, 1985, in
4addition to any other tax imposed by this Act, a tax is imposed
5upon any person engaged in business as a retailer of cigarettes
6in this State at a rate of 4 mills per cigarette sold or
7otherwise disposed of in the course of such business in this
8State. Of the additional tax imposed by this amendatory Act of
91985, $9,000,000 of the moneys received by the Department of
10Revenue pursuant to this Act shall be paid each month into the
11Common School Fund. On and after the effective date of this
12amendatory Act of 1989, in addition to any other tax imposed by
13this Act, a tax is imposed upon any person engaged in business
14as a retailer of cigarettes at the rate of 5 mills per
15cigarette sold or otherwise disposed of in the course of such
16business in this State. On and after the effective date of this
17amendatory Act of 1993, in addition to any other tax imposed by
18this Act, a tax is imposed upon any person engaged in business
19as a retailer of cigarettes at the rate of 7 mills per
20cigarette sold or otherwise disposed of in the course of such
21business in this State. On and after December 15, 1997, in
22addition to any other tax imposed by this Act, a tax is imposed
23upon any person engaged in business as a retailer of cigarettes
24at the rate of 7 mills per cigarette sold or otherwise disposed
25of in the course of such business of this State. All of the
26moneys received by the Department of Revenue pursuant to this

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1Act and the Cigarette Use Tax Act from the additional taxes
2imposed by this amendatory Act of 1997, shall be paid each
3month into the Common School Fund. On and after July 1, 2002,
4in addition to any other tax imposed by this Act, a tax is
5imposed upon any person engaged in business as a retailer of
6cigarettes at the rate of 20.0 mills per cigarette sold or
7otherwise disposed of in the course of such business in this
8State. Beginning on June 24, 2012, in addition to any other tax
9imposed by this Act, a tax is imposed upon any person engaged
10in business as a retailer of cigarettes at the rate of 50 mills
11per cigarette sold or otherwise disposed of in the course of
12such business in this State. All moneys received by the
13Department of Revenue under this Act and the Cigarette Use Tax
14Act from the additional taxes imposed by this amendatory Act of
15the 97th General Assembly shall be paid each month into the
16Healthcare Provider Relief Fund.
17 (b) The payment of such taxes shall be evidenced by a stamp
18affixed to each original package of cigarettes, or an
19authorized substitute for such stamp imprinted on each original
20package of such cigarettes underneath the sealed transparent
21outside wrapper of such original package, as hereinafter
22provided. However, such taxes are not imposed upon any activity
23in such business in interstate commerce or otherwise, which
24activity may not under the Constitution and statutes of the
25United States be made the subject of taxation by this State.
26 Beginning on the effective date of this amendatory Act of

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1the 92nd General Assembly and through June 30, 2006, all of the
2moneys received by the Department of Revenue pursuant to this
3Act and the Cigarette Use Tax Act, other than the moneys that
4are dedicated to the Common School Fund, shall be distributed
5each month as follows: first, there shall be paid into the
6General Revenue Fund an amount which, when added to the amount
7paid into the Common School Fund for that month, equals
8$33,300,000, except that in the month of August of 2004, this
9amount shall equal $83,300,000; then, from the moneys
10remaining, if any amounts required to be paid into the General
11Revenue Fund in previous months remain unpaid, those amounts
12shall be paid into the General Revenue Fund; then, beginning on
13April 1, 2003, from the moneys remaining, $5,000,000 per month
14shall be paid into the School Infrastructure Fund; then, if any
15amounts required to be paid into the School Infrastructure Fund
16in previous months remain unpaid, those amounts shall be paid
17into the School Infrastructure Fund; then the moneys remaining,
18if any, shall be paid into the Long-Term Care Provider Fund. To
19the extent that more than $25,000,000 has been paid into the
20General Revenue Fund and Common School Fund per month for the
21period of July 1, 1993 through the effective date of this
22amendatory Act of 1994 from combined receipts of the Cigarette
23Tax Act and the Cigarette Use Tax Act, notwithstanding the
24distribution provided in this Section, the Department of
25Revenue is hereby directed to adjust the distribution provided
26in this Section to increase the next monthly payments to the

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1Long Term Care Provider Fund by the amount paid to the General
2Revenue Fund and Common School Fund in excess of $25,000,000
3per month and to decrease the next monthly payments to the
4General Revenue Fund and Common School Fund by that same excess
5amount.
6 Beginning on July 1, 2006, all of the moneys received by
7the Department of Revenue pursuant to this Act and the
8Cigarette Use Tax Act, other than the moneys that are dedicated
9to the Common School Fund and, beginning on the effective date
10of this amendatory Act of the 97th General Assembly, other than
11the moneys from the additional taxes imposed by this amendatory
12Act of the 97th General Assembly that must be paid each month
13into the Healthcare Provider Relief Fund, and other than the
14moneys from the additional taxes imposed by this amendatory Act
15of the 101st General Assembly that must be paid each month
16under subsection (c), shall be distributed each month as
17follows: first, there shall be paid into the General Revenue
18Fund an amount that, when added to the amount paid into the
19Common School Fund for that month, equals $29,200,000; then,
20from the moneys remaining, if any amounts required to be paid
21into the General Revenue Fund in previous months remain unpaid,
22those amounts shall be paid into the General Revenue Fund; then
23from the moneys remaining, $5,000,000 per month shall be paid
24into the School Infrastructure Fund; then, if any amounts
25required to be paid into the School Infrastructure Fund in
26previous months remain unpaid, those amounts shall be paid into

10100SB0690ham002- 91 -LRB101 04451 SMS 61506 a
1the School Infrastructure Fund; then the moneys remaining, if
2any, shall be paid into the Long-Term Care Provider Fund.
3 (c) Beginning on July 1, 2019, all of the moneys from the
4additional taxes imposed by this amendatory Act of the 101st
5General Assembly received by the Department of Revenue pursuant
6to this Act and the Cigarette Use Tax Act shall be distributed
7each month into the Capital Projects Fund.
8 (d) Moneys collected from the tax imposed on little cigars
9under Section 10-10 of the Tobacco Products Tax Act of 1995
10shall be included with the moneys collected under the Cigarette
11Tax Act and the Cigarette Use Tax Act when making distributions
12to the Common School Fund, the Healthcare Provider Relief Fund,
13the General Revenue Fund, the School Infrastructure Fund, and
14the Long-Term Care Provider Fund under this Section.
15 (e) If the When any tax imposed herein terminates or has
16terminated, distributors who have bought stamps while such tax
17was in effect and who therefore paid such tax, but who can
18show, to the Department's satisfaction, that they sold the
19cigarettes to which they affixed such stamps after such tax had
20terminated and did not recover the tax or its equivalent from
21purchasers, shall be allowed by the Department to take credit
22for such absorbed tax against subsequent tax stamp purchases
23from the Department by such distributor.
24 (f) The impact of the tax levied by this Act is imposed
25upon the retailer and shall be prepaid or pre-collected by the
26distributor for the purpose of convenience and facility only,

10100SB0690ham002- 92 -LRB101 04451 SMS 61506 a
1and the amount of the tax shall be added to the price of the
2cigarettes sold by such distributor. Collection of the tax
3shall be evidenced by a stamp or stamps affixed to each
4original package of cigarettes, as hereinafter provided. Any
5distributor who purchases stamps may credit any excess payments
6verified by the Department against amounts subsequently due for
7the purchase of additional stamps, until such time as no excess
8payment remains.
9 (g) Each distributor shall collect the tax from the
10retailer at or before the time of the sale, shall affix the
11stamps as hereinafter required, and shall remit the tax
12collected from retailers to the Department, as hereinafter
13provided. Any distributor who fails to properly collect and pay
14the tax imposed by this Act shall be liable for the tax. Any
15distributor having cigarettes to which stamps have been affixed
16in his possession for sale on the effective date of this
17amendatory Act of 1989 shall not be required to pay the
18additional tax imposed by this amendatory Act of 1989 on such
19stamped cigarettes. Any distributor having cigarettes to which
20stamps have been affixed in his or her possession for sale at
2112:01 a.m. on the effective date of this amendatory Act of
221993, is required to pay the additional tax imposed by this
23amendatory Act of 1993 on such stamped cigarettes. This
24payment, less the discount provided in subsection (b), shall be
25due when the distributor first makes a purchase of cigarette
26tax stamps after the effective date of this amendatory Act of

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11993, or on the first due date of a return under this Act after
2the effective date of this amendatory Act of 1993, whichever
3occurs first. Any distributor having cigarettes to which stamps
4have been affixed in his possession for sale on December 15,
51997 shall not be required to pay the additional tax imposed by
6this amendatory Act of 1997 on such stamped cigarettes.
7 Any distributor having cigarettes to which stamps have been
8affixed in his or her possession for sale on July 1, 2002 shall
9not be required to pay the additional tax imposed by this
10amendatory Act of the 92nd General Assembly on those stamped
11cigarettes.
12 (h) Any distributor having cigarettes in his or her
13possession on July 1, 2019 to which tax stamps have been
14affixed, and any distributor having stamps in his or her
15possession on July 1, 2019 that have not been affixed to
16packages of cigarettes before July 1, 2019, is required to pay
17the additional tax that begins on July 1, 2019 imposed by this
18amendatory Act of the 101st General Assembly to the extent that
19the volume of affixed and unaffixed stamps in the distributor's
20possession on July 1, 2019 exceeds the average monthly volume
21of cigarette stamps purchased by the distributor in calendar
22year 2018. This payment, less the discount provided in
23subsection (l), is due when the distributor first makes a
24purchase of cigarette stamps on or after July 1, 2019 or on the
25first due date of a return under this Act occurring on or after
26July 1, 2019, whichever occurs first. Those distributors may

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1elect to pay the additional tax on packages of cigarettes to
2which stamps have been affixed and on any stamps in the
3distributor's possession that have not been affixed to packages
4of cigarettes in their possession on July 1, 2019 over a period
5not to exceed 12 months from the due date of the additional tax
6by notifying the Department in writing. The first payment for
7distributors making such election is due when the distributor
8first makes a purchase of cigarette tax stamps on or after July
91, 2019 or on the first due date of a return under this Act
10occurring on or after July 1, 2019, whichever occurs first.
11Distributors making such an election are not entitled to take
12the discount provided in subsection (l) on such payments.
13 (i) Any retailer having cigarettes in its his or her
14possession on July 1, 2019 June 24, 2012 to which tax stamps
15have been affixed is not required to pay the additional tax
16that begins on July 1, 2019 June 24, 2012 imposed by this
17amendatory Act of the 101st General Assembly this amendatory
18Act of the 97th General Assembly on those stamped cigarettes.
19Any distributor having cigarettes in his or her possession on
20June 24, 2012 to which tax stamps have been affixed, and any
21distributor having stamps in his or her possession on June 24,
222012 that have not been affixed to packages of cigarettes
23before June 24, 2012, is required to pay the additional tax
24that begins on June 24, 2012 imposed by this amendatory Act of
25the 97th General Assembly to the extent the calendar year 2012
26average monthly volume of cigarette stamps in the distributor's

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1possession exceeds the average monthly volume of cigarette
2stamps purchased by the distributor in calendar year 2011. This
3payment, less the discount provided in subsection (b), is due
4when the distributor first makes a purchase of cigarette stamps
5on or after June 24, 2012 or on the first due date of a return
6under this Act occurring on or after June 24, 2012, whichever
7occurs first. Those distributors may elect to pay the
8additional tax on packages of cigarettes to which stamps have
9been affixed and on any stamps in the distributor's possession
10that have not been affixed to packages of cigarettes over a
11period not to exceed 12 months from the due date of the
12additional tax by notifying the Department in writing. The
13first payment for distributors making such election is due when
14the distributor first makes a purchase of cigarette tax stamps
15on or after June 24, 2012 or on the first due date of a return
16under this Act occurring on or after June 24, 2012, whichever
17occurs first. Distributors making such an election are not
18entitled to take the discount provided in subsection (b) on
19such payments.
20 (j) Distributors making sales of cigarettes to secondary
21distributors shall add the amount of the tax to the price of
22the cigarettes sold by the distributors. Secondary
23distributors making sales of cigarettes to retailers shall
24include the amount of the tax in the price of the cigarettes
25sold to retailers. The amount of tax shall not be less than the
26amount of taxes imposed by the State and all local

10100SB0690ham002- 96 -LRB101 04451 SMS 61506 a
1jurisdictions. The amount of local taxes shall be calculated
2based on the location of the retailer's place of business shown
3on the retailer's certificate of registration or
4sub-registration issued to the retailer pursuant to Section 2a
5of the Retailers' Occupation Tax Act. The original packages of
6cigarettes sold to the retailer shall bear all the required
7stamps, or other indicia, for the taxes included in the price
8of cigarettes.
9 (k) The amount of the Cigarette Tax imposed by this Act
10shall be separately stated, apart from the price of the goods,
11by distributors, manufacturer representatives, secondary
12distributors, and retailers, in all bills and sales invoices.
13 (l) (b) The distributor shall be required to collect the
14tax taxes provided under paragraph (a) hereof, and, to cover
15the costs of such collection, shall be allowed a discount
16during any year commencing July 1st and ending the following
17June 30th in accordance with the schedule set out hereinbelow,
18which discount shall be allowed at the time of purchase of the
19stamps when purchase is required by this Act, or at the time
20when the tax is remitted to the Department without the purchase
21of stamps from the Department when that method of paying the
22tax is required or authorized by this Act. Prior to December 1,
231985, a discount equal to 1 2/3% of the amount of the tax up to
24and including the first $700,000 paid hereunder by such
25distributor to the Department during any such year; 1 1/3% of
26the next $700,000 of tax or any part thereof, paid hereunder by

10100SB0690ham002- 97 -LRB101 04451 SMS 61506 a
1such distributor to the Department during any such year; 1% of
2the next $700,000 of tax, or any part thereof, paid hereunder
3by such distributor to the Department during any such year, and
42/3 of 1% of the amount of any additional tax paid hereunder by
5such distributor to the Department during any such year shall
6apply.
7 On and after December 1, 1985, a discount equal to 1.75% of
8the amount of the tax payable under this Act up to and
9including the first $3,000,000 paid hereunder by such
10distributor to the Department during any such year and 1.5% of
11the amount of any additional tax paid hereunder by such
12distributor to the Department during any such year shall apply.
13 Two or more distributors that use a common means of
14affixing revenue tax stamps or that are owned or controlled by
15the same interests shall be treated as a single distributor for
16the purpose of computing the discount.
17 (m) (c) The taxes herein imposed are in addition to all
18other occupation or privilege taxes imposed by the State of
19Illinois, or by any political subdivision thereof, or by any
20municipal corporation.
21(Source: P.A. 100-1171, eff. 1-4-19.)
22 (35 ILCS 130/29 rep.)
23 Section 15-40. The Cigarette Tax Act is amended by
24repealing Section 29.

10100SB0690ham002- 98 -LRB101 04451 SMS 61506 a
1 Section 15-45. The Cigarette Use Tax Act is amended by
2changing Sections 2 and 35 as follows:
3 (35 ILCS 135/2) (from Ch. 120, par. 453.32)
4 Sec. 2. Beginning on July 1, 2019, in place of the
5aggregate tax rate of 99 mills previously imposed by this Act,
6a tax is imposed upon the privilege of using cigarettes in this
7State at the rate of 149 mills per cigarette so used. A tax is
8imposed upon the privilege of using cigarettes in this State,
9at the rate of 6 mills per cigarette so used. On and after
10December 1, 1985, in addition to any other tax imposed by this
11Act, a tax is imposed upon the privilege of using cigarettes in
12this State at a rate of 4 mills per cigarette so used. On and
13after the effective date of this amendatory Act of 1989, in
14addition to any other tax imposed by this Act, a tax is imposed
15upon the privilege of using cigarettes in this State at the
16rate of 5 mills per cigarette so used. On and after the
17effective date of this amendatory Act of 1993, in addition to
18any other tax imposed by this Act, a tax is imposed upon the
19privilege of using cigarettes in this State at a rate of 7
20mills per cigarette so used. On and after December 15, 1997, in
21addition to any other tax imposed by this Act, a tax is imposed
22upon the privilege of using cigarettes in this State at a rate
23of 7 mills per cigarette so used. On and after July 1, 2002, in
24addition to any other tax imposed by this Act, a tax is imposed
25upon the privilege of using cigarettes in this State at a rate

10100SB0690ham002- 99 -LRB101 04451 SMS 61506 a
1of 20.0 mills per cigarette so used. Beginning on June 24,
22012, in addition to any other tax imposed by this Act, a tax
3is imposed upon the privilege of using cigarettes in this State
4at a rate of 50 mills per cigarette so used. The tax taxes
5herein imposed shall be in addition to all other occupation or
6privilege taxes imposed by the State of Illinois or by any
7political subdivision thereof or by any municipal corporation.
8 If the When any tax imposed herein terminates or has
9terminated, distributors who have bought stamps while such tax
10was in effect and who therefore paid such tax, but who can
11show, to the Department's satisfaction, that they sold the
12cigarettes to which they affixed such stamps after such tax had
13terminated and did not recover the tax or its equivalent from
14purchasers, shall be allowed by the Department to take credit
15for such absorbed tax against subsequent tax stamp purchases
16from the Department by such distributors.
17 When the word "tax" is used in this Act, it shall include
18any tax or tax rate imposed by this Act and shall mean the
19singular of "tax" or the plural "taxes" as the context may
20require.
21 Any retailer having cigarettes in its possession on July 1,
222019 to which tax stamps have been affixed is not required to
23pay the additional tax that begins on July 1, 2019 imposed by
24this amendatory Act of the 101st General Assembly on those
25stamped cigarettes. Any distributor having cigarettes in his or
26her possession on July 1, 2019 to which tax stamps have been

10100SB0690ham002- 100 -LRB101 04451 SMS 61506 a
1affixed, and any distributor having stamps in his or her
2possession on July 1, 2019 that have not been affixed to
3packages of cigarettes before July 1, 2019, is required to pay
4the additional tax that begins on July 1, 2019 imposed by this
5amendatory Act of the 101st General Assembly to the extent that
6the volume of affixed and unaffixed stamps in the distributor's
7possession on July 1, 2019 exceeds the average monthly volume
8of cigarette stamps purchased by the distributor in calendar
9year 2018. This payment, less the discount provided in Section
103, is due when the distributor first makes a purchase of
11cigarette stamps on or after July 1, 2019 or on the first due
12date of a return under this Act occurring on or after July 1,
132019, whichever occurs first. Those distributors may elect to
14pay the additional tax on packages of cigarettes to which
15stamps have been affixed and on any stamps in the distributor's
16possession that have not been affixed to packages of cigarettes
17in their possession on July 1, 2019 over a period not to exceed
1812 months from the due date of the additional tax by notifying
19the Department in writing. The first payment for distributors
20making such election is due when the distributor first makes a
21purchase of cigarette tax stamps on or after July 1, 2019 or on
22the first due date of a return under this Act occurring on or
23after July 1, 2019, whichever occurs first. Distributors making
24such an election are not entitled to take the discount provided
25in Section 3 on such payments.
26 Any distributor having cigarettes to which stamps have been

10100SB0690ham002- 101 -LRB101 04451 SMS 61506 a
1affixed in his possession for sale on the effective date of
2this amendatory Act of 1989 shall not be required to pay the
3additional tax imposed by this amendatory Act of 1989 on such
4stamped cigarettes. Any distributor having cigarettes to which
5stamps have been affixed in his or her possession for sale at
612:01 a.m. on the effective date of this amendatory Act of
71993, is required to pay the additional tax imposed by this
8amendatory Act of 1993 on such stamped cigarettes. This payment
9shall be due when the distributor first makes a purchase of
10cigarette tax stamps after the effective date of this
11amendatory Act of 1993, or on the first due date of a return
12under this Act after the effective date of this amendatory Act
13of 1993, whichever occurs first. Once a distributor tenders
14payment of the additional tax to the Department, the
15distributor may purchase stamps from the Department. Any
16distributor having cigarettes to which stamps have been affixed
17in his possession for sale on December 15, 1997 shall not be
18required to pay the additional tax imposed by this amendatory
19Act of 1997 on such stamped cigarettes.
20 Any distributor having cigarettes to which stamps have been
21affixed in his or her possession for sale on July 1, 2002 shall
22not be required to pay the additional tax imposed by this
23amendatory Act of the 92nd General Assembly on those stamped
24cigarettes.
25 Any retailer having cigarettes in his or her possession on
26June 24, 2012 to which tax stamps have been affixed is not

10100SB0690ham002- 102 -LRB101 04451 SMS 61506 a
1required to pay the additional tax that begins on June 24, 2012
2imposed by this amendatory Act of the 97th General Assembly on
3those stamped cigarettes. Any distributor having cigarettes in
4his or her possession on June 24, 2012 to which tax stamps have
5been affixed, and any distributor having stamps in his or her
6possession on June 24, 2012 that have not been affixed to
7packages of cigarettes before June 24, 2012, is required to pay
8the additional tax that begins on June 24, 2012 imposed by this
9amendatory Act of the 97th General Assembly to the extent the
10calendar year 2012 average monthly volume of cigarette stamps
11in the distributor's possession exceeds the average monthly
12volume of cigarette stamps purchased by the distributor in
13calendar year 2011. This payment, less the discount provided in
14Section 3, is due when the distributor first makes a purchase
15of cigarette stamps on or after June 24, 2012 or on the first
16due date of a return under this Act occurring on or after June
1724, 2012, whichever occurs first. Those distributors may elect
18to pay the additional tax on packages of cigarettes to which
19stamps have been affixed and on any stamps in the distributor's
20possession that have not been affixed to packages of cigarettes
21over a period not to exceed 12 months from the due date of the
22additional tax by notifying the Department in writing. The
23first payment for distributors making such election is due when
24the distributor first makes a purchase of cigarette tax stamps
25on or after June 24, 2012 or on the first due date of a return
26under this Act occurring on or after June 24, 2012, whichever

10100SB0690ham002- 103 -LRB101 04451 SMS 61506 a
1occurs first. Distributors making such an election are not
2entitled to take the discount provided in Section 3 on such
3payments.
4(Source: P.A. 97-688, eff. 6-14-12.)
5 (35 ILCS 135/35) (from Ch. 120, par. 453.65)
6 Sec. 35. Distribution of receipts. All moneys received by
7the Department under this Act shall be distributed as provided
8in subsection (a) of Section 2 of the Cigarette Tax Act.
9(Source: P.A. 88-535.)
10 Section 15-50. The Tobacco Products Tax Act of 1995 is
11amended by changing Section 10-10 as follows:
12 (35 ILCS 143/10-10)
13 Sec. 10-10. Tax imposed.
14 (a) Except as otherwise provided in this Section with
15respect to little cigars, on the first day of the third month
16after the month in which this Act becomes law, a tax is imposed
17on any person engaged in business as a distributor of tobacco
18products, as defined in Section 10-5, at the rate of (i) 18% of
19the wholesale price of tobacco products sold or otherwise
20disposed of to retailers or consumers located in this State
21prior to July 1, 2012 and (ii) 36% of the wholesale price of
22tobacco products sold or otherwise disposed of to retailers or
23consumers located in this State beginning on July 1, 2012;

10100SB0690ham002- 104 -LRB101 04451 SMS 61506 a
1except that, beginning on January 1, 2013, the tax on moist
2snuff shall be imposed at a rate of $0.30 per ounce, and a
3proportionate tax at the like rate on all fractional parts of
4an ounce, sold or otherwise disposed of to retailers or
5consumers located in this State. The tax is in addition to all
6other occupation or privilege taxes imposed by the State of
7Illinois, by any political subdivision thereof, or by any
8municipal corporation. However, the tax is not imposed upon any
9activity in that business in interstate commerce or otherwise,
10to the extent to which that activity may not, under the
11Constitution and Statutes of the United States, be made the
12subject of taxation by this State, and except that, beginning
13July 1, 2013, the tax on little cigars shall be imposed at the
14same rate, and the proceeds shall be distributed in the same
15manner, as the tax imposed on cigarettes under the Cigarette
16Tax Act. The tax is also not imposed on sales made to the
17United States or any entity thereof.
18 (b) Notwithstanding subsection (a) of this Section,
19stamping distributors of packages of little cigars containing
2020 or 25 little cigars sold or otherwise disposed of in this
21State shall remit the tax by purchasing tax stamps from the
22Department and affixing them to packages of little cigars in
23the same manner as stamps are purchased and affixed to
24cigarettes under the Cigarette Tax Act, unless the stamping
25distributor sells or otherwise disposes of those packages of
26little cigars to another stamping distributor. Only persons

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1meeting the definition of "stamping distributor" contained in
2Section 10-5 of this Act may affix stamps to packages of little
3cigars containing 20 or 25 little cigars. Stamping distributors
4may not sell or dispose of little cigars at retail to consumers
5or users at locations where stamping distributors affix stamps
6to packages of little cigars containing 20 or 25 little cigars.
7 (c) The impact of the tax levied by this Act is imposed
8upon distributors engaged in the business of selling tobacco
9products to retailers or consumers in this State. Whenever a
10stamping distributor brings or causes to be brought into this
11State from without this State, or purchases from without or
12within this State, any packages of little cigars containing 20
13or 25 little cigars upon which there are no tax stamps affixed
14as required by this Act, for purposes of resale or disposal in
15this State to a person not a stamping distributor, then such
16stamping distributor shall pay the tax to the Department and
17add the amount of the tax to the price of such packages sold by
18such stamping distributor. Payment of the tax shall be
19evidenced by a stamp or stamps affixed to each package of
20little cigars containing 20 or 25 little cigars.
21 Stamping distributors paying the tax to the Department on
22packages of little cigars containing 20 or 25 little cigars
23sold to other distributors, wholesalers or retailers shall add
24the amount of the tax to the price of the packages of little
25cigars containing 20 or 25 little cigars sold by such stamping
26distributors.

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1 (d) Beginning on January 1, 2013, the tax rate imposed per
2ounce of moist snuff may not exceed 15% of the tax imposed upon
3a package of 20 cigarettes pursuant to the Cigarette Tax Act.
4 (e) All moneys received by the Department under this Act
5from sales occurring prior to July 1, 2012 shall be paid into
6the Long-Term Care Provider Fund of the State Treasury. Of the
7moneys received by the Department from sales occurring on or
8after July 1, 2012, except for moneys received from the tax
9imposed on the sale of little cigars, 50% shall be paid into
10the Long-Term Care Provider Fund and 50% shall be paid into the
11Healthcare Provider Relief Fund. Beginning July 1, 2013, all
12moneys received by the Department under this Act from the tax
13imposed on little cigars shall be distributed as provided in
14subsection (a) of Section 2 of the Cigarette Tax Act.
15(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)
16 Section 15-55. The Property Tax Code is amended by changing
17Section 31-10 as follows:
18 (35 ILCS 200/31-10)
19 Sec. 31-10. Imposition of tax. A tax is imposed on the
20privilege of transferring title to real estate located in
21Illinois, on the privilege of transferring a beneficial
22interest in real property located in Illinois, and on the
23privilege of transferring a controlling interest in a real
24estate entity owning property located in Illinois, at the rate

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1of 50¢ for each $500 of value or fraction of $500 stated in the
2declaration required by Section 31-25. On and after July 1,
32019, the rate of tax imposed is increased to $1.50 for each
4$500 of value or fraction of $500 stated in such declaration if
5the transaction involves nonresidential real estate. If,
6however, the transferring document states that the real estate,
7beneficial interest, or controlling interest is transferred
8subject to a mortgage, the amount of the mortgage remaining
9outstanding at the time of transfer shall not be included in
10the basis of computing the tax. The tax is due if the transfer
11is made by one or more related transactions or involves one or
12more persons or entities and whether or not a document is
13recorded.
14(Source: P.A. 93-657, eff. 6-1-04; 93-1099, eff. 6-1-05.)
15 Section 15-80. The Motor Vehicle Retail Installment Sales
16Act is amended by changing Section 11.1 as follows:
17 (815 ILCS 375/11.1) (from Ch. 121 1/2, par. 571.1)
18 Sec. 11.1.
19 (a) A seller in a retail installment contract may add a
20"documentary fee" for processing documents and performing
21services related to closing of a sale. The maximum amount that
22may be charged by a seller for a documentary fee is the base
23documentary fee beginning January 1, 2008 until January 1,
242020, of $150, which shall be subject to an annual rate

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1adjustment equal to the percentage of change in the Bureau of
2Labor Statistics Consumer Price Index. Every retail
3installment contract under this Act shall contain or be
4accompanied by a notice containing the following information:
5 "DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.
6A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO
7BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED
8TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING
9JANUARY 1, 2008, WAS $150. THE MAXIMUM AMOUNT THAT MAY BE
10CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF
11$150, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL
12TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS
13CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."
14 (b) A seller in a retail installment contract may add a
15"documentary fee" for processing documents and performing
16services related to closing of a sale. The maximum amount that
17may be charged by a seller for a documentary fee is the base
18documentary fee beginning January 1, 2020, of $300, which shall
19be subject to an annual rate adjustment equal to the percentage
20of change in the Bureau of Labor Statistics Consumer Price
21Index. Every retail installment contract under this Act shall
22contain or be accompanied by a notice containing the following
23information:
24 "DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.
25A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO
26BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED

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1TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING
2JANUARY 1, 2020, WAS $300. THE MAXIMUM AMOUNT THAT MAY BE
3CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF
4$300, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL
5TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS
6CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."
7(Source: P.A. 95-280, eff. 1-1-08.)
8
Article 20. Illinois Works Jobs Program Act
9 Section 20-1. Short title. This Article may be cited as the
10Illinois Works Jobs Program Act. References in this Article to
11"this Act" mean this Article.
12 Section 20-5. Findings. It is in the public policy interest
13of the State to ensure that all Illinois residents have access
14to State capital projects and careers in the construction
15industry and building trades, including those who have been
16historically underrepresented in those trades. To ensure that
17those interests are met, the General Assembly hereby creates
18the Illinois Works Preapprenticeship Program and the Illinois
19Works Apprenticeship Initiative.
20 Section 20-10. Definitions.
21 "Apprentice" means a participant in an apprenticeship
22program approved by and registered with the United States

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1Department of Labor's Bureau of Apprenticeship and Training.
2 "Apprenticeship program" means an apprenticeship and
3training program approved by and registered with the United
4States Department of Labor's Bureau of Apprenticeship and
5Training.
6 "Bid credit" means a virtual dollar for a contractor or
7subcontractor to use toward future bids for public works
8contracts.
9 "Community-based organization" means a nonprofit
10organization selected by the Department to participate in the
11Illinois Works Preapprenticeship Program. To qualify as a
12"community-based organization", the organization must
13demonstrate the following:
14 (1) the ability to effectively serve diverse and
15 underrepresented populations, including by providing
16 employment services to such populations;
17 (2) knowledge of the construction and building trades;
18 (3) the ability to recruit, prescreen, and provide
19 preapprenticeship training to prepare workers for
20 employment in the construction and building trades; and
21 (4) a plan to provide the following:
22 (A) preparatory classes;
23 (B) workplace readiness skills, such as resume
24 preparation and interviewing techniques;
25 (C) strategies for overcoming barriers to entry
26 and completion of an apprenticeship program; and

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1 (D) any prerequisites for acceptance into an
2 apprenticeship program.
3 "Contractor" means a person, corporation, partnership,
4limited liability company, or joint venture entering into a
5contract with the State or any State agency to construct a
6public work.
7 "Department" means the Department of Commerce and Economic
8Opportunity.
9 "Labor hours" means the total hours for workers who are
10receiving an hourly wage and who are directly employed for the
11public works project. "Labor hours" includes hours performed by
12workers employed by the contractor and subcontractors on the
13public works project. "Labor hours" does not include hours
14worked by the forepersons, superintendents, owners, and
15workers who are not subject to prevailing wage requirements.
16 "Minorities" means minority persons as defined in the
17Business Enterprise for Minorities, Women, and Persons with
18Disabilities Act.
19 "Public works" means all projects that constitute public
20works under the Prevailing Wage Act.
21 "Subcontractor" means a person, corporation, partnership,
22limited liability company, or joint venture that has contracted
23with the contractor to perform all or part of the work to
24construct a public work by a contractor.
25 "Underrepresented populations" means populations
26identified by the Department that historically have had

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1barriers to entry or advancement in the workforce.
2"Underrepresented populations" includes, but is not limited
3to, minorities, women, and veterans.
4 Section 20-15. Illinois Works Preapprenticeship Program;
5Illinois Works Bid Credit Program.
6 (a) The Illinois Works Preapprenticeship Program is
7established and shall be administered by the Department. The
8goal of the Illinois Works Preapprenticeship Program is to
9create a network of community-based organizations throughout
10the State that will recruit, prescreen, and provide
11preapprenticeship skills training to create a qualified,
12diverse pipeline of workers who are prepared for careers in the
13construction and building trades. Upon completion of the
14Illinois Works Preapprenticeship Program, the candidates will
15be skilled and work-ready.
16 (b) There is created the Illinois Works Fund, a special
17fund in the State treasury. The Illinois Works Fund shall be
18administered by the Department. The Illinois Works Fund shall
19be used to provide funding for community-based organizations
20throughout the State. In addition to any other transfers that
21may be provided for by law, on and after July 1, 2019 and until
22June 30, 2020, at the direction of the Director of the
23Governor's Office of Management and Budget, the State
24Comptroller shall direct and the State Treasurer shall transfer
25amounts not exceeding a total of $25,000,000 from the Rebuild

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1Illinois Projects Fund to the Illinois Works Fund.
2 (c) Each community-based organization that receives
3funding from the Illinois Works Fund shall provide an annual
4report to the Illinois Works Review Panel by April 1 of each
5calendar year. The annual report shall include the following
6information:
7 (1) a description of the community-based
8 organization's recruitment, screening, and training
9 efforts;
10 (2) the number of individuals who apply to, participate
11 in, and complete the community-based organization's
12 program, broken down by race, gender, age, and veteran
13 status; and
14 (3) the number of the individuals referenced in item
15 (2) of this subsection who are initially accepted and
16 placed into apprenticeship programs in the construction
17 and building trades.
18 (d) The Department shall create and administer the Illinois
19Works Bid Credit Program that shall provide economic
20incentives, through bid credits, to encourage contractors and
21subcontractors to provide contracting and employment
22opportunities to historically underrepresented populations in
23the construction industry.
24 The Illinois Works Bid Credit Program shall allow
25contractors and subcontractors to earn bid credits for use
26toward future bids for public works projects in order to

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1increase the chances that the contractor and the subcontractors
2will be selected.
3 Contractors or subcontractors may be eligible for bid
4credits for employing apprentices who have completed the
5Illinois Works Preapprenticeship Program. Contractors or
6subcontractors shall earn bid credits at a rate established by
7the Department and published on the Department's website,
8including any appropriate caps.
9 The Illinois Works Credit Bank is hereby created and shall
10be administered by the Department. The Illinois Works Credit
11Bank shall track the bid credits.
12 A contractor or subcontractor who has been awarded bid
13credits under any other State program for employing apprentices
14who have completed the Illinois Works Preapprenticeship
15Program is not eligible to receive bid credits under the
16Illinois Works Bid Credit Program relating to the same
17contract.
18 The Department shall report to the Illinois Works Review
19Panel the following: (i) the number of bid credits awarded by
20the Department; (ii) the number of bid credits submitted by the
21contractor or subcontractor to the agency administering the
22public works contract; and (iii) the number of bid credits
23accepted by the agency for such contract. Any agency that
24awards bid credits pursuant to the Illinois Works Credit Bank
25Program shall report to the Department the number of bid
26credits it accepted for the public works contract.

10100SB0690ham002- 115 -LRB101 04451 SMS 61506 a
1 Upon a finding that a contractor or subcontractor has
2reported falsified records to the Department in order to
3fraudulently obtain bid credits, the Department shall
4permanently bar the contractor or subcontractor from
5participating in the Illinois Works Bid Credit Program and may
6suspend the contractor or subcontractor from bidding on or
7participating in any public works project. False or fraudulent
8claims for payment relating to false bid credits may be subject
9to damages and penalties under the Illinois False Claims Act or
10other applicable law.
11 (e) The Department shall adopt any rules deemed necessary
12to implement this Section.
13 Section 20-20. Illinois Works Apprenticeship Initiative.
14 (a) The Illinois Works Apprenticeship Initiative is
15established and shall be administered by the Department.
16 (1) Subject to the exceptions set forth in subsection
17 (b) of this Section, apprentices shall be utilized on all
18 public works projects in accordance with this subsection
19 (a).
20 (2) For public works projects, the goal of the Illinois
21 Works Apprenticeship Initiative is that apprentices will
22 perform either 10% of the total labor hours actually worked
23 in each prevailing wage classification or 10% of the
24 estimated labor hours in each prevailing wage
25 classification, whichever is less.

10100SB0690ham002- 116 -LRB101 04451 SMS 61506 a
1 (b) Before or during the term of a contract subject to this
2Section, the Department may reduce or waive the goals set forth
3in paragraph (2) of subsection (a). Prior to the Department
4granting a request for a reduction or waiver, the Department
5shall hold a public hearing and shall consult with the Business
6Enterprise Council under the Business Enterprise for
7Minorities, Women, and Persons with Disabilities Act and the
8Chief Procurement Officer of the agency administering the
9public works contract. The Department may grant a reduction or
10waiver upon a determination that:
11 (1) the contractor or subcontractor has demonstrated
12 that insufficient apprentices are available;
13 (2) the reasonable and necessary requirements of the
14 contract do not allow the goal to be met;
15 (3) there is a disproportionately high ratio of
16 material costs to labor hours that makes meeting the goal
17 infeasible; or
18 (4) apprentice labor hour goals conflict with existing
19 requirements, including federal requirements, in
20 connection with the public work.
21 (c) Contractors and subcontractors must submit a
22certification to the Department and the agency that is
23administering the contract demonstrating that the contractor
24or subcontractor has either:
25 (1) met the apprentice labor hour goals set forth in
26 paragraph (2) of subsection (a); or

10100SB0690ham002- 117 -LRB101 04451 SMS 61506 a
1 (2) received a reduction or waiver pursuant to
2 subsection (b).
3 It shall be deemed to be a material breach of the contract
4and entitle the State to declare a default, terminate the
5contract, and exercise those remedies provided for in the
6contract, at law, or in equity if the contractor or
7subcontractor fails to submit the certification required in
8this subsection or submits false or misleading information.
9 (d) No later than one year after the effective date of this
10Act, and by April 1 of every calendar year thereafter, the
11Department of Labor shall submit a report to the Illinois Works
12Review Panel regarding the use of apprentices under the
13Illinois Works Apprenticeship Initiative for public works
14projects. To the extent it is available, the report shall
15include the following information:
16 (1) the total number of labor hours on each project and
17 the percentage of labor hours actually worked by
18 apprentices on each public works project;
19 (2) the number of apprentices used in each public works
20 project, broken down by trade; and
21 (3) the number and percentage of minorities, women, and
22 veterans utilized as apprentices on each public works
23 project.
24 (e) The Department shall adopt any rules deemed necessary
25to implement the Illinois Works Apprenticeship Initiative.
26 (f) The Illinois Works Apprenticeship Initiative shall not

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1interfere with any contracts or program in existence on the
2effective date of this Act.
3 Section 20-25. The Illinois Works Review Panel.
4 (a) The Illinois Works Review Panel is created and shall be
5comprised of 11 members, each serving 3-year terms. The Speaker
6of the House of Representatives and the President of the Senate
7shall each appoint 2 members. The Minority Leader of the House
8of Representatives and the Minority Leader of the Senate shall
9each appoint one member. The Director of Commerce and Economic
10Opportunity, or his or her designee, shall serve as a member.
11The Governor shall appoint the following individuals to serve
12as members: a representative from a contractor organization; a
13representative from a labor organization; and 2 members of the
14public with workforce development expertise, one of whom shall
15be a representative of a nonprofit organization that addresses
16workforce development.
17 (b) The members of the Illinois Works Review Panel shall
18make recommendations to the Department regarding
19identification and evaluation of community-based
20organizations.
21 (c) The Illinois Works Review Panel shall meet, at least
22quarterly, to review and evaluate (i) the Illinois Works
23Preapprenticeship Program and the Illinois Works
24Apprenticeship Initiative, (ii) ideas to diversify the
25workforce in the construction industry in Illinois, and (iii)

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1workforce demographic data collected by the Illinois
2Department of Labor.
3 (d) All State contracts shall include a requirement that
4the contractor and subcontractor shall, upon reasonable
5notice, appear before and respond to requests for information
6from the Illinois Works Review Panel.
7 (e) By August 1, 2020, and every August 1 thereafter, the
8Illinois Works Review Panel shall report to the General
9Assembly on its evaluation of the Illinois Works
10Preapprenticeship Program and the Illinois Works
11Apprenticeship initiative, including any recommended
12modifications.
13 Section 20-900. The State Finance Act is amended by adding
14Section 5.895 as follows:
15 (30 ILCS 105/5.895 new)
16 Sec. 5.895. The Illinois Works Fund.
17 Section 20-905. The Illinois Procurement Code is amended by
18changing Section 20-10 as follows:
19 (30 ILCS 500/20-10)
20 (Text of Section from P.A. 96-159, 96-588, 97-96, 97-895,
2198-1076, 99-906 and 100-43)
22 Sec. 20-10. Competitive sealed bidding; reverse auction.

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1 (a) Conditions for use. All contracts shall be awarded by
2competitive sealed bidding except as otherwise provided in
3Section 20-5.
4 (b) Invitation for bids. An invitation for bids shall be
5issued and shall include a purchase description and the
6material contractual terms and conditions applicable to the
7procurement.
8 (c) Public notice. Public notice of the invitation for bids
9shall be published in the Illinois Procurement Bulletin at
10least 14 calendar days before the date set in the invitation
11for the opening of bids.
12 (d) Bid opening. Bids shall be opened publicly or through
13an electronic procurement system in the presence of one or more
14witnesses at the time and place designated in the invitation
15for bids. The name of each bidder, including earned and applied
16bid credit from the Illinois Works Jobs Program Act, the amount
17of each bid, and other relevant information as may be specified
18by rule shall be recorded. After the award of the contract, the
19winning bid and the record of each unsuccessful bid shall be
20open to public inspection.
21 (e) Bid acceptance and bid evaluation. Bids shall be
22unconditionally accepted without alteration or correction,
23except as authorized in this Code. Bids shall be evaluated
24based on the requirements set forth in the invitation for bids,
25which may include criteria to determine acceptability such as
26inspection, testing, quality, workmanship, delivery, and

10100SB0690ham002- 121 -LRB101 04451 SMS 61506 a
1suitability for a particular purpose. Those criteria that will
2affect the bid price and be considered in evaluation for award,
3such as discounts, transportation costs, and total or life
4cycle costs, shall be objectively measurable. The invitation
5for bids shall set forth the evaluation criteria to be used.
6 (f) Correction or withdrawal of bids. Correction or
7withdrawal of inadvertently erroneous bids before or after
8award, or cancellation of awards of contracts based on bid
9mistakes, shall be permitted in accordance with rules. After
10bid opening, no changes in bid prices or other provisions of
11bids prejudicial to the interest of the State or fair
12competition shall be permitted. All decisions to permit the
13correction or withdrawal of bids based on bid mistakes shall be
14supported by written determination made by a State purchasing
15officer.
16 (g) Award. The contract shall be awarded with reasonable
17promptness by written notice to the lowest responsible and
18responsive bidder whose bid meets the requirements and criteria
19set forth in the invitation for bids, except when a State
20purchasing officer determines it is not in the best interest of
21the State and by written explanation determines another bidder
22shall receive the award. The explanation shall appear in the
23appropriate volume of the Illinois Procurement Bulletin. The
24written explanation must include:
25 (1) a description of the agency's needs;
26 (2) a determination that the anticipated cost will be

10100SB0690ham002- 122 -LRB101 04451 SMS 61506 a
1 fair and reasonable;
2 (3) a listing of all responsible and responsive
3 bidders; and
4 (4) the name of the bidder selected, the total contract
5 price, and the reasons for selecting that bidder.
6 Each chief procurement officer may adopt guidelines to
7implement the requirements of this subsection (g).
8 The written explanation shall be filed with the Legislative
9Audit Commission and the Procurement Policy Board, and be made
10available for inspection by the public, within 30 calendar days
11after the agency's decision to award the contract.
12 (h) Multi-step sealed bidding. When it is considered
13impracticable to initially prepare a purchase description to
14support an award based on price, an invitation for bids may be
15issued requesting the submission of unpriced offers to be
16followed by an invitation for bids limited to those bidders
17whose offers have been qualified under the criteria set forth
18in the first solicitation.
19 (i) Alternative procedures. Notwithstanding any other
20provision of this Act to the contrary, the Director of the
21Illinois Power Agency may create alternative bidding
22procedures to be used in procuring professional services under
23Section 1-56, subsections (a) and (c) of Section 1-75 and
24subsection (d) of Section 1-78 of the Illinois Power Agency Act
25and Section 16-111.5(c) of the Public Utilities Act and to
26procure renewable energy resources under Section 1-56 of the

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1Illinois Power Agency Act. These alternative procedures shall
2be set forth together with the other criteria contained in the
3invitation for bids, and shall appear in the appropriate volume
4of the Illinois Procurement Bulletin.
5 (j) Reverse auction. Notwithstanding any other provision
6of this Section and in accordance with rules adopted by the
7chief procurement officer, that chief procurement officer may
8procure supplies or services through a competitive electronic
9auction bidding process after the chief procurement officer
10determines that the use of such a process will be in the best
11interest of the State. The chief procurement officer shall
12publish that determination in his or her next volume of the
13Illinois Procurement Bulletin.
14 An invitation for bids shall be issued and shall include
15(i) a procurement description, (ii) all contractual terms,
16whenever practical, and (iii) conditions applicable to the
17procurement, including a notice that bids will be received in
18an electronic auction manner.
19 Public notice of the invitation for bids shall be given in
20the same manner as provided in subsection (c).
21 Bids shall be accepted electronically at the time and in
22the manner designated in the invitation for bids. During the
23auction, a bidder's price shall be disclosed to other bidders.
24Bidders shall have the opportunity to reduce their bid prices
25during the auction. At the conclusion of the auction, the
26record of the bid prices received and the name of each bidder

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1shall be open to public inspection.
2 After the auction period has terminated, withdrawal of bids
3shall be permitted as provided in subsection (f).
4 The contract shall be awarded within 60 calendar days after
5the auction by written notice to the lowest responsible bidder,
6or all bids shall be rejected except as otherwise provided in
7this Code. Extensions of the date for the award may be made by
8mutual written consent of the State purchasing officer and the
9lowest responsible bidder.
10 This subsection does not apply to (i) procurements of
11professional and artistic services, (ii) telecommunications
12services, communication services, and information services,
13and (iii) contracts for construction projects, including
14design professional services.
15(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17.)
16 (Text of Section from P.A. 96-159, 96-795, 97-96, 97-895,
1798-1076, 99-906, and 100-43)
18 Sec. 20-10. Competitive sealed bidding; reverse auction.
19 (a) Conditions for use. All contracts shall be awarded by
20competitive sealed bidding except as otherwise provided in
21Section 20-5.
22 (b) Invitation for bids. An invitation for bids shall be
23issued and shall include a purchase description and the
24material contractual terms and conditions applicable to the
25procurement.

10100SB0690ham002- 125 -LRB101 04451 SMS 61506 a
1 (c) Public notice. Public notice of the invitation for bids
2shall be published in the Illinois Procurement Bulletin at
3least 14 calendar days before the date set in the invitation
4for the opening of bids.
5 (d) Bid opening. Bids shall be opened publicly or through
6an electronic procurement system in the presence of one or more
7witnesses at the time and place designated in the invitation
8for bids. The name of each bidder, including earned and applied
9bid credit from the Illinois Works Jobs Program Act, the amount
10of each bid, and other relevant information as may be specified
11by rule shall be recorded. After the award of the contract, the
12winning bid and the record of each unsuccessful bid shall be
13open to public inspection.
14 (e) Bid acceptance and bid evaluation. Bids shall be
15unconditionally accepted without alteration or correction,
16except as authorized in this Code. Bids shall be evaluated
17based on the requirements set forth in the invitation for bids,
18which may include criteria to determine acceptability such as
19inspection, testing, quality, workmanship, delivery, and
20suitability for a particular purpose. Those criteria that will
21affect the bid price and be considered in evaluation for award,
22such as discounts, transportation costs, and total or life
23cycle costs, shall be objectively measurable. The invitation
24for bids shall set forth the evaluation criteria to be used.
25 (f) Correction or withdrawal of bids. Correction or
26withdrawal of inadvertently erroneous bids before or after

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1award, or cancellation of awards of contracts based on bid
2mistakes, shall be permitted in accordance with rules. After
3bid opening, no changes in bid prices or other provisions of
4bids prejudicial to the interest of the State or fair
5competition shall be permitted. All decisions to permit the
6correction or withdrawal of bids based on bid mistakes shall be
7supported by written determination made by a State purchasing
8officer.
9 (g) Award. The contract shall be awarded with reasonable
10promptness by written notice to the lowest responsible and
11responsive bidder whose bid meets the requirements and criteria
12set forth in the invitation for bids, except when a State
13purchasing officer determines it is not in the best interest of
14the State and by written explanation determines another bidder
15shall receive the award. The explanation shall appear in the
16appropriate volume of the Illinois Procurement Bulletin. The
17written explanation must include:
18 (1) a description of the agency's needs;
19 (2) a determination that the anticipated cost will be
20 fair and reasonable;
21 (3) a listing of all responsible and responsive
22 bidders; and
23 (4) the name of the bidder selected, the total contract
24 price, and the reasons for selecting that bidder.
25 Each chief procurement officer may adopt guidelines to
26implement the requirements of this subsection (g).

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1 The written explanation shall be filed with the Legislative
2Audit Commission and the Procurement Policy Board, and be made
3available for inspection by the public, within 30 days after
4the agency's decision to award the contract.
5 (h) Multi-step sealed bidding. When it is considered
6impracticable to initially prepare a purchase description to
7support an award based on price, an invitation for bids may be
8issued requesting the submission of unpriced offers to be
9followed by an invitation for bids limited to those bidders
10whose offers have been qualified under the criteria set forth
11in the first solicitation.
12 (i) Alternative procedures. Notwithstanding any other
13provision of this Act to the contrary, the Director of the
14Illinois Power Agency may create alternative bidding
15procedures to be used in procuring professional services under
16subsections (a) and (c) of Section 1-75 and subsection (d) of
17Section 1-78 of the Illinois Power Agency Act and Section
1816-111.5(c) of the Public Utilities Act and to procure
19renewable energy resources under Section 1-56 of the Illinois
20Power Agency Act. These alternative procedures shall be set
21forth together with the other criteria contained in the
22invitation for bids, and shall appear in the appropriate volume
23of the Illinois Procurement Bulletin.
24 (j) Reverse auction. Notwithstanding any other provision
25of this Section and in accordance with rules adopted by the
26chief procurement officer, that chief procurement officer may

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1procure supplies or services through a competitive electronic
2auction bidding process after the chief procurement officer
3determines that the use of such a process will be in the best
4interest of the State. The chief procurement officer shall
5publish that determination in his or her next volume of the
6Illinois Procurement Bulletin.
7 An invitation for bids shall be issued and shall include
8(i) a procurement description, (ii) all contractual terms,
9whenever practical, and (iii) conditions applicable to the
10procurement, including a notice that bids will be received in
11an electronic auction manner.
12 Public notice of the invitation for bids shall be given in
13the same manner as provided in subsection (c).
14 Bids shall be accepted electronically at the time and in
15the manner designated in the invitation for bids. During the
16auction, a bidder's price shall be disclosed to other bidders.
17Bidders shall have the opportunity to reduce their bid prices
18during the auction. At the conclusion of the auction, the
19record of the bid prices received and the name of each bidder
20shall be open to public inspection.
21 After the auction period has terminated, withdrawal of bids
22shall be permitted as provided in subsection (f).
23 The contract shall be awarded within 60 calendar days after
24the auction by written notice to the lowest responsible bidder,
25or all bids shall be rejected except as otherwise provided in
26this Code. Extensions of the date for the award may be made by

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1mutual written consent of the State purchasing officer and the
2lowest responsible bidder.
3 This subsection does not apply to (i) procurements of
4professional and artistic services, (ii) telecommunications
5services, communication services, and information services,
6and (iii) contracts for construction projects, including
7design professional services.
8(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17.)
9 Section 20-910. The Prevailing Wage Act is amended by
10changing Section 5 as follows:
11 (820 ILCS 130/5) (from Ch. 48, par. 39s-5)
12 (Text of Section before amendment by P.A. 100-1177)
13 Sec. 5. Certified payroll.
14 (a) Any contractor and each subcontractor who participates
15in public works shall:
16 (1) make and keep, for a period of not less than 3
17 years from the date of the last payment made before January
18 1, 2014 (the effective date of Public Act 98-328) and for a
19 period of 5 years from the date of the last payment made on
20 or after January 1, 2014 (the effective date of Public Act
21 98-328) on a contract or subcontract for public works,
22 records of all laborers, mechanics, and other workers
23 employed by them on the project; the records shall include
24 (i) the worker's name, (ii) the worker's address, (iii) the

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1 worker's telephone number when available, (iv) the
2 worker's social security number, (v) the worker's
3 classification or classifications, (vi) the worker's skill
4 level, such as apprentice or journeyman, (vii) (vi) the
5 worker's gross and net wages paid in each pay period,
6 (viii) (vii) the worker's number of hours worked each day,
7 (ix) (viii) the worker's starting and ending times of work
8 each day, (x) (ix) the worker's hourly wage rate, (xi) (x)
9 the worker's hourly overtime wage rate, (xii) (xi) the
10 worker's hourly fringe benefit rates, (xiii) (xii) the name
11 and address of each fringe benefit fund, (xiv) (xiii) the
12 plan sponsor of each fringe benefit, if applicable, and
13 (xv) (xiv) the plan administrator of each fringe benefit,
14 if applicable; and
15 (2) no later than the 15th day of each calendar month
16 file a certified payroll for the immediately preceding
17 month with the public body in charge of the project. A
18 certified payroll must be filed for only those calendar
19 months during which construction on a public works project
20 has occurred. The certified payroll shall consist of a
21 complete copy of the records identified in paragraph (1) of
22 this subsection (a), but may exclude the starting and
23 ending times of work each day. The certified payroll shall
24 be accompanied by a statement signed by the contractor or
25 subcontractor or an officer, employee, or agent of the
26 contractor or subcontractor which avers that: (i) he or she

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1 has examined the certified payroll records required to be
2 submitted by the Act and such records are true and
3 accurate; (ii) the hourly rate paid to each worker is not
4 less than the general prevailing rate of hourly wages
5 required by this Act; and (iii) the contractor or
6 subcontractor is aware that filing a certified payroll that
7 he or she knows to be false is a Class A misdemeanor. A
8 general contractor is not prohibited from relying on the
9 certification of a lower tier subcontractor, provided the
10 general contractor does not knowingly rely upon a
11 subcontractor's false certification. Any contractor or
12 subcontractor subject to this Act and any officer,
13 employee, or agent of such contractor or subcontractor
14 whose duty as such officer, employee, or agent it is to
15 file such certified payroll who willfully fails to file
16 such a certified payroll on or before the date such
17 certified payroll is required by this paragraph to be filed
18 and any person who willfully files a false certified
19 payroll that is false as to any material fact is in
20 violation of this Act and guilty of a Class A misdemeanor.
21 The public body in charge of the project shall keep the
22 records submitted in accordance with this paragraph (2) of
23 subsection (a) before January 1, 2014 (the effective date
24 of Public Act 98-328) for a period of not less than 3
25 years, and the records submitted in accordance with this
26 paragraph (2) of subsection (a) on or after January 1, 2014

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1 (the effective date of Public Act 98-328) for a period of 5
2 years, from the date of the last payment for work on a
3 contract or subcontract for public works. The records
4 submitted in accordance with this paragraph (2) of
5 subsection (a) shall be considered public records, except
6 an employee's address, telephone number, and social
7 security number, and made available in accordance with the
8 Freedom of Information Act. The public body shall accept
9 any reasonable submissions by the contractor that meet the
10 requirements of this Section.
11 A contractor, subcontractor, or public body may retain
12records required under this Section in paper or electronic
13format.
14 (b) Upon 7 business days' notice, the contractor and each
15subcontractor shall make available for inspection and copying
16at a location within this State during reasonable hours, the
17records identified in paragraph (1) of subsection (a) of this
18Section to the public body in charge of the project, its
19officers and agents, the Director of Labor and his deputies and
20agents, and to federal, State, or local law enforcement
21agencies and prosecutors.
22 (c) A contractor or subcontractor who remits contributions
23to fringe benefit funds that are jointly maintained and jointly
24governed by one or more employers and one or more labor
25organizations in accordance with the federal Labor Management
26Relations Act shall make and keep certified payroll records

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1that include the information required under items (i) through
2(ix) (viii) of paragraph (1) of subsection (a) only. However,
3the information required under items (x) (ix) through (xv)
4(xiv) of paragraph (1) of subsection (a) shall be required for
5any contractor or subcontractor who remits contributions to a
6fringe benefit fund that is not jointly maintained and jointly
7governed by one or more employers and one or more labor
8organizations in accordance with the federal Labor Management
9Relations Act.
10(Source: P.A. 97-571, eff. 1-1-12; 98-328, eff. 1-1-14; 98-482,
11eff. 1-1-14; 98-756, eff. 7-16-14.)
12 (Text of Section after amendment by P.A. 100-1177)
13 Sec. 5. Certified payroll.
14 (a) Any contractor and each subcontractor who participates
15in public works shall:
16 (1) make and keep, for a period of not less than 3
17 years from the date of the last payment made before January
18 1, 2014 (the effective date of Public Act 98-328) and for a
19 period of 5 years from the date of the last payment made on
20 or after January 1, 2014 (the effective date of Public Act
21 98-328) on a contract or subcontract for public works,
22 records of all laborers, mechanics, and other workers
23 employed by them on the project; the records shall include
24 (i) the worker's name, (ii) the worker's address, (iii) the
25 worker's telephone number when available, (iv) the last 4

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1 digits of the worker's social security number, (v) the
2 worker's gender, (vi) the worker's race, (vii) the worker's
3 ethnicity, (viii) veteran status, (ix) the worker's
4 classification or classifications, (x) the worker's skill
5 level, such as apprentice or journeyman, (xi) (x) the
6 worker's gross and net wages paid in each pay period, (xii)
7 (xi) the worker's number of hours worked each day, (xiii)
8 (xii) the worker's starting and ending times of work each
9 day, (xiv) (xiii) the worker's hourly wage rate, (xv) (xiv)
10 the worker's hourly overtime wage rate, (xvi) (xv) the
11 worker's hourly fringe benefit rates, (xvii) (xvi) the name
12 and address of each fringe benefit fund, (xviii) (xvii) the
13 plan sponsor of each fringe benefit, if applicable, and
14 (xix) (xviii) the plan administrator of each fringe
15 benefit, if applicable; and
16 (2) no later than the 15th day of each calendar month
17 file a certified payroll for the immediately preceding
18 month with the public body in charge of the project until
19 the Department of Labor activates the database created
20 under Section 5.1 at which time certified payroll shall
21 only be submitted to that database, except for projects
22 done by State agencies that opt to have contractors submit
23 certified payrolls directly to that State agency. A State
24 agency that opts to directly receive certified payrolls
25 must submit the required information in a specified
26 electronic format to the Department of Labor no later than

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1 10 days after the certified payroll was filed with the
2 State agency. A certified payroll must be filed for only
3 those calendar months during which construction on a public
4 works project has occurred. The certified payroll shall
5 consist of a complete copy of the records identified in
6 paragraph (1) of this subsection (a), but may exclude the
7 starting and ending times of work each day. The certified
8 payroll shall be accompanied by a statement signed by the
9 contractor or subcontractor or an officer, employee, or
10 agent of the contractor or subcontractor which avers that:
11 (i) he or she has examined the certified payroll records
12 required to be submitted by the Act and such records are
13 true and accurate; (ii) the hourly rate paid to each worker
14 is not less than the general prevailing rate of hourly
15 wages required by this Act; and (iii) the contractor or
16 subcontractor is aware that filing a certified payroll that
17 he or she knows to be false is a Class A misdemeanor. A
18 general contractor is not prohibited from relying on the
19 certification of a lower tier subcontractor, provided the
20 general contractor does not knowingly rely upon a
21 subcontractor's false certification. Any contractor or
22 subcontractor subject to this Act and any officer,
23 employee, or agent of such contractor or subcontractor
24 whose duty as such officer, employee, or agent it is to
25 file such certified payroll who willfully fails to file
26 such a certified payroll on or before the date such

10100SB0690ham002- 136 -LRB101 04451 SMS 61506 a
1 certified payroll is required by this paragraph to be filed
2 and any person who willfully files a false certified
3 payroll that is false as to any material fact is in
4 violation of this Act and guilty of a Class A misdemeanor.
5 The public body in charge of the project shall keep the
6 records submitted in accordance with this paragraph (2) of
7 subsection (a) before January 1, 2014 (the effective date
8 of Public Act 98-328) for a period of not less than 3
9 years, and the records submitted in accordance with this
10 paragraph (2) of subsection (a) on or after January 1, 2014
11 (the effective date of Public Act 98-328) for a period of 5
12 years, from the date of the last payment for work on a
13 contract or subcontract for public works or until the
14 Department of Labor activates the database created under
15 Section 5.1, whichever is less. After the activation of the
16 database created under Section 5.1, the Department of Labor
17 rather than the public body in charge of the project shall
18 keep the records and maintain the database. The records
19 submitted in accordance with this paragraph (2) of
20 subsection (a) shall be considered public records, except
21 an employee's address, telephone number, social security
22 number, race, ethnicity, and gender, and made available in
23 accordance with the Freedom of Information Act. The public
24 body shall accept any reasonable submissions by the
25 contractor that meet the requirements of this Section.
26 A contractor, subcontractor, or public body may retain

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1records required under this Section in paper or electronic
2format.
3 (b) Upon 7 business days' notice, the contractor and each
4subcontractor shall make available for inspection and copying
5at a location within this State during reasonable hours, the
6records identified in paragraph (1) of subsection (a) of this
7Section to the public body in charge of the project, its
8officers and agents, the Director of Labor and his deputies and
9agents, and to federal, State, or local law enforcement
10agencies and prosecutors.
11 (c) A contractor or subcontractor who remits contributions
12to fringe benefit funds that are jointly maintained and jointly
13governed by one or more employers and one or more labor
14organizations in accordance with the federal Labor Management
15Relations Act shall make and keep certified payroll records
16that include the information required under items (i) through
17(viii) of paragraph (1) of subsection (a) only. However, the
18information required under items (ix) through (xv) (xiv) of
19paragraph (1) of subsection (a) shall be required for any
20contractor or subcontractor who remits contributions to a
21fringe benefit fund that is not jointly maintained and jointly
22governed by one or more employers and one or more labor
23organizations in accordance with the federal Labor Management
24Relations Act.
25(Source: P.A. 100-1177, eff. 6-1-19.)

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1
Article 25. Sports Wagering Act
2 Section 25-1. Short title. This Article may be cited as the
3Sports Wagering Act. References in this Article to "this Act"
4mean this Article.
5 Section 25-5. Legislative findings. The General Assembly
6recognizes the promotion of public safety is an important
7consideration for sports leagues, teams, players, and fans at
8large. All persons who present sporting contests are encouraged
9to take reasonable measures to ensure the safety and security
10of all involved or attending sporting contests. Persons who
11present sporting contests are encouraged to establish codes of
12conduct that forbid all persons associated with the sporting
13contest from engaging in violent behavior and to hire, train,
14and equip safety and security personnel to enforce those codes
15of conduct. Persons who present sporting contests are further
16encouraged to provide public notice of those codes of conduct.
17 Section 25-10. Definitions. As used in this Act:
18 "Adjusted gross sports wagering receipts" means a master
19sports wagering licensee's gross sports wagering receipts,
20less winnings paid to wagerers in such games.
21 "Athlete" means any current or former professional athlete
22or collegiate athlete.
23 "Board" means the Illinois Gaming Board.

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1 "Covered persons" includes athletes; umpires, referees,
2and officials; personnel associated with clubs, teams,
3leagues, and athletic associations; medical professionals
4(including athletic trainers) who provide services to athletes
5and players; and the family members and associates of these
6persons where required to serve the purposes of this Act.
7 "Department" means the Department of the Lottery.
8 "Gaming facility" means a facility at which gambling
9operations are conducted under the Illinois Gambling Act,
10pari-mutuel wagering is conducted under the Illinois Horse
11Racing Act of 1975, or sports wagering is conducted under this
12Act.
13 "Official league data" means statistics, results,
14outcomes, and other data related to a sports event obtained
15pursuant to an agreement with the relevant sports governing
16body, or an entity expressly authorized by the sports governing
17body to provide such information to licensees, that authorizes
18the use of such data for determining the outcome of tier 2
19sports wagers on such sports events.
20 "Organization licensee" has the meaning given to that term
21in the Illinois Horse Racing Act of 1975.
22 "Owners licensee" means the holder of an owners license
23under the Illinois Gambling Act.
24 "Person" means an individual, partnership, committee,
25association, corporation, or any other organization or group of
26persons.

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1 "Personal biometric data" means an athlete's information
2derived from DNA, heart rate, blood pressure, perspiration
3rate, internal or external body temperature, hormone levels,
4glucose levels, hydration levels, vitamin levels, bone
5density, muscle density, and sleep patterns.
6 "Prohibited conduct" includes any statement, action, and
7other communication intended to influence, manipulate, or
8control a betting outcome of a sporting contest or of any
9individual occurrence or performance in a sporting contest in
10exchange for financial gain or to avoid financial or physical
11harm. "Prohibited conduct" includes statements, actions, and
12communications made to a covered person by a third party, such
13as a family member or through social media. "Prohibited
14conduct" does not include statements, actions, or
15communications made or sanctioned by a team or sports governing
16body.
17 "Qualified applicant" means an applicant for a license
18under this Act whose application meets the mandatory minimum
19qualification criteria as required by the Board.
20 "Sporting contest" means a sports event or game on which
21the State allows sports wagering to occur under this Act.
22 "Sports event" means a professional sport or athletic
23event, a collegiate sport or athletic event, a motor race
24event, or any other event or competition of relative skill
25authorized by the Board under this Act.
26 "Sports facility" means a facility that hosts sports events

10100SB0690ham002- 141 -LRB101 04451 SMS 61506 a
1and holds a seating capacity greater than 17,000 persons.
2 "Sports governing body" means the organization that
3prescribes final rules and enforces codes of conduct with
4respect to a sports event and participants therein.
5 "Sports wagering" means accepting wagers on sports events
6or portions of sports events, or on the individual performance
7statistics of athletes in a sports event or combination of
8sports events, by any system or method of wagering, including,
9but not limited to, in person or over the Internet through
10websites and on mobile devices. "Sports wagering" includes, but
11is not limited to, single-game bets, teaser bets, parlays,
12over-under, moneyline, pools, exchange wagering, in-game
13wagering, in-play bets, proposition bets, and straight bets.
14 "Sports wagering account" means a financial record
15established by a master sports wagering licensee for an
16individual patron in which the patron shall deposit and
17withdraw funds within a gaming facility until issuance of the
18first license under Section 25-45 and, thereafter, may also
19deposit and withdraw over the Internet through websites and on
20mobile devices for sports wagering and other authorized
21purchases and to which the master sports wagering licensee may
22credit winnings or other amounts due to that patron or
23authorized by that patron.
24 "Tier 1 sports wager" means a sports wager that is
25determined solely by the final score or final outcome of the
26sports event and is placed before the sports event has begun.

10100SB0690ham002- 142 -LRB101 04451 SMS 61506 a
1 "Tier 2 sports wager" means a sports wager that is not a
2tier 1 sports wager.
3 "Wager" means a sum of money or thing of value risked on an
4uncertain occurrence.
5 "Winning bidder" means a qualified applicant for a master
6sports wagering license chosen through the competitive
7selection process under Section 25-45.
8 Section 25-15. Board duties and powers.
9 (a) Except for sports wagering conducted under Section
1025-70, the Board shall have the authority to regulate the
11conduct of sports wagering under this Act.
12 (b) The Board may adopt any rules the Board considers
13necessary for the successful implementation, administration,
14and enforcement of this Act, except for Section 25-70. Rules
15proposed by the Board may be adopted as emergency rules
16pursuant to Section 5-45 of the Illinois Administrative
17Procedure Act.
18 (c) The Board shall levy and collect all fees, surcharges,
19civil penalties, and monthly taxes on adjusted gross sports
20wagering receipts imposed by this Act and deposit all moneys
21into the Sports Wagering Fund, except as otherwise provided
22under this Act.
23 (d) The Board may exercise any other powers necessary to
24enforce the provisions of this Act that it regulates and the
25rules of the Board.

10100SB0690ham002- 143 -LRB101 04451 SMS 61506 a
1 (e) The Board shall adopt rules for a license to be
2employed by a master sports wagering licensee when the employee
3works in a designated gaming area that has sports wagering or
4performs duties in furtherance of or associated with the
5operation of sports wagering by the master sports wagering
6licensee (occupational license), which shall require an annual
7license fee of $250. License fees shall be deposited into the
8State Gaming Fund and used for the administration of this Act.
9 (f) The Board may require that licensees share, in real
10time and at the sports wagering account level, information
11regarding a wagerer, amount and type of wager, the time the
12wager was placed, the location of the wager, including the
13Internet protocol address, if applicable, the outcome of the
14wager, and records of abnormal wagering activity. Information
15shared under this subsection (f) must be submitted in the form
16and manner as required by rule. If a sports governing body has
17notified the Board that real-time information sharing for
18wagers placed on its sports events is necessary and desirable,
19licensees may share the same information in the form and manner
20required by the Board by rule with the sports governing body or
21its designee with respect to wagers on its sports events
22subject to applicable federal, State, or local laws or
23regulations, including, without limitation, privacy laws and
24regulations. Such information may be provided in anonymized
25form and may be used by a sports governing body solely for
26integrity purposes. For purposes of this subsection (f),

10100SB0690ham002- 144 -LRB101 04451 SMS 61506 a
1"real-time" means a commercially reasonable periodic interval.
2 (g) A master sports wagering licensee, professional sports
3team, league, or association, sports governing body, or
4institution of higher education may submit to the Board in
5writing a request to prohibit a type or form of wagering if the
6master sports wagering licensee, professional sports team,
7league, or association, sports governing body, or institution
8of higher education believes that such wagering by type or form
9is contrary to public policy, unfair to consumers, or affects
10the integrity of a particular sport or the sports betting
11industry. The Board shall grant the request upon a
12demonstration of good cause from the requester and consultation
13with licensees. The Board shall respond to a request pursuant
14to this subsection (g) concerning a particular event before the
15start of the event or, if it is not feasible to respond before
16the start of the event, as soon as practicable.
17 (h) The Board and master sports wagering licensees may
18cooperate with investigations conducted by sports governing
19bodies or law enforcement agencies, including, but not limited
20to, providing and facilitating the provision of account-level
21betting information and audio or video files relating to
22persons placing wagers.
23 (i) A master sports wagering licensee shall make
24commercially reasonable efforts to promptly notify the Board
25any information relating to:
26 (1) criminal or disciplinary proceedings commenced

10100SB0690ham002- 145 -LRB101 04451 SMS 61506 a
1 against the master sports wagering licensee in connection
2 with its operations;
3 (2) abnormal wagering activity or patterns that may
4 indicate a concern with the integrity of a sports event or
5 sports events;
6 (3) any potential breach of the relevant sports
7 governing body's internal rules and codes of conduct
8 pertaining to sports wagering that a licensee has knowledge
9 of;
10 (4) any other conduct that corrupts a wagering outcome
11 of a sports event or sports events for purposes of
12 financial gain, including match fixing; and
13 (5) suspicious or illegal wagering activities,
14 including use of funds derived from illegal activity,
15 wagers to conceal or launder funds derived from illegal
16 activity, using agents to place wagers, and using false
17 identification.
18 A master sports wagering licensee shall also make
19commercially reasonable efforts to promptly report information
20relating to conduct described in paragraphs (2), (3), and (4)
21of this subsection (i) to the relevant sports governing body.
22 Section 25-20. Licenses required.
23 (a) No person may engage in any activity in connection with
24sports wagering in this State unless all necessary licenses
25have been obtained in accordance with this Act and the rules of

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1the Board and the Department. The following licenses shall be
2issued under this Act:
3 (1) master sports wagering license;
4 (2) occupational license;
5 (3) supplier license;
6 (4) management services provider license
7 (5) tier 2 official league data provider license; and
8 (6) central system provider license.
9 No person or entity may engage in a sports wagering
10operation or activity without first obtaining the appropriate
11license.
12 (b) An applicant for a license issued under this Act shall
13submit an application to the Board in the form the Board
14requires. The applicant shall submit fingerprints for a
15national criminal records check by the Department of State
16Police and the Federal Bureau of Investigation. The
17fingerprints shall be furnished by the applicant's officers and
18directors (if a corporation), members (if a limited liability
19company), and partners (if a partnership). The fingerprints
20shall be accompanied by a signed authorization for the release
21of information by the Federal Bureau of Investigation. The
22Board may require additional background checks on licensees
23when they apply for license renewal, and an applicant convicted
24of a disqualifying offense shall not be licensed.
25 (c) Each master sports wagering licensee shall display the
26license conspicuously in the licensee's place of business or

10100SB0690ham002- 147 -LRB101 04451 SMS 61506 a
1have the license available for inspection by an agent of the
2Board or a law enforcement agency.
3 (d) Each holder of an occupational license shall carry the
4license and have some indicia of licensure prominently
5displayed on his or her person when present in a gaming
6facility licensed under this Act at all times, in accordance
7with the rules of the Board.
8 (e) Each person licensed under this Act shall give the
9Board written notice within 30 days after a material change to
10information provided in the licensee's application for a
11license or renewal.
12 Section 25-25. Sports wagering authorized.
13 (a) Notwithstanding any provision of law to the contrary,
14the operation of sports wagering is only lawful when conducted
15in accordance with the provisions of this Act and the rules of
16the Illinois Gaming Board and the Department of the Lottery.
17 (b) A person placing a wager under this Act shall be at
18least 21 years of age.
19 (c) A licensee under this Act may not accept a wager on a
20minor league sports event.
21 (d) A licensee under this Act may not accept a wager for a
22sports event involving an Illinois collegiate team.
23 (e) A licensee under this Act may only accept a wager from
24a person physically located in the State.
25 (f) Master sports wagering licensees may use any data

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1source for determining the results of all tier 1 sports wagers.
2 (g) A sports governing body headquartered in the United
3States may notify the Board that it desires to supply official
4league data to master sports wagering licensees for determining
5the results of tier 2 sports wagers. Such notification shall be
6made in the form and manner as the Board may require. If a
7sports governing body does not notify the Board of its desire
8to supply official league data, a master sports wagering
9licensee may use any data source for determining the results of
10any and all tier 2 sports wagers on sports contests for that
11sports governing body.
12 Within 30 days of a sports governing body notifying the
13Board, master sports wagering licensees shall use only official
14league data to determine the results of tier 2 sports wagers on
15sports events sanctioned by that sports governing body, unless:
16(1) the sports governing body or designee cannot provide a feed
17of official league data to determine the results of a
18particular type of tier 2 sports wager, in which case master
19sports wagering licensees may use any data source for
20determining the results of the applicable tier 2 sports wager
21until such time as such data feed becomes available on
22commercially reasonable terms; or (2) a master sports wagering
23licensee can demonstrate to the Board that the sports governing
24body or its designee cannot provide a feed of official league
25data to the master sports wagering licensee on commercially
26reasonable terms. During the pendency of the Board's

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1determination, such master sports wagering licensee may use any
2data source for determining the results of any and all tier 2
3sports wagers.
4 (h) A licensee under this Act may not accept wagers on a
5kindergarten through 12th grade sports event.
6 Section 25-30. Master sports wagering license issued to an
7organization licensee.
8 (a) An organization licensee may apply to the Board for a
9master sports wagering license. To the extent permitted by
10federal and State law, the Board shall actively seek to achieve
11racial, ethnic, and geographic diversity when issuing master
12sports wagering licenses to organization licensees and
13encourage minority-owned businesses, women-owned businesses,
14veteran-owned businesses, and businesses owned by persons with
15disabilities to apply for licensure. Additionally, the report
16published under subsection (m) of Section 25-45 shall impact
17the issuance of the master sports wagering license to the
18extent permitted by federal and State law.
19 For the purposes of this subsection (a), "minority-owned
20business", "women-owned business", and "business owned by
21persons with disabilities" have the meanings given to those
22terms in Section 2 of the Business Enterprise for Minorities,
23Women, and Persons with Disabilities Act.
24 (b) Except as otherwise provided in this subsection (b),
25the initial license fee for a master sports wagering license

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1for an organization licensee is 5% of its handle from the
2preceding calendar year or the lowest amount that is required
3to be paid as an initial license fee by an owners licensee
4under subsection (b) of Section 25-35, whichever is greater. No
5initial license fee shall exceed $10,000,000. An organization
6licensee licensed on the effective date of this Act shall pay
7the initial master sports wagering license fee by July 1, 2020.
8For an organization licensee licensed after the effective date
9of this Act, the master sports wagering license fee shall be
10$5,000,000, but the amount shall be adjusted 12 months after
11the organization licensee begins racing operations based on 5%
12of its handle from the first 12 months of racing operations.
13The master sports wagering license is valid for 4 years.
14 (c) The organization licensee may renew the master sports
15wagering license for a period of 4 years by paying a $1,000,000
16renewal fee to the Board.
17 (d) An organization licensee issued a master sports
18wagering license may conduct sports wagering:
19 (1) at its facility at which inter-track wagering is
20 conducted pursuant to an inter-track wagering license
21 under the Illinois Horse Racing Act of 1975;
22 (2) at 3 inter-track wagering locations if the
23 inter-track wagering location licensee from which it
24 derives its license is an organization licensee that is
25 issued a master sports wagering license; and
26 (3) over the Internet or through a mobile application.

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1 (e) The sports wagering offered over the Internet or
2through a mobile application shall only be offered under the
3same brand as the organization licensee is operating under.
4 (f) Until issuance of the first license under Section
525-45, an individual must register in person at a facility
6under paragraph (1) or (2) of subsection (d) to participate in
7sports wagering offered over the Internet or through a mobile
8application.
9 Section 25-35. Master sports wagering license issued to an
10owners licensee.
11 (a) An owners licensee may apply to the Board for a master
12sports wagering license. To the extent permitted by federal and
13State law, the Board shall actively seek to achieve racial,
14ethnic, and geographic diversity when issuing master sports
15wagering licenses to owners licensees and encourage
16minority-owned businesses, women-owned businesses,
17veteran-owned businesses, and businesses owned by persons with
18disabilities to apply for licensure. Additionally, the report
19published under subsection (m) of Section 25-45 shall impact
20the issuance of the master sports wagering license to the
21extent permitted by federal and State law.
22 For the purposes of this subsection (a), "minority-owned
23business", "women-owned business", and "business owned by
24persons with disabilities" have the meanings given to those
25terms in Section 2 of the Business Enterprise for Minorities,

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1Women, and Persons with Disabilities Act.
2 (b) Except as otherwise provided in subsection (b-5), the
3initial license fee for a master sports wagering license for an
4owners licensee is 5% of its adjusted gross receipts from the
5preceding calendar year. No initial license fee shall exceed
6$10,000,000. An owners licensee licensed on the effective date
7of this Act shall pay the initial master sports wagering
8license fee by July 1, 2020. The master sports wagering license
9is valid for 4 years.
10 (b-5) For an owners licensee licensed after the effective
11date of this Act, the master sports wagering license fee shall
12be $5,000,000, but the amount shall be adjusted 12 months after
13the owners licensee begins gambling operations under the
14Illinois Gambling Act based on 5% of its adjusted gross
15receipts from the first 12 months of gambling operations. The
16master sports wagering license is valid for 4 years.
17 (c) The owners licensee may renew the master sports
18wagering license for a period of 4 years by paying a $1,000,000
19renewal fee to the Board.
20 (d) An owners licensee issued a master sports wagering
21license may conduct sports wagering:
22 (1) at its facility in this State that is authorized to
23 conduct gambling operations under the Illinois Gambling
24 Act; and
25 (2) over the Internet or through a mobile application.
26 (e) The sports wagering offered over the Internet or

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1through a mobile application shall only be offered under the
2same brand as the owners licensee is operating under.
3 (f) Until issuance of the first license under Section
425-45, an individual must register in person at a facility
5under paragraph (1) of subsection (d) to participate in sports
6wagering offered over the Internet or through a mobile
7application.
8 Section 25-40. Master sports wagering license issued to a
9sports facility.
10 (a) As used in this Section, "designee" means a master
11sports wagering licensee under Section 25-30, 25-35, or 25-45
12or a management services provider licensee.
13 (b) A sports facility or a designee contracted to operate
14sports wagering at or within a 5-block radius of the sports
15facility may apply to the Board for a master sports wagering
16license. To the extent permitted by federal and State law, the
17Board shall actively seek to achieve racial, ethnic, and
18geographic diversity when issuing master sports wagering
19licenses to sports facilities or their designees and encourage
20minority-owned businesses, women-owned businesses,
21veteran-owned businesses, and businesses owned by persons with
22disabilities to apply for licensure. Additionally, the report
23published under subsection (m) of Section 25-45 shall impact
24the issuance of the master sports wagering license to the
25extent permitted by federal and State law.

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1 For the purposes of this subsection (b), "minority-owned
2business", "women-owned business", and "business owned by
3persons with disabilities" have the meanings given to those
4terms in Section 2 of the Business Enterprise for Minorities,
5Women, and Persons with Disabilities Act.
6 (c) The Board may issue up to 7 master sports wagering
7licenses to sports facilities or their designees that meet the
8requirements for licensure as determined by rule by the Board.
9If more than 7 qualified applicants apply for a master sports
10wagering license under this Section, the licenses shall be
11granted in the order in which the applications were received.
12If a license is denied, revoked, or not renewed, the Board may
13begin a new application process and issue a license under this
14Section in the order in which the application was received.
15 (d) The initial license fee for a master sports wagering
16license for a sports facility is $10,000,000. The master sports
17wagering license is valid for 4 years.
18 (e) The sports facility or its designee may renew the
19master sports wagering license for a period of 4 years by
20paying a $1,000,000 renewal fee to the Board.
21 (f) A sports facility or its designee issued a master
22sports wagering license may conduct sports wagering at or
23within a 5-block radius of the sports facility.
24 (g) A sports facility or its designee issued a master
25sports wagering license may conduct sports wagering over the
26Internet within the sports facility or within a 5-block radius

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1of the sports facility.
2 (h) The sports wagering offered by a sports facility or its
3designee over the Internet or through a mobile application
4shall be offered under the same brand as the sports facility is
5operating under, the brand the designee is operating under, or
6a combination thereof.
7 (i) Until issuance of the first license under Section
825-45, an individual must register in person at a sports
9facility or the designee's facility to participate in sports
10wagering offered over the Internet or through a mobile
11application.
12 Section 25-45. Master sports wagering license issued to an
13online sports wagering operator.
14 (a) The Board shall issue 3 master sports wagering licenses
15to online sports wagering operators for a nonrefundable license
16fee of $20,000,000 pursuant to an open and competitive
17selection process. The master sports wagering license issued
18under this Section may be renewed every 4 years upon payment of
19a $1,000,000 renewal fee. To the extent permitted by federal
20and State law, the Board shall actively seek to achieve racial,
21ethnic, and geographic diversity when issuing master sports
22wagering licenses under this Section and encourage
23minority-owned businesses, women-owned businesses,
24veteran-owned businesses, and businesses owned by persons with
25disabilities to apply for licensure.

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1 For the purposes of this subsection (a), "minority-owned
2business", "women-owned business", and "business owned by
3persons with disabilities" have the meanings given to those
4terms in Section 2 of the Business Enterprise for Minorities,
5Women, and Persons with Disabilities Act.
6 (b) Applications for the initial competitive selection
7occurring after the effective date of this Act shall be
8received by the Board within 540 days after the first license
9is issued under this Act to qualify. The Board shall announce
10the winning bidders for the initial competitive selection
11within 630 days after the first license is issued under this
12Act, and this time frame may be extended at the discretion of
13the Board.
14 (c) The Board shall provide public notice of its intent to
15solicit applications for master sports wagering licenses under
16this Section by posting the notice, application instructions,
17and materials on its website for at least 30 calendar days
18before the applications are due. Failure by an applicant to
19submit all required information may result in the application
20being disqualified. The Board may notify an applicant that its
21application is incomplete and provide an opportunity to cure by
22rule. Application instructions shall include a brief overview
23of the selection process and how applications are scored.
24 (d) To be eligible for a master sports wagering license
25under this Section, an applicant must: (1) be at least 21 years
26of age; (2) not have been convicted of a felony offense or a

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1violation of Article 28 of the Criminal Code of 1961 or the
2Criminal Code of 2012 or a similar statute of any other
3jurisdiction; (3) not have been convicted of a crime involving
4dishonesty or moral turpitude; (4) have demonstrated a level of
5skill or knowledge that the Board determines to be necessary in
6order to operate sports wagering; and (5) have met standards
7for the holding of a license as adopted by rules of the Board.
8 The Board may adopt rules to establish additional
9qualifications and requirements to preserve the integrity and
10security of sports wagering in this State and to promote and
11maintain a competitive sports wagering market. After the close
12of the application period, the Board shall determine whether
13the applications meet the mandatory minimum qualification
14criteria and conduct a comprehensive, fair, and impartial
15evaluation of all qualified applications.
16 (e) The Board shall open all qualified applications in a
17public forum and disclose the applicants' names. The Board
18shall summarize the terms of the proposals and make the
19summaries available to the public on its website.
20 (f) Not more than 90 days after the publication of the
21qualified applications, the Board shall identify the winning
22bidders. In granting the licenses, the Board may give favorable
23consideration to qualified applicants presenting plans that
24provide for economic development and community engagement. To
25the extent permitted by federal and State law, the Board may
26give favorable consideration to qualified applicants

10100SB0690ham002- 158 -LRB101 04451 SMS 61506 a
1demonstrating commitment to diversity in the workplace.
2 (g) Upon selection of the winning bidders, the Board shall
3have a reasonable period of time to ensure compliance with all
4applicable statutory and regulatory criteria before issuing
5the licenses. If the Board determines a winning bidder does not
6satisfy all applicable statutory and regulatory criteria, the
7Board shall select another bidder from the remaining qualified
8applicants.
9 (h) Nothing in this Section is intended to confer a
10property or other right, duty, privilege, or interest entitling
11an applicant to an administrative hearing upon denial of an
12application.
13 (i) Upon issuance of a master sports wagering license to a
14winning bidder, the information and plans provided in the
15application become a condition of the license. A master sports
16wagering licensee under this Section has a duty to disclose any
17material changes to the application. Failure to comply with the
18conditions or requirements in the application may subject the
19master sports wagering licensee under this Section to
20discipline, including, but not limited to, fines, suspension,
21and revocation of its license, pursuant to rules adopted by the
22Board.
23 (j) The Board shall disseminate information about the
24licensing process through media demonstrated to reach large
25numbers of business owners and entrepreneurs who are
26minorities, women, veterans, and persons with disabilities.

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1 (k) The Department of Commerce and Economic Opportunity, in
2conjunction with the Board, shall conduct ongoing, thorough,
3and comprehensive outreach to businesses owned by minorities,
4women, veterans, and persons with disabilities about
5contracting and entrepreneurial opportunities in sports
6wagering. This outreach shall include, but not be limited to:
7 (1) cooperating and collaborating with other State
8 boards, commissions, and agencies; public and private
9 universities and community colleges; and local governments
10 to target outreach efforts; and
11 (2) working with organizations serving minorities,
12 women, and persons with disabilities to establish and
13 conduct training for employment in sports wagering.
14 (l) The Board shall partner with the Department of Labor,
15the Department of Financial and Professional Regulation, and
16the Department of Commerce and Economic Opportunity to identify
17employment opportunities within the sports wagering industry
18for job seekers and dislocated workers.
19 (m) By March 1, 2020, the Board shall prepare a request for
20proposals to conduct a study of the online sports wagering
21industry and market to determine whether there is a compelling
22interest in implementing remedial measures, including the
23application of the Business Enterprise Program under the
24Business Enterprise for Minorities, Women, and Persons with
25Disabilities Act or a similar program to assist minorities,
26women, and persons with disabilities in the sports wagering

10100SB0690ham002- 160 -LRB101 04451 SMS 61506 a
1industry.
2 As a part of the study, the Board shall evaluate race and
3gender-neutral programs or other methods that may be used to
4address the needs of minority and women applicants and
5minority-owned and women-owned businesses seeking to
6participate in the sports wagering industry. The Board shall
7submit to the General Assembly and publish on its website the
8results of this study by August 1, 2020.
9 If, as a result of the study conducted under this
10subsection (m), the Board finds that there is a compelling
11interest in implementing remedial measures, the Board may adopt
12rules, including emergency rules, to implement remedial
13measures, if necessary and to the extent permitted by State and
14federal law, based on the findings of the study conducted under
15this subsection (m).
16 Section 25-50. Supplier license.
17 (a) The Board may issue a supplier license to a person to
18sell or lease sports wagering equipment, systems, or other
19gaming items to conduct sports wagering and offer services
20related to the equipment or other gaming items and data to a
21master sports wagering licensee while the license is active.
22 (b) The Board may adopt rules establishing additional
23requirements for a supplier and any system or other equipment
24utilized for sports wagering. The Board may accept licensing by
25another jurisdiction that it specifically determines to have

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1similar licensing requirements as evidence the applicant meets
2supplier licensing requirements.
3 (c) An applicant for a supplier license shall demonstrate
4that the equipment, system, or services that the applicant
5plans to offer to the master sports wagering licensee conforms
6to standards established by the Board and applicable State law.
7The Board may accept approval by another jurisdiction that it
8specifically determines have similar equipment standards as
9evidence the applicant meets the standards established by the
10Board and applicable State law.
11 (d) Applicants shall pay to the Board a nonrefundable
12license and application fee in the amount of $150,000. After
13the initial 4-year term, the Board shall renew supplier
14licenses annually thereafter. Renewal of a supplier license
15shall be granted to a renewal applicant who has continued to
16comply with all applicable statutory and regulatory
17requirements, upon submission of the Board-issued renewal form
18and payment of a $150,000 renewal fee.
19 (e) A supplier shall submit to the Board a list of all
20sports wagering equipment and services sold, delivered, or
21offered to a master sports wagering licensee in this State, as
22required by the Board, all of which must be tested and approved
23by an independent testing laboratory approved by the Board. A
24master sports wagering licensee may continue to use supplies
25acquired from a licensed supplier, even if a supplier's license
26expires or is otherwise canceled, unless the Board finds a

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1defect in the supplies.
2 Section 25-55. Management services provider license.
3 (a) A master sports wagering licensee may contract with an
4entity to conduct that operation in accordance with the rules
5of the Board and the provisions of this Act. That entity shall
6obtain a license as a management services provider before the
7execution of any such contract, and the management services
8provider license shall be issued pursuant to the provisions of
9this Act and any rules adopted by the Board.
10 (b) Each applicant for a management services provider
11license shall meet all requirements for licensure and pay a
12nonrefundable license and application fee of $1,000,000. The
13Board may adopt rules establishing additional requirements for
14an authorized management services provider. The Board may
15accept licensing by another jurisdiction that it specifically
16determines to have similar licensing requirements as evidence
17the applicant meets authorized management services provider
18licensing requirements.
19 (c) Management services provider licenses shall be renewed
20every 4 years to licensees who continue to be in compliance
21with all requirements and who pay the renewal fee of $500,000.
22 (d) A person who shares in revenue shall be licensed under
23this Section.
24 Section 25-60. Tier 2 official league data provider

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1license.
2 (a) A sports governing body or a sports league,
3organization, or association may apply to the Board for a tier
42 official league data provider license.
5 (b) A tier 2 official league data provider licensee may
6provide a master sports wagering licensee with official league
7data for tier 2 sports wagers. No sports governing body or
8sports league, organization, or association may provide tier 2
9official league data to a master sports wagering licensee
10without a tier 2 official league data provider license.
11 (c) The initial license fee for a tier 2 official league
12data provider license is payable to the Board at the end of the
13first year of licensure based on the amount of data sold to
14master sports wagering licensees as official league data as
15follows:
16 (1) for data sales up to and including $500,000, the
17 fee is $30,000;
18 (2) for data sales in excess of $500,000 and up to and
19 including $750,000, the fee is $60,000;
20 (3) for data sales in excess of $750,000 and up to and
21 including $1,000,000, the fee is $125,000;
22 (4) for data sales in excess of $1,000,000 and up to
23 and including $1,500,000, the fee is $250,000;
24 (5) for data sales in excess of $1,500,000 and up to
25 and including $2,000,000, the fee is $375,000; and
26 (6) for data sales in excess of $2,000,000, the fee is

10100SB0690ham002- 164 -LRB101 04451 SMS 61506 a
1 $500,000.
2 The license is valid for 3 years.
3 (d) The tier 2 official league data provider licensee may
4renew the license for 3 years by paying a renewal fee to the
5Board based on the amount of data sold to master sports
6wagering licensees as official league data in the immediately
7preceding year as provided in paragraphs (1) through (6) of
8subsection (c).
9 Section 25-65. Sports wagering at a sports facility. Sports
10wagering may be offered in person at or within a 5-block radius
11of a sports facility if sports wagering is offered by a
12designee, as defined in Section 25-40, and that designee has
13received written authorization from the relevant sports
14governing body that plays its home contests at the sports
15facility. If more than one professional sports team plays its
16home contests at the same sports facility, written
17authorization is required from all relevant sports governing
18bodies of those professional sports teams that play home
19contests at the sports facility.
20 Section 25-70. Lottery sports wagering pilot program.
21 (a) As used in this Section:
22 "Central system" means the hardware, software,
23peripherals, and network components provided by the
24Department's central system provider that link and support all

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1required sports lottery terminals and the central site and that
2are unique and separate from the lottery central system for
3draw and instant games.
4 "Central system provider" means an individual,
5partnership, corporation, or limited liability company that
6has been licensed for the purpose of providing and maintaining
7a central system and the related management facilities
8specifically for the management of sports lottery terminals.
9 "Electronic card" means a card purchased from a lottery
10retailer.
11 "Lottery retailer" means a location licensed by the
12Department to sell lottery tickets or shares.
13 "Sports lottery systems" means systems provided by the
14central system provider consisting of sports wagering
15products, risk management, operations, and support services.
16 "Sports lottery terminal" means a terminal linked to the
17central system in which bills or coins are deposited or an
18electronic card is inserted in order to place wagers on a
19sports event and lottery offerings.
20 (b) The Department shall issue one central system provider
21license pursuant to an open and competitive bidding process
22that uses the following procedures:
23 (1) The Department shall make applications for the
24 central system provider license available to the public and
25 allow a reasonable time for applicants to submit
26 applications to the Department.

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1 (2) During the filing period for central system
2 provider license applications, the Department may retain
3 professional services to assist the Department in
4 conducting the open and competitive bidding process.
5 (3) After receiving all of the bid proposals, the
6 Department shall open all of the proposals in a public
7 forum and disclose the prospective central system provider
8 names and venture partners, if any.
9 (4) The Department shall summarize the terms of the bid
10 proposals and may make this summary available to the
11 public.
12 (5) The Department shall evaluate the bid proposals
13 within a reasonable time and select no more than 3 final
14 applicants to make presentations of their bid proposals to
15 the Department.
16 (6) The final applicants shall make their
17 presentations to the Department on the same day during an
18 open session of the Department.
19 (7) As soon as practicable after the public
20 presentations by the final applicants, the Department, in
21 its discretion, may conduct further negotiations among the
22 3 final applicants. At the conclusion of such negotiations,
23 the Department shall select the winning bid.
24 (8) Upon selection of the winning bid, the Department
25 shall evaluate the winning bid within a reasonable period
26 of time for licensee suitability in accordance with all

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1 applicable statutory and regulatory criteria.
2 (9) If the winning bidder is unable or otherwise fails
3 to consummate the transaction, (including if the
4 Department determines that the winning bidder does not
5 satisfy the suitability requirements), the Department may,
6 on the same criteria, select from the remaining bidders.
7 (10) The winning bidder shall pay $20,000,000 to the
8 Department upon being issued the central system provider
9 license.
10 (c) Every sports lottery terminal offered in this State for
11play shall first be tested and approved pursuant to the rules
12of the Department, and each sports lottery terminal offered in
13this State for play shall conform to an approved model. For the
14examination of sports lottery terminals and associated
15equipment as required by this Section, the central system
16provider may utilize the services of one or more independent
17outside testing laboratories that have been accredited by a
18national accreditation body and that, in the judgment of the
19Department, are qualified to perform such examinations. Every
20sports lottery terminal offered in this State for play must
21meet minimum standards set by an independent outside testing
22laboratory approved by the Department.
23 (d) During the first 360 days after the effective date of
24this Act, sport lottery terminals may be placed in no more than
252,500 Lottery retail locations in the State. Sports lottery
26terminals may be placed in an additional 2,500 Lottery retail

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1locations during the second year after the effective date of
2this Act.
3 (e) A sports lottery terminal may not directly dispense
4coins, cash, tokens, or any other article of exchange or value
5except for receipt tickets. Tickets shall be dispensed by
6pressing the ticket dispensing button on the sports lottery
7terminal at the end of the placement of one's wager or wagers.
8The ticket shall indicate the total amount wagered, odds for
9each wager placed, and the cash award for each bet placed, the
10time of day in a 24-hour format showing hours and minutes, the
11date, the terminal serial number, the sequential number of the
12ticket, and an encrypted validation number from which the
13validity of the prize may be determined. The player shall turn
14in this ticket to the appropriate person at a lottery retailer
15to receive the cash award.
16 (f) No lottery retailer may cause or permit any person
17under the age of 21 years to use a sports lottery terminal or
18sports wagering application. A lottery retailer who knowingly
19causes or permits a person under the age of 21 years to use a
20sports lottery terminal or sports wagering application is
21guilty of a business offense and shall be fined an amount not
22to exceed $5,000.
23 (g) A sports lottery terminal shall only accept parlay
24wagers and fixed odds parlay wagers. The Department shall, by
25rule, establish the total amount, as a percentage, of all
26wagers placed that a lottery retailer may retain.

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1 (h) The Department shall have jurisdiction over and shall
2supervise all lottery sports wagering operations governed by
3this Section. The Department shall have all powers necessary
4and proper to fully and effectively execute the provisions of
5this Section, including, but not limited to, the following:
6 (1) To investigate applicants and determine the
7 eligibility of applicants for licenses and to select among
8 competing applicants the applicants which best serve the
9 interests of the citizens of Illinois.
10 (2) To have jurisdiction and supervision over all
11 lottery sports wagering operations in this State.
12 (3) To adopt rules for the purpose of administering the
13 provisions of this Section and to adopt rules and
14 conditions under which all lottery sports wagering in the
15 State shall be conducted. Such rules are to provide for the
16 prevention of practices detrimental to the public interest
17 and for the best interests of lottery sports wagering,
18 including rules (i) regarding the inspection of such
19 licensees necessary to operate a lottery retailer under any
20 laws or rules applicable to licensees, (ii) to impose
21 penalties for violations of the Act and its rules, and
22 (iii) establishing standards for advertising lottery
23 sports wagering.
24 (i) The Department shall adopt emergency rules to
25administer this Section in accordance with Section 5-45 of the
26Illinois Administrative Procedure Act. For the purposes of the

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1Illinois Administrative Procedure Act, the General Assembly
2finds that the adoption of rules to implement this Section is
3deemed an emergency and necessary to the public interest,
4safety, and welfare.
5 (j) For the privilege of operating lottery sports wagering
6under this Section, all proceeds minus net of proceeds returned
7to players shall be electronically transferred daily or weekly,
8at the discretion of the Director of the Lottery, into the
9State Lottery Fund. After amounts owed to the central system
10provider and licensed agents, as determined by the Department,
11are paid from the moneys deposited into the State Lottery Fund
12under this subsection, the remainder shall be transferred on
13the 15th of each month to the Capital Projects Fund.
14 (k) This Section is repealed on January 1, 2024.
15 Section 25-75. Reporting prohibited conduct;
16investigations of prohibited conduct.
17 (a) The Board shall establish a hotline or other method of
18communication that allows any person to confidentially report
19information about prohibited conduct to the Board.
20 (b) The Board shall investigate all reasonable allegations
21of prohibited conduct and refer any allegations it deems
22credible to the appropriate law enforcement entity.
23 (c) The identity of any reporting person shall remain
24confidential unless that person authorizes disclosure of his or
25her identity or until such time as the allegation of prohibited

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1conduct is referred to law enforcement.
2 (d) If the Board receives a complaint of prohibited conduct
3by an athlete, the Board shall notify the appropriate sports
4governing body of the athlete to review the complaint as
5provided by rule.
6 (e) The Board shall adopt emergency rules to administer
7this Section in accordance with Section 5-45 of the Illinois
8Administrative Procedure Act.
9 (f) The Board shall adopt rules governing investigations of
10prohibited conduct and referrals to law enforcement entities.
11 Section 25-80. Personal biometric data. A master sports
12wagering licensee shall not purchase or use any personal
13biometric data of an athlete unless the master sports wagering
14licensee has received written permission from the athlete's
15exclusive bargaining representative.
16 Section 25-85. Supplier diversity goals for sports
17wagering.
18 (a) As used in this Section only, "licensee" means a
19licensee under this Act other than an occupational licensee.
20 (b) The public policy of this State is to collaboratively
21work with companies that serve Illinois residents to improve
22their supplier diversity in a non-antagonistic manner.
23 (c) The Board and the Department shall require all
24licensees under this Act to submit an annual report by April

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115, 2020 and every April 15 thereafter, in a searchable Adobe
2PDF format, on all procurement goals and actual spending for
3businesses owned by women, minorities, veterans, and persons
4with disabilities and small business enterprises in the
5previous calendar year. These goals shall be expressed as a
6percentage of the total work performed by the entity submitting
7the report, and the actual spending for all businesses owned by
8women, minorities, veterans, and persons with disabilities and
9small business enterprises shall also be expressed as a
10percentage of the total work performed by the entity submitting
11the report.
12 (d) Each licensee in its annual report shall include the
13following information:
14 (1) an explanation of the plan for the next year to
15 increase participation;
16 (2) an explanation of the plan to increase the goals;
17 (3) the areas of procurement each licensee shall be
18 actively seeking more participation in the next year;
19 (4) an outline of the plan to alert and encourage
20 potential vendors in that area to seek business from the
21 licensee;
22 (5) an explanation of the challenges faced in finding
23 quality vendors and offer any suggestions for what the
24 Board could do to be helpful to identify those vendors;
25 (6) a list of the certifications the licensee
26 recognizes;

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1 (7) the point of contact for any potential vendor who
2 wishes to do business with the licensee and explain the
3 process for a vendor to enroll with the licensee as a
4 businesses owned by women, minorities, veterans, or
5 persons with disabilities; and
6 (8) any particular success stories to encourage other
7 licensee to emulate best practices.
8 (e) Each annual report shall include as much State-specific
9data as possible. If the submitting entity does not submit
10State-specific data, then the licensee shall include any
11national data it does have and explain why it could not submit
12State-specific data and how it intends to do so in future
13reports, if possible.
14 (f) Each annual report shall include the rules,
15regulations, and definitions used for the procurement goals in
16the licensee's annual report.
17 (g) The Board, Department, and all licensees shall hold an
18annual workshop and job fair open to the public in 2020 and
19every year thereafter on the state of supplier diversity to
20collaboratively seek solutions to structural impediments to
21achieving stated goals, including testimony from each licensee
22as well as subject matter experts and advocates. The Board and
23Department shall publish a database on their websites of the
24point of contact for licensees they regulate under this Act for
25supplier diversity, along with a list of certifications each
26licensee recognizes from the information submitted in each

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1annual report. The Board and Department shall publish each
2annual report on their websites and shall maintain each annual
3report for at least 5 years.
4 Section 25-90. Tax; Sports Wagering Fund.
5 (a) For the privilege of holding a license to operate
6sports wagering under this Act, this State shall impose and
7collect 15% of a master sports wagering licensee's adjusted
8gross sports wagering receipts from sports wagering. The
9accrual method of accounting shall be used for purposes of
10calculating the amount of the tax owed by the licensee.
11 The taxes levied and collected pursuant to this subsection
12(a) are due and payable to the Board no later than the last day
13of the month following the calendar month in which the adjusted
14gross sports wagering receipts were received and the tax
15obligation was accrued.
16 (a-5) In addition to the tax imposed under subsection (a)
17of this Section, for the privilege of holding a license to
18operate sports wagering under this Act, the State shall impose
19and collect 2% of the adjusted gross receipts from sports
20wagers that are placed within a home rule county with a
21population of over 3,000,000 inhabitants, which shall be paid,
22subject to appropriation from the General Assembly, from the
23Sports Wagering Fund to that home rule county for the purpose
24of enhancing the county's criminal justice system.
25 (b) The Sports Wagering Fund is hereby created as special

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1fund in the State treasury. Except as otherwise provided in
2this Act, all moneys collected under this Act by the Board
3shall be deposited into the Sports Wagering Fund. On the 25th
4of each month, any moneys remaining in the Sports Wagering Fund
5shall be transferred to the Capital Projects Fund.
6 Section 25-95. Compulsive gambling. Each master sports
7wagering licensee shall include a statement regarding
8obtaining assistance with gambling problems, the text of which
9shall be determined by rule by the Department of Human
10Services, on the master sports wagering licensee's portal,
11Internet website, or computer or mobile application.
12 Section 25-100. Voluntary self-exclusion program for
13sports wagering. Any resident, or non-resident if allowed to
14participate in sports wagering, may voluntarily prohibit
15himself or herself from establishing a sports wagering account
16with a licensee under this Act. The Board and Department shall
17incorporate the voluntary self-exclusion program for sports
18wagering into any existing self-exclusion program that it
19operates on the effective date of this Act.
20 Section 25-105. Report to General Assembly. On or before
21January 15, 2021 and every January 15 thereafter, the Board
22shall provide a report to the General Assembly on sports
23wagering conducted under this Act.

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1 Section 25-110. Preemption. Nothing in this Act shall be
2deemed to diminish the rights, privileges, or remedies of a
3person under any other federal or State law, rule, or
4regulation.
5 Section 25-900. The Illinois Administrative Procedure Act
6is amended by changing Section 5-45 as follows:
7 (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
8 Sec. 5-45. Emergency rulemaking.
9 (a) "Emergency" means the existence of any situation that
10any agency finds reasonably constitutes a threat to the public
11interest, safety, or welfare.
12 (b) If any agency finds that an emergency exists that
13requires adoption of a rule upon fewer days than is required by
14Section 5-40 and states in writing its reasons for that
15finding, the agency may adopt an emergency rule without prior
16notice or hearing upon filing a notice of emergency rulemaking
17with the Secretary of State under Section 5-70. The notice
18shall include the text of the emergency rule and shall be
19published in the Illinois Register. Consent orders or other
20court orders adopting settlements negotiated by an agency may
21be adopted under this Section. Subject to applicable
22constitutional or statutory provisions, an emergency rule
23becomes effective immediately upon filing under Section 5-65 or

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1at a stated date less than 10 days thereafter. The agency's
2finding and a statement of the specific reasons for the finding
3shall be filed with the rule. The agency shall take reasonable
4and appropriate measures to make emergency rules known to the
5persons who may be affected by them.
6 (c) An emergency rule may be effective for a period of not
7longer than 150 days, but the agency's authority to adopt an
8identical rule under Section 5-40 is not precluded. No
9emergency rule may be adopted more than once in any 24-month
10period, except that this limitation on the number of emergency
11rules that may be adopted in a 24-month period does not apply
12to (i) emergency rules that make additions to and deletions
13from the Drug Manual under Section 5-5.16 of the Illinois
14Public Aid Code or the generic drug formulary under Section
153.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
16emergency rules adopted by the Pollution Control Board before
17July 1, 1997 to implement portions of the Livestock Management
18Facilities Act, (iii) emergency rules adopted by the Illinois
19Department of Public Health under subsections (a) through (i)
20of Section 2 of the Department of Public Health Act when
21necessary to protect the public's health, (iv) emergency rules
22adopted pursuant to subsection (n) of this Section, (v)
23emergency rules adopted pursuant to subsection (o) of this
24Section, or (vi) emergency rules adopted pursuant to subsection
25(c-5) of this Section. Two or more emergency rules having
26substantially the same purpose and effect shall be deemed to be

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1a single rule for purposes of this Section.
2 (c-5) To facilitate the maintenance of the program of group
3health benefits provided to annuitants, survivors, and retired
4employees under the State Employees Group Insurance Act of
51971, rules to alter the contributions to be paid by the State,
6annuitants, survivors, retired employees, or any combination
7of those entities, for that program of group health benefits,
8shall be adopted as emergency rules. The adoption of those
9rules shall be considered an emergency and necessary for the
10public interest, safety, and welfare.
11 (d) In order to provide for the expeditious and timely
12implementation of the State's fiscal year 1999 budget,
13emergency rules to implement any provision of Public Act 90-587
14or 90-588 or any other budget initiative for fiscal year 1999
15may be adopted in accordance with this Section by the agency
16charged with administering that provision or initiative,
17except that the 24-month limitation on the adoption of
18emergency rules and the provisions of Sections 5-115 and 5-125
19do not apply to rules adopted under this subsection (d). The
20adoption of emergency rules authorized by this subsection (d)
21shall be deemed to be necessary for the public interest,
22safety, and welfare.
23 (e) In order to provide for the expeditious and timely
24implementation of the State's fiscal year 2000 budget,
25emergency rules to implement any provision of Public Act 91-24
26or any other budget initiative for fiscal year 2000 may be

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1adopted in accordance with this Section by the agency charged
2with administering that provision or initiative, except that
3the 24-month limitation on the adoption of emergency rules and
4the provisions of Sections 5-115 and 5-125 do not apply to
5rules adopted under this subsection (e). The adoption of
6emergency rules authorized by this subsection (e) shall be
7deemed to be necessary for the public interest, safety, and
8welfare.
9 (f) In order to provide for the expeditious and timely
10implementation of the State's fiscal year 2001 budget,
11emergency rules to implement any provision of Public Act 91-712
12or any other budget initiative for fiscal year 2001 may be
13adopted in accordance with this Section by the agency charged
14with administering that provision or initiative, except that
15the 24-month limitation on the adoption of emergency rules and
16the provisions of Sections 5-115 and 5-125 do not apply to
17rules adopted under this subsection (f). The adoption of
18emergency rules authorized by this subsection (f) shall be
19deemed to be necessary for the public interest, safety, and
20welfare.
21 (g) In order to provide for the expeditious and timely
22implementation of the State's fiscal year 2002 budget,
23emergency rules to implement any provision of Public Act 92-10
24or any other budget initiative for fiscal year 2002 may be
25adopted in accordance with this Section by the agency charged
26with administering that provision or initiative, except that

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1the 24-month limitation on the adoption of emergency rules and
2the provisions of Sections 5-115 and 5-125 do not apply to
3rules adopted under this subsection (g). The adoption of
4emergency rules authorized by this subsection (g) shall be
5deemed to be necessary for the public interest, safety, and
6welfare.
7 (h) In order to provide for the expeditious and timely
8implementation of the State's fiscal year 2003 budget,
9emergency rules to implement any provision of Public Act 92-597
10or any other budget initiative for fiscal year 2003 may be
11adopted in accordance with this Section by the agency charged
12with administering that provision or initiative, except that
13the 24-month limitation on the adoption of emergency rules and
14the provisions of Sections 5-115 and 5-125 do not apply to
15rules adopted under this subsection (h). The adoption of
16emergency rules authorized by this subsection (h) shall be
17deemed to be necessary for the public interest, safety, and
18welfare.
19 (i) In order to provide for the expeditious and timely
20implementation of the State's fiscal year 2004 budget,
21emergency rules to implement any provision of Public Act 93-20
22or any other budget initiative for fiscal year 2004 may be
23adopted in accordance with this Section by the agency charged
24with administering that provision or initiative, except that
25the 24-month limitation on the adoption of emergency rules and
26the provisions of Sections 5-115 and 5-125 do not apply to

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1rules adopted under this subsection (i). The adoption of
2emergency rules authorized by this subsection (i) shall be
3deemed to be necessary for the public interest, safety, and
4welfare.
5 (j) In order to provide for the expeditious and timely
6implementation of the provisions of the State's fiscal year
72005 budget as provided under the Fiscal Year 2005 Budget
8Implementation (Human Services) Act, emergency rules to
9implement any provision of the Fiscal Year 2005 Budget
10Implementation (Human Services) Act may be adopted in
11accordance with this Section by the agency charged with
12administering that provision, except that the 24-month
13limitation on the adoption of emergency rules and the
14provisions of Sections 5-115 and 5-125 do not apply to rules
15adopted under this subsection (j). The Department of Public Aid
16may also adopt rules under this subsection (j) necessary to
17administer the Illinois Public Aid Code and the Children's
18Health Insurance Program Act. The adoption of emergency rules
19authorized by this subsection (j) shall be deemed to be
20necessary for the public interest, safety, and welfare.
21 (k) In order to provide for the expeditious and timely
22implementation of the provisions of the State's fiscal year
232006 budget, emergency rules to implement any provision of
24Public Act 94-48 or any other budget initiative for fiscal year
252006 may be adopted in accordance with this Section by the
26agency charged with administering that provision or

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1initiative, except that the 24-month limitation on the adoption
2of emergency rules and the provisions of Sections 5-115 and
35-125 do not apply to rules adopted under this subsection (k).
4The Department of Healthcare and Family Services may also adopt
5rules under this subsection (k) necessary to administer the
6Illinois Public Aid Code, the Senior Citizens and Persons with
7Disabilities Property Tax Relief Act, the Senior Citizens and
8Disabled Persons Prescription Drug Discount Program Act (now
9the Illinois Prescription Drug Discount Program Act), and the
10Children's Health Insurance Program Act. The adoption of
11emergency rules authorized by this subsection (k) shall be
12deemed to be necessary for the public interest, safety, and
13welfare.
14 (l) In order to provide for the expeditious and timely
15implementation of the provisions of the State's fiscal year
162007 budget, the Department of Healthcare and Family Services
17may adopt emergency rules during fiscal year 2007, including
18rules effective July 1, 2007, in accordance with this
19subsection to the extent necessary to administer the
20Department's responsibilities with respect to amendments to
21the State plans and Illinois waivers approved by the federal
22Centers for Medicare and Medicaid Services necessitated by the
23requirements of Title XIX and Title XXI of the federal Social
24Security Act. The adoption of emergency rules authorized by
25this subsection (l) shall be deemed to be necessary for the
26public interest, safety, and welfare.

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1 (m) In order to provide for the expeditious and timely
2implementation of the provisions of the State's fiscal year
32008 budget, the Department of Healthcare and Family Services
4may adopt emergency rules during fiscal year 2008, including
5rules effective July 1, 2008, in accordance with this
6subsection to the extent necessary to administer the
7Department's responsibilities with respect to amendments to
8the State plans and Illinois waivers approved by the federal
9Centers for Medicare and Medicaid Services necessitated by the
10requirements of Title XIX and Title XXI of the federal Social
11Security Act. The adoption of emergency rules authorized by
12this subsection (m) shall be deemed to be necessary for the
13public interest, safety, and welfare.
14 (n) In order to provide for the expeditious and timely
15implementation of the provisions of the State's fiscal year
162010 budget, emergency rules to implement any provision of
17Public Act 96-45 or any other budget initiative authorized by
18the 96th General Assembly for fiscal year 2010 may be adopted
19in accordance with this Section by the agency charged with
20administering that provision or initiative. The adoption of
21emergency rules authorized by this subsection (n) shall be
22deemed to be necessary for the public interest, safety, and
23welfare. The rulemaking authority granted in this subsection
24(n) shall apply only to rules promulgated during Fiscal Year
252010.
26 (o) In order to provide for the expeditious and timely

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1implementation of the provisions of the State's fiscal year
22011 budget, emergency rules to implement any provision of
3Public Act 96-958 or any other budget initiative authorized by
4the 96th General Assembly for fiscal year 2011 may be adopted
5in accordance with this Section by the agency charged with
6administering that provision or initiative. The adoption of
7emergency rules authorized by this subsection (o) is deemed to
8be necessary for the public interest, safety, and welfare. The
9rulemaking authority granted in this subsection (o) applies
10only to rules promulgated on or after July 1, 2010 (the
11effective date of Public Act 96-958) through June 30, 2011.
12 (p) In order to provide for the expeditious and timely
13implementation of the provisions of Public Act 97-689,
14emergency rules to implement any provision of Public Act 97-689
15may be adopted in accordance with this subsection (p) by the
16agency charged with administering that provision or
17initiative. The 150-day limitation of the effective period of
18emergency rules does not apply to rules adopted under this
19subsection (p), and the effective period may continue through
20June 30, 2013. The 24-month limitation on the adoption of
21emergency rules does not apply to rules adopted under this
22subsection (p). The adoption of emergency rules authorized by
23this subsection (p) is deemed to be necessary for the public
24interest, safety, and welfare.
25 (q) In order to provide for the expeditious and timely
26implementation of the provisions of Articles 7, 8, 9, 11, and

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112 of Public Act 98-104, emergency rules to implement any
2provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
3may be adopted in accordance with this subsection (q) by the
4agency charged with administering that provision or
5initiative. The 24-month limitation on the adoption of
6emergency rules does not apply to rules adopted under this
7subsection (q). The adoption of emergency rules authorized by
8this subsection (q) is deemed to be necessary for the public
9interest, safety, and welfare.
10 (r) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 98-651,
12emergency rules to implement Public Act 98-651 may be adopted
13in accordance with this subsection (r) by the Department of
14Healthcare and Family Services. The 24-month limitation on the
15adoption of emergency rules does not apply to rules adopted
16under this subsection (r). The adoption of emergency rules
17authorized by this subsection (r) is deemed to be necessary for
18the public interest, safety, and welfare.
19 (s) In order to provide for the expeditious and timely
20implementation of the provisions of Sections 5-5b.1 and 5A-2 of
21the Illinois Public Aid Code, emergency rules to implement any
22provision of Section 5-5b.1 or Section 5A-2 of the Illinois
23Public Aid Code may be adopted in accordance with this
24subsection (s) by the Department of Healthcare and Family
25Services. The rulemaking authority granted in this subsection
26(s) shall apply only to those rules adopted prior to July 1,

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12015. Notwithstanding any other provision of this Section, any
2emergency rule adopted under this subsection (s) shall only
3apply to payments made for State fiscal year 2015. The adoption
4of emergency rules authorized by this subsection (s) is deemed
5to be necessary for the public interest, safety, and welfare.
6 (t) In order to provide for the expeditious and timely
7implementation of the provisions of Article II of Public Act
899-6, emergency rules to implement the changes made by Article
9II of Public Act 99-6 to the Emergency Telephone System Act may
10be adopted in accordance with this subsection (t) by the
11Department of State Police. The rulemaking authority granted in
12this subsection (t) shall apply only to those rules adopted
13prior to July 1, 2016. The 24-month limitation on the adoption
14of emergency rules does not apply to rules adopted under this
15subsection (t). The adoption of emergency rules authorized by
16this subsection (t) is deemed to be necessary for the public
17interest, safety, and welfare.
18 (u) In order to provide for the expeditious and timely
19implementation of the provisions of the Burn Victims Relief
20Act, emergency rules to implement any provision of the Act may
21be adopted in accordance with this subsection (u) by the
22Department of Insurance. The rulemaking authority granted in
23this subsection (u) shall apply only to those rules adopted
24prior to December 31, 2015. The adoption of emergency rules
25authorized by this subsection (u) is deemed to be necessary for
26the public interest, safety, and welfare.

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1 (v) In order to provide for the expeditious and timely
2implementation of the provisions of Public Act 99-516,
3emergency rules to implement Public Act 99-516 may be adopted
4in accordance with this subsection (v) by the Department of
5Healthcare and Family Services. The 24-month limitation on the
6adoption of emergency rules does not apply to rules adopted
7under this subsection (v). The adoption of emergency rules
8authorized by this subsection (v) is deemed to be necessary for
9the public interest, safety, and welfare.
10 (w) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 99-796,
12emergency rules to implement the changes made by Public Act
1399-796 may be adopted in accordance with this subsection (w) by
14the Adjutant General. The adoption of emergency rules
15authorized by this subsection (w) is deemed to be necessary for
16the public interest, safety, and welfare.
17 (x) In order to provide for the expeditious and timely
18implementation of the provisions of Public Act 99-906,
19emergency rules to implement subsection (i) of Section 16-115D,
20subsection (g) of Section 16-128A, and subsection (a) of
21Section 16-128B of the Public Utilities Act may be adopted in
22accordance with this subsection (x) by the Illinois Commerce
23Commission. The rulemaking authority granted in this
24subsection (x) shall apply only to those rules adopted within
25180 days after June 1, 2017 (the effective date of Public Act
2699-906). The adoption of emergency rules authorized by this

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1subsection (x) is deemed to be necessary for the public
2interest, safety, and welfare.
3 (y) In order to provide for the expeditious and timely
4implementation of the provisions of Public Act 100-23,
5emergency rules to implement the changes made by Public Act
6100-23 to Section 4.02 of the Illinois Act on the Aging,
7Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
8Section 55-30 of the Alcoholism and Other Drug Abuse and
9Dependency Act, and Sections 74 and 75 of the Mental Health and
10Developmental Disabilities Administrative Act may be adopted
11in accordance with this subsection (y) by the respective
12Department. The adoption of emergency rules authorized by this
13subsection (y) is deemed to be necessary for the public
14interest, safety, and welfare.
15 (z) In order to provide for the expeditious and timely
16implementation of the provisions of Public Act 100-554,
17emergency rules to implement the changes made by Public Act
18100-554 to Section 4.7 of the Lobbyist Registration Act may be
19adopted in accordance with this subsection (z) by the Secretary
20of State. The adoption of emergency rules authorized by this
21subsection (z) is deemed to be necessary for the public
22interest, safety, and welfare.
23 (aa) In order to provide for the expeditious and timely
24initial implementation of the changes made to Articles 5, 5A,
2512, and 14 of the Illinois Public Aid Code under the provisions
26of Public Act 100-581, the Department of Healthcare and Family

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1Services may adopt emergency rules in accordance with this
2subsection (aa). The 24-month limitation on the adoption of
3emergency rules does not apply to rules to initially implement
4the changes made to Articles 5, 5A, 12, and 14 of the Illinois
5Public Aid Code adopted under this subsection (aa). The
6adoption of emergency rules authorized by this subsection (aa)
7is deemed to be necessary for the public interest, safety, and
8welfare.
9 (bb) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 100-587,
11emergency rules to implement the changes made by Public Act
12100-587 to Section 4.02 of the Illinois Act on the Aging,
13Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
14subsection (b) of Section 55-30 of the Alcoholism and Other
15Drug Abuse and Dependency Act, Section 5-104 of the Specialized
16Mental Health Rehabilitation Act of 2013, and Section 75 and
17subsection (b) of Section 74 of the Mental Health and
18Developmental Disabilities Administrative Act may be adopted
19in accordance with this subsection (bb) by the respective
20Department. The adoption of emergency rules authorized by this
21subsection (bb) is deemed to be necessary for the public
22interest, safety, and welfare.
23 (cc) In order to provide for the expeditious and timely
24implementation of the provisions of Public Act 100-587,
25emergency rules may be adopted in accordance with this
26subsection (cc) to implement the changes made by Public Act

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1100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
2Pension Code by the Board created under Article 14 of the Code;
3Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
4the Board created under Article 15 of the Code; and Sections
516-190.5 and 16-190.6 of the Illinois Pension Code by the Board
6created under Article 16 of the Code. The adoption of emergency
7rules authorized by this subsection (cc) is deemed to be
8necessary for the public interest, safety, and welfare.
9 (dd) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 100-864,
11emergency rules to implement the changes made by Public Act
12100-864 to Section 3.35 of the Newborn Metabolic Screening Act
13may be adopted in accordance with this subsection (dd) by the
14Secretary of State. The adoption of emergency rules authorized
15by this subsection (dd) is deemed to be necessary for the
16public interest, safety, and welfare.
17 (ee) In order to provide for the expeditious and timely
18implementation of the provisions of Public Act 100-1172 this
19amendatory Act of the 100th General Assembly, emergency rules
20implementing the Illinois Underground Natural Gas Storage
21Safety Act may be adopted in accordance with this subsection by
22the Department of Natural Resources. The adoption of emergency
23rules authorized by this subsection is deemed to be necessary
24for the public interest, safety, and welfare.
25 (ff) (ee) In order to provide for the expeditious and
26timely initial implementation of the changes made to Articles

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15A and 14 of the Illinois Public Aid Code under the provisions
2of Public Act 100-1181 this amendatory Act of the 100th General
3Assembly, the Department of Healthcare and Family Services may
4on a one-time-only basis adopt emergency rules in accordance
5with this subsection (ff) (ee). The 24-month limitation on the
6adoption of emergency rules does not apply to rules to
7initially implement the changes made to Articles 5A and 14 of
8the Illinois Public Aid Code adopted under this subsection (ff)
9(ee). The adoption of emergency rules authorized by this
10subsection (ff) (ee) is deemed to be necessary for the public
11interest, safety, and welfare.
12 (gg) (ff) In order to provide for the expeditious and
13timely implementation of the provisions of Public Act 101-1
14this amendatory Act of the 101st General Assembly, emergency
15rules may be adopted by the Department of Labor in accordance
16with this subsection (gg) (ff) to implement the changes made by
17Public Act 101-1 this amendatory Act of the 101st General
18Assembly to the Minimum Wage Law. The adoption of emergency
19rules authorized by this subsection (gg) (ff) is deemed to be
20necessary for the public interest, safety, and welfare.
21 (ii) In order to provide for the expeditious and timely
22implementation of the provisions of Section 25-70 of the Sports
23Wagering Act, emergency rules to implement Section 25-70 of the
24Sports Wagering Act may be adopted in accordance with this
25subsection (ii) by the Department of the Lottery as provided in
26the Sports Wagering Act. The adoption of emergency rules

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1authorized by this subsection (ii) is deemed to be necessary
2for the public interest, safety, and welfare.
3 (jj) In order to provide for the expeditious and timely
4implementation of the Sports Wagering Act, emergency rules to
5implement the Sports Wagering Act may be adopted in accordance
6with this subsection (jj) by the Illinois Gaming Board. The
7adoption of emergency rules authorized by this subsection (jj)
8is deemed to be necessary for the public interest, safety, and
9welfare.
10(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
11100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
126-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
13100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
143-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)
15 Section 25-905. The State Finance Act is amended by adding
16Section 5.896 as follows:
17 (30 ILCS 105/5.896 new)
18 Sec. 5.896. The Sports Wagering Fund.
19 Section 25-910. The Riverboat Gambling Act is amended by
20changing Section 13 as follows:
21 (230 ILCS 10/13) (from Ch. 120, par. 2413)
22 Sec. 13. Wagering tax; rate; distribution.

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

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

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1 37.5% of annual adjusted gross receipts in excess of
2 $50,000,000 but not exceeding $75,000,000;
3 45% of annual adjusted gross receipts in excess of
4 $75,000,000 but not exceeding $100,000,000;
5 50% of annual adjusted gross receipts in excess of
6 $100,000,000 but not exceeding $250,000,000;
7 70% of annual adjusted gross receipts in excess of
8 $250,000,000.
9 An amount equal to the amount of wagering taxes collected
10under this subsection (a-3) that are in addition to the amount
11of wagering taxes that would have been collected if the
12wagering tax rates under subsection (a-2) were in effect shall
13be paid into the Common School Fund.
14 The privilege tax imposed under this subsection (a-3) shall
15no longer be imposed beginning on the earlier of (i) July 1,
162005; (ii) the first date after June 20, 2003 that riverboat
17gambling operations are conducted pursuant to a dormant
18license; or (iii) the first day that riverboat gambling
19operations are conducted under the authority of an owners
20license that is in addition to the 10 owners licenses initially
21authorized under this Act. For the purposes of this subsection
22(a-3), the term "dormant license" means an owners license that
23is authorized by this Act under which no riverboat gambling
24operations are being conducted on June 20, 2003.
25 (a-4) Beginning on the first day on which the tax imposed
26under subsection (a-3) is no longer imposed, a privilege tax is

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1imposed on persons engaged in the business of conducting
2riverboat gambling operations, other than licensed managers
3conducting riverboat gambling operations on behalf of the
4State, based on the adjusted gross receipts received by a
5licensed owner from gambling games authorized under this Act at
6the following rates:
7 15% of annual adjusted gross receipts up to and
8 including $25,000,000;
9 22.5% of annual adjusted gross receipts in excess of
10 $25,000,000 but not exceeding $50,000,000;
11 27.5% of annual adjusted gross receipts in excess of
12 $50,000,000 but not exceeding $75,000,000;
13 32.5% of annual adjusted gross receipts in excess of
14 $75,000,000 but not exceeding $100,000,000;
15 37.5% of annual adjusted gross receipts in excess of
16 $100,000,000 but not exceeding $150,000,000;
17 45% of annual adjusted gross receipts in excess of
18 $150,000,000 but not exceeding $200,000,000;
19 50% of annual adjusted gross receipts in excess of
20 $200,000,000.
21 (a-8) Riverboat gambling operations conducted by a
22licensed manager on behalf of the State are not subject to the
23tax imposed under this Section.
24 (a-10) The taxes imposed by this Section shall be paid by
25the licensed owner to the Board not later than 5:00 o'clock
26p.m. of the day after the day when the wagers were made.

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1 (a-15) If the privilege tax imposed under subsection (a-3)
2is no longer imposed pursuant to item (i) of the last paragraph
3of subsection (a-3), then by June 15 of each year, each owners
4licensee, other than an owners licensee that admitted 1,000,000
5persons or fewer in calendar year 2004, must, in addition to
6the payment of all amounts otherwise due under this Section,
7pay to the Board a reconciliation payment in the amount, if
8any, by which the licensed owner's base amount exceeds the
9amount of net privilege tax paid by the licensed owner to the
10Board in the then current State fiscal year. A licensed owner's
11net privilege tax obligation due for the balance of the State
12fiscal year shall be reduced up to the total of the amount paid
13by the licensed owner in its June 15 reconciliation payment.
14The obligation imposed by this subsection (a-15) is binding on
15any person, firm, corporation, or other entity that acquires an
16ownership interest in any such owners license. The obligation
17imposed under this subsection (a-15) terminates on the earliest
18of: (i) July 1, 2007, (ii) the first day after the effective
19date of this amendatory Act of the 94th General Assembly that
20riverboat gambling operations are conducted pursuant to a
21dormant license, (iii) the first day that riverboat gambling
22operations are conducted under the authority of an owners
23license that is in addition to the 10 owners licenses initially
24authorized under this Act, or (iv) the first day that a
25licensee under the Illinois Horse Racing Act of 1975 conducts
26gaming operations with slot machines or other electronic gaming

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

10100SB0690ham002- 199 -LRB101 04451 SMS 61506 a
1 "Dormant license" has the meaning ascribed to it in
2subsection (a-3).
3 "Net privilege tax" means all privilege taxes paid by a
4licensed owner to the Board under this Section, less all
5payments made from the State Gaming Fund pursuant to subsection
6(b) of this Section.
7 The changes made to this subsection (a-15) by Public Act
894-839 are intended to restate and clarify the intent of Public
9Act 94-673 with respect to the amount of the payments required
10to be made under this subsection by an owners licensee to the
11Board.
12 (b) Until January 1, 1998, 25% of the tax revenue deposited
13in the State Gaming Fund under this Section shall be paid,
14subject to appropriation by the General Assembly, to the unit
15of local government which is designated as the home dock of the
16riverboat. Beginning January 1, 1998, from the tax revenue
17deposited in the State Gaming Fund under this Section, an
18amount equal to 5% of adjusted gross receipts generated by a
19riverboat shall be paid monthly, subject to appropriation by
20the General Assembly, to the unit of local government that is
21designated as the home dock of the riverboat. From the tax
22revenue deposited in the State Gaming Fund pursuant to
23riverboat gambling operations conducted by a licensed manager
24on behalf of the State, an amount equal to 5% of adjusted gross
25receipts generated pursuant to those riverboat gambling
26operations shall be paid monthly, subject to appropriation by

10100SB0690ham002- 200 -LRB101 04451 SMS 61506 a
1the General Assembly, to the unit of local government that is
2designated as the home dock of the riverboat upon which those
3riverboat gambling operations are conducted.
4 (c) Appropriations, as approved by the General Assembly,
5may be made from the State Gaming Fund to the Board (i) for the
6administration and enforcement of this Act and the Video Gaming
7Act, (ii) for distribution to the Department of State Police
8and to the Department of Revenue for the enforcement of this
9Act, and (iii) to the Department of Human Services for the
10administration of programs to treat problem gambling,
11including problem gambling from sports wagering.
12 (c-5) Before May 26, 2006 (the effective date of Public Act
1394-804) and beginning on the effective date of this amendatory
14Act of the 95th General Assembly, unless any organization
15licensee under the Illinois Horse Racing Act of 1975 begins to
16operate a slot machine or video game of chance under the
17Illinois Horse Racing Act of 1975 or this Act, after the
18payments required under subsections (b) and (c) have been made,
19an amount equal to 15% of the adjusted gross receipts of (1) an
20owners licensee that relocates pursuant to Section 11.2, (2) an
21owners licensee conducting riverboat gambling operations
22pursuant to an owners license that is initially issued after
23June 25, 1999, or (3) the first riverboat gambling operations
24conducted by a licensed manager on behalf of the State under
25Section 7.3, whichever comes first, shall be paid from the
26State Gaming Fund into the Horse Racing Equity Fund.

10100SB0690ham002- 201 -LRB101 04451 SMS 61506 a
1 (c-10) Each year the General Assembly shall appropriate
2from the General Revenue Fund to the Education Assistance Fund
3an amount equal to the amount paid into the Horse Racing Equity
4Fund pursuant to subsection (c-5) in the prior calendar year.
5 (c-15) After the payments required under subsections (b),
6(c), and (c-5) have been made, an amount equal to 2% of the
7adjusted gross receipts of (1) an owners licensee that
8relocates pursuant to Section 11.2, (2) an owners licensee
9conducting riverboat gambling operations pursuant to an owners
10license that is initially issued after June 25, 1999, or (3)
11the first riverboat gambling operations conducted by a licensed
12manager on behalf of the State under Section 7.3, whichever
13comes first, shall be paid, subject to appropriation from the
14General Assembly, from the State Gaming Fund to each home rule
15county with a population of over 3,000,000 inhabitants for the
16purpose of enhancing the county's criminal justice system.
17 (c-20) Each year the General Assembly shall appropriate
18from the General Revenue Fund to the Education Assistance Fund
19an amount equal to the amount paid to each home rule county
20with a population of over 3,000,000 inhabitants pursuant to
21subsection (c-15) in the prior calendar year.
22 (c-25) On July 1, 2013 and each July 1 thereafter,
23$1,600,000 shall be transferred from the State Gaming Fund to
24the Chicago State University Education Improvement Fund.
25 (c-30) On July 1, 2013 or as soon as possible thereafter,
26$92,000,000 shall be transferred from the State Gaming Fund to

10100SB0690ham002- 202 -LRB101 04451 SMS 61506 a
1the School Infrastructure Fund and $23,000,000 shall be
2transferred from the State Gaming Fund to the Horse Racing
3Equity Fund.
4 (c-35) Beginning on July 1, 2013, in addition to any amount
5transferred under subsection (c-30) of this Section,
6$5,530,000 shall be transferred monthly from the State Gaming
7Fund to the School Infrastructure Fund.
8 (d) From time to time, the Board shall transfer the
9remainder of the funds generated by this Act into the Education
10Assistance Fund, created by Public Act 86-0018, of the State of
11Illinois.
12 (e) Nothing in this Act shall prohibit the unit of local
13government designated as the home dock of the riverboat from
14entering into agreements with other units of local government
15in this State or in other states to share its portion of the
16tax revenue.
17 (f) To the extent practicable, the Board shall administer
18and collect the wagering taxes imposed by this Section in a
19manner consistent with the provisions of Sections 4, 5, 5a, 5b,
205c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
21Retailers' Occupation Tax Act and Section 3-7 of the Uniform
22Penalty and Interest Act.
23(Source: P.A. 98-18, eff. 6-7-13.)
24 Section 25-915. The Criminal Code of 2012 is amended by
25changing Sections 28-1, 28-3, and 28-5 as follows:

10100SB0690ham002- 203 -LRB101 04451 SMS 61506 a
1 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
2 Sec. 28-1. Gambling.
3 (a) A person commits gambling when he or she:
4 (1) knowingly plays a game of chance or skill for money
5 or other thing of value, unless excepted in subsection (b)
6 of this Section;
7 (2) knowingly makes a wager upon the result of any
8 game, contest, or any political nomination, appointment or
9 election;
10 (3) knowingly operates, keeps, owns, uses, purchases,
11 exhibits, rents, sells, bargains for the sale or lease of,
12 manufactures or distributes any gambling device;
13 (4) contracts to have or give himself or herself or
14 another the option to buy or sell, or contracts to buy or
15 sell, at a future time, any grain or other commodity
16 whatsoever, or any stock or security of any company, where
17 it is at the time of making such contract intended by both
18 parties thereto that the contract to buy or sell, or the
19 option, whenever exercised, or the contract resulting
20 therefrom, shall be settled, not by the receipt or delivery
21 of such property, but by the payment only of differences in
22 prices thereof; however, the issuance, purchase, sale,
23 exercise, endorsement or guarantee, by or through a person
24 registered with the Secretary of State pursuant to Section
25 8 of the Illinois Securities Law of 1953, or by or through

10100SB0690ham002- 204 -LRB101 04451 SMS 61506 a
1 a person exempt from such registration under said Section
2 8, of a put, call, or other option to buy or sell
3 securities which have been registered with the Secretary of
4 State or which are exempt from such registration under
5 Section 3 of the Illinois Securities Law of 1953 is not
6 gambling within the meaning of this paragraph (4);
7 (5) knowingly owns or possesses any book, instrument or
8 apparatus by means of which bets or wagers have been, or
9 are, recorded or registered, or knowingly possesses any
10 money which he has received in the course of a bet or
11 wager;
12 (6) knowingly sells pools upon the result of any game
13 or contest of skill or chance, political nomination,
14 appointment or election;
15 (7) knowingly sets up or promotes any lottery or sells,
16 offers to sell or transfers any ticket or share for any
17 lottery;
18 (8) knowingly sets up or promotes any policy game or
19 sells, offers to sell or knowingly possesses or transfers
20 any policy ticket, slip, record, document or other similar
21 device;
22 (9) knowingly drafts, prints or publishes any lottery
23 ticket or share, or any policy ticket, slip, record,
24 document or similar device, except for such activity
25 related to lotteries, bingo games and raffles authorized by
26 and conducted in accordance with the laws of Illinois or

10100SB0690ham002- 205 -LRB101 04451 SMS 61506 a
1 any other state or foreign government;
2 (10) knowingly advertises any lottery or policy game,
3 except for such activity related to lotteries, bingo games
4 and raffles authorized by and conducted in accordance with
5 the laws of Illinois or any other state;
6 (11) knowingly transmits information as to wagers,
7 betting odds, or changes in betting odds by telephone,
8 telegraph, radio, semaphore or similar means; or knowingly
9 installs or maintains equipment for the transmission or
10 receipt of such information; except that nothing in this
11 subdivision (11) prohibits transmission or receipt of such
12 information for use in news reporting of sporting events or
13 contests; or
14 (12) knowingly establishes, maintains, or operates an
15 Internet site that permits a person to play a game of
16 chance or skill for money or other thing of value by means
17 of the Internet or to make a wager upon the result of any
18 game, contest, political nomination, appointment, or
19 election by means of the Internet. This item (12) does not
20 apply to activities referenced in items (6), and (6.1), and
21 (15) of subsection (b) of this Section.
22 (b) Participants in any of the following activities shall
23not be convicted of gambling:
24 (1) Agreements to compensate for loss caused by the
25 happening of chance including without limitation contracts
26 of indemnity or guaranty and life or health or accident

10100SB0690ham002- 206 -LRB101 04451 SMS 61506 a
1 insurance.
2 (2) Offers of prizes, award or compensation to the
3 actual contestants in any bona fide contest for the
4 determination of skill, speed, strength or endurance or to
5 the owners of animals or vehicles entered in such contest.
6 (3) Pari-mutuel betting as authorized by the law of
7 this State.
8 (4) Manufacture of gambling devices, including the
9 acquisition of essential parts therefor and the assembly
10 thereof, for transportation in interstate or foreign
11 commerce to any place outside this State when such
12 transportation is not prohibited by any applicable Federal
13 law; or the manufacture, distribution, or possession of
14 video gaming terminals, as defined in the Video Gaming Act,
15 by manufacturers, distributors, and terminal operators
16 licensed to do so under the Video Gaming Act.
17 (5) The game commonly known as "bingo", when conducted
18 in accordance with the Bingo License and Tax Act.
19 (6) Lotteries when conducted by the State of Illinois
20 in accordance with the Illinois Lottery Law. This exemption
21 includes any activity conducted by the Department of
22 Revenue to sell lottery tickets pursuant to the provisions
23 of the Illinois Lottery Law and its rules.
24 (6.1) The purchase of lottery tickets through the
25 Internet for a lottery conducted by the State of Illinois
26 under the program established in Section 7.12 of the

10100SB0690ham002- 207 -LRB101 04451 SMS 61506 a
1 Illinois Lottery Law.
2 (7) Possession of an antique slot machine that is
3 neither used nor intended to be used in the operation or
4 promotion of any unlawful gambling activity or enterprise.
5 For the purpose of this subparagraph (b)(7), an antique
6 slot machine is one manufactured 25 years ago or earlier.
7 (8) Raffles and poker runs when conducted in accordance
8 with the Raffles and Poker Runs Act.
9 (9) Charitable games when conducted in accordance with
10 the Charitable Games Act.
11 (10) Pull tabs and jar games when conducted under the
12 Illinois Pull Tabs and Jar Games Act.
13 (11) Gambling games conducted on riverboats when
14 authorized by the Riverboat Gambling Act.
15 (12) Video gaming terminal games at a licensed
16 establishment, licensed truck stop establishment, licensed
17 fraternal establishment, or licensed veterans
18 establishment when conducted in accordance with the Video
19 Gaming Act.
20 (13) Games of skill or chance where money or other
21 things of value can be won but no payment or purchase is
22 required to participate.
23 (14) Savings promotion raffles authorized under
24 Section 5g of the Illinois Banking Act, Section 7008 of the
25 Savings Bank Act, Section 42.7 of the Illinois Credit Union
26 Act, Section 5136B of the National Bank Act (12 U.S.C.

10100SB0690ham002- 208 -LRB101 04451 SMS 61506 a
1 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
2 1463).
3 (15) Sports wagering when conducted in accordance with
4 the Sports Wagering Act.
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 5/28-3) (from Ch. 38, par. 28-3)
15 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
16any real estate, vehicle, boat or any other property whatsoever
17used for the purposes of gambling other than gambling conducted
18in the manner authorized by the Riverboat Gambling Act, the
19Sports Wagering Act, or the Video Gaming Act. Any person who
20knowingly permits any premises or property owned or occupied by
21him or under his control to be used as a gambling place commits
22a Class A misdemeanor. Each subsequent offense is a Class 4
23felony. When any premises is determined by the circuit court to
24be a gambling place:
25 (a) Such premises is a public nuisance and may be proceeded

10100SB0690ham002- 209 -LRB101 04451 SMS 61506 a
1against as such, and
2 (b) All licenses, permits or certificates issued by the
3State of Illinois or any subdivision or public agency thereof
4authorizing the serving of food or liquor on such premises
5shall be void; and no license, permit or certificate so
6cancelled shall be reissued for such premises for a period of
760 days thereafter; nor shall any person convicted of keeping a
8gambling place be reissued such license for one year from his
9conviction and, after a second conviction of keeping a gambling
10place, any such person shall not be reissued such license, and
11 (c) Such premises of any person who knowingly permits
12thereon a violation of any Section of this Article shall be
13held liable for, and may be sold to pay any unsatisfied
14judgment that may be recovered and any unsatisfied fine that
15may be levied under any Section of this Article.
16(Source: P.A. 96-34, eff. 7-13-09.)
17 (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
18 Sec. 28-5. Seizure of gambling devices and gambling funds.
19 (a) Every device designed for gambling which is incapable
20of lawful use or every device used unlawfully for gambling
21shall be considered a "gambling device", and shall be subject
22to seizure, confiscation and destruction by the Department of
23State Police or by any municipal, or other local authority,
24within whose jurisdiction the same may be found. As used in
25this Section, a "gambling device" includes any slot machine,

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

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

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

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1 (3) Video gaming terminals that are removed from a
2 licensed establishment, licensed truck stop establishment,
3 licensed fraternal establishment, or licensed veterans
4 establishment for repair.
5 (h) Property seized or forfeited under this Section is
6subject to reporting under the Seizure and Forfeiture Reporting
7Act.
8 (i) Any sports lottery terminals provided by a central
9system provider that are removed from a lottery retailer for
10repair under the Sports Wagering Act are exempt from seizure
11under this Section.
12(Source: P.A. 100-512, eff. 7-1-18.)
13
Article 30. State Fair Gaming Act
14 Section 30-1. Short title. This Article may be cited as the
15State Fair Gaming Act. References in this Article to "this Act"
16mean this Article.
17 Section 30-5. Definitions. As used in this Act:
18 "Board" means the Illinois Gaming Board.
19 "State Fair" has the meaning given to that term in the
20State Fair Act.
21 Section 30-10. Gambling at the State Fair.
22 (a) The Board shall issue a licensed establishment license

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1as provided under Section 25 of the Video Gaming Act to a
2concessioner who will operate at the Illinois State Fairgrounds
3and at the DuQuoin State Fairgrounds. The concessioner shall be
4chosen under the Illinois Procurement Code for an operational
5period not to exceed 3 years. At the conclusion of each 3-year
6cycle, the Illinois Procurement Code shall be used to determine
7the new concessioner.
8 (b) Moneys bid by the concessioner shall be deposited into
9the State Fairgrounds Capital Improvements and Harness Racing
10Fund.
11 Section 30-15. Video gaming at the State Fair.
12 (a) The concessioner issued a licensed establishment
13license under Section 30-10 may operate: (1) up to 50 video
14gaming terminals as provided in the Video Gaming Act during the
15scheduled dates of the Illinois State Fair; and (2) up to 30
16video gaming terminals as provided in the Video Gaming Act
17during the scheduled dates of the DuQuoin State Fair.
18 (b) No more than 10 video gaming terminals may be placed in
19any temporary pavilion where alcoholic beverages are served at
20either State Fair.
21 Section 30-20. Revenue.
22 (a) Notwithstanding any other law to the contrary, a tax is
23imposed at the rate of 35% of net terminal income received from
24video gaming under this Act, which shall be remitted to the

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1Board and deposited into the State Fairgrounds Capital
2Improvements and Harness Racing Fund.
3 (b) There is created within the State treasury the State
4Fairgrounds Capital Improvements and Harness Racing Fund. The
5Department of Agriculture shall use moneys in the State
6Fairgrounds Capital Improvements and Harness Racing Fund as
7follows and in the order of priority:
8 (1) to provide support for a harness race meeting
9 produced by an organization licensee under the Illinois
10 Horse Racing Act of 1975 and which shall consist of up to
11 30 days of live racing per year at the Illinois State
12 Fairgrounds in Springfield;
13 (2) to repair and rehabilitate fairgrounds'
14 backstretch facilities to such a level as determined by the
15 Department of Agriculture to be required to carry out a
16 program of live harness racing; and
17 (3) for the overall repair and rehabilitation of the
18 capital infrastructure of: (i) the Illinois State
19 Fairgrounds in Springfield, and (ii) the DuQuoin State
20 Fairgrounds in DuQuoin, and for no other purpose.
21 Notwithstanding any other law to the contrary, the entire
22State share of tax revenues from the race meetings under
23paragraph (1) of this subsection (c) shall be reinvested into
24the State Fairgrounds Capital Improvements and Harness Racing
25Fund.

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1 Section 30-25. Rules. The Board and the Department of
2Agriculture may adopt rules for the implementation of this Act.
3 Section 30-900. The State Finance Act is amended by adding
4Section 5.897 as follows:
5 (30 ILCS 105/5.897 new)
6 Sec. 5.897. The State Fairgrounds Capital Improvements and
7Harness Racing Fund.
8
Article 35. Amendatory Provisions
9 Section 35-3. The Illinois Administrative Procedure Act is
10amended by changing Section 5-45 as follows:
11 (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
12 Sec. 5-45. Emergency rulemaking.
13 (a) "Emergency" means the existence of any situation that
14any agency finds reasonably constitutes a threat to the public
15interest, safety, or welfare.
16 (b) If any agency finds that an emergency exists that
17requires adoption of a rule upon fewer days than is required by
18Section 5-40 and states in writing its reasons for that
19finding, the agency may adopt an emergency rule without prior
20notice or hearing upon filing a notice of emergency rulemaking
21with the Secretary of State under Section 5-70. The notice

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1shall include the text of the emergency rule and shall be
2published in the Illinois Register. Consent orders or other
3court orders adopting settlements negotiated by an agency may
4be adopted under this Section. Subject to applicable
5constitutional or statutory provisions, an emergency rule
6becomes effective immediately upon filing under Section 5-65 or
7at a stated date less than 10 days thereafter. The agency's
8finding and a statement of the specific reasons for the finding
9shall be filed with the rule. The agency shall take reasonable
10and appropriate measures to make emergency rules known to the
11persons who may be affected by them.
12 (c) An emergency rule may be effective for a period of not
13longer than 150 days, but the agency's authority to adopt an
14identical rule under Section 5-40 is not precluded. No
15emergency rule may be adopted more than once in any 24-month
16period, except that this limitation on the number of emergency
17rules that may be adopted in a 24-month period does not apply
18to (i) emergency rules that make additions to and deletions
19from the Drug Manual under Section 5-5.16 of the Illinois
20Public Aid Code or the generic drug formulary under Section
213.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
22emergency rules adopted by the Pollution Control Board before
23July 1, 1997 to implement portions of the Livestock Management
24Facilities Act, (iii) emergency rules adopted by the Illinois
25Department of Public Health under subsections (a) through (i)
26of Section 2 of the Department of Public Health Act when

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1necessary to protect the public's health, (iv) emergency rules
2adopted pursuant to subsection (n) of this Section, (v)
3emergency rules adopted pursuant to subsection (o) of this
4Section, or (vi) emergency rules adopted pursuant to subsection
5(c-5) of this Section. Two or more emergency rules having
6substantially the same purpose and effect shall be deemed to be
7a single rule for purposes of this Section.
8 (c-5) To facilitate the maintenance of the program of group
9health benefits provided to annuitants, survivors, and retired
10employees under the State Employees Group Insurance Act of
111971, rules to alter the contributions to be paid by the State,
12annuitants, survivors, retired employees, or any combination
13of those entities, for that program of group health benefits,
14shall be adopted as emergency rules. The adoption of those
15rules shall be considered an emergency and necessary for the
16public interest, safety, and welfare.
17 (d) In order to provide for the expeditious and timely
18implementation of the State's fiscal year 1999 budget,
19emergency rules to implement any provision of Public Act 90-587
20or 90-588 or any other budget initiative for fiscal year 1999
21may be adopted in accordance with this Section by the agency
22charged with administering that provision or initiative,
23except that the 24-month limitation on the adoption of
24emergency rules and the provisions of Sections 5-115 and 5-125
25do not apply to rules adopted under this subsection (d). The
26adoption of emergency rules authorized by this subsection (d)

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1shall be deemed to be necessary for the public interest,
2safety, and welfare.
3 (e) In order to provide for the expeditious and timely
4implementation of the State's fiscal year 2000 budget,
5emergency rules to implement any provision of Public Act 91-24
6or any other budget initiative for fiscal year 2000 may be
7adopted in accordance with this Section by the agency charged
8with administering that provision or initiative, except that
9the 24-month limitation on the adoption of emergency rules and
10the provisions of Sections 5-115 and 5-125 do not apply to
11rules adopted under this subsection (e). The adoption of
12emergency rules authorized by this subsection (e) shall be
13deemed to be necessary for the public interest, safety, and
14welfare.
15 (f) In order to provide for the expeditious and timely
16implementation of the State's fiscal year 2001 budget,
17emergency rules to implement any provision of Public Act 91-712
18or any other budget initiative for fiscal year 2001 may be
19adopted in accordance with this Section by the agency charged
20with administering that provision or initiative, except that
21the 24-month limitation on the adoption of emergency rules and
22the provisions of Sections 5-115 and 5-125 do not apply to
23rules adopted under this subsection (f). The adoption of
24emergency rules authorized by this subsection (f) shall be
25deemed to be necessary for the public interest, safety, and
26welfare.

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1 (g) In order to provide for the expeditious and timely
2implementation of the State's fiscal year 2002 budget,
3emergency rules to implement any provision of Public Act 92-10
4or any other budget initiative for fiscal year 2002 may be
5adopted in accordance with this Section by the agency charged
6with administering that provision or initiative, except that
7the 24-month limitation on the adoption of emergency rules and
8the provisions of Sections 5-115 and 5-125 do not apply to
9rules adopted under this subsection (g). The adoption of
10emergency rules authorized by this subsection (g) shall be
11deemed to be necessary for the public interest, safety, and
12welfare.
13 (h) In order to provide for the expeditious and timely
14implementation of the State's fiscal year 2003 budget,
15emergency rules to implement any provision of Public Act 92-597
16or any other budget initiative for fiscal year 2003 may be
17adopted in accordance with this Section by the agency charged
18with administering that provision or initiative, except that
19the 24-month limitation on the adoption of emergency rules and
20the provisions of Sections 5-115 and 5-125 do not apply to
21rules adopted under this subsection (h). The adoption of
22emergency rules authorized by this subsection (h) shall be
23deemed to be necessary for the public interest, safety, and
24welfare.
25 (i) In order to provide for the expeditious and timely
26implementation of the State's fiscal year 2004 budget,

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1emergency rules to implement any provision of Public Act 93-20
2or any other budget initiative for fiscal year 2004 may be
3adopted in accordance with this Section by the agency charged
4with administering that provision or initiative, except that
5the 24-month limitation on the adoption of emergency rules and
6the provisions of Sections 5-115 and 5-125 do not apply to
7rules adopted under this subsection (i). The adoption of
8emergency rules authorized by this subsection (i) shall be
9deemed to be necessary for the public interest, safety, and
10welfare.
11 (j) In order to provide for the expeditious and timely
12implementation of the provisions of the State's fiscal year
132005 budget as provided under the Fiscal Year 2005 Budget
14Implementation (Human Services) Act, emergency rules to
15implement any provision of the Fiscal Year 2005 Budget
16Implementation (Human Services) Act may be adopted in
17accordance with this Section by the agency charged with
18administering that provision, except that the 24-month
19limitation on the adoption of emergency rules and the
20provisions of Sections 5-115 and 5-125 do not apply to rules
21adopted under this subsection (j). The Department of Public Aid
22may also adopt rules under this subsection (j) necessary to
23administer the Illinois Public Aid Code and the Children's
24Health Insurance Program Act. The adoption of emergency rules
25authorized by this subsection (j) shall be deemed to be
26necessary for the public interest, safety, and welfare.

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1 (k) In order to provide for the expeditious and timely
2implementation of the provisions of the State's fiscal year
32006 budget, emergency rules to implement any provision of
4Public Act 94-48 or any other budget initiative for fiscal year
52006 may be adopted in accordance with this Section by the
6agency charged with administering that provision or
7initiative, except that the 24-month limitation on the adoption
8of emergency rules and the provisions of Sections 5-115 and
95-125 do not apply to rules adopted under this subsection (k).
10The Department of Healthcare and Family Services may also adopt
11rules under this subsection (k) necessary to administer the
12Illinois Public Aid Code, the Senior Citizens and Persons with
13Disabilities Property Tax Relief Act, the Senior Citizens and
14Disabled Persons Prescription Drug Discount Program Act (now
15the Illinois Prescription Drug Discount Program Act), and the
16Children's Health Insurance Program Act. The adoption of
17emergency rules authorized by this subsection (k) shall be
18deemed to be necessary for the public interest, safety, and
19welfare.
20 (l) In order to provide for the expeditious and timely
21implementation of the provisions of the State's fiscal year
222007 budget, the Department of Healthcare and Family Services
23may adopt emergency rules during fiscal year 2007, including
24rules effective July 1, 2007, in accordance with this
25subsection to the extent necessary to administer the
26Department's responsibilities with respect to amendments to

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1the State plans and Illinois waivers approved by the federal
2Centers for Medicare and Medicaid Services necessitated by the
3requirements of Title XIX and Title XXI of the federal Social
4Security Act. The adoption of emergency rules authorized by
5this subsection (l) shall be deemed to be necessary for the
6public interest, safety, and welfare.
7 (m) In order to provide for the expeditious and timely
8implementation of the provisions of the State's fiscal year
92008 budget, the Department of Healthcare and Family Services
10may adopt emergency rules during fiscal year 2008, including
11rules effective July 1, 2008, in accordance with this
12subsection to the extent necessary to administer the
13Department's responsibilities with respect to amendments to
14the State plans and Illinois waivers approved by the federal
15Centers for Medicare and Medicaid Services necessitated by the
16requirements of Title XIX and Title XXI of the federal Social
17Security Act. The adoption of emergency rules authorized by
18this subsection (m) shall be deemed to be necessary for the
19public interest, safety, and welfare.
20 (n) In order to provide for the expeditious and timely
21implementation of the provisions of the State's fiscal year
222010 budget, emergency rules to implement any provision of
23Public Act 96-45 or any other budget initiative authorized by
24the 96th General Assembly for fiscal year 2010 may be adopted
25in accordance with this Section by the agency charged with
26administering that provision or initiative. The adoption of

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1emergency rules authorized by this subsection (n) shall be
2deemed to be necessary for the public interest, safety, and
3welfare. The rulemaking authority granted in this subsection
4(n) shall apply only to rules promulgated during Fiscal Year
52010.
6 (o) In order to provide for the expeditious and timely
7implementation of the provisions of the State's fiscal year
82011 budget, emergency rules to implement any provision of
9Public Act 96-958 or any other budget initiative authorized by
10the 96th General Assembly for fiscal year 2011 may be adopted
11in accordance with this Section by the agency charged with
12administering that provision or initiative. The adoption of
13emergency rules authorized by this subsection (o) is deemed to
14be necessary for the public interest, safety, and welfare. The
15rulemaking authority granted in this subsection (o) applies
16only to rules promulgated on or after July 1, 2010 (the
17effective date of Public Act 96-958) through June 30, 2011.
18 (p) In order to provide for the expeditious and timely
19implementation of the provisions of Public Act 97-689,
20emergency rules to implement any provision of Public Act 97-689
21may be adopted in accordance with this subsection (p) by the
22agency charged with administering that provision or
23initiative. The 150-day limitation of the effective period of
24emergency rules does not apply to rules adopted under this
25subsection (p), and the effective period may continue through
26June 30, 2013. The 24-month limitation on the adoption of

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1emergency rules does not apply to rules adopted under this
2subsection (p). The adoption of emergency rules authorized by
3this subsection (p) is deemed to be necessary for the public
4interest, safety, and welfare.
5 (q) In order to provide for the expeditious and timely
6implementation of the provisions of Articles 7, 8, 9, 11, and
712 of Public Act 98-104, emergency rules to implement any
8provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
9may be adopted in accordance with this subsection (q) by the
10agency charged with administering that provision or
11initiative. The 24-month limitation on the adoption of
12emergency rules does not apply to rules adopted under this
13subsection (q). The adoption of emergency rules authorized by
14this subsection (q) is deemed to be necessary for the public
15interest, safety, and welfare.
16 (r) In order to provide for the expeditious and timely
17implementation of the provisions of Public Act 98-651,
18emergency rules to implement Public Act 98-651 may be adopted
19in accordance with this subsection (r) by the Department of
20Healthcare and Family Services. The 24-month limitation on the
21adoption of emergency rules does not apply to rules adopted
22under this subsection (r). The adoption of emergency rules
23authorized by this subsection (r) is deemed to be necessary for
24the public interest, safety, and welfare.
25 (s) In order to provide for the expeditious and timely
26implementation of the provisions of Sections 5-5b.1 and 5A-2 of

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1the Illinois Public Aid Code, emergency rules to implement any
2provision of Section 5-5b.1 or Section 5A-2 of the Illinois
3Public Aid Code may be adopted in accordance with this
4subsection (s) by the Department of Healthcare and Family
5Services. The rulemaking authority granted in this subsection
6(s) shall apply only to those rules adopted prior to July 1,
72015. Notwithstanding any other provision of this Section, any
8emergency rule adopted under this subsection (s) shall only
9apply to payments made for State fiscal year 2015. The adoption
10of emergency rules authorized by this subsection (s) is deemed
11to be necessary for the public interest, safety, and welfare.
12 (t) In order to provide for the expeditious and timely
13implementation of the provisions of Article II of Public Act
1499-6, emergency rules to implement the changes made by Article
15II of Public Act 99-6 to the Emergency Telephone System Act may
16be adopted in accordance with this subsection (t) by the
17Department of State Police. The rulemaking authority granted in
18this subsection (t) shall apply only to those rules adopted
19prior to July 1, 2016. The 24-month limitation on the adoption
20of emergency rules does not apply to rules adopted under this
21subsection (t). The adoption of emergency rules authorized by
22this subsection (t) is deemed to be necessary for the public
23interest, safety, and welfare.
24 (u) In order to provide for the expeditious and timely
25implementation of the provisions of the Burn Victims Relief
26Act, emergency rules to implement any provision of the Act may

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1be adopted in accordance with this subsection (u) by the
2Department of Insurance. The rulemaking authority granted in
3this subsection (u) shall apply only to those rules adopted
4prior to December 31, 2015. The adoption of emergency rules
5authorized by this subsection (u) is deemed to be necessary for
6the public interest, safety, and welfare.
7 (v) In order to provide for the expeditious and timely
8implementation of the provisions of Public Act 99-516,
9emergency rules to implement Public Act 99-516 may be adopted
10in accordance with this subsection (v) by the Department of
11Healthcare and Family Services. The 24-month limitation on the
12adoption of emergency rules does not apply to rules adopted
13under this subsection (v). The adoption of emergency rules
14authorized by this subsection (v) is deemed to be necessary for
15the public interest, safety, and welfare.
16 (w) In order to provide for the expeditious and timely
17implementation of the provisions of Public Act 99-796,
18emergency rules to implement the changes made by Public Act
1999-796 may be adopted in accordance with this subsection (w) by
20the Adjutant General. The adoption of emergency rules
21authorized by this subsection (w) is deemed to be necessary for
22the public interest, safety, and welfare.
23 (x) In order to provide for the expeditious and timely
24implementation of the provisions of Public Act 99-906,
25emergency rules to implement subsection (i) of Section 16-115D,
26subsection (g) of Section 16-128A, and subsection (a) of

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1Section 16-128B of the Public Utilities Act may be adopted in
2accordance with this subsection (x) by the Illinois Commerce
3Commission. The rulemaking authority granted in this
4subsection (x) shall apply only to those rules adopted within
5180 days after June 1, 2017 (the effective date of Public Act
699-906). The adoption of emergency rules authorized by this
7subsection (x) is deemed to be necessary for the public
8interest, safety, and welfare.
9 (y) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 100-23,
11emergency rules to implement the changes made by Public Act
12100-23 to Section 4.02 of the Illinois Act on the Aging,
13Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
14Section 55-30 of the Alcoholism and Other Drug Abuse and
15Dependency Act, and Sections 74 and 75 of the Mental Health and
16Developmental Disabilities Administrative Act may be adopted
17in accordance with this subsection (y) by the respective
18Department. The adoption of emergency rules authorized by this
19subsection (y) is deemed to be necessary for the public
20interest, safety, and welfare.
21 (z) In order to provide for the expeditious and timely
22implementation of the provisions of Public Act 100-554,
23emergency rules to implement the changes made by Public Act
24100-554 to Section 4.7 of the Lobbyist Registration Act may be
25adopted in accordance with this subsection (z) by the Secretary
26of State. The adoption of emergency rules authorized by this

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1subsection (z) is deemed to be necessary for the public
2interest, safety, and welfare.
3 (aa) In order to provide for the expeditious and timely
4initial implementation of the changes made to Articles 5, 5A,
512, and 14 of the Illinois Public Aid Code under the provisions
6of Public Act 100-581, the Department of Healthcare and Family
7Services may adopt emergency rules in accordance with this
8subsection (aa). The 24-month limitation on the adoption of
9emergency rules does not apply to rules to initially implement
10the changes made to Articles 5, 5A, 12, and 14 of the Illinois
11Public Aid Code adopted under this subsection (aa). The
12adoption of emergency rules authorized by this subsection (aa)
13is deemed to be necessary for the public interest, safety, and
14welfare.
15 (bb) In order to provide for the expeditious and timely
16implementation of the provisions of Public Act 100-587,
17emergency rules to implement the changes made by Public Act
18100-587 to Section 4.02 of the Illinois Act on the Aging,
19Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
20subsection (b) of Section 55-30 of the Alcoholism and Other
21Drug Abuse and Dependency Act, Section 5-104 of the Specialized
22Mental Health Rehabilitation Act of 2013, and Section 75 and
23subsection (b) of Section 74 of the Mental Health and
24Developmental Disabilities Administrative Act may be adopted
25in accordance with this subsection (bb) by the respective
26Department. The adoption of emergency rules authorized by this

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1subsection (bb) is deemed to be necessary for the public
2interest, safety, and welfare.
3 (cc) In order to provide for the expeditious and timely
4implementation of the provisions of Public Act 100-587,
5emergency rules may be adopted in accordance with this
6subsection (cc) to implement the changes made by Public Act
7100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
8Pension Code by the Board created under Article 14 of the Code;
9Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
10the Board created under Article 15 of the Code; and Sections
1116-190.5 and 16-190.6 of the Illinois Pension Code by the Board
12created under Article 16 of the Code. The adoption of emergency
13rules authorized by this subsection (cc) is deemed to be
14necessary for the public interest, safety, and welfare.
15 (dd) In order to provide for the expeditious and timely
16implementation of the provisions of Public Act 100-864,
17emergency rules to implement the changes made by Public Act
18100-864 to Section 3.35 of the Newborn Metabolic Screening Act
19may be adopted in accordance with this subsection (dd) by the
20Secretary of State. The adoption of emergency rules authorized
21by this subsection (dd) is deemed to be necessary for the
22public interest, safety, and welfare.
23 (ee) In order to provide for the expeditious and timely
24implementation of the provisions of Public Act 100-1172 this
25amendatory Act of the 100th General Assembly, emergency rules
26implementing the Illinois Underground Natural Gas Storage

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1Safety Act may be adopted in accordance with this subsection by
2the Department of Natural Resources. The adoption of emergency
3rules authorized by this subsection is deemed to be necessary
4for the public interest, safety, and welfare.
5 (ff) (ee) In order to provide for the expeditious and
6timely initial implementation of the changes made to Articles
75A and 14 of the Illinois Public Aid Code under the provisions
8of Public Act 100-1181 this amendatory Act of the 100th General
9Assembly, the Department of Healthcare and Family Services may
10on a one-time-only basis adopt emergency rules in accordance
11with this subsection (ff) (ee). The 24-month limitation on the
12adoption of emergency rules does not apply to rules to
13initially implement the changes made to Articles 5A and 14 of
14the Illinois Public Aid Code adopted under this subsection (ff)
15(ee). The adoption of emergency rules authorized by this
16subsection (ff) (ee) is deemed to be necessary for the public
17interest, safety, and welfare.
18 (gg) (ff) In order to provide for the expeditious and
19timely implementation of the provisions of Public Act 101-1
20this amendatory Act of the 101st General Assembly, emergency
21rules may be adopted by the Department of Labor in accordance
22with this subsection (gg) (ff) to implement the changes made by
23Public Act 101-1 this amendatory Act of the 101st General
24Assembly to the Minimum Wage Law. The adoption of emergency
25rules authorized by this subsection (gg) (ff) is deemed to be
26necessary for the public interest, safety, and welfare.

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1 (kk) In order to provide for the expeditious and timely
2implementation of the provisions of subsection (c) of Section
320 of the Video Gaming Act, emergency rules to implement the
4provisions of subsection (c) of Section 20 of the Video Gaming
5Act may be adopted in accordance with this subsection (kk) by
6the Illinois Gaming Board. The adoption of emergency rules
7authorized by this subsection (kk) is deemed to be necessary
8for the public interest, safety, and welfare.
9(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
10100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
116-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
12100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
133-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)
14 Section 35-5. The Open Meetings Act is amended by changing
15Section 2 as follows:
16 (5 ILCS 120/2) (from Ch. 102, par. 42)
17 Sec. 2. Open meetings.
18 (a) Openness required. All meetings of public bodies shall
19be open to the public unless excepted in subsection (c) and
20closed in accordance with Section 2a.
21 (b) Construction of exceptions. The exceptions contained
22in subsection (c) are in derogation of the requirement that
23public bodies meet in the open, and therefore, the exceptions
24are to be strictly construed, extending only to subjects

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1clearly within their scope. The exceptions authorize but do not
2require the holding of a closed meeting to discuss a subject
3included within an enumerated exception.
4 (c) Exceptions. A public body may hold closed meetings to
5consider the following subjects:
6 (1) The appointment, employment, compensation,
7 discipline, performance, or dismissal of specific
8 employees of the public body or legal counsel for the
9 public body, including hearing testimony on a complaint
10 lodged against an employee of the public body or against
11 legal counsel for the public body to determine its
12 validity. However, a meeting to consider an increase in
13 compensation to a specific employee of a public body that
14 is subject to the Local Government Wage Increase
15 Transparency Act may not be closed and shall be open to the
16 public and posted and held in accordance with this Act.
17 (2) Collective negotiating matters between the public
18 body and its employees or their representatives, or
19 deliberations concerning salary schedules for one or more
20 classes of employees.
21 (3) The selection of a person to fill a public office,
22 as defined in this Act, including a vacancy in a public
23 office, when the public body is given power to appoint
24 under law or ordinance, or the discipline, performance or
25 removal of the occupant of a public office, when the public
26 body is given power to remove the occupant under law or

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1 ordinance.
2 (4) Evidence or testimony presented in open hearing, or
3 in closed hearing where specifically authorized by law, to
4 a quasi-adjudicative body, as defined in this Act, provided
5 that the body prepares and makes available for public
6 inspection a written decision setting forth its
7 determinative reasoning.
8 (5) The purchase or lease of real property for the use
9 of the public body, including meetings held for the purpose
10 of discussing whether a particular parcel should be
11 acquired.
12 (6) The setting of a price for sale or lease of
13 property owned by the public body.
14 (7) The sale or purchase of securities, investments, or
15 investment contracts. This exception shall not apply to the
16 investment of assets or income of funds deposited into the
17 Illinois Prepaid Tuition Trust Fund.
18 (8) Security procedures, school building safety and
19 security, and the use of personnel and equipment to respond
20 to an actual, a threatened, or a reasonably potential
21 danger to the safety of employees, students, staff, the
22 public, or public property.
23 (9) Student disciplinary cases.
24 (10) The placement of individual students in special
25 education programs and other matters relating to
26 individual students.

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1 (11) Litigation, when an action against, affecting or
2 on behalf of the particular public body has been filed and
3 is pending before a court or administrative tribunal, or
4 when the public body finds that an action is probable or
5 imminent, in which case the basis for the finding shall be
6 recorded and entered into the minutes of the closed
7 meeting.
8 (12) The establishment of reserves or settlement of
9 claims as provided in the Local Governmental and
10 Governmental Employees Tort Immunity Act, if otherwise the
11 disposition of a claim or potential claim might be
12 prejudiced, or the review or discussion of claims, loss or
13 risk management information, records, data, advice or
14 communications from or with respect to any insurer of the
15 public body or any intergovernmental risk management
16 association or self insurance pool of which the public body
17 is a member.
18 (13) Conciliation of complaints of discrimination in
19 the sale or rental of housing, when closed meetings are
20 authorized by the law or ordinance prescribing fair housing
21 practices and creating a commission or administrative
22 agency for their enforcement.
23 (14) Informant sources, the hiring or assignment of
24 undercover personnel or equipment, or ongoing, prior or
25 future criminal investigations, when discussed by a public
26 body with criminal investigatory responsibilities.

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1 (15) Professional ethics or performance when
2 considered by an advisory body appointed to advise a
3 licensing or regulatory agency on matters germane to the
4 advisory body's field of competence.
5 (16) Self evaluation, practices and procedures or
6 professional ethics, when meeting with a representative of
7 a statewide association of which the public body is a
8 member.
9 (17) The recruitment, credentialing, discipline or
10 formal peer review of physicians or other health care
11 professionals, or for the discussion of matters protected
12 under the federal Patient Safety and Quality Improvement
13 Act of 2005, and the regulations promulgated thereunder,
14 including 42 C.F.R. Part 3 (73 FR 70732), or the federal
15 Health Insurance Portability and Accountability Act of
16 1996, and the regulations promulgated thereunder,
17 including 45 C.F.R. Parts 160, 162, and 164, by a hospital,
18 or other institution providing medical care, that is
19 operated by the public body.
20 (18) Deliberations for decisions of the Prisoner
21 Review Board.
22 (19) Review or discussion of applications received
23 under the Experimental Organ Transplantation Procedures
24 Act.
25 (20) The classification and discussion of matters
26 classified as confidential or continued confidential by

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1 the State Government Suggestion Award Board.
2 (21) Discussion of minutes of meetings lawfully closed
3 under this Act, whether for purposes of approval by the
4 body of the minutes or semi-annual review of the minutes as
5 mandated by Section 2.06.
6 (22) Deliberations for decisions of the State
7 Emergency Medical Services Disciplinary Review Board.
8 (23) The operation by a municipality of a municipal
9 utility or the operation of a municipal power agency or
10 municipal natural gas agency when the discussion involves
11 (i) contracts relating to the purchase, sale, or delivery
12 of electricity or natural gas or (ii) the results or
13 conclusions of load forecast studies.
14 (24) Meetings of a residential health care facility
15 resident sexual assault and death review team or the
16 Executive Council under the Abuse Prevention Review Team
17 Act.
18 (25) Meetings of an independent team of experts under
19 Brian's Law.
20 (26) Meetings of a mortality review team appointed
21 under the Department of Juvenile Justice Mortality Review
22 Team Act.
23 (27) (Blank).
24 (28) Correspondence and records (i) that may not be
25 disclosed under Section 11-9 of the Illinois Public Aid
26 Code or (ii) that pertain to appeals under Section 11-8 of

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1 the Illinois Public Aid Code.
2 (29) Meetings between internal or external auditors
3 and governmental audit committees, finance committees, and
4 their equivalents, when the discussion involves internal
5 control weaknesses, identification of potential fraud risk
6 areas, known or suspected frauds, and fraud interviews
7 conducted in accordance with generally accepted auditing
8 standards of the United States of America.
9 (30) Those meetings or portions of meetings of a
10 fatality review team or the Illinois Fatality Review Team
11 Advisory Council during which a review of the death of an
12 eligible adult in which abuse or neglect is suspected,
13 alleged, or substantiated is conducted pursuant to Section
14 15 of the Adult Protective Services Act.
15 (31) Meetings and deliberations for decisions of the
16 Concealed Carry Licensing Review Board under the Firearm
17 Concealed Carry Act.
18 (32) Meetings between the Regional Transportation
19 Authority Board and its Service Boards when the discussion
20 involves review by the Regional Transportation Authority
21 Board of employment contracts under Section 28d of the
22 Metropolitan Transit Authority Act and Sections 3A.18 and
23 3B.26 of the Regional Transportation Authority Act.
24 (33) Those meetings or portions of meetings of the
25 advisory committee and peer review subcommittee created
26 under Section 320 of the Illinois Controlled Substances Act

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1 during which specific controlled substance prescriber,
2 dispenser, or patient information is discussed.
3 (34) Meetings of the Tax Increment Financing Reform
4 Task Force under Section 2505-800 of the Department of
5 Revenue Law of the Civil Administrative Code of Illinois.
6 (35) Meetings of the group established to discuss
7 Medicaid capitation rates under Section 5-30.8 of the
8 Illinois Public Aid Code.
9 (36) Those deliberations or portions of deliberations
10 for decisions of the Illinois Gaming Board in which there
11 is discussed any of the following: (i) personal,
12 commercial, financial, or other information obtained from
13 any source that is privileged, proprietary, confidential,
14 or a trade secret; or (ii) information specifically
15 exempted from the disclosure by federal or State law.
16 (d) Definitions. For purposes of this Section:
17 "Employee" means a person employed by a public body whose
18relationship with the public body constitutes an
19employer-employee relationship under the usual common law
20rules, and who is not an independent contractor.
21 "Public office" means a position created by or under the
22Constitution or laws of this State, the occupant of which is
23charged with the exercise of some portion of the sovereign
24power of this State. The term "public office" shall include
25members of the public body, but it shall not include
26organizational positions filled by members thereof, whether

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1established by law or by a public body itself, that exist to
2assist the body in the conduct of its business.
3 "Quasi-adjudicative body" means an administrative body
4charged by law or ordinance with the responsibility to conduct
5hearings, receive evidence or testimony and make
6determinations based thereon, but does not include local
7electoral boards when such bodies are considering petition
8challenges.
9 (e) Final action. No final action may be taken at a closed
10meeting. Final action shall be preceded by a public recital of
11the nature of the matter being considered and other information
12that will inform the public of the business being conducted.
13(Source: P.A. 99-78, eff. 7-20-15; 99-235, eff. 1-1-16; 99-480,
14eff. 9-9-15; 99-642, eff. 7-28-16; 99-646, eff. 7-28-16;
1599-687, eff. 1-1-17; 100-201, eff. 8-18-17; 100-465, eff.
168-31-17; 100-646, eff. 7-27-18.)
17 Section 35-10. The State Officials and Employees Ethics Act
18is amended by changing Section 5-45 as follows:
19 (5 ILCS 430/5-45)
20 Sec. 5-45. Procurement; revolving door prohibition.
21 (a) No former officer, member, or State employee, or spouse
22or immediate family member living with such person, shall,
23within a period of one year immediately after termination of
24State employment, knowingly accept employment or receive

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1compensation or fees for services from a person or entity if
2the officer, member, or State employee, during the year
3immediately preceding termination of State employment,
4participated personally and substantially in the award of State
5contracts, or the issuance of State contract change orders,
6with a cumulative value of $25,000 or more to the person or
7entity, or its parent or subsidiary.
8 (a-5) No officer, member, or spouse or immediate family
9member living with such person or State employee who works for
10the Illinois Gaming Board or the Illinois Racing Board shall,
11during State employment or within a period of 2 years
12immediately after leaving office or of termination of State
13employment, hold an ownership interest in any gaming license
14under the Illinois Gambling Act, the Video Gaming Act, the
15Illinois Horse Racing Act of 1975, or the Sports Wagering Act.
16Any member of the General Assembly who has an ownership
17interest in any gaming license under the Illinois Gambling Act,
18the Video Gaming Act, the Illinois Horse Racing Act of 1975, or
19the Sports Wagering Act must divest themselves within one year
20after the effective date of this amendatory Act of the 101st
21General Assembly.
22 (b) No former officer of the executive branch or State
23employee of the executive branch with regulatory or licensing
24authority, or spouse or immediate family member living with
25such person, shall, within a period of one year immediately
26after termination of State employment, knowingly accept

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

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

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

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

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

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1 Section 35-15. The Alcoholism and Other Drug Abuse and
2Dependency Act is amended by changing Section 5-20 as follows:
3 (20 ILCS 301/5-20)
4 Sec. 5-20. Gambling disorders.
5 (a) Subject to appropriation, the Department shall
6establish a program for public education, research, and
7training regarding gambling disorders and the treatment and
8prevention of gambling disorders. Subject to specific
9appropriation for these stated purposes, the program must
10include all of the following:
11 (1) Establishment and maintenance of a toll-free "800"
12 telephone number to provide crisis counseling and referral
13 services to families experiencing difficulty as a result of
14 gambling disorders.
15 (2) Promotion of public awareness regarding the
16 recognition and prevention of gambling disorders.
17 (3) Facilitation, through in-service training and
18 other means, of the availability of effective assistance
19 programs for gambling disorders.
20 (4) Conducting studies to identify adults and
21 juveniles in this State who have, or who are at risk of
22 developing, gambling disorders.
23 (b) Subject to appropriation, the Department shall either
24establish and maintain the program or contract with a private
25or public entity for the establishment and maintenance of the

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1program. Subject to appropriation, either the Department or the
2private or public entity shall implement the toll-free
3telephone number, promote public awareness, and conduct
4in-service training concerning gambling disorders.
5 (c) Subject to appropriation, the Department shall produce
6and supply the signs specified in Section 10.7 of the Illinois
7Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
81975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
9of the Charitable Games Act, and Section 13.1 of the Illinois
10Riverboat Gambling Act.
11(Source: P.A. 100-759, eff. 1-1-19.)
12 Section 35-20. The Illinois Lottery Law is amended by
13changing Section 9.1 as follows:
14 (20 ILCS 1605/9.1)
15 Sec. 9.1. Private manager and management agreement.
16 (a) As used in this Section:
17 "Offeror" means a person or group of persons that responds
18to a request for qualifications under this Section.
19 "Request for qualifications" means all materials and
20documents prepared by the Department to solicit the following
21from offerors:
22 (1) Statements of qualifications.
23 (2) Proposals to enter into a management agreement,
24 including the identity of any prospective vendor or vendors

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

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

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

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

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

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

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

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1 including any associated equipment or other assets used in
2 the operation of the Lottery, from the manager to any
3 successor manager of the lottery, including the
4 Department, following the termination of or foreclosure
5 upon the management agreement.
6 (21) Right of use of copyrights, trademarks, and
7 service marks held by the Department in the name of the
8 State. The agreement must provide that any use of them by
9 the manager shall only be for the purpose of fulfilling its
10 obligations under the management agreement during the term
11 of the agreement.
12 (22) The disclosure of any information requested by the
13 Department to enable it to comply with the reporting
14 requirements and information requests provided for under
15 subsection (p) of this Section.
16 (e) Notwithstanding any other law to the contrary, the
17Department shall select a private manager through a competitive
18request for qualifications process consistent with Section
1920-35 of the Illinois Procurement Code, which shall take into
20account:
21 (1) the offeror's ability to market the Lottery to
22 those residents who are new, infrequent, or lapsed players
23 of the Lottery, especially those who are most likely to
24 make regular purchases on the Internet;
25 (2) the offeror's ability to address the State's
26 concern with the social effects of gambling on those who

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

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

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

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1objectives of this Section. The Governor shall also sign the
2management agreement with the private manager.
3 (i) Any action to contest the private manager selected by
4the Governor under this Section must be brought within 7
5calendar days after the publication of the notice of the
6designation of the private manager as provided in subsection
7(h) of this Section.
8 (j) The Lottery shall remain, for so long as a private
9manager manages the Lottery in accordance with provisions of
10this Act, a Lottery conducted by the State, and the State shall
11not be authorized to sell or transfer the Lottery to a third
12party.
13 (k) Any tangible personal property used exclusively in
14connection with the lottery that is owned by the Department and
15leased to the private manager shall be owned by the Department
16in the name of the State and shall be considered to be public
17property devoted to an essential public and governmental
18function.
19 (l) The Department may exercise any of its powers under
20this Section or any other law as necessary or desirable for the
21execution of the Department's powers under this Section.
22 (m) Neither this Section nor any management agreement
23entered into under this Section prohibits the General Assembly
24from authorizing forms of gambling that are not in direct
25competition with the Lottery. The forms of gambling authorized
26by this amendatory Act of the 101st General Assembly constitute

10100SB0690ham002- 261 -LRB101 04451 SMS 61506 a
1authorized forms of gambling that are not in direct competition
2with the Lottery.
3 (n) The private manager shall be subject to a complete
4investigation in the third, seventh, and tenth years of the
5agreement (if the agreement is for a 10-year term) by the
6Department in cooperation with the Auditor General to determine
7whether the private manager has complied with this Section and
8the management agreement. The private manager shall bear the
9cost of an investigation or reinvestigation of the private
10manager under this subsection.
11 (o) The powers conferred by this Section are in addition
12and supplemental to the powers conferred by any other law. If
13any other law or rule is inconsistent with this Section,
14including, but not limited to, provisions of the Illinois
15Procurement Code, then this Section controls as to any
16management agreement entered into under this Section. This
17Section and any rules adopted under this Section contain full
18and complete authority for a management agreement between the
19Department and a private manager. No law, procedure,
20proceeding, publication, notice, consent, approval, order, or
21act by the Department or any other officer, Department, agency,
22or instrumentality of the State or any political subdivision is
23required for the Department to enter into a management
24agreement under this Section. This Section contains full and
25complete authority for the Department to approve any contracts
26entered into by a private manager with a vendor providing

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

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1criteria set forth in items (1) through (4) of subsection (e)
2of this Section and may include provisions consistent with
3subsections (f), (g), (h), and (i) of this Section. The Chief
4Procurement Officer shall also implement and administer the
5adopted selection process upon the termination of a private
6management agreement. The Department, after the Chief
7Procurement Officer certifies that the procurement process has
8been followed in accordance with the rules adopted under this
9subsection (o), shall select a final offeror as the private
10manager and sign the management agreement with the private
11manager.
12 Except as provided in Sections 21.5, 21.6, 21.7, 21.8,
1321.9, and 21.10, and 21.11, 21.10 the Department shall
14distribute all proceeds of lottery tickets and shares sold in
15the following priority and manner:
16 (1) The payment of prizes and retailer bonuses.
17 (2) The payment of costs incurred in the operation and
18 administration of the Lottery, including the payment of
19 sums due to the private manager under the management
20 agreement with the Department.
21 (3) On the last day of each month or as soon thereafter
22 as possible, the State Comptroller shall direct and the
23 State Treasurer shall transfer from the State Lottery Fund
24 to the Common School Fund an amount that is equal to the
25 proceeds transferred in the corresponding month of fiscal
26 year 2009, as adjusted for inflation, to the Common School

10100SB0690ham002- 264 -LRB101 04451 SMS 61506 a
1 Fund.
2 (4) On or before September 30 of each fiscal year,
3 deposit any estimated remaining proceeds from the prior
4 fiscal year, subject to payments under items (1), (2), and
5 (3), into the Capital Projects Fund. Beginning in fiscal
6 year 2019, the amount deposited shall be increased or
7 decreased each year by the amount the estimated payment
8 differs from the amount determined from each year-end
9 financial audit. Only remaining net deficits from prior
10 fiscal years may reduce the requirement to deposit these
11 funds, as determined by the annual financial audit.
12 (p) The Department shall be subject to the following
13reporting and information request requirements:
14 (1) the Department shall submit written quarterly
15 reports to the Governor and the General Assembly on the
16 activities and actions of the private manager selected
17 under this Section;
18 (2) upon request of the Chief Procurement Officer, the
19 Department shall promptly produce information related to
20 the procurement activities of the Department and the
21 private manager requested by the Chief Procurement
22 Officer; the Chief Procurement Officer must retain
23 confidential, proprietary, or trade secret information
24 designated by the Department in complete confidence
25 pursuant to subsection (g) of Section 7 of the Freedom of
26 Information Act; and

10100SB0690ham002- 265 -LRB101 04451 SMS 61506 a
1 (3) at least 30 days prior to the beginning of the
2 Department's fiscal year, the Department shall prepare an
3 annual written report on the activities of the private
4 manager selected under this Section and deliver that report
5 to the Governor and General Assembly.
6(Source: P.A. 99-933, eff. 1-27-17; 100-391, eff. 8-25-17;
7100-587, eff. 6-4-18; 100-647, eff. 7-30-18; 100-1068, eff.
88-24-18; revised 9-20-18.)
9 Section 35-25. The Department of Revenue Law of the Civil
10Administrative Code of Illinois is amended by changing Section
112505-305 as follows:
12 (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)
13 Sec. 2505-305. Investigators.
14 (a) The Department has the power to appoint investigators
15to conduct all investigations, searches, seizures, arrests,
16and other duties imposed under the provisions of any law
17administered by the Department. Except as provided in
18subsection (c), these investigators have and may exercise all
19the powers of peace officers solely for the purpose of
20enforcing taxing measures administered by the Department.
21 (b) The Director must authorize to each investigator
22employed under this Section and to any other employee of the
23Department exercising the powers of a peace officer a distinct
24badge that, on its face, (i) clearly states that the badge is

10100SB0690ham002- 266 -LRB101 04451 SMS 61506 a
1authorized by the Department and (ii) contains a unique
2identifying number. No other badge shall be authorized by the
3Department.
4 (c) The Department may enter into agreements with the
5Illinois Gaming Board providing that investigators appointed
6under this Section shall exercise the peace officer powers set
7forth in paragraph (20.6) of subsection (c) of Section 5 of the
8Illinois Riverboat Gambling Act.
9(Source: P.A. 96-37, eff. 7-13-09.)
10 Section 35-30. The State Finance Act is amended by changing
11Section 6z-45 as follows:
12 (30 ILCS 105/6z-45)
13 Sec. 6z-45. The School Infrastructure Fund.
14 (a) The School Infrastructure Fund is created as a special
15fund in the State Treasury.
16 In addition to any other deposits authorized by law,
17beginning January 1, 2000, on the first day of each month, or
18as soon thereafter as may be practical, the State Treasurer and
19State Comptroller shall transfer the sum of $5,000,000 from the
20General Revenue Fund to the School Infrastructure Fund, except
21that, notwithstanding any other provision of law, and in
22addition to any other transfers that may be provided for by
23law, before June 30, 2012, the Comptroller and the Treasurer
24shall transfer $45,000,000 from the General Revenue Fund into

10100SB0690ham002- 267 -LRB101 04451 SMS 61506 a
1the School Infrastructure Fund, and, for fiscal year 2013 only,
2the Treasurer and the Comptroller shall transfer $1,250,000
3from the General Revenue Fund to the School Infrastructure Fund
4on the first day of each month; provided, however, that no such
5transfers shall be made from July 1, 2001 through June 30,
62003.
7 (a-5) Money in the School Infrastructure Fund may be used
8to pay the expenses of the State Board of Education, the
9Governor's Office of Management and Budget, and the Capital
10Development Board in administering programs under the School
11Construction Law, the total expenses not to exceed $1,315,000
12in any fiscal year.
13 (b) Subject to the transfer provisions set forth below,
14money in the School Infrastructure Fund shall, if and when the
15State of Illinois incurs any bonded indebtedness for the
16construction of school improvements under subsection (e) of
17Section 5 of the General Obligation Bond Act, be set aside and
18used for the purpose of paying and discharging annually the
19principal and interest on that bonded indebtedness then due and
20payable, and for no other purpose.
21 In addition to other transfers to the General Obligation
22Bond Retirement and Interest Fund made pursuant to Section 15
23of the General Obligation Bond Act, upon each delivery of bonds
24issued for construction of school improvements under the School
25Construction Law, the State Comptroller shall compute and
26certify to the State Treasurer the total amount of principal

10100SB0690ham002- 268 -LRB101 04451 SMS 61506 a
1of, interest on, and premium, if any, on such bonds during the
2then current and each succeeding fiscal year. With respect to
3the interest payable on variable rate bonds, such
4certifications shall be calculated at the maximum rate of
5interest that may be payable during the fiscal year, after
6taking into account any credits permitted in the related
7indenture or other instrument against the amount of such
8interest required to be appropriated for that period.
9 On or before the last day of each month, the State
10Treasurer and State Comptroller shall transfer from the School
11Infrastructure Fund to the General Obligation Bond Retirement
12and Interest Fund an amount sufficient to pay the aggregate of
13the principal of, interest on, and premium, if any, on the
14bonds payable on their next payment date, divided by the number
15of monthly transfers occurring between the last previous
16payment date (or the delivery date if no payment date has yet
17occurred) and the next succeeding payment date. Interest
18payable on variable rate bonds shall be calculated at the
19maximum rate of interest that may be payable for the relevant
20period, after taking into account any credits permitted in the
21related indenture or other instrument against the amount of
22such interest required to be appropriated for that period.
23Interest for which moneys have already been deposited into the
24capitalized interest account within the General Obligation
25Bond Retirement and Interest Fund shall not be included in the
26calculation of the amounts to be transferred under this

10100SB0690ham002- 269 -LRB101 04451 SMS 61506 a
1subsection.
2 (b-5) The money deposited into the School Infrastructure
3Fund from transfers pursuant to subsections (c-30) and (c-35)
4of Section 13 of the Illinois Riverboat Gambling Act shall be
5applied, without further direction, as provided in subsection
6(b-3) of Section 5-35 of the School Construction Law.
7 (c) The surplus, if any, in the School Infrastructure Fund
8after payments made pursuant to subsections (a-5), (b), and
9(b-5) of this Section shall, subject to appropriation, be used
10as follows:
11 First - to make 3 payments to the School Technology
12Revolving Loan Fund as follows:
13 Transfer of $30,000,000 in fiscal year 1999;
14 Transfer of $20,000,000 in fiscal year 2000; and
15 Transfer of $10,000,000 in fiscal year 2001.
16 Second - to pay any amounts due for grants for school
17construction projects and debt service under the School
18Construction Law.
19 Third - to pay any amounts due for grants for school
20maintenance projects under the School Construction Law.
21(Source: P.A. 100-23, eff. 7-6-17.)
22 Section 35-35. The Illinois Income Tax Act is amended by
23changing Sections 201, 303, 304, and 710 as follows:
24 (35 ILCS 5/201) (from Ch. 120, par. 2-201)

10100SB0690ham002- 270 -LRB101 04451 SMS 61506 a
1 Sec. 201. Tax imposed.
2 (a) In general. A tax measured by net income is hereby
3imposed on every individual, corporation, trust and estate for
4each taxable year ending after July 31, 1969 on the privilege
5of earning or receiving income in or as a resident of this
6State. Such tax shall be in addition to all other occupation or
7privilege taxes imposed by this State or by any municipal
8corporation or political subdivision thereof.
9 (b) Rates. The tax imposed by subsection (a) of this
10Section shall be determined as follows, except as adjusted by
11subsection (d-1):
12 (1) In the case of an individual, trust or estate, for
13 taxable years ending prior to July 1, 1989, an amount equal
14 to 2 1/2% of the taxpayer's net income for the taxable
15 year.
16 (2) In the case of an individual, trust or estate, for
17 taxable years beginning prior to July 1, 1989 and ending
18 after June 30, 1989, an amount equal to the sum of (i) 2
19 1/2% of the taxpayer's net income for the period prior to
20 July 1, 1989, as calculated under Section 202.3, and (ii)
21 3% of the taxpayer's net income for the period after June
22 30, 1989, as calculated under Section 202.3.
23 (3) In the case of an individual, trust or estate, for
24 taxable years beginning after June 30, 1989, and ending
25 prior to January 1, 2011, an amount equal to 3% of the
26 taxpayer's net income for the taxable year.

10100SB0690ham002- 271 -LRB101 04451 SMS 61506 a
1 (4) In the case of an individual, trust, or estate, for
2 taxable years beginning prior to January 1, 2011, and
3 ending after December 31, 2010, an amount equal to the sum
4 of (i) 3% of the taxpayer's net income for the period prior
5 to January 1, 2011, as calculated under Section 202.5, and
6 (ii) 5% of the taxpayer's net income for the period after
7 December 31, 2010, as calculated under Section 202.5.
8 (5) In the case of an individual, trust, or estate, for
9 taxable years beginning on or after January 1, 2011, and
10 ending prior to January 1, 2015, an amount equal to 5% of
11 the taxpayer's net income for the taxable year.
12 (5.1) In the case of an individual, trust, or estate,
13 for taxable years beginning prior to January 1, 2015, and
14 ending after December 31, 2014, an amount equal to the sum
15 of (i) 5% of the taxpayer's net income for the period prior
16 to January 1, 2015, as calculated under Section 202.5, and
17 (ii) 3.75% of the taxpayer's net income for the period
18 after December 31, 2014, as calculated under Section 202.5.
19 (5.2) In the case of an individual, trust, or estate,
20 for taxable years beginning on or after January 1, 2015,
21 and ending prior to July 1, 2017, an amount equal to 3.75%
22 of the taxpayer's net income for the taxable year.
23 (5.3) In the case of an individual, trust, or estate,
24 for taxable years beginning prior to July 1, 2017, and
25 ending after June 30, 2017, an amount equal to the sum of
26 (i) 3.75% of the taxpayer's net income for the period prior

10100SB0690ham002- 272 -LRB101 04451 SMS 61506 a
1 to July 1, 2017, as calculated under Section 202.5, and
2 (ii) 4.95% of the taxpayer's net income for the period
3 after June 30, 2017, as calculated under Section 202.5.
4 (5.4) In the case of an individual, trust, or estate,
5 for taxable years beginning on or after July 1, 2017, an
6 amount equal to 4.95% 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

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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 July 1, 2017, 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 July 1, 2017, and ending after June 30,
20 2017, an amount equal to the sum of (i) 5.25% of the
21 taxpayer's net income for the period prior to July 1, 2017,
22 as calculated under Section 202.5, and (ii) 7% of the
23 taxpayer's net income for the period after June 30, 2017,
24 as calculated under Section 202.5.
25 (14) In the case of a corporation, for taxable years
26 beginning on or after July 1, 2017, an amount equal to 7%

10100SB0690ham002- 274 -LRB101 04451 SMS 61506 a
1 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 organization gaming licensees. For each of
6taxable years 2019 through 2027, 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 organization 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 organization gaming license, organization
17 license, or racetrack 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 organization
14 gaming license, organization license, or racetrack
15 property is transferred in a transaction to lineal
16 descendants in which no gain or loss is recognized or as a
17 result of a transaction in accordance with Section 351 of
18 the Internal Revenue Code in which no gain or loss is
19 recognized; or
20 (3) live horse racing was not conducted in 2010 at a
21 racetrack located within 3 miles of the Mississippi River
22 under a license issued pursuant to the Illinois Horse
23 Racing Act of 1975.
24 The transfer of an organization gaming license,
25organization license, or racetrack property by a person other
26than the initial licensee to receive the organization gaming

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1license is not subject to a surcharge. The Department shall
2adopt rules necessary to implement and administer this
3subsection.
4 (c) Personal Property Tax Replacement Income Tax.
5Beginning on July 1, 1979 and thereafter, in addition to such
6income tax, there is also hereby imposed the Personal Property
7Tax Replacement Income Tax measured by net income on every
8corporation (including Subchapter S corporations), partnership
9and trust, for each taxable year ending after June 30, 1979.
10Such taxes are imposed on the privilege of earning or receiving
11income in or as a resident of this State. The Personal Property
12Tax Replacement Income Tax shall be in addition to the income
13tax imposed by subsections (a) and (b) of this Section and in
14addition to all other occupation or privilege taxes imposed by
15this State or by any municipal corporation or political
16subdivision thereof.
17 (d) Additional Personal Property Tax Replacement Income
18Tax Rates. The personal property tax replacement income tax
19imposed by this subsection and subsection (c) of this Section
20in the case of a corporation, other than a Subchapter S
21corporation and except as adjusted by subsection (d-1), shall
22be an additional amount equal to 2.85% of such taxpayer's net
23income for the taxable year, except that beginning on January
241, 1981, and thereafter, the rate of 2.85% specified in this
25subsection shall be reduced to 2.5%, and in the case of a
26partnership, trust or a Subchapter S corporation shall be an

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1additional amount equal to 1.5% of such taxpayer's net income
2for the taxable year.
3 (d-1) Rate reduction for certain foreign insurers. In the
4case of a foreign insurer, as defined by Section 35A-5 of the
5Illinois Insurance Code, whose state or country of domicile
6imposes on insurers domiciled in Illinois a retaliatory tax
7(excluding any insurer whose premiums from reinsurance assumed
8are 50% or more of its total insurance premiums as determined
9under paragraph (2) of subsection (b) of Section 304, except
10that for purposes of this determination premiums from
11reinsurance do not include premiums from inter-affiliate
12reinsurance arrangements), beginning with taxable years ending
13on or after December 31, 1999, the sum of the rates of tax
14imposed by subsections (b) and (d) shall be reduced (but not
15increased) to the rate at which the total amount of tax imposed
16under this Act, net of all credits allowed under this Act,
17shall equal (i) the total amount of tax that would be imposed
18on the foreign insurer's net income allocable to Illinois for
19the taxable year by such foreign insurer's state or country of
20domicile if that net income were subject to all income taxes
21and taxes measured by net income imposed by such foreign
22insurer's state or country of domicile, net of all credits
23allowed or (ii) a rate of zero if no such tax is imposed on such
24income by the foreign insurer's state of domicile. For the
25purposes of this subsection (d-1), an inter-affiliate includes
26a mutual insurer under common management.

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

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1Section 250.
2 (e) Investment credit. A taxpayer shall be allowed a credit
3against the Personal Property Tax Replacement Income Tax for
4investment in qualified property.
5 (1) A taxpayer shall be allowed a credit equal to .5%
6 of the basis of qualified property placed in service during
7 the taxable year, provided such property is placed in
8 service on or after July 1, 1984. There shall be allowed an
9 additional credit equal to .5% of the basis of qualified
10 property placed in service during the taxable year,
11 provided such property is placed in service on or after
12 July 1, 1986, and the taxpayer's base employment within
13 Illinois has increased by 1% or more over the preceding
14 year as determined by the taxpayer's employment records
15 filed with the Illinois Department of Employment Security.
16 Taxpayers who are new to Illinois shall be deemed to have
17 met the 1% growth in base employment for the first year in
18 which they file employment records with the Illinois
19 Department of Employment Security. The provisions added to
20 this Section by Public Act 85-1200 (and restored by Public
21 Act 87-895) shall be construed as declaratory of existing
22 law and not as a new enactment. If, in any year, the
23 increase in base employment within Illinois over the
24 preceding year is less than 1%, the additional credit shall
25 be limited to that percentage times a fraction, the
26 numerator of which is .5% and the denominator of which is

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1 1%, but shall not exceed .5%. The investment credit shall
2 not be allowed to the extent that it would reduce a
3 taxpayer's liability in any tax year below zero, nor may
4 any credit for qualified property be allowed for any year
5 other than the year in which the property was placed in
6 service in Illinois. For tax years ending on or after
7 December 31, 1987, and on or before December 31, 1988, the
8 credit shall be allowed for the tax year in which the
9 property is placed in service, or, if the amount of the
10 credit exceeds the tax liability for that year, whether it
11 exceeds the original liability or the liability as later
12 amended, such excess may be carried forward and applied to
13 the tax liability of the 5 taxable years following the
14 excess credit years if the taxpayer (i) makes investments
15 which cause the creation of a minimum of 2,000 full-time
16 equivalent jobs in Illinois, (ii) is located in an
17 enterprise zone established pursuant to the Illinois
18 Enterprise Zone Act and (iii) is certified by the
19 Department of Commerce and Community Affairs (now
20 Department of Commerce and Economic Opportunity) as
21 complying with the requirements specified in clause (i) and
22 (ii) by July 1, 1986. The Department of Commerce and
23 Community Affairs (now Department of Commerce and Economic
24 Opportunity) shall notify the Department of Revenue of all
25 such certifications immediately. For tax years ending
26 after December 31, 1988, the credit shall be allowed for

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

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

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1 taxable years ending after December 31, 2008, does not
2 include the generation, transmission, or distribution of
3 electricity.
4 (4) The basis of qualified property shall be the basis
5 used to compute the depreciation deduction for federal
6 income tax purposes.
7 (5) If the basis of the property for federal income tax
8 depreciation purposes is increased after it has been placed
9 in service in Illinois by the taxpayer, the amount of such
10 increase shall be deemed property placed in service on the
11 date of such increase in basis.
12 (6) The term "placed in service" shall have the same
13 meaning as under Section 46 of the Internal Revenue Code.
14 (7) If during any taxable year, any property ceases to
15 be qualified property in the hands of the taxpayer within
16 48 months after being placed in service, or the situs of
17 any qualified property is moved outside Illinois within 48
18 months after being placed in service, the Personal Property
19 Tax Replacement Income Tax for such taxable year shall be
20 increased. Such increase shall be determined by (i)
21 recomputing the investment credit which would have been
22 allowed for the year in which credit for such property was
23 originally allowed by eliminating such property from such
24 computation and, (ii) subtracting such recomputed credit
25 from the amount of credit previously allowed. For the
26 purposes of this paragraph (7), a reduction of the basis of

10100SB0690ham002- 284 -LRB101 04451 SMS 61506 a
1 qualified property resulting from a redetermination of the
2 purchase price shall be deemed a disposition of qualified
3 property to the extent of such reduction.
4 (8) Unless the investment credit is extended by law,
5 the basis of qualified property shall not include costs
6 incurred after December 31, 2018, except for costs incurred
7 pursuant to a binding contract entered into on or before
8 December 31, 2018.
9 (9) Each taxable year ending before December 31, 2000,
10 a partnership may elect to pass through to its partners the
11 credits to which the partnership is entitled under this
12 subsection (e) for the taxable year. A partner may use the
13 credit allocated to him or her under this paragraph only
14 against the tax imposed in subsections (c) and (d) of this
15 Section. If the partnership makes that election, those
16 credits shall be allocated among the partners in the
17 partnership in accordance with the rules set forth in
18 Section 704(b) of the Internal Revenue Code, and the rules
19 promulgated under that Section, and the allocated amount of
20 the credits shall be allowed to the partners for that
21 taxable year. The partnership shall make this election on
22 its Personal Property Tax Replacement Income Tax return for
23 that taxable year. The election to pass through the credits
24 shall be irrevocable.
25 For taxable years ending on or after December 31, 2000,
26 a partner that qualifies its partnership for a subtraction

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

10100SB0690ham002- 286 -LRB101 04451 SMS 61506 a
1 determined in accordance with the determination of income
2 and distributive share of income under Sections 702 and 704
3 and Subchapter S of the Internal Revenue Code. The credit
4 shall be .5% of the basis for such property. The credit
5 shall be available only in the taxable year in which the
6 property is placed in service in the Enterprise Zone or
7 River Edge Redevelopment Zone and shall not be allowed to
8 the extent that it would reduce a taxpayer's liability for
9 the tax imposed by subsections (a) and (b) of this Section
10 to below zero. For tax years ending on or after December
11 31, 1985, the credit shall be allowed for the tax year in
12 which the property is placed in service, or, if the amount
13 of the credit exceeds the tax liability for that year,
14 whether it exceeds the original liability or the liability
15 as later amended, such excess may be carried forward and
16 applied to the tax liability of the 5 taxable years
17 following the excess credit year. The credit shall be
18 applied to the earliest year for which there is a
19 liability. If there is credit from more than one tax year
20 that is available to offset a liability, the credit
21 accruing first in time shall be applied first.
22 (2) The term qualified property means property which:
23 (A) is tangible, whether new or used, including
24 buildings and structural components of buildings;
25 (B) is depreciable pursuant to Section 167 of the
26 Internal Revenue Code, except that "3-year property"

10100SB0690ham002- 287 -LRB101 04451 SMS 61506 a
1 as defined in Section 168(c)(2)(A) of that Code is not
2 eligible for the credit provided by this subsection
3 (f);
4 (C) is acquired by purchase as defined in Section
5 179(d) of the Internal Revenue Code;
6 (D) is used in the Enterprise Zone or River Edge
7 Redevelopment Zone by the taxpayer; and
8 (E) has not been previously used in Illinois in
9 such a manner and by such a person as would qualify for
10 the credit provided by this subsection (f) or
11 subsection (e).
12 (3) The basis of qualified property shall be the basis
13 used to compute the depreciation deduction for federal
14 income tax purposes.
15 (4) If the basis of the property for federal income tax
16 depreciation purposes is increased after it has been placed
17 in service in the Enterprise Zone or River Edge
18 Redevelopment Zone by the taxpayer, the amount of such
19 increase shall be deemed property placed in service on the
20 date of such increase in basis.
21 (5) The term "placed in service" shall have the same
22 meaning as under Section 46 of the Internal Revenue Code.
23 (6) If during any taxable year, any property ceases to
24 be qualified property in the hands of the taxpayer within
25 48 months after being placed in service, or the situs of
26 any qualified property is moved outside the Enterprise Zone

10100SB0690ham002- 288 -LRB101 04451 SMS 61506 a
1 or River Edge Redevelopment Zone within 48 months after
2 being placed in service, the tax imposed under subsections
3 (a) and (b) of this Section for such taxable year shall be
4 increased. Such increase shall be determined by (i)
5 recomputing the investment credit which would have been
6 allowed for the year in which credit for such property was
7 originally allowed by eliminating such property from such
8 computation, and (ii) subtracting such recomputed credit
9 from the amount of credit previously allowed. For the
10 purposes of this paragraph (6), a reduction of the basis of
11 qualified property resulting from a redetermination of the
12 purchase price shall be deemed a disposition of qualified
13 property to the extent of such reduction.
14 (7) There shall be allowed an additional credit equal
15 to 0.5% of the basis of qualified property placed in
16 service during the taxable year in a River Edge
17 Redevelopment Zone, provided such property is placed in
18 service on or after July 1, 2006, and the taxpayer's base
19 employment within Illinois has increased by 1% or more over
20 the preceding year as determined by the taxpayer's
21 employment records filed with the Illinois Department of
22 Employment Security. Taxpayers who are new to Illinois
23 shall be deemed to have met the 1% growth in base
24 employment for the first year in which they file employment
25 records with the Illinois Department of Employment
26 Security. If, in any year, the increase in base employment

10100SB0690ham002- 289 -LRB101 04451 SMS 61506 a
1 within Illinois over the preceding year is less than 1%,
2 the additional credit shall be limited to that percentage
3 times a fraction, the numerator of which is 0.5% and the
4 denominator of which is 1%, but shall not exceed 0.5%.
5 (g) (Blank).
6 (h) Investment credit; High Impact Business.
7 (1) Subject to subsections (b) and (b-5) of Section 5.5
8 of the Illinois Enterprise Zone Act, a taxpayer shall be
9 allowed a credit against the tax imposed by subsections (a)
10 and (b) of this Section for investment in qualified
11 property which is placed in service by a Department of
12 Commerce and Economic Opportunity designated High Impact
13 Business. The credit shall be .5% of the basis for such
14 property. The credit shall not be available (i) until the
15 minimum investments in qualified property set forth in
16 subdivision (a)(3)(A) of Section 5.5 of the Illinois
17 Enterprise Zone Act have been satisfied or (ii) until the
18 time authorized in subsection (b-5) of the Illinois
19 Enterprise Zone Act for entities designated as High Impact
20 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
21 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
22 Act, and shall not be allowed to the extent that it would
23 reduce a taxpayer's liability for the tax imposed by
24 subsections (a) and (b) of this Section to below zero. The
25 credit applicable to such investments shall be taken in the
26 taxable year in which such investments have been completed.

10100SB0690ham002- 290 -LRB101 04451 SMS 61506 a
1 The credit for additional investments beyond the minimum
2 investment by a designated high impact business authorized
3 under subdivision (a)(3)(A) of Section 5.5 of the Illinois
4 Enterprise Zone Act shall be available only in the taxable
5 year in which the property is placed in service and shall
6 not be allowed to the extent that it would reduce a
7 taxpayer's liability for the tax imposed by subsections (a)
8 and (b) of this Section to below zero. For tax years ending
9 on or after December 31, 1987, the credit shall be allowed
10 for the tax year in which the property is placed in
11 service, or, if the amount of the credit exceeds the tax
12 liability for that year, whether it exceeds the original
13 liability or the liability as later amended, such excess
14 may be carried forward and applied to the tax liability of
15 the 5 taxable years following the excess credit year. The
16 credit shall be applied to the earliest year for which
17 there is a liability. If there is credit from more than one
18 tax year that is available to offset a liability, the
19 credit accruing first in time shall be applied first.
20 Changes made in this subdivision (h)(1) by Public Act
21 88-670 restore changes made by Public Act 85-1182 and
22 reflect existing law.
23 (2) The term qualified property means property which:
24 (A) is tangible, whether new or used, including
25 buildings and structural components of buildings;
26 (B) is depreciable pursuant to Section 167 of the

10100SB0690ham002- 291 -LRB101 04451 SMS 61506 a
1 Internal Revenue Code, except that "3-year property"
2 as defined in Section 168(c)(2)(A) of that Code is not
3 eligible for the credit provided by this subsection
4 (h);
5 (C) is acquired by purchase as defined in Section
6 179(d) of the Internal Revenue Code; and
7 (D) is not eligible for the Enterprise Zone
8 Investment Credit provided by subsection (f) of this
9 Section.
10 (3) The basis of qualified property shall be the basis
11 used to compute the depreciation deduction for federal
12 income tax purposes.
13 (4) If the basis of the property for federal income tax
14 depreciation purposes is increased after it has been placed
15 in service in a federally designated Foreign Trade Zone or
16 Sub-Zone located in Illinois by the taxpayer, the amount of
17 such increase shall be deemed property placed in service on
18 the date of such increase in basis.
19 (5) The term "placed in service" shall have the same
20 meaning as under Section 46 of the Internal Revenue Code.
21 (6) If during any taxable year ending on or before
22 December 31, 1996, any property ceases to be qualified
23 property in the hands of the taxpayer within 48 months
24 after being placed in service, or the situs of any
25 qualified property is moved outside Illinois within 48
26 months after being placed in service, the tax imposed under

10100SB0690ham002- 292 -LRB101 04451 SMS 61506 a
1 subsections (a) and (b) of this Section for such taxable
2 year shall be increased. Such increase shall be determined
3 by (i) recomputing the investment credit which would have
4 been allowed for the year in which credit for such property
5 was originally allowed by eliminating such property from
6 such computation, and (ii) subtracting such recomputed
7 credit from the amount of credit previously allowed. For
8 the purposes of this paragraph (6), a reduction of the
9 basis of qualified property resulting from a
10 redetermination of the purchase price shall be deemed a
11 disposition of qualified property to the extent of such
12 reduction.
13 (7) Beginning with tax years ending after December 31,
14 1996, if a taxpayer qualifies for the credit under this
15 subsection (h) and thereby is granted a tax abatement and
16 the taxpayer relocates its entire facility in violation of
17 the explicit terms and length of the contract under Section
18 18-183 of the Property Tax Code, the tax imposed under
19 subsections (a) and (b) of this Section shall be increased
20 for the taxable year in which the taxpayer relocated its
21 facility by an amount equal to the amount of credit
22 received by the taxpayer under this subsection (h).
23 (i) Credit for Personal Property Tax Replacement Income
24Tax. For tax years ending prior to December 31, 2003, a credit
25shall be allowed against the tax imposed by subsections (a) and
26(b) of this Section for the tax imposed by subsections (c) and

10100SB0690ham002- 293 -LRB101 04451 SMS 61506 a
1(d) of this Section. This credit shall be computed by
2multiplying the tax imposed by subsections (c) and (d) of this
3Section by a fraction, the numerator of which is base income
4allocable to Illinois and the denominator of which is Illinois
5base income, and further multiplying the product by the tax
6rate imposed by subsections (a) and (b) of this Section.
7 Any credit earned on or after December 31, 1986 under this
8subsection which is unused in the year the credit is computed
9because it exceeds the tax liability imposed by subsections (a)
10and (b) for that year (whether it exceeds the original
11liability or the liability as later amended) may be carried
12forward and applied to the tax liability imposed by subsections
13(a) and (b) of the 5 taxable years following the excess credit
14year, provided that no credit may be carried forward to any
15year ending on or after December 31, 2003. This credit shall be
16applied first to the earliest year for which there is a
17liability. If there is a credit under this subsection from more
18than one tax year that is available to offset a liability the
19earliest credit arising under this subsection shall be applied
20first.
21 If, during any taxable year ending on or after December 31,
221986, the tax imposed by subsections (c) and (d) of this
23Section for which a taxpayer has claimed a credit under this
24subsection (i) is reduced, the amount of credit for such tax
25shall also be reduced. Such reduction shall be determined by
26recomputing the credit to take into account the reduced tax

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1imposed by subsections (c) and (d). If any portion of the
2reduced amount of credit has been carried to a different
3taxable year, an amended return shall be filed for such taxable
4year to reduce the amount of credit claimed.
5 (j) Training expense credit. Beginning with tax years
6ending on or after December 31, 1986 and prior to December 31,
72003, a taxpayer shall be allowed a credit against the tax
8imposed by subsections (a) and (b) under this Section for all
9amounts paid or accrued, on behalf of all persons employed by
10the taxpayer in Illinois or Illinois residents employed outside
11of Illinois by a taxpayer, for educational or vocational
12training in semi-technical or technical fields or semi-skilled
13or skilled fields, which were deducted from gross income in the
14computation of taxable income. The credit against the tax
15imposed by subsections (a) and (b) shall be 1.6% of such
16training expenses. For partners, shareholders of subchapter S
17corporations, and owners of limited liability companies, if the
18liability company is treated as a partnership for purposes of
19federal and State income taxation, there shall be allowed a
20credit under this subsection (j) to be determined in accordance
21with the determination of income and distributive share of
22income under Sections 702 and 704 and subchapter S of the
23Internal Revenue Code.
24 Any credit allowed under this subsection which is unused in
25the year the credit is earned may be carried forward to each of
26the 5 taxable years following the year for which the credit is

10100SB0690ham002- 295 -LRB101 04451 SMS 61506 a
1first computed until it is used. This credit shall be applied
2first to the earliest year for which there is a liability. If
3there is a credit under this subsection from more than one tax
4year that is available to offset a liability the earliest
5credit arising under this subsection shall be applied first. No
6carryforward credit may be claimed in any tax year ending on or
7after December 31, 2003.
8 (k) Research and development credit. For tax years ending
9after July 1, 1990 and prior to December 31, 2003, and
10beginning again for tax years ending on or after December 31,
112004, and ending prior to January 1, 2022, a taxpayer shall be
12allowed a credit against the tax imposed by subsections (a) and
13(b) of this Section for increasing research activities in this
14State. The credit allowed against the tax imposed by
15subsections (a) and (b) shall be equal to 6 1/2% of the
16qualifying expenditures for increasing research activities in
17this State. For partners, shareholders of subchapter S
18corporations, and owners of limited liability companies, if the
19liability company is treated as a partnership for purposes of
20federal and State income taxation, there shall be allowed a
21credit under this subsection to be determined in accordance
22with the determination of income and distributive share of
23income under Sections 702 and 704 and subchapter S of the
24Internal Revenue Code.
25 For purposes of this subsection, "qualifying expenditures"
26means the qualifying expenditures as defined for the federal

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1credit for increasing research activities which would be
2allowable under Section 41 of the Internal Revenue Code and
3which are conducted in this State, "qualifying expenditures for
4increasing research activities in this State" means the excess
5of qualifying expenditures for the taxable year in which
6incurred over qualifying expenditures for the base period,
7"qualifying expenditures for the base period" means the average
8of the qualifying expenditures for each year in the base
9period, and "base period" means the 3 taxable years immediately
10preceding the taxable year for which the determination is being
11made.
12 Any credit in excess of the tax liability for the taxable
13year may be carried forward. A taxpayer may elect to have the
14unused credit shown on its final completed return carried over
15as a credit against the tax liability for the following 5
16taxable years or until it has been fully used, whichever occurs
17first; provided that no credit earned in a tax year ending
18prior to December 31, 2003 may be carried forward to any year
19ending on or after December 31, 2003.
20 If an unused credit is carried forward to a given year from
212 or more earlier years, that credit arising in the earliest
22year will be applied first against the tax liability for the
23given year. If a tax liability for the given year still
24remains, the credit from the next earliest year will then be
25applied, and so on, until all credits have been used or no tax
26liability for the given year remains. Any remaining unused

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1credit or credits then will be carried forward to the next
2following year in which a tax liability is incurred, except
3that no credit can be carried forward to a year which is more
4than 5 years after the year in which the expense for which the
5credit is given was incurred.
6 No inference shall be drawn from this amendatory Act of the
791st General Assembly in construing this Section for taxable
8years beginning before January 1, 1999.
9 It is the intent of the General Assembly that the research
10and development credit under this subsection (k) shall apply
11continuously for all tax years ending on or after December 31,
122004 and ending prior to January 1, 2022, including, but not
13limited to, the period beginning on January 1, 2016 and ending
14on the effective date of this amendatory Act of the 100th
15General Assembly. All actions taken in reliance on the
16continuation of the credit under this subsection (k) by any
17taxpayer are hereby validated.
18 (l) Environmental Remediation Tax Credit.
19 (i) For tax years ending after December 31, 1997 and on
20 or before December 31, 2001, a taxpayer shall be allowed a
21 credit against the tax imposed by subsections (a) and (b)
22 of this Section for certain amounts paid for unreimbursed
23 eligible remediation costs, as specified in this
24 subsection. For purposes of this Section, "unreimbursed
25 eligible remediation costs" means costs approved by the
26 Illinois Environmental Protection Agency ("Agency") under

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1 Section 58.14 of the Environmental Protection Act that were
2 paid in performing environmental remediation at a site for
3 which a No Further Remediation Letter was issued by the
4 Agency and recorded under Section 58.10 of the
5 Environmental Protection Act. The credit must be claimed
6 for the taxable year in which Agency approval of the
7 eligible remediation costs is granted. The credit is not
8 available to any taxpayer if the taxpayer or any related
9 party caused or contributed to, in any material respect, a
10 release of regulated substances on, in, or under the site
11 that was identified and addressed by the remedial action
12 pursuant to the Site Remediation Program of the
13 Environmental Protection Act. After the Pollution Control
14 Board rules are adopted pursuant to the Illinois
15 Administrative Procedure Act for the administration and
16 enforcement of Section 58.9 of the Environmental
17 Protection Act, determinations as to credit availability
18 for purposes of this Section shall be made consistent with
19 those rules. For purposes of this Section, "taxpayer"
20 includes a person whose tax attributes the taxpayer has
21 succeeded to under Section 381 of the Internal Revenue Code
22 and "related party" includes the persons disallowed a
23 deduction for losses by paragraphs (b), (c), and (f)(1) of
24 Section 267 of the Internal Revenue Code by virtue of being
25 a related taxpayer, as well as any of its partners. The
26 credit allowed against the tax imposed by subsections (a)

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1 and (b) shall be equal to 25% of the unreimbursed eligible
2 remediation costs in excess of $100,000 per site, except
3 that the $100,000 threshold shall not apply to any site
4 contained in an enterprise zone as determined by the
5 Department of Commerce and Community Affairs (now
6 Department of Commerce and Economic Opportunity). The
7 total credit allowed shall not exceed $40,000 per year with
8 a maximum total of $150,000 per site. For partners and
9 shareholders of subchapter S corporations, there shall be
10 allowed a credit under this subsection to be determined in
11 accordance with the determination of income and
12 distributive share of income under Sections 702 and 704 and
13 subchapter S of the Internal Revenue Code.
14 (ii) A credit allowed under this subsection that is
15 unused in the year the credit is earned may be carried
16 forward to each of the 5 taxable years following the year
17 for which the credit is first earned until it is used. The
18 term "unused credit" does not include any amounts of
19 unreimbursed eligible remediation costs in excess of the
20 maximum credit per site authorized under paragraph (i).
21 This credit shall be applied first to the earliest year for
22 which there is a liability. If there is a credit under this
23 subsection from more than one tax year that is available to
24 offset a liability, the earliest credit arising under this
25 subsection shall be applied first. A credit allowed under
26 this subsection may be sold to a buyer as part of a sale of

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1 all or part of the remediation site for which the credit
2 was granted. The purchaser of a remediation site and the
3 tax credit shall succeed to the unused credit and remaining
4 carry-forward period of the seller. To perfect the
5 transfer, the assignor shall record the transfer in the
6 chain of title for the site and provide written notice to
7 the Director of the Illinois Department of Revenue of the
8 assignor's intent to sell the remediation site and the
9 amount of the tax credit to be transferred as a portion of
10 the sale. In no event may a credit be transferred to any
11 taxpayer if the taxpayer or a related party would not be
12 eligible under the provisions of subsection (i).
13 (iii) For purposes of this Section, the term "site"
14 shall have the same meaning as under Section 58.2 of the
15 Environmental Protection Act.
16 (m) Education expense credit. Beginning with tax years
17ending after December 31, 1999, a taxpayer who is the custodian
18of one or more qualifying pupils shall be allowed a credit
19against the tax imposed by subsections (a) and (b) of this
20Section for qualified education expenses incurred on behalf of
21the qualifying pupils. The credit shall be equal to 25% of
22qualified education expenses, but in no event may the total
23credit under this subsection claimed by a family that is the
24custodian of qualifying pupils exceed (i) $500 for tax years
25ending prior to December 31, 2017, and (ii) $750 for tax years
26ending on or after December 31, 2017. In no event shall a

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1credit under this subsection reduce the taxpayer's liability
2under this Act to less than zero. Notwithstanding any other
3provision of law, for taxable years beginning on or after
4January 1, 2017, no taxpayer may claim a credit under this
5subsection (m) if the taxpayer's adjusted gross income for the
6taxable year exceeds (i) $500,000, in the case of spouses
7filing a joint federal tax return or (ii) $250,000, in the case
8of all other taxpayers. This subsection is exempt from the
9provisions of Section 250 of this Act.
10 For purposes of this subsection:
11 "Qualifying pupils" means individuals who (i) are
12residents of the State of Illinois, (ii) are under the age of
1321 at the close of the school year for which a credit is
14sought, and (iii) during the school year for which a credit is
15sought were full-time pupils enrolled in a kindergarten through
16twelfth grade education program at any school, as defined in
17this subsection.
18 "Qualified education expense" means the amount incurred on
19behalf of a qualifying pupil in excess of $250 for tuition,
20book fees, and lab fees at the school in which the pupil is
21enrolled during the regular school year.
22 "School" means any public or nonpublic elementary or
23secondary school in Illinois that is in compliance with Title
24VI of the Civil Rights Act of 1964 and attendance at which
25satisfies the requirements of Section 26-1 of the School Code,
26except that nothing shall be construed to require a child to

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1attend any particular public or nonpublic school to qualify for
2the credit under this Section.
3 "Custodian" means, with respect to qualifying pupils, an
4Illinois resident who is a parent, the parents, a legal
5guardian, or the legal guardians of the qualifying pupils.
6 (n) River Edge Redevelopment Zone site remediation tax
7credit.
8 (i) For tax years ending on or after December 31, 2006,
9 a taxpayer shall be allowed a credit against the tax
10 imposed by subsections (a) and (b) of this Section for
11 certain amounts paid for unreimbursed eligible remediation
12 costs, as specified in this subsection. For purposes of
13 this Section, "unreimbursed eligible remediation costs"
14 means costs approved by the Illinois Environmental
15 Protection Agency ("Agency") under Section 58.14a of the
16 Environmental Protection Act that were paid in performing
17 environmental remediation at a site within a River Edge
18 Redevelopment Zone for which a No Further Remediation
19 Letter was issued by the Agency and recorded under Section
20 58.10 of the Environmental Protection Act. The credit must
21 be claimed for the taxable year in which Agency approval of
22 the eligible remediation costs is granted. The credit is
23 not available to any taxpayer if the taxpayer or any
24 related party caused or contributed to, in any material
25 respect, a release of regulated substances on, in, or under
26 the site that was identified and addressed by the remedial

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

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

10100SB0690ham002- 305 -LRB101 04451 SMS 61506 a
1 (1) the medical cannabis cultivation center
2 registration, medical cannabis dispensary registration, or
3 the property of a registration is transferred as a result
4 of any of the following:
5 (A) bankruptcy, a receivership, or a debt
6 adjustment initiated by or against the initial
7 registration or the substantial owners of the initial
8 registration;
9 (B) cancellation, revocation, or termination of
10 any registration by the Illinois Department of Public
11 Health;
12 (C) a determination by the Illinois Department of
13 Public Health that transfer of the registration is in
14 the best interests of Illinois qualifying patients as
15 defined by the Compassionate Use of Medical Cannabis
16 Pilot Program Act;
17 (D) the death of an owner of the equity interest in
18 a registrant;
19 (E) the acquisition of a controlling interest in
20 the stock or substantially all of the assets of a
21 publicly traded company;
22 (F) a transfer by a parent company to a wholly
23 owned subsidiary; or
24 (G) the transfer or sale to or by one person to
25 another person where both persons were initial owners
26 of the registration when the registration was issued;

10100SB0690ham002- 306 -LRB101 04451 SMS 61506 a
1 or
2 (2) the cannabis cultivation center registration,
3 medical cannabis dispensary registration, or the
4 controlling interest in a registrant's property is
5 transferred in a transaction to lineal descendants in which
6 no gain or loss is recognized or as a result of a
7 transaction in accordance with Section 351 of the Internal
8 Revenue Code in which no gain or loss is recognized.
9(Source: P.A. 100-22, eff. 7-6-17.)
10 (35 ILCS 5/303) (from Ch. 120, par. 3-303)
11 Sec. 303. (a) In general. Any item of capital gain or loss,
12and any item of income from rents or royalties from real or
13tangible personal property, interest, dividends, and patent or
14copyright royalties, and prizes awarded under the Illinois
15Lottery Law, and, for taxable years ending on or after December
1631, 2019, wagering and gambling winnings from Illinois sources
17as set forth in subsection (e-1) of this Section, to the extent
18such item constitutes nonbusiness income, together with any
19item of deduction directly allocable thereto, shall be
20allocated by any person other than a resident as provided in
21this Section.
22 (b) Capital gains and losses.
23 (1) Real property. Capital gains and losses from sales
24 or exchanges of real property are allocable to this State
25 if the property is located in this State.

10100SB0690ham002- 307 -LRB101 04451 SMS 61506 a
1 (2) Tangible personal property. Capital gains and
2 losses from sales or exchanges of tangible personal
3 property are allocable to this State if, at the time of
4 such sale or exchange:
5 (A) The property had its situs in this State; or
6 (B) The taxpayer had its commercial domicile in
7 this State and was not taxable in the state in which
8 the property had its situs.
9 (3) Intangibles. Capital gains and losses from sales or
10 exchanges of intangible personal property are allocable to
11 this State if the taxpayer had its commercial domicile in
12 this State at the time of such sale or exchange.
13 (c) Rents and royalties.
14 (1) Real property. Rents and royalties from real
15 property are allocable to this State if the property is
16 located in this State.
17 (2) Tangible personal property. Rents and royalties
18 from tangible personal property are allocable to this
19 State:
20 (A) If and to the extent that the property is
21 utilized in this State; or
22 (B) In their entirety if, at the time such rents or
23 royalties were paid or accrued, the taxpayer had its
24 commercial domicile in this State and was not organized
25 under the laws of or taxable with respect to such rents
26 or royalties in the state in which the property was

10100SB0690ham002- 308 -LRB101 04451 SMS 61506 a
1 utilized. The extent of utilization of tangible
2 personal property in a state is determined by
3 multiplying the rents or royalties derived from such
4 property by a fraction, the numerator of which is the
5 number of days of physical location of the property in
6 the state during the rental or royalty period in the
7 taxable year and the denominator of which is the number
8 of days of physical location of the property everywhere
9 during all rental or royalty periods in the taxable
10 year. If the physical location of the property during
11 the rental or royalty period is unknown or
12 unascertainable by the taxpayer, tangible personal
13 property is utilized in the state in which the property
14 was located at the time the rental or royalty payer
15 obtained possession.
16 (d) Patent and copyright royalties.
17 (1) Allocation. Patent and copyright royalties are
18 allocable to this State:
19 (A) If and to the extent that the patent or
20 copyright is utilized by the payer in this State; or
21 (B) If and to the extent that the patent or
22 copyright is utilized by the payer in a state in which
23 the taxpayer is not taxable with respect to such
24 royalties and, at the time such royalties were paid or
25 accrued, the taxpayer had its commercial domicile in
26 this State.

10100SB0690ham002- 309 -LRB101 04451 SMS 61506 a
1 (2) Utilization.
2 (A) A patent is utilized in a state to the extent
3 that it is employed in production, fabrication,
4 manufacturing or other processing in the state or to
5 the extent that a patented product is produced in the
6 state. If the basis of receipts from patent royalties
7 does not permit allocation to states or if the
8 accounting procedures do not reflect states of
9 utilization, the patent is utilized in this State if
10 the taxpayer has its commercial domicile in this State.
11 (B) A copyright is utilized in a state to the
12 extent that printing or other publication originates
13 in the state. If the basis of receipts from copyright
14 royalties does not permit allocation to states or if
15 the accounting procedures do not reflect states of
16 utilization, the copyright is utilized in this State if
17 the taxpayer has its commercial domicile in this State.
18 (e) Illinois lottery prizes. Prizes awarded under the
19Illinois Lottery Law are allocable to this State. Payments
20received in taxable years ending on or after December 31, 2013,
21from the assignment of a prize under Section 13.1 of the
22Illinois Lottery Law are allocable to this State.
23 (e-1) Wagering and gambling winnings. Payments received in
24taxable years ending on or after December 31, 2019 of winnings
25from pari-mutuel wagering conducted at a wagering facility
26licensed under the Illinois Horse Racing Act of 1975 and from

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1gambling games conducted on a riverboat or in a casino or
2organization gaming facility licensed under the Illinois
3Gambling Act are allocable to this State.
4 (e-5) Unemployment benefits. Unemployment benefits paid by
5the Illinois Department of Employment Security are allocable to
6this State.
7 (f) Taxability in other state. For purposes of allocation
8of income pursuant to this Section, a taxpayer is taxable in
9another state if:
10 (1) In that state he is subject to a net income tax, a
11 franchise tax measured by net income, a franchise tax for
12 the privilege of doing business, or a corporate stock tax;
13 or
14 (2) That state has jurisdiction to subject the taxpayer
15 to a net income tax regardless of whether, in fact, the
16 state does or does not.
17 (g) Cross references.
18 (1) For allocation of interest and dividends by persons
19 other than residents, see Section 301(c)(2).
20 (2) For allocation of nonbusiness income by residents,
21 see Section 301(a).
22(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)
23 (35 ILCS 5/304) (from Ch. 120, par. 3-304)
24 Sec. 304. Business income of persons other than residents.
25 (a) In general. The business income of a person other than

10100SB0690ham002- 311 -LRB101 04451 SMS 61506 a
1a resident shall be allocated to this State if such person's
2business income is derived solely from this State. If a person
3other than a resident derives business income from this State
4and one or more other states, then, for tax years ending on or
5before December 30, 1998, and except as otherwise provided by
6this Section, such person's business income shall be
7apportioned to this State by multiplying the income by a
8fraction, the numerator of which is the sum of the property
9factor (if any), the payroll factor (if any) and 200% of the
10sales factor (if any), and the denominator of which is 4
11reduced by the number of factors other than the sales factor
12which have a denominator of zero and by an additional 2 if the
13sales factor has a denominator of zero. For tax years ending on
14or after December 31, 1998, and except as otherwise provided by
15this Section, persons other than residents who derive business
16income from this State and one or more other states shall
17compute their apportionment factor by weighting their
18property, payroll, and sales factors as provided in subsection
19(h) of this Section.
20 (1) Property factor.
21 (A) The property factor is a fraction, the numerator of
22 which is the average value of the person's real and
23 tangible personal property owned or rented and used in the
24 trade or business in this State during the taxable year and
25 the denominator of which is the average value of all the
26 person's real and tangible personal property owned or

10100SB0690ham002- 312 -LRB101 04451 SMS 61506 a
1 rented and used in the trade or business during the taxable
2 year.
3 (B) Property owned by the person is valued at its
4 original cost. Property rented by the person is valued at 8
5 times the net annual rental rate. Net annual rental rate is
6 the annual rental rate paid by the person less any annual
7 rental rate received by the person from sub-rentals.
8 (C) The average value of property shall be determined
9 by averaging the values at the beginning and ending of the
10 taxable year but the Director may require the averaging of
11 monthly values during the taxable year if reasonably
12 required to reflect properly the average value of the
13 person's property.
14 (2) Payroll factor.
15 (A) The payroll factor is a fraction, the numerator of
16 which is the total amount paid in this State during the
17 taxable year by the person for compensation, and the
18 denominator of which is the total compensation paid
19 everywhere during the taxable year.
20 (B) Compensation is paid in this State if:
21 (i) The individual's service is performed entirely
22 within this State;
23 (ii) The individual's service is performed both
24 within and without this State, but the service
25 performed without this State is incidental to the
26 individual's service performed within this State; or

10100SB0690ham002- 313 -LRB101 04451 SMS 61506 a
1 (iii) Some of the service is performed within this
2 State and either the base of operations, or if there is
3 no base of operations, the place from which the service
4 is directed or controlled is within this State, or the
5 base of operations or the place from which the service
6 is directed or controlled is not in any state in which
7 some part of the service is performed, but the
8 individual's residence is in this State.
9 (iv) Compensation paid to nonresident professional
10 athletes.
11 (a) General. The Illinois source income of a
12 nonresident individual who is a member of a
13 professional athletic team includes the portion of the
14 individual's total compensation for services performed
15 as a member of a professional athletic team during the
16 taxable year which the number of duty days spent within
17 this State performing services for the team in any
18 manner during the taxable year bears to the total
19 number of duty days spent both within and without this
20 State during the taxable year.
21 (b) Travel days. Travel days that do not involve
22 either a game, practice, team meeting, or other similar
23 team event are not considered duty days spent in this
24 State. However, such travel days are considered in the
25 total duty days spent both within and without this
26 State.

10100SB0690ham002- 314 -LRB101 04451 SMS 61506 a
1 (c) Definitions. For purposes of this subpart
2 (iv):
3 (1) The term "professional athletic team"
4 includes, but is not limited to, any professional
5 baseball, basketball, football, soccer, or hockey
6 team.
7 (2) The term "member of a professional
8 athletic team" includes those employees who are
9 active players, players on the disabled list, and
10 any other persons required to travel and who travel
11 with and perform services on behalf of a
12 professional athletic team on a regular basis.
13 This includes, but is not limited to, coaches,
14 managers, and trainers.
15 (3) Except as provided in items (C) and (D) of
16 this subpart (3), the term "duty days" means all
17 days during the taxable year from the beginning of
18 the professional athletic team's official
19 pre-season training period through the last game
20 in which the team competes or is scheduled to
21 compete. Duty days shall be counted for the year in
22 which they occur, including where a team's
23 official pre-season training period through the
24 last game in which the team competes or is
25 scheduled to compete, occurs during more than one
26 tax year.

10100SB0690ham002- 315 -LRB101 04451 SMS 61506 a
1 (A) Duty days shall also include days on
2 which a member of a professional athletic team
3 performs service for a team on a date that does
4 not fall within the foregoing period (e.g.,
5 participation in instructional leagues, the
6 "All Star Game", or promotional "caravans").
7 Performing a service for a professional
8 athletic team includes conducting training and
9 rehabilitation activities, when such
10 activities are conducted at team facilities.
11 (B) Also included in duty days are game
12 days, practice days, days spent at team
13 meetings, promotional caravans, preseason
14 training camps, and days served with the team
15 through all post-season games in which the team
16 competes or is scheduled to compete.
17 (C) Duty days for any person who joins a
18 team during the period from the beginning of
19 the professional athletic team's official
20 pre-season training period through the last
21 game in which the team competes, or is
22 scheduled to compete, shall begin on the day
23 that person joins the team. Conversely, duty
24 days for any person who leaves a team during
25 this period shall end on the day that person
26 leaves the team. Where a person switches teams

10100SB0690ham002- 316 -LRB101 04451 SMS 61506 a
1 during a taxable year, a separate duty-day
2 calculation shall be made for the period the
3 person was with each team.
4 (D) Days for which a member of a
5 professional athletic team is not compensated
6 and is not performing services for the team in
7 any manner, including days when such member of
8 a professional athletic team has been
9 suspended without pay and prohibited from
10 performing any services for the team, shall not
11 be treated as duty days.
12 (E) Days for which a member of a
13 professional athletic team is on the disabled
14 list and does not conduct rehabilitation
15 activities at facilities of the team, and is
16 not otherwise performing services for the team
17 in Illinois, shall not be considered duty days
18 spent in this State. All days on the disabled
19 list, however, are considered to be included in
20 total duty days spent both within and without
21 this State.
22 (4) The term "total compensation for services
23 performed as a member of a professional athletic
24 team" means the total compensation received during
25 the taxable year for services performed:
26 (A) from the beginning of the official

10100SB0690ham002- 317 -LRB101 04451 SMS 61506 a
1 pre-season training period through the last
2 game in which the team competes or is scheduled
3 to compete during that taxable year; and
4 (B) during the taxable year on a date which
5 does not fall within the foregoing period
6 (e.g., participation in instructional leagues,
7 the "All Star Game", or promotional caravans).
8 This compensation shall include, but is not
9 limited to, salaries, wages, bonuses as described
10 in this subpart, and any other type of compensation
11 paid during the taxable year to a member of a
12 professional athletic team for services performed
13 in that year. This compensation does not include
14 strike benefits, severance pay, termination pay,
15 contract or option year buy-out payments,
16 expansion or relocation payments, or any other
17 payments not related to services performed for the
18 team.
19 For purposes of this subparagraph, "bonuses"
20 included in "total compensation for services
21 performed as a member of a professional athletic
22 team" subject to the allocation described in
23 Section 302(c)(1) are: bonuses earned as a result
24 of play (i.e., performance bonuses) during the
25 season, including bonuses paid for championship,
26 playoff or "bowl" games played by a team, or for

10100SB0690ham002- 318 -LRB101 04451 SMS 61506 a
1 selection to all-star league or other honorary
2 positions; and bonuses paid for signing a
3 contract, unless the payment of the signing bonus
4 is not conditional upon the signee playing any
5 games for the team or performing any subsequent
6 services for the team or even making the team, the
7 signing bonus is payable separately from the
8 salary and any other compensation, and the signing
9 bonus is nonrefundable.
10 (3) Sales factor.
11 (A) The sales factor is a fraction, the numerator of
12 which is the total sales of the person in this State during
13 the taxable year, and the denominator of which is the total
14 sales of the person everywhere during the taxable year.
15 (B) Sales of tangible personal property are in this
16 State if:
17 (i) The property is delivered or shipped to a
18 purchaser, other than the United States government,
19 within this State regardless of the f. o. b. point or
20 other conditions of the sale; or
21 (ii) The property is shipped from an office, store,
22 warehouse, factory or other place of storage in this
23 State and either the purchaser is the United States
24 government or the person is not taxable in the state of
25 the purchaser; provided, however, that premises owned
26 or leased by a person who has independently contracted

10100SB0690ham002- 319 -LRB101 04451 SMS 61506 a
1 with the seller for the printing of newspapers,
2 periodicals or books shall not be deemed to be an
3 office, store, warehouse, factory or other place of
4 storage for purposes of this Section. Sales of tangible
5 personal property are not in this State if the seller
6 and purchaser would be members of the same unitary
7 business group but for the fact that either the seller
8 or purchaser is a person with 80% or more of total
9 business activity outside of the United States and the
10 property is purchased for resale.
11 (B-1) Patents, copyrights, trademarks, and similar
12 items of intangible personal property.
13 (i) Gross receipts from the licensing, sale, or
14 other disposition of a patent, copyright, trademark,
15 or similar item of intangible personal property, other
16 than gross receipts governed by paragraph (B-7) of this
17 item (3), are in this State to the extent the item is
18 utilized in this State during the year the gross
19 receipts are included in gross income.
20 (ii) Place of utilization.
21 (I) A patent is utilized in a state to the
22 extent that it is employed in production,
23 fabrication, manufacturing, or other processing in
24 the state or to the extent that a patented product
25 is produced in the state. If a patent is utilized
26 in more than one state, the extent to which it is

10100SB0690ham002- 320 -LRB101 04451 SMS 61506 a
1 utilized in any one state shall be a fraction equal
2 to the gross receipts of the licensee or purchaser
3 from sales or leases of items produced,
4 fabricated, manufactured, or processed within that
5 state using the patent and of patented items
6 produced within that state, divided by the total of
7 such gross receipts for all states in which the
8 patent is utilized.
9 (II) A copyright is utilized in a state to the
10 extent that printing or other publication
11 originates in the state. If a copyright is utilized
12 in more than one state, the extent to which it is
13 utilized in any one state shall be a fraction equal
14 to the gross receipts from sales or licenses of
15 materials printed or published in that state
16 divided by the total of such gross receipts for all
17 states in which the copyright is utilized.
18 (III) Trademarks and other items of intangible
19 personal property governed by this paragraph (B-1)
20 are utilized in the state in which the commercial
21 domicile of the licensee or purchaser is located.
22 (iii) If the state of utilization of an item of
23 property governed by this paragraph (B-1) cannot be
24 determined from the taxpayer's books and records or
25 from the books and records of any person related to the
26 taxpayer within the meaning of Section 267(b) of the

10100SB0690ham002- 321 -LRB101 04451 SMS 61506 a
1 Internal Revenue Code, 26 U.S.C. 267, the gross
2 receipts attributable to that item shall be excluded
3 from both the numerator and the denominator of the
4 sales factor.
5 (B-2) Gross receipts from the license, sale, or other
6 disposition of patents, copyrights, trademarks, and
7 similar items of intangible personal property, other than
8 gross receipts governed by paragraph (B-7) of this item
9 (3), may be included in the numerator or denominator of the
10 sales factor only if gross receipts from licenses, sales,
11 or other disposition of such items comprise more than 50%
12 of the taxpayer's total gross receipts included in gross
13 income during the tax year and during each of the 2
14 immediately preceding tax years; provided that, when a
15 taxpayer is a member of a unitary business group, such
16 determination shall be made on the basis of the gross
17 receipts of the entire unitary business group.
18 (B-5) For taxable years ending on or after December 31,
19 2008, except as provided in subsections (ii) through (vii),
20 receipts from the sale of telecommunications service or
21 mobile telecommunications service are in this State if the
22 customer's service address is in this State.
23 (i) For purposes of this subparagraph (B-5), the
24 following terms have the following meanings:
25 "Ancillary services" means services that are
26 associated with or incidental to the provision of

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1 "telecommunications services", including but not
2 limited to "detailed telecommunications billing",
3 "directory assistance", "vertical service", and "voice
4 mail services".
5 "Air-to-Ground Radiotelephone service" means a
6 radio service, as that term is defined in 47 CFR 22.99,
7 in which common carriers are authorized to offer and
8 provide radio telecommunications service for hire to
9 subscribers in aircraft.
10 "Call-by-call Basis" means any method of charging
11 for telecommunications services where the price is
12 measured by individual calls.
13 "Communications Channel" means a physical or
14 virtual path of communications over which signals are
15 transmitted between or among customer channel
16 termination points.
17 "Conference bridging service" means an "ancillary
18 service" that links two or more participants of an
19 audio or video conference call and may include the
20 provision of a telephone number. "Conference bridging
21 service" does not include the "telecommunications
22 services" used to reach the conference bridge.
23 "Customer Channel Termination Point" means the
24 location where the customer either inputs or receives
25 the communications.
26 "Detailed telecommunications billing service"

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1 means an "ancillary service" of separately stating
2 information pertaining to individual calls on a
3 customer's billing statement.
4 "Directory assistance" means an "ancillary
5 service" of providing telephone number information,
6 and/or address information.
7 "Home service provider" means the facilities based
8 carrier or reseller with which the customer contracts
9 for the provision of mobile telecommunications
10 services.
11 "Mobile telecommunications service" means
12 commercial mobile radio service, as defined in Section
13 20.3 of Title 47 of the Code of Federal Regulations as
14 in effect on June 1, 1999.
15 "Place of primary use" means the street address
16 representative of where the customer's use of the
17 telecommunications service primarily occurs, which
18 must be the residential street address or the primary
19 business street address of the customer. In the case of
20 mobile telecommunications services, "place of primary
21 use" must be within the licensed service area of the
22 home service provider.
23 "Post-paid telecommunication service" means the
24 telecommunications service obtained by making a
25 payment on a call-by-call basis either through the use
26 of a credit card or payment mechanism such as a bank

10100SB0690ham002- 324 -LRB101 04451 SMS 61506 a
1 card, travel card, credit card, or debit card, or by
2 charge made to a telephone number which is not
3 associated with the origination or termination of the
4 telecommunications service. A post-paid calling
5 service includes telecommunications service, except a
6 prepaid wireless calling service, that would be a
7 prepaid calling service except it is not exclusively a
8 telecommunication service.
9 "Prepaid telecommunication service" means the
10 right to access exclusively telecommunications
11 services, which must be paid for in advance and which
12 enables the origination of calls using an access number
13 or authorization code, whether manually or
14 electronically dialed, and that is sold in
15 predetermined units or dollars of which the number
16 declines with use in a known amount.
17 "Prepaid Mobile telecommunication service" means a
18 telecommunications service that provides the right to
19 utilize mobile wireless service as well as other
20 non-telecommunication services, including but not
21 limited to ancillary services, which must be paid for
22 in advance that is sold in predetermined units or
23 dollars of which the number declines with use in a
24 known amount.
25 "Private communication service" means a
26 telecommunication service that entitles the customer

10100SB0690ham002- 325 -LRB101 04451 SMS 61506 a
1 to exclusive or priority use of a communications
2 channel or group of channels between or among
3 termination points, regardless of the manner in which
4 such channel or channels are connected, and includes
5 switching capacity, extension lines, stations, and any
6 other associated services that are provided in
7 connection with the use of such channel or channels.
8 "Service address" means:
9 (a) The location of the telecommunications
10 equipment to which a customer's call is charged and
11 from which the call originates or terminates,
12 regardless of where the call is billed or paid;
13 (b) If the location in line (a) is not known,
14 service address means the origination point of the
15 signal of the telecommunications services first
16 identified by either the seller's
17 telecommunications system or in information
18 received by the seller from its service provider
19 where the system used to transport such signals is
20 not that of the seller; and
21 (c) If the locations in line (a) and line (b)
22 are not known, the service address means the
23 location of the customer's place of primary use.
24 "Telecommunications service" means the electronic
25 transmission, conveyance, or routing of voice, data,
26 audio, video, or any other information or signals to a

10100SB0690ham002- 326 -LRB101 04451 SMS 61506 a
1 point, or between or among points. The term
2 "telecommunications service" includes such
3 transmission, conveyance, or routing in which computer
4 processing applications are used to act on the form,
5 code or protocol of the content for purposes of
6 transmission, conveyance or routing without regard to
7 whether such service is referred to as voice over
8 Internet protocol services or is classified by the
9 Federal Communications Commission as enhanced or value
10 added. "Telecommunications service" does not include:
11 (a) Data processing and information services
12 that allow data to be generated, acquired, stored,
13 processed, or retrieved and delivered by an
14 electronic transmission to a purchaser when such
15 purchaser's primary purpose for the underlying
16 transaction is the processed data or information;
17 (b) Installation or maintenance of wiring or
18 equipment on a customer's premises;
19 (c) Tangible personal property;
20 (d) Advertising, including but not limited to
21 directory advertising;
22 (e) Billing and collection services provided
23 to third parties;
24 (f) Internet access service;
25 (g) Radio and television audio and video
26 programming services, regardless of the medium,

10100SB0690ham002- 327 -LRB101 04451 SMS 61506 a
1 including the furnishing of transmission,
2 conveyance and routing of such services by the
3 programming service provider. Radio and television
4 audio and video programming services shall include
5 but not be limited to cable service as defined in
6 47 USC 522(6) and audio and video programming
7 services delivered by commercial mobile radio
8 service providers, as defined in 47 CFR 20.3;
9 (h) "Ancillary services"; or
10 (i) Digital products "delivered
11 electronically", including but not limited to
12 software, music, video, reading materials or ring
13 tones.
14 "Vertical service" means an "ancillary service"
15 that is offered in connection with one or more
16 "telecommunications services", which offers advanced
17 calling features that allow customers to identify
18 callers and to manage multiple calls and call
19 connections, including "conference bridging services".
20 "Voice mail service" means an "ancillary service"
21 that enables the customer to store, send or receive
22 recorded messages. "Voice mail service" does not
23 include any "vertical services" that the customer may
24 be required to have in order to utilize the "voice mail
25 service".
26 (ii) Receipts from the sale of telecommunications

10100SB0690ham002- 328 -LRB101 04451 SMS 61506 a
1 service sold on an individual call-by-call basis are in
2 this State if either of the following applies:
3 (a) The call both originates and terminates in
4 this State.
5 (b) The call either originates or terminates
6 in this State and the service address is located in
7 this State.
8 (iii) Receipts from the sale of postpaid
9 telecommunications service at retail are in this State
10 if the origination point of the telecommunication
11 signal, as first identified by the service provider's
12 telecommunication system or as identified by
13 information received by the seller from its service
14 provider if the system used to transport
15 telecommunication signals is not the seller's, is
16 located in this State.
17 (iv) Receipts from the sale of prepaid
18 telecommunications service or prepaid mobile
19 telecommunications service at retail are in this State
20 if the purchaser obtains the prepaid card or similar
21 means of conveyance at a location in this State.
22 Receipts from recharging a prepaid telecommunications
23 service or mobile telecommunications service is in
24 this State if the purchaser's billing information
25 indicates a location in this State.
26 (v) Receipts from the sale of private

10100SB0690ham002- 329 -LRB101 04451 SMS 61506 a
1 communication services are in this State as follows:
2 (a) 100% of receipts from charges imposed at
3 each channel termination point in this State.
4 (b) 100% of receipts from charges for the total
5 channel mileage between each channel termination
6 point in this State.
7 (c) 50% of the total receipts from charges for
8 service segments when those segments are between 2
9 customer channel termination points, 1 of which is
10 located in this State and the other is located
11 outside of this State, which segments are
12 separately charged.
13 (d) The receipts from charges for service
14 segments with a channel termination point located
15 in this State and in two or more other states, and
16 which segments are not separately billed, are in
17 this State based on a percentage determined by
18 dividing the number of customer channel
19 termination points in this State by the total
20 number of customer channel termination points.
21 (vi) Receipts from charges for ancillary services
22 for telecommunications service sold to customers at
23 retail are in this State if the customer's primary
24 place of use of telecommunications services associated
25 with those ancillary services is in this State. If the
26 seller of those ancillary services cannot determine

10100SB0690ham002- 330 -LRB101 04451 SMS 61506 a
1 where the associated telecommunications are located,
2 then the ancillary services shall be based on the
3 location of the purchaser.
4 (vii) Receipts to access a carrier's network or
5 from the sale of telecommunication services or
6 ancillary services for resale are in this State as
7 follows:
8 (a) 100% of the receipts from access fees
9 attributable to intrastate telecommunications
10 service that both originates and terminates in
11 this State.
12 (b) 50% of the receipts from access fees
13 attributable to interstate telecommunications
14 service if the interstate call either originates
15 or terminates in this State.
16 (c) 100% of the receipts from interstate end
17 user access line charges, if the customer's
18 service address is in this State. As used in this
19 subdivision, "interstate end user access line
20 charges" includes, but is not limited to, the
21 surcharge approved by the federal communications
22 commission and levied pursuant to 47 CFR 69.
23 (d) Gross receipts from sales of
24 telecommunication services or from ancillary
25 services for telecommunications services sold to
26 other telecommunication service providers for

10100SB0690ham002- 331 -LRB101 04451 SMS 61506 a
1 resale shall be sourced to this State using the
2 apportionment concepts used for non-resale
3 receipts of telecommunications services if the
4 information is readily available to make that
5 determination. If the information is not readily
6 available, then the taxpayer may use any other
7 reasonable and consistent method.
8 (B-7) For taxable years ending on or after December 31,
9 2008, receipts from the sale of broadcasting services are
10 in this State if the broadcasting services are received in
11 this State. For purposes of this paragraph (B-7), the
12 following terms have the following meanings:
13 "Advertising revenue" means consideration received
14 by the taxpayer in exchange for broadcasting services
15 or allowing the broadcasting of commercials or
16 announcements in connection with the broadcasting of
17 film or radio programming, from sponsorships of the
18 programming, or from product placements in the
19 programming.
20 "Audience factor" means the ratio that the
21 audience or subscribers located in this State of a
22 station, a network, or a cable system bears to the
23 total audience or total subscribers for that station,
24 network, or cable system. The audience factor for film
25 or radio programming shall be determined by reference
26 to the books and records of the taxpayer or by

10100SB0690ham002- 332 -LRB101 04451 SMS 61506 a
1 reference to published rating statistics provided the
2 method used by the taxpayer is consistently used from
3 year to year for this purpose and fairly represents the
4 taxpayer's activity in this State.
5 "Broadcast" or "broadcasting" or "broadcasting
6 services" means the transmission or provision of film
7 or radio programming, whether through the public
8 airwaves, by cable, by direct or indirect satellite
9 transmission, or by any other means of communication,
10 either through a station, a network, or a cable system.
11 "Film" or "film programming" means the broadcast
12 on television of any and all performances, events, or
13 productions, including but not limited to news,
14 sporting events, plays, stories, or other literary,
15 commercial, educational, or artistic works, either
16 live or through the use of video tape, disc, or any
17 other type of format or medium. Each episode of a
18 series of films produced for television shall
19 constitute separate "film" notwithstanding that the
20 series relates to the same principal subject and is
21 produced during one or more tax periods.
22 "Radio" or "radio programming" means the broadcast
23 on radio of any and all performances, events, or
24 productions, including but not limited to news,
25 sporting events, plays, stories, or other literary,
26 commercial, educational, or artistic works, either

10100SB0690ham002- 333 -LRB101 04451 SMS 61506 a
1 live or through the use of an audio tape, disc, or any
2 other format or medium. Each episode in a series of
3 radio programming produced for radio broadcast shall
4 constitute a separate "radio programming"
5 notwithstanding that the series relates to the same
6 principal subject and is produced during one or more
7 tax periods.
8 (i) In the case of advertising revenue from
9 broadcasting, the customer is the advertiser and
10 the service is received in this State if the
11 commercial domicile of the advertiser is in this
12 State.
13 (ii) In the case where film or radio
14 programming is broadcast by a station, a network,
15 or a cable system for a fee or other remuneration
16 received from the recipient of the broadcast, the
17 portion of the service that is received in this
18 State is measured by the portion of the recipients
19 of the broadcast located in this State.
20 Accordingly, the fee or other remuneration for
21 such service that is included in the Illinois
22 numerator of the sales factor is the total of those
23 fees or other remuneration received from
24 recipients in Illinois. For purposes of this
25 paragraph, a taxpayer may determine the location
26 of the recipients of its broadcast using the

10100SB0690ham002- 334 -LRB101 04451 SMS 61506 a
1 address of the recipient shown in its contracts
2 with the recipient or using the billing address of
3 the recipient in the taxpayer's records.
4 (iii) In the case where film or radio
5 programming is broadcast by a station, a network,
6 or a cable system for a fee or other remuneration
7 from the person providing the programming, the
8 portion of the broadcast service that is received
9 by such station, network, or cable system in this
10 State is measured by the portion of recipients of
11 the broadcast located in this State. Accordingly,
12 the amount of revenue related to such an
13 arrangement that is included in the Illinois
14 numerator of the sales factor is the total fee or
15 other total remuneration from the person providing
16 the programming related to that broadcast
17 multiplied by the Illinois audience factor for
18 that broadcast.
19 (iv) In the case where film or radio
20 programming is provided by a taxpayer that is a
21 network or station to a customer for broadcast in
22 exchange for a fee or other remuneration from that
23 customer the broadcasting service is received at
24 the location of the office of the customer from
25 which the services were ordered in the regular
26 course of the customer's trade or business.

10100SB0690ham002- 335 -LRB101 04451 SMS 61506 a
1 Accordingly, in such a case the revenue derived by
2 the taxpayer that is included in the taxpayer's
3 Illinois numerator of the sales factor is the
4 revenue from such customers who receive the
5 broadcasting service in Illinois.
6 (v) In the case where film or radio programming
7 is provided by a taxpayer that is not a network or
8 station to another person for broadcasting in
9 exchange for a fee or other remuneration from that
10 person, the broadcasting service is received at
11 the location of the office of the customer from
12 which the services were ordered in the regular
13 course of the customer's trade or business.
14 Accordingly, in such a case the revenue derived by
15 the taxpayer that is included in the taxpayer's
16 Illinois numerator of the sales factor is the
17 revenue from such customers who receive the
18 broadcasting service in Illinois.
19 (B-8) Gross receipts from winnings under the Illinois
20 Lottery Law from the assignment of a prize under Section
21 13.1 of the Illinois Lottery Law are received in this
22 State. This paragraph (B-8) applies only to taxable years
23 ending on or after December 31, 2013.
24 (B-9) For taxable years ending on or after December 31,
25 2019, gross receipts from winnings from pari-mutuel
26 wagering conducted at a wagering facility licensed under

10100SB0690ham002- 336 -LRB101 04451 SMS 61506 a
1 the Illinois Horse Racing Act of 1975 or from winnings from
2 gambling games conducted on a riverboat or in a casino or
3 organization gaming facility licensed under the Illinois
4 Gambling Act are in this State.
5 (C) For taxable years ending before December 31, 2008,
6 sales, other than sales governed by paragraphs (B), (B-1),
7 (B-2), and (B-8) are in this State if:
8 (i) The income-producing activity is performed in
9 this State; or
10 (ii) The income-producing activity is performed
11 both within and without this State and a greater
12 proportion of the income-producing activity is
13 performed within this State than without this State,
14 based on performance costs.
15 (C-5) For taxable years ending on or after December 31,
16 2008, sales, other than sales governed by paragraphs (B),
17 (B-1), (B-2), (B-5), and (B-7), are in this State if any of
18 the following criteria are met:
19 (i) Sales from the sale or lease of real property
20 are in this State if the property is located in this
21 State.
22 (ii) Sales from the lease or rental of tangible
23 personal property are in this State if the property is
24 located in this State during the rental period. Sales
25 from the lease or rental of tangible personal property
26 that is characteristically moving property, including,

10100SB0690ham002- 337 -LRB101 04451 SMS 61506 a
1 but not limited to, motor vehicles, rolling stock,
2 aircraft, vessels, or mobile equipment are in this
3 State to the extent that the property is used in this
4 State.
5 (iii) In the case of interest, net gains (but not
6 less than zero) and other items of income from
7 intangible personal property, the sale is in this State
8 if:
9 (a) in the case of a taxpayer who is a dealer
10 in the item of intangible personal property within
11 the meaning of Section 475 of the Internal Revenue
12 Code, the income or gain is received from a
13 customer in this State. For purposes of this
14 subparagraph, a customer is in this State if the
15 customer is an individual, trust or estate who is a
16 resident of this State and, for all other
17 customers, if the customer's commercial domicile
18 is in this State. Unless the dealer has actual
19 knowledge of the residence or commercial domicile
20 of a customer during a taxable year, the customer
21 shall be deemed to be a customer in this State if
22 the billing address of the customer, as shown in
23 the records of the dealer, is in this State; or
24 (b) in all other cases, if the
25 income-producing activity of the taxpayer is
26 performed in this State or, if the

10100SB0690ham002- 338 -LRB101 04451 SMS 61506 a
1 income-producing activity of the taxpayer is
2 performed both within and without this State, if a
3 greater proportion of the income-producing
4 activity of the taxpayer is performed within this
5 State than in any other state, based on performance
6 costs.
7 (iv) Sales of services are in this State if the
8 services are received in this State. For the purposes
9 of this section, gross receipts from the performance of
10 services provided to a corporation, partnership, or
11 trust may only be attributed to a state where that
12 corporation, partnership, or trust has a fixed place of
13 business. If the state where the services are received
14 is not readily determinable or is a state where the
15 corporation, partnership, or trust receiving the
16 service does not have a fixed place of business, the
17 services shall be deemed to be received at the location
18 of the office of the customer from which the services
19 were ordered in the regular course of the customer's
20 trade or business. If the ordering office cannot be
21 determined, the services shall be deemed to be received
22 at the office of the customer to which the services are
23 billed. If the taxpayer is not taxable in the state in
24 which the services are received, the sale must be
25 excluded from both the numerator and the denominator of
26 the sales factor. The Department shall adopt rules

10100SB0690ham002- 339 -LRB101 04451 SMS 61506 a
1 prescribing where specific types of service are
2 received, including, but not limited to, publishing,
3 and utility service.
4 (D) For taxable years ending on or after December 31,
5 1995, the following items of income shall not be included
6 in the numerator or denominator of the sales factor:
7 dividends; amounts included under Section 78 of the
8 Internal Revenue Code; and Subpart F income as defined in
9 Section 952 of the Internal Revenue Code. No inference
10 shall be drawn from the enactment of this paragraph (D) in
11 construing this Section for taxable years ending before
12 December 31, 1995.
13 (E) Paragraphs (B-1) and (B-2) shall apply to tax years
14 ending on or after December 31, 1999, provided that a
15 taxpayer may elect to apply the provisions of these
16 paragraphs to prior tax years. Such election shall be made
17 in the form and manner prescribed by the Department, shall
18 be irrevocable, and shall apply to all tax years; provided
19 that, if a taxpayer's Illinois income tax liability for any
20 tax year, as assessed under Section 903 prior to January 1,
21 1999, was computed in a manner contrary to the provisions
22 of paragraphs (B-1) or (B-2), no refund shall be payable to
23 the taxpayer for that tax year to the extent such refund is
24 the result of applying the provisions of paragraph (B-1) or
25 (B-2) retroactively. In the case of a unitary business
26 group, such election shall apply to all members of such

10100SB0690ham002- 340 -LRB101 04451 SMS 61506 a
1 group for every tax year such group is in existence, but
2 shall not apply to any taxpayer for any period during which
3 that taxpayer is not a member of such group.
4 (b) Insurance companies.
5 (1) In general. Except as otherwise provided by
6 paragraph (2), business income of an insurance company for
7 a taxable year shall be apportioned to this State by
8 multiplying such income by a fraction, the numerator of
9 which is the direct premiums written for insurance upon
10 property or risk in this State, and the denominator of
11 which is the direct premiums written for insurance upon
12 property or risk everywhere. For purposes of this
13 subsection, the term "direct premiums written" means the
14 total amount of direct premiums written, assessments and
15 annuity considerations as reported for the taxable year on
16 the annual statement filed by the company with the Illinois
17 Director of Insurance in the form approved by the National
18 Convention of Insurance Commissioners or such other form as
19 may be prescribed in lieu thereof.
20 (2) Reinsurance. If the principal source of premiums
21 written by an insurance company consists of premiums for
22 reinsurance accepted by it, the business income of such
23 company shall be apportioned to this State by multiplying
24 such income by a fraction, the numerator of which is the
25 sum of (i) direct premiums written for insurance upon
26 property or risk in this State, plus (ii) premiums written

10100SB0690ham002- 341 -LRB101 04451 SMS 61506 a
1 for reinsurance accepted in respect of property or risk in
2 this State, and the denominator of which is the sum of
3 (iii) direct premiums written for insurance upon property
4 or risk everywhere, plus (iv) premiums written for
5 reinsurance accepted in respect of property or risk
6 everywhere. For purposes of this paragraph, premiums
7 written for reinsurance accepted in respect of property or
8 risk in this State, whether or not otherwise determinable,
9 may, at the election of the company, be determined on the
10 basis of the proportion which premiums written for
11 reinsurance accepted from companies commercially domiciled
12 in Illinois bears to premiums written for reinsurance
13 accepted from all sources, or, alternatively, in the
14 proportion which the sum of the direct premiums written for
15 insurance upon property or risk in this State by each
16 ceding company from which reinsurance is accepted bears to
17 the sum of the total direct premiums written by each such
18 ceding company for the taxable year. The election made by a
19 company under this paragraph for its first taxable year
20 ending on or after December 31, 2011, shall be binding for
21 that company for that taxable year and for all subsequent
22 taxable years, and may be altered only with the written
23 permission of the Department, which shall not be
24 unreasonably withheld.
25 (c) Financial organizations.
26 (1) In general. For taxable years ending before

10100SB0690ham002- 342 -LRB101 04451 SMS 61506 a
1 December 31, 2008, business income of a financial
2 organization shall be apportioned to this State by
3 multiplying such income by a fraction, the numerator of
4 which is its business income from sources within this
5 State, and the denominator of which is its business income
6 from all sources. For the purposes of this subsection, the
7 business income of a financial organization from sources
8 within this State is the sum of the amounts referred to in
9 subparagraphs (A) through (E) following, but excluding the
10 adjusted income of an international banking facility as
11 determined in paragraph (2):
12 (A) Fees, commissions or other compensation for
13 financial services rendered within this State;
14 (B) Gross profits from trading in stocks, bonds or
15 other securities managed within this State;
16 (C) Dividends, and interest from Illinois
17 customers, which are received within this State;
18 (D) Interest charged to customers at places of
19 business maintained within this State for carrying
20 debit balances of margin accounts, without deduction
21 of any costs incurred in carrying such accounts; and
22 (E) Any other gross income resulting from the
23 operation as a financial organization within this
24 State. In computing the amounts referred to in
25 paragraphs (A) through (E) of this subsection, any
26 amount received by a member of an affiliated group

10100SB0690ham002- 343 -LRB101 04451 SMS 61506 a
1 (determined under Section 1504(a) of the Internal
2 Revenue Code but without reference to whether any such
3 corporation is an "includible corporation" under
4 Section 1504(b) of the Internal Revenue Code) from
5 another member of such group shall be included only to
6 the extent such amount exceeds expenses of the
7 recipient directly related thereto.
8 (2) International Banking Facility. For taxable years
9 ending before December 31, 2008:
10 (A) Adjusted Income. The adjusted income of an
11 international banking facility is its income reduced
12 by the amount of the floor amount.
13 (B) Floor Amount. The floor amount shall be the
14 amount, if any, determined by multiplying the income of
15 the international banking facility by a fraction, not
16 greater than one, which is determined as follows:
17 (i) The numerator shall be:
18 The average aggregate, determined on a
19 quarterly basis, of the financial organization's
20 loans to banks in foreign countries, to foreign
21 domiciled borrowers (except where secured
22 primarily by real estate) and to foreign
23 governments and other foreign official
24 institutions, as reported for its branches,
25 agencies and offices within the state on its
26 "Consolidated Report of Condition", Schedule A,

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

10100SB0690ham002- 345 -LRB101 04451 SMS 61506 a
1 Insurance Corporation and other regulatory authorities
2 is altered so that the information required for
3 determining the floor amount is not found on Schedule
4 A, lines 2.c., 5.b. and 7.a., the financial institution
5 shall notify the Department and the Department may, by
6 regulations or otherwise, prescribe or authorize the
7 use of an alternative source for such information. The
8 financial institution shall also notify the Department
9 should its international banking facility fail to
10 qualify as such, in whole or in part, or should there
11 be any amendment or change to the Consolidated Report
12 of Condition, as originally filed, to the extent such
13 amendment or change alters the information used in
14 determining the floor amount.
15 (3) For taxable years ending on or after December 31,
16 2008, the business income of a financial organization shall
17 be apportioned to this State by multiplying such income by
18 a fraction, the numerator of which is its gross receipts
19 from sources in this State or otherwise attributable to
20 this State's marketplace and the denominator of which is
21 its gross receipts everywhere during the taxable year.
22 "Gross receipts" for purposes of this subparagraph (3)
23 means gross income, including net taxable gain on
24 disposition of assets, including securities and money
25 market instruments, when derived from transactions and
26 activities in the regular course of the financial

10100SB0690ham002- 346 -LRB101 04451 SMS 61506 a
1 organization's trade or business. The following examples
2 are illustrative:
3 (i) Receipts from the lease or rental of real or
4 tangible personal property are in this State if the
5 property is located in this State during the rental
6 period. Receipts from the lease or rental of tangible
7 personal property that is characteristically moving
8 property, including, but not limited to, motor
9 vehicles, rolling stock, aircraft, vessels, or mobile
10 equipment are from sources in this State to the extent
11 that the property is used in this State.
12 (ii) Interest income, commissions, fees, gains on
13 disposition, and other receipts from assets in the
14 nature of loans that are secured primarily by real
15 estate or tangible personal property are from sources
16 in this State if the security is located in this State.
17 (iii) Interest income, commissions, fees, gains on
18 disposition, and other receipts from consumer loans
19 that are not secured by real or tangible personal
20 property are from sources in this State if the debtor
21 is a resident of this State.
22 (iv) Interest income, commissions, fees, gains on
23 disposition, and other receipts from commercial loans
24 and installment obligations that are not secured by
25 real or tangible personal property are from sources in
26 this State if the proceeds of the loan are to be

10100SB0690ham002- 347 -LRB101 04451 SMS 61506 a
1 applied in this State. If it cannot be determined where
2 the funds are to be applied, the income and receipts
3 are from sources in this State if the office of the
4 borrower from which the loan was negotiated in the
5 regular course of business is located in this State. If
6 the location of this office cannot be determined, the
7 income and receipts shall be excluded from the
8 numerator and denominator of the sales factor.
9 (v) Interest income, fees, gains on disposition,
10 service charges, merchant discount income, and other
11 receipts from credit card receivables are from sources
12 in this State if the card charges are regularly billed
13 to a customer in this State.
14 (vi) Receipts from the performance of services,
15 including, but not limited to, fiduciary, advisory,
16 and brokerage services, are in this State if the
17 services are received in this State within the meaning
18 of subparagraph (a)(3)(C-5)(iv) of this Section.
19 (vii) Receipts from the issuance of travelers
20 checks and money orders are from sources in this State
21 if the checks and money orders are issued from a
22 location within this State.
23 (viii) Receipts from investment assets and
24 activities and trading assets and activities are
25 included in the receipts factor as follows:
26 (1) Interest, dividends, net gains (but not

10100SB0690ham002- 348 -LRB101 04451 SMS 61506 a
1 less than zero) and other income from investment
2 assets and activities from trading assets and
3 activities shall be included in the receipts
4 factor. Investment assets and activities and
5 trading assets and activities include but are not
6 limited to: investment securities; trading account
7 assets; federal funds; securities purchased and
8 sold under agreements to resell or repurchase;
9 options; futures contracts; forward contracts;
10 notional principal contracts such as swaps;
11 equities; and foreign currency transactions. With
12 respect to the investment and trading assets and
13 activities described in subparagraphs (A) and (B)
14 of this paragraph, the receipts factor shall
15 include the amounts described in such
16 subparagraphs.
17 (A) The receipts factor shall include the
18 amount by which interest from federal funds
19 sold and securities purchased under resale
20 agreements exceeds interest expense on federal
21 funds purchased and securities sold under
22 repurchase agreements.
23 (B) The receipts factor shall include the
24 amount by which interest, dividends, gains and
25 other income from trading assets and
26 activities, including but not limited to

10100SB0690ham002- 349 -LRB101 04451 SMS 61506 a
1 assets and activities in the matched book, in
2 the arbitrage book, and foreign currency
3 transactions, exceed amounts paid in lieu of
4 interest, amounts paid in lieu of dividends,
5 and losses from such assets and activities.
6 (2) The numerator of the receipts factor
7 includes interest, dividends, net gains (but not
8 less than zero), and other income from investment
9 assets and activities and from trading assets and
10 activities described in paragraph (1) of this
11 subsection that are attributable to this State.
12 (A) The amount of interest, dividends, net
13 gains (but not less than zero), and other
14 income from investment assets and activities
15 in the investment account to be attributed to
16 this State and included in the numerator is
17 determined by multiplying all such income from
18 such assets and activities by a fraction, the
19 numerator of which is the gross income from
20 such assets and activities which are properly
21 assigned to a fixed place of business of the
22 taxpayer within this State and the denominator
23 of which is the gross income from all such
24 assets and activities.
25 (B) The amount of interest from federal
26 funds sold and purchased and from securities

10100SB0690ham002- 350 -LRB101 04451 SMS 61506 a
1 purchased under resale agreements and
2 securities sold under repurchase agreements
3 attributable to this State and included in the
4 numerator is determined by multiplying the
5 amount described in subparagraph (A) of
6 paragraph (1) of this subsection from such
7 funds and such securities by a fraction, the
8 numerator of which is the gross income from
9 such funds and such securities which are
10 properly assigned to a fixed place of business
11 of the taxpayer within this State and the
12 denominator of which is the gross income from
13 all such funds and such securities.
14 (C) The amount of interest, dividends,
15 gains, and other income from trading assets and
16 activities, including but not limited to
17 assets and activities in the matched book, in
18 the arbitrage book and foreign currency
19 transactions (but excluding amounts described
20 in subparagraphs (A) or (B) of this paragraph),
21 attributable to this State and included in the
22 numerator is determined by multiplying the
23 amount described in subparagraph (B) of
24 paragraph (1) of this subsection by a fraction,
25 the numerator of which is the gross income from
26 such trading assets and activities which are

10100SB0690ham002- 351 -LRB101 04451 SMS 61506 a
1 properly assigned to a fixed place of business
2 of the taxpayer within this State and the
3 denominator of which is the gross income from
4 all such assets and activities.
5 (D) Properly assigned, for purposes of
6 this paragraph (2) of this subsection, means
7 the investment or trading asset or activity is
8 assigned to the fixed place of business with
9 which it has a preponderance of substantive
10 contacts. An investment or trading asset or
11 activity assigned by the taxpayer to a fixed
12 place of business without the State shall be
13 presumed to have been properly assigned if:
14 (i) the taxpayer has assigned, in the
15 regular course of its business, such asset
16 or activity on its records to a fixed place
17 of business consistent with federal or
18 state regulatory requirements;
19 (ii) such assignment on its records is
20 based upon substantive contacts of the
21 asset or activity to such fixed place of
22 business; and
23 (iii) the taxpayer uses such records
24 reflecting assignment of such assets or
25 activities for the filing of all state and
26 local tax returns for which an assignment

10100SB0690ham002- 352 -LRB101 04451 SMS 61506 a
1 of such assets or activities to a fixed
2 place of business is required.
3 (E) The presumption of proper assignment
4 of an investment or trading asset or activity
5 provided in subparagraph (D) of paragraph (2)
6 of this subsection may be rebutted upon a
7 showing by the Department, supported by a
8 preponderance of the evidence, that the
9 preponderance of substantive contacts
10 regarding such asset or activity did not occur
11 at the fixed place of business to which it was
12 assigned on the taxpayer's records. If the
13 fixed place of business that has a
14 preponderance of substantive contacts cannot
15 be determined for an investment or trading
16 asset or activity to which the presumption in
17 subparagraph (D) of paragraph (2) of this
18 subsection does not apply or with respect to
19 which that presumption has been rebutted, that
20 asset or activity is properly assigned to the
21 state in which the taxpayer's commercial
22 domicile is located. For purposes of this
23 subparagraph (E), it shall be presumed,
24 subject to rebuttal, that taxpayer's
25 commercial domicile is in the state of the
26 United States or the District of Columbia to

10100SB0690ham002- 353 -LRB101 04451 SMS 61506 a
1 which the greatest number of employees are
2 regularly connected with the management of the
3 investment or trading income or out of which
4 they are working, irrespective of where the
5 services of such employees are performed, as of
6 the last day of the taxable year.
7 (4) (Blank).
8 (5) (Blank).
9 (c-1) Federally regulated exchanges. For taxable years
10ending on or after December 31, 2012, business income of a
11federally regulated exchange shall, at the option of the
12federally regulated exchange, be apportioned to this State by
13multiplying such income by a fraction, the numerator of which
14is its business income from sources within this State, and the
15denominator of which is its business income from all sources.
16For purposes of this subsection, the business income within
17this State of a federally regulated exchange is the sum of the
18following:
19 (1) Receipts attributable to transactions executed on
20 a physical trading floor if that physical trading floor is
21 located in this State.
22 (2) Receipts attributable to all other matching,
23 execution, or clearing transactions, including without
24 limitation receipts from the provision of matching,
25 execution, or clearing services to another entity,
26 multiplied by (i) for taxable years ending on or after

10100SB0690ham002- 354 -LRB101 04451 SMS 61506 a
1 December 31, 2012 but before December 31, 2013, 63.77%; and
2 (ii) for taxable years ending on or after December 31,
3 2013, 27.54%.
4 (3) All other receipts not governed by subparagraphs
5 (1) or (2) of this subsection (c-1), to the extent the
6 receipts would be characterized as "sales in this State"
7 under item (3) of subsection (a) of this Section.
8 "Federally regulated exchange" means (i) a "registered
9entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
10or (C), (ii) an "exchange" or "clearing agency" within the
11meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
12entities regulated under any successor regulatory structure to
13the foregoing, and (iv) all taxpayers who are members of the
14same unitary business group as a federally regulated exchange,
15determined without regard to the prohibition in Section
161501(a)(27) of this Act against including in a unitary business
17group taxpayers who are ordinarily required to apportion
18business income under different subsections of this Section;
19provided that this subparagraph (iv) shall apply only if 50% or
20more of the business receipts of the unitary business group
21determined by application of this subparagraph (iv) for the
22taxable year are attributable to the matching, execution, or
23clearing of transactions conducted by an entity described in
24subparagraph (i), (ii), or (iii) of this paragraph.
25 In no event shall the Illinois apportionment percentage
26computed in accordance with this subsection (c-1) for any

10100SB0690ham002- 355 -LRB101 04451 SMS 61506 a
1taxpayer for any tax year be less than the Illinois
2apportionment percentage computed under this subsection (c-1)
3for that taxpayer for the first full tax year ending on or
4after December 31, 2013 for which this subsection (c-1) applied
5to the taxpayer.
6 (d) Transportation services. For taxable years ending
7before December 31, 2008, business income derived from
8furnishing transportation services shall be apportioned to
9this State in accordance with paragraphs (1) and (2):
10 (1) Such business income (other than that derived from
11 transportation by pipeline) shall be apportioned to this
12 State by multiplying such income by a fraction, the
13 numerator of which is the revenue miles of the person in
14 this State, and the denominator of which is the revenue
15 miles of the person everywhere. For purposes of this
16 paragraph, a revenue mile is the transportation of 1
17 passenger or 1 net ton of freight the distance of 1 mile
18 for a consideration. Where a person is engaged in the
19 transportation of both passengers and freight, the
20 fraction above referred to shall be determined by means of
21 an average of the passenger revenue mile fraction and the
22 freight revenue mile fraction, weighted to reflect the
23 person's
24 (A) relative railway operating income from total
25 passenger and total freight service, as reported to the
26 Interstate Commerce Commission, in the case of

10100SB0690ham002- 356 -LRB101 04451 SMS 61506 a
1 transportation by railroad, and
2 (B) relative gross receipts from passenger and
3 freight transportation, in case of transportation
4 other than by railroad.
5 (2) Such business income derived from transportation
6 by pipeline shall be apportioned to this State by
7 multiplying such income by a fraction, the numerator of
8 which is the revenue miles of the person in this State, and
9 the denominator of which is the revenue miles of the person
10 everywhere. For the purposes of this paragraph, a revenue
11 mile is the transportation by pipeline of 1 barrel of oil,
12 1,000 cubic feet of gas, or of any specified quantity of
13 any other substance, the distance of 1 mile for a
14 consideration.
15 (3) For taxable years ending on or after December 31,
16 2008, business income derived from providing
17 transportation services other than airline services shall
18 be apportioned to this State by using a fraction, (a) the
19 numerator of which shall be (i) all receipts from any
20 movement or shipment of people, goods, mail, oil, gas, or
21 any other substance (other than by airline) that both
22 originates and terminates in this State, plus (ii) that
23 portion of the person's gross receipts from movements or
24 shipments of people, goods, mail, oil, gas, or any other
25 substance (other than by airline) that originates in one
26 state or jurisdiction and terminates in another state or

10100SB0690ham002- 357 -LRB101 04451 SMS 61506 a
1 jurisdiction, that is determined by the ratio that the
2 miles traveled in this State bears to total miles
3 everywhere and (b) the denominator of which shall be all
4 revenue derived from the movement or shipment of people,
5 goods, mail, oil, gas, or any other substance (other than
6 by airline). Where a taxpayer is engaged in the
7 transportation of both passengers and freight, the
8 fraction above referred to shall first be determined
9 separately for passenger miles and freight miles. Then an
10 average of the passenger miles fraction and the freight
11 miles fraction shall be weighted to reflect the taxpayer's:
12 (A) relative railway operating income from total
13 passenger and total freight service, as reported to the
14 Surface Transportation Board, in the case of
15 transportation by railroad; and
16 (B) relative gross receipts from passenger and
17 freight transportation, in case of transportation
18 other than by railroad.
19 (4) For taxable years ending on or after December 31,
20 2008, business income derived from furnishing airline
21 transportation services shall be apportioned to this State
22 by multiplying such income by a fraction, the numerator of
23 which is the revenue miles of the person in this State, and
24 the denominator of which is the revenue miles of the person
25 everywhere. For purposes of this paragraph, a revenue mile
26 is the transportation of one passenger or one net ton of

10100SB0690ham002- 358 -LRB101 04451 SMS 61506 a
1 freight the distance of one mile for a consideration. If a
2 person is engaged in the transportation of both passengers
3 and freight, the fraction above referred to shall be
4 determined by means of an average of the passenger revenue
5 mile fraction and the freight revenue mile fraction,
6 weighted to reflect the person's relative gross receipts
7 from passenger and freight airline transportation.
8 (e) Combined apportionment. Where 2 or more persons are
9engaged in a unitary business as described in subsection
10(a)(27) of Section 1501, a part of which is conducted in this
11State by one or more members of the group, the business income
12attributable to this State by any such member or members shall
13be apportioned by means of the combined apportionment method.
14 (f) Alternative allocation. If the allocation and
15apportionment provisions of subsections (a) through (e) and of
16subsection (h) do not, for taxable years ending before December
1731, 2008, fairly represent the extent of a person's business
18activity in this State, or, for taxable years ending on or
19after December 31, 2008, fairly represent the market for the
20person's goods, services, or other sources of business income,
21the person may petition for, or the Director may, without a
22petition, permit or require, in respect of all or any part of
23the person's business activity, if reasonable:
24 (1) Separate accounting;
25 (2) The exclusion of any one or more factors;
26 (3) The inclusion of one or more additional factors

10100SB0690ham002- 359 -LRB101 04451 SMS 61506 a
1 which will fairly represent the person's business
2 activities or market in this State; or
3 (4) The employment of any other method to effectuate an
4 equitable allocation and apportionment of the person's
5 business income.
6 (g) Cross reference. For allocation of business income by
7residents, see Section 301(a).
8 (h) For tax years ending on or after December 31, 1998, the
9apportionment factor of persons who apportion their business
10income to this State under subsection (a) shall be equal to:
11 (1) for tax years ending on or after December 31, 1998
12 and before December 31, 1999, 16 2/3% of the property
13 factor plus 16 2/3% of the payroll factor plus 66 2/3% of
14 the sales factor;
15 (2) for tax years ending on or after December 31, 1999
16 and before December 31, 2000, 8 1/3% of the property factor
17 plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
18 factor;
19 (3) for tax years ending on or after December 31, 2000,
20 the sales factor.
21If, in any tax year ending on or after December 31, 1998 and
22before December 31, 2000, the denominator of the payroll,
23property, or sales factor is zero, the apportionment factor
24computed in paragraph (1) or (2) of this subsection for that
25year shall be divided by an amount equal to 100% minus the
26percentage weight given to each factor whose denominator is

10100SB0690ham002- 360 -LRB101 04451 SMS 61506 a
1equal to zero.
2(Source: P.A. 99-642, eff. 7-28-16; 100-201, eff. 8-18-17.)
3 (35 ILCS 5/710) (from Ch. 120, par. 7-710)
4 Sec. 710. Withholding from lottery winnings.
5 (a) In general.
6 (1) Any person making a payment to a resident or
7 nonresident of winnings under the Illinois Lottery Law and
8 not required to withhold Illinois income tax from such
9 payment under Subsection (b) of Section 701 of this Act
10 because those winnings are not subject to Federal income
11 tax withholding, must withhold Illinois income tax from
12 such payment at a rate equal to the percentage tax rate for
13 individuals provided in subsection (b) of Section 201,
14 provided that withholding is not required if such payment
15 of winnings is less than $1,000.
16 (2) In the case of an assignment of a lottery prize
17 under Section 13.1 of the Illinois Lottery Law, any person
18 making a payment of the purchase price after December 31,
19 2013, shall withhold from the amount of each payment at a
20 rate equal to the percentage tax rate for individuals
21 provided in subsection (b) of Section 201.
22 (3) Any person making a payment after December 31, 2019
23 to a resident or nonresident of winnings from pari-mutuel
24 wagering conducted at a wagering facility licensed under
25 the Illinois Horse Racing Act of 1975 or from gambling

10100SB0690ham002- 361 -LRB101 04451 SMS 61506 a
1 games conducted on a riverboat or in a casino or
2 organization gaming facility licensed under the Illinois
3 Gambling Act must withhold Illinois income tax from such
4 payment at a rate equal to the percentage tax rate for
5 individuals provided in subsection (b) of Section 201,
6 provided that the person making the payment is required to
7 withhold under Section 3402(q) of the Internal Revenue
8 Code.
9 (b) Credit for taxes withheld. Any amount withheld under
10Subsection (a) shall be a credit against the Illinois income
11tax liability of the person to whom the payment of winnings was
12made for the taxable year in which that person incurred an
13Illinois income tax liability with respect to those winnings.
14(Source: P.A. 98-496, eff. 1-1-14.)
15 Section 35-40. The Joliet Regional Port District Act is
16amended by changing Section 5.1 as follows:
17 (70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)
18 Sec. 5.1. Riverboat and casino gambling. Notwithstanding
19any other provision of this Act, the District may not regulate
20the operation, conduct, or navigation of any riverboat gambling
21casino licensed under the Illinois Riverboat Gambling Act, and
22the District may not license, tax, or otherwise levy any
23assessment of any kind on any riverboat gambling casino
24licensed under the Illinois Riverboat Gambling Act. The General

10100SB0690ham002- 362 -LRB101 04451 SMS 61506 a
1Assembly declares that the powers to regulate the operation,
2conduct, and navigation of riverboat gambling casinos and to
3license, tax, and levy assessments upon riverboat gambling
4casinos are exclusive powers of the State of Illinois and the
5Illinois Gaming Board as provided in the Illinois Riverboat
6Gambling Act.
7(Source: P.A. 87-1175.)
8 Section 35-45. The Consumer Installment Loan Act is amended
9by changing Section 12.5 as follows:
10 (205 ILCS 670/12.5)
11 Sec. 12.5. Limited purpose branch.
12 (a) Upon the written approval of the Director, a licensee
13may maintain a limited purpose branch for the sole purpose of
14making loans as permitted by this Act. A limited purpose branch
15may include an automatic loan machine. No other activity shall
16be conducted at the site, including but not limited to,
17accepting payments, servicing the accounts, or collections.
18 (b) The licensee must submit an application for a limited
19purpose branch to the Director on forms prescribed by the
20Director with an application fee of $300. The approval for the
21limited purpose branch must be renewed concurrently with the
22renewal of the licensee's license along with a renewal fee of
23$300 for the limited purpose branch.
24 (c) The books, accounts, records, and files of the limited

10100SB0690ham002- 363 -LRB101 04451 SMS 61506 a
1purpose branch's transactions shall be maintained at the
2licensee's licensed location. The licensee shall notify the
3Director of the licensed location at which the books, accounts,
4records, and files shall be maintained.
5 (d) The licensee shall prominently display at the limited
6purpose branch the address and telephone number of the
7licensee's licensed location.
8 (e) No other business shall be conducted at the site of the
9limited purpose branch unless authorized by the Director.
10 (f) The Director shall make and enforce reasonable rules
11for the conduct of a limited purpose branch.
12 (g) A limited purpose branch may not be located within
131,000 feet of a facility operated by an inter-track wagering
14licensee or an organization licensee subject to the Illinois
15Horse Racing Act of 1975, on a riverboat or in a casino subject
16to the Illinois Riverboat Gambling Act, or within 1,000 feet of
17the location at which the riverboat docks or within 1,000 feet
18of a casino.
19(Source: P.A. 90-437, eff. 1-1-98.)
20 Section 35-50. The Illinois Horse Racing Act of 1975 is
21amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
2220, 21, 24, 25, 26, 26.8, 26.9, 27, 29, 30, 30.5, 31, 31.1,
2332.1, 36, 40, and 54.75 and by adding Sections 3.32, 3.33,
243.34, 3.35, 19.5, 34.3, and 56 as follows:

10100SB0690ham002- 364 -LRB101 04451 SMS 61506 a
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)
25 Sec. 3.11. "Organization Licensee" means any person

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1receiving an organization license from the Board to conduct a
2race meeting or meetings. With respect only to organization
3gaming, "organization licensee" includes the authorization for
4an organization gaming license under subsection (a) of Section
556 of this Act.
6(Source: P.A. 79-1185.)
7 (230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)
8 Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
9system of wagering" means a form of wagering on the outcome of
10horse races in which wagers are made in various denominations
11on a horse or horses and all wagers for each race are pooled
12and held by a licensee for distribution in a manner approved by
13the Board. "Pari-mutuel system of wagering" shall not include
14wagering on historic races. Wagers may be placed via any method
15or at any location authorized under this Act.
16(Source: P.A. 96-762, eff. 8-25-09.)
17 (230 ILCS 5/3.32 new)
18 Sec. 3.32. Gross receipts. "Gross receipts" means the total
19amount of money exchanged for the purchase of chips, tokens, or
20electronic cards by riverboat or casino patrons or organization
21gaming patrons.
22 (230 ILCS 5/3.33 new)
23 Sec. 3.33. Adjusted gross receipts. "Adjusted gross

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1receipts" means the gross receipts less winnings paid to
2wagerers.
3 (230 ILCS 5/3.34 new)
4 Sec. 3.34. Organization gaming facility. "Organization
5gaming facility" means that portion of an organization
6licensee's racetrack facilities at which gaming authorized
7under Section 7.7 of the Illinois Gambling Act is conducted.
8 (230 ILCS 5/3.35 new)
9 Sec. 3.35. Organization gaming license. "Organization
10gaming license" means a license issued by the Illinois Gaming
11Board under Section 7.7 of the Illinois Gambling Act
12authorizing gaming pursuant to that Section at an organization
13gaming facility.
14 (230 ILCS 5/6) (from Ch. 8, par. 37-6)
15 Sec. 6. Restrictions on Board members.
16 (a) No person shall be appointed a member of the Board or
17continue to be a member of the Board if the person or any
18member of their immediate family is a member of the Board of
19Directors, employee, or financially interested in any of the
20following: (i) any licensee or other person who has applied for
21racing dates to the Board, or the operations thereof including,
22but not limited to, concessions, data processing, track
23maintenance, track security, and pari-mutuel operations,

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

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

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1company, or entity doing business with the Board.
2 (f) A Board member or employee shall not use or attempt to
3use his or her official position to secure, or attempt to
4secure, any privilege, advantage, favor, or influence for
5himself or herself or others. No Board member or employee,
6within a period of one year immediately preceding nomination by
7the Governor or employment, shall have been employed or
8received compensation or fees for services from a person or
9entity, or its parent or affiliate, that has engaged in
10business with the Board, a licensee or a licensee under the
11Illinois Gambling Act. In addition, all Board members and
12employees are subject to the restrictions set forth in Section
135-45 of the State Officials and Employees Ethics Act.
14(Source: P.A. 89-16, eff. 5-30-95.)
15 (230 ILCS 5/9) (from Ch. 8, par. 37-9)
16 Sec. 9. The Board shall have all powers necessary and
17proper to fully and effectively execute the provisions of this
18Act, including, but not limited to, the following:
19 (a) The Board is vested with jurisdiction and supervision
20over all race meetings in this State, over all licensees doing
21business in this State, over all occupation licensees, and over
22all persons on the facilities of any licensee. Such
23jurisdiction shall include the power to issue licenses to the
24Illinois Department of Agriculture authorizing the pari-mutuel
25system of wagering on harness and Quarter Horse races held (1)

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1at the Illinois State Fair in Sangamon County, and (2) at the
2DuQuoin State Fair in Perry County. The jurisdiction of the
3Board shall also include the power to issue licenses to county
4fairs which are eligible to receive funds pursuant to the
5Agricultural Fair Act, as now or hereafter amended, or their
6agents, authorizing the pari-mutuel system of wagering on horse
7races conducted at the county fairs receiving such licenses.
8Such licenses shall be governed by subsection (n) of this
9Section.
10 Upon application, the Board shall issue a license to the
11Illinois Department of Agriculture to conduct harness and
12Quarter Horse races at the Illinois State Fair and at the
13DuQuoin State Fairgrounds during the scheduled dates of each
14fair. The Board shall not require and the Department of
15Agriculture shall be exempt from the requirements of Sections
1615.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
17(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
18and 25. The Board and the Department of Agriculture may extend
19any or all of these exemptions to any contractor or agent
20engaged by the Department of Agriculture to conduct its race
21meetings when the Board determines that this would best serve
22the public interest and the interest of horse racing.
23 Notwithstanding any provision of law to the contrary, it
24shall be lawful for any licensee to operate pari-mutuel
25wagering or contract with the Department of Agriculture to
26operate pari-mutuel wagering at the DuQuoin State Fairgrounds

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

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

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

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1their compensation shall be determined by the Board and be paid
2in the same manner as other employees of the Board under this
3Act.
4 (i) The Board shall require that there shall be 3 stewards
5at each horse race meeting, at least 2 of whom shall be named
6and appointed by the Board. Stewards appointed or approved by
7the Board, while performing duties required by this Act or by
8the Board, shall be entitled to the same rights and immunities
9as granted to Board members and Board employees in Section 10
10of this Act.
11 (j) The Board may discharge any Board employee who fails or
12refuses for any reason to comply with the rules and regulations
13of the Board, or who, in the opinion of the Board, is guilty of
14fraud, dishonesty or who is proven to be incompetent. The Board
15shall have no right or power to determine who shall be
16officers, directors or employees of any licensee, or their
17salaries except the Board may, by rule, require that all or any
18officials or employees in charge of or whose duties relate to
19the actual running of races be approved by the Board.
20 (k) The Board is vested with the power to appoint delegates
21to execute any of the powers granted to it under this Section
22for the purpose of administering this Act and any rules or
23regulations promulgated in accordance with this Act.
24 (l) The Board is vested with the power to impose civil
25penalties of up to $5,000 against an individual and up to
26$10,000 against a licensee for each violation of any provision

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

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1or their agents, licensed pursuant to this subsection. However,
2the Board may waive any provision of this Act or its rules or
3regulations which would otherwise apply to such county fairs or
4their agents.
5 (o) Whenever the Board is authorized or required by law to
6consider some aspect of criminal history record information for
7the purpose of carrying out its statutory powers and
8responsibilities, then, upon request and payment of fees in
9conformance with the requirements of Section 2605-400 of the
10Department of State Police Law (20 ILCS 2605/2605-400), the
11Department of State Police is authorized to furnish, pursuant
12to positive identification, such information contained in
13State files as is necessary to fulfill the request.
14 (p) To insure the convenience, comfort, and wagering
15accessibility of race track patrons, to provide for the
16maximization of State revenue, and to generate increases in
17purse allotments to the horsemen, the Board shall require any
18licensee to staff the pari-mutuel department with adequate
19personnel.
20(Source: P.A. 97-1060, eff. 8-24-12.)
21 (230 ILCS 5/15) (from Ch. 8, par. 37-15)
22 Sec. 15. (a) The Board shall, in its discretion, issue
23occupation licenses to horse owners, trainers, harness
24drivers, jockeys, agents, apprentices, grooms, stable foremen,
25exercise persons, veterinarians, valets, blacksmiths,

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1concessionaires and others designated by the Board whose work,
2in whole or in part, is conducted upon facilities within the
3State. Such occupation licenses will be obtained prior to the
4persons engaging in their vocation upon such facilities. The
5Board shall not license pari-mutuel clerks, parking
6attendants, security guards and employees of concessionaires.
7No occupation license shall be required of any person who works
8at facilities within this State as a pari-mutuel clerk, parking
9attendant, security guard or as an employee of a
10concessionaire. Concessionaires of the Illinois State Fair and
11DuQuoin State Fair and employees of the Illinois Department of
12Agriculture shall not be required to obtain an occupation
13license by the Board.
14 (b) Each application for an occupation license shall be on
15forms prescribed by the Board. Such license, when issued, shall
16be for the period ending December 31 of each year, except that
17the Board in its discretion may grant 3-year licenses. The
18application shall be accompanied by a fee of not more than $25
19per year or, in the case of 3-year occupation license
20applications, a fee of not more than $60. Each applicant shall
21set forth in the application his full name and address, and if
22he had been issued prior occupation licenses or has been
23licensed in any other state under any other name, such name,
24his age, whether or not a permit or license issued to him in
25any other state has been suspended or revoked and if so whether
26such suspension or revocation is in effect at the time of the

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

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1 have justified the Board in refusing to issue such
2 occupation license; or
3 (4) for any other just cause.
4 (e) Each applicant shall submit his or her fingerprints
5to the Department of State Police in the form and manner
6prescribed by the Department of State Police. These
7fingerprints shall be checked against the fingerprint records
8now and hereafter filed in the Department of State Police and
9Federal Bureau of Investigation criminal history records
10databases. The Department of State Police shall charge a fee
11for conducting the criminal history records check, which shall
12be deposited in the State Police Services Fund and shall not
13exceed the actual cost of the records check. The Department of
14State Police shall furnish, pursuant to positive
15identification, records of conviction to the Board. Each
16applicant for licensure shall submit with his occupation
17license application, on forms provided by the Board, 2 sets of
18his fingerprints. All such applicants shall appear in person at
19the location designated by the Board for the purpose of
20submitting such sets of fingerprints; however, with the prior
21approval of a State steward, an applicant may have such sets of
22fingerprints taken by an official law enforcement agency and
23submitted to the Board.
24 (f) The Board may, in its discretion, issue an occupation
25license without submission of fingerprints if an applicant has
26been duly licensed in another recognized racing jurisdiction

10100SB0690ham002- 380 -LRB101 04451 SMS 61506 a
1after submitting fingerprints that were subjected to a Federal
2Bureau of Investigation criminal history background check in
3that jurisdiction.
4 (g) Beginning on the date when any organization licensee
5begins conducting gaming pursuant to an organization gaming
6license issued under the Illinois Gambling Act, the Board may
7charge each applicant a reasonable nonrefundable fee to defray
8the costs associated with the background investigation
9conducted by the Board. This fee shall be exclusive of any
10other fee or fees charged in connection with an application for
11and, if applicable, the issuance of, an organization gaming
12license. If the costs of the investigation exceed the amount of
13the fee charged, the Board shall immediately notify the
14applicant of the additional amount owed, payment of which must
15be submitted to the Board within 7 days after such
16notification. All information, records, interviews, reports,
17statements, memoranda, or other data supplied to or used by the
18Board in the course of its review or investigation of an
19applicant for a license or renewal under this Act shall be
20privileged, strictly confidential, and shall be used only for
21the purpose of evaluating an applicant for a license or a
22renewal. Such information, records, interviews, reports,
23statements, memoranda, or other data shall not be admissible as
24evidence, nor discoverable, in any action of any kind in any
25court or before any tribunal, board, agency, or person, except
26for any action deemed necessary by the Board.

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1(Source: P.A. 93-418, eff. 1-1-04.)
2 (230 ILCS 5/18) (from Ch. 8, par. 37-18)
3 Sec. 18. (a) Together with its application, each applicant
4for racing dates shall deliver to the Board a certified check
5or bank draft payable to the order of the Board for $1,000. In
6the event the applicant applies for racing dates in 2 or 3
7successive calendar years as provided in subsection (b) of
8Section 21, the fee shall be $2,000. Filing fees shall not be
9refunded in the event the application is denied. Beginning on
10the date when any organization licensee begins conducting
11gaming pursuant to an organization gaming license issued under
12the Illinois Gambling Act, the application fee for racing dates
13imposed by this subsection (a) shall be $10,000 and the
14application fee for racing dates in 2 or 3 successive calendar
15years as provided in subsection (b) of Section 21 shall be
16$20,000. All filing fees shall be deposited into the Horse
17Racing Fund.
18 (b) In addition to the filing fee imposed by subsection (a)
19of $1000 and the fees provided in subsection (j) of Section 20,
20each organization licensee shall pay a license fee of $100 for
21each racing program on which its daily pari-mutuel handle is
22$400,000 or more but less than $700,000, and a license fee of
23$200 for each racing program on which its daily pari-mutuel
24handle is $700,000 or more. The additional fees required to be
25paid under this Section by this amendatory Act of 1982 shall be

10100SB0690ham002- 382 -LRB101 04451 SMS 61506 a
1remitted by the organization licensee to the Illinois Racing
2Board with each day's graduated privilege tax or pari-mutuel
3tax and breakage as provided under Section 27. Beginning on the
4date when any organization licensee begins conducting gaming
5pursuant to an organization gaming license issued under the
6Illinois Gambling Act, the license fee imposed by this
7subsection (b) shall be $200 for each racing program on which
8the organization licensee's daily pari-mutuel handle is
9$100,000 or more, but less than $400,000, and the license fee
10imposed by this subsection (b) shall be $400 for each racing
11program on which the organization licensee's daily pari-mutuel
12handle is $400,000 or more.
13 (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
14Municipal Code," approved May 29, 1961, as now or hereafter
15amended, shall not apply to any license under this Act.
16(Source: P.A. 97-1060, eff. 8-24-12.)
17 (230 ILCS 5/19) (from Ch. 8, par. 37-19)
18 Sec. 19. (a) No organization license may be granted to
19conduct a horse race meeting:
20 (1) except as provided in subsection (c) of Section 21
21 of this Act, to any person at any place within 35 miles of
22 any other place licensed by the Board to hold a race
23 meeting on the same date during the same hours, the mileage
24 measurement used in this subsection (a) shall be certified
25 to the Board by the Bureau of Systems and Services in the

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

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1 track suitable for the type of racing intended to be held
2 by the applicant and for the accommodation of the public.
3 (b) (Blank) Horse racing on Sunday shall be prohibited
4unless authorized by ordinance or referendum of the
5municipality in which a race track or any of its appurtenances
6or facilities are located, or utilized.
7 (c) If any person is ineligible to receive an organization
8license because of any of the matters set forth in subsection
9(a) (2) or subsection (a) (3) of this Section, any other or
10separate person that either (i) controls, directly or
11indirectly, such ineligible person or (ii) is controlled,
12directly or indirectly, by such ineligible person or by a
13person which controls, directly or indirectly, such ineligible
14person shall also be ineligible.
15(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
16 (230 ILCS 5/19.5 new)
17 Sec. 19.5. Standardbred racetrack in Cook County.
18Notwithstanding anything in this Act to the contrary, in
19addition to organization licenses issued by the Board on the
20effective date of this amendatory Act of the 101st General
21Assembly, the Board shall issue an organization license limited
22to standardbred racing to a racetrack located in one of the
23following townships of Cook County: Bloom, Bremen, Calumet,
24Orland, Rich, Thornton, or Worth. This additional organization
25license shall not be issued within a 35-mile radius of another

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1organization license issued by the Board on the effective date
2of this amendatory Act of the 101st General Assembly, unless
3the person having operating control of such racetrack has given
4written consent to the organization licensee applicant, which
5consent must be filed with the Board at or prior to the time
6application is made. The organization license shall be granted
7upon application, and the licensee shall have all of the
8current and future rights of existing Illinois racetracks,
9including, but not limited to, the ability to obtain an
10inter-track wagering license, the ability to obtain
11inter-track wagering location licenses, the ability to obtain
12an organization gaming license pursuant to the Illinois
13Gambling Act with 1,200 gaming positions, and the ability to
14offer Internet wagering on horse racing.
15 (230 ILCS 5/20) (from Ch. 8, par. 37-20)
16 Sec. 20. (a) Any person desiring to conduct a horse race
17meeting may apply to the Board for an organization license. The
18application shall be made on a form prescribed and furnished by
19the Board. The application shall specify:
20 (1) the dates on which it intends to conduct the horse
21 race meeting, which dates shall be provided under Section
22 21;
23 (2) the hours of each racing day between which it
24 intends to hold or conduct horse racing at such meeting;
25 (3) the location where it proposes to conduct the

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

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1 corporation, the names and post office addresses of all
2 officers, stockholders and directors; or if such
3 stockholders hold stock as a nominee or fiduciary, the
4 names and post office addresses of the parties these
5 persons, partnerships, corporations, or trusts who are the
6 beneficial owners thereof or who are beneficially
7 interested therein; and if the applicant is a partnership,
8 the names and post office addresses of all partners,
9 general or limited; if the applicant is a limited liability
10 company, the names and addresses of the manager and
11 members; and if the applicant is any other entity, the
12 names and addresses of all officers or other authorized
13 persons of the entity corporation, the name of the state of
14 its incorporation shall be specified.
15 (d) The applicant shall execute and file with the Board a
16good faith affirmative action plan to recruit, train, and
17upgrade minorities in all classifications within the
18association.
19 (e) With such application there shall be delivered to the
20Board a certified check or bank draft payable to the order of
21the Board for an amount equal to $1,000. All applications for
22the issuance of an organization license shall be filed with the
23Board before August 1 of the year prior to the year for which
24application is made and shall be acted upon by the Board at a
25meeting to be held on such date as shall be fixed by the Board
26during the last 15 days of September of such prior year. At

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1such meeting, the Board shall announce the award of the racing
2meets, live racing schedule, and designation of host track to
3the applicants and its approval or disapproval of each
4application. No announcement shall be considered binding until
5a formal order is executed by the Board, which shall be
6executed no later than October 15 of that prior year. Absent
7the agreement of the affected organization licensees, the Board
8shall not grant overlapping race meetings to 2 or more tracks
9that are within 100 miles of each other to conduct the
10thoroughbred racing.
11 (e-1) The Board shall award standardbred racing dates to
12organization licensees with an organization gaming license
13pursuant to the following schedule:
14 (1) For the first calendar year of operation of
15 gambling games by an organization gaming licensee under
16 this amendatory Act of the 101st General Assembly, when a
17 single entity requests standardbred racing dates, the
18 Board shall award no fewer than 100 days of racing. The
19 100-day requirement may be reduced to no fewer than 80 days
20 if no dates are requested for the first 3 months of a
21 calendar year. If more than one entity requests
22 standardbred racing dates, the Board shall award no fewer
23 than 140 days of racing between the applicants.
24 (2) For the second calendar year of operation of
25 gambling games by an organization gaming licensee under
26 this amendatory Act of the 101st General Assembly, when a

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1 single entity requests standardbred racing dates, the
2 Board shall award no fewer than 100 days of racing. The
3 100-day requirement may be reduced to no fewer than 80 days
4 if no dates are requested for the first 3 months of a
5 calendar year. If more than one entity requests
6 standardbred racing dates, the Board shall award no fewer
7 than 160 days of racing between the applicants.
8 (3) For the third calendar year of operation of
9 gambling games by an organization gaming licensee under
10 this amendatory Act of the 101st General Assembly, and each
11 calendar year thereafter, when a single entity requests
12 standardbred racing dates, the Board shall award no fewer
13 than 120 days of racing. The 120-day requirement may be
14 reduced to no fewer than 100 days if no dates are requested
15 for the first 3 months of a calendar year. If more than one
16 entity requests standardbred racing dates, the Board shall
17 award no fewer than 200 days of racing between the
18 applicants.
19 An organization licensee shall apply for racing dates
20pursuant to this subsection (e-1). In awarding racing dates
21under this subsection (e-1), the Board shall have the
22discretion to allocate those standardbred racing dates among
23these organization licensees.
24 (e-2) The Board shall award thoroughbred racing days to
25Cook County organization licensees pursuant to the following
26schedule:

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1 (1) During the first year in which only one
2 organization licensee is awarded an organization gaming
3 license, the Board shall award no fewer than 110 days of
4 racing.
5 During the second year in which only one organization
6 licensee is awarded an organization gaming license, the
7 Board shall award no fewer than 115 racing days.
8 During the third year and every year thereafter, in
9 which only one organization licensee is awarded an
10 organization gaming license, the Board shall award no fewer
11 than 120 racing days.
12 (2) During the first year in which 2 organization
13 licensees are awarded an organization gaming license, the
14 Board shall award no fewer than 139 total racing days.
15 During the second year in which 2 organization
16 licensees are awarded an organization gaming license, the
17 Board shall award no fewer than 160 total racing days.
18 During the third year and every year thereafter in
19 which 2 organization licensees are awarded an organization
20 gaming license, the Board shall award no fewer than 174
21 total racing days.
22 A Cook County organization licensee shall apply for racing
23dates pursuant to this subsection (e-2). In awarding racing
24dates under this subsection (e-2), the Board shall have the
25discretion to allocate those thoroughbred racing dates among
26these Cook County organization licensees.

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1 (e-3) In awarding racing dates for calendar year 2020 and
2thereafter in connection with a racetrack in Madison County,
3the Board shall award racing dates and such organization
4licensee shall run at least 700 thoroughbred races at the
5racetrack 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 organization gaming licensee
9located in Madison County requests racing dates resulting in
10less than 700 live thoroughbred races at its racetrack
11facility, the organization gaming licensee may not conduct
12gaming pursuant to an organization gaming license issued under
13the Illinois Gambling Act for the calendar year of such
14requested live races.
15 (e-4) Notwithstanding the provisions of Section 7.7 of the
16Illinois Gambling Act or any provision of this Act other than
17subsections (e-3) and (e-4.5), for each calendar year for which
18an organization gaming licensee requests thoroughbred racing
19dates which results in a number of live races under its
20organization license that is less than the total number of live
21races which it conducted in 2017 at its racetrack facility, the
22organization gaming licensee may not conduct gaming pursuant to
23its organization gaming license for the calendar year of such
24requested live races.
25 (e-4.1) Notwithstanding the provisions of Section 7.7 of
26the Illinois Gambling Act or any provision of this Act other

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1than subsections (e-3) and (e-4.5), for each calendar year for
2which an organization licensee requests racing dates for
3standardbred racing which results in a number of live races
4that is less than the total number of live races required in
5subsection (e-1), the organization gaming licensee may not
6conduct gaming pursuant to its organization gaming license for
7the calendar year of such requested live races.
8 (e-4.5) The Board shall award the minimum live racing
9guarantees contained in subsections (e-1), (e-2), and (e-3) to
10ensure that each organization licensee shall individually run a
11sufficient number of races per year to qualify for an
12organization gaming license under this Act. The General
13Assembly finds that the minimum live racing guarantees
14contained in subsections (e-1), (e-2), and (e-3) are in the
15best interest of the sport of horse racing, and that such
16guarantees may only be reduced in the calendar year in which
17they will be conducted in the limited circumstances described
18in this subsection. The Board may decrease the number of racing
19days without affecting an organization licensee's ability to
20conduct gaming pursuant to an organization gaming license
21issued under the Illinois Gambling Act only if the Board
22determines, after notice and hearing, that:
23 (i) a decrease is necessary to maintain a sufficient
24 number of betting interests per race to ensure the
25 integrity of racing;
26 (ii) there are unsafe track conditions due to weather

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1 or acts of God;
2 (iii) there is an agreement between an organization
3 licensee and the breed association that is applicable to
4 the involved live racing guarantee, such association
5 representing either the largest number of thoroughbred
6 owners and trainers or the largest number of standardbred
7 owners, trainers and drivers who race horses at the
8 involved organization licensee's racing meeting, so long
9 as the agreement does not compromise the integrity of the
10 sport of horse racing; or
11 (iv) the horse population or purse levels are
12 insufficient to provide the number of racing opportunities
13 otherwise required in this Act.
14 In decreasing the number of racing dates in accordance with
15this subsection, the Board shall hold a hearing and shall
16provide the public and all interested parties notice and an
17opportunity to be heard. The Board shall accept testimony from
18all interested parties, including any association representing
19owners, trainers, jockeys, or drivers who will be affected by
20the decrease in racing dates. The Board shall provide a written
21explanation of the reasons for the decrease and the Board's
22findings. The written explanation shall include a listing and
23content of all communication between any party and any Illinois
24Racing Board member or staff that does not take place at a
25public meeting of the Board.
26 (e-5) In reviewing an application for the purpose of

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1granting an organization license consistent with the best
2interests of the public and the sport of horse racing, the
3Board shall consider:
4 (1) the character, reputation, experience, and
5 financial integrity of the applicant and of any other
6 separate person that either:
7 (i) controls the applicant, directly or
8 indirectly, or
9 (ii) is controlled, directly or indirectly, by
10 that applicant or by a person who controls, directly or
11 indirectly, that applicant;
12 (2) the applicant's facilities or proposed facilities
13 for conducting horse racing;
14 (3) the total revenue without regard to Section 32.1 to
15 be derived by the State and horsemen from the applicant's
16 conducting a race meeting;
17 (4) the applicant's good faith affirmative action plan
18 to recruit, train, and upgrade minorities in all employment
19 classifications;
20 (5) the applicant's financial ability to purchase and
21 maintain adequate liability and casualty insurance;
22 (6) the applicant's proposed and prior year's
23 promotional and marketing activities and expenditures of
24 the applicant associated with those activities;
25 (7) an agreement, if any, among organization licensees
26 as provided in subsection (b) of Section 21 of this Act;

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1 and
2 (8) the extent to which the applicant exceeds or meets
3 other standards for the issuance of an organization license
4 that the Board shall adopt by rule.
5 In granting organization licenses and allocating dates for
6horse race meetings, the Board shall have discretion to
7determine an overall schedule, including required simulcasts
8of Illinois races by host tracks that will, in its judgment, be
9conducive to the best interests of the public and the sport of
10horse racing.
11 (e-10) The Illinois Administrative Procedure Act shall
12apply to administrative procedures of the Board under this Act
13for the granting of an organization license, except that (1)
14notwithstanding the provisions of subsection (b) of Section
1510-40 of the Illinois Administrative Procedure Act regarding
16cross-examination, the Board may prescribe rules limiting the
17right of an applicant or participant in any proceeding to award
18an organization license to conduct cross-examination of
19witnesses at that proceeding where that cross-examination
20would unduly obstruct the timely award of an organization
21license under subsection (e) of Section 20 of this Act; (2) the
22provisions of Section 10-45 of the Illinois Administrative
23Procedure Act regarding proposals for decision are excluded
24under this Act; (3) notwithstanding the provisions of
25subsection (a) of Section 10-60 of the Illinois Administrative
26Procedure Act regarding ex parte communications, the Board may

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1prescribe rules allowing ex parte communications with
2applicants or participants in a proceeding to award an
3organization license where conducting those communications
4would be in the best interest of racing, provided all those
5communications are made part of the record of that proceeding
6pursuant to subsection (c) of Section 10-60 of the Illinois
7Administrative Procedure Act; (4) the provisions of Section 14a
8of this Act and the rules of the Board promulgated under that
9Section shall apply instead of the provisions of Article 10 of
10the Illinois Administrative Procedure Act regarding
11administrative law judges; and (5) the provisions of subsection
12(d) of Section 10-65 of the Illinois Administrative Procedure
13Act that prevent summary suspension of a license pending
14revocation or other action shall not apply.
15 (f) The Board may allot racing dates to an organization
16licensee for more than one calendar year but for no more than 3
17successive calendar years in advance, provided that the Board
18shall review such allotment for more than one calendar year
19prior to each year for which such allotment has been made. The
20granting of an organization license to a person constitutes a
21privilege to conduct a horse race meeting under the provisions
22of this Act, and no person granted an organization license
23shall be deemed to have a vested interest, property right, or
24future expectation to receive an organization license in any
25subsequent year as a result of the granting of an organization
26license. Organization licenses shall be subject to revocation

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1if the organization licensee has violated any provision of this
2Act or the rules and regulations promulgated under this Act or
3has been convicted of a crime or has failed to disclose or has
4stated falsely any information called for in the application
5for an organization license. Any organization license
6revocation proceeding shall be in accordance with Section 16
7regarding suspension and revocation of occupation licenses.
8 (f-5) If, (i) an applicant does not file an acceptance of
9the racing dates awarded by the Board as required under part
10(1) of subsection (h) of this Section 20, or (ii) an
11organization licensee has its license suspended or revoked
12under this Act, the Board, upon conducting an emergency hearing
13as provided for in this Act, may reaward on an emergency basis
14pursuant to rules established by the Board, racing dates not
15accepted or the racing dates associated with any suspension or
16revocation period to one or more organization licensees, new
17applicants, or any combination thereof, upon terms and
18conditions that the Board determines are in the best interest
19of racing, provided, the organization licensees or new
20applicants receiving the awarded racing dates file an
21acceptance of those reawarded racing dates as required under
22paragraph (1) of subsection (h) of this Section 20 and comply
23with the other provisions of this Act. The Illinois
24Administrative Procedure Act shall not apply to the
25administrative procedures of the Board in conducting the
26emergency hearing and the reallocation of racing dates on an

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1emergency basis.
2 (g) (Blank).
3 (h) The Board shall send the applicant a copy of its
4formally executed order by certified mail addressed to the
5applicant at the address stated in his application, which
6notice shall be mailed within 5 days of the date the formal
7order is executed.
8 Each applicant notified shall, within 10 days after receipt
9of the final executed order of the Board awarding racing dates:
10 (1) file with the Board an acceptance of such award in
11 the form prescribed by the Board;
12 (2) pay to the Board an additional amount equal to $110
13 for each racing date awarded; and
14 (3) file with the Board the bonds required in Sections
15 21 and 25 at least 20 days prior to the first day of each
16 race meeting.
17Upon compliance with the provisions of paragraphs (1), (2), and
18(3) of this subsection (h), the applicant shall be issued an
19organization license.
20 If any applicant fails to comply with this Section or fails
21to pay the organization license fees herein provided, no
22organization license shall be issued to such applicant.
23(Source: P.A. 97-333, eff. 8-12-11.)
24 (230 ILCS 5/21) (from Ch. 8, par. 37-21)
25 Sec. 21. (a) Applications for organization licenses must be

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1filed with the Board at a time and place prescribed by the
2rules and regulations of the Board. The Board shall examine the
3applications within 21 days after the date allowed for filing
4with respect to their conformity with this Act and such rules
5and regulations as may be prescribed by the Board. If any
6application does not comply with this Act or the rules and
7regulations prescribed by the Board, such application may be
8rejected and an organization license refused to the applicant,
9or the Board may, within 21 days of the receipt of such
10application, advise the applicant of the deficiencies of the
11application under the Act or the rules and regulations of the
12Board, and require the submittal of an amended application
13within a reasonable time determined by the Board; and upon
14submittal of the amended application by the applicant, the
15Board may consider the application consistent with the process
16described in subsection (e-5) of Section 20 of this Act. If it
17is found to be in compliance with this Act and the rules and
18regulations of the Board, the Board may then issue an
19organization license to such applicant.
20 (b) The Board may exercise discretion in granting racing
21dates to qualified applicants different from those requested by
22the applicants in their applications. However, if all eligible
23applicants for organization licenses whose tracks are located
24within 100 miles of each other execute and submit to the Board
25a written agreement among such applicants as to the award of
26racing dates, including where applicable racing programs, for

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1up to 3 consecutive years, then subject to annual review of
2each applicant's compliance with Board rules and regulations,
3provisions of this Act and conditions contained in annual dates
4orders issued by the Board, the Board may grant such dates and
5programs to such applicants as so agreed by them if the Board
6determines that the grant of these racing dates is in the best
7interests of racing. The Board shall treat any such agreement
8as the agreement signatories' joint and several application for
9racing dates during the term of the agreement.
10 (c) Where 2 or more applicants propose to conduct horse
11race meetings within 35 miles of each other, as certified to
12the Board under Section 19 (a) (1) of this Act, on conflicting
13dates, the Board may determine and grant the number of racing
14days to be awarded to the several applicants in accordance with
15the provisions of subsection (e-5) of Section 20 of this Act.
16 (d) (Blank).
17 (e) Prior to the issuance of an organization license, the
18applicant shall file with the Board a bond payable to the State
19of Illinois in the sum of $200,000, executed by the applicant
20and a surety company or companies authorized to do business in
21this State, and conditioned upon the payment by the
22organization licensee of all taxes due under Section 27, other
23monies due and payable under this Act, all purses due and
24payable, and that the organization licensee will upon
25presentation of the winning ticket or tickets distribute all
26sums due to the patrons of pari-mutuel pools. Beginning on the

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1date when any organization licensee begins conducting gaming
2pursuant to an organization gaming license issued under the
3Illinois Gambling Act, the amount of the bond required under
4this subsection (e) shall be $500,000.
5 (f) Each organization license shall specify the person to
6whom it is issued, the dates upon which horse racing is
7permitted, and the location, place, track, or enclosure where
8the horse race meeting is to be held.
9 (g) Any person who owns one or more race tracks within the
10State may seek, in its own name, a separate organization
11license for each race track.
12 (h) All racing conducted under such organization license is
13subject to this Act and to the rules and regulations from time
14to time prescribed by the Board, and every such organization
15license issued by the Board shall contain a recital to that
16effect.
17 (i) Each such organization licensee may provide that at
18least one race per day may be devoted to the racing of quarter
19horses, appaloosas, arabians, or paints.
20 (j) In acting on applications for organization licenses,
21the Board shall give weight to an organization license which
22has implemented a good faith affirmative action effort to
23recruit, train and upgrade minorities in all classifications
24within the organization license.
25(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)

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1 (230 ILCS 5/24) (from Ch. 8, par. 37-24)
2 Sec. 24. (a) No license shall be issued to or held by an
3organization licensee unless all of its officers, directors,
4and holders of ownership interests of at least 5% are first
5approved by the Board. The Board shall not give approval of an
6organization license application to any person who has been
7convicted of or is under an indictment for a crime of moral
8turpitude or has violated any provision of the racing law of
9this State or any rules of the Board.
10 (b) An organization licensee must notify the Board within
1110 days of any change in the holders of a direct or indirect
12interest in the ownership of the organization licensee. The
13Board may, after hearing, revoke the organization license of
14any person who registers on its books or knowingly permits a
15direct or indirect interest in the ownership of that person
16without notifying the Board of the name of the holder in
17interest within this period.
18 (c) In addition to the provisions of subsection (a) of this
19Section, no person shall be granted an organization license if
20any public official of the State or member of his or her family
21holds any ownership or financial interest, directly or
22indirectly, in the person.
23 (d) No person which has been granted an organization
24license to hold a race meeting shall give to any public
25official or member of his family, directly or indirectly, for
26or without consideration, any interest in the person. The Board

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1shall, after hearing, revoke the organization license granted
2to a person which has violated this subsection.
3 (e) (Blank).
4 (f) No organization licensee or concessionaire or officer,
5director or holder or controller of 5% or more legal or
6beneficial interest in any organization licensee or concession
7shall make any sort of gift or contribution that is prohibited
8under Article 10 of the State Officials and Employees Ethics
9Act of any kind or pay or give any money or other thing of value
10to any person who is a public official, or a candidate or
11nominee for public office if that payment or gift is prohibited
12under Article 10 of the State Officials and Employees Ethics
13Act.
14(Source: P.A. 89-16, eff. 5-30-95.)
15 (230 ILCS 5/25) (from Ch. 8, par. 37-25)
16 Sec. 25. Admission charge; bond; fine.
17 (a) There shall be paid to the Board at such time or times
18as it shall prescribe, the sum of fifteen cents (15¢) for each
19person entering the grounds or enclosure of each organization
20licensee and inter-track wagering licensee upon a ticket of
21admission except as provided in subsection (g) of Section 27 of
22this Act. If tickets are issued for more than one day then the
23sum of fifteen cents (15¢) shall be paid for each person using
24such ticket on each day that the same shall be used. Provided,
25however, that no charge shall be made on tickets of admission

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1issued to and in the name of directors, officers, agents or
2employees of the organization licensee, or inter-track
3wagering licensee, or to owners, trainers, jockeys, drivers and
4their employees or to any person or persons entering the
5grounds or enclosure for the transaction of business in
6connection with such race meeting. The organization licensee or
7inter-track wagering licensee may, if it desires, collect such
8amount from each ticket holder in addition to the amount or
9amounts charged for such ticket of admission. Beginning on the
10date when any organization licensee begins conducting gaming
11pursuant to an organization gaming license issued under the
12Illinois Gambling Act, the admission charge imposed by this
13subsection (a) shall be 40 cents for each person entering the
14grounds or enclosure of each organization licensee and
15inter-track wagering licensee upon a ticket of admission, and
16if such tickets are issued for more than one day, 40 cents
17shall be paid for each person using such ticket on each day
18that the same shall be used.
19 (b) Accurate records and books shall at all times be kept
20and maintained by the organization licensees and inter-track
21wagering licensees showing the admission tickets issued and
22used on each racing day and the attendance thereat of each
23horse racing meeting. The Board or its duly authorized
24representative or representatives shall at all reasonable
25times have access to the admission records of any organization
26licensee and inter-track wagering licensee for the purpose of

10100SB0690ham002- 405 -LRB101 04451 SMS 61506 a
1examining and checking the same and ascertaining whether or not
2the proper amount has been or is being paid the State of
3Illinois as herein provided. The Board shall also require,
4before issuing any license, that the licensee shall execute and
5deliver to it a bond, payable to the State of Illinois, in such
6sum as it shall determine, not, however, in excess of fifty
7thousand dollars ($50,000), with a surety or sureties to be
8approved by it, conditioned for the payment of all sums due and
9payable or collected by it under this Section upon admission
10fees received for any particular racing meetings. The Board may
11also from time to time require sworn statements of the number
12or numbers of such admissions and may prescribe blanks upon
13which such reports shall be made. Any organization licensee or
14inter-track wagering licensee failing or refusing to pay the
15amount found to be due as herein provided, shall be deemed
16guilty of a business offense and upon conviction shall be
17punished by a fine of not more than five thousand dollars
18($5,000) in addition to the amount due from such organization
19licensee or inter-track wagering licensee as herein provided.
20All fines paid into court by an organization licensee or
21inter-track wagering licensee found guilty of violating this
22Section shall be transmitted and paid over by the clerk of the
23court to the Board. Beginning on the date when any organization
24licensee begins conducting gaming pursuant to an organization
25gaming license issued under the Illinois Gambling Act, any fine
26imposed pursuant to this subsection (b) shall not exceed

10100SB0690ham002- 406 -LRB101 04451 SMS 61506 a
1$10,000.
2(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
3 (230 ILCS 5/26) (from Ch. 8, par. 37-26)
4 Sec. 26. Wagering.
5 (a) Any licensee may conduct and supervise the pari-mutuel
6system of wagering, as defined in Section 3.12 of this Act, on
7horse races conducted by an Illinois organization licensee or
8conducted at a racetrack located in another state or country
9and televised in Illinois in accordance with subsection (g) of
10Section 26 of this Act. Subject to the prior consent of the
11Board, licensees may supplement any pari-mutuel pool in order
12to guarantee a minimum distribution. Such pari-mutuel method of
13wagering shall not, under any circumstances if conducted under
14the provisions of this Act, be held or construed to be
15unlawful, other statutes of this State to the contrary
16notwithstanding. Subject to rules for advance wagering
17promulgated by the Board, any licensee may accept wagers in
18advance of the day of the race wagered upon occurs.
19 (b) Except for those gaming activities for which a license
20is obtained and authorized under the Illinois Lottery Law, the
21Charitable Games Act, the Raffles and Poker Runs Act, or the
22Illinois Gambling Act, no No other method of betting, pool
23making, wagering or gambling shall be used or permitted by the
24licensee. Each licensee may retain, subject to the payment of
25all applicable taxes and purses, an amount not to exceed 17% of

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1all money wagered under subsection (a) of this Section, except
2as may otherwise be permitted under this Act.
3 (b-5) An individual may place a wager under the pari-mutuel
4system from any licensed location authorized under this Act
5provided that wager is electronically recorded in the manner
6described in Section 3.12 of this Act. Any wager made
7electronically by an individual while physically on the
8premises of a licensee shall be deemed to have been made at the
9premises of that licensee.
10 (c) (Blank). Until January 1, 2000, the sum held by any
11licensee for payment of outstanding pari-mutuel tickets, if
12unclaimed prior to December 31 of the next year, shall be
13retained by the licensee for payment of such tickets until that
14date. Within 10 days thereafter, the balance of such sum
15remaining unclaimed, less any uncashed supplements contributed
16by such licensee for the purpose of guaranteeing minimum
17distributions of any pari-mutuel pool, shall be paid to the
18Illinois Veterans' Rehabilitation Fund of the State treasury,
19except as provided in subsection (g) of Section 27 of this Act.
20 (c-5) The Beginning January 1, 2000, the sum held by any
21licensee for payment of outstanding pari-mutuel tickets, if
22unclaimed prior to December 31 of the next year, shall be
23retained by the licensee for payment of such tickets until that
24date. Within 10 days thereafter, the balance of such sum
25remaining unclaimed, less any uncashed supplements contributed
26by such licensee for the purpose of guaranteeing minimum

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1distributions of any pari-mutuel pool, shall be evenly
2distributed to the purse account of the organization licensee
3and the organization licensee, except that the balance of the
4sum of all outstanding pari-mutuel tickets generated from
5simulcast wagering and inter-track wagering by an organization
6licensee located in a county with a population in excess of
7230,000 and borders the Mississippi River or any licensee that
8derives its license from that organization licensee shall be
9evenly distributed to the purse account of the organization
10licensee and the organization licensee.
11 (d) A pari-mutuel ticket shall be honored until December 31
12of the next calendar year, and the licensee shall pay the same
13and may charge the amount thereof against unpaid money
14similarly accumulated on account of pari-mutuel tickets not
15presented for payment.
16 (e) No licensee shall knowingly permit any minor, other
17than an employee of such licensee or an owner, trainer, jockey,
18driver, or employee thereof, to be admitted during a racing
19program unless accompanied by a parent or guardian, or any
20minor to be a patron of the pari-mutuel system of wagering
21conducted or supervised by it. The admission of any
22unaccompanied minor, other than an employee of the licensee or
23an owner, trainer, jockey, driver, or employee thereof at a
24race track is a Class C misdemeanor.
25 (f) Notwithstanding the other provisions of this Act, an
26organization licensee may contract with an entity in another

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

10100SB0690ham002- 410 -LRB101 04451 SMS 61506 a
1horse races conducted in other states or countries and shall
2control the number of signals and types of breeds of racing in
3its simulcast program, subject to the disapproval of the Board.
4The Board may prohibit a simulcast program only if it finds
5that the simulcast program is clearly adverse to the integrity
6of racing. The host track simulcast program shall include the
7signal of live racing of all organization licensees. All
8non-host licensees and advance deposit wagering licensees
9shall carry the signal of and accept wagers on live racing of
10all organization licensees. Advance deposit wagering licensees
11shall not be permitted to accept out-of-state wagers on any
12Illinois signal provided pursuant to this Section without the
13approval and consent of the organization licensee providing the
14signal. For one year after August 15, 2014 (the effective date
15of Public Act 98-968), non-host licensees may carry the host
16track simulcast program and shall accept wagers on all races
17included as part of the simulcast program of horse races
18conducted at race tracks located within North America upon
19which wagering is permitted. For a period of one year after
20August 15, 2014 (the effective date of Public Act 98-968), on
21horse races conducted at race tracks located outside of North
22America, non-host licensees may accept wagers on all races
23included as part of the simulcast program upon which wagering
24is permitted. Beginning August 15, 2015 (one year after the
25effective date of Public Act 98-968), non-host licensees may
26carry the host track simulcast program and shall accept wagers

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

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1subsection (g) pertains to wagers placed from within Illinois.
2Advance deposit wagering licensees may place advance deposit
3wagering terminals at wagering facilities as a convenience to
4customers. The advance deposit wagering licensee shall not
5charge or collect any fee from purses for the placement of the
6advance deposit wagering terminals. The costs and expenses of
7the host track and non-host licensees associated with
8interstate simulcast wagering, other than the interstate
9commission fee, shall be borne by the host track and all
10non-host licensees incurring these costs. The interstate
11commission fee shall not exceed 5% of Illinois handle on the
12interstate simulcast race or races without prior approval of
13the Board. The Board shall promulgate rules under which it may
14permit interstate commission fees in excess of 5%. The
15interstate commission fee and other fees charged by the sending
16racetrack, including, but not limited to, satellite decoder
17fees, shall be uniformly applied to the host track and all
18non-host licensees.
19 Notwithstanding any other provision of this Act, through
20December 31, 2020, an organization licensee, with the consent
21of the horsemen association representing the largest number of
22owners, trainers, jockeys, or standardbred drivers who race
23horses at that organization licensee's racing meeting, may
24maintain a system whereby advance deposit wagering may take
25place or an organization licensee, with the consent of the
26horsemen association representing the largest number of

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1owners, trainers, jockeys, or standardbred drivers who race
2horses at that organization licensee's racing meeting, may
3contract with another person to carry out a system of advance
4deposit wagering. Such consent may not be unreasonably
5withheld. Only with respect to an appeal to the Board that
6consent for an organization licensee that maintains its own
7advance deposit wagering system is being unreasonably
8withheld, the Board shall issue a final order within 30 days
9after initiation of the appeal, and the organization licensee's
10advance deposit wagering system may remain operational during
11that 30-day period. The actions of any organization licensee
12who conducts advance deposit wagering or any person who has a
13contract with an organization licensee to conduct advance
14deposit wagering who conducts advance deposit wagering on or
15after January 1, 2013 and prior to June 7, 2013 (the effective
16date of Public Act 98-18) taken in reliance on the changes made
17to this subsection (g) by Public Act 98-18 are hereby
18validated, provided payment of all applicable pari-mutuel
19taxes are remitted to the Board. All advance deposit wagers
20placed from within Illinois must be placed through a
21Board-approved advance deposit wagering licensee; no other
22entity may accept an advance deposit wager from a person within
23Illinois. All advance deposit wagering is subject to any rules
24adopted by the Board. The Board may adopt rules necessary to
25regulate advance deposit wagering through the use of emergency
26rulemaking in accordance with Section 5-45 of the Illinois

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

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

10100SB0690ham002- 416 -LRB101 04451 SMS 61506 a
1 receiving the simulcast.
2 (2) Between the hours of 6:30 p.m. and 6:30 a.m. an
3 inter-track wagering licensee other than the host track may
4 receive supplemental interstate simulcasts only with the
5 consent of the host track, except when the Board finds that
6 the simulcast is clearly adverse to the integrity of
7 racing. Consent granted under this paragraph (2) to any
8 inter-track wagering licensee shall be deemed consent to
9 all non-host licensees. The interstate commission fee for
10 the supplemental interstate simulcast shall be paid by all
11 participating non-host licensees.
12 (3) Each licensee conducting interstate simulcast
13 wagering may retain, subject to the payment of all
14 applicable taxes and the purses, an amount not to exceed
15 17% of all money wagered. If any licensee conducts the
16 pari-mutuel system wagering on races conducted at
17 racetracks in another state or country, each such race or
18 race program shall be considered a separate racing day for
19 the purpose of determining the daily handle and computing
20 the privilege tax of that daily handle as provided in
21 subsection (a) of Section 27. Until January 1, 2000, from
22 the sums permitted to be retained pursuant to this
23 subsection, each inter-track wagering location licensee
24 shall pay 1% of the pari-mutuel handle wagered on simulcast
25 wagering to the Horse Racing Tax Allocation Fund, subject
26 to the provisions of subparagraph (B) of paragraph (11) of

10100SB0690ham002- 417 -LRB101 04451 SMS 61506 a
1 subsection (h) of Section 26 of this Act.
2 (4) A licensee who receives an interstate simulcast may
3 combine its gross or net pools with pools at the sending
4 racetracks pursuant to rules established by the Board. All
5 licensees combining their gross pools at a sending
6 racetrack shall adopt the takeout take-out percentages of
7 the sending racetrack. A licensee may also establish a
8 separate pool and takeout structure for wagering purposes
9 on races conducted at race tracks outside of the State of
10 Illinois. The licensee may permit pari-mutuel wagers
11 placed in other states or countries to be combined with its
12 gross or net wagering pools or other wagering pools.
13 (5) After the payment of the interstate commission fee
14 (except for the interstate commission fee on a supplemental
15 interstate simulcast, which shall be paid by the host track
16 and by each non-host licensee through the host track
17 host-track) and all applicable State and local taxes,
18 except as provided in subsection (g) of Section 27 of this
19 Act, the remainder of moneys retained from simulcast
20 wagering pursuant to this subsection (g), and Section 26.2
21 shall be divided as follows:
22 (A) For interstate simulcast wagers made at a host
23 track, 50% to the host track and 50% to purses at the
24 host track.
25 (B) For wagers placed on interstate simulcast
26 races, supplemental simulcasts as defined in

10100SB0690ham002- 418 -LRB101 04451 SMS 61506 a
1 subparagraphs (1) and (2), and separately pooled races
2 conducted outside of the State of Illinois made at a
3 non-host licensee, 25% to the host track, 25% to the
4 non-host licensee, and 50% to the purses at the host
5 track.
6 (6) Notwithstanding any provision in this Act to the
7 contrary, non-host licensees who derive their licenses
8 from a track located in a county with a population in
9 excess of 230,000 and that borders the Mississippi River
10 may receive supplemental interstate simulcast races at all
11 times subject to Board approval, which shall be withheld
12 only upon a finding that a supplemental interstate
13 simulcast is clearly adverse to the integrity of racing.
14 (7) Effective January 1, 2017, notwithstanding any
15 provision of this Act to the contrary, after payment of all
16 applicable State and local taxes and interstate commission
17 fees, non-host licensees who derive their licenses from a
18 track located in a county with a population in excess of
19 230,000 and that borders the Mississippi River shall retain
20 50% of the retention from interstate simulcast wagers and
21 shall pay 50% to purses at the track from which the
22 non-host licensee derives its license.
23 (7.1) Notwithstanding any other provision of this Act
24 to the contrary, if no standardbred racing is conducted at
25 a racetrack located in Madison County during any calendar
26 year beginning on or after January 1, 2002, all moneys

10100SB0690ham002- 419 -LRB101 04451 SMS 61506 a
1 derived by that racetrack from simulcast wagering and
2 inter-track wagering that (1) are to be used for purses and
3 (2) are generated between the hours of 6:30 p.m. and 6:30
4 a.m. during that calendar year shall be paid as follows:
5 (A) If the licensee that conducts horse racing at
6 that racetrack requests from the Board at least as many
7 racing dates as were conducted in calendar year 2000,
8 80% shall be paid to its thoroughbred purse account;
9 and
10 (B) Twenty percent shall be deposited into the
11 Illinois Colt Stakes Purse Distribution Fund and shall
12 be paid to purses for standardbred races for Illinois
13 conceived and foaled horses conducted at any county
14 fairgrounds. The moneys deposited into the Fund
15 pursuant to this subparagraph (B) shall be deposited
16 within 2 weeks after the day they were generated, shall
17 be in addition to and not in lieu of any other moneys
18 paid to standardbred purses under this Act, and shall
19 not be commingled with other moneys paid into that
20 Fund. The moneys deposited pursuant to this
21 subparagraph (B) shall be allocated as provided by the
22 Department of Agriculture, with the advice and
23 assistance of the Illinois Standardbred Breeders Fund
24 Advisory Board.
25 (7.2) Notwithstanding any other provision of this Act
26 to the contrary, if no thoroughbred racing is conducted at

10100SB0690ham002- 420 -LRB101 04451 SMS 61506 a
1 a racetrack located in Madison County during any calendar
2 year beginning on or after January 1, 2002, all moneys
3 derived by that racetrack from simulcast wagering and
4 inter-track wagering that (1) are to be used for purses and
5 (2) are generated between the hours of 6:30 a.m. and 6:30
6 p.m. during that calendar year shall be deposited as
7 follows:
8 (A) If the licensee that conducts horse racing at
9 that racetrack requests from the Board at least as many
10 racing dates as were conducted in calendar year 2000,
11 80% shall be deposited into its standardbred purse
12 account; and
13 (B) Twenty percent shall be deposited into the
14 Illinois Colt Stakes Purse Distribution Fund. Moneys
15 deposited into the Illinois Colt Stakes Purse
16 Distribution Fund pursuant to this subparagraph (B)
17 shall be paid to Illinois conceived and foaled
18 thoroughbred breeders' programs and to thoroughbred
19 purses for races conducted at any county fairgrounds
20 for Illinois conceived and foaled horses at the
21 discretion of the Department of Agriculture, with the
22 advice and assistance of the Illinois Thoroughbred
23 Breeders Fund Advisory Board. The moneys deposited
24 into the Illinois Colt Stakes Purse Distribution Fund
25 pursuant to this subparagraph (B) shall be deposited
26 within 2 weeks after the day they were generated, shall

10100SB0690ham002- 421 -LRB101 04451 SMS 61506 a
1 be in addition to and not in lieu of any other moneys
2 paid to thoroughbred purses under this Act, and shall
3 not be commingled with other moneys deposited into that
4 Fund.
5 (7.3) (Blank).
6 (7.4) (Blank).
7 (8) Notwithstanding any provision in this Act to the
8 contrary, an organization licensee from a track located in
9 a county with a population in excess of 230,000 and that
10 borders the Mississippi River and its affiliated non-host
11 licensees shall not be entitled to share in any retention
12 generated on racing, inter-track wagering, or simulcast
13 wagering at any other Illinois wagering facility.
14 (8.1) Notwithstanding any provisions in this Act to the
15 contrary, if 2 organization licensees are conducting
16 standardbred race meetings concurrently between the hours
17 of 6:30 p.m. and 6:30 a.m., after payment of all applicable
18 State and local taxes and interstate commission fees, the
19 remainder of the amount retained from simulcast wagering
20 otherwise attributable to the host track and to host track
21 purses shall be split daily between the 2 organization
22 licensees and the purses at the tracks of the 2
23 organization licensees, respectively, based on each
24 organization licensee's share of the total live handle for
25 that day, provided that this provision shall not apply to
26 any non-host licensee that derives its license from a track

10100SB0690ham002- 422 -LRB101 04451 SMS 61506 a
1 located in a county with a population in excess of 230,000
2 and that borders the Mississippi River.
3 (9) (Blank).
4 (10) (Blank).
5 (11) (Blank).
6 (12) The Board shall have authority to compel all host
7 tracks to receive the simulcast of any or all races
8 conducted at the Springfield or DuQuoin State fairgrounds
9 and include all such races as part of their simulcast
10 programs.
11 (13) Notwithstanding any other provision of this Act,
12 in the event that the total Illinois pari-mutuel handle on
13 Illinois horse races at all wagering facilities in any
14 calendar year is less than 75% of the total Illinois
15 pari-mutuel handle on Illinois horse races at all such
16 wagering facilities for calendar year 1994, then each
17 wagering facility that has an annual total Illinois
18 pari-mutuel handle on Illinois horse races that is less
19 than 75% of the total Illinois pari-mutuel handle on
20 Illinois horse races at such wagering facility for calendar
21 year 1994, shall be permitted to receive, from any amount
22 otherwise payable to the purse account at the race track
23 with which the wagering facility is affiliated in the
24 succeeding calendar year, an amount equal to 2% of the
25 differential in total Illinois pari-mutuel handle on
26 Illinois horse races at the wagering facility between that

10100SB0690ham002- 423 -LRB101 04451 SMS 61506 a
1 calendar year in question and 1994 provided, however, that
2 a wagering facility shall not be entitled to any such
3 payment until the Board certifies in writing to the
4 wagering facility the amount to which the wagering facility
5 is entitled and a schedule for payment of the amount to the
6 wagering facility, based on: (i) the racing dates awarded
7 to the race track affiliated with the wagering facility
8 during the succeeding year; (ii) the sums available or
9 anticipated to be available in the purse account of the
10 race track affiliated with the wagering facility for purses
11 during the succeeding year; and (iii) the need to ensure
12 reasonable purse levels during the payment period. The
13 Board's certification shall be provided no later than
14 January 31 of the succeeding year. In the event a wagering
15 facility entitled to a payment under this paragraph (13) is
16 affiliated with a race track that maintains purse accounts
17 for both standardbred and thoroughbred racing, the amount
18 to be paid to the wagering facility shall be divided
19 between each purse account pro rata, based on the amount of
20 Illinois handle on Illinois standardbred and thoroughbred
21 racing respectively at the wagering facility during the
22 previous calendar year. Annually, the General Assembly
23 shall appropriate sufficient funds from the General
24 Revenue Fund to the Department of Agriculture for payment
25 into the thoroughbred and standardbred horse racing purse
26 accounts at Illinois pari-mutuel tracks. The amount paid to

10100SB0690ham002- 424 -LRB101 04451 SMS 61506 a
1 each purse account shall be the amount certified by the
2 Illinois Racing Board in January to be transferred from
3 each account to each eligible racing facility in accordance
4 with the provisions of this Section. Beginning in the
5 calendar year in which an organization licensee that is
6 eligible to receive payment under this paragraph (13)
7 begins to receive funds from gaming pursuant to an
8 organization gaming license issued under the Illinois
9 Gambling Act, the amount of the payment due to all wagering
10 facilities licensed under that organization licensee under
11 this paragraph (13) shall be the amount certified by the
12 Board in January of that year. An organization licensee and
13 its related wagering facilities shall no longer be able to
14 receive payments under this paragraph (13) beginning in the
15 year subsequent to the first year in which the organization
16 licensee begins to receive funds from gaming pursuant to an
17 organization gaming license issued under the Illinois
18 Gambling Act.
19 (h) The Board may approve and license the conduct of
20inter-track wagering and simulcast wagering by inter-track
21wagering licensees and inter-track wagering location licensees
22subject to the following terms and conditions:
23 (1) Any person licensed to conduct a race meeting (i)
24 at a track where 60 or more days of racing were conducted
25 during the immediately preceding calendar year or where
26 over the 5 immediately preceding calendar years an average

10100SB0690ham002- 425 -LRB101 04451 SMS 61506 a
1 of 30 or more days of racing were conducted annually may be
2 issued an inter-track wagering license; (ii) at a track
3 located in a county that is bounded by the Mississippi
4 River, which has a population of less than 150,000
5 according to the 1990 decennial census, and an average of
6 at least 60 days of racing per year between 1985 and 1993
7 may be issued an inter-track wagering license; or (iii) at
8 a track awarded standardbred racing dates; or (iv) at a
9 track located in Madison County that conducted at least 100
10 days of live racing during the immediately preceding
11 calendar year may be issued an inter-track wagering
12 license, unless a lesser schedule of live racing is the
13 result of (A) weather, unsafe track conditions, or other
14 acts of God; (B) an agreement between the organization
15 licensee and the associations representing the largest
16 number of owners, trainers, jockeys, or standardbred
17 drivers who race horses at that organization licensee's
18 racing meeting; or (C) a finding by the Board of
19 extraordinary circumstances and that it was in the best
20 interest of the public and the sport to conduct fewer than
21 100 days of live racing. Any such person having operating
22 control of the racing facility may receive inter-track
23 wagering location licenses. An eligible race track located
24 in a county that has a population of more than 230,000 and
25 that is bounded by the Mississippi River may establish up
26 to 9 inter-track wagering locations, an eligible race track

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1 located in Stickney Township in Cook County may establish
2 up to 16 inter-track wagering locations, and an eligible
3 race track located in Palatine Township in Cook County may
4 establish up to 18 inter-track wagering locations. An
5 eligible racetrack conducting standardbred racing may have
6 up to 16 inter-track wagering locations. An application for
7 said license shall be filed with the Board prior to such
8 dates as may be fixed by the Board. With an application for
9 an inter-track wagering location license there shall be
10 delivered to the Board a certified check or bank draft
11 payable to the order of the Board for an amount equal to
12 $500. The application shall be on forms prescribed and
13 furnished by the Board. The application shall comply with
14 all other rules, regulations and conditions imposed by the
15 Board in connection therewith.
16 (2) The Board shall examine the applications with
17 respect to their conformity with this Act and the rules and
18 regulations imposed by the Board. If found to be in
19 compliance with the Act and rules and regulations of the
20 Board, the Board may then issue a license to conduct
21 inter-track wagering and simulcast wagering to such
22 applicant. All such applications shall be acted upon by the
23 Board at a meeting to be held on such date as may be fixed
24 by the Board.
25 (3) In granting licenses to conduct inter-track
26 wagering and simulcast wagering, the Board shall give due

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

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1 (8) Inter-track wagering or simulcast wagering shall
2 not be conducted at any track less than 4 5 miles from a
3 track at which a racing meeting is in progress.
4 (8.1) Inter-track wagering location licensees who
5 derive their licenses from a particular organization
6 licensee shall conduct inter-track wagering and simulcast
7 wagering only at locations that are within 160 miles of
8 that race track where the particular organization licensee
9 is licensed to conduct racing. However, inter-track
10 wagering and simulcast wagering shall not be conducted by
11 those licensees at any location within 5 miles of any race
12 track at which a horse race meeting has been licensed in
13 the current year, unless the person having operating
14 control of such race track has given its written consent to
15 such inter-track wagering location licensees, which
16 consent must be filed with the Board at or prior to the
17 time application is made. In the case of any inter-track
18 wagering location licensee initially licensed after
19 December 31, 2013, inter-track wagering and simulcast
20 wagering shall not be conducted by those inter-track
21 wagering location licensees that are located outside the
22 City of Chicago at any location within 8 miles of any race
23 track at which a horse race meeting has been licensed in
24 the current year, unless the person having operating
25 control of such race track has given its written consent to
26 such inter-track wagering location licensees, which

10100SB0690ham002- 429 -LRB101 04451 SMS 61506 a
1 consent must be filed with the Board at or prior to the
2 time application is made.
3 (8.2) Inter-track wagering or simulcast wagering shall
4 not be conducted by an inter-track wagering location
5 licensee at any location within 500 feet of an existing
6 church, an or existing elementary or secondary public
7 school, or an existing elementary or secondary private
8 school registered with or recognized by the State Board of
9 Education school, nor within 500 feet of the residences of
10 more than 50 registered voters without receiving written
11 permission from a majority of the registered voters at such
12 residences. Such written permission statements shall be
13 filed with the Board. The distance of 500 feet shall be
14 measured to the nearest part of any building used for
15 worship services, education programs, residential
16 purposes, or conducting inter-track wagering by an
17 inter-track wagering location licensee, and not to
18 property boundaries. However, inter-track wagering or
19 simulcast wagering may be conducted at a site within 500
20 feet of a church, school or residences of 50 or more
21 registered voters if such church, school or residences have
22 been erected or established, or such voters have been
23 registered, after the Board issues the original
24 inter-track wagering location license at the site in
25 question. Inter-track wagering location licensees may
26 conduct inter-track wagering and simulcast wagering only

10100SB0690ham002- 430 -LRB101 04451 SMS 61506 a
1 in areas that are zoned for commercial or manufacturing
2 purposes or in areas for which a special use has been
3 approved by the local zoning authority. However, no license
4 to conduct inter-track wagering and simulcast wagering
5 shall be granted by the Board with respect to any
6 inter-track wagering location within the jurisdiction of
7 any local zoning authority which has, by ordinance or by
8 resolution, prohibited the establishment of an inter-track
9 wagering location within its jurisdiction. However,
10 inter-track wagering and simulcast wagering may be
11 conducted at a site if such ordinance or resolution is
12 enacted after the Board licenses the original inter-track
13 wagering location licensee for the site in question.
14 (9) (Blank).
15 (10) An inter-track wagering licensee or an
16 inter-track wagering location licensee may retain, subject
17 to the payment of the privilege taxes and the purses, an
18 amount not to exceed 17% of all money wagered. Each program
19 of racing conducted by each inter-track wagering licensee
20 or inter-track wagering location licensee shall be
21 considered a separate racing day for the purpose of
22 determining the daily handle and computing the privilege
23 tax or pari-mutuel tax on such daily handle as provided in
24 Section 27.
25 (10.1) Except as provided in subsection (g) of Section
26 27 of this Act, inter-track wagering location licensees

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

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1 be paid to purses shall be paid to purses for
2 standardbred races.
3 (B) That portion of all moneys wagered on
4 thoroughbred racing that is required under this Act to
5 be paid to purses shall be paid to purses for
6 thoroughbred races.
7 (11) (A) After payment of the privilege or pari-mutuel
8 tax, any other applicable taxes, and the costs and expenses
9 in connection with the gathering, transmission, and
10 dissemination of all data necessary to the conduct of
11 inter-track wagering, the remainder of the monies retained
12 under either Section 26 or Section 26.2 of this Act by the
13 inter-track wagering licensee on inter-track wagering
14 shall be allocated with 50% to be split between the 2
15 participating licensees and 50% to purses, except that an
16 inter-track wagering licensee that derives its license
17 from a track located in a county with a population in
18 excess of 230,000 and that borders the Mississippi River
19 shall not divide any remaining retention with the Illinois
20 organization licensee that provides the race or races, and
21 an inter-track wagering licensee that accepts wagers on
22 races conducted by an organization licensee that conducts a
23 race meet in a county with a population in excess of
24 230,000 and that borders the Mississippi River shall not
25 divide any remaining retention with that organization
26 licensee.

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1 (B) From the sums permitted to be retained pursuant to
2 this Act each inter-track wagering location licensee shall
3 pay (i) the privilege or pari-mutuel tax to the State; (ii)
4 4.75% of the pari-mutuel handle on inter-track wagering at
5 such location on races as purses, except that an
6 inter-track wagering location licensee that derives its
7 license from a track located in a county with a population
8 in excess of 230,000 and that borders the Mississippi River
9 shall retain all purse moneys for its own purse account
10 consistent with distribution set forth in this subsection
11 (h), and inter-track wagering location licensees that
12 accept wagers on races conducted by an organization
13 licensee located in a county with a population in excess of
14 230,000 and that borders the Mississippi River shall
15 distribute all purse moneys to purses at the operating host
16 track; (iii) until January 1, 2000, except as provided in
17 subsection (g) of Section 27 of this Act, 1% of the
18 pari-mutuel handle wagered on inter-track wagering and
19 simulcast wagering at each inter-track wagering location
20 licensee facility to the Horse Racing Tax Allocation Fund,
21 provided that, to the extent the total amount collected and
22 distributed to the Horse Racing Tax Allocation Fund under
23 this subsection (h) during any calendar year exceeds the
24 amount collected and distributed to the Horse Racing Tax
25 Allocation Fund during calendar year 1994, that excess
26 amount shall be redistributed (I) to all inter-track

10100SB0690ham002- 434 -LRB101 04451 SMS 61506 a
1 wagering location licensees, based on each licensee's pro
2 rata pro-rata share of the total handle from inter-track
3 wagering and simulcast wagering for all inter-track
4 wagering location licensees during the calendar year in
5 which this provision is applicable; then (II) the amounts
6 redistributed to each inter-track wagering location
7 licensee as described in subpart (I) shall be further
8 redistributed as provided in subparagraph (B) of paragraph
9 (5) of subsection (g) of this Section 26 provided first,
10 that the shares of those amounts, which are to be
11 redistributed to the host track or to purses at the host
12 track under subparagraph (B) of paragraph (5) of subsection
13 (g) of this Section 26 shall be redistributed based on each
14 host track's pro rata share of the total inter-track
15 wagering and simulcast wagering handle at all host tracks
16 during the calendar year in question, and second, that any
17 amounts redistributed as described in part (I) to an
18 inter-track wagering location licensee that accepts wagers
19 on races conducted by an organization licensee that
20 conducts a race meet in a county with a population in
21 excess of 230,000 and that borders the Mississippi River
22 shall be further redistributed, effective January 1, 2017,
23 as provided in paragraph (7) of subsection (g) of this
24 Section 26, with the portion of that further redistribution
25 allocated to purses at that organization licensee to be
26 divided between standardbred purses and thoroughbred

10100SB0690ham002- 435 -LRB101 04451 SMS 61506 a
1 purses based on the amounts otherwise allocated to purses
2 at that organization licensee during the calendar year in
3 question; and (iv) 8% of the pari-mutuel handle on
4 inter-track wagering wagered at such location to satisfy
5 all costs and expenses of conducting its wagering. The
6 remainder of the monies retained by the inter-track
7 wagering location licensee shall be allocated 40% to the
8 location licensee and 60% to the organization licensee
9 which provides the Illinois races to the location, except
10 that an inter-track wagering location licensee that
11 derives its license from a track located in a county with a
12 population in excess of 230,000 and that borders the
13 Mississippi River shall not divide any remaining retention
14 with the organization licensee that provides the race or
15 races and an inter-track wagering location licensee that
16 accepts wagers on races conducted by an organization
17 licensee that conducts a race meet in a county with a
18 population in excess of 230,000 and that borders the
19 Mississippi River shall not divide any remaining retention
20 with the organization licensee. Notwithstanding the
21 provisions of clauses (ii) and (iv) of this paragraph, in
22 the case of the additional inter-track wagering location
23 licenses authorized under paragraph (1) of this subsection
24 (h) by Public Act 87-110, those licensees shall pay the
25 following amounts as purses: during the first 12 months the
26 licensee is in operation, 5.25% of the pari-mutuel handle

10100SB0690ham002- 436 -LRB101 04451 SMS 61506 a
1 wagered at the location on races; during the second 12
2 months, 5.25%; during the third 12 months, 5.75%; during
3 the fourth 12 months, 6.25%; and during the fifth 12 months
4 and thereafter, 6.75%. The following amounts shall be
5 retained by the licensee to satisfy all costs and expenses
6 of conducting its wagering: during the first 12 months the
7 licensee is in operation, 8.25% of the pari-mutuel handle
8 wagered at the location; during the second 12 months,
9 8.25%; during the third 12 months, 7.75%; during the fourth
10 12 months, 7.25%; and during the fifth 12 months and
11 thereafter, 6.75%. For additional inter-track wagering
12 location licensees authorized under Public Act 89-16,
13 purses for the first 12 months the licensee is in operation
14 shall be 5.75% of the pari-mutuel wagered at the location,
15 purses for the second 12 months the licensee is in
16 operation shall be 6.25%, and purses thereafter shall be
17 6.75%. For additional inter-track location licensees
18 authorized under Public Act 89-16, the licensee shall be
19 allowed to retain to satisfy all costs and expenses: 7.75%
20 of the pari-mutuel handle wagered at the location during
21 its first 12 months of operation, 7.25% during its second
22 12 months of operation, and 6.75% thereafter.
23 (C) There is hereby created the Horse Racing Tax
24 Allocation Fund which shall remain in existence until
25 December 31, 1999. Moneys remaining in the Fund after
26 December 31, 1999 shall be paid into the General Revenue

10100SB0690ham002- 437 -LRB101 04451 SMS 61506 a
1 Fund. Until January 1, 2000, all monies paid into the Horse
2 Racing Tax Allocation Fund pursuant to this paragraph (11)
3 by inter-track wagering location licensees located in park
4 districts of 500,000 population or less, or in a
5 municipality that is not included within any park district
6 but is included within a conservation district and is the
7 county seat of a county that (i) is contiguous to the state
8 of Indiana and (ii) has a 1990 population of 88,257
9 according to the United States Bureau of the Census, and
10 operating on May 1, 1994 shall be allocated by
11 appropriation as follows:
12 Two-sevenths to the Department of Agriculture.
13 Fifty percent of this two-sevenths shall be used to
14 promote the Illinois horse racing and breeding
15 industry, and shall be distributed by the Department of
16 Agriculture upon the advice of a 9-member committee
17 appointed by the Governor consisting of the following
18 members: the Director of Agriculture, who shall serve
19 as chairman; 2 representatives of organization
20 licensees conducting thoroughbred race meetings in
21 this State, recommended by those licensees; 2
22 representatives of organization licensees conducting
23 standardbred race meetings in this State, recommended
24 by those licensees; a representative of the Illinois
25 Thoroughbred Breeders and Owners Foundation,
26 recommended by that Foundation; a representative of

10100SB0690ham002- 438 -LRB101 04451 SMS 61506 a
1 the Illinois Standardbred Owners and Breeders
2 Association, recommended by that Association; a
3 representative of the Horsemen's Benevolent and
4 Protective Association or any successor organization
5 thereto established in Illinois comprised of the
6 largest number of owners and trainers, recommended by
7 that Association or that successor organization; and a
8 representative of the Illinois Harness Horsemen's
9 Association, recommended by that Association.
10 Committee members shall serve for terms of 2 years,
11 commencing January 1 of each even-numbered year. If a
12 representative of any of the above-named entities has
13 not been recommended by January 1 of any even-numbered
14 year, the Governor shall appoint a committee member to
15 fill that position. Committee members shall receive no
16 compensation for their services as members but shall be
17 reimbursed for all actual and necessary expenses and
18 disbursements incurred in the performance of their
19 official duties. The remaining 50% of this
20 two-sevenths shall be distributed to county fairs for
21 premiums and rehabilitation as set forth in the
22 Agricultural Fair Act;
23 Four-sevenths to park districts or municipalities
24 that do not have a park district of 500,000 population
25 or less for museum purposes (if an inter-track wagering
26 location licensee is located in such a park district)

10100SB0690ham002- 439 -LRB101 04451 SMS 61506 a
1 or to conservation districts for museum purposes (if an
2 inter-track wagering location licensee is located in a
3 municipality that is not included within any park
4 district but is included within a conservation
5 district and is the county seat of a county that (i) is
6 contiguous to the state of Indiana and (ii) has a 1990
7 population of 88,257 according to the United States
8 Bureau of the Census, except that if the conservation
9 district does not maintain a museum, the monies shall
10 be allocated equally between the county and the
11 municipality in which the inter-track wagering
12 location licensee is located for general purposes) or
13 to a municipal recreation board for park purposes (if
14 an inter-track wagering location licensee is located
15 in a municipality that is not included within any park
16 district and park maintenance is the function of the
17 municipal recreation board and the municipality has a
18 1990 population of 9,302 according to the United States
19 Bureau of the Census); provided that the monies are
20 distributed to each park district or conservation
21 district or municipality that does not have a park
22 district in an amount equal to four-sevenths of the
23 amount collected by each inter-track wagering location
24 licensee within the park district or conservation
25 district or municipality for the Fund. Monies that were
26 paid into the Horse Racing Tax Allocation Fund before

10100SB0690ham002- 440 -LRB101 04451 SMS 61506 a
1 August 9, 1991 (the effective date of Public Act
2 87-110) by an inter-track wagering location licensee
3 located in a municipality that is not included within
4 any park district but is included within a conservation
5 district as provided in this paragraph shall, as soon
6 as practicable after August 9, 1991 (the effective date
7 of Public Act 87-110), be allocated and paid to that
8 conservation district as provided in this paragraph.
9 Any park district or municipality not maintaining a
10 museum may deposit the monies in the corporate fund of
11 the park district or municipality where the
12 inter-track wagering location is located, to be used
13 for general purposes; and
14 One-seventh to the Agricultural Premium Fund to be
15 used for distribution to agricultural home economics
16 extension councils in accordance with "An Act in
17 relation to additional support and finances for the
18 Agricultural and Home Economic Extension Councils in
19 the several counties of this State and making an
20 appropriation therefor", approved July 24, 1967.
21 Until January 1, 2000, all other monies paid into the
22 Horse Racing Tax Allocation Fund pursuant to this paragraph
23 (11) shall be allocated by appropriation as follows:
24 Two-sevenths to the Department of Agriculture.
25 Fifty percent of this two-sevenths shall be used to
26 promote the Illinois horse racing and breeding

10100SB0690ham002- 441 -LRB101 04451 SMS 61506 a
1 industry, and shall be distributed by the Department of
2 Agriculture upon the advice of a 9-member committee
3 appointed by the Governor consisting of the following
4 members: the Director of Agriculture, who shall serve
5 as chairman; 2 representatives of organization
6 licensees conducting thoroughbred race meetings in
7 this State, recommended by those licensees; 2
8 representatives of organization licensees conducting
9 standardbred race meetings in this State, recommended
10 by those licensees; a representative of the Illinois
11 Thoroughbred Breeders and Owners Foundation,
12 recommended by that Foundation; a representative of
13 the Illinois Standardbred Owners and Breeders
14 Association, recommended by that Association; a
15 representative of the Horsemen's Benevolent and
16 Protective Association or any successor organization
17 thereto established in Illinois comprised of the
18 largest number of owners and trainers, recommended by
19 that Association or that successor organization; and a
20 representative of the Illinois Harness Horsemen's
21 Association, recommended by that Association.
22 Committee members shall serve for terms of 2 years,
23 commencing January 1 of each even-numbered year. If a
24 representative of any of the above-named entities has
25 not been recommended by January 1 of any even-numbered
26 year, the Governor shall appoint a committee member to

10100SB0690ham002- 442 -LRB101 04451 SMS 61506 a
1 fill that position. Committee members shall receive no
2 compensation for their services as members but shall be
3 reimbursed for all actual and necessary expenses and
4 disbursements incurred in the performance of their
5 official duties. The remaining 50% of this
6 two-sevenths shall be distributed to county fairs for
7 premiums and rehabilitation as set forth in the
8 Agricultural Fair Act;
9 Four-sevenths to museums and aquariums located in
10 park districts of over 500,000 population; provided
11 that the monies are distributed in accordance with the
12 previous year's distribution of the maintenance tax
13 for such museums and aquariums as provided in Section 2
14 of the Park District Aquarium and Museum Act; and
15 One-seventh to the Agricultural Premium Fund to be
16 used for distribution to agricultural home economics
17 extension councils in accordance with "An Act in
18 relation to additional support and finances for the
19 Agricultural and Home Economic Extension Councils in
20 the several counties of this State and making an
21 appropriation therefor", approved July 24, 1967. This
22 subparagraph (C) shall be inoperative and of no force
23 and effect on and after January 1, 2000.
24 (D) Except as provided in paragraph (11) of this
25 subsection (h), with respect to purse allocation from
26 inter-track wagering, the monies so retained shall be

10100SB0690ham002- 443 -LRB101 04451 SMS 61506 a
1 divided as follows:
2 (i) If the inter-track wagering licensee,
3 except an inter-track wagering licensee that
4 derives its license from an organization licensee
5 located in a county with a population in excess of
6 230,000 and bounded by the Mississippi River, is
7 not conducting its own race meeting during the same
8 dates, then the entire purse allocation shall be to
9 purses at the track where the races wagered on are
10 being conducted.
11 (ii) If the inter-track wagering licensee,
12 except an inter-track wagering licensee that
13 derives its license from an organization licensee
14 located in a county with a population in excess of
15 230,000 and bounded by the Mississippi River, is
16 also conducting its own race meeting during the
17 same dates, then the purse allocation shall be as
18 follows: 50% to purses at the track where the races
19 wagered on are being conducted; 50% to purses at
20 the track where the inter-track wagering licensee
21 is accepting such wagers.
22 (iii) If the inter-track wagering is being
23 conducted by an inter-track wagering location
24 licensee, except an inter-track wagering location
25 licensee that derives its license from an
26 organization licensee located in a county with a

10100SB0690ham002- 444 -LRB101 04451 SMS 61506 a
1 population in excess of 230,000 and bounded by the
2 Mississippi River, the entire purse allocation for
3 Illinois races shall be to purses at the track
4 where the race meeting being wagered on is being
5 held.
6 (12) The Board shall have all powers necessary and
7 proper to fully supervise and control the conduct of
8 inter-track wagering and simulcast wagering by inter-track
9 wagering licensees and inter-track wagering location
10 licensees, including, but not limited to the following:
11 (A) The Board is vested with power to promulgate
12 reasonable rules and regulations for the purpose of
13 administering the conduct of this wagering and to
14 prescribe reasonable rules, regulations and conditions
15 under which such wagering shall be held and conducted.
16 Such rules and regulations are to provide for the
17 prevention of practices detrimental to the public
18 interest and for the best interests of said wagering
19 and to impose penalties for violations thereof.
20 (B) The Board, and any person or persons to whom it
21 delegates this power, is vested with the power to enter
22 the facilities of any licensee to determine whether
23 there has been compliance with the provisions of this
24 Act and the rules and regulations relating to the
25 conduct of such wagering.
26 (C) The Board, and any person or persons to whom it

10100SB0690ham002- 445 -LRB101 04451 SMS 61506 a
1 delegates this power, may eject or exclude from any
2 licensee's facilities, any person whose conduct or
3 reputation is such that his presence on such premises
4 may, in the opinion of the Board, call into the
5 question the honesty and integrity of, or interfere
6 with the orderly conduct of such wagering; provided,
7 however, that no person shall be excluded or ejected
8 from such premises solely on the grounds of race,
9 color, creed, national origin, ancestry, or sex.
10 (D) (Blank).
11 (E) The Board is vested with the power to appoint
12 delegates to execute any of the powers granted to it
13 under this Section for the purpose of administering
14 this wagering and any rules and regulations
15 promulgated in accordance with this Act.
16 (F) The Board shall name and appoint a State
17 director of this wagering who shall be a representative
18 of the Board and whose duty it shall be to supervise
19 the conduct of inter-track wagering as may be provided
20 for by the rules and regulations of the Board; such
21 rules and regulation shall specify the method of
22 appointment and the Director's powers, authority and
23 duties.
24 (G) The Board is vested with the power to impose
25 civil penalties of up to $5,000 against individuals and
26 up to $10,000 against licensees for each violation of

10100SB0690ham002- 446 -LRB101 04451 SMS 61506 a
1 any provision of this Act relating to the conduct of
2 this wagering, any rules adopted by the Board, any
3 order of the Board or any other action which in the
4 Board's discretion, is a detriment or impediment to
5 such wagering.
6 (13) The Department of Agriculture may enter into
7 agreements with licensees authorizing such licensees to
8 conduct inter-track wagering on races to be held at the
9 licensed race meetings conducted by the Department of
10 Agriculture. Such agreement shall specify the races of the
11 Department of Agriculture's licensed race meeting upon
12 which the licensees will conduct wagering. In the event
13 that a licensee conducts inter-track pari-mutuel wagering
14 on races from the Illinois State Fair or DuQuoin State Fair
15 which are in addition to the licensee's previously approved
16 racing program, those races shall be considered a separate
17 racing day for the purpose of determining the daily handle
18 and computing the privilege or pari-mutuel tax on that
19 daily handle as provided in Sections 27 and 27.1. Such
20 agreements shall be approved by the Board before such
21 wagering may be conducted. In determining whether to grant
22 approval, the Board shall give due consideration to the
23 best interests of the public and of horse racing. The
24 provisions of paragraphs (1), (8), (8.1), and (8.2) of
25 subsection (h) of this Section which are not specified in
26 this paragraph (13) shall not apply to licensed race

10100SB0690ham002- 447 -LRB101 04451 SMS 61506 a
1 meetings conducted by the Department of Agriculture at the
2 Illinois State Fair in Sangamon County or the DuQuoin State
3 Fair in Perry County, or to any wagering conducted on those
4 race meetings.
5 (14) An inter-track wagering location license
6 authorized by the Board in 2016 that is owned and operated
7 by a race track in Rock Island County shall be transferred
8 to a commonly owned race track in Cook County on August 12,
9 2016 (the effective date of Public Act 99-757). The
10 licensee shall retain its status in relation to purse
11 distribution under paragraph (11) of this subsection (h)
12 following the transfer to the new entity. The pari-mutuel
13 tax credit under Section 32.1 shall not be applied toward
14 any pari-mutuel tax obligation of the inter-track wagering
15 location licensee of the license that is transferred under
16 this paragraph (14).
17 (i) Notwithstanding the other provisions of this Act, the
18conduct of wagering at wagering facilities is authorized on all
19days, except as limited by subsection (b) of Section 19 of this
20Act.
21(Source: P.A. 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;
22100-201, eff. 8-18-17; 100-627, eff. 7-20-18; 100-1152, eff.
2312-14-18; revised 1-13-19.)
24 (230 ILCS 5/26.8)
25 Sec. 26.8. Beginning on February 1, 2014 and through

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1December 31, 2020, each wagering licensee may impose a
2surcharge of up to 0.5% on winning wagers and winnings from
3wagers. The surcharge shall be deducted from winnings prior to
4payout. All amounts collected from the imposition of this
5surcharge shall be evenly distributed to the organization
6licensee and the purse account of the organization licensee
7with which the licensee is affiliated. The amounts distributed
8under this Section shall be in addition to the amounts paid
9pursuant to paragraph (10) of subsection (h) of Section 26,
10Section 26.3, Section 26.4, Section 26.5, and Section 26.7.
11(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)
12 (230 ILCS 5/26.9)
13 Sec. 26.9. Beginning on February 1, 2014 and through
14December 31, 2020, in addition to the surcharge imposed in
15Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each
16licensee shall impose a surcharge of 0.2% on winning wagers and
17winnings from wagers. The surcharge shall be deducted from
18winnings prior to payout. All amounts collected from the
19surcharges imposed under this Section shall be remitted to the
20Board. From amounts collected under this Section, the Board
21shall deposit an amount not to exceed $100,000 annually into
22the Quarter Horse Purse Fund and all remaining amounts into the
23Horse Racing Fund.
24(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)

10100SB0690ham002- 449 -LRB101 04451 SMS 61506 a
1 (230 ILCS 5/27) (from Ch. 8, par. 37-27)
2 Sec. 27. (a) In addition to the organization license fee
3provided by this Act, until January 1, 2000, a graduated
4privilege tax is hereby imposed for conducting the pari-mutuel
5system of wagering permitted under this Act. Until January 1,
62000, except as provided in subsection (g) of Section 27 of
7this Act, all of the breakage of each racing day held by any
8licensee in the State shall be paid to the State. Until January
91, 2000, such daily graduated privilege tax shall be paid by
10the licensee from the amount permitted to be retained under
11this Act. Until January 1, 2000, each day's graduated privilege
12tax, breakage, and Horse Racing Tax Allocation funds shall be
13remitted to the Department of Revenue within 48 hours after the
14close of the racing day upon which it is assessed or within
15such other time as the Board prescribes. The privilege tax
16hereby imposed, until January 1, 2000, shall be a flat tax at
17the rate of 2% of the daily pari-mutuel handle except as
18provided in Section 27.1.
19 In addition, every organization licensee, except as
20provided in Section 27.1 of this Act, which conducts multiple
21wagering shall pay, until January 1, 2000, as a privilege tax
22on multiple wagers an amount equal to 1.25% of all moneys
23wagered each day on such multiple wagers, plus an additional
24amount equal to 3.5% of the amount wagered each day on any
25other multiple wager which involves a single betting interest
26on 3 or more horses. The licensee shall remit the amount of

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1such taxes to the Department of Revenue within 48 hours after
2the close of the racing day on which it is assessed or within
3such other time as the Board prescribes.
4 This subsection (a) shall be inoperative and of no force
5and effect on and after January 1, 2000.
6 (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
7at the rate of 1.5% of the daily pari-mutuel handle is imposed
8at all pari-mutuel wagering facilities and on advance deposit
9wagering from a location other than a wagering facility, except
10as otherwise provided for in this subsection (a-5). In addition
11to the pari-mutuel tax imposed on advance deposit wagering
12pursuant to this subsection (a-5), beginning on August 24, 2012
13(the effective date of Public Act 97-1060) and through December
1431, 2020, an additional pari-mutuel tax at the rate of 0.25%
15shall be imposed on advance deposit wagering. Until August 25,
162012, the additional 0.25% pari-mutuel tax imposed on advance
17deposit wagering by Public Act 96-972 shall be deposited into
18the Quarter Horse Purse Fund, which shall be created as a
19non-appropriated trust fund administered by the Board for
20grants to thoroughbred organization licensees for payment of
21purses for quarter horse races conducted by the organization
22licensee. Beginning on August 26, 2012, the additional 0.25%
23pari-mutuel tax imposed on advance deposit wagering shall be
24deposited into the Standardbred Purse Fund, which shall be
25created as a non-appropriated trust fund administered by the
26Board, for grants to the standardbred organization licensees

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

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

10100SB0690ham002- 453 -LRB101 04451 SMS 61506 a
1require verified reports and a statement of the total of all
2monies wagered daily at each wagering facility upon which the
3taxes are assessed and may prescribe forms upon which such
4reports and statement shall be made.
5 (d) Before a license is issued or re-issued, the licensee
6shall post a bond in the sum of $500,000 to the State of
7Illinois. The bond shall be used to guarantee that the licensee
8faithfully makes the payments, keeps the books and records and
9makes reports, and conducts games of chance in conformity with
10this Act and the rules adopted by the Board. The bond shall not
11be canceled by a surety on less than 30 days' notice in writing
12to the Board. If a bond is canceled and the licensee fails to
13file a new bond with the Board in the required amount on or
14before the effective date of cancellation, the licensee's
15license shall be revoked. The total and aggregate liability of
16the surety on the bond is limited to the amount specified in
17the bond. Any licensee failing or refusing to pay the amount of
18any tax due under this Section shall be guilty of a business
19offense and upon conviction shall be fined not more than $5,000
20in addition to the amount found due as tax under this Section.
21Each day's violation shall constitute a separate offense. All
22fines paid into Court by a licensee hereunder shall be
23transmitted and paid over by the Clerk of the Court to the
24Board.
25 (e) No other license fee, privilege tax, excise tax, or
26racing fee, except as provided in this Act, shall be assessed

10100SB0690ham002- 454 -LRB101 04451 SMS 61506 a
1or collected from any such licensee by the State.
2 (f) No other license fee, privilege tax, excise tax or
3racing fee shall be assessed or collected from any such
4licensee by units of local government except as provided in
5paragraph 10.1 of subsection (h) and subsection (f) of Section
626 of this Act. However, any municipality that has a Board
7licensed horse race meeting at a race track wholly within its
8corporate boundaries or a township that has a Board licensed
9horse race meeting at a race track wholly within the
10unincorporated area of the township may charge a local
11amusement tax not to exceed 10¢ per admission to such horse
12race meeting by the enactment of an ordinance. However, any
13municipality or county that has a Board licensed inter-track
14wagering location facility wholly within its corporate
15boundaries may each impose an admission fee not to exceed $1.00
16per admission to such inter-track wagering location facility,
17so that a total of not more than $2.00 per admission may be
18imposed. Except as provided in subparagraph (g) of Section 27
19of this Act, the inter-track wagering location licensee shall
20collect any and all such fees and within 48 hours remit the
21fees to the Board as the Board prescribes, which shall,
22pursuant to rule, cause the fees to be distributed to the
23county or municipality.
24 (g) Notwithstanding any provision in this Act to the
25contrary, if in any calendar year the total taxes and fees from
26wagering on live racing and from inter-track wagering required

10100SB0690ham002- 455 -LRB101 04451 SMS 61506 a
1to be collected from licensees and distributed under this Act
2to all State and local governmental authorities exceeds the
3amount of such taxes and fees distributed to each State and
4local governmental authority to which each State and local
5governmental authority was entitled under this Act for calendar
6year 1994, then the first $11 million of that excess amount
7shall be allocated at the earliest possible date for
8distribution as purse money for the succeeding calendar year.
9Upon reaching the 1994 level, and until the excess amount of
10taxes and fees exceeds $11 million, the Board shall direct all
11licensees to cease paying the subject taxes and fees and the
12Board shall direct all licensees to allocate any such excess
13amount for purses as follows:
14 (i) the excess amount shall be initially divided
15 between thoroughbred and standardbred purses based on the
16 thoroughbred's and standardbred's respective percentages
17 of total Illinois live wagering in calendar year 1994;
18 (ii) each thoroughbred and standardbred organization
19 licensee issued an organization licensee in that
20 succeeding allocation year shall be allocated an amount
21 equal to the product of its percentage of total Illinois
22 live thoroughbred or standardbred wagering in calendar
23 year 1994 (the total to be determined based on the sum of
24 1994 on-track wagering for all organization licensees
25 issued organization licenses in both the allocation year
26 and the preceding year) multiplied by the total amount

10100SB0690ham002- 456 -LRB101 04451 SMS 61506 a
1 allocated for standardbred or thoroughbred purses,
2 provided that the first $1,500,000 of the amount allocated
3 to standardbred purses under item (i) shall be allocated to
4 the Department of Agriculture to be expended with the
5 assistance and advice of the Illinois Standardbred
6 Breeders Funds Advisory Board for the purposes listed in
7 subsection (g) of Section 31 of this Act, before the amount
8 allocated to standardbred purses under item (i) is
9 allocated to standardbred organization licensees in the
10 succeeding allocation year.
11 To the extent the excess amount of taxes and fees to be
12collected and distributed to State and local governmental
13authorities exceeds $11 million, that excess amount shall be
14collected and distributed to State and local authorities as
15provided for under this Act.
16(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)
17 (230 ILCS 5/29) (from Ch. 8, par. 37-29)
18 Sec. 29. (a) After the privilege or pari-mutuel tax
19established in Sections 26(f), 27, and 27.1 is paid to the
20State from the monies retained by the organization licensee
21pursuant to Sections 26, 26.2, and 26.3, the remainder of those
22monies retained pursuant to Sections 26 and 26.2, except as
23provided in subsection (g) of Section 27 of this Act, shall be
24allocated evenly to the organization licensee and as purses.
25 (b) (Blank).

10100SB0690ham002- 457 -LRB101 04451 SMS 61506 a
1 (c) (Blank).
2 (d) From the amounts generated for purses from all sources,
3including, but not limited to, amounts generated from wagering
4conducted by organization licensees, organization gaming
5licensees, inter-track wagering licensees, inter-track
6wagering location licensees, and advance deposit wagering
7licensees, an organization representing the largest number of
8horse owners and trainers in Illinois, for thoroughbred and
9standardbred horses that race at the track of the organization
10licensee, may negotiate an amount equal to 5% of any and all
11revenue earned by the organization licensee for purses for that
12calendar year. A contract with the appropriate thoroughbred or
13standardbred horsemen organization shall be negotiated with
14the organization licensee before the beginning of each calendar
15year. No more than 50% of those funds shall be used for
16operational expenses. At least 50% of those funds shall be used
17for programs for backstretch workers, retirement plans,
18diversity scholarships, horse aftercare programs, workers
19compensation insurance fees, and horse ownership programs.
20Audited financial statements certifying how the funding is
21spent shall be provided to the organization licensee once each
22calendar quarter.
23 No later than 105 days after the close of the
24organization's fiscal year, any organization that has received
25moneys pursuant to this subsection (d) during that prior year
26shall file with the Illinois Racing Board, the Illinois Gaming

10100SB0690ham002- 458 -LRB101 04451 SMS 61506 a
1Board, and the organization licensee whose purse account moneys
2have been transferred to the organization, statements verified
3by a certified public accountant that shows the financial
4condition of such organization and contains itemized
5statements of the audited receipts and audited disbursements of
6the organization for such the year. The Board shall audit the
7books and records of any such organization annually. The Board
8shall make that information available on its website. Each
9organization licensee and inter-track wagering licensee from
10the money retained for purses as set forth in subsection (a) of
11this Section, shall pay to an organization representing the
12largest number of horse owners and trainers which has
13negotiated a contract with the organization licensee for such
14purpose an amount equal to at least 1% of the organization
15licensee's and inter-track wagering licensee's retention of
16the pari-mutuel handle for the racing season. Each inter-track
17wagering location licensee, from the 4% of its handle required
18to be paid as purses under paragraph (11) of subsection (h) of
19Section 26 of this Act, shall pay to the contractually
20established representative organization 2% of that 4%,
21provided that the payments so made to the organization shall
22not exceed a total of $125,000 in any calendar year. Such
23contract shall be negotiated and signed prior to the beginning
24of the racing season.
25(Source: P.A. 91-40, eff. 6-25-99.)

10100SB0690ham002- 459 -LRB101 04451 SMS 61506 a
1 (230 ILCS 5/30) (from Ch. 8, par. 37-30)
2 Sec. 30. (a) The General Assembly declares that it is the
3policy of this State to encourage the breeding of thoroughbred
4horses in this State and the ownership of such horses by
5residents of this State in order to provide for: sufficient
6numbers of high quality thoroughbred horses to participate in
7thoroughbred racing meetings in this State, and to establish
8and preserve the agricultural and commercial benefits of such
9breeding and racing industries to the State of Illinois. It is
10the intent of the General Assembly to further this policy by
11the provisions of this Act.
12 (b) Each organization licensee conducting a thoroughbred
13racing meeting pursuant to this Act shall provide at least two
14races each day limited to Illinois conceived and foaled horses
15or Illinois foaled horses or both. A minimum of 6 races shall
16be conducted each week limited to Illinois conceived and foaled
17or Illinois foaled horses or both. No horses shall be permitted
18to start in such races unless duly registered under the rules
19of the Department of Agriculture.
20 (c) Conditions of races under subsection (b) shall be
21commensurate with past performance, quality, and class of
22Illinois conceived and foaled and Illinois foaled horses
23available. If, however, sufficient competition cannot be had
24among horses of that class on any day, the races may, with
25consent of the Board, be eliminated for that day and substitute
26races provided.

10100SB0690ham002- 460 -LRB101 04451 SMS 61506 a
1 (d) There is hereby created a special fund of the State
2Treasury to be known as the Illinois Thoroughbred Breeders
3Fund.
4 Beginning on the effective date of this amendatory Act of
5the 101st General Assembly, the Illinois Thoroughbred Breeders
6Fund shall become a non-appropriated trust fund held separate
7from State moneys. Expenditures from this Fund shall no longer
8be subject to appropriation.
9 Except as provided in subsection (g) of Section 27 of this
10Act, 8.5% of all the monies received by the State as privilege
11taxes on Thoroughbred racing meetings shall be paid into the
12Illinois Thoroughbred Breeders Fund.
13 Notwithstanding any provision of law to the contrary,
14amounts deposited into the Illinois Thoroughbred Breeders Fund
15from revenues generated by gaming pursuant to an organization
16gaming license issued under the Illinois Gambling Act after the
17effective date of this amendatory Act of the 101st General
18Assembly shall be in addition to tax and fee amounts paid under
19this Section for calendar year 2019 and thereafter.
20 (e) The Illinois Thoroughbred Breeders Fund shall be
21administered by the Department of Agriculture with the advice
22and assistance of the Advisory Board created in subsection (f)
23of this Section.
24 (f) The Illinois Thoroughbred Breeders Fund Advisory Board
25shall consist of the Director of the Department of Agriculture,
26who shall serve as Chairman; a member of the Illinois Racing

10100SB0690ham002- 461 -LRB101 04451 SMS 61506 a
1Board, designated by it; 2 representatives of the organization
2licensees conducting thoroughbred racing meetings, recommended
3by them; 2 representatives of the Illinois Thoroughbred
4Breeders and Owners Foundation, recommended by it; one
5representative and 2 representatives of the Horsemen's
6Benevolent Protective Association; and one representative from
7the Illinois Thoroughbred Horsemen's Association or any
8successor organization established in Illinois comprised of
9the largest number of owners and trainers, recommended by it,
10with one representative of the Horsemen's Benevolent and
11Protective Association to come from its Illinois Division, and
12one from its Chicago Division. Advisory Board members shall
13serve for 2 years commencing January 1 of each odd numbered
14year. If representatives of the organization licensees
15conducting thoroughbred racing meetings, the Illinois
16Thoroughbred Breeders and Owners Foundation, and the
17Horsemen's Benevolent Protection Association, and the Illinois
18Thoroughbred Horsemen's Association have not been recommended
19by January 1, of each odd numbered year, the Director of the
20Department of Agriculture shall make an appointment for the
21organization failing to so recommend a member of the Advisory
22Board. Advisory Board members shall receive no compensation for
23their services as members but shall be reimbursed for all
24actual and necessary expenses and disbursements incurred in the
25execution of their official duties.
26 (g) No monies shall be expended from the Illinois

10100SB0690ham002- 462 -LRB101 04451 SMS 61506 a
1Thoroughbred Breeders Fund except as appropriated by the
2General Assembly. Monies expended appropriated from the
3Illinois Thoroughbred Breeders Fund shall be expended by the
4Department of Agriculture, with the advice and assistance of
5the Illinois Thoroughbred Breeders Fund Advisory Board, for the
6following purposes only:
7 (1) To provide purse supplements to owners of horses
8 participating in races limited to Illinois conceived and
9 foaled and Illinois foaled horses. Any such purse
10 supplements shall not be included in and shall be paid in
11 addition to any purses, stakes, or breeders' awards offered
12 by each organization licensee as determined by agreement
13 between such organization licensee and an organization
14 representing the horsemen. No monies from the Illinois
15 Thoroughbred Breeders Fund shall be used to provide purse
16 supplements for claiming races in which the minimum
17 claiming price is less than $7,500.
18 (2) To provide stakes and awards to be paid to the
19 owners of the winning horses in certain races limited to
20 Illinois conceived and foaled and Illinois foaled horses
21 designated as stakes races.
22 (2.5) To provide an award to the owner or owners of an
23 Illinois conceived and foaled or Illinois foaled horse that
24 wins a maiden special weight, an allowance, overnight
25 handicap race, or claiming race with claiming price of
26 $10,000 or more providing the race is not restricted to

10100SB0690ham002- 463 -LRB101 04451 SMS 61506 a
1 Illinois conceived and foaled or Illinois foaled horses.
2 Awards shall also be provided to the owner or owners of
3 Illinois conceived and foaled and Illinois foaled horses
4 that place second or third in those races. To the extent
5 that additional moneys are required to pay the minimum
6 additional awards of 40% of the purse the horse earns for
7 placing first, second or third in those races for Illinois
8 foaled horses and of 60% of the purse the horse earns for
9 placing first, second or third in those races for Illinois
10 conceived and foaled horses, those moneys shall be provided
11 from the purse account at the track where earned.
12 (3) To provide stallion awards to the owner or owners
13 of any stallion that is duly registered with the Illinois
14 Thoroughbred Breeders Fund Program prior to the effective
15 date of this amendatory Act of 1995 whose duly registered
16 Illinois conceived and foaled offspring wins a race
17 conducted at an Illinois thoroughbred racing meeting other
18 than a claiming race, provided that the stallion stood
19 service within Illinois at the time the offspring was
20 conceived and that the stallion did not stand for service
21 outside of Illinois at any time during the year in which
22 the offspring was conceived. Such award shall not be paid
23 to the owner or owners of an Illinois stallion that served
24 outside this State at any time during the calendar year in
25 which such race was conducted.
26 (4) To provide $75,000 annually for purses to be

10100SB0690ham002- 464 -LRB101 04451 SMS 61506 a
1 distributed to county fairs that provide for the running of
2 races during each county fair exclusively for the
3 thoroughbreds conceived and foaled in Illinois. The
4 conditions of the races shall be developed by the county
5 fair association and reviewed by the Department with the
6 advice and assistance of the Illinois Thoroughbred
7 Breeders Fund Advisory Board. There shall be no wagering of
8 any kind on the running of Illinois conceived and foaled
9 races at county fairs.
10 (4.1) To provide purse money for an Illinois stallion
11 stakes program.
12 (5) No less than 90% 80% of all monies expended
13 appropriated from the Illinois Thoroughbred Breeders Fund
14 shall be expended for the purposes in (1), (2), (2.5), (3),
15 (4), (4.1), and (5) as shown above.
16 (6) To provide for educational programs regarding the
17 thoroughbred breeding industry.
18 (7) To provide for research programs concerning the
19 health, development and care of the thoroughbred horse.
20 (8) To provide for a scholarship and training program
21 for students of equine veterinary medicine.
22 (9) To provide for dissemination of public information
23 designed to promote the breeding of thoroughbred horses in
24 Illinois.
25 (10) To provide for all expenses incurred in the
26 administration of the Illinois Thoroughbred Breeders Fund.

10100SB0690ham002- 465 -LRB101 04451 SMS 61506 a
1 (h) The Illinois Thoroughbred Breeders Fund is not subject
2to administrative charges or chargebacks, including, but not
3limited to, those authorized under Section 8h of the State
4Finance Act. Whenever the Governor finds that the amount in the
5Illinois Thoroughbred Breeders Fund is more than the total of
6the outstanding appropriations from such fund, the Governor
7shall notify the State Comptroller and the State Treasurer of
8such fact. The Comptroller and the State Treasurer, upon
9receipt of such notification, shall transfer such excess amount
10from the Illinois Thoroughbred Breeders Fund to the General
11Revenue Fund.
12 (i) A sum equal to 13% of the first prize money of every
13purse won by an Illinois foaled or Illinois conceived and
14foaled horse in races not limited to Illinois foaled horses or
15Illinois conceived and foaled horses, or both, shall be paid by
16the organization licensee conducting the horse race meeting.
17Such sum shall be paid 50% from the organization licensee's
18share of the money wagered and 50% from the purse account as
19follows: 11 1/2% to the breeder of the winning horse and 1 1/2%
20to the organization representing thoroughbred breeders and
21owners who representative serves on the Illinois Thoroughbred
22Breeders Fund Advisory Board for verifying the amounts of
23breeders' awards earned, ensuring their distribution in
24accordance with this Act, and servicing and promoting the
25Illinois thoroughbred horse racing industry. Beginning in the
26calendar year in which an organization licensee that is

10100SB0690ham002- 466 -LRB101 04451 SMS 61506 a
1eligible to receive payments under paragraph (13) of subsection
2(g) of Section 26 of this Act begins to receive funds from
3gaming pursuant to an organization gaming license issued under
4the Illinois Gambling Act, a sum equal to 21 1/2% of the first
5prize money of every purse won by an Illinois foaled or an
6Illinois conceived and foaled horse in races not limited to an
7Illinois conceived and foaled horse, or both, shall be paid 30%
8from the organization licensee's account and 70% from the purse
9account as follows: 20% to the breeder of the winning horse and
101 1/2% to the organization representing thoroughbred breeders
11and owners whose representatives serve on the Illinois
12Thoroughbred Breeders Fund Advisory Board for verifying the
13amounts of breeders' awards earned, ensuring their
14distribution in accordance with this Act, and servicing and
15promoting the Illinois Thoroughbred racing industry. A sum
16equal to 12 1/2% of the first prize money of every purse won by
17an Illinois foaled or an Illinois conceived and foaled horse in
18races not limited to Illinois foaled horses or Illinois
19conceived and foaled horses, or both, shall be paid by the
20organization licensee conducting the horse race meeting. Such
21sum shall be paid from the organization licensee's share of the
22money wagered as follows: 11 1/2% to the breeder of the winning
23horse and 1% to the organization representing thoroughbred
24breeders and owners whose representative serves on the Illinois
25Thoroughbred Breeders Fund Advisory Board for verifying the
26amounts of breeders' awards earned, assuring their

10100SB0690ham002- 467 -LRB101 04451 SMS 61506 a
1distribution in accordance with this Act, and servicing and
2promoting the Illinois thoroughbred horse racing industry. The
3organization representing thoroughbred breeders and owners
4shall cause all expenditures of monies received under this
5subsection (i) to be audited at least annually by a registered
6public accountant. The organization shall file copies of each
7annual audit with the Racing Board, the Clerk of the House of
8Representatives and the Secretary of the Senate, and shall make
9copies of each annual audit available to the public upon
10request and upon payment of the reasonable cost of photocopying
11the requested number of copies. Such payments shall not reduce
12any award to the owner of the horse or reduce the taxes payable
13under this Act. Upon completion of its racing meet, each
14organization licensee shall deliver to the organization
15representing thoroughbred breeders and owners whose
16representative serves on the Illinois Thoroughbred Breeders
17Fund Advisory Board a listing of all the Illinois foaled and
18the Illinois conceived and foaled horses which won breeders'
19awards and the amount of such breeders' awards under this
20subsection to verify accuracy of payments and assure proper
21distribution of breeders' awards in accordance with the
22provisions of this Act. Such payments shall be delivered by the
23organization licensee within 30 days of the end of each race
24meeting.
25 (j) A sum equal to 13% of the first prize money won in
26every race limited to Illinois foaled horses or Illinois

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1conceived and foaled horses, or both, shall be paid in the
2following manner by the organization licensee conducting the
3horse race meeting, 50% from the organization licensee's share
4of the money wagered and 50% from the purse account as follows:
511 1/2% to the breeders of the horses in each such race which
6are the official first, second, third, and fourth finishers and
71 1/2% to the organization representing thoroughbred breeders
8and owners whose representatives serve on the Illinois
9Thoroughbred Breeders Fund Advisory Board for verifying the
10amounts of breeders' awards earned, ensuring their proper
11distribution in accordance with this Act, and servicing and
12promoting the Illinois horse racing industry. Beginning in the
13calendar year in which an organization licensee that is
14eligible to receive payments under paragraph (13) of subsection
15(g) of Section 26 of this Act begins to receive funds from
16gaming pursuant to an organization gaming license issued under
17the Illinois Gambling Act, a sum of 21 1/2% of every purse in a
18race limited to Illinois foaled horses or Illinois conceived
19and foaled horses, or both, shall be paid by the organization
20licensee conducting the horse race meeting. Such sum shall be
21paid 30% from the organization licensee's account and 70% from
22the purse account as follows: 20% to the breeders of the horses
23in each such race who are official first, second, third and
24fourth finishers and 1 1/2% to the organization representing
25thoroughbred breeders and owners whose representatives serve
26on the Illinois Thoroughbred Breeders Fund Advisory Board for

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

10100SB0690ham002- 470 -LRB101 04451 SMS 61506 a
1their proper distribution in accordance with this Act, and
2servicing and promoting the Illinois thoroughbred horse racing
3industry. The organization representing thoroughbred breeders
4and owners shall cause all expenditures of monies received
5under this subsection (j) to be audited at least annually by a
6registered public accountant. The organization shall file
7copies of each annual audit with the Racing Board, the Clerk of
8the House of Representatives and the Secretary of the Senate,
9and shall make copies of each annual audit available to the
10public upon request and upon payment of the reasonable cost of
11photocopying the requested number of copies.
12 The amounts 11 1/2% paid to the breeders in accordance with
13this subsection shall be distributed as follows:
14 (1) 60% of such sum shall be paid to the breeder of the
15 horse which finishes in the official first position;
16 (2) 20% of such sum shall be paid to the breeder of the
17 horse which finishes in the official second position;
18 (3) 15% of such sum shall be paid to the breeder of the
19 horse which finishes in the official third position; and
20 (4) 5% of such sum shall be paid to the breeder of the
21 horse which finishes in the official fourth position.
22 Such payments shall not reduce any award to the owners of a
23horse or reduce the taxes payable under this Act. Upon
24completion of its racing meet, each organization licensee shall
25deliver to the organization representing thoroughbred breeders
26and owners whose representative serves on the Illinois

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1Thoroughbred Breeders Fund Advisory Board a listing of all the
2Illinois foaled and the Illinois conceived and foaled horses
3which won breeders' awards and the amount of such breeders'
4awards in accordance with the provisions of this Act. Such
5payments shall be delivered by the organization licensee within
630 days of the end of each race meeting.
7 (k) The term "breeder", as used herein, means the owner of
8the mare at the time the foal is dropped. An "Illinois foaled
9horse" is a foal dropped by a mare which enters this State on
10or before December 1, in the year in which the horse is bred,
11provided the mare remains continuously in this State until its
12foal is born. An "Illinois foaled horse" also means a foal born
13of a mare in the same year as the mare enters this State on or
14before March 1, and remains in this State at least 30 days
15after foaling, is bred back during the season of the foaling to
16an Illinois Registered Stallion (unless a veterinarian
17certifies that the mare should not be bred for health reasons),
18and is not bred to a stallion standing in any other state
19during the season of foaling. An "Illinois foaled horse" also
20means a foal born in Illinois of a mare purchased at public
21auction subsequent to the mare entering this State on or before
22March 1 prior to February 1 of the foaling year providing the
23mare is owned solely by one or more Illinois residents or an
24Illinois entity that is entirely owned by one or more Illinois
25residents.
26 (l) The Department of Agriculture shall, by rule, with the

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

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1 paid into the Illinois Thoroughbred Breeders Fund. No
2 person shall knowingly prepare or cause preparation of an
3 application for registration of such foals containing
4 false information.
5 (m) The Department of Agriculture, with the advice and
6assistance of the Illinois Thoroughbred Breeders Fund Advisory
7Board, shall provide that certain races limited to Illinois
8conceived and foaled and Illinois foaled horses be stakes races
9and determine the total amount of stakes and awards to be paid
10to the owners of the winning horses in such races.
11 In determining the stakes races and the amount of awards
12for such races, the Department of Agriculture shall consider
13factors, including but not limited to, the amount of money
14appropriated for the Illinois Thoroughbred Breeders Fund
15program, organization licensees' contributions, availability
16of stakes caliber horses as demonstrated by past performances,
17whether the race can be coordinated into the proposed racing
18dates within organization licensees' racing dates, opportunity
19for colts and fillies and various age groups to race, public
20wagering on such races, and the previous racing schedule.
21 (n) The Board and the organization organizational licensee
22shall notify the Department of the conditions and minimum
23purses for races limited to Illinois conceived and foaled and
24Illinois foaled horses conducted for each organization
25organizational licensee conducting a thoroughbred racing
26meeting. The Department of Agriculture with the advice and

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1assistance of the Illinois Thoroughbred Breeders Fund Advisory
2Board may allocate monies for purse supplements for such races.
3In determining whether to allocate money and the amount, the
4Department of Agriculture shall consider factors, including
5but not limited to, the amount of money appropriated for the
6Illinois Thoroughbred Breeders Fund program, the number of
7races that may occur, and the organization organizational
8licensee's purse structure.
9 (o) (Blank).
10(Source: P.A. 98-692, eff. 7-1-14.)
11 (230 ILCS 5/30.5)
12 Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
13 (a) The General Assembly declares that it is the policy of
14this State to encourage the breeding of racing quarter horses
15in this State and the ownership of such horses by residents of
16this State in order to provide for sufficient numbers of high
17quality racing quarter horses in this State and to establish
18and preserve the agricultural and commercial benefits of such
19breeding and racing industries to the State of Illinois. It is
20the intent of the General Assembly to further this policy by
21the provisions of this Act.
22 (b) There is hereby created a special fund in the State
23Treasury to be known as the Illinois Racing Quarter Horse
24Breeders Fund. Except as provided in subsection (g) of Section
2527 of this Act, 8.5% of all the moneys received by the State as

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1pari-mutuel taxes on quarter horse racing shall be paid into
2the Illinois Racing Quarter Horse Breeders Fund. The Illinois
3Racing Quarter Horse Breeders Fund shall not be subject to
4administrative charges or chargebacks, including, but not
5limited to, those authorized under Section 8h of the State
6Finance Act.
7 (c) The Illinois Racing Quarter Horse Breeders Fund shall
8be administered by the Department of Agriculture with the
9advice and assistance of the Advisory Board created in
10subsection (d) of this Section.
11 (d) The Illinois Racing Quarter Horse Breeders Fund
12Advisory Board shall consist of the Director of the Department
13of Agriculture, who shall serve as Chairman; a member of the
14Illinois Racing Board, designated by it; one representative of
15the organization licensees conducting pari-mutuel quarter
16horse racing meetings, recommended by them; 2 representatives
17of the Illinois Running Quarter Horse Association, recommended
18by it; and the Superintendent of Fairs and Promotions from the
19Department of Agriculture. Advisory Board members shall serve
20for 2 years commencing January 1 of each odd numbered year. If
21representatives have not been recommended by January 1 of each
22odd numbered year, the Director of the Department of
23Agriculture may make an appointment for the organization
24failing to so recommend a member of the Advisory Board.
25Advisory Board members shall receive no compensation for their
26services as members but may be reimbursed for all actual and

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1necessary expenses and disbursements incurred in the execution
2of their official duties.
3 (e) Moneys in No moneys shall be expended from the Illinois
4Racing Quarter Horse Breeders Fund except as appropriated by
5the General Assembly. Moneys appropriated from the Illinois
6Racing Quarter Horse Breeders Fund shall be expended by the
7Department of Agriculture, with the advice and assistance of
8the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
9for the following purposes only:
10 (1) To provide stakes and awards to be paid to the
11 owners of the winning horses in certain races. This
12 provision is limited to Illinois conceived and foaled
13 horses.
14 (2) To provide an award to the owner or owners of an
15 Illinois conceived and foaled horse that wins a race when
16 pari-mutuel wagering is conducted; providing the race is
17 not restricted to Illinois conceived and foaled horses.
18 (3) To provide purse money for an Illinois stallion
19 stakes program.
20 (4) To provide for purses to be distributed for the
21 running of races during the Illinois State Fair and the
22 DuQuoin State Fair exclusively for quarter horses
23 conceived and foaled in Illinois.
24 (5) To provide for purses to be distributed for the
25 running of races at Illinois county fairs exclusively for
26 quarter horses conceived and foaled in Illinois.

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

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1 conceived. The Department of Agriculture may assess and
2 collect application fees for the registration of
3 Illinois-eligible stallions. All fees collected are to be
4 paid into the Illinois Racing Quarter Horse Breeders Fund.
5 (2) Provide for the registration of Illinois conceived
6 and foaled horses. No such horse shall compete in the races
7 limited to Illinois conceived and foaled horses unless it
8 is registered with the Department of Agriculture. The
9 Department of Agriculture may prescribe such forms as are
10 necessary to determine the eligibility of such horses. The
11 Department of Agriculture may assess and collect
12 application fees for the registration of Illinois-eligible
13 foals. All fees collected are to be paid into the Illinois
14 Racing Quarter Horse Breeders Fund. No person shall
15 knowingly prepare or cause preparation of an application
16 for registration of such foals that contains false
17 information.
18 (g) The Department of Agriculture, with the advice and
19assistance of the Illinois Racing Quarter Horse Breeders Fund
20Advisory Board, shall provide that certain races limited to
21Illinois conceived and foaled be stakes races and determine the
22total amount of stakes and awards to be paid to the owners of
23the winning horses in such races.
24(Source: P.A. 98-463, eff. 8-16-13.)
25 (230 ILCS 5/31) (from Ch. 8, par. 37-31)

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1 Sec. 31. (a) The General Assembly declares that it is the
2policy of this State to encourage the breeding of standardbred
3horses in this State and the ownership of such horses by
4residents of this State in order to provide for: sufficient
5numbers of high quality standardbred horses to participate in
6harness racing meetings in this State, and to establish and
7preserve the agricultural and commercial benefits of such
8breeding and racing industries to the State of Illinois. It is
9the intent of the General Assembly to further this policy by
10the provisions of this Section of this Act.
11 (b) Each organization licensee conducting a harness racing
12meeting pursuant to this Act shall provide for at least two
13races each race program limited to Illinois conceived and
14foaled horses. A minimum of 6 races shall be conducted each
15week limited to Illinois conceived and foaled horses. No horses
16shall be permitted to start in such races unless duly
17registered under the rules of the Department of Agriculture.
18 (b-5) Organization licensees, not including the Illinois
19State Fair or the DuQuoin State Fair, shall provide stake races
20and early closer races for Illinois conceived and foaled horses
21so that purses distributed for such races shall be no less than
2217% of total purses distributed for harness racing in that
23calendar year in addition to any stakes payments and starting
24fees contributed by horse owners.
25 (b-10) Each organization licensee conducting a harness
26racing meeting pursuant to this Act shall provide an owner

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1award to be paid from the purse account equal to 12% of the
2amount earned by Illinois conceived and foaled horses finishing
3in the first 3 positions in races that are not restricted to
4Illinois conceived and foaled horses. The owner awards shall
5not be paid on races below the $10,000 claiming class.
6 (c) Conditions of races under subsection (b) shall be
7commensurate with past performance, quality and class of
8Illinois conceived and foaled horses available. If, however,
9sufficient competition cannot be had among horses of that class
10on any day, the races may, with consent of the Board, be
11eliminated for that day and substitute races provided.
12 (d) There is hereby created a special fund of the State
13Treasury to be known as the Illinois Standardbred Breeders
14Fund. Beginning on the effective date of this amendatory Act of
15the 101st General Assembly, the Illinois Standardbred Breeders
16Fund shall become a non-appropriated trust fund held separate
17and apart from State moneys. Expenditures from this Fund shall
18no longer be subject to appropriation.
19 During the calendar year 1981, and each year thereafter,
20except as provided in subsection (g) of Section 27 of this Act,
21eight and one-half per cent of all the monies received by the
22State as privilege taxes on harness racing meetings shall be
23paid into the Illinois Standardbred Breeders Fund.
24 (e) Notwithstanding any provision of law to the contrary,
25amounts deposited into the Illinois Standardbred Breeders Fund
26from revenues generated by gaming pursuant to an organization

10100SB0690ham002- 481 -LRB101 04451 SMS 61506 a
1gaming license issued under the Illinois Gambling Act after the
2effective date of this amendatory Act of the 101st General
3Assembly shall be in addition to tax and fee amounts paid under
4this Section for calendar year 2019 and thereafter. The
5Illinois Standardbred Breeders Fund shall be administered by
6the Department of Agriculture with the assistance and advice of
7the Advisory Board created in subsection (f) of this Section.
8 (f) The Illinois Standardbred Breeders Fund Advisory Board
9is hereby created. The Advisory Board shall consist of the
10Director of the Department of Agriculture, who shall serve as
11Chairman; the Superintendent of the Illinois State Fair; a
12member of the Illinois Racing Board, designated by it; a
13representative of the largest association of Illinois
14standardbred owners and breeders, recommended by it; a
15representative of a statewide association representing
16agricultural fairs in Illinois, recommended by it, such
17representative to be from a fair at which Illinois conceived
18and foaled racing is conducted; a representative of the
19organization licensees conducting harness racing meetings,
20recommended by them; a representative of the Breeder's
21Committee of the association representing the largest number of
22standardbred owners, breeders, trainers, caretakers, and
23drivers, recommended by it; and a representative of the
24association representing the largest number of standardbred
25owners, breeders, trainers, caretakers, and drivers,
26recommended by it. Advisory Board members shall serve for 2

10100SB0690ham002- 482 -LRB101 04451 SMS 61506 a
1years commencing January 1 of each odd numbered year. If
2representatives of the largest association of Illinois
3standardbred owners and breeders, a statewide association of
4agricultural fairs in Illinois, the association representing
5the largest number of standardbred owners, breeders, trainers,
6caretakers, and drivers, a member of the Breeder's Committee of
7the association representing the largest number of
8standardbred owners, breeders, trainers, caretakers, and
9drivers, and the organization licensees conducting harness
10racing meetings have not been recommended by January 1 of each
11odd numbered year, the Director of the Department of
12Agriculture shall make an appointment for the organization
13failing to so recommend a member of the Advisory Board.
14Advisory Board members shall receive no compensation for their
15services as members but shall be reimbursed for all actual and
16necessary expenses and disbursements incurred in the execution
17of their official duties.
18 (g) No monies shall be expended from the Illinois
19Standardbred Breeders Fund except as appropriated by the
20General Assembly. Monies expended appropriated from the
21Illinois Standardbred Breeders Fund shall be expended by the
22Department of Agriculture, with the assistance and advice of
23the Illinois Standardbred Breeders Fund Advisory Board for the
24following purposes only:
25 1. To provide purses for races limited to Illinois
26 conceived and foaled horses at the State Fair and the

10100SB0690ham002- 483 -LRB101 04451 SMS 61506 a
1 DuQuoin State Fair.
2 2. To provide purses for races limited to Illinois
3 conceived and foaled horses at county fairs.
4 3. To provide purse supplements for races limited to
5 Illinois conceived and foaled horses conducted by
6 associations conducting harness racing meetings.
7 4. No less than 75% of all monies in the Illinois
8 Standardbred Breeders Fund shall be expended for purses in
9 1, 2 and 3 as shown above.
10 5. In the discretion of the Department of Agriculture
11 to provide awards to harness breeders of Illinois conceived
12 and foaled horses which win races conducted by organization
13 licensees conducting harness racing meetings. A breeder is
14 the owner of a mare at the time of conception. No more than
15 10% of all monies appropriated from the Illinois
16 Standardbred Breeders Fund shall be expended for such
17 harness breeders awards. No more than 25% of the amount
18 expended for harness breeders awards shall be expended for
19 expenses incurred in the administration of such harness
20 breeders awards.
21 6. To pay for the improvement of racing facilities
22 located at the State Fair and County fairs.
23 7. To pay the expenses incurred in the administration
24 of the Illinois Standardbred Breeders Fund.
25 8. To promote the sport of harness racing, including
26 grants up to a maximum of $7,500 per fair per year for

10100SB0690ham002- 484 -LRB101 04451 SMS 61506 a
1 conducting pari-mutuel wagering during the advertised
2 dates of a county fair.
3 9. To pay up to $50,000 annually for the Department of
4 Agriculture to conduct drug testing at county fairs racing
5 standardbred horses.
6 (h) The Illinois Standardbred Breeders Fund is not subject
7to administrative charges or chargebacks, including, but not
8limited to, those authorized under Section 8h of the State
9Finance Act. Whenever the Governor finds that the amount in the
10Illinois Standardbred Breeders Fund is more than the total of
11the outstanding appropriations from such fund, the Governor
12shall notify the State Comptroller and the State Treasurer of
13such fact. The Comptroller and the State Treasurer, upon
14receipt of such notification, shall transfer such excess amount
15from the Illinois Standardbred Breeders Fund to the General
16Revenue Fund.
17 (i) A sum equal to 13% 12 1/2% of the first prize money of
18the gross every purse won by an Illinois conceived and foaled
19horse shall be paid 50% by the organization licensee conducting
20the horse race meeting to the breeder of such winning horse
21from the organization licensee's account and 50% from the purse
22account of the licensee share of the money wagered. Such
23payment shall not reduce any award to the owner of the horse or
24reduce the taxes payable under this Act. Such payment shall be
25delivered by the organization licensee at the end of each
26quarter race meeting.

10100SB0690ham002- 485 -LRB101 04451 SMS 61506 a
1 (j) The Department of Agriculture shall, by rule, with the
2assistance and advice of the Illinois Standardbred Breeders
3Fund Advisory Board:
4 1. Qualify stallions for Illinois Standardbred
5 Breeders Fund breeding; such stallion shall be owned by a
6 resident of the State of Illinois or by an Illinois
7 corporation all of whose shareholders, directors, officers
8 and incorporators are residents of the State of Illinois.
9 Such stallion shall stand for service at and within the
10 State of Illinois at the time of a foal's conception, and
11 such stallion must not stand for service at any place, nor
12 may semen from such stallion be transported, outside the
13 State of Illinois during that calendar year in which the
14 foal is conceived and that the owner of the stallion was
15 for the 12 months prior, a resident of Illinois. However,
16 from January 1, 2018 until January 1, 2022, semen from an
17 Illinois stallion may be transported outside the State of
18 Illinois. The articles of agreement of any partnership,
19 joint venture, limited partnership, syndicate, association
20 or corporation and any bylaws and stock certificates must
21 contain a restriction that provides that the ownership or
22 transfer of interest by any one of the persons a party to
23 the agreement can only be made to a person who qualifies as
24 an Illinois resident.
25 2. Provide for the registration of Illinois conceived
26 and foaled horses and no such horse shall compete in the

10100SB0690ham002- 486 -LRB101 04451 SMS 61506 a
1 races limited to Illinois conceived and foaled horses
2 unless registered with the Department of Agriculture. The
3 Department of Agriculture may prescribe such forms as may
4 be necessary to determine the eligibility of such horses.
5 No person shall knowingly prepare or cause preparation of
6 an application for registration of such foals containing
7 false information. A mare (dam) must be in the State at
8 least 30 days prior to foaling or remain in the State at
9 least 30 days at the time of foaling. However, the
10 requirement that a mare (dam) must be in the State at least
11 30 days before foaling or remain in the State at least 30
12 days at the time of foaling shall not be in effect from
13 January 1, 2018 until January 1, 2022. Beginning with the
14 1996 breeding season and for foals of 1997 and thereafter,
15 a foal conceived by transported semen may be eligible for
16 Illinois conceived and foaled registration provided all
17 breeding and foaling requirements are met. The stallion
18 must be qualified for Illinois Standardbred Breeders Fund
19 breeding at the time of conception and the mare must be
20 inseminated within the State of Illinois. The foal must be
21 dropped in Illinois and properly registered with the
22 Department of Agriculture in accordance with this Act.
23 However, from January 1, 2018 until January 1, 2022, the
24 requirement for a mare to be inseminated within the State
25 of Illinois and the requirement for a foal to be dropped in
26 Illinois are inapplicable.

10100SB0690ham002- 487 -LRB101 04451 SMS 61506 a
1 3. Provide that at least a 5 day racing program shall
2 be conducted at the State Fair each year, which program
3 shall include at least the following races limited to
4 Illinois conceived and foaled horses: (a) a two year old
5 Trot and Pace, and Filly Division of each; (b) a three year
6 old Trot and Pace, and Filly Division of each; (c) an aged
7 Trot and Pace, and Mare Division of each.
8 4. Provide for the payment of nominating, sustaining
9 and starting fees for races promoting the sport of harness
10 racing and for the races to be conducted at the State Fair
11 as provided in subsection (j) 3 of this Section provided
12 that the nominating, sustaining and starting payment
13 required from an entrant shall not exceed 2% of the purse
14 of such race. All nominating, sustaining and starting
15 payments shall be held for the benefit of entrants and
16 shall be paid out as part of the respective purses for such
17 races. Nominating, sustaining and starting fees shall be
18 held in trust accounts for the purposes as set forth in
19 this Act and in accordance with Section 205-15 of the
20 Department of Agriculture Law (20 ILCS 205/205-15).
21 5. Provide for the registration with the Department of
22 Agriculture of Colt Associations or county fairs desiring
23 to sponsor races at county fairs.
24 6. Provide for the promotion of producing standardbred
25 racehorses by providing a bonus award program for owners of
26 2-year-old horses that win multiple major stakes races that

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

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1standardbred horse unless he or she is wearing a protective
2safety helmet, with the chin strap fastened and in place, which
3meets the standards and requirements as set forth in the 1984
4Standard for Protective Headgear for Use in Harness Racing and
5Other Equestrian Sports published by the Snell Memorial
6Foundation, or any standards and requirements for headgear the
7Illinois Racing Board may approve. Any other standards and
8requirements so approved by the Board shall equal or exceed
9those published by the Snell Memorial Foundation. Any
10equestrian helmet bearing the Snell label shall be deemed to
11have met those standards and requirements.
12(Source: P.A. 99-756, eff. 8-12-16; 100-777, eff. 8-10-18.)
13 (230 ILCS 5/31.1) (from Ch. 8, par. 37-31.1)
14 Sec. 31.1. (a) Unless subsection (a-5) applies,
15organization Organization licensees collectively shall
16contribute annually to charity the sum of $750,000 to
17non-profit organizations that provide medical and family,
18counseling, and similar services to persons who reside or work
19on the backstretch of Illinois racetracks. Unless subsection
20(a-5) applies, these These contributions shall be collected as
21follows: (i) no later than July 1st of each year the Board
22shall assess each organization licensee, except those tracks
23located in Madison County, which are not within 100 miles of
24each other which tracks shall pay $30,000 annually apiece into
25the Board charity fund, that amount which equals $690,000

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1multiplied by the amount of pari-mutuel wagering handled by the
2organization licensee in the year preceding assessment and
3divided by the total pari-mutuel wagering handled by all
4Illinois organization licensees, except those tracks located
5in Madison and Rock Island counties which are not within 100
6miles of each other, in the year preceding assessment; (ii)
7notice of the assessed contribution shall be mailed to each
8organization licensee; (iii) within thirty days of its receipt
9of such notice, each organization licensee shall remit the
10assessed contribution to the Board. Unless subsection (a-5)
11applies, if an organization licensee commences operation of
12gaming at its facility pursuant to an organization gaming
13license under the Illinois Gambling Act, then the organization
14licensee shall contribute an additional $83,000 per year
15beginning in the year subsequent to the first year in which the
16organization licensee begins receiving funds from gaming
17pursuant to an organization gaming license. If an organization
18licensee wilfully fails to so remit the contribution, the Board
19may revoke its license to conduct horse racing.
20 (a-5) If (1) an organization licensee that did not operate
21live racing in 2017 is awarded racing dates in 2018 or in any
22subsequent year and (2) all organization licensees are
23operating gaming pursuant to an organization gaming license
24under the Illinois Gambling Act, then subsection (a) does not
25apply and organization licensees collectively shall contribute
26annually to charity the sum of $1,000,000 to non-profit

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1organizations that provide medical and family, counseling, and
2similar services to persons who reside or work on the
3backstretch of Illinois racetracks. These contributions shall
4be collected as follows: (i) no later than July 1st of each
5year the Board shall assess each organization licensee an
6amount based on the proportionate amount of live racing days in
7the calendar year for which the Board has awarded to the
8organization licensee out of the total aggregate number of live
9racing days awarded; (ii) notice of the assessed contribution
10shall be mailed to each organization licensee; (iii) within 30
11days after its receipt of such notice, each organization
12licensee shall remit the assessed contribution to the Board. If
13an organization licensee willfully fails to so remit the
14contribution, the Board may revoke its license to conduct horse
15racing.
16 (b) No later than October 1st of each year, any qualified
17charitable organization seeking an allotment of contributed
18funds shall submit to the Board an application for those funds,
19using the Board's approved form. No later than December 31st of
20each year, the Board shall distribute all such amounts
21collected that year to such charitable organization
22applicants.
23(Source: P.A. 87-110.)
24 (230 ILCS 5/32.1)
25 Sec. 32.1. Pari-mutuel tax credit; statewide racetrack

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1real estate equalization.
2 (a) In order to encourage new investment in Illinois
3racetrack facilities and mitigate differing real estate tax
4burdens among all racetracks, the licensees affiliated or
5associated with each racetrack that has been awarded live
6racing dates in the current year shall receive an immediate
7pari-mutuel tax credit in an amount equal to the greater of (i)
850% of the amount of the real estate taxes paid in the prior
9year attributable to that racetrack, or (ii) the amount by
10which the real estate taxes paid in the prior year attributable
11to that racetrack exceeds 60% of the average real estate taxes
12paid in the prior year for all racetracks awarded live horse
13racing meets in the current year.
14 Each year, regardless of whether the organization licensee
15conducted live racing in the year of certification, the Board
16shall certify in writing, prior to December 31, the real estate
17taxes paid in that year for each racetrack and the amount of
18the pari-mutuel tax credit that each organization licensee,
19inter-track wagering licensee, and inter-track wagering
20location licensee that derives its license from such racetrack
21is entitled in the succeeding calendar year. The real estate
22taxes considered under this Section for any racetrack shall be
23those taxes on the real estate parcels and related facilities
24used to conduct a horse race meeting and inter-track wagering
25at such racetrack under this Act. In no event shall the amount
26of the tax credit under this Section exceed the amount of

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1pari-mutuel taxes otherwise calculated under this Act. The
2amount of the tax credit under this Section shall be retained
3by each licensee and shall not be subject to any reallocation
4or further distribution under this Act. The Board may
5promulgate emergency rules to implement this Section.
6 (b) If the organization licensee is operating gaming
7pursuant to an organization gaming license issued under the
8Illinois Gambling Act, except the organization licensee
9described in Section 19.5, then, for the 5-year period
10beginning on the January 1 of the calendar year immediately
11following the calendar year during which an organization
12licensee begins conducting gaming operations pursuant to an
13organization gaming license issued under the Illinois Gambling
14Act, the organization licensee shall make capital
15expenditures, in an amount equal to no less than 50% of the tax
16credit under this Section, to the improvement and maintenance
17of the backstretch, including, but not limited to, backstretch
18barns, dormitories, and services for backstretch workers.
19Those capital expenditures must be in addition to, and not in
20lieu of, the capital expenditures made for backstretch
21improvements in calendar year 2015, as reported to the Board in
22the organization licensee's application for racing dates and as
23certified by the Board. The organization licensee is required
24to annually submit the list and amounts of these capital
25expenditures to the Board by January 30th of the year following
26the expenditure.

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1 (c) If the organization licensee is conducting gaming in
2accordance with paragraph (b), then, after the 5-year period
3beginning on January 1 of the calendar year immediately
4following the calendar year during which an organization
5licensee begins conducting gaming operations pursuant to an
6organization gaming license issued under the Illinois Gambling
7Act, the organization license is ineligible to receive a tax
8credit under this Section.
9(Source: P.A. 100-201, eff. 8-18-17.)
10 (230 ILCS 5/34.3 new)
11 Sec. 34.3. Drug testing. The Illinois Racing Board and the
12Department of Agriculture shall jointly establish a program for
13the purpose of conducting drug testing of horses at county
14fairs and shall adopt any rules necessary for enforcement of
15the program. The rules shall include appropriate penalties for
16violations.
17 (230 ILCS 5/36) (from Ch. 8, par. 37-36)
18 Sec. 36. (a) Whoever administers or conspires to administer
19to any horse a hypnotic, narcotic, stimulant, depressant or any
20chemical substance which may affect the speed of a horse at any
21time in any race where the purse or any part of the purse is
22made of money authorized by any Section of this Act, except
23those chemical substances permitted by ruling of the Board,
24internally, externally or by hypodermic method in a race or

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1prior thereto, or whoever knowingly enters a horse in any race
2within a period of 24 hours after any hypnotic, narcotic,
3stimulant, depressant or any other chemical substance which may
4affect the speed of a horse at any time, except those chemical
5substances permitted by ruling of the Board, has been
6administered to such horse either internally or externally or
7by hypodermic method for the purpose of increasing or retarding
8the speed of such horse shall be guilty of a Class 4 felony.
9The Board shall suspend or revoke such violator's license.
10 (b) The term "hypnotic" as used in this Section includes
11all barbituric acid preparations and derivatives.
12 (c) The term "narcotic" as used in this Section includes
13opium and all its alkaloids, salts, preparations and
14derivatives, cocaine and all its salts, preparations and
15derivatives and substitutes.
16 (d) The provisions of this Section and the treatment
17authorized in this Section apply to horses entered in and
18competing in race meetings as defined in Section 3.07 of this
19Act and to horses entered in and competing at any county fair.
20(Source: P.A. 79-1185.)
21 (230 ILCS 5/40) (from Ch. 8, par. 37-40)
22 Sec. 40. (a) The imposition of any fine or penalty provided
23in this Act shall not preclude the Board in its rules and
24regulations from imposing a fine or penalty for any other
25action which, in the Board's discretion, is a detriment or

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1impediment to horse racing.
2 (b) The Director of Agriculture or his or her authorized
3representative shall impose the following monetary penalties
4and hold administrative hearings as required for failure to
5submit the following applications, lists, or reports within the
6time period, date or manner required by statute or rule or for
7removing a foal from Illinois prior to inspection:
8 (1) late filing of a renewal application for offering
9 or standing stallion for service:
10 (A) if an application is submitted no more than 30
11 days late, $50;
12 (B) if an application is submitted no more than 45
13 days late, $150; or
14 (C) if an application is submitted more than 45
15 days late, if filing of the application is allowed
16 under an administrative hearing, $250;
17 (2) late filing of list or report of mares bred:
18 (A) if a list or report is submitted no more than
19 30 days late, $50;
20 (B) if a list or report is submitted no more than
21 60 days late, $150; or
22 (C) if a list or report is submitted more than 60
23 days late, if filing of the list or report is allowed
24 under an administrative hearing, $250;
25 (3) filing an Illinois foaled thoroughbred mare status
26 report after the statutory deadline as provided in

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1 subsection (k) of Section 30 of this Act December 31:
2 (A) if a report is submitted no more than 30 days
3 late, $50;
4 (B) if a report is submitted no more than 90 days
5 late, $150;
6 (C) if a report is submitted no more than 150 days
7 late, $250; or
8 (D) if a report is submitted more than 150 days
9 late, if filing of the report is allowed under an
10 administrative hearing, $500;
11 (4) late filing of application for foal eligibility
12 certificate:
13 (A) if an application is submitted no more than 30
14 days late, $50;
15 (B) if an application is submitted no more than 90
16 days late, $150;
17 (C) if an application is submitted no more than 150
18 days late, $250; or
19 (D) if an application is submitted more than 150
20 days late, if filing of the application is allowed
21 under an administrative hearing, $500;
22 (5) failure to report the intent to remove a foal from
23 Illinois prior to inspection, identification and
24 certification by a Department of Agriculture investigator,
25 $50; and
26 (6) if a list or report of mares bred is incomplete,

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1 $50 per mare not included on the list or report.
2 Any person upon whom monetary penalties are imposed under
3this Section 3 times within a 5-year period shall have any
4further monetary penalties imposed at double the amounts set
5forth above. All monies assessed and collected for violations
6relating to thoroughbreds shall be paid into the Illinois
7Thoroughbred Breeders Fund. All monies assessed and collected
8for violations relating to standardbreds shall be paid into the
9Illinois Standardbred Breeders Fund.
10(Source: P.A. 99-933, eff. 1-27-17; 100-201, eff. 8-18-17.)
11 (230 ILCS 5/54.75)
12 Sec. 54.75. Horse Racing Equity Trust Fund.
13 (a) There is created a Fund to be known as the Horse Racing
14Equity Trust Fund, which is a non-appropriated trust fund held
15separate and apart from State moneys. The Fund shall consist of
16moneys paid into it by owners licensees under the Illinois
17Riverboat Gambling Act for the purposes described in this
18Section. The Fund shall be administered by the Board. Moneys in
19the Fund shall be distributed as directed and certified by the
20Board in accordance with the provisions of subsection (b).
21 (b) The moneys deposited into the Fund, plus any accrued
22interest on those moneys, shall be distributed within 10 days
23after those moneys are deposited into the Fund as follows:
24 (1) Sixty percent of all moneys distributed under this
25 subsection shall be distributed to organization licensees

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1 to be distributed at their race meetings as purses.
2 Fifty-seven percent of the amount distributed under this
3 paragraph (1) shall be distributed for thoroughbred race
4 meetings and 43% shall be distributed for standardbred race
5 meetings. Within each breed, moneys shall be allocated to
6 each organization licensee's purse fund in accordance with
7 the ratio between the purses generated for that breed by
8 that licensee during the prior calendar year and the total
9 purses generated throughout the State for that breed during
10 the prior calendar year by licensees in the current
11 calendar year.
12 (2) The remaining 40% of the moneys distributed under
13 this subsection (b) shall be distributed as follows:
14 (A) 11% shall be distributed to any person (or its
15 successors or assigns) who had operating control of a
16 racetrack that conducted live racing in 2002 at a
17 racetrack in a county with at least 230,000 inhabitants
18 that borders the Mississippi River and is a licensee in
19 the current year; and
20 (B) the remaining 89% shall be distributed pro rata
21 according to the aggregate proportion of total handle
22 from wagering on live races conducted in Illinois
23 (irrespective of where the wagers are placed) for
24 calendar years 2004 and 2005 to any person (or its
25 successors or assigns) who (i) had majority operating
26 control of a racing facility at which live racing was

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1 conducted in calendar year 2002, (ii) is a licensee in
2 the current year, and (iii) is not eligible to receive
3 moneys under subparagraph (A) of this paragraph (2).
4 The moneys received by an organization licensee
5 under this paragraph (2) shall be used by each
6 organization licensee to improve, maintain, market,
7 and otherwise operate its racing facilities to conduct
8 live racing, which shall include backstretch services
9 and capital improvements related to live racing and the
10 backstretch. Any organization licensees sharing common
11 ownership may pool the moneys received and spent at all
12 racing facilities commonly owned in order to meet these
13 requirements.
14 If any person identified in this paragraph (2) becomes
15 ineligible to receive moneys from the Fund, such amount
16 shall be redistributed among the remaining persons in
17 proportion to their percentages otherwise calculated.
18 (c) The Board shall monitor organization licensees to
19ensure that moneys paid to organization licensees under this
20Section are distributed by the organization licensees as
21provided in subsection (b).
22(Source: P.A. 95-1008, eff. 12-15-08.)
23 (230 ILCS 5/56 new)
24 Sec. 56. Gaming pursuant to an organization gaming license.
25 (a) A person, firm, corporation, partnership, or limited

10100SB0690ham002- 501 -LRB101 04451 SMS 61506 a
1liability company having operating control of a racetrack may
2apply to the Gaming Board for an organization gaming license.
3An organization gaming license shall authorize its holder to
4conduct gaming on the grounds of the racetrack of which the
5organization gaming licensee has operating control. Only one
6organization gaming license may be awarded for any racetrack. A
7holder of an organization gaming license shall be subject to
8the Illinois Gambling Act and rules of the Illinois Gaming
9Board concerning gaming pursuant to an organization gaming
10license issued under the Illinois Gambling Act. If the person,
11firm, corporation, or limited liability company having
12operating control of a racetrack is found by the Illinois
13Gaming Board to be unsuitable for an organization gaming
14license under the Illinois Gambling Act and rules of the Gaming
15Board, that person, firm, corporation, or limited liability
16company shall not be granted an organization gaming license.
17Each license shall specify the number of gaming positions that
18its holder may operate.
19 An organization gaming licensee may not permit patrons
20under 21 years of age to be present in its organization gaming
21facility, but the licensee may accept wagers on live racing and
22inter-track wagers at its organization gaming facility.
23 (b) For purposes of this subsection, "adjusted gross
24receipts" means an organization gaming licensee's gross
25receipts less winnings paid to wagerers and shall also include
26any amounts that would otherwise be deducted pursuant to

10100SB0690ham002- 502 -LRB101 04451 SMS 61506 a
1subsection (a-9) of Section 13 of the Illinois Gambling Act.
2The adjusted gross receipts by an organization gaming licensee
3from gaming pursuant to an organization gaming license issued
4under the Illinois Gambling Act remaining after the payment of
5taxes under Section 13 of the Illinois Gambling Act shall be
6distributed as follows:
7 (1) Amounts shall be paid to the purse account at the
8 track at which the organization licensee is conducting
9 racing equal to the following:
10 12.75% of annual adjusted gross receipts up to and
11 including $93,000,000;
12 20% of annual adjusted gross receipts in excess of
13 $93,000,000 but not exceeding $100,000,000;
14 26.5% of annual adjusted gross receipts in excess
15 of $100,000,000 but not exceeding $125,000,000; and
16 20.5% of annual adjusted gross receipts in excess
17 of $125,000,000.
18 If 2 different breeds race at the same racetrack in the
19 same calendar year, the purse moneys allocated under this
20 subsection (b) shall be divided pro rata based on live
21 racing days awarded by the Board to that race track for
22 each breed. However, the ratio may not exceed 60% for
23 either breed, except if one breed is awarded fewer than 20
24 live racing days, in which case the purse moneys allocated
25 shall be divided pro rata based on live racing days.
26 (2) The remainder shall be retained by the organization

10100SB0690ham002- 503 -LRB101 04451 SMS 61506 a
1 gaming licensee.
2 (c) Annually, from the purse account of an organization
3licensee racing thoroughbred horses in this State, except for
4in Madison County, an amount equal to 12% of the gaming
5receipts from gaming pursuant to an organization gaming license
6placed into the purse accounts shall be paid to the Illinois
7Thoroughbred Breeders Fund and shall be used for owner awards;
8a stallion program pursuant to paragraph (3) of subsection (g)
9of Section 30 of this Act; and Illinois conceived and foaled
10stakes races pursuant to paragraph (2) of subsection (g) of
11Section 30 of this Act, as specifically designated by the
12horsemen association representing the largest number of owners
13and trainers who race at the organization licensee's race
14meetings.
15 Annually, from the purse account of an organization
16licensee racing thoroughbred horses in Madison County, an
17amount equal to 10% of the gaming receipts from gaming pursuant
18to an organization gaming license placed into the purse
19accounts shall be paid to the Illinois Thoroughbred Breeders
20Fund and shall be used for owner awards; a stallion program
21pursuant to paragraph (3) of subsection (g) of Section 30 of
22this Act; and Illinois conceived and foaled stakes races
23pursuant to paragraph (2) of subsection (g) of Section 30 of
24this Act, as specifically designated by the horsemen
25association representing the largest number of owners and
26trainers who race at the organization licensee's race meetings.

10100SB0690ham002- 504 -LRB101 04451 SMS 61506 a
1 Annually, from the amounts generated for purses from all
2sources, including, but not limited to, amounts generated from
3wagering conducted by organization licensees, organization
4gaming licensees, inter-track wagering licensees, inter-track
5wagering locations licensees, and advance deposit wagering
6licensees, or an organization licensee to the purse account of
7an organization licensee conducting thoroughbred races at a
8track in Madison County, an amount equal to 10% of adjusted
9gross receipts as defined in subsection (b) of this Section
10shall be paid to the horsemen association representing the
11largest number of owners and trainers who race at the
12organization licensee's race meets, to be used to for
13operational expenses and may be also used for after care
14programs for retired thoroughbred race horses, backstretch
15laundry and kitchen facilities, a health insurance or
16retirement program, the Future Farmers of America, and such
17other programs.
18 Annually, from the purse account of organization licensees
19conducting thoroughbred races at racetracks in Cook County,
20$100,000 shall be paid for division and equal distribution to
21the animal sciences department of each Illinois public
22university system engaged in equine research and education on
23or before the effective date of this amendatory Act of the
24101st General Assembly for equine research and education.
25 (d) Annually, from the purse account of an organization
26licensee racing standardbred horses, an amount equal to 15% of

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1the gaming receipts from gaming pursuant to an organization
2gaming license placed into that purse account shall be paid to
3the Illinois Standardbred Breeders Fund. Moneys deposited into
4the Illinois Standardbred Breeders Fund shall be used for
5standardbred racing as authorized in paragraphs 1, 2, 3, 8, and
69 of subsection (g) of Section 31 of this Act and for bonus
7awards as authorized under paragraph 6 of subsection (j) of
8Section 31 of this Act.
9 Section 35-55. The Riverboat Gambling Act is amended by
10changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,
1111.1, 12, 13, 14, 15, 17, 17.1, 18, 18.1, 19, 20, and 24 and by
12adding Sections 5.3, 7.7, 7.8, 7.10, 7.11, 7.12, 7.13, 7.14,
13and 7.15 as follows:
14 (230 ILCS 10/1) (from Ch. 120, par. 2401)
15 Sec. 1. Short title. This Act shall be known and may be
16cited as the Illinois Riverboat Gambling Act.
17(Source: P.A. 86-1029.)
18 (230 ILCS 10/2) (from Ch. 120, par. 2402)
19 Sec. 2. Legislative Intent.
20 (a) This Act is intended to benefit the people of the State
21of Illinois by assisting economic development, and promoting
22Illinois tourism, and by increasing the amount of revenues
23available to the State to assist and support education, and to

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

10100SB0690ham002- 507 -LRB101 04451 SMS 61506 a
1horse-race meetings as authorized under the Illinois Horse
2Racing Act of 1975, lottery games authorized under the Illinois
3Lottery Law, bingo authorized under the Bingo License and Tax
4Act, charitable games authorized under the Charitable Games Act
5or pull tabs and jar games conducted under the Illinois Pull
6Tabs and Jar Games Act. This Act applies to gaming by an
7organization gaming licensee authorized under the Illinois
8Horse Racing Act of 1975 to the extent provided in that Act and
9in this Act.
10 (c) Riverboat gambling conducted pursuant to this Act may
11be authorized upon any water within the State of Illinois or
12any water other than Lake Michigan which constitutes a boundary
13of the State of Illinois. Notwithstanding any provision in this
14subsection (c) to the contrary, a licensee that receives its
15license pursuant to subsection (e-5) of Section 7 may conduct
16riverboat gambling on Lake Michigan from a home dock located on
17Lake Michigan subject to any limitations contained in Section
187. Notwithstanding any provision in this subsection (c) to the
19contrary, a licensee may conduct gambling at its home dock
20facility as provided in Sections 7 and 11. A licensee may
21conduct riverboat gambling authorized under this Act
22regardless of whether it conducts excursion cruises. A licensee
23may permit the continuous ingress and egress of passengers for
24the purpose of gambling.
25 (d) Gambling that is conducted in accordance with this Act
26using slot machines and video games of chance and other

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1electronic gambling games as defined in both this Act and the
2Illinois Horse Racing Act of 1975 is authorized.
3(Source: P.A. 91-40, eff. 6-25-99.)
4 (230 ILCS 10/4) (from Ch. 120, par. 2404)
5 Sec. 4. Definitions. As used in this Act:
6 (a) "Board" means the Illinois Gaming Board.
7 (b) "Occupational license" means a license issued by the
8Board to a person or entity to perform an occupation which the
9Board has identified as requiring a license to engage in
10riverboat gambling, casino gambling, or gaming pursuant to an
11organization gaming license issued under this Act in Illinois.
12 (c) "Gambling game" includes, but is not limited to,
13baccarat, twenty-one, poker, craps, slot machine, video game of
14chance, roulette wheel, klondike table, punchboard, faro
15layout, keno layout, numbers ticket, push card, jar ticket, or
16pull tab which is authorized by the Board as a wagering device
17under this Act.
18 (d) "Riverboat" means a self-propelled excursion boat, a
19permanently moored barge, or permanently moored barges that are
20permanently fixed together to operate as one vessel, on which
21lawful gambling is authorized and licensed as provided in this
22Act.
23 "Slot machine" means any mechanical, electrical, or other
24device, contrivance, or machine that is authorized by the Board
25as a wagering device under this Act which, upon insertion of a

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

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1winnings paid to wagerers.
2 (i) "Cheat" means to alter the selection of criteria which
3determine the result of a gambling game or the amount or
4frequency of payment in a gambling game.
5 (j) (Blank).
6 (k) "Gambling operation" means the conduct of authorized
7gambling games authorized under this Act upon a riverboat or in
8a casino or authorized under this Act and the Illinois Horse
9Racing Act of 1975 at an organization gaming facility.
10 (l) "License bid" means the lump sum amount of money that
11an applicant bids and agrees to pay the State in return for an
12owners license that is issued or re-issued on or after July 1,
132003.
14 "Table game" means a live gaming apparatus upon which
15gaming is conducted or that determines an outcome that is the
16object of a wager, including, but not limited to, baccarat,
17twenty-one, blackjack, poker, craps, roulette wheel, klondike
18table, punchboard, faro layout, keno layout, numbers ticket,
19push card, jar ticket, pull tab, or other similar games that
20are authorized by the Board as a wagering device under this
21Act. "Table game" does not include slot machines or video games
22of chance.
23 (m) The terms "minority person", "woman", and "person with
24a disability" shall have the same meaning as defined in Section
252 of the Business Enterprise for Minorities, Women, and Persons
26with Disabilities Act.

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1 "Casino" means a facility at which lawful gambling is
2authorized as provided in this Act.
3 "Owners license" means a license to conduct riverboat or
4casino gambling operations, but does not include an
5organization gaming license.
6 "Licensed owner" means a person who holds an owners
7license.
8 "Organization gaming facility" means that portion of an
9organization licensee's racetrack facilities at which gaming
10authorized under Section 7.7 is conducted.
11 "Organization gaming license" means a license issued by the
12Illinois Gaming Board under Section 7.7 of this Act authorizing
13gaming pursuant to that Section at an organization gaming
14facility.
15 "Organization gaming licensee" means an entity that holds
16an organization gaming license.
17 "Organization licensee" means an entity authorized by the
18Illinois Racing Board to conduct pari-mutuel wagering in
19accordance with the Illinois Horse Racing Act of 1975. With
20respect only to gaming pursuant to an organization gaming
21license, "organization licensee" includes the authorization
22for gaming created under subsection (a) of Section 56 of the
23Illinois Horse Racing Act of 1975.
24(Source: P.A. 100-391, eff. 8-25-17.)
25 (230 ILCS 10/5) (from Ch. 120, par. 2405)

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1 Sec. 5. Gaming Board.
2 (a) (1) There is hereby established the Illinois Gaming
3Board, which shall have the powers and duties specified in this
4Act, and all other powers necessary and proper to fully and
5effectively execute this Act for the purpose of administering,
6regulating, and enforcing the system of riverboat and casino
7gambling established by this Act and gaming pursuant to an
8organization gaming license issued under this Act. Its
9jurisdiction shall extend under this Act to every person,
10association, corporation, partnership and trust involved in
11riverboat and casino gambling operations and gaming pursuant to
12an organization gaming license issued under this Act in the
13State of Illinois.
14 (2) The Board shall consist of 5 members to be appointed by
15the Governor with the advice and consent of the Senate, one of
16whom shall be designated by the Governor to be chairperson
17chairman. Each member shall have a reasonable knowledge of the
18practice, procedure and principles of gambling operations.
19Each member shall either be a resident of Illinois or shall
20certify that he or she will become a resident of Illinois
21before taking office.
22 On and after the effective date of this amendatory Act of
23the 101st General Assembly, new appointees to the Board must
24include the following:
25 (A) One member who has received, at a minimum, a
26 bachelor's degree from an accredited school and at least 10

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1 years of verifiable experience in the fields of
2 investigation and law enforcement.
3 (B) One member who is a certified public accountant
4 with experience in auditing and with knowledge of complex
5 corporate structures and transactions.
6 (C) One member who has 5 years' experience as a
7 principal, senior officer, or director of a company or
8 business with either material responsibility for the daily
9 operations and management of the overall company or
10 business or material responsibility for the policy making
11 of the company or business.
12 (D) One member who is an attorney licensed to practice
13 law in Illinois for at least 5 years.
14 Notwithstanding any provision of this subsection (a), the
15requirements of subparagraphs (A) through (D) of this paragraph
16(2) shall not apply to any person reappointed pursuant to
17paragraph (3).
18 No more than 3 members of the Board may be from the same
19political party. No Board member shall, within a period of one
20year immediately preceding nomination, have been employed or
21received compensation or fees for services 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. Board members must publicly
25disclose all prior affiliations with gaming interests,
26including any compensation, fees, bonuses, salaries, and other

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1reimbursement received from a person or entity, or its parent
2or affiliate, that has engaged in business with the Board, a
3licensee, or a licensee under the Illinois Horse Racing Act of
41975. This disclosure must be made within 30 days after
5nomination but prior to confirmation by the Senate and must be
6made available to the members of the Senate. At least one
7member shall be experienced in law enforcement and criminal
8investigation, at least one member shall be a certified public
9accountant experienced in accounting and auditing, and at least
10one member shall be a lawyer licensed to practice law in
11Illinois.
12 (3) The terms of office of the Board members shall be 3
13years, except that the terms of office of the initial Board
14members appointed pursuant to this Act will commence from the
15effective date of this Act and run as follows: one for a term
16ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
17a term ending July 1, 1993. Upon the expiration of the
18foregoing terms, the successors of such members shall serve a
19term for 3 years and until their successors are appointed and
20qualified for like terms. Vacancies in the Board shall be
21filled for the unexpired term in like manner as original
22appointments. Each member of the Board shall be eligible for
23reappointment at the discretion of the Governor with the advice
24and consent of the Senate.
25 (4) Each member of the Board shall receive $300 for each
26day the Board meets and for each day the member conducts any

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

10100SB0690ham002- 516 -LRB101 04451 SMS 61506 a
1 (6) Any member of the Board may be removed by the Governor
2for neglect of duty, misfeasance, malfeasance, or nonfeasance
3in office or for engaging in any political activity.
4 (7) Before entering upon the discharge of the duties of his
5office, each member of the Board shall take an oath that he
6will faithfully execute the duties of his office according to
7the laws of the State and the rules and regulations adopted
8therewith and shall give bond to the State of Illinois,
9approved by the Governor, in the sum of $25,000. Every such
10bond, when duly executed and approved, shall be recorded in the
11office of the Secretary of State. Whenever the Governor
12determines that the bond of any member of the Board has become
13or is likely to become invalid or insufficient, he shall
14require such member forthwith to renew his bond, which is to be
15approved by the Governor. Any member of the Board who fails to
16take oath and give bond within 30 days from the date of his
17appointment, or who fails to renew his bond within 30 days
18after it is demanded by the Governor, shall be guilty of
19neglect of duty and may be removed by the Governor. The cost of
20any bond given by any member of the Board under this Section
21shall be taken to be a part of the necessary expenses of the
22Board.
23 (7.5) For the examination of all mechanical,
24electromechanical, or electronic table games, slot machines,
25slot accounting systems, sports wagering systems, and other
26electronic gaming equipment, and the field inspection of such

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1systems, games, and machines, for compliance with this Act, the
2Board shall may utilize the services of one or more independent
3outside testing laboratories that have been accredited in
4accordance with ISO/IEC 17025 by an accreditation body that is
5a signatory to the International Laboratory Accreditation
6Cooperation Mutual Recognition Agreement signifying they by a
7national accreditation body and that, in the judgment of the
8Board, are qualified to perform such examinations.
9Notwithstanding any law to the contrary, the Board shall
10consider the licensing of independent outside testing
11laboratory applicants in accordance with procedures
12established by the Board by rule. The Board shall not withhold
13its approval of an independent outside testing laboratory
14license applicant that has been accredited as required under
15this paragraph (7.5) and is licensed in gaming jurisdictions
16comparable to Illinois. Upon the finalization of required
17rules, the Board shall license independent testing
18laboratories and accept the test reports of any licensed
19testing laboratory of the system's, game's, or machine
20manufacturer's choice, notwithstanding the existence of
21contracts between the Board and any independent testing
22laboratory.
23 (8) The Board shall employ such personnel as may be
24necessary to carry out its functions and shall determine the
25salaries of all personnel, except those personnel whose
26salaries are determined under the terms of a collective

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1bargaining agreement. No person shall be employed to serve the
2Board who is, or whose spouse, parent or child is, an official
3of, or has a financial interest in or financial relation with,
4any operator engaged in gambling operations within this State
5or any organization engaged in conducting horse racing within
6this State. For the one year immediately preceding employment,
7an employee shall not 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
10Board, a licensee, or a licensee under the Illinois Horse
11Racing Act of 1975. Any employee violating these prohibitions
12shall be subject to termination of employment.
13 (9) An Administrator shall perform any and all duties that
14the Board shall assign him. The salary of the Administrator
15shall be determined by the Board and, in addition, he shall be
16reimbursed for all actual and necessary expenses incurred by
17him in discharge of his official duties. The Administrator
18shall keep records of all proceedings of the Board and shall
19preserve all records, books, documents and other papers
20belonging to the Board or entrusted to its care. The
21Administrator shall devote his full time to the duties of the
22office and shall not hold any other office or employment.
23 (b) The Board shall have general responsibility for the
24implementation of this Act. Its duties include, without
25limitation, the following:
26 (1) To decide promptly and in reasonable order all

10100SB0690ham002- 519 -LRB101 04451 SMS 61506 a
1 license applications. Any party aggrieved by an action of
2 the Board denying, suspending, revoking, restricting or
3 refusing to renew a license may request a hearing before
4 the Board. A request for a hearing must be made to the
5 Board in writing within 5 days after service of notice of
6 the action of the Board. Notice of the action of the Board
7 shall be served either by personal delivery or by certified
8 mail, postage prepaid, to the aggrieved party. Notice
9 served by certified mail shall be deemed complete on the
10 business day following the date of such mailing. The Board
11 shall conduct any such all requested hearings promptly and
12 in reasonable order;
13 (2) To conduct all hearings pertaining to civil
14 violations of this Act or rules and regulations promulgated
15 hereunder;
16 (3) To promulgate such rules and regulations as in its
17 judgment may be necessary to protect or enhance the
18 credibility and integrity of gambling operations
19 authorized by this Act and the regulatory process
20 hereunder;
21 (4) To provide for the establishment and collection of
22 all license and registration fees and taxes imposed by this
23 Act and the rules and regulations issued pursuant hereto.
24 All such fees and taxes shall be deposited into the State
25 Gaming Fund;
26 (5) To provide for the levy and collection of penalties

10100SB0690ham002- 520 -LRB101 04451 SMS 61506 a
1 and fines for the violation of provisions of this Act and
2 the rules and regulations promulgated hereunder. All such
3 fines and penalties shall be deposited into the Education
4 Assistance Fund, created by Public Act 86-0018, of the
5 State of Illinois;
6 (6) To be present through its inspectors and agents any
7 time gambling operations are conducted on any riverboat, in
8 any casino, or at any organization gaming facility for the
9 purpose of certifying the revenue thereof, receiving
10 complaints from the public, and conducting such other
11 investigations into the conduct of the gambling games and
12 the maintenance of the equipment as from time to time the
13 Board may deem necessary and proper;
14 (7) To review and rule upon any complaint by a licensee
15 regarding any investigative procedures of the State which
16 are unnecessarily disruptive of gambling operations. The
17 need to inspect and investigate shall be presumed at all
18 times. The disruption of a licensee's operations shall be
19 proved by clear and convincing evidence, and establish
20 that: (A) the procedures had no reasonable law enforcement
21 purposes, and (B) the procedures were so disruptive as to
22 unreasonably inhibit gambling operations;
23 (8) To hold at least one meeting each quarter of the
24 fiscal year. In addition, special meetings may be called by
25 the Chairman or any 2 Board members upon 72 hours written
26 notice to each member. All Board meetings shall be subject

10100SB0690ham002- 521 -LRB101 04451 SMS 61506 a
1 to the Open Meetings Act. Three members of the Board shall
2 constitute a quorum, and 3 votes shall be required for any
3 final determination by the Board. The Board shall keep a
4 complete and accurate record of all its meetings. A
5 majority of the members of the Board shall constitute a
6 quorum for the transaction of any business, for the
7 performance of any duty, or for the exercise of any power
8 which this Act requires the Board members to transact,
9 perform or exercise en banc, except that, upon order of the
10 Board, one of the Board members or an administrative law
11 judge designated by the Board may conduct any hearing
12 provided for under this Act or by Board rule and may
13 recommend findings and decisions to the Board. The Board
14 member or administrative law judge conducting such hearing
15 shall have all powers and rights granted to the Board in
16 this Act. The record made at the time of the hearing shall
17 be reviewed by the Board, or a majority thereof, and the
18 findings and decision of the majority of the Board shall
19 constitute the order of the Board in such case;
20 (9) To maintain records which are separate and distinct
21 from the records of any other State board or commission.
22 Such records shall be available for public inspection and
23 shall accurately reflect all Board proceedings;
24 (10) To file a written annual report with the Governor
25 on or before July 1 each year and such additional reports
26 as the Governor may request. The annual report shall

10100SB0690ham002- 522 -LRB101 04451 SMS 61506 a
1 include a statement of receipts and disbursements by the
2 Board, actions taken by the Board, and any additional
3 information and recommendations which the Board may deem
4 valuable or which the Governor may request;
5 (11) (Blank);
6 (12) (Blank);
7 (13) To assume responsibility for administration and
8 enforcement of the Video Gaming Act; and
9 (13.1) To assume responsibility for the administration
10 and enforcement of operations at organization gaming
11 facilities pursuant to this Act and the Illinois Horse
12 Racing Act of 1975;
13 (13.2) To assume responsibility for the administration
14 and enforcement of the Sports Wagering Act; and
15 (14) To adopt, by rule, a code of conduct governing
16 Board members and employees that ensure, to the maximum
17 extent possible, that persons subject to this Code avoid
18 situations, relationships, or associations that may
19 represent or lead to a conflict of interest.
20 Internal controls and changes submitted by licensees must
21be reviewed and either approved or denied with cause within 90
22days after receipt of submission is deemed final by the
23Illinois Gaming Board. In the event an internal control
24submission or change does not meet the standards set by the
25Board, staff of the Board must provide technical assistance to
26the licensee to rectify such deficiencies within 90 days after

10100SB0690ham002- 523 -LRB101 04451 SMS 61506 a
1the initial submission and the revised submission must be
2reviewed and approved or denied with cause within 90 days after
3the date the revised submission is deemed final by the Board.
4For the purposes of this paragraph, "with cause" means that the
5approval of the submission would jeopardize the integrity of
6gaming. In the event the Board staff has not acted within the
7timeframe, the submission shall be deemed approved.
8 (c) The Board shall have jurisdiction over and shall
9supervise all gambling operations governed by this Act. The
10Board shall have all powers necessary and proper to fully and
11effectively execute the provisions of this Act, including, but
12not limited to, the following:
13 (1) To investigate applicants and determine the
14 eligibility of applicants for licenses and to select among
15 competing applicants the applicants which best serve the
16 interests of the citizens of Illinois.
17 (2) To have jurisdiction and supervision over all
18 riverboat gambling operations authorized under this Act in
19 this State and all persons in places on riverboats where
20 gambling operations are conducted.
21 (3) To promulgate rules and regulations for the purpose
22 of administering the provisions of this Act and to
23 prescribe rules, regulations and conditions under which
24 all riverboat gambling operations subject to this Act in
25 the State shall be conducted. Such rules and regulations
26 are to provide for the prevention of practices detrimental

10100SB0690ham002- 524 -LRB101 04451 SMS 61506 a
1 to the public interest and for the best interests of
2 riverboat gambling, including rules and regulations
3 regarding the inspection of organization gaming
4 facilities, casinos, and such riverboats, and the review of
5 any permits or licenses necessary to operate a riverboat,
6 casino, or organization gaming facility under any laws or
7 regulations applicable to riverboats, casinos, or
8 organization gaming facilities and to impose penalties for
9 violations thereof.
10 (4) To enter the office, riverboats, casinos,
11 organization gaming facilities, and other facilities, or
12 other places of business of a licensee, where evidence of
13 the compliance or noncompliance with the provisions of this
14 Act is likely to be found.
15 (5) To investigate alleged violations of this Act or
16 the rules of the Board and to take appropriate disciplinary
17 action against a licensee or a holder of an occupational
18 license for a violation, or institute appropriate legal
19 action for enforcement, or both.
20 (6) To adopt standards for the licensing of all persons
21 and entities under this Act, as well as for electronic or
22 mechanical gambling games, and to establish fees for such
23 licenses.
24 (7) To adopt appropriate standards for all
25 organization gaming facilities, riverboats, casinos, and
26 other facilities authorized under this Act.

10100SB0690ham002- 525 -LRB101 04451 SMS 61506 a
1 (8) To require that the records, including financial or
2 other statements of any licensee under this Act, shall be
3 kept in such manner as prescribed by the Board and that any
4 such licensee involved in the ownership or management of
5 gambling operations submit to the Board an annual balance
6 sheet and profit and loss statement, list of the
7 stockholders or other persons having a 1% or greater
8 beneficial interest in the gambling activities of each
9 licensee, and any other information the Board deems
10 necessary in order to effectively administer this Act and
11 all rules, regulations, orders and final decisions
12 promulgated under this Act.
13 (9) To conduct hearings, issue subpoenas for the
14 attendance of witnesses and subpoenas duces tecum for the
15 production of books, records and other pertinent documents
16 in accordance with the Illinois Administrative Procedure
17 Act, and to administer oaths and affirmations to the
18 witnesses, when, in the judgment of the Board, it is
19 necessary to administer or enforce this Act or the Board
20 rules.
21 (10) To prescribe a form to be used by any licensee
22 involved in the ownership or management of gambling
23 operations as an application for employment for their
24 employees.
25 (11) To revoke or suspend licenses, as the Board may
26 see fit and in compliance with applicable laws of the State

10100SB0690ham002- 526 -LRB101 04451 SMS 61506 a
1 regarding administrative procedures, and to review
2 applications for the renewal of licenses. The Board may
3 suspend an owners license or an organization gaming
4 license , without notice or hearing upon a determination
5 that the safety or health of patrons or employees is
6 jeopardized by continuing a gambling operation conducted
7 under that license riverboat's operation. The suspension
8 may remain in effect until the Board determines that the
9 cause for suspension has been abated. The Board may revoke
10 an the owners license or organization gaming license upon a
11 determination that the licensee owner has not made
12 satisfactory progress toward abating the hazard.
13 (12) To eject or exclude or authorize the ejection or
14 exclusion of, any person from riverboat gambling
15 facilities where that such person is in violation of this
16 Act, rules and regulations thereunder, or final orders of
17 the Board, or where such person's conduct or reputation is
18 such that his or her presence within the riverboat gambling
19 facilities may, in the opinion of the Board, call into
20 question the honesty and integrity of the gambling
21 operations or interfere with the orderly conduct thereof;
22 provided that the propriety of such ejection or exclusion
23 is subject to subsequent hearing by the Board.
24 (13) To require all licensees of gambling operations to
25 utilize a cashless wagering system whereby all players'
26 money is converted to tokens, electronic cards, or chips

10100SB0690ham002- 527 -LRB101 04451 SMS 61506 a
1 which shall be used only for wagering in the gambling
2 establishment.
3 (14) (Blank).
4 (15) To suspend, revoke or restrict licenses, to
5 require the removal of a licensee or an employee of a
6 licensee for a violation of this Act or a Board rule or for
7 engaging in a fraudulent practice, and to impose civil
8 penalties of up to $5,000 against individuals and up to
9 $10,000 or an amount equal to the daily gross receipts,
10 whichever is larger, against licensees for each violation
11 of any provision of the Act, any rules adopted by the
12 Board, any order of the Board or any other action which, in
13 the Board's discretion, is a detriment or impediment to
14 riverboat gambling operations.
15 (16) To hire employees to gather information, conduct
16 investigations and carry out any other tasks contemplated
17 under this Act.
18 (17) To establish minimum levels of insurance to be
19 maintained by licensees.
20 (18) To authorize a licensee to sell or serve alcoholic
21 liquors, wine or beer as defined in the Liquor Control Act
22 of 1934 on board a riverboat or in a casino and to have
23 exclusive authority to establish the hours for sale and
24 consumption of alcoholic liquor on board a riverboat or in
25 a casino, notwithstanding any provision of the Liquor
26 Control Act of 1934 or any local ordinance, and regardless

10100SB0690ham002- 528 -LRB101 04451 SMS 61506 a
1 of whether the riverboat makes excursions. The
2 establishment of the hours for sale and consumption of
3 alcoholic liquor on board a riverboat or in a casino is an
4 exclusive power and function of the State. A home rule unit
5 may not establish the hours for sale and consumption of
6 alcoholic liquor on board a riverboat or in a casino. This
7 subdivision (18) amendatory Act of 1991 is a denial and
8 limitation of home rule powers and functions under
9 subsection (h) of Section 6 of Article VII of the Illinois
10 Constitution.
11 (19) After consultation with the U.S. Army Corps of
12 Engineers, to establish binding emergency orders upon the
13 concurrence of a majority of the members of the Board
14 regarding the navigability of water, relative to
15 excursions, in the event of extreme weather conditions,
16 acts of God or other extreme circumstances.
17 (20) To delegate the execution of any of its powers
18 under this Act for the purpose of administering and
19 enforcing this Act and the its rules adopted by the Board
20 and regulations hereunder.
21 (20.5) To approve any contract entered into on its
22 behalf.
23 (20.6) To appoint investigators to conduct
24 investigations, searches, seizures, arrests, and other
25 duties imposed under this Act, as deemed necessary by the
26 Board. These investigators have and may exercise all of the

10100SB0690ham002- 529 -LRB101 04451 SMS 61506 a
1 rights and powers of peace officers, provided that these
2 powers shall be limited to offenses or violations occurring
3 or committed in a casino, in an organization gaming
4 facility, or on a riverboat or dock, as defined in
5 subsections (d) and (f) of Section 4, or as otherwise
6 provided by this Act or any other law.
7 (20.7) To contract with the Department of State Police
8 for the use of trained and qualified State police officers
9 and with the Department of Revenue for the use of trained
10 and qualified Department of Revenue investigators to
11 conduct investigations, searches, seizures, arrests, and
12 other duties imposed under this Act and to exercise all of
13 the rights and powers of peace officers, provided that the
14 powers of Department of Revenue investigators under this
15 subdivision (20.7) shall be limited to offenses or
16 violations occurring or committed in a casino, in an
17 organization gaming facility, or on a riverboat or dock, as
18 defined in subsections (d) and (f) of Section 4, or as
19 otherwise provided by this Act or any other law. In the
20 event the Department of State Police or the Department of
21 Revenue is unable to fill contracted police or
22 investigative positions, the Board may appoint
23 investigators to fill those positions pursuant to
24 subdivision (20.6).
25 (21) To adopt rules concerning the conduct of gaming
26 pursuant to an organization gaming license issued under

10100SB0690ham002- 530 -LRB101 04451 SMS 61506 a
1 this Act.
2 (22) To have the same jurisdiction and supervision over
3 casinos and organization gaming facilities as the Board has
4 over riverboats, including, but not limited to, the power
5 to (i) investigate, review, and approve contracts as that
6 power is applied to riverboats, (ii) adopt rules for
7 administering the provisions of this Act, (iii) adopt
8 standards for the licensing of all persons involved with a
9 casino or organization gaming facility, (iv) investigate
10 alleged violations of this Act by any person involved with
11 a casino or organization gaming facility, and (v) require
12 that records, including financial or other statements of
13 any casino or organization gaming facility, shall be kept
14 in such manner as prescribed by the Board.
15 (23) (21) To take any other action as may be reasonable
16 or appropriate to enforce this Act and the rules adopted by
17 the Board and regulations hereunder.
18 (d) The Board may seek and shall receive the cooperation of
19the Department of State Police in conducting background
20investigations of applicants and in fulfilling its
21responsibilities under this Section. Costs incurred by the
22Department of State Police as a result of such cooperation
23shall be paid by the Board in conformance with the requirements
24of Section 2605-400 of the Department of State Police Law (20
25ILCS 2605/2605-400).
26 (e) The Board must authorize to each investigator and to

10100SB0690ham002- 531 -LRB101 04451 SMS 61506 a
1any other employee of the Board exercising the powers of a
2peace officer a distinct badge that, on its face, (i) clearly
3states that the badge is authorized by the Board and (ii)
4contains a unique identifying number. No other badge shall be
5authorized by the Board.
6(Source: P.A. 100-1152, eff. 12-14-18.)
7 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)
8 Sec. 5.1. Disclosure of records.
9 (a) Notwithstanding any applicable statutory provision to
10the contrary, the Board shall, on written request from any
11person, provide information furnished by an applicant or
12licensee concerning the applicant or licensee, his products,
13services or gambling enterprises and his business holdings, as
14follows:
15 (1) The name, business address and business telephone
16 number of any applicant or licensee.
17 (2) An identification of any applicant or licensee
18 including, if an applicant or licensee is not an
19 individual, the names and addresses of all stockholders and
20 directors, if the entity is a corporation; the names and
21 addresses of all members, if the entity is a limited
22 liability company; the names and addresses of all partners,
23 both general and limited, if the entity is a partnership;
24 and the names and addresses of all beneficiaries, if the
25 entity is a trust the state of incorporation or

10100SB0690ham002- 532 -LRB101 04451 SMS 61506 a
1 registration, the corporate officers, and the identity of
2 all shareholders or participants. If an applicant or
3 licensee has a pending registration statement filed with
4 the Securities and Exchange Commission, only the names of
5 those persons or entities holding interest of 5% or more
6 must be provided.
7 (3) An identification of any business, including, if
8 applicable, the state of incorporation or registration, in
9 which an applicant or licensee or an applicant's or
10 licensee's spouse or children has an equity interest of
11 more than 1%. If an applicant or licensee is a corporation,
12 partnership or other business entity, the applicant or
13 licensee shall identify any other corporation, partnership
14 or business entity in which it has an equity interest of 1%
15 or more, including, if applicable, the state of
16 incorporation or registration. This information need not
17 be provided by a corporation, partnership or other business
18 entity that has a pending registration statement filed with
19 the Securities and Exchange Commission.
20 (4) Whether an applicant or licensee has been indicted,
21 convicted, pleaded guilty or nolo contendere, or forfeited
22 bail concerning any criminal offense under the laws of any
23 jurisdiction, either felony or misdemeanor (except for
24 traffic violations), including the date, the name and
25 location of the court, arresting agency and prosecuting
26 agency, the case number, the offense, the disposition and

10100SB0690ham002- 533 -LRB101 04451 SMS 61506 a
1 the location and length of incarceration.
2 (5) Whether an applicant or licensee has had any
3 license or certificate issued by a licensing authority in
4 Illinois or any other jurisdiction denied, restricted,
5 suspended, revoked or not renewed and a statement
6 describing the facts and circumstances concerning the
7 denial, restriction, suspension, revocation or
8 non-renewal, including the licensing authority, the date
9 each such action was taken, and the reason for each such
10 action.
11 (6) Whether an applicant or licensee has ever filed or
12 had filed against it a proceeding in bankruptcy or has ever
13 been involved in any formal process to adjust, defer,
14 suspend or otherwise work out the payment of any debt
15 including the date of filing, the name and location of the
16 court, the case and number of the disposition.
17 (7) Whether an applicant or licensee has filed, or been
18 served with a complaint or other notice filed with any
19 public body, regarding the delinquency in the payment of,
20 or a dispute over the filings concerning the payment of,
21 any tax required under federal, State or local law,
22 including the amount, type of tax, the taxing agency and
23 time periods involved.
24 (8) A statement listing the names and titles of all
25 public officials or officers of any unit of government, and
26 relatives of said public officials or officers who,

10100SB0690ham002- 534 -LRB101 04451 SMS 61506 a
1 directly or indirectly, own any financial interest in, have
2 any beneficial interest in, are the creditors of or hold
3 any debt instrument issued by, or hold or have any interest
4 in any contractual or service relationship with, an
5 applicant or licensee.
6 (9) Whether an applicant or licensee has made, directly
7 or indirectly, any political contribution, or any loans,
8 donations or other payments, to any candidate or office
9 holder, within 5 years from the date of filing the
10 application, including the amount and the method of
11 payment.
12 (10) The name and business telephone number of the
13 counsel representing an applicant or licensee in matters
14 before the Board.
15 (11) A description of any proposed or approved gambling
16 riverboat gaming operation, including the type of boat,
17 home dock, or casino or gaming location, expected economic
18 benefit to the community, anticipated or actual number of
19 employees, any statement from an applicant or licensee
20 regarding compliance with federal and State affirmative
21 action guidelines, projected or actual admissions and
22 projected or actual adjusted gross gaming receipts.
23 (12) A description of the product or service to be
24 supplied by an applicant for a supplier's license.
25 (b) Notwithstanding any applicable statutory provision to
26the contrary, the Board shall, on written request from any

10100SB0690ham002- 535 -LRB101 04451 SMS 61506 a
1person, also provide the following information:
2 (1) The amount of the wagering tax and admission tax
3 paid daily to the State of Illinois by the holder of an
4 owner's license.
5 (2) Whenever the Board finds an applicant for an
6 owner's license unsuitable for licensing, a copy of the
7 written letter outlining the reasons for the denial.
8 (3) Whenever the Board has refused to grant leave for
9 an applicant to withdraw his application, a copy of the
10 letter outlining the reasons for the refusal.
11 (c) Subject to the above provisions, the Board shall not
12disclose any information which would be barred by:
13 (1) Section 7 of the Freedom of Information Act; or
14 (2) The statutes, rules, regulations or
15 intergovernmental agreements of any jurisdiction.
16 (d) The Board may assess fees for the copying of
17information in accordance with Section 6 of the Freedom of
18Information Act.
19(Source: P.A. 96-1392, eff. 1-1-11.)
20 (230 ILCS 10/5.3 new)
21 Sec. 5.3. Ethical conduct.
22 (a) Officials and employees of the corporate authority of a
23host community must carry out their duties and responsibilities
24in such a manner as to promote and preserve public trust and
25confidence in the integrity and conduct of gaming.

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

10100SB0690ham002- 537 -LRB101 04451 SMS 61506 a
1riverboat or casino that is located in the host community.
2 (e) Officials and employees of the corporate authority of a
3host community shall not, during the period that the person is
4an official or employee of the corporate authority or for a
5period of 2 years immediately after leaving such office,
6knowingly accept employment or receive compensation or fees for
7services from a person or entity, or its parent or affiliate,
8that has engaged in business with the riverboat or casino that
9is located in the host community that resulted in contracts
10with an aggregate value of at least $25,000 or if that official
11or employee has made a decision that directly applied to the
12person or entity, or its parent or affiliate.
13 (f) A spouse, child, or parent of an official or employee
14of the corporate authority of a host community may not have a
15financial interest, directly or indirectly, in his or her own
16name or in the name of any other person, partnership,
17association, trust, corporation, or other entity in any
18contract or subcontract for the performance of any work for a
19riverboat or casino in the host community. This prohibition
20shall extend to the holding or acquisition of an interest in
21any entity identified by Board action that, in the judgment of
22the Board, could represent the potential for or the appearance
23of a conflict of interest. The holding or acquisition of an
24interest in such entities through an indirect means, such as
25through a mutual fund, shall not be prohibited, expect that the
26Board may identify specific investments or funds that, in its

10100SB0690ham002- 538 -LRB101 04451 SMS 61506 a
1judgment, are so influenced by gaming holdings as to represent
2the potential for or the appearance of a conflict of interest.
3 (g) A spouse, child, or parent of an official or employee
4of the corporate authority of a host community may not accept
5any gift, gratuity, service, compensation, travel, lodging, or
6thing of value, with the exception of unsolicited items of an
7incidental nature, from any person, corporation, or entity
8doing business with the riverboat or casino that is located in
9the host community.
10 (h) A spouse, child, or parent of an official or employee
11of the corporate authority of a host community may not, during
12the period that the person is an official of the corporate
13authority or for a period of 2 years immediately after leaving
14such office or employment, knowingly accept employment or
15receive compensation or fees for services from a person or
16entity, or its parent or affiliate, that has engaged in
17business with the riverboat or casino that is located in the
18host community that resulted in contracts with an aggregate
19value of at least $25,000 or if that official or employee has
20made a decision that directly applied to the person or entity,
21or its parent or affiliate.
22 (i) Officials and employees of the corporate authority of a
23host community shall not attempt, in any way, to influence any
24person or entity doing business with the riverboat or casino
25that is located in the host community or any officer, agent, or
26employee thereof to hire or contract with any person or entity

10100SB0690ham002- 539 -LRB101 04451 SMS 61506 a
1for any compensated work.
2 (j) Any communication between an official of the corporate
3authority of a host community and any applicant for an owners
4license in the host community, or an officer, director, or
5employee of a riverboat or casino in the host community,
6concerning any matter relating in any way to gaming shall be
7disclosed to the Board. Such disclosure shall be in writing by
8the official within 30 days after the communication and shall
9be filed with the Board. Disclosure must consist of the date of
10the communication, the identity and job title of the person
11with whom the communication was made, a brief summary of the
12communication, the action requested or recommended, all
13responses made, the identity and job title of the person making
14the response, and any other pertinent information. Public
15disclosure of the written summary provided to the Board and the
16Gaming Board shall be subject to the exemptions provided under
17the Freedom of Information Act.
18 This subsection (j) shall not apply to communications
19regarding traffic, law enforcement, security, environmental
20issues, city services, transportation, or other routine
21matters concerning the ordinary operations of the riverboat or
22casino. For purposes of this subsection (j), "ordinary
23operations" means operations relating to the casino or
24riverboat facility other than the conduct of gambling
25activities, and "routine matters" includes the application
26for, issuance of, renewal of, and other processes associated

10100SB0690ham002- 540 -LRB101 04451 SMS 61506 a
1with municipal permits and licenses.
2 (k) Any official or employee who violates any provision of
3this Section is guilty of a Class 4 felony.
4 (l) For purposes of this Section, "host community" or "host
5municipality" means a unit of local government that contains a
6riverboat or casino within its borders.
7 (230 ILCS 10/6) (from Ch. 120, par. 2406)
8 Sec. 6. Application for Owners License.
9 (a) A qualified person may apply to the Board for an owners
10license to conduct a riverboat gambling operation as provided
11in this Act. The application shall be made on forms provided by
12the Board and shall contain such information as the Board
13prescribes, including but not limited to the identity of the
14riverboat on which such gambling operation is to be conducted,
15if applicable, and the exact location where such riverboat or
16casino will be located docked, a certification that the
17riverboat will be registered under this Act at all times during
18which gambling operations are conducted on board, detailed
19information regarding the ownership and management of the
20applicant, and detailed personal information regarding the
21applicant. Any application for an owners license to be
22re-issued on or after June 1, 2003 shall also include the
23applicant's license bid in a form prescribed by the Board.
24Information provided on the application shall be used as a
25basis for a thorough background investigation which the Board

10100SB0690ham002- 541 -LRB101 04451 SMS 61506 a
1shall conduct with respect to each applicant. An incomplete
2application shall be cause for denial of a license by the
3Board.
4 (a-5) In addition to any other information required under
5this Section, each application for an owners license must
6include the following information:
7 (1) The history and success of the applicant and each
8 person and entity disclosed under subsection (c) of this
9 Section in developing tourism facilities ancillary to
10 gaming, if applicable.
11 (2) The likelihood that granting a license to the
12 applicant will lead to the creation of quality, living wage
13 jobs and permanent, full-time jobs for residents of the
14 State and residents of the unit of local government that is
15 designated as the home dock of the proposed facility where
16 gambling is to be conducted by the applicant.
17 (3) The projected number of jobs that would be created
18 if the license is granted and the projected number of new
19 employees at the proposed facility where gambling is to be
20 conducted by the applicant.
21 (4) The record, if any, of the applicant and its
22 developer in meeting commitments to local agencies,
23 community-based organizations, and employees at other
24 locations where the applicant or its developer has
25 performed similar functions as they would perform if the
26 applicant were granted a license.

10100SB0690ham002- 542 -LRB101 04451 SMS 61506 a
1 (5) Identification of adverse effects that might be
2 caused by the proposed facility where gambling is to be
3 conducted by the applicant, including the costs of meeting
4 increased demand for public health care, child care, public
5 transportation, affordable housing, and social services,
6 and a plan to mitigate those adverse effects.
7 (6) The record, if any, of the applicant and its
8 developer regarding compliance with:
9 (A) federal, state, and local discrimination, wage
10 and hour, disability, and occupational and
11 environmental health and safety laws; and
12 (B) state and local labor relations and employment
13 laws.
14 (7) The applicant's record, if any, in dealing with its
15 employees and their representatives at other locations.
16 (8) A plan concerning the utilization of
17 minority-owned and women-owned businesses and concerning
18 the hiring of minorities and women.
19 (9) Evidence the applicant used its best efforts to
20 reach a goal of 25% ownership representation by minority
21 persons and 5% ownership representation by women.
22 (b) Applicants shall submit with their application all
23documents, resolutions, and letters of support from the
24governing body that represents the municipality or county
25wherein the licensee will be located dock.
26 (c) Each applicant shall disclose the identity of every

10100SB0690ham002- 543 -LRB101 04451 SMS 61506 a
1person or entity , association, trust or corporation having a
2greater than 1% direct or indirect pecuniary interest in the
3riverboat gambling operation with respect to which the license
4is sought. If the disclosed entity is a trust, the application
5shall disclose the names and addresses of all the
6beneficiaries; if a corporation, the names and addresses of all
7stockholders and directors; if a partnership, the names and
8addresses of all partners, both general and limited.
9 (d) An application shall be filed and considered in
10accordance with the rules of the Board. Each application shall
11be accompanied by a nonrefundable An application fee of
12$250,000. In addition, a nonrefundable fee of $50,000 shall be
13paid at the time of filing to defray the costs associated with
14the background investigation conducted by the Board. If the
15costs of the investigation exceed $50,000, the applicant shall
16pay the additional amount to the Board within 7 days after
17requested by the Board. If the costs of the investigation are
18less than $50,000, the applicant shall receive a refund of the
19remaining amount. All information, records, interviews,
20reports, statements, memoranda or other data supplied to or
21used by the Board in the course of its review or investigation
22of an application for a license or a renewal under this Act
23shall be privileged, strictly confidential and shall be used
24only for the purpose of evaluating an applicant for a license
25or a renewal. Such information, records, interviews, reports,
26statements, memoranda or other data shall not be admissible as

10100SB0690ham002- 544 -LRB101 04451 SMS 61506 a
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 State Gaming Fund.
5 (e) The Board shall charge each applicant a fee set by the
6Department of State Police to defray the costs associated with
7the search and classification of fingerprints obtained by the
8Board with respect to the applicant's application. These fees
9shall be paid into the State Police Services Fund. In order to
10expedite the application process, the Board may establish rules
11allowing applicants to acquire criminal background checks and
12financial integrity reviews as part of the initial application
13process from a list of vendors approved by the Board.
14 (f) The licensed owner shall be the person primarily
15responsible for the boat or casino itself. Only one riverboat
16gambling operation may be authorized by the Board on any
17riverboat or in any casino. The applicant must identify the
18each riverboat or premises it intends to use and certify that
19the riverboat or premises: (1) has the authorized capacity
20required in this Act; (2) is accessible to persons with
21disabilities; and (3) is fully registered and licensed in
22accordance with any applicable laws.
23 (g) A person who knowingly makes a false statement on an
24application is guilty of a Class A misdemeanor.
25(Source: P.A. 99-143, eff. 7-27-15.)

10100SB0690ham002- 545 -LRB101 04451 SMS 61506 a
1 (230 ILCS 10/7) (from Ch. 120, par. 2407)
2 Sec. 7. Owners licenses.
3 (a) The Board shall issue owners licenses to persons or
4entities that , firms or corporations which apply for such
5licenses upon payment to the Board of the non-refundable
6license fee as provided in subsection (e) or (e-5) set by the
7Board, upon payment of a $25,000 license fee for the first year
8of operation and a $5,000 license fee for each succeeding year
9and upon a determination by the Board that the applicant is
10eligible for an owners license pursuant to this Act and the
11rules of the Board. From the effective date of this amendatory
12Act of the 95th General Assembly until (i) 3 years after the
13effective date of this amendatory Act of the 95th General
14Assembly, (ii) the date any organization licensee begins to
15operate a slot machine or video game of chance under the
16Illinois Horse Racing Act of 1975 or this Act, (iii) the date
17that payments begin under subsection (c-5) of Section 13 of the
18Act, or (iv) the wagering tax imposed under Section 13 of this
19Act is increased by law to reflect a tax rate that is at least
20as stringent or more stringent than the tax rate contained in
21subsection (a-3) of Section 13, or (v) when an owners licensee
22holding a license issued pursuant to Section 7.1 of this Act
23begins conducting gaming, whichever occurs first, as a
24condition of licensure and as an alternative source of payment
25for those funds payable under subsection (c-5) of Section 13 of
26this the Riverboat Gambling Act, any owners licensee that holds

10100SB0690ham002- 546 -LRB101 04451 SMS 61506 a
1or receives its owners license on or after the effective date
2of this amendatory Act of the 94th General Assembly, other than
3an owners licensee operating a riverboat with adjusted gross
4receipts in calendar year 2004 of less than $200,000,000, must
5pay into the Horse Racing Equity Trust Fund, in addition to any
6other payments required under this Act, an amount equal to 3%
7of the adjusted gross receipts received by the owners licensee.
8The payments required under this Section shall be made by the
9owners licensee to the State Treasurer no later than 3:00
10o'clock p.m. of the day after the day when the adjusted gross
11receipts were received by the owners licensee. A person, firm
12or entity corporation is ineligible to receive an owners
13license if:
14 (1) the person has been convicted of a felony under the
15 laws of this State, any other state, or the United States;
16 (2) the person has been convicted of any violation of
17 Article 28 of the Criminal Code of 1961 or the Criminal
18 Code of 2012, or substantially similar laws of any other
19 jurisdiction;
20 (3) the person has submitted an application for a
21 license under this Act which contains false information;
22 (4) the person is a member of the Board;
23 (5) a person defined in (1), (2), (3) or (4) is an
24 officer, director or managerial employee of the entity firm
25 or corporation;
26 (6) the entity firm or corporation employs a person

10100SB0690ham002- 547 -LRB101 04451 SMS 61506 a
1 defined in (1), (2), (3) or (4) who participates in the
2 management or operation of gambling operations authorized
3 under this Act;
4 (7) (blank); or
5 (8) a license of the person or entity , firm or
6 corporation issued under this Act, or a license to own or
7 operate gambling facilities in any other jurisdiction, has
8 been revoked.
9 The Board is expressly prohibited from making changes to
10the requirement that licensees make payment into the Horse
11Racing Equity Trust Fund without the express authority of the
12Illinois General Assembly and making any other rule to
13implement or interpret this amendatory Act of the 95th General
14Assembly. For the purposes of this paragraph, "rules" is given
15the meaning given to that term in Section 1-70 of the Illinois
16Administrative Procedure Act.
17 (b) In determining whether to grant an owners license to an
18applicant, the Board shall consider:
19 (1) the character, reputation, experience and
20 financial integrity of the applicants and of any other or
21 separate person that either:
22 (A) controls, directly or indirectly, such
23 applicant, or
24 (B) is controlled, directly or indirectly, by such
25 applicant or by a person which controls, directly or
26 indirectly, such applicant;

10100SB0690ham002- 548 -LRB101 04451 SMS 61506 a
1 (2) the facilities or proposed facilities for the
2 conduct of riverboat gambling;
3 (3) the highest prospective total revenue to be derived
4 by the State from the conduct of riverboat gambling;
5 (4) the extent to which the ownership of the applicant
6 reflects the diversity of the State by including minority
7 persons, women, and persons with a disability and the good
8 faith affirmative action plan of each applicant to recruit,
9 train and upgrade minority persons, women, and persons with
10 a disability in all employment classifications; the Board
11 shall further consider granting an owners license and
12 giving preference to an applicant under this Section to
13 applicants in which minority persons and women hold
14 ownership interest of at least 16% and 4%, respectively.
15 (4.5) the extent to which the ownership of the
16 applicant includes veterans of service in the armed forces
17 of the United States, and the good faith affirmative action
18 plan of each applicant to recruit, train, and upgrade
19 veterans of service in the armed forces of the United
20 States in all employment classifications;
21 (5) the financial ability of the applicant to purchase
22 and maintain adequate liability and casualty insurance;
23 (6) whether the applicant has adequate capitalization
24 to provide and maintain, for the duration of a license, a
25 riverboat or casino;
26 (7) the extent to which the applicant exceeds or meets

10100SB0690ham002- 549 -LRB101 04451 SMS 61506 a
1 other standards for the issuance of an owners license which
2 the Board may adopt by rule; and
3 (8) the The amount of the applicant's license bid; .
4 (9) the extent to which the applicant or the proposed
5 host municipality plans to enter into revenue sharing
6 agreements with communities other than the host
7 municipality; and
8 (10) the extent to which the ownership of an applicant
9 includes the most qualified number of minority persons,
10 women, and persons with a disability.
11 (c) Each owners license shall specify the place where the
12casino riverboats shall operate or the riverboat shall operate
13and dock.
14 (d) Each applicant shall submit with his application, on
15forms provided by the Board, 2 sets of his fingerprints.
16 (e) In addition to any licenses authorized under subsection
17(e-5) of this Section, the The Board may issue up to 10
18licenses authorizing the holders of such licenses to own
19riverboats. In the application for an owners license, the
20applicant shall state the dock at which the riverboat is based
21and the water on which the riverboat will be located. The Board
22shall issue 5 licenses to become effective not earlier than
23January 1, 1991. Three of such licenses shall authorize
24riverboat gambling on the Mississippi River, or, with approval
25by the municipality in which the riverboat was docked on August
267, 2003 and with Board approval, be authorized to relocate to a

10100SB0690ham002- 550 -LRB101 04451 SMS 61506 a
1new location, in a municipality that (1) borders on the
2Mississippi River or is within 5 miles of the city limits of a
3municipality that borders on the Mississippi River and (2), on
4August 7, 2003, had a riverboat conducting riverboat gambling
5operations pursuant to a license issued under this Act; one of
6which shall authorize riverboat gambling from a home dock in
7the city of East St. Louis; and one of which shall authorize
8riverboat gambling from a home dock in the City of Alton. One
9other license shall authorize riverboat gambling on the
10Illinois River in the City of East Peoria or, with Board
11approval, shall authorize land-based gambling operations
12anywhere within the corporate limits of the City of Peoria
13south of Marshall County. The Board shall issue one additional
14license to become effective not earlier than March 1, 1992,
15which shall authorize riverboat gambling on the Des Plaines
16River in Will County. The Board may issue 4 additional licenses
17to become effective not earlier than March 1, 1992. In
18determining the water upon which riverboats will operate, the
19Board shall consider the economic benefit which riverboat
20gambling confers on the State, and shall seek to assure that
21all regions of the State share in the economic benefits of
22riverboat gambling.
23 In granting all licenses, the Board may give favorable
24consideration to economically depressed areas of the State, to
25applicants presenting plans which provide for significant
26economic development over a large geographic area, and to

10100SB0690ham002- 551 -LRB101 04451 SMS 61506 a
1applicants who currently operate non-gambling riverboats in
2Illinois. The Board shall review all applications for owners
3licenses, and shall inform each applicant of the Board's
4decision. The Board may grant an owners license to an applicant
5that has not submitted the highest license bid, but if it does
6not select the highest bidder, the Board shall issue a written
7decision explaining why another applicant was selected and
8identifying the factors set forth in this Section that favored
9the winning bidder. The fee for issuance or renewal of a
10license pursuant to this subsection (e) shall be $250,000.
11 (e-5) In addition to licenses authorized under subsection
12(e) of this Section:
13 (1) the Board shall issue one owners license
14 authorizing the conduct of casino gambling in the City of
15 Chicago;
16 (2) the Board may issue one owners license authorizing
17 the conduct of riverboat gambling in the City of Danville;
18 (3) the Board may issue one owners license authorizing
19 the conduct of riverboat gambling located in the City of
20 Waukegan;
21 (4) the Board may issue one owners license authorizing
22 the conduct of riverboat gambling in the City of Rockford;
23 (5) the Board may issue one owners license authorizing
24 the conduct of riverboat gambling in a municipality that is
25 wholly or partially located in one of the following
26 townships of Cook County: Bloom, Bremen, Calumet, Rich,

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1 Thornton, or Worth Township; and
2 (6) the Board may issue one owners license authorizing
3 the conduct of riverboat gambling in the unincorporated
4 area of Williamson County adjacent to the Big Muddy River.
5 Except for the license authorized under paragraph (1), each
6application for a license pursuant to this subsection (e-5)
7shall be submitted to the Board no later than 120 days after
8the effective date of this amendatory Act of the 101st General
9Assembly. All applications for a license under this subsection
10(e-5) shall include the nonrefundable application fee and the
11nonrefundable background investigation fee as provided in
12subsection (d) of Section 6 of this Act. In the event that an
13applicant submits an application for a license pursuant to this
14subsection (e-5) prior to the effective date of this amendatory
15Act of the 101st General Assembly, such applicant shall submit
16the nonrefundable application fee and background investigation
17fee as provided in subsection (d) of Section 6 of this Act no
18later than 6 months after the effective date of this amendatory
19Act of the 101st General Assembly.
20 The Board shall consider issuing a license pursuant to
21paragraphs (1) through (6) of this subsection only after the
22corporate authority of the municipality or the county board of
23the county in which the riverboat or casino shall be located
24has certified to the Board the following:
25 (i) that the applicant has negotiated with the
26 corporate authority or county board in good faith;

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1 (ii) that the applicant and the corporate authority or
2 county board have mutually agreed on the permanent location
3 of the riverboat or casino;
4 (iii) that the applicant and the corporate authority or
5 county board have mutually agreed on the temporary location
6 of the riverboat or casino;
7 (iv) that the applicant and the corporate authority or
8 the county board have mutually agreed on the percentage of
9 revenues that will be shared with the municipality or
10 county, if any;
11 (v) that the applicant and the corporate authority or
12 county board have mutually agreed on any zoning, licensing,
13 public health, or other issues that are within the
14 jurisdiction of the municipality or county; and
15 (vi) that the corporate authority or county board has
16 passed a resolution or ordinance in support of the
17 riverboat or casino in the municipality or county.
18 At least 7 days before the corporate authority of a
19municipality or county board of the county submits a
20certification to the Board concerning items (i) through (vi) of
21this subsection, it shall hold a public hearing to discuss
22items (i) through (vi), as well as any other details concerning
23the proposed riverboat or casino in the municipality or county.
24The corporate authority or county board must subsequently
25memorialize the details concerning the proposed riverboat or
26casino in a resolution that must be adopted by a majority of

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1the corporate authority or county board before any
2certification is sent to the Board. The Board shall not alter,
3amend, change, or otherwise interfere with any agreement
4between the applicant and the corporate authority of the
5municipality or county board of the county regarding the
6location of any temporary or permanent facility.
7 In addition, within 30 days after the effective date of
8this amendatory Act of the 101st General Assembly, the Board,
9with consent and at the expense of the City of Chicago, shall
10select and retain the services of a nationally recognized
11casino gaming feasibility consultant. Within 150 days after the
12effective date of this amendatory Act of the 101st General
13Assembly, the consultant shall prepare and deliver to the Board
14a study concerning the feasibility of, and the ability to
15finance, a casino in the City of Chicago. The feasibility study
16shall be delivered to the Mayor of the City of Chicago, the
17Governor, the President of the Senate, and the Speaker of the
18House of Representatives. Ninety days after receipt of the
19feasibility study, the Board shall make a determination, based
20on the results of the feasibility study, whether to issue a
21license under paragraph (1) of this subsection (e-5). The Board
22may begin accepting applications for the owners license under
23paragraph (1) of this subsection (e-5) upon the determination
24to issue such an owners license.
25 In addition, prior to the Board issuing the owners license
26authorized under paragraph (4) of subsection (e-5), an impact

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1study shall be completed to determine what location in the city
2will provide the greater impact to the region, including the
3creation of jobs and the generation of tax revenue.
4 (e-10) The licenses authorized under subsection (e-5) of
5this Section shall be issued within 12 months after the date
6the license application is submitted. If the Board does not
7issue the licenses within that time period, then the Board
8shall give a written explanation to the applicant as to why it
9has not reached a determination and when it reasonably expects
10to make a determination. The fee for the issuance or renewal of
11a license issued pursuant to this subsection (e-10) shall be
12$250,000. Additionally, a licensee located outside of Cook
13County shall pay a minimum initial fee of $17,500 per gaming
14position, and a licensee located in Cook County shall pay a
15minimum initial fee of $30,000 per gaming position. The initial
16fees payable under this subsection (e-10) shall be deposited
17into the Rebuild Illinois Projects Fund.
18 (e-15) Each licensee of a license authorized under
19subsection (e-5) of this Section shall make a reconciliation
20payment 3 years after the date the licensee begins operating in
21an amount equal to 75% of the adjusted gross receipts for the
22most lucrative 12-month period of operations, minus an amount
23equal to the initial payment per gaming position paid by the
24specific licensee. Each licensee shall pay a $15,000,000
25reconciliation fee upon issuance of an owners license. If this
26calculation results in a negative amount, then the licensee is

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1not entitled to any reimbursement of fees previously paid. This
2reconciliation payment may be made in installments over a
3period of no more than 2 years, subject to Board approval. Any
4installment payments shall include an annual market interest
5rate as determined by the Board. All payments by licensees
6under this subsection (e-15) shall be deposited into the
7Rebuild Illinois Projects Fund.
8 (e-20) In addition to any other revocation powers granted
9to the Board under this Act, the Board may revoke the owners
10license of a licensee which fails to begin conducting gambling
11within 15 months of receipt of the Board's approval of the
12application if the Board determines that license revocation is
13in the best interests of the State.
14 (f) The first 10 owners licenses issued under this Act
15shall permit the holder to own up to 2 riverboats and equipment
16thereon for a period of 3 years after the effective date of the
17license. Holders of the first 10 owners licenses must pay the
18annual license fee for each of the 3 years during which they
19are authorized to own riverboats.
20 (g) Upon the termination, expiration, or revocation of each
21of the first 10 licenses, which shall be issued for a 3 year
22period, all licenses are renewable annually upon payment of the
23fee and a determination by the Board that the licensee
24continues to meet all of the requirements of this Act and the
25Board's rules. However, for licenses renewed on or after May 1,
261998, renewal shall be for a period of 4 years, unless the

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1Board sets a shorter period.
2 (h) An owners license, except for an owners license issued
3under subsection (e-5) of this Section, shall entitle the
4licensee to own up to 2 riverboats.
5 An owners licensee of a casino or riverboat that is located
6in the City of Chicago pursuant to paragraph (1) of subsection
7(e-5) of this Section shall limit the number of gaming
8positions to 4,000 for such owner. An owners licensee
9authorized under subsection (e) or paragraph (2), (3), (4), or
10(5) of subsection (e-5) of this Section shall limit the number
11of gaming positions to 2,000 for any such owners license. An
12owners licensee authorized under paragraph (6) of subsection
13(e-5) of this Section A licensee shall limit the number of
14gaming positions gambling participants to 1,200 for any such
15owner. The initial fee for each gaming position obtained on or
16after the effective date of this amendatory Act of the 101st
17General Assembly shall be a minimum of $17,500 for licensees
18not located in Cook County and a minimum of $30,000 for
19licensees located in Cook County, in addition to the
20reconciliation payment, as set forth in subsection (e-15) of
21this Section owners license. The fees under this subsection (h)
22shall be deposited into the Rebuild Illinois Projects Fund. The
23fees under this subsection (h) that are paid by an owners
24licensee authorized under subsection (e) shall be paid by July
251, 2020.
26 Each owners licensee under subsection (e) of this Section

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1shall reserve its gaming positions within 30 days after the
2effective date of this amendatory Act of the 101st General
3Assembly. The Board may grant an extension to this 30-day
4period, provided that the owners licensee submits a written
5request and explanation as to why it is unable to reserve its
6positions within the 30-day period.
7 Each owners licensee under subsection (e-5) of this
8Section shall reserve its gaming positions within 30 days after
9issuance of its owners license. The Board may grant an
10extension to this 30-day period, provided that the owners
11licensee submits a written request and explanation as to why it
12is unable to reserve its positions within the 30-day period.
13 A licensee may operate both of its riverboats concurrently,
14provided that the total number of gaming positions gambling
15participants on both riverboats does not exceed the limit
16established pursuant to this subsection 1,200. Riverboats
17licensed to operate on the Mississippi River and the Illinois
18River south of Marshall County shall have an authorized
19capacity of at least 500 persons. Any other riverboat licensed
20under this Act shall have an authorized capacity of at least
21400 persons.
22 (h-5) An owners licensee who conducted gambling operations
23prior to January 1, 2012 and obtains positions pursuant to this
24amendatory Act of the 101st General Assembly shall make a
25reconciliation payment 3 years after any additional gaming
26positions begin operating in an amount equal to 75% of the

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1owners licensee's average gross receipts for the most lucrative
212-month period of operations minus an amount equal to the
3initial fee that the owners licensee paid per additional gaming
4position. For purposes of this subsection (h-5), "average gross
5receipts" means (i) the increase in adjusted gross receipts for
6the most lucrative 12-month period of operations over the
7adjusted gross receipts for 2019, multiplied by (ii) the
8percentage derived by dividing the number of additional gaming
9positions that an owners licensee had obtained by the total
10number of gaming positions operated by the owners licensee. If
11this calculation results in a negative amount, then the owners
12licensee is not entitled to any reimbursement of fees
13previously paid. This reconciliation payment may be made in
14installments over a period of no more than 2 years, subject to
15Board approval. Any installment payments shall include an
16annual market interest rate as determined by the Board. These
17reconciliation payments shall be deposited into the Rebuild
18Illinois Projects Fund.
19 (i) A licensed owner is authorized to apply to the Board
20for and, if approved therefor, to receive all licenses from the
21Board necessary for the operation of a riverboat or casino,
22including a liquor license, a license to prepare and serve food
23for human consumption, and other necessary licenses. All use,
24occupation and excise taxes which apply to the sale of food and
25beverages in this State and all taxes imposed on the sale or
26use of tangible personal property apply to such sales aboard

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1the riverboat or in the casino.
2 (j) The Board may issue or re-issue a license authorizing a
3riverboat to dock in a municipality or approve a relocation
4under Section 11.2 only if, prior to the issuance or
5re-issuance of the license or approval, the governing body of
6the municipality in which the riverboat will dock has by a
7majority vote approved the docking of riverboats in the
8municipality. The Board may issue or re-issue a license
9authorizing a riverboat to dock in areas of a county outside
10any municipality or approve a relocation under Section 11.2
11only if, prior to the issuance or re-issuance of the license or
12approval, the governing body of the county has by a majority
13vote approved of the docking of riverboats within such areas.
14 (k) An owners licensee may conduct land-based gambling
15operations upon approval by the Board and payment of a fee of
16$250,000, which shall be deposited into the State Gaming Fund.
17 (l) An owners licensee may conduct gaming at a temporary
18facility pending the construction of a permanent facility or
19the remodeling or relocation of an existing facility to
20accommodate gaming participants for up to 24 months after the
21temporary facility begins to conduct gaming. Upon request by an
22owners licensee and upon a showing of good cause by the owners
23licensee, the Board shall extend the period during which the
24licensee may conduct gaming at a temporary facility by up to 12
25months. The Board shall make rules concerning the conduct of
26gaming from temporary facilities.

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1(Source: P.A. 100-391, eff. 8-25-17; 100-1152, eff. 12-14-18.)
2 (230 ILCS 10/7.3)
3 Sec. 7.3. State conduct of gambling operations.
4 (a) If, after reviewing each application for a re-issued
5license, the Board determines that the highest prospective
6total revenue to the State would be derived from State conduct
7of the gambling operation in lieu of re-issuing the license,
8the Board shall inform each applicant of its decision. The
9Board shall thereafter have the authority, without obtaining an
10owners license, to conduct casino or riverboat gambling
11operations as previously authorized by the terminated,
12expired, revoked, or nonrenewed license through a licensed
13manager selected pursuant to an open and competitive bidding
14process as set forth in Section 7.5 and as provided in Section
157.4.
16 (b) The Board may locate any casino or riverboat on which a
17gambling operation is conducted by the State in any home dock
18or other location authorized by Section 3(c) upon receipt of
19approval from a majority vote of the governing body of the
20municipality or county, as the case may be, in which the
21riverboat will dock.
22 (c) The Board shall have jurisdiction over and shall
23supervise all gambling operations conducted by the State
24provided for in this Act and shall have all powers necessary
25and proper to fully and effectively execute the provisions of

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1this Act relating to gambling operations conducted by the
2State.
3 (d) The maximum number of owners licenses authorized under
4Section 7 7(e) shall be reduced by one for each instance in
5which the Board authorizes the State to conduct a casino or
6riverboat gambling operation under subsection (a) in lieu of
7re-issuing a license to an applicant under Section 7.1.
8(Source: P.A. 93-28, eff. 6-20-03.)
9 (230 ILCS 10/7.5)
10 Sec. 7.5. Competitive Bidding. When the Board determines
11that (i) it will re-issue an owners license pursuant to an open
12and competitive bidding process, as set forth in Section 7.1,
13(ii) or that it will issue a managers license pursuant to an
14open and competitive bidding process, as set forth in Section
157.4, or (iii) it will issue an owners license pursuant to an
16open and competitive bidding process, as set forth in Section
177.12, the open and competitive bidding process shall adhere to
18the 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

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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.

10100SB0690ham002- 564 -LRB101 04451 SMS 61506 a
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. Organization gaming licenses.
10 (a) The Illinois Gaming Board shall award one organization
11gaming license to each person or entity having operating
12control of a racetrack that applies under Section 56 of the
13Illinois Horse Racing Act of 1975, subject to the application
14and eligibility requirements of this Section. Within 60 days
15after the effective date of this amendatory Act of the 101st
16General Assembly, a person or entity having operating control
17of a racetrack may submit an application for an organization
18gaming license. The application shall be made on such forms as
19provided by the Board and shall contain such information as the
20Board prescribes, including, but not limited to, the identity
21of any racetrack at which gaming will be conducted pursuant to
22an organization gaming license, detailed information regarding
23the ownership and management of the applicant, and detailed
24personal information regarding the applicant. The application
25shall specify the number of gaming positions the applicant

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1intends to use and the place where the organization gaming
2facility will operate. A person who knowingly makes a false
3statement on an application is guilty of a Class A misdemeanor.
4 Each applicant shall disclose the identity of every person
5or entity having a direct or indirect pecuniary interest
6greater than 1% in any racetrack with respect to which the
7license is sought. If the disclosed entity is a corporation,
8the applicant shall disclose the names and addresses of all
9stockholders and directors. If the disclosed entity is a
10limited liability company, the applicant shall disclose the
11names and addresses of all members and managers. If the
12disclosed entity is a partnership, the applicant shall disclose
13the names and addresses of all partners, both general and
14limited. If the disclosed entity is a trust, the applicant
15shall disclose the names and addresses of all beneficiaries.
16 An application shall be filed and considered in accordance
17with the rules of the Board. Each application for an
18organization gaming license shall include a nonrefundable
19application fee of $250,000. In addition, a nonrefundable fee
20of $50,000 shall be paid at the time of filing to defray the
21costs associated with background investigations conducted by
22the Board. If the costs of the background investigation exceed
23$50,000, the applicant shall pay the additional amount to the
24Board within 7 days after a request by the Board. If the costs
25of the investigation are less than $50,000, the applicant shall
26receive a refund of the remaining amount. All information,

10100SB0690ham002- 566 -LRB101 04451 SMS 61506 a
1records, interviews, reports, statements, memoranda, or other
2data supplied to or used by the Board in the course of this
3review or investigation of an applicant for an organization
4gaming license under this Act shall be privileged and strictly
5confidential and shall be used only for the purpose of
6evaluating an applicant for an organization gaming license or a
7renewal. Such information, records, interviews, reports,
8statements, memoranda, or other data shall not be admissible as
9evidence nor discoverable in any action of any kind in any
10court or before any tribunal, board, agency or person, except
11for any action deemed necessary by the Board. The application
12fee shall be deposited into the State Gaming Fund.
13 Each applicant shall submit with his or her application, on
14forms provided by the Board, a set of his or her fingerprints.
15The Board shall charge each applicant a fee set by the
16Department of State Police to defray the costs associated with
17the search and classification of fingerprints obtained by the
18Board with respect to the applicant's application. This fee
19shall be paid into the State Police Services Fund.
20 (b) The Board shall determine within 120 days after
21receiving an application for an organization gaming license
22whether to grant an organization gaming license to the
23applicant. If the Board does not make a determination within
24that time period, then the Board shall give a written
25explanation to the applicant as to why it has not reached a
26determination and when it reasonably expects to make a

10100SB0690ham002- 567 -LRB101 04451 SMS 61506 a
1determination.
2 The organization gaming licensee shall purchase up to the
3amount of gaming positions authorized under this Act within 120
4days after receiving its organization gaming license. If an
5organization gaming licensee is prepared to purchase the gaming
6positions, but is temporarily prohibited from doing so by order
7of a court of competent jurisdiction or the Board, then the
8120-day period is tolled until a resolution is reached.
9 An organization gaming license shall authorize its holder
10to conduct gaming under this Act at its racetracks on the same
11days of the year and hours of the day that owners licenses are
12allowed to operate under approval of the Board.
13 An organization gaming license and any renewal of an
14organization gaming license shall authorize gaming pursuant to
15this Section for a period of 4 years. The fee for the issuance
16or renewal of an organization gaming license shall be $250,000.
17 All payments by licensees under this subsection (b) shall
18be deposited into the Rebuild Illinois Projects Fund.
19 (c) To be eligible to conduct gaming under this Section, a
20person or entity having operating control of a racetrack must
21(i) obtain an organization gaming license, (ii) hold an
22organization license under the Illinois Horse Racing Act of
231975, (iii) hold an inter-track wagering license, (iv) pay an
24initial fee of $30,000 per gaming position from organization
25gaming licensees where gaming is conducted in Cook County and,
26except as provided in subsection (c-5), $17,500 for

10100SB0690ham002- 568 -LRB101 04451 SMS 61506 a
1organization gaming licensees where gaming is conducted
2outside of Cook County before beginning to conduct gaming plus
3make the reconciliation payment required under subsection (k),
4(v) conduct live racing in accordance with subsections (e-1),
5(e-2), and (e-3) of Section 20 of the Illinois Horse Racing Act
6of 1975, (vi) meet the requirements of subsection (a) of
7Section 56 of the Illinois Horse Racing Act of 1975, (vii) for
8organization licensees conducting standardbred race meetings,
9keep backstretch barns and dormitories open and operational
10year-round unless a lesser schedule is mutually agreed to by
11the organization licensee and the horsemen association racing
12at that organization licensee's race meeting, (viii) for
13organization licensees conducting thoroughbred race meetings,
14the organization licensee must maintain accident medical
15expense liability insurance coverage of $1,000,000 for
16jockeys, and (ix) meet all other requirements of this Act that
17apply to owners licensees.
18 An organization gaming licensee may enter into a joint
19venture with a licensed owner to own, manage, conduct, or
20otherwise operate the organization gaming licensee's
21organization gaming facilities, unless the organization gaming
22licensee has a parent company or other affiliated company that
23is, directly or indirectly, wholly owned by a parent company
24that is also licensed to conduct organization gaming, casino
25gaming, or their equivalent in another state.
26 All payments by licensees under this subsection (c) shall

10100SB0690ham002- 569 -LRB101 04451 SMS 61506 a
1be deposited into the Rebuild Illinois Projects Fund.
2 (c-5) A person or entity having operating control of a
3racetrack located in Madison County shall only pay the initial
4fees specified in subsection (c) for 540 of the gaming
5positions authorized under the license.
6 (d) A person or entity is ineligible to receive an
7organization gaming license if:
8 (1) the person or entity has been convicted of a felony
9 under the laws of this State, any other state, or the
10 United States, including a conviction under the Racketeer
11 Influenced and Corrupt Organizations Act;
12 (2) the person or entity has been convicted of any
13 violation of Article 28 of the Criminal Code of 2012, or
14 substantially similar laws of any other jurisdiction;
15 (3) the person or entity has submitted an application
16 for a license under this Act that contains false
17 information;
18 (4) the person is a member of the Board;
19 (5) a person defined in (1), (2), (3), or (4) of this
20 subsection (d) is an officer, director, or managerial
21 employee of the entity;
22 (6) the person or entity employs a person defined in
23 (1), (2), (3), or (4) of this subsection (d) who
24 participates in the management or operation of gambling
25 operations authorized under this Act; or
26 (7) a license of the person or entity issued under this

10100SB0690ham002- 570 -LRB101 04451 SMS 61506 a
1 Act or a license to own or operate gambling facilities in
2 any other jurisdiction has been revoked.
3 (e) The Board may approve gaming positions pursuant to an
4organization gaming license statewide as provided in this
5Section. The authority to operate gaming positions under this
6Section shall be allocated as follows: up to 1,200 gaming
7positions for any organization gaming licensee in Cook County
8and up to 900 gaming positions for any organization gaming
9licensee outside of Cook County.
10 (f) Each applicant for an organization gaming license shall
11specify in its application for licensure the number of gaming
12positions it will operate, up to the applicable limitation set
13forth in subsection (e) of this Section. Any unreserved gaming
14positions that are not specified shall be forfeited and
15retained by the Board. For the purposes of this subsection (f),
16an organization gaming licensee that did not conduct live
17racing in 2010 and is located within 3 miles of the Mississippi
18River may reserve up to 900 positions and shall not be
19penalized under this Section for not operating those positions
20until it meets the requirements of subsection (e) of this
21Section, but such licensee shall not request unreserved gaming
22positions under this subsection (f) until its 900 positions are
23all operational.
24 Thereafter, the Board shall publish the number of
25unreserved gaming positions and shall accept requests for
26additional positions from any organization gaming licensee

10100SB0690ham002- 571 -LRB101 04451 SMS 61506 a
1that initially reserved all of the positions that were offered.
2The Board shall allocate expeditiously the unreserved gaming
3positions to requesting organization gaming licensees in a
4manner that maximizes revenue to the State. The Board may
5allocate any such unused gaming positions pursuant to an open
6and competitive bidding process, as provided under Section 7.5
7of this Act. This process shall continue until all unreserved
8gaming positions have been purchased. All positions obtained
9pursuant to this process and all positions the organization
10gaming licensee specified it would operate in its application
11must be in operation within 18 months after they were obtained
12or the organization gaming licensee forfeits the right to
13operate those positions, but is not entitled to a refund of any
14fees paid. The Board may, after holding a public hearing, grant
15extensions so long as the organization gaming licensee is
16working in good faith to make the positions operational. The
17extension may be for a period of 6 months. If, after the period
18of the extension, the organization gaming licensee has not made
19the positions operational, then another public hearing must be
20held by the Board before it may grant another extension.
21 Unreserved gaming positions retained from and allocated to
22organization gaming licensees by the Board pursuant to this
23subsection (f) shall not be allocated to owners licensees under
24this Act.
25 For the purpose of this subsection (f), the unreserved
26gaming positions for each organization gaming licensee shall be

10100SB0690ham002- 572 -LRB101 04451 SMS 61506 a
1the applicable limitation set forth in subsection (e) of this
2Section, less the number of reserved gaming positions by such
3organization gaming licensee, and the total unreserved gaming
4positions shall be the aggregate of the unreserved gaming
5positions for all organization gaming licensees.
6 (g) An organization gaming licensee is authorized to
7conduct the following at a racetrack:
8 (1) slot machine gambling;
9 (2) video game of chance gambling;
10 (3) gambling with electronic gambling games as defined
11 in this Act or defined by the Illinois Gaming Board; and
12 (4) table games.
13 (h) Subject to the approval of the Illinois Gaming Board,
14an organization gaming licensee may make modification or
15additions to any existing buildings and structures to comply
16with the requirements of this Act. The Illinois Gaming Board
17shall make its decision after consulting with the Illinois
18Racing Board. In no case, however, shall the Illinois Gaming
19Board approve any modification or addition that alters the
20grounds of the organization licensee such that the act of live
21racing is an ancillary activity to gaming authorized under this
22Section. Gaming authorized under this Section may take place in
23existing structures where inter-track wagering is conducted at
24the racetrack or a facility within 300 yards of the racetrack
25in accordance with the provisions of this Act and the Illinois
26Horse Racing Act of 1975.

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1 (i) An organization gaming licensee may conduct gaming at a
2temporary facility pending the construction of a permanent
3facility or the remodeling or relocation of an existing
4facility to accommodate gaming participants for up to 24 months
5after the temporary facility begins to conduct gaming
6authorized under this Section. Upon request by an organization
7gaming licensee and upon a showing of good cause by the
8organization gaming licensee, the Board shall extend the period
9during which the licensee may conduct gaming authorized under
10this Section at a temporary facility by up to 12 months. The
11Board shall make rules concerning the conduct of gaming
12authorized under this Section from temporary facilities.
13 The gaming authorized under this Section may take place in
14existing structures where inter-track wagering is conducted at
15the racetrack or a facility within 300 yards of the racetrack
16in accordance with the provisions of this Act and the Illinois
17Horse Racing Act of 1975.
18 (i-5) Under no circumstances shall an organization gaming
19licensee conduct gaming at any State or county fair.
20 (j) The Illinois Gaming Board must adopt emergency rules in
21accordance with Section 5-45 of the Illinois Administrative
22Procedure Act as necessary to ensure compliance with the
23provisions of this amendatory Act of the 101st General Assembly
24concerning the conduct of gaming by an organization gaming
25licensee. The adoption of emergency rules authorized by this
26subsection (j) shall be deemed to be necessary for the public

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1interest, safety, and welfare.
2 (k) Each organization gaming licensee who obtains gaming
3positions must make a reconciliation payment 3 years after the
4date the organization gaming licensee begins operating the
5positions in an amount equal to 75% of the difference between
6its adjusted gross receipts from gaming authorized under this
7Section and amounts paid to its purse accounts pursuant to item
8(1) of subsection (b) of Section 56 of the Illinois Horse
9Racing Act of 1975 for the 12-month period for which such
10difference was the largest, minus an amount equal to the
11initial per position fee paid by the organization gaming
12licensee. If this calculation results in a negative amount,
13then the organization gaming licensee is not entitled to any
14reimbursement of fees previously paid. This reconciliation
15payment may be made in installments over a period of no more
16than 2 years, subject to Board approval. Any installment
17payments shall include an annual market interest rate as
18determined by the Board.
19 All payments by licensees under this subsection (k) shall
20be deposited into the Rebuild Illinois Projects Fund.
21 (l) As soon as practical after a request is made by the
22Illinois Gaming Board, to minimize duplicate submissions by the
23applicant, the Illinois Racing Board must provide information
24on an applicant for an organization gaming license to the
25Illinois Gaming Board.

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1 (230 ILCS 10/7.8 new)
2 Sec. 7.8. Home rule. The regulation and licensing of
3organization gaming licensees and gaming conducted pursuant to
4an organization gaming license are exclusive powers and
5functions of the State. A home rule unit may not regulate or
6license such gaming or organization gaming licensees. This
7Section is a denial and limitation of home rule powers and
8functions under subsection (h) of Section 6 of Article VII of
9the Illinois Constitution.
10 (230 ILCS 10/7.10 new)
11 Sec. 7.10. Diversity program.
12 (a) Each owners licensee, organization gaming licensee,
13and suppliers licensee shall establish and maintain a diversity
14program to ensure non-discrimination in the award and
15administration of contracts. The programs shall establish
16goals of awarding not less than 25% of the annual dollar value
17of all contracts, purchase orders, or other agreements to
18minority-owned businesses and 5% of the annual dollar value of
19all contracts to women-owned businesses.
20 (b) Each owners licensee, organization gaming licensee,
21and suppliers licensee shall establish and maintain a diversity
22program designed to promote equal opportunity for employment.
23The program shall establish hiring goals as the Board and each
24licensee determines appropriate. The Board shall monitor the
25progress of the gaming licensee's progress with respect to the

10100SB0690ham002- 576 -LRB101 04451 SMS 61506 a
1program's goals.
2 (c) No later than May 31 of each year, each licensee shall
3report to the Board (1) the number of respective employees and
4the number of its respective employees who have designated
5themselves as members of a minority group and gender and (2)
6the total goals achieved under subsection (a) of this Section
7as a percentage of the total contracts awarded by the license.
8In addition, all licensees shall submit a report with respect
9to the minority-owned and women-owned businesses program
10created in this Section to the Board.
11 (d) When considering whether to re-issue or renew a license
12to an owners licensee, organization gaming licensee, or
13suppliers licensee, the Board shall take into account the
14licensee's success in complying with the provisions of this
15Section. If an owners licensee, organization gaming licensee,
16or suppliers licensee has not satisfied the goals contained in
17this Section, the Board shall require a written explanation as
18to why the licensee is not in compliance and shall require the
19licensee to file multi-year metrics designed to achieve
20compliance with the provisions by the next renewal period,
21consistent with State and federal law.
22 (230 ILCS 10/7.11 new)
23 Sec. 7.11. Annual report on diversity.
24 (a) Each licensee that receives a license under Sections 7,
257.1, and 7.7 shall execute and file a report with the Board no

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1later than December 31 of each year that shall contain, but not
2be limited to, the following information:
3 (i) a good faith affirmative action plan to recruit,
4 train, and upgrade minority persons, women, and persons
5 with a disability in all employment classifications;
6 (ii) the total dollar amount of contracts that were
7 awarded to businesses owned by minority persons, women, and
8 persons with a disability;
9 (iii) the total number of businesses owned by minority
10 persons, women, and persons with a disability that were
11 utilized by the licensee;
12 (iv) the utilization of businesses owned by minority
13 persons, women, and persons with disabilities during the
14 preceding year; and
15 (v) the outreach efforts used by the licensee to
16 attract investors and businesses consisting of minority
17 persons, women, and persons with a disability.
18 (b) The Board shall forward a copy of each licensee's
19annual reports to the General Assembly no later than February 1
20of each year. The reports to the General Assembly shall be
21filed with the Clerk of the House of Representatives and the
22Secretary of the Senate in electronic form only, in the manner
23that the Clerk and the Secretary shall direct.
24 (230 ILCS 10/7.12 new)
25 Sec. 7.12. Issuance of new owners licenses.

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1 (a) Owners licenses newly authorized pursuant to this
2amendatory Act of the 101st General Assembly may be issued by
3the Board to a qualified applicant pursuant to an open and
4competitive bidding process, as set forth in Section 7.5, and
5subject to the maximum number of authorized licenses set forth
6in subsection (e-5) of Section 7 of this Act.
7 (b) To be a qualified applicant, a person or entity may not
8be ineligible to receive an owners license under subsection (a)
9of Section 7 of this Act and must submit an application for an
10owners license that complies with Section 6 of this Act.
11 (c) In determining whether to grant an owners license to an
12applicant, the Board shall consider all of the factors set
13forth in subsections (b) and (e-10) of Section 7 of this Act,
14as well as the amount of the applicant's license bid. The Board
15may grant the owners license to an applicant that has not
16submitted the highest license bid, but if it does not select
17the highest bidder, the Board shall issue a written decision
18explaining why another applicant was selected and identifying
19the factors set forth in subsections (b) and (e-10) of Section
207 of this Act that favored the winning bidder.
21 (230 ILCS 10/7.13 new)
22 Sec. 7.13. Environmental standards. All permanent
23casinos, riverboats, and organization gaming facilities shall
24consist of buildings that are certified as meeting the U.S.
25Green Building Council's Leadership in Energy and

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1Environmental Design standards. The provisions of this Section
2apply to a holder of an owners license or organization gaming
3license that (i) begins operations on or after January 1, 2019
4or (ii) relocates its facilities on or after the effective date
5of this amendatory Act of the 101st General Assembly.
6 (230 ILCS 10/7.14 new)
7 Sec. 7.14. Chicago Casino Advisory Committee. An Advisory
8Committee is established to monitor, review, and report on (1)
9the utilization of minority-owned business enterprises and
10women-owned business enterprises by the owners licensee, (2)
11employment of women, and (3) employment of minorities with
12regard to the development and construction of the casino as
13authorized under paragraph (1) of subsection (e-5) of Section 7
14of the Illinois Gambling Act. The owners licensee under
15paragraph (1) of subsection (e-5) of Section 7 of the Illinois
16Gambling Act shall work with the Advisory Committee in
17accumulating necessary information for the Advisory Committee
18to submit reports, as necessary, to the General Assembly and to
19the City of Chicago.
20 The Advisory Committee shall consist of 9 members as
21provided in this Section. Five members shall be selected by the
22Governor and 4 members shall be selected by the Mayor of the
23City of Chicago. The Governor and the Mayor of the City of
24Chicago shall each appoint at least one current member of the
25General Assembly. The Advisory Committee shall meet

10100SB0690ham002- 580 -LRB101 04451 SMS 61506 a
1periodically and shall report the information to the Mayor of
2the City of Chicago and to the General Assembly by December
331st of every year.
4 The Advisory Committee shall be dissolved on the date that
5casino gambling operations are first conducted at a permanent
6facility under the license authorized under paragraph (1) of
7subsection (e-5) Section 7 of the Illinois Gambling Act. For
8the purposes of this Section, the terms "woman" and "minority
9person" have the meanings provided in Section 2 of the Business
10Enterprise for Minorities, Women, and Persons with
11Disabilities Act.
12 (230 ILCS 10/7.15 new)
13 Sec. 7.15. Limitations on gaming at Chicago airports. The
14Chicago casino may conduct gaming operations in an airport
15under the administration or control of the Chicago Department
16of Aviation. Gaming operations may be conducted pursuant to
17this Section so long as: (i) gaming operations are conducted in
18a secured area that is beyond the Transportation Security
19Administration security checkpoints and only available to
20airline passengers at least 21 years of age who are members of
21a private club, and not to the general public, (ii) gaming
22operations are limited to slot machines, as defined in Section
234 of the Illinois Gambling Act, and (iii) the combined number
24of gaming positions operating in the City of Chicago at the
25airports and at the temporary and permanent casino facility

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1does not exceed the maximum number of gaming positions
2authorized pursuant to subsection (h) of Section 7 of the
3Illinois Gambling Act. Gaming operations at an airport are
4subject to all applicable laws and rules that apply to any
5other gaming facility under the Illinois Gambling Act.
6 (230 ILCS 10/8) (from Ch. 120, par. 2408)
7 Sec. 8. Suppliers licenses.
8 (a) The Board may issue a suppliers license to such
9persons, firms or corporations which apply therefor upon the
10payment of a non-refundable application fee set by the Board,
11upon a determination by the Board that the applicant is
12eligible for a suppliers license and upon payment of a $5,000
13annual license fee.
14 (b) The holder of a suppliers license is authorized to sell
15or lease, and to contract to sell or lease, gambling equipment
16and supplies to any licensee involved in the ownership or
17management of gambling operations.
18 (c) Gambling supplies and equipment may not be distributed
19unless supplies and equipment conform to standards adopted by
20rules of the Board.
21 (d) A person, firm or corporation is ineligible to receive
22a suppliers license if:
23 (1) the person has been convicted of a felony under the
24 laws of this State, any other state, or the United States;
25 (2) the person has been convicted of any violation of

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

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

10100SB0690ham002- 584 -LRB101 04451 SMS 61506 a
1of an owners license, organization gaming license, or suppliers
2license for repair.
3(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;
498-756, eff. 7-16-14.)
5 (230 ILCS 10/9) (from Ch. 120, par. 2409)
6 Sec. 9. Occupational licenses.
7 (a) The Board may issue an occupational license to an
8applicant upon the payment of a non-refundable fee set by the
9Board, upon a determination by the Board that the applicant is
10eligible for an occupational license and upon payment of an
11annual license fee in an amount to be established. To be
12eligible for an occupational license, an applicant must:
13 (1) be at least 21 years of age if the applicant will
14 perform any function involved in gaming by patrons. Any
15 applicant seeking an occupational license for a non-gaming
16 function shall be at least 18 years of age;
17 (2) not have been convicted of a felony offense, a
18 violation of Article 28 of the Criminal Code of 1961 or the
19 Criminal Code of 2012, or a similar statute of any other
20 jurisdiction;
21 (2.5) not have been convicted of a crime, other than a
22 crime described in item (2) of this subsection (a),
23 involving dishonesty or moral turpitude, except that the
24 Board may, in its discretion, issue an occupational license
25 to a person who has been convicted of a crime described in

10100SB0690ham002- 585 -LRB101 04451 SMS 61506 a
1 this item (2.5) more than 10 years prior to his or her
2 application and has not subsequently been convicted of any
3 other crime;
4 (3) have demonstrated a level of skill or knowledge
5 which the Board determines to be necessary in order to
6 operate gambling aboard a riverboat, in a casino, or at an
7 organization gaming facility; and
8 (4) have met standards for the holding of an
9 occupational license as adopted by rules of the Board. Such
10 rules shall provide that any person or entity seeking an
11 occupational license to manage gambling operations under
12 this Act hereunder shall be subject to background inquiries
13 and further requirements similar to those required of
14 applicants for an owners license. Furthermore, such rules
15 shall provide that each such entity shall be permitted to
16 manage gambling operations for only one licensed owner.
17 (b) Each application for an occupational license shall be
18on forms prescribed by the Board and shall contain all
19information required by the Board. The applicant shall set
20forth in the application: whether he has been issued prior
21gambling related licenses; whether he has been licensed in any
22other state under any other name, and, if so, such name and his
23age; and whether or not a permit or license issued to him in
24any other state has been suspended, restricted or revoked, and,
25if so, for what period of time.
26 (c) Each applicant shall submit with his application, on

10100SB0690ham002- 586 -LRB101 04451 SMS 61506 a
1forms provided by the Board, 2 sets of his fingerprints. The
2Board shall charge each applicant a fee set by the Department
3of State Police to defray the costs associated with the search
4and classification of fingerprints obtained by the Board with
5respect to the applicant's application. These fees shall be
6paid into the State Police Services Fund.
7 (d) The Board may in its discretion refuse an occupational
8license to any person: (1) who is unqualified to perform the
9duties required of such applicant; (2) who fails to disclose or
10states falsely any information called for in the application;
11(3) who has been found guilty of a violation of this Act or
12whose prior gambling related license or application therefor
13has been suspended, restricted, revoked or denied for just
14cause in any other state; or (4) for any other just cause.
15 (e) The Board may suspend, revoke or restrict any
16occupational licensee: (1) for violation of any provision of
17this Act; (2) for violation of any of the rules and regulations
18of the Board; (3) for any cause which, if known to the Board,
19would have disqualified the applicant from receiving such
20license; or (4) for default in the payment of any obligation or
21debt due to the State of Illinois; or (5) for any other just
22cause.
23 (f) A person who knowingly makes a false statement on an
24application is guilty of a Class A misdemeanor.
25 (g) Any license issued pursuant to this Section shall be
26valid for a period of one year from the date of issuance.

10100SB0690ham002- 587 -LRB101 04451 SMS 61506 a
1 (h) Nothing in this Act shall be interpreted to prohibit a
2licensed owner or organization gaming licensee from entering
3into an agreement with a public community college or a school
4approved under the Private Business and Vocational Schools Act
5of 2012 for the training of any occupational licensee. Any
6training offered by such a school shall be in accordance with a
7written agreement between the licensed owner or organization
8gaming licensee and the school.
9 (i) Any training provided for occupational licensees may be
10conducted either at the site of the gambling facility on the
11riverboat or at a school with which a licensed owner or
12organization gaming licensee has entered into an agreement
13pursuant to subsection (h).
14(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;
1597-1150, eff. 1-25-13.)
16 (230 ILCS 10/11) (from Ch. 120, par. 2411)
17 Sec. 11. Conduct of gambling. Gambling may be conducted by
18licensed owners or licensed managers on behalf of the State
19aboard riverboats. Gambling may be conducted by organization
20gaming licensees at organization gaming facilities. Gambling
21authorized under this Section is , subject to the following
22standards:
23 (1) A licensee may conduct riverboat gambling
24 authorized under this Act regardless of whether it conducts
25 excursion cruises. A licensee may permit the continuous

10100SB0690ham002- 588 -LRB101 04451 SMS 61506 a
1 ingress and egress of patrons passengers on a riverboat not
2 used for excursion cruises for the purpose of gambling.
3 Excursion cruises shall not exceed 4 hours for a round
4 trip. However, the Board may grant express approval for an
5 extended cruise on a case-by-case basis.
6 (1.5) An owners licensee may conduct gambling
7 operations authorized under this Act 24 hours a day.
8 (2) (Blank).
9 (3) Minimum and maximum wagers on games shall be set by
10 the licensee.
11 (4) Agents of the Board and the Department of State
12 Police may board and inspect any riverboat, enter and
13 inspect any portion of a casino, or enter and inspect any
14 portion of an organization gaming facility at any time for
15 the purpose of determining whether this Act is being
16 complied with. Every riverboat, if under way and being
17 hailed by a law enforcement officer or agent of the Board,
18 must stop immediately and lay to.
19 (5) Employees of the Board shall have the right to be
20 present on the riverboat or in the casino or on adjacent
21 facilities under the control of the licensee and at the
22 organization gaming facility under the control of the
23 organization gaming licensee.
24 (6) Gambling equipment and supplies customarily used
25 in conducting riverboat gambling must be purchased or
26 leased only from suppliers licensed for such purpose under

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1 this Act. The Board may approve the transfer, sale, or
2 lease of gambling equipment and supplies by a licensed
3 owner from or to an affiliate of the licensed owner as long
4 as the gambling equipment and supplies were initially
5 acquired from a supplier licensed in Illinois.
6 (7) Persons licensed under this Act shall permit no
7 form of wagering on gambling games except as permitted by
8 this Act.
9 (8) Wagers may be received only from a person present
10 on a licensed riverboat, in a casino, or at an organization
11 gaming facility. No person present on a licensed riverboat,
12 in a casino, or at an organization gaming facility shall
13 place or attempt to place a wager on behalf of another
14 person who is not present on the riverboat, in a casino, or
15 at the organization gaming facility.
16 (9) Wagering, including gaming authorized under
17 Section 7.7, shall not be conducted with money or other
18 negotiable currency.
19 (10) A person under age 21 shall not be permitted on an
20 area of a riverboat or casino where gambling is being
21 conducted or at an organization gaming facility where
22 gambling is being conducted, except for a person at least
23 18 years of age who is an employee of the riverboat or
24 casino gambling operation or gaming operation. No employee
25 under age 21 shall perform any function involved in
26 gambling by the patrons. No person under age 21 shall be

10100SB0690ham002- 590 -LRB101 04451 SMS 61506 a
1 permitted to make a wager under this Act, and any winnings
2 that are a result of a wager by a person under age 21,
3 whether or not paid by a licensee, shall be treated as
4 winnings for the privilege tax purposes, confiscated, and
5 forfeited to the State and deposited into the Education
6 Assistance Fund.
7 (11) Gambling excursion cruises are permitted only
8 when the waterway for which the riverboat is licensed is
9 navigable, as determined by the Board in consultation with
10 the U.S. Army Corps of Engineers. This paragraph (11) does
11 not limit the ability of a licensee to conduct gambling
12 authorized under this Act when gambling excursion cruises
13 are not permitted.
14 (12) All tickets tokens, chips, or electronic cards
15 used to make wagers must be purchased (i) from a licensed
16 owner or manager, in the case of a riverboat, either aboard
17 a riverboat or at an onshore facility which has been
18 approved by the Board and which is located where the
19 riverboat docks, (ii) in the case of a casino, from a
20 licensed owner at the casino, or (iii) from an organization
21 gaming licensee at the organization gaming facility. The
22 tickets tokens, chips, or electronic cards may be purchased
23 by means of an agreement under which the owner or manager
24 extends credit to the patron. Such tickets tokens, chips,
25 or electronic cards may be used while aboard the riverboat,
26 in the casino, or at the organization gaming facility only

10100SB0690ham002- 591 -LRB101 04451 SMS 61506 a
1 for the purpose of making wagers on gambling games.
2 (13) Notwithstanding any other Section of this Act, in
3 addition to the other licenses authorized under this Act,
4 the Board may issue special event licenses allowing persons
5 who are not otherwise licensed to conduct riverboat
6 gambling to conduct such gambling on a specified date or
7 series of dates. Riverboat gambling under such a license
8 may take place on a riverboat not normally used for
9 riverboat gambling. The Board shall establish standards,
10 fees and fines for, and limitations upon, such licenses,
11 which may differ from the standards, fees, fines and
12 limitations otherwise applicable under this Act. All such
13 fees shall be deposited into the State Gaming Fund. All
14 such fines shall be deposited into the Education Assistance
15 Fund, created by Public Act 86-0018, of the State of
16 Illinois.
17 (14) In addition to the above, gambling must be
18 conducted in accordance with all rules adopted by the
19 Board.
20(Source: P.A. 96-1392, eff. 1-1-11.)
21 (230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)
22 Sec. 11.1. Collection of amounts owing under credit
23agreements. Notwithstanding any applicable statutory provision
24to the contrary, a licensed owner, licensed or manager, or
25organization gaming licensee who extends credit to a riverboat

10100SB0690ham002- 592 -LRB101 04451 SMS 61506 a
1gambling patron pursuant to paragraph (12) of Section 11
2Section 11 (a) (12) of this Act is expressly authorized to
3institute a cause of action to collect any amounts due and
4owing under the extension of credit, as well as the licensed
5owner's, licensed or manager's, or organization gaming
6licensee's costs, expenses and reasonable attorney's fees
7incurred in collection.
8(Source: P.A. 93-28, eff. 6-20-03.)
9 (230 ILCS 10/12) (from Ch. 120, par. 2412)
10 Sec. 12. Admission tax; fees.
11 (a) A tax is hereby imposed upon admissions to riverboat
12and casino gambling facilities riverboats operated by licensed
13owners authorized pursuant to this Act. Until July 1, 2002, the
14rate is $2 per person admitted. From July 1, 2002 until July 1,
152003, the rate is $3 per person admitted. From July 1, 2003
16until August 23, 2005 (the effective date of Public Act
1794-673), for a licensee that admitted 1,000,000 persons or
18fewer in the previous calendar year, the rate is $3 per person
19admitted; for a licensee that admitted more than 1,000,000 but
20no more than 2,300,000 persons in the previous calendar year,
21the rate is $4 per person admitted; and for a licensee that
22admitted more than 2,300,000 persons in the previous calendar
23year, the rate is $5 per person admitted. Beginning on August
2423, 2005 (the effective date of Public Act 94-673), for a
25licensee that admitted 1,000,000 persons or fewer in calendar

10100SB0690ham002- 593 -LRB101 04451 SMS 61506 a
1year 2004, the rate is $2 per person admitted, and for all
2other licensees, including licensees that were not conducting
3gambling operations in 2004, the rate is $3 per person
4admitted. This admission tax is imposed upon the licensed owner
5conducting gambling.
6 (1) The admission tax shall be paid for each admission,
7 except that a person who exits a riverboat gambling
8 facility and reenters that riverboat gambling facility
9 within the same gaming day shall be subject only to the
10 initial admission tax.
11 (2) (Blank).
12 (3) The riverboat licensee may issue tax-free passes to
13 actual and necessary officials and employees of the
14 licensee or other persons actually working on the
15 riverboat.
16 (4) The number and issuance of tax-free passes is
17 subject to the rules of the Board, and a list of all
18 persons to whom the tax-free passes are issued shall be
19 filed with the Board.
20 (a-5) A fee is hereby imposed upon admissions operated by
21licensed managers on behalf of the State pursuant to Section
227.3 at the rates provided in this subsection (a-5). For a
23licensee that admitted 1,000,000 persons or fewer in the
24previous calendar year, the rate is $3 per person admitted; for
25a licensee that admitted more than 1,000,000 but no more than
262,300,000 persons in the previous calendar year, the rate is $4

10100SB0690ham002- 594 -LRB101 04451 SMS 61506 a
1per person admitted; and for a licensee that admitted more than
22,300,000 persons in the previous calendar year, the rate is $5
3per person admitted.
4 (1) The admission fee shall be paid for each admission.
5 (2) (Blank).
6 (3) The licensed manager may issue fee-free passes to
7 actual and necessary officials and employees of the manager
8 or other persons actually working on the riverboat.
9 (4) The number and issuance of fee-free passes is
10 subject to the rules of the Board, and a list of all
11 persons to whom the fee-free passes are issued shall be
12 filed with the Board.
13 (b) Except as provided in subsection (b-5), from From the
14tax imposed under subsection (a) and the fee imposed under
15subsection (a-5), a municipality shall receive from the State
16$1 for each person embarking on a riverboat docked within the
17municipality or entering a casino located within the
18municipality, and a county shall receive $1 for each person
19entering a casino or embarking on a riverboat docked within the
20county but outside the boundaries of any municipality. The
21municipality's or county's share shall be collected by the
22Board on behalf of the State and remitted quarterly by the
23State, subject to appropriation, to the treasurer of the unit
24of local government for deposit in the general fund.
25 (b-5) From the tax imposed under subsection (a) and the fee
26imposed under subsection (a-5), $1 for each person embarking on

10100SB0690ham002- 595 -LRB101 04451 SMS 61506 a
1a riverboat designated in paragraph (4) of subsection (e-5) of
2Section 7 shall be divided as follows: $0.70 to the City of
3Rockford, $0.05 to the City of Loves Park, $0.05 to the Village
4of Machesney Park, and $0.20 to Winnebago County.
5 The municipality's or county's share shall be collected by
6the Board on behalf of the State and remitted monthly by the
7State, subject to appropriation, to the treasurer of the unit
8of local government for deposit in the general fund.
9 (b-10) From the tax imposed under subsection (a) and the
10fee imposed under subsection (a-5), $1 for each person
11embarking on a riverboat or entering a casino designated in
12paragraph (1) of subsection (e-5) of Section 7 shall be divided
13as follows: $0.70 to the City of Chicago, $0.15 to the Village
14of Maywood, and $0.15 to the Village of Summit.
15 The municipality's or county's share shall be collected by
16the Board on behalf of the State and remitted monthly by the
17State, subject to appropriation, to the treasurer of the unit
18of local government for deposit in the general fund.
19 (b-15) From the tax imposed under subsection (a) and the
20fee imposed under subsection (a-5), $1 for each person
21embarking on a riverboat or entering a casino designated in
22paragraph (2) of subsection (e-5) of Section 7 shall be divided
23as follows: $0.70 to the City of Danville and $0.30 to
24Vermilion County.
25 The municipality's or county's share shall be collected by
26the Board on behalf of the State and remitted monthly by the

10100SB0690ham002- 596 -LRB101 04451 SMS 61506 a
1State, subject to appropriation, to the treasurer of the unit
2of local government for deposit in the general fund.
3 (c) The licensed owner shall pay the entire admission tax
4to the Board and the licensed manager shall pay the entire
5admission fee to the Board. Such payments shall be made daily.
6Accompanying each payment shall be a return on forms provided
7by the Board which shall include other information regarding
8admissions as the Board may require. Failure to submit either
9the payment or the return within the specified time may result
10in suspension or revocation of the owners or managers license.
11 (c-5) A tax is imposed on admissions to organization gaming
12facilities at the rate of $3 per person admitted by an
13organization gaming licensee. The tax is imposed upon the
14organization gaming licensee.
15 (1) The admission tax shall be paid for each admission,
16 except that a person who exits an organization gaming
17 facility and reenters that organization gaming facility
18 within the same gaming day, as the term "gaming day" is
19 defined by the Board by rule, shall be subject only to the
20 initial admission tax. The Board shall establish, by rule,
21 a procedure to determine whether a person admitted to an
22 organization gaming facility has paid the admission tax.
23 (2) An organization gaming licensee may issue tax-free
24 passes to actual and necessary officials and employees of
25 the licensee and other persons associated with its gaming
26 operations.

10100SB0690ham002- 597 -LRB101 04451 SMS 61506 a
1 (3) The number and issuance of tax-free passes is
2 subject to the rules of the Board, and a list of all
3 persons to whom the tax-free passes are issued shall be
4 filed with the Board.
5 (4) The organization gaming licensee shall pay the
6 entire admission tax to the Board.
7 Such payments shall be made daily. Accompanying each
8payment shall be a return on forms provided by the Board, which
9shall include other information regarding admission as the
10Board may require. Failure to submit either the payment or the
11return within the specified time may result in suspension or
12revocation of the organization gaming license.
13 From the tax imposed under this subsection (c-5), a
14municipality other than the Village of Stickney or the City of
15Collinsville in which an organization gaming facility is
16located, or if the organization gaming facility is not located
17within a municipality, then the county in which the
18organization gaming facility is located, except as otherwise
19provided in this Section, shall receive, subject to
20appropriation, $1 for each person who enters the organization
21gaming facility. For each admission to the organization gaming
22facility in excess of 1,500,000 in a year, from the tax imposed
23under this subsection (c-5), the county in which the
24organization gaming facility is located shall receive, subject
25to appropriation, $0.30, which shall be in addition to any
26other moneys paid to the county under this Section.

10100SB0690ham002- 598 -LRB101 04451 SMS 61506 a
1 From the tax imposed under this subsection (c-5) on an
2organization gaming facility located in the Village of
3Stickney, $1 for each person who enters the organization gaming
4facility shall be distributed as follows, subject to
5appropriation: $0.24 to the Village of Stickney, $0.49 to the
6Town of Cicero, $0.05 to the City of Berwyn, and $0.17 to the
7Stickney Public Health District, and $0.05 to the City of
8Bridgeview.
9 From the tax imposed under this subsection (c-5) on an
10organization gaming facility located in the City of
11Collinsville, the following shall each receive 10 cents for
12each person who enters the organization gaming facility,
13subject to appropriation: the Village of Alorton; the Village
14of Washington Park; State Park Place; the Village of Fairmont
15City; the City of Centreville; the Village of Brooklyn; the
16City of Venice; the City of Madison; the Village of Caseyville;
17and the Village of Pontoon Beach.
18 On the 25th day of each month, all amounts remaining after
19payments required under this subsection (c-5) have been made
20shall be transferred into the Capital Projects 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.

10100SB0690ham002- 599 -LRB101 04451 SMS 61506 a
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

10100SB0690ham002- 600 -LRB101 04451 SMS 61506 a
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;

10100SB0690ham002- 601 -LRB101 04451 SMS 61506 a
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

10100SB0690ham002- 602 -LRB101 04451 SMS 61506 a
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 gambling operations, other
8than licensed managers conducting riverboat gambling
9operations on behalf of the State, 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 22.5% of annual adjusted gross receipts in excess of
15 $25,000,000 but not exceeding $50,000,000;
16 27.5% of annual adjusted gross receipts in excess of
17 $50,000,000 but not exceeding $75,000,000;
18 32.5% of annual adjusted gross receipts in excess of
19 $75,000,000 but not exceeding $100,000,000;
20 37.5% of annual adjusted gross receipts in excess of
21 $100,000,000 but not exceeding $150,000,000;
22 45% of annual adjusted gross receipts in excess of
23 $150,000,000 but not exceeding $200,000,000;
24 50% of annual adjusted gross receipts in excess of
25 $200,000,000.
26 For the imposition of the privilege tax in this subsection

10100SB0690ham002- 603 -LRB101 04451 SMS 61506 a
1(a-4), amounts paid pursuant to item (1) of subsection (b) of
2Section 56 of the Illinois Horse Racing Act of 1975 shall not
3be included in the determination of adjusted gross receipts.
4 (a-5) Beginning on the first day that an owners licensee
5under paragraph (1), (2), (3), (4), (5), or (6) of subsection
6(e-5) of Section 7 conducts gambling operations, either in a
7temporary facility or a permanent facility, a privilege tax is
8imposed on persons engaged in the business of conducting
9gambling operations, other than licensed managers conducting
10riverboat gambling operations on behalf of the State, based on
11the adjusted gross receipts received by such licensee from the
12gambling games authorized under this Act. The privilege tax for
13all gambling games other than table games, including, but not
14limited to, slot machines, video game of chance gambling, and
15electronic gambling games shall be at the following rates:
16 15% of annual adjusted gross receipts up to and
17 including $25,000,000;
18 22.5% of annual adjusted gross receipts in excess of
19 $25,000,000 but not exceeding $50,000,000;
20 27.5% of annual adjusted gross receipts in excess of
21 $50,000,000 but not exceeding $75,000,000;
22 32.5% of annual adjusted gross receipts in excess of
23 $75,000,000 but not exceeding $100,000,000;
24 37.5% of annual adjusted gross receipts in excess of
25 $100,000,000 but not exceeding $150,000,000;
26 45% of annual adjusted gross receipts in excess of

10100SB0690ham002- 604 -LRB101 04451 SMS 61506 a
1 $150,000,000 but not exceeding $200,000,000;
2 50% of annual adjusted gross receipts in excess of
3 $200,000,000.
4 The privilege tax for table games shall be at the following
5rates:
6 15% of annual adjusted gross receipts up to and
7 including $25,000,000;
8 20% of annual adjusted gross receipts in excess of
9 $25,000,000.
10 For the imposition of the privilege tax in this subsection
11(a-5), amounts paid pursuant to item (1) of subsection (b) of
12Section 56 of the Illinois Horse Racing Act of 1975 shall not
13be included in the determination of adjusted gross receipts.
14 Notwithstanding the provisions of this subsection (a-5),
15for the first 10 years that the privilege tax is imposed under
16this subsection (a-5), the privilege tax shall be imposed on
17the modified annual adjusted gross receipts of a riverboat or
18casino conducting gambling operations in the City of East St.
19Louis, unless:
20 (1) the riverboat or casino fails to employ at least
21 450 people;
22 (2) the riverboat or casino fails to maintain
23 operations in a manner consistent with this Act or is not a
24 viable riverboat or casino subject to the approval of the
25 Board; or
26 (3) the owners licensee is not an entity in which

10100SB0690ham002- 605 -LRB101 04451 SMS 61506 a
1 employees participate in an employee stock ownership plan.
2 As used in this subsection (a-5), "modified annual adjusted
3gross receipts" means:
4 (A) for calendar year 2020, the annual adjusted gross
5 receipts for the current year minus the difference between
6 an amount equal to the average annual adjusted gross
7 receipts from a riverboat or casino conducting gambling
8 operations in the City of East St. Louis for 2014, 2015,
9 2016, 2017, and 2018 and the annual adjusted gross receipts
10 for 2018;
11 (B) for calendar year 2021, the annual adjusted gross
12 receipts for the current year minus the difference between
13 an amount equal to the average annual adjusted gross
14 receipts from a riverboat or casino conducting gambling
15 operations in the City of East St. Louis for 2014, 2015,
16 2016, 2017, and 2018 and the annual adjusted gross receipts
17 for 2019; and
18 (C) for calendar years 2022 through 2029, the annual
19 adjusted gross receipts for the current year minus the
20 difference between an amount equal to the average annual
21 adjusted gross receipts from a riverboat or casino
22 conducting gambling operations in the City of East St.
23 Louis for 3 years preceding the current year and the annual
24 adjusted gross receipts for the immediately preceding
25 year.
26 (a-5.5) In addition to the privilege tax imposed under

10100SB0690ham002- 606 -LRB101 04451 SMS 61506 a
1subsection (a-5), a privilege tax is imposed on the owners
2licensee under paragraph (1) of subsection (e-5) of Section 7
3at the rate of one-third of the owners licensee's adjusted
4gross receipts.
5 For the imposition of the privilege tax in this subsection
6(a-5.5), amounts paid pursuant to item (1) of subsection (b) of
7Section 56 of the Illinois Horse Racing Act of 1975 shall not
8be included in the determination of adjusted gross receipts.
9 (a-6) From the effective date of this amendatory Act of the
10101st General Assembly until June 30, 2023, an owners licensee
11that conducted gambling operations prior to January 1, 2011
12shall receive a dollar-for-dollar credit against the tax
13imposed under this Section for any renovation or construction
14costs paid by the owners licensee, but in no event shall the
15credit exceed $2,000,000.
16 Additionally, from the effective date of this amendatory
17Act of the 101st General Assembly until December 31, 2022, an
18owners licensee that (i) is located within 15 miles of the
19Missouri border, and (ii) has at least 3 riverboats, casinos,
20or their equivalent within a 45-mile radius, may be authorized
21to relocate to a new location with the approval of both the
22unit of local government designated as the home dock and the
23Board, so long as the new location is within the same unit of
24local government and no more than 3 miles away from its
25original location. Such owners licensee shall receive a credit
26against the tax imposed under this Section equal to 8% of the

10100SB0690ham002- 607 -LRB101 04451 SMS 61506 a
1total project costs, as approved by the Board, for any
2renovation or construction costs paid by the owners licensee
3for the construction of the new facility, provided that the new
4facility is operational by July 1, 2022. In determining whether
5or not to approve a relocation, the Board must consider the
6extent to which the relocation will diminish the gaming
7revenues received by other Illinois gaming facilities.
8 (a-7) Beginning in the initial adjustment year and through
9the final adjustment year, if the total obligation imposed
10pursuant to either subsection (a-5) or (a-6) will result in an
11owners licensee receiving less after-tax adjusted gross
12receipts than it received in calendar year 2018, then the total
13amount of privilege taxes that the owners licensee is required
14to pay for that calendar year shall be reduced to the extent
15necessary so that the after-tax adjusted gross receipts in that
16calendar year equals the after-tax adjusted gross receipts in
17calendar year 2018, but the privilege tax reduction shall not
18exceed the annual adjustment cap. If pursuant to this
19subsection (a-7), the total obligation imposed pursuant to
20either subsection (a-5) or (a-6) shall be reduced, then the
21owners licensee shall not receive a refund from the State at
22the end of the subject calendar year but instead shall be able
23to apply that amount as a credit against any payments it owes
24to the State in the following calendar year to satisfy its
25total obligation under either subsection (a-5) or (a-6). The
26credit for the final adjustment year shall occur in the

10100SB0690ham002- 608 -LRB101 04451 SMS 61506 a
1calendar year following the final adjustment year.
2 If an owners licensee that conducted gambling operations
3prior to January 1, 2019 expands its riverboat or casino,
4including, but not limited to, with respect to its gaming
5floor, additional non-gaming amenities such as restaurants,
6bars, and hotels and other additional facilities, and incurs
7construction and other costs related to such expansion from the
8effective date of this amendatory Act of the 101st General
9Assembly until the 5th anniversary of the effective date of
10this amendatory Act of the 101st General Assembly, then for
11each $15,000,000 spent for any such construction or other costs
12related to expansion paid by the owners licensee, the final
13adjustment year shall be extended by one year and the annual
14adjustment cap shall increase by 0.2% of adjusted gross
15receipts during each calendar year until and including the
16final adjustment year. No further modifications to the final
17adjustment year or annual adjustment cap shall be made after
18$75,000,000 is incurred in construction or other costs related
19to expansion so that the final adjustment year shall not extend
20beyond the 9th calendar year after the initial adjustment year,
21not including the initial adjustment year, and the annual
22adjustment cap shall not exceed 4% of adjusted gross receipts
23in a particular calendar year. Construction and other costs
24related to expansion shall include all project related costs,
25including, but not limited to, all hard and soft costs,
26financing costs, on or off-site ground, road or utility work,

10100SB0690ham002- 609 -LRB101 04451 SMS 61506 a
1cost of gaming equipment and all other personal property,
2initial fees assessed for each incremental gaming position, and
3the cost of incremental land acquired for such expansion. Soft
4costs shall include, but not be limited to, legal fees,
5architect, engineering and design costs, other consultant
6costs, insurance cost, permitting costs, and pre-opening costs
7related to the expansion, including, but not limited to, any of
8the following: marketing, real estate taxes, personnel,
9training, travel and out-of-pocket expenses, supply,
10inventory, and other costs, and any other project related soft
11costs.
12 To be eligible for the tax credits in subsection (a-6), all
13construction contracts shall include a requirement that the
14contractor enter into a project labor agreement with the
15building and construction trades council with geographic
16jurisdiction of the location of the proposed gaming facility.
17 Notwithstanding any other provision of this subsection
18(a-7), this subsection (a-7) does not apply to an owners
19licensee unless such owners licensee spends at least
20$15,000,000 on construction and other costs related to its
21expansion, excluding the initial fees assessed for each
22incremental gaming position.
23 This subsection (a-7) does not apply to owners licensees
24authorized pursuant to subsection (e-5) of Section 7 of this
25Act.
26 For purposes of this subsection (a-7):

10100SB0690ham002- 610 -LRB101 04451 SMS 61506 a
1 "Building and construction trades council" means any
2organization representing multiple construction entities that
3are monitoring or attentive to compliance with public or
4workers' safety laws, wage and hour requirements, or other
5statutory requirements or that are making or maintaining
6collective bargaining agreements.
7 "Initial adjustment year" means the year commencing on
8January 1 of the calendar year immediately following the
9earlier of the following:
10 (1) the commencement of gambling operations, either in
11 a temporary or permanent facility, with respect to the
12 owners license authorized under paragraph (1) of
13 subsection (e-5) of Section 7 of this Act; or
14 (2) 24 months after the effective date of this
15 amendatory Act of the 101st General Assembly, provided the
16 initial adjustment year shall not commence earlier than 12
17 months after the effective date of this amendatory Act of
18 the 101st General Assembly.
19 "Final adjustment year" means the 2nd calendar year after
20the initial adjustment year, not including the initial
21adjustment year, and as may be extended further as described in
22this subsection (a-7).
23 "Annual adjustment cap" means 3% of adjusted gross receipts
24in a particular calendar year, and as may be increased further
25as otherwise described in this subsection (a-7).
26 (a-8) Riverboat gambling operations conducted by a

10100SB0690ham002- 611 -LRB101 04451 SMS 61506 a
1licensed manager on behalf of the State are not subject to the
2tax imposed under this Section.
3 (a-9) Beginning on January 1, 2020, the calculation of
4gross receipts or adjusted gross receipts, for the purposes of
5this Section, for a riverboat, a casino, or an organization
6gaming facility shall not include the dollar amount of
7non-cashable vouchers, coupons, and electronic promotions
8redeemed by wagerers upon the riverboat, in the casino, or in
9the organization gaming facility up to and including an amount
10not to exceed 20% of a riverboat's, a casino's, or an
11organization gaming facility's adjusted gross receipts.
12 The Illinois Gaming Board shall submit to the General
13Assembly a comprehensive report no later than March 31, 2023
14detailing, at a minimum, the effect of removing non-cashable
15vouchers, coupons, and electronic promotions from this
16calculation on net gaming revenues to the State in calendar
17years 2020 through 2022, the increase or reduction in wagerers
18as a result of removing non-cashable vouchers, coupons, and
19electronic promotions from this calculation, the effect of the
20tax rates in subsection (a-5) on net gaming revenues to this
21State, and proposed modifications to the calculation.
22 (a-10) The taxes imposed by this Section shall be paid by
23the licensed owner or the organization gaming licensee to the
24Board not later than 5:00 o'clock p.m. of the day after the day
25when the wagers were made.
26 (a-15) If the privilege tax imposed under subsection (a-3)

10100SB0690ham002- 612 -LRB101 04451 SMS 61506 a
1is no longer imposed pursuant to item (i) of the last paragraph
2of subsection (a-3), then by June 15 of each year, each owners
3licensee, other than an owners licensee that admitted 1,000,000
4persons or fewer in calendar year 2004, must, in addition to
5the payment of all amounts otherwise due under this Section,
6pay to the Board a reconciliation payment in the amount, if
7any, by which the licensed owner's base amount exceeds the
8amount of net privilege tax paid by the licensed owner to the
9Board in the then current State fiscal year. A licensed owner's
10net privilege tax obligation due for the balance of the State
11fiscal year shall be reduced up to the total of the amount paid
12by the licensed owner in its June 15 reconciliation payment.
13The obligation imposed by this subsection (a-15) is binding on
14any person, firm, corporation, or other entity that acquires an
15ownership interest in any such owners license. The obligation
16imposed under this subsection (a-15) terminates on the earliest
17of: (i) July 1, 2007, (ii) the first day after the effective
18date of this amendatory Act of the 94th General Assembly that
19riverboat gambling operations are conducted pursuant to a
20dormant license, (iii) the first day that riverboat gambling
21operations are conducted under the authority of an owners
22license that is in addition to the 10 owners licenses initially
23authorized under this Act, or (iv) the first day that a
24licensee under the Illinois Horse Racing Act of 1975 conducts
25gaming operations with slot machines or other electronic gaming
26devices. The Board must reduce the obligation imposed under

10100SB0690ham002- 613 -LRB101 04451 SMS 61506 a
1this subsection (a-15) by an amount the Board deems reasonable
2for any of the following reasons: (A) an act or acts of God,
3(B) an act of bioterrorism or terrorism or a bioterrorism or
4terrorism threat that was investigated by a law enforcement
5agency, or (C) a condition beyond the control of the owners
6licensee that does not result from any act or omission by the
7owners licensee or any of its agents and that poses a hazardous
8threat to the health and safety of patrons. If an owners
9licensee pays an amount in excess of its liability under this
10Section, the Board shall apply the overpayment to future
11payments required under this Section.
12 For purposes of this subsection (a-15):
13 "Act of God" means an incident caused by the operation of
14an extraordinary force that cannot be foreseen, that cannot be
15avoided by the exercise of due care, and for which no person
16can be held liable.
17 "Base amount" means the following:
18 For a riverboat in Alton, $31,000,000.
19 For a riverboat in East Peoria, $43,000,000.
20 For the Empress riverboat in Joliet, $86,000,000.
21 For a riverboat in Metropolis, $45,000,000.
22 For the Harrah's riverboat in Joliet, $114,000,000.
23 For a riverboat in Aurora, $86,000,000.
24 For a riverboat in East St. Louis, $48,500,000.
25 For a riverboat in Elgin, $198,000,000.
26 "Dormant license" has the meaning ascribed to it in

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1subsection (a-3).
2 "Net privilege tax" means all privilege taxes paid by a
3licensed owner to the Board under this Section, less all
4payments made from the State Gaming Fund pursuant to subsection
5(b) of this Section.
6 The changes made to this subsection (a-15) by Public Act
794-839 are intended to restate and clarify the intent of Public
8Act 94-673 with respect to the amount of the payments required
9to be made under this subsection by an owners licensee to the
10Board.
11 (b) From Until January 1, 1998, 25% of the tax revenue
12deposited in the State Gaming Fund under this Section shall be
13paid, subject to appropriation by the General Assembly, to the
14unit of local government which is designated as the home dock
15of the riverboat. Beginning January 1, 1998, from the tax
16revenue from riverboat or casino gambling deposited in the
17State Gaming Fund under this Section, an amount equal to 5% of
18adjusted gross receipts generated by a riverboat or a casino,
19other than a riverboat or casino designated in paragraph (1),
20(3), or (4) of subsection (e-5) of Section 7, shall be paid
21monthly, subject to appropriation by the General Assembly, to
22the unit of local government in which the casino is located or
23that is designated as the home dock of the riverboat.
24Notwithstanding anything to the contrary, beginning on the
25first day that an owners licensee under paragraph (1), (2),
26(3), (4), (5), or (6) of subsection (e-5) of Section 7 conducts

10100SB0690ham002- 615 -LRB101 04451 SMS 61506 a
1gambling operations, either in a temporary facility or a
2permanent facility, and for 2 years thereafter, a unit of local
3government designated as the home dock of a riverboat whose
4license was issued before January 1, 2019, other than a
5riverboat conducting gambling operations in the City of East
6St. Louis, shall not receive less under this subsection (b)
7than the amount the unit of local government received under
8this subsection (b) in calendar year 2018. Notwithstanding
9anything to the contrary and because the City of East St. Louis
10is a financially distressed city, beginning on the first day
11that an owners licensee under paragraph (1), (2), (3), (4),
12(5), or (6) of subsection (e-5) of Section 7 conducts gambling
13operations, either in a temporary facility or a permanent
14facility, and for 10 years thereafter, a unit of local
15government designated as the home dock of a riverboat
16conducting gambling operations in the City of East St. Louis
17shall not receive less under this subsection (b) than the
18amount the unit of local government received under this
19subsection (b) in calendar year 2018.
20 From the tax revenue deposited in the State Gaming Fund
21pursuant to riverboat or casino gambling operations conducted
22by a licensed manager on behalf of the State, an amount equal
23to 5% of adjusted gross receipts generated pursuant to those
24riverboat or casino gambling operations shall be paid monthly,
25subject to appropriation by the General Assembly, to the unit
26of local government that is designated as the home dock of the

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1riverboat upon which those riverboat gambling operations are
2conducted or in which the casino is located.
3 From the tax revenue from riverboat or casino gambling
4deposited in the State Gaming Fund under this Section, an
5amount equal to 5% of the adjusted gross receipts generated by
6a riverboat designated in paragraph (3) of subsection (e-5) of
7Section 7 shall be divided and remitted monthly, subject to
8appropriation, as follows: 70% to Waukegan, 10% to Park City,
915% to North Chicago, and 5% to Lake County.
10 From the tax revenue from riverboat or casino gambling
11deposited in the State Gaming Fund under this Section, an
12amount equal to 5% of the adjusted gross receipts generated by
13a riverboat designated in paragraph (4) of subsection (e-5) of
14Section 7 shall be remitted monthly, subject to appropriation,
15as follows: 70% to the City of Rockford, 5% to the City of
16Loves Park, 5% to the Village of Machesney, and 20% to
17Winnebago County.
18 From the tax revenue from riverboat or casino gambling
19deposited in the State Gaming Fund under this Section, an
20amount equal to 5% of the adjusted gross receipts generated by
21a riverboat designated in paragraph (5) of subsection (e-5) of
22Section 7 shall be remitted monthly, subject to appropriation,
23as follows: 2% to the unit of local government in which the
24riverboat or casino is located, and 3% shall be distributed:
25(A) in accordance with a regional capital development plan
26entered into by the following communities: Village of Beecher,

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1City of Blue Island, Village of Burnham, City of Calumet City,
2Village of Calumet Park, City of Chicago Heights, City of
3Country Club Hills, Village of Dixmoor, Village of Dolton,
4Village of East Hazel Crest, Village of Flossmoor, Village of
5Ford Heights, Village of Glenwood, City of Harvey, Village of
6Hazel Crest, Village of Homewood, Village of Lansing, Village
7of Lynwood, City of Markham, Village of Matteson, Village of
8Midlothian, City of Oak Forest, Village of Olympia Fields,
9Village of Orland Hills, Village of Orland Park, City of Palos
10Heights, Village of Park Forest, Village of Phoenix, Village of
11Posen, Village of Richton Park, Village of Riverdale, Village
12of Robbins, Village of Sauk Village, Village of South Chicago
13Heights, Village of South Holland, Village of Steger, Village
14of Thornton, Village of Tinley Park, and Village of University
15Park; or (B) if no regional capital development plan exists,
16equally among the communities listed in item (A) to be used for
17capital expenditures or public pension payments, or both.
18 Units of local government may refund any portion of the
19payment that they receive pursuant to this subsection (b) to
20the riverboat or casino.
21 (b-4) Beginning on the first day the licensee under
22paragraph (5) of subsection (e-5) of Section 7 conducts
23gambling operations, either in a temporary facility or a
24permanent facility, and ending on July 31, 2042, from the tax
25revenue deposited in the State Gaming Fund under this Section,
26$5,000,000 shall be paid annually, subject to appropriation, to

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1the host municipality of that owners licensee of a license
2issued or re-issued pursuant to Section 7.1 of this Act before
3January 1, 2012. Payments received by the host municipality
4pursuant to this subsection (b-4) may not be shared with any
5other unit of local government.
6 (b-5) Beginning on the effective date of this amendatory
7Act of the 101st General Assembly, from the tax revenue
8deposited in the State Gaming Fund under this Section, an
9amount equal to 3% of adjusted gross receipts generated by each
10organization gaming facility located outside Madison County
11shall be paid monthly, subject to appropriation by the General
12Assembly, to a municipality other than the Village of Stickney
13in which each organization gaming facility is located or, if
14the organization gaming facility is not located within a
15municipality, to the county in which the organization gaming
16facility is located, except as otherwise provided in this
17Section. From the tax revenue deposited in the State Gaming
18Fund under this Section, an amount equal to 3% of adjusted
19gross receipts generated by an organization gaming facility
20located in the Village of Stickney shall be paid monthly,
21subject to appropriation by the General Assembly, as follows:
2225% to the Village of Stickney, 5% to the City of Berwyn, 50%
23to the Town of Cicero, and 20% to the Stickney Public Health
24District.
25 From the tax revenue deposited in the State Gaming Fund
26under this Section, an amount equal to 5% of adjusted gross

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1receipts generated by an organization gaming facility located
2in the City of Collinsville shall be paid monthly, subject to
3appropriation by the General Assembly, as follows: 30% to the
4City of Alton, 30% to the City of East St. Louis, and 40% to the
5City of Collinsville.
6 Municipalities and counties may refund any portion of the
7payment that they receive pursuant to this subsection (b-5) to
8the organization gaming facility.
9 (b-6) Beginning on the effective date of this amendatory
10Act of the 101st General Assembly, from the tax revenue
11deposited in the State Gaming Fund under this Section, an
12amount equal to 2% of adjusted gross receipts generated by an
13organization gaming facility located outside Madison County
14shall be paid monthly, subject to appropriation by the General
15Assembly, to the county in which the organization gaming
16facility is located for the purposes of its criminal justice
17system or health care system.
18 Counties may refund any portion of the payment that they
19receive pursuant to this subsection (b-6) to the organization
20gaming facility.
21 (b-7) From the tax revenue from the organization gaming
22licensee located in one of the following townships of Cook
23County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or
24Worth, an amount equal to 5% of the adjusted gross receipts
25generated by that organization gaming licensee shall be
26remitted monthly, subject to appropriation, as follows: 2% to

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1the unit of local government in which the organization gaming
2licensee is located, and 3% shall be distributed: (A) in
3accordance with a regional capital development plan entered
4into by the following communities: Village of Beecher, City of
5Blue Island, Village of Burnham, City of Calumet City, Village
6of Calumet Park, City of Chicago Heights, City of Country Club
7Hills, Village of Dixmoor, Village of Dolton, Village of East
8Hazel Crest, Village of Flossmoor, Village of Ford Heights,
9Village of Glenwood, City of Harvey, Village of Hazel Crest,
10Village of Homewood, Village of Lansing, Village of Lynwood,
11City of Markham, Village of Matteson, Village of Midlothian,
12City of Oak Forest, Village of Olympia Fields, Village of
13Orland Hills, Village of Orland Park, City of Palos Heights,
14Village of Park Forest, Village of Phoenix, Village of Posen,
15Village of Richton Park, Village of Riverdale, Village of
16Robbins, Village of Sauk Village, Village of South Chicago
17Heights, Village of South Holland, Village of Steger, Village
18of Thornton, Village of Tinley Park, and Village of University
19Park; or (B) if no regional capital development plan exists,
20equally among the communities listed in item (A) to be used for
21capital expenditures or public pension payments, or both.
22 (b-8) In lieu of the payments under subsection (b) of this
23Section, the tax revenue from the privilege tax imposed by
24subsection (a-5.5) shall be paid monthly, subject to
25appropriation by the General Assembly, to the City of Chicago
26and shall be expended or obligated by the City of Chicago for

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1pension payments in accordance with Public Act 99-506.
2 (c) Appropriations, as approved by the General Assembly,
3may be made from the State Gaming Fund to the Board (i) for the
4administration and enforcement of this Act and the Video Gaming
5Act, (ii) for distribution to the Department of State Police
6and to the Department of Revenue for the enforcement of this
7Act, and the Video Gaming Act, and (iii) to the Department of
8Human Services for the administration of programs to treat
9problem gambling. The Board's annual appropriations request
10must separately state its funding needs for the regulation of
11gaming authorized under Section 7.7, riverboat gaming, casino
12gaming, video gaming, and sports wagering.
13 (c-2) An amount equal to 2% of the adjusted gross receipts
14generated by an organization gaming facility located within a
15home rule county with a population of over 3,000,000
16inhabitants shall be paid, subject to appropriation from the
17General Assembly, from the State Gaming Fund to the home rule
18county in which the organization gaming licensee is located for
19the purpose of enhancing the county's criminal justice system.
20 (c-3) Appropriations, as approved by the General Assembly,
21may be made from the tax revenue deposited into the State
22Gaming Fund from organization gaming licensees pursuant to this
23Section for the administration and enforcement of this Act.
24 (c-4) After payments required under subsections (b),
25(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from
26the tax revenue from organization gaming licensees deposited

10100SB0690ham002- 622 -LRB101 04451 SMS 61506 a
1into the State Gaming Fund under this Section, all remaining
2amounts from organization gaming licensees shall be
3transferred into the Capital Projects Fund.
4 (c-5) (Blank). Before May 26, 2006 (the effective date of
5Public Act 94-804) and beginning on the effective date of this
6amendatory Act of the 95th General Assembly, unless any
7organization licensee under the Illinois Horse Racing Act of
81975 begins to operate a slot machine or video game of chance
9under the Illinois Horse Racing Act of 1975 or this Act, after
10the payments required under subsections (b) and (c) have been
11made, an amount equal to 15% of the adjusted gross receipts of
12(1) an owners licensee that relocates pursuant to Section 11.2,
13(2) an owners licensee conducting riverboat gambling
14operations pursuant to an owners license that is initially
15issued after June 25, 1999, or (3) the first riverboat gambling
16operations conducted by a licensed manager on behalf of the
17State under Section 7.3, whichever comes first, shall be paid
18from the State Gaming Fund into the Horse Racing Equity Fund.
19 (c-10) Each year the General Assembly shall appropriate
20from the General Revenue Fund to the Education Assistance Fund
21an amount equal to the amount paid into the Horse Racing Equity
22Fund pursuant to subsection (c-5) in the prior calendar year.
23 (c-15) After the payments required under subsections (b),
24(c), and (c-5) have been made, an amount equal to 2% of the
25adjusted gross receipts of (1) an owners licensee that
26relocates pursuant to Section 11.2, (2) an owners licensee

10100SB0690ham002- 623 -LRB101 04451 SMS 61506 a
1conducting riverboat gambling operations pursuant to an owners
2license that is initially issued after June 25, 1999, or (3)
3the first riverboat gambling operations conducted by a licensed
4manager on behalf of the State under Section 7.3, whichever
5comes first, shall be paid, subject to appropriation from the
6General Assembly, from the State Gaming Fund to each home rule
7county with a population of over 3,000,000 inhabitants for the
8purpose of enhancing the county's criminal justice system.
9 (c-20) Each year the General Assembly shall appropriate
10from the General Revenue Fund to the Education Assistance Fund
11an amount equal to the amount paid to each home rule county
12with a population of over 3,000,000 inhabitants pursuant to
13subsection (c-15) in the prior calendar year.
14 (c-21) After the payments required under subsections (b),
15(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have
16been made, an amount equal to 2% of the adjusted gross receipts
17generated by the owners licensee under paragraph (1) of
18subsection (e-5) of Section 7 shall be paid, subject to
19appropriation from the General Assembly, from the State Gaming
20Fund to the home rule county in which the owners licensee is
21located for the purpose of enhancing the county's criminal
22justice system.
23 (c-22) After the payments required under subsections (b),
24(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and
25(c-21) have been made, an amount equal to 2% of the adjusted
26gross receipts generated by the owners licensee under paragraph

10100SB0690ham002- 624 -LRB101 04451 SMS 61506 a
1(5) of subsection (e-5) of Section 7 shall be paid, subject to
2appropriation from the General Assembly, from the State Gaming
3Fund to the home rule county in which the owners licensee is
4located for the purpose of enhancing the county's criminal
5justice system.
6 (c-25) From On July 1, 2013 and each July 1
7thereafterthrough July 1, 2019, $1,600,000 shall be
8transferred from the State Gaming Fund to the Chicago State
9University Education Improvement Fund.
10 On July 1, 2020 and each July 1 thereafter, $3,000,000
11shall be transferred from the State Gaming Fund to the Chicago
12State University Education Improvement Fund.
13 (c-30) On July 1, 2013 or as soon as possible thereafter,
14$92,000,000 shall be transferred from the State Gaming Fund to
15the School Infrastructure Fund and $23,000,000 shall be
16transferred from the State Gaming Fund to the Horse Racing
17Equity Fund.
18 (c-35) Beginning on July 1, 2013, in addition to any amount
19transferred under subsection (c-30) of this Section,
20$5,530,000 shall be transferred monthly from the State Gaming
21Fund to the School Infrastructure Fund.
22 (d) From time to time, the Board shall transfer the
23remainder of the funds generated by this Act into the Education
24Assistance Fund, created by Public Act 86-0018, of the State of
25Illinois.
26 (e) Nothing in this Act shall prohibit the unit of local

10100SB0690ham002- 625 -LRB101 04451 SMS 61506 a
1government designated as the home dock of the riverboat from
2entering into agreements with other units of local government
3in this State or in other states to share its portion of the
4tax revenue.
5 (f) To the extent practicable, the Board shall administer
6and collect the wagering taxes imposed by this Section in a
7manner consistent with the provisions of Sections 4, 5, 5a, 5b,
85c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
9Retailers' Occupation Tax Act and Section 3-7 of the Uniform
10Penalty and Interest Act.
11(Source: P.A. 98-18, eff. 6-7-13.)
12 (230 ILCS 10/14) (from Ch. 120, par. 2414)
13 Sec. 14. Licensees - Records - Reports - Supervision.
14 (a) Licensed owners and organization gaming licensees A
15licensed owner shall keep his books and records so as to
16clearly show the following:
17 (1) The amount received daily from admission fees.
18 (2) The total amount of gross receipts.
19 (3) The total amount of the adjusted gross receipts.
20 (b) Licensed owners and organization gaming licensees The
21licensed owner shall furnish to the Board reports and
22information as the Board may require with respect to its
23activities on forms designed and supplied for such purpose by
24the Board.
25 (c) The books and records kept by a licensed owner as

10100SB0690ham002- 626 -LRB101 04451 SMS 61506 a
1provided by this Section are public records and the
2examination, publication, and dissemination of the books and
3records are governed by the provisions of The Freedom of
4Information Act.
5(Source: P.A. 86-1029.)
6 (230 ILCS 10/15) (from Ch. 120, par. 2415)
7 Sec. 15. Audit of Licensee Operations. Annually, the
8licensed owner, or manager, or organization gaming licensee
9shall transmit to the Board an audit of the financial
10transactions and condition of the licensee's or manager's total
11operations. Additionally, within 90 days after the end of each
12quarter of each fiscal year, the licensed owner, or manager, or
13organization gaming licensee shall transmit to the Board a
14compliance report on engagement procedures determined by the
15Board. All audits and compliance engagements shall be conducted
16by certified public accountants selected by the Board. Each
17certified public accountant must be registered in the State of
18Illinois under the Illinois Public Accounting Act. The
19compensation for each certified public accountant shall be paid
20directly by the licensed owner, or manager, or organization
21gaming licensee to the certified public accountant.
22(Source: P.A. 96-1392, eff. 1-1-11.)
23 (230 ILCS 10/17) (from Ch. 120, par. 2417)
24 Sec. 17. Administrative Procedures. The Illinois

10100SB0690ham002- 627 -LRB101 04451 SMS 61506 a
1Administrative Procedure Act shall apply to all administrative
2rules and procedures of the Board under this Act and or the
3Video Gaming Act, except that: (1) subsection (b) of Section
45-10 of the Illinois Administrative Procedure Act does not
5apply to final orders, decisions and opinions of the Board; (2)
6subsection (a) of Section 5-10 of the Illinois Administrative
7Procedure Act does not apply to forms established by the Board
8for use under this Act and or the Video Gaming Act; (3) the
9provisions of Section 10-45 of the Illinois Administrative
10Procedure Act regarding proposals for decision are excluded
11under this Act and or the Video Gaming Act; and (4) the
12provisions of subsection (d) of Section 10-65 of the Illinois
13Administrative Procedure Act do not apply so as to prevent
14summary suspension of any license pending revocation or other
15action, which suspension shall remain in effect unless modified
16by the Board or unless the Board's decision is reversed on the
17merits upon judicial review.
18(Source: P.A. 96-34, eff. 7-13-09.)
19 (230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)
20 Sec. 17.1. Judicial Review.
21 (a) Jurisdiction and venue for the judicial review of a
22final order of the Board relating to licensed owners,
23suppliers, organization gaming licensees, and or special event
24licenses is vested in the Appellate Court of the judicial
25district in which Sangamon County is located. A petition for

10100SB0690ham002- 628 -LRB101 04451 SMS 61506 a
1judicial review of a final order of the Board must be filed in
2the Appellate Court, within 35 days from the date that a copy
3of the decision sought to be reviewed was served upon the party
4affected by the decision.
5 (b) Judicial review of all other final orders of the Board
6shall be conducted in accordance with the Administrative Review
7Law.
8(Source: P.A. 88-1.)
9 (230 ILCS 10/18) (from Ch. 120, par. 2418)
10 Sec. 18. Prohibited Activities - Penalty.
11 (a) A person is guilty of a Class A misdemeanor for doing
12any of the following:
13 (1) Conducting gambling where wagering is used or to be
14 used without a license issued by the Board.
15 (2) Conducting gambling where wagering is permitted
16 other than in the manner specified by Section 11.
17 (b) A person is guilty of a Class B misdemeanor for doing
18any of the following:
19 (1) permitting a person under 21 years to make a wager;
20 or
21 (2) violating paragraph (12) of subsection (a) of
22 Section 11 of this Act.
23 (c) A person wagering or accepting a wager at any location
24outside the riverboat, casino, or organization gaming facility
25in violation of paragraph is subject to the penalties in

10100SB0690ham002- 629 -LRB101 04451 SMS 61506 a
1paragraphs (1) or (2) of subsection (a) of Section 28-1 of the
2Criminal Code of 2012 is subject to the penalties provided in
3that Section.
4 (d) A person commits a Class 4 felony and, in addition,
5shall be barred for life from gambling operations riverboats
6under the jurisdiction of the Board, if the person does any of
7the following:
8 (1) Offers, promises, or gives anything of value or
9 benefit to a person who is connected with a riverboat or
10 casino owner or organization gaming licensee, including,
11 but not limited to, an officer or employee of a licensed
12 owner, organization gaming licensee, or holder of an
13 occupational license pursuant to an agreement or
14 arrangement or with the intent that the promise or thing of
15 value or benefit will influence the actions of the person
16 to whom the offer, promise, or gift was made in order to
17 affect or attempt to affect the outcome of a gambling game,
18 or to influence official action of a member of the Board.
19 (2) Solicits or knowingly accepts or receives a promise
20 of anything of value or benefit while the person is
21 connected with a riverboat, casino, or organization gaming
22 facility, including, but not limited to, an officer or
23 employee of a licensed owner or organization gaming
24 licensee, or the holder of an occupational license,
25 pursuant to an understanding or arrangement or with the
26 intent that the promise or thing of value or benefit will

10100SB0690ham002- 630 -LRB101 04451 SMS 61506 a
1 influence the actions of the person to affect or attempt to
2 affect the outcome of a gambling game, or to influence
3 official action of a member of the Board.
4 (3) Uses or possesses with the intent to use a device
5 to assist:
6 (i) In projecting the outcome of the game.
7 (ii) In keeping track of the cards played.
8 (iii) In analyzing the probability of the
9 occurrence of an event relating to the gambling game.
10 (iv) In analyzing the strategy for playing or
11 betting to be used in the game except as permitted by
12 the Board.
13 (4) Cheats at a gambling game.
14 (5) Manufactures, sells, or distributes any cards,
15 chips, dice, game or device which is intended to be used to
16 violate any provision of this Act.
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

10100SB0690ham002- 631 -LRB101 04451 SMS 61506 a
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 organization 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

10100SB0690ham002- 632 -LRB101 04451 SMS 61506 a
1is based. An action to prosecute any crime occurring in a
2casino or organization gaming facility shall be tried in the
3county in which the casino or organization 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 owners owner licensee or an organization gaming
9licensee for knowingly sending marketing or promotional
10materials to any person placed on the self-exclusion list, then
11the Board shall distribute an amount equal to 15% of the fine
12imposed to the unit of local government in which the casino,
13riverboat, or organization gaming facility is located for the
14purpose of awarding grants to non-profit entities that assist
15gambling addicts.
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 organization 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 organization gaming facility operating

10100SB0690ham002- 633 -LRB101 04451 SMS 61506 a
1gambling games in violation of this Act and every slot machine
2and video game of chance found at an organization gaming
3facility operating gambling games in violation of this Act
4shall be subject to seizure, confiscation and destruction as
5provided in Section 28-5 of the Criminal Code of 2012.
6 (b) It is not a violation of this Act for a riverboat or
7other watercraft which is licensed for gaming by a contiguous
8state to dock on the shores of this State if the municipality
9having jurisdiction of the shores, or the county in the case of
10unincorporated areas, has granted permission for docking and no
11gaming is conducted on the riverboat or other watercraft while
12it is docked on the shores of this State. No gambling device
13shall be subject to seizure, confiscation or destruction if the
14gambling device is located on a riverboat or other watercraft
15which is licensed for gaming by a contiguous state and which is
16docked on the shores of this State if the municipality having
17jurisdiction of the shores, or the county in the case of
18unincorporated areas, has granted permission for docking and no
19gaming is conducted on the riverboat or other watercraft while
20it is docked on the shores of this State.
21(Source: P.A. 97-1150, eff. 1-25-13.)
22 (230 ILCS 10/20) (from Ch. 120, par. 2420)
23 Sec. 20. Prohibited activities - civil penalties. Any
24person who conducts a gambling operation without first
25obtaining a license to do so, or who continues to conduct such

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1games after revocation of his license, or any licensee who
2conducts or allows to be conducted any unauthorized gambling
3games on a riverboat, in a casino, or at an organization gaming
4facility where it is authorized to conduct its riverboat
5gambling operation, in addition to other penalties provided,
6shall be subject to a civil penalty equal to the amount of
7gross receipts derived from wagering on the gambling games,
8whether unauthorized or authorized, conducted on that day as
9well as confiscation and forfeiture of all gambling game
10equipment used in the conduct of unauthorized gambling games.
11(Source: P.A. 86-1029.)
12 (230 ILCS 10/24)
13 Sec. 24. Applicability of this Illinois Riverboat Gambling
14Act. The provisions of this the Illinois Riverboat Gambling
15Act, and all rules promulgated thereunder, shall apply to the
16Video Gaming Act, except where there is a conflict between the
172 Acts. In the event of a conflict between this Act and the
18Video Gaming Act, the terms of this Act shall prevail.
19(Source: P.A. 96-37, eff. 7-13-09.)
20 Section 35-60. The Video Gaming Act is amended by changing
21Sections 5, 15, 20, 25, 45, 60, 79, and 80 as follows:
22 (230 ILCS 40/5)
23 Sec. 5. Definitions. As used in this Act:

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1 "Board" means the Illinois Gaming Board.
2 "Credit" means one, 5, 10, or 25 cents either won or
3purchased by a player.
4 "Distributor" means an individual, partnership,
5corporation, or limited liability company licensed under this
6Act to buy, sell, lease, or distribute video gaming terminals
7or major components or parts of video gaming terminals to or
8from terminal operators.
9 "Electronic card" means a card purchased from a licensed
10establishment, licensed fraternal establishment, licensed
11veterans establishment, or licensed truck stop establishment
12for use in that establishment as a substitute for cash in the
13conduct of gaming on a video gaming terminal.
14 "Electronic voucher" means a voucher printed by an
15electronic video game machine that is redeemable in the
16licensed establishment for which it was issued.
17 "In-location bonus jackpot" means one or more video gaming
18terminals at a single licensed establishment that allows for
19wagers placed on such video gaming terminals to contribute to a
20cumulative maximum jackpot of up to $10,000.
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,
25licensed truck stop establishments, licensed fraternal
26establishments, or licensed veterans establishments.

10100SB0690ham002- 636 -LRB101 04451 SMS 61506 a
1 "Licensed technician" means an individual who is licensed
2under this Act to repair, service, and maintain video gaming
3terminals.
4 "Licensed terminal handler" means a person, including but
5not limited to an employee or independent contractor working
6for a manufacturer, distributor, supplier, technician, or
7terminal operator, who is licensed under this Act to possess or
8control a video gaming terminal or to have access to the inner
9workings of a video gaming terminal. A licensed terminal
10handler does not include an individual, partnership,
11corporation, or limited liability company defined as a
12manufacturer, distributor, supplier, technician, or terminal
13operator under this Act.
14 "Manufacturer" means an individual, partnership,
15corporation, or limited liability company that is licensed
16under this Act and that manufactures or assembles video gaming
17terminals.
18 "Supplier" means an individual, partnership, corporation,
19or limited liability company that is licensed under this Act to
20supply major components or parts to video gaming terminals to
21licensed terminal operators.
22 "Net terminal income" means money put into a video gaming
23terminal minus credits paid out to players.
24 "Video gaming terminal" means any electronic video game
25machine that, upon insertion of cash, electronic cards or
26vouchers, or any combination thereof, is available to play or

10100SB0690ham002- 637 -LRB101 04451 SMS 61506 a
1simulate the play of a video game, including but not limited to
2video poker, line up, and blackjack, as authorized by the Board
3utilizing a video display and microprocessors in which the
4player may receive free games or credits that can be redeemed
5for cash. The term does not include a machine that directly
6dispenses coins, cash, or tokens or is for amusement purposes
7only.
8 "Licensed establishment" means any licensed retail
9establishment where alcoholic liquor is drawn, poured, mixed,
10or otherwise served for consumption on the premises, whether
11the establishment operates on a nonprofit or for-profit basis.
12"Licensed establishment" includes any such establishment that
13has a contractual relationship with an inter-track wagering
14location licensee licensed under the Illinois Horse Racing Act
15of 1975, provided any contractual relationship shall not
16include any transfer or offer of revenue from the operation of
17video gaming under this Act to any licensee licensed under the
18Illinois Horse Racing Act of 1975. Provided, however, that the
19licensed establishment that has such a contractual
20relationship with an inter-track wagering location licensee
21may not, itself, be (i) an inter-track wagering location
22licensee, (ii) the corporate parent or subsidiary of any
23licensee licensed under the Illinois Horse Racing Act of 1975,
24or (iii) the corporate subsidiary of a corporation that is also
25the corporate parent or subsidiary of any licensee licensed
26under the Illinois Horse Racing Act of 1975. "Licensed

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1establishment" does not include a facility operated by an
2organization licensee, an inter-track wagering licensee, or an
3inter-track wagering location licensee licensed under the
4Illinois Horse Racing Act of 1975 or a riverboat licensed under
5the Illinois Riverboat Gambling Act, except as provided in this
6paragraph. The changes made to this definition by Public Act
798-587 are declarative of existing law.
8 "Licensed fraternal establishment" means the location
9where a qualified fraternal organization that derives its
10charter from a national fraternal organization regularly
11meets.
12 "Licensed veterans establishment" means the location where
13a qualified veterans organization that derives its charter from
14a national veterans organization regularly meets.
15 "Licensed truck stop establishment" means a facility
16located within 3 road miles from a freeway interchange, as
17measured in accordance with the Department of Transportation's
18rules regarding the criteria for the installation of business
19signs: (i) that is at least a 3-acre facility with a
20convenience store, (ii) with separate diesel islands for
21fueling commercial motor vehicles, (iii) that sells at retail
22more than 50,000 10,000 gallons of diesel or biodiesel fuel per
23month, and (iv) with parking spaces for commercial motor
24vehicles. "Commercial motor vehicles" has the same meaning as
25defined in Section 18b-101 of the Illinois Vehicle Code. The
26requirement of item (iii) of this paragraph may be met by

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1showing that estimated future sales or past sales average at
2least 50,000 10,000 gallons per month.
3(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
498-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
57-16-14.)
6 (230 ILCS 40/15)
7 Sec. 15. Minimum requirements for licensing and
8registration. Every video gaming terminal offered for play
9shall first be tested and approved pursuant to the rules of the
10Board, and each video gaming terminal offered in this State for
11play shall conform to an approved model. For the examination of
12video gaming machines and associated equipment as required by
13this Section, the Board shall may utilize the services of one
14or more independent outside testing laboratories that have been
15accredited in accordance with ISO/IEC 17025 by an accreditation
16body that is a signatory to the International Laboratory
17Accreditation Cooperation Mutual Recognition Agreement
18signifying they are qualified to by a national accreditation
19body and that, in the judgment of the Board, are qualified to
20perform such examinations. Notwithstanding any law to the
21contrary, the Board shall consider the licensing of independent
22outside testing laboratory applicants in accordance with
23procedures established by the Board by rule. The Board shall
24not withhold its approval of an independent outside testing
25laboratory license applicant that has been accredited as

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1required by this Section and is licensed in gaming
2jurisdictions comparable to Illinois. Upon the finalization of
3required rules, the Board shall license independent testing
4laboratories and accept the test reports of any licensed
5testing laboratory of the video gaming machine's or associated
6equipment manufacturer's choice, notwithstanding the existence
7of contracts between the Board and any independent testing
8laboratory. Every video gaming terminal offered in this State
9for play must meet minimum standards set by an independent
10outside testing laboratory approved by the Board. Each approved
11model shall, at a minimum, meet the following criteria:
12 (1) It must conform to all requirements of federal law
13 and regulations, including FCC Class A Emissions
14 Standards.
15 (2) It must theoretically pay out a mathematically
16 demonstrable percentage during the expected lifetime of
17 the machine of all amounts played, which must not be less
18 than 80%. The Board shall establish a maximum payout
19 percentage for approved models by rule. Video gaming
20 terminals that may be affected by skill must meet this
21 standard when using a method of play that will provide the
22 greatest return to the player over a period of continuous
23 play.
24 (3) It must use a random selection process to determine
25 the outcome of each play of a game. The random selection
26 process must meet 99% confidence limits using a standard

10100SB0690ham002- 641 -LRB101 04451 SMS 61506 a
1 chi-squared test for (randomness) goodness of fit.
2 (4) It must display an accurate representation of the
3 game outcome.
4 (5) It must not automatically alter pay tables or any
5 function of the video gaming terminal based on internal
6 computation of hold percentage or have any means of
7 manipulation that affects the random selection process or
8 probabilities of winning a game.
9 (6) It must not be adversely affected by static
10 discharge or other electromagnetic interference.
11 (7) It must be capable of detecting and displaying the
12 following conditions during idle states or on demand: power
13 reset; door open; and door just closed.
14 (8) It must have the capacity to display complete play
15 history (outcome, intermediate play steps, credits
16 available, bets placed, credits paid, and credits cashed
17 out) for the most recent game played and 10 games prior
18 thereto.
19 (9) The theoretical payback percentage of a video
20 gaming terminal must not be capable of being changed
21 without making a hardware or software change in the video
22 gaming terminal, either on site or via the central
23 communications system.
24 (10) Video gaming terminals must be designed so that
25 replacement of parts or modules required for normal
26 maintenance does not necessitate replacement of the

10100SB0690ham002- 642 -LRB101 04451 SMS 61506 a
1 electromechanical meters.
2 (11) It must have nonresettable meters housed in a
3 locked area of the terminal that keep a permanent record of
4 all cash inserted into the machine, all winnings made by
5 the terminal printer, credits played in for video gaming
6 terminals, and credits won by video gaming players. The
7 video gaming terminal must provide the means for on-demand
8 display of stored information as determined by the Board.
9 (12) Electronically stored meter information required
10 by this Section must be preserved for a minimum of 180 days
11 after a power loss to the service.
12 (13) It must have one or more mechanisms that accept
13 cash in the form of bills. The mechanisms shall be designed
14 to prevent obtaining credits without paying by stringing,
15 slamming, drilling, or other means. If such attempts at
16 physical tampering are made, the video gaming terminal
17 shall suspend itself from operating until reset.
18 (14) It shall have accounting software that keeps an
19 electronic record which includes, but is not limited to,
20 the following: total cash inserted into the video gaming
21 terminal; the value of winning tickets claimed by players;
22 the total credits played; the total credits awarded by a
23 video gaming terminal; and pay back percentage credited to
24 players of each video game.
25 (15) It shall be linked by a central communications
26 system to provide auditing program information as approved

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1 by the Board. The central communications system shall use a
2 standard industry protocol, as defined by the Gaming
3 Standards Association, and shall have the functionality to
4 enable the Board or its designee to activate or deactivate
5 individual gaming devices from the central communications
6 system. In no event may the communications system approved
7 by the Board limit participation to only one manufacturer
8 of video gaming terminals by either the cost in
9 implementing the necessary program modifications to
10 communicate or the inability to communicate with the
11 central communications system.
12 (16) The Board, in its discretion, may require video
13 gaming terminals to display Amber Alert messages if the
14 Board makes a finding that it would be economically and
15 technically feasible and pose no risk to the integrity and
16 security of the central communications system and video
17 gaming terminals.
18 Licensed terminal handlers shall have access to video
19gaming terminals, including, but not limited to, logic door
20access, without the physical presence or supervision of the
21Board or its agent to perform, in coordination with and with
22project approval from the central communication system
23provider:
24 (i) the clearing of the random access memory and
25 reprogramming of the video gaming terminal;
26 (ii) the installation of new video gaming terminal

10100SB0690ham002- 644 -LRB101 04451 SMS 61506 a
1 software and software upgrades that have been approved by
2 the Board;
3 (iii) the placement, connection to the central
4 communication system, and go-live operation of video
5 gaming terminals at a licensed establishment, licensed
6 truck stop establishment, licensed fraternal
7 establishment, or licensed veterans establishment;
8 (iv) the repair and maintenance of a video gaming
9 terminal located at a licensed establishment, licensed
10 truck stop establishment, licensed fraternal
11 establishment, or licensed veterans establishment,
12 including, but not limited to, the replacement of the video
13 gaming terminal with a new video gaming terminal;
14 (v) the temporary movement, disconnection,
15 replacement, and reconnection of video gaming terminals to
16 allow for physical improvements and repairs at a licensed
17 establishment, licensed truck stop establishment, licensed
18 fraternal establishment, or licensed veterans
19 establishment, such as replacement of flooring, interior
20 repairs, and other similar activities; and
21 (vi) such other functions as the Board may otherwise
22 authorize.
23 The Board shall, at a licensed terminal operator's expense,
24cause all keys and other required devices to be provided to a
25terminal operator necessary to allow the licensed terminal
26handler access to the logic door to the terminal operator's

10100SB0690ham002- 645 -LRB101 04451 SMS 61506 a
1video gaming terminals.
2 The Board may adopt rules to establish additional criteria
3to preserve the integrity and security of video gaming in this
4State. The central communications system vendor may be licensed
5as a video gaming terminal manufacturer or a video gaming
6terminal distributor, or both, but in no event shall the
7central communications system vendor be licensed as a video
8gaming terminal operator.
9 The Board shall not permit the development of information
10or the use by any licensee of gaming device or individual game
11performance data. Nothing in this Act shall inhibit or prohibit
12the Board from the use of gaming device or individual game
13performance data in its regulatory duties. The Board shall
14adopt rules to ensure that all licensees are treated and all
15licensees act in a non-discriminatory manner and develop
16processes and penalties to enforce those rules.
17(Source: P.A. 98-31, eff. 6-24-13; 98-377, eff. 1-1-14; 98-582,
18eff. 8-27-13; 98-756, eff. 7-16-14.)
19 (230 ILCS 40/20)
20 Sec. 20. Video gaming terminal payouts Direct dispensing of
21receipt tickets only.
22 (a) A video gaming terminal may not directly dispense
23coins, cash, tokens, or any other article of exchange or value
24except for receipt tickets. Tickets shall be dispensed by
25pressing the ticket dispensing button on the video gaming

10100SB0690ham002- 646 -LRB101 04451 SMS 61506 a
1terminal at the end of one's turn or play. The ticket shall
2indicate the total amount of credits and the cash award, the
3time of day in a 24-hour format showing hours and minutes, the
4date, the terminal serial number, the sequential number of the
5ticket, and an encrypted validation number from which the
6validity of the prize may be determined. The player shall turn
7in this ticket to the appropriate person at the licensed
8establishment, licensed truck stop establishment, licensed
9fraternal establishment, or licensed veterans establishment to
10receive the cash award.
11 (b) The cost of the credit shall be one cent, 5 cents, 10
12cents, or 25 cents, or $1, and the maximum wager played per
13hand shall not exceed $4 $2. No cash award for the maximum
14wager on any individual hand shall exceed $1,199 $500. No cash
15award for the maximum wager on a jackpot, progressive or
16otherwise, shall exceed $10,000.
17 (c) In-location bonus jackpot games are hereby authorized.
18The Board shall adopt emergency rules pursuant to Section 5-45
19of the Illinois Administrative Procedure Act to implement this
20subsection (c) within 90 days after the effective date of this
21amendatory Act of the 101st General Assembly. Jackpot winnings
22from in-location progressive games shall be paid by the
23terminal operator to the player not later than 3 days after
24winning such a jackpot.
25(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)

10100SB0690ham002- 647 -LRB101 04451 SMS 61506 a
1 (230 ILCS 40/25)
2 Sec. 25. Restriction of licensees.
3 (a) Manufacturer. A person may not be licensed as a
4manufacturer of a video gaming terminal in Illinois unless the
5person has a valid manufacturer's license issued under this
6Act. A manufacturer may only sell video gaming terminals for
7use in Illinois to persons having a valid distributor's
8license.
9 (b) Distributor. A person may not sell, distribute, or
10lease or market a video gaming terminal in Illinois unless the
11person has a valid distributor's license issued under this Act.
12A distributor may only sell video gaming terminals for use in
13Illinois to persons having a valid distributor's or terminal
14operator's license.
15 (c) Terminal operator. A person may not own, maintain, or
16place a video gaming terminal unless he has a valid terminal
17operator's license issued under this Act. A terminal operator
18may only place video gaming terminals for use in Illinois in
19licensed establishments, licensed truck stop establishments,
20licensed fraternal establishments, and licensed veterans
21establishments. No terminal operator may give anything of
22value, including but not limited to a loan or financing
23arrangement, to a licensed establishment, licensed truck stop
24establishment, licensed fraternal establishment, or licensed
25veterans establishment as any incentive or inducement to locate
26video terminals in that establishment. Of the after-tax profits

10100SB0690ham002- 648 -LRB101 04451 SMS 61506 a
1from a video gaming terminal, 50% shall be paid to the terminal
2operator and 50% shall be paid to the licensed establishment,
3licensed truck stop establishment, licensed fraternal
4establishment, or licensed veterans establishment,
5notwithstanding any agreement to the contrary. A video terminal
6operator that violates one or more requirements of this
7subsection is guilty of a Class 4 felony and is subject to
8termination of his or her license by the Board.
9 (d) Licensed technician. A person may not service,
10maintain, or repair a video gaming terminal in this State
11unless he or she (1) has a valid technician's license issued
12under this Act, (2) is a terminal operator, or (3) is employed
13by a terminal operator, distributor, or manufacturer.
14 (d-5) Licensed terminal handler. No person, including, but
15not limited to, an employee or independent contractor working
16for a manufacturer, distributor, supplier, technician, or
17terminal operator licensed pursuant to this Act, shall have
18possession or control of a video gaming terminal, or access to
19the inner workings of a video gaming terminal, unless that
20person possesses a valid terminal handler's license issued
21under this Act.
22 (e) Licensed establishment. No video gaming terminal may be
23placed in any licensed establishment, licensed veterans
24establishment, licensed truck stop establishment, or licensed
25fraternal establishment unless the owner or agent of the owner
26of the licensed establishment, licensed veterans

10100SB0690ham002- 649 -LRB101 04451 SMS 61506 a
1establishment, licensed truck stop establishment, or licensed
2fraternal establishment has entered into a written use
3agreement with the terminal operator for placement of the
4terminals. A copy of the use agreement shall be on file in the
5terminal operator's place of business and available for
6inspection by individuals authorized by the Board. A licensed
7establishment, licensed truck stop establishment, licensed
8veterans establishment, or licensed fraternal establishment
9may operate up to 6 5 video gaming terminals on its premises at
10any time. A licensed truck stop establishment may operate up to
1110 video gaming terminals on its premises at any time.
12 (f) (Blank).
13 (g) Financial interest restrictions. As used in this Act,
14"substantial interest" in a partnership, a corporation, an
15organization, an association, a business, or a limited
16liability company means:
17 (A) When, with respect to a sole proprietorship, an
18 individual or his or her spouse owns, operates, manages, or
19 conducts, directly or indirectly, the organization,
20 association, or business, or any part thereof; or
21 (B) When, with respect to a partnership, the individual
22 or his or her spouse shares in any of the profits, or
23 potential profits, of the partnership activities; or
24 (C) When, with respect to a corporation, an individual
25 or his or her spouse is an officer or director, or the
26 individual or his or her spouse is a holder, directly or

10100SB0690ham002- 650 -LRB101 04451 SMS 61506 a
1 beneficially, of 5% or more of any class of stock of the
2 corporation; or
3 (D) When, with respect to an organization not covered
4 in (A), (B) or (C) above, an individual or his or her
5 spouse is an officer or manages the business affairs, or
6 the individual or his or her spouse is the owner of or
7 otherwise controls 10% or more of the assets of the
8 organization; or
9 (E) When an individual or his or her spouse furnishes
10 5% or more of the capital, whether in cash, goods, or
11 services, for the operation of any business, association,
12 or organization during any calendar year; or
13 (F) When, with respect to a limited liability company,
14 an individual or his or her spouse is a member, or the
15 individual or his or her spouse is a holder, directly or
16 beneficially, of 5% or more of the membership interest of
17 the limited liability company.
18 For purposes of this subsection (g), "individual" includes
19all individuals or their spouses whose combined interest would
20qualify as a substantial interest under this subsection (g) and
21whose activities with respect to an organization, association,
22or business are so closely aligned or coordinated as to
23constitute the activities of a single entity.
24 (h) Location restriction. A licensed establishment,
25licensed truck stop establishment, licensed fraternal
26establishment, or licensed veterans establishment that is (i)

10100SB0690ham002- 651 -LRB101 04451 SMS 61506 a
1located within 1,000 feet of a facility operated by an
2organization licensee licensed under the Illinois Horse Racing
3Act of 1975 or the home dock of a riverboat licensed under the
4Illinois Riverboat Gambling Act or (ii) located within 100 feet
5of a school or a place of worship under the Religious
6Corporation Act, is ineligible to operate a video gaming
7terminal. The location restrictions in this subsection (h) do
8not apply if (A) a facility operated by an organization
9licensee, a school, or a place of worship moves to or is
10established within the restricted area after a licensed
11establishment, licensed truck stop establishment, licensed
12fraternal establishment, or licensed veterans establishment
13becomes licensed under this Act or (B) a school or place of
14worship moves to or is established within the restricted area
15after a licensed establishment, licensed truck stop
16establishment, licensed fraternal establishment, or licensed
17veterans establishment obtains its original liquor license.
18For the purpose of this subsection, "school" means an
19elementary or secondary public school, or an elementary or
20secondary private school registered with or recognized by the
21State Board of Education.
22 Notwithstanding the provisions of this subsection (h), the
23Board may waive the requirement that a licensed establishment,
24licensed truck stop establishment, licensed fraternal
25establishment, or licensed veterans establishment not be
26located within 1,000 feet from a facility operated by an

10100SB0690ham002- 652 -LRB101 04451 SMS 61506 a
1organization licensee licensed under the Illinois Horse Racing
2Act of 1975 or the home dock of a riverboat licensed under the
3Illinois Riverboat Gambling Act. The Board shall not grant such
4waiver if there is any common ownership or control, shared
5business activity, or contractual arrangement of any type
6between the establishment and the organization licensee or
7owners licensee of a riverboat. The Board shall adopt rules to
8implement the provisions of this paragraph.
9 (h-5) Restrictions on licenses in malls. The Board shall
10not grant an application to become a licensed video gaming
11location if the Board determines that granting the application
12would more likely than not cause a terminal operator,
13individually or in combination with other terminal operators,
14licensed video gaming location, or other person or entity, to
15operate the video gaming terminals in 2 or more licensed video
16gaming locations as a single video gaming operation.
17 (1) In making determinations under this subsection
18 (h-5), factors to be considered by the Board shall include,
19 but not be limited to, the following:
20 (A) the physical aspects of the location;
21 (B) the ownership, control, or management of the
22 location;
23 (C) any arrangements, understandings, or
24 agreements, written or otherwise, among or involving
25 any persons or entities that involve the conducting of
26 any video gaming business or the sharing of costs or

10100SB0690ham002- 653 -LRB101 04451 SMS 61506 a
1 revenues; and
2 (D) the manner in which any terminal operator or
3 other related entity markets, advertises, or otherwise
4 describes any location or locations to any other person
5 or entity or to the public.
6 (2) The Board shall presume, subject to rebuttal, that
7 the granting of an application to become a licensed video
8 gaming location within a mall will cause a terminal
9 operator, individually or in combination with other
10 persons or entities, to operate the video gaming terminals
11 in 2 or more licensed video gaming locations as a single
12 video gaming operation if the Board determines that
13 granting the license would create a local concentration of
14 licensed video gaming locations.
15 For the purposes of this subsection (h-5):
16 "Mall" means a building, or adjoining or connected
17buildings, containing 4 or more separate locations.
18 "Video gaming operation" means the conducting of video
19gaming and all related activities.
20 "Location" means a space within a mall containing a
21separate business, a place for a separate business, or a place
22subject to a separate leasing arrangement by the mall owner.
23 "Licensed video gaming location" means a licensed
24establishment, licensed fraternal establishment, licensed
25veterans establishment, or licensed truck stop.
26 "Local concentration of licensed video gaming locations"

10100SB0690ham002- 654 -LRB101 04451 SMS 61506 a
1means that the combined number of licensed video gaming
2locations within a mall exceed half of the separate locations
3within the mall.
4 (i) Undue economic concentration. In addition to
5considering all other requirements under this Act, in deciding
6whether to approve the operation of video gaming terminals by a
7terminal operator in a location, the Board shall consider the
8impact of any economic concentration of such operation of video
9gaming terminals. The Board shall not allow a terminal operator
10to operate video gaming terminals if the Board determines such
11operation will result in undue economic concentration. For
12purposes of this Section, "undue economic concentration" means
13that a terminal operator would have such actual or potential
14influence over video gaming terminals in Illinois as to:
15 (1) substantially impede or suppress competition among
16 terminal operators;
17 (2) adversely impact the economic stability of the
18 video gaming industry in Illinois; or
19 (3) negatively impact the purposes of the Video Gaming
20 Act.
21 The Board shall adopt rules concerning undue economic
22concentration with respect to the operation of video gaming
23terminals in Illinois. The rules shall include, but not be
24limited to, (i) limitations on the number of video gaming
25terminals operated by any terminal operator within a defined
26geographic radius and (ii) guidelines on the discontinuation of

10100SB0690ham002- 655 -LRB101 04451 SMS 61506 a
1operation of any such video gaming terminals the Board
2determines will cause undue economic concentration.
3 (j) The provisions of the Illinois Antitrust Act are fully
4and equally applicable to the activities of any licensee under
5this Act.
6(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
7eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
8 (230 ILCS 40/45)
9 Sec. 45. Issuance of license.
10 (a) The burden is upon each applicant to demonstrate his
11suitability for licensure. Each video gaming terminal
12manufacturer, distributor, supplier, operator, handler,
13licensed establishment, licensed truck stop establishment,
14licensed fraternal establishment, and licensed veterans
15establishment shall be licensed by the Board. The Board may
16issue or deny a license under this Act to any person pursuant
17to the same criteria set forth in Section 9 of the Illinois
18Riverboat Gambling Act.
19 (a-5) The Board shall not grant a license to a person who
20has facilitated, enabled, or participated in the use of
21coin-operated devices for gambling purposes or who is under the
22significant influence or control of such a person. For the
23purposes of this Act, "facilitated, enabled, or participated in
24the use of coin-operated amusement devices for gambling
25purposes" means that the person has been convicted of any

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1violation of Article 28 of the Criminal Code of 1961 or the
2Criminal Code of 2012. If there is pending legal action against
3a person for any such violation, then the Board shall delay the
4licensure of that person until the legal action is resolved.
5 (b) Each person seeking and possessing a license as a video
6gaming terminal manufacturer, distributor, supplier, operator,
7handler, licensed establishment, licensed truck stop
8establishment, licensed fraternal establishment, or licensed
9veterans establishment shall submit to a background
10investigation conducted by the Board with the assistance of the
11State Police or other law enforcement. To the extent that the
12corporate structure of the applicant allows, the background
13investigation shall include any or all of the following as the
14Board deems appropriate or as provided by rule for each
15category of licensure: (i) each beneficiary of a trust, (ii)
16each partner of a partnership, (iii) each member of a limited
17liability company, (iv) each director and officer of a publicly
18or non-publicly held corporation, (v) each stockholder of a
19non-publicly held corporation, (vi) each stockholder of 5% or
20more of a publicly held corporation, or (vii) each stockholder
21of 5% or more in a parent or subsidiary corporation.
22 (c) Each person seeking and possessing a license as a video
23gaming terminal manufacturer, distributor, supplier, operator,
24handler, licensed establishment, licensed truck stop
25establishment, licensed fraternal establishment, or licensed
26veterans establishment shall disclose the identity of every

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

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

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1 (7) Video gaming terminal...................$100
2 (8) Terminal Handler............................$100
3 (h) A terminal operator and a licensed establishment,
4licensed truck stop establishment, licensed fraternal
5establishment, or licensed veterans establishment shall
6equally split the fees specified in item (7) of subsection (g).
7(Source: P.A. 100-1152, eff. 12-14-18.)
8 (230 ILCS 40/60)
9 Sec. 60. Imposition and distribution of tax.
10 (a) A tax of 30% is imposed on net terminal income and
11shall be collected by the Board.
12 (b) Of the tax collected under this subsection (a) Section,
13five-sixths shall be deposited into the Capital Projects Fund
14and one-sixth shall be deposited into the Local Government
15Video Gaming Distributive Fund.
16 (b) Beginning on July 1, 2019, an additional tax of 3% is
17imposed on net terminal income and shall be collected by the
18Board.
19 Beginning on July 1, 2020, an additional tax of 1% is
20imposed on net terminal income and shall be collected by the
21Board.
22 The tax collected under this subsection (b) shall be
23deposited into the Capital Projects Fund.
24 (c) Revenues generated from the play of video gaming
25terminals shall be deposited by the terminal operator, who is

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1responsible for tax payments, in a specially created, separate
2bank account maintained by the video gaming terminal operator
3to allow for electronic fund transfers of moneys for tax
4payment.
5 (d) Each licensed establishment, licensed truck stop
6establishment, licensed fraternal establishment, and licensed
7veterans establishment shall maintain an adequate video gaming
8fund, with the amount to be determined by the Board.
9 (e) The State's percentage of net terminal income shall be
10reported and remitted to the Board within 15 days after the
1115th day of each month and within 15 days after the end of each
12month by the video terminal operator. A video terminal operator
13who falsely reports or fails to report the amount due required
14by this Section is guilty of a Class 4 felony and is subject to
15termination of his or her license by the Board. Each video
16terminal operator shall keep a record of net terminal income in
17such form as the Board may require. All payments not remitted
18when due shall be paid together with a penalty assessment on
19the unpaid balance at a rate of 1.5% per month.
20(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
21 (230 ILCS 40/79)
22 Sec. 79. Investigators. Investigators appointed by the
23Board pursuant to the powers conferred upon the Board by
24paragraph (20.6) of subsection (c) of Section 5 of the Illinois
25Riverboat Gambling Act and Section 80 of this Act shall have

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

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1the Illinois Gambling Act shall prevail. All current supplier
2licensees under the Illinois Riverboat Gambling Act shall be
3entitled to licensure under the Video Gaming Act as
4manufacturers, distributors, or suppliers without additional
5Board investigation or approval, except by vote of the Board;
6however, they are required to pay application and annual fees
7under this Act. All provisions of the Uniform Penalty and
8Interest Act shall apply, as far as practicable, to the subject
9matter of this Act to the same extent as if such provisions
10were included herein.
11(Source: P.A. 100-1152, eff. 12-14-18.)
12 Section 35-65. The Liquor Control Act of 1934 is amended by
13changing Sections 5-1 and 6-30 as follows:
14 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
15 Sec. 5-1. Licenses issued by the Illinois Liquor Control
16Commission shall be of the following classes:
17 (a) Manufacturer's license - Class 1. Distiller, Class 2.
18Rectifier, Class 3. Brewer, Class 4. First Class Wine
19Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
20First Class Winemaker, Class 7. Second Class Winemaker, Class
218. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
2210. Class 1 Brewer, Class 11. Class 2 Brewer,
23 (b) Distributor's license,
24 (c) Importing Distributor's license,

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1 (d) Retailer's license,
2 (e) Special Event Retailer's license (not-for-profit),
3 (f) Railroad license,
4 (g) Boat license,
5 (h) Non-Beverage User's license,
6 (i) Wine-maker's premises license,
7 (j) Airplane license,
8 (k) Foreign importer's license,
9 (l) Broker's license,
10 (m) Non-resident dealer's license,
11 (n) Brew Pub license,
12 (o) Auction liquor license,
13 (p) Caterer retailer license,
14 (q) Special use permit license,
15 (r) Winery shipper's license,
16 (s) Craft distiller tasting permit,
17 (t) Brewer warehouse permit.
18 No person, firm, partnership, corporation, or other legal
19business entity that is engaged in the manufacturing of wine
20may concurrently obtain and hold a wine-maker's license and a
21wine manufacturer's license.
22 (a) A manufacturer's license shall allow the manufacture,
23importation in bulk, storage, distribution and sale of
24alcoholic liquor to persons without the State, as may be
25permitted by law and to licensees in this State as follows:
26 Class 1. A Distiller may make sales and deliveries of

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1alcoholic liquor to distillers, rectifiers, importing
2distributors, distributors and non-beverage users and to no
3other licensees.
4 Class 2. A Rectifier, who is not a distiller, as defined
5herein, may make sales and deliveries of alcoholic liquor to
6rectifiers, importing distributors, distributors, retailers
7and non-beverage users and to no other licensees.
8 Class 3. A Brewer may make sales and deliveries of beer to
9importing distributors and distributors and may make sales as
10authorized under subsection (e) of Section 6-4 of this Act.
11 Class 4. A first class wine-manufacturer may make sales and
12deliveries of up to 50,000 gallons of wine to manufacturers,
13importing distributors and distributors, and to no other
14licensees.
15 Class 5. A second class Wine manufacturer may make sales
16and deliveries of more than 50,000 gallons of wine to
17manufacturers, importing distributors and distributors and to
18no other licensees.
19 Class 6. A first-class wine-maker's license shall allow the
20manufacture of up to 50,000 gallons of wine per year, and the
21storage and sale of such wine to distributors in the State and
22to persons without the State, as may be permitted by law. A
23person who, prior to June 1, 2008 (the effective date of Public
24Act 95-634), is a holder of a first-class wine-maker's license
25and annually produces more than 25,000 gallons of its own wine
26and who distributes its wine to licensed retailers shall cease

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1this practice on or before July 1, 2008 in compliance with
2Public Act 95-634.
3 Class 7. A second-class wine-maker's license shall allow
4the manufacture of between 50,000 and 150,000 gallons of wine
5per year, and the storage and sale of such wine to distributors
6in this State and to persons without the State, as may be
7permitted by law. A person who, prior to June 1, 2008 (the
8effective date of Public Act 95-634), is a holder of a
9second-class wine-maker's license and annually produces more
10than 25,000 gallons of its own wine and who distributes its
11wine to licensed retailers shall cease this practice on or
12before July 1, 2008 in compliance with Public Act 95-634.
13 Class 8. A limited wine-manufacturer may make sales and
14deliveries not to exceed 40,000 gallons of wine per year to
15distributors, and to non-licensees in accordance with the
16provisions of this Act.
17 Class 9. A craft distiller license shall allow the
18manufacture of up to 100,000 gallons of spirits by distillation
19per year and the storage of such spirits. If a craft distiller
20licensee, including a craft distiller licensee who holds more
21than one craft distiller license, is not affiliated with any
22other manufacturer of spirits, then the craft distiller
23licensee may sell such spirits to distributors in this State
24and up to 2,500 gallons of such spirits to non-licensees to the
25extent permitted by any exemption approved by the Commission
26pursuant to Section 6-4 of this Act. A craft distiller license

10100SB0690ham002- 666 -LRB101 04451 SMS 61506 a
1holder may store such spirits at a non-contiguous licensed
2location, but at no time shall a craft distiller license holder
3directly or indirectly produce in the aggregate more than
4100,000 gallons of spirits per year.
5 A craft distiller licensee may hold more than one craft
6distiller's license. However, a craft distiller that holds more
7than one craft distiller license shall not manufacture, in the
8aggregate, more than 100,000 gallons of spirits by distillation
9per year and shall not sell, in the aggregate, more than 2,500
10gallons of such spirits to non-licensees in accordance with an
11exemption approved by the State Commission pursuant to Section
126-4 of this Act.
13 Any craft distiller licensed under this Act who on July 28,
142010 (the effective date of Public Act 96-1367) was licensed as
15a distiller and manufactured no more spirits than permitted by
16this Section shall not be required to pay the initial licensing
17fee.
18 Class 10. A class 1 brewer license, which may only be
19issued to a licensed brewer or licensed non-resident dealer,
20shall allow the manufacture of up to 930,000 gallons of beer
21per year provided that the class 1 brewer licensee does not
22manufacture more than a combined 930,000 gallons of beer per
23year and is not a member of or affiliated with, directly or
24indirectly, a manufacturer that produces more than 930,000
25gallons of beer per year or any other alcoholic liquor. A class
261 brewer licensee may make sales and deliveries to importing

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1distributors and distributors and to retail licensees in
2accordance with the conditions set forth in paragraph (18) of
3subsection (a) of Section 3-12 of this Act. If the State
4Commission provides prior approval, a class 1 brewer may
5annually transfer up to 930,000 gallons of beer manufactured by
6that class 1 brewer to the premises of a licensed class 1
7brewer wholly owned and operated by the same licensee.
8 Class 11. A class 2 brewer license, which may only be
9issued to a licensed brewer or licensed non-resident dealer,
10shall allow the manufacture of up to 3,720,000 gallons of beer
11per year provided that the class 2 brewer licensee does not
12manufacture more than a combined 3,720,000 gallons of beer per
13year and is not a member of or affiliated with, directly or
14indirectly, a manufacturer that produces more than 3,720,000
15gallons of beer per year or any other alcoholic liquor. A class
162 brewer licensee may make sales and deliveries to importing
17distributors and distributors, but shall not make sales or
18deliveries to any other licensee. If the State Commission
19provides prior approval, a class 2 brewer licensee may annually
20transfer up to 3,720,000 gallons of beer manufactured by that
21class 2 brewer licensee to the premises of a licensed class 2
22brewer wholly owned and operated by the same licensee.
23 A class 2 brewer may transfer beer to a brew pub wholly
24owned and operated by the class 2 brewer subject to the
25following limitations and restrictions: (i) the transfer shall
26not annually exceed more than 31,000 gallons; (ii) the annual

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1amount transferred shall reduce the brew pub's annual permitted
2production limit; (iii) all beer transferred shall be subject
3to Article VIII of this Act; (iv) a written record shall be
4maintained by the brewer and brew pub specifying the amount,
5date of delivery, and receipt of the product by the brew pub;
6and (v) the brew pub shall be located no farther than 80 miles
7from the class 2 brewer's licensed location.
8 A class 2 brewer shall, prior to transferring beer to a
9brew pub wholly owned by the class 2 brewer, furnish a written
10notice to the State Commission of intent to transfer beer
11setting forth the name and address of the brew pub and shall
12annually submit to the State Commission a verified report
13identifying the total gallons of beer transferred to the brew
14pub wholly owned by the class 2 brewer.
15 (a-1) A manufacturer which is licensed in this State to
16make sales or deliveries of alcoholic liquor to licensed
17distributors or importing distributors and which enlists
18agents, representatives, or individuals acting on its behalf
19who contact licensed retailers on a regular and continual basis
20in this State must register those agents, representatives, or
21persons acting on its behalf with the State Commission.
22 Registration of agents, representatives, or persons acting
23on behalf of a manufacturer is fulfilled by submitting a form
24to the Commission. The form shall be developed by the
25Commission and shall include the name and address of the
26applicant, the name and address of the manufacturer he or she

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1represents, the territory or areas assigned to sell to or
2discuss pricing terms of alcoholic liquor, and any other
3questions deemed appropriate and necessary. All statements in
4the forms required to be made by law or by rule shall be deemed
5material, and any person who knowingly misstates any material
6fact under oath in an application is guilty of a Class B
7misdemeanor. Fraud, misrepresentation, false statements,
8misleading statements, evasions, or suppression of material
9facts in the securing of a registration are grounds for
10suspension or revocation of the registration. The State
11Commission shall post a list of registered agents on the
12Commission's website.
13 (b) A distributor's license shall allow the wholesale
14purchase and storage of alcoholic liquors and sale of alcoholic
15liquors to licensees in this State and to persons without the
16State, as may be permitted by law, and the sale of beer, cider,
17or both beer and cider to brewers, class 1 brewers, and class 2
18brewers that, pursuant to subsection (e) of Section 6-4 of this
19Act, sell beer, cider, or both beer and cider to non-licensees
20at their breweries. No person licensed as a distributor shall
21be granted a non-resident dealer's license.
22 (c) An importing distributor's license may be issued to and
23held by those only who are duly licensed distributors, upon the
24filing of an application by a duly licensed distributor, with
25the Commission and the Commission shall, without the payment of
26any fee, immediately issue such importing distributor's

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1license to the applicant, which shall allow the importation of
2alcoholic liquor by the licensee into this State from any point
3in the United States outside this State, and the purchase of
4alcoholic liquor in barrels, casks or other bulk containers and
5the bottling of such alcoholic liquors before resale thereof,
6but all bottles or containers so filled shall be sealed,
7labeled, stamped and otherwise made to comply with all
8provisions, rules and regulations governing manufacturers in
9the preparation and bottling of alcoholic liquors. The
10importing distributor's license shall permit such licensee to
11purchase alcoholic liquor from Illinois licensed non-resident
12dealers and foreign importers only. No person licensed as an
13importing distributor shall be granted a non-resident dealer's
14license.
15 (d) A retailer's license shall allow the licensee to sell
16and offer for sale at retail, only in the premises specified in
17the license, alcoholic liquor for use or consumption, but not
18for resale in any form. Nothing in Public Act 95-634 shall
19deny, limit, remove, or restrict the ability of a holder of a
20retailer's license to transfer, deliver, or ship alcoholic
21liquor to the purchaser for use or consumption subject to any
22applicable local law or ordinance. Any retail license issued to
23a manufacturer shall only permit the manufacturer to sell beer
24at retail on the premises actually occupied by the
25manufacturer. For the purpose of further describing the type of
26business conducted at a retail licensed premises, a retailer's

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1licensee may be designated by the State Commission as (i) an on
2premise consumption retailer, (ii) an off premise sale
3retailer, or (iii) a combined on premise consumption and off
4premise sale retailer.
5 Notwithstanding any other provision of this subsection
6(d), a retail licensee may sell alcoholic liquors to a special
7event retailer licensee for resale to the extent permitted
8under subsection (e).
9 (e) A special event retailer's license (not-for-profit)
10shall permit the licensee to purchase alcoholic liquors from an
11Illinois licensed distributor (unless the licensee purchases
12less than $500 of alcoholic liquors for the special event, in
13which case the licensee may purchase the alcoholic liquors from
14a licensed retailer) and shall allow the licensee to sell and
15offer for sale, at retail, alcoholic liquors for use or
16consumption, but not for resale in any form and only at the
17location and on the specific dates designated for the special
18event in the license. An applicant for a special event retailer
19license must (i) furnish with the application: (A) a resale
20number issued under Section 2c of the Retailers' Occupation Tax
21Act or evidence that the applicant is registered under Section
222a of the Retailers' Occupation Tax Act, (B) a current, valid
23exemption identification number issued under Section 1g of the
24Retailers' Occupation Tax Act, and a certification to the
25Commission that the purchase of alcoholic liquors will be a
26tax-exempt purchase, or (C) a statement that the applicant is

10100SB0690ham002- 672 -LRB101 04451 SMS 61506 a
1not registered under Section 2a of the Retailers' Occupation
2Tax Act, does not hold a resale number under Section 2c of the
3Retailers' Occupation Tax Act, and does not hold an exemption
4number under Section 1g of the Retailers' Occupation Tax Act,
5in which event the Commission shall set forth on the special
6event retailer's license a statement to that effect; (ii)
7submit with the application proof satisfactory to the State
8Commission that the applicant will provide dram shop liability
9insurance in the maximum limits; and (iii) show proof
10satisfactory to the State Commission that the applicant has
11obtained local authority approval.
12 Nothing in this Act prohibits an Illinois licensed
13distributor from offering credit or a refund for unused,
14salable alcoholic liquors to a holder of a special event
15retailer's license or from the special event retailer's
16licensee from accepting the credit or refund of alcoholic
17liquors at the conclusion of the event specified in the
18license.
19 (f) A railroad license shall permit the licensee to import
20alcoholic liquors into this State from any point in the United
21States outside this State and to store such alcoholic liquors
22in this State; to make wholesale purchases of alcoholic liquors
23directly from manufacturers, foreign importers, distributors
24and importing distributors from within or outside this State;
25and to store such alcoholic liquors in this State; provided
26that the above powers may be exercised only in connection with

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

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1shall be divided and classified and shall permit the purchase,
2possession and use of limited and stated quantities of
3alcoholic liquor as follows:
4Class 1, not to exceed ......................... 500 gallons
5Class 2, not to exceed ....................... 1,000 gallons
6Class 3, not to exceed ....................... 5,000 gallons
7Class 4, not to exceed ...................... 10,000 gallons
8Class 5, not to exceed ....................... 50,000 gallons
9 (i) A wine-maker's premises license shall allow a licensee
10that concurrently holds a first-class wine-maker's license to
11sell and offer for sale at retail in the premises specified in
12such license not more than 50,000 gallons of the first-class
13wine-maker's wine that is made at the first-class wine-maker's
14licensed premises per year for use or consumption, but not for
15resale in any form. A wine-maker's premises license shall allow
16a licensee who concurrently holds a second-class wine-maker's
17license to sell and offer for sale at retail in the premises
18specified in such license up to 100,000 gallons of the
19second-class wine-maker's wine that is made at the second-class
20wine-maker's licensed premises per year for use or consumption
21but not for resale in any form. A wine-maker's premises license
22shall allow a licensee that concurrently holds a first-class
23wine-maker's license or a second-class wine-maker's license to
24sell and offer for sale at retail at the premises specified in
25the wine-maker's premises license, for use or consumption but
26not for resale in any form, any beer, wine, and spirits

10100SB0690ham002- 675 -LRB101 04451 SMS 61506 a
1purchased from a licensed distributor. Upon approval from the
2State Commission, a wine-maker's premises license shall allow
3the licensee to sell and offer for sale at (i) the wine-maker's
4licensed premises and (ii) at up to 2 additional locations for
5use and consumption and not for resale. Each location shall
6require additional licensing per location as specified in
7Section 5-3 of this Act. A wine-maker's premises licensee shall
8secure liquor liability insurance coverage in an amount at
9least equal to the maximum liability amounts set forth in
10subsection (a) of Section 6-21 of this Act.
11 (j) An airplane license shall permit the licensee to import
12alcoholic liquors into this State from any point in the United
13States outside this State and to store such alcoholic liquors
14in this State; to make wholesale purchases of alcoholic liquors
15directly from manufacturers, foreign importers, distributors
16and importing distributors from within or outside this State;
17and to store such alcoholic liquors in this State; provided
18that the above powers may be exercised only in connection with
19the importation, purchase or storage of alcoholic liquors to be
20sold or dispensed on an airplane; and provided further, that
21airplane licensees exercising the above powers shall be subject
22to all provisions of Article VIII of this Act as applied to
23importing distributors. An airplane licensee shall also permit
24the sale or dispensing of alcoholic liquors on any passenger
25airplane regularly operated by a common carrier in this State,
26but shall not permit the sale for resale of any alcoholic

10100SB0690ham002- 676 -LRB101 04451 SMS 61506 a
1liquors to any licensee within this State. A single airplane
2license shall be required of an airline company if liquor
3service is provided on board aircraft in this State. The annual
4fee for such license shall be as determined in Section 5-3.
5 (k) A foreign importer's license shall permit such licensee
6to purchase alcoholic liquor from Illinois licensed
7non-resident dealers only, and to import alcoholic liquor other
8than in bulk from any point outside the United States and to
9sell such alcoholic liquor to Illinois licensed importing
10distributors and to no one else in Illinois; provided that (i)
11the foreign importer registers with the State Commission every
12brand of alcoholic liquor that it proposes to sell to Illinois
13licensees during the license period, (ii) the foreign importer
14complies with all of the provisions of Section 6-9 of this Act
15with respect to registration of such Illinois licensees as may
16be granted the right to sell such brands at wholesale, and
17(iii) the foreign importer complies with the provisions of
18Sections 6-5 and 6-6 of this Act to the same extent that these
19provisions apply to manufacturers.
20 (l) (i) A broker's license shall be required of all persons
21who solicit orders for, offer to sell or offer to supply
22alcoholic liquor to retailers in the State of Illinois, or who
23offer to retailers to ship or cause to be shipped or to make
24contact with distillers, rectifiers, brewers or manufacturers
25or any other party within or without the State of Illinois in
26order that alcoholic liquors be shipped to a distributor,

10100SB0690ham002- 677 -LRB101 04451 SMS 61506 a
1importing distributor or foreign importer, whether such
2solicitation or offer is consummated within or without the
3State of Illinois.
4 No holder of a retailer's license issued by the Illinois
5Liquor Control Commission shall purchase or receive any
6alcoholic liquor, the order for which was solicited or offered
7for sale to such retailer by a broker unless the broker is the
8holder of a valid broker's license.
9 The broker shall, upon the acceptance by a retailer of the
10broker's solicitation of an order or offer to sell or supply or
11deliver or have delivered alcoholic liquors, promptly forward
12to the Illinois Liquor Control Commission a notification of
13said transaction in such form as the Commission may by
14regulations prescribe.
15 (ii) A broker's license shall be required of a person
16within this State, other than a retail licensee, who, for a fee
17or commission, promotes, solicits, or accepts orders for
18alcoholic liquor, for use or consumption and not for resale, to
19be shipped from this State and delivered to residents outside
20of this State by an express company, common carrier, or
21contract carrier. This Section does not apply to any person who
22promotes, solicits, or accepts orders for wine as specifically
23authorized in Section 6-29 of this Act.
24 A broker's license under this subsection (l) shall not
25entitle the holder to buy or sell any alcoholic liquors for his
26own account or to take or deliver title to such alcoholic

10100SB0690ham002- 678 -LRB101 04451 SMS 61506 a
1liquors.
2 This subsection (l) shall not apply to distributors,
3employees of distributors, or employees of a manufacturer who
4has registered the trademark, brand or name of the alcoholic
5liquor pursuant to Section 6-9 of this Act, and who regularly
6sells such alcoholic liquor in the State of Illinois only to
7its registrants thereunder.
8 Any agent, representative, or person subject to
9registration pursuant to subsection (a-1) of this Section shall
10not be eligible to receive a broker's license.
11 (m) A non-resident dealer's license shall permit such
12licensee to ship into and warehouse alcoholic liquor into this
13State from any point outside of this State, and to sell such
14alcoholic liquor to Illinois licensed foreign importers and
15importing distributors and to no one else in this State;
16provided that (i) said non-resident dealer shall register with
17the Illinois Liquor Control Commission each and every brand of
18alcoholic liquor which it proposes to sell to Illinois
19licensees during the license period, (ii) it shall comply with
20all of the provisions of Section 6-9 hereof with respect to
21registration of such Illinois licensees as may be granted the
22right to sell such brands at wholesale by duly filing such
23registration statement, thereby authorizing the non-resident
24dealer to proceed to sell such brands at wholesale, and (iii)
25the non-resident dealer shall comply with the provisions of
26Sections 6-5 and 6-6 of this Act to the same extent that these

10100SB0690ham002- 679 -LRB101 04451 SMS 61506 a
1provisions apply to manufacturers. No person licensed as a
2non-resident dealer shall be granted a distributor's or
3importing distributor's license.
4 (n) A brew pub license shall allow the licensee to only (i)
5manufacture up to 155,000 gallons of beer per year only on the
6premises specified in the license, (ii) make sales of the beer
7manufactured on the premises or, with the approval of the
8Commission, beer manufactured on another brew pub licensed
9premises that is wholly owned and operated by the same licensee
10to importing distributors, distributors, and to non-licensees
11for use and consumption, (iii) store the beer upon the
12premises, (iv) sell and offer for sale at retail from the
13licensed premises for off-premises consumption no more than
14155,000 gallons per year so long as such sales are only made
15in-person, (v) sell and offer for sale at retail for use and
16consumption on the premises specified in the license any form
17of alcoholic liquor purchased from a licensed distributor or
18importing distributor, and (vi) with the prior approval of the
19Commission, annually transfer no more than 155,000 gallons of
20beer manufactured on the premises to a licensed brew pub wholly
21owned and operated by the same licensee.
22 A brew pub licensee shall not under any circumstance sell
23or offer for sale beer manufactured by the brew pub licensee to
24retail licensees.
25 A person who holds a class 2 brewer license may
26simultaneously hold a brew pub license if the class 2 brewer

10100SB0690ham002- 680 -LRB101 04451 SMS 61506 a
1(i) does not, under any circumstance, sell or offer for sale
2beer manufactured by the class 2 brewer to retail licensees;
3(ii) does not hold more than 3 brew pub licenses in this State;
4(iii) does not manufacture more than a combined 3,720,000
5gallons of beer per year, including the beer manufactured at
6the brew pub; and (iv) is not a member of or affiliated with,
7directly or indirectly, a manufacturer that produces more than
83,720,000 gallons of beer per year or any other alcoholic
9liquor.
10 Notwithstanding any other provision of this Act, a licensed
11brewer, class 2 brewer, or non-resident dealer who before July
121, 2015 manufactured less than 3,720,000 gallons of beer per
13year and held a brew pub license on or before July 1, 2015 may
14(i) continue to qualify for and hold that brew pub license for
15the licensed premises and (ii) manufacture more than 3,720,000
16gallons of beer per year and continue to qualify for and hold
17that brew pub license if that brewer, class 2 brewer, or
18non-resident dealer does not simultaneously hold a class 1
19brewer license and is not a member of or affiliated with,
20directly or indirectly, a manufacturer that produces more than
213,720,000 gallons of beer per year or that produces any other
22alcoholic liquor.
23 (o) A caterer retailer license shall allow the holder to
24serve alcoholic liquors as an incidental part of a food service
25that serves prepared meals which excludes the serving of snacks
26as the primary meal, either on or off-site whether licensed or

10100SB0690ham002- 681 -LRB101 04451 SMS 61506 a
1unlicensed.
2 (p) An auction liquor license shall allow the licensee to
3sell and offer for sale at auction wine and spirits for use or
4consumption, or for resale by an Illinois liquor licensee in
5accordance with provisions of this Act. An auction liquor
6license will be issued to a person and it will permit the
7auction liquor licensee to hold the auction anywhere in the
8State. An auction liquor license must be obtained for each
9auction at least 14 days in advance of the auction date.
10 (q) A special use permit license shall allow an Illinois
11licensed retailer to transfer a portion of its alcoholic liquor
12inventory from its retail licensed premises to the premises
13specified in the license hereby created, and to sell or offer
14for sale at retail, only in the premises specified in the
15license hereby created, the transferred alcoholic liquor for
16use or consumption, but not for resale in any form. A special
17use permit license may be granted for the following time
18periods: one day or less; 2 or more days to a maximum of 15 days
19per location in any 12-month period. An applicant for the
20special use permit license must also submit with the
21application proof satisfactory to the State Commission that the
22applicant will provide dram shop liability insurance to the
23maximum limits and have local authority approval.
24 (r) A winery shipper's license shall allow a person with a
25first-class or second-class wine manufacturer's license, a
26first-class or second-class wine-maker's license, or a limited

10100SB0690ham002- 682 -LRB101 04451 SMS 61506 a
1wine manufacturer's license or who is licensed to make wine
2under the laws of another state to ship wine made by that
3licensee directly to a resident of this State who is 21 years
4of age or older for that resident's personal use and not for
5resale. Prior to receiving a winery shipper's license, an
6applicant for the license must provide the Commission with a
7true copy of its current license in any state in which it is
8licensed as a manufacturer of wine. An applicant for a winery
9shipper's license must also complete an application form that
10provides any other information the Commission deems necessary.
11The application form shall include all addresses from which the
12applicant for a winery shipper's license intends to ship wine,
13including the name and address of any third party, except for a
14common carrier, authorized to ship wine on behalf of the
15manufacturer. The application form shall include an
16acknowledgement consenting to the jurisdiction of the
17Commission, the Illinois Department of Revenue, and the courts
18of this State concerning the enforcement of this Act and any
19related laws, rules, and regulations, including authorizing
20the Department of Revenue and the Commission to conduct audits
21for the purpose of ensuring compliance with Public Act 95-634,
22and an acknowledgement that the wine manufacturer is in
23compliance with Section 6-2 of this Act. Any third party,
24except for a common carrier, authorized to ship wine on behalf
25of a first-class or second-class wine manufacturer's licensee,
26a first-class or second-class wine-maker's licensee, a limited

10100SB0690ham002- 683 -LRB101 04451 SMS 61506 a
1wine manufacturer's licensee, or a person who is licensed to
2make wine under the laws of another state shall also be
3disclosed by the winery shipper's licensee, and a copy of the
4written appointment of the third-party wine provider, except
5for a common carrier, to the wine manufacturer shall be filed
6with the State Commission as a supplement to the winery
7shipper's license application or any renewal thereof. The
8winery shipper's license holder shall affirm under penalty of
9perjury, as part of the winery shipper's license application or
10renewal, that he or she only ships wine, either directly or
11indirectly through a third-party provider, from the licensee's
12own production.
13 Except for a common carrier, a third-party provider
14shipping wine on behalf of a winery shipper's license holder is
15the agent of the winery shipper's license holder and, as such,
16a winery shipper's license holder is responsible for the acts
17and omissions of the third-party provider acting on behalf of
18the license holder. A third-party provider, except for a common
19carrier, that engages in shipping wine into Illinois on behalf
20of a winery shipper's license holder shall consent to the
21jurisdiction of the State Commission and the State. Any
22third-party, except for a common carrier, holding such an
23appointment shall, by February 1 of each calendar year and upon
24request by the State Commission or the Department of Revenue,
25file with the State Commission a statement detailing each
26shipment made to an Illinois resident. The statement shall

10100SB0690ham002- 684 -LRB101 04451 SMS 61506 a
1include the name and address of the third-party provider filing
2the statement, the time period covered by the statement, and
3the following information:
4 (1) the name, address, and license number of the winery
5 shipper on whose behalf the shipment was made;
6 (2) the quantity of the products delivered; and
7 (3) the date and address of the shipment.
8If the Department of Revenue or the State Commission requests a
9statement under this paragraph, the third-party provider must
10provide that statement no later than 30 days after the request
11is made. Any books, records, supporting papers, and documents
12containing information and data relating to a statement under
13this paragraph shall be kept and preserved for a period of 3
14years, unless their destruction sooner is authorized, in
15writing, by the Director of Revenue, and shall be open and
16available to inspection by the Director of Revenue or the State
17Commission or any duly authorized officer, agent, or employee
18of the State Commission or the Department of Revenue, at all
19times during business hours of the day. Any person who violates
20any provision of this paragraph or any rule of the State
21Commission for the administration and enforcement of the
22provisions of this paragraph is guilty of a Class C
23misdemeanor. In case of a continuing violation, each day's
24continuance thereof shall be a separate and distinct offense.
25 The State Commission shall adopt rules as soon as
26practicable to implement the requirements of Public Act 99-904

10100SB0690ham002- 685 -LRB101 04451 SMS 61506 a
1and shall adopt rules prohibiting any such third-party
2appointment of a third-party provider, except for a common
3carrier, that has been deemed by the State Commission to have
4violated the provisions of this Act with regard to any winery
5shipper licensee.
6 A winery shipper licensee must pay to the Department of
7Revenue the State liquor gallonage tax under Section 8-1 for
8all wine that is sold by the licensee and shipped to a person
9in this State. For the purposes of Section 8-1, a winery
10shipper licensee shall be taxed in the same manner as a
11manufacturer of wine. A licensee who is not otherwise required
12to register under the Retailers' Occupation Tax Act must
13register under the Use Tax Act to collect and remit use tax to
14the Department of Revenue for all gallons of wine that are sold
15by the licensee and shipped to persons in this State. If a
16licensee fails to remit the tax imposed under this Act in
17accordance with the provisions of Article VIII of this Act, the
18winery shipper's license shall be revoked in accordance with
19the provisions of Article VII of this Act. If a licensee fails
20to properly register and remit tax under the Use Tax Act or the
21Retailers' Occupation Tax Act for all wine that is sold by the
22winery shipper and shipped to persons in this State, the winery
23shipper's license shall be revoked in accordance with the
24provisions of Article VII of this Act.
25 A winery shipper licensee must collect, maintain, and
26submit to the Commission on a semi-annual basis the total

10100SB0690ham002- 686 -LRB101 04451 SMS 61506 a
1number of cases per resident of wine shipped to residents of
2this State. A winery shipper licensed under this subsection (r)
3must comply with the requirements of Section 6-29 of this Act.
4 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
5Section 3-12, the State Commission may receive, respond to, and
6investigate any complaint and impose any of the remedies
7specified in paragraph (1) of subsection (a) of Section 3-12.
8 As used in this subsection, "third-party provider" means
9any entity that provides fulfillment house services, including
10warehousing, packaging, distribution, order processing, or
11shipment of wine, but not the sale of wine, on behalf of a
12licensed winery shipper.
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 A brewer warehouse permit may be issued to the holder of a

10100SB0690ham002- 687 -LRB101 04451 SMS 61506 a
1class 1 brewer license or a class 2 brewer license. If the
2holder of the permit is a class 1 brewer licensee, the brewer
3warehouse permit shall allow the holder to store or warehouse
4up to 930,000 gallons of tax-determined beer manufactured by
5the holder of the permit at the premises specified on the
6permit. If the holder of the permit is a class 2 brewer
7licensee, the brewer warehouse permit shall allow the holder to
8store or warehouse up to 3,720,000 gallons of tax-determined
9beer manufactured by the holder of the permit at the premises
10specified on the permit. Sales to non-licensees are prohibited
11at the premises specified in the brewer warehouse permit.
12(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
1399-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
141-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,
15eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;
16revised 10-2-18.)
17 (235 ILCS 5/6-30) (from Ch. 43, par. 144f)
18 Sec. 6-30. Notwithstanding any other provision of this Act,
19the Illinois Gaming Board shall have exclusive authority to
20establish the hours for sale and consumption of alcoholic
21liquor on board a riverboat during riverboat gambling
22excursions and in a casino conducted in accordance with the
23Illinois Riverboat Gambling Act.
24(Source: P.A. 87-826.)

10100SB0690ham002- 688 -LRB101 04451 SMS 61506 a
1 Section 35-70. The Illinois Public Aid Code is amended by
2changing Section 10-17.15 as follows:
3 (305 ILCS 5/10-17.15)
4 Sec. 10-17.15. Certification of information to State
5gaming licensees.
6 (a) For purposes of this Section, "State gaming licensee"
7means, as applicable, an organization licensee or advance
8deposit wagering licensee licensed under the Illinois Horse
9Racing Act of 1975, an owners licensee licensed under the
10Illinois Riverboat Gambling Act, or a licensee that operates,
11under any law of this State, one or more facilities or gaming
12locations at which lawful gambling is authorized and licensed
13as provided in the Illinois Riverboat Gambling Act.
14 (b) The Department may provide, by rule, for certification
15to any State gaming licensee of past due child support owed by
16a responsible relative under a support order entered by a court
17or administrative body of this or any other State on behalf of
18a resident or non-resident receiving child support services
19under this Article in accordance with the requirements of Title
20IV-D, Part D, of the Social Security Act. The State gaming
21licensee shall have the ability to withhold from winnings
22required to be reported to the Internal Revenue Service on Form
23W-2G, up to the full amount of winnings necessary to pay the
24winner's past due child support. The rule shall provide for
25notice to and an opportunity to be heard by each responsible

10100SB0690ham002- 689 -LRB101 04451 SMS 61506 a
1relative affected and any final administrative decision
2rendered by the Department shall be reviewed only under and in
3accordance with the Administrative Review Law.
4 (c) For withholding of winnings, the State gaming licensee
5shall be entitled to an administrative fee not to exceed the
6lesser of 4% of the total amount of cash winnings paid to the
7gambling winner or $150.
8 (d) In no event may the total amount withheld from the cash
9payout, including the administrative fee, exceed the total cash
10winnings claimed by the obligor. If the cash payout claimed is
11greater than the amount sufficient to satisfy the obligor's
12delinquent child support payments, the State gaming licensee
13shall pay the obligor the remaining balance of the payout, less
14the administrative fee authorized by subsection (c) of this
15Section, at the time it is claimed.
16 (e) A State gaming licensee who in good faith complies with
17the requirements of this Section shall not be liable to the
18gaming winner or any other individual or entity.
19(Source: P.A. 98-318, eff. 8-12-13.)
20 Section 35-75. The Firearm Concealed Carry Act is amended
21by changing Section 65 as follows:
22 (430 ILCS 66/65)
23 Sec. 65. Prohibited areas.
24 (a) A licensee under this Act shall not knowingly carry a

10100SB0690ham002- 690 -LRB101 04451 SMS 61506 a
1firearm on or into:
2 (1) Any building, real property, and parking area under
3 the control of a public or private elementary or secondary
4 school.
5 (2) Any building, real property, and parking area under
6 the control of a pre-school or child care facility,
7 including any room or portion of a building under the
8 control of a pre-school or child care facility. Nothing in
9 this paragraph shall prevent the operator of a child care
10 facility in a family home from owning or possessing a
11 firearm in the home or license under this Act, if no child
12 under child care at the home is present in the home or the
13 firearm in the home is stored in a locked container when a
14 child under child care at the home is present in the home.
15 (3) Any building, parking area, or portion of a
16 building under the control of an officer of the executive
17 or legislative branch of government, provided that nothing
18 in this paragraph shall prohibit a licensee from carrying a
19 concealed firearm onto the real property, bikeway, or trail
20 in a park regulated by the Department of Natural Resources
21 or any other designated public hunting area or building
22 where firearm possession is permitted as established by the
23 Department of Natural Resources under Section 1.8 of the
24 Wildlife Code.
25 (4) Any building designated for matters before a
26 circuit court, appellate court, or the Supreme Court, or

10100SB0690ham002- 691 -LRB101 04451 SMS 61506 a
1 any building or portion of a building under the control of
2 the Supreme Court.
3 (5) Any building or portion of a building under the
4 control of a unit of local government.
5 (6) Any building, real property, and parking area under
6 the control of an adult or juvenile detention or
7 correctional institution, prison, or jail.
8 (7) Any building, real property, and parking area under
9 the control of a public or private hospital or hospital
10 affiliate, mental health facility, or nursing home.
11 (8) Any bus, train, or form of transportation paid for
12 in whole or in part with public funds, and any building,
13 real property, and parking area under the control of a
14 public transportation facility paid for in whole or in part
15 with public funds.
16 (9) Any building, real property, and parking area under
17 the control of an establishment that serves alcohol on its
18 premises, if more than 50% of the establishment's gross
19 receipts within the prior 3 months is from the sale of
20 alcohol. The owner of an establishment who knowingly fails
21 to prohibit concealed firearms on its premises as provided
22 in this paragraph or who knowingly makes a false statement
23 or record to avoid the prohibition on concealed firearms
24 under this paragraph is subject to the penalty under
25 subsection (c-5) of Section 10-1 of the Liquor Control Act
26 of 1934.

10100SB0690ham002- 692 -LRB101 04451 SMS 61506 a
1 (10) Any public gathering or special event conducted on
2 property open to the public that requires the issuance of a
3 permit from the unit of local government, provided this
4 prohibition shall not apply to a licensee who must walk
5 through a public gathering in order to access his or her
6 residence, place of business, or vehicle.
7 (11) Any building or real property that has been issued
8 a Special Event Retailer's license as defined in Section
9 1-3.17.1 of the Liquor Control Act during the time
10 designated for the sale of alcohol by the Special Event
11 Retailer's license, or a Special use permit license as
12 defined in subsection (q) of Section 5-1 of the Liquor
13 Control Act during the time designated for the sale of
14 alcohol by the Special use permit license.
15 (12) Any public playground.
16 (13) Any public park, athletic area, or athletic
17 facility under the control of a municipality or park
18 district, provided nothing in this Section shall prohibit a
19 licensee from carrying a concealed firearm while on a trail
20 or bikeway if only a portion of the trail or bikeway
21 includes a public park.
22 (14) Any real property under the control of the Cook
23 County Forest Preserve District.
24 (15) Any building, classroom, laboratory, medical
25 clinic, hospital, artistic venue, athletic venue,
26 entertainment venue, officially recognized

10100SB0690ham002- 693 -LRB101 04451 SMS 61506 a
1 university-related organization property, whether owned or
2 leased, and any real property, including parking areas,
3 sidewalks, and common areas under the control of a public
4 or private community college, college, or university.
5 (16) Any building, real property, or parking area under
6 the control of a gaming facility licensed under the
7 Illinois Riverboat Gambling Act or the Illinois Horse
8 Racing Act of 1975, including an inter-track wagering
9 location licensee.
10 (17) Any stadium, arena, or the real property or
11 parking area under the control of a stadium, arena, or any
12 collegiate or professional sporting event.
13 (18) Any building, real property, or parking area under
14 the control of a public library.
15 (19) Any building, real property, or parking area under
16 the control of an airport.
17 (20) Any building, real property, or parking area under
18 the control of an amusement park.
19 (21) Any building, real property, or parking area under
20 the control of a zoo or museum.
21 (22) Any street, driveway, parking area, property,
22 building, or facility, owned, leased, controlled, or used
23 by a nuclear energy, storage, weapons, or development site
24 or facility regulated by the federal Nuclear Regulatory
25 Commission. The licensee shall not under any circumstance
26 store a firearm or ammunition in his or her vehicle or in a

10100SB0690ham002- 694 -LRB101 04451 SMS 61506 a
1 compartment or container within a vehicle located anywhere
2 in or on the street, driveway, parking area, property,
3 building, or facility described in this paragraph.
4 (23) Any area where firearms are prohibited under
5 federal law.
6 (a-5) Nothing in this Act shall prohibit a public or
7private community college, college, or university from:
8 (1) prohibiting persons from carrying a firearm within
9 a vehicle owned, leased, or controlled by the college or
10 university;
11 (2) developing resolutions, regulations, or policies
12 regarding student, employee, or visitor misconduct and
13 discipline, including suspension and expulsion;
14 (3) developing resolutions, regulations, or policies
15 regarding the storage or maintenance of firearms, which
16 must include designated areas where persons can park
17 vehicles that carry firearms; and
18 (4) permitting the carrying or use of firearms for the
19 purpose of instruction and curriculum of officially
20 recognized programs, including but not limited to military
21 science and law enforcement training programs, or in any
22 designated area used for hunting purposes or target
23 shooting.
24 (a-10) The owner of private real property of any type may
25prohibit the carrying of concealed firearms on the property
26under his or her control. The owner must post a sign in

10100SB0690ham002- 695 -LRB101 04451 SMS 61506 a
1accordance with subsection (d) of this Section indicating that
2firearms are prohibited on the property, unless the property is
3a private residence.
4 (b) Notwithstanding subsections (a), (a-5), and (a-10) of
5this Section except under paragraph (22) or (23) of subsection
6(a), any licensee prohibited from carrying a concealed firearm
7into the parking area of a prohibited location specified in
8subsection (a), (a-5), or (a-10) of this Section shall be
9permitted to carry a concealed firearm on or about his or her
10person within a vehicle into the parking area and may store a
11firearm or ammunition concealed in a case within a locked
12vehicle or locked container out of plain view within the
13vehicle in the parking area. A licensee may carry a concealed
14firearm in the immediate area surrounding his or her vehicle
15within a prohibited parking lot area only for the limited
16purpose of storing or retrieving a firearm within the vehicle's
17trunk. For purposes of this subsection, "case" includes a glove
18compartment or console that completely encloses the concealed
19firearm or ammunition, the trunk of the vehicle, or a firearm
20carrying box, shipping box, or other container.
21 (c) A licensee shall not be in violation of this Section
22while he or she is traveling along a public right of way that
23touches or crosses any of the premises under subsection (a),
24(a-5), or (a-10) of this Section if the concealed firearm is
25carried on his or her person in accordance with the provisions
26of this Act or is being transported in a vehicle by the

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1licensee in accordance with all other applicable provisions of
2law.
3 (d) Signs stating that the carrying of firearms is
4prohibited shall be clearly and conspicuously posted at the
5entrance of a building, premises, or real property specified in
6this Section as a prohibited area, unless the building or
7premises is a private residence. Signs shall be of a uniform
8design as established by the Department and shall be 4 inches
9by 6 inches in size. The Department shall adopt rules for
10standardized signs to be used under this subsection.
11(Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)
12 Section 35-80. The Criminal Code of 2012 is amended by
13changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as
14follows:
15 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
16 Sec. 28-1. Gambling.
17 (a) A person commits gambling when he or she:
18 (1) knowingly plays a game of chance or skill for money
19 or other thing of value, unless excepted in subsection (b)
20 of this Section;
21 (2) knowingly makes a wager upon the result of any
22 game, contest, or any political nomination, appointment or
23 election;
24 (3) knowingly operates, keeps, owns, uses, purchases,

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

10100SB0690ham002- 698 -LRB101 04451 SMS 61506 a
1 (6) knowingly sells pools upon the result of any game
2 or contest of skill or chance, political nomination,
3 appointment or election;
4 (7) knowingly sets up or promotes any lottery or sells,
5 offers to sell or transfers any ticket or share for any
6 lottery;
7 (8) knowingly sets up or promotes any policy game or
8 sells, offers to sell or knowingly possesses or transfers
9 any policy ticket, slip, record, document or other similar
10 device;
11 (9) knowingly drafts, prints or publishes any lottery
12 ticket or share, or any policy ticket, slip, record,
13 document or similar device, except for such activity
14 related to lotteries, bingo games and raffles authorized by
15 and conducted in accordance with the laws of Illinois or
16 any other state or foreign government;
17 (10) knowingly advertises any lottery or policy game,
18 except for such activity related to lotteries, bingo games
19 and raffles authorized by and conducted in accordance with
20 the laws of Illinois or any other state;
21 (11) knowingly transmits information as to wagers,
22 betting odds, or changes in betting odds by telephone,
23 telegraph, radio, semaphore or similar means; or knowingly
24 installs or maintains equipment for the transmission or
25 receipt of such information; except that nothing in this
26 subdivision (11) prohibits transmission or receipt of such

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1 information for use in news reporting of sporting events or
2 contests; or
3 (12) knowingly establishes, maintains, or operates an
4 Internet site that permits a person to play a game of
5 chance or skill for money or other thing of value by means
6 of the Internet or to make a wager upon the result of any
7 game, contest, political nomination, appointment, or
8 election by means of the Internet. This item (12) does not
9 apply to activities referenced in items (6) and (6.1) of
10 subsection (b) of this Section.
11 (b) Participants in any of the following activities shall
12not be convicted of gambling:
13 (1) Agreements to compensate for loss caused by the
14 happening of chance including without limitation contracts
15 of indemnity or guaranty and life or health or accident
16 insurance.
17 (2) Offers of prizes, award or compensation to the
18 actual contestants in any bona fide contest for the
19 determination of skill, speed, strength or endurance or to
20 the owners of animals or vehicles entered in such contest.
21 (3) Pari-mutuel betting as authorized by the law of
22 this State.
23 (4) Manufacture of gambling devices, including the
24 acquisition of essential parts therefor and the assembly
25 thereof, for transportation in interstate or foreign
26 commerce to any place outside this State when such

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

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1 Illinois Pull Tabs and Jar Games Act.
2 (11) Gambling games conducted on riverboats when
3 authorized by the Illinois Riverboat Gambling Act.
4 (12) Video gaming terminal games at a licensed
5 establishment, licensed truck stop establishment, licensed
6 fraternal establishment, or licensed veterans
7 establishment when conducted in accordance with the Video
8 Gaming Act.
9 (13) Games of skill or chance where money or other
10 things of value can be won but no payment or purchase is
11 required to participate.
12 (14) Savings promotion raffles authorized under
13 Section 5g of the Illinois Banking Act, Section 7008 of the
14 Savings Bank Act, Section 42.7 of the Illinois Credit Union
15 Act, Section 5136B of the National Bank Act (12 U.S.C.
16 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
17 1463).
18 (c) Sentence.
19 Gambling is a Class A misdemeanor. A second or subsequent
20conviction under subsections (a)(3) through (a)(12), is a Class
214 felony.
22 (d) Circumstantial evidence.
23 In prosecutions under this Section circumstantial evidence
24shall have the same validity and weight as in any criminal
25prosecution.
26(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)

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1 (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)
2 Sec. 28-1.1. Syndicated gambling.
3 (a) Declaration of Purpose. Recognizing the close
4relationship between professional gambling and other organized
5crime, it is declared to be the policy of the legislature to
6restrain persons from engaging in the business of gambling for
7profit in this State. This Section shall be liberally construed
8and administered with a view to carrying out this policy.
9 (b) A person commits syndicated gambling when he or she
10operates a "policy game" or engages in the business of
11bookmaking.
12 (c) A person "operates a policy game" when he or she
13knowingly uses any premises or property for the purpose of
14receiving or knowingly does receive from what is commonly
15called "policy":
16 (1) money from a person other than the bettor or player
17 whose bets or plays are represented by the money; or
18 (2) written "policy game" records, made or used over
19 any period of time, from a person other than the bettor or
20 player whose bets or plays are represented by the written
21 record.
22 (d) A person engages in bookmaking when he or she knowingly
23receives or accepts more than five bets or wagers upon the
24result of any trials or contests of skill, speed or power of
25endurance or upon any lot, chance, casualty, unknown or

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1contingent event whatsoever, which bets or wagers shall be of
2such size that the total of the amounts of money paid or
3promised to be paid to the bookmaker on account thereof shall
4exceed $2,000. Bookmaking is the receiving or accepting of bets
5or wagers regardless of the form or manner in which the
6bookmaker records them.
7 (e) Participants in any of the following activities shall
8not be convicted of syndicated gambling:
9 (1) Agreements to compensate for loss caused by the
10 happening of chance including without limitation contracts
11 of indemnity or guaranty and life or health or accident
12 insurance;
13 (2) Offers of prizes, award or compensation to the
14 actual contestants in any bona fide contest for the
15 determination of skill, speed, strength or endurance or to
16 the owners of animals or vehicles entered in the contest;
17 (3) Pari-mutuel betting as authorized by law of this
18 State;
19 (4) Manufacture of gambling devices, including the
20 acquisition of essential parts therefor and the assembly
21 thereof, for transportation in interstate or foreign
22 commerce to any place outside this State when the
23 transportation is not prohibited by any applicable Federal
24 law;
25 (5) Raffles and poker runs when conducted in accordance
26 with the Raffles and Poker Runs Act;

10100SB0690ham002- 704 -LRB101 04451 SMS 61506 a
1 (6) Gambling games conducted on riverboats, in
2 casinos, or at organization gaming facilities when
3 authorized by the Illinois Riverboat Gambling Act;
4 (7) Video gaming terminal games at a licensed
5 establishment, licensed truck stop establishment, licensed
6 fraternal establishment, or licensed veterans
7 establishment when conducted in accordance with the Video
8 Gaming Act; and
9 (8) Savings promotion raffles authorized under Section
10 5g of the Illinois Banking Act, Section 7008 of the Savings
11 Bank Act, Section 42.7 of the Illinois Credit Union Act,
12 Section 5136B of the National Bank Act (12 U.S.C. 25a), or
13 Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).
14 (f) Sentence. Syndicated gambling is a Class 3 felony.
15(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
16 (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
17 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
18any real estate, vehicle, boat or any other property whatsoever
19used for the purposes of gambling other than gambling conducted
20in the manner authorized by the Illinois Riverboat Gambling Act
21or the Video Gaming Act. Any person who knowingly permits any
22premises or property owned or occupied by him or under his
23control to be used as a gambling place commits a Class A
24misdemeanor. Each subsequent offense is a Class 4 felony. When
25any premises is determined by the circuit court to be a

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1gambling place:
2 (a) Such premises is a public nuisance and may be proceeded
3against as such, and
4 (b) All licenses, permits or certificates issued by the
5State of Illinois or any subdivision or public agency thereof
6authorizing the serving of food or liquor on such premises
7shall be void; and no license, permit or certificate so
8cancelled shall be reissued for such premises for a period of
960 days thereafter; nor shall any person convicted of keeping a
10gambling place be reissued such license for one year from his
11conviction and, after a second conviction of keeping a gambling
12place, any such person shall not be reissued such license, and
13 (c) Such premises of any person who knowingly permits
14thereon a violation of any Section of this Article shall be
15held liable for, and may be sold to pay any unsatisfied
16judgment that may be recovered and any unsatisfied fine that
17may be levied under any Section of this Article.
18(Source: P.A. 96-34, eff. 7-13-09.)
19 (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
20 Sec. 28-5. Seizure of gambling devices and gambling funds.
21 (a) Every device designed for gambling which is incapable
22of lawful use or every device used unlawfully for gambling
23shall be considered a "gambling device", and shall be subject
24to seizure, confiscation and destruction by the Department of
25State Police or by any municipal, or other local authority,

10100SB0690ham002- 706 -LRB101 04451 SMS 61506 a
1within whose jurisdiction the same may be found. As used in
2this Section, a "gambling device" includes any slot machine,
3and includes any machine or device constructed for the
4reception of money or other thing of value and so constructed
5as to return, or to cause someone to return, on chance to the
6player thereof money, property or a right to receive money or
7property. With the exception of any device designed for
8gambling which is incapable of lawful use, no gambling device
9shall be forfeited or destroyed unless an individual with a
10property interest in said device knows of the unlawful use of
11the device.
12 (b) Every gambling device shall be seized and forfeited to
13the county wherein such seizure occurs. Any money or other
14thing of value integrally related to acts of gambling shall be
15seized and forfeited to the county wherein such seizure occurs.
16 (c) If, within 60 days after any seizure pursuant to
17subparagraph (b) of this Section, a person having any property
18interest in the seized property is charged with an offense, the
19court which renders judgment upon such charge shall, within 30
20days after such judgment, conduct a forfeiture hearing to
21determine whether such property was a gambling device at the
22time of seizure. Such hearing shall be commenced by a written
23petition by the State, including material allegations of fact,
24the name and address of every person determined by the State to
25have any property interest in the seized property, a
26representation that written notice of the date, time and place

10100SB0690ham002- 707 -LRB101 04451 SMS 61506 a
1of such hearing has been mailed to every such person by
2certified mail at least 10 days before such date, and a request
3for forfeiture. Every such person may appear as a party and
4present evidence at such hearing. The quantum of proof required
5shall be a preponderance of the evidence, and the burden of
6proof shall be on the State. If the court determines that the
7seized property was a gambling device at the time of seizure,
8an order of forfeiture and disposition of the seized property
9shall be entered: a gambling device shall be received by the
10State's Attorney, who shall effect its destruction, except that
11valuable parts thereof may be liquidated and the resultant
12money shall be deposited in the general fund of the county
13wherein such seizure occurred; money and other things of value
14shall be received by the State's Attorney and, upon
15liquidation, shall be deposited in the general fund of the
16county wherein such seizure occurred. However, in the event
17that a defendant raises the defense that the seized slot
18machine is an antique slot machine described in subparagraph
19(b) (7) of Section 28-1 of this Code and therefore he is exempt
20from the charge of a gambling activity participant, the seized
21antique slot machine shall not be destroyed or otherwise
22altered until a final determination is made by the Court as to
23whether it is such an antique slot machine. Upon a final
24determination by the Court of this question in favor of the
25defendant, such slot machine shall be immediately returned to
26the defendant. Such order of forfeiture and disposition shall,

10100SB0690ham002- 708 -LRB101 04451 SMS 61506 a
1for the purposes of appeal, be a final order and judgment in a
2civil proceeding.
3 (d) If a seizure pursuant to subparagraph (b) of this
4Section is not followed by a charge pursuant to subparagraph
5(c) of this Section, or if the prosecution of such charge is
6permanently terminated or indefinitely discontinued without
7any judgment of conviction or acquittal (1) the State's
8Attorney shall commence an in rem proceeding for the forfeiture
9and destruction of a gambling device, or for the forfeiture and
10deposit in the general fund of the county of any seized money
11or other things of value, or both, in the circuit court and (2)
12any person having any property interest in such seized gambling
13device, money or other thing of value may commence separate
14civil proceedings in the manner provided by law.
15 (e) Any gambling device displayed for sale to a riverboat
16gambling operation, casino gambling operation, or organization
17gaming facility or used to train occupational licensees of a
18riverboat gambling operation, casino gambling operation, or
19organization gaming facility as authorized under the Illinois
20Riverboat Gambling Act is exempt from seizure under this
21Section.
22 (f) Any gambling equipment, devices, and supplies provided
23by a licensed supplier in accordance with the Illinois
24Riverboat Gambling Act which are removed from a the riverboat,
25casino, or organization gaming facility for repair are exempt
26from seizure under this Section.

10100SB0690ham002- 709 -LRB101 04451 SMS 61506 a
1 (g) The following video gaming terminals are exempt from
2seizure under this Section:
3 (1) Video gaming terminals for sale to a licensed
4 distributor or operator under the Video Gaming Act.
5 (2) Video gaming terminals used to train licensed
6 technicians or licensed terminal handlers.
7 (3) Video gaming terminals that are removed from a
8 licensed establishment, licensed truck stop establishment,
9 licensed fraternal establishment, or licensed veterans
10 establishment for repair.
11 (h) Property seized or forfeited under this Section is
12subject to reporting under the Seizure and Forfeiture Reporting
13Act.
14(Source: P.A. 100-512, eff. 7-1-18.)
15 (720 ILCS 5/28-7) (from Ch. 38, par. 28-7)
16 Sec. 28-7. Gambling contracts void.
17 (a) All promises, notes, bills, bonds, covenants,
18contracts, agreements, judgments, mortgages, or other
19securities or conveyances made, given, granted, drawn, or
20entered into, or executed by any person whatsoever, where the
21whole or any part of the consideration thereof is for any money
22or thing of value, won or obtained in violation of any Section
23of this Article are null and void.
24 (b) Any obligation void under this Section may be set aside
25and vacated by any court of competent jurisdiction, upon a

10100SB0690ham002- 710 -LRB101 04451 SMS 61506 a
1complaint filed for that purpose, by the person so granting,
2giving, entering into, or executing the same, or by his
3executors or administrators, or by any creditor, heir, legatee,
4purchaser or other person interested therein; or if a judgment,
5the same may be set aside on motion of any person stated above,
6on due notice thereof given.
7 (c) No assignment of any obligation void under this Section
8may in any manner affect the defense of the person giving,
9granting, drawing, entering into or executing such obligation,
10or the remedies of any person interested therein.
11 (d) This Section shall not prevent a licensed owner of a
12riverboat gambling operation, a casino gambling operation, or
13an organization gaming licensee under the Illinois Gambling Act
14and the Illinois Horse Racing Act of 1975 from instituting a
15cause of action to collect any amount due and owing under an
16extension of credit to a riverboat gambling patron as
17authorized under Section 11.1 of the Illinois Riverboat
18Gambling Act.
19(Source: P.A. 87-826.)
20 Section 35-85. The Payday Loan Reform Act is amended by
21changing Section 3-5 as follows:
22 (815 ILCS 122/3-5)
23 Sec. 3-5. Licensure.
24 (a) A license to make a payday loan shall state the

10100SB0690ham002- 711 -LRB101 04451 SMS 61506 a
1address, including city and state, at which the business is to
2be conducted and shall state fully the name of the licensee.
3The license shall be conspicuously posted in the place of
4business of the licensee and shall not be transferable or
5assignable.
6 (b) An application for a license shall be in writing and in
7a form prescribed by the Secretary. The Secretary may not issue
8a payday loan license unless and until the following findings
9are made:
10 (1) that the financial responsibility, experience,
11 character, and general fitness of the applicant are such as
12 to command the confidence of the public and to warrant the
13 belief that the business will be operated lawfully and
14 fairly and within the provisions and purposes of this Act;
15 and
16 (2) that the applicant has submitted such other
17 information as the Secretary may deem necessary.
18 (c) A license shall be issued for no longer than one year,
19and no renewal of a license may be provided if a licensee has
20substantially violated this Act and has not cured the violation
21to the satisfaction of the Department.
22 (d) A licensee shall appoint, in writing, the Secretary as
23attorney-in-fact upon whom all lawful process against the
24licensee may be served with the same legal force and validity
25as if served on the licensee. A copy of the written
26appointment, duly certified, shall be filed in the office of

10100SB0690ham002- 712 -LRB101 04451 SMS 61506 a
1the Secretary, and a copy thereof certified by the Secretary
2shall be sufficient evidence to subject a licensee to
3jurisdiction in a court of law. This appointment shall remain
4in effect while any liability remains outstanding in this State
5against the licensee. When summons is served upon the Secretary
6as attorney-in-fact for a licensee, the Secretary shall
7immediately notify the licensee by registered mail, enclosing
8the summons and specifying the hour and day of service.
9 (e) A licensee must pay an annual fee of $1,000. In
10addition to the license fee, the reasonable expense of any
11examination or hearing by the Secretary under any provisions of
12this Act shall be borne by the licensee. If a licensee fails to
13renew its license by December 1, its license shall
14automatically expire; however, the Secretary, in his or her
15discretion, may reinstate an expired license upon:
16 (1) payment of the annual fee within 30 days of the
17 date of expiration; and
18 (2) proof of good cause for failure to renew.
19 (f) Not more than one place of business shall be maintained
20under the same license, but the Secretary may issue more than
21one license to the same licensee upon compliance with all the
22provisions of this Act governing issuance of a single license.
23The location, except those locations already in existence as of
24June 1, 2005, may not be within one mile of a horse race track
25subject to the Illinois Horse Racing Act of 1975, within one
26mile of a facility at which gambling is conducted under the

10100SB0690ham002- 713 -LRB101 04451 SMS 61506 a
1Illinois Riverboat Gambling Act, within one mile of the
2location at which a riverboat subject to the Illinois Riverboat
3Gambling Act docks, or within one mile of any State of Illinois
4or United States military base or naval installation.
5 (g) No licensee shall conduct the business of making loans
6under this Act within any office, suite, room, or place of
7business in which (1) any loans are offered or made under the
8Consumer Installment Loan Act other than title secured loans as
9defined in subsection (a) of Section 15 of the Consumer
10Installment Loan Act and governed by Title 38, Section 110.330
11of the Illinois Administrative Code or (2) any other business
12is solicited or engaged in unless the other business is
13licensed by the Department or, in the opinion of the Secretary,
14the other business would not be contrary to the best interests
15of consumers and is authorized by the Secretary in writing.
16 (g-5) Notwithstanding subsection (g) of this Section, a
17licensee may obtain a license under the Consumer Installment
18Loan Act (CILA) for the exclusive purpose and use of making
19title secured loans, as defined in subsection (a) of Section 15
20of CILA and governed by Title 38, Section 110.300 of the
21Illinois Administrative Code. A licensee may continue to
22service Consumer Installment Loan Act loans that were
23outstanding as of the effective date of this amendatory Act of
24the 96th General Assembly.
25 (h) The Secretary shall maintain a list of licensees that
26shall be available to interested consumers and lenders and the

10100SB0690ham002- 714 -LRB101 04451 SMS 61506 a
1public. The Secretary shall maintain a toll-free number whereby
2consumers may obtain information about licensees. The
3Secretary shall also establish a complaint process under which
4an aggrieved consumer may file a complaint against a licensee
5or non-licensee who violates any provision of this Act.
6(Source: P.A. 100-958, eff. 8-19-18.)
7 Section 35-90. The Travel Promotion Consumer Protection
8Act is amended by changing Section 2 as follows:
9 (815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)
10 Sec. 2. Definitions.
11 (a) "Travel promoter" means a person, including a tour
12operator, who sells, provides, furnishes, contracts for,
13arranges or advertises that he or she will arrange wholesale or
14retail transportation by air, land, sea or navigable stream,
15either separately or in conjunction with other services.
16"Travel promoter" does not include (1) an air carrier; (2) a
17sea carrier; (3) an officially appointed agent of an air
18carrier who is a member in good standing of the Airline
19Reporting Corporation; (4) a travel promoter who has in force
20$1,000,000 or more of liability insurance coverage for
21professional errors and omissions and a surety bond or
22equivalent surety in the amount of $100,000 or more for the
23benefit of consumers in the event of a bankruptcy on the part
24of the travel promoter; or (5) a riverboat subject to

10100SB0690ham002- 715 -LRB101 04451 SMS 61506 a
1regulation under the Illinois Riverboat Gambling Act.
2 (b) "Advertise" means to make any representation in the
3solicitation of passengers and includes communication with
4other members of the same partnership, corporation, joint
5venture, association, organization, group or other entity.
6 (c) "Passenger" means a person on whose behalf money or
7other consideration has been given or is to be given to
8another, including another member of the same partnership,
9corporation, joint venture, association, organization, group
10or other entity, for travel.
11 (d) "Ticket or voucher" means a writing or combination of
12writings which is itself good and sufficient to obtain
13transportation and other services for which the passenger has
14contracted.
15(Source: P.A. 91-357, eff. 7-29-99.)
16 (30 ILCS 105/5.490 rep.)
17 Section 35-95. The State Finance Act is amended by
18repealing Section 5.490.
19 (230 ILCS 5/2.1 rep.)
20 (230 ILCS 5/54 rep.)
21 Section 35-100. The Illinois Horse Racing Act of 1975 is
22amended by repealing Sections 2.1 and 54.
23
Article 99. Severability; Effective Date

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1 Section 99-95. No acceleration or delay. Where this Act
2makes changes in a statute that is represented in this Act by
3text that is not yet or no longer in effect (for example, a
4Section represented by multiple versions), the use of that text
5does not accelerate or delay the taking effect of (i) the
6changes made by this Act or (ii) provisions derived from any
7other Public Act.
8 Section 99-97. Severability. The provisions of this Act are
9severable under Section 1.31 of the Statute on Statutes.
10 Section 99-99. Effective date. This Act takes effect upon
11becoming law, except that the changes made to Section 2 of the
12Use Tax Act take effect on January 1, 2020.".