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1 | | "Casino Board" means the board appointed pursuant to this |
2 | | Act to govern and control
the Authority. |
3 | | "Casino management contract" means a legally binding
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4 | | agreement between the Authority and a casino operator licensee |
5 | | to operate or manage a casino. |
6 | | "Casino operator licensee" means any person or entity |
7 | | selected by the Authority and approved and licensed by the |
8 | | Gaming Board to manage and operate a casino within the City of |
9 | | Chicago pursuant to a casino management contract. |
10 | | "City" means the City of Chicago.
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11 | | "Executive director" means the person appointed by the |
12 | | Casino Board to oversee the
daily operations of the Authority.
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13 | | "Gaming Board" means the Illinois Gaming Board created by |
14 | | the Illinois Gambling Act.
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15 | | "Mayor" means the Mayor of the City.
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16 | | Section 1-12. Creation of the Authority. There is hereby |
17 | | created a political subdivision, unit of local government with |
18 | | only the powers authorized by law, body politic, and municipal |
19 | | corporation, by the name and style of the Chicago Casino |
20 | | Development Authority.
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21 | | Section 1-13. Duties of the Authority. It shall be the duty |
22 | | of the Authority, as an owners licensee under the Illinois |
23 | | Gambling Act, to promote and maintain a casino in the City. The |
24 | | Authority shall own, acquire, construct, lease, equip, and |
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1 | | maintain grounds, buildings, and facilities for that purpose. |
2 | | However, the Authority shall contract with a casino operator |
3 | | licensee to manage and operate the casino and in no event shall |
4 | | the Authority or City manage or operate the casino. The |
5 | | Authority may contract pursuant to the procedures set forth in |
6 | | Section 1-115 with other third parties in order to fulfill its |
7 | | purpose. The Authority is responsible for the payment of any |
8 | | fees required of a casino operator under subsection (a) of |
9 | | Section 7.8 of the Illinois Gambling Act if the casino operator |
10 | | licensee is late in paying any such fees. The Authority is |
11 | | granted all rights and powers necessary to perform such duties. |
12 | | Subject to the provisions of this Act, the Authority and casino |
13 | | operator licensee are subject to the Illinois Gambling Act and |
14 | | all of the rules of the Gaming Board, which shall be applied to |
15 | | the Authority and the casino operator licensee in a manner |
16 | | consistent with that of other owners licensees under the |
17 | | Illinois Gambling Act.
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18 | | Section 1-15. Casino Board. |
19 | | (a) The governing and administrative powers of the |
20 | | Authority shall be vested
in a body known as the Chicago Casino |
21 | | Development Board. The Casino Board shall
consist of 5 members |
22 | | appointed by the Mayor. One of these
members shall be |
23 | | designated
by the Mayor to serve as chairperson.
All of the |
24 | | members
appointed by the Mayor shall be residents of the City. |
25 | | Each Casino Board appointee shall be subject to a |
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1 | | preliminary background investigation completed by the Gaming |
2 | | Board within 30 days after the appointee's submission of his or |
3 | | her application to the Gaming Board. If the Gaming Board |
4 | | determines that there is a substantial likelihood that it will |
5 | | not find the appointee to be suitable to serve on the Casino |
6 | | Board (applying similar standards for suitability to the |
7 | | appointee as the Gaming Board would apply to a member of a |
8 | | board of directors of a corporate owners licensee under the |
9 | | Illinois Gambling Act), then the Gaming Board shall provide a |
10 | | written notice of such determination to the appointee and the |
11 | | Corporation Counsel of the City. If no such notice is delivered |
12 | | with respect to a particular appointee, then commencing on the |
13 | | 31st day following the date of the appointee's submission of |
14 | | his or her application to the Gaming Board, the appointee shall |
15 | | be deemed an acting member of the Casino Board and shall |
16 | | participate as a Casino Board member. |
17 | | Each appointee shall be subject to a full background |
18 | | investigation and final approval by the Gaming Board prior to |
19 | | the opening of the casino. The Gaming Board shall complete its |
20 | | full background investigation of the Casino Board appointee |
21 | | within 3 months after the date of the appointee's submission of |
22 | | his or her application to the Gaming Board. If the Gaming Board |
23 | | does not complete its background investigation within the |
24 | | 3-month period, then the Gaming Board shall give a written |
25 | | explanation to the appointee, as well as the Mayor, the |
26 | | Governor, the President of the Senate, and the Speaker of the |
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1 | | House of Representatives, as to why it has not reached a final |
2 | | determination and set forth a reasonable time when such |
3 | | determination shall be made.
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4 | | (b) Casino Board members shall receive $300 for each day |
5 | | the Authority meets and
shall be entitled to reimbursement of |
6 | | reasonable expenses incurred in the
performance of their |
7 | | official duties. A Casino Board member who serves in the office
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8 | | of secretary-treasurer may also receive compensation for |
9 | | services provided
as that officer.
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10 | | Section 1-20. Terms of appointments; resignation and |
11 | | removal. |
12 | | (a) The Mayor shall appoint 2 members of the Casino Board |
13 | | for an initial term expiring July 1 of the year following final |
14 | | approval by the Gaming Board, 2 members for an initial term |
15 | | expiring July 1 three years following final approval by the |
16 | | Gaming Board, and one member for an initial term expiring July |
17 | | 1 five years following final approval by the Gaming Board.
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18 | | (b) All successors shall be appointed by the Mayor to hold |
19 | | office for a term of 5 years from the first day of July of the |
20 | | year in which they are appointed, except in the case of an |
21 | | appointment to fill a vacancy. Each member, including the |
22 | | chairperson, shall hold office until the expiration of his or |
23 | | her term and until his or her successor is appointed and |
24 | | qualified. Nothing shall preclude a member from serving |
25 | | consecutive terms. Any member may resign from office, to take |
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1 | | effect when a successor has been appointed and qualified. A |
2 | | vacancy in office shall occur in the case of a member's death |
3 | | or indictment, conviction, or plea of guilty to a felony. A |
4 | | vacancy shall be filled for the unexpired term by the Mayor |
5 | | subject to the approval of the Gaming Board as provided in this |
6 | | Section.
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7 | | (c) Members of the Casino Board shall serve at the pleasure |
8 | | of the Mayor. The Mayor or the Gaming Board may remove any |
9 | | member of the Casino Board upon a finding of incompetence, |
10 | | neglect of duty, or misfeasance or malfeasance in office or for |
11 | | a violation of this Act. The Gaming Board may remove any member |
12 | | of the Casino Board for any violation of the Illinois Gambling |
13 | | Act or the rules and regulations of the Gaming Board.
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14 | | (d) No member of the Casino Board shall engage in any |
15 | | political activity. For the purpose of this Section, "political |
16 | | activity" means any activity in support of or in connection |
17 | | with any campaign for federal, State, or local elective office |
18 | | or any political organization, but does not include activities |
19 | | (i) relating to the support or opposition of any executive, |
20 | | legislative, or administrative action, as those terms are |
21 | | defined in Section 2 of the Lobbyist Registration Act, (ii) |
22 | | relating to collective bargaining, or (iii) that are otherwise |
23 | | in furtherance of the person's official duties or governmental |
24 | | and public service functions.
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25 | | Section 1-25. Organization of Casino Board; meetings. |
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1 | | After appointment by the Mayor, the Casino Board shall organize |
2 | | for the transaction of business, provided that the Casino Board |
3 | | shall not take any formal action until after the Gaming Board |
4 | | has completed its preliminary background investigation of at |
5 | | least a quorum of the Casino Board as provided in subsection |
6 | | (a) of Section 1-15. The Casino Board shall prescribe the time |
7 | | and place for meetings, the manner in which special meetings |
8 | | may be called, and the notice that must be given to members. |
9 | | All actions and meetings of the Casino Board shall be subject |
10 | | to the provisions of the Open Meetings Act. Three members of |
11 | | the Casino Board shall constitute a quorum. All substantive |
12 | | action of the Casino Board shall be by resolution with an |
13 | | affirmative vote of a majority of the members.
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14 | | Section 1-30. Executive director; officers. |
15 | | (a) The Casino Board shall appoint
an executive director, |
16 | | who shall be the chief executive officer of the
Authority. |
17 | | The executive director shall be subject to a preliminary |
18 | | background investigation to be completed by the Gaming Board |
19 | | within 30 days after the executive director's submission of his |
20 | | or her application to the Gaming Board. If the Gaming Board |
21 | | determines that there is a substantial likelihood that it will |
22 | | not find the executive director to be suitable to serve in that |
23 | | position (applying similar standards for suitability as the |
24 | | Gaming Board would apply to a member of a board of directors of |
25 | | a corporate owners licensee under the Illinois Gambling Act), |
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1 | | then the Gaming Board shall provide a written notice of such |
2 | | determination to the appointee and the Corporation Counsel of |
3 | | the City. If no such notice is delivered, then commencing on |
4 | | the 31st day following the date of the executive director's |
5 | | submission of his or her application to the Gaming Board, the |
6 | | executive director shall commence all duties as the acting |
7 | | executive director of the Authority. |
8 | | The executive director shall be subject to a full |
9 | | background investigation and final approval by the Gaming Board |
10 | | prior to the opening of the casino. The Gaming Board shall |
11 | | complete its full background investigation of the executive |
12 | | director within 3 months after the date of the executive |
13 | | director's submission of his or her application to the Gaming |
14 | | Board. If the Gaming Board does not complete its background |
15 | | investigation within the 3-month period, then the Gaming Board |
16 | | shall give a written explanation to the appointee, as well as |
17 | | the Mayor, the Governor, the President of the Senate, and the |
18 | | Speaker of the House of Representatives, as to why it has not |
19 | | reached a final determination and set forth a reasonable time |
20 | | when such determination shall be made.
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21 | | (b) The Casino Board shall fix the compensation of the |
22 | | executive director.
Subject to the general control of the |
23 | | Casino Board, the executive director shall be
responsible for |
24 | | the management of the business, properties, and
employees of |
25 | | the Authority. The executive director shall direct the
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26 | | enforcement of all resolutions, rules, and regulations of the |
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1 | | Casino Board, and shall
perform such other duties as may be |
2 | | prescribed from
time to time by the Casino Board. All employees |
3 | | and independent contractors,
consultants, engineers, |
4 | | architects, accountants, attorneys, financial experts,
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5 | | construction experts and personnel, superintendents, managers, |
6 | | and other
personnel appointed or employed pursuant to this Act |
7 | | shall
report to the executive director. In addition to any |
8 | | other duties set forth in
this Act, the executive director |
9 | | shall do or shall delegate to an employee or agent of the |
10 | | Authority to do all of the following:
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11 | | (1) Direct and supervise the administrative affairs |
12 | | and activities of the
Authority in accordance with its |
13 | | rules, regulations, and policies.
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14 | | (2) Attend meetings of the Casino Board.
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15 | | (3) Keep minutes of all proceedings of the Casino |
16 | | Board.
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17 | | (4) Approve all accounts for salaries, per diem |
18 | | payments, and allowable
expenses of the Casino Board and |
19 | | its employees and consultants.
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20 | | (5) Report and make recommendations to the Casino Board |
21 | | concerning the terms and
conditions of any casino |
22 | | management contract.
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23 | | (6) Perform any other duty that the Casino Board |
24 | | requires for carrying out the
provisions of this Act.
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25 | | (7) Devote his or her full time to the duties of the |
26 | | office and not hold
any other office or employment.
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1 | | (c) The Casino Board may select a secretary-treasurer and |
2 | | other officers to hold office at the pleasure of the Casino |
3 | | Board. The Casino Board
shall fix the duties of such officers.
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4 | | Section 1-31. General rights and powers of the Authority. |
5 | | (a) In addition to the duties and powers set forth in this |
6 | | Act, the Authority shall have the following rights and powers: |
7 | | (1) Adopt and alter an official seal. |
8 | | (2) Establish and change its fiscal year. |
9 | | (3) Sue and be sued, plead and be impleaded, all in its |
10 | | own name, and agree to binding arbitration of any dispute |
11 | | to which it is a party. |
12 | | (4) Adopt, amend, and repeal bylaws, rules, and |
13 | | regulations consistent with the furtherance of the powers |
14 | | and duties provided for. |
15 | | (5) Maintain its principal office within the City and |
16 | | such other offices as the Casino Board may designate. |
17 | | (6) Select locations in the City for a temporary and a |
18 | | permanent casino. |
19 | | (7) Subject to the bidding procedures of Section 1-115 |
20 | | of this Act, retain or employ, either as regular employees |
21 | | or independent contractors, consultants, engineers, |
22 | | architects, accountants, attorneys, financial experts, |
23 | | construction experts and personnel, superintendents, |
24 | | managers and other professional personnel, and such other |
25 | | personnel as may be necessary in the judgment of the Casino |
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1 | | Board, and fix their compensation; however, employees of |
2 | | the Authority shall be hired pursuant to and in accordance |
3 | | with the rules and policies the Authority may adopt. |
4 | | (8) Pursuant to Section 1-115 of this Act, own, |
5 | | acquire, construct, equip, lease, operate, manage, and |
6 | | maintain grounds, buildings, and facilities to carry out |
7 | | its corporate purposes and duties. |
8 | | (9) Pursuant to Section 1-115, and subject to the |
9 | | oversight, review, and approval of the Gaming Board, enter |
10 | | into, revoke, and modify contracts in accordance with the |
11 | | rules of the Gaming Board as consistently applied to all |
12 | | owners licensees under the Illinois Gambling Act, provided |
13 | | that the Authority may enter into contracts for the design, |
14 | | construction, and outfitting of a temporary casino prior to |
15 | | the Gaming Board's final approval of the Authority's |
16 | | executive director and the members of the Casino Board and |
17 | | prior to the Gaming Board's issuance of the Authority's |
18 | | owners license. In no event, however, shall the Authority |
19 | | open a casino until after the Gaming Board has finally |
20 | | approved the Authority's executive director and the |
21 | | members of the Casino Board and the Gaming Board has issued |
22 | | the Authority's owners license and the casino operator's |
23 | | casino operator license. |
24 | | (10) Enter into a casino management contract subject to |
25 | | the provisions of Section 1-45 of this Act. |
26 | | (11) Develop, or cause to be developed by a third |
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1 | | party, a master plan for the design, planning, and |
2 | | development of a casino. |
3 | | (12) Negotiate and enter into intergovernmental |
4 | | agreements with the State and its agencies, the City, and |
5 | | other units of local government, in furtherance of the |
6 | | powers and duties of the Casino Board. |
7 | | (13) Receive and disburse funds for its own corporate |
8 | | purposes or as otherwise specified in this Act. |
9 | | (14) Borrow money from any source, public or private, |
10 | | for any corporate purpose, including, without limitation, |
11 | | working capital for its operations, reserve funds, or |
12 | | payment of interest, and to mortgage, pledge, or otherwise |
13 | | encumber the property or funds of the Authority and to |
14 | | contract with or engage the services of any person in |
15 | | connection with any financing, including financial |
16 | | institutions, issuers of letters of credit, or insurers and |
17 | | enter into reimbursement agreements with this person or |
18 | | entity which may be secured as if money were borrowed from |
19 | | the person or entity. |
20 | | (15) Issue bonds as provided for under this Act. |
21 | | (16) Receive and accept from any source, private or |
22 | | public, contributions, gifts, or grants of money or |
23 | | property to the Authority. |
24 | | (17) Provide for the insurance of any property, |
25 | | operations, officers, members, agents, or employees of the |
26 | | Authority against any risk or hazard, to self-insure or |
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1 | | participate in joint self-insurance pools or entities to |
2 | | insure against such risk or hazard, and to provide for the |
3 | | indemnification of its officers, members, employees, |
4 | | contractors, or agents against any and all risks. |
5 | | (18) Exercise all the corporate powers granted |
6 | | Illinois corporations under the Business Corporation Act |
7 | | of 1983, except to the extent that powers are inconsistent |
8 | | with those of a body politic and municipal corporation. |
9 | | (19) Do all things necessary or convenient to carry out |
10 | | the powers granted by this Act. |
11 | | (b) The Casino Board shall comply with all applicable legal |
12 | | requirements imposed on other owners licensees to conduct all |
13 | | background investigations required under the Illinois Gambling |
14 | | Act and the rules of the Gaming Board. This requirement shall |
15 | | also extend to senior legal, financial, and administrative |
16 | | staff of the Authority.
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17 | | Section 1-32. Ethical conduct. |
18 | | (a) Casino Board members and employees of the Authority |
19 | | must carry out their duties and responsibilities in such a |
20 | | manner as to promote and preserve public trust and confidence |
21 | | in the integrity and conduct of gaming. |
22 | | (b) Except as may be required in the conduct of official |
23 | | duties, Casino Board members and employees of the Authority |
24 | | shall not engage in gambling on any riverboat, in any casino, |
25 | | or in an electronic gaming facility licensed by the Illinois |
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1 | | Gaming Board or engage in legalized gambling in any |
2 | | establishment identified by Gaming Board action that, in the |
3 | | judgment of the Gaming Board, could represent a potential for a |
4 | | conflict of interest. |
5 | | (c) A Casino Board member or employee of the Authority |
6 | | shall not use or attempt to use his or her official position to |
7 | | secure or attempt to secure any privilege, advantage, favor, or |
8 | | influence for himself or herself or others. |
9 | | (d) Casino Board members and employees of the Authority |
10 | | shall not hold or pursue employment, office, position, |
11 | | business, or occupation that may conflict with his or her |
12 | | official duties. Employees may engage in other gainful |
13 | | employment so long as that employment does not interfere or |
14 | | conflict with their duties. Such employment must be disclosed |
15 | | to the executive director and approved by the Casino Board. |
16 | | (e) Casino Board members, employees of the Authority, and |
17 | | elected officials and employees of the City may not engage in |
18 | | employment, communications, or any activity identified by the |
19 | | Casino Board or Gaming Board that, in the judgment of either |
20 | | entity, could represent the potential for or the appearance of |
21 | | a conflict of interest. |
22 | | (f) Casino Board members, employees of the Authority, and |
23 | | elected officials and employees of the City may not have a |
24 | | financial interest, directly or indirectly, in his or her own |
25 | | name or in the name of any other person, partnership, |
26 | | association, trust, corporation, or other entity in any |
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1 | | contract or subcontract for the performance of any work for the |
2 | | Authority. This prohibition shall extend to the holding or |
3 | | acquisition of an interest in any entity identified by the |
4 | | Casino Board or the Gaming Board that, in the judgment of |
5 | | either entity, could represent the potential for or the |
6 | | appearance of a financial interest. The holding or acquisition |
7 | | of an interest in such entities through an indirect means, such |
8 | | as through a mutual fund, shall not be prohibited, except that |
9 | | the Gaming Board may identify specific investments or funds |
10 | | that, in its judgment, are so influenced by gaming holdings as |
11 | | to represent the potential for or the appearance of a conflict |
12 | | of interest. |
13 | | (g) Casino Board members, employees of the Authority, and |
14 | | elected officials and employees of the City may not accept any |
15 | | gift, gratuity, service, compensation, travel, lodging, or |
16 | | thing of value, with the exception of unsolicited items of an |
17 | | incidental nature, from any person, corporation, or entity |
18 | | doing business with the Authority. |
19 | | (h) No Casino Board member, employee of the Authority, or |
20 | | elected official or employee of the City may, during employment |
21 | | or within a period of 2 years immediately after termination of |
22 | | employment, knowingly accept employment or receive |
23 | | compensation or fees for services from a person or entity, or |
24 | | its parent or affiliate, that has engaged in business with the |
25 | | Authority that resulted in contracts with an aggregate value of |
26 | | at least $25,000 or if that Casino Board member or employee has |
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1 | | made a decision that directly applied to the person or entity, |
2 | | or its parent or affiliate. |
3 | | (i) A spouse, child, or parent of a Casino Board member, |
4 | | employee of the Authority, or elected official or employee of |
5 | | the City may not have a financial interest, directly or |
6 | | indirectly, in his or her own name or in the name of any other |
7 | | person, partnership, association, trust, corporation, or other |
8 | | entity in any contract or subcontract for the performance of |
9 | | any work for the Authority. This prohibition shall extend to |
10 | | the holding or acquisition of an interest in any entity |
11 | | identified by the Casino Board or Gaming Board that, in the |
12 | | judgment of either entity, could represent the potential for or |
13 | | the appearance of a conflict of interest. The holding or |
14 | | acquisition of an interest in such entities through an indirect |
15 | | means, such as through a mutual fund, shall not be prohibited, |
16 | | expect that the Gaming Board may identify specific investments |
17 | | or funds that, in its judgment, are so influenced by gaming |
18 | | holdings as to represent the potential for or the appearance of |
19 | | a conflict of interest. |
20 | | (j) A spouse, child, or parent of a Casino Board member, |
21 | | employee of the Authority, or elected official or employee of |
22 | | the City may not accept any gift, gratuity, service, |
23 | | compensation, travel, lodging, or thing of value, with the |
24 | | exception of unsolicited items of an incidental nature, from |
25 | | any person, corporation, or entity doing business with the |
26 | | Authority. |
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1 | | (k) A spouse, child, or parent of a Casino Board member, |
2 | | employee of the Authority, or elected official or employee of |
3 | | the City may not, while the person is a Board member or |
4 | | employee of the spouse or within a period of 2 years |
5 | | immediately after termination of employment, knowingly accept |
6 | | employment or receive compensation or fees for services from a |
7 | | person or entity, or its parent or affiliate, that has engaged |
8 | | in business with the Authority that resulted in contracts with |
9 | | an aggregate value of at least $25,000 or if that Casino Board |
10 | | member, employee, or elected official or employee of the City |
11 | | has made a decision that directly applied to the person or |
12 | | entity, or its parent or affiliate. |
13 | | (l) No Casino Board member, employee of the Authority, or |
14 | | elected official or employee of the City may attempt, in any |
15 | | way, to influence any person or corporation doing business with |
16 | | the Authority or any officer, agent, or employee thereof to |
17 | | hire or contract with any person or corporation for any |
18 | | compensated work. |
19 | | (m) No Casino Board member, employee of the Authority, or |
20 | | elected official or employee of the City shall use or attempt |
21 | | to use his or her official position to secure, or attempt to |
22 | | secure, any privilege, advantage, favor, or influence for |
23 | | himself or herself or others. No Casino Board member, employee |
24 | | of the Authority, or elected official or employee of the City |
25 | | shall, within one year immediately preceding appointment by the |
26 | | Mayor or employment, have been employed or received |
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1 | | compensation or fees for services from a person or entity, or |
2 | | its parent or affiliate, that has engaged in business with the |
3 | | Casino Board, a licensee under this Act, or a licensee under |
4 | | the Illinois Gambling Act. |
5 | | (n) Any communication between an elected official of the |
6 | | City and any applicant for or party to a casino management |
7 | | contract with the Authority, or an officer, director, or |
8 | | employee thereof, concerning any matter relating in any way to |
9 | | gaming or the Authority shall be disclosed to the Casino Board |
10 | | and the Gaming Board. Such disclosure shall be in writing by |
11 | | the official within 30 days after the communication and shall |
12 | | be filed with the Casino Board. Disclosure must consist of the |
13 | | date of the communication, the identity and job title of the |
14 | | person with whom the communication was made, a brief summary of |
15 | | the communication, the action requested or recommended, all |
16 | | responses made, the identity and job title of the person making |
17 | | the response, and any other pertinent information. |
18 | | Public disclosure of the written summary provided to the |
19 | | Casino Board and the Gaming Board shall be subject to the |
20 | | exemptions provided under Section 7 of the Freedom of |
21 | | Information Act. |
22 | | This subsection (n) shall not apply to communications |
23 | | regarding traffic, law enforcement, security, environmental |
24 | | issues, City services, transportation, or other routine |
25 | | matters concerning the ordinary operations of the casino. |
26 | | (o) For purposes of this Section: |
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1 | | "Ordinary operations" means operations relating to the |
2 | | casino facility other than the conduct of gambling activities. |
3 | | "Routine matters" includes the application for, issuance, |
4 | | renewal, and other processes associated with City permits and |
5 | | licenses. |
6 | | "Employee of the City" means only those employees of the |
7 | | City who provide services to the Authority or otherwise |
8 | | influence the decisions of the Authority or the Casino Board. |
9 | | (p) Any Board member or employee of the Authority who |
10 | | violates any provision of this Section is guilty of a Class 4 |
11 | | felony.
|
12 | | Section 1-45. Casino management contracts. |
13 | | (a) In accordance with all applicable procurement laws and |
14 | | rules, the Casino Board shall develop and administer a |
15 | | competitive sealed bidding process
for the
selection of a |
16 | | potential casino operator licensee to develop or operate a |
17 | | casino within the City.
The Casino Board shall issue one or |
18 | | more requests for proposals. The Casino Board may
establish |
19 | | minimum financial and investment requirements to determine the
|
20 | | eligibility of persons to respond to the Casino Board's |
21 | | requests for proposal, and may
establish and consider such |
22 | | other criteria as it deems appropriate. The Casino Board
may |
23 | | impose a reasonable fee upon persons who respond to requests |
24 | | for proposal, in order to
reimburse the Casino Board for its |
25 | | costs in preparing and issuing the requests and
reviewing the |
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1 | | proposals. At least 15 days prior to the commencement of the |
2 | | competitive bidding process, the Gaming Board shall be given an |
3 | | opportunity to review the competitive bidding process |
4 | | established by the Casino Board. During the competitive bidding |
5 | | process, the Casino Board shall keep the Gaming Board apprised |
6 | | of the process and the responses received in connection with |
7 | | the Casino Board's request for proposals.
|
8 | | (b) Within 5 business days after the time limit for |
9 | | submitting bids and proposals has passed, the Casino Board |
10 | | shall make all bids and proposals public, provided, however, |
11 | | the Casino Board shall not be required to disclose any |
12 | | information which would be exempt from disclosure under Section |
13 | | 7 of the Freedom of Information Act. Thereafter, the Casino |
14 | | Board shall evaluate the responses to its requests for proposal |
15 | | and
the ability of all persons or entities responding to its |
16 | | requests for proposal
to meet the requirements of this Act and |
17 | | any relevant provisions of the Illinois Gambling Act and to |
18 | | undertake and perform the
obligations set forth in its requests |
19 | | for proposal.
|
20 | | (c) After reviewing proposals, the Casino Board shall enter |
21 | | into a casino management contract authorizing the operation of |
22 | | a casino. The casino operator shall be subject to a background |
23 | | investigation and approval by the Gaming Board. The Gaming |
24 | | Board shall complete its background investigation and approval |
25 | | of the casino operator within 6 months after the date that the |
26 | | proposed casino operator submits its application to the Gaming |
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1 | | Board. If the Gaming Board does not complete its background |
2 | | investigation and approval within the 6-month period, then the |
3 | | Gaming Board shall give a written explanation to the proposed |
4 | | casino operator and the chief legal officer of the Authority as |
5 | | to why it has not reached a final determination. The Gaming |
6 | | Board shall then complete its investigation within 3 months |
7 | | after giving such written explanation. Validity of the casino |
8 | | management contract is contingent upon the issuance of a casino |
9 | | operator license to the successful bidder. If the Gaming Board |
10 | | grants a casino operator license, the Casino Board shall |
11 | | transmit a copy of the executed casino management contract to |
12 | | the Gaming Board. |
13 | | (d) After (1) the Authority has been issued a casino |
14 | | license, (2) the Gaming Board has issued a casino operator |
15 | | license, and (3) the Gaming Board has approved the members of |
16 | | the Casino Board, the Authority may conduct gaming operations |
17 | | at a temporary facility for no longer than 24 months after |
18 | | gaming operations begin. The Gaming Board may, after holding a |
19 | | public hearing, grant an extension so long as a permanent |
20 | | facility is not operational and the Authority is working in |
21 | | good faith to complete the permanent facility. The Gaming Board |
22 | | may grant additional extensions following further public |
23 | | hearings. Each extension may be for a period of no longer than |
24 | | 6 months. |
25 | | (e) Fifty percent of any initial consideration received by |
26 | | the Authority that was paid as an inducement pursuant to a bid |
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1 | | for a casino management contract or an executed casino |
2 | | management contract must be transmitted to the State and |
3 | | deposited into the Gaming Facilities Fee Revenue Fund. The |
4 | | initial consideration shall not include (1) any amounts paid to |
5 | | the Authority as reimbursement for its costs in preparing or |
6 | | issuing the requests for proposals and reviewing the proposals |
7 | | or (2) any amounts loaned to the Authority or paid by an entity |
8 | | on behalf of the Authority for the design, construction, |
9 | | outfitting, or equipping of the casino, pre-opening expenses, |
10 | | bank roll or similar expenses required to open and operate the |
11 | | casino, or any license or per position fees imposed pursuant to |
12 | | the Illinois Gambling Act or any other financial obligation of |
13 | | the Authority.
|
14 | | Section 1-47. Freedom of Information Act. The Authority |
15 | | shall be a public body as defined in the Freedom of Information |
16 | | Act and shall be subject to the provisions of the Freedom of |
17 | | Information Act.
|
18 | | Section 1-50. Transfer of funds. The revenues received by |
19 | | the Authority (other than amounts required to be paid pursuant |
20 | | to the Illinois Gambling Act and amounts required to pay the
|
21 | | operating expenses of the Authority, to pay amounts due the |
22 | | casino operator licensee pursuant to a casino management |
23 | | contract, to repay any borrowing of the Authority
made pursuant |
24 | | to Section 1-31, to pay debt service on any bonds issued under
|
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1 | | Section
1-75, and to pay any expenses in connection with the |
2 | | issuance of such bonds
pursuant to Section 1-75 or derivative |
3 | | products pursuant to Section 1-85) shall
be transferred
to the
|
4 | | City by the Authority. Moneys transferred to the City pursuant |
5 | | to this Section shall be expended or obligated by the City for |
6 | | the construction and maintenance of infrastructure and for |
7 | | related purposes within the City. Such infrastructure may |
8 | | include, but is not limited to, roads, bridges, transit |
9 | | infrastructure, water and sewer infrastructure, schools, |
10 | | parks, and municipal facilities.
|
11 | | Section 1-60. Auditor General. |
12 | | (a) Prior to the issuance of bonds under this Act, the |
13 | | Authority shall submit to the Auditor General a certification |
14 | | that: |
15 | | (1) it is legally authorized to issue bonds; |
16 | | (2) scheduled annual payments of principal and |
17 | | interest on the bonds to be issued meet the requirements of |
18 | | Section 1-75 of this Act; |
19 | | (3) no bond shall mature later than 30 years; and |
20 | | (4) after payment of costs of issuance and necessary |
21 | | deposits to funds and accounts established with respect to |
22 | | debt service on the bonds, the net bond proceeds (exclusive |
23 | | of any proceeds to be used to refund outstanding bonds) |
24 | | will be used only for the purposes set forth in this Act. |
25 | | The Authority also shall submit to the Auditor General its |
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1 | | projections on revenues to be generated and pledged to |
2 | | repayment of the bonds as scheduled and such other information |
3 | | as the Auditor General may reasonably request. |
4 | | The Auditor General shall examine the certifications and |
5 | | information submitted and submit a report to the Authority and |
6 | | the Gaming Board indicating whether the required |
7 | | certifications, projections, and other information have been |
8 | | submitted by the Authority and whether the assumptions |
9 | | underlying the projections are not unreasonable in the |
10 | | aggregate. The Auditor General shall submit the report no later |
11 | | than 60 days after receiving the information required to be |
12 | | submitted by the Authority. |
13 | | The Auditor General shall submit a bill to the Authority |
14 | | for costs associated with the examinations and report required |
15 | | under this Section. The Authority shall reimburse in a timely |
16 | | manner. |
17 | | (b) The Authority shall enter into an intergovernmental |
18 | | agreement with the Auditor General authorizing the Auditor |
19 | | General to, every 2 years, (i) review the financial audit of |
20 | | the Authority performed by the Authority's certified public |
21 | | accountants, (ii) perform a management audit of the Authority, |
22 | | and (iii) perform a management audit of the casino operator |
23 | | licensee. The Auditor General shall provide the Authority and |
24 | | the General Assembly with the audits and shall post on his or |
25 | | her Internet website such portions of the audit or other |
26 | | financial information as generally would be made publicly |
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1 | | available for other owners licensees under the Illinois |
2 | | Gambling Act. The Auditor General shall submit a bill to the |
3 | | Authority for costs associated with the review and the audit |
4 | | required under this Section, which costs shall not exceed |
5 | | $100,000, and the Authority shall reimburse the Auditor General |
6 | | for such costs in a timely manner.
|
7 | | Section 1-62. Advisory committee. An Advisory Committee is |
8 | | established to monitor, review, and report on (1) the |
9 | | Authority's utilization of minority-owned business enterprises |
10 | | and female-owned business enterprises, (2) employment of |
11 | | females, and (3) employment of minorities with regard to the |
12 | | development and construction of the casino as authorized under |
13 | | Section 7 of the Illinois Gambling Act. The Authority shall |
14 | | work with the Advisory Committee in accumulating necessary |
15 | | information for the Committee to submit reports, as necessary, |
16 | | to the General Assembly and to the City.
|
17 | | The Committee shall consist of 9 members as provided in |
18 | | this Section. Five members shall be selected by the Governor |
19 | | and 4 members shall be selected by the Mayor. The Governor and |
20 | | Mayor shall each appoint at least one current member of the |
21 | | General Assembly. The Advisory Committee shall meet |
22 | | periodically and shall report the information to the Mayor of |
23 | | the City and to the General Assembly by December 31st of every |
24 | | year. |
25 | | The Advisory Committee shall be dissolved on the date that |
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1 | | casino gambling operations are first conducted at a permanent |
2 | | facility under the license authorized under Section 7 of the |
3 | | Illinois Gambling Act. For the purposes of this Section, the |
4 | | terms "female" and "minority person" have the meanings provided |
5 | | in Section 2 of the Business Enterprise for Minorities, |
6 | | Females, and Persons with Disabilities Act.
|
7 | | Section 1-65. Acquisition of property; eminent domain |
8 | | proceedings. For the lawful purposes of this Act, the City may |
9 | | acquire by eminent
domain or by condemnation proceedings in the |
10 | | manner provided by the Eminent Domain Act, real or personal |
11 | | property or interests in real
or personal property located in |
12 | | the City, and the City may convey to the Authority
property so |
13 | | acquired. The acquisition of property under this Section is
|
14 | | declared to be for a public use.
|
15 | | Section 1-67. Limitations on gaming at Chicago airports.
|
16 | | The Authority may conduct gaming operations in an airport under |
17 | | the administration or control of the Chicago Department of |
18 | | Aviation. Gaming operations may be conducted pursuant to this |
19 | | Section so long as (i) gaming operations are conducted in a |
20 | | secured area that is beyond the Transportation Security |
21 | | Administration security checkpoints and only available to |
22 | | airline passengers at least 21 years of age who are members of |
23 | | a private club, and not to the general public, (ii) gaming |
24 | | operations are limited to slot machines, as defined in Section |
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1 | | 4 of the Illinois Gambling Act, and (iii) the combined number |
2 | | of gaming positions operating in the City at the airports and |
3 | | at the temporary and permanent casino facility does not exceed |
4 | | the maximum number of gaming positions authorized pursuant to |
5 | | subsection (h) of Section 7 of the Illinois Gambling Act. |
6 | | Gaming operations at an airport are subject to all applicable |
7 | | laws and rules that apply to any other gaming facility under |
8 | | this Act or the Illinois Gambling Act.
|
9 | | Section 1-70. Local regulation. The casino facilities and |
10 | | operations therein
shall be subject to all ordinances and |
11 | | regulations of the City. The
construction, development, and |
12 | | operation of the casino shall comply with all
ordinances, |
13 | | regulations, rules, and controls of the City, including, but |
14 | | not
limited to, those relating to zoning and planned |
15 | | development, building, fire
prevention, and land use. However, |
16 | | the regulation of gaming operations is
subject to the exclusive |
17 | | jurisdiction of the Gaming Board. The Gaming Board shall be |
18 | | responsible for the investigation for and issuance of all |
19 | | licenses required by this Act and the Illinois Gambling Act. |
20 | | For the purposes of this Section, "gaming operations" means |
21 | | those activities directly related to the conduct of gambling |
22 | | activity in the casino and "operations" means those activities |
23 | | not directly related to the conduct of gambling, and includes |
24 | | activities customarily carried out by similarly-sized |
25 | | facilities not involved in gambling activity.
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1 | | Section 1-75. Borrowing. |
2 | | (a) The Authority may borrow money and
issue bonds as |
3 | | provided in this Section. Bonds of the Authority may be issued
|
4 | | to provide funds for land acquisition, site assembly and |
5 | | preparation, and the design and construction of the casino, as |
6 | | defined in the Illinois Gambling Act, all ancillary and related |
7 | | facilities comprising the casino complex, and all on-site and |
8 | | off-site infrastructure improvements required in connection |
9 | | with the development of the casino; to refund (at the time or |
10 | | in advance of any maturity or
redemption) or redeem any bonds |
11 | | of the Authority; to provide or increase a
debt
service reserve |
12 | | fund or other reserves with respect to any or all of its bonds;
|
13 | | or to pay the legal, financial, administrative, bond
insurance, |
14 | | credit enhancement, and other legal expenses of the |
15 | | authorization,
issuance, or delivery of bonds. In this Act, the |
16 | | term "bonds" also includes
notes of any kind, interim |
17 | | certificates, refunding bonds, or any other evidence
of |
18 | | obligation for borrowed money issued under this Section. Bonds |
19 | | may be
issued in one or more series and may be payable and |
20 | | secured either on a parity
with or separately from other bonds.
|
21 | | (b) The bonds of the Authority shall be payable from one or |
22 | | more of
the following sources: (i) the property or revenues of |
23 | | the Authority; (ii)
revenues derived from the casino; (iii) |
24 | | revenues derived from any casino
operator licensee; (iv) fees, |
25 | | bid proceeds, charges, lease payments, payments required |
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1 | | pursuant to any
casino management contract or other revenues |
2 | | payable to the
Authority, or any
receipts of the Authority; (v) |
3 | | payments by financial institutions, insurance
companies, or |
4 | | others pursuant to letters or lines of credit, policies of
|
5 | | insurance, or purchase agreements; (vi) investment earnings |
6 | | from funds or
accounts maintained pursuant to a bond resolution |
7 | | or trust indenture; (vii)
proceeds of refunding bonds; (viii) |
8 | | any other revenues derived from or payments by the City; and |
9 | | (ix) any payments by any casino operator licensee or others |
10 | | pursuant to any guaranty agreement.
|
11 | | (c) Bonds shall be authorized by a resolution of the |
12 | | Authority and may be
secured by a trust indenture by and |
13 | | between the Authority and a corporate
trustee or trustees, |
14 | | which may be any trust company or bank having the powers
of a |
15 | | trust company within or without the State. Bonds shall meet the |
16 | | following requirements:
|
17 | | (1) Bonds may bear interest payable at any time or |
18 | | times and at any rate or rates, notwithstanding any other |
19 | | provision of law to the contrary, and may be subject to |
20 | | such other terms and conditions as may be provided by the |
21 | | resolution or indenture authorizing the issuance of such |
22 | | bonds.
|
23 | | (2) Bonds issued pursuant to this Section may be |
24 | | payable on such dates and times as may be provided for by |
25 | | the resolution or indenture authorizing the issuance of |
26 | | such bonds; provided, however, that such bonds shall mature |
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1 | | no later than 30 years from the date of issuance. |
2 | | (3) Bonds issued pursuant to this Section may be sold |
3 | | pursuant to notice of sale and public bid or by negotiated |
4 | | sale.
|
5 | | (4) Bonds shall be payable at a time or times, in the |
6 | | denominations and form,
including book entry form, either |
7 | | coupon, registered, or both, and carry the
registration and |
8 | | privileges as to exchange, transfer or conversion, and
|
9 | | replacement of mutilated, lost, or destroyed bonds as the |
10 | | resolution or trust
indenture may provide.
|
11 | | (5) Bonds shall be payable in lawful money of the |
12 | | United States at a designated
place.
|
13 | | (6) Bonds shall be subject to the terms of purchase, |
14 | | payment, redemption, refunding,
or refinancing that the |
15 | | resolution or trust indenture provides.
|
16 | | (7) Bonds shall be executed by the manual or facsimile |
17 | | signatures of the officers
of the Authority designated by |
18 | | the Board, which signatures shall be valid at
delivery even
|
19 | | for one who has ceased to hold office.
|
20 | | (8) Bonds shall be sold at public or private sale in |
21 | | the manner and upon the terms
determined by the Authority.
|
22 | | (9) Bonds shall be issued in accordance with the |
23 | | provisions of the Local
Government Debt Reform Act.
|
24 | | (d) The Authority shall adopt a procurement program with |
25 | | respect to contracts relating to underwriters, bond counsel, |
26 | | financial advisors, and accountants. The program shall include |
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1 | | goals for the payment of not less than 30% of the total dollar |
2 | | value of the fees from these contracts to minority-owned |
3 | | businesses and female-owned businesses as defined in the |
4 | | Business Enterprise for Minorities, Females, and Persons with |
5 | | Disabilities Act. The Authority shall conduct outreach to |
6 | | minority-owned businesses and female-owned businesses. |
7 | | Outreach shall include, but is not limited to, advertisements |
8 | | in periodicals and newspapers, mailings, and other appropriate |
9 | | media. The Authority shall submit to the General Assembly a |
10 | | comprehensive report that shall include, at a minimum, the |
11 | | details of the procurement plan, outreach efforts, and the |
12 | | results of the efforts to achieve goals for the payment of |
13 | | fees. |
14 | | (e) Subject to the Illinois Gambling Act and rules of the |
15 | | Gaming Board regarding pledging
of interests in holders of |
16 | | owners licenses, any resolution or trust indenture may contain |
17 | | provisions that may be a part of
the contract with the holders |
18 | | of the bonds as to the following:
|
19 | | (1) Pledging, assigning, or directing the use, |
20 | | investment, or disposition
of revenues of the Authority or |
21 | | proceeds or benefits of any contract, including
without |
22 | | limitation any rights in any casino management
contract.
|
23 | | (2) The setting aside of loan funding deposits, debt |
24 | | service reserves, replacement or operating reserves, cost |
25 | | of
issuance accounts and sinking funds, and the regulation, |
26 | | investment, and
disposition thereof.
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1 | | (3) Limitations on the purposes to which or the |
2 | | investments in which the
proceeds of sale of any issue of |
3 | | bonds or the Authority's revenues and
receipts may be |
4 | | applied or made.
|
5 | | (4) Limitations on the issue of additional bonds, the |
6 | | terms upon which
additional bonds may be issued and |
7 | | secured, the terms upon which additional
bonds may rank on |
8 | | a parity with, or be subordinate or superior to, other |
9 | | bonds.
|
10 | | (5) The refunding, advance refunding, or refinancing |
11 | | of outstanding bonds.
|
12 | | (6) The procedure, if any, by which the terms of any |
13 | | contract with
bondholders may be altered or amended and the |
14 | | amount of bonds and holders of
which must consent thereto |
15 | | and the manner in which consent shall be given.
|
16 | | (7) Defining the acts or omissions that shall |
17 | | constitute a default in the
duties of the Authority to |
18 | | holders of bonds and providing the rights or
remedies of |
19 | | such holders in the event of a default, which may include
|
20 | | provisions
restricting individual rights of action by |
21 | | bondholders.
|
22 | | (8) Providing for guarantees, pledges of property, |
23 | | letters of credit, or
other security,
or insurance for the |
24 | | benefit of bondholders.
|
25 | | (f) No member of the Casino Board, nor any person executing |
26 | | the bonds, shall be
liable personally on the bonds or subject |
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1 | | to any personal liability by reason
of the issuance of the |
2 | | bonds.
|
3 | | (g) The Authority may issue and secure bonds in accordance |
4 | | with the
provisions of the Local Government Credit Enhancement |
5 | | Act.
|
6 | | (h) A pledge by the Authority of revenues and receipts as |
7 | | security for an
issue of bonds or for the performance of its |
8 | | obligations under any casino
management contract shall
be valid |
9 | | and binding from the time when the pledge is made. The revenues |
10 | | and
receipts pledged shall immediately be subject to the lien |
11 | | of the pledge without
any physical delivery or further act,
and |
12 | | the lien of any pledge shall be valid and binding against any |
13 | | person having
any claim of any kind in tort, contract, or |
14 | | otherwise against the Authority,
irrespective of whether the |
15 | | person has notice. No resolution, trust indenture,
management |
16 | | agreement or financing statement, continuation statement, or |
17 | | other
instrument adopted or entered into by the Authority need |
18 | | be filed or recorded
in any public record other than the |
19 | | records of the Authority in order to
perfect the lien against |
20 | | third persons, regardless of any contrary provision of
law.
|
21 | | (i) Bonds that are being paid or retired by issuance, sale, |
22 | | or delivery of
bonds, and bonds for which sufficient funds have |
23 | | been deposited with the paying
agent or trustee to provide for |
24 | | payment of principal and interest thereon, and
any redemption |
25 | | premium, as provided in the authorizing resolution, shall not |
26 | | be
considered outstanding for the purposes of this subsection.
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1 | | (j) The bonds of the Authority shall not be indebtedness of |
2 | | the
State.
The bonds of the Authority are not general |
3 | | obligations of the State and are not secured by a pledge of the |
4 | | full faith and
credit of the State and the holders of bonds of |
5 | | the Authority may
not require, except as provided in this Act, |
6 | | the application of State revenues or
funds to the payment of |
7 | | bonds of the Authority.
|
8 | | (k) The State of
Illinois pledges and agrees with the |
9 | | owners of the bonds that it will not limit
or alter the rights |
10 | | and powers vested in the Authority by this Act so as to
impair |
11 | | the terms of any contract made by the Authority with the owners |
12 | | or in
any way impair the rights and remedies of the owners |
13 | | until the bonds, together
with interest on them, and all costs |
14 | | and expenses in connection with any action
or proceedings by or |
15 | | on behalf of the owners, are fully met and discharged.
The |
16 | | Authority is authorized to include this pledge and
agreement in |
17 | | any contract with the owners of bonds issued under this |
18 | | Section.
|
19 | | (l) No person holding an elective office in the City, in |
20 | | Cook County, or in this State, holding a seat in the General |
21 | | Assembly, or serving as a board member, trustee, officer, or |
22 | | employee of the Authority, including the spouse of that person, |
23 | | may receive a legal, banking, consulting, or other fee related |
24 | | to the issuance of bonds. This prohibition shall also apply to |
25 | | a company or firm that employs a person holding an elective |
26 | | office in the City, in Cook County, or in this State, holding a |
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1 | | seat in the General Assembly, or serving as a board member, |
2 | | trustee, officer, or employee of the Authority, including the |
3 | | spouse of that person, if the person or his or her spouse has |
4 | | greater than 7.5% ownership of the company or firm.
|
5 | | Section 1-85. Derivative products. With respect to all or |
6 | | part of any issue
of its bonds, the Authority may enter into |
7 | | agreements or contracts with any
necessary or appropriate |
8 | | person, which will have the benefit of providing to
the
|
9 | | Authority an interest rate basis, cash flow basis, or other |
10 | | basis different
from that provided in the bonds for the payment |
11 | | of interest. Such agreements
or contracts may include, without |
12 | | limitation, agreements or contracts commonly
known as |
13 | | "interest rate swap agreements", "forward payment conversion
|
14 | | agreements", "futures", "options", "puts", or "calls" and |
15 | | agreements or
contracts providing for payments based on levels |
16 | | of or changes in interest
rates, agreements or contracts to |
17 | | exchange cash flows or a series of payments,
or to hedge |
18 | | payment, rate spread, or similar exposure.
|
19 | | Section 1-90. Legality for investment. The State of |
20 | | Illinois, all
governmental entities, all public officers, |
21 | | banks, bankers, trust companies,
savings banks and |
22 | | institutions, building and loan associations, savings and
loan |
23 | | associations, investment companies, and other persons carrying |
24 | | on a
banking
business, insurance companies, insurance |
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1 | | associations, and other persons
carrying on an insurance |
2 | | business, and all executors, administrators,
guardians, |
3 | | trustees, and other fiduciaries may legally invest any sinking
|
4 | | funds,
moneys, or other funds belonging to them or within their |
5 | | control in
any bonds issued under this Act. However, nothing in |
6 | | this Section shall be
construed as relieving any person, firm, |
7 | | or corporation from any duty of
exercising reasonable care in |
8 | | selecting securities for purchase or investment.
|
9 | | Section 1-105. Budgets and reporting.
|
10 | | (a) The Casino Board shall annually adopt a budget for each
|
11 | | fiscal year. The budget may be modified from time to time in |
12 | | the same manner
and upon the same vote as it may be adopted. |
13 | | The budget shall include the
Authority's available funds and |
14 | | estimated revenues and shall provide for
payment of its |
15 | | obligations and estimated expenditures for the fiscal year,
|
16 | | including, without limitation, expenditures for |
17 | | administration, operation,
maintenance and repairs, debt |
18 | | service, and deposits into reserve and other
funds
and capital |
19 | | projects.
|
20 | | (b) The Casino Board shall annually cause the finances of |
21 | | the Authority to be
audited by a firm of certified public |
22 | | accountants selected by the Casino Board in accordance with the |
23 | | rules of the Gaming Board and post on the Authority's Internet |
24 | | website such financial information as is required to be posted |
25 | | by all other owners licensees under the Illinois Gambling Act.
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1 | | (c) The Casino Board shall, for each fiscal year, prepare |
2 | | an annual report
setting forth information concerning its |
3 | | activities in the fiscal year and the
status of the development |
4 | | of the casino. The annual report shall include financial |
5 | | information of the Authority consistent with that which is |
6 | | required for all other owners licensees under the Illinois |
7 | | Gambling Act, the budget
for the succeeding fiscal year, and |
8 | | the current capital plan as of the date of
the report. Copies |
9 | | of the annual report shall be made available to persons who
|
10 | | request them and shall be submitted not later than 120 days |
11 | | after the end of
the Authority's fiscal year or, if the audit |
12 | | of the Authority's financial statements is not completed within |
13 | | 120 days after the end of the Authority's fiscal year, as soon |
14 | | as practical after completion of the audit, to the Governor, |
15 | | the Mayor, the General Assembly, and the Commission on |
16 | | Government Forecasting and Accountability.
|
17 | | Section 1-110. Deposit and withdrawal of funds. |
18 | | (a) All funds deposited by the Authority in any bank or |
19 | | savings and loan
association shall be placed in the name of the |
20 | | Authority and shall be withdrawn
or paid out only by check or |
21 | | draft upon the bank or savings and loan
association, signed by |
22 | | 2 officers or employees designated by the Casino Board.
|
23 | | Notwithstanding any other provision of this Section, the Casino |
24 | | Board may designate
any of its members or any officer or |
25 | | employee of the Authority to authorize the
wire transfer of |
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1 | | funds deposited by the secretary-treasurer of funds in a bank
|
2 | | or savings and loan association for the payment of payroll and |
3 | | employee
benefits-related expenses.
|
4 | | No bank or savings and loan association shall receive |
5 | | public funds as
permitted by this Section unless it has |
6 | | complied with the requirements
established pursuant to Section |
7 | | 6 of the Public
Funds Investment Act.
|
8 | | (b) If any officer or employee whose signature appears upon |
9 | | any check
or draft issued pursuant to this Act ceases (after |
10 | | attaching his signature) to
hold his or her office before the |
11 | | delivery of such a check or draft to the
payee, his or her |
12 | | signature shall nevertheless be valid and sufficient for all
|
13 | | purposes with the same effect as if he or she had remained in |
14 | | office until
delivery thereof.
|
15 | | Section 1-112. Contracts with the Authority or casino |
16 | | operator licensee; disclosure requirements. |
17 | | (a) A bidder, respondent, offeror, or contractor for |
18 | | contracts with the Authority or casino operator licensee shall |
19 | | disclose the identity of all officers and directors and every |
20 | | owner, beneficiary, or person with beneficial interest of more |
21 | | than 1% or shareholder entitled to receive more than 1% of the |
22 | | total distributable income of any corporation having any |
23 | | interest in the contract or in the bidder, respondent, offeror, |
24 | | or contractor. The disclosure shall be in writing and attested |
25 | | to by an owner, trustee, corporate official, or agent. If stock |
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1 | | in a corporation is publicly traded and there is no readily |
2 | | known individual having greater than a 1% interest, then a |
3 | | statement to that effect attested to by an officer or agent of |
4 | | the corporation shall fulfill the disclosure statement |
5 | | requirement of this Section. A bidder, respondent, offeror, or |
6 | | contractor shall notify the Authority of any changes in |
7 | | officers, directors, ownership, or individuals having a |
8 | | beneficial interest of more than 1%. Notwithstanding the |
9 | | provisions of this subsection (a), the Gaming Board may adopt |
10 | | rules in connection with contractors for contracts with the |
11 | | Authority or the casino operator. |
12 | | (b) A bidder, respondent, offeror, or contractor for |
13 | | contracts with an annual value of $25,000 or more or for a |
14 | | period to exceed one year shall disclose all political |
15 | | contributions of the bidder, respondent, offeror, or |
16 | | contractor and any affiliated person or entity. Disclosure |
17 | | shall include at least the names and addresses of the |
18 | | contributors and the dollar amounts of any contributions to any |
19 | | political committee made within the previous 2 years. The |
20 | | disclosure must be submitted to the Gaming Board with a copy of |
21 | | the contract. All such disclosures shall be posted on the |
22 | | websites of the Authority and the Gaming Board. |
23 | | (c) As used in this Section: |
24 | | "Contribution" means contribution as defined in Section |
25 | | 9-1.4 of the Election Code. |
26 | | "Affiliated person" means (i) any person with any ownership |
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1 | | interest or distributive share of the bidding, responding, or |
2 | | contracting entity in excess of 1%, (ii) executive employees of |
3 | | the bidding, responding, or contracting entity, and (iii) the |
4 | | spouse, minor children, and parents of any such persons. |
5 | | "Affiliated entity" means (i) any parent or subsidiary of |
6 | | the bidding or contracting entity, (ii) any member of the same |
7 | | unitary business group, or (iii) any political committee for |
8 | | which the bidding, responding, or contracting entity is the |
9 | | sponsoring entity. |
10 | | (d) The Gaming Board may direct the Authority or a casino |
11 | | operator licensee to void a contract if a violation of this |
12 | | Section occurs. The Authority may direct a casino operator |
13 | | licensee to void a contract if a violation of this Section |
14 | | occurs. |
15 | | (e) All contracts pertaining to the actual operation of the |
16 | | casino and related gaming activities shall be entered into by |
17 | | the casino operator licensee and not the Authority and shall be |
18 | | subject to the regulation, oversight, and approval of the |
19 | | Gaming Board, applying the same regulation, oversight, and |
20 | | approval requirements as would be applied to any other owners |
21 | | licensee under the Illinois Gambling Act.
|
22 | | Section 1-115. Purchasing. |
23 | | (a) The Casino Board shall designate an officer of the |
24 | | Authority to serve as the Chief Procurement Officer for the |
25 | | Authority. The Chief Procurement Officer shall have all powers |
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1 | | and duties set forth in Section 15 of Division 10 of Article 8 |
2 | | of the Illinois Municipal Code. Except as otherwise provided in |
3 | | this Section, the Chief Procurement Officer of the Authority |
4 | | shall conduct procurements on behalf of the Authority subject |
5 | | to Title 2, Chapter 92 of the Municipal Code of Chicago, which |
6 | | by its terms incorporates Division 10 of Article 8 of the |
7 | | Illinois Municipal Code. |
8 | | (b) All contracts for amounts greater than $25,000 must be |
9 | | approved by the Casino Board and executed by the chairperson of |
10 | | the Casino Board and executive director of the Authority. |
11 | | Contracts for amounts of $25,000 or less may be approved and |
12 | | executed by the Chief Procurement Officer for the Authority and |
13 | | executive director of the Authority, with approval by the chief |
14 | | legal counsel for the Authority as to form and legality. |
15 | | (c) All construction contracts and contracts for supplies, |
16 | | materials,
equipment, and services for amounts greater than |
17 | | $25,000 shall be let by a competitive selection process to
the |
18 | | lowest responsible proposer, after advertising for proposals, |
19 | | except for the
following:
|
20 | | (1) when repair parts, accessories, equipment, or |
21 | | services are required
for
equipment or services previously |
22 | | furnished or contracted for;
|
23 | | (2) when services such as water, light, heat, power, |
24 | | telephone (other than
long-distance service), or telegraph |
25 | | are required;
|
26 | | (3) casino management contracts, which shall be |
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1 | | awarded as
set forth in Section 1-45 of this Act;
|
2 | | (4) contracts where there is only one economically |
3 | | feasible source; |
4 | | (5) when a purchase is needed on an immediate, |
5 | | emergency basis because there exists a threat to public |
6 | | health or public safety, or when immediate expenditure is |
7 | | necessary for repairs to Authority property in order to |
8 | | protect against further loss of or damage to Authority |
9 | | property, to prevent or minimize serious disruption in |
10 | | Authority services or to ensure the integrity of Authority |
11 | | records; |
12 | | (6) contracts for professional services other than for |
13 | | management of the casino, except such contracts described |
14 | | in subsection (d) of this Section; and |
15 | | (7) contracts for the use, purchase, delivery, |
16 | | movement, or installation of (i) data processing |
17 | | equipment, software, and services and (ii) |
18 | | telecommunications equipment, software, and services.
|
19 | | (d) Contracts for professional services for a term of more |
20 | | than one year or contracts that may require payment in excess |
21 | | of $25,000 in one year shall be let by a competitive bidding |
22 | | process to the most highly qualified firm that agrees to |
23 | | compensation and other terms of engagement that are both |
24 | | reasonable and acceptable to the Casino Board. |
25 | | (e) All contracts involving less than $25,000 shall be let |
26 | | by competitive
selection process whenever possible, and in any |
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1 | | event in a manner calculated to ensure
the best interests of |
2 | | the public.
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3 | | (f) In determining the responsibility of any proposer, the |
4 | | Authority may take
into account the proposer's (or an |
5 | | individual having a beneficial interest,
directly or |
6 | | indirectly, of more than 1% in such proposing entity) past |
7 | | record of
dealings with the Authority, the proposer's |
8 | | experience, adequacy of equipment,
and ability to complete |
9 | | performance within the time set, and other factors
besides |
10 | | financial responsibility. No such contract shall be awarded to |
11 | | any proposer other than the lowest proposer (in case of |
12 | | purchase or
expenditure) unless authorized or approved by a |
13 | | vote of at least 3 members of
the Casino Board and such action |
14 | | is accompanied by a written statement setting forth the reasons |
15 | | for not awarding the contract to the highest or
lowest |
16 | | proposer, as the case
may be. The statement shall be kept on |
17 | | file in the principal office of the
Authority and open to |
18 | | public inspection.
|
19 | | (g) The Authority shall have the right to reject all |
20 | | proposals and to
re-advertise for proposals. If after
any such |
21 | | re-advertisement, no responsible and satisfactory proposals, |
22 | | within the
terms of the re-advertisement, is received, the |
23 | | Authority may award such
contract without competitive |
24 | | selection. The contract must not be less
advantageous to the |
25 | | Authority than any valid proposal received pursuant to
|
26 | | advertisement.
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1 | | (h) Advertisements for proposals and re-proposals shall be |
2 | | published at least once in
a daily newspaper of general |
3 | | circulation published in the City
at least 10 calendar days |
4 | | before the time for
receiving proposals and in an online |
5 | | bulletin published on the Authority's website. Such
|
6 | | advertisements shall state the time and
place for receiving and |
7 | | opening of proposals and, by reference to plans and
|
8 | | specifications on file at the time of the first publication or |
9 | | in the
advertisement itself, shall describe the character of |
10 | | the proposed contract in
sufficient detail to fully advise |
11 | | prospective proposers of their obligations and
to ensure free |
12 | | and open competitive selection.
|
13 | | (i) All proposals in response to advertisements shall be |
14 | | sealed and shall be
publicly opened by the Authority. All |
15 | | proposers shall be entitled to be present
in person or by |
16 | | representatives. Cash or a certified or satisfactory cashier's
|
17 | | check, as a deposit of good faith, in a reasonable amount to be |
18 | | fixed by the
Authority before advertising for proposals, shall |
19 | | be required with the proposal. A bond for faithful performance |
20 | | of the contract with surety or
sureties satisfactory to the
|
21 | | Authority and adequate insurance may be required in reasonable |
22 | | amounts to be
fixed by the Authority before advertising for |
23 | | proposals.
|
24 | | (j) The contract shall be awarded as promptly as possible |
25 | | after the opening
of proposals. The proposal of the successful |
26 | | proposer, as well as the bids of the
unsuccessful proposers, |
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1 | | shall be placed on file and be open to public inspection |
2 | | subject to the exemptions from disclosure provided under |
3 | | Section 7 of the Freedom of Information Act.
All proposals |
4 | | shall be void if any disclosure of the terms of any proposals |
5 | | in response
to an advertisement is made or permitted to be made |
6 | | by the Authority before the
time fixed for opening proposals.
|
7 | | (k) Notice of each and every contract that is
offered, |
8 | | including renegotiated contracts and change orders,
shall be |
9 | | published in an online bulletin. The online bulletin must |
10 | | include at least the date first offered,
the date submission of |
11 | | offers is due, the location that offers are to be
submitted to, |
12 | | a brief purchase description, the method of source selection,
|
13 | | information of how to obtain a comprehensive purchase |
14 | | description and any
disclosure and contract forms, and |
15 | | encouragement to prospective vendors to hire qualified |
16 | | veterans, as defined by Section 45-67 of the Illinois |
17 | | Procurement Code, and Illinois residents discharged from any |
18 | | Illinois adult correctional center subject to Gaming Board |
19 | | licensing and eligibility rules. Notice of each and every |
20 | | contract that is let
or awarded, including renegotiated |
21 | | contracts and change orders, shall be
published in the online |
22 | | bulletin and
must include at least all of the
information |
23 | | specified in this subsection (k), as well as the name of the |
24 | | successful
responsible proposer or offeror, the contract |
25 | | price, and the number of unsuccessful
responsive proposers and |
26 | | any other disclosure specified in this Section. This notice |
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1 | | must be posted in the online electronic bulletin prior to |
2 | | execution of the contract.
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3 | | Section 1-130. Affirmative action and equal opportunity |
4 | | obligations of
Authority. |
5 | | (a) The Authority is subject to the requirements of Article |
6 | | IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720 |
7 | | inclusive) of the Chicago Municipal Code, as now or hereafter |
8 | | amended, renumbered, or succeeded, concerning a Minority-Owned |
9 | | and Women-Owned Business Enterprise Procurement Program for |
10 | | construction contracts, and Section 2-92-420 et seq. of the |
11 | | Chicago Municipal Code, as now or hereafter amended, |
12 | | renumbered, or succeeded, concerning a Minority-Owned and |
13 | | Women-Owned Business Enterprise Procurement Program.
|
14 | | (b) The Authority is authorized to enter into agreements |
15 | | with contractors'
associations, labor unions, and the |
16 | | contractors working on the development of
the casino to |
17 | | establish an apprenticeship preparedness training program to
|
18 | | provide for an increase in the number of minority and female |
19 | | journeymen and
apprentices in the building trades and to enter |
20 | | into agreements with
community college districts or other |
21 | | public or private institutions to provide
readiness training. |
22 | | The Authority is further authorized to enter into
contracts |
23 | | with public and private educational institutions and persons in |
24 | | the
gaming, entertainment, hospitality, and tourism industries |
25 | | to provide training
for employment in those industries.
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1 | | Section 1-135. Transfer of interest. Neither the Authority |
2 | | nor the City may sell, lease, rent, transfer, exchange, or |
3 | | otherwise convey any interest that they have in the casino |
4 | | without prior approval of the General Assembly.
|
5 | | Section 1-140. Home rule. The regulation and licensing of |
6 | | casinos and casino gaming, casino gaming facilities, and casino |
7 | | operator licensees under this Act are exclusive powers and |
8 | | functions of the State. A home rule unit may not regulate or |
9 | | license casinos, casino gaming, casino gaming facilities, or |
10 | | casino operator licensees under this Act, except as provided |
11 | | under this Act. This Section is a denial and limitation of home |
12 | | rule powers and functions under subsection (h) of Section 6 of |
13 | | Article VII of the Illinois Constitution.
|
14 | | Section 1-145. Prohibition of political contributions from |
15 | | casino operator licensees and applicants. |
16 | | (a) The General Assembly has a compelling interest in |
17 | | protecting the integrity of both the electoral process and the |
18 | | legislative process by preventing corruption and the |
19 | | appearance of corruption which may arise through permitting |
20 | | certain political campaign contributions by certain persons |
21 | | involved in the gaming industry and regulated by the State. |
22 | | Unlike most other regulated industries, gaming is especially |
23 | | susceptible to corruption and potential criminal influence. In |
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1 | | Illinois, only licensed gaming activities are legal and all |
2 | | other gaming activities are strictly prohibited. Given these |
3 | | circumstances, it is imperative to eliminate any potential |
4 | | corrupt influence in the gaming industry and the electoral |
5 | | process. |
6 | | Banning political campaign contributions by certain |
7 | | persons subject to this Section to State officeholders and |
8 | | candidates for such offices and to county and municipal |
9 | | officeholders and candidates for such offices in counties and |
10 | | municipalities that receive financial benefits from gaming |
11 | | activities is necessary to prevent corruption and the |
12 | | appearance of corruption that may arise when political campaign |
13 | | contributions and gaming that is regulated by the State and |
14 | | that confers benefits on counties and municipalities are |
15 | | intermingled. |
16 | | The General Assembly has prohibited political campaign |
17 | | contributions to certain State and local officeholders and |
18 | | candidates for such offices by certain persons with State of |
19 | | Illinois and Metropolitan Pier and Exposition Authority |
20 | | contracts and pending bids or proposals for contracts of over |
21 | | $50,000 and certain individuals and entities affiliated with |
22 | | such persons. Certain gaming licensees will receive receipts |
23 | | far in excess of the base level of contract amounts subject to |
24 | | such other campaign contribution prohibitions. |
25 | | (b) As used in this Section: |
26 | | "Affiliated entity" means (i) any corporate parent and |
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1 | | operating subsidiary of the business entity applying for or |
2 | | holding a license, (ii) each operating subsidiary of the |
3 | | corporate parent of the business entity applying for or holding |
4 | | a license, (iii) any organization recognized by the United |
5 | | States Internal Revenue Service as a tax-exempt organization |
6 | | described in Section 501(c) of the Internal Revenue Code of |
7 | | 1986 (or any successor provision of federal tax law) |
8 | | established by one or more business entities seeking or holding |
9 | | a license, any affiliated entity of such business entity, or |
10 | | any affiliated person of such business entity, and (iv) any |
11 | | political committee for which the business entity applying for |
12 | | or holding a license, or any 501(c) organization described in |
13 | | item (iii) related to that business entity, is the sponsoring |
14 | | entity as defined in Section 9-3 of the Election Code. For |
15 | | purposes of item (iv), the funding of all business entities |
16 | | applying for or holding a license shall be aggregated in |
17 | | determining whether such political committee is an affiliated |
18 | | entity. |
19 | | "Affiliated person" means (i) any person with any ownership |
20 | | interest or distributive share in excess of 7.5% of any |
21 | | business entity applying for or holding a license, (ii) |
22 | | executive employees of any such business entity, (iii) any |
23 | | person designated as a key person under the Illinois Gambling |
24 | | Act, and (iv) the spouse of the persons described in items (i) |
25 | | through (iii). |
26 | | "Business entity" means any entity doing business for |
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1 | | profit, whether organized as a corporation, partnership, sole |
2 | | proprietorship, limited liability company, or partnership or |
3 | | otherwise. |
4 | | "Contribution" means a contribution as defined in Section |
5 | | 9-1.4 of the Election Code. |
6 | | "Declared candidate" means a person who has filed a |
7 | | statement of candidacy and petition for nomination or election |
8 | | in the principal office of the State Board of Elections, or in |
9 | | the office of the appropriate election authority for any county |
10 | | or municipality in which a casino is located or proposed or |
11 | | which receives any gaming revenue. |
12 | | "Executive employee" means (i) any person who is an officer |
13 | | or director or who fulfills duties equivalent to those of an |
14 | | officer or director of a business entity applying for or |
15 | | holding a license and (ii) any employee of such business entity |
16 | | who is required to register under the Lobbyist Registration |
17 | | Act. |
18 | | "License" means the casino operator license issued |
19 | | pursuant to this Act. |
20 | | "Officeholder" means the Governor, Lieutenant Governor, |
21 | | Attorney General, Secretary of State, Comptroller, Treasurer, |
22 | | member of the General Assembly, or any officeholder in any |
23 | | county or municipality in which a riverboat, casino, or |
24 | | electronic gaming device is located or proposed or that |
25 | | receives any gaming revenue. |
26 | | (c) Any person or business entity applying for or holding a |
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1 | | license, any affiliated entities or persons of such business |
2 | | entity, and any entities or persons soliciting a contribution |
3 | | or causing a contribution to be made on behalf of such person |
4 | | or business entity, are prohibited from making any contribution |
5 | | to any officeholder or declared candidate or any political |
6 | | committee affiliated with any officeholder or declared |
7 | | candidate, as defined in Section 9-1.8 of the Election Code. |
8 | | This prohibition shall commence upon filing of an application |
9 | | for a license and shall continue for a period of 2 years after |
10 | | termination, suspension or revocation of the license. |
11 | | The Gaming Board shall have authority to suspend, revoke, |
12 | | or restrict the license and to impose civil penalties of up to |
13 | | $100,000 for each violation of this subsection (c). A notice of |
14 | | each such violation and the penalty imposed shall be published |
15 | | on the Gaming Board's Internet website and in the Illinois |
16 | | Register. Payments received by the State pursuant to this |
17 | | subsection (c) shall be deposited into the General Revenue |
18 | | Fund.
|
19 | | Any officeholder or declared candidate or any political |
20 | | committee affiliated with any officeholder or declared |
21 | | candidate that has received a contribution in violation of this |
22 | | subsection (c) shall pay an amount equal to the value of the |
23 | | contribution to the State no more than 30 days after notice of |
24 | | the violation concerning the contribution appears in the |
25 | | Illinois Register. Payments received by the State pursuant to |
26 | | this subsection (c) shall be deposited into the General Revenue |
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1 | | Fund. |
2 | | (d) The Gaming Board shall post on its Internet website a |
3 | | list of all persons, business entities, and affiliated entities |
4 | | prohibited from making contributions to any officeholder or |
5 | | declared candidate political committee pursuant to subsection |
6 | | (c), which list shall be updated and published, at a minimum, |
7 | | every 6 months. |
8 | | Any person, business entity, or affiliated entity |
9 | | prohibited from making contributions to any officeholder or |
10 | | declared candidate political committee pursuant to subsection |
11 | | (c) shall notify the Gaming Board within 7 days after |
12 | | discovering any necessary change or addition to the information |
13 | | relating to that person, business entity, or affiliated entity |
14 | | contained in the list. |
15 | | An individual who acts in good faith and in reliance on any |
16 | | information contained in the list shall not be subject to any |
17 | | penalties or liability imposed for a violation of this Section. |
18 | | (e) If any provision of this Section is held invalid or its |
19 | | application to any person or circumstance is held invalid, the |
20 | | invalidity of that provision or application does not affect the |
21 | | other provisions or applications of this Section that can be |
22 | | given effect without the invalid application or provision.
|
23 | | ARTICLE 90.
|
24 | | Section 90-1. Findings. The General Assembly makes all of |
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1 | | the following findings: |
2 | | (1) That the cumulative reduction to pre-K through 12 |
3 | | education funding since 2009 is approximately |
4 | | $861,000,000. |
5 | | (2) That during the last 2 years, general state aid to |
6 | | Illinois common schools has been underfunded as a result of |
7 | | budget cuts, resulting in pro-rated payments to school |
8 | | districts that are less than the foundational level of |
9 | | $6,119 per pupil, which represents the minimum each pupil |
10 | | needs to be educated. |
11 | | (3) That a significant infusion of new revenue is |
12 | | necessary in order to fully fund the foundation level and |
13 | | to maintain and support education in Illinois. |
14 | | (4) That the decline of the Illinois horse racing and |
15 | | breeding program, a $2.5 billion industry, would be |
16 | | reversed if this amendatory Act of the 98th General |
17 | | Assembly would be enacted. |
18 | | (5) That the Illinois horse racing industry is on the |
19 | | verge of extinction due to fierce competition from fully |
20 | | developed horse racing and gaming operations in other |
21 | | states. |
22 | | (6) That allowing the State's horse racing venues, |
23 | | currently licensed gaming destinations, to maximize their |
24 | | capacities with gaming machines, would generate up to $120 |
25 | | million to $200 million for the State in the form of extra |
26 | | licensing fees, plus an additional $100 million to $300 |
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1 | | million in recurring annual tax revenue for the State to |
2 | | help ensure that school, road, and other building projects |
3 | | promised under the capital plan occur on schedule. |
4 | | (7) That Illinois agriculture and other businesses |
5 | | that support and supply the horse racing industry, already |
6 | | a sector that employs over 37,000 Illinoisans, also stand |
7 | | to substantially benefit and would be much more likely to |
8 | | create additional jobs should Illinois horse racing once |
9 | | again become competitive with other states. |
10 | | (8) That by keeping these projects on track, the State |
11 | | can be sure that significant job and economic growth will |
12 | | in fact result from the previously enacted legislation. |
13 | | (9) That gaming machines at Illinois horse racing |
14 | | tracks would create an estimated 1,200 to 1,500 permanent |
15 | | jobs, and an estimated capital investment of up to $200 |
16 | | million to $400 million at these race tracks would prompt |
17 | | additional trade organization jobs necessary to construct |
18 | | new facilities or remodel race tracks to operate electronic |
19 | | gaming.
|
20 | | Section 90-2. The Illinois Administrative Procedure Act is |
21 | | amended by changing Section 5-45 as follows:
|
22 | | (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45) |
23 | | Sec. 5-45. Emergency rulemaking. |
24 | | (a) "Emergency" means the existence of any situation that |
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1 | | any agency
finds reasonably constitutes a threat to the public |
2 | | interest, safety, or
welfare. |
3 | | (b) If any agency finds that an
emergency exists that |
4 | | requires adoption of a rule upon fewer days than
is required by |
5 | | Section 5-40 and states in writing its reasons for that
|
6 | | finding, the agency may adopt an emergency rule without prior |
7 | | notice or
hearing upon filing a notice of emergency rulemaking |
8 | | with the Secretary of
State under Section 5-70. The notice |
9 | | shall include the text of the
emergency rule and shall be |
10 | | published in the Illinois Register. Consent
orders or other |
11 | | court orders adopting settlements negotiated by an agency
may |
12 | | be adopted under this Section. Subject to applicable |
13 | | constitutional or
statutory provisions, an emergency rule |
14 | | becomes effective immediately upon
filing under Section 5-65 or |
15 | | at a stated date less than 10 days
thereafter. The agency's |
16 | | finding and a statement of the specific reasons
for the finding |
17 | | shall be filed with the rule. The agency shall take
reasonable |
18 | | and appropriate measures to make emergency rules known to the
|
19 | | persons who may be affected by them. |
20 | | (c) An emergency rule may be effective for a period of not |
21 | | longer than
150 days, but the agency's authority to adopt an |
22 | | identical rule under Section
5-40 is not precluded. No |
23 | | emergency rule may be adopted more
than once in any 24 month |
24 | | period, except that this limitation on the number
of emergency |
25 | | rules that may be adopted in a 24 month period does not apply
|
26 | | to (i) emergency rules that make additions to and deletions |
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1 | | from the Drug
Manual under Section 5-5.16 of the Illinois |
2 | | Public Aid Code or the
generic drug formulary under Section |
3 | | 3.14 of the Illinois Food, Drug
and Cosmetic Act, (ii) |
4 | | emergency rules adopted by the Pollution Control
Board before |
5 | | July 1, 1997 to implement portions of the Livestock Management
|
6 | | Facilities Act, (iii) emergency rules adopted by the Illinois |
7 | | Department of Public Health under subsections (a) through (i) |
8 | | of Section 2 of the Department of Public Health Act when |
9 | | necessary to protect the public's health, (iv) emergency rules |
10 | | adopted pursuant to subsection (n) of this Section, (v) |
11 | | emergency rules adopted pursuant to subsection (o) of this |
12 | | Section, or (vi) emergency rules adopted pursuant to subsection |
13 | | (c-5) of this Section. Two or more emergency rules having |
14 | | substantially the same
purpose and effect shall be deemed to be |
15 | | a single rule for purposes of this
Section. |
16 | | (c-5) To facilitate the maintenance of the program of group |
17 | | health benefits provided to annuitants, survivors, and retired |
18 | | employees under the State Employees Group Insurance Act of |
19 | | 1971, rules to alter the contributions to be paid by the State, |
20 | | annuitants, survivors, retired employees, or any combination |
21 | | of those entities, for that program of group health benefits, |
22 | | shall be adopted as emergency rules. The adoption of those |
23 | | rules shall be considered an emergency and necessary for the |
24 | | public interest, safety, and welfare. |
25 | | (d) In order to provide for the expeditious and timely |
26 | | implementation
of the State's fiscal year 1999 budget, |
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1 | | emergency rules to implement any
provision of Public Act 90-587 |
2 | | or 90-588
or any other budget initiative for fiscal year 1999 |
3 | | may be adopted in
accordance with this Section by the agency |
4 | | charged with administering that
provision or initiative, |
5 | | except that the 24-month limitation on the adoption
of |
6 | | emergency rules and the provisions of Sections 5-115 and 5-125 |
7 | | do not apply
to rules adopted under this subsection (d). The |
8 | | adoption of emergency rules
authorized by this subsection (d) |
9 | | shall be deemed to be necessary for the
public interest, |
10 | | safety, and welfare. |
11 | | (e) In order to provide for the expeditious and timely |
12 | | implementation
of the State's fiscal year 2000 budget, |
13 | | emergency rules to implement any
provision of this amendatory |
14 | | Act of the 91st General Assembly
or any other budget initiative |
15 | | for fiscal year 2000 may be adopted in
accordance with this |
16 | | Section by the agency charged with administering that
provision |
17 | | or initiative, except that the 24-month limitation on the |
18 | | adoption
of emergency rules and the provisions of Sections |
19 | | 5-115 and 5-125 do not apply
to rules adopted under this |
20 | | subsection (e). The adoption of emergency rules
authorized by |
21 | | this subsection (e) shall be deemed to be necessary for the
|
22 | | public interest, safety, and welfare. |
23 | | (f) In order to provide for the expeditious and timely |
24 | | implementation
of the State's fiscal year 2001 budget, |
25 | | emergency rules to implement any
provision of this amendatory |
26 | | Act of the 91st General Assembly
or any other budget initiative |
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1 | | for fiscal year 2001 may be adopted in
accordance with this |
2 | | Section by the agency charged with administering that
provision |
3 | | or initiative, except that the 24-month limitation on the |
4 | | adoption
of emergency rules and the provisions of Sections |
5 | | 5-115 and 5-125 do not apply
to rules adopted under this |
6 | | subsection (f). The adoption of emergency rules
authorized by |
7 | | this subsection (f) shall be deemed to be necessary for the
|
8 | | public interest, safety, and welfare. |
9 | | (g) In order to provide for the expeditious and timely |
10 | | implementation
of the State's fiscal year 2002 budget, |
11 | | emergency rules to implement any
provision of this amendatory |
12 | | Act of the 92nd General Assembly
or any other budget initiative |
13 | | for fiscal year 2002 may be adopted in
accordance with this |
14 | | Section by the agency charged with administering that
provision |
15 | | or initiative, except that the 24-month limitation on the |
16 | | adoption
of emergency rules and the provisions of Sections |
17 | | 5-115 and 5-125 do not apply
to rules adopted under this |
18 | | subsection (g). The adoption of emergency rules
authorized by |
19 | | this subsection (g) shall be deemed to be necessary for the
|
20 | | public interest, safety, and welfare. |
21 | | (h) In order to provide for the expeditious and timely |
22 | | implementation
of the State's fiscal year 2003 budget, |
23 | | emergency rules to implement any
provision of this amendatory |
24 | | Act of the 92nd General Assembly
or any other budget initiative |
25 | | for fiscal year 2003 may be adopted in
accordance with this |
26 | | Section by the agency charged with administering that
provision |
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1 | | or initiative, except that the 24-month limitation on the |
2 | | adoption
of emergency rules and the provisions of Sections |
3 | | 5-115 and 5-125 do not apply
to rules adopted under this |
4 | | subsection (h). The adoption of emergency rules
authorized by |
5 | | this subsection (h) shall be deemed to be necessary for the
|
6 | | public interest, safety, and welfare. |
7 | | (i) In order to provide for the expeditious and timely |
8 | | implementation
of the State's fiscal year 2004 budget, |
9 | | emergency rules to implement any
provision of this amendatory |
10 | | Act of the 93rd General Assembly
or any other budget initiative |
11 | | for fiscal year 2004 may be adopted in
accordance with this |
12 | | Section by the agency charged with administering that
provision |
13 | | or initiative, except that the 24-month limitation on the |
14 | | adoption
of emergency rules and the provisions of Sections |
15 | | 5-115 and 5-125 do not apply
to rules adopted under this |
16 | | subsection (i). The adoption of emergency rules
authorized by |
17 | | this subsection (i) shall be deemed to be necessary for the
|
18 | | public interest, safety, and welfare. |
19 | | (j) In order to provide for the expeditious and timely |
20 | | implementation of the provisions of the State's fiscal year |
21 | | 2005 budget as provided under the Fiscal Year 2005 Budget |
22 | | Implementation (Human Services) Act, emergency rules to |
23 | | implement any provision of the Fiscal Year 2005 Budget |
24 | | Implementation (Human Services) Act may be adopted in |
25 | | accordance with this Section by the agency charged with |
26 | | administering that provision, except that the 24-month |
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1 | | limitation on the adoption of emergency rules and the |
2 | | provisions of Sections 5-115 and 5-125 do not apply to rules |
3 | | adopted under this subsection (j). The Department of Public Aid |
4 | | may also adopt rules under this subsection (j) necessary to |
5 | | administer the Illinois Public Aid Code and the Children's |
6 | | Health Insurance Program Act. The adoption of emergency rules |
7 | | authorized by this subsection (j) shall be deemed to be |
8 | | necessary for the public interest, safety, and welfare.
|
9 | | (k) In order to provide for the expeditious and timely |
10 | | implementation of the provisions of the State's fiscal year |
11 | | 2006 budget, emergency rules to implement any provision of this |
12 | | amendatory Act of the 94th General Assembly or any other budget |
13 | | initiative for fiscal year 2006 may be adopted in accordance |
14 | | with this Section by the agency charged with administering that |
15 | | provision or initiative, except that the 24-month limitation on |
16 | | the adoption of emergency rules and the provisions of Sections |
17 | | 5-115 and 5-125 do not apply to rules adopted under this |
18 | | subsection (k). The Department of Healthcare and Family |
19 | | Services may also adopt rules under this subsection (k) |
20 | | necessary to administer the Illinois Public Aid Code, the |
21 | | Senior Citizens and Disabled Persons Property Tax Relief Act, |
22 | | the Senior Citizens and Disabled Persons Prescription Drug |
23 | | Discount Program Act (now the Illinois Prescription Drug |
24 | | Discount Program Act), and the Children's Health Insurance |
25 | | Program Act. The adoption of emergency rules authorized by this |
26 | | subsection (k) shall be deemed to be necessary for the public |
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1 | | interest, safety, and welfare.
|
2 | | (l) In order to provide for the expeditious and timely |
3 | | implementation of the provisions of the
State's fiscal year |
4 | | 2007 budget, the Department of Healthcare and Family Services |
5 | | may adopt emergency rules during fiscal year 2007, including |
6 | | rules effective July 1, 2007, in
accordance with this |
7 | | subsection to the extent necessary to administer the |
8 | | Department's responsibilities with respect to amendments to |
9 | | the State plans and Illinois waivers approved by the federal |
10 | | Centers for Medicare and Medicaid Services necessitated by the |
11 | | requirements of Title XIX and Title XXI of the federal Social |
12 | | Security Act. The adoption of emergency rules
authorized by |
13 | | this subsection (l) shall be deemed to be necessary for the |
14 | | public interest,
safety, and welfare.
|
15 | | (m) In order to provide for the expeditious and timely |
16 | | implementation of the provisions of the
State's fiscal year |
17 | | 2008 budget, the Department of Healthcare and Family Services |
18 | | may adopt emergency rules during fiscal year 2008, including |
19 | | rules effective July 1, 2008, in
accordance with this |
20 | | subsection to the extent necessary to administer the |
21 | | Department's responsibilities with respect to amendments to |
22 | | the State plans and Illinois waivers approved by the federal |
23 | | Centers for Medicare and Medicaid Services necessitated by the |
24 | | requirements of Title XIX and Title XXI of the federal Social |
25 | | Security Act. The adoption of emergency rules
authorized by |
26 | | this subsection (m) shall be deemed to be necessary for the |
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1 | | public interest,
safety, and welfare.
|
2 | | (n) In order to provide for the expeditious and timely |
3 | | implementation of the provisions of the State's fiscal year |
4 | | 2010 budget, emergency rules to implement any provision of this |
5 | | amendatory Act of the 96th General Assembly or any other budget |
6 | | initiative authorized by the 96th General Assembly for fiscal |
7 | | year 2010 may be adopted in accordance with this Section by the |
8 | | agency charged with administering that provision or |
9 | | initiative. The adoption of emergency rules authorized by this |
10 | | subsection (n) shall be deemed to be necessary for the public |
11 | | interest, safety, and welfare. The rulemaking authority |
12 | | granted in this subsection (n) shall apply only to rules |
13 | | promulgated during Fiscal Year 2010. |
14 | | (o) In order to provide for the expeditious and timely |
15 | | implementation of the provisions of the State's fiscal year |
16 | | 2011 budget, emergency rules to implement any provision of this |
17 | | amendatory Act of the 96th General Assembly or any other budget |
18 | | initiative authorized by the 96th General Assembly for fiscal |
19 | | year 2011 may be adopted in accordance with this Section by the |
20 | | agency charged with administering that provision or |
21 | | initiative. The adoption of emergency rules authorized by this |
22 | | subsection (o) is deemed to be necessary for the public |
23 | | interest, safety, and welfare. The rulemaking authority |
24 | | granted in this subsection (o) applies only to rules |
25 | | promulgated on or after the effective date of this amendatory |
26 | | Act of the 96th General Assembly through June 30, 2011. |
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1 | | (p) In order to provide for the expeditious and timely |
2 | | implementation of the provisions of Public Act 97-689 this |
3 | | amendatory Act of the 97th General Assembly , emergency rules to |
4 | | implement any provision of Public Act 97-689 this amendatory |
5 | | Act of the 97th General Assembly may be adopted in accordance |
6 | | with this subsection (p) by the agency charged with |
7 | | administering that provision or initiative. The 150-day |
8 | | limitation of the effective period of emergency rules does not |
9 | | apply to rules adopted under this subsection (p), and the |
10 | | effective period may continue through June 30, 2013. The |
11 | | 24-month limitation on the adoption of emergency rules does not |
12 | | apply to rules adopted under this subsection (p). The adoption |
13 | | of emergency rules authorized by this subsection (p) is deemed |
14 | | to be necessary for the public interest, safety, and welfare. |
15 | | (q) In order to provide for the expeditious and timely |
16 | | implementation of Internet gaming, the Division of Internet |
17 | | Gaming may adopt emergency rules to implement the provisions of |
18 | | Section 7.18 of the Illinois Lottery Law. The adoption of |
19 | | emergency rules authorized by this subsection (q) shall be |
20 | | deemed to be necessary for the public interest, safety, and |
21 | | welfare. |
22 | | (Source: P.A. 96-45, eff. 7-15-09; 96-958, eff. 7-1-10; |
23 | | 96-1500, eff. 1-18-11; 97-689, eff. 6-14-12; 97-695, eff. |
24 | | 7-1-12; revised 7-10-12.)
|
25 | | Section 90-3. The State Officials and Employees Ethics Act |
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1 | | is amended by changing Sections 5-45 and 20-10 as follows:
|
2 | | (5 ILCS 430/5-45)
|
3 | | Sec. 5-45. Procurement; revolving door prohibition.
|
4 | | (a) No former officer, member, or State employee, or spouse |
5 | | or
immediate family member living with such person, shall, |
6 | | within a period of one
year immediately after termination of |
7 | | State employment, knowingly accept
employment or receive |
8 | | compensation or fees for services from a person or entity
if |
9 | | the officer, member, or State employee, during the year |
10 | | immediately
preceding termination of State employment, |
11 | | participated personally and
substantially in the award of State |
12 | | contracts, or the issuance of State contract change orders, |
13 | | with a cumulative value
of $25,000
or more to the person or |
14 | | entity, or its parent or subsidiary.
|
15 | | (b) No former officer of the executive branch or State |
16 | | employee of the
executive branch with regulatory or
licensing |
17 | | authority, or spouse or immediate family member living with |
18 | | such
person, shall, within a period of one year immediately |
19 | | after termination of
State employment, knowingly accept |
20 | | employment or receive compensation or fees
for services from a |
21 | | person or entity if the officer
or State
employee, during the |
22 | | year immediately preceding
termination of State employment, |
23 | | participated personally and substantially in making a |
24 | | regulatory or licensing decision that
directly applied to the |
25 | | person or entity, or its parent or subsidiary.
|
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1 | | (c) Within 6 months after the effective date of this |
2 | | amendatory Act of the 96th General Assembly, each executive |
3 | | branch constitutional officer and legislative leader, the |
4 | | Auditor General, and the Joint Committee on Legislative Support |
5 | | Services shall adopt a policy delineating which State positions |
6 | | under his or her jurisdiction and control, by the nature of |
7 | | their duties, may have the authority to participate personally |
8 | | and substantially in the award of State contracts or in |
9 | | regulatory or licensing decisions. The Governor shall adopt |
10 | | such a policy for all State employees of the executive branch |
11 | | not under the jurisdiction and control of any other executive |
12 | | branch constitutional officer.
|
13 | | The policies required under subsection (c) of this Section |
14 | | shall be filed with the appropriate ethics commission |
15 | | established under this Act or, for the Auditor General, with |
16 | | the Office of the Auditor General. |
17 | | (d) Each Inspector General shall have the authority to |
18 | | determine that additional State positions under his or her |
19 | | jurisdiction, not otherwise subject to the policies required by |
20 | | subsection (c) of this Section, are nonetheless subject to the |
21 | | notification requirement of subsection (f) below due to their |
22 | | involvement in the award of State contracts or in regulatory or |
23 | | licensing decisions. |
24 | | (e) The Joint Committee on Legislative Support Services, |
25 | | the Auditor General, and each of the executive branch |
26 | | constitutional officers and legislative leaders subject to |
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1 | | subsection (c) of this Section shall provide written |
2 | | notification to all employees in positions subject to the |
3 | | policies required by subsection (c) or a determination made |
4 | | under subsection (d): (1) upon hiring, promotion, or transfer |
5 | | into the relevant position; and (2) at the time the employee's |
6 | | duties are changed in such a way as to qualify that employee. |
7 | | An employee receiving notification must certify in writing that |
8 | | the person was advised of the prohibition and the requirement |
9 | | to notify the appropriate Inspector General in subsection (f). |
10 | | (f) Any State employee in a position subject to the |
11 | | policies required by subsection (c) or to a determination under |
12 | | subsection (d), but who does not fall within the prohibition of |
13 | | subsection (h) below, who is offered non-State employment |
14 | | during State employment or within a period of one year |
15 | | immediately after termination of State employment shall, prior |
16 | | to accepting such non-State employment, notify the appropriate |
17 | | Inspector General. Within 10 calendar days after receiving |
18 | | notification from an employee in a position subject to the |
19 | | policies required by subsection (c), such Inspector General |
20 | | shall make a determination as to whether the State employee is |
21 | | restricted from accepting such employment by subsection (a) or |
22 | | (b). In making a determination, in addition to any other |
23 | | relevant information, an Inspector General shall assess the |
24 | | effect of the prospective employment or relationship upon |
25 | | decisions referred to in subsections (a) and (b), based on the |
26 | | totality of the participation by the former officer, member, or |
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1 | | State employee in those decisions. A determination by an |
2 | | Inspector General must be in writing, signed and dated by the |
3 | | Inspector General, and delivered to the subject of the |
4 | | determination within 10 calendar days or the person is deemed |
5 | | eligible for the employment opportunity. For purposes of this |
6 | | subsection, "appropriate Inspector General" means (i) for |
7 | | members and employees of the legislative branch, the |
8 | | Legislative Inspector General; (ii) for the Auditor General and |
9 | | employees of the Office of the Auditor General, the Inspector |
10 | | General provided for in Section 30-5 of this Act; and (iii) for |
11 | | executive branch officers and employees, the Inspector General |
12 | | having jurisdiction over the officer or employee. Notice of any |
13 | | determination of an Inspector General and of any such appeal |
14 | | shall be given to the ultimate jurisdictional authority, the |
15 | | Attorney General, and the Executive Ethics Commission. |
16 | | (g) An Inspector General's determination regarding |
17 | | restrictions under subsection (a) or (b) may be appealed to the |
18 | | appropriate Ethics Commission by the person subject to the |
19 | | decision or the Attorney General no later than the 10th |
20 | | calendar day after the date of the determination. |
21 | | On appeal, the Ethics Commission or Auditor General shall |
22 | | seek, accept, and consider written public comments regarding a |
23 | | determination. In deciding whether to uphold an Inspector |
24 | | General's determination, the appropriate Ethics Commission or |
25 | | Auditor General shall assess, in addition to any other relevant |
26 | | information, the effect of the prospective employment or |
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1 | | relationship upon the decisions referred to in subsections (a) |
2 | | and (b), based on the totality of the participation by the |
3 | | former officer, member, or State employee in those decisions. |
4 | | The Ethics Commission shall decide whether to uphold an |
5 | | Inspector General's determination within 10 calendar days or |
6 | | the person is deemed eligible for the employment opportunity. |
7 | | (h) The following officers, members, or State employees |
8 | | shall not, within a period of one year immediately after |
9 | | termination of office or State employment, knowingly accept |
10 | | employment or receive compensation or fees for services from a |
11 | | person or entity if the person or entity or its parent or |
12 | | subsidiary, during the year immediately preceding termination |
13 | | of State employment, was a party to a State contract or |
14 | | contracts with a cumulative value of $25,000 or more involving |
15 | | the officer, member, or State employee's State agency, or was |
16 | | the subject of a regulatory or licensing decision involving the |
17 | | officer, member, or State employee's State agency, regardless |
18 | | of whether he or she participated personally and substantially |
19 | | in the award of the State contract or contracts or the making |
20 | | of the regulatory or licensing decision in question: |
21 | | (1) members or officers; |
22 | | (2) members of a commission or board created by the |
23 | | Illinois Constitution; |
24 | | (3) persons whose appointment to office is subject to |
25 | | the advice and consent of the Senate; |
26 | | (4) the head of a department, commission, board, |
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1 | | division, bureau, authority, or other administrative unit |
2 | | within the government of this State; |
3 | | (5) chief procurement officers, State purchasing |
4 | | officers, and their designees whose duties are directly |
5 | | related to State procurement; and |
6 | | (6) chiefs of staff, deputy chiefs of staff, associate |
7 | | chiefs of staff, assistant chiefs of staff, and deputy |
8 | | governors ; . |
9 | | (7) employees of the Illinois Racing Board; and |
10 | | (8) employees of the Illinois Gaming Board. |
11 | | (i) For the purposes of this Section, with respect to |
12 | | officers or employees of a regional transit board, as defined |
13 | | in this Act, the phrase "person or entity" does not include: |
14 | | (i) the United States government, (ii) the State, (iii) |
15 | | municipalities, as defined under Article VII, Section 1 of the |
16 | | Illinois Constitution, (iv) units of local government, as |
17 | | defined under Article VII, Section 1 of the Illinois |
18 | | Constitution, or (v) school districts. |
19 | | (Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)
|
20 | | (5 ILCS 430/20-10)
|
21 | | Sec. 20-10. Offices of Executive Inspectors General.
|
22 | | (a) Six Five independent Offices of the Executive Inspector |
23 | | General are
created,
one each for the Governor, the Attorney |
24 | | General, the Secretary of State, the
Comptroller, and the |
25 | | Treasurer and one for gaming activities . Each Office shall be |
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1 | | under the direction and
supervision
of an Executive Inspector |
2 | | General and shall be a fully independent office with
separate
|
3 | | appropriations.
|
4 | | (b) The Governor, Attorney General, Secretary of State, |
5 | | Comptroller, and
Treasurer shall each appoint an Executive |
6 | | Inspector General, and the Governor shall appoint an Executive |
7 | | Inspector General for gaming activities. Each appointment must |
8 | | be made without regard to
political affiliation and solely on |
9 | | the basis of integrity and
demonstrated ability.
Appointments |
10 | | shall be made by and with the advice and consent of the
Senate |
11 | | by three-fifths of the elected members concurring by record |
12 | | vote.
Any nomination not acted upon by the Senate within 60 |
13 | | session days of the
receipt thereof shall be deemed to have |
14 | | received the advice and consent of
the Senate. If, during a |
15 | | recess of the Senate, there is a vacancy in an office
of |
16 | | Executive Inspector General, the appointing authority shall |
17 | | make a
temporary appointment until the next meeting of the |
18 | | Senate when the
appointing authority shall make a nomination to |
19 | | fill that office. No person
rejected for an office of Executive |
20 | | Inspector General shall, except by the
Senate's request, be |
21 | | nominated again for that office at the same session of
the |
22 | | Senate or be appointed to that office during a recess of that |
23 | | Senate.
|
24 | | Nothing in this Article precludes the appointment by the |
25 | | Governor, Attorney
General,
Secretary of State, Comptroller, |
26 | | or Treasurer of any other inspector general
required or
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1 | | permitted by law. The Governor, Attorney General, Secretary of |
2 | | State,
Comptroller, and
Treasurer
each may appoint an existing |
3 | | inspector general as the Executive Inspector
General
required |
4 | | by this
Article, provided that such an inspector general is not |
5 | | prohibited by law,
rule,
jurisdiction, qualification, or |
6 | | interest from serving as the Executive
Inspector General
|
7 | | required by
this Article.
An appointing authority may not |
8 | | appoint a relative as an Executive Inspector
General.
|
9 | | Each Executive Inspector General shall have the following |
10 | | qualifications:
|
11 | | (1) has not been convicted of any felony under the laws |
12 | | of this State,
another State, or the United States;
|
13 | | (2) has earned a baccalaureate degree from an |
14 | | institution of higher
education; and
|
15 | | (3) has 5 or more years of cumulative service (A) with |
16 | | a federal,
State, or
local law enforcement agency, at least |
17 | | 2 years of which have been in a
progressive investigatory |
18 | | capacity; (B)
as a
federal, State, or local prosecutor; (C)
|
19 | | as a
senior manager or executive of a federal, State, or |
20 | | local
agency; (D) as a member, an officer,
or a State
or |
21 | | federal judge; or (E) representing any combination of (A) |
22 | | through (D).
|
23 | | The term of each initial Executive Inspector General shall
|
24 | | commence upon qualification and shall run through June 30, |
25 | | 2008. The
initial appointments shall be made within 60 days |
26 | | after the effective
date of this Act.
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1 | | After the initial term, each Executive Inspector General |
2 | | shall serve
for 5-year terms commencing on July 1 of the year |
3 | | of appointment
and running through June 30 of the fifth |
4 | | following year. An
Executive Inspector General may be |
5 | | reappointed to one or more
subsequent terms.
|
6 | | A vacancy occurring other than at the end of a term shall |
7 | | be filled
by the appointing authority only for the balance of |
8 | | the term of the Executive
Inspector General whose office is |
9 | | vacant.
|
10 | | Terms shall run regardless of whether the position is |
11 | | filled.
|
12 | | (c) The Executive Inspector General appointed by the |
13 | | Attorney General shall
have jurisdiction over the Attorney |
14 | | General and all officers and employees of,
and vendors and |
15 | | others doing business with,
State agencies within the |
16 | | jurisdiction of the Attorney General. The Executive
Inspector |
17 | | General appointed by the Secretary of State shall have |
18 | | jurisdiction
over the Secretary of State and all officers and |
19 | | employees of, and vendors and
others doing business with, State |
20 | | agencies within the
jurisdiction of the Secretary of State. The |
21 | | Executive Inspector General
appointed by the Comptroller shall |
22 | | have jurisdiction over the Comptroller and
all officers and |
23 | | employees of, and vendors and others doing business with,
State |
24 | | agencies within the jurisdiction of the Comptroller. The
|
25 | | Executive Inspector General appointed by the Treasurer shall |
26 | | have jurisdiction
over the Treasurer and all officers and |
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1 | | employees of, and vendors and others
doing business with, State |
2 | | agencies within the jurisdiction
of the Treasurer. The |
3 | | Executive Inspector General appointed by the Governor
shall |
4 | | have jurisdiction over (i) the Governor, (ii) the Lieutenant |
5 | | Governor, (iii) all
officers and employees of, and vendors and |
6 | | others doing business with,
executive branch State agencies |
7 | | under the jurisdiction of the
Executive Ethics Commission and |
8 | | not within the jurisdiction of the
Attorney
General, the |
9 | | Secretary of State, the Comptroller, or the Treasurer, or the |
10 | | Executive Inspector General for gaming activities, and (iv) all |
11 | | board members and employees of the Regional Transit Boards and |
12 | | all vendors and others doing business with the Regional Transit |
13 | | Boards.
The Executive Inspector General for gaming activities |
14 | | appointed by the Governor has jurisdiction over the Illinois |
15 | | Gaming Board, all officers and employees of the Illinois Gaming |
16 | | Board, and all activities of the Illinois Gaming Board.
|
17 | | The jurisdiction of each Executive Inspector General is to |
18 | | investigate
allegations of fraud, waste, abuse, mismanagement, |
19 | | misconduct, nonfeasance,
misfeasance,
malfeasance, or |
20 | | violations of this Act or violations of other related
laws and |
21 | | rules.
|
22 | | (d) The compensation for each Executive Inspector General |
23 | | shall be
determined by the Executive Ethics Commission and |
24 | | shall be made from appropriations made to the Comptroller for |
25 | | this purpose. Subject to Section 20-45 of this Act, each
|
26 | | Executive Inspector General has full
authority
to organize his |
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1 | | or her Office of the Executive Inspector General, including the
|
2 | | employment and determination of the compensation of staff, such |
3 | | as deputies,
assistants, and other employees, as |
4 | | appropriations permit. A separate
appropriation
shall be made |
5 | | for each Office of Executive Inspector General.
|
6 | | (e) No Executive Inspector General or employee of the |
7 | | Office of
the Executive Inspector General may, during his or |
8 | | her term of appointment or
employment:
|
9 | | (1) become a candidate for any elective office;
|
10 | | (2) hold any other elected or appointed public office
|
11 | | except for appointments on governmental advisory boards
or |
12 | | study commissions or as otherwise expressly authorized by |
13 | | law;
|
14 | | (3) be actively involved in the affairs of any |
15 | | political party or
political organization; or
|
16 | | (4) advocate for the appointment of another person to |
17 | | an appointed or elected office or position or actively |
18 | | participate in any campaign for any
elective office.
|
19 | | In this subsection an appointed public office means a |
20 | | position authorized by
law that is filled by an appointing |
21 | | authority as provided by law and does not
include employment by |
22 | | hiring in the ordinary course of business.
|
23 | | (e-1) No Executive Inspector General or employee of the |
24 | | Office of the
Executive Inspector General may, for one year |
25 | | after the termination of his or
her appointment or employment:
|
26 | | (1) become a candidate for any elective office;
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1 | | (2) hold any elected public office; or
|
2 | | (3) hold any appointed State, county, or local judicial |
3 | | office.
|
4 | | (e-2) The requirements of item (3) of subsection (e-1) may |
5 | | be waived by the
Executive Ethics Commission.
|
6 | | (f) An Executive Inspector General may be removed only for |
7 | | cause and may
be removed only by the appointing constitutional |
8 | | officer. At the time of the
removal,
the appointing |
9 | | constitutional officer must report to the Executive Ethics
|
10 | | Commission the
justification for the
removal.
|
11 | | (Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11 .)
|
12 | | Section 90-5. The Alcoholism and Other Drug Abuse and |
13 | | Dependency Act is amended by changing Section 5-20 as follows:
|
14 | | (20 ILCS 301/5-20)
|
15 | | Sec. 5-20. Compulsive gambling program.
|
16 | | (a) Subject to appropriation, the Department shall |
17 | | establish a program for
public education, research, and |
18 | | training regarding problem and compulsive
gambling and the |
19 | | treatment and prevention of problem and compulsive gambling.
|
20 | | Subject to specific appropriation for these stated purposes, |
21 | | the program must
include all of the following:
|
22 | | (1) Establishment and maintenance of a toll-free "800" |
23 | | telephone number
to provide crisis counseling and referral |
24 | | services to families experiencing
difficulty as a result of |
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1 | | problem or compulsive gambling.
|
2 | | (2) Promotion of public awareness regarding the |
3 | | recognition and
prevention of problem and compulsive |
4 | | gambling.
|
5 | | (3) Facilitation, through in-service training and |
6 | | other means, of the
availability of effective assistance |
7 | | programs for problem and compulsive
gamblers.
|
8 | | (4) Conducting studies to identify adults and |
9 | | juveniles in this
State who are, or who are at risk of |
10 | | becoming, problem or compulsive gamblers.
|
11 | | (b) Subject to appropriation, the Department shall either |
12 | | establish and
maintain the program or contract with a private |
13 | | or public entity for the
establishment and maintenance of the |
14 | | program. Subject to appropriation, either
the Department or the |
15 | | private or public entity shall implement the toll-free
|
16 | | telephone number, promote public awareness, and conduct |
17 | | in-service training
concerning problem and compulsive |
18 | | gambling.
|
19 | | (c) Subject to appropriation, the Department shall produce |
20 | | and supply the
signs specified in Section 10.7 of the Illinois |
21 | | Lottery Law, Section 34.1 of
the Illinois Horse Racing Act of |
22 | | 1975, Section 4.3 of the Bingo License and Tax
Act, Section 8.1 |
23 | | of the Charitable Games Act, and Section 13.1 of the Illinois |
24 | | Riverboat
Gambling Act.
|
25 | | (Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
|
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1 | | Section 90-8. The Illinois Lottery Law is amended by |
2 | | changing Sections 2 and 9.1 and by adding Section 7.18 as |
3 | | follows:
|
4 | | (20 ILCS 1605/2) (from Ch. 120, par. 1152)
|
5 | | Sec. 2. (a) This Act is enacted to implement and establish |
6 | | within the State
a lottery to be conducted by the State through |
7 | | the Department. The entire net proceeds of the Lottery
are to |
8 | | be used for the support of the State's Common School Fund,
|
9 | | except as provided in subsection (o) of Section 9.1 and |
10 | | Sections 21.2, 21.5, 21.6, 21.7, and 21.8. The General Assembly |
11 | | finds that it is in the public interest for the Department to |
12 | | conduct the functions of the Lottery with the assistance of a |
13 | | private manager under a management agreement overseen by the |
14 | | Department. The Department shall be accountable to the General |
15 | | Assembly and the people of the State through a comprehensive |
16 | | system of regulation, audits, reports, and enduring |
17 | | operational oversight. The Department's ongoing conduct of the |
18 | | Lottery through a management agreement with a private manager |
19 | | shall act to promote and ensure the integrity, security, |
20 | | honesty, and fairness of the Lottery's operation and |
21 | | administration. It is the intent of the General Assembly that |
22 | | the Department shall conduct the Lottery with the assistance of |
23 | | a private manager under a management agreement at all times in |
24 | | a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1), |
25 | | 1953(b)(4).
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1 | | (b) It is further the intent of the General Assembly that |
2 | | the Division of Internet Gaming of the Department shall |
3 | | administer and regulate Internet wagering at all times in a |
4 | | manner consistent with the applicable provisions of State and |
5 | | federal law pursuant to Section 7.18 of this Law. |
6 | | (Source: P.A. 95-331, eff. 8-21-07; 95-673, eff. 10-11-07; |
7 | | 95-674, eff. 10-11-07; 95-876, eff. 8-21-08; 96-34, eff. |
8 | | 7-13-09.)
|
9 | | (20 ILCS 1605/7.18 new) |
10 | | Sec. 7.18. Internet gaming; Division of Internet Gaming; |
11 | | powers. |
12 | | (a) The General Assembly finds that the Internet has become |
13 | | an integral part of everyday life for a significant number of |
14 | | Illinois residents, not only in regards to their professional |
15 | | life, but also in regards to personal business and |
16 | | communication. Internet wagering on games of chance and games |
17 | | of skill is a core form of entertainment for millions of |
18 | | individuals worldwide. In multiple jurisdictions across the |
19 | | world, Internet gaming is legal, regulated, and taxed, |
20 | | generating billions of dollars in revenue for governments. |
21 | | The General Assembly further finds that Illinois residents |
22 | | participate in illegal on-line gambling on unregulated |
23 | | Internet websites operated by offshore operators who are not |
24 | | subject to regulation or taxation in the United States. Neither |
25 | | federal nor Illinois laws provide sufficient consumer |
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1 | | protections for Illinois residents who play games of chance or |
2 | | skill on these illegal websites, nor does the State realize any |
3 | | benefits from the revenues generated nor jobs created by |
4 | | illegal on-line gaming. |
5 | | In an opinion dated September 20, 2011, the United States |
6 | | Department of Justice reversed its previous interpretation of |
7 | | the federal Wire Act, 18 U.S.C. 1804, allowing states, subject |
8 | | to certain restrictions, to legalize and regulate Internet |
9 | | gaming and capture the revenue for the benefit of state |
10 | | governments. The Department of Justice's opinion was prompted |
11 | | in part by a request made by the Department pursuant to Public |
12 | | Act 96-34. In order to protect Illinois residents who wager on |
13 | | games of chance and skill through the Internet, and to capture |
14 | | revenues and create jobs generated from Internet gaming, it is |
15 | | in the best interest of the State and its citizens to regulate |
16 | | this activity by authorizing and establishing a secure, |
17 | | responsible, fair, and legal system of Internet gaming that |
18 | | complies with the United States Department of Justice's |
19 | | September 2011 opinion concerning the federal Wire Act. |
20 | | The General Assembly additionally finds that pursuant to |
21 | | the federal Unlawful Internet Gambling Enforcement Act of 2006 |
22 | | (UIGEA), 31 U.S.C. 5301, the provisions of this Section are |
23 | | consistent and comply with the UIGEA and specifically authorize |
24 | | use of the Internet to place, receive, or otherwise knowingly |
25 | | transmit a bet or wager where Internet wagering complies with |
26 | | this Section and rules adopted pursuant to this Section. |
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1 | | (b) As used in this Section: |
2 | | "Authorized participant" means a person who has a valid |
3 | | Internet wagering account with an Internet gaming licensee and |
4 | | is at least 21 years of age. |
5 | | "Division" means the Division of Internet Gaming within the |
6 | | Department of the Lottery. |
7 | | "Fee-based game" means a game determined by the Division to |
8 | | be a fee-based game, where the Internet gaming licensee charges |
9 | | a fee, rake, or commission for operating the game. |
10 | | "Gross fee-based gaming revenue" means the fee, rake, or |
11 | | commission charged by the Internet gaming licensee for |
12 | | operation of fee-based games. |
13 | | "Gross gaming revenue" is the aggregate of gross fee-based |
14 | | gaming revenue and gross non-fee-based gaming revenue. |
15 | | "Gross non-fee-based gaming revenue" means the aggregate |
16 | | of the amount of net wins received on all non-fee-based games. |
17 | | "Internet" means the international computer network of |
18 | | interoperable packet-switched data networks, inclusive of such |
19 | | additional technological platforms as mobile, satellite, and |
20 | | other electronic distribution channels approved by the |
21 | | Division. |
22 | | "Internet game" means a fee-based or non-fee-based game of |
23 | | skill or chance that is offered by an Internet gaming licensee, |
24 | | as authorized by the Division. "Internet game" also includes |
25 | | gaming tournaments conducted via the Internet in which players |
26 | | compete against one another in one or more of the games |
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1 | | authorized in this definition or by the Division or in approved |
2 | | variations or composites as authorized by the Division. |
3 | | "Internet gaming licensee" means a person, corporation, |
4 | | partnership, or other entity receiving an Internet gaming |
5 | | license from the Division to conduct Internet wagering. |
6 | | "Internet gaming platform" means an interactive set of |
7 | | related data networks controlled by an Internet gaming licensee |
8 | | for the purpose of offering wagering on Internet games to |
9 | | authorized participants. |
10 | | "Internet gaming vendor" means any person, corporation, |
11 | | partnership, or other entity that is certified by the Division |
12 | | to provide or offer to provide goods, software, or services to |
13 | | an Internet gaming licensee, including any goods, software, or |
14 | | services related to or supporting: (i) the acceptance, testing, |
15 | | auditing, management, operation, support, administration, or |
16 | | control of Internet wagers, Internet games, Internet wagering |
17 | | accounts, or Internet gaming platforms or (ii) the management, |
18 | | operation, administration, or control of payment processing |
19 | | systems. The Division shall have the sole and exclusive |
20 | | jurisdiction to determine what persons, corporations, |
21 | | partnerships, or other entities require certification pursuant |
22 | | to this Act and the rules adopted pursuant to this Act. |
23 | | Notwithstanding this definition, the licensing of trademarks, |
24 | | names, likenesses, graphics, or other images, without more, |
25 | | shall not render a licensor of such intellectual property an |
26 | | Internet gaming vendor. |
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1 | | "Internet wagering" means the placing of wagers with an |
2 | | Internet gaming licensee by persons who are either physically |
3 | | present in Illinois when placing a wager or otherwise permitted |
4 | | to place a wager by law. The intermediate routing of electronic |
5 | | data in connection with Internet wagering (including across |
6 | | state lines) shall not determine the location or locations in |
7 | | which a wager is initiated, received, or otherwise made. |
8 | | "Internet wagering account" means an electronic ledger |
9 | | wherein the following types of transactions relative to the |
10 | | Internet gaming platform are recorded: (i) deposits; (ii) |
11 | | withdrawals; (iii) amounts wagered; (iv) amounts paid on |
12 | | winning wagers; (v) service or other transaction-related |
13 | | charges authorized by the patron, if any; (vi) adjustments to |
14 | | the account; and (vii) any other information required by the |
15 | | Division. |
16 | | "Net wins" means the amount of Internet wagers received by |
17 | | the Internet gaming licensee on non-fee based games less the |
18 | | amount paid by the Internet gaming licensee as winnings on that |
19 | | non-fee based game. |
20 | | "Non-fee-based game" means a game determined by the |
21 | | Division to be a non-fee-based game, where (i) the player plays |
22 | | against the Internet gaming licensee and (ii) the Internet |
23 | | gaming licensee is banking the game and its bottom line is |
24 | | affected by players' wins and losses. |
25 | | (c) Internet wagering, as defined in this Section, is |
26 | | hereby authorized to the extent that it is carried out in |
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1 | | accordance with the provisions of this Section. |
2 | | (d) The Division of Internet Gaming is established within |
3 | | the Department of the Lottery and shall have all powers and |
4 | | duties as specified in this Section and all other powers |
5 | | necessary and proper to enable it to fully and effectively |
6 | | execute the provisions of this Section for the purpose of |
7 | | administering, regulating, and enforcing the system of |
8 | | Internet gaming established by this Section. The Division of |
9 | | Internet Gaming's jurisdiction shall extend under this Section |
10 | | to every person, corporation, partnership, or other entity |
11 | | involved in Internet gaming operations. To the extent |
12 | | consistent with the provisions of this Section, the Division |
13 | | shall be subject to and governed by provisions of this Article |
14 | | and all of the laws and rules applicable to the Department. The |
15 | | Division shall not be subject to any private management |
16 | | agreement established pursuant to Section 9.1 of this Act. The |
17 | | Division of Internet Gaming is also authorized to enter into |
18 | | agreements with other gaming entities, including foreign |
19 | | entities, for the purpose of facilitating, administering, and |
20 | | regulating multijurisdiction Internet gaming to the extent |
21 | | consistent with State and federal laws and the laws of any |
22 | | foreign jurisdiction, if such jurisdiction is a party to the |
23 | | multijurisdictional agreement. The Division shall not |
24 | | authorize, administer, or otherwise maintain a system for |
25 | | offering wagering on any amateur or professional sporting event |
26 | | or contest, unless doing so is consistent with State and |
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1 | | federal laws. Further, notwithstanding any other provision of |
2 | | this Section, wagers may be accepted from persons who are not |
3 | | physically present in this State if the Division determines |
4 | | that such wagering is not inconsistent with federal law or the |
5 | | law of the jurisdiction, including any foreign nation, in which |
6 | | any such person is located, or such wagering is conducted |
7 | | pursuant to a multijurisdictional agreement that is not |
8 | | inconsistent with federal law to which this State is a party. |
9 | | The Division shall be funded with moneys appropriated to the |
10 | | Department of the Lottery. |
11 | | (e) The Division of Internet Gaming is authorized to issue |
12 | | Internet gaming licenses to persons, firms, partnerships, or |
13 | | corporations that apply for such licensure upon a determination |
14 | | by the Division that the applicant is eligible for an Internet |
15 | | gaming license pursuant to this Section and rules adopted by |
16 | | the Division. An Internet gaming license issued pursuant to |
17 | | this Section shall be valid for a period of 5 years after the |
18 | | date of issuance and shall be renewable thereafter for an |
19 | | additional 5 years based on a determination by the Division |
20 | | that the licensee continues to meet all the requirements of |
21 | | this Section and the Division's rules. Notwithstanding any |
22 | | other law to the contrary, any assignment or transfer of an |
23 | | interest in an Internet gaming license, or a greater than 10% |
24 | | interest (direct or indirect) in any entity holding such a |
25 | | license, is subject to the written approval by the Division. |
26 | | Approved transferees are subject to a $250,000 non-refundable |
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1 | | application fee. Eligibility for application for an Internet |
2 | | gaming license shall be limited to the following: (i) any |
3 | | person or entity that holds a valid and unrevoked owners |
4 | | license issued pursuant to the Illinois Gambling Act; (ii) any |
5 | | person or entity that holds a valid and unrevoked electronic |
6 | | gaming license issued pursuant to the Illinois Gambling Act; |
7 | | and (iii) any person or entity that holds a valid and unrevoked |
8 | | advance deposit wagering license issued pursuant to the |
9 | | Illinois Horse Racing Act of 1975. No Internet gaming license |
10 | | shall be granted to any applicant who has accepted wagers via |
11 | | the Internet in contravention of this Section or United States |
12 | | law in the 10 years preceding the application date. |
13 | | A qualified applicant may apply to the Division for an |
14 | | Internet gaming license to offer wagering on Internet games as |
15 | | provided in this Act. The application shall be made on forms |
16 | | provided by the Division and shall contain such information as |
17 | | the Division prescribes, including, but not limited to, |
18 | | detailed information regarding the ownership and management of |
19 | | the applicant, detailed personal information regarding the |
20 | | applicant, financial information regarding the applicant, and |
21 | | the gaming history and experience of the applicant in the |
22 | | United States and other jurisdictions. Each application shall |
23 | | be accompanied by a non-refundable application fee of $250,000. |
24 | | An incomplete application shall be cause for denial of a |
25 | | license by the Division. |
26 | | All information, records, interviews, reports, statements, |
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1 | | memoranda, or other data supplied to or used by the Division in |
2 | | the course of its review or investigation of an application for |
3 | | an Internet gaming license or a renewal under this Section |
4 | | shall be strictly confidential and used only for the purpose of |
5 | | evaluating an applicant for a license or a renewal. |
6 | | Notwithstanding any law to the contrary, such information is |
7 | | not subject to the requirements of the Freedom of Information |
8 | | Act. |
9 | | Any person, association, corporation, partnership, or |
10 | | entity who (i) knowingly makes materially false statements in |
11 | | order to obtain an Internet gaming license; (ii) knowingly |
12 | | advertises within the State of Illinois any game, product, or |
13 | | feature that is not authorized by his or her license; or (iii) |
14 | | violates any other provision of this Section, or any rule |
15 | | adopted pursuant to this Section, is guilty of a Class B |
16 | | misdemeanor. A person, association, corporation, partnership, |
17 | | or entity who commits a second or subsequent violation commits |
18 | | a Class A misdemeanor. In the case of an association, |
19 | | corporation, partnership, or entity, imprisonment may be |
20 | | imposed upon its officers who knowingly participated in the |
21 | | violation. |
22 | | An application shall be filed and considered in accordance |
23 | | with the rules of the Division. The Division shall adopt rules |
24 | | to effectuate the provisions of this subsection (e) within 30 |
25 | | days after the effective date of this amendatory Act of the |
26 | | 98th General Assembly. |
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1 | | A license fee of $20,000,000 shall be paid to the Division |
2 | | by an Internet gaming licensee at the time of issuance of the |
3 | | license. All application and license fees shall be deposited |
4 | | into the State Lottery Fund. The license fee imposed by this |
5 | | subsection (e) shall constitute an advance payment of Internet |
6 | | wagering taxes owed by the Internet gaming licensee pursuant to |
7 | | subsection (m) of this Section. |
8 | | (f) The Division is authorized to certify Internet gaming |
9 | | vendors to provide goods, software, or services to Internet |
10 | | gaming licensees. Certification by the Division of an Internet |
11 | | gaming vendor shall be for a period of 5 years and shall be |
12 | | renewable thereafter for an additional 5 years based on a |
13 | | determination by the Division that the Internet gaming vendor |
14 | | continues to meet all the requirements of this Section and the |
15 | | Division's rules. |
16 | | A person, corporation, partnership, or other entity may |
17 | | apply to the Division to become an Internet gaming vendor as |
18 | | provided in this Act and the rules of the Division. The |
19 | | application shall be made on forms provided by the Division and |
20 | | shall contain such information as the Division prescribes, |
21 | | including, but not limited to, detailed information regarding |
22 | | the ownership and management of the applicant, detailed |
23 | | personal information regarding the applicant, financial |
24 | | information regarding the applicant, and the gaming history and |
25 | | experience of the applicant in the United States and other |
26 | | jurisdictions. Each application shall be accompanied by a |
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1 | | non-refundable application fee, such application fee to be |
2 | | determined by the Division, but shall not exceed $250,000. An |
3 | | incomplete application shall be cause for denial of |
4 | | certification. No certification shall be granted to an Internet |
5 | | gaming vendor who has accepted wagers via the Internet in |
6 | | contravention of this Act or in contravention of the any law of |
7 | | the United States. |
8 | | All information, records, interviews, reports, statements, |
9 | | memoranda, or other data supplied to or used by the Division in |
10 | | the course of its review or investigation of an application for |
11 | | certification as an Internet gaming vendor shall be strictly |
12 | | confidential and shall only be used for the purpose of |
13 | | evaluating an applicant for a certification. Notwithstanding |
14 | | any law to the contrary, such information is not subject to the |
15 | | requirements of the Freedom of Information Act. |
16 | | Any person, association, corporation, partnership, or |
17 | | entity who (i) knowingly makes materially false statements in |
18 | | order to obtain certification as an Internet gaming vendor or |
19 | | (ii) violates any other provision of this Section, or any rule |
20 | | adopted pursuant to this Section, is guilty of a Class B |
21 | | misdemeanor. A person, association, corporation, partnership, |
22 | | or entity who commits a second or subsequent violation commits |
23 | | a Class A misdemeanor. In the case of an association, |
24 | | corporation, partnership, or entity, imprisonment may be |
25 | | imposed upon its officers who knowingly participated in the |
26 | | violation. |
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1 | | (g) The Division shall have all the powers necessary or |
2 | | desirable to effectuate the provisions of this Section, |
3 | | including, but not limited to, the following powers: |
4 | | (1) To develop qualifications, standards, and |
5 | | procedures for approval and licensure of Internet gaming |
6 | | licensees and certification of Internet gaming vendors. |
7 | | (2) To decide promptly and in reasonable order all |
8 | | license applications and to approve, deny, suspend, |
9 | | revoke, restrict, or refuse to renew Internet gaming |
10 | | licenses and Internet gaming vendor certifications. Any |
11 | | party aggrieved by an action of the Division denying, |
12 | | suspending, revoking, restricting, or refusing to renew a |
13 | | license may request a hearing before the Division. A |
14 | | request for hearing must be made to the Division in writing |
15 | | within 5 days after service of notice of the action by the |
16 | | Division. Notice of action by the Division shall be served |
17 | | either by personal delivery or by certified mail, postage |
18 | | prepaid, to the aggrieved party. Notice served by certified |
19 | | mail shall be deemed complete on the business day following |
20 | | the date of such mailing. The Division shall conduct all |
21 | | requested hearings promptly and in reasonable order. |
22 | | (3) To conduct all hearings pertaining to civil |
23 | | violations of this Section or rules adopted pursuant to |
24 | | this Section. Such hearings shall be governed by Section 8 |
25 | | of this Act. The Division shall further adopt hearing rules |
26 | | and procedures for conducting hearings pursuant to this |
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1 | | Section. In such hearings, reproduced copies of any of the |
2 | | Division's records relating to an Internet gaming licensee |
3 | | or Internet gaming vendor, including (i) any notices |
4 | | prepared in the Division's ordinary course of business and |
5 | | (ii) any books, records, or other documents offered in the |
6 | | name of the Division under certificate of the Executive |
7 | | Director, or any officer or employee of the Division |
8 | | designated in writing by the Executive Director, shall, |
9 | | without further proof, be admitted into evidence in any |
10 | | hearing before the hearing officers or any legal proceeding |
11 | | and shall be prima facie proof of the information contained |
12 | | therein. |
13 | | The Office of the Attorney General shall prosecute all |
14 | | criminal violations of this Section or rules adopted |
15 | | pursuant to this Section. |
16 | | (4) To provide for the establishment and collection of |
17 | | all license and certification fees and taxes imposed by |
18 | | this Section and the rules adopted pursuant to this |
19 | | Section. All such fees and taxes shall be deposited into |
20 | | the State Lottery Fund. |
21 | | (5) To develop and enforce testing, audit, and |
22 | | certification requirements and schedules for Internet |
23 | | gaming platforms, Internet wagering, and Internet wagering |
24 | | accounts, including, without limitation, age and |
25 | | identification verification software, geolocation |
26 | | software, Internet games, and gaming hub software. |
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1 | | (6) To develop and enforce requirements for |
2 | | responsible gaming and player protection, including |
3 | | privacy and confidentiality standards and duties. |
4 | | (7) To develop and enforce requirements for accepting |
5 | | Internet wagers, Internet wagering accounts, and |
6 | | authorized participants and minimum insurance |
7 | | requirements. |
8 | | (8) To develop and promote standards governing |
9 | | contracts between Internet gaming licensees and the |
10 | | payments industry. |
11 | | (9) To develop and enforce standards and requirements |
12 | | regarding anti-fraud, anti-money laundering, and |
13 | | anti-collusion methods. |
14 | | (10) To develop protocols related to the security of |
15 | | and disputes arising over Internet wagers and Internet |
16 | | wagering accounts. |
17 | | (11) To be present through its inspectors and agents |
18 | | upon the premises of any location where Internet gaming |
19 | | operations are conducted by an Internet gaming licensee or |
20 | | where components of an Internet gaming licensee's Internet |
21 | | gaming platform are located, housed, or otherwise |
22 | | maintained. |
23 | | (12) To adopt by rule a code of conduct governing |
24 | | Division employees that ensures, to the maximum extent |
25 | | possible, that persons subject to this Section avoid |
26 | | situations, relationships, or associations that may |
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1 | | represent or lead to an actual or perceived conflict of |
2 | | interest. |
3 | | (13) To develop and administer civil penalties for |
4 | | Internet gaming licensees and Internet gaming vendors who |
5 | | violate this Section or the rules adopted pursuant to this |
6 | | Section. |
7 | | (14) To audit and inspect, on reasonable notice, books |
8 | | and records relevant to Internet gaming operations, |
9 | | Internet wagers, Internet wagering accounts, Internet |
10 | | games, or Internet gaming platforms, including without |
11 | | limitation, those books and records regarding financing or |
12 | | accounting, marketing or operational materials, or any |
13 | | other such materials held by or in the custody of any |
14 | | Internet gaming licensee or Internet gaming vendor. The |
15 | | Division may assert such authority by administrative |
16 | | subpoena, which may further set forth relevant document |
17 | | requests and interrogatories, and which shall be |
18 | | enforceable in the Circuit Court of Cook County in the |
19 | | State of Illinois. |
20 | | (15) To determine whether an Internet game is a |
21 | | fee-based game or non-fee-based game. |
22 | | (16) To acquire or lease real property and make |
23 | | improvements thereon and acquire by lease or by purchase |
24 | | personal property, including, but not limited to: |
25 | | (A) computers hardware; |
26 | | (B) mechanical, electronic, and online equipment |
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1 | | and terminals; and |
2 | | (C) intangible property, including, but not |
3 | | limited to, computer programs, software, and systems. |
4 | | (h) The Division shall adopt and enforce such rules |
5 | | governing the administration and conduct of Internet gaming as |
6 | | it deems necessary to carry out the purpose of this Section. |
7 | | These rules shall be subject to the provisions of the Illinois |
8 | | Administrative Procedure Act and may include, but shall not be |
9 | | limited to: |
10 | | (1) the types of Internet games to be offered; |
11 | | (2) price points for Internet games; |
12 | | (3) player fees and percentage of rake commission or |
13 | | other fee for Internet games; |
14 | | (4) forms of payment accepted for Internet games; |
15 | | (5) the number, type, and amount of prizes for Internet |
16 | | games; |
17 | | (6) the method of selecting winners and validating |
18 | | winnings; |
19 | | (7) the frequency of Internet games; |
20 | | (8) responsible gaming; |
21 | | (9) technical and financial standards for Internet |
22 | | wagering, Internet wagering accounts, and Internet gaming |
23 | | platforms, systems, and software or other electronic |
24 | | components for Internet gaming; |
25 | | (10) such other matters necessary or desirable for the |
26 | | efficient and economical operation and administration of |
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1 | | Internet gaming and for the convenience of authorized |
2 | | Internet gaming participants and Internet gaming licensees |
3 | | and certified Internet gaming vendors. |
4 | | (i) Notwithstanding any law to the contrary, the |
5 | | Superintendent of the Lottery shall hire an Executive Director |
6 | | who shall be responsible to the Superintendent and shall serve |
7 | | subject only to removal by the Superintendent for incompetence, |
8 | | neglect of duty, or malfeasance in office. The Executive |
9 | | Director shall be responsible for the supervision and direction |
10 | | of the Division staff and for the necessary administrative |
11 | | activities of the Division, subject only to the direction and |
12 | | approval of the Superintendent notwithstanding any law to the |
13 | | contrary. |
14 | | Notwithstanding any law to the contrary, the Executive |
15 | | Director shall hire and employ employees as may be necessary to |
16 | | carry out the provisions of this Law or to perform the duties |
17 | | and exercise the powers conferred by law upon the Division. All |
18 | | employees of the Division shall receive the compensation fixed |
19 | | by the Executive Director, subject only to the Superintendent. |
20 | | The Superintendent, Executive Director, and Division employees |
21 | | shall be reimbursed for all actual and necessary traveling and |
22 | | other expenses and disbursements necessarily incurred or made |
23 | | by them in the discharge of their official duties. The |
24 | | Superintendent and Executive Director may also incur necessary |
25 | | expenses for office space, furniture, stationery, printing, |
26 | | operations, and other incidental expenses. |
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1 | | The Executive Director shall report monthly to the |
2 | | Superintendent and the Lottery Control Board a full and |
3 | | complete statement of Internet gaming revenues, other expenses |
4 | | for each month, and the amounts to be transferred to the State |
5 | | Lottery Fund pursuant to this Section. The Executive Director |
6 | | shall also make an annual report, which shall include a full |
7 | | and complete statement of Internet gaming revenues and other |
8 | | expenses, to the Superintendent, the Governor, and the Board. |
9 | | All reports required by this subsection shall be public and |
10 | | copies of all such reports shall be sent to the Speaker of the |
11 | | House of Representatives, the President of the Senate, the |
12 | | Minority Leader of the House of Representatives, and the |
13 | | Minority Leader of the Senate. |
14 | | Subject to appropriation, the Executive Director shall |
15 | | continue to apprise himself or herself as to: (i) the operation |
16 | | and the administration of similar Internet gaming laws that may |
17 | | be in effect in other states or countries; (ii) any relevant |
18 | | literature on Internet gaming that from time to time may be |
19 | | published or available; (iii) any federal laws and regulations |
20 | | that may affect the operation of Internet gaming; and (iv) the |
21 | | reaction of Illinois citizens to existing and potential |
22 | | features of Internet gaming with a view to recommending or |
23 | | effecting changes that will tend to serve the purposes of this |
24 | | Section. |
25 | | (j) An Internet gaming licensee's Internet gaming platform |
26 | | shall provide one or more mechanisms to reasonably verify that |
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1 | | a participant is 21 years of age or older and that wagering on |
2 | | Internet games is limited to transactions that are initiated |
3 | | and received or otherwise made exclusively within the State of |
4 | | Illinois. A participant must satisfy the verification |
5 | | requirements before he or she may establish an Internet gaming |
6 | | account and wager on Internet games offered by Internet gaming |
7 | | licensees. Further, all servers on which any Internet games are |
8 | | operated and conducted (and all underlying material |
9 | | technology) shall be located in the State of Illinois, unless |
10 | | the Division has otherwise authorized another location. At such |
11 | | a time that a legally compliant mechanism is established to |
12 | | permit wagering on Internet games by individuals physically |
13 | | located outside of the State, the Division may adopt rules and |
14 | | procedures to allow and govern wagering by those individuals |
15 | | and shall have the authority to enter into multijurisdictional |
16 | | agreements and related and ancillary agreements in order to |
17 | | effectuate such wagering. An Internet gaming licensee's |
18 | | Internet gaming platform shall also provide mechanisms |
19 | | designed to detect and prevent the unauthorized use of Internet |
20 | | wagering accounts and to detect and prevent fraud, money |
21 | | laundering, and collusion. If any participant in Internet |
22 | | gaming violates any provisions of this Section or rule adopted |
23 | | by the Division, then the participant's winnings shall be |
24 | | forfeited. Any forfeited winnings shall be deposited into the |
25 | | State Lottery Fund. |
26 | | The following persons shall not be authorized to establish |
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1 | | Internet gaming accounts or wager on Internet games offered by |
2 | | Internet gaming licensees, except where required and |
3 | | authorized by the Division for testing purposes or to otherwise |
4 | | fulfill the purposes set forth in this Act: (i) any minor under |
5 | | 21 years of age; (ii) any current member of the Lottery Control |
6 | | Board; (iii) any current officer or other person employed by |
7 | | the Department of the Lottery, the Division of Internet Gaming, |
8 | | the Illinois Racing Board, or the Illinois Gaming Board; (iv) |
9 | | any spouse, civil union partner, child, brother, sister, or |
10 | | parent residing as a member of the same household in the |
11 | | principal place of abode of any persons identified in (ii) or |
12 | | (iii); and (iv) any individual whose name appears in the |
13 | | Division's responsible gaming database. |
14 | | (k) The Division shall develop responsible gaming |
15 | | measures, including a statewide responsible gaming database |
16 | | identifying individuals who shall be prohibited from |
17 | | establishing an Internet wagering account or participating in |
18 | | Internet gaming offered by an Internet gaming licensee. The |
19 | | Executive Director may place a person on the responsible gaming |
20 | | database if that person (i) has been convicted in any |
21 | | jurisdiction of a felony, any crime of moral turpitude, or a |
22 | | crime involving gaming; (ii) has violated this Act, the |
23 | | Illinois Horse Racing Act of 1975, the Riverboat Gambling Act, |
24 | | the Raffles Act, the Illinois Pull Tabs and Jar Games Act, the |
25 | | Bingo License and Tax Act, the Charitable Games Act, or the |
26 | | Video Gaming Act; (iii) has performed any act or had a |
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1 | | notorious or unsavory reputation that would adversely affect |
2 | | public confidence and trust in gaming; or (iv) has his or her |
3 | | name on any valid and current exclusion list from another |
4 | | jurisdiction in the United States or foreign jurisdiction. By |
5 | | rule, the Division shall adopt procedures for the establishment |
6 | | and maintenance of the responsible gaming database. The |
7 | | Illinois Gaming Board, the Illinois Racing Board, and the |
8 | | Department of the Lottery shall, in a format specified by the |
9 | | Division, provide the Division with names of individuals to be |
10 | | included in the responsible gaming database. The Division may |
11 | | impose reasonable fees on persons authorized to access and use |
12 | | the responsible gaming database. |
13 | | An Internet gaming licensee's Internet gaming platform |
14 | | shall offer in a clear, conspicuous, and accessible manner, |
15 | | responsible gambling services and technical controls to |
16 | | participants, including both temporary and permanent |
17 | | self-exclusion for all games offered; the ability for |
18 | | participants to establish their own periodic deposit and |
19 | | wagering limits and maximum playing times; referrals to crisis |
20 | | counseling and referral services for individuals and families |
21 | | experiencing difficulty as a result of problem or compulsive |
22 | | gambling; and other services as the Division reasonably may |
23 | | determine are necessary or appropriate to reduce and prevent |
24 | | problem gambling. Any authorized participant who is allowed to |
25 | | participate in Internet gaming may voluntarily prohibit |
26 | | themselves from establishing an Internet gaming account. The |
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1 | | Division shall incorporate the voluntary self-exclusion list |
2 | | into the responsible gaming database and maintain both the |
3 | | self-exclusion list and the responsible gaming database in a |
4 | | confidential manner. Notwithstanding any law to the contrary, |
5 | | the self-exclusion list and responsible gaming database are not |
6 | | public records subject to copying and disclosure under the |
7 | | Freedom of Information Act. |
8 | | (l) There is created the Responsible Internet Gaming |
9 | | Advisory Board, consisting of the following members: |
10 | | (1) the Superintendent of the Lottery, who shall be an |
11 | | ex officio member and shall serve as Chairperson; |
12 | | (2) the Executive Director of the Division of Internet |
13 | | Gaming, who shall be an ex officio member; |
14 | | (3) one representative from a national organization |
15 | | dedicated to the study and prevention of problem gambling, |
16 | | appointed by the Superintendent; |
17 | | (4) one member who is an academic professional engaged |
18 | | in the study of problem gambling at a university or other |
19 | | institution of higher learning, appointed by the |
20 | | Superintendent; |
21 | | (5) one member who has professional experience and |
22 | | expertise in the field of technical and systemic controls |
23 | | for responsible Internet gaming, appointed by the |
24 | | Superintendent; and |
25 | | (6) one member who is an Illinois citizen and a member |
26 | | of the public, appointed by the Superintendent. |
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1 | | Each Advisory Board member shall serve for a term of 4 |
2 | | years and until his or her successor is appointed and |
3 | | qualified. However, in making initial appointments, 2 shall be |
4 | | appointed to serve for 2 years and 2 shall be appointed to |
5 | | serve for 4 years. Appointments to fill vacancies shall be made |
6 | | in the same manner as original appointments for the unexpired |
7 | | portion of the vacated term. Initial terms shall begin on the |
8 | | effective date of this amendatory Act of the 98th General |
9 | | Assembly. Each member of the Advisory Board shall be eligible |
10 | | for reappointment at the discretion of the Superintendent.
A |
11 | | member of the Advisory Board may be removed from office for |
12 | | just cause. Advisory Board members shall receive no |
13 | | compensation, but shall be reimbursed for expenses incurred in |
14 | | connection with their duties as Advisory Board members. |
15 | | Four members shall constitute a quorum. A majority vote of |
16 | | the Advisory Board is required for an Advisory Board decision. |
17 | | The Advisory Board shall meet no less often than once every 6 |
18 | | months and shall meet as often as the Chairperson deems |
19 | | necessary. Advisory Board members shall not be liable for any |
20 | | of their acts, omissions, decisions, or any other conduct in |
21 | | connection with their duties on the Advisory Board, except |
22 | | those involving willful, wanton, or intentional misconduct. |
23 | | The Advisory Board shall make recommendations to the |
24 | | Executive Director regarding the development of rules and |
25 | | procedures to reduce and prevent problem or compulsive gambling |
26 | | and youth gambling and to ensure the conduct of safe, fair, and |
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1 | | responsible Internet gaming. The Advisory Board may have such |
2 | | powers as may be granted by the Executive Director to carry out |
3 | | the provisions of this Section regarding responsible Internet |
4 | | gaming. |
5 | | (m) A tax is hereby imposed on Internet gaming licensees, |
6 | | based on the gross gaming revenue received by an Internet |
7 | | gaming licensee from Internet games authorized pursuant to this |
8 | | Section, at the following rates: |
9 | | (1) for all non-fee-based games, the tax shall be 20% |
10 | | of annual gross non-fee-based gaming revenue; and |
11 | | (2) for all fee-based games the tax shall be 15% of |
12 | | annual gross fee-based gaming revenue. |
13 | | The taxes imposed by this subsection (m) shall be paid by |
14 | | the Internet gaming licensee to the Division no later than 5:00 |
15 | | p.m. on the day after the day when the wagers were made. |
16 | | In recognition of the advance tax revenue paid by the |
17 | | Internet gaming licensee in its license fee, an Internet gaming |
18 | | licensee shall be taxed at the following rates during the |
19 | | initial 5-year license term: |
20 | | (1) for all non-fee-based games, the tax shall be 10% |
21 | | of annual gross non-fee-based gaming revenue up to and |
22 | | including $200,000,000 of gross gaming revenue and 20% of |
23 | | annual gross non-fee-based gaming revenue in excess |
24 | | $200,000,000 of gross gaming revenue; and |
25 | | (2) for all fee-based games, the tax shall be 7.5% of |
26 | | annual gross fee-based gaming revenue up to and including |
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1 | | $200,000,000 of gross gaming revenue and 15% of annual |
2 | | gross fee-based gaming revenue in excess $200,000,000 of |
3 | | gross gaming revenue. |
4 | | (n) Beginning on the effective date of this amendatory Act |
5 | | of the 98th General Assembly, from the tax revenue deposited in |
6 | | the State Lottery Fund under this Section, $10,000,000 shall be |
7 | | paid annually to the Department of Human Services for the |
8 | | administration of programs to treat problem gambling. |
9 | | (o) Beginning on the effective date of this amendatory Act |
10 | | of the 98th General Assembly, from the tax revenue deposited in |
11 | | the State Lottery Fund under this Section, $5,000,000 shall be |
12 | | transferred into the State Fairgrounds Capital Improvements |
13 | | Fund annually. |
14 | | (p) Beginning on the effective date of this amendatory Act |
15 | | of the 98th General Assembly, after the amounts specified in |
16 | | subsections (n) and (o) have been paid or transferred, all |
17 | | remaining tax revenue deposited in the State Lottery Fund |
18 | | pursuant to this Section shall be transferred to the Pension |
19 | | Stabilization Fund.
|
20 | | (20 ILCS 1605/9.1) |
21 | | Sec. 9.1. Private manager and management agreement. |
22 | | (a) As used in this Section: |
23 | | "Offeror" means a person or group of persons that responds |
24 | | to a request for qualifications under this Section. |
25 | | "Request for qualifications" means all materials and |
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1 | | documents prepared by the Department to solicit the following |
2 | | from offerors: |
3 | | (1) Statements of qualifications. |
4 | | (2) Proposals to enter into a management agreement, |
5 | | including the identity of any prospective vendor or vendors |
6 | | that the offeror intends to initially engage to assist the |
7 | | offeror in performing its obligations under the management |
8 | | agreement. |
9 | | "Final offer" means the last proposal submitted by an |
10 | | offeror in response to the request for qualifications, |
11 | | including the identity of any prospective vendor or vendors |
12 | | that the offeror intends to initially engage to assist the |
13 | | offeror in performing its obligations under the management |
14 | | agreement. |
15 | | "Final offeror" means the offeror ultimately selected by |
16 | | the Governor to be the private manager for the Lottery under |
17 | | subsection (h) of this Section. |
18 | | (b) By September 15, 2010, the Governor shall select a |
19 | | private manager for the total management of the Lottery with |
20 | | integrated functions, such as lottery game design, supply of |
21 | | goods and services, and advertising and as specified in this |
22 | | Section. |
23 | | (c) Pursuant to the terms of this subsection, the |
24 | | Department shall endeavor to expeditiously terminate the |
25 | | existing contracts in support of the Lottery in effect on the |
26 | | effective date of this amendatory Act of the 96th General |
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1 | | Assembly in connection with the selection of the private |
2 | | manager. As part of its obligation to terminate these contracts |
3 | | and select the private manager, the Department shall establish |
4 | | a mutually agreeable timetable to transfer the functions of |
5 | | existing contractors to the private manager so that existing |
6 | | Lottery operations are not materially diminished or impaired |
7 | | during the transition. To that end, the Department shall do the |
8 | | following: |
9 | | (1) where such contracts contain a provision |
10 | | authorizing termination upon notice, the Department shall |
11 | | provide notice of termination to occur upon the mutually |
12 | | agreed timetable for transfer of functions; |
13 | | (2) upon the expiration of any initial term or renewal |
14 | | term of the current Lottery contracts, the Department shall |
15 | | not renew such contract for a term extending beyond the |
16 | | mutually agreed timetable for transfer of functions; or |
17 | | (3) in the event any current contract provides for |
18 | | termination of that contract upon the implementation of a |
19 | | contract with the private manager, the Department shall |
20 | | perform all necessary actions to terminate the contract on |
21 | | the date that coincides with the mutually agreed timetable |
22 | | for transfer of functions. |
23 | | If the contracts to support the current operation of the |
24 | | Lottery in effect on the effective date of this amendatory Act |
25 | | of the 96th General Assembly are not subject to termination as |
26 | | provided for in this subsection (c), then the Department may |
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1 | | include a provision in the contract with the private manager |
2 | | specifying a mutually agreeable methodology for incorporation. |
3 | | (c-5) The Department shall include provisions in the |
4 | | management agreement whereby the private manager shall, for a |
5 | | fee, and pursuant to a contract negotiated with the Department |
6 | | (the "Employee Use Contract"), utilize the services of current |
7 | | Department employees to assist in the administration and |
8 | | operation of the Lottery. The Department shall be the employer |
9 | | of all such bargaining unit employees assigned to perform such |
10 | | work for the private manager, and such employees shall be State |
11 | | employees, as defined by the Personnel Code. Department |
12 | | employees shall operate under the same employment policies, |
13 | | rules, regulations, and procedures, as other employees of the |
14 | | Department. In addition, neither historical representation |
15 | | rights under the Illinois Public Labor Relations Act, nor |
16 | | existing collective bargaining agreements, shall be disturbed |
17 | | by the management agreement with the private manager for the |
18 | | management of the Lottery. |
19 | | (d) The management agreement with the private manager shall |
20 | | include all of the following: |
21 | | (1) A term not to exceed 10 years, including any |
22 | | renewals. |
23 | | (2) A provision specifying that the Department: |
24 | | (A) shall exercise actual control over all |
25 | | significant business decisions; |
26 | | (A-5) has the authority to direct or countermand |
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1 | | operating decisions by the private manager at any time; |
2 | | (B) has ready access at any time to information |
3 | | regarding Lottery operations; |
4 | | (C) has the right to demand and receive information |
5 | | from the private manager concerning any aspect of the |
6 | | Lottery operations at any time; and |
7 | | (D) retains ownership of all trade names, |
8 | | trademarks, and intellectual property associated with |
9 | | the Lottery. |
10 | | (3) A provision imposing an affirmative duty on the |
11 | | private manager to provide the Department with material |
12 | | information and with any information the private manager |
13 | | reasonably believes the Department would want to know to |
14 | | enable the Department to conduct the Lottery. |
15 | | (4) A provision requiring the private manager to |
16 | | provide the Department with advance notice of any operating |
17 | | decision that bears significantly on the public interest, |
18 | | including, but not limited to, decisions on the kinds of |
19 | | games to be offered to the public and decisions affecting |
20 | | the relative risk and reward of the games being offered, so |
21 | | the Department has a reasonable opportunity to evaluate and |
22 | | countermand that decision. |
23 | | (5) A provision providing for compensation of the |
24 | | private manager that may consist of, among other things, a |
25 | | fee for services and a performance based bonus as |
26 | | consideration for managing the Lottery, including terms |
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1 | | that may provide the private manager with an increase in |
2 | | compensation if Lottery revenues grow by a specified |
3 | | percentage in a given year. |
4 | | (6) (Blank). |
5 | | (7) A provision requiring the deposit of all Lottery |
6 | | proceeds to be deposited into the State Lottery Fund except |
7 | | as otherwise provided in Section 20 of this Act. |
8 | | (8) A provision requiring the private manager to locate |
9 | | its principal office within the State. |
10 | | (8-5) A provision encouraging that at least 20% of the |
11 | | cost of contracts entered into for goods and services by |
12 | | the private manager in connection with its management of |
13 | | the Lottery, other than contracts with sales agents or |
14 | | technical advisors, be awarded to businesses that are a |
15 | | minority owned business, a female owned business, or a |
16 | | business owned by a person with disability, as those terms |
17 | | are defined in the Business Enterprise for Minorities, |
18 | | Females, and Persons with Disabilities Act. |
19 | | (9) A requirement that so long as the private manager |
20 | | complies with all the conditions of the agreement under the |
21 | | oversight of the Department, the private manager shall have |
22 | | the following duties and obligations with respect to the |
23 | | management of the Lottery: |
24 | | (A) The right to use equipment and other assets |
25 | | used in the operation of the Lottery. |
26 | | (B) The rights and obligations under contracts |
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1 | | with retailers and vendors. |
2 | | (C) The implementation of a comprehensive security |
3 | | program by the private manager. |
4 | | (D) The implementation of a comprehensive system |
5 | | of internal audits. |
6 | | (E) The implementation of a program by the private |
7 | | manager to curb compulsive gambling by persons playing |
8 | | the Lottery. |
9 | | (F) A system for determining (i) the type of |
10 | | Lottery games, (ii) the method of selecting winning |
11 | | tickets, (iii) the manner of payment of prizes to |
12 | | holders of winning tickets, (iv) the frequency of |
13 | | drawings of winning tickets, (v) the method to be used |
14 | | in selling tickets, (vi) a system for verifying the |
15 | | validity of tickets claimed to be winning tickets, |
16 | | (vii) the basis upon which retailer commissions are |
17 | | established by the manager, and (viii) minimum |
18 | | payouts. |
19 | | (10) A requirement that advertising and promotion must |
20 | | be consistent with Section 7.8a of this Act. |
21 | | (11) A requirement that the private manager market the |
22 | | Lottery to those residents who are new, infrequent, or |
23 | | lapsed players of the Lottery, especially those who are |
24 | | most likely to make regular purchases on the Internet as |
25 | | permitted by law. |
26 | | (12) A code of ethics for the private manager's |
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1 | | officers and employees. |
2 | | (13) A requirement that the Department monitor and |
3 | | oversee the private manager's practices and take action |
4 | | that the Department considers appropriate to ensure that |
5 | | the private manager is in compliance with the terms of the |
6 | | management agreement, while allowing the manager, unless |
7 | | specifically prohibited by law or the management |
8 | | agreement, to negotiate and sign its own contracts with |
9 | | vendors. |
10 | | (14) A provision requiring the private manager to |
11 | | periodically file, at least on an annual basis, appropriate |
12 | | financial statements in a form and manner acceptable to the |
13 | | Department. |
14 | | (15) Cash reserves requirements. |
15 | | (16) Procedural requirements for obtaining the prior |
16 | | approval of the Department when a management agreement or |
17 | | an interest in a management agreement is sold, assigned, |
18 | | transferred, or pledged as collateral to secure financing. |
19 | | (17) Grounds for the termination of the management |
20 | | agreement by the Department or the private manager. |
21 | | (18) Procedures for amendment of the agreement. |
22 | | (19) A provision requiring the private manager to |
23 | | engage in an open and competitive bidding process for any |
24 | | procurement having a cost in excess of $50,000 that is not |
25 | | a part of the private manager's final offer. The process |
26 | | shall favor the selection of a vendor deemed to have |
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1 | | submitted a proposal that provides the Lottery with the |
2 | | best overall value. The process shall not be subject to the |
3 | | provisions of the Illinois Procurement Code, unless |
4 | | specifically required by the management agreement. |
5 | | (20) The transition of rights and obligations, |
6 | | including any associated equipment or other assets used in |
7 | | the operation of the Lottery, from the manager to any |
8 | | successor manager of the lottery, including the |
9 | | Department, following the termination of or foreclosure |
10 | | upon the management agreement. |
11 | | (21) Right of use of copyrights, trademarks, and |
12 | | service marks held by the Department in the name of the |
13 | | State. The agreement must provide that any use of them by |
14 | | the manager shall only be for the purpose of fulfilling its |
15 | | obligations under the management agreement during the term |
16 | | of the agreement. |
17 | | (22) The disclosure of any information requested by the |
18 | | Department to enable it to comply with the reporting |
19 | | requirements and information requests provided for under |
20 | | subsection (p) of this Section. |
21 | | (e) Notwithstanding any other law to the contrary, the |
22 | | Department shall select a private manager through a competitive |
23 | | request for qualifications process consistent with Section |
24 | | 20-35 of the Illinois Procurement Code, which shall take into |
25 | | account: |
26 | | (1) the offeror's ability to market the Lottery to |
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1 | | those residents who are new, infrequent, or lapsed players |
2 | | of the Lottery, especially those who are most likely to |
3 | | make regular purchases on the Internet; |
4 | | (2) the offeror's ability to address the State's |
5 | | concern with the social effects of gambling on those who |
6 | | can least afford to do so; |
7 | | (3) the offeror's ability to provide the most |
8 | | successful management of the Lottery for the benefit of the |
9 | | people of the State based on current and past business |
10 | | practices or plans of the offeror; and |
11 | | (4) the offeror's poor or inadequate past performance |
12 | | in servicing, equipping, operating or managing a lottery on |
13 | | behalf of Illinois, another State or foreign government and |
14 | | attracting persons who are not currently regular players of |
15 | | a lottery. |
16 | | (f) The Department may retain the services of an advisor or |
17 | | advisors with significant experience in financial services or |
18 | | the management, operation, and procurement of goods, services, |
19 | | and equipment for a government-run lottery to assist in the |
20 | | preparation of the terms of the request for qualifications and |
21 | | selection of the private manager. Any prospective advisor |
22 | | seeking to provide services under this subsection (f) shall |
23 | | disclose any material business or financial relationship |
24 | | during the past 3 years with any potential offeror, or with a |
25 | | contractor or subcontractor presently providing goods, |
26 | | services, or equipment to the Department to support the |
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1 | | Lottery. The Department shall evaluate the material business or |
2 | | financial relationship of each prospective advisor. The |
3 | | Department shall not select any prospective advisor with a |
4 | | substantial business or financial relationship that the |
5 | | Department deems to impair the objectivity of the services to |
6 | | be provided by the prospective advisor. During the course of |
7 | | the advisor's engagement by the Department, and for a period of |
8 | | one year thereafter, the advisor shall not enter into any |
9 | | business or financial relationship with any offeror or any |
10 | | vendor identified to assist an offeror in performing its |
11 | | obligations under the management agreement. Any advisor |
12 | | retained by the Department shall be disqualified from being an |
13 | | offeror.
The Department shall not include terms in the request |
14 | | for qualifications that provide a material advantage whether |
15 | | directly or indirectly to any potential offeror, or any |
16 | | contractor or subcontractor presently providing goods, |
17 | | services, or equipment to the Department to support the |
18 | | Lottery, including terms contained in previous responses to |
19 | | requests for proposals or qualifications submitted to |
20 | | Illinois, another State or foreign government when those terms |
21 | | are uniquely associated with a particular potential offeror, |
22 | | contractor, or subcontractor. The request for proposals |
23 | | offered by the Department on December 22, 2008 as |
24 | | "LOT08GAMESYS" and reference number "22016176" is declared |
25 | | void. |
26 | | (g) The Department shall select at least 2 offerors as |
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1 | | finalists to potentially serve as the private manager no later |
2 | | than August 9, 2010. Upon making preliminary selections, the |
3 | | Department shall schedule a public hearing on the finalists' |
4 | | proposals and provide public notice of the hearing at least 7 |
5 | | calendar days before the hearing. The notice must include all |
6 | | of the following: |
7 | | (1) The date, time, and place of the hearing. |
8 | | (2) The subject matter of the hearing. |
9 | | (3) A brief description of the management agreement to |
10 | | be awarded. |
11 | | (4) The identity of the offerors that have been |
12 | | selected as finalists to serve as the private manager. |
13 | | (5) The address and telephone number of the Department. |
14 | | (h) At the public hearing, the Department shall (i) provide |
15 | | sufficient time for each finalist to present and explain its |
16 | | proposal to the Department and the Governor or the Governor's |
17 | | designee, including an opportunity to respond to questions |
18 | | posed by the Department, Governor, or designee and (ii) allow |
19 | | the public and non-selected offerors to comment on the |
20 | | presentations. The Governor or a designee shall attend the |
21 | | public hearing. After the public hearing, the Department shall |
22 | | have 14 calendar days to recommend to the Governor whether a |
23 | | management agreement should be entered into with a particular |
24 | | finalist. After reviewing the Department's recommendation, the |
25 | | Governor may accept or reject the Department's recommendation, |
26 | | and shall select a final offeror as the private manager by |
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1 | | publication of a notice in the Illinois Procurement Bulletin on |
2 | | or before September 15, 2010. The Governor shall include in the |
3 | | notice a detailed explanation and the reasons why the final |
4 | | offeror is superior to other offerors and will provide |
5 | | management services in a manner that best achieves the |
6 | | objectives of this Section. The Governor shall also sign the |
7 | | management agreement with the private manager. |
8 | | (i) Any action to contest the private manager selected by |
9 | | the Governor under this Section must be brought within 7 |
10 | | calendar days after the publication of the notice of the |
11 | | designation of the private manager as provided in subsection |
12 | | (h) of this Section. |
13 | | (j) The Lottery shall remain, for so long as a private |
14 | | manager manages the Lottery in accordance with provisions of |
15 | | this Act, a Lottery conducted by the State, and the State shall |
16 | | not be authorized to sell or transfer the Lottery to a third |
17 | | party. |
18 | | (k) Any tangible personal property used exclusively in |
19 | | connection with the lottery that is owned by the Department and |
20 | | leased to the private manager shall be owned by the Department |
21 | | in the name of the State and shall be considered to be public |
22 | | property devoted to an essential public and governmental |
23 | | function. |
24 | | (l) The Department may exercise any of its powers under |
25 | | this Section or any other law as necessary or desirable for the |
26 | | execution of the Department's powers under this Section. |
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1 | | (m) Neither this Section nor any management agreement |
2 | | entered into under this Section prohibits the General Assembly |
3 | | from authorizing forms of gambling that are not in direct |
4 | | competition with the Lottery. The forms of gambling authorized |
5 | | by this amendatory Act of the 98th General Assembly constitute |
6 | | authorized forms of gambling that are not in direct competition |
7 | | with the Lottery. |
8 | | (n) The private manager shall be subject to a complete |
9 | | investigation in the third, seventh, and tenth years of the |
10 | | agreement (if the agreement is for a 10-year term) by the |
11 | | Department in cooperation with the Auditor General to determine |
12 | | whether the private manager has complied with this Section and |
13 | | the management agreement. The private manager shall bear the |
14 | | cost of an investigation or reinvestigation of the private |
15 | | manager under this subsection. |
16 | | (o) The powers conferred by this Section are in addition |
17 | | and supplemental to the powers conferred by any other law. If |
18 | | any other law or rule is inconsistent with this Section, |
19 | | including, but not limited to, provisions of the Illinois |
20 | | Procurement Code, then this Section controls as to any |
21 | | management agreement entered into under this Section. This |
22 | | Section and any rules adopted under this Section contain full |
23 | | and complete authority for a management agreement between the |
24 | | Department and a private manager. No law, procedure, |
25 | | proceeding, publication, notice, consent, approval, order, or |
26 | | act by the Department or any other officer, Department, agency, |
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1 | | or instrumentality of the State or any political subdivision is |
2 | | required for the Department to enter into a management |
3 | | agreement under this Section. This Section contains full and |
4 | | complete authority for the Department to approve any contracts |
5 | | entered into by a private manager with a vendor providing |
6 | | goods, services, or both goods and services to the private |
7 | | manager under the terms of the management agreement, including |
8 | | subcontractors of such vendors. |
9 | | Upon receipt of a written request from the Chief |
10 | | Procurement Officer, the Department shall provide to the Chief |
11 | | Procurement Officer a complete and un-redacted copy of the |
12 | | management agreement or any contract that is subject to the |
13 | | Department's approval authority under this subsection (o). The |
14 | | Department shall provide a copy of the agreement or contract to |
15 | | the Chief Procurement Officer in the time specified by the |
16 | | Chief Procurement Officer in his or her written request, but no |
17 | | later than 5 business days after the request is received by the |
18 | | Department. The Chief Procurement Officer must retain any |
19 | | portions of the management agreement or of any contract |
20 | | designated by the Department as confidential, proprietary, or |
21 | | trade secret information in complete confidence pursuant to |
22 | | subsection (g) of Section 7 of the Freedom of Information Act. |
23 | | The Department shall also provide the Chief Procurement Officer |
24 | | with reasonable advance written notice of any contract that is |
25 | | pending Department approval. |
26 | | Notwithstanding any other provision of this Section to the |
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1 | | contrary, the Chief Procurement Officer shall adopt |
2 | | administrative rules, including emergency rules, to establish |
3 | | a procurement process to select a successor private manager if |
4 | | a private management agreement has been terminated. The |
5 | | selection process shall at a minimum take into account the |
6 | | criteria set forth in items (1) through (4) of subsection (e) |
7 | | of this Section and may include provisions consistent with |
8 | | subsections (f), (g), (h), and (i) of this Section. The Chief |
9 | | Procurement Officer shall also implement and administer the |
10 | | adopted selection process upon the termination of a private |
11 | | management agreement. The Department, after the Chief |
12 | | Procurement Officer certifies that the procurement process has |
13 | | been followed in accordance with the rules adopted under this |
14 | | subsection (o), shall select a final offeror as the private |
15 | | manager and sign the management agreement with the private |
16 | | manager. |
17 | | Except as provided in Sections 21.2, 21.5, 21.6, 21.7, and |
18 | | 21.8, the Department shall distribute all proceeds of lottery |
19 | | tickets and shares sold in the following priority and manner: |
20 | | (1) The payment of prizes and retailer bonuses. |
21 | | (2) The payment of costs incurred in the operation and |
22 | | administration of the Lottery, including the payment of |
23 | | sums due to the private manager under the management |
24 | | agreement with the Department. |
25 | | (3) On the last day of each month or as soon thereafter |
26 | | as possible, the State Comptroller shall direct and the |
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1 | | State Treasurer shall transfer from the State Lottery Fund |
2 | | to the Common School Fund an amount that is equal to the |
3 | | proceeds transferred in the corresponding month of fiscal |
4 | | year 2009, as adjusted for inflation, to the Common School |
5 | | Fund. |
6 | | (4) On or before the last day of each fiscal year, |
7 | | deposit any remaining proceeds, subject to payments under |
8 | | items (1), (2), and (3) into the Capital Projects Fund each |
9 | | fiscal year. |
10 | | (p) The Department shall be subject to the following |
11 | | reporting and information request requirements: |
12 | | (1) the Department shall submit written quarterly |
13 | | reports to the Governor and the General Assembly on the |
14 | | activities and actions of the private manager selected |
15 | | under this Section; |
16 | | (2) upon request of the Chief Procurement Officer, the |
17 | | Department shall promptly produce information related to |
18 | | the procurement activities of the Department and the |
19 | | private manager requested by the Chief Procurement |
20 | | Officer; the Chief Procurement Officer must retain |
21 | | confidential, proprietary, or trade secret information |
22 | | designated by the Department in complete confidence |
23 | | pursuant to subsection (g) of Section 7 of the Freedom of |
24 | | Information Act; and |
25 | | (3) at least 30 days prior to the beginning of the |
26 | | Department's fiscal year, the Department shall prepare an |
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1 | | annual written report on the activities of the private |
2 | | manager selected under this Section and deliver that report |
3 | | to the Governor and General Assembly. |
4 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840, |
5 | | eff. 12-23-09; 97-464, eff. 8-19-11; revised 10-17-12.)
|
6 | | Section 90-10. The Department of Revenue Law of the
Civil |
7 | | Administrative Code of Illinois is amended by changing Section |
8 | | 2505-305 as follows:
|
9 | | (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)
|
10 | | Sec. 2505-305. Investigators.
|
11 | | (a) The Department has the power to
appoint investigators |
12 | | to conduct all investigations,
searches, seizures, arrests, |
13 | | and other duties imposed under the provisions
of any law |
14 | | administered by the Department.
Except as provided in |
15 | | subsection (c), these investigators have
and
may exercise all |
16 | | the powers of peace officers solely for the purpose of
|
17 | | enforcing taxing measures administered by the Department.
|
18 | | (b) The Director must authorize to each investigator |
19 | | employed under this
Section and
to any other employee of the |
20 | | Department exercising the powers of a peace
officer a
distinct |
21 | | badge that, on its face, (i) clearly states that the badge is
|
22 | | authorized
by the
Department and (ii)
contains a unique |
23 | | identifying number.
No other badge shall be authorized by
the |
24 | | Department.
|
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1 | | (c) The Department may enter into agreements with the |
2 | | Illinois Gaming Board providing that investigators appointed |
3 | | under this Section shall exercise the peace officer powers set |
4 | | forth in paragraph (20.6) of subsection (c) of Section 5 of the |
5 | | Illinois Riverboat Gambling Act.
|
6 | | (Source: P.A. 96-37, eff. 7-13-09.)
|
7 | | Section 90-12. The Illinois State Auditing Act is amended |
8 | | by changing Section 3-1 as follows:
|
9 | | (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
|
10 | | Sec. 3-1. Jurisdiction of Auditor General. The Auditor |
11 | | General has
jurisdiction over all State agencies to make post |
12 | | audits and investigations
authorized by or under this Act or |
13 | | the Constitution.
|
14 | | The Auditor General has jurisdiction over local government |
15 | | agencies
and private agencies only:
|
16 | | (a) to make such post audits authorized by or under |
17 | | this Act as are
necessary and incidental to a post audit of |
18 | | a State agency or of a
program administered by a State |
19 | | agency involving public funds of the
State, but this |
20 | | jurisdiction does not include any authority to review
local |
21 | | governmental agencies in the obligation, receipt, |
22 | | expenditure or
use of public funds of the State that are |
23 | | granted without limitation or
condition imposed by law, |
24 | | other than the general limitation that such
funds be used |
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1 | | for public purposes;
|
2 | | (b) to make investigations authorized by or under this |
3 | | Act or the
Constitution; and
|
4 | | (c) to make audits of the records of local government |
5 | | agencies to verify
actual costs of state-mandated programs |
6 | | when directed to do so by the
Legislative Audit Commission |
7 | | at the request of the State Board of Appeals
under the |
8 | | State Mandates Act.
|
9 | | In addition to the foregoing, the Auditor General may |
10 | | conduct an
audit of the Metropolitan Pier and Exposition |
11 | | Authority, the
Regional Transportation Authority, the Suburban |
12 | | Bus Division, the Commuter
Rail Division and the Chicago |
13 | | Transit Authority and any other subsidized
carrier when |
14 | | authorized by the Legislative Audit Commission. Such audit
may |
15 | | be a financial, management or program audit, or any combination |
16 | | thereof.
|
17 | | The audit shall determine whether they are operating in |
18 | | accordance with
all applicable laws and regulations. Subject to |
19 | | the limitations of this
Act, the Legislative Audit Commission |
20 | | may by resolution specify additional
determinations to be |
21 | | included in the scope of the audit.
|
22 | | In addition to the foregoing, the Auditor General must also |
23 | | conduct a
financial audit of
the Illinois Sports Facilities |
24 | | Authority's expenditures of public funds in
connection with the |
25 | | reconstruction, renovation, remodeling, extension, or
|
26 | | improvement of all or substantially all of any existing |
|
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1 | | "facility", as that
term is defined in the Illinois Sports |
2 | | Facilities Authority Act.
|
3 | | The Auditor General may also conduct an audit, when |
4 | | authorized by
the Legislative Audit Commission, of any hospital |
5 | | which receives 10% or
more of its gross revenues from payments |
6 | | from the State of Illinois,
Department of Healthcare and Family |
7 | | Services (formerly Department of Public Aid), Medical |
8 | | Assistance Program.
|
9 | | The Auditor General is authorized to conduct financial and |
10 | | compliance
audits of the Illinois Distance Learning Foundation |
11 | | and the Illinois
Conservation Foundation.
|
12 | | As soon as practical after the effective date of this |
13 | | amendatory Act of
1995, the Auditor General shall conduct a |
14 | | compliance and management audit of
the City of
Chicago and any |
15 | | other entity with regard to the operation of Chicago O'Hare
|
16 | | International Airport, Chicago Midway Airport and Merrill C. |
17 | | Meigs Field. The
audit shall include, but not be limited to, an |
18 | | examination of revenues,
expenses, and transfers of funds; |
19 | | purchasing and contracting policies and
practices; staffing |
20 | | levels; and hiring practices and procedures. When
completed, |
21 | | the audit required by this paragraph shall be distributed in
|
22 | | accordance with Section 3-14.
|
23 | | The Auditor General shall conduct a financial and |
24 | | compliance and program
audit of distributions from the |
25 | | Municipal Economic Development Fund
during the immediately |
26 | | preceding calendar year pursuant to Section 8-403.1 of
the |
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1 | | Public Utilities Act at no cost to the city, village, or |
2 | | incorporated town
that received the distributions.
|
3 | | The Auditor General must conduct an audit of the Health |
4 | | Facilities and Services Review Board pursuant to Section 19.5 |
5 | | of the Illinois Health Facilities Planning
Act.
|
6 | | The Auditor General must conduct an audit of the Chicago |
7 | | Casino Development Authority pursuant to Section 1-60 of the |
8 | | Chicago Casino Development Authority Act. |
9 | | The Auditor General of the State of Illinois shall annually |
10 | | conduct or
cause to be conducted a financial and compliance |
11 | | audit of the books and records
of any county water commission |
12 | | organized pursuant to the Water Commission Act
of 1985 and |
13 | | shall file a copy of the report of that audit with the Governor |
14 | | and
the Legislative Audit Commission. The filed audit shall be |
15 | | open to the public
for inspection. The cost of the audit shall |
16 | | be charged to the county water
commission in accordance with |
17 | | Section 6z-27 of the State Finance Act. The
county water |
18 | | commission shall make available to the Auditor General its |
19 | | books
and records and any other documentation, whether in the |
20 | | possession of its
trustees or other parties, necessary to |
21 | | conduct the audit required. These
audit requirements apply only |
22 | | through July 1, 2007.
|
23 | | The Auditor General must conduct audits of the Rend Lake |
24 | | Conservancy
District as provided in Section 25.5 of the River |
25 | | Conservancy Districts Act.
|
26 | | The Auditor General must conduct financial audits of the |
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1 | | Southeastern Illinois Economic Development Authority as |
2 | | provided in Section 70 of the Southeastern Illinois Economic |
3 | | Development Authority Act.
|
4 | | The Auditor General shall conduct a compliance audit in |
5 | | accordance with subsections (d) and (f) of Section 30 of the |
6 | | Innovation Development and Economy Act. |
7 | | (Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09; |
8 | | 96-939, eff. 6-24-10.)
|
9 | | Section 90-15. The State Finance Act is amended by adding |
10 | | Sections 5.826, 5.829, 6z-98, and 6z-99 as follows:
|
11 | | (30 ILCS 105/5.826 new) |
12 | | Sec. 5.826. The Gaming Facilities Fee Revenue Fund.
|
13 | | (30 ILCS 105/5.829 new) |
14 | | Sec. 5.829. The State Fairgrounds Capital Improvement |
15 | | Fund.
|
16 | | (30 ILCS 105/6z-98 new) |
17 | | Sec. 6z-98. The Gaming Facilities Fee Revenue Fund. |
18 | | (a) The Gaming Facilities Fee Revenue Fund is created as a |
19 | | special fund in the State treasury. |
20 | | (b) The revenues in the Fund shall be used, subject to |
21 | | appropriation, by the Comptroller for the purpose of (i) |
22 | | providing appropriations to the Illinois Gaming Board for the |
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1 | | administration and enforcement of the Illinois Gambling Act and |
2 | | the applicable provisions of the Chicago Casino Development |
3 | | Authority Act and (ii) payment of vouchers that are outstanding |
4 | | for more than 60 days. Whenever practical, the Comptroller must |
5 | | prioritize voucher payments for expenses related to medical |
6 | | assistance under the Illinois Public Aid Code, the Children's |
7 | | Health Insurance Program Act, the Covering ALL KIDS Health |
8 | | Insurance Act, and the Senior Citizens and Disabled Persons |
9 | | Property Tax Relief and Pharmaceutical Assistance Act. |
10 | | (c) The Fund shall consist of fee revenues received |
11 | | pursuant to subsection (e) of Section 1-45 of the Chicago |
12 | | Casino Development Authority Act and pursuant to subsections |
13 | | (e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections |
14 | | (c) and (i) of Section 7.6 of the Illinois Gambling Act. All |
15 | | interest earned on moneys in the Fund shall be deposited into |
16 | | the Fund. |
17 | | (d) The Fund shall not be subject to administrative charges |
18 | | or chargebacks, including, but not limited to, those authorized |
19 | | under subsection (h) of Section 8 of this Act.
|
20 | | (30 ILCS 105/6z-99 new) |
21 | | Sec. 6z-99. The State Fairgrounds Capital Improvement |
22 | | Fund. There is created the State Fairgrounds
Capital |
23 | | Improvement Fund, a special fund in the State treasury. Moneys |
24 | | in the Fund may be used by the Department of Agriculture, |
25 | | subject to appropriation, solely for
infrastructure |
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1 | | improvements to the Illinois State Fairgrounds in Sangamon |
2 | | County, including, but not limited to, track surfaces (main |
3 | | track and practice track), grandstands, audio and visual |
4 | | systems, paddocks and barns and associated surface areas, |
5 | | restroom facilities on the backstretch, and roadway surfaces |
6 | | around the racing facility. The State Fairgrounds Capital |
7 | | Improvement Fund is not subject to administrative chargebacks, |
8 | | including, but not limited to, those authorized under Section |
9 | | 8h of the State Finance Act.
|
10 | | Section 90-17. The Illinois Procurement Code is amended by |
11 | | changing Section 1-10 as follows:
|
12 | | (30 ILCS 500/1-10)
|
13 | | Sec. 1-10. Application.
|
14 | | (a) This Code applies only to procurements for which |
15 | | contractors were first
solicited on or after July 1, 1998. This |
16 | | Code shall not be construed to affect
or impair any contract, |
17 | | or any provision of a contract, entered into based on a
|
18 | | solicitation prior to the implementation date of this Code as |
19 | | described in
Article 99, including but not limited to any |
20 | | covenant entered into with respect
to any revenue bonds or |
21 | | similar instruments.
All procurements for which contracts are |
22 | | solicited between the effective date
of Articles 50 and 99 and |
23 | | July 1, 1998 shall be substantially in accordance
with this |
24 | | Code and its intent.
|
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1 | | (b) This Code shall apply regardless of the source of the |
2 | | funds with which
the contracts are paid, including federal |
3 | | assistance moneys.
This Code shall
not apply to:
|
4 | | (1) Contracts between the State and its political |
5 | | subdivisions or other
governments, or between State |
6 | | governmental bodies except as specifically
provided in |
7 | | this Code.
|
8 | | (2) Grants, except for the filing requirements of |
9 | | Section 20-80.
|
10 | | (3) Purchase of care.
|
11 | | (4) Hiring of an individual as employee and not as an |
12 | | independent
contractor, whether pursuant to an employment |
13 | | code or policy or by contract
directly with that |
14 | | individual.
|
15 | | (5) Collective bargaining contracts.
|
16 | | (6) Purchase of real estate, except that notice of this |
17 | | type of contract with a value of more than $25,000 must be |
18 | | published in the Procurement Bulletin within 7 days after |
19 | | the deed is recorded in the county of jurisdiction. The |
20 | | notice shall identify the real estate purchased, the names |
21 | | of all parties to the contract, the value of the contract, |
22 | | and the effective date of the contract.
|
23 | | (7) Contracts necessary to prepare for anticipated |
24 | | litigation, enforcement
actions, or investigations, |
25 | | provided
that the chief legal counsel to the Governor shall |
26 | | give his or her prior
approval when the procuring agency is |
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1 | | one subject to the jurisdiction of the
Governor, and |
2 | | provided that the chief legal counsel of any other |
3 | | procuring
entity
subject to this Code shall give his or her |
4 | | prior approval when the procuring
entity is not one subject |
5 | | to the jurisdiction of the Governor.
|
6 | | (8) Contracts for
services to Northern Illinois |
7 | | University by a person, acting as
an independent |
8 | | contractor, who is qualified by education, experience, and
|
9 | | technical ability and is selected by negotiation for the |
10 | | purpose of providing
non-credit educational service |
11 | | activities or products by means of specialized
programs |
12 | | offered by the university.
|
13 | | (9) Procurement expenditures by the Illinois |
14 | | Conservation Foundation
when only private funds are used.
|
15 | | (10) Procurement expenditures by the Illinois Health |
16 | | Information Exchange Authority involving private funds |
17 | | from the Health Information Exchange Fund. "Private funds" |
18 | | means gifts, donations, and private grants. |
19 | | (11) Public-private agreements entered into according |
20 | | to the procurement requirements of Section 20 of the |
21 | | Public-Private Partnerships for Transportation Act and |
22 | | design-build agreements entered into according to the |
23 | | procurement requirements of Section 25 of the |
24 | | Public-Private Partnerships for Transportation Act. |
25 | | (c) This Code does not apply to the electric power |
26 | | procurement process provided for under Section 1-75 of the |
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1 | | Illinois Power Agency Act and Section 16-111.5 of the Public |
2 | | Utilities Act. |
3 | | (d) Except for Section 20-160 and Article 50 of this Code, |
4 | | and as expressly required by Section 9.1 of the Illinois |
5 | | Lottery Law, the provisions of this Code do not apply to the |
6 | | procurement process provided for under Section 9.1 of the |
7 | | Illinois Lottery Law. In addition, except for Section 20-160 |
8 | | and Article 50 of this Code, the provisions of this Code also |
9 | | do not apply to contracts and subcontracts awarded pursuant to |
10 | | Section 7.18 of the Illinois Lottery Law. |
11 | | (e) This Code does not apply to the process used by the |
12 | | Capital Development Board to retain a person or entity to |
13 | | assist the Capital Development Board with its duties related to |
14 | | the determination of costs of a clean coal SNG brownfield |
15 | | facility, as defined by Section 1-10 of the Illinois Power |
16 | | Agency Act, as required in subsection (h-3) of Section 9-220 of |
17 | | the Public Utilities Act, including calculating the range of |
18 | | capital costs, the range of operating and maintenance costs, or |
19 | | the sequestration costs or monitoring the construction of clean |
20 | | coal SNG brownfield facility for the full duration of |
21 | | construction. |
22 | | (f) This Code does not apply to the process used by the |
23 | | Illinois Power Agency to retain a mediator to mediate sourcing |
24 | | agreement disputes between gas utilities and the clean coal SNG |
25 | | brownfield facility, as defined in Section 1-10 of the Illinois |
26 | | Power Agency Act, as required under subsection (h-1) of Section |
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1 | | 9-220 of the Public Utilities Act. |
2 | | (g) This Code does not apply to the processes used by the |
3 | | Illinois Power Agency to retain a mediator to mediate contract |
4 | | disputes between gas utilities and the clean coal SNG facility |
5 | | and to retain an expert to assist in the review of contracts |
6 | | under subsection (h) of Section 9-220 of the Public Utilities |
7 | | Act. This Code does not apply to the process used by the |
8 | | Illinois Commerce Commission to retain an expert to assist in |
9 | | determining the actual incurred costs of the clean coal SNG |
10 | | facility and the reasonableness of those costs as required |
11 | | under subsection (h) of Section 9-220 of the Public Utilities |
12 | | Act. |
13 | | (h) This Code does not apply to the process to procure or |
14 | | contracts entered into in accordance with Sections 11-5.2 and |
15 | | 11-5.3 of the Illinois Public Aid Code. |
16 | | (i) (h) Each chief procurement officer may access records |
17 | | necessary to review whether a contract, purchase, or other |
18 | | expenditure is or is not subject to the provisions of this |
19 | | Code, unless such records would be subject to attorney-client |
20 | | privilege. |
21 | | (Source: P.A. 96-840, eff. 12-23-09; 96-1331, eff. 7-27-10; |
22 | | 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-502, eff. 8-23-11; |
23 | | 97-689, eff. 6-14-12; 97-813, eff. 7-13-12; 97-895, eff. |
24 | | 8-3-12; revised 8-23-12.)
|
25 | | Section 90-20. The Illinois Income Tax Act is amended by |
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1 | | changing Sections 201, 303, 304 and 710 as follows:
|
2 | | (35 ILCS 5/201) (from Ch. 120, par. 2-201) |
3 | | Sec. 201. Tax Imposed. |
4 | | (a) In general. A tax measured by net income is hereby |
5 | | imposed on every
individual, corporation, trust and estate for |
6 | | each taxable year ending
after July 31, 1969 on the privilege |
7 | | of earning or receiving income in or
as a resident of this |
8 | | State. Such tax shall be in addition to all other
occupation or |
9 | | privilege taxes imposed by this State or by any municipal
|
10 | | corporation or political subdivision thereof. |
11 | | (b) Rates. The tax imposed by subsection (a) of this |
12 | | Section shall be
determined as follows, except as adjusted by |
13 | | subsection (d-1): |
14 | | (1) In the case of an individual, trust or estate, for |
15 | | taxable years
ending prior to July 1, 1989, an amount equal |
16 | | to 2 1/2% of the taxpayer's
net income for the taxable |
17 | | year. |
18 | | (2) In the case of an individual, trust or estate, for |
19 | | taxable years
beginning prior to July 1, 1989 and ending |
20 | | after June 30, 1989, an amount
equal to the sum of (i) 2 |
21 | | 1/2% of the taxpayer's net income for the period
prior to |
22 | | July 1, 1989, as calculated under Section 202.3, and (ii) |
23 | | 3% of the
taxpayer's net income for the period after June |
24 | | 30, 1989, as calculated
under Section 202.3. |
25 | | (3) In the case of an individual, trust or estate, for |
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1 | | taxable years
beginning after June 30, 1989, and ending |
2 | | prior to January 1, 2011, an amount equal to 3% of the |
3 | | taxpayer's net
income for the taxable year. |
4 | | (4) In the case of an individual, trust, or estate, for |
5 | | taxable years beginning prior to January 1, 2011, and |
6 | | ending after December 31, 2010, an amount equal to the sum |
7 | | of (i) 3% of the taxpayer's net income for the period prior |
8 | | to January 1, 2011, as calculated under Section 202.5, and |
9 | | (ii) 5% of the taxpayer's net income for the period after |
10 | | December 31, 2010, as calculated under Section 202.5. |
11 | | (5) In the case of an individual, trust, or estate, for |
12 | | taxable years beginning on or after January 1, 2011, and |
13 | | ending prior to January 1, 2015, an amount equal to 5% of |
14 | | the taxpayer's net income for the taxable year. |
15 | | (5.1) In the case of an individual, trust, or estate, |
16 | | for taxable years beginning prior to January 1, 2015, and |
17 | | ending after December 31, 2014, an amount equal to the sum |
18 | | of (i) 5% of the taxpayer's net income for the period prior |
19 | | to January 1, 2015, as calculated under Section 202.5, and |
20 | | (ii) 3.75% of the taxpayer's net income for the period |
21 | | after December 31, 2014, as calculated under Section 202.5. |
22 | | (5.2) In the case of an individual, trust, or estate, |
23 | | for taxable years beginning on or after January 1, 2015, |
24 | | and ending prior to January 1, 2025, an amount equal to |
25 | | 3.75% of the taxpayer's net income for the taxable year. |
26 | | (5.3) In the case of an individual, trust, or estate, |
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1 | | for taxable years beginning prior to January 1, 2025, and |
2 | | ending after December 31, 2024, an amount equal to the sum |
3 | | of (i) 3.75% of the taxpayer's net income for the period |
4 | | prior to January 1, 2025, as calculated under Section |
5 | | 202.5, and (ii) 3.25% of the taxpayer's net income for the |
6 | | period after December 31, 2024, as calculated under Section |
7 | | 202.5. |
8 | | (5.4) In the case of an individual, trust, or estate, |
9 | | for taxable years beginning on or after January 1, 2025, an |
10 | | amount equal to 3.25% of the taxpayer's net income for the |
11 | | taxable year. |
12 | | (6) In the case of a corporation, for taxable years
|
13 | | ending prior to July 1, 1989, an amount equal to 4% of the
|
14 | | taxpayer's net income for the taxable year. |
15 | | (7) In the case of a corporation, for taxable years |
16 | | beginning prior to
July 1, 1989 and ending after June 30, |
17 | | 1989, an amount equal to the sum of
(i) 4% of the |
18 | | taxpayer's net income for the period prior to July 1, 1989,
|
19 | | as calculated under Section 202.3, and (ii) 4.8% of the |
20 | | taxpayer's net
income for the period after June 30, 1989, |
21 | | as calculated under Section
202.3. |
22 | | (8) In the case of a corporation, for taxable years |
23 | | beginning after
June 30, 1989, and ending prior to January |
24 | | 1, 2011, an amount equal to 4.8% of the taxpayer's net |
25 | | income for the
taxable year. |
26 | | (9) In the case of a corporation, for taxable years |
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1 | | beginning prior to January 1, 2011, and ending after |
2 | | December 31, 2010, an amount equal to the sum of (i) 4.8% |
3 | | of the taxpayer's net income for the period prior to |
4 | | January 1, 2011, as calculated under Section 202.5, and |
5 | | (ii) 7% of the taxpayer's net income for the period after |
6 | | December 31, 2010, as calculated under Section 202.5. |
7 | | (10) In the case of a corporation, for taxable years |
8 | | beginning on or after January 1, 2011, and ending prior to |
9 | | January 1, 2015, an amount equal to 7% of the taxpayer's |
10 | | net income for the taxable year. |
11 | | (11) In the case of a corporation, for taxable years |
12 | | beginning prior to January 1, 2015, and ending after |
13 | | December 31, 2014, an amount equal to the sum of (i) 7% of |
14 | | the taxpayer's net income for the period prior to January |
15 | | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% |
16 | | of the taxpayer's net income for the period after December |
17 | | 31, 2014, as calculated under Section 202.5. |
18 | | (12) In the case of a corporation, for taxable years |
19 | | beginning on or after January 1, 2015, and ending prior to |
20 | | January 1, 2025, an amount equal to 5.25% of the taxpayer's |
21 | | net income for the taxable year. |
22 | | (13) In the case of a corporation, for taxable years |
23 | | beginning prior to January 1, 2025, and ending after |
24 | | December 31, 2024, an amount equal to the sum of (i) 5.25% |
25 | | of the taxpayer's net income for the period prior to |
26 | | January 1, 2025, as calculated under Section 202.5, and |
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1 | | (ii) 4.8% of the taxpayer's net income for the period after |
2 | | December 31, 2024, as calculated under Section 202.5. |
3 | | (14) In the case of a corporation, for taxable years |
4 | | beginning on or after January 1, 2025, an amount equal to |
5 | | 4.8% of the taxpayer's net income for the taxable year. |
6 | | The rates under this subsection (b) are subject to the |
7 | | provisions of Section 201.5. |
8 | | (b-5) Surcharge; sale or exchange of assets, properties, |
9 | | and intangibles of electronic gaming licensees. For each of |
10 | | taxable years 2013 through 2021, a surcharge is imposed on all |
11 | | taxpayers on income arising from the sale or exchange of |
12 | | capital assets, depreciable business property, real property |
13 | | used in the trade or business, and Section 197 intangibles (i) |
14 | | of an organization licensee under the Illinois Horse Racing Act |
15 | | of 1975 and (ii) of an electronic gaming licensee under the |
16 | | Illinois Gambling Act. The amount of the surcharge is equal to |
17 | | the amount of federal income tax liability for the taxable year |
18 | | attributable to those sales and exchanges. The surcharge |
19 | | imposed shall not apply if: |
20 | | (1) the electronic gaming license, organization |
21 | | license, or race track property is transferred as a result |
22 | | of any of the following: |
23 | | (A) bankruptcy, a receivership, or a debt |
24 | | adjustment initiated by or against the initial |
25 | | licensee or the substantial owners of the initial |
26 | | licensee; |
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1 | | (B) cancellation, revocation, or termination of |
2 | | any such license by the Illinois Gaming Board or the |
3 | | Illinois Racing Board; |
4 | | (C) a determination by the Illinois Gaming Board |
5 | | that transfer of the license is in the best interests |
6 | | of Illinois gaming; |
7 | | (D) the death of an owner of the equity interest in |
8 | | a licensee; |
9 | | (E) the acquisition of a controlling interest in |
10 | | the stock or substantially all of the assets of a |
11 | | publicly traded company; |
12 | | (F) a transfer by a parent company to a wholly |
13 | | owned subsidiary; or |
14 | | (G) the transfer or sale to or by one person to |
15 | | another person where both persons were initial owners |
16 | | of the license when the license was issued; or |
17 | | (2) the controlling interest in the electronic gaming |
18 | | license, organization license, or race track property is |
19 | | transferred in a transaction to lineal descendants in which |
20 | | no gain or loss is recognized or as a result of a |
21 | | transaction in accordance with Section 351 of the Internal |
22 | | Revenue Code in which no gain or loss is recognized; or |
23 | | (3) live horse racing was not conducted in 2011 under a |
24 | | license issued pursuant to the Illinois Horse Racing Act of |
25 | | 1975. |
26 | | The transfer of an electronic gaming license, organization |
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1 | | license, or race track property by a person other than the |
2 | | initial licensee to receive the electronic gaming license is |
3 | | not subject to a surcharge. The Department shall adopt rules |
4 | | necessary to implement and administer this subsection. |
5 | | (b-10) Surcharge; sale or exchange of an Internet gaming |
6 | | license. For each of taxable years 2013 through 2023, a |
7 | | surcharge is imposed on all taxpayers on income arising from |
8 | | the sale or exchange of an Internet gaming license issued by |
9 | | the Division of Internet Gaming of the Department of the |
10 | | Lottery. The amount of the surcharge is equal to the federal |
11 | | tax liability attributable to such sale or exchange or |
12 | | $10,000,000, whichever is greater. The surcharge imposed shall |
13 | | not apply if: |
14 | | (1) the Internet gaming license is transferred as a |
15 | | result of any of the following: |
16 | | (A) bankruptcy, a receivership, assignment for the |
17 | | benefit of creditors, or a debt adjustment initiated by |
18 | | or against the initial Internet gaming licensee or a |
19 | | majority owner of the initial licensee; |
20 | | (B) cancellation, revocation, or termination of |
21 | | any such license by the Division of Internet Gaming; or |
22 | | (D) the transfer or sale to or by one person to |
23 | | another person where both persons were initial owners |
24 | | of the license when the license was issued; |
25 | | (2) after a public hearing, a determination is made by |
26 | | the Superintendent of the Lottery, subject to the approval |
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1 | | of the Governor, that transfer of the license and exemption |
2 | | from the surcharge is in the best interest of Illinois |
3 | | gaming; this exception may be further defined by rules |
4 | | adopted by the Division of Internet Gaming; or |
5 | | (3) the controlling interest in the Internet gaming |
6 | | license is transferred in a transaction to lineal |
7 | | descendants in which no gain or loss is recognized or as a |
8 | | result of a transaction in accordance with Section 351 of |
9 | | the Internal Revenue Code in which no gain or loss is |
10 | | recognized. |
11 | | The Department shall adopt rules necessary to implement and |
12 | | administer this subsection. |
13 | | (c) Personal Property Tax Replacement Income Tax.
|
14 | | Beginning on July 1, 1979 and thereafter, in addition to such |
15 | | income
tax, there is also hereby imposed the Personal Property |
16 | | Tax Replacement
Income Tax measured by net income on every |
17 | | corporation (including Subchapter
S corporations), partnership |
18 | | and trust, for each taxable year ending after
June 30, 1979. |
19 | | Such taxes are imposed on the privilege of earning or
receiving |
20 | | income in or as a resident of this State. The Personal Property
|
21 | | Tax Replacement Income Tax shall be in addition to the income |
22 | | tax imposed
by subsections (a) and (b) of this Section and in |
23 | | addition to all other
occupation or privilege taxes imposed by |
24 | | this State or by any municipal
corporation or political |
25 | | subdivision thereof. |
26 | | (d) Additional Personal Property Tax Replacement Income |
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1 | | Tax Rates.
The personal property tax replacement income tax |
2 | | imposed by this subsection
and subsection (c) of this Section |
3 | | in the case of a corporation, other
than a Subchapter S |
4 | | corporation and except as adjusted by subsection (d-1),
shall |
5 | | be an additional amount equal to
2.85% of such taxpayer's net |
6 | | income for the taxable year, except that
beginning on January |
7 | | 1, 1981, and thereafter, the rate of 2.85% specified
in this |
8 | | subsection shall be reduced to 2.5%, and in the case of a
|
9 | | partnership, trust or a Subchapter S corporation shall be an |
10 | | additional
amount equal to 1.5% of such taxpayer's net income |
11 | | for the taxable year. |
12 | | (d-1) Rate reduction for certain foreign insurers. In the |
13 | | case of a
foreign insurer, as defined by Section 35A-5 of the |
14 | | Illinois Insurance Code,
whose state or country of domicile |
15 | | imposes on insurers domiciled in Illinois
a retaliatory tax |
16 | | (excluding any insurer
whose premiums from reinsurance assumed |
17 | | are 50% or more of its total insurance
premiums as determined |
18 | | under paragraph (2) of subsection (b) of Section 304,
except |
19 | | that for purposes of this determination premiums from |
20 | | reinsurance do
not include premiums from inter-affiliate |
21 | | reinsurance arrangements),
beginning with taxable years ending |
22 | | on or after December 31, 1999,
the sum of
the rates of tax |
23 | | imposed by subsections (b) and (d) shall be reduced (but not
|
24 | | increased) to the rate at which the total amount of tax imposed |
25 | | under this Act,
net of all credits allowed under this Act, |
26 | | shall equal (i) the total amount of
tax that would be imposed |
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1 | | on the foreign insurer's net income allocable to
Illinois for |
2 | | the taxable year by such foreign insurer's state or country of
|
3 | | domicile if that net income were subject to all income taxes |
4 | | and taxes
measured by net income imposed by such foreign |
5 | | insurer's state or country of
domicile, net of all credits |
6 | | allowed or (ii) a rate of zero if no such tax is
imposed on such |
7 | | income by the foreign insurer's state of domicile.
For the |
8 | | purposes of this subsection (d-1), an inter-affiliate includes |
9 | | a
mutual insurer under common management. |
10 | | (1) For the purposes of subsection (d-1), in no event |
11 | | shall the sum of the
rates of tax imposed by subsections |
12 | | (b) and (d) be reduced below the rate at
which the sum of: |
13 | | (A) the total amount of tax imposed on such foreign |
14 | | insurer under
this Act for a taxable year, net of all |
15 | | credits allowed under this Act, plus |
16 | | (B) the privilege tax imposed by Section 409 of the |
17 | | Illinois Insurance
Code, the fire insurance company |
18 | | tax imposed by Section 12 of the Fire
Investigation |
19 | | Act, and the fire department taxes imposed under |
20 | | Section 11-10-1
of the Illinois Municipal Code, |
21 | | equals 1.25% for taxable years ending prior to December 31, |
22 | | 2003, or
1.75% for taxable years ending on or after |
23 | | December 31, 2003, of the net
taxable premiums written for |
24 | | the taxable year,
as described by subsection (1) of Section |
25 | | 409 of the Illinois Insurance Code.
This paragraph will in |
26 | | no event increase the rates imposed under subsections
(b) |
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1 | | and (d). |
2 | | (2) Any reduction in the rates of tax imposed by this |
3 | | subsection shall be
applied first against the rates imposed |
4 | | by subsection (b) and only after the
tax imposed by |
5 | | subsection (a) net of all credits allowed under this |
6 | | Section
other than the credit allowed under subsection (i) |
7 | | has been reduced to zero,
against the rates imposed by |
8 | | subsection (d). |
9 | | This subsection (d-1) is exempt from the provisions of |
10 | | Section 250. |
11 | | (e) Investment credit. A taxpayer shall be allowed a credit
|
12 | | against the Personal Property Tax Replacement Income Tax for
|
13 | | investment in qualified property. |
14 | | (1) A taxpayer shall be allowed a credit equal to .5% |
15 | | of
the basis of qualified property placed in service during |
16 | | the taxable year,
provided such property is placed in |
17 | | service on or after
July 1, 1984. There shall be allowed an |
18 | | additional credit equal
to .5% of the basis of qualified |
19 | | property placed in service during the
taxable year, |
20 | | provided such property is placed in service on or
after |
21 | | July 1, 1986, and the taxpayer's base employment
within |
22 | | Illinois has increased by 1% or more over the preceding |
23 | | year as
determined by the taxpayer's employment records |
24 | | filed with the
Illinois Department of Employment Security. |
25 | | Taxpayers who are new to
Illinois shall be deemed to have |
26 | | met the 1% growth in base employment for
the first year in |
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1 | | which they file employment records with the Illinois
|
2 | | Department of Employment Security. The provisions added to |
3 | | this Section by
Public Act 85-1200 (and restored by Public |
4 | | Act 87-895) shall be
construed as declaratory of existing |
5 | | law and not as a new enactment. If,
in any year, the |
6 | | increase in base employment within Illinois over the
|
7 | | preceding year is less than 1%, the additional credit shall |
8 | | be limited to that
percentage times a fraction, the |
9 | | numerator of which is .5% and the denominator
of which is |
10 | | 1%, but shall not exceed .5%. The investment credit shall |
11 | | not be
allowed to the extent that it would reduce a |
12 | | taxpayer's liability in any tax
year below zero, nor may |
13 | | any credit for qualified property be allowed for any
year |
14 | | other than the year in which the property was placed in |
15 | | service in
Illinois. For tax years ending on or after |
16 | | December 31, 1987, and on or
before December 31, 1988, the |
17 | | credit shall be allowed for the tax year in
which the |
18 | | property is placed in service, or, if the amount of the |
19 | | credit
exceeds the tax liability for that year, whether it |
20 | | exceeds the original
liability or the liability as later |
21 | | amended, such excess may be carried
forward and applied to |
22 | | the tax liability of the 5 taxable years following
the |
23 | | excess credit years if the taxpayer (i) makes investments |
24 | | which cause
the creation of a minimum of 2,000 full-time |
25 | | equivalent jobs in Illinois,
(ii) is located in an |
26 | | enterprise zone established pursuant to the Illinois
|
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1 | | Enterprise Zone Act and (iii) is certified by the |
2 | | Department of Commerce
and Community Affairs (now |
3 | | Department of Commerce and Economic Opportunity) as |
4 | | complying with the requirements specified in
clause (i) and |
5 | | (ii) by July 1, 1986. The Department of Commerce and
|
6 | | Community Affairs (now Department of Commerce and Economic |
7 | | Opportunity) shall notify the Department of Revenue of all |
8 | | such
certifications immediately. For tax years ending |
9 | | after December 31, 1988,
the credit shall be allowed for |
10 | | the tax year in which the property is
placed in service, |
11 | | or, if the amount of the credit exceeds the tax
liability |
12 | | for that year, whether it exceeds the original liability or |
13 | | the
liability as later amended, such excess may be carried |
14 | | forward and applied
to the tax liability of the 5 taxable |
15 | | years following the excess credit
years. The credit shall |
16 | | be applied to the earliest year for which there is
a |
17 | | liability. If there is credit from more than one tax year |
18 | | that is
available to offset a liability, earlier credit |
19 | | shall be applied first. |
20 | | (2) The term "qualified property" means property |
21 | | which: |
22 | | (A) is tangible, whether new or used, including |
23 | | buildings and structural
components of buildings and |
24 | | signs that are real property, but not including
land or |
25 | | improvements to real property that are not a structural |
26 | | component of a
building such as landscaping, sewer |
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1 | | lines, local access roads, fencing, parking
lots, and |
2 | | other appurtenances; |
3 | | (B) is depreciable pursuant to Section 167 of the |
4 | | Internal Revenue Code,
except that "3-year property" |
5 | | as defined in Section 168(c)(2)(A) of that
Code is not |
6 | | eligible for the credit provided by this subsection |
7 | | (e); |
8 | | (C) is acquired by purchase as defined in Section |
9 | | 179(d) of
the Internal Revenue Code; |
10 | | (D) is used in Illinois by a taxpayer who is |
11 | | primarily engaged in
manufacturing, or in mining coal |
12 | | or fluorite, or in retailing, or was placed in service |
13 | | on or after July 1, 2006 in a River Edge Redevelopment |
14 | | Zone established pursuant to the River Edge |
15 | | Redevelopment Zone Act; and |
16 | | (E) has not previously been used in Illinois in |
17 | | such a manner and by
such a person as would qualify for |
18 | | the credit provided by this subsection
(e) or |
19 | | subsection (f). |
20 | | (3) For purposes of this subsection (e), |
21 | | "manufacturing" means
the material staging and production |
22 | | of tangible personal property by
procedures commonly |
23 | | regarded as manufacturing, processing, fabrication, or
|
24 | | assembling which changes some existing material into new |
25 | | shapes, new
qualities, or new combinations. For purposes of |
26 | | this subsection
(e) the term "mining" shall have the same |
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1 | | meaning as the term "mining" in
Section 613(c) of the |
2 | | Internal Revenue Code. For purposes of this subsection
(e), |
3 | | the term "retailing" means the sale of tangible personal |
4 | | property for use or consumption and not for resale, or
|
5 | | services rendered in conjunction with the sale of tangible |
6 | | personal property for use or consumption and not for |
7 | | resale. For purposes of this subsection (e), "tangible |
8 | | personal property" has the same meaning as when that term |
9 | | is used in the Retailers' Occupation Tax Act, and, for |
10 | | taxable years ending after December 31, 2008, does not |
11 | | include the generation, transmission, or distribution of |
12 | | electricity. |
13 | | (4) The basis of qualified property shall be the basis
|
14 | | used to compute the depreciation deduction for federal |
15 | | income tax purposes. |
16 | | (5) If the basis of the property for federal income tax |
17 | | depreciation
purposes is increased after it has been placed |
18 | | in service in Illinois by
the taxpayer, the amount of such |
19 | | increase shall be deemed property placed
in service on the |
20 | | date of such increase in basis. |
21 | | (6) The term "placed in service" shall have the same
|
22 | | meaning as under Section 46 of the Internal Revenue Code. |
23 | | (7) If during any taxable year, any property ceases to
|
24 | | be qualified property in the hands of the taxpayer within |
25 | | 48 months after
being placed in service, or the situs of |
26 | | any qualified property is
moved outside Illinois within 48 |
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1 | | months after being placed in service, the
Personal Property |
2 | | Tax Replacement Income Tax for such taxable year shall be
|
3 | | increased. Such increase shall be determined by (i) |
4 | | recomputing the
investment credit which would have been |
5 | | allowed for the year in which
credit for such property was |
6 | | originally allowed by eliminating such
property from such |
7 | | computation and, (ii) subtracting such recomputed credit
|
8 | | from the amount of credit previously allowed. For the |
9 | | purposes of this
paragraph (7), a reduction of the basis of |
10 | | qualified property resulting
from a redetermination of the |
11 | | purchase price shall be deemed a disposition
of qualified |
12 | | property to the extent of such reduction. |
13 | | (8) Unless the investment credit is extended by law, |
14 | | the
basis of qualified property shall not include costs |
15 | | incurred after
December 31, 2018, except for costs incurred |
16 | | pursuant to a binding
contract entered into on or before |
17 | | December 31, 2018. |
18 | | (9) Each taxable year ending before December 31, 2000, |
19 | | a partnership may
elect to pass through to its
partners the |
20 | | credits to which the partnership is entitled under this |
21 | | subsection
(e) for the taxable year. A partner may use the |
22 | | credit allocated to him or her
under this paragraph only |
23 | | against the tax imposed in subsections (c) and (d) of
this |
24 | | Section. If the partnership makes that election, those |
25 | | credits shall be
allocated among the partners in the |
26 | | partnership in accordance with the rules
set forth in |
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1 | | Section 704(b) of the Internal Revenue Code, and the rules
|
2 | | promulgated under that Section, and the allocated amount of |
3 | | the credits shall
be allowed to the partners for that |
4 | | taxable year. The partnership shall make
this election on |
5 | | its Personal Property Tax Replacement Income Tax return for
|
6 | | that taxable year. The election to pass through the credits |
7 | | shall be
irrevocable. |
8 | | For taxable years ending on or after December 31, 2000, |
9 | | a
partner that qualifies its
partnership for a subtraction |
10 | | under subparagraph (I) of paragraph (2) of
subsection (d) |
11 | | of Section 203 or a shareholder that qualifies a Subchapter |
12 | | S
corporation for a subtraction under subparagraph (S) of |
13 | | paragraph (2) of
subsection (b) of Section 203 shall be |
14 | | allowed a credit under this subsection
(e) equal to its |
15 | | share of the credit earned under this subsection (e) during
|
16 | | the taxable year by the partnership or Subchapter S |
17 | | corporation, determined in
accordance with the |
18 | | determination of income and distributive share of
income |
19 | | under Sections 702 and 704 and Subchapter S of the Internal |
20 | | Revenue
Code. This paragraph is exempt from the provisions |
21 | | of Section 250. |
22 | | (f) Investment credit; Enterprise Zone; River Edge |
23 | | Redevelopment Zone. |
24 | | (1) A taxpayer shall be allowed a credit against the |
25 | | tax imposed
by subsections (a) and (b) of this Section for |
26 | | investment in qualified
property which is placed in service |
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1 | | in an Enterprise Zone created
pursuant to the Illinois |
2 | | Enterprise Zone Act or, for property placed in service on |
3 | | or after July 1, 2006, a River Edge Redevelopment Zone |
4 | | established pursuant to the River Edge Redevelopment Zone |
5 | | Act. For partners, shareholders
of Subchapter S |
6 | | corporations, and owners of limited liability companies,
|
7 | | if the liability company is treated as a partnership for |
8 | | purposes of
federal and State income taxation, there shall |
9 | | be allowed a credit under
this subsection (f) to be |
10 | | determined in accordance with the determination
of income |
11 | | and distributive share of income under Sections 702 and 704 |
12 | | and
Subchapter S of the Internal Revenue Code. The credit |
13 | | shall be .5% of the
basis for such property. The credit |
14 | | shall be available only in the taxable
year in which the |
15 | | property is placed in service in the Enterprise Zone or |
16 | | River Edge Redevelopment Zone and
shall not be allowed to |
17 | | the extent that it would reduce a taxpayer's
liability for |
18 | | the tax imposed by subsections (a) and (b) of this Section |
19 | | to
below zero. For tax years ending on or after December |
20 | | 31, 1985, the credit
shall be allowed for the tax year in |
21 | | which the property is placed in
service, or, if the amount |
22 | | of the credit exceeds the tax liability for that
year, |
23 | | whether it exceeds the original liability or the liability |
24 | | as later
amended, such excess may be carried forward and |
25 | | applied to the tax
liability of the 5 taxable years |
26 | | following the excess credit year.
The credit shall be |
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1 | | applied to the earliest year for which there is a
|
2 | | liability. If there is credit from more than one tax year |
3 | | that is available
to offset a liability, the credit |
4 | | accruing first in time shall be applied
first. |
5 | | (2) The term qualified property means property which: |
6 | | (A) is tangible, whether new or used, including |
7 | | buildings and
structural components of buildings; |
8 | | (B) is depreciable pursuant to Section 167 of the |
9 | | Internal Revenue
Code, except that "3-year property" |
10 | | as defined in Section 168(c)(2)(A) of
that Code is not |
11 | | eligible for the credit provided by this subsection |
12 | | (f); |
13 | | (C) is acquired by purchase as defined in Section |
14 | | 179(d) of
the Internal Revenue Code; |
15 | | (D) is used in the Enterprise Zone or River Edge |
16 | | Redevelopment Zone by the taxpayer; and |
17 | | (E) has not been previously used in Illinois in |
18 | | such a manner and by
such a person as would qualify for |
19 | | the credit provided by this subsection
(f) or |
20 | | subsection (e). |
21 | | (3) The basis of qualified property shall be the basis |
22 | | used to compute
the depreciation deduction for federal |
23 | | income tax purposes. |
24 | | (4) If the basis of the property for federal income tax |
25 | | depreciation
purposes is increased after it has been placed |
26 | | in service in the Enterprise
Zone or River Edge |
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1 | | Redevelopment Zone by the taxpayer, the amount of such |
2 | | increase shall be deemed property
placed in service on the |
3 | | date of such increase in basis. |
4 | | (5) The term "placed in service" shall have the same |
5 | | meaning as under
Section 46 of the Internal Revenue Code. |
6 | | (6) If during any taxable year, any property ceases to |
7 | | be qualified
property in the hands of the taxpayer within |
8 | | 48 months after being placed
in service, or the situs of |
9 | | any qualified property is moved outside the
Enterprise Zone |
10 | | or River Edge Redevelopment Zone within 48 months after |
11 | | being placed in service, the tax
imposed under subsections |
12 | | (a) and (b) of this Section for such taxable year
shall be |
13 | | increased. Such increase shall be determined by (i) |
14 | | recomputing
the investment credit which would have been |
15 | | allowed for the year in which
credit for such property was |
16 | | originally allowed by eliminating such
property from such |
17 | | computation, and (ii) subtracting such recomputed credit
|
18 | | from the amount of credit previously allowed. For the |
19 | | purposes of this
paragraph (6), a reduction of the basis of |
20 | | qualified property resulting
from a redetermination of the |
21 | | purchase price shall be deemed a disposition
of qualified |
22 | | property to the extent of such reduction. |
23 | | (7) There shall be allowed an additional credit equal |
24 | | to 0.5% of the basis of qualified property placed in |
25 | | service during the taxable year in a River Edge |
26 | | Redevelopment Zone, provided such property is placed in |
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1 | | service on or after July 1, 2006, and the taxpayer's base |
2 | | employment within Illinois has increased by 1% or more over |
3 | | the preceding year as determined by the taxpayer's |
4 | | employment records filed with the Illinois Department of |
5 | | Employment Security. Taxpayers who are new to Illinois |
6 | | shall be deemed to have met the 1% growth in base |
7 | | employment for the first year in which they file employment |
8 | | records with the Illinois Department of Employment |
9 | | Security. If, in any year, the increase in base employment |
10 | | within Illinois over the preceding year is less than 1%, |
11 | | the additional credit shall be limited to that percentage |
12 | | times a fraction, the numerator of which is 0.5% and the |
13 | | denominator of which is 1%, but shall not exceed 0.5%.
|
14 | | (g) Jobs Tax Credit; River Edge Redevelopment Zone and |
15 | | Foreign Trade Zone or Sub-Zone. |
16 | | (1) A taxpayer conducting a trade or business, for |
17 | | taxable years ending on or after December 31, 2006, in a |
18 | | River Edge Redevelopment Zone or conducting a trade or |
19 | | business in a federally designated
Foreign Trade Zone or |
20 | | Sub-Zone shall be allowed a credit against the tax
imposed |
21 | | by subsections (a) and (b) of this Section in the amount of |
22 | | $500
per eligible employee hired to work in the zone during |
23 | | the taxable year. |
24 | | (2) To qualify for the credit: |
25 | | (A) the taxpayer must hire 5 or more eligible |
26 | | employees to work in a River Edge Redevelopment Zone or |
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1 | | federally designated Foreign Trade Zone or Sub-Zone
|
2 | | during the taxable year; |
3 | | (B) the taxpayer's total employment within the |
4 | | River Edge Redevelopment Zone or
federally designated |
5 | | Foreign Trade Zone or Sub-Zone must
increase by 5 or |
6 | | more full-time employees beyond the total employed in |
7 | | that
zone at the end of the previous tax year for which |
8 | | a jobs tax
credit under this Section was taken, or |
9 | | beyond the total employed by the
taxpayer as of |
10 | | December 31, 1985, whichever is later; and |
11 | | (C) the eligible employees must be employed 180 |
12 | | consecutive days in
order to be deemed hired for |
13 | | purposes of this subsection. |
14 | | (3) An "eligible employee" means an employee who is: |
15 | | (A) Certified by the Department of Commerce and |
16 | | Economic Opportunity
as "eligible for services" |
17 | | pursuant to regulations promulgated in
accordance with |
18 | | Title II of the Job Training Partnership Act, Training
|
19 | | Services for the Disadvantaged or Title III of the Job |
20 | | Training Partnership
Act, Employment and Training |
21 | | Assistance for Dislocated Workers Program. |
22 | | (B) Hired after the River Edge Redevelopment Zone |
23 | | or federally designated Foreign
Trade Zone or Sub-Zone |
24 | | was designated or the trade or
business was located in |
25 | | that zone, whichever is later. |
26 | | (C) Employed in the River Edge Redevelopment Zone |
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1 | | or Foreign Trade Zone or
Sub-Zone. An employee is |
2 | | employed in a federally designated Foreign Trade Zone |
3 | | or Sub-Zone
if his services are rendered there or it is |
4 | | the base of
operations for the services performed. |
5 | | (D) A full-time employee working 30 or more hours |
6 | | per week. |
7 | | (4) For tax years ending on or after December 31, 1985 |
8 | | and prior to
December 31, 1988, the credit shall be allowed |
9 | | for the tax year in which
the eligible employees are hired. |
10 | | For tax years ending on or after
December 31, 1988, the |
11 | | credit shall be allowed for the tax year immediately
|
12 | | following the tax year in which the eligible employees are |
13 | | hired. If the
amount of the credit exceeds the tax |
14 | | liability for that year, whether it
exceeds the original |
15 | | liability or the liability as later amended, such
excess |
16 | | may be carried forward and applied to the tax liability of |
17 | | the 5
taxable years following the excess credit year. The |
18 | | credit shall be
applied to the earliest year for which |
19 | | there is a liability. If there is
credit from more than one |
20 | | tax year that is available to offset a liability,
earlier |
21 | | credit shall be applied first. |
22 | | (5) The Department of Revenue shall promulgate such |
23 | | rules and regulations
as may be deemed necessary to carry |
24 | | out the purposes of this subsection (g). |
25 | | (6) The credit shall be available for eligible |
26 | | employees hired on or
after January 1, 1986. |
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1 | | (h) Investment credit; High Impact Business. |
2 | | (1) Subject to subsections (b) and (b-5) of Section
5.5 |
3 | | of the Illinois Enterprise Zone Act, a taxpayer shall be |
4 | | allowed a credit
against the tax imposed by subsections (a) |
5 | | and (b) of this Section for
investment in qualified
|
6 | | property which is placed in service by a Department of |
7 | | Commerce and Economic Opportunity
designated High Impact |
8 | | Business. The credit shall be .5% of the basis
for such |
9 | | property. The credit shall not be available (i) until the |
10 | | minimum
investments in qualified property set forth in |
11 | | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
|
12 | | Enterprise Zone Act have been satisfied
or (ii) until the |
13 | | time authorized in subsection (b-5) of the Illinois
|
14 | | Enterprise Zone Act for entities designated as High Impact |
15 | | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and |
16 | | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone |
17 | | Act, and shall not be allowed to the extent that it would
|
18 | | reduce a taxpayer's liability for the tax imposed by |
19 | | subsections (a) and (b) of
this Section to below zero. The |
20 | | credit applicable to such investments shall be
taken in the |
21 | | taxable year in which such investments have been completed. |
22 | | The
credit for additional investments beyond the minimum |
23 | | investment by a designated
high impact business authorized |
24 | | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois |
25 | | Enterprise Zone Act shall be available only in the taxable |
26 | | year in
which the property is placed in service and shall |
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1 | | not be allowed to the extent
that it would reduce a |
2 | | taxpayer's liability for the tax imposed by subsections
(a) |
3 | | and (b) of this Section to below zero.
For tax years ending |
4 | | on or after December 31, 1987, the credit shall be
allowed |
5 | | for the tax year in which the property is placed in |
6 | | service, or, if
the amount of the credit exceeds the tax |
7 | | liability for that year, whether
it exceeds the original |
8 | | liability or the liability as later amended, such
excess |
9 | | may be carried forward and applied to the tax liability of |
10 | | the 5
taxable years following the excess credit year. The |
11 | | credit shall be
applied to the earliest year for which |
12 | | there is a liability. If there is
credit from more than one |
13 | | tax year that is available to offset a liability,
the |
14 | | credit accruing first in time shall be applied first. |
15 | | Changes made in this subdivision (h)(1) by Public Act |
16 | | 88-670
restore changes made by Public Act 85-1182 and |
17 | | reflect existing law. |
18 | | (2) The term qualified property means property which: |
19 | | (A) is tangible, whether new or used, including |
20 | | buildings and
structural components of buildings; |
21 | | (B) is depreciable pursuant to Section 167 of the |
22 | | Internal Revenue
Code, except that "3-year property" |
23 | | as defined in Section 168(c)(2)(A) of
that Code is not |
24 | | eligible for the credit provided by this subsection |
25 | | (h); |
26 | | (C) is acquired by purchase as defined in Section |
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1 | | 179(d) of the
Internal Revenue Code; and |
2 | | (D) is not eligible for the Enterprise Zone |
3 | | Investment Credit provided
by subsection (f) of this |
4 | | Section. |
5 | | (3) The basis of qualified property shall be the basis |
6 | | used to compute
the depreciation deduction for federal |
7 | | income tax purposes. |
8 | | (4) If the basis of the property for federal income tax |
9 | | depreciation
purposes is increased after it has been placed |
10 | | in service in a federally
designated Foreign Trade Zone or |
11 | | Sub-Zone located in Illinois by the taxpayer,
the amount of |
12 | | such increase shall be deemed property placed in service on
|
13 | | the date of such increase in basis. |
14 | | (5) The term "placed in service" shall have the same |
15 | | meaning as under
Section 46 of the Internal Revenue Code. |
16 | | (6) If during any taxable year ending on or before |
17 | | December 31, 1996,
any property ceases to be qualified
|
18 | | property in the hands of the taxpayer within 48 months |
19 | | after being placed
in service, or the situs of any |
20 | | qualified property is moved outside
Illinois within 48 |
21 | | months after being placed in service, the tax imposed
under |
22 | | subsections (a) and (b) of this Section for such taxable |
23 | | year shall
be increased. Such increase shall be determined |
24 | | by (i) recomputing the
investment credit which would have |
25 | | been allowed for the year in which
credit for such property |
26 | | was originally allowed by eliminating such
property from |
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1 | | such computation, and (ii) subtracting such recomputed |
2 | | credit
from the amount of credit previously allowed. For |
3 | | the purposes of this
paragraph (6), a reduction of the |
4 | | basis of qualified property resulting
from a |
5 | | redetermination of the purchase price shall be deemed a |
6 | | disposition
of qualified property to the extent of such |
7 | | reduction. |
8 | | (7) Beginning with tax years ending after December 31, |
9 | | 1996, if a
taxpayer qualifies for the credit under this |
10 | | subsection (h) and thereby is
granted a tax abatement and |
11 | | the taxpayer relocates its entire facility in
violation of |
12 | | the explicit terms and length of the contract under Section
|
13 | | 18-183 of the Property Tax Code, the tax imposed under |
14 | | subsections
(a) and (b) of this Section shall be increased |
15 | | for the taxable year
in which the taxpayer relocated its |
16 | | facility by an amount equal to the
amount of credit |
17 | | received by the taxpayer under this subsection (h). |
18 | | (i) Credit for Personal Property Tax Replacement Income |
19 | | Tax.
For tax years ending prior to December 31, 2003, a credit |
20 | | shall be allowed
against the tax imposed by
subsections (a) and |
21 | | (b) of this Section for the tax imposed by subsections (c)
and |
22 | | (d) of this Section. This credit shall be computed by |
23 | | multiplying the tax
imposed by subsections (c) and (d) of this |
24 | | Section by a fraction, the numerator
of which is base income |
25 | | allocable to Illinois and the denominator of which is
Illinois |
26 | | base income, and further multiplying the product by the tax |
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1 | | rate
imposed by subsections (a) and (b) of this Section. |
2 | | Any credit earned on or after December 31, 1986 under
this |
3 | | subsection which is unused in the year
the credit is computed |
4 | | because it exceeds the tax liability imposed by
subsections (a) |
5 | | and (b) for that year (whether it exceeds the original
|
6 | | liability or the liability as later amended) may be carried |
7 | | forward and
applied to the tax liability imposed by subsections |
8 | | (a) and (b) of the 5
taxable years following the excess credit |
9 | | year, provided that no credit may
be carried forward to any |
10 | | year ending on or
after December 31, 2003. This credit shall be
|
11 | | applied first to the earliest year for which there is a |
12 | | liability. If
there is a credit under this subsection from more |
13 | | than one tax year that is
available to offset a liability the |
14 | | earliest credit arising under this
subsection shall be applied |
15 | | first. |
16 | | If, during any taxable year ending on or after December 31, |
17 | | 1986, the
tax imposed by subsections (c) and (d) of this |
18 | | Section for which a taxpayer
has claimed a credit under this |
19 | | subsection (i) is reduced, the amount of
credit for such tax |
20 | | shall also be reduced. Such reduction shall be
determined by |
21 | | recomputing the credit to take into account the reduced tax
|
22 | | imposed by subsections (c) and (d). If any portion of the
|
23 | | reduced amount of credit has been carried to a different |
24 | | taxable year, an
amended return shall be filed for such taxable |
25 | | year to reduce the amount of
credit claimed. |
26 | | (j) Training expense credit. Beginning with tax years |
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1 | | ending on or
after December 31, 1986 and prior to December 31, |
2 | | 2003, a taxpayer shall be
allowed a credit against the
tax |
3 | | imposed by subsections (a) and (b) under this Section
for all |
4 | | amounts paid or accrued, on behalf of all persons
employed by |
5 | | the taxpayer in Illinois or Illinois residents employed
outside |
6 | | of Illinois by a taxpayer, for educational or vocational |
7 | | training in
semi-technical or technical fields or semi-skilled |
8 | | or skilled fields, which
were deducted from gross income in the |
9 | | computation of taxable income. The
credit against the tax |
10 | | imposed by subsections (a) and (b) shall be 1.6% of
such |
11 | | training expenses. For partners, shareholders of subchapter S
|
12 | | corporations, and owners of limited liability companies, if the |
13 | | liability
company is treated as a partnership for purposes of |
14 | | federal and State income
taxation, there shall be allowed a |
15 | | credit under this subsection (j) to be
determined in accordance |
16 | | with the determination of income and distributive
share of |
17 | | income under Sections 702 and 704 and subchapter S of the |
18 | | Internal
Revenue Code. |
19 | | Any credit allowed under this subsection which is unused in |
20 | | the year
the credit is earned may be carried forward to each of |
21 | | the 5 taxable
years following the year for which the credit is |
22 | | first computed until it is
used. This credit shall be applied |
23 | | first to the earliest year for which
there is a liability. If |
24 | | there is a credit under this subsection from more
than one tax |
25 | | year that is available to offset a liability the earliest
|
26 | | credit arising under this subsection shall be applied first. No |
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1 | | carryforward
credit may be claimed in any tax year ending on or |
2 | | after
December 31, 2003. |
3 | | (k) Research and development credit. For tax years ending |
4 | | after July 1, 1990 and prior to
December 31, 2003, and |
5 | | beginning again for tax years ending on or after December 31, |
6 | | 2004, and ending prior to January 1, 2016, a taxpayer shall be
|
7 | | allowed a credit against the tax imposed by subsections (a) and |
8 | | (b) of this
Section for increasing research activities in this |
9 | | State. The credit
allowed against the tax imposed by |
10 | | subsections (a) and (b) shall be equal
to 6 1/2% of the |
11 | | qualifying expenditures for increasing research activities
in |
12 | | this State. For partners, shareholders of subchapter S |
13 | | corporations, and
owners of limited liability companies, if the |
14 | | liability company is treated as a
partnership for purposes of |
15 | | federal and State income taxation, there shall be
allowed a |
16 | | credit under this subsection to be determined in accordance |
17 | | with the
determination of income and distributive share of |
18 | | income under Sections 702 and
704 and subchapter S of the |
19 | | Internal Revenue Code. |
20 | | For purposes of this subsection, "qualifying expenditures" |
21 | | means the
qualifying expenditures as defined for the federal |
22 | | credit for increasing
research activities which would be |
23 | | allowable under Section 41 of the
Internal Revenue Code and |
24 | | which are conducted in this State, "qualifying
expenditures for |
25 | | increasing research activities in this State" means the
excess |
26 | | of qualifying expenditures for the taxable year in which |
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1 | | incurred
over qualifying expenditures for the base period, |
2 | | "qualifying expenditures
for the base period" means the average |
3 | | of the qualifying expenditures for
each year in the base |
4 | | period, and "base period" means the 3 taxable years
immediately |
5 | | preceding the taxable year for which the determination is
being |
6 | | made. |
7 | | Any credit in excess of the tax liability for the taxable |
8 | | year
may be carried forward. A taxpayer may elect to have the
|
9 | | unused credit shown on its final completed return carried over |
10 | | as a credit
against the tax liability for the following 5 |
11 | | taxable years or until it has
been fully used, whichever occurs |
12 | | first; provided that no credit earned in a tax year ending |
13 | | prior to December 31, 2003 may be carried forward to any year |
14 | | ending on or after December 31, 2003. |
15 | | If an unused credit is carried forward to a given year from |
16 | | 2 or more
earlier years, that credit arising in the earliest |
17 | | year will be applied
first against the tax liability for the |
18 | | given year. If a tax liability for
the given year still |
19 | | remains, the credit from the next earliest year will
then be |
20 | | applied, and so on, until all credits have been used or no tax
|
21 | | liability for the given year remains. Any remaining unused |
22 | | credit or
credits then will be carried forward to the next |
23 | | following year in which a
tax liability is incurred, except |
24 | | that no credit can be carried forward to
a year which is more |
25 | | than 5 years after the year in which the expense for
which the |
26 | | credit is given was incurred. |
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1 | | No inference shall be drawn from this amendatory Act of the |
2 | | 91st General
Assembly in construing this Section for taxable |
3 | | years beginning before January
1, 1999. |
4 | | (l) Environmental Remediation Tax Credit. |
5 | | (i) For tax years ending after December 31, 1997 and on |
6 | | or before
December 31, 2001, a taxpayer shall be allowed a |
7 | | credit against the tax
imposed by subsections (a) and (b) |
8 | | of this Section for certain amounts paid
for unreimbursed |
9 | | eligible remediation costs, as specified in this |
10 | | subsection.
For purposes of this Section, "unreimbursed |
11 | | eligible remediation costs" means
costs approved by the |
12 | | Illinois Environmental Protection Agency ("Agency") under
|
13 | | Section 58.14 of the Environmental Protection Act that were |
14 | | paid in performing
environmental remediation at a site for |
15 | | which a No Further Remediation Letter
was issued by the |
16 | | Agency and recorded under Section 58.10 of the |
17 | | Environmental
Protection Act. The credit must be claimed |
18 | | for the taxable year in which
Agency approval of the |
19 | | eligible remediation costs is granted. The credit is
not |
20 | | available to any taxpayer if the taxpayer or any related |
21 | | party caused or
contributed to, in any material respect, a |
22 | | release of regulated substances on,
in, or under the site |
23 | | that was identified and addressed by the remedial
action |
24 | | pursuant to the Site Remediation Program of the |
25 | | Environmental Protection
Act. After the Pollution Control |
26 | | Board rules are adopted pursuant to the
Illinois |
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1 | | Administrative Procedure Act for the administration and |
2 | | enforcement of
Section 58.9 of the Environmental |
3 | | Protection Act, determinations as to credit
availability |
4 | | for purposes of this Section shall be made consistent with |
5 | | those
rules. For purposes of this Section, "taxpayer" |
6 | | includes a person whose tax
attributes the taxpayer has |
7 | | succeeded to under Section 381 of the Internal
Revenue Code |
8 | | and "related party" includes the persons disallowed a |
9 | | deduction
for losses by paragraphs (b), (c), and (f)(1) of |
10 | | Section 267 of the Internal
Revenue Code by virtue of being |
11 | | a related taxpayer, as well as any of its
partners. The |
12 | | credit allowed against the tax imposed by subsections (a) |
13 | | and
(b) shall be equal to 25% of the unreimbursed eligible |
14 | | remediation costs in
excess of $100,000 per site, except |
15 | | that the $100,000 threshold shall not apply
to any site |
16 | | contained in an enterprise zone as determined by the |
17 | | Department of
Commerce and Community Affairs (now |
18 | | Department of Commerce and Economic Opportunity). The |
19 | | total credit allowed shall not exceed
$40,000 per year with |
20 | | a maximum total of $150,000 per site. For partners and
|
21 | | shareholders of subchapter S corporations, there shall be |
22 | | allowed a credit
under this subsection to be determined in |
23 | | accordance with the determination of
income and |
24 | | distributive share of income under Sections 702 and 704 and
|
25 | | subchapter S of the Internal Revenue Code. |
26 | | (ii) A credit allowed under this subsection that is |
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1 | | unused in the year
the credit is earned may be carried |
2 | | forward to each of the 5 taxable years
following the year |
3 | | for which the credit is first earned until it is used.
The |
4 | | term "unused credit" does not include any amounts of |
5 | | unreimbursed eligible
remediation costs in excess of the |
6 | | maximum credit per site authorized under
paragraph (i). |
7 | | This credit shall be applied first to the earliest year
for |
8 | | which there is a liability. If there is a credit under this |
9 | | subsection
from more than one tax year that is available to |
10 | | offset a liability, the
earliest credit arising under this |
11 | | subsection shall be applied first. A
credit allowed under |
12 | | this subsection may be sold to a buyer as part of a sale
of |
13 | | all or part of the remediation site for which the credit |
14 | | was granted. The
purchaser of a remediation site and the |
15 | | tax credit shall succeed to the unused
credit and remaining |
16 | | carry-forward period of the seller. To perfect the
|
17 | | transfer, the assignor shall record the transfer in the |
18 | | chain of title for the
site and provide written notice to |
19 | | the Director of the Illinois Department of
Revenue of the |
20 | | assignor's intent to sell the remediation site and the |
21 | | amount of
the tax credit to be transferred as a portion of |
22 | | the sale. In no event may a
credit be transferred to any |
23 | | taxpayer if the taxpayer or a related party would
not be |
24 | | eligible under the provisions of subsection (i). |
25 | | (iii) For purposes of this Section, the term "site" |
26 | | shall have the same
meaning as under Section 58.2 of the |
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1 | | Environmental Protection Act. |
2 | | (m) Education expense credit. Beginning with tax years |
3 | | ending after
December 31, 1999, a taxpayer who
is the custodian |
4 | | of one or more qualifying pupils shall be allowed a credit
|
5 | | against the tax imposed by subsections (a) and (b) of this |
6 | | Section for
qualified education expenses incurred on behalf of |
7 | | the qualifying pupils.
The credit shall be equal to 25% of |
8 | | qualified education expenses, but in no
event may the total |
9 | | credit under this subsection claimed by a
family that is the
|
10 | | custodian of qualifying pupils exceed $500. In no event shall a |
11 | | credit under
this subsection reduce the taxpayer's liability |
12 | | under this Act to less than
zero. This subsection is exempt |
13 | | from the provisions of Section 250 of this
Act. |
14 | | For purposes of this subsection: |
15 | | "Qualifying pupils" means individuals who (i) are |
16 | | residents of the State of
Illinois, (ii) are under the age of |
17 | | 21 at the close of the school year for
which a credit is |
18 | | sought, and (iii) during the school year for which a credit
is |
19 | | sought were full-time pupils enrolled in a kindergarten through |
20 | | twelfth
grade education program at any school, as defined in |
21 | | this subsection. |
22 | | "Qualified education expense" means the amount incurred
on |
23 | | behalf of a qualifying pupil in excess of $250 for tuition, |
24 | | book fees, and
lab fees at the school in which the pupil is |
25 | | enrolled during the regular school
year. |
26 | | "School" means any public or nonpublic elementary or |
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1 | | secondary school in
Illinois that is in compliance with Title |
2 | | VI of the Civil Rights Act of 1964
and attendance at which |
3 | | satisfies the requirements of Section 26-1 of the
School Code, |
4 | | except that nothing shall be construed to require a child to
|
5 | | attend any particular public or nonpublic school to qualify for |
6 | | the credit
under this Section. |
7 | | "Custodian" means, with respect to qualifying pupils, an |
8 | | Illinois resident
who is a parent, the parents, a legal |
9 | | guardian, or the legal guardians of the
qualifying pupils. |
10 | | (n) River Edge Redevelopment Zone site remediation tax |
11 | | credit.
|
12 | | (i) For tax years ending on or after December 31, 2006, |
13 | | a taxpayer shall be allowed a credit against the tax |
14 | | imposed by subsections (a) and (b) of this Section for |
15 | | certain amounts paid for unreimbursed eligible remediation |
16 | | costs, as specified in this subsection. For purposes of |
17 | | this Section, "unreimbursed eligible remediation costs" |
18 | | means costs approved by the Illinois Environmental |
19 | | Protection Agency ("Agency") under Section 58.14a of the |
20 | | Environmental Protection Act that were paid in performing |
21 | | environmental remediation at a site within a River Edge |
22 | | Redevelopment Zone for which a No Further Remediation |
23 | | Letter was issued by the Agency and recorded under Section |
24 | | 58.10 of the Environmental Protection Act. The credit must |
25 | | be claimed for the taxable year in which Agency approval of |
26 | | the eligible remediation costs is granted. The credit is |
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1 | | not available to any taxpayer if the taxpayer or any |
2 | | related party caused or contributed to, in any material |
3 | | respect, a release of regulated substances on, in, or under |
4 | | the site that was identified and addressed by the remedial |
5 | | action pursuant to the Site Remediation Program of the |
6 | | Environmental Protection Act. Determinations as to credit |
7 | | availability for purposes of this Section shall be made |
8 | | consistent with rules adopted by the Pollution Control |
9 | | Board pursuant to the Illinois Administrative Procedure |
10 | | Act for the administration and enforcement of Section 58.9 |
11 | | of the Environmental Protection Act. For purposes of this |
12 | | Section, "taxpayer" includes a person whose tax attributes |
13 | | the taxpayer has succeeded to under Section 381 of the |
14 | | Internal Revenue Code and "related party" includes the |
15 | | persons disallowed a deduction for losses by paragraphs |
16 | | (b), (c), and (f)(1) of Section 267 of the Internal Revenue |
17 | | Code by virtue of being a related taxpayer, as well as any |
18 | | of its partners. The credit allowed against the tax imposed |
19 | | by subsections (a) and (b) shall be equal to 25% of the |
20 | | unreimbursed eligible remediation costs in excess of |
21 | | $100,000 per site. |
22 | | (ii) A credit allowed under this subsection that is |
23 | | unused in the year the credit is earned may be carried |
24 | | forward to each of the 5 taxable years following the year |
25 | | for which the credit is first earned until it is used. This |
26 | | credit shall be applied first to the earliest year for |
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1 | | which there is a liability. If there is a credit under this |
2 | | subsection from more than one tax year that is available to |
3 | | offset a liability, the earliest credit arising under this |
4 | | subsection shall be applied first. A credit allowed under |
5 | | this subsection may be sold to a buyer as part of a sale of |
6 | | all or part of the remediation site for which the credit |
7 | | was granted. The purchaser of a remediation site and the |
8 | | tax credit shall succeed to the unused credit and remaining |
9 | | carry-forward period of the seller. To perfect the |
10 | | transfer, the assignor shall record the transfer in the |
11 | | chain of title for the site and provide written notice to |
12 | | the Director of the Illinois Department of Revenue of the |
13 | | assignor's intent to sell the remediation site and the |
14 | | amount of the tax credit to be transferred as a portion of |
15 | | the sale. In no event may a credit be transferred to any |
16 | | taxpayer if the taxpayer or a related party would not be |
17 | | eligible under the provisions of subsection (i). |
18 | | (iii) For purposes of this Section, the term "site" |
19 | | shall have the same meaning as under Section 58.2 of the |
20 | | Environmental Protection Act. |
21 | | (Source: P.A. 96-115, eff. 7-31-09; 96-116, eff. 7-31-09; |
22 | | 96-937, eff. 6-23-10; 96-1000, eff. 7-2-10; 96-1496, eff. |
23 | | 1-13-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, eff. |
24 | | 8-7-12.)
|
25 | | (35 ILCS 5/303) (from Ch. 120, par. 3-303)
|
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1 | | Sec. 303. (a) In general. Any item of capital gain or loss, |
2 | | and any
item of income from rents or royalties from real or |
3 | | tangible personal
property, interest, dividends, and patent or |
4 | | copyright royalties, and prizes
awarded under the Illinois |
5 | | Lottery Law, and, for taxable years ending on or after December |
6 | | 31, 2013, wagering and gambling winnings from Illinois sources |
7 | | as set forth in subsection (e-1) of this Section, to the extent |
8 | | such item constitutes
nonbusiness income, together with any |
9 | | item of deduction directly allocable
thereto, shall be |
10 | | allocated by any person other than a resident as provided
in |
11 | | this Section.
|
12 | | (b) Capital gains and losses. |
13 | | (1) Real property. Capital gains and
losses from sales |
14 | | or exchanges of real property are allocable to this State
|
15 | | if the property is located in this State.
|
16 | | (2) Tangible personal property. Capital gains and |
17 | | losses from sales
or exchanges of tangible personal |
18 | | property are allocable to this State if,
at the time of |
19 | | such sale or exchange:
|
20 | | (A) The property had its situs in this State; or
|
21 | | (B) The taxpayer had its commercial domicile in |
22 | | this State and was not
taxable in the state in which |
23 | | the property had its situs.
|
24 | | (3) Intangibles. Capital gains and losses from sales or |
25 | | exchanges of
intangible personal property are allocable to |
26 | | this State if the taxpayer
had its commercial domicile in |
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1 | | this State at the time of such sale or
exchange.
|
2 | | (c) Rents and royalties. |
3 | | (1) Real property. Rents and royalties
from real |
4 | | property are allocable to this State if the property is |
5 | | located
in this State.
|
6 | | (2) Tangible personal property. Rents and royalties |
7 | | from tangible
personal property are allocable to this |
8 | | State:
|
9 | | (A) If and to the extent that the property is |
10 | | utilized in this State; or
|
11 | | (B) In their entirety if, at the time such rents or |
12 | | royalties were paid
or accrued, the taxpayer had its |
13 | | commercial domicile in this State and was
not organized |
14 | | under the laws of or taxable with respect to such rents |
15 | | or
royalties in the state in which the property was |
16 | | utilized.
The extent of utilization of tangible |
17 | | personal property in a state is
determined by |
18 | | multiplying the rents or royalties derived from such |
19 | | property
by a fraction, the numerator of which is the |
20 | | number of days of physical
location of the property in |
21 | | the state during the rental or royalty period
in the |
22 | | taxable year and the denominator of which is the number |
23 | | of days of
physical location of the property everywhere |
24 | | during all rental or royalty
periods in the taxable |
25 | | year. If the physical location of the property
during |
26 | | the rental or royalty period is unknown or |
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1 | | unascertainable by the
taxpayer, tangible personal |
2 | | property is utilized in the state in which the
property |
3 | | was located at the time the rental or royalty payer |
4 | | obtained
possession.
|
5 | | (d) Patent and copyright royalties.
|
6 | | (1) Allocation. Patent and copyright royalties are |
7 | | allocable to this
State:
|
8 | | (A) If and to the extent that the patent or |
9 | | copyright is utilized by the
payer in this State; or
|
10 | | (B) If and to the extent that the patent or |
11 | | copyright is utilized by the
payer in a state in which |
12 | | the taxpayer is not taxable with respect to such
|
13 | | royalties and, at the time such royalties were paid or |
14 | | accrued, the
taxpayer had its commercial domicile in |
15 | | this State.
|
16 | | (2) Utilization.
|
17 | | (A) A patent is utilized in a state to the extent |
18 | | that it is employed in
production, fabrication, |
19 | | manufacturing or other processing in the state or
to |
20 | | the extent that a patented product is produced in the |
21 | | state. If the
basis of receipts from patent royalties |
22 | | does not permit allocation to
states or if the |
23 | | accounting procedures do not reflect states of
|
24 | | utilization, the patent is utilized in this State if |
25 | | the taxpayer has its
commercial domicile in this State.
|
26 | | (B) A copyright is utilized in a state to the |
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1 | | extent that printing or
other publication originates |
2 | | in the state. If the basis of receipts from
copyright |
3 | | royalties does not permit allocation to states or if |
4 | | the
accounting procedures do not reflect states of |
5 | | utilization, the copyright
is utilized in this State if |
6 | | the taxpayer has its commercial domicile in
this State.
|
7 | | (e) Illinois lottery prizes. Prizes awarded under the |
8 | | "Illinois Lottery
Law", approved December 14, 1973, are |
9 | | allocable to this State.
|
10 | | (e-1) Wagering and gambling winnings. Payments received in |
11 | | taxable years ending on or after December 31, 2013 of winnings |
12 | | from pari-mutuel wagering conducted at a wagering facility |
13 | | licensed under the Illinois Horse Racing Act of 1975 and from |
14 | | gambling games conducted on a riverboat or in a casino or |
15 | | electronic gaming facility licensed under the Illinois |
16 | | Gambling Act are allocable to this State. |
17 | | (e-5) Unemployment benefits. Unemployment benefits paid by |
18 | | the Illinois Department of Employment Security are allocable to |
19 | | this State. |
20 | | (f) Taxability in other state. For purposes of allocation |
21 | | of income
pursuant to this Section, a taxpayer is taxable in |
22 | | another state if:
|
23 | | (1) In that state he is subject to a net income tax, a |
24 | | franchise tax
measured by net income, a franchise tax for |
25 | | the privilege of doing
business, or a corporate stock tax; |
26 | | or
|
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1 | | (2) That state has jurisdiction to subject the taxpayer |
2 | | to a net income
tax regardless of whether, in fact, the |
3 | | state does or does not.
|
4 | | (g) Cross references. |
5 | | (1) For allocation of interest and dividends by
persons |
6 | | other than residents, see Section 301(c)(2).
|
7 | | (2) For allocation of nonbusiness income by residents, |
8 | | see Section
301(a).
|
9 | | (Source: P.A. 97-709, eff. 7-1-12.)
|
10 | | (35 ILCS 5/304) (from Ch. 120, par. 3-304)
|
11 | | Sec. 304. Business income of persons other than residents.
|
12 | | (a) In general. The business income of a person other than |
13 | | a
resident shall be allocated to this State if such person's |
14 | | business
income is derived solely from this State. If a person |
15 | | other than a
resident derives business income from this State |
16 | | and one or more other
states, then, for tax years ending on or |
17 | | before December 30, 1998, and
except as otherwise provided by |
18 | | this Section, such
person's business income shall be |
19 | | apportioned to this State by
multiplying the income by a |
20 | | fraction, the numerator of which is the sum
of the property |
21 | | factor (if any), the payroll factor (if any) and 200% of the
|
22 | | sales factor (if any), and the denominator of which is 4 |
23 | | reduced by the
number of factors other than the sales factor |
24 | | which have a denominator
of zero and by an additional 2 if the |
25 | | sales factor has a denominator of zero.
For tax years ending on |
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1 | | or after December 31, 1998, and except as otherwise
provided by |
2 | | this Section, persons other than
residents who derive business |
3 | | income from this State and one or more other
states shall |
4 | | compute their apportionment factor by weighting their |
5 | | property,
payroll, and sales factors as provided in
subsection |
6 | | (h) of this Section.
|
7 | | (1) Property factor.
|
8 | | (A) The property factor is a fraction, the numerator of |
9 | | which is the
average value of the person's real and |
10 | | tangible personal property owned
or rented and used in the |
11 | | trade or business in this State during the
taxable year and |
12 | | the denominator of which is the average value of all
the |
13 | | person's real and tangible personal property owned or |
14 | | rented and
used in the trade or business during the taxable |
15 | | year.
|
16 | | (B) Property owned by the person is valued at its |
17 | | original cost.
Property rented by the person is valued at 8 |
18 | | times the net annual rental
rate. Net annual rental rate is |
19 | | the annual rental rate paid by the
person less any annual |
20 | | rental rate received by the person from
sub-rentals.
|
21 | | (C) The average value of property shall be determined |
22 | | by averaging
the values at the beginning and ending of the |
23 | | taxable year but the
Director may require the averaging of |
24 | | monthly values during the taxable
year if reasonably |
25 | | required to reflect properly the average value of the
|
26 | | person's property.
|
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1 | | (2) Payroll factor.
|
2 | | (A) The payroll factor is a fraction, the numerator of |
3 | | which is the
total amount paid in this State during the |
4 | | taxable year by the person
for compensation, and the |
5 | | denominator of which is the total compensation
paid |
6 | | everywhere during the taxable year.
|
7 | | (B) Compensation is paid in this State if:
|
8 | | (i) The individual's service is performed entirely |
9 | | within this
State;
|
10 | | (ii) The individual's service is performed both |
11 | | within and without
this State, but the service |
12 | | performed without this State is incidental
to the |
13 | | individual's service performed within this State; or
|
14 | | (iii) Some of the service is performed within this |
15 | | State and either
the base of operations, or if there is |
16 | | no base of operations, the place
from which the service |
17 | | is directed or controlled is within this State,
or the |
18 | | base of operations or the place from which the service |
19 | | is
directed or controlled is not in any state in which |
20 | | some part of the
service is performed, but the |
21 | | individual's residence is in this State.
|
22 | | (iv) Compensation paid to nonresident professional |
23 | | athletes. |
24 | | (a) General. The Illinois source income of a |
25 | | nonresident individual who is a member of a |
26 | | professional athletic team includes the portion of the |
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1 | | individual's total compensation for services performed |
2 | | as a member of a professional athletic team during the |
3 | | taxable year which the number of duty days spent within |
4 | | this State performing services for the team in any |
5 | | manner during the taxable year bears to the total |
6 | | number of duty days spent both within and without this |
7 | | State during the taxable year. |
8 | | (b) Travel days. Travel days that do not involve |
9 | | either a game, practice, team meeting, or other similar |
10 | | team event are not considered duty days spent in this |
11 | | State. However, such travel days are considered in the |
12 | | total duty days spent both within and without this |
13 | | State. |
14 | | (c) Definitions. For purposes of this subpart |
15 | | (iv): |
16 | | (1) The term "professional athletic team" |
17 | | includes, but is not limited to, any professional |
18 | | baseball, basketball, football, soccer, or hockey |
19 | | team. |
20 | | (2) The term "member of a professional |
21 | | athletic team" includes those employees who are |
22 | | active players, players on the disabled list, and |
23 | | any other persons required to travel and who travel |
24 | | with and perform services on behalf of a |
25 | | professional athletic team on a regular basis. |
26 | | This includes, but is not limited to, coaches, |
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1 | | managers, and trainers. |
2 | | (3) Except as provided in items (C) and (D) of |
3 | | this subpart (3), the term "duty days" means all |
4 | | days during the taxable year from the beginning of |
5 | | the professional athletic team's official |
6 | | pre-season training period through the last game |
7 | | in which the team competes or is scheduled to |
8 | | compete. Duty days shall be counted for the year in |
9 | | which they occur, including where a team's |
10 | | official pre-season training period through the |
11 | | last game in which the team competes or is |
12 | | scheduled to compete, occurs during more than one |
13 | | tax year. |
14 | | (A) Duty days shall also include days on |
15 | | which a member of a professional athletic team |
16 | | performs service for a team on a date that does |
17 | | not fall within the foregoing period (e.g., |
18 | | participation in instructional leagues, the |
19 | | "All Star Game", or promotional "caravans"). |
20 | | Performing a service for a professional |
21 | | athletic team includes conducting training and |
22 | | rehabilitation activities, when such |
23 | | activities are conducted at team facilities. |
24 | | (B) Also included in duty days are game |
25 | | days, practice days, days spent at team |
26 | | meetings, promotional caravans, preseason |
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1 | | training camps, and days served with the team |
2 | | through all post-season games in which the team |
3 | | competes or is scheduled to compete. |
4 | | (C) Duty days for any person who joins a |
5 | | team during the period from the beginning of |
6 | | the professional athletic team's official |
7 | | pre-season training period through the last |
8 | | game in which the team competes, or is |
9 | | scheduled to compete, shall begin on the day |
10 | | that person joins the team. Conversely, duty |
11 | | days for any person who leaves a team during |
12 | | this period shall end on the day that person |
13 | | leaves the team. Where a person switches teams |
14 | | during a taxable year, a separate duty-day |
15 | | calculation shall be made for the period the |
16 | | person was with each team. |
17 | | (D) Days for which a member of a |
18 | | professional athletic team is not compensated |
19 | | and is not performing services for the team in |
20 | | any manner, including days when such member of |
21 | | a professional athletic team has been |
22 | | suspended without pay and prohibited from |
23 | | performing any services for the team, shall not |
24 | | be treated as duty days. |
25 | | (E) Days for which a member of a |
26 | | professional athletic team is on the disabled |
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1 | | list and does not conduct rehabilitation |
2 | | activities at facilities of the team, and is |
3 | | not otherwise performing services for the team |
4 | | in Illinois, shall not be considered duty days |
5 | | spent in this State. All days on the disabled |
6 | | list, however, are considered to be included in |
7 | | total duty days spent both within and without |
8 | | this State. |
9 | | (4) The term "total compensation for services |
10 | | performed as a member of a professional athletic |
11 | | team" means the total compensation received during |
12 | | the taxable year for services performed: |
13 | | (A) from the beginning of the official |
14 | | pre-season training period through the last |
15 | | game in which the team competes or is scheduled |
16 | | to compete during that taxable year; and |
17 | | (B) during the taxable year on a date which |
18 | | does not fall within the foregoing period |
19 | | (e.g., participation in instructional leagues, |
20 | | the "All Star Game", or promotional caravans). |
21 | | This compensation shall include, but is not |
22 | | limited to, salaries, wages, bonuses as described |
23 | | in this subpart, and any other type of compensation |
24 | | paid during the taxable year to a member of a |
25 | | professional athletic team for services performed |
26 | | in that year. This compensation does not include |
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1 | | strike benefits, severance pay, termination pay, |
2 | | contract or option year buy-out payments, |
3 | | expansion or relocation payments, or any other |
4 | | payments not related to services performed for the |
5 | | team. |
6 | | For purposes of this subparagraph, "bonuses" |
7 | | included in "total compensation for services |
8 | | performed as a member of a professional athletic |
9 | | team" subject to the allocation described in |
10 | | Section 302(c)(1) are: bonuses earned as a result |
11 | | of play (i.e., performance bonuses) during the |
12 | | season, including bonuses paid for championship, |
13 | | playoff or "bowl" games played by a team, or for |
14 | | selection to all-star league or other honorary |
15 | | positions; and bonuses paid for signing a |
16 | | contract, unless the payment of the signing bonus |
17 | | is not conditional upon the signee playing any |
18 | | games for the team or performing any subsequent |
19 | | services for the team or even making the team, the |
20 | | signing bonus is payable separately from the |
21 | | salary and any other compensation, and the signing |
22 | | bonus is nonrefundable.
|
23 | | (3) Sales factor.
|
24 | | (A) The sales factor is a fraction, the numerator of |
25 | | which is the
total sales of the person in this State during |
26 | | the taxable year, and the
denominator of which is the total |
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1 | | sales of the person everywhere during
the taxable year.
|
2 | | (B) Sales of tangible personal property are in this |
3 | | State if:
|
4 | | (i) The property is delivered or shipped to a |
5 | | purchaser, other than
the United States government, |
6 | | within this State regardless of the f. o.
b. point or |
7 | | other conditions of the sale; or
|
8 | | (ii) The property is shipped from an office, store, |
9 | | warehouse,
factory or other place of storage in this |
10 | | State and either the purchaser
is the United States |
11 | | government or the person is not taxable in the
state of |
12 | | the purchaser; provided, however, that premises owned |
13 | | or leased
by a person who has independently contracted |
14 | | with the seller for the printing
of newspapers, |
15 | | periodicals or books shall not be deemed to be an |
16 | | office,
store, warehouse, factory or other place of |
17 | | storage for purposes of this
Section.
Sales of tangible |
18 | | personal property are not in this State if the
seller |
19 | | and purchaser would be members of the same unitary |
20 | | business group
but for the fact that either the seller |
21 | | or purchaser is a person with 80%
or more of total |
22 | | business activity outside of the United States and the
|
23 | | property is purchased for resale.
|
24 | | (B-1) Patents, copyrights, trademarks, and similar |
25 | | items of intangible
personal property.
|
26 | | (i) Gross receipts from the licensing, sale, or |
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1 | | other disposition of a
patent, copyright, trademark, |
2 | | or similar item of intangible personal property, other |
3 | | than gross receipts governed by paragraph (B-7) of this |
4 | | item (3),
are in this State to the extent the item is |
5 | | utilized in this State during the
year the gross |
6 | | receipts are included in gross income.
|
7 | | (ii) Place of utilization.
|
8 | | (I) A patent is utilized in a state to the |
9 | | extent that it is employed
in production, |
10 | | fabrication, manufacturing, or other processing in |
11 | | the state or
to the extent that a patented product |
12 | | is produced in the state. If a patent is
utilized |
13 | | in
more than one state, the extent to which it is |
14 | | utilized in any one state shall
be a fraction equal |
15 | | to the gross receipts of the licensee or purchaser |
16 | | from
sales or leases of items produced, |
17 | | fabricated, manufactured, or processed
within that |
18 | | state using the patent and of patented items |
19 | | produced within that
state, divided by the total of |
20 | | such gross receipts for all states in which the
|
21 | | patent is utilized.
|
22 | | (II) A copyright is utilized in a state to the |
23 | | extent that printing or
other publication |
24 | | originates in the state. If a copyright is utilized |
25 | | in more
than one state, the extent to which it is |
26 | | utilized in any one state shall be a
fraction equal |
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1 | | to the gross receipts from sales or licenses of |
2 | | materials
printed or published in that state |
3 | | divided by the total of such gross receipts
for all |
4 | | states in which the copyright is utilized.
|
5 | | (III) Trademarks and other items of intangible |
6 | | personal property
governed by this paragraph (B-1) |
7 | | are utilized in the state in which the
commercial |
8 | | domicile of the licensee or purchaser is located.
|
9 | | (iii) If the state of utilization of an item of |
10 | | property governed by
this paragraph (B-1) cannot be |
11 | | determined from the taxpayer's books and
records or |
12 | | from the books and records of any person related to the |
13 | | taxpayer
within the meaning of Section 267(b) of the |
14 | | Internal Revenue Code, 26 U.S.C.
267, the gross
|
15 | | receipts attributable to that item shall be excluded |
16 | | from both the numerator
and the denominator of the |
17 | | sales factor.
|
18 | | (B-2) Gross receipts from the license, sale, or other |
19 | | disposition of
patents, copyrights, trademarks, and |
20 | | similar items of intangible personal
property, other than |
21 | | gross receipts governed by paragraph (B-7) of this item |
22 | | (3), may be included in the numerator or denominator of the |
23 | | sales factor
only if gross receipts from licenses, sales, |
24 | | or other disposition of such items
comprise more than 50% |
25 | | of the taxpayer's total gross receipts included in gross
|
26 | | income during the tax year and during each of the 2 |
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1 | | immediately preceding tax
years; provided that, when a |
2 | | taxpayer is a member of a unitary business group,
such |
3 | | determination shall be made on the basis of the gross |
4 | | receipts of the
entire unitary business group.
|
5 | | (B-5) For taxable years ending on or after December 31, |
6 | | 2008, except as provided in subsections (ii) through (vii), |
7 | | receipts from the sale of telecommunications service or |
8 | | mobile telecommunications service are in this State if the |
9 | | customer's service address is in this State. |
10 | | (i) For purposes of this subparagraph (B-5), the |
11 | | following terms have the following meanings: |
12 | | "Ancillary services" means services that are |
13 | | associated with or incidental to the provision of |
14 | | "telecommunications services", including but not |
15 | | limited to "detailed telecommunications billing", |
16 | | "directory assistance", "vertical service", and "voice |
17 | | mail services". |
18 | | "Air-to-Ground Radiotelephone service" means a |
19 | | radio service, as that term is defined in 47 CFR 22.99, |
20 | | in which common carriers are authorized to offer and |
21 | | provide radio telecommunications service for hire to |
22 | | subscribers in aircraft. |
23 | | "Call-by-call Basis" means any method of charging |
24 | | for telecommunications services where the price is |
25 | | measured by individual calls. |
26 | | "Communications Channel" means a physical or |
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1 | | virtual path of communications over which signals are |
2 | | transmitted between or among customer channel |
3 | | termination points. |
4 | | "Conference bridging service" means an "ancillary |
5 | | service" that links two or more participants of an |
6 | | audio or video conference call and may include the |
7 | | provision of a telephone number. "Conference bridging |
8 | | service" does not include the "telecommunications |
9 | | services" used to reach the conference bridge. |
10 | | "Customer Channel Termination Point" means the |
11 | | location where the customer either inputs or receives |
12 | | the communications. |
13 | | "Detailed telecommunications billing service" |
14 | | means an "ancillary service" of separately stating |
15 | | information pertaining to individual calls on a |
16 | | customer's billing statement. |
17 | | "Directory assistance" means an "ancillary |
18 | | service" of providing telephone number information, |
19 | | and/or address information. |
20 | | "Home service provider" means the facilities based |
21 | | carrier or reseller with which the customer contracts |
22 | | for the provision of mobile telecommunications |
23 | | services. |
24 | | "Mobile telecommunications service" means |
25 | | commercial mobile radio service, as defined in Section |
26 | | 20.3 of Title 47 of the Code of Federal Regulations as |
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1 | | in effect on June 1, 1999. |
2 | | "Place of primary use" means the street address |
3 | | representative of where the customer's use of the |
4 | | telecommunications service primarily occurs, which |
5 | | must be the residential street address or the primary |
6 | | business street address of the customer. In the case of |
7 | | mobile telecommunications services, "place of primary |
8 | | use" must be within the licensed service area of the |
9 | | home service provider. |
10 | | "Post-paid telecommunication service" means the |
11 | | telecommunications service obtained by making a |
12 | | payment on a call-by-call basis either through the use |
13 | | of a credit card or payment mechanism such as a bank |
14 | | card, travel card, credit card, or debit card, or by |
15 | | charge made to a telephone number which is not |
16 | | associated with the origination or termination of the |
17 | | telecommunications service. A post-paid calling |
18 | | service includes telecommunications service, except a |
19 | | prepaid wireless calling service, that would be a |
20 | | prepaid calling service except it is not exclusively a |
21 | | telecommunication service. |
22 | | "Prepaid telecommunication service" means the |
23 | | right to access exclusively telecommunications |
24 | | services, which must be paid for in advance and which |
25 | | enables the origination of calls using an access number |
26 | | or authorization code, whether manually or |
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1 | | electronically dialed, and that is sold in |
2 | | predetermined units or dollars of which the number |
3 | | declines with use in a known amount. |
4 | | "Prepaid Mobile telecommunication service" means a |
5 | | telecommunications service that provides the right to |
6 | | utilize mobile wireless service as well as other |
7 | | non-telecommunication services, including but not |
8 | | limited to ancillary services, which must be paid for |
9 | | in advance that is sold in predetermined units or |
10 | | dollars of which the number declines with use in a |
11 | | known amount. |
12 | | "Private communication service" means a |
13 | | telecommunication service that entitles the customer |
14 | | to exclusive or priority use of a communications |
15 | | channel or group of channels between or among |
16 | | termination points, regardless of the manner in which |
17 | | such channel or channels are connected, and includes |
18 | | switching capacity, extension lines, stations, and any |
19 | | other associated services that are provided in |
20 | | connection with the use of such channel or channels. |
21 | | "Service address" means: |
22 | | (a) The location of the telecommunications |
23 | | equipment to which a customer's call is charged and |
24 | | from which the call originates or terminates, |
25 | | regardless of where the call is billed or paid; |
26 | | (b) If the location in line (a) is not known, |
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1 | | service address means the origination point of the |
2 | | signal of the telecommunications services first |
3 | | identified by either the seller's |
4 | | telecommunications system or in information |
5 | | received by the seller from its service provider |
6 | | where the system used to transport such signals is |
7 | | not that of the seller; and |
8 | | (c) If the locations in line (a) and line (b) |
9 | | are not known, the service address means the |
10 | | location of the customer's place of primary use. |
11 | | "Telecommunications service" means the electronic |
12 | | transmission, conveyance, or routing of voice, data, |
13 | | audio, video, or any other information or signals to a |
14 | | point, or between or among points. The term |
15 | | "telecommunications service" includes such |
16 | | transmission, conveyance, or routing in which computer |
17 | | processing applications are used to act on the form, |
18 | | code or protocol of the content for purposes of |
19 | | transmission, conveyance or routing without regard to |
20 | | whether such service is referred to as voice over |
21 | | Internet protocol services or is classified by the |
22 | | Federal Communications Commission as enhanced or value |
23 | | added. "Telecommunications service" does not include: |
24 | | (a) Data processing and information services |
25 | | that allow data to be generated, acquired, stored, |
26 | | processed, or retrieved and delivered by an |
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1 | | electronic transmission to a purchaser when such |
2 | | purchaser's primary purpose for the underlying |
3 | | transaction is the processed data or information; |
4 | | (b) Installation or maintenance of wiring or |
5 | | equipment on a customer's premises; |
6 | | (c) Tangible personal property; |
7 | | (d) Advertising, including but not limited to |
8 | | directory advertising. |
9 | | (e) Billing and collection services provided |
10 | | to third parties; |
11 | | (f) Internet access service; |
12 | | (g) Radio and television audio and video |
13 | | programming services, regardless of the medium, |
14 | | including the furnishing of transmission, |
15 | | conveyance and routing of such services by the |
16 | | programming service provider. Radio and television |
17 | | audio and video programming services shall include |
18 | | but not be limited to cable service as defined in |
19 | | 47 USC 522(6) and audio and video programming |
20 | | services delivered by commercial mobile radio |
21 | | service providers, as defined in 47 CFR 20.3; |
22 | | (h) "Ancillary services"; or |
23 | | (i) Digital products "delivered |
24 | | electronically", including but not limited to |
25 | | software, music, video, reading materials or ring |
26 | | tones. |
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1 | | "Vertical service" means an "ancillary service" |
2 | | that is offered in connection with one or more |
3 | | "telecommunications services", which offers advanced |
4 | | calling features that allow customers to identify |
5 | | callers and to manage multiple calls and call |
6 | | connections, including "conference bridging services". |
7 | | "Voice mail service" means an "ancillary service" |
8 | | that enables the customer to store, send or receive |
9 | | recorded messages. "Voice mail service" does not |
10 | | include any "vertical services" that the customer may |
11 | | be required to have in order to utilize the "voice mail |
12 | | service". |
13 | | (ii) Receipts from the sale of telecommunications |
14 | | service sold on an individual call-by-call basis are in |
15 | | this State if either of the following applies: |
16 | | (a) The call both originates and terminates in |
17 | | this State. |
18 | | (b) The call either originates or terminates |
19 | | in this State and the service address is located in |
20 | | this State. |
21 | | (iii) Receipts from the sale of postpaid |
22 | | telecommunications service at retail are in this State |
23 | | if the origination point of the telecommunication |
24 | | signal, as first identified by the service provider's |
25 | | telecommunication system or as identified by |
26 | | information received by the seller from its service |
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1 | | provider if the system used to transport |
2 | | telecommunication signals is not the seller's, is |
3 | | located in this State. |
4 | | (iv) Receipts from the sale of prepaid |
5 | | telecommunications service or prepaid mobile |
6 | | telecommunications service at retail are in this State |
7 | | if the purchaser obtains the prepaid card or similar |
8 | | means of conveyance at a location in this State. |
9 | | Receipts from recharging a prepaid telecommunications |
10 | | service or mobile telecommunications service is in |
11 | | this State if the purchaser's billing information |
12 | | indicates a location in this State. |
13 | | (v) Receipts from the sale of private |
14 | | communication services are in this State as follows: |
15 | | (a) 100% of receipts from charges imposed at |
16 | | each channel termination point in this State. |
17 | | (b) 100% of receipts from charges for the total |
18 | | channel mileage between each channel termination |
19 | | point in this State. |
20 | | (c) 50% of the total receipts from charges for |
21 | | service segments when those segments are between 2 |
22 | | customer channel termination points, 1 of which is |
23 | | located in this State and the other is located |
24 | | outside of this State, which segments are |
25 | | separately charged. |
26 | | (d) The receipts from charges for service |
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1 | | segments with a channel termination point located |
2 | | in this State and in two or more other states, and |
3 | | which segments are not separately billed, are in |
4 | | this State based on a percentage determined by |
5 | | dividing the number of customer channel |
6 | | termination points in this State by the total |
7 | | number of customer channel termination points. |
8 | | (vi) Receipts from charges for ancillary services |
9 | | for telecommunications service sold to customers at |
10 | | retail are in this State if the customer's primary |
11 | | place of use of telecommunications services associated |
12 | | with those ancillary services is in this State. If the |
13 | | seller of those ancillary services cannot determine |
14 | | where the associated telecommunications are located, |
15 | | then the ancillary services shall be based on the |
16 | | location of the purchaser. |
17 | | (vii) Receipts to access a carrier's network or |
18 | | from the sale of telecommunication services or |
19 | | ancillary services for resale are in this State as |
20 | | follows: |
21 | | (a) 100% of the receipts from access fees |
22 | | attributable to intrastate telecommunications |
23 | | service that both originates and terminates in |
24 | | this State. |
25 | | (b) 50% of the receipts from access fees |
26 | | attributable to interstate telecommunications |
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1 | | service if the interstate call either originates |
2 | | or terminates in this State. |
3 | | (c) 100% of the receipts from interstate end |
4 | | user access line charges, if the customer's |
5 | | service address is in this State. As used in this |
6 | | subdivision, "interstate end user access line |
7 | | charges" includes, but is not limited to, the |
8 | | surcharge approved by the federal communications |
9 | | commission and levied pursuant to 47 CFR 69. |
10 | | (d) Gross receipts from sales of |
11 | | telecommunication services or from ancillary |
12 | | services for telecommunications services sold to |
13 | | other telecommunication service providers for |
14 | | resale shall be sourced to this State using the |
15 | | apportionment concepts used for non-resale |
16 | | receipts of telecommunications services if the |
17 | | information is readily available to make that |
18 | | determination. If the information is not readily |
19 | | available, then the taxpayer may use any other |
20 | | reasonable and consistent method. |
21 | | (B-7) For taxable years ending on or after December 31, |
22 | | 2008, receipts from the sale of broadcasting services are |
23 | | in this State if the broadcasting services are received in |
24 | | this State. For purposes of this paragraph (B-7), the |
25 | | following terms have the following meanings: |
26 | | "Advertising revenue" means consideration received |
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1 | | by the taxpayer in exchange for broadcasting services |
2 | | or allowing the broadcasting of commercials or |
3 | | announcements in connection with the broadcasting of |
4 | | film or radio programming, from sponsorships of the |
5 | | programming, or from product placements in the |
6 | | programming. |
7 | | "Audience factor" means the ratio that the |
8 | | audience or subscribers located in this State of a |
9 | | station, a network, or a cable system bears to the |
10 | | total audience or total subscribers for that station, |
11 | | network, or cable system. The audience factor for film |
12 | | or radio programming shall be determined by reference |
13 | | to the books and records of the taxpayer or by |
14 | | reference to published rating statistics provided the |
15 | | method used by the taxpayer is consistently used from |
16 | | year to year for this purpose and fairly represents the |
17 | | taxpayer's activity in this State. |
18 | | "Broadcast" or "broadcasting" or "broadcasting |
19 | | services" means the transmission or provision of film |
20 | | or radio programming, whether through the public |
21 | | airwaves, by cable, by direct or indirect satellite |
22 | | transmission, or by any other means of communication, |
23 | | either through a station, a network, or a cable system. |
24 | | "Film" or "film programming" means the broadcast |
25 | | on television of any and all performances, events, or |
26 | | productions, including but not limited to news, |
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1 | | sporting events, plays, stories, or other literary, |
2 | | commercial, educational, or artistic works, either |
3 | | live or through the use of video tape, disc, or any |
4 | | other type of format or medium. Each episode of a |
5 | | series of films produced for television shall |
6 | | constitute separate "film" notwithstanding that the |
7 | | series relates to the same principal subject and is |
8 | | produced during one or more tax periods. |
9 | | "Radio" or "radio programming" means the broadcast |
10 | | on radio of any and all performances, events, or |
11 | | productions, including but not limited to news, |
12 | | sporting events, plays, stories, or other literary, |
13 | | commercial, educational, or artistic works, either |
14 | | live or through the use of an audio tape, disc, or any |
15 | | other format or medium. Each episode in a series of |
16 | | radio programming produced for radio broadcast shall |
17 | | constitute a separate "radio programming" |
18 | | notwithstanding that the series relates to the same |
19 | | principal subject and is produced during one or more |
20 | | tax periods. |
21 | | (i) In the case of advertising revenue from |
22 | | broadcasting, the customer is the advertiser and |
23 | | the service is received in this State if the |
24 | | commercial domicile of the advertiser is in this |
25 | | State. |
26 | | (ii) In the case where film or radio |
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1 | | programming is broadcast by a station, a network, |
2 | | or a cable system for a fee or other remuneration |
3 | | received from the recipient of the broadcast, the |
4 | | portion of the service that is received in this |
5 | | State is measured by the portion of the recipients |
6 | | of the broadcast located in this State. |
7 | | Accordingly, the fee or other remuneration for |
8 | | such service that is included in the Illinois |
9 | | numerator of the sales factor is the total of those |
10 | | fees or other remuneration received from |
11 | | recipients in Illinois. For purposes of this |
12 | | paragraph, a taxpayer may determine the location |
13 | | of the recipients of its broadcast using the |
14 | | address of the recipient shown in its contracts |
15 | | with the recipient or using the billing address of |
16 | | the recipient in the taxpayer's records. |
17 | | (iii) In the case where film or radio |
18 | | programming is broadcast by a station, a network, |
19 | | or a cable system for a fee or other remuneration |
20 | | from the person providing the programming, the |
21 | | portion of the broadcast service that is received |
22 | | by such station, network, or cable system in this |
23 | | State is measured by the portion of recipients of |
24 | | the broadcast located in this State. Accordingly, |
25 | | the amount of revenue related to such an |
26 | | arrangement that is included in the Illinois |
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1 | | numerator of the sales factor is the total fee or |
2 | | other total remuneration from the person providing |
3 | | the programming related to that broadcast |
4 | | multiplied by the Illinois audience factor for |
5 | | that broadcast. |
6 | | (iv) In the case where film or radio |
7 | | programming is provided by a taxpayer that is a |
8 | | network or station to a customer for broadcast in |
9 | | exchange for a fee or other remuneration from that |
10 | | customer the broadcasting service is received at |
11 | | the location of the office of the customer from |
12 | | which the services were ordered in the regular |
13 | | course of the customer's trade or business. |
14 | | Accordingly, in such a case the revenue derived by |
15 | | the taxpayer that is included in the taxpayer's |
16 | | Illinois numerator of the sales factor is the |
17 | | revenue from such customers who receive the |
18 | | broadcasting service in Illinois. |
19 | | (v) In the case where film or radio programming |
20 | | is provided by a taxpayer that is not a network or |
21 | | station to another person for broadcasting in |
22 | | exchange for a fee or other remuneration from that |
23 | | person, the broadcasting service is received at |
24 | | the location of the office of the customer from |
25 | | which the services were ordered in the regular |
26 | | course of the customer's trade or business. |
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1 | | Accordingly, in such a case the revenue derived by |
2 | | the taxpayer that is included in the taxpayer's |
3 | | Illinois numerator of the sales factor is the |
4 | | revenue from such customers who receive the |
5 | | broadcasting service in Illinois. |
6 | | (B-8) For taxable years ending on or after December 31, |
7 | | 2013, gross receipts from winnings from pari-mutuel |
8 | | wagering conducted at a wagering facility licensed under |
9 | | the Illinois Horse Racing Act of 1975 or from winnings from |
10 | | gambling games conducted on a riverboat or in a casino or |
11 | | electronic gaming facility licensed under the Illinois |
12 | | Gambling Act are in this State.
|
13 | | (C) For taxable years ending before December 31, 2008, |
14 | | sales, other than sales governed by paragraphs (B), (B-1), |
15 | | and (B-2), are in
this State if:
|
16 | | (i) The income-producing activity is performed in |
17 | | this State; or
|
18 | | (ii) The income-producing activity is performed |
19 | | both within and
without this State and a greater |
20 | | proportion of the income-producing
activity is |
21 | | performed within this State than without this State, |
22 | | based
on performance costs.
|
23 | | (C-5) For taxable years ending on or after December 31, |
24 | | 2008, sales, other than sales governed by paragraphs (B), |
25 | | (B-1), (B-2), (B-5), and (B-7), are in this State if any of |
26 | | the following criteria are met: |
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1 | | (i) Sales from the sale or lease of real property |
2 | | are in this State if the property is located in this |
3 | | State. |
4 | | (ii) Sales from the lease or rental of tangible |
5 | | personal property are in this State if the property is |
6 | | located in this State during the rental period. Sales |
7 | | from the lease or rental of tangible personal property |
8 | | that is characteristically moving property, including, |
9 | | but not limited to, motor vehicles, rolling stock, |
10 | | aircraft, vessels, or mobile equipment are in this |
11 | | State to the extent that the property is used in this |
12 | | State. |
13 | | (iii) In the case of interest, net gains (but not |
14 | | less than zero) and other items of income from |
15 | | intangible personal property, the sale is in this State |
16 | | if: |
17 | | (a) in the case of a taxpayer who is a dealer |
18 | | in the item of intangible personal property within |
19 | | the meaning of Section 475 of the Internal Revenue |
20 | | Code, the income or gain is received from a |
21 | | customer in this State. For purposes of this |
22 | | subparagraph, a customer is in this State if the |
23 | | customer is an individual, trust or estate who is a |
24 | | resident of this State and, for all other |
25 | | customers, if the customer's commercial domicile |
26 | | is in this State. Unless the dealer has actual |
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1 | | knowledge of the residence or commercial domicile |
2 | | of a customer during a taxable year, the customer |
3 | | shall be deemed to be a customer in this State if |
4 | | the billing address of the customer, as shown in |
5 | | the records of the dealer, is in this State; or |
6 | | (b) in all other cases, if the |
7 | | income-producing activity of the taxpayer is |
8 | | performed in this State or, if the |
9 | | income-producing activity of the taxpayer is |
10 | | performed both within and without this State, if a |
11 | | greater proportion of the income-producing |
12 | | activity of the taxpayer is performed within this |
13 | | State than in any other state, based on performance |
14 | | costs. |
15 | | (iv) Sales of services are in this State if the |
16 | | services are received in this State. For the purposes |
17 | | of this section, gross receipts from the performance of |
18 | | services provided to a corporation, partnership, or |
19 | | trust may only be attributed to a state where that |
20 | | corporation, partnership, or trust has a fixed place of |
21 | | business. If the state where the services are received |
22 | | is not readily determinable or is a state where the |
23 | | corporation, partnership, or trust receiving the |
24 | | service does not have a fixed place of business, the |
25 | | services shall be deemed to be received at the location |
26 | | of the office of the customer from which the services |
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1 | | were ordered in the regular course of the customer's |
2 | | trade or business. If the ordering office cannot be |
3 | | determined, the services shall be deemed to be received |
4 | | at the office of the customer to which the services are |
5 | | billed. If the taxpayer is not taxable in the state in |
6 | | which the services are received, the sale must be |
7 | | excluded from both the numerator and the denominator of |
8 | | the sales factor. The Department shall adopt rules |
9 | | prescribing where specific types of service are |
10 | | received, including, but not limited to, publishing, |
11 | | and utility service.
|
12 | | (D) For taxable years ending on or after December 31, |
13 | | 1995, the following
items of income shall not be included |
14 | | in the numerator or denominator of the
sales factor: |
15 | | dividends; amounts included under Section 78 of the |
16 | | Internal
Revenue Code; and Subpart F income as defined in |
17 | | Section 952 of the Internal
Revenue Code.
No inference |
18 | | shall be drawn from the enactment of this paragraph (D) in
|
19 | | construing this Section for taxable years ending before |
20 | | December 31, 1995.
|
21 | | (E) Paragraphs (B-1) and (B-2) shall apply to tax years |
22 | | ending on or
after December 31, 1999, provided that a |
23 | | taxpayer may elect to apply the
provisions of these |
24 | | paragraphs to prior tax years. Such election shall be made
|
25 | | in the form and manner prescribed by the Department, shall |
26 | | be irrevocable, and
shall apply to all tax years; provided |
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1 | | that, if a taxpayer's Illinois income
tax liability for any |
2 | | tax year, as assessed under Section 903 prior to January
1, |
3 | | 1999, was computed in a manner contrary to the provisions |
4 | | of paragraphs
(B-1) or (B-2), no refund shall be payable to |
5 | | the taxpayer for that tax year to
the extent such refund is |
6 | | the result of applying the provisions of paragraph
(B-1) or |
7 | | (B-2) retroactively. In the case of a unitary business |
8 | | group, such
election shall apply to all members of such |
9 | | group for every tax year such group
is in existence, but |
10 | | shall not apply to any taxpayer for any period during
which |
11 | | that taxpayer is not a member of such group.
|
12 | | (b) Insurance companies.
|
13 | | (1) In general. Except as otherwise
provided by |
14 | | paragraph (2), business income of an insurance company for |
15 | | a
taxable year shall be apportioned to this State by |
16 | | multiplying such
income by a fraction, the numerator of |
17 | | which is the direct premiums
written for insurance upon |
18 | | property or risk in this State, and the
denominator of |
19 | | which is the direct premiums written for insurance upon
|
20 | | property or risk everywhere. For purposes of this |
21 | | subsection, the term
"direct premiums written" means the |
22 | | total amount of direct premiums
written, assessments and |
23 | | annuity considerations as reported for the
taxable year on |
24 | | the annual statement filed by the company with the
Illinois |
25 | | Director of Insurance in the form approved by the National
|
26 | | Convention of Insurance Commissioners
or such other form as |
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1 | | may be
prescribed in lieu thereof.
|
2 | | (2) Reinsurance. If the principal source of premiums |
3 | | written by an
insurance company consists of premiums for |
4 | | reinsurance accepted by it,
the business income of such |
5 | | company shall be apportioned to this State
by multiplying |
6 | | such income by a fraction, the numerator of which is the
|
7 | | sum of (i) direct premiums written for insurance upon |
8 | | property or risk
in this State, plus (ii) premiums written |
9 | | for reinsurance accepted in
respect of property or risk in |
10 | | this State, and the denominator of which
is the sum of |
11 | | (iii) direct premiums written for insurance upon property
|
12 | | or risk everywhere, plus (iv) premiums written for |
13 | | reinsurance accepted
in respect of property or risk |
14 | | everywhere. For purposes of this
paragraph, premiums |
15 | | written for reinsurance accepted in respect of
property or |
16 | | risk in this State, whether or not otherwise determinable,
|
17 | | may, at the election of the company, be determined on the |
18 | | basis of the
proportion which premiums written for |
19 | | reinsurance accepted from
companies commercially domiciled |
20 | | in Illinois bears to premiums written
for reinsurance |
21 | | accepted from all sources, or, alternatively, in the
|
22 | | proportion which the sum of the direct premiums written for |
23 | | insurance
upon property or risk in this State by each |
24 | | ceding company from which
reinsurance is accepted bears to |
25 | | the sum of the total direct premiums
written by each such |
26 | | ceding company for the taxable year. The election made by a |
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1 | | company under this paragraph for its first taxable year |
2 | | ending on or after December 31, 2011, shall be binding for |
3 | | that company for that taxable year and for all subsequent |
4 | | taxable years, and may be altered only with the written |
5 | | permission of the Department, which shall not be |
6 | | unreasonably withheld.
|
7 | | (c) Financial organizations.
|
8 | | (1) In general. For taxable years ending before |
9 | | December 31, 2008, business income of a financial
|
10 | | organization shall be apportioned to this State by |
11 | | multiplying such
income by a fraction, the numerator of |
12 | | which is its business income from
sources within this |
13 | | State, and the denominator of which is its business
income |
14 | | from all sources. For the purposes of this subsection, the
|
15 | | business income of a financial organization from sources |
16 | | within this
State is the sum of the amounts referred to in |
17 | | subparagraphs (A) through
(E) following, but excluding the |
18 | | adjusted income of an international banking
facility as |
19 | | determined in paragraph (2):
|
20 | | (A) Fees, commissions or other compensation for |
21 | | financial services
rendered within this State;
|
22 | | (B) Gross profits from trading in stocks, bonds or |
23 | | other securities
managed within this State;
|
24 | | (C) Dividends, and interest from Illinois |
25 | | customers, which are received
within this State;
|
26 | | (D) Interest charged to customers at places of |
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1 | | business maintained
within this State for carrying |
2 | | debit balances of margin accounts,
without deduction |
3 | | of any costs incurred in carrying such accounts; and
|
4 | | (E) Any other gross income resulting from the |
5 | | operation as a
financial organization within this |
6 | | State. In computing the amounts
referred to in |
7 | | paragraphs (A) through (E) of this subsection, any |
8 | | amount
received by a member of an affiliated group |
9 | | (determined under Section
1504(a) of the Internal |
10 | | Revenue Code but without reference to whether
any such |
11 | | corporation is an "includible corporation" under |
12 | | Section
1504(b) of the Internal Revenue Code) from |
13 | | another member of such group
shall be included only to |
14 | | the extent such amount exceeds expenses of the
|
15 | | recipient directly related thereto.
|
16 | | (2) International Banking Facility. For taxable years |
17 | | ending before December 31, 2008:
|
18 | | (A) Adjusted Income. The adjusted income of an |
19 | | international banking
facility is its income reduced |
20 | | by the amount of the floor amount.
|
21 | | (B) Floor Amount. The floor amount shall be the |
22 | | amount, if any,
determined
by multiplying the income of |
23 | | the international banking facility by a fraction,
not |
24 | | greater than one, which is determined as follows:
|
25 | | (i) The numerator shall be:
|
26 | | The average aggregate, determined on a |
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1 | | quarterly basis, of the
financial
organization's |
2 | | loans to banks in foreign countries, to foreign |
3 | | domiciled
borrowers (except where secured |
4 | | primarily by real estate) and to foreign
|
5 | | governments and other foreign official |
6 | | institutions, as reported for its
branches, |
7 | | agencies and offices within the state on its |
8 | | "Consolidated Report
of Condition", Schedule A, |
9 | | Lines 2.c., 5.b., and 7.a., which was filed with
|
10 | | the Federal Deposit Insurance Corporation and |
11 | | other regulatory authorities,
for the year 1980, |
12 | | minus
|
13 | | The average aggregate, determined on a |
14 | | quarterly basis, of such loans
(other
than loans of |
15 | | an international banking facility), as reported by |
16 | | the financial
institution for its branches, |
17 | | agencies and offices within the state, on
the |
18 | | corresponding Schedule and lines of the |
19 | | Consolidated Report of Condition
for the current |
20 | | taxable year, provided, however, that in no case |
21 | | shall the
amount determined in this clause (the |
22 | | subtrahend) exceed the amount determined
in the |
23 | | preceding clause (the minuend); and
|
24 | | (ii) the denominator shall be the average |
25 | | aggregate, determined on a
quarterly basis, of the |
26 | | international banking facility's loans to banks in
|
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1 | | foreign countries, to foreign domiciled borrowers |
2 | | (except where secured
primarily by real estate) |
3 | | and to foreign governments and other foreign
|
4 | | official institutions, which were recorded in its |
5 | | financial accounts for
the current taxable year.
|
6 | | (C) Change to Consolidated Report of Condition and |
7 | | in Qualification.
In the event the Consolidated Report |
8 | | of Condition which is filed with the
Federal Deposit |
9 | | Insurance Corporation and other regulatory authorities |
10 | | is
altered so that the information required for |
11 | | determining the floor amount
is not found on Schedule |
12 | | A, lines 2.c., 5.b. and 7.a., the financial
institution |
13 | | shall notify the Department and the Department may, by
|
14 | | regulations or otherwise, prescribe or authorize the |
15 | | use of an alternative
source for such information. The |
16 | | financial institution shall also notify
the Department |
17 | | should its international banking facility fail to |
18 | | qualify as
such, in whole or in part, or should there |
19 | | be any amendment or change to
the Consolidated Report |
20 | | of Condition, as originally filed, to the extent
such |
21 | | amendment or change alters the information used in |
22 | | determining the floor
amount.
|
23 | | (3) For taxable years ending on or after December 31, |
24 | | 2008, the business income of a financial organization shall |
25 | | be apportioned to this State by multiplying such income by |
26 | | a fraction, the numerator of which is its gross receipts |
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1 | | from sources in this State or otherwise attributable to |
2 | | this State's marketplace and the denominator of which is |
3 | | its gross receipts everywhere during the taxable year. |
4 | | "Gross receipts" for purposes of this subparagraph (3) |
5 | | means gross income, including net taxable gain on |
6 | | disposition of assets, including securities and money |
7 | | market instruments, when derived from transactions and |
8 | | activities in the regular course of the financial |
9 | | organization's trade or business. The following examples |
10 | | are illustrative:
|
11 | | (i) Receipts from the lease or rental of real or |
12 | | tangible personal property are in this State if the |
13 | | property is located in this State during the rental |
14 | | period. Receipts from the lease or rental of tangible |
15 | | personal property that is characteristically moving |
16 | | property, including, but not limited to, motor |
17 | | vehicles, rolling stock, aircraft, vessels, or mobile |
18 | | equipment are from sources in this State to the extent |
19 | | that the property is used in this State. |
20 | | (ii) Interest income, commissions, fees, gains on |
21 | | disposition, and other receipts from assets in the |
22 | | nature of loans that are secured primarily by real |
23 | | estate or tangible personal property are from sources |
24 | | in this State if the security is located in this State. |
25 | | (iii) Interest income, commissions, fees, gains on |
26 | | disposition, and other receipts from consumer loans |
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1 | | that are not secured by real or tangible personal |
2 | | property are from sources in this State if the debtor |
3 | | is a resident of this State. |
4 | | (iv) Interest income, commissions, fees, gains on |
5 | | disposition, and other receipts from commercial loans |
6 | | and installment obligations that are not secured by |
7 | | real or tangible personal property are from sources in |
8 | | this State if the proceeds of the loan are to be |
9 | | applied in this State. If it cannot be determined where |
10 | | the funds are to be applied, the income and receipts |
11 | | are from sources in this State if the office of the |
12 | | borrower from which the loan was negotiated in the |
13 | | regular course of business is located in this State. If |
14 | | the location of this office cannot be determined, the |
15 | | income and receipts shall be excluded from the |
16 | | numerator and denominator of the sales factor.
|
17 | | (v) Interest income, fees, gains on disposition, |
18 | | service charges, merchant discount income, and other |
19 | | receipts from credit card receivables are from sources |
20 | | in this State if the card charges are regularly billed |
21 | | to a customer in this State. |
22 | | (vi) Receipts from the performance of services, |
23 | | including, but not limited to, fiduciary, advisory, |
24 | | and brokerage services, are in this State if the |
25 | | services are received in this State within the meaning |
26 | | of subparagraph (a)(3)(C-5)(iv) of this Section. |
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1 | | (vii) Receipts from the issuance of travelers |
2 | | checks and money orders are from sources in this State |
3 | | if the checks and money orders are issued from a |
4 | | location within this State. |
5 | | (viii) Receipts from investment assets and |
6 | | activities and trading assets and activities are |
7 | | included in the receipts factor as follows: |
8 | | (1) Interest, dividends, net gains (but not |
9 | | less than zero) and other income from investment |
10 | | assets and activities from trading assets and |
11 | | activities shall be included in the receipts |
12 | | factor. Investment assets and activities and |
13 | | trading assets and activities include but are not |
14 | | limited to: investment securities; trading account |
15 | | assets; federal funds; securities purchased and |
16 | | sold under agreements to resell or repurchase; |
17 | | options; futures contracts; forward contracts; |
18 | | notional principal contracts such as swaps; |
19 | | equities; and foreign currency transactions. With |
20 | | respect to the investment and trading assets and |
21 | | activities described in subparagraphs (A) and (B) |
22 | | of this paragraph, the receipts factor shall |
23 | | include the amounts described in such |
24 | | subparagraphs. |
25 | | (A) The receipts factor shall include the |
26 | | amount by which interest from federal funds |
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1 | | sold and securities purchased under resale |
2 | | agreements exceeds interest expense on federal |
3 | | funds purchased and securities sold under |
4 | | repurchase agreements. |
5 | | (B) The receipts factor shall include the |
6 | | amount by which interest, dividends, gains and |
7 | | other income from trading assets and |
8 | | activities, including but not limited to |
9 | | assets and activities in the matched book, in |
10 | | the arbitrage book, and foreign currency |
11 | | transactions, exceed amounts paid in lieu of |
12 | | interest, amounts paid in lieu of dividends, |
13 | | and losses from such assets and activities. |
14 | | (2) The numerator of the receipts factor |
15 | | includes interest, dividends, net gains (but not |
16 | | less than zero), and other income from investment |
17 | | assets and activities and from trading assets and |
18 | | activities described in paragraph (1) of this |
19 | | subsection that are attributable to this State. |
20 | | (A) The amount of interest, dividends, net |
21 | | gains (but not less than zero), and other |
22 | | income from investment assets and activities |
23 | | in the investment account to be attributed to |
24 | | this State and included in the numerator is |
25 | | determined by multiplying all such income from |
26 | | such assets and activities by a fraction, the |
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1 | | numerator of which is the gross income from |
2 | | such assets and activities which are properly |
3 | | assigned to a fixed place of business of the |
4 | | taxpayer within this State and the denominator |
5 | | of which is the gross income from all such |
6 | | assets and activities. |
7 | | (B) The amount of interest from federal |
8 | | funds sold and purchased and from securities |
9 | | purchased under resale agreements and |
10 | | securities sold under repurchase agreements |
11 | | attributable to this State and included in the |
12 | | numerator is determined by multiplying the |
13 | | amount described in subparagraph (A) of |
14 | | paragraph (1) of this subsection from such |
15 | | funds and such securities by a fraction, the |
16 | | numerator of which is the gross income from |
17 | | such funds and such securities which are |
18 | | properly assigned to a fixed place of business |
19 | | of the taxpayer within this State and the |
20 | | denominator of which is the gross income from |
21 | | all such funds and such securities. |
22 | | (C) The amount of interest, dividends, |
23 | | gains, and other income from trading assets and |
24 | | activities, including but not limited to |
25 | | assets and activities in the matched book, in |
26 | | the arbitrage book and foreign currency |
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1 | | transactions (but excluding amounts described |
2 | | in subparagraphs (A) or (B) of this paragraph), |
3 | | attributable to this State and included in the |
4 | | numerator is determined by multiplying the |
5 | | amount described in subparagraph (B) of |
6 | | paragraph (1) of this subsection by a fraction, |
7 | | the numerator of which is the gross income from |
8 | | such trading assets and activities which are |
9 | | properly assigned to a fixed place of business |
10 | | of the taxpayer within this State and the |
11 | | denominator of which is the gross income from |
12 | | all such assets and activities. |
13 | | (D) Properly assigned, for purposes of |
14 | | this paragraph (2) of this subsection, means |
15 | | the investment or trading asset or activity is |
16 | | assigned to the fixed place of business with |
17 | | which it has a preponderance of substantive |
18 | | contacts. An investment or trading asset or |
19 | | activity assigned by the taxpayer to a fixed |
20 | | place of business without the State shall be |
21 | | presumed to have been properly assigned if: |
22 | | (i) the taxpayer has assigned, in the |
23 | | regular course of its business, such asset |
24 | | or activity on its records to a fixed place |
25 | | of business consistent with federal or |
26 | | state regulatory requirements; |
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1 | | (ii) such assignment on its records is |
2 | | based upon substantive contacts of the |
3 | | asset or activity to such fixed place of |
4 | | business; and |
5 | | (iii) the taxpayer uses such records |
6 | | reflecting assignment of such assets or |
7 | | activities for the filing of all state and |
8 | | local tax returns for which an assignment |
9 | | of such assets or activities to a fixed |
10 | | place of business is required. |
11 | | (E) The presumption of proper assignment |
12 | | of an investment or trading asset or activity |
13 | | provided in subparagraph (D) of paragraph (2) |
14 | | of this subsection may be rebutted upon a |
15 | | showing by the Department, supported by a |
16 | | preponderance of the evidence, that the |
17 | | preponderance of substantive contacts |
18 | | regarding such asset or activity did not occur |
19 | | at the fixed place of business to which it was |
20 | | assigned on the taxpayer's records. If the |
21 | | fixed place of business that has a |
22 | | preponderance of substantive contacts cannot |
23 | | be determined for an investment or trading |
24 | | asset or activity to which the presumption in |
25 | | subparagraph (D) of paragraph (2) of this |
26 | | subsection does not apply or with respect to |
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1 | | which that presumption has been rebutted, that |
2 | | asset or activity is properly assigned to the |
3 | | state in which the taxpayer's commercial |
4 | | domicile is located. For purposes of this |
5 | | subparagraph (E), it shall be presumed, |
6 | | subject to rebuttal, that taxpayer's |
7 | | commercial domicile is in the state of the |
8 | | United States or the District of Columbia to |
9 | | which the greatest number of employees are |
10 | | regularly connected with the management of the |
11 | | investment or trading income or out of which |
12 | | they are working, irrespective of where the |
13 | | services of such employees are performed, as of |
14 | | the last day of the taxable year.
|
15 | | (4) (Blank). |
16 | | (5) (Blank). |
17 | | (c-1) Federally regulated exchanges. For taxable years |
18 | | ending on or after December 31, 2012, business income of a |
19 | | federally regulated exchange shall, at the option of the |
20 | | federally regulated exchange, be apportioned to this State by |
21 | | multiplying such income by a fraction, the numerator of which |
22 | | is its business income from sources within this State, and the |
23 | | denominator of which is its business income from all sources. |
24 | | For purposes of this subsection, the business income within |
25 | | this State of a federally regulated exchange is the sum of the |
26 | | following: |
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1 | | (1) Receipts attributable to transactions executed on |
2 | | a physical trading floor if that physical trading floor is |
3 | | located in this State. |
4 | | (2) Receipts attributable to all other matching, |
5 | | execution, or clearing transactions, including without |
6 | | limitation receipts from the provision of matching, |
7 | | execution, or clearing services to another entity, |
8 | | multiplied by (i) for taxable years ending on or after |
9 | | December 31, 2012 but before December 31, 2013, 63.77%; and |
10 | | (ii) for taxable years ending on or after December 31, |
11 | | 2013, 27.54%. |
12 | | (3) All other receipts not governed by subparagraphs |
13 | | (1) or (2) of this subsection (c-1), to the extent the |
14 | | receipts would be characterized as "sales in this State" |
15 | | under item (3) of subsection (a) of this Section. |
16 | | "Federally regulated exchange" means (i) a "registered |
17 | | entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B), |
18 | | or (C), (ii) an "exchange" or "clearing agency" within the |
19 | | meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such |
20 | | entities regulated under any successor regulatory structure to |
21 | | the foregoing, and (iv) all taxpayers who are members of the |
22 | | same unitary business group as a federally regulated exchange, |
23 | | determined without regard to the prohibition in Section |
24 | | 1501(a)(27) of this Act against including in a unitary business |
25 | | group taxpayers who are ordinarily required to apportion |
26 | | business income under different subsections of this Section; |
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1 | | provided that this subparagraph (iv) shall apply only if 50% or |
2 | | more of the business receipts of the unitary business group |
3 | | determined by application of this subparagraph (iv) for the |
4 | | taxable year are attributable to the matching, execution, or |
5 | | clearing of transactions conducted by an entity described in |
6 | | subparagraph (i), (ii), or (iii) of this paragraph. |
7 | | In no event shall the Illinois apportionment percentage |
8 | | computed in accordance with this subsection (c-1) for any |
9 | | taxpayer for any tax year be less than the Illinois |
10 | | apportionment percentage computed under this subsection (c-1) |
11 | | for that taxpayer for the first full tax year ending on or |
12 | | after December 31, 2013 for which this subsection (c-1) applied |
13 | | to the taxpayer. |
14 | | (d) Transportation services. For taxable years ending |
15 | | before December 31, 2008, business income derived from |
16 | | furnishing
transportation services shall be apportioned to |
17 | | this State in accordance
with paragraphs (1) and (2):
|
18 | | (1) Such business income (other than that derived from
|
19 | | transportation by pipeline) shall be apportioned to this |
20 | | State by
multiplying such income by a fraction, the |
21 | | numerator of which is the
revenue miles of the person in |
22 | | this State, and the denominator of which
is the revenue |
23 | | miles of the person everywhere. For purposes of this
|
24 | | paragraph, a revenue mile is the transportation of 1 |
25 | | passenger or 1 net
ton of freight the distance of 1 mile |
26 | | for a consideration. Where a
person is engaged in the |
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1 | | transportation of both passengers and freight,
the |
2 | | fraction above referred to shall be determined by means of |
3 | | an
average of the passenger revenue mile fraction and the |
4 | | freight revenue
mile fraction, weighted to reflect the |
5 | | person's
|
6 | | (A) relative railway operating income from total |
7 | | passenger and total
freight service, as reported to the |
8 | | Interstate Commerce Commission, in
the case of |
9 | | transportation by railroad, and
|
10 | | (B) relative gross receipts from passenger and |
11 | | freight
transportation, in case of transportation |
12 | | other than by railroad.
|
13 | | (2) Such business income derived from transportation |
14 | | by pipeline
shall be apportioned to this State by |
15 | | multiplying such income by a
fraction, the numerator of |
16 | | which is the revenue miles of the person in
this State, and |
17 | | the denominator of which is the revenue miles of the
person |
18 | | everywhere. For the purposes of this paragraph, a revenue |
19 | | mile is
the transportation by pipeline of 1 barrel of oil, |
20 | | 1,000 cubic feet of
gas, or of any specified quantity of |
21 | | any other substance, the distance
of 1 mile for a |
22 | | consideration.
|
23 | | (3) For taxable years ending on or after December 31, |
24 | | 2008, business income derived from providing |
25 | | transportation services other than airline services shall |
26 | | be apportioned to this State by using a fraction, (a) the |
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1 | | numerator of which shall be (i) all receipts from any |
2 | | movement or shipment of people, goods, mail, oil, gas, or |
3 | | any other substance (other than by airline) that both |
4 | | originates and terminates in this State, plus (ii) that |
5 | | portion of the person's gross receipts from movements or |
6 | | shipments of people, goods, mail, oil, gas, or any other |
7 | | substance (other than by airline) that originates in one |
8 | | state or jurisdiction and terminates in another state or |
9 | | jurisdiction, that is determined by the ratio that the |
10 | | miles traveled in this State bears to total miles |
11 | | everywhere and (b) the denominator of which shall be all |
12 | | revenue derived from the movement or shipment of people, |
13 | | goods, mail, oil, gas, or any other substance (other than |
14 | | by airline). Where a taxpayer is engaged in the |
15 | | transportation of both passengers and freight, the |
16 | | fraction above referred to shall first be determined |
17 | | separately for passenger miles and freight miles. Then an |
18 | | average of the passenger miles fraction and the freight |
19 | | miles fraction shall be weighted to reflect the taxpayer's: |
20 | | (A) relative railway operating income from total |
21 | | passenger and total freight service, as reported to the |
22 | | Surface Transportation Board, in the case of |
23 | | transportation by railroad; and
|
24 | | (B) relative gross receipts from passenger and |
25 | | freight transportation, in case of transportation |
26 | | other than by railroad.
|
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1 | | (4) For taxable years ending on or after December 31, |
2 | | 2008, business income derived from furnishing airline
|
3 | | transportation services shall be apportioned to this State |
4 | | by
multiplying such income by a fraction, the numerator of |
5 | | which is the
revenue miles of the person in this State, and |
6 | | the denominator of which
is the revenue miles of the person |
7 | | everywhere. For purposes of this
paragraph, a revenue mile |
8 | | is the transportation of one passenger or one net
ton of |
9 | | freight the distance of one mile for a consideration. If a
|
10 | | person is engaged in the transportation of both passengers |
11 | | and freight,
the fraction above referred to shall be |
12 | | determined by means of an
average of the passenger revenue |
13 | | mile fraction and the freight revenue
mile fraction, |
14 | | weighted to reflect the person's relative gross receipts |
15 | | from passenger and freight
airline transportation.
|
16 | | (e) Combined apportionment. Where 2 or more persons are |
17 | | engaged in
a unitary business as described in subsection |
18 | | (a)(27) of
Section 1501,
a part of which is conducted in this |
19 | | State by one or more members of the
group, the business income |
20 | | attributable to this State by any such member
or members shall |
21 | | be apportioned by means of the combined apportionment method.
|
22 | | (f) Alternative allocation. If the allocation and |
23 | | apportionment
provisions of subsections (a) through (e) and of |
24 | | subsection (h) do not
fairly represent the
extent of a person's |
25 | | business activity in this State, the person may
petition for, |
26 | | or the Director may, without a petition, permit or require, in |
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1 | | respect of all or any part
of the person's business activity, |
2 | | if reasonable:
|
3 | | (1) Separate accounting;
|
4 | | (2) The exclusion of any one or more factors;
|
5 | | (3) The inclusion of one or more additional factors |
6 | | which will
fairly represent the person's business |
7 | | activities in this State; or
|
8 | | (4) The employment of any other method to effectuate an |
9 | | equitable
allocation and apportionment of the person's |
10 | | business income.
|
11 | | (g) Cross reference. For allocation of business income by |
12 | | residents,
see Section 301(a).
|
13 | | (h) For tax years ending on or after December 31, 1998, the |
14 | | apportionment
factor of persons who apportion their business |
15 | | income to this State under
subsection (a) shall be equal to:
|
16 | | (1) for tax years ending on or after December 31, 1998 |
17 | | and before December
31, 1999, 16 2/3% of the property |
18 | | factor plus 16 2/3% of the payroll factor
plus
66 2/3% of |
19 | | the sales factor;
|
20 | | (2) for tax years ending on or after December 31, 1999 |
21 | | and before December
31,
2000, 8 1/3% of the property factor |
22 | | plus 8 1/3% of the payroll factor plus 83
1/3%
of the sales |
23 | | factor;
|
24 | | (3) for tax years ending on or after December 31, 2000, |
25 | | the sales factor.
|
26 | | If, in any tax year ending on or after December 31, 1998 and |
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1 | | before December
31, 2000, the denominator of the payroll, |
2 | | property, or sales factor is zero,
the apportionment
factor |
3 | | computed in paragraph (1) or (2) of this subsection for that |
4 | | year shall
be divided by an amount equal to 100% minus the |
5 | | percentage weight given to each
factor whose denominator is |
6 | | equal to zero.
|
7 | | (Source: P.A. 96-763, eff. 8-25-09; 97-507, eff. 8-23-11; |
8 | | 97-636, eff. 6-1-12 .)
|
9 | | (35 ILCS 5/710) (from Ch. 120, par. 7-710)
|
10 | | Sec. 710. Withholding from lottery winnings. |
11 | | (a) In General. |
12 | | (1) Any person
making a payment to a resident or |
13 | | nonresident of winnings under the Illinois
Lottery Law and |
14 | | not required to withhold Illinois income tax from such |
15 | | payment
under Subsection (b) of Section 701 of this Act |
16 | | because those winnings are
not subject to Federal income |
17 | | tax withholding, must withhold Illinois income
tax from |
18 | | such payment at a rate equal to the percentage tax rate for |
19 | | individuals
provided in subsection (b) of Section 201, |
20 | | provided that withholding is
not required if such payment |
21 | | of winnings is less than $1,000.
|
22 | | (2) Any person making a payment after December 31, 2013 |
23 | | to a resident or nonresident of
winnings from pari-mutuel |
24 | | wagering conducted at a wagering facility licensed under |
25 | | the Illinois Horse
Racing Act of 1975 or from gambling |
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1 | | games conducted on a riverboat or in a casino or electronic |
2 | | gaming
facility licensed under the Illinois Gambling Act |
3 | | must withhold Illinois income tax from such payment at a
|
4 | | rate equal to the percentage tax rate for individuals |
5 | | provided in subsection (b) of Section 201, provided that
|
6 | | the person making the payment is required to withhold under |
7 | | Section 3402(q) of the Internal Revenue Code. |
8 | | (b) Credit for taxes withheld. Any amount withheld under |
9 | | Subsection (a)
shall be a credit against the Illinois income |
10 | | tax liability of the person
to whom the payment of winnings was |
11 | | made for the taxable year in which that
person incurred an |
12 | | Illinois income tax liability with respect to those winnings.
|
13 | | (Source: P.A. 85-731.)
|
14 | | Section 90-23. The Property Tax Code is amended by adding |
15 | | Section 15-144 as follows:
|
16 | | (35 ILCS 200/15-144 new) |
17 | | Sec. 15-144. Chicago Casino Development Authority. All |
18 | | property owned by the Chicago Casino Development Authority is |
19 | | exempt. Any property owned by the Chicago Casino Development |
20 | | Authority and leased to any other entity is not exempt.
|
21 | | Section 90-24. The Illinois Municipal Code is amended by |
22 | | adding Section 8-10-2.6 as follows:
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1 | | (65 ILCS 5/8-10-2.6 new) |
2 | | Sec. 8-10-2.6. Chicago Casino Development Authority. |
3 | | Except as otherwise provided in the Chicago Casino Development |
4 | | Authority Act, this Division 10 applies to purchase orders and |
5 | | contracts relating to the Chicago Casino Development |
6 | | Authority.
|
7 | | Section 90-25. The Joliet Regional Port District Act is |
8 | | amended by changing Section 5.1 as follows:
|
9 | | (70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)
|
10 | | Sec. 5.1. Riverboat and casino gambling. Notwithstanding |
11 | | any other provision of
this Act, the District may not regulate |
12 | | the operation, conduct, or
navigation of any riverboat gambling |
13 | | casino licensed under the Illinois Riverboat
Gambling Act, and |
14 | | the District
may not license, tax, or otherwise levy any |
15 | | assessment of any kind on
any riverboat gambling casino |
16 | | licensed under the Illinois Riverboat Gambling Act. The
General |
17 | | Assembly declares that the powers to regulate the operation,
|
18 | | conduct, and navigation of riverboat gambling casinos and to |
19 | | license, tax,
and levy assessments upon riverboat gambling |
20 | | casinos are exclusive powers of
the State of Illinois and the |
21 | | Illinois Gaming Board as provided in the
Illinois Riverboat |
22 | | Gambling Act.
|
23 | | (Source: P.A. 87-1175.)
|
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1 | | Section 90-30. The Consumer Installment Loan Act is amended |
2 | | by changing Section 12.5 as follows:
|
3 | | (205 ILCS 670/12.5)
|
4 | | Sec. 12.5. Limited purpose branch.
|
5 | | (a) Upon the written approval of the Director, a licensee |
6 | | may maintain a
limited purpose branch for the sole purpose of |
7 | | making loans as permitted by
this Act. A limited purpose branch |
8 | | may include an automatic loan machine. No
other activity shall |
9 | | be conducted at the site, including but not limited to,
|
10 | | accepting payments, servicing the accounts, or collections.
|
11 | | (b) The licensee must submit an application for a limited |
12 | | purpose branch to
the Director on forms prescribed by the |
13 | | Director with an application fee of
$300. The approval for the |
14 | | limited purpose branch must be renewed concurrently
with the |
15 | | renewal of the licensee's license along with a renewal fee of |
16 | | $300 for
the limited purpose branch.
|
17 | | (c) The books, accounts, records, and files of the limited |
18 | | purpose branch's
transactions shall be maintained at the |
19 | | licensee's licensed location. The
licensee shall notify the |
20 | | Director of the licensed location at which the books,
accounts, |
21 | | records, and files shall be maintained.
|
22 | | (d) The licensee shall prominently display at the limited |
23 | | purpose branch the
address and telephone number of the |
24 | | licensee's licensed location.
|
25 | | (e) No other business shall be conducted at the site of the |
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1 | | limited purpose
branch unless authorized by the Director.
|
2 | | (f) The Director shall make and enforce reasonable rules |
3 | | for the conduct of
a limited purpose branch.
|
4 | | (g) A limited purpose branch may not be located
within |
5 | | 1,000 feet of a facility operated by an inter-track wagering |
6 | | licensee or
an organization licensee subject to the Illinois |
7 | | Horse Racing Act of 1975,
on a riverboat or in a casino subject |
8 | | to
the Illinois Riverboat Gambling Act, or within 1,000 feet of |
9 | | the location at which the
riverboat docks or within 1,000 feet |
10 | | of a casino .
|
11 | | (Source: P.A. 90-437, eff. 1-1-98.)
|
12 | | Section 90-35. The Illinois Horse Racing Act of 1975 is |
13 | | amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19, |
14 | | 20, 21, 24, 25, 26, 27, 30, 30.5, 31, 31.1, 32.1, 36, 40, and |
15 | | 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36, |
16 | | 3.37, 34.3, 39.2, and 56 as follows:
|
17 | | (230 ILCS 5/1.2)
|
18 | | Sec. 1.2. Legislative intent. This Act is intended to |
19 | | benefit the people of the State of Illinois by
encouraging the |
20 | | breeding and production of race horses, assisting economic
|
21 | | development and promoting Illinois tourism.
The General |
22 | | Assembly finds and declares it to be the public policy
of the |
23 | | State
of Illinois to:
|
24 | | (a) support and enhance Illinois' horse racing industry, |
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1 | | which is a
significant
component within the agribusiness |
2 | | industry;
|
3 | | (b) ensure that Illinois' horse racing industry remains |
4 | | competitive with
neighboring states;
|
5 | | (c) stimulate growth within Illinois' horse racing |
6 | | industry, thereby
encouraging
new investment and development |
7 | | to produce additional tax revenues and to
create additional |
8 | | jobs;
|
9 | | (d) promote the further growth of tourism;
|
10 | | (e) encourage the breeding of thoroughbred and |
11 | | standardbred horses in this
State; and
|
12 | | (f) ensure that public confidence and trust in the |
13 | | credibility and integrity
of
racing operations and the |
14 | | regulatory process is maintained.
|
15 | | (Source: P.A. 91-40, eff. 6-25-99.)
|
16 | | (230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)
|
17 | | Sec. 3.11.
"Organization Licensee" means any person |
18 | | receiving
an organization license from the Board to conduct a |
19 | | race meeting or meetings. With respect only to electronic |
20 | | gaming, "organization licensee" includes the authorization for |
21 | | an electronic gaming license under subsection (a) of Section 56 |
22 | | of this Act.
|
23 | | (Source: P.A. 79-1185.)
|
24 | | (230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)
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1 | | Sec. 3.12. Pari-mutuel system of
wagering.
"Pari-mutuel |
2 | | system of
wagering" means a form of wagering on the outcome of
|
3 | | horse races in which
wagers are made in various
denominations |
4 | | on a horse or horses
and
all wagers for each race are pooled |
5 | | and held by a licensee
for distribution in a manner approved by |
6 | | the Board. "Pari-mutuel system of wagering" shall not include |
7 | | wagering on historic races. Wagers may be placed via any method |
8 | | or at any location authorized under this Act.
|
9 | | (Source: P.A. 96-762, eff. 8-25-09.)
|
10 | | (230 ILCS 5/3.31 new) |
11 | | Sec. 3.31. Adjusted gross receipts. "Adjusted gross |
12 | | receipts" means the gross receipts less winnings paid to |
13 | | wagerers.
|
14 | | (230 ILCS 5/3.32 new) |
15 | | Sec. 3.32. Gross receipts. "Gross receipts" means the total |
16 | | amount of money exchanged for the purchase of chips, tokens, or |
17 | | electronic cards by riverboat or casino patrons or electronic |
18 | | gaming patrons.
|
19 | | (230 ILCS 5/3.33 new) |
20 | | Sec. 3.33. Electronic gaming. "Electronic gaming" means |
21 | | slot machine gambling, video game of chance gambling, or |
22 | | gambling with electronic gambling games as defined in the |
23 | | Illinois Gambling Act or defined by the Illinois Gaming Board |
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1 | | that is conducted at a race track pursuant to an electronic |
2 | | gaming license.
|
3 | | (230 ILCS 5/3.35 new) |
4 | | Sec. 3.35. Electronic gaming license. "Electronic gaming |
5 | | license" means a license issued by the Illinois Gaming Board |
6 | | under Section 7.6 of the Illinois Gambling Act authorizing |
7 | | electronic gaming at an electronic gaming facility.
|
8 | | (230 ILCS 5/3.36 new) |
9 | | Sec. 3.36. Electronic gaming facility. "Electronic gaming |
10 | | facility" means that portion of an organization licensee's race |
11 | | track facility at which electronic gaming is conducted.
|
12 | | (230 ILCS 5/3.37 new) |
13 | | Sec. 3.37. Purse. "Purse" means the amount of money won by |
14 | | the owner of any competitor in a race. For purposes of |
15 | | calculating owners' awards and breeders' awards pursuant to |
16 | | Sections 30, 30.5, and 31 of this Act, "purse" shall only |
17 | | include the amount paid from the purse account of the |
18 | | organization licensee, and does not include (i) any fees paid |
19 | | by the owners of the horses nominated to, entered in, or |
20 | | starting in a horse race meeting and any money added by the |
21 | | organization licensee, and (ii) any purse supplements, stakes |
22 | | and awards, and awards expended from the Illinois Thoroughbred |
23 | | Breeders Fund, the Illinois Quarter Horse Breeders Fund, and |
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1 | | the Illinois Standardbred Breeders Fund.
|
2 | | (230 ILCS 5/6) (from Ch. 8, par. 37-6)
|
3 | | Sec. 6. Restrictions on Board members. |
4 | | (a) No person shall be appointed a member of the Board or |
5 | | continue to be a member of the Board if the person or any |
6 | | member of their immediate family is a member of the Board of |
7 | | Directors, employee, or financially interested in any of the |
8 | | following: (i) any licensee or other person who has applied for |
9 | | racing dates to the Board, or the operations thereof including, |
10 | | but not limited to, concessions, data processing, track |
11 | | maintenance, track security, and pari-mutuel operations, |
12 | | located, scheduled or doing business within the State of |
13 | | Illinois, (ii) any race horse competing at a meeting under the |
14 | | Board's jurisdiction, or (iii) any licensee under the Illinois |
15 | | Gambling Act. No person shall be appointed a member of the |
16 | | Board or continue
to be
a member of the Board who is (or any |
17 | | member of whose family is) a member of the
Board of Directors |
18 | | of, or who is a person financially interested in, any
licensee |
19 | | or other person who has applied for racing dates to the
Board, |
20 | | or the operations thereof including, but not
limited to, |
21 | | concessions, data
processing, track maintenance, track |
22 | | security and pari-mutuel operations,
located, scheduled
or |
23 | | doing business within the State of Illinois, or in any race |
24 | | horse competing
at a meeting
under the Board's jurisdiction. No |
25 | | Board member shall hold any other public
office for which he
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1 | | shall receive compensation other than necessary travel or other |
2 | | incidental
expenses.
|
3 | | (b) No person shall be a member of the Board who is not of |
4 | | good moral
character or who
has been convicted of, or is under |
5 | | indictment for, a felony under the laws
of Illinois or any
|
6 | | other state, or the United States.
|
7 | | (c) No member of the Board or employee shall engage in any |
8 | | political activity. |
9 | | For the purposes of this subsection (c): |
10 | | "Political" means any activity in support of or in |
11 | | connection with any campaign for State or local elective office |
12 | | or any political organization, but does not include activities |
13 | | (i) relating to the support or opposition of any executive, |
14 | | legislative, or administrative action (as those terms are |
15 | | defined in Section 2 of the Lobbyist Registration Act), (ii) |
16 | | relating to collective bargaining, or (iii) that are otherwise |
17 | | in furtherance of the person's official State duties or |
18 | | governmental and public service functions. |
19 | | "Political organization" means a party, committee, |
20 | | association, fund, or other organization (whether or not |
21 | | incorporated) that is required to file a statement of |
22 | | organization with the State Board of Elections or county clerk |
23 | | under Section 9-3 of the Election Code, but only with regard to |
24 | | those activities that require filing with the State Board of |
25 | | Elections or county clerk. |
26 | | (d) Board members and employees may not engage in |
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1 | | communications or any activity that may cause or have the |
2 | | appearance of causing a conflict of interest. A conflict of |
3 | | interest exists if a situation influences or creates the |
4 | | appearance that it may influence judgment or performance of |
5 | | regulatory duties and responsibilities. This prohibition shall |
6 | | extend to any act identified by Board action that, in the |
7 | | judgment of the Board, could represent the potential for or the |
8 | | appearance of a conflict of interest. |
9 | | (e) Board members and employees may not accept any gift, |
10 | | gratuity, service, compensation, travel, lodging, or thing of |
11 | | value, with the exception of unsolicited items of an incidental |
12 | | nature, from any person, corporation, limited liability |
13 | | company, or entity doing business with the Board. |
14 | | (f) A Board member or employee shall not use or attempt to |
15 | | use his or her official position to secure, or attempt to |
16 | | secure, any privilege, advantage, favor, or influence for |
17 | | himself or herself or others. No Board member or employee, |
18 | | within a period of one year immediately preceding nomination by |
19 | | the Governor or employment, shall have been employed or |
20 | | received compensation or fees for services from a person or |
21 | | entity, or its parent or affiliate, that has engaged in |
22 | | business with the Board, a licensee or a licensee under the |
23 | | Illinois Gambling Act. In addition, all Board members and |
24 | | employees are subject to the restrictions set forth in Section |
25 | | 5-45 of the State Officials and Employees Ethics Act. |
26 | | (Source: P.A. 89-16, eff. 5-30-95.)
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1 | | (230 ILCS 5/9) (from Ch. 8, par. 37-9)
|
2 | | Sec. 9.
The Board shall have all powers necessary and |
3 | | proper to fully and
effectively execute the provisions of this |
4 | | Act, including, but not
limited to, the following:
|
5 | | (a) The Board is vested with jurisdiction and supervision |
6 | | over all race
meetings in this State, over all licensees doing |
7 | | business
in this
State, over all occupation licensees, and over |
8 | | all persons on the
facilities of any licensee. Such |
9 | | jurisdiction shall
include the power to issue licenses to the |
10 | | Illinois Department of
Agriculture authorizing the pari-mutuel |
11 | | system of wagering
on harness and Quarter Horse races held (1) |
12 | | at the Illinois State Fair in
Sangamon County, and (2) at the |
13 | | DuQuoin State Fair in Perry County. The
jurisdiction of the |
14 | | Board shall also include the power to issue licenses to
county |
15 | | fairs which are eligible to receive funds pursuant to the
|
16 | | Agricultural Fair Act, as now or hereafter amended, or their |
17 | | agents,
authorizing the pari-mutuel system of wagering on horse
|
18 | | races
conducted at the county fairs receiving such licenses. |
19 | | Such licenses shall be
governed by subsection (n) of this |
20 | | Section.
|
21 | | Upon application, the Board shall issue a license to the |
22 | | Illinois Department
of Agriculture to conduct harness and |
23 | | Quarter Horse races at the Illinois State
Fair and at the |
24 | | DuQuoin State Fairgrounds
during the scheduled dates of each |
25 | | fair. The Board shall not require and the
Department of |
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1 | | Agriculture shall be exempt from the requirements of Sections
|
2 | | 15.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5), |
3 | | (e-10), (f),
(g), and (h) of Section 20, and Sections 21, 24 |
4 | | and 25. The Board and the Department
of
Agriculture may extend |
5 | | any or all of these exemptions to any contractor or
agent |
6 | | engaged by the Department of Agriculture to conduct its race |
7 | | meetings
when the Board determines that this would best serve |
8 | | the public interest and
the interest of horse racing.
|
9 | | Notwithstanding any provision of law to the contrary, it |
10 | | shall be lawful for
any licensee to operate pari-mutuel |
11 | | wagering
or
contract with the Department of Agriculture to |
12 | | operate pari-mutuel wagering at
the DuQuoin State Fairgrounds |
13 | | or for the Department to enter into contracts
with a licensee, |
14 | | employ its owners,
employees
or
agents and employ such other |
15 | | occupation licensees as the Department deems
necessary in |
16 | | connection with race meetings and wagerings.
|
17 | | (b) The Board is vested with the full power to promulgate |
18 | | reasonable
rules and regulations for the purpose of |
19 | | administering the provisions of
this Act and to prescribe |
20 | | reasonable rules, regulations and conditions
under which all |
21 | | horse race meetings or wagering in the State shall be
|
22 | | conducted. Such reasonable rules and regulations are to provide |
23 | | for the
prevention of practices detrimental to the public |
24 | | interest and to promote the best
interests of horse racing and |
25 | | to impose penalties for violations thereof.
|
26 | | (c) The Board, and any person or persons to whom it |
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1 | | delegates
this power, is vested with the power to enter the |
2 | | facilities and other places of business of any licensee to |
3 | | determine whether there has been compliance with
the provisions |
4 | | of this Act and its rules and regulations.
|
5 | | (d) The Board, and any person or persons to whom it |
6 | | delegates this
power, is vested with the authority to |
7 | | investigate alleged violations of
the provisions of this Act, |
8 | | its reasonable rules and regulations, orders
and final |
9 | | decisions; the Board shall take appropriate disciplinary |
10 | | action
against any licensee or occupation licensee for |
11 | | violation
thereof or
institute appropriate legal action for the |
12 | | enforcement thereof.
|
13 | | (e) The Board, and any person or persons to whom it |
14 | | delegates this power,
may eject or exclude from any race |
15 | | meeting or
the facilities of any licensee, or any part
thereof, |
16 | | any occupation licensee or any
other individual whose conduct |
17 | | |