100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB0007

Introduced 1/11/2017, by Sen. Terry Link

SYNOPSIS AS INTRODUCED:

See Index

Creates the Chicago Casino Development Authority Act. Provides for the creation of the Chicago Casino Development Authority, whose duties include promotion and maintenance of a casino. Amends the Illinois Lottery Law. Establishes the Division of Internet Gaming within the Department of the Lottery for the purpose of administering, regulating, and enforcing a system of Internet gaming (and makes conforming changes in other Acts). Amends the Illinois Horse Racing Act of 1975 and the Riverboat Gambling Act to authorize electronic gaming at race tracks (and makes conforming changes in various Acts). Further amends the Illinois Horse Racing Act of 1975. Makes various changes concerning Board members. Indefinitely extends the authorization for advance deposit wagering. Contains provisions concerning testing of horses at county fairs and standardbred horses. Further amends the Riverboat Gambling Act. Changes the short title to the Illinois Gambling Act and changes corresponding references to the Act. Adds additional owners licenses, one of which authorizes the conduct of casino gambling in the City of Chicago. Makes changes in provisions concerning the admission tax and privilege tax. Makes other changes. Contains a severability provision. Effective immediately, but does not take effect at all unless Senate Bills 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, and 13 of the 100th General Assembly become law.

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A BILL FOR

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1 AN ACT concerning gaming.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 ARTICLE 1.

5 Section 1-1. Short title. This Article may be cited as the

6 Chicago Casino Development Authority Act. References in this

7 Article to "this Act" mean this Article.

8 Section 1-2. Legislative intent.

9 (a) This Act is intended to benefit the people of the City

10 of Chicago and the State of Illinois by assisting economic

11 development and promoting tourism and by increasing the amount

12 of revenues available to the City and the State to assist and

13 support the City's pension obligation in accordance with Public

14 Act 99-506.

15 (b) While authorization of casino gambling in Chicago will

16 enhance investment, development, and tourism in Illinois, it is

17 recognized that it will do so successfully only if public

18 confidence and trust in the credibility and integrity of the

19 gambling operations and the regulatory process is maintained.

20 Therefore, the provisions of this Act are designed to allow the

21 Illinois Gaming Board to strictly regulate the facilities,

22 persons, associations, and practices related to gambling

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1 operations pursuant to the police powers of the State,

2 including comprehensive law enforcement supervision.

3 Consistent with the Gaming Board's authority, the Gaming Board

4 alone shall regulate any Chicago casino, just as it now

5 regulates every other casino in Illinois.

6 Section 1-5. Definitions. As used in this Act:

7 "Authority" means the Chicago Casino Development Authority

8 created by this Act.

9 "Casino" means one temporary land-based or water-based

10 facility and one permanent land-based or water-based facility

11 at which lawful gambling is authorized and licensed as provided

12 in the Illinois Gambling Act.

13 "Casino Board" means the board appointed pursuant to this

14 Act to govern and control the Authority.

15 "Casino management contract" means a legally binding

16 agreement between the Authority and a casino operator licensee

17 to operate or manage a casino.

18 "Casino operator licensee" means any person or entity

19 selected by the Authority and approved and licensed by the

20 Gaming Board to manage and operate a casino within the City of

21 Chicago pursuant to a casino management contract.

22 "City" means the City of Chicago.

23 "Entity" means a corporation, joint venture, partnership,

24 limited liability company, trust, or unincorporated

25 association.

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1 "Executive director" means the person appointed by the

2 Casino Board to oversee the daily operations of the Authority.

3 "Gaming Board" means the Illinois Gaming Board created by

4 the Illinois Gambling Act.

5 "Mayor" means the Mayor of the City.

6 Section 1-12. Creation of the Authority. There is hereby

7 created a political subdivision, unit of local government with

8 only the powers authorized by law, body politic, and municipal

9 corporation, by the name and style of the Chicago Casino

10 Development Authority.

11 Section 1-13. Duties of the Authority. It shall be the duty

12 of the Authority, as an owners licensee under the Illinois

13 Gambling Act, to promote and maintain a casino in the City. The

14 Authority shall own, acquire, construct, lease, equip, and

15 maintain grounds, buildings, and facilities for that purpose.

16 However, the Authority shall contract with a casino operator

17 licensee to manage and operate the casino and in no event shall

18 the Authority or City manage or operate the casino. The

19 Authority may contract pursuant to the procedures set forth in

20 Section 1-115 with other third parties in order to fulfill its

21 purpose. The Authority is responsible for the payment of any

22 fees required of a casino operator under subsection (a) of

23 Section 7.9 of the Illinois Gambling Act if the casino operator

24 licensee is late in paying any such fees. The Authority is

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1 granted all rights and powers necessary to perform such duties.

2 Subject to the provisions of this Act, the Authority and casino

3 operator licensee are subject to the Illinois Gambling Act and

4 all of the rules of the Gaming Board, which shall be applied to

5 the Authority and the casino operator licensee in a manner

6 consistent with that of other owners licensees under the

7 Illinois Gambling Act. Nothing in this Act shall confer

8 regulatory authority on the Chicago Casino Development

9 Authority. The Illinois Gaming Board shall have exclusive

10 regulatory authority over all gambling operations governed by

11 this Act.

12 Section 1-15. Casino Board.

13 (a) The governing and administrative powers of the

14 Authority shall be vested in a body known as the Chicago Casino

15 Development Board. The Casino Board shall consist of 5 members

16 appointed by the Mayor. One of these members shall be

17 designated by the Mayor to serve as chairperson. All of the

18 members appointed by the Mayor shall be residents of the City.

19 Each Casino Board appointee shall be subject to a

20 preliminary background investigation completed by the Gaming

21 Board within 30 days after the appointee's submission of his or

22 her application to the Gaming Board. If the Gaming Board

23 determines that there is a substantial likelihood that it will

24 not find the appointee to be suitable to serve on the Casino

25 Board (applying the same standards for suitability to the

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1 appointee as the Gaming Board would apply to an owners licensee

2 key person under the Gaming Board's adopted rules), then the

3 Gaming Board shall provide a written notice of such

4 determination to the appointee and the Corporation Counsel of

5 the City. The Mayor may then appoint a new candidate. If no

6 such notice is delivered with respect to a particular

7 appointee, then commencing on the 31st day following the date

8 of the appointee's submission of his or her application to the

9 Gaming Board, the appointee shall be deemed an acting member of

10 the Casino Board and shall participate as a Casino Board

11 member.

12 Each appointee shall be subject to a full background

13 investigation and final approval by the Gaming Board prior to

14 the opening of the casino. The Gaming Board shall complete its

15 full background investigation of the Casino Board appointee

16 within 3 months after the date of the appointee's submission of

17 his or her application to the Gaming Board. If the Gaming Board

18 does not complete its background investigation within the

19 3-month period, then the Gaming Board shall give a written

20 explanation to the appointee, as well as the Mayor, the

21 Governor, the President of the Senate, and the Speaker of the

22 House of Representatives, as to why it has not reached a final

23 determination and set forth a reasonable time when such

24 determination shall be made.

25 (b) Casino Board members shall receive $300 for each day

26 the Authority meets and shall be entitled to reimbursement of

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1 reasonable expenses incurred in the performance of their

2 official duties. A Casino Board member who serves in the office

3 of secretary-treasurer may also receive compensation for

4 services provided as that officer.

5 Section 1-20. Terms of appointments; resignation and

6 removal.

7 (a) The Mayor shall appoint 2 members of the Casino Board

8 for an initial term expiring July 1 of the year following final

9 approval by the Gaming Board, 2 members for an initial term

10 expiring July 1 three years following final approval by the

11 Gaming Board, and one member for an initial term expiring July

12 1 five years following final approval by the Gaming Board.

13 (b) All successors shall be appointed by the Mayor to hold

14 office for a term of 5 years from the first day of July of the

15 year in which they are appointed, except in the case of an

16 appointment to fill a vacancy. Each member, including the

17 chairperson, shall hold office until the expiration of his or

18 her term and until his or her successor is appointed and

19 qualified. Nothing shall preclude a member from serving

20 consecutive terms. Any member may resign from office, to take

21 effect when a successor has been appointed and qualified. A

22 vacancy in office shall occur in the case of a member's death

23 or indictment, conviction, or plea of guilty to a felony. A

24 vacancy shall be filled for the unexpired term by the Mayor

25 subject to the approval of the Gaming Board as provided in this

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1 Section.

2 (c) Members of the Casino Board shall serve at the pleasure

3 of the Mayor. The Mayor or the Gaming Board may remove any

4 member of the Casino Board upon a finding of incompetence,

5 neglect of duty, or misfeasance or malfeasance in office or for

6 a violation of this Act. The Gaming Board may remove any member

7 of the Casino Board for any violation of the Illinois Gambling

8 Act or the rules and regulations of the Gaming Board.

9 (d) No member of the Casino Board shall engage in any

10 political activity. For the purpose of this Section, "political

11 activity" means any activity in support of or in connection

12 with any campaign for federal, State, or local elective office

13 or any political organization, but does not include activities

14 (i) relating to the support or opposition of any executive,

15 legislative, or administrative action, as those terms are

16 defined in Section 2 of the Lobbyist Registration Act, (ii)

17 relating to collective bargaining, or (iii) that are otherwise

18 in furtherance of the person's official duties or governmental

19 and public service functions.

20 Section 1-25. Organization of Casino Board; meetings.

21 After appointment by the Mayor, the Casino Board shall organize

22 for the transaction of business, provided that the Casino Board

23 shall not take any formal action until after the Gaming Board

24 has completed its preliminary background investigation of at

25 least a quorum of the Casino Board as provided in subsection

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1 (a) of Section 1-15. The Casino Board shall prescribe the time

2 and place for meetings, the manner in which special meetings

3 may be called, and the notice that must be given to members.

4 All actions and meetings of the Casino Board shall be subject

5 to the provisions of the Open Meetings Act. Three members of

6 the Casino Board shall constitute a quorum. All substantive

7 action of the Casino Board shall be by resolution with an

8 affirmative vote of a majority of the members.

9 Section 1-30. Executive director; officers.

10 (a) The Casino Board shall appoint an executive director,

11 who shall be the chief executive officer of the Authority.

12 The executive director shall be subject to a preliminary

13 background investigation to be completed by the Gaming Board

14 within 30 days after the executive director's submission of his

15 or her application to the Gaming Board. If the Gaming Board

16 determines that there is a substantial likelihood that it will

17 not find the executive director to be suitable to serve in that

18 position (applying the same standards for suitability as the

19 Gaming Board would apply to an owners licensee key person under

20 the Gaming Board's adopted rules), then the Gaming Board shall

21 provide a written notice of such determination to the appointee

22 and the Corporation Counsel of the City. The Casino Board may

23 then appoint a new executive director. If no such notice is

24 delivered, then commencing on the 31st day following the date

25 of the executive director's submission of his or her

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1 application to the Gaming Board, the executive director shall

2 commence all duties as the acting executive director of the

3 Authority.

4 The executive director shall be subject to a full

5 background investigation and final approval by the Gaming Board

6 prior to the opening of the casino. The Gaming Board shall

7 complete its full background investigation of the executive

8 director within 3 months after the date of the executive

9 director's submission of his or her application to the Gaming

10 Board. If the Gaming Board does not complete its background

11 investigation within the 3-month period, then the Gaming Board

12 shall give a written explanation to the appointee, as well as

13 the Mayor, the Governor, the President of the Senate, and the

14 Speaker of the House of Representatives, as to why it has not

15 reached a final determination and set forth a reasonable time

16 when such determination shall be made.

17 (b) The Casino Board shall fix the compensation of the

18 executive director. Subject to the general control of the

19 Casino Board, the executive director shall be responsible for

20 the management of the business, properties, and employees of

21 the Authority. The executive director shall direct the

22 enforcement of all resolutions, rules, and regulations of the

23 Casino Board, and shall perform such other duties as may be

24 prescribed from time to time by the Casino Board. All employees

25 and independent contractors, consultants, engineers,

26 architects, accountants, attorneys, financial experts,

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1 construction experts and personnel, superintendents, managers,

2 and other personnel appointed or employed pursuant to this Act

3 shall report to the executive director. In addition to any

4 other duties set forth in this Act, the executive director

5 shall do or shall delegate to an employee or agent of the

6 Authority to do all of the following:

7 (1) Direct and supervise the administrative affairs

8 and activities of the Authority in accordance with its

9 rules, regulations, and policies.

10 (2) Attend meetings of the Casino Board.

11 (3) Keep minutes of all proceedings of the Casino

12 Board.

13 (4) Approve all accounts for salaries, per diem

14 payments, and allowable expenses of the Casino Board and

15 its employees and consultants.

16 (5) Report and make recommendations to the Casino Board

17 concerning the terms and conditions of any casino

18 management contract.

19 (6) Perform any other duty that the Casino Board

20 requires for carrying out the provisions of this Act.

21 (7) Devote his or her full time to the duties of the

22 office and not hold any other office or employment.

23 (c) The Casino Board may select a secretary-treasurer and

24 other officers to hold office at the pleasure of the Casino

25 Board. The Casino Board shall fix the duties of such officers.

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1 Section 1-31. General rights and powers of the Authority.

2 (a) In addition to the duties and powers set forth in this

3 Act, the Authority shall have the following rights and powers:

4 (1) Adopt and alter an official seal.

5 (2) Establish and change its fiscal year.

6 (3) Sue and be sued, plead and be impleaded, all in its

7 own name, and agree to binding arbitration of any dispute

8 to which it is a party.

9 (4) Adopt, amend, and repeal bylaws, rules, and

10 regulations consistent with the furtherance of the powers

11 and duties provided for.

12 (5) Maintain its principal office within the City and

13 such other offices as the Casino Board may designate.

14 (6) Select locations in the City for a temporary and a

15 permanent casino.

16 (7) Subject to the bidding procedures of Section 1-115

17 of this Act, retain or employ, either as regular employees

18 or independent contractors, consultants, engineers,

19 architects, accountants, attorneys, financial experts,

20 construction experts and personnel, superintendents,

21 managers and other professional personnel, and such other

22 personnel as may be necessary in the judgment of the Casino

23 Board, and fix their compensation; however, employees of

24 the Authority shall be hired pursuant to and in accordance

25 with the rules and policies the Authority may adopt.

26 (8) Pursuant to Section 1-115 of this Act, own,

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1 acquire, construct, equip, lease, operate, manage, and

2 maintain grounds, buildings, and facilities to carry out

3 its corporate purposes and duties.

4 (9) Pursuant to Section 1-115, and subject to the

5 oversight, review, and approval of the Gaming Board, enter

6 into, revoke, and modify contracts in accordance with the

7 rules of the Gaming Board as consistently applied to all

8 owners licensees under the Illinois Gambling Act, provided

9 that the Authority may enter into contracts for the design,

10 construction, and outfitting of a temporary casino prior to

11 the Gaming Board's final approval of the Authority's

12 executive director and the members of the Casino Board and

13 prior to the Gaming Board's issuance of the Authority's

14 owners license. Provided further that the entities

15 selected by the Authority for the design, construction, and

16 outfitting of the temporary casino shall be subject to a

17 preliminary background investigation to be completed by

18 the Gaming Board within 30 days after the Gaming Board is

19 provided the identities of the entities. If the Gaming

20 Board determines that there is a substantial likelihood

21 that the entities are not suitable or acceptable to perform

22 their respective functions, then the Gaming Board shall

23 immediately provide notice of that determination to the

24 Authority. If no such notice is delivered, then, commencing

25 on the 31st day following the date on which the information

26 identifying such entities is provided to the Gaming Board,

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1 such entities shall be permitted to commence the services

2 contemplated for the design, construction, and outfitting

3 of the temporary casino. In no event, however, shall the

4 Authority open a casino until after the Gaming Board has

5 finally approved the Authority's executive director and

6 the members of the Casino Board and the Gaming Board has

7 issued the Authority's owners license and the casino

8 operator's casino operator license.

9 (10) Enter into a casino management contract subject to

10 the provisions of Section 1-45 of this Act.

11 (11) Negotiate and enter into intergovernmental

12 agreements with the State and its agencies, the City, and

13 other units of local government, in furtherance of the

14 powers and duties of the Casino Board.

15 (12) Receive and disburse funds for its own corporate

16 purposes or as otherwise specified in this Act.

17 (13) Borrow money from any source, public or private,

18 for any corporate purpose, including, without limitation,

19 working capital for its operations, reserve funds, or

20 payment of interest, and to mortgage, pledge, or otherwise

21 encumber the property or funds of the Authority and to

22 contract with or engage the services of any person in

23 connection with any financing, including financial

24 institutions, issuers of letters of credit, or insurers and

25 enter into reimbursement agreements with this person or

26 entity which may be secured as if money were borrowed from

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1 the person or entity.

2 (14) Issue bonds as provided for under this Act.

3 (15) Receive and accept from any source, private or

4 public, contributions, gifts, or grants of money or

5 property to the Authority.

6 (16) Provide for the insurance of any property,

7 operations, officers, members, agents, or employees of the

8 Authority against any risk or hazard, to self-insure or

9 participate in joint self-insurance pools or entities to

10 insure against such risk or hazard, and to provide for the

11 indemnification of its officers, members, employees,

12 contractors, or agents against any and all risks.

13 (17) Exercise all the corporate powers granted

14 Illinois corporations under the Business Corporation Act

15 of 1983, except to the extent that powers are inconsistent

16 with those of a body politic and municipal corporation.

17 (18) Do all things necessary or convenient to carry out

18 the powers granted by this Act.

19 (b) The Casino Board shall comply with all applicable legal

20 requirements imposed on other owners licensees to conduct all

21 background investigations required under the Illinois Gambling

22 Act and the rules of the Gaming Board. This requirement shall

23 also extend to senior legal, financial, and administrative

24 staff of the Authority.

25 Section 1-32. Ethical conduct.

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1 (a) Casino Board members and employees of the Authority

2 must carry out their duties and responsibilities in such a

3 manner as to promote and preserve public trust and confidence

4 in the integrity and conduct of gaming.

5 (b) Except as may be required in the conduct of official

6 duties, Casino Board members and employees of the Authority

7 shall not engage in gambling on any riverboat, in any casino,

8 or in an electronic gaming facility licensed by the Illinois

9 Gaming Board or engage in legalized gambling in any

10 establishment identified by Gaming Board action that, in the

11 judgment of the Gaming Board, could represent a potential for a

12 conflict of interest.

13 (c) A Casino Board member or employee of the Authority

14 shall not use or attempt to use his or her official position to

15 secure or attempt to secure any privilege, advantage, favor, or

16 influence for himself or herself or others.

17 (d) Casino Board members and employees of the Authority

18 shall not hold or pursue employment, office, position,

19 business, or occupation that may conflict with his or her

20 official duties. Employees may engage in other gainful

21 employment so long as that employment does not interfere or

22 conflict with their duties. Such employment must be disclosed

23 to the executive director and approved by the Casino Board.

24 (e) Casino Board members, employees of the Authority, and

25 elected officials and employees of the City may not engage in

26 employment, communications, or any activity identified by the

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1 Casino Board or Gaming Board that, in the judgment of either

2 entity, could represent the potential for or the appearance of

3 a conflict of interest.

4 (f) Casino Board members, employees of the Authority, and

5 elected officials and employees of the City may not have a

6 financial interest, directly or indirectly, in his or her own

7 name or in the name of any other person, partnership,

8 association, trust, corporation, or other entity in any

9 contract or subcontract for the performance of any work for the

10 Authority. This prohibition shall extend to the holding or

11 acquisition of an interest in any entity identified by the

12 Casino Board or the Gaming Board that, in the judgment of

13 either entity, could represent the potential for or the

14 appearance of a financial interest. The holding or acquisition

15 of an interest in such entities through an indirect means, such

16 as through a mutual fund, shall not be prohibited, except that

17 the Gaming Board may identify specific investments or funds

18 that, in its judgment, are so influenced by gaming holdings as

19 to represent the potential for or the appearance of a conflict

20 of interest.

21 (g) Casino Board members, employees of the Authority, and

22 elected officials and employees of the City may not accept any

23 gift, gratuity, service, compensation, travel, lodging, or

24 thing of value, with the exception of unsolicited items of an

25 incidental nature, from any person, corporation, or entity

26 doing business with the Authority.

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1 (h) No Casino Board member, employee of the Authority, or

2 elected official or employee of the City may, during employment

3 or within a period of 2 years immediately after termination of

4 employment, knowingly accept employment or receive

5 compensation or fees for services from a person or entity, or

6 its parent or affiliate, that has engaged in business with the

7 Authority that resulted in contracts with an aggregate value of

8 at least $25,000 or if that Casino Board member or employee has

9 made a decision that directly applied to the person or entity,

10 or its parent or affiliate.

11 (i) A spouse, child, or parent of a Casino Board member,

12 employee of the Authority, or elected official or employee of

13 the City may not have a financial interest, directly or

14 indirectly, in his or her own name or in the name of any other

15 person, partnership, association, trust, corporation, or other

16 entity in any contract or subcontract for the performance of

17 any work for the Authority. This prohibition shall extend to

18 the holding or acquisition of an interest in any entity

19 identified by the Casino Board or Gaming Board that, in the

20 judgment of either entity, could represent the potential for or

21 the appearance of a conflict of interest. The holding or

22 acquisition of an interest in such entities through an indirect

23 means, such as through a mutual fund, shall not be prohibited,

24 except that the Gaming Board may identify specific investments

25 or funds that, in its judgment, are so influenced by gaming

26 holdings as to represent the potential for or the appearance of

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1 a conflict of interest.

2 (j) A spouse, child, or parent of a Casino Board member,

3 employee of the Authority, or elected official or employee of

4 the City may not accept any gift, gratuity, service,

5 compensation, travel, lodging, or thing of value, with the

6 exception of unsolicited items of an incidental nature, from

7 any person, corporation, or entity doing business with the

8 Authority.

9 (k) A spouse, child, or parent of a Casino Board member,

10 employee of the Authority, or elected official or employee of

11 the City may not, while the person is a Board member or

12 employee of the spouse or within a period of 2 years

13 immediately after termination of employment, knowingly accept

14 employment or receive compensation or fees for services from a

15 person or entity, or its parent or affiliate, that has engaged

16 in business with the Authority that resulted in contracts with

17 an aggregate value of at least $25,000 or if that Casino Board

18 member, employee, or elected official or employee of the City

19 has made a decision that directly applied to the person or

20 entity, or its parent or affiliate.

21 (l) No Casino Board member, employee of the Authority, or

22 elected official or employee of the City may attempt, in any

23 way, to influence any person or entity doing business with the

24 Authority or any officer, agent, or employee thereof to hire or

25 contract with any person or entity for any compensated work.

26 (m) No Casino Board member, employee of the Authority, or

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1 elected official or employee of the City shall use or attempt

2 to use his or her official position to secure, or attempt to

3 secure, any privilege, advantage, favor, or influence for

4 himself or herself or others. No Casino Board member, employee

5 of the Authority, or elected official or employee of the City

6 shall, within one year immediately preceding appointment by the

7 Mayor or employment, have been employed or received

8 compensation or fees for services from a person or entity, or

9 its parent or affiliate, that has engaged in business with the

10 Casino Board, a licensee under this Act, or a licensee under

11 the Illinois Gambling Act.

12 (n) Any communication between an elected official of the

13 City and any applicant for or party to a casino management

14 contract with the Authority, or an officer, director, or

15 employee thereof, concerning any matter relating in any way to

16 gaming or the Authority shall be disclosed to the Casino Board

17 and the Gaming Board. Such disclosure shall be in writing by

18 the official within 30 days after the communication and shall

19 be filed with the Casino Board and the Gaming Board. Disclosure

20 must consist of the date of the communication, the identity and

21 job title of the person with whom the communication was made, a

22 brief summary of the communication, the action requested or

23 recommended, all responses made, the identity and job title of

24 the person making the response, and any other pertinent

25 information. In addition, if the communication is written or

26 digital, then the entire communication shall be disclosed.

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1 Public disclosure of the written summary provided to the

2 Casino Board and the Gaming Board shall be subject to the

3 exemptions provided under Section 7 of the Freedom of

4 Information Act.

5 This subsection (n) shall not apply to communications

6 regarding traffic, law enforcement, security, environmental

7 issues, City services, transportation, or other routine

8 matters concerning the ordinary operations of the casino.

9 (o) For purposes of this Section:

10 "Ordinary operations" means operations relating to the

11 casino facility other than the conduct of gambling activities.

12 "Routine matters" includes the application for, issuance,

13 renewal, and other processes associated with City permits and

14 licenses.

15 "Employee of the City" means only those employees of the

16 City who provide services to the Authority or otherwise

17 influence the decisions of the Authority or the Casino Board.

18 (p) Any Casino Board member or employee of the Authority

19 who violates any provision of this Section is guilty of a Class

20 4 felony.

21 Section 1-45. Casino management contracts.

22 (a) In accordance with all applicable procurement laws and

23 rules, the Casino Board shall develop and administer a

24 competitive sealed bidding process for the selection of a

25 potential casino operator licensee to develop or operate a

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1 casino within the City. The Casino Board shall issue one or

2 more requests for proposals. The Casino Board may establish

3 minimum financial and investment requirements to determine the

4 eligibility of persons to respond to the Casino Board's

5 requests for proposals, and may establish and consider such

6 other criteria as it deems appropriate. The Casino Board may

7 impose a reasonable fee upon persons who respond to requests

8 for proposals, in order to reimburse the Casino Board for its

9 costs in preparing and issuing the requests and reviewing the

10 proposals. At least 30 days prior to the commencement of the

11 competitive bidding process, the Gaming Board shall be given an

12 opportunity to review the competitive bidding process

13 established by the Casino Board. During the competitive bidding

14 process, the Casino Board shall keep the Gaming Board apprised

15 of the process and the responses received in connection with

16 the Casino Board's requests for proposals.

17 (b) Within 5 business days after the time limit for

18 submitting bids and proposals has passed, the Casino Board

19 shall make all bids and proposals public, provided, however,

20 the Casino Board shall not be required to disclose any

21 information which would be exempt from disclosure under Section

22 7 of the Freedom of Information Act. Thereafter, the Casino

23 Board shall evaluate the responses to its requests for

24 proposals and the ability of all persons or entities responding

25 to its requests for proposals to meet the requirements of this

26 Act and any relevant provisions of the Illinois Gambling Act

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1 and to undertake and perform the obligations set forth in its

2 requests for proposals.

3 (c) After reviewing proposals and selecting a successful

4 bidder, the Casino Board shall enter into a casino management

5 contract with the successful bidder authorizing the operation

6 of a casino. The casino operator shall be subject to a

7 background investigation and approval by the Gaming Board. The

8 Gaming Board shall complete its background investigation and

9 approval of the casino operator within 6 months after the date

10 that the proposed casino operator submits its application to

11 the Gaming Board. If the Gaming Board does not complete its

12 background investigation and approval within the 6-month

13 period, then the Gaming Board shall give a written explanation

14 to the proposed casino operator and the chief legal officer of

15 the Authority as to why it has not reached a final

16 determination and when it reasonably expects to make a final

17 determination. Validity of the casino management contract is

18 contingent upon the issuance of a casino operator license to

19 the successful bidder. If the Gaming Board grants a casino

20 operator license, the Casino Board shall transmit a copy of the

21 executed casino management contract to the Gaming Board.

22 (d) After (1) the Authority has been issued an owners

23 license, (2) the Gaming Board has issued a casino operator

24 license, and (3) the Gaming Board has approved the members of

25 the Casino Board, the Authority may conduct gaming operations

26 at a temporary facility, subject to the adopted rules of the

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1 Gaming Board, for no longer than 24 months after gaming

2 operations begin. The Gaming Board may, after holding a public

3 hearing, grant an extension so long as a permanent facility is

4 not operational and the Authority is working in good faith to

5 complete the permanent facility. The Gaming Board may grant

6 additional extensions following further public hearings. Each

7 extension may be for a period of no longer than 6 months.

8 (e) Fifty percent of any initial consideration received by

9 the Authority that was paid as an inducement pursuant to a bid

10 for a casino management contract or an executed casino

11 management contract must be transmitted to the State and

12 deposited into the Gaming Facilities Fee Revenue Fund. The

13 initial consideration shall not include (1) any amounts paid to

14 the Authority as reimbursement for its costs in preparing or

15 issuing the requests for proposals and reviewing the proposals

16 or (2) any amounts loaned to the Authority or paid by an entity

17 on behalf of the Authority for the design, construction,

18 outfitting, or equipping of the casino, pre-opening expenses,

19 bank roll or similar expenses required to open and operate the

20 casino, or any license or per position fees imposed pursuant to

21 the Illinois Gambling Act or any other financial obligation of

22 the Authority.

23 Section 1-47. Freedom of Information Act. The Authority

24 shall be a public body as defined in the Freedom of Information

25 Act and shall be subject to the provisions of the Freedom of

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1 Information Act.

2 Section 1-50. Transfer of funds. The revenues received by

3 the Authority (other than amounts required to be paid pursuant

4 to the Illinois Gambling Act and amounts required to pay the

5 operating expenses of the Authority, to pay amounts due the

6 casino operator licensee pursuant to a casino management

7 contract, to repay any borrowing of the Authority made pursuant

8 to Section 1-31, to pay debt service on any bonds issued under

9 Section 1-75, and to pay any expenses in connection with the

10 issuance of such bonds pursuant to Section 1-75 or derivative

11 products pursuant to Section 1-85) shall be transferred to the

12 City by the Authority. Moneys transferred to the City pursuant

13 to this Section shall be expended or obligated by the City for

14 pension payments in accordance with Public Act 99-506.

15 Section 1-60. Auditor General.

16 (a) Prior to the issuance of bonds under this Act, the

17 Authority shall submit to the Auditor General a certification

18 that:

19 (1) it is legally authorized to issue bonds;

20 (2) scheduled annual payments of principal and

21 interest on the bonds to be issued meet the requirements of

22 Section 1-75 of this Act;

23 (3) no bond shall mature later than 30 years; and

24 (4) after payment of costs of issuance and necessary

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1 deposits to funds and accounts established with respect to

2 debt service on the bonds, the net bond proceeds (exclusive

3 of any proceeds to be used to refund outstanding bonds)

4 will be used only for the purposes set forth in this Act.

5 The Authority also shall submit to the Auditor General its

6 projections on revenues to be generated and pledged to

7 repayment of the bonds as scheduled and such other information

8 as the Auditor General may reasonably request.

9 The Auditor General shall examine the certifications and

10 information submitted and submit a report to the Authority and

11 the Gaming Board indicating whether the required

12 certifications, projections, and other information have been

13 submitted by the Authority and whether the assumptions

14 underlying the projections are not unreasonable in the

15 aggregate. The Auditor General shall submit the report no later

16 than 60 days after receiving the information required to be

17 submitted by the Authority.

18 The Auditor General shall submit a bill to the Authority

19 for costs associated with the examinations and report required

20 under this Section. The Authority shall reimburse in a timely

21 manner.

22 (b) The Authority shall enter into an intergovernmental

23 agreement with the Auditor General authorizing the Auditor

24 General to, every 2 years, (i) review the financial audit of

25 the Authority performed by the Authority's certified public

26 accountants, (ii) perform a management audit of the Authority,

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1 and (iii) perform a management audit of the casino operator

2 licensee. The Auditor General shall provide the Authority and

3 the General Assembly with the audits and shall post on his or

4 her Internet website such portions of the audit or other

5 financial information as generally would be made publicly

6 available for other owners licensees under the Illinois

7 Gambling Act. The Auditor General shall submit a bill to the

8 Authority for costs associated with the review and the audit

9 required under this Section, which costs shall not exceed

10 $100,000, and the Authority shall reimburse the Auditor General

11 for such costs in a timely manner.

12 Section 1-62. Advisory committee. An Advisory Committee is

13 established to monitor, review, and report on (1) the

14 Authority's utilization of minority-owned business enterprises

15 and female-owned business enterprises, (2) employment of

16 females, and (3) employment of minorities with regard to the

17 development and construction of the casino as authorized under

18 Section 7 of the Illinois Gambling Act. The Authority shall

19 work with the Advisory Committee in accumulating necessary

20 information for the Committee to submit reports, as necessary,

21 to the General Assembly and to the City.

22 The Committee shall consist of 9 members as provided in

23 this Section. Five members shall be selected by the Governor

24 and 4 members shall be selected by the Mayor. The Governor and

25 Mayor shall each appoint at least one current member of the

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1 General Assembly. The Advisory Committee shall meet

2 periodically and shall report the information to the Mayor of

3 the City and to the General Assembly by December 31st of every

4 year.

5 The Advisory Committee shall be dissolved on the date that

6 casino gambling operations are first conducted at a permanent

7 facility under the license authorized under Section 7 of the

8 Illinois Gambling Act. For the purposes of this Section, the

9 terms "female" and "minority person" have the meanings provided

10 in Section 2 of the Business Enterprise for Minorities,

11 Females, and Persons with Disabilities Act.

12 Section 1-65. Acquisition of property; eminent domain

13 proceedings. For the lawful purposes of this Act, the City may

14 acquire, by eminent domain or by condemnation proceedings in

15 the manner provided by the Eminent Domain Act, real or personal

16 property or interests in real or personal property located in

17 the City, and the City may convey to the Authority property so

18 acquired. The acquisition of property under this Section is

19 declared to be for a public use.

20 Section 1-70. Local regulation. In addition to this Act,

21 the Illinois Gambling Act, and all of the rules of the Gaming

22 Board, the casino facilities and operations therein shall be

23 subject to all ordinances and regulations of the City. The

24 construction, development, and operation of the casino shall

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1 comply with all ordinances, regulations, rules, and controls of

2 the City, including, but not limited to, those relating to

3 zoning and planned development, building, fire prevention, and

4 land use. However, the regulation of gaming operations is

5 subject to the exclusive jurisdiction of the Gaming Board. The

6 Gaming Board shall be responsible for the investigation for and

7 issuance of all licenses required by this Act and the Illinois

8 Gambling Act.

9 Section 1-75. Borrowing.

10 (a) The Authority may borrow money and issue bonds as

11 provided in this Section. Bonds of the Authority may be issued

12 to provide funds for land acquisition, site assembly and

13 preparation, and the design and construction of the casino, as

14 defined in the Illinois Gambling Act, all ancillary and related

15 facilities comprising the casino complex, and all on-site and

16 off-site infrastructure improvements required in connection

17 with the development of the casino; to refund (at the time or

18 in advance of any maturity or redemption) or redeem any bonds

19 of the Authority; to provide or increase a debt service reserve

20 fund or other reserves with respect to any or all of its bonds;

21 or to pay the legal, financial, administrative, bond insurance,

22 credit enhancement, and other legal expenses of the

23 authorization, issuance, or delivery of bonds. In this Act, the

24 term "bonds" also includes notes of any kind, interim

25 certificates, refunding bonds, or any other evidence of

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1 obligation for borrowed money issued under this Section. Bonds

2 may be issued in one or more series and may be payable and

3 secured either on a parity with or separately from other bonds.

4 (b) The bonds of the Authority shall be payable from one or

5 more of the following sources: (i) the property or revenues of

6 the Authority; (ii) revenues derived from the casino; (iii)

7 revenues derived from any casino operator licensee; (iv) fees,

8 bid proceeds, charges, lease payments, payments required

9 pursuant to any casino management contract or other revenues

10 payable to the Authority, or any receipts of the Authority; (v)

11 payments by financial institutions, insurance companies, or

12 others pursuant to letters or lines of credit, policies of

13 insurance, or purchase agreements; (vi) investment earnings

14 from funds or accounts maintained pursuant to a bond resolution

15 or trust indenture; (vii) proceeds of refunding bonds; (viii)

16 any other revenues derived from or payments by the City; and

17 (ix) any payments by any casino operator licensee or others

18 pursuant to any guaranty agreement.

19 (c) Bonds shall be authorized by a resolution of the

20 Authority and may be secured by a trust indenture by and

21 between the Authority and a corporate trustee or trustees,

22 which may be any trust company or bank having the powers of a

23 trust company within or without the State. Bonds shall meet the

24 following requirements:

25 (1) Bonds may bear interest payable at any time or

26 times and at any rate or rates, notwithstanding any other

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1 provision of law to the contrary, and may be subject to

2 such other terms and conditions as may be provided by the

3 resolution or indenture authorizing the issuance of such

4 bonds.

5 (2) Bonds issued pursuant to this Section may be

6 payable on such dates and times as may be provided for by

7 the resolution or indenture authorizing the issuance of

8 such bonds; provided, however, that such bonds shall mature

9 no later than 30 years from the date of issuance.

10 (3) Bonds issued pursuant to this Section may be sold

11 pursuant to notice of sale and public bid or by negotiated

12 sale.

13 (4) Bonds shall be payable at a time or times, in the

14 denominations and form, including book entry form, either

15 coupon, registered, or both, and carry the registration and

16 privileges as to exchange, transfer or conversion, and

17 replacement of mutilated, lost, or destroyed bonds as the

18 resolution or trust indenture may provide.

19 (5) Bonds shall be payable in lawful money of the

20 United States at a designated place.

21 (6) Bonds shall be subject to the terms of purchase,

22 payment, redemption, refunding, or refinancing that the

23 resolution or trust indenture provides.

24 (7) Bonds shall be executed by the manual or facsimile

25 signatures of the officers of the Authority designated by

26 the Board, which signatures shall be valid at delivery even

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1 for one who has ceased to hold office.

2 (8) Bonds shall be sold at public or private sale in

3 the manner and upon the terms determined by the Authority.

4 (9) Bonds shall be issued in accordance with the

5 provisions of the Local Government Debt Reform Act.

6 (d) The Authority shall adopt a procurement program with

7 respect to contracts relating to underwriters, bond counsel,

8 financial advisors, and accountants. The program shall include

9 goals for the payment of not less than 30% of the total dollar

10 value of the fees from these contracts to minority-owned

11 businesses and female-owned businesses as defined in the

12 Business Enterprise for Minorities, Females, and Persons with

13 Disabilities Act. The Authority shall conduct outreach to

14 minority-owned businesses and female-owned businesses.

15 Outreach shall include, but is not limited to, advertisements

16 in periodicals and newspapers, mailings, and other appropriate

17 media. The Authority shall submit to the General Assembly a

18 comprehensive report that shall include, at a minimum, the

19 details of the procurement plan, outreach efforts, and the

20 results of the efforts to achieve goals for the payment of

21 fees.

22 (e) Subject to the Illinois Gambling Act and rules of the

23 Gaming Board regarding pledging of interests in holders of

24 owners licenses, any resolution or trust indenture may contain

25 provisions that may be a part of the contract with the holders

26 of the bonds as to the following:

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1 (1) Pledging, assigning, or directing the use,

2 investment, or disposition of revenues of the Authority or

3 proceeds or benefits of any contract, including without

4 limitation any rights in any casino management contract.

5 (2) The setting aside of loan funding deposits, debt

6 service reserves, replacement or operating reserves, cost

7 of issuance accounts and sinking funds, and the regulation,

8 investment, and disposition thereof.

9 (3) Limitations on the purposes to which or the

10 investments in which the proceeds of sale of any issue of

11 bonds or the Authority's revenues and receipts may be

12 applied or made.

13 (4) Limitations on the issue of additional bonds, the

14 terms upon which additional bonds may be issued and

15 secured, the terms upon which additional bonds may rank on

16 a parity with, or be subordinate or superior to, other

17 bonds.

18 (5) The refunding, advance refunding, or refinancing

19 of outstanding bonds.

20 (6) The procedure, if any, by which the terms of any

21 contract with bondholders may be altered or amended and the

22 amount of bonds and holders of which must consent thereto

23 and the manner in which consent shall be given.

24 (7) Defining the acts or omissions that shall

25 constitute a default in the duties of the Authority to

26 holders of bonds and providing the rights or remedies of

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1 such holders in the event of a default, which may include

2 provisions restricting individual rights of action by

3 bondholders.

4 (8) Providing for guarantees, pledges of property,

5 letters of credit, or other security, or insurance for the

6 benefit of bondholders.

7 (f) No member of the Casino Board, nor any person executing

8 the bonds, shall be liable personally on the bonds or subject

9 to any personal liability by reason of the issuance of the

10 bonds.

11 (g) The Authority may issue and secure bonds in accordance

12 with the provisions of the Local Government Credit Enhancement

13 Act.

14 (h) A pledge by the Authority of revenues and receipts as

15 security for an issue of bonds or for the performance of its

16 obligations under any casino management contract shall be valid

17 and binding from the time when the pledge is made. The revenues

18 and receipts pledged shall immediately be subject to the lien

19 of the pledge without any physical delivery or further act, and

20 the lien of any pledge shall be valid and binding against any

21 person having any claim of any kind in tort, contract, or

22 otherwise against the Authority, irrespective of whether the

23 person has notice. No resolution, trust indenture, management

24 agreement or financing statement, continuation statement, or

25 other instrument adopted or entered into by the Authority need

26 be filed or recorded in any public record other than the

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1 records of the Authority in order to perfect the lien against

2 third persons, regardless of any contrary provision of law.

3 (i) Bonds that are being paid or retired by issuance, sale,

4 or delivery of bonds, and bonds for which sufficient funds have

5 been deposited with the paying agent or trustee to provide for

6 payment of principal and interest thereon, and any redemption

7 premium, as provided in the authorizing resolution, shall not

8 be considered outstanding for the purposes of this subsection.

9 (j) The bonds of the Authority shall not be indebtedness of

10 the State. The bonds of the Authority are not general

11 obligations of the State and are not secured by a pledge of the

12 full faith and credit of the State and the holders of bonds of

13 the Authority may not require the application of State revenues

14 or funds to the payment of bonds of the Authority. The

15 foregoing non-recourse language must be printed in bold-face

16 type on the face of the bonds and in the preliminary and final

17 official statements on the bonds.

18 (k) The State of Illinois pledges and agrees with the

19 owners of the bonds that it will not limit or alter the rights

20 and powers vested in the Authority by this Act so as to impair

21 the terms of any contract made by the Authority with the owners

22 or in any way impair the rights and remedies of the owners

23 until the bonds, together with interest on them, and all costs

24 and expenses in connection with any action or proceedings by or

25 on behalf of the owners, are fully met and discharged. The

26 Authority is authorized to include this pledge and agreement in

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1 any contract with the owners of bonds issued under this

2 Section.

3 (l) No person holding an elective office in the City, in

4 Cook County, or in this State, holding a seat in the General

5 Assembly, or serving as a board member, trustee, officer, or

6 employee of the Authority, including the spouse of that person,

7 may receive a legal, banking, consulting, or other fee related

8 to the issuance of bonds. This prohibition shall also apply to

9 a company or firm that employs a person holding an elective

10 office in the City, in Cook County, or in this State, holding a

11 seat in the General Assembly, or serving as a board member,

12 trustee, officer, or employee of the Authority, including the

13 spouse of that person, if the person or his or her spouse has

14 greater than 7.5% ownership of the company or firm.

15 Section 1-85. Derivative products. With respect to all or

16 part of any issue of its bonds, the Authority may enter into

17 agreements or contracts with any necessary or appropriate

18 person, which will have the benefit of providing to the

19 Authority an interest rate basis, cash flow basis, or other

20 basis different from that provided in the bonds for the payment

21 of interest. Such agreements or contracts may include, without

22 limitation, agreements or contracts commonly known as

23 "interest rate swap agreements", "forward payment conversion

24 agreements", "futures", "options", "puts", or "calls" and

25 agreements or contracts providing for payments based on levels

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1 of or changes in interest rates, agreements or contracts to

2 exchange cash flows or a series of payments, or to hedge

3 payment, rate spread, or similar exposure. Any such agreement

4 or contract shall be solely an obligation or indebtedness of

5 the Authority and shall not be an obligation or indebtedness of

6 the State, nor shall any party thereto have any recourse

7 against the State in connection with the agreement or contract.

8 Section 1-90. Legality for investment. The State of

9 Illinois, all governmental entities, all public officers,

10 banks, bankers, trust companies, savings banks and

11 institutions, building and loan associations, savings and loan

12 associations, investment companies, and other persons carrying

13 on a banking business, insurance companies, insurance

14 associations, and other persons carrying on an insurance

15 business, and all executors, administrators, guardians,

16 trustees, and other fiduciaries may legally invest any sinking

17 funds, moneys, or other funds belonging to them or within their

18 control in any bonds issued under this Act. However, nothing in

19 this Section shall be construed as relieving any person or

20 entity from any duty of exercising reasonable care in selecting

21 securities for purchase or investment.

22 Section 1-105. Budgets and reporting.

23 (a) The Casino Board shall annually adopt a budget for each

24 fiscal year. The budget may be modified from time to time in

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1 the same manner and upon the same vote as it may be adopted.

2 The budget shall include the Authority's available funds and

3 estimated revenues and shall provide for payment of its

4 obligations and estimated expenditures for the fiscal year,

5 including, without limitation, expenditures for

6 administration, operation, maintenance and repairs, debt

7 service, and deposits into reserve and other funds and capital

8 projects.

9 (b) The Casino Board shall annually cause the finances of

10 the Authority to be audited by a firm of certified public

11 accountants selected by the Casino Board in accordance with the

12 rules of the Gaming Board and post on the Authority's Internet

13 website such financial information as is required to be posted

14 by all other owners licensees under the Illinois Gambling Act.

15 (c) The Casino Board shall, for each fiscal year, prepare

16 an annual report setting forth information concerning its

17 activities in the fiscal year and the status of the development

18 of the casino. The annual report shall include financial

19 information of the Authority consistent with that which is

20 required for all other owners licensees under the Illinois

21 Gambling Act, the budget for the succeeding fiscal year, and

22 the current capital plan as of the date of the report. Copies

23 of the annual report shall be made available to persons who

24 request them and shall be submitted not later than 120 days

25 after the end of the Authority's fiscal year or, if the audit

26 of the Authority's financial statements is not completed within

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1 120 days after the end of the Authority's fiscal year, as soon

2 as practical after completion of the audit, to the Governor,

3 the Mayor, the General Assembly, and the Commission on

4 Government Forecasting and Accountability.

5 Section 1-110. Deposit and withdrawal of funds.

6 (a) All funds deposited by the Authority in any bank or

7 savings and loan association shall be placed in the name of the

8 Authority and shall be withdrawn or paid out only by check or

9 draft upon the bank or savings and loan association, signed by

10 2 officers or employees designated by the Casino Board.

11 Notwithstanding any other provision of this Section, the Casino

12 Board may designate any of its members or any officer or

13 employee of the Authority to authorize the wire transfer of

14 funds deposited by the secretary-treasurer of funds in a bank

15 or savings and loan association for the payment of payroll and

16 employee benefits-related expenses.

17 No bank or savings and loan association shall receive

18 public funds as permitted by this Section unless it has

19 complied with the requirements established pursuant to Section

20 6 of the Public Funds Investment Act.

21 (b) If any officer or employee whose signature appears upon

22 any check or draft issued pursuant to this Act ceases (after

23 attaching his signature) to hold his or her office before the

24 delivery of such a check or draft to the payee, his or her

25 signature shall nevertheless be valid and sufficient for all

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1 purposes with the same effect as if he or she had remained in

2 office until delivery thereof.

3 Section 1-112. Contracts with the Authority or casino

4 operator licensee; disclosure requirements.

5 (a) A bidder, respondent, offeror, or contractor for

6 contracts with the Authority or casino operator licensee shall

7 disclose the identity of all officers and directors and every

8 owner, beneficiary, or person with beneficial interest of more

9 than 1% or shareholder entitled to receive more than 1% of the

10 total distributable income of any corporation having any

11 interest in the contract or in the bidder, respondent, offeror,

12 or contractor. The disclosure shall be in writing and attested

13 to by an owner, trustee, corporate official, or agent. If stock

14 in a corporation is publicly traded and there is no readily

15 known individual having greater than a 1% interest, then a

16 statement to that effect attested to by an officer or agent of

17 the corporation shall fulfill the disclosure statement

18 requirement of this Section. A bidder, respondent, offeror, or

19 contractor shall notify the Authority of any changes in

20 officers, directors, ownership, or individuals having a

21 beneficial interest of more than 1%. Notwithstanding the

22 provisions of this subsection (a), the Gaming Board may adopt

23 rules in connection with contractors for contracts with the

24 Authority or the casino operator licensee.

25 (b) A bidder, respondent, offeror, or contractor for

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1 contracts with an annual value of $25,000 or more or for a

2 period to exceed one year shall disclose all political

3 contributions of the bidder, respondent, offeror, or

4 contractor and any affiliated person or entity. Disclosure

5 shall include at least the names and addresses of the

6 contributors and the dollar amounts of any contributions to any

7 political committee made within the previous 2 years. The

8 disclosure must be submitted to the Gaming Board with a copy of

9 the contract. All such disclosures shall be posted on the

10 websites of the Authority and the Gaming Board.

11 (c) As used in this Section:

12 "Contribution" means contribution as defined in Section

13 9-1.4 of the Election Code.

14 "Affiliated person" means (i) any person with any ownership

15 interest or distributive share of the bidding, responding, or

16 contracting entity in excess of 1%, (ii) executive employees of

17 the bidding, responding, or contracting entity, and (iii) the

18 spouse, minor children, and parents of any such persons.

19 "Affiliated entity" means (i) any parent or subsidiary of

20 the bidding or contracting entity, (ii) any member of the same

21 unitary business group, or (iii) any political committee for

22 which the bidding, responding, or contracting entity is the

23 sponsoring entity.

24 (d) The Gaming Board may direct the Authority or a casino

25 operator licensee to void a contract if a violation of this

26 Section occurs. The Authority may direct a casino operator

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1 licensee to void a contract if a violation of this Section

2 occurs.

3 (e) All contracts pertaining to the actual operation of the

4 casino and related gaming activities shall be entered into by

5 the casino operator licensee and not the Authority and shall be

6 subject to the regulation, oversight, and approval of the

7 Gaming Board, applying the same regulation, oversight, and

8 approval requirements as would be applied to any other owners

9 licensee under the Illinois Gambling Act.

10 Section 1-115. Purchasing.

11 (a) The Casino Board shall designate an officer of the

12 Authority to serve as the Chief Procurement Officer for the

13 Authority. The Chief Procurement Officer shall have all powers

14 and duties set forth in Section 15 of Division 10 of Article 8

15 of the Illinois Municipal Code. Except as otherwise provided in

16 this Section, the Chief Procurement Officer of the Authority

17 shall conduct procurements on behalf of the Authority subject

18 to Title 2, Chapter 92 of the Municipal Code of Chicago, which

19 by its terms incorporates Division 10 of Article 8 of the

20 Illinois Municipal Code.

21 (b) All contracts for amounts greater than $25,000 must be

22 approved by the Casino Board and executed by the chairperson of

23 the Casino Board and executive director of the Authority.

24 Contracts for amounts of $25,000 or less may be approved and

25 executed by the Chief Procurement Officer for the Authority and

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1 executive director of the Authority, with approval by the chief

2 legal counsel for the Authority as to form and legality.

3 (c) All construction contracts and contracts for supplies,

4 materials, equipment, and services for amounts greater than

5 $25,000 shall be let by a competitive selection process to the

6 lowest responsible proposer, after advertising for proposals,

7 except for the following:

8 (1) when repair parts, accessories, equipment, or

9 services are required for equipment or services previously

10 furnished or contracted for;

11 (2) when services such as water, light, heat, power,

12 telephone (other than long-distance service), or telegraph

13 are required;

14 (3) casino management contracts, which shall be

15 awarded as set forth in Section 1-45 of this Act;

16 (4) contracts where there is only one economically

17 feasible source;

18 (5) when a purchase is needed on an immediate,

19 emergency basis because there exists a threat to public

20 health or public safety, or when immediate expenditure is

21 necessary for repairs to Authority property in order to

22 protect against further loss of or damage to Authority

23 property, to prevent or minimize serious disruption in

24 Authority services or to ensure the integrity of Authority

25 records;

26 (6) contracts for professional services other than for

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1 management of the casino, except such contracts described

2 in subsection (d) of this Section; and

3 (7) contracts for the use, purchase, delivery,

4 movement, or installation of (i) data processing

5 equipment, software, and services and (ii)

6 telecommunications equipment, software, and services.

7 (d) Contracts for professional services for a term of more

8 than one year or contracts that may require payment in excess

9 of $25,000 in one year shall be let by a competitive bidding

10 process to the most highly qualified firm that agrees to

11 compensation and other terms of engagement that are both

12 reasonable and acceptable to the Casino Board.

13 (e) All contracts involving less than $25,000 shall be let

14 by competitive selection process whenever possible, and in any

15 event in a manner calculated to ensure the best interests of

16 the public.

17 (f) In determining the responsibility of any proposer, the

18 Authority may take into account the proposer's (or an

19 individual having a beneficial interest, directly or

20 indirectly, of more than 1% in such proposing entity) past

21 record of dealings with the Authority, the proposer's

22 experience, adequacy of equipment, and ability to complete

23 performance within the time set, and other factors besides

24 financial responsibility. No such contract shall be awarded to

25 any proposer other than the lowest proposer (in case of

26 purchase or expenditure) unless authorized or approved by a

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1 vote of at least 3 members of the Casino Board and such action

2 is accompanied by a written statement setting forth the reasons

3 for not awarding the contract to the highest or lowest

4 proposer, as the case may be. The statement shall be kept on

5 file in the principal office of the Authority and open to

6 public inspection.

7 (g) The Authority shall have the right to reject all

8 proposals and to re-advertise for proposals. If after any such

9 re-advertisement, no responsible and satisfactory proposals,

10 within the terms of the re-advertisement, is received, the

11 Authority may award such contract without competitive

12 selection. The contract must not be less advantageous to the

13 Authority than any valid proposal received pursuant to

14 advertisement.

15 (h) Advertisements for proposals and re-proposals shall be

16 published at least once in a daily newspaper of general

17 circulation published in the City at least 10 calendar days

18 before the time for receiving proposals and in an online

19 bulletin published on the Authority's website. Such

20 advertisements shall state the time and place for receiving and

21 opening of proposals and, by reference to plans and

22 specifications on file at the time of the first publication or

23 in the advertisement itself, shall describe the character of

24 the proposed contract in sufficient detail to fully advise

25 prospective proposers of their obligations and to ensure free

26 and open competitive selection.

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1 (i) All proposals in response to advertisements shall be

2 sealed and shall be publicly opened by the Authority. All

3 proposers shall be entitled to be present in person or by

4 representatives. Cash or a certified or satisfactory cashier's

5 check, as a deposit of good faith, in a reasonable amount to be

6 fixed by the Authority before advertising for proposals, shall

7 be required with the proposal. A bond for faithful performance

8 of the contract with surety or sureties satisfactory to the

9 Authority and adequate insurance may be required in reasonable

10 amounts to be fixed by the Authority before advertising for

11 proposals.

12 (j) The contract shall be awarded as promptly as possible

13 after the opening of proposals. The proposal of the successful

14 proposer, as well as the bids of the unsuccessful proposers,

15 shall be placed on file and be open to public inspection

16 subject to the exemptions from disclosure provided under

17 Section 7 of the Freedom of Information Act. All proposals

18 shall be void if any disclosure of the terms of any proposals

19 in response to an advertisement is made or permitted to be made

20 by the Authority before the time fixed for opening proposals.

21 (k) Notice of each and every contract that is offered,

22 including renegotiated contracts and change orders, shall be

23 published in an online bulletin. The online bulletin must

24 include at least the date first offered, the date submission of

25 offers is due, the location that offers are to be submitted to,

26 a brief purchase description, the method of source selection,

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1 information of how to obtain a comprehensive purchase

2 description and any disclosure and contract forms, and

3 encouragement to prospective vendors to hire qualified

4 veterans, as defined by Section 45-67 of the Illinois

5 Procurement Code, and Illinois residents discharged from any

6 Illinois adult correctional center subject to Gaming Board

7 licensing and eligibility rules. Notice of each and every

8 contract that is let or awarded, including renegotiated

9 contracts and change orders, shall be published in the online

10 bulletin and must include at least all of the information

11 specified in this subsection (k), as well as the name of the

12 successful responsible proposer or offeror, the contract

13 price, and the number of unsuccessful responsive proposers and

14 any other disclosure specified in this Section. This notice

15 must be posted in the online electronic bulletin prior to

16 execution of the contract.

17 Section 1-130. Affirmative action and equal opportunity

18 obligations of Authority.

19 (a) The Authority is subject to the requirements of Article

20 IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720

21 inclusive) of the Chicago Municipal Code, as now or hereafter

22 amended, renumbered, or succeeded, concerning a Minority-Owned

23 and Women-Owned Business Enterprise Procurement Program for

24 construction contracts, and Section 2-92-420 et seq. of the

25 Chicago Municipal Code, as now or hereafter amended,

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1 renumbered, or succeeded, concerning a Minority-Owned and

2 Women-Owned Business Enterprise Procurement Program.

3 (b) The Authority is authorized to enter into agreements

4 with contractors' associations, labor unions, and the

5 contractors working on the development of the casino to

6 establish an apprenticeship preparedness training program to

7 provide for an increase in the number of minority and female

8 journeymen and apprentices in the building trades and to enter

9 into agreements with community college districts or other

10 public or private institutions to provide readiness training.

11 The Authority is further authorized to enter into contracts

12 with public and private educational institutions and persons in

13 the gaming, entertainment, hospitality, and tourism industries

14 to provide training for employment in those industries.

15 Section 1-135. Transfer of interest. Neither the Authority

16 nor the City may sell, lease, rent, transfer, exchange, or

17 otherwise convey any interest that they have in the casino

18 without prior approval of the General Assembly.

19 Section 1-140. Home rule. The regulation and licensing of

20 casinos and casino gaming, casino gaming facilities, and casino

21 operator licensees under this Act are exclusive powers and

22 functions of the State. A home rule unit may not regulate or

23 license casinos, casino gaming, casino gaming facilities, or

24 casino operator licensees under this Act, except as provided

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1 under this Act. This Section is a denial and limitation of home

2 rule powers and functions under subsection (h) of Section 6 of

3 Article VII of the Illinois Constitution.

4 ARTICLE 90.

5 Section 90-1. Findings. The General Assembly makes all of

6 the following findings:

7 (1) That the cumulative reduction to pre-K through 12

8 education funding since 2009 is approximately

9 $861,000,000.

10 (2) That general state aid to Illinois common schools

11 has been underfunded as a result of budget cuts, resulting

12 in pro-rated payments to school districts that are less

13 than the foundational level of $6,119 per pupil, which

14 represents the minimum each pupil needs to be educated.

15 (3) That a significant infusion of new revenue is

16 necessary in order to fully fund the foundation level and

17 to maintain and support education in Illinois.

18 (4) That the decline of the Illinois horse racing and

19 breeding program, a $2.5 billion industry, would be

20 reversed if this amendatory Act of the 100th General

21 Assembly would be enacted.

22 (5) That the Illinois horse racing industry is on the

23 verge of extinction due to fierce competition from fully

24 developed horse racing and gaming operations in other

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1 states.

2 (6) That allowing the State's horse racing venues,

3 currently licensed gaming destinations, to maximize their

4 capacities with gaming machines, would generate up to $120

5 million to $200 million for the State in the form of extra

6 licensing fees, plus an additional $100 million to $300

7 million in recurring annual tax revenue for the State to

8 help ensure that school, road, and other building projects

9 promised under the capital plan occur on schedule.

10 (7) That Illinois agriculture and other businesses

11 that support and supply the horse racing industry, already

12 a sector that employs over 37,000 Illinoisans, also stand

13 to substantially benefit and would be much more likely to

14 create additional jobs should Illinois horse racing once

15 again become competitive with other states.

16 (8) That by keeping these projects on track, the State

17 can be sure that significant job and economic growth will

18 in fact result from the previously enacted legislation.

19 (9) That gaming machines at Illinois horse racing

20 tracks would create an estimated 1,200 to 1,500 permanent

21 jobs, and an estimated capital investment of up to $200

22 million to $400 million at these race tracks would prompt

23 additional trade organization jobs necessary to construct

24 new facilities or remodel race tracks to operate electronic

25 gaming.

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1 Section 90-3. The State Officials and Employees Ethics Act

2 is amended by changing Sections 5-45 and 20-10 as follows:

3 (5 ILCS 430/5-45)

4 Sec. 5-45. Procurement; revolving door prohibition.

5 (a) No former officer, member, or State employee, or spouse

6 or immediate family member living with such person, shall,

7 within a period of one year immediately after termination of

8 State employment, knowingly accept employment or receive

9 compensation or fees for services from a person or entity if

10 the officer, member, or State employee, during the year

11 immediately preceding termination of State employment,

12 participated personally and substantially in the award of State

13 contracts, or the issuance of State contract change orders,

14 with a cumulative value of $25,000 or more to the person or

15 entity, or its parent or subsidiary.

16 (b) No former officer of the executive branch or State

17 employee of the executive branch with regulatory or licensing

18 authority, or spouse or immediate family member living with

19 such person, shall, within a period of one year immediately

20 after termination of State employment, knowingly accept

21 employment or receive compensation or fees for services from a

22 person or entity if the officer or State employee, during the

23 year immediately preceding termination of State employment,

24 participated personally and substantially in making a

25 regulatory or licensing decision that directly applied to the

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1 person or entity, or its parent or subsidiary.

2 (c) Within 6 months after the effective date of this

3 amendatory Act of the 96th General Assembly, each executive

4 branch constitutional officer and legislative leader, the

5 Auditor General, and the Joint Committee on Legislative Support

6 Services shall adopt a policy delineating which State positions

7 under his or her jurisdiction and control, by the nature of

8 their duties, may have the authority to participate personally

9 and substantially in the award of State contracts or in

10 regulatory or licensing decisions. The Governor shall adopt

11 such a policy for all State employees of the executive branch

12 not under the jurisdiction and control of any other executive

13 branch constitutional officer.

14 The policies required under subsection (c) of this Section

15 shall be filed with the appropriate ethics commission

16 established under this Act or, for the Auditor General, with

17 the Office of the Auditor General.

18 (d) Each Inspector General shall have the authority to

19 determine that additional State positions under his or her

20 jurisdiction, not otherwise subject to the policies required by

21 subsection (c) of this Section, are nonetheless subject to the

22 notification requirement of subsection (f) below due to their

23 involvement in the award of State contracts or in regulatory or

24 licensing decisions.

25 (e) The Joint Committee on Legislative Support Services,

26 the Auditor General, and each of the executive branch

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1 constitutional officers and legislative leaders subject to

2 subsection (c) of this Section shall provide written

3 notification to all employees in positions subject to the

4 policies required by subsection (c) or a determination made

5 under subsection (d): (1) upon hiring, promotion, or transfer

6 into the relevant position; and (2) at the time the employee's

7 duties are changed in such a way as to qualify that employee.

8 An employee receiving notification must certify in writing that

9 the person was advised of the prohibition and the requirement

10 to notify the appropriate Inspector General in subsection (f).

11 (f) Any State employee in a position subject to the

12 policies required by subsection (c) or to a determination under

13 subsection (d), but who does not fall within the prohibition of

14 subsection (h) below, who is offered non-State employment

15 during State employment or within a period of one year

16 immediately after termination of State employment shall, prior

17 to accepting such non-State employment, notify the appropriate

18 Inspector General. Within 10 calendar days after receiving

19 notification from an employee in a position subject to the

20 policies required by subsection (c), such Inspector General

21 shall make a determination as to whether the State employee is

22 restricted from accepting such employment by subsection (a) or

23 (b). In making a determination, in addition to any other

24 relevant information, an Inspector General shall assess the

25 effect of the prospective employment or relationship upon

26 decisions referred to in subsections (a) and (b), based on the

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1 totality of the participation by the former officer, member, or

2 State employee in those decisions. A determination by an

3 Inspector General must be in writing, signed and dated by the

4 Inspector General, and delivered to the subject of the

5 determination within 10 calendar days or the person is deemed

6 eligible for the employment opportunity. For purposes of this

7 subsection, "appropriate Inspector General" means (i) for

8 members and employees of the legislative branch, the

9 Legislative Inspector General; (ii) for the Auditor General and

10 employees of the Office of the Auditor General, the Inspector

11 General provided for in Section 30-5 of this Act; and (iii) for

12 executive branch officers and employees, the Inspector General

13 having jurisdiction over the officer or employee. Notice of any

14 determination of an Inspector General and of any such appeal

15 shall be given to the ultimate jurisdictional authority, the

16 Attorney General, and the Executive Ethics Commission.

17 (g) An Inspector General's determination regarding

18 restrictions under subsection (a) or (b) may be appealed to the

19 appropriate Ethics Commission by the person subject to the

20 decision or the Attorney General no later than the 10th

21 calendar day after the date of the determination.

22 On appeal, the Ethics Commission or Auditor General shall

23 seek, accept, and consider written public comments regarding a

24 determination. In deciding whether to uphold an Inspector

25 General's determination, the appropriate Ethics Commission or

26 Auditor General shall assess, in addition to any other relevant

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1 information, the effect of the prospective employment or

2 relationship upon the decisions referred to in subsections (a)

3 and (b), based on the totality of the participation by the

4 former officer, member, or State employee in those decisions.

5 The Ethics Commission shall decide whether to uphold an

6 Inspector General's determination within 10 calendar days or

7 the person is deemed eligible for the employment opportunity.

8 (h) The following officers, members, or State employees

9 shall not, within a period of one year immediately after

10 termination of office or State employment, knowingly accept

11 employment or receive compensation or fees for services from a

12 person or entity if the person or entity or its parent or

13 subsidiary, during the year immediately preceding termination

14 of State employment, was a party to a State contract or

15 contracts with a cumulative value of $25,000 or more involving

16 the officer, member, or State employee's State agency, or was

17 the subject of a regulatory or licensing decision involving the

18 officer, member, or State employee's State agency, regardless

19 of whether he or she participated personally and substantially

20 in the award of the State contract or contracts or the making

21 of the regulatory or licensing decision in question:

22 (1) members or officers;

23 (2) members of a commission or board created by the

24 Illinois Constitution;

25 (3) persons whose appointment to office is subject to

26 the advice and consent of the Senate;

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1 (4) the head of a department, commission, board,

2 division, bureau, authority, or other administrative unit

3 within the government of this State;

4 (5) chief procurement officers, State purchasing

5 officers, and their designees whose duties are directly

6 related to State procurement; ~~and~~

7 (6) chiefs of staff, deputy chiefs of staff, associate

8 chiefs of staff, assistant chiefs of staff, and deputy

9 governors; ~~.~~

10 (7) employees of the Illinois Racing Board; and

11 (8) employees of the Illinois Gaming Board.

12 (i) For the purposes of this Section, with respect to

13 officers or employees of a regional transit board, as defined

14 in this Act, the phrase "person or entity" does not include:

15 (i) the United States government, (ii) the State, (iii)

16 municipalities, as defined under Article VII, Section 1 of the

17 Illinois Constitution, (iv) units of local government, as

18 defined under Article VII, Section 1 of the Illinois

19 Constitution, or (v) school districts.

20 (Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)

21 (5 ILCS 430/20-10)

22 Sec. 20-10. Offices of Executive Inspectors General.

23 (a) Six ~~Five~~ independent Offices of the Executive Inspector

24 General are created, one each for the Governor, the Attorney

25 General, the Secretary of State, the Comptroller, and the

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1 Treasurer and one for gaming activities. Each Office shall be

2 under the direction and supervision of an Executive Inspector

3 General and shall be a fully independent office with separate

4 appropriations.

5 (b) The Governor, Attorney General, Secretary of State,

6 Comptroller, and Treasurer shall each appoint an Executive

7 Inspector General, and the Governor shall appoint an Executive

8 Inspector General for gaming activities. Each appointment must

9 be madewithout regard to political affiliation and solely on

10 the basis of integrity and demonstrated ability. Appointments

11 shall be made by and with the advice and consent of the Senate

12 by three-fifths of the elected members concurring by record

13 vote. Any nomination not acted upon by the Senate within 60

14 session days of the receipt thereof shall be deemed to have

15 received the advice and consent of the Senate. If, during a

16 recess of the Senate, there is a vacancy in an office of

17 Executive Inspector General, the appointing authority shall

18 make a temporary appointment until the next meeting of the

19 Senate when the appointing authority shall make a nomination to

20 fill that office. No person rejected for an office of Executive

21 Inspector General shall, except by the Senate's request, be

22 nominated again for that office at the same session of the

23 Senate or be appointed to that office during a recess of that

24 Senate.

25 Nothing in this Article precludes the appointment by the

26 Governor, Attorney General, Secretary of State, Comptroller,

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1 or Treasurer of any other inspector general required or

2 permitted by law. The Governor, Attorney General, Secretary of

3 State, Comptroller, and Treasurer each may appoint an existing

4 inspector general as the Executive Inspector General required

5 by this Article, provided that such an inspector general is not

6 prohibited by law, rule, jurisdiction, qualification, or

7 interest from serving as the Executive Inspector General

8 required by this Article. An appointing authority may not

9 appoint a relative as an Executive Inspector General.

10 Each Executive Inspector General shall have the following

11 qualifications:

12 (1) has not been convicted of any felony under the laws

13 of this State, another State, or the United States;

14 (2) has earned a baccalaureate degree from an

15 institution of higher education; and

16 (3) has 5 or more years of cumulative service (A) with

17 a federal, State, or local law enforcement agency, at least

18 2 years of which have been in a progressive investigatory

19 capacity; (B) as a federal, State, or local prosecutor; (C)

20 as a senior manager or executive of a federal, State, or

21 local agency; (D) as a member, an officer, or a State or

22 federal judge; or (E) representing any combination of (A)

23 through (D).

24 The term of each initial Executive Inspector General shall

25 commence upon qualification and shall run through June 30,

26 2008. The initial appointments shall be made within 60 days

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1 after the effective date of this Act.

2 After the initial term, each Executive Inspector General

3 shall serve for 5-year terms commencing on July 1 of the year

4 of appointment and running through June 30 of the fifth

5 following year. An Executive Inspector General may be

6 reappointed to one or more subsequent terms.

7 A vacancy occurring other than at the end of a term shall

8 be filled by the appointing authority only for the balance of

9 the term of the Executive Inspector General whose office is

10 vacant.

11 Terms shall run regardless of whether the position is

12 filled.

13 (c) The Executive Inspector General appointed by the

14 Attorney General shall have jurisdiction over the Attorney

15 General and all officers and employees of, and vendors and

16 others doing business with, State agencies within the

17 jurisdiction of the Attorney General. The Executive Inspector

18 General appointed by the Secretary of State shall have

19 jurisdiction over the Secretary of State and all officers and

20 employees of, and vendors and others doing business with, State

21 agencies within the jurisdiction of the Secretary of State. The

22 Executive Inspector General appointed by the Comptroller shall

23 have jurisdiction over the Comptroller and all officers and

24 employees of, and vendors and others doing business with, State

25 agencies within the jurisdiction of the Comptroller. The

26 Executive Inspector General appointed by the Treasurer shall

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1 have jurisdiction over the Treasurer and all officers and

2 employees of, and vendors and others doing business with, State

3 agencies within the jurisdiction of the Treasurer. The

4 Executive Inspector General appointed by the Governor shall

5 have jurisdiction over (i) the Governor, (ii) the Lieutenant

6 Governor, (iii) all officers and employees of, and vendors and

7 others doing business with, executive branch State agencies

8 under the jurisdiction of the Executive Ethics Commission and

9 not within the jurisdiction of the Attorney General, the

10 Secretary of State, the Comptroller, ~~or~~ the Treasurer, or the

11 Executive Inspector General for gaming activities, and (iv) all

12 board members and employees of the Regional Transit Boards and

13 all vendors and others doing business with the Regional Transit

14 Boards.The Executive Inspector General for gaming activities

15 appointed by the Governor has jurisdiction over the Illinois

16 Gaming Board, all officers and employees of the Illinois Gaming

17 Board, and all activities of the Illinois Gaming Board.

18 The jurisdiction of each Executive Inspector General is to

19 investigate allegations of fraud, waste, abuse, mismanagement,

20 misconduct, nonfeasance, misfeasance, malfeasance, or

21 violations of this Act or violations of other related laws and

22 rules.

23 (d) The compensation for each Executive Inspector General

24 shall be determined by the Executive Ethics Commission and

25 shall be made from appropriations made to the Comptroller for

26 this purpose. Subject to Section 20-45 of this Act, each

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1 Executive Inspector General has full authority to organize his

2 or her Office of the Executive Inspector General, including the

3 employment and determination of the compensation of staff, such

4 as deputies, assistants, and other employees, as

5 appropriations permit. A separate appropriation shall be made

6 for each Office of Executive Inspector General.

7 (e) No Executive Inspector General or employee of the

8 Office of the Executive Inspector General may, during his or

9 her term of appointment or employment:

10 (1) become a candidate for any elective office;

11 (2) hold any other elected or appointed public office

12 except for appointments on governmental advisory boards or

13 study commissions or as otherwise expressly authorized by

14 law;

15 (3) be actively involved in the affairs of any

16 political party or political organization; or

17 (4) advocate for the appointment of another person to

18 an appointed or elected office or position or actively

19 participate in any campaign for any elective office.

20 In this subsection an appointed public office means a

21 position authorized by law that is filled by an appointing

22 authority as provided by law and does not include employment by

23 hiring in the ordinary course of business.

24 (e-1) No Executive Inspector General or employee of the

25 Office of the Executive Inspector General may, for one year

26 after the termination of his or her appointment or employment:

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1 (1) become a candidate for any elective office;

2 (2) hold any elected public office; or

3 (3) hold any appointed State, county, or local judicial

4 office.

5 (e-2) The requirements of item (3) of subsection (e-1) may

6 be waived by the Executive Ethics Commission.

7 (f) An Executive Inspector General may be removed only for

8 cause and may be removed only by the appointing~~constitutional~~

9 officer. At the time of the removal, the appointing

10 ~~constitutional~~officer must report to the Executive Ethics

11 Commission the justification for the removal.

12 (Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)

13 Section 90-5. The Alcoholism and Other Drug Abuse and

14 Dependency Act is amended by changing Section 5-20 as follows:

15 (20 ILCS 301/5-20)

16 Sec. 5-20. Compulsive gambling program.

17 (a) Subject to appropriation, the Department shall

18 establish a program for public education, research, and

19 training regarding problem and compulsive gambling and the

20 treatment and prevention of problem and compulsive gambling.

21 Subject to specific appropriation for these stated purposes,

22 the program must include all of the following:

23 (1) Establishment and maintenance of a toll-free "800"

24 telephone number to provide crisis counseling and referral

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1 services to families experiencing difficulty as a result of

2 problem or compulsive gambling.

3 (2) Promotion of public awareness regarding the

4 recognition and prevention of problem and compulsive

5 gambling.

6 (3) Facilitation, through in-service training and

7 other means, of the availability of effective assistance

8 programs for problem and compulsive gamblers.

9 (4) Conducting studies to identify adults and

10 juveniles in this State who are, or who are at risk of

11 becoming, problem or compulsive gamblers.

12 (b) Subject to appropriation, the Department shall either

13 establish and maintain the program or contract with a private

14 or public entity for the establishment and maintenance of the

15 program. Subject to appropriation, either the Department or the

16 private or public entity shall implement the toll-free

17 telephone number, promote public awareness, and conduct

18 in-service training concerning problem and compulsive

19 gambling.

20 (c) Subject to appropriation, the Department shall produce

21 and supply the signs specified in Section 10.7 of the Illinois

22 Lottery Law, Section 34.1 of the Illinois Horse Racing Act of

23 1975, Section 4.3 of the Bingo License and Tax Act, Section 8.1

24 of the Charitable Games Act, and Section 13.1 of the Illinois

25 ~~Riverboat~~Gambling Act.

26 (Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)

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1 Section 90-6. The Department of Commerce and Economic

2 Opportunity Law of the Civil Administrative Code of Illinois is

3 amended by adding Sections 605-530 and 605-535 as follows:

4 (20 ILCS 605/605-530 new)

5 Sec. 605-530. The Depressed Communities Economic

6 Development Board.

7 (a) The Depressed Communities Economic Development Board

8 is created as an advisory board within the Department of

9 Commerce and Economic Opportunity. The Board shall consist of

10 the following members:

11 (1) 3 members appointed by the Governor, one of whom

12 shall be appointed to serve an initial term of one year and

13 2 of whom shall be appointed to serve an initial term of 2

14 years;

15 (2) 2 members appointed by the Speaker of the House of

16 Representatives, one of whom shall be appointed to serve an

17 initial term of one year and one of whom shall be appointed

18 to serve an initial term of 2 years;

19 (3) 2 members appointed by the President of the Senate,

20 one of whom shall be appointed to serve an initial term of

21 one year and one of whom shall be appointed to serve an

22 initial term of 2 years;

23 (4) 2 members appointed by the Minority Leader of the

24 House of Representatives, one of whom shall be appointed to

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1 serve an initial term of one year and one of whom shall be

2 appointed to serve an initial term of 2 years; and

3 (5) 2 members appointed by the Minority Leader of the

4 Senate, one of whom shall be appointed to serve an initial

5 term of one year and one of whom shall be appointed to

6 serve an initial term of 2 years.

7 The members of the Board shall elect a member to serve as

8 chair of the Board. The members of the Board shall reflect the

9 composition of the Illinois population with regard to ethnic

10 and racial composition.

11 After the initial terms, each member shall be appointed to

12 serve a term of 2 years and until his or her successor has been

13 appointed and assumes office. If a vacancy occurs in the Board

14 membership, then the vacancy shall be filled in the same manner

15 as the initial appointment. No member of the Board shall, at

16 the time of his or her appointment or within 2 years before the

17 appointment, hold elected office or be appointed to a State

18 board, commission, or agency. All Board members are subject to

19 the State Officials and Employees Ethics Act.

20 (b) Board members shall serve without compensation, but may

21 be reimbursed for their reasonable travel expenses from funds

22 available for that purpose. The Department of Commerce and

23 Economic Opportunity shall provide staff and administrative

24 support services to the Board.

25 (c) The Board must make recommendations, which must be

26 approved by a majority of the Board, to the Department of

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1 Commerce and Economic Opportunity concerning the award of

2 grants from amounts appropriated to the Department from the

3 Depressed Communities Economic Development Fund, a special

4 fund created in the State treasury. The Department must make

5 grants to public or private entities submitting proposals to

6 the Board to revitalize an Illinois depressed community. Grants

7 may be used by these entities only for those purposes

8 conditioned with the grant. For the purposes of this subsection

9 (c), plans for revitalizing an Illinois depressed community

10 include plans intended to curb high levels of poverty,

11 unemployment, job and population loss, and general distress. An

12 Illinois depressed community is an area where the poverty rate,

13 as determined by using the most recent data released by the

14 United States Census Bureau, is at least 3% greater than the

15 State poverty rate as determined by using the most recent data

16 released by the United States Census Bureau.

17 (20 ILCS 605/605-535 new)

18 Sec. 605-535. The Commission on the Future of Economic

19 Development of the Latino Community.

20 (a) There is hereby created the Commission on the Future of

21 Economic Development of the Latino Community within the

22 Department. The purpose of the Commission shall be to maintain

23 and develop the economy of Latinos and to provide opportunities

24 for this community, which will enhance and expand the quality

25 of their lives.

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1 The Commission shall concentrate its major efforts on

2 strategic planning, policy research and analysis, advocacy,

3 evaluation, and promoting coordination and collaboration.

4 During each regular legislative session, the Commission

5 must consult with appropriate legislative committees about the

6 State's economic development needs and opportunities in the

7 Latino community.

8 By October 1st of each even-numbered year, the Commission

9 must submit to the Governor and the General Assembly a biennial

10 comprehensive statewide economic development strategy for the

11 Latino community with a report on progress from the previous

12 comprehensive strategy.

13 The comprehensive statewide economic development strategy

14 may include, but is not limited to:

15 (1) an assessment of the Latino community's economic

16 vitality;

17 (2) recommended goals, objectives, and priorities for

18 the next biennium and the future;

19 (3) a common set of outcomes and benchmarks for the

20 economic development system as a whole for the Latino

21 community;

22 (4) recommendations for removing barriers for Latinos

23 in employment;

24 (5) an inventory of existing relevant programs

25 compiled by the Commission from materials submitted by

26 agencies;

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1 (6) recommendations for expanding, discontinuing, or

2 redirecting existing programs or adding new programs to

3 better serve the Latino community; and

4 (7) recommendations of best practices and public and

5 private sector roles in implementing the comprehensive

6 statewide economic development strategy.

7 In developing the biennial statewide economic development

8 strategy, goals, objectives, priorities, and recommendations,

9 the Commission shall consult, collaborate, and coordinate with

10 relevant State agencies, private sector business, nonprofit

11 organizations involved in economic development, trade

12 associations, associate development organizations, and

13 relevant local organizations in order to avoid duplication of

14 effort.

15 State agencies shall cooperate with the Commission and

16 provide information as the Commission may reasonably request.

17 The Commission shall review and make budget

18 recommendations to the Governor's Office of Management and

19 Budget and the General Assembly in areas relating to the

20 economic development in the State's Latino community.

21 The Commission shall evaluate its own performance on a

22 regular basis.

23 The Commission may accept gifts, grants, donations,

24 sponsorships, or contributions from any federal, State, or

25 local governmental agency or program, or any private source,

26 and expend the same for any purpose consistent with this

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1 Section.

2 (b) The Commission shall consist of 12 voting members,

3 appointed by the Governor, 4 of whom shall be appointed to

4 serve an initial term of one year, 4 of whom shall be appointed

5 to serve an initial term of 2 years, and 4 of whom shall be

6 appointed to serve an initial term of 3 years. After the

7 initial term, each member shall be appointed to a term of 3

8 years. Members of the Commission shall serve at the pleasure of

9 the Governor for not more than 2 consecutive 3-year terms. In

10 appointing members, the Governor shall appoint individuals

11 from the following private industry sectors:

12 (1) production agriculture;

13 (2) at least 2 individuals from manufacturing, one of

14 whom shall represent a company with no more than 75

15 employees;

16 (3) transportation, construction, and logistics;

17 (4) travel and tourism;

18 (5) financial services and insurance;

19 (6) information technology and communications; and

20 (7) biotechnology.

21 The members of the Commission shall choose a member to

22 serve as chair of the Commission. The members of the Commission

23 shall be representative, to the extent possible, of the various

24 geographic areas of the State. The Director shall serve as an

25 ad hoc nonvoting member of the Commission. Vacancies shall be

26 filled in the same manner as the original appointments. The

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1 members of the Commission shall serve without compensation.

2 (c) The Commission shall meet at least 4 times per year,

3 with at least one meeting each calendar quarter, at the call of

4 the director or 4 voting members of the Commission. The staff

5 and support for the Commission shall be provided by the

6 Department.

7 (d) The Commission and Department are encouraged to involve

8 other essential groups in the work of the Commission,

9 including, but not limited to:

10 (1) public universities;

11 (2) community colleges;

12 (3) other educational institutions; and

13 (4) the Department of Labor.

14 (e) The Commission shall make recommendations, which must

15 be approved by a majority of the members of the Commission, to

16 the Department concerning the award of grants from amounts

17 appropriated to the Department from the Latino Community

18 Economic Development Fund, a special fund in the State

19 treasury. The Department shall make grants to public or private

20 entities submitting proposals to the Commission to assist in

21 the economic development of the Latino community. Grants may be

22 used by these entities only for those purposes conditioned with

23 the grant. The Commission shall coordinate with the Department

24 to develop grant criteria.

25 (f) For the purposes of this Section:

26 "Department" means the Department of Commerce and Economic

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1 Development.

2 "Director" means the Director of Commerce and Economic

3 Development.

4 "Educational institutions" means nonprofit public and

5 private colleges, community colleges, State colleges, and

6 universities in this State.

7 Section 90-8. The Illinois Lottery Law is amended by

8 changing Section 9.1 as follows:

9 (20 ILCS 1605/9.1)

10 Sec. 9.1. Private manager and management agreement.

11 (a) As used in this Section:

12 "Offeror" means a person or group of persons that responds

13 to a request for qualifications under this Section.

14 "Request for qualifications" means all materials and

15 documents prepared by the Department to solicit the following

16 from offerors:

17 (1) Statements of qualifications.

18 (2) Proposals to enter into a management agreement,

19 including the identity of any prospective vendor or vendors

20 that the offeror intends to initially engage to assist the

21 offeror in performing its obligations under the management

22 agreement.

23 "Final offer" means the last proposal submitted by an

24 offeror in response to the request for qualifications,

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1 including the identity of any prospective vendor or vendors

2 that the offeror intends to initially engage to assist the

3 offeror in performing its obligations under the management

4 agreement.

5 "Final offeror" means the offeror ultimately selected by

6 the Governor to be the private manager for the Lottery under

7 subsection (h) of this Section.

8 (b) By September 15, 2010, the Governor shall select a

9 private manager for the total management of the Lottery with

10 integrated functions, such as lottery game design, supply of

11 goods and services, and advertising and as specified in this

12 Section.

13 (c) Pursuant to the terms of this subsection, the

14 Department shall endeavor to expeditiously terminate the

15 existing contracts in support of the Lottery in effect on the

16 effective date of this amendatory Act of the 96th General

17 Assembly in connection with the selection of the private

18 manager. As part of its obligation to terminate these contracts

19 and select the private manager, the Department shall establish

20 a mutually agreeable timetable to transfer the functions of

21 existing contractors to the private manager so that existing

22 Lottery operations are not materially diminished or impaired

23 during the transition. To that end, the Department shall do the

24 following:

25 (1) where such contracts contain a provision

26 authorizing termination upon notice, the Department shall

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1 provide notice of termination to occur upon the mutually

2 agreed timetable for transfer of functions;

3 (2) upon the expiration of any initial term or renewal

4 term of the current Lottery contracts, the Department shall

5 not renew such contract for a term extending beyond the

6 mutually agreed timetable for transfer of functions; or

7 (3) in the event any current contract provides for

8 termination of that contract upon the implementation of a

9 contract with the private manager, the Department shall

10 perform all necessary actions to terminate the contract on

11 the date that coincides with the mutually agreed timetable

12 for transfer of functions.

13 If the contracts to support the current operation of the

14 Lottery in effect on the effective date of this amendatory Act

15 of the 96th General Assembly are not subject to termination as

16 provided for in this subsection (c), then the Department may

17 include a provision in the contract with the private manager

18 specifying a mutually agreeable methodology for incorporation.

19 (c-5) The Department shall include provisions in the

20 management agreement whereby the private manager shall, for a

21 fee, and pursuant to a contract negotiated with the Department

22 (the "Employee Use Contract"), utilize the services of current

23 Department employees to assist in the administration and

24 operation of the Lottery. The Department shall be the employer

25 of all such bargaining unit employees assigned to perform such

26 work for the private manager, and such employees shall be State

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1 employees, as defined by the Personnel Code. Department

2 employees shall operate under the same employment policies,

3 rules, regulations, and procedures, as other employees of the

4 Department. In addition, neither historical representation

5 rights under the Illinois Public Labor Relations Act, nor

6 existing collective bargaining agreements, shall be disturbed

7 by the management agreement with the private manager for the

8 management of the Lottery.

9 (d) The management agreement with the private manager shall

10 include all of the following:

11 (1) A term not to exceed 10 years, including any

12 renewals.

13 (2) A provision specifying that the Department:

14 (A) shall exercise actual control over all

15 significant business decisions;

16 (A-5) has the authority to direct or countermand

17 operating decisions by the private manager at any time;

18 (B) has ready access at any time to information

19 regarding Lottery operations;

20 (C) has the right to demand and receive information

21 from the private manager concerning any aspect of the

22 Lottery operations at any time; and

23 (D) retains ownership of all trade names,

24 trademarks, and intellectual property associated with

25 the Lottery.

26 (3) A provision imposing an affirmative duty on the

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1 private manager to provide the Department with material

2 information and with any information the private manager

3 reasonably believes the Department would want to know to

4 enable the Department to conduct the Lottery.

5 (4) A provision requiring the private manager to

6 provide the Department with advance notice of any operating

7 decision that bears significantly on the public interest,

8 including, but not limited to, decisions on the kinds of

9 games to be offered to the public and decisions affecting

10 the relative risk and reward of the games being offered, so

11 the Department has a reasonable opportunity to evaluate and

12 countermand that decision.

13 (5) A provision providing for compensation of the

14 private manager that may consist of, among other things, a

15 fee for services and a performance based bonus as

16 consideration for managing the Lottery, including terms

17 that may provide the private manager with an increase in

18 compensation if Lottery revenues grow by a specified

19 percentage in a given year.

20 (6) (Blank).

21 (7) A provision requiring the deposit of all Lottery

22 proceeds to be deposited into the State Lottery Fund except

23 as otherwise provided in Section 20 of this Act.

24 (8) A provision requiring the private manager to locate

25 its principal office within the State.

26 (8-5) A provision encouraging that at least 20% of the

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1 cost of contracts entered into for goods and services by

2 the private manager in connection with its management of

3 the Lottery, other than contracts with sales agents or

4 technical advisors, be awarded to businesses that are a

5 minority owned business, a female owned business, or a

6 business owned by a person with disability, as those terms

7 are defined in the Business Enterprise for Minorities,

8 Females, and Persons with Disabilities Act.

9 (9) A requirement that so long as the private manager

10 complies with all the conditions of the agreement under the

11 oversight of the Department, the private manager shall have

12 the following duties and obligations with respect to the

13 management of the Lottery:

14 (A) The right to use equipment and other assets

15 used in the operation of the Lottery.

16 (B) The rights and obligations under contracts

17 with retailers and vendors.

18 (C) The implementation of a comprehensive security

19 program by the private manager.

20 (D) The implementation of a comprehensive system

21 of internal audits.

22 (E) The implementation of a program by the private

23 manager to curb compulsive gambling by persons playing

24 the Lottery.

25 (F) A system for determining (i) the type of

26 Lottery games, (ii) the method of selecting winning

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1 tickets, (iii) the manner of payment of prizes to

2 holders of winning tickets, (iv) the frequency of

3 drawings of winning tickets, (v) the method to be used

4 in selling tickets, (vi) a system for verifying the

5 validity of tickets claimed to be winning tickets,

6 (vii) the basis upon which retailer commissions are

7 established by the manager, and (viii) minimum

8 payouts.

9 (10) A requirement that advertising and promotion must

10 be consistent with Section 7.8a of this Act.

11 (11) A requirement that the private manager market the

12 Lottery to those residents who are new, infrequent, or

13 lapsed players of the Lottery, especially those who are

14 most likely to make regular purchases on the Internet as

15 permitted by law.

16 (12) A code of ethics for the private manager's

17 officers and employees.

18 (13) A requirement that the Department monitor and

19 oversee the private manager's practices and take action

20 that the Department considers appropriate to ensure that

21 the private manager is in compliance with the terms of the

22 management agreement, while allowing the manager, unless

23 specifically prohibited by law or the management

24 agreement, to negotiate and sign its own contracts with

25 vendors.

26 (14) A provision requiring the private manager to

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1 periodically file, at least on an annual basis, appropriate

2 financial statements in a form and manner acceptable to the

3 Department.

4 (15) Cash reserves requirements.

5 (16) Procedural requirements for obtaining the prior

6 approval of the Department when a management agreement or

7 an interest in a management agreement is sold, assigned,

8 transferred, or pledged as collateral to secure financing.

9 (17) Grounds for the termination of the management

10 agreement by the Department or the private manager.

11 (18) Procedures for amendment of the agreement.

12 (19) A provision requiring the private manager to

13 engage in an open and competitive bidding process for any

14 procurement having a cost in excess of $50,000 that is not

15 a part of the private manager's final offer. The process

16 shall favor the selection of a vendor deemed to have

17 submitted a proposal that provides the Lottery with the

18 best overall value. The process shall not be subject to the

19 provisions of the Illinois Procurement Code, unless

20 specifically required by the management agreement.

21 (20) The transition of rights and obligations,

22 including any associated equipment or other assets used in

23 the operation of the Lottery, from the manager to any

24 successor manager of the lottery, including the

25 Department, following the termination of or foreclosure

26 upon the management agreement.

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1 (21) Right of use of copyrights, trademarks, and

2 service marks held by the Department in the name of the

3 State. The agreement must provide that any use of them by

4 the manager shall only be for the purpose of fulfilling its

5 obligations under the management agreement during the term

6 of the agreement.

7 (22) The disclosure of any information requested by the

8 Department to enable it to comply with the reporting

9 requirements and information requests provided for under

10 subsection (p) of this Section.

11 (e) Notwithstanding any other law to the contrary, the

12 Department shall select a private manager through a competitive

13 request for qualifications process consistent with Section

14 20-35 of the Illinois Procurement Code, which shall take into

15 account:

16 (1) the offeror's ability to market the Lottery to

17 those residents who are new, infrequent, or lapsed players

18 of the Lottery, especially those who are most likely to

19 make regular purchases on the Internet;

20 (2) the offeror's ability to address the State's

21 concern with the social effects of gambling on those who

22 can least afford to do so;

23 (3) the offeror's ability to provide the most

24 successful management of the Lottery for the benefit of the

25 people of the State based on current and past business

26 practices or plans of the offeror; and

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1 (4) the offeror's poor or inadequate past performance

2 in servicing, equipping, operating or managing a lottery on

3 behalf of Illinois, another State or foreign government and

4 attracting persons who are not currently regular players of

5 a lottery.

6 (f) The Department may retain the services of an advisor or

7 advisors with significant experience in financial services or

8 the management, operation, and procurement of goods, services,

9 and equipment for a government-run lottery to assist in the

10 preparation of the terms of the request for qualifications and

11 selection of the private manager. Any prospective advisor

12 seeking to provide services under this subsection (f) shall

13 disclose any material business or financial relationship

14 during the past 3 years with any potential offeror, or with a

15 contractor or subcontractor presently providing goods,

16 services, or equipment to the Department to support the

17 Lottery. The Department shall evaluate the material business or

18 financial relationship of each prospective advisor. The

19 Department shall not select any prospective advisor with a

20 substantial business or financial relationship that the

21 Department deems to impair the objectivity of the services to

22 be provided by the prospective advisor. During the course of

23 the advisor's engagement by the Department, and for a period of

24 one year thereafter, the advisor shall not enter into any

25 business or financial relationship with any offeror or any

26 vendor identified to assist an offeror in performing its

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1 obligations under the management agreement. Any advisor

2 retained by the Department shall be disqualified from being an

3 offeror. The Department shall not include terms in the request

4 for qualifications that provide a material advantage whether

5 directly or indirectly to any potential offeror, or any

6 contractor or subcontractor presently providing goods,

7 services, or equipment to the Department to support the

8 Lottery, including terms contained in previous responses to

9 requests for proposals or qualifications submitted to

10 Illinois, another State or foreign government when those terms

11 are uniquely associated with a particular potential offeror,

12 contractor, or subcontractor. The request for proposals

13 offered by the Department on December 22, 2008 as

14 "LOT08GAMESYS" and reference number "22016176" is declared

15 void.

16 (g) The Department shall select at least 2 offerors as

17 finalists to potentially serve as the private manager no later

18 than August 9, 2010. Upon making preliminary selections, the

19 Department shall schedule a public hearing on the finalists'

20 proposals and provide public notice of the hearing at least 7

21 calendar days before the hearing. The notice must include all

22 of the following:

23 (1) The date, time, and place of the hearing.

24 (2) The subject matter of the hearing.

25 (3) A brief description of the management agreement to

26 be awarded.

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1 (4) The identity of the offerors that have been

2 selected as finalists to serve as the private manager.

3 (5) The address and telephone number of the Department.

4 (h) At the public hearing, the Department shall (i) provide

5 sufficient time for each finalist to present and explain its

6 proposal to the Department and the Governor or the Governor's

7 designee, including an opportunity to respond to questions

8 posed by the Department, Governor, or designee and (ii) allow

9 the public and non-selected offerors to comment on the

10 presentations. The Governor or a designee shall attend the

11 public hearing. After the public hearing, the Department shall

12 have 14 calendar days to recommend to the Governor whether a

13 management agreement should be entered into with a particular

14 finalist. After reviewing the Department's recommendation, the

15 Governor may accept or reject the Department's recommendation,

16 and shall select a final offeror as the private manager by

17 publication of a notice in the Illinois Procurement Bulletin on

18 or before September 15, 2010. The Governor shall include in the

19 notice a detailed explanation and the reasons why the final

20 offeror is superior to other offerors and will provide

21 management services in a manner that best achieves the

22 objectives of this Section. The Governor shall also sign the

23 management agreement with the private manager.

24 (i) Any action to contest the private manager selected by

25 the Governor under this Section must be brought within 7

26 calendar days after the publication of the notice of the

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1 designation of the private manager as provided in subsection

2 (h) of this Section.

3 (j) The Lottery shall remain, for so long as a private

4 manager manages the Lottery in accordance with provisions of

5 this Act, a Lottery conducted by the State, and the State shall

6 not be authorized to sell or transfer the Lottery to a third

7 party.

8 (k) Any tangible personal property used exclusively in

9 connection with the lottery that is owned by the Department and

10 leased to the private manager shall be owned by the Department

11 in the name of the State and shall be considered to be public

12 property devoted to an essential public and governmental

13 function.

14 (l) The Department may exercise any of its powers under

15 this Section or any other law as necessary or desirable for the

16 execution of the Department's powers under this Section.

17 (m) Neither this Section nor any management agreement

18 entered into under this Section prohibits the General Assembly

19 from authorizing forms of gambling that are not in direct

20 competition with the Lottery. The forms of gambling authorized

21 by this amendatory Act of the 100th General Assembly constitute

22 authorized forms of gambling that are not in direct competition

23 with the Lottery.

24 (n) The private manager shall be subject to a complete

25 investigation in the third, seventh, and tenth years of the

26 agreement (if the agreement is for a 10-year term) by the

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1 Department in cooperation with the Auditor General to determine

2 whether the private manager has complied with this Section and

3 the management agreement. The private manager shall bear the

4 cost of an investigation or reinvestigation of the private

5 manager under this subsection.

6 (o) The powers conferred by this Section are in addition

7 and supplemental to the powers conferred by any other law. If

8 any other law or rule is inconsistent with this Section,

9 including, but not limited to, provisions of the Illinois

10 Procurement Code, then this Section controls as to any

11 management agreement entered into under this Section. This

12 Section and any rules adopted under this Section contain full

13 and complete authority for a management agreement between the

14 Department and a private manager. No law, procedure,

15 proceeding, publication, notice, consent, approval, order, or

16 act by the Department or any other officer, Department, agency,

17 or instrumentality of the State or any political subdivision is

18 required for the Department to enter into a management

19 agreement under this Section. This Section contains full and

20 complete authority for the Department to approve any contracts

21 entered into by a private manager with a vendor providing

22 goods, services, or both goods and services to the private

23 manager under the terms of the management agreement, including

24 subcontractors of such vendors.

25 Upon receipt of a written request from the Chief

26 Procurement Officer, the Department shall provide to the Chief

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1 Procurement Officer a complete and un-redacted copy of the

2 management agreement or any contract that is subject to the

3 Department's approval authority under this subsection (o). The

4 Department shall provide a copy of the agreement or contract to

5 the Chief Procurement Officer in the time specified by the

6 Chief Procurement Officer in his or her written request, but no

7 later than 5 business days after the request is received by the

8 Department. The Chief Procurement Officer must retain any

9 portions of the management agreement or of any contract

10 designated by the Department as confidential, proprietary, or

11 trade secret information in complete confidence pursuant to

12 subsection (g) of Section 7 of the Freedom of Information Act.

13 The Department shall also provide the Chief Procurement Officer

14 with reasonable advance written notice of any contract that is

15 pending Department approval.

16 Notwithstanding any other provision of this Section to the

17 contrary, the Chief Procurement Officer shall adopt

18 administrative rules, including emergency rules, to establish

19 a procurement process to select a successor private manager if

20 a private management agreement has been terminated. The

21 selection process shall at a minimum take into account the

22 criteria set forth in items (1) through (4) of subsection (e)

23 of this Section and may include provisions consistent with

24 subsections (f), (g), (h), and (i) of this Section. The Chief

25 Procurement Officer shall also implement and administer the

26 adopted selection process upon the termination of a private

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1 management agreement. The Department, after the Chief

2 Procurement Officer certifies that the procurement process has

3 been followed in accordance with the rules adopted under this

4 subsection (o), shall select a final offeror as the private

5 manager and sign the management agreement with the private

6 manager.

7 Except as provided in Sections 21.2, 21.5, 21.6, 21.7,

8 21.8, and 21.9, the Department shall distribute all proceeds of

9 lottery tickets and shares sold in the following priority and

10 manner:

11 (1) The payment of prizes and retailer bonuses.

12 (2) The payment of costs incurred in the operation and

13 administration of the Lottery, including the payment of

14 sums due to the private manager under the management

15 agreement with the Department.

16 (3) On the last day of each month or as soon thereafter

17 as possible, the State Comptroller shall direct and the

18 State Treasurer shall transfer from the State Lottery Fund

19 to the Common School Fund an amount that is equal to the

20 proceeds transferred in the corresponding month of fiscal

21 year 2009, as adjusted for inflation, to the Common School

22 Fund.

23 (4) On or before the last day of each fiscal year,

24 deposit any remaining proceeds, subject to payments under

25 items (1), (2), and (3) into the Capital Projects Fund each

26 fiscal year.

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1 (p) The Department shall be subject to the following

2 reporting and information request requirements:

3 (1) the Department shall submit written quarterly

4 reports to the Governor and the General Assembly on the

5 activities and actions of the private manager selected

6 under this Section;

7 (2) upon request of the Chief Procurement Officer, the

8 Department shall promptly produce information related to

9 the procurement activities of the Department and the

10 private manager requested by the Chief Procurement

11 Officer; the Chief Procurement Officer must retain

12 confidential, proprietary, or trade secret information

13 designated by the Department in complete confidence

14 pursuant to subsection (g) of Section 7 of the Freedom of

15 Information Act; and

16 (3) at least 30 days prior to the beginning of the

17 Department's fiscal year, the Department shall prepare an

18 annual written report on the activities of the private

19 manager selected under this Section and deliver that report

20 to the Governor and General Assembly.

21 (Source: P.A. 97-464, eff. 8-19-11; 98-463, eff. 8-16-13;

22 98-649, eff. 6-16-14.)

23 Section 90-10. The Department of Revenue Law of the Civil

24 Administrative Code of Illinois is amended by changing Section

25 2505-305 as follows:

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1 (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)

2 Sec. 2505-305. Investigators.

3 (a) The Department has the power to appoint investigators

4 to conduct all investigations, searches, seizures, arrests,

5 and other duties imposed under the provisions of any law

6 administered by the Department. Except as provided in

7 subsection (c), these investigators have and may exercise all

8 the powers of peace officers solely for the purpose of

9 enforcing taxing measures administered by the Department.

10 (b) The Director must authorize to each investigator

11 employed under this Section and to any other employee of the

12 Department exercising the powers of a peace officer a distinct

13 badge that, on its face, (i) clearly states that the badge is

14 authorized by the Department and (ii) contains a unique

15 identifying number. No other badge shall be authorized by the

16 Department.

17 (c) The Department may enter into agreements with the

18 Illinois Gaming Board providing that investigators appointed

19 under this Section shall exercise the peace officer powers set

20 forth in paragraph (20.6) of subsection (c) of Section 5 of the

21 Illinois ~~Riverboat~~Gambling Act.

22 (Source: P.A. 96-37, eff. 7-13-09.)

23 Section 90-12. The Illinois State Auditing Act is amended

24 by changing Section 3-1 as follows:

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1 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)

2 Sec. 3-1. Jurisdiction of Auditor General. The Auditor

3 General has jurisdiction over all State agencies to make post

4 audits and investigations authorized by or under this Act or

5 the Constitution.

6 The Auditor General has jurisdiction over local government

7 agencies and private agencies only:

8 (a) to make such post audits authorized by or under

9 this Act as are necessary and incidental to a post audit of

10 a State agency or of a program administered by a State

11 agency involving public funds of the State, but this

12 jurisdiction does not include any authority to review local

13 governmental agencies in the obligation, receipt,

14 expenditure or use of public funds of the State that are

15 granted without limitation or condition imposed by law,

16 other than the general limitation that such funds be used

17 for public purposes;

18 (b) to make investigations authorized by or under this

19 Act or the Constitution; and

20 (c) to make audits of the records of local government

21 agencies to verify actual costs of state-mandated programs

22 when directed to do so by the Legislative Audit Commission

23 at the request of the State Board of Appeals under the

24 State Mandates Act.

25 In addition to the foregoing, the Auditor General may

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1 conduct an audit of the Metropolitan Pier and Exposition

2 Authority, the Regional Transportation Authority, the Suburban

3 Bus Division, the Commuter Rail Division and the Chicago

4 Transit Authority and any other subsidized carrier when

5 authorized by the Legislative Audit Commission. Such audit may

6 be a financial, management or program audit, or any combination

7 thereof.

8 The audit shall determine whether they are operating in

9 accordance with all applicable laws and regulations. Subject to

10 the limitations of this Act, the Legislative Audit Commission

11 may by resolution specify additional determinations to be

12 included in the scope of the audit.

13 In addition to the foregoing, the Auditor General must also

14 conduct a financial audit of the Illinois Sports Facilities

15 Authority's expenditures of public funds in connection with the

16 reconstruction, renovation, remodeling, extension, or

17 improvement of all or substantially all of any existing

18 "facility", as that term is defined in the Illinois Sports

19 Facilities Authority Act.

20 The Auditor General may also conduct an audit, when

21 authorized by the Legislative Audit Commission, of any hospital

22 which receives 10% or more of its gross revenues from payments

23 from the State of Illinois, Department of Healthcare and Family

24 Services (formerly Department of Public Aid), Medical

25 Assistance Program.

26 The Auditor General is authorized to conduct financial and

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1 compliance audits of the Illinois Distance Learning Foundation

2 and the Illinois Conservation Foundation.

3 As soon as practical after the effective date of this

4 amendatory Act of 1995, the Auditor General shall conduct a

5 compliance and management audit of the City of Chicago and any

6 other entity with regard to the operation of Chicago O'Hare

7 International Airport, Chicago Midway Airport and Merrill C.

8 Meigs Field. The audit shall include, but not be limited to, an

9 examination of revenues, expenses, and transfers of funds;

10 purchasing and contracting policies and practices; staffing

11 levels; and hiring practices and procedures. When completed,

12 the audit required by this paragraph shall be distributed in

13 accordance with Section 3-14.

14 The Auditor General shall conduct a financial and

15 compliance and program audit of distributions from the

16 Municipal Economic Development Fund during the immediately

17 preceding calendar year pursuant to Section 8-403.1 of the

18 Public Utilities Act at no cost to the city, village, or

19 incorporated town that received the distributions.

20 The Auditor General must conduct an audit of the Health

21 Facilities and Services Review Board pursuant to Section 19.5

22 of the Illinois Health Facilities Planning Act.

23 The Auditor General must conduct an audit of the Chicago

24 Casino Development Authority pursuant to Section 1-60 of the

25 Chicago Casino Development Authority Act.

26 The Auditor General of the State of Illinois shall annually

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1 conduct or cause to be conducted a financial and compliance

2 audit of the books and records of any county water commission

3 organized pursuant to the Water Commission Act of 1985 and

4 shall file a copy of the report of that audit with the Governor

5 and the Legislative Audit Commission. The filed audit shall be

6 open to the public for inspection. The cost of the audit shall

7 be charged to the county water commission in accordance with

8 Section 6z-27 of the State Finance Act. The county water

9 commission shall make available to the Auditor General its

10 books and records and any other documentation, whether in the

11 possession of its trustees or other parties, necessary to

12 conduct the audit required. These audit requirements apply only

13 through July 1, 2007.

14 The Auditor General must conduct audits of the Rend Lake

15 Conservancy District as provided in Section 25.5 of the River

16 Conservancy Districts Act.

17 The Auditor General must conduct financial audits of the

18 Southeastern Illinois Economic Development Authority as

19 provided in Section 70 of the Southeastern Illinois Economic

20 Development Authority Act.

21 The Auditor General shall conduct a compliance audit in

22 accordance with subsections (d) and (f) of Section 30 of the

23 Innovation Development and Economy Act.

24 (Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;

25 96-939, eff. 6-24-10.)

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1 Section 90-15. The State Finance Act is amended by adding

2 Sections 5.878, 5.879, 5.880, and 6z-102 and by changing

3 Section 6z-45 as follows:

4 (30 ILCS 105/5.878 new)

5 Sec. 5.878. The Gaming Facilities Fee Revenue Fund.

6 (30 ILCS 105/5.879 new)

7 Sec. 5.879. The Depressed Communities Economic Development

8 Fund.

9 (30 ILCS 105/5.880 new)

10 Sec. 5.880. The Latino Community Economic Development

11 Fund.

12 (30 ILCS 105/6z-45)

13 Sec. 6z-45. The School Infrastructure Fund.

14 (a) The School Infrastructure Fund is created as a special

15 fund in the State Treasury.

16 In addition to any other deposits authorized by law,

17 beginning January 1, 2000, on the first day of each month, or

18 as soon thereafter as may be practical, the State Treasurer and

19 State Comptroller shall transfer the sum of $5,000,000 from the

20 General Revenue Fund to the School Infrastructure Fund, except

21 that, notwithstanding any other provision of law, and in

22 addition to any other transfers that may be provided for by

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1 law, before June 30, 2012, the Comptroller and the Treasurer

2 shall transfer $45,000,000 from the General Revenue Fund into

3 the School Infrastructure Fund, and, for fiscal year 2013 only,

4 the Treasurer and the Comptroller shall transfer $1,250,000

5 from the General Revenue Fund to the School Infrastructure Fund

6 on the first day of each month; provided, however, that no such

7 transfers shall be made from July 1, 2001 through June 30,

8 2003.

9 (b) Subject to the transfer provisions set forth below,

10 money in the School Infrastructure Fund shall, if and when the

11 State of Illinois incurs any bonded indebtedness for the

12 construction of school improvements under the School

13 Construction Law, be set aside and used for the purpose of

14 paying and discharging annually the principal and interest on

15 that bonded indebtedness then due and payable, and for no other

16 purpose.

17 In addition to other transfers to the General Obligation

18 Bond Retirement and Interest Fund made pursuant to Section 15

19 of the General Obligation Bond Act, upon each delivery of bonds

20 issued for construction of school improvements under the School

21 Construction Law, the State Comptroller shall compute and

22 certify to the State Treasurer the total amount of principal

23 of, interest on, and premium, if any, on such bonds during the

24 then current and each succeeding fiscal year. With respect to

25 the interest payable on variable rate bonds, such

26 certifications shall be calculated at the maximum rate of

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1 interest that may be payable during the fiscal year, after

2 taking into account any credits permitted in the related

3 indenture or other instrument against the amount of such

4 interest required to be appropriated for that period.

5 On or before the last day of each month, the State

6 Treasurer and State Comptroller shall transfer from the School

7 Infrastructure Fund to the General Obligation Bond Retirement

8 and Interest Fund an amount sufficient to pay the aggregate of

9 the principal of, interest on, and premium, if any, on the

10 bonds payable on their next payment date, divided by the number

11 of monthly transfers occurring between the last previous

12 payment date (or the delivery date if no payment date has yet

13 occurred) and the next succeeding payment date. Interest

14 payable on variable rate bonds shall be calculated at the

15 maximum rate of interest that may be payable for the relevant

16 period, after taking into account any credits permitted in the

17 related indenture or other instrument against the amount of

18 such interest required to be appropriated for that period.

19 Interest for which moneys have already been deposited into the

20 capitalized interest account within the General Obligation

21 Bond Retirement and Interest Fund shall not be included in the

22 calculation of the amounts to be transferred under this

23 subsection.

24 (b-5) The money deposited into the School Infrastructure

25 Fund from transfers pursuant to subsections (c-30) and (c-35)

26 of Section 13 of the Illinois ~~Riverboat~~ Gambling Act shall be

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1 applied, without further direction, as provided in subsection

2 (b-3) of Section 5-35 of the School Construction Law.

3 (c) The surplus, if any, in the School Infrastructure Fund

4 after payments made pursuant to subsections (b) and (b-5) of

5 this Section shall, subject to appropriation, be used as

6 follows:

7 First - to make 3 payments to the School Technology

8 Revolving Loan Fund as follows:

9 Transfer of $30,000,000 in fiscal year 1999;

10 Transfer of $20,000,000 in fiscal year 2000; and

11 Transfer of $10,000,000 in fiscal year 2001.

12 Second - to pay the expenses of the State Board of

13 Education and the Capital Development Board in administering

14 programs under the School Construction Law, the total expenses

15 not to exceed $1,200,000 in any fiscal year.

16 Third - to pay any amounts due for grants for school

17 construction projects and debt service under the School

18 Construction Law.

19 Fourth - to pay any amounts due for grants for school

20 maintenance projects under the School Construction Law.

21 (Source: P.A. 97-732, eff. 6-30-12; 98-18, eff. 6-7-13.)

22 (30 ILCS 105/6z-102 new)

23 Sec. 6z-102. The Gaming Facilities Fee Revenue Fund.

24 (a) The Gaming Facilities Fee Revenue Fund is created as a

25 special fund in the State treasury.

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1 (b) The revenues in the Fund shall be used, subject to

2 appropriation, by the Comptroller for the purpose of (i)

3 providing appropriations to the Illinois Gaming Board for the

4 administration and enforcement of the Illinois Gambling Act and

5 the applicable provisions of the Chicago Casino Development

6 Authority Act and (ii) payment of vouchers that are outstanding

7 for more than 60 days. Whenever practical, the Comptroller must

8 prioritize voucher payments for expenses related to medical

9 assistance under the Illinois Public Aid Code, the Children's

10 Health Insurance Program Act, the Covering ALL KIDS Health

11 Insurance Act, and the Senior Citizens and Disabled Persons

12 Property Tax Relief and Pharmaceutical Assistance Act.

13 (c) The Fund shall consist of fee revenues received

14 pursuant to subsection (e) of Section 1-45 of the Chicago

15 Casino Development Authority Act and pursuant to subsections

16 (e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections

17 (b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling

18 Act. All interest earned on moneys in the Fund shall be

19 deposited into the Fund.

20 (d) The Fund shall not be subject to administrative charges

21 or chargebacks, including, but not limited to, those authorized

22 under subsection (h) of Section 8 of this Act.

23 Section 90-20. The Illinois Income Tax Act is amended by

24 changing Sections 201, 303, 304 and 710 as follows:

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1 (35 ILCS 5/201) (from Ch. 120, par. 2-201)

2 Sec. 201. Tax Imposed.

3 (a) In general. A tax measured by net income is hereby

4 imposed on every individual, corporation, trust and estate for

5 each taxable year ending after July 31, 1969 on the privilege

6 of earning or receiving income in or as a resident of this

7 State. Such tax shall be in addition to all other occupation or

8 privilege taxes imposed by this State or by any municipal

9 corporation or political subdivision thereof.

10 (b) Rates. The tax imposed by subsection (a) of this

11 Section shall be determined as follows, except as adjusted by

12 subsection (d-1):

13 (1) In the case of an individual, trust or estate, for

14 taxable years ending prior to July 1, 1989, an amount equal

15 to 2 1/2% of the taxpayer's net income for the taxable

16 year.

17 (2) In the case of an individual, trust or estate, for

18 taxable years beginning prior to July 1, 1989 and ending

19 after June 30, 1989, an amount equal to the sum of (i) 2

20 1/2% of the taxpayer's net income for the period prior to

21 July 1, 1989, as calculated under Section 202.3, and (ii)

22 3% of the taxpayer's net income for the period after June

23 30, 1989, as calculated under Section 202.3.

24 (3) In the case of an individual, trust or estate, for

25 taxable years beginning after June 30, 1989, and ending

26 prior to January 1, 2011, an amount equal to 3% of the

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1 taxpayer's net income for the taxable year.

2 (4) In the case of an individual, trust, or estate, for

3 taxable years beginning prior to January 1, 2011, and

4 ending after December 31, 2010, an amount equal to the sum

5 of (i) 3% of the taxpayer's net income for the period prior

6 to January 1, 2011, as calculated under Section 202.5, and

7 (ii) 5% of the taxpayer's net income for the period after

8 December 31, 2010, as calculated under Section 202.5.

9 (5) In the case of an individual, trust, or estate, for

10 taxable years beginning on or after January 1, 2011, and

11 ending prior to January 1, 2015, an amount equal to 5% of

12 the taxpayer's net income for the taxable year.

13 (5.1) In the case of an individual, trust, or estate,

14 for taxable years beginning prior to January 1, 2015, and

15 ending after December 31, 2014, an amount equal to the sum

16 of (i) 5% of the taxpayer's net income for the period prior

17 to January 1, 2015, as calculated under Section 202.5, and

18 (ii) 3.75% of the taxpayer's net income for the period

19 after December 31, 2014, as calculated under Section 202.5.

20 (5.2) In the case of an individual, trust, or estate,

21 for taxable years beginning on or after January 1, 2015,

22 and ending prior to January 1, 2025, an amount equal to

23 3.75% of the taxpayer's net income for the taxable year.

24 (5.3) In the case of an individual, trust, or estate,

25 for taxable years beginning prior to January 1, 2025, and

26 ending after December 31, 2024, an amount equal to the sum

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1 of (i) 3.75% of the taxpayer's net income for the period

2 prior to January 1, 2025, as calculated under Section

3 202.5, and (ii) 3.25% of the taxpayer's net income for the

4 period after December 31, 2024, as calculated under Section

5 202.5.

6 (5.4) In the case of an individual, trust, or estate,

7 for taxable years beginning on or after January 1, 2025, an

8 amount equal to 3.25% of the taxpayer's net income for the

9 taxable year.

10 (6) In the case of a corporation, for taxable years

11 ending prior to July 1, 1989, an amount equal to 4% of the

12 taxpayer's net income for the taxable year.

13 (7) In the case of a corporation, for taxable years

14 beginning prior to July 1, 1989 and ending after June 30,

15 1989, an amount equal to the sum of (i) 4% of the

16 taxpayer's net income for the period prior to July 1, 1989,

17 as calculated under Section 202.3, and (ii) 4.8% of the

18 taxpayer's net income for the period after June 30, 1989,

19 as calculated under Section 202.3.

20 (8) In the case of a corporation, for taxable years

21 beginning after June 30, 1989, and ending prior to January

22 1, 2011, an amount equal to 4.8% of the taxpayer's net

23 income for the taxable year.

24 (9) In the case of a corporation, for taxable years

25 beginning prior to January 1, 2011, and ending after

26 December 31, 2010, an amount equal to the sum of (i) 4.8%

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1 of the taxpayer's net income for the period prior to

2 January 1, 2011, as calculated under Section 202.5, and

3 (ii) 7% of the taxpayer's net income for the period after

4 December 31, 2010, as calculated under Section 202.5.

5 (10) In the case of a corporation, for taxable years

6 beginning on or after January 1, 2011, and ending prior to

7 January 1, 2015, an amount equal to 7% of the taxpayer's

8 net income for the taxable year.

9 (11) In the case of a corporation, for taxable years

10 beginning prior to January 1, 2015, and ending after

11 December 31, 2014, an amount equal to the sum of (i) 7% of

12 the taxpayer's net income for the period prior to January

13 1, 2015, as calculated under Section 202.5, and (ii) 5.25%

14 of the taxpayer's net income for the period after December

15 31, 2014, as calculated under Section 202.5.

16 (12) In the case of a corporation, for taxable years

17 beginning on or after January 1, 2015, and ending prior to

18 January 1, 2025, an amount equal to 5.25% of the taxpayer's

19 net income for the taxable year.

20 (13) In the case of a corporation, for taxable years

21 beginning prior to January 1, 2025, and ending after

22 December 31, 2024, an amount equal to the sum of (i) 5.25%

23 of the taxpayer's net income for the period prior to

24 January 1, 2025, as calculated under Section 202.5, and

25 (ii) 4.8% of the taxpayer's net income for the period after

26 December 31, 2024, as calculated under Section 202.5.

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1 (14) In the case of a corporation, for taxable years

2 beginning on or after January 1, 2025, an amount equal to

3 4.8% of the taxpayer's net income for the taxable year.

4 The rates under this subsection (b) are subject to the

5 provisions of Section 201.5.

6 (b-5) Surcharge; sale or exchange of assets, properties,

7 and intangibles of electronic gaming licensees. For each of

8 taxable years 2017 through 2025, a surcharge is imposed on all

9 taxpayers on income arising from the sale or exchange of

10 capital assets, depreciable business property, real property

11 used in the trade or business, and Section 197 intangibles (i)

12 of an organization licensee under the Illinois Horse Racing Act

13 of 1975 and (ii) of an electronic gaming licensee under the

14 Illinois Gambling Act. The amount of the surcharge is equal to

15 the amount of federal income tax liability for the taxable year

16 attributable to those sales and exchanges. The surcharge

17 imposed shall not apply if:

18 (1) the electronic gaming license, organization

19 license, or race track property is transferred as a result

20 of any of the following:

21 (A) bankruptcy, a receivership, or a debt

22 adjustment initiated by or against the initial

23 licensee or the substantial owners of the initial

24 licensee;

25 (B) cancellation, revocation, or termination of

26 any such license by the Illinois Gaming Board or the

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1 Illinois Racing Board;

2 (C) a determination by the Illinois Gaming Board

3 that transfer of the license is in the best interests

4 of Illinois gaming;

5 (D) the death of an owner of the equity interest in

6 a licensee;

7 (E) the acquisition of a controlling interest in

8 the stock or substantially all of the assets of a

9 publicly traded company;

10 (F) a transfer by a parent company to a wholly

11 owned subsidiary; or

12 (G) the transfer or sale to or by one person to

13 another person where both persons were initial owners

14 of the license when the license was issued; or

15 (2) the controlling interest in the electronic gaming

16 license, organization license, or race track property is

17 transferred in a transaction to lineal descendants in which

18 no gain or loss is recognized or as a result of a

19 transaction in accordance with Section 351 of the Internal

20 Revenue Code in which no gain or loss is recognized; or

21 (3) live horse racing was not conducted in 2011 under a

22 license issued pursuant to the Illinois Horse Racing Act of

23 1975.

24 The transfer of an electronic gaming license, organization

25 license, or race track property by a person other than the

26 initial licensee to receive the electronic gaming license is

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1 not subject to a surcharge. The Department shall adopt rules

2 necessary to implement and administer this subsection.

3 (c) Personal Property Tax Replacement Income Tax.

4 Beginning on July 1, 1979 and thereafter, in addition to such

5 income tax, there is also hereby imposed the Personal Property

6 Tax Replacement Income Tax measured by net income on every

7 corporation (including Subchapter S corporations), partnership

8 and trust, for each taxable year ending after June 30, 1979.

9 Such taxes are imposed on the privilege of earning or receiving

10 income in or as a resident of this State. The Personal Property

11 Tax Replacement Income Tax shall be in addition to the income

12 tax imposed by subsections (a) and (b) of this Section and in

13 addition to all other occupation or privilege taxes imposed by

14 this State or by any municipal corporation or political

15 subdivision thereof.

16 (d) Additional Personal Property Tax Replacement Income

17 Tax Rates. The personal property tax replacement income tax

18 imposed by this subsection and subsection (c) of this Section

19 in the case of a corporation, other than a Subchapter S

20 corporation and except as adjusted by subsection (d-1), shall

21 be an additional amount equal to 2.85% of such taxpayer's net

22 income for the taxable year, except that beginning on January

23 1, 1981, and thereafter, the rate of 2.85% specified in this

24 subsection shall be reduced to 2.5%, and in the case of a

25 partnership, trust or a Subchapter S corporation shall be an

26 additional amount equal to 1.5% of such taxpayer's net income

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1 for the taxable year.

2 (d-1) Rate reduction for certain foreign insurers. In the

3 case of a foreign insurer, as defined by Section 35A-5 of the

4 Illinois Insurance Code, whose state or country of domicile

5 imposes on insurers domiciled in Illinois a retaliatory tax

6 (excluding any insurer whose premiums from reinsurance assumed

7 are 50% or more of its total insurance premiums as determined

8 under paragraph (2) of subsection (b) of Section 304, except

9 that for purposes of this determination premiums from

10 reinsurance do not include premiums from inter-affiliate

11 reinsurance arrangements), beginning with taxable years ending

12 on or after December 31, 1999, the sum of the rates of tax

13 imposed by subsections (b) and (d) shall be reduced (but not

14 increased) to the rate at which the total amount of tax imposed

15 under this Act, net of all credits allowed under this Act,

16 shall equal (i) the total amount of tax that would be imposed

17 on the foreign insurer's net income allocable to Illinois for

18 the taxable year by such foreign insurer's state or country of

19 domicile if that net income were subject to all income taxes

20 and taxes measured by net income imposed by such foreign

21 insurer's state or country of domicile, net of all credits

22 allowed or (ii) a rate of zero if no such tax is imposed on such

23 income by the foreign insurer's state of domicile. For the

24 purposes of this subsection (d-1), an inter-affiliate includes

25 a mutual insurer under common management.

26 (1) For the purposes of subsection (d-1), in no event

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1 shall the sum of the rates of tax imposed by subsections

2 (b) and (d) be reduced below the rate at which the sum of:

3 (A) the total amount of tax imposed on such foreign

4 insurer under this Act for a taxable year, net of all

5 credits allowed under this Act, plus

6 (B) the privilege tax imposed by Section 409 of the

7 Illinois Insurance Code, the fire insurance company

8 tax imposed by Section 12 of the Fire Investigation

9 Act, and the fire department taxes imposed under

10 Section 11-10-1 of the Illinois Municipal Code,

11 equals 1.25% for taxable years ending prior to December 31,

12 2003, or 1.75% for taxable years ending on or after

13 December 31, 2003, of the net taxable premiums written for

14 the taxable year, as described by subsection (1) of Section

15 409 of the Illinois Insurance Code. This paragraph will in

16 no event increase the rates imposed under subsections (b)

17 and (d).

18 (2) Any reduction in the rates of tax imposed by this

19 subsection shall be applied first against the rates imposed

20 by subsection (b) and only after the tax imposed by

21 subsection (a) net of all credits allowed under this

22 Section other than the credit allowed under subsection (i)

23 has been reduced to zero, against the rates imposed by

24 subsection (d).

25 This subsection (d-1) is exempt from the provisions of

26 Section 250.

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1 (e) Investment credit. A taxpayer shall be allowed a credit

2 against the Personal Property Tax Replacement Income Tax for

3 investment in qualified property.

4 (1) A taxpayer shall be allowed a credit equal to .5%

5 of the basis of qualified property placed in service during

6 the taxable year, provided such property is placed in

7 service on or after July 1, 1984. There shall be allowed an

8 additional credit equal to .5% of the basis of qualified

9 property placed in service during the taxable year,

10 provided such property is placed in service on or after

11 July 1, 1986, and the taxpayer's base employment within

12 Illinois has increased by 1% or more over the preceding

13 year as determined by the taxpayer's employment records

14 filed with the Illinois Department of Employment Security.

15 Taxpayers who are new to Illinois shall be deemed to have

16 met the 1% growth in base employment for the first year in

17 which they file employment records with the Illinois

18 Department of Employment Security. The provisions added to

19 this Section by Public Act 85-1200 (and restored by Public

20 Act 87-895) shall be construed as declaratory of existing

21 law and not as a new enactment. If, in any year, the

22 increase in base employment within Illinois over the

23 preceding year is less than 1%, the additional credit shall

24 be limited to that percentage times a fraction, the

25 numerator of which is .5% and the denominator of which is

26 1%, but shall not exceed .5%. The investment credit shall

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1 not be allowed to the extent that it would reduce a

2 taxpayer's liability in any tax year below zero, nor may

3 any credit for qualified property be allowed for any year

4 other than the year in which the property was placed in

5 service in Illinois. For tax years ending on or after

6 December 31, 1987, and on or before December 31, 1988, the

7 credit shall be allowed for the tax year in which the

8 property is placed in service, or, if the amount of the

9 credit exceeds the tax liability for that year, whether it

10 exceeds the original liability or the liability as later

11 amended, such excess may be carried forward and applied to

12 the tax liability of the 5 taxable years following the

13 excess credit years if the taxpayer (i) makes investments

14 which cause the creation of a minimum of 2,000 full-time

15 equivalent jobs in Illinois, (ii) is located in an

16 enterprise zone established pursuant to the Illinois

17 Enterprise Zone Act and (iii) is certified by the

18 Department of Commerce and Community Affairs (now

19 Department of Commerce and Economic Opportunity) as

20 complying with the requirements specified in clause (i) and

21 (ii) by July 1, 1986. The Department of Commerce and

22 Community Affairs (now Department of Commerce and Economic

23 Opportunity) shall notify the Department of Revenue of all

24 such certifications immediately. For tax years ending

25 after December 31, 1988, the credit shall be allowed for

26 the tax year in which the property is placed in service,

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1 or, if the amount of the credit exceeds the tax liability

2 for that year, whether it exceeds the original liability or

3 the liability as later amended, such excess may be carried

4 forward and applied to the tax liability of the 5 taxable

5 years following the excess credit years. The credit shall

6 be applied to the earliest year for which there is a

7 liability. If there is credit from more than one tax year

8 that is available to offset a liability, earlier credit

9 shall be applied first.

10 (2) The term "qualified property" means property

11 which:

12 (A) is tangible, whether new or used, including

13 buildings and structural components of buildings and

14 signs that are real property, but not including land or

15 improvements to real property that are not a structural

16 component of a building such as landscaping, sewer

17 lines, local access roads, fencing, parking lots, and

18 other appurtenances;

19 (B) is depreciable pursuant to Section 167 of the

20 Internal Revenue Code, except that "3-year property"

21 as defined in Section 168(c)(2)(A) of that Code is not

22 eligible for the credit provided by this subsection

23 (e);

24 (C) is acquired by purchase as defined in Section

25 179(d) of the Internal Revenue Code;

26 (D) is used in Illinois by a taxpayer who is

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1 primarily engaged in manufacturing, or in mining coal

2 or fluorite, or in retailing, or was placed in service

3 on or after July 1, 2006 in a River Edge Redevelopment

4 Zone established pursuant to the River Edge

5 Redevelopment Zone Act; and

6 (E) has not previously been used in Illinois in

7 such a manner and by such a person as would qualify for

8 the credit provided by this subsection (e) or

9 subsection (f).

10 (3) For purposes of this subsection (e),

11 "manufacturing" means the material staging and production

12 of tangible personal property by procedures commonly

13 regarded as manufacturing, processing, fabrication, or

14 assembling which changes some existing material into new

15 shapes, new qualities, or new combinations. For purposes of

16 this subsection (e) the term "mining" shall have the same

17 meaning as the term "mining" in Section 613(c) of the

18 Internal Revenue Code. For purposes of this subsection (e),

19 the term "retailing" means the sale of tangible personal

20 property for use or consumption and not for resale, or

21 services rendered in conjunction with the sale of tangible

22 personal property for use or consumption and not for

23 resale. For purposes of this subsection (e), "tangible

24 personal property" has the same meaning as when that term

25 is used in the Retailers' Occupation Tax Act, and, for

26 taxable years ending after December 31, 2008, does not

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1 include the generation, transmission, or distribution of

2 electricity.

3 (4) The basis of qualified property shall be the basis

4 used to compute the depreciation deduction for federal

5 income tax purposes.

6 (5) If the basis of the property for federal income tax

7 depreciation purposes is increased after it has been placed

8 in service in Illinois by the taxpayer, the amount of such

9 increase shall be deemed property placed in service on the

10 date of such increase in basis.

11 (6) The term "placed in service" shall have the same

12 meaning as under Section 46 of the Internal Revenue Code.

13 (7) If during any taxable year, any property ceases to

14 be qualified property in the hands of the taxpayer within

15 48 months after being placed in service, or the situs of

16 any qualified property is moved outside Illinois within 48

17 months after being placed in service, the Personal Property

18 Tax Replacement Income Tax for such taxable year shall be

19 increased. Such increase shall be determined by (i)

20 recomputing the investment credit which would have been

21 allowed for the year in which credit for such property was

22 originally allowed by eliminating such property from such

23 computation and, (ii) subtracting such recomputed credit

24 from the amount of credit previously allowed. For the

25 purposes of this paragraph (7), a reduction of the basis of

26 qualified property resulting from a redetermination of the

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1 purchase price shall be deemed a disposition of qualified

2 property to the extent of such reduction.

3 (8) Unless the investment credit is extended by law,

4 the basis of qualified property shall not include costs

5 incurred after December 31, 2018, except for costs incurred

6 pursuant to a binding contract entered into on or before

7 December 31, 2018.

8 (9) Each taxable year ending before December 31, 2000,

9 a partnership may elect to pass through to its partners the

10 credits to which the partnership is entitled under this

11 subsection (e) for the taxable year. A partner may use the

12 credit allocated to him or her under this paragraph only

13 against the tax imposed in subsections (c) and (d) of this

14 Section. If the partnership makes that election, those

15 credits shall be allocated among the partners in the

16 partnership in accordance with the rules set forth in

17 Section 704(b) of the Internal Revenue Code, and the rules

18 promulgated under that Section, and the allocated amount of

19 the credits shall be allowed to the partners for that

20 taxable year. The partnership shall make this election on

21 its Personal Property Tax Replacement Income Tax return for

22 that taxable year. The election to pass through the credits

23 shall be irrevocable.

24 For taxable years ending on or after December 31, 2000,

25 a partner that qualifies its partnership for a subtraction

26 under subparagraph (I) of paragraph (2) of subsection (d)

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1 of Section 203 or a shareholder that qualifies a Subchapter

2 S corporation for a subtraction under subparagraph (S) of

3 paragraph (2) of subsection (b) of Section 203 shall be

4 allowed a credit under this subsection (e) equal to its

5 share of the credit earned under this subsection (e) during

6 the taxable year by the partnership or Subchapter S

7 corporation, determined in accordance with the

8 determination of income and distributive share of income

9 under Sections 702 and 704 and Subchapter S of the Internal

10 Revenue Code. This paragraph is exempt from the provisions

11 of Section 250.

12 (f) Investment credit; Enterprise Zone; River Edge

13 Redevelopment Zone.

14 (1) A taxpayer shall be allowed a credit against the

15 tax imposed by subsections (a) and (b) of this Section for

16 investment in qualified property which is placed in service

17 in an Enterprise Zone created pursuant to the Illinois

18 Enterprise Zone Act or, for property placed in service on

19 or after July 1, 2006, a River Edge Redevelopment Zone

20 established pursuant to the River Edge Redevelopment Zone

21 Act. For partners, shareholders of Subchapter S

22 corporations, and owners of limited liability companies,

23 if the liability company is treated as a partnership for

24 purposes of federal and State income taxation, there shall

25 be allowed a credit under this subsection (f) to be

26 determined in accordance with the determination of income

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1 and distributive share of income under Sections 702 and 704

2 and Subchapter S of the Internal Revenue Code. The credit

3 shall be .5% of the basis for such property. The credit

4 shall be available only in the taxable year in which the

5 property is placed in service in the Enterprise Zone or

6 River Edge Redevelopment Zone and shall not be allowed to

7 the extent that it would reduce a taxpayer's liability for

8 the tax imposed by subsections (a) and (b) of this Section

9 to below zero. For tax years ending on or after December

10 31, 1985, the credit shall be allowed for the tax year in

11 which the property is placed in service, or, if the amount

12 of the credit exceeds the tax liability for that year,

13 whether it exceeds the original liability or the liability

14 as later amended, such excess may be carried forward and

15 applied to the tax liability of the 5 taxable years

16 following the excess credit year. The credit shall be

17 applied to the earliest year for which there is a

18 liability. If there is credit from more than one tax year

19 that is available to offset a liability, the credit

20 accruing first in time shall be applied first.

21 (2) The term qualified property means property which:

22 (A) is tangible, whether new or used, including

23 buildings and structural components of buildings;

24 (B) is depreciable pursuant to Section 167 of the

25 Internal Revenue Code, except that "3-year property"

26 as defined in Section 168(c)(2)(A) of that Code is not

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1 eligible for the credit provided by this subsection

2 (f);

3 (C) is acquired by purchase as defined in Section

4 179(d) of the Internal Revenue Code;

5 (D) is used in the Enterprise Zone or River Edge

6 Redevelopment Zone by the taxpayer; and

7 (E) has not been previously used in Illinois in

8 such a manner and by such a person as would qualify for

9 the credit provided by this subsection (f) or

10 subsection (e).

11 (3) The basis of qualified property shall be the basis

12 used to compute the depreciation deduction for federal

13 income tax purposes.

14 (4) If the basis of the property for federal income tax

15 depreciation purposes is increased after it has been placed

16 in service in the Enterprise Zone or River Edge

17 Redevelopment Zone by the taxpayer, the amount of such

18 increase shall be deemed property placed in service on the

19 date of such increase in basis.

20 (5) The term "placed in service" shall have the same

21 meaning as under Section 46 of the Internal Revenue Code.

22 (6) If during any taxable year, any property ceases to

23 be qualified property in the hands of the taxpayer within

24 48 months after being placed in service, or the situs of

25 any qualified property is moved outside the Enterprise Zone

26 or River Edge Redevelopment Zone within 48 months after

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1 being placed in service, the tax imposed under subsections

2 (a) and (b) of this Section 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 (6), 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 (7) There shall be allowed an additional credit equal

14 to 0.5% of the basis of qualified property placed in

15 service during the taxable year in a River Edge

16 Redevelopment Zone, provided such property is placed in

17 service on or after July 1, 2006, and the taxpayer's base

18 employment within Illinois has increased by 1% or more over

19 the preceding year as determined by the taxpayer's

20 employment records filed with the Illinois Department of

21 Employment Security. Taxpayers who are new to Illinois

22 shall be deemed to have met the 1% growth in base

23 employment for the first year in which they file employment

24 records with the Illinois Department of Employment

25 Security. If, in any year, the increase in base employment

26 within Illinois over the preceding year is less than 1%,

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1 the additional credit shall be limited to that percentage

2 times a fraction, the numerator of which is 0.5% and the

3 denominator of which is 1%, but shall not exceed 0.5%.

4 (g) (Blank).

5 (h) Investment credit; High Impact Business.

6 (1) Subject to subsections (b) and (b-5) of Section 5.5

7 of the Illinois Enterprise Zone Act, a taxpayer shall be

8 allowed a credit against the tax imposed by subsections (a)

9 and (b) of this Section for investment in qualified

10 property which is placed in service by a Department of

11 Commerce and Economic Opportunity designated High Impact

12 Business. The credit shall be .5% of the basis for such

13 property. The credit shall not be available (i) until the

14 minimum investments in qualified property set forth in

15 subdivision (a)(3)(A) of Section 5.5 of the Illinois

16 Enterprise Zone Act have been satisfied or (ii) until the

17 time authorized in subsection (b-5) of the Illinois

18 Enterprise Zone Act for entities designated as High Impact

19 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and

20 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone

21 Act, and shall not be allowed to the extent that it would

22 reduce a taxpayer's liability for the tax imposed by

23 subsections (a) and (b) of this Section to below zero. The

24 credit applicable to such investments shall be taken in the

25 taxable year in which such investments have been completed.

26 The credit for additional investments beyond the minimum

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1 investment by a designated high impact business authorized

2 under subdivision (a)(3)(A) of Section 5.5 of the Illinois

3 Enterprise Zone Act shall be available only in the taxable

4 year in which the property is placed in service and shall

5 not be allowed to the extent that it would reduce a

6 taxpayer's liability for the tax imposed by subsections (a)

7 and (b) of this Section to below zero. For tax years ending

8 on or after December 31, 1987, the credit shall be allowed

9 for the tax year in which the property is placed in

10 service, or, if the amount of the credit exceeds the tax

11 liability for that year, whether it exceeds the original

12 liability or the liability as later amended, such excess

13 may be carried forward and applied to the tax liability of

14 the 5 taxable years following the excess credit year. The

15 credit shall be applied to the earliest year for which

16 there is a liability. If there is credit from more than one

17 tax year that is available to offset a liability, the

18 credit accruing first in time shall be applied first.

19 Changes made in this subdivision (h)(1) by Public Act

20 88-670 restore changes made by Public Act 85-1182 and

21 reflect existing law.

22 (2) The term qualified property means property which:

23 (A) is tangible, whether new or used, including

24 buildings and structural components of buildings;

25 (B) is depreciable pursuant to Section 167 of the

26 Internal Revenue Code, except that "3-year property"

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1 as defined in Section 168(c)(2)(A) of that Code is not

2 eligible for the credit provided by this subsection

3 (h);

4 (C) is acquired by purchase as defined in Section

5 179(d) of the Internal Revenue Code; and

6 (D) is not eligible for the Enterprise Zone

7 Investment Credit provided by subsection (f) of this

8 Section.

9 (3) The basis of qualified property shall be the basis

10 used to compute the depreciation deduction for federal

11 income tax purposes.

12 (4) If the basis of the property for federal income tax

13 depreciation purposes is increased after it has been placed

14 in service in a federally designated Foreign Trade Zone or

15 Sub-Zone located in Illinois by the taxpayer, the amount of

16 such increase shall be deemed property placed in service on

17 the date of such increase in basis.

18 (5) The term "placed in service" shall have the same

19 meaning as under Section 46 of the Internal Revenue Code.

20 (6) If during any taxable year ending on or before

21 December 31, 1996, any property ceases to be qualified

22 property in the hands of the taxpayer within 48 months

23 after being placed in service, or the situs of any

24 qualified property is moved outside Illinois within 48

25 months after being placed in service, the tax imposed under

26 subsections (a) and (b) of this Section for such taxable

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1 year shall be increased. Such increase shall be determined

2 by (i) recomputing the investment credit which would have

3 been allowed for the year in which credit for such property

4 was originally allowed by eliminating such property from

5 such computation, and (ii) subtracting such recomputed

6 credit from the amount of credit previously allowed. For

7 the purposes of this paragraph (6), a reduction of the

8 basis of qualified property resulting from a

9 redetermination of the purchase price shall be deemed a

10 disposition of qualified property to the extent of such

11 reduction.

12 (7) Beginning with tax years ending after December 31,

13 1996, if a taxpayer qualifies for the credit under this

14 subsection (h) and thereby is granted a tax abatement and

15 the taxpayer relocates its entire facility in violation of

16 the explicit terms and length of the contract under Section

17 18-183 of the Property Tax Code, the tax imposed under

18 subsections (a) and (b) of this Section shall be increased

19 for the taxable year in which the taxpayer relocated its

20 facility by an amount equal to the amount of credit

21 received by the taxpayer under this subsection (h).

22 (i) Credit for Personal Property Tax Replacement Income

23 Tax. For tax years ending prior to December 31, 2003, a credit

24 shall be allowed against the tax imposed by subsections (a) and

25 (b) of this Section for the tax imposed by subsections (c) and

26 (d) of this Section. This credit shall be computed by

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1 multiplying the tax imposed by subsections (c) and (d) of this

2 Section by a fraction, the numerator of which is base income

3 allocable to Illinois and the denominator of which is Illinois

4 base income, and further multiplying the product by the tax

5 rate imposed by subsections (a) and (b) of this Section.

6 Any credit earned on or after December 31, 1986 under this

7 subsection which is unused in the year the credit is computed

8 because it exceeds the tax liability imposed by subsections (a)

9 and (b) for that year (whether it exceeds the original

10 liability or the liability as later amended) may be carried

11 forward and applied to the tax liability imposed by subsections

12 (a) and (b) of the 5 taxable years following the excess credit

13 year, provided that no credit may be carried forward to any

14 year ending on or after December 31, 2003. This credit shall be

15 applied first to the earliest year for which there is a

16 liability. If there is a credit under this subsection from more

17 than one tax year that is available to offset a liability the

18 earliest credit arising under this subsection shall be applied

19 first.

20 If, during any taxable year ending on or after December 31,

21 1986, the tax imposed by subsections (c) and (d) of this

22 Section for which a taxpayer has claimed a credit under this

23 subsection (i) is reduced, the amount of credit for such tax

24 shall also be reduced. Such reduction shall be determined by

25 recomputing the credit to take into account the reduced tax

26 imposed by subsections (c) and (d). If any portion of the

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1 reduced amount of credit has been carried to a different

2 taxable year, an amended return shall be filed for such taxable

3 year to reduce the amount of credit claimed.

4 (j) Training expense credit. Beginning with tax years

5 ending on or after December 31, 1986 and prior to December 31,

6 2003, a taxpayer shall be allowed a credit against the tax

7 imposed by subsections (a) and (b) under this Section for all

8 amounts paid or accrued, on behalf of all persons employed by

9 the taxpayer in Illinois or Illinois residents employed outside

10 of Illinois by a taxpayer, for educational or vocational

11 training in semi-technical or technical fields or semi-skilled

12 or skilled fields, which were deducted from gross income in the

13 computation of taxable income. The credit against the tax

14 imposed by subsections (a) and (b) shall be 1.6% of such

15 training expenses. For partners, shareholders of subchapter S

16 corporations, and owners of limited liability companies, if the

17 liability company is treated as a partnership for purposes of

18 federal and State income taxation, there shall be allowed a

19 credit under this subsection (j) to be determined in accordance

20 with the determination of income and distributive share of

21 income under Sections 702 and 704 and subchapter S of the

22 Internal Revenue Code.

23 Any credit allowed under this subsection which is unused in

24 the year the credit is earned may be carried forward to each of

25 the 5 taxable years following the year for which the credit is

26 first computed until it is used. This credit shall be applied

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1 first to the earliest year for which there is a liability. If

2 there is a credit under this subsection from more than one tax

3 year that is available to offset a liability the earliest

4 credit arising under this subsection shall be applied first. No

5 carryforward credit may be claimed in any tax year ending on or

6 after December 31, 2003.

7 (k) Research and development credit. For tax years ending

8 after July 1, 1990 and prior to December 31, 2003, and

9 beginning again for tax years ending on or after December 31,

10 2004, and ending prior to January 1, 2016, a taxpayer shall be

11 allowed a credit against the tax imposed by subsections (a) and

12 (b) of this Section for increasing research activities in this

13 State. The credit allowed against the tax imposed by

14 subsections (a) and (b) shall be equal to 6 1/2% of the

15 qualifying expenditures for increasing research activities in

16 this State. For partners, shareholders of subchapter S

17 corporations, and owners of limited liability companies, if the

18 liability company is treated as a partnership for purposes of

19 federal and State income taxation, there shall be allowed a

20 credit under this subsection to be determined in accordance

21 with the determination of income and distributive share of

22 income under Sections 702 and 704 and subchapter S of the

23 Internal Revenue Code.

24 For purposes of this subsection, "qualifying expenditures"

25 means the qualifying expenditures as defined for the federal

26 credit for increasing research activities which would be

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1 allowable under Section 41 of the Internal Revenue Code and

2 which are conducted in this State, "qualifying expenditures for

3 increasing research activities in this State" means the excess

4 of qualifying expenditures for the taxable year in which

5 incurred over qualifying expenditures for the base period,

6 "qualifying expenditures for the base period" means the average

7 of the qualifying expenditures for each year in the base

8 period, and "base period" means the 3 taxable years immediately

9 preceding the taxable year for which the determination is being

10 made.

11 Any credit in excess of the tax liability for the taxable

12 year may be carried forward. A taxpayer may elect to have the

13 unused credit shown on its final completed return carried over

14 as a credit against the tax liability for the following 5

15 taxable years or until it has been fully used, whichever occurs

16 first; provided that no credit earned in a tax year ending

17 prior to December 31, 2003 may be carried forward to any year

18 ending on or after December 31, 2003.

19 If an unused credit is carried forward to a given year from

20 2 or more earlier years, that credit arising in the earliest

21 year will be applied first against the tax liability for the

22 given year. If a tax liability for the given year still

23 remains, the credit from the next earliest year will then be

24 applied, and so on, until all credits have been used or no tax

25 liability for the given year remains. Any remaining unused

26 credit or credits then will be carried forward to the next

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1 following year in which a tax liability is incurred, except

2 that no credit can be carried forward to a year which is more

3 than 5 years after the year in which the expense for which the

4 credit is given was incurred.

5 No inference shall be drawn from this amendatory Act of the

6 91st General Assembly in construing this Section for taxable

7 years beginning before January 1, 1999.

8 (l) Environmental Remediation Tax Credit.

9 (i) For tax years ending after December 31, 1997 and on

10 or before December 31, 2001, a taxpayer shall be allowed a

11 credit against the tax imposed by subsections (a) and (b)

12 of this Section for certain amounts paid for unreimbursed

13 eligible remediation costs, as specified in this

14 subsection. For purposes of this Section, "unreimbursed

15 eligible remediation costs" means costs approved by the

16 Illinois Environmental Protection Agency ("Agency") under

17 Section 58.14 of the Environmental Protection Act that were

18 paid in performing environmental remediation at a site for

19 which a No Further Remediation Letter was issued by the

20 Agency and recorded under Section 58.10 of the

21 Environmental Protection Act. The credit must be claimed

22 for the taxable year in which Agency approval of the

23 eligible remediation costs is granted. The credit is not

24 available to any taxpayer if the taxpayer or any related

25 party caused or contributed to, in any material respect, a

26 release of regulated substances on, in, or under the site

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1 that was identified and addressed by the remedial action

2 pursuant to the Site Remediation Program of the

3 Environmental Protection Act. After the Pollution Control

4 Board rules are adopted pursuant to the Illinois

5 Administrative Procedure Act for the administration and

6 enforcement of Section 58.9 of the Environmental

7 Protection Act, determinations as to credit availability

8 for purposes of this Section shall be made consistent with

9 those rules. For purposes of this Section, "taxpayer"

10 includes a person whose tax attributes the taxpayer has

11 succeeded to under Section 381 of the Internal Revenue Code

12 and "related party" includes the persons disallowed a

13 deduction for losses by paragraphs (b), (c), and (f)(1) of

14 Section 267 of the Internal Revenue Code by virtue of being

15 a related taxpayer, as well as any of its partners. The

16 credit allowed against the tax imposed by subsections (a)

17 and (b) shall be equal to 25% of the unreimbursed eligible

18 remediation costs in excess of $100,000 per site, except

19 that the $100,000 threshold shall not apply to any site

20 contained in an enterprise zone as determined by the

21 Department of Commerce and Community Affairs (now

22 Department of Commerce and Economic Opportunity). The

23 total credit allowed shall not exceed $40,000 per year with

24 a maximum total of $150,000 per site. For partners and

25 shareholders of subchapter S corporations, there shall be

26 allowed a credit under this subsection to be determined in

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1 accordance with the determination of income and

2 distributive share of income under Sections 702 and 704 and

3 subchapter S of the Internal Revenue Code.

4 (ii) A credit allowed under this subsection that is

5 unused in the year the credit is earned may be carried

6 forward to each of the 5 taxable years following the year

7 for which the credit is first earned until it is used. The

8 term "unused credit" does not include any amounts of

9 unreimbursed eligible remediation costs in excess of the

10 maximum credit per site authorized under paragraph (i).

11 This credit shall be applied first to the earliest year for

12 which there is a liability. If there is a credit under this

13 subsection from more than one tax year that is available to

14 offset a liability, the earliest credit arising under this

15 subsection shall be applied first. A credit allowed under

16 this subsection may be sold to a buyer as part of a sale of

17 all or part of the remediation site for which the credit

18 was granted. The purchaser of a remediation site and the

19 tax credit shall succeed to the unused credit and remaining

20 carry-forward period of the seller. To perfect the

21 transfer, the assignor shall record the transfer in the

22 chain of title for the site and provide written notice to

23 the Director of the Illinois Department of Revenue of the

24 assignor's intent to sell the remediation site and the

25 amount of the tax credit to be transferred as a portion of

26 the sale. In no event may a credit be transferred to any

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1 taxpayer if the taxpayer or a related party would not be

2 eligible under the provisions of subsection (i).

3 (iii) For purposes of this Section, the term "site"

4 shall have the same meaning as under Section 58.2 of the

5 Environmental Protection Act.

6 (m) Education expense credit. Beginning with tax years

7 ending after December 31, 1999, a taxpayer who is the custodian

8 of one or more qualifying pupils shall be allowed a credit

9 against the tax imposed by subsections (a) and (b) of this

10 Section for qualified education expenses incurred on behalf of

11 the qualifying pupils. The credit shall be equal to 25% of

12 qualified education expenses, but in no event may the total

13 credit under this subsection claimed by a family that is the

14 custodian of qualifying pupils exceed $500. In no event shall a

15 credit under this subsection reduce the taxpayer's liability

16 under this Act to less than zero. This subsection is exempt

17 from the provisions of Section 250 of this Act.

18 For purposes of this subsection:

19 "Qualifying pupils" means individuals who (i) are

20 residents of the State of Illinois, (ii) are under the age of

21 21 at the close of the school year for which a credit is

22 sought, and (iii) during the school year for which a credit is

23 sought were full-time pupils enrolled in a kindergarten through

24 twelfth grade education program at any school, as defined in

25 this subsection.

26 "Qualified education expense" means the amount incurred on

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1 behalf of a qualifying pupil in excess of $250 for tuition,

2 book fees, and lab fees at the school in which the pupil is

3 enrolled during the regular school year.

4 "School" means any public or nonpublic elementary or

5 secondary school in Illinois that is in compliance with Title

6 VI of the Civil Rights Act of 1964 and attendance at which

7 satisfies the requirements of Section 26-1 of the School Code,

8 except that nothing shall be construed to require a child to

9 attend any particular public or nonpublic school to qualify for

10 the credit under this Section.

11 "Custodian" means, with respect to qualifying pupils, an

12 Illinois resident who is a parent, the parents, a legal

13 guardian, or the legal guardians of the qualifying pupils.

14 (n) River Edge Redevelopment Zone site remediation tax

15 credit.

16 (i) For tax years ending on or after December 31, 2006,

17 a taxpayer shall be allowed a credit against the tax

18 imposed by subsections (a) and (b) of this Section for

19 certain amounts paid for unreimbursed eligible remediation

20 costs, as specified in this subsection. For purposes of

21 this Section, "unreimbursed eligible remediation costs"

22 means costs approved by the Illinois Environmental

23 Protection Agency ("Agency") under Section 58.14a of the

24 Environmental Protection Act that were paid in performing

25 environmental remediation at a site within a River Edge

26 Redevelopment Zone for which a No Further Remediation

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1 Letter was issued by the Agency and recorded under Section

2 58.10 of the Environmental Protection Act. The credit must

3 be claimed for the taxable year in which Agency approval of

4 the eligible remediation costs is granted. The credit is

5 not available to any taxpayer if the taxpayer or any

6 related party caused or contributed to, in any material

7 respect, a release of regulated substances on, in, or under

8 the site that was identified and addressed by the remedial

9 action pursuant to the Site Remediation Program of the

10 Environmental Protection Act. Determinations as to credit

11 availability for purposes of this Section shall be made

12 consistent with rules adopted by the Pollution Control

13 Board pursuant to the Illinois Administrative Procedure

14 Act for the administration and enforcement of Section 58.9

15 of the Environmental Protection Act. For purposes of this

16 Section, "taxpayer" includes a person whose tax attributes

17 the taxpayer has succeeded to under Section 381 of the

18 Internal Revenue Code and "related party" includes the

19 persons disallowed a deduction for losses by paragraphs

20 (b), (c), and (f)(1) of Section 267 of the Internal Revenue

21 Code by virtue of being a related taxpayer, as well as any

22 of its partners. The credit allowed against the tax imposed

23 by subsections (a) and (b) shall be equal to 25% of the

24 unreimbursed eligible remediation costs in excess of

25 $100,000 per site.

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. This

4 credit shall be applied first to the earliest year for

5 which there is a liability. If there is a credit under this

6 subsection from more than one tax year that is available to

7 offset a liability, the earliest credit arising under this

8 subsection shall be applied first. A credit allowed under

9 this subsection may be sold to a buyer as part of a sale of

10 all or part of the remediation site for which the credit

11 was granted. The purchaser of a remediation site and the

12 tax credit shall succeed to the unused credit and remaining

13 carry-forward period of the seller. To perfect the

14 transfer, the assignor shall record the transfer in the

15 chain of title for the site and provide written notice to

16 the Director of the Illinois Department of Revenue of the

17 assignor's intent to sell the remediation site and the

18 amount of the tax credit to be transferred as a portion of

19 the sale. In no event may a credit be transferred to any

20 taxpayer if the taxpayer or a related party would not be

21 eligible under the provisions of subsection (i).

22 (iii) For purposes of this Section, the term "site"

23 shall have the same meaning as under Section 58.2 of the

24 Environmental Protection Act.

25 (o) For each of taxable years during the Compassionate Use

26 of Medical Cannabis Pilot Program, a surcharge is imposed on

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1 all taxpayers on income arising from the sale or exchange of

2 capital assets, depreciable business property, real property

3 used in the trade or business, and Section 197 intangibles of

4 an organization registrant under the Compassionate Use of

5 Medical Cannabis Pilot Program Act. The amount of the surcharge

6 is equal to the amount of federal income tax liability for the

7 taxable year attributable to those sales and exchanges. The

8 surcharge imposed does not apply if:

9 (1) the medical cannabis cultivation center

10 registration, medical cannabis dispensary registration, or

11 the property of a registration is transferred as a result

12 of any of the following:

13 (A) bankruptcy, a receivership, or a debt

14 adjustment initiated by or against the initial

15 registration or the substantial owners of the initial

16 registration;

17 (B) cancellation, revocation, or termination of

18 any registration by the Illinois Department of Public

19 Health;

20 (C) a determination by the Illinois Department of

21 Public Health that transfer of the registration is in

22 the best interests of Illinois qualifying patients as

23 defined by the Compassionate Use of Medical Cannabis

24 Pilot Program Act;

25 (D) the death of an owner of the equity interest in

26 a registrant;

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1 (E) the acquisition of a controlling interest in

2 the stock or substantially all of the assets of a

3 publicly traded company;

4 (F) a transfer by a parent company to a wholly

5 owned subsidiary; or

6 (G) the transfer or sale to or by one person to

7 another person where both persons were initial owners

8 of the registration when the registration was issued;

9 or

10 (2) the cannabis cultivation center registration,

11 medical cannabis dispensary registration, or the

12 controlling interest in a registrant's property is

13 transferred in a transaction to lineal descendants in which

14 no gain or loss is recognized or as a result of a

15 transaction in accordance with Section 351 of the Internal

16 Revenue Code in which no gain or loss is recognized.

17 (Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,

18 eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,

19 eff. 7-16-14.)

20 (35 ILCS 5/303) (from Ch. 120, par. 3-303)

21 Sec. 303. (a) In general. Any item of capital gain or loss,

22 and any item of income from rents or royalties from real or

23 tangible personal property, interest, dividends, and patent or

24 copyright royalties, and prizes awarded under the Illinois

25 Lottery Law, and, for taxable years ending on or after December

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1 31, 2017, wagering and gambling winnings from Illinois sources

2 as set forth in subsection (e-1) of this Section, to the extent

3 such item constitutes nonbusiness income, together with any

4 item of deduction directly allocable thereto, shall be

5 allocated by any person other than a resident as provided in

6 this Section.

7 (b) Capital gains and losses.

8 (1) Real property. Capital gains and losses from sales

9 or exchanges of real property are allocable to this State

10 if the property is located in this State.

11 (2) Tangible personal property. Capital gains and

12 losses from sales or exchanges of tangible personal

13 property are allocable to this State if, at the time of

14 such sale or exchange:

15 (A) The property had its situs in this State; or

16 (B) The taxpayer had its commercial domicile in

17 this State and was not taxable in the state in which

18 the property had its situs.

19 (3) Intangibles. Capital gains and losses from sales or

20 exchanges of intangible personal property are allocable to

21 this State if the taxpayer had its commercial domicile in

22 this State at the time of such sale or exchange.

23 (c) Rents and royalties.

24 (1) Real property. Rents and royalties from real

25 property are allocable to this State if the property is

26 located in this State.

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1 (2) Tangible personal property. Rents and royalties

2 from tangible personal property are allocable to this

3 State:

4 (A) If and to the extent that the property is

5 utilized in this State; or

6 (B) In their entirety if, at the time such rents or

7 royalties were paid or accrued, the taxpayer had its

8 commercial domicile in this State and was not organized

9 under the laws of or taxable with respect to such rents

10 or royalties in the state in which the property was

11 utilized. The extent of utilization of tangible

12 personal property in a state is determined by

13 multiplying the rents or royalties derived from such

14 property by a fraction, the numerator of which is the

15 number of days of physical location of the property in

16 the state during the rental or royalty period in the

17 taxable year and the denominator of which is the number

18 of days of physical location of the property everywhere

19 during all rental or royalty periods in the taxable

20 year. If the physical location of the property during

21 the rental or royalty period is unknown or

22 unascertainable by the taxpayer, tangible personal

23 property is utilized in the state in which the property

24 was located at the time the rental or royalty payer

25 obtained possession.

26 (d) Patent and copyright royalties.

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1 (1) Allocation. Patent and copyright royalties are

2 allocable to this State:

3 (A) If and to the extent that the patent or

4 copyright is utilized by the payer in this State; or

5 (B) If and to the extent that the patent or

6 copyright is utilized by the payer in a state in which

7 the taxpayer is not taxable with respect to such

8 royalties and, at the time such royalties were paid or

9 accrued, the taxpayer had its commercial domicile in

10 this State.

11 (2) Utilization.

12 (A) A patent is utilized in a state to the extent

13 that it is employed in production, fabrication,

14 manufacturing or other processing in the state or to

15 the extent that a patented product is produced in the

16 state. If the basis of receipts from patent royalties

17 does not permit allocation to states or if the

18 accounting procedures do not reflect states of

19 utilization, the patent is utilized in this State if

20 the taxpayer has its commercial domicile in this State.

21 (B) A copyright is utilized in a state to the

22 extent that printing or other publication originates

23 in the state. If the basis of receipts from copyright

24 royalties does not permit allocation to states or if

25 the accounting procedures do not reflect states of

26 utilization, the copyright is utilized in this State if

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1 the taxpayer has its commercial domicile in this State.

2 (e) Illinois lottery prizes. Prizes awarded under the

3 Illinois Lottery Law are allocable to this State. Payments

4 received in taxable years ending on or after December 31, 2013,

5 from the assignment of a prize under Section 13.1 of the

6 Illinois Lottery Law are allocable to this State.

7 (e-1) Wagering and gambling winnings. Payments received in

8 taxable years ending on or after December 31, 2017 of winnings

9 from pari-mutuel wagering conducted at a wagering facility

10 licensed under the Illinois Horse Racing Act of 1975 and from

11 gambling games conducted on a riverboat or in a casino or

12 electronic gaming facility licensed under the Illinois

13 Gambling Act are allocable to this State.

14 (e-5) Unemployment benefits. Unemployment benefits paid by

15 the Illinois Department of Employment Security are allocable to

16 this State.

17 (f) Taxability in other state. For purposes of allocation

18 of income pursuant to this Section, a taxpayer is taxable in

19 another state if:

20 (1) In that state he is subject to a net income tax, a

21 franchise tax measured by net income, a franchise tax for

22 the privilege of doing business, or a corporate stock tax;

23 or

24 (2) That state has jurisdiction to subject the taxpayer

25 to a net income tax regardless of whether, in fact, the

26 state does or does not.

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1 (g) Cross references.

2 (1) For allocation of interest and dividends by persons

3 other than residents, see Section 301(c)(2).

4 (2) For allocation of nonbusiness income by residents,

5 see Section 301(a).

6 (Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)

7 (35 ILCS 5/304) (from Ch. 120, par. 3-304)

8 Sec. 304. Business income of persons other than residents.

9 (a) In general. The business income of a person other than

10 a resident shall be allocated to this State if such person's

11 business income is derived solely from this State. If a person

12 other than a resident derives business income from this State

13 and one or more other states, then, for tax years ending on or

14 before December 30, 1998, and except as otherwise provided by

15 this Section, such person's business income shall be

16 apportioned to this State by multiplying the income by a

17 fraction, the numerator of which is the sum of the property

18 factor (if any), the payroll factor (if any) and 200% of the

19 sales factor (if any), and the denominator of which is 4

20 reduced by the number of factors other than the sales factor

21 which have a denominator of zero and by an additional 2 if the

22 sales factor has a denominator of zero. For tax years ending on

23 or after December 31, 1998, and except as otherwise provided by

24 this Section, persons other than residents who derive business

25 income from this State and one or more other states shall

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1 compute their apportionment factor by weighting their

2 property, payroll, and sales factors as provided in subsection

3 (h) of this Section.

4 (1) Property factor.

5 (A) The property factor is a fraction, the numerator of

6 which is the average value of the person's real and

7 tangible personal property owned or rented and used in the

8 trade or business in this State during the taxable year and

9 the denominator of which is the average value of all the

10 person's real and tangible personal property owned or

11 rented and used in the trade or business during the taxable

12 year.

13 (B) Property owned by the person is valued at its

14 original cost. Property rented by the person is valued at 8

15 times the net annual rental rate. Net annual rental rate is

16 the annual rental rate paid by the person less any annual

17 rental rate received by the person from sub-rentals.

18 (C) The average value of property shall be determined

19 by averaging the values at the beginning and ending of the

20 taxable year but the Director may require the averaging of

21 monthly values during the taxable year if reasonably

22 required to reflect properly the average value of the

23 person's property.

24 (2) Payroll factor.

25 (A) The payroll factor is a fraction, the numerator of

26 which is the total amount paid in this State during the

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1 taxable year by the person for compensation, and the

2 denominator of which is the total compensation paid

3 everywhere during the taxable year.

4 (B) Compensation is paid in this State if:

5 (i) The individual's service is performed entirely

6 within this State;

7 (ii) The individual's service is performed both

8 within and without this State, but the service

9 performed without this State is incidental to the

10 individual's service performed within this State; or

11 (iii) Some of the service is performed within this

12 State and either the base of operations, or if there is

13 no base of operations, the place from which the service

14 is directed or controlled is within this State, or the

15 base of operations or the place from which the service

16 is directed or controlled is not in any state in which

17 some part of the service is performed, but the

18 individual's residence is in this State.

19 (iv) Compensation paid to nonresident professional

20 athletes.

21 (a) General. The Illinois source income of a

22 nonresident individual who is a member of a

23 professional athletic team includes the portion of the

24 individual's total compensation for services performed

25 as a member of a professional athletic team during the

26 taxable year which the number of duty days spent within

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1 this State performing services for the team in any

2 manner during the taxable year bears to the total

3 number of duty days spent both within and without this

4 State during the taxable year.

5 (b) Travel days. Travel days that do not involve

6 either a game, practice, team meeting, or other similar

7 team event are not considered duty days spent in this

8 State. However, such travel days are considered in the

9 total duty days spent both within and without this

10 State.

11 (c) Definitions. For purposes of this subpart

12 (iv):

13 (1) The term "professional athletic team"

14 includes, but is not limited to, any professional

15 baseball, basketball, football, soccer, or hockey

16 team.

17 (2) The term "member of a professional

18 athletic team" includes those employees who are

19 active players, players on the disabled list, and

20 any other persons required to travel and who travel

21 with and perform services on behalf of a

22 professional athletic team on a regular basis.

23 This includes, but is not limited to, coaches,

24 managers, and trainers.

25 (3) Except as provided in items (C) and (D) of

26 this subpart (3), the term "duty days" means all

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1 days during the taxable year from the beginning of

2 the professional athletic team's official

3 pre-season training period through the last game

4 in which the team competes or is scheduled to

5 compete. Duty days shall be counted for the year in

6 which they occur, including where a team's

7 official pre-season training period through the

8 last game in which the team competes or is

9 scheduled to compete, occurs during more than one

10 tax year.

11 (A) Duty days shall also include days on

12 which a member of a professional athletic team

13 performs service for a team on a date that does

14 not fall within the foregoing period (e.g.,

15 participation in instructional leagues, the

16 "All Star Game", or promotional "caravans").

17 Performing a service for a professional

18 athletic team includes conducting training and

19 rehabilitation activities, when such

20 activities are conducted at team facilities.

21 (B) Also included in duty days are game

22 days, practice days, days spent at team

23 meetings, promotional caravans, preseason

24 training camps, and days served with the team

25 through all post-season games in which the team

26 competes or is scheduled to compete.

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1 (C) Duty days for any person who joins a

2 team during the period from the beginning of

3 the professional athletic team's official

4 pre-season training period through the last

5 game in which the team competes, or is

6 scheduled to compete, shall begin on the day

7 that person joins the team. Conversely, duty

8 days for any person who leaves a team during

9 this period shall end on the day that person

10 leaves the team. Where a person switches teams

11 during a taxable year, a separate duty-day

12 calculation shall be made for the period the

13 person was with each team.

14 (D) Days for which a member of a

15 professional athletic team is not compensated

16 and is not performing services for the team in

17 any manner, including days when such member of

18 a professional athletic team has been

19 suspended without pay and prohibited from

20 performing any services for the team, shall not

21 be treated as duty days.

22 (E) Days for which a member of a

23 professional athletic team is on the disabled

24 list and does not conduct rehabilitation

25 activities at facilities of the team, and is

26 not otherwise performing services for the team

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1 in Illinois, shall not be considered duty days

2 spent in this State. All days on the disabled

3 list, however, are considered to be included in

4 total duty days spent both within and without

5 this State.

6 (4) The term "total compensation for services

7 performed as a member of a professional athletic

8 team" means the total compensation received during

9 the taxable year for services performed:

10 (A) from the beginning of the official

11 pre-season training period through the last

12 game in which the team competes or is scheduled

13 to compete during that taxable year; and

14 (B) during the taxable year on a date which

15 does not fall within the foregoing period

16 (e.g., participation in instructional leagues,

17 the "All Star Game", or promotional caravans).

18 This compensation shall include, but is not

19 limited to, salaries, wages, bonuses as described

20 in this subpart, and any other type of compensation

21 paid during the taxable year to a member of a

22 professional athletic team for services performed

23 in that year. This compensation does not include

24 strike benefits, severance pay, termination pay,

25 contract or option year buy-out payments,

26 expansion or relocation payments, or any other

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1 payments not related to services performed for the

2 team.

3 For purposes of this subparagraph, "bonuses"

4 included in "total compensation for services

5 performed as a member of a professional athletic

6 team" subject to the allocation described in

7 Section 302(c)(1) are: bonuses earned as a result

8 of play (i.e., performance bonuses) during the

9 season, including bonuses paid for championship,

10 playoff or "bowl" games played by a team, or for

11 selection to all-star league or other honorary

12 positions; and bonuses paid for signing a

13 contract, unless the payment of the signing bonus

14 is not conditional upon the signee playing any

15 games for the team or performing any subsequent

16 services for the team or even making the team, the

17 signing bonus is payable separately from the

18 salary and any other compensation, and the signing

19 bonus is nonrefundable.

20 (3) Sales factor.

21 (A) The sales factor is a fraction, the numerator of

22 which is the total sales of the person in this State during

23 the taxable year, and the denominator of which is the total

24 sales of the person everywhere during the taxable year.

25 (B) Sales of tangible personal property are in this

26 State if:

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1 (i) The property is delivered or shipped to a

2 purchaser, other than the United States government,

3 within this State regardless of the f. o. b. point or

4 other conditions of the sale; or

5 (ii) The property is shipped from an office, store,

6 warehouse, factory or other place of storage in this

7 State and either the purchaser is the United States

8 government or the person is not taxable in the state of

9 the purchaser; provided, however, that premises owned

10 or leased by a person who has independently contracted

11 with the seller for the printing of newspapers,

12 periodicals or books shall not be deemed to be an

13 office, store, warehouse, factory or other place of

14 storage for purposes of this Section. Sales of tangible

15 personal property are not in this State if the seller

16 and purchaser would be members of the same unitary

17 business group but for the fact that either the seller

18 or purchaser is a person with 80% or more of total

19 business activity outside of the United States and the

20 property is purchased for resale.

21 (B-1) Patents, copyrights, trademarks, and similar

22 items of intangible personal property.

23 (i) Gross receipts from the licensing, sale, or

24 other disposition of a patent, copyright, trademark,

25 or similar item of intangible personal property, other

26 than gross receipts governed by paragraph (B-7) of this

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1 item (3), are in this State to the extent the item is

2 utilized in this State during the year the gross

3 receipts are included in gross income.

4 (ii) Place of utilization.

5 (I) A patent is utilized in a state to the

6 extent that it is employed in production,

7 fabrication, manufacturing, or other processing in

8 the state or to the extent that a patented product

9 is produced in the state. If a patent is utilized

10 in more than one state, the extent to which it is

11 utilized in any one state shall be a fraction equal

12 to the gross receipts of the licensee or purchaser

13 from sales or leases of items produced,

14 fabricated, manufactured, or processed within that

15 state using the patent and of patented items

16 produced within that state, divided by the total of

17 such gross receipts for all states in which the

18 patent is utilized.

19 (II) A copyright is utilized in a state to the

20 extent that printing or other publication

21 originates in the state. If a copyright is utilized

22 in more than one state, the extent to which it is

23 utilized in any one state shall be a fraction equal

24 to the gross receipts from sales or licenses of

25 materials printed or published in that state

26 divided by the total of such gross receipts for all

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1 states in which the copyright is utilized.

2 (III) Trademarks and other items of intangible

3 personal property governed by this paragraph (B-1)

4 are utilized in the state in which the commercial

5 domicile of the licensee or purchaser is located.

6 (iii) If the state of utilization of an item of

7 property governed by this paragraph (B-1) cannot be

8 determined from the taxpayer's books and records or

9 from the books and records of any person related to the

10 taxpayer within the meaning of Section 267(b) of the

11 Internal Revenue Code, 26 U.S.C. 267, the gross

12 receipts attributable to that item shall be excluded

13 from both the numerator and the denominator of the

14 sales factor.

15 (B-2) Gross receipts from the license, sale, or other

16 disposition of patents, copyrights, trademarks, and

17 similar items of intangible personal property, other than

18 gross receipts governed by paragraph (B-7) of this item

19 (3), may be included in the numerator or denominator of the

20 sales factor only if gross receipts from licenses, sales,

21 or other disposition of such items comprise more than 50%

22 of the taxpayer's total gross receipts included in gross

23 income during the tax year and during each of the 2

24 immediately preceding tax years; provided that, when a

25 taxpayer is a member of a unitary business group, such

26 determination shall be made on the basis of the gross

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1 receipts of the entire unitary business group.

2 (B-5) For taxable years ending on or after December 31,

3 2008, except as provided in subsections (ii) through (vii),

4 receipts from the sale of telecommunications service or

5 mobile telecommunications service are in this State if the

6 customer's service address is in this State.

7 (i) For purposes of this subparagraph (B-5), the

8 following terms have the following meanings:

9 "Ancillary services" means services that are

10 associated with or incidental to the provision of

11 "telecommunications services", including but not

12 limited to "detailed telecommunications billing",

13 "directory assistance", "vertical service", and "voice

14 mail services".

15 "Air-to-Ground Radiotelephone service" means a

16 radio service, as that term is defined in 47 CFR 22.99,

17 in which common carriers are authorized to offer and

18 provide radio telecommunications service for hire to

19 subscribers in aircraft.

20 "Call-by-call Basis" means any method of charging

21 for telecommunications services where the price is

22 measured by individual calls.

23 "Communications Channel" means a physical or

24 virtual path of communications over which signals are

25 transmitted between or among customer channel

26 termination points.

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1 "Conference bridging service" means an "ancillary

2 service" that links two or more participants of an

3 audio or video conference call and may include the

4 provision of a telephone number. "Conference bridging

5 service" does not include the "telecommunications

6 services" used to reach the conference bridge.

7 "Customer Channel Termination Point" means the

8 location where the customer either inputs or receives

9 the communications.

10 "Detailed telecommunications billing service"

11 means an "ancillary service" of separately stating

12 information pertaining to individual calls on a

13 customer's billing statement.

14 "Directory assistance" means an "ancillary

15 service" of providing telephone number information,

16 and/or address information.

17 "Home service provider" means the facilities based

18 carrier or reseller with which the customer contracts

19 for the provision of mobile telecommunications

20 services.

21 "Mobile telecommunications service" means

22 commercial mobile radio service, as defined in Section

23 20.3 of Title 47 of the Code of Federal Regulations as

24 in effect on June 1, 1999.

25 "Place of primary use" means the street address

26 representative of where the customer's use of the

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1 telecommunications service primarily occurs, which

2 must be the residential street address or the primary

3 business street address of the customer. In the case of

4 mobile telecommunications services, "place of primary

5 use" must be within the licensed service area of the

6 home service provider.

7 "Post-paid telecommunication service" means the

8 telecommunications service obtained by making a

9 payment on a call-by-call basis either through the use

10 of a credit card or payment mechanism such as a bank

11 card, travel card, credit card, or debit card, or by

12 charge made to a telephone number which is not

13 associated with the origination or termination of the

14 telecommunications service. A post-paid calling

15 service includes telecommunications service, except a

16 prepaid wireless calling service, that would be a

17 prepaid calling service except it is not exclusively a

18 telecommunication service.

19 "Prepaid telecommunication service" means the

20 right to access exclusively telecommunications

21 services, which must be paid for in advance and which

22 enables the origination of calls using an access number

23 or authorization code, whether manually or

24 electronically dialed, and that is sold in

25 predetermined units or dollars of which the number

26 declines with use in a known amount.

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1 "Prepaid Mobile telecommunication service" means a

2 telecommunications service that provides the right to

3 utilize mobile wireless service as well as other

4 non-telecommunication services, including but not

5 limited to ancillary services, which must be paid for

6 in advance that is sold in predetermined units or

7 dollars of which the number declines with use in a

8 known amount.

9 "Private communication service" means a

10 telecommunication service that entitles the customer

11 to exclusive or priority use of a communications

12 channel or group of channels between or among

13 termination points, regardless of the manner in which

14 such channel or channels are connected, and includes

15 switching capacity, extension lines, stations, and any

16 other associated services that are provided in

17 connection with the use of such channel or channels.

18 "Service address" means:

19 (a) The location of the telecommunications

20 equipment to which a customer's call is charged and

21 from which the call originates or terminates,

22 regardless of where the call is billed or paid;

23 (b) If the location in line (a) is not known,

24 service address means the origination point of the

25 signal of the telecommunications services first

26 identified by either the seller's

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1 telecommunications system or in information

2 received by the seller from its service provider

3 where the system used to transport such signals is

4 not that of the seller; and

5 (c) If the locations in line (a) and line (b)

6 are not known, the service address means the

7 location of the customer's place of primary use.

8 "Telecommunications service" means the electronic

9 transmission, conveyance, or routing of voice, data,

10 audio, video, or any other information or signals to a

11 point, or between or among points. The term

12 "telecommunications service" includes such

13 transmission, conveyance, or routing in which computer

14 processing applications are used to act on the form,

15 code or protocol of the content for purposes of

16 transmission, conveyance or routing without regard to

17 whether such service is referred to as voice over

18 Internet protocol services or is classified by the

19 Federal Communications Commission as enhanced or value

20 added. "Telecommunications service" does not include:

21 (a) Data processing and information services

22 that allow data to be generated, acquired, stored,

23 processed, or retrieved and delivered by an

24 electronic transmission to a purchaser when such

25 purchaser's primary purpose for the underlying

26 transaction is the processed data or information;

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1 (b) Installation or maintenance of wiring or

2 equipment on a customer's premises;

3 (c) Tangible personal property;

4 (d) Advertising, including but not limited to

5 directory advertising; ~~.~~

6 (e) Billing and collection services provided

7 to third parties;

8 (f) Internet access service;

9 (g) Radio and television audio and video

10 programming services, regardless of the medium,

11 including the furnishing of transmission,

12 conveyance and routing of such services by the

13 programming service provider. Radio and television

14 audio and video programming services shall include

15 but not be limited to cable service as defined in

16 47 USC 522(6) and audio and video programming

17 services delivered by commercial mobile radio

18 service providers, as defined in 47 CFR 20.3;

19 (h) "Ancillary services"; or

20 (i) Digital products "delivered

21 electronically", including but not limited to

22 software, music, video, reading materials or ring

23 tones.

24 "Vertical service" means an "ancillary service"

25 that is offered in connection with one or more

26 "telecommunications services", which offers advanced

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1 calling features that allow customers to identify

2 callers and to manage multiple calls and call

3 connections, including "conference bridging services".

4 "Voice mail service" means an "ancillary service"

5 that enables the customer to store, send or receive

6 recorded messages. "Voice mail service" does not

7 include any "vertical services" that the customer may

8 be required to have in order to utilize the "voice mail

9 service".

10 (ii) Receipts from the sale of telecommunications

11 service sold on an individual call-by-call basis are in

12 this State if either of the following applies:

13 (a) The call both originates and terminates in

14 this State.

15 (b) The call either originates or terminates

16 in this State and the service address is located in

17 this State.

18 (iii) Receipts from the sale of postpaid

19 telecommunications service at retail are in this State

20 if the origination point of the telecommunication

21 signal, as first identified by the service provider's

22 telecommunication system or as identified by

23 information received by the seller from its service

24 provider if the system used to transport

25 telecommunication signals is not the seller's, is

26 located in this State.

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1 (iv) Receipts from the sale of prepaid

2 telecommunications service or prepaid mobile

3 telecommunications service at retail are in this State

4 if the purchaser obtains the prepaid card or similar

5 means of conveyance at a location in this State.

6 Receipts from recharging a prepaid telecommunications

7 service or mobile telecommunications service is in

8 this State if the purchaser's billing information

9 indicates a location in this State.

10 (v) Receipts from the sale of private

11 communication services are in this State as follows:

12 (a) 100% of receipts from charges imposed at

13 each channel termination point in this State.

14 (b) 100% of receipts from charges for the total

15 channel mileage between each channel termination

16 point in this State.

17 (c) 50% of the total receipts from charges for

18 service segments when those segments are between 2

19 customer channel termination points, 1 of which is

20 located in this State and the other is located

21 outside of this State, which segments are

22 separately charged.

23 (d) The receipts from charges for service

24 segments with a channel termination point located

25 in this State and in two or more other states, and

26 which segments are not separately billed, are in

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1 this State based on a percentage determined by

2 dividing the number of customer channel

3 termination points in this State by the total

4 number of customer channel termination points.

5 (vi) Receipts from charges for ancillary services

6 for telecommunications service sold to customers at

7 retail are in this State if the customer's primary

8 place of use of telecommunications services associated

9 with those ancillary services is in this State. If the

10 seller of those ancillary services cannot determine

11 where the associated telecommunications are located,

12 then the ancillary services shall be based on the

13 location of the purchaser.

14 (vii) Receipts to access a carrier's network or

15 from the sale of telecommunication services or

16 ancillary services for resale are in this State as

17 follows:

18 (a) 100% of the receipts from access fees

19 attributable to intrastate telecommunications

20 service that both originates and terminates in

21 this State.

22 (b) 50% of the receipts from access fees

23 attributable to interstate telecommunications

24 service if the interstate call either originates

25 or terminates in this State.

26 (c) 100% of the receipts from interstate end

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1 user access line charges, if the customer's

2 service address is in this State. As used in this

3 subdivision, "interstate end user access line

4 charges" includes, but is not limited to, the

5 surcharge approved by the federal communications

6 commission and levied pursuant to 47 CFR 69.

7 (d) Gross receipts from sales of

8 telecommunication services or from ancillary

9 services for telecommunications services sold to

10 other telecommunication service providers for

11 resale shall be sourced to this State using the

12 apportionment concepts used for non-resale

13 receipts of telecommunications services if the

14 information is readily available to make that

15 determination. If the information is not readily

16 available, then the taxpayer may use any other

17 reasonable and consistent method.

18 (B-7) For taxable years ending on or after December 31,

19 2008, receipts from the sale of broadcasting services are

20 in this State if the broadcasting services are received in

21 this State. For purposes of this paragraph (B-7), the

22 following terms have the following meanings:

23 "Advertising revenue" means consideration received

24 by the taxpayer in exchange for broadcasting services

25 or allowing the broadcasting of commercials or

26 announcements in connection with the broadcasting of

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1 film or radio programming, from sponsorships of the

2 programming, or from product placements in the

3 programming.

4 "Audience factor" means the ratio that the

5 audience or subscribers located in this State of a

6 station, a network, or a cable system bears to the

7 total audience or total subscribers for that station,

8 network, or cable system. The audience factor for film

9 or radio programming shall be determined by reference

10 to the books and records of the taxpayer or by

11 reference to published rating statistics provided the

12 method used by the taxpayer is consistently used from

13 year to year for this purpose and fairly represents the

14 taxpayer's activity in this State.

15 "Broadcast" or "broadcasting" or "broadcasting

16 services" means the transmission or provision of film

17 or radio programming, whether through the public

18 airwaves, by cable, by direct or indirect satellite

19 transmission, or by any other means of communication,

20 either through a station, a network, or a cable system.

21 "Film" or "film programming" means the broadcast

22 on television of any and all performances, events, or

23 productions, including but not limited to news,

24 sporting events, plays, stories, or other literary,

25 commercial, educational, or artistic works, either

26 live or through the use of video tape, disc, or any

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1 other type of format or medium. Each episode of a

2 series of films produced for television shall

3 constitute separate "film" notwithstanding that the

4 series relates to the same principal subject and is

5 produced during one or more tax periods.

6 "Radio" or "radio programming" means the broadcast

7 on radio of any and all performances, events, or

8 productions, including but not limited to news,

9 sporting events, plays, stories, or other literary,

10 commercial, educational, or artistic works, either

11 live or through the use of an audio tape, disc, or any

12 other format or medium. Each episode in a series of

13 radio programming produced for radio broadcast shall

14 constitute a separate "radio programming"

15 notwithstanding that the series relates to the same

16 principal subject and is produced during one or more

17 tax periods.

18 (i) In the case of advertising revenue from

19 broadcasting, the customer is the advertiser and

20 the service is received in this State if the

21 commercial domicile of the advertiser is in this

22 State.

23 (ii) In the case where film or radio

24 programming is broadcast by a station, a network,

25 or a cable system for a fee or other remuneration

26 received from the recipient of the broadcast, the

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1 portion of the service that is received in this

2 State is measured by the portion of the recipients

3 of the broadcast located in this State.

4 Accordingly, the fee or other remuneration for

5 such service that is included in the Illinois

6 numerator of the sales factor is the total of those

7 fees or other remuneration received from

8 recipients in Illinois. For purposes of this

9 paragraph, a taxpayer may determine the location

10 of the recipients of its broadcast using the

11 address of the recipient shown in its contracts

12 with the recipient or using the billing address of

13 the recipient in the taxpayer's records.

14 (iii) In the case where film or radio

15 programming is broadcast by a station, a network,

16 or a cable system for a fee or other remuneration

17 from the person providing the programming, the

18 portion of the broadcast service that is received

19 by such station, network, or cable system in this

20 State is measured by the portion of recipients of

21 the broadcast located in this State. Accordingly,

22 the amount of revenue related to such an

23 arrangement that is included in the Illinois

24 numerator of the sales factor is the total fee or

25 other total remuneration from the person providing

26 the programming related to that broadcast

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1 multiplied by the Illinois audience factor for

2 that broadcast.

3 (iv) In the case where film or radio

4 programming is provided by a taxpayer that is a

5 network or station to a customer for broadcast in

6 exchange for a fee or other remuneration from that

7 customer the broadcasting service is received at

8 the location of the office of the customer from

9 which the services were ordered in the regular

10 course of the customer's trade or business.

11 Accordingly, in such a case the revenue derived by

12 the taxpayer that is included in the taxpayer's

13 Illinois numerator of the sales factor is the

14 revenue from such customers who receive the

15 broadcasting service in Illinois.

16 (v) In the case where film or radio programming

17 is provided by a taxpayer that is not a network or

18 station to another person for broadcasting in

19 exchange for a fee or other remuneration from that

20 person, the broadcasting service is received at

21 the location of the office of the customer from

22 which the services were ordered in the regular

23 course of the customer's trade or business.

24 Accordingly, in such a case the revenue derived by

25 the taxpayer that is included in the taxpayer's

26 Illinois numerator of the sales factor is the

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1 revenue from such customers who receive the

2 broadcasting service in Illinois.

3 (B-8) Gross receipts from winnings under the Illinois

4 Lottery Law from the assignment of a prize under Section

5 13.1 of the Illinois Lottery Law are received in this

6 State. This paragraph (B-8) applies only to taxable years

7 ending on or after December 31, 2013.

8 (B-9) For taxable years ending on or after December 31,

9 2017, gross receipts from winnings from pari-mutuel

10 wagering conducted at a wagering facility licensed under

11 the Illinois Horse Racing Act of 1975 or from winnings from

12 gambling games conducted on a riverboat or in a casino or

13 electronic gaming facility licensed under the Illinois

14 Gambling Act are in this State.

15 (C) For taxable years ending before December 31, 2008,

16 sales, other than sales governed by paragraphs (B), (B-1),

17 (B-2), and (B-8) are in this State if:

18 (i) The income-producing activity is performed in

19 this State; or

20 (ii) The income-producing activity is performed

21 both within and without this State and a greater

22 proportion of the income-producing activity is

23 performed within this State than without this State,

24 based on performance costs.

25 (C-5) For taxable years ending on or after December 31,

26 2008, sales, other than sales governed by paragraphs (B),

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1 (B-1), (B-2), (B-5), and (B-7), are in this State if any of

2 the following criteria are met:

3 (i) Sales from the sale or lease of real property

4 are in this State if the property is located in this

5 State.

6 (ii) Sales from the lease or rental of tangible

7 personal property are in this State if the property is

8 located in this State during the rental period. Sales

9 from the lease or rental of tangible personal property

10 that is characteristically moving property, including,

11 but not limited to, motor vehicles, rolling stock,

12 aircraft, vessels, or mobile equipment are in this

13 State to the extent that the property is used in this

14 State.

15 (iii) In the case of interest, net gains (but not

16 less than zero) and other items of income from

17 intangible personal property, the sale is in this State

18 if:

19 (a) in the case of a taxpayer who is a dealer

20 in the item of intangible personal property within

21 the meaning of Section 475 of the Internal Revenue

22 Code, the income or gain is received from a

23 customer in this State. For purposes of this

24 subparagraph, a customer is in this State if the

25 customer is an individual, trust or estate who is a

26 resident of this State and, for all other

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1 customers, if the customer's commercial domicile

2 is in this State. Unless the dealer has actual

3 knowledge of the residence or commercial domicile

4 of a customer during a taxable year, the customer

5 shall be deemed to be a customer in this State if

6 the billing address of the customer, as shown in

7 the records of the dealer, is in this State; or

8 (b) in all other cases, if the

9 income-producing activity of the taxpayer is

10 performed in this State or, if the

11 income-producing activity of the taxpayer is

12 performed both within and without this State, if a

13 greater proportion of the income-producing

14 activity of the taxpayer is performed within this

15 State than in any other state, based on performance

16 costs.

17 (iv) Sales of services are in this State if the

18 services are received in this State. For the purposes

19 of this section, gross receipts from the performance of

20 services provided to a corporation, partnership, or

21 trust may only be attributed to a state where that

22 corporation, partnership, or trust has a fixed place of

23 business. If the state where the services are received

24 is not readily determinable or is a state where the

25 corporation, partnership, or trust receiving the

26 service does not have a fixed place of business, the

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1 services shall be deemed to be received at the location

2 of the office of the customer from which the services

3 were ordered in the regular course of the customer's

4 trade or business. If the ordering office cannot be

5 determined, the services shall be deemed to be received

6 at the office of the customer to which the services are

7 billed. If the taxpayer is not taxable in the state in

8 which the services are received, the sale must be

9 excluded from both the numerator and the denominator of

10 the sales factor. The Department shall adopt rules

11 prescribing where specific types of service are

12 received, including, but not limited to, publishing,

13 and utility service.

14 (D) For taxable years ending on or after December 31,

15 1995, the following items of income shall not be included

16 in the numerator or denominator of the sales factor:

17 dividends; amounts included under Section 78 of the

18 Internal Revenue Code; and Subpart F income as defined in

19 Section 952 of the Internal Revenue Code. No inference

20 shall be drawn from the enactment of this paragraph (D) in

21 construing this Section for taxable years ending before

22 December 31, 1995.

23 (E) Paragraphs (B-1) and (B-2) shall apply to tax years

24 ending on or after December 31, 1999, provided that a

25 taxpayer may elect to apply the provisions of these

26 paragraphs to prior tax years. Such election shall be made

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1 in the form and manner prescribed by the Department, shall

2 be irrevocable, and shall apply to all tax years; provided

3 that, if a taxpayer's Illinois income tax liability for any

4 tax year, as assessed under Section 903 prior to January 1,

5 1999, was computed in a manner contrary to the provisions

6 of paragraphs (B-1) or (B-2), no refund shall be payable to

7 the taxpayer for that tax year to the extent such refund is

8 the result of applying the provisions of paragraph (B-1) or

9 (B-2) retroactively. In the case of a unitary business

10 group, such election shall apply to all members of such

11 group for every tax year such group is in existence, but

12 shall not apply to any taxpayer for any period during which

13 that taxpayer is not a member of such group.

14 (b) Insurance companies.

15 (1) In general. Except as otherwise provided by

16 paragraph (2), business income of an insurance company for

17 a taxable year shall be apportioned to this State by

18 multiplying such income by a fraction, the numerator of

19 which is the direct premiums written for insurance upon

20 property or risk in this State, and the denominator of

21 which is the direct premiums written for insurance upon

22 property or risk everywhere. For purposes of this

23 subsection, the term "direct premiums written" means the

24 total amount of direct premiums written, assessments and

25 annuity considerations as reported for the taxable year on

26 the annual statement filed by the company with the Illinois

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1 Director of Insurance in the form approved by the National

2 Convention of Insurance Commissioners or such other form as

3 may be prescribed in lieu thereof.

4 (2) Reinsurance. If the principal source of premiums

5 written by an insurance company consists of premiums for

6 reinsurance accepted by it, the business income of such

7 company shall be apportioned to this State by multiplying

8 such income by a fraction, the numerator of which is the

9 sum of (i) direct premiums written for insurance upon

10 property or risk in this State, plus (ii) premiums written

11 for reinsurance accepted in respect of property or risk in

12 this State, and the denominator of which is the sum of

13 (iii) direct premiums written for insurance upon property

14 or risk everywhere, plus (iv) premiums written for

15 reinsurance accepted in respect of property or risk

16 everywhere. For purposes of this paragraph, premiums

17 written for reinsurance accepted in respect of property or

18 risk in this State, whether or not otherwise determinable,

19 may, at the election of the company, be determined on the

20 basis of the proportion which premiums written for

21 reinsurance accepted from companies commercially domiciled

22 in Illinois bears to premiums written for reinsurance

23 accepted from all sources, or, alternatively, in the

24 proportion which the sum of the direct premiums written for

25 insurance upon property or risk in this State by each

26 ceding company from which reinsurance is accepted bears to

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1 the sum of the total direct premiums written by each such

2 ceding company for the taxable year. The election made by a

3 company under this paragraph for its first taxable year

4 ending on or after December 31, 2011, shall be binding for

5 that company for that taxable year and for all subsequent

6 taxable years, and may be altered only with the written

7 permission of the Department, which shall not be

8 unreasonably withheld.

9 (c) Financial organizations.

10 (1) In general. For taxable years ending before

11 December 31, 2008, business income of a financial

12 organization shall be apportioned to this State by

13 multiplying such income by a fraction, the numerator of

14 which is its business income from sources within this

15 State, and the denominator of which is its business income

16 from all sources. For the purposes of this subsection, the

17 business income of a financial organization from sources

18 within this State is the sum of the amounts referred to in

19 subparagraphs (A) through (E) following, but excluding the

20 adjusted income of an international banking facility as

21 determined in paragraph (2):

22 (A) Fees, commissions or other compensation for

23 financial services rendered within this State;

24 (B) Gross profits from trading in stocks, bonds or

25 other securities managed within this State;

26 (C) Dividends, and interest from Illinois

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1 customers, which are received within this State;

2 (D) Interest charged to customers at places of

3 business maintained within this State for carrying

4 debit balances of margin accounts, without deduction

5 of any costs incurred in carrying such accounts; and

6 (E) Any other gross income resulting from the

7 operation as a financial organization within this

8 State. In computing the amounts referred to in

9 paragraphs (A) through (E) of this subsection, any

10 amount received by a member of an affiliated group

11 (determined under Section 1504(a) of the Internal

12 Revenue Code but without reference to whether any such

13 corporation is an "includible corporation" under

14 Section 1504(b) of the Internal Revenue Code) from

15 another member of such group shall be included only to

16 the extent such amount exceeds expenses of the

17 recipient directly related thereto.

18 (2) International Banking Facility. For taxable years

19 ending before December 31, 2008:

20 (A) Adjusted Income. The adjusted income of an

21 international banking facility is its income reduced

22 by the amount of the floor amount.

23 (B) Floor Amount. The floor amount shall be the

24 amount, if any, determined by multiplying the income of

25 the international banking facility by a fraction, not

26 greater than one, which is determined as follows:

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1 (i) The numerator shall be:

2 The average aggregate, determined on a

3 quarterly basis, of the financial organization's

4 loans to banks in foreign countries, to foreign

5 domiciled borrowers (except where secured

6 primarily by real estate) and to foreign

7 governments and other foreign official

8 institutions, as reported for its branches,

9 agencies and offices within the state on its

10 "Consolidated Report of Condition", Schedule A,

11 Lines 2.c., 5.b., and 7.a., which was filed with

12 the Federal Deposit Insurance Corporation and

13 other regulatory authorities, for the year 1980,

14 minus

15 The average aggregate, determined on a

16 quarterly basis, of such loans (other than loans of

17 an international banking facility), as reported by

18 the financial institution for its branches,

19 agencies and offices within the state, on the

20 corresponding Schedule and lines of the

21 Consolidated Report of Condition for the current

22 taxable year, provided, however, that in no case

23 shall the amount determined in this clause (the

24 subtrahend) exceed the amount determined in the

25 preceding clause (the minuend); and

26 (ii) the denominator shall be the average

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1 aggregate, determined on a quarterly basis, of the

2 international banking facility's loans to banks in

3 foreign countries, to foreign domiciled borrowers

4 (except where secured primarily by real estate)

5 and to foreign governments and other foreign

6 official institutions, which were recorded in its

7 financial accounts for the current taxable year.

8 (C) Change to Consolidated Report of Condition and

9 in Qualification. In the event the Consolidated Report

10 of Condition which is filed with the Federal Deposit

11 Insurance Corporation and other regulatory authorities

12 is altered so that the information required for

13 determining the floor amount is not found on Schedule

14 A, lines 2.c., 5.b. and 7.a., the financial institution

15 shall notify the Department and the Department may, by

16 regulations or otherwise, prescribe or authorize the

17 use of an alternative source for such information. The

18 financial institution shall also notify the Department

19 should its international banking facility fail to

20 qualify as such, in whole or in part, or should there

21 be any amendment or change to the Consolidated Report

22 of Condition, as originally filed, to the extent such

23 amendment or change alters the information used in

24 determining the floor amount.

25 (3) For taxable years ending on or after December 31,

26 2008, the business income of a financial organization shall

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1 be apportioned to this State by multiplying such income by

2 a fraction, the numerator of which is its gross receipts

3 from sources in this State or otherwise attributable to

4 this State's marketplace and the denominator of which is

5 its gross receipts everywhere during the taxable year.

6 "Gross receipts" for purposes of this subparagraph (3)

7 means gross income, including net taxable gain on

8 disposition of assets, including securities and money

9 market instruments, when derived from transactions and

10 activities in the regular course of the financial

11 organization's trade or business. The following examples

12 are illustrative:

13 (i) Receipts from the lease or rental of real or

14 tangible personal property are in this State if the

15 property is located in this State during the rental

16 period. Receipts from the lease or rental of tangible

17 personal property that is characteristically moving

18 property, including, but not limited to, motor

19 vehicles, rolling stock, aircraft, vessels, or mobile

20 equipment are from sources in this State to the extent

21 that the property is used in this State.

22 (ii) Interest income, commissions, fees, gains on

23 disposition, and other receipts from assets in the

24 nature of loans that are secured primarily by real

25 estate or tangible personal property are from sources

26 in this State if the security is located in this State.

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1 (iii) Interest income, commissions, fees, gains on

2 disposition, and other receipts from consumer loans

3 that are not secured by real or tangible personal

4 property are from sources in this State if the debtor

5 is a resident of this State.

6 (iv) Interest income, commissions, fees, gains on

7 disposition, and other receipts from commercial loans

8 and installment obligations that are not secured by

9 real or tangible personal property are from sources in

10 this State if the proceeds of the loan are to be

11 applied in this State. If it cannot be determined where

12 the funds are to be applied, the income and receipts

13 are from sources in this State if the office of the

14 borrower from which the loan was negotiated in the

15 regular course of business is located in this State. If

16 the location of this office cannot be determined, the

17 income and receipts shall be excluded from the

18 numerator and denominator of the sales factor.

19 (v) Interest income, fees, gains on disposition,

20 service charges, merchant discount income, and other

21 receipts from credit card receivables are from sources

22 in this State if the card charges are regularly billed

23 to a customer in this State.

24 (vi) Receipts from the performance of services,

25 including, but not limited to, fiduciary, advisory,

26 and brokerage services, are in this State if the

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1 services are received in this State within the meaning

2 of subparagraph (a)(3)(C-5)(iv) of this Section.

3 (vii) Receipts from the issuance of travelers

4 checks and money orders are from sources in this State

5 if the checks and money orders are issued from a

6 location within this State.

7 (viii) Receipts from investment assets and

8 activities and trading assets and activities are

9 included in the receipts factor as follows:

10 (1) Interest, dividends, net gains (but not

11 less than zero) and other income from investment

12 assets and activities from trading assets and

13 activities shall be included in the receipts

14 factor. Investment assets and activities and

15 trading assets and activities include but are not

16 limited to: investment securities; trading account

17 assets; federal funds; securities purchased and

18 sold under agreements to resell or repurchase;

19 options; futures contracts; forward contracts;

20 notional principal contracts such as swaps;

21 equities; and foreign currency transactions. With

22 respect to the investment and trading assets and

23 activities described in subparagraphs (A) and (B)

24 of this paragraph, the receipts factor shall

25 include the amounts described in such

26 subparagraphs.

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1 (A) The receipts factor shall include the

2 amount by which interest from federal funds

3 sold and securities purchased under resale

4 agreements exceeds interest expense on federal

5 funds purchased and securities sold under

6 repurchase agreements.

7 (B) The receipts factor shall include the

8 amount by which interest, dividends, gains and

9 other income from trading assets and

10 activities, including but not limited to

11 assets and activities in the matched book, in

12 the arbitrage book, and foreign currency

13 transactions, exceed amounts paid in lieu of

14 interest, amounts paid in lieu of dividends,

15 and losses from such assets and activities.

16 (2) The numerator of the receipts factor

17 includes interest, dividends, net gains (but not

18 less than zero), and other income from investment

19 assets and activities and from trading assets and

20 activities described in paragraph (1) of this

21 subsection that are attributable to this State.

22 (A) The amount of interest, dividends, net

23 gains (but not less than zero), and other

24 income from investment assets and activities

25 in the investment account to be attributed to

26 this State and included in the numerator is

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1 determined by multiplying all such income from

2 such assets and activities by a fraction, the

3 numerator of which is the gross income from

4 such assets and activities which are properly

5 assigned to a fixed place of business of the

6 taxpayer within this State and the denominator

7 of which is the gross income from all such

8 assets and activities.

9 (B) The amount of interest from federal

10 funds sold and purchased and from securities

11 purchased under resale agreements and

12 securities sold under repurchase agreements

13 attributable to this State and included in the

14 numerator is determined by multiplying the

15 amount described in subparagraph (A) of

16 paragraph (1) of this subsection from such

17 funds and such securities by a fraction, the

18 numerator of which is the gross income from

19 such funds and such securities which are

20 properly assigned to a fixed place of business

21 of the taxpayer within this State and the

22 denominator of which is the gross income from

23 all such funds and such securities.

24 (C) The amount of interest, dividends,

25 gains, and other income from trading assets and

26 activities, including but not limited to

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1 assets and activities in the matched book, in

2 the arbitrage book and foreign currency

3 transactions (but excluding amounts described

4 in subparagraphs (A) or (B) of this paragraph),

5 attributable to this State and included in the

6 numerator is determined by multiplying the

7 amount described in subparagraph (B) of

8 paragraph (1) of this subsection by a fraction,

9 the numerator of which is the gross income from

10 such trading assets and activities which are

11 properly assigned to a fixed place of business

12 of the taxpayer within this State and the

13 denominator of which is the gross income from

14 all such assets and activities.

15 (D) Properly assigned, for purposes of

16 this paragraph (2) of this subsection, means

17 the investment or trading asset or activity is

18 assigned to the fixed place of business with

19 which it has a preponderance of substantive

20 contacts. An investment or trading asset or

21 activity assigned by the taxpayer to a fixed

22 place of business without the State shall be

23 presumed to have been properly assigned if:

24 (i) the taxpayer has assigned, in the

25 regular course of its business, such asset

26 or activity on its records to a fixed place

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1 of business consistent with federal or

2 state regulatory requirements;

3 (ii) such assignment on its records is

4 based upon substantive contacts of the

5 asset or activity to such fixed place of

6 business; and

7 (iii) the taxpayer uses such records

8 reflecting assignment of such assets or

9 activities for the filing of all state and

10 local tax returns for which an assignment

11 of such assets or activities to a fixed

12 place of business is required.

13 (E) The presumption of proper assignment

14 of an investment or trading asset or activity

15 provided in subparagraph (D) of paragraph (2)

16 of this subsection may be rebutted upon a

17 showing by the Department, supported by a

18 preponderance of the evidence, that the

19 preponderance of substantive contacts

20 regarding such asset or activity did not occur

21 at the fixed place of business to which it was

22 assigned on the taxpayer's records. If the

23 fixed place of business that has a

24 preponderance of substantive contacts cannot

25 be determined for an investment or trading

26 asset or activity to which the presumption in

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1 subparagraph (D) of paragraph (2) of this

2 subsection does not apply or with respect to

3 which that presumption has been rebutted, that

4 asset or activity is properly assigned to the

5 state in which the taxpayer's commercial

6 domicile is located. For purposes of this

7 subparagraph (E), it shall be presumed,

8 subject to rebuttal, that taxpayer's

9 commercial domicile is in the state of the

10 United States or the District of Columbia to

11 which the greatest number of employees are

12 regularly connected with the management of the

13 investment or trading income or out of which

14 they are working, irrespective of where the

15 services of such employees are performed, as of

16 the last day of the taxable year.

17 (4) (Blank).

18 (5) (Blank).

19 (c-1) Federally regulated exchanges. For taxable years

20 ending on or after December 31, 2012, business income of a

21 federally regulated exchange shall, at the option of the

22 federally regulated exchange, be apportioned to this State by

23 multiplying such income by a fraction, the numerator of which

24 is its business income from sources within this State, and the

25 denominator of which is its business income from all sources.

26 For purposes of this subsection, the business income within

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1 this State of a federally regulated exchange is the sum of the

2 following:

3 (1) Receipts attributable to transactions executed on

4 a physical trading floor if that physical trading floor is

5 located in this State.

6 (2) Receipts attributable to all other matching,

7 execution, or clearing transactions, including without

8 limitation receipts from the provision of matching,

9 execution, or clearing services to another entity,

10 multiplied by (i) for taxable years ending on or after

11 December 31, 2012 but before December 31, 2013, 63.77%; and

12 (ii) for taxable years ending on or after December 31,

13 2013, 27.54%.

14 (3) All other receipts not governed by subparagraphs

15 (1) or (2) of this subsection (c-1), to the extent the

16 receipts would be characterized as "sales in this State"

17 under item (3) of subsection (a) of this Section.

18 "Federally regulated exchange" means (i) a "registered

19 entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),

20 or (C), (ii) an "exchange" or "clearing agency" within the

21 meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such

22 entities regulated under any successor regulatory structure to

23 the foregoing, and (iv) all taxpayers who are members of the

24 same unitary business group as a federally regulated exchange,

25 determined without regard to the prohibition in Section

26 1501(a)(27) of this Act against including in a unitary business

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1 group taxpayers who are ordinarily required to apportion

2 business income under different subsections of this Section;

3 provided that this subparagraph (iv) shall apply only if 50% or

4 more of the business receipts of the unitary business group

5 determined by application of this subparagraph (iv) for the

6 taxable year are attributable to the matching, execution, or

7 clearing of transactions conducted by an entity described in

8 subparagraph (i), (ii), or (iii) of this paragraph.

9 In no event shall the Illinois apportionment percentage

10 computed in accordance with this subsection (c-1) for any

11 taxpayer for any tax year be less than the Illinois

12 apportionment percentage computed under this subsection (c-1)

13 for that taxpayer for the first full tax year ending on or

14 after December 31, 2013 for which this subsection (c-1) applied

15 to the taxpayer.

16 (d) Transportation services. For taxable years ending

17 before December 31, 2008, business income derived from

18 furnishing transportation services shall be apportioned to

19 this State in accordance with paragraphs (1) and (2):

20 (1) Such business income (other than that derived from

21 transportation by pipeline) shall be apportioned to this

22 State by multiplying such income by a fraction, the

23 numerator of which is the revenue miles of the person in

24 this State, and the denominator of which is the revenue

25 miles of the person everywhere. For purposes of this

26 paragraph, a revenue mile is the transportation of 1

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1 passenger or 1 net ton of freight the distance of 1 mile

2 for a consideration. Where a person is engaged in the

3 transportation of both passengers and freight, the

4 fraction above referred to shall be determined by means of

5 an average of the passenger revenue mile fraction and the

6 freight revenue mile fraction, weighted to reflect the

7 person's

8 (A) relative railway operating income from total

9 passenger and total freight service, as reported to the

10 Interstate Commerce Commission, in the case of

11 transportation by railroad, and

12 (B) relative gross receipts from passenger and

13 freight transportation, in case of transportation

14 other than by railroad.

15 (2) Such business income derived from transportation

16 by pipeline shall be apportioned to this State by

17 multiplying such income by a fraction, the numerator of

18 which is the revenue miles of the person in this State, and

19 the denominator of which is the revenue miles of the person

20 everywhere. For the purposes of this paragraph, a revenue

21 mile is the transportation by pipeline of 1 barrel of oil,

22 1,000 cubic feet of gas, or of any specified quantity of

23 any other substance, the distance of 1 mile for a

24 consideration.

25 (3) For taxable years ending on or after December 31,

26 2008, business income derived from providing

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1 transportation services other than airline services shall

2 be apportioned to this State by using a fraction, (a) the

3 numerator of which shall be (i) all receipts from any

4 movement or shipment of people, goods, mail, oil, gas, or

5 any other substance (other than by airline) that both

6 originates and terminates in this State, plus (ii) that

7 portion of the person's gross receipts from movements or

8 shipments of people, goods, mail, oil, gas, or any other

9 substance (other than by airline) that originates in one

10 state or jurisdiction and terminates in another state or

11 jurisdiction, that is determined by the ratio that the

12 miles traveled in this State bears to total miles

13 everywhere and (b) the denominator of which shall be all

14 revenue derived from the movement or shipment of people,

15 goods, mail, oil, gas, or any other substance (other than

16 by airline). Where a taxpayer is engaged in the

17 transportation of both passengers and freight, the

18 fraction above referred to shall first be determined

19 separately for passenger miles and freight miles. Then an

20 average of the passenger miles fraction and the freight

21 miles fraction shall be weighted to reflect the taxpayer's:

22 (A) relative railway operating income from total

23 passenger and total freight service, as reported to the

24 Surface Transportation Board, in the case of

25 transportation by railroad; and

26 (B) relative gross receipts from passenger and

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1 freight transportation, in case of transportation

2 other than by railroad.

3 (4) For taxable years ending on or after December 31,

4 2008, business income derived from furnishing airline

5 transportation services shall be apportioned to this State

6 by multiplying such income by a fraction, the numerator of

7 which is the revenue miles of the person in this State, and

8 the denominator of which is the revenue miles of the person

9 everywhere. For purposes of this paragraph, a revenue mile

10 is the transportation of one passenger or one net ton of

11 freight the distance of one mile for a consideration. If a

12 person is engaged in the transportation of both passengers

13 and freight, the fraction above referred to shall be

14 determined by means of an average of the passenger revenue

15 mile fraction and the freight revenue mile fraction,

16 weighted to reflect the person's relative gross receipts

17 from passenger and freight airline transportation.

18 (e) Combined apportionment. Where 2 or more persons are

19 engaged in a unitary business as described in subsection

20 (a)(27) of Section 1501, a part of which is conducted in this

21 State by one or more members of the group, the business income

22 attributable to this State by any such member or members shall

23 be apportioned by means of the combined apportionment method.

24 (f) Alternative allocation. If the allocation and

25 apportionment provisions of subsections (a) through (e) and of

26 subsection (h) do not, for taxable years ending before December

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1 31, 2008, fairly represent the extent of a person's business

2 activity in this State, or, for taxable years ending on or

3 after December 31, 2008, fairly represent the market for the

4 person's goods, services, or other sources of business income,

5 the person may petition for, or the Director may, without a

6 petition, permit or require, in respect of all or any part of

7 the person's business activity, if reasonable:

8 (1) Separate accounting;

9 (2) The exclusion of any one or more factors;

10 (3) The inclusion of one or more additional factors

11 which will fairly represent the person's business

12 activities or market in this State; or

13 (4) The employment of any other method to effectuate an

14 equitable allocation and apportionment of the person's

15 business income.

16 (g) Cross reference. For allocation of business income by

17 residents, see Section 301(a).

18 (h) For tax years ending on or after December 31, 1998, the

19 apportionment factor of persons who apportion their business

20 income to this State under subsection (a) shall be equal to:

21 (1) for tax years ending on or after December 31, 1998

22 and before December 31, 1999, 16 2/3% of the property

23 factor plus 16 2/3% of the payroll factor plus 66 2/3% of

24 the sales factor;

25 (2) for tax years ending on or after December 31, 1999

26 and before December 31, 2000, 8 1/3% of the property factor

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1 plus 8 1/3% of the payroll factor plus 83 1/3% of the sales

2 factor;

3 (3) for tax years ending on or after December 31, 2000,

4 the sales factor.

5 If, in any tax year ending on or after December 31, 1998 and

6 before December 31, 2000, the denominator of the payroll,

7 property, or sales factor is zero, the apportionment factor

8 computed in paragraph (1) or (2) of this subsection for that

9 year shall be divided by an amount equal to 100% minus the

10 percentage weight given to each factor whose denominator is

11 equal to zero.

12 (Source: P.A. 98-478, eff. 1-1-14; 98-496, eff. 1-1-14; 98-756,

13 eff. 7-16-14; 99-642, eff. 7-28-16; revised 11-14-16.)

14 (35 ILCS 5/710) (from Ch. 120, par. 7-710)

15 Sec. 710. Withholding from lottery winnings.

16 (a) In general.

17 (1) Any person making a payment to a resident or

18 nonresident of winnings under the Illinois Lottery Law and

19 not required to withhold Illinois income tax from such

20 payment under Subsection (b) of Section 701 of this Act

21 because those winnings are not subject to Federal income

22 tax withholding, must withhold Illinois income tax from

23 such payment at a rate equal to the percentage tax rate for

24 individuals provided in subsection (b) of Section 201,

25 provided that withholding is not required if such payment

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1 of winnings is less than $1,000.

2 (2) In the case of an assignment of a lottery prize

3 under Section 13.1 of the Illinois Lottery Law, any person

4 making a payment of the purchase price after December 31,

5 2013, shall withhold from the amount of each payment at a

6 rate equal to the percentage tax rate for individuals

7 provided in subsection (b) of Section 201.

8 (3) Any person making a payment after December 31, 2017

9 to a resident or nonresident of winnings from pari-mutuel

10 wagering conducted at a wagering facility licensed under

11 the Illinois Horse Racing Act of 1975 or from gambling

12 games conducted on a riverboat or in a casino or electronic

13 gaming facility licensed under the Illinois Gambling Act

14 must withhold Illinois income tax from such payment at a

15 rate equal to the percentage tax rate for individuals

16 provided in subsection (b) of Section 201, provided that

17 the person making the payment is required to withhold under

18 Section 3402(q) of the Internal Revenue Code.

19 (b) Credit for taxes withheld. Any amount withheld under

20 Subsection (a) shall be a credit against the Illinois income

21 tax liability of the person to whom the payment of winnings was

22 made for the taxable year in which that person incurred an

23 Illinois income tax liability with respect to those winnings.

24 (Source: P.A. 98-496, eff. 1-1-14.)

25 Section 90-23. The Property Tax Code is amended by adding

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1 Section 15-144 as follows:

2 (35 ILCS 200/15-144 new)

3 Sec. 15-144. Chicago Casino Development Authority. All

4 property owned by the Chicago Casino Development Authority is

5 exempt. Any property owned by the Chicago Casino Development

6 Authority and leased to any other entity is not exempt.

7 Section 90-24. The Illinois Municipal Code is amended by

8 adding Section 8-10-2.6 as follows:

9 (65 ILCS 5/8-10-2.6 new)

10 Sec. 8-10-2.6. Chicago Casino Development Authority.

11 Except as otherwise provided in the Chicago Casino Development

12 Authority Act, this Division 10 applies to purchase orders and

13 contracts relating to the Chicago Casino Development

14 Authority.

15 Section 90-25. The Joliet Regional Port District Act is

16 amended by changing Section 5.1 as follows:

17 (70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)

18 Sec. 5.1. Riverboat and casino gambling. Notwithstanding

19 any other provision of this Act, the District may not regulate

20 the operation, conduct, or navigation of any riverboat gambling

21 casino licensed under the Illinois ~~Riverboat~~Gambling Act, and

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1 the District may not license, tax, or otherwise levy any

2 assessment of any kind on any riverboat gambling casino

3 licensed under the Illinois ~~Riverboat~~Gambling Act. The General

4 Assembly declares that the powers to regulate the operation,

5 conduct, and navigation of riverboat gambling casinos and to

6 license, tax, and levy assessments upon riverboat gambling

7 casinos are exclusive powers of the State of Illinois and the

8 Illinois Gaming Board as provided in theIllinois ~~Riverboat~~

9 Gambling Act.

10 (Source: P.A. 87-1175.)

11 Section 90-30. The Consumer Installment Loan Act is amended

12 by changing Section 12.5 as follows:

13 (205 ILCS 670/12.5)

14 Sec. 12.5. Limited purpose branch.

15 (a) Upon the written approval of the Director, a licensee

16 may maintain a limited purpose branch for the sole purpose of

17 making loans as permitted by this Act. A limited purpose branch

18 may include an automatic loan machine. No other activity shall

19 be conducted at the site, including but not limited to,

20 accepting payments, servicing the accounts, or collections.

21 (b) The licensee must submit an application for a limited

22 purpose branch to the Director on forms prescribed by the

23 Director with an application fee of $300. The approval for the

24 limited purpose branch must be renewed concurrently with the

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1 renewal of the licensee's license along with a renewal fee of

2 $300 for the limited purpose branch.

3 (c) The books, accounts, records, and files of the limited

4 purpose branch's transactions shall be maintained at the

5 licensee's licensed location. The licensee shall notify the

6 Director of the licensed location at which the books, accounts,

7 records, and files shall be maintained.

8 (d) The licensee shall prominently display at the limited

9 purpose branch the address and telephone number of the

10 licensee's licensed location.

11 (e) No other business shall be conducted at the site of the

12 limited purpose branch unless authorized by the Director.

13 (f) The Director shall make and enforce reasonable rules

14 for the conduct of a limited purpose branch.

15 (g) A limited purpose branch may not be located within

16 1,000 feet of a facility operated by an inter-track wagering

17 licensee or an organization licensee subject to the Illinois

18 Horse Racing Act of 1975, on a riverboator in a casino subject

19 to theIllinois ~~Riverboat~~ Gambling Act, or within 1,000 feet of

20 the location at which the riverboat docksor within 1,000 feet

21 of a casino.

22 (Source: P.A. 90-437, eff. 1-1-98.)

23 Section 90-35. The Illinois Horse Racing Act of 1975 is

24 amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,

25 20, 21, 24, 25, 26, 26.8, 26.9, 27, 30, 30.5, 31, 32.1, 36, 40,

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1 and 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,

2 34.3, and 56 as follows:

3 (230 ILCS 5/1.2)

4 Sec. 1.2. Legislative intent. This Act is intended to

5 benefit the people of the State of Illinois byencouraging the

6 breeding and production of race horses,assisting economic

7 development and promoting Illinois tourism. The General

8 Assembly finds and declares it to be the public policy of the

9 State of Illinois to:

10 (a) support and enhance Illinois' horse racing industry,

11 which is a significant component within the agribusiness

12 industry;

13 (b) ensure that Illinois' horse racing industry remains

14 competitive with neighboring states;

15 (c) stimulate growth within Illinois' horse racing

16 industry, thereby encouraging new investment and development

17 to produce additional tax revenues and to create additional

18 jobs;

19 (d) promote the further growth of tourism;

20 (e) encourage the breeding of thoroughbred and

21 standardbred horses in this State; and

22 (f) ensure that public confidence and trust in the

23 credibility and integrity of racing operations and the

24 regulatory process is maintained.

25 (Source: P.A. 91-40, eff. 6-25-99.)

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1 (230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)

2 Sec. 3.11. "Organization Licensee" means any person

3 receiving an organization license from the Board to conduct a

4 race meeting or meetings. With respect only to electronic

5 gaming, "organization licensee" includes the authorization for

6 an electronic gaming license under subsection (a) of Section 56

7 of this Act.

8 (Source: P.A. 79-1185.)

9 (230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)

10 Sec. 3.12. Pari-mutuel system of wagering."Pari-mutuel

11 system of wagering" means a form of wagering on the outcome of

12 horse races in which wagers are made in various denominations

13 on a horse or horses and all wagers for each race are pooled

14 and held by a licensee for distribution in a manner approved by

15 the Board. "Pari-mutuel system of wagering" shall not include

16 wagering on historic races. Wagers may be placed via any method

17 or at any location authorized under this Act.

18 (Source: P.A. 96-762, eff. 8-25-09.)

19 (230 ILCS 5/3.31 new)

20 Sec. 3.31. Adjusted gross receipts. "Adjusted gross

21 receipts" means the gross receipts less winnings paid to

22 wagerers.

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1 (230 ILCS 5/3.32 new)

2 Sec. 3.32. Gross receipts. "Gross receipts" means the total

3 amount of money exchanged for the purchase of chips, tokens, or

4 electronic cards by riverboat or casino patrons or electronic

5 gaming patrons.

6 (230 ILCS 5/3.33 new)

7 Sec. 3.33. Electronic gaming. "Electronic gaming" means

8 slot machine gambling, video game of chance gambling, or

9 gambling with electronic gambling games as defined in the

10 Illinois Gambling Act or defined by the Illinois Gaming Board

11 that is conducted at a race track pursuant to an electronic

12 gaming license.

13 (230 ILCS 5/3.35 new)

14 Sec. 3.35. Electronic gaming license. "Electronic gaming

15 license" means a license issued by the Illinois Gaming Board

16 under Section 7.7 of the Illinois Gambling Act authorizing

17 electronic gaming at an electronic gaming facility.

18 (230 ILCS 5/3.36 new)

19 Sec. 3.36. Electronic gaming facility. "Electronic gaming

20 facility" means that portion of an organization licensee's race

21 track facility at which electronic gaming is conducted.

22 (230 ILCS 5/6) (from Ch. 8, par. 37-6)

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1 Sec. 6. Restrictions on Board members.

2 (a) No person shall be appointed a member of the Board or

3 continue to be a member of the Board if the person or any

4 member of their immediate family is a member of the Board of

5 Directors, employee, or financially interested in any of the

6 following: (i) any licensee or other person who has applied for

7 racing dates to the Board, or the operations thereof including,

8 but not limited to, concessions, data processing, track

9 maintenance, track security, and pari-mutuel operations,

10 located, scheduled or doing business within the State of

11 Illinois, (ii) any race horse competing at a meeting under the

12 Board's jurisdiction, or (iii) any licensee under the Illinois

13 Gambling Act. ~~No person shall be appointed a member of the~~

14 ~~Board or continue to be a member of the Board who is (or any~~

15 ~~member of whose family is) a member of the Board of Directors~~

16 ~~of, or who is a person financially interested in, any licensee~~

17 ~~or other person who has applied for racing dates to the Board,~~

18 ~~or the operations thereof including, but not limited to,~~

19 ~~concessions, data processing, track maintenance, track~~

20 ~~security and pari-mutuel operations, located, scheduled or~~

21 ~~doing business within the State of Illinois, or in any race~~

22 ~~horse competing at a meeting under the Board's jurisdiction. No~~

23 ~~Board member shall hold any other public office for which he~~

24 ~~shall receive compensation other than necessary travel or other~~

25 ~~incidental expenses.~~

26 (b) No person shall be a member of the Board who is not of

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1 good moral character or who has been convicted of, or is under

2 indictment for, a felony under the laws of Illinois or any

3 other state, or the United States.

4 (c) No member of the Board or employee shall engage in any

5 political activity.

6 For the purposes of this subsection (c):

7 "Political" means any activity in support of or in

8 connection with any campaign for State or local elective office

9 or any political organization, but does not include activities

10 (i) relating to the support or opposition of any executive,

11 legislative, or administrative action (as those terms are

12 defined in Section 2 of the Lobbyist Registration Act), (ii)

13 relating to collective bargaining, or (iii) that are otherwise

14 in furtherance of the person's official State duties or

15 governmental and public service functions.

16 "Political organization" means a party, committee,

17 association, fund, or other organization (whether or not

18 incorporated) that is required to file a statement of

19 organization with the State Board of Elections or county clerk

20 under Section 9-3 of the Election Code, but only with regard to

21 those activities that require filing with the State Board of

22 Elections or county clerk.

23 (d) Board members and employees may not engage in

24 communications or any activity that may cause or have the

25 appearance of causing a conflict of interest. A conflict of

26 interest exists if a situation influences or creates the

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1 appearance that it may influence judgment or performance of

2 regulatory duties and responsibilities. This prohibition shall

3 extend to any act identified by Board action that, in the

4 judgment of the Board, could represent the potential for or the

5 appearance of a conflict of interest.

6 (e) Board members and employees may not accept any gift,

7 gratuity, service, compensation, travel, lodging, or thing of

8 value, with the exception of unsolicited items of an incidental

9 nature, from any person, corporation, limited liability

10 company, or entity doing business with the Board.

11 (f) A Board member or employee shall not use or attempt to

12 use his or her official position to secure, or attempt to

13 secure, any privilege, advantage, favor, or influence for

14 himself or herself or others. No Board member or employee,

15 within a period of one year immediately preceding nomination by

16 the Governor or employment, shall have been employed or

17 received compensation or fees for services from a person or

18 entity, or its parent or affiliate, that has engaged in

19 business with the Board, a licensee or a licensee under the

20 Illinois Gambling Act. In addition, all Board members and

21 employees are subject to the restrictions set forth in Section

22 5-45 of the State Officials and Employees Ethics Act.

23 (Source: P.A. 89-16, eff. 5-30-95.)

24 (230 ILCS 5/9) (from Ch. 8, par. 37-9)

25 Sec. 9. The Board shall have all powers necessary and

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1 proper to fully and effectively execute the provisions of this

2 Act, including, but not limited to, the following:

3 (a) The Board is vested with jurisdiction and supervision

4 over all race meetings in this State, over all licensees doing

5 business in this State, over all occupation licensees, and over

6 all persons on the facilities of any licensee. Such

7 jurisdiction shall include the power to issue licenses to the

8 Illinois Department of Agriculture authorizing the pari-mutuel

9 system of wagering on harness and Quarter Horse races held (1)

10 at the Illinois State Fair in Sangamon County, and (2) at the

11 DuQuoin State Fair in Perry County. The jurisdiction of the

12 Board shall also include the power to issue licenses to county

13 fairs which are eligible to receive funds pursuant to the

14 Agricultural Fair Act, as now or hereafter amended, or their

15 agents, authorizing the pari-mutuel system of wagering on horse

16 races conducted at the county fairs receiving such licenses.

17 Such licenses shall be governed by subsection (n) of this

18 Section.

19 Upon application, the Board shall issue a license to the

20 Illinois Department of Agriculture to conduct harness and

21 Quarter Horse races at the Illinois State Fair and at the

22 DuQuoin State Fairgrounds during the scheduled dates of each

23 fair. The Board shall not require and the Department of

24 Agriculture shall be exempt from the requirements of Sections

25 15.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),

26 (e-10), (f), (g), and (h) of Section 20, and Sections 21, 24

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1 and 25. The Board and the Department of Agriculture may extend

2 any or all of these exemptions to any contractor or agent

3 engaged by the Department of Agriculture to conduct its race

4 meetings when the Board determines that this would best serve

5 the public interest and the interest of horse racing.

6 Notwithstanding any provision of law to the contrary, it

7 shall be lawful for any licensee to operate pari-mutuel

8 wagering or contract with the Department of Agriculture to

9 operate pari-mutuel wagering at the DuQuoin State Fairgrounds

10 or for the Department to enter into contracts with a licensee,

11 employ its owners, employees or agents and employ such other

12 occupation licensees as the Department deems necessary in

13 connection with race meetings and wagerings.

14 (b) The Board is vested with the full power to promulgate

15 reasonable rules and regulations for the purpose of

16 administering the provisions of this Act and to prescribe

17 reasonable rules, regulations and conditions under which all

18 horse race meetings or wagering in the State shall be

19 conducted. Such reasonable rules and regulations are to provide

20 for the prevention of practices detrimental to the public

21 interest and to promote the best interests of horse racing and

22 to impose penalties for violations thereof.

23 (c) The Board, and any person or persons to whom it

24 delegates this power, is vested with the power to enter the

25 facilities and other places of business of any licensee to

26 determine whether there has been compliance with the provisions

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1 of this Act and its rules and regulations.

2 (d) The Board, and any person or persons to whom it

3 delegates this power, is vested with the authority to

4 investigate alleged violations of the provisions of this Act,

5 its reasonable rules and regulations, orders and final

6 decisions; the Board shall take appropriate disciplinary

7 action against any licensee or occupation licensee for

8 violation thereof or institute appropriate legal action for the

9 enforcement thereof.

10 (e) The Board, and any person or persons to whom it

11 delegates this power, may eject or exclude from any race

12 meeting or the facilities of any licensee, or any part thereof,

13 any occupation licensee or any other individual whose conduct

14 or reputation is such that his presence on those facilities

15 may, in the opinion of the Board, call into question the

16 honesty and integrity of horse racing or wagering or interfere

17 with the orderly conduct of horse racing or wagering; provided,

18 however, that no person shall be excluded or ejected from the

19 facilities of any licensee solely on the grounds of race,

20 color, creed, national origin, ancestry, or sex. The power to

21 eject or exclude an occupation licensee or other individual may

22 be exercised for just cause by the licensee or the Board,

23 subject to subsequent hearing by the Board as to the propriety

24 of said exclusion.

25 (f) The Board is vested with the power to acquire,

26 establish, maintain and operate (or provide by contract to

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1 maintain and operate) testing laboratories and related

2 facilities, for the purpose of conducting saliva, blood, urine

3 and other tests on the horses run or to be run in any horse race

4 meeting, including races run at county fairs, and to purchase

5 all equipment and supplies deemed necessary or desirable in

6 connection with any such testing laboratories and related

7 facilities and all such tests.

8 (g) The Board may require that the records, including

9 financial or other statements of any licensee or any person

10 affiliated with the licensee who is involved directly or

11 indirectly in the activities of any licensee as regulated under

12 this Act to the extent that those financial or other statements

13 relate to such activities be kept in such manner as prescribed

14 by the Board, and that Board employees shall have access to

15 those records during reasonable business hours. Within 120 days

16 of the end of its fiscal year, each licensee shall transmit to

17 the Board an audit of the financial transactions and condition

18 of the licensee's total operations. All audits shall be

19 conducted by certified public accountants. Each certified

20 public accountant must be registered in the State of Illinois

21 under the Illinois Public Accounting Act. The compensation for

22 each certified public accountant shall be paid directly by the

23 licensee to the certified public accountant. A licensee shall

24 also submit any other financial or related information the

25 Board deems necessary to effectively administer this Act and

26 all rules, regulations, and final decisions promulgated under

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1 this Act.

2 (h) The Board shall name and appoint in the manner provided

3 by the rules and regulations of the Board: an Executive

4 Director; a State director of mutuels; State veterinarians and

5 representatives to take saliva, blood, urine and other tests on

6 horses; licensing personnel; revenue inspectors; and State

7 seasonal employees (excluding admission ticket sellers and

8 mutuel clerks). All of those named and appointed as provided in

9 this subsection shall serve during the pleasure of the Board;

10 their compensation shall be determined by the Board and be paid

11 in the same manner as other employees of the Board under this

12 Act.

13 (i) The Board shall require that there shall be 3 stewards

14 at each horse race meeting, at least 2 of whom shall be named

15 and appointed by the Board. Stewards appointed or approved by

16 the Board, while performing duties required by this Act or by

17 the Board, shall be entitled to the same rights and immunities

18 as granted to Board members and Board employees in Section 10

19 of this Act.

20 (j) The Board may discharge any Board employee who fails or

21 refuses for any reason to comply with the rules and regulations

22 of the Board, or who, in the opinion of the Board, is guilty of

23 fraud, dishonesty or who is proven to be incompetent. The Board

24 shall have no right or power to determine who shall be

25 officers, directors or employees of any licensee, or their

26 salaries except the Board may, by rule, require that all or any

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1 officials or employees in charge of or whose duties relate to

2 the actual running of races be approved by the Board.

3 (k) The Board is vested with the power to appoint delegates

4 to execute any of the powers granted to it under this Section

5 for the purpose of administering this Act and any rules or

6 regulations promulgated in accordance with this Act.

7 (l) The Board is vested with the power to impose civil

8 penalties of up to $5,000 against an individual and up to

9 $10,000 against a licensee for each violation of any provision

10 of this Act, any rules adopted by the Board, any order of the

11 Board or any other action which, in the Board's discretion, is

12 a detriment or impediment to horse racing or wagering.

13 Beginning on the date when any organization licensee begins

14 conducting electronic gaming pursuant to an electronic gaming

15 license issued under the Illinois Gambling Act, the power

16 granted to the Board pursuant to this subsection (l) shall

17 authorize the Board to impose penalties of up to $10,000

18 against an individual and up to $25,000 against a licensee. All

19 such civil penalties shall be deposited into the Horse Racing

20 Fund.

21 (m) The Board is vested with the power to prescribe a form

22 to be used by licensees as an application for employment for

23 employees of each licensee.

24 (n) The Board shall have the power to issue a license to

25 any county fair, or its agent, authorizing the conduct of the

26 pari-mutuel system of wagering. The Board is vested with the

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1 full power to promulgate reasonable rules, regulations and

2 conditions under which all horse race meetings licensed

3 pursuant to this subsection shall be held and conducted,

4 including rules, regulations and conditions for the conduct of

5 the pari-mutuel system of wagering. The rules, regulations and

6 conditions shall provide for the prevention of practices

7 detrimental to the public interest and for the best interests

8 of horse racing, and shall prescribe penalties for violations

9 thereof. Any authority granted the Board under this Act shall

10 extend to its jurisdiction and supervision over county fairs,

11 or their agents, licensed pursuant to this subsection. However,

12 the Board may waive any provision of this Act or its rules or

13 regulations which would otherwise apply to such county fairs or

14 their agents.

15 (o) Whenever the Board is authorized or required by law to

16 consider some aspect of criminal history record information for

17 the purpose of carrying out its statutory powers and

18 responsibilities, then, upon request and payment of fees in

19 conformance with the requirements of Section 2605-400 of the

20 Department of State Police Law (20 ILCS 2605/2605-400), the

21 Department of State Police is authorized to furnish, pursuant

22 to positive identification, such information contained in

23 State files as is necessary to fulfill the request.

24 (p) To insure the convenience, comfort, and wagering

25 accessibility of race track patrons, to provide for the

26 maximization of State revenue, and to generate increases in

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1 purse allotments to the horsemen, the Board shall require any

2 licensee to staff the pari-mutuel department with adequate

3 personnel.

4 (Source: P.A. 97-1060, eff. 8-24-12.)

5 (230 ILCS 5/15) (from Ch. 8, par. 37-15)

6 Sec. 15. (a) The Board shall, in its discretion, issue

7 occupation licenses to horse owners, trainers, harness

8 drivers, jockeys, agents, apprentices, grooms, stable foremen,

9 exercise persons, veterinarians, valets, blacksmiths,

10 concessionaires and others designated by the Board whose work,

11 in whole or in part, is conducted upon facilities within the

12 State. Such occupation licenses will be obtained prior to the

13 persons engaging in their vocation upon such facilities. The

14 Board shall not license pari-mutuel clerks, parking

15 attendants, security guards and employees of concessionaires.

16 No occupation license shall be required of any person who works

17 at facilities within this State as a pari-mutuel clerk, parking

18 attendant, security guard or as an employee of a

19 concessionaire. Concessionaires of the Illinois State Fair and

20 DuQuoin State Fair and employees of the Illinois Department of

21 Agriculture shall not be required to obtain an occupation

22 license by the Board.

23 (b) Each application for an occupation license shall be on

24 forms prescribed by the Board. Such license, when issued, shall

25 be for the period ending December 31 of each year, except that

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1 the Board in its discretion may grant 3-year licenses. The

2 application shall be accompanied by a fee of not more than $25

3 per year or, in the case of 3-year occupation license

4 applications, a fee of not more than $60. Each applicant shall

5 set forth in the application his full name and address, and if

6 he had been issued prior occupation licenses or has been

7 licensed in any other state under any other name, such name,

8 his age, whether or not a permit or license issued to him in

9 any other state has been suspended or revoked and if so whether

10 such suspension or revocation is in effect at the time of the

11 application, and such other information as the Board may

12 require. Fees for registration of stable names shall not exceed

13 $50.00. Beginning on the date when any organization licensee

14 begins conducting electronic gaming pursuant to an electronic

15 gambling license issued under the Illinois Gambling Act, the

16 fee for registration of stable names shall not exceed $150, and

17 the application fee for an occupation license shall not exceed

18 $75, per year or, in the case of a 3-year occupation license

19 application, the fee shall not exceed $180.

20 (c) The Board may in its discretion refuse an occupation

21 license to any person:

22 (1) who has been convicted of a crime;

23 (2) who is unqualified to perform the duties required

24 of such applicant;

25 (3) who fails to disclose or states falsely any

26 information called for in the application;

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1 (4) who has been found guilty of a violation of this

2 Act or of the rules and regulations of the Board; or

3 (5) whose license or permit has been suspended, revoked

4 or denied for just cause in any other state.

5 (d) The Board may suspend or revoke any occupation license:

6 (1) for violation of any of the provisions of this Act;

7 or

8 (2) for violation of any of the rules or regulations of

9 the Board; or

10 (3) for any cause which, if known to the Board, would

11 have justified the Board in refusing to issue such

12 occupation license; or

13 (4) for any other just cause.

14 (e) Each applicant shall submit his or her fingerprints

15 to the Department of State Police in the form and manner

16 prescribed by the Department of State Police. These

17 fingerprints shall be checked against the fingerprint records

18 now and hereafter filed in the Department of State Police and

19 Federal Bureau of Investigation criminal history records

20 databases. The Department of State Police shall charge a fee

21 for conducting the criminal history records check, which shall

22 be deposited in the State Police Services Fund and shall not

23 exceed the actual cost of the records check. The Department of

24 State Police shall furnish, pursuant to positive

25 identification, records of conviction to the Board. Each

26 applicant for licensure shall submit with his occupation

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1 license application, on forms provided by the Board, 2 sets of

2 his fingerprints. All such applicants shall appear in person at

3 the location designated by the Board for the purpose of

4 submitting such sets of fingerprints; however, with the prior

5 approval of a State steward, an applicant may have such sets of

6 fingerprints taken by an official law enforcement agency and

7 submitted to the Board.

8 (f) The Board may, in its discretion, issue an occupation

9 license without submission of fingerprints if an applicant has

10 been duly licensed in another recognized racing jurisdiction

11 after submitting fingerprints that were subjected to a Federal

12 Bureau of Investigation criminal history background check in

13 that jurisdiction.

14 (g) Beginning on the date when any organization licensee

15 begins conducting electronic gambling pursuant to an

16 electronic gaming license issued under the Illinois Gambling

17 Act, the Board may charge each applicant a reasonable

18 non-refundable fee to defray the costs associated with the

19 background investigation conducted by the Board. This fee shall

20 be exclusive of any other fee or fees charged in connection

21 with an application for and, if applicable, the issuance of, an

22 electronic gaming license. If the costs of the investigation

23 exceed the amount of the fee charged, the Board shall

24 immediately notify the applicant of the additional amount owed,

25 payment of which must be submitted to the Board within 7 days

26 after such notification. All information, records, interviews,

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1 reports, statements, memoranda, or other data supplied to or

2 used by the Board in the course of its review or investigation

3 of an applicant for a license or renewal under this Act shall

4 be privileged, strictly confidential, and shall be used only

5 for the purpose of evaluating an applicant for a license or a

6 renewal. Such information, records, interviews, reports,

7 statements, memoranda, or other data shall not be admissible as

8 evidence, nor discoverable, in any action of any kind in any

9 court or before any tribunal, board, agency, or person, except

10 for any action deemed necessary by the Board.

11 (Source: P.A. 93-418, eff. 1-1-04.)

12 (230 ILCS 5/18) (from Ch. 8, par. 37-18)

13 Sec. 18. (a) Together with its application, each applicant

14 for racing dates shall deliver to the Board a certified check

15 or bank draft payable to the order of the Board for $1,000. In

16 the event the applicant applies for racing dates in 2 or 3

17 successive calendar years as provided in subsection (b) of

18 Section 21, the fee shall be $2,000. Filing fees shall not be

19 refunded in the event the application is denied.Beginning on

20 the date when any organization licensee begins conducting

21 electronic gaming pursuant to an electronic gaming license

22 issued under the Illinois Gambling Act, the application fee for

23 racing dates imposed by this subsection (a) shall be $10,000

24 and the application fee for racing dates in 2 or 3 successive

25 calendar years as provided in subsection (b) of Section 21

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1 shall be $20,000. All filing fees shall be deposited into the

2 Horse Racing Fund.

3 (b) In addition to the filing fee imposed by subsection (a)

4 ~~of $1000~~and the fees provided in subsection (j) of Section 20,

5 each organization licensee shall pay a license fee of $100 for

6 each racing program on which its daily pari-mutuel handle is

7 $400,000 or more but less than $700,000, and a license fee of

8 $200 for each racing program on which its daily pari-mutuel

9 handle is $700,000 or more. The additional fees required to be

10 paid under this Section by this amendatory Act of 1982 shall be

11 remitted by the organization licensee to the Illinois Racing

12 Board with each day's graduated privilege tax or pari-mutuel

13 tax and breakage as provided under Section 27.Beginning on the

14 date when any organization licensee begins conducting

15 electronic gaming pursuant to an electronic gaming license

16 issued under the Illinois Gambling Act, the license fee imposed

17 by this subsection (b) shall be $200 for each racing program on

18 which the organization licensee's daily pari-mutuel handle is

19 $100,000 or more, but less than $400,000, and the license fee

20 imposed by this subsection (b) shall be $400 for each racing

21 program on which the organization licensee's daily pari-mutuel

22 handle is $400,000 or more.

23 (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois

24 Municipal Code," approved May 29, 1961, as now or hereafter

25 amended, shall not apply to any license under this Act.

26 (Source: P.A. 97-1060, eff. 8-24-12.)

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1 (230 ILCS 5/19) (from Ch. 8, par. 37-19)

2 Sec. 19. (a) No organization license may be granted to

3 conduct a horse race meeting:

4 (1) except as provided in subsection (c) of Section 21

5 of this Act, to any person at any place within 35 miles of

6 any other place licensed by the Board to hold a race

7 meeting on the same date during the same hours, the mileage

8 measurement used in this subsection (a) shall be certified

9 to the Board by the Bureau of Systems and Services in the

10 Illinois Department of Transportation as the most commonly

11 used public way of vehicular travel;

12 (2) to any person in default in the payment of any

13 obligation or debt due the State under this Act, provided

14 no applicant shall be deemed in default in the payment of

15 any obligation or debt due to the State under this Act as

16 long as there is pending a hearing of any kind relevant to

17 such matter;

18 (3) to any person who has been convicted of the

19 violation of any law of the United States or any State law

20 which provided as all or part of its penalty imprisonment

21 in any penal institution; to any person against whom there

22 is pending a Federal or State criminal charge; to any

23 person who is or has been connected with or engaged in the

24 operation of any illegal business; to any person who does

25 not enjoy a general reputation in his community of being an

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1 honest, upright, law-abiding person; provided that none of

2 the matters set forth in this subparagraph (3) shall make

3 any person ineligible to be granted an organization license

4 if the Board determines, based on circumstances of any such

5 case, that the granting of a license would not be

6 detrimental to the interests of horse racing and of the

7 public;

8 (4) to any person who does not at the time of

9 application for the organization license own or have a

10 contract or lease for the possession of a finished race

11 track suitable for the type of racing intended to be held

12 by the applicant and for the accommodation of the public.

13 (b) (Blank) ~~Horse racing on Sunday shall be prohibited~~

14 ~~unless authorized by ordinance or referendum of the~~

15 ~~municipality in which a race track or any of its appurtenances~~

16 ~~or facilities are located, or utilized~~.

17 (c) If any person is ineligible to receive an organization

18 license because of any of the matters set forth in subsection

19 (a) (2) or subsection (a) (3) of this Section, any other or

20 separate person that either (i) controls, directly or

21 indirectly, such ineligible person or (ii) is controlled,

22 directly or indirectly, by such ineligible person or by a

23 person which controls, directly or indirectly, such ineligible

24 person shall also be ineligible.

25 (Source: P.A. 88-495; 89-16, eff. 5-30-95.)

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1 (230 ILCS 5/20) (from Ch. 8, par. 37-20)

2 Sec. 20. (a) Any person desiring to conduct a horse race

3 meeting may apply to the Board for an organization license. The

4 application shall be made on a form prescribed and furnished by

5 the Board. The application shall specify:

6 (1) the dates on which it intends to conduct the horse

7 race meeting, which dates shall be provided under Section

8 21;

9 (2) the hours of each racing day between which it

10 intends to hold or conduct horse racing at such meeting;

11 (3) the location where it proposes to conduct the

12 meeting; and

13 (4) any other information the Board may reasonably

14 require.

15 (b) A separate application for an organization license

16 shall be filed for each horse race meeting which such person

17 proposes to hold. Any such application, if made by an

18 individual, or by any individual as trustee, shall be signed

19 and verified under oath by such individual. If the application

20 ismade by individuals, then it shall be signed and verified

21 under oath by at least 2 of the individuals; if the application

22 is made by ~~or~~ a partnership, ~~it shall be signed and verified~~

23 ~~under oath by at least 2 of such individuals or members of such~~

24 ~~partnership as the case may be. If made by~~ an association, a

25 corporation, acorporate trustee, a limited liability company,

26 or any other entity, it shall be signed by an authorized

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1 officer, a partner, a member, or a manager, as the case may be,

2 of the entity ~~the president and attested by the secretary or~~

3 ~~assistant secretary under the seal of such association, trust~~

4 ~~or corporation if it has a seal, and shall also be verified~~

5 ~~under oath by one of the signing officers~~.

6 (c) The application shall specify:

7 (1)the name of the persons, association, trust, or

8 corporation making such application; ~~and~~

9 (2) the principal~~post office~~ address of the applicant;

10 (3)if the applicant is a trustee, the names and

11 addresses of the beneficiaries; if the applicant is a

12 corporation, the names and~~post office~~ addresses of all

13 officers, stockholders and directors; or if such

14 stockholders hold stock as a nominee or fiduciary, the

15 names and ~~post office~~ addresses of the parties ~~these~~

16 ~~persons, partnerships, corporations, or trusts~~who are the

17 beneficial owners thereof or who are beneficially

18 interested therein;~~and~~ if the applicant is a partnership,

19 the names and ~~post office~~addresses of all partners,

20 general or limited; if the applicant is a limited liability

21 company, the names and addresses of the manager and

22 members; and if the applicant is any other entity, the

23 names and addresses of all officers or other authorized

24 persons of the entity ~~corporation, the name of the state of~~

25 ~~its incorporation shall be specified~~.

26 (d) The applicant shall execute and file with the Board a

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1 good faith affirmative action plan to recruit, train, and

2 upgrade minorities in all classifications within the

3 association.

4 (e) With such application there shall be delivered to the

5 Board a certified check or bank draft payable to the order of

6 the Board for an amount equal to $1,000. All applications for

7 the issuance of an organization license shall be filed with the

8 Board before August 1 of the year prior to the year for which

9 application is made and shall be acted upon by the Board at a

10 meeting to be held on such date as shall be fixed by the Board

11 during the last 15 days of September of such prior year. At

12 such meeting, the Board shall announce the award of the racing

13 meets, live racing schedule, and designation of host track to

14 the applicants and its approval or disapproval of each

15 application. No announcement shall be considered binding until

16 a formal order is executed by the Board, which shall be

17 executed no later than October 15 of that prior year. Absent

18 the agreement of the affected organization licensees, the Board

19 shall not grant overlapping race meetings to 2 or more tracks

20 that are within 100 miles of each other to conduct the

21 thoroughbred racing.

22 (e-1) In awarding standardbred racing dates for calendar

23 year 2018 and thereafter, the Board shall award at least 310

24 racing days, and each organization licensee shall average at

25 least 12 races for each racing day awarded. The Board shall

26 have the discretion to allocate those racing days among

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1 organization licensees requesting standardbred racing dates.

2 Once awarded by the Board, organization licensees awarded

3 standardbred racing dates shall run at least 3,500 races in

4 total during that calendar year. Standardbred racing conducted

5 in Sangamon County shall not be considered races under this

6 subsection (e-1).

7 (e-2) In awarding racing dates for calendar year 2018 and

8 thereafter, the Board shall award thoroughbred racing days to

9 Cook County organization licensees commensurate with these

10 organization licensees' requirement that they shall run at

11 least 1,950 thoroughbred races in the aggregate, so long as 2

12 organization licensees are conducting electronic gaming

13 operations. Additionally, if the organization licensees that

14 run thoroughbred races in Cook County are conducting electronic

15 gaming operations, the Board shall increase the number of

16 thoroughbred races to be run in Cook County in the aggregate to

17 at least the following:

18 (i) 2,050 races in any year following the most recent

19 preceding complete calendar year when the combined

20 adjusted gross receipts of the electronic gaming licensees

21 operating at Cook County race tracks total in excess of

22 $200,000,000, but do not exceed $250,000,000;

23 (ii) 2,125 races in any year following the most recent

24 preceding complete calendar year when the combined

25 adjusted gross receipts of the electronic gaming licensees

26 operating at Cook County race tracks total in excess of

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1 $250,000,000, but do not exceed $300,000,000;

2 (iii) 2,200 races in any year following the most recent

3 preceding complete calendar year when the combined

4 adjusted gross receipts of the electronic gaming licensees

5 operating at Cook County race tracks total in excess of

6 $300,000,000, but do not exceed $350,000,000;

7 (iv) 2,300 races in any year following the most recent

8 preceding complete calendar year when the combined

9 adjusted gross receipts of the electronic gaming licensees

10 operating at Cook County race tracks total in excess of

11 $350,000,000, but do not exceed $400,000,000;

12 (v) 2,375 races in any year following the most recent

13 preceding complete calendar year when the combined

14 adjusted gross receipts of the electronic gaming licensees

15 operating at Cook County race tracks total in excess of

16 $400,000,000, but do not exceed $450,000,000;

17 (vi) 2,450 races in any year following the most recent

18 preceding complete calendar year when the combined

19 adjusted gross receipts of the electronic gaming licensees

20 operating at Cook County race tracks total in excess of

21 $450,000,000, but do not exceed $500,000,000;

22 (vii) 2,550 races in any year following the most recent

23 preceding complete calendar year when the combined

24 adjusted gross receipts of the electronic gaming licensees

25 operating at Cook County race tracks exceeds $500,000,000.

26 In awarding racing dates under this subsection (e-2), the

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1 Board shall have the discretion to allocate those thoroughbred

2 racing dates among these Cook County organization licensees.

3 (e-3) In awarding racing dates for calendar year 2018 and

4 thereafter in connection with a race track in Madison County,

5 the Board shall award racing dates and such organization

6 licensee shall run at least 700 thoroughbred races at the race

7 track in Madison County each year.

8 Notwithstanding Section 7.7 of the Illinois Gambling Act or

9 any provision of this Act other than subsection (e-4.5), for

10 each calendar year for which an electronic gaming licensee

11 located in Madison County requests racing dates resulting in

12 less than 700 live thoroughbred races at its race track

13 facility, the electronic gaming licensee may not conduct

14 electronic gaming for the calendar year of such requested live

15 races.

16 (e-4) Notwithstanding the provisions of Section 7.7 of the

17 Illinois Gambling Act or any provision of this Act other than

18 subsections (e-3) and (e-4.5), for each calendar year for which

19 an electronic gaming licensee requests racing dates for a

20 specific horse breed which results in a number of live races

21 for that specific breed under its organization license that is

22 less than the total number of live races for that specific

23 breed which it conducted in 2011 for standardbred racing and in

24 2016 for thoroughbred racing at its race track facility, the

25 electronic gaming licensee may not conduct electronic gaming

26 for the calendar year of such requested live races.

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1 (e-4.5) The Board shall ensure that each organization

2 licensee shall individually run a sufficient number of races

3 per year to qualify for an electronic gaming license under this

4 Act. The General Assembly finds that the minimum live racing

5 guarantees contained in subsections (e-1), (e-2), and (e-3) are

6 in the best interest of the sport of horse racing, and that

7 such guarantees may only be reduced in the limited

8 circumstances described in this subsection. The Board may

9 decrease the number of racing days without affecting an

10 organization licensee's ability to conduct electronic gaming

11 only if the Board determines, after notice and hearing, that:

12 (i) a decrease is necessary to maintain a sufficient

13 number of betting interests per race to ensure the

14 integrity of racing;

15 (ii) there are unsafe track conditions due to weather

16 or acts of God;

17 (iii) there is an agreement between an organization

18 licensee and the breed association that is applicable to

19 the involved live racing guarantee, such association

20 representing either the largest number of thoroughbred

21 owners and trainers or the largest number of standardbred

22 owners, trainers and drivers who race horses at the

23 involved organization licensee's racing meeting, so long

24 as the agreement does not compromise the integrity of the

25 sport of horse racing; or

26 (iv) the horse population or purse levels are

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1 insufficient to provide the number of racing opportunities

2 otherwise required in this Act.

3 In decreasing the number of racing dates in accordance with

4 this subsection, the Board shall hold a hearing and shall

5 provide the public and all interested parties notice and an

6 opportunity to be heard. The Board shall accept testimony from

7 all interested parties, including any association representing

8 owners, trainers, jockeys, or drivers who will be affected by

9 the decrease in racing dates. The Board shall provide a written

10 explanation of the reasons for the decrease and the Board's

11 findings. The written explanation shall include a listing and

12 content of all communication between any party and any Illinois

13 Racing Board member or staff that does not take place at a

14 public meeting of the Board.

15 (e-5) In reviewing an application for the purpose of

16 granting an organization license consistent with the best

17 interests of the public and the sport of horse racing, the

18 Board shall consider:

19 (1) the character, reputation, experience, and

20 financial integrity of the applicant and of any other

21 separate person that either:

22 (i) controls the applicant, directly or

23 indirectly, or

24 (ii) is controlled, directly or indirectly, by

25 that applicant or by a person who controls, directly or

26 indirectly, that applicant;

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1 (2) the applicant's facilities or proposed facilities

2 for conducting horse racing;

3 (3) the total revenue without regard to Section 32.1 to

4 be derived by the State and horsemen from the applicant's

5 conducting a race meeting;

6 (4) the applicant's good faith affirmative action plan

7 to recruit, train, and upgrade minorities in all employment

8 classifications;

9 (5) the applicant's financial ability to purchase and

10 maintain adequate liability and casualty insurance;

11 (6) the applicant's proposed and prior year's

12 promotional and marketing activities and expenditures of

13 the applicant associated with those activities;

14 (7) an agreement, if any, among organization licensees

15 as provided in subsection (b) of Section 21 of this Act;

16 and

17 (8) the extent to which the applicant exceeds or meets

18 other standards for the issuance of an organization license

19 that the Board shall adopt by rule.

20 In granting organization licenses and allocating dates for

21 horse race meetings, the Board shall have discretion to

22 determine an overall schedule, including required simulcasts

23 of Illinois races by host tracks that will, in its judgment, be

24 conducive to the best interests of the public and the sport of

25 horse racing.

26 (e-10) The Illinois Administrative Procedure Act shall

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1 apply to administrative procedures of the Board under this Act

2 for the granting of an organization license, except that (1)

3 notwithstanding the provisions of subsection (b) of Section

4 10-40 of the Illinois Administrative Procedure Act regarding

5 cross-examination, the Board may prescribe rules limiting the

6 right of an applicant or participant in any proceeding to award

7 an organization license to conduct cross-examination of

8 witnesses at that proceeding where that cross-examination

9 would unduly obstruct the timely award of an organization

10 license under subsection (e) of Section 20 of this Act; (2) the

11 provisions of Section 10-45 of the Illinois Administrative

12 Procedure Act regarding proposals for decision are excluded

13 under this Act; (3) notwithstanding the provisions of

14 subsection (a) of Section 10-60 of the Illinois Administrative

15 Procedure Act regarding ex parte communications, the Board may

16 prescribe rules allowing ex parte communications with

17 applicants or participants in a proceeding to award an

18 organization license where conducting those communications

19 would be in the best interest of racing, provided all those

20 communications are made part of the record of that proceeding

21 pursuant to subsection (c) of Section 10-60 of the Illinois

22 Administrative Procedure Act; (4) the provisions of Section 14a

23 of this Act and the rules of the Board promulgated under that

24 Section shall apply instead of the provisions of Article 10 of

25 the Illinois Administrative Procedure Act regarding

26 administrative law judges; and (5) the provisions of subsection

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1 (d) of Section 10-65 of the Illinois Administrative Procedure

2 Act that prevent summary suspension of a license pending

3 revocation or other action shall not apply.

4 (f) The Board may allot racing dates to an organization

5 licensee for more than one calendar year but for no more than 3

6 successive calendar years in advance, provided that the Board

7 shall review such allotment for more than one calendar year

8 prior to each year for which such allotment has been made. The

9 granting of an organization license to a person constitutes a

10 privilege to conduct a horse race meeting under the provisions

11 of this Act, and no person granted an organization license

12 shall be deemed to have a vested interest, property right, or

13 future expectation to receive an organization license in any

14 subsequent year as a result of the granting of an organization

15 license. Organization licenses shall be subject to revocation

16 if the organization licensee has violated any provision of this

17 Act or the rules and regulations promulgated under this Act or

18 has been convicted of a crime or has failed to disclose or has

19 stated falsely any information called for in the application

20 for an organization license. Any organization license

21 revocation proceeding shall be in accordance with Section 16

22 regarding suspension and revocation of occupation licenses.

23 (f-5) If, (i) an applicant does not file an acceptance of

24 the racing dates awarded by the Board as required under part

25 (1) of subsection (h) of this Section 20, or (ii) an

26 organization licensee has its license suspended or revoked

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1 under this Act, the Board, upon conducting an emergency hearing

2 as provided for in this Act, may reaward on an emergency basis

3 pursuant to rules established by the Board, racing dates not

4 accepted or the racing dates associated with any suspension or

5 revocation period to one or more organization licensees, new

6 applicants, or any combination thereof, upon terms and

7 conditions that the Board determines are in the best interest

8 of racing, provided, the organization licensees or new

9 applicants receiving the awarded racing dates file an

10 acceptance of those reawarded racing dates as required under

11 paragraph (1) of subsection (h) of this Section 20 and comply

12 with the other provisions of this Act. The Illinois

13 Administrative Procedure Act shall not apply to the

14 administrative procedures of the Board in conducting the

15 emergency hearing and the reallocation of racing dates on an

16 emergency basis.

17 (g) (Blank).

18 (h) The Board shall send the applicant a copy of its

19 formally executed order by certified mail addressed to the

20 applicant at the address stated in his application, which

21 notice shall be mailed within 5 days of the date the formal

22 order is executed.

23 Each applicant notified shall, within 10 days after receipt

24 of the final executed order of the Board awarding racing dates:

25 (1) file with the Board an acceptance of such award in

26 the form prescribed by the Board;

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1 (2) pay to the Board an additional amount equal to $110

2 for each racing date awarded; and

3 (3) file with the Board the bonds required in Sections

4 21 and 25 at least 20 days prior to the first day of each

5 race meeting.

6 Upon compliance with the provisions of paragraphs (1), (2), and

7 (3) of this subsection (h), the applicant shall be issued an

8 organization license.

9 If any applicant fails to comply with this Section or fails

10 to pay the organization license fees herein provided, no

11 organization license shall be issued to such applicant.

12 (Source: P.A. 97-333, eff. 8-12-11.)

13 (230 ILCS 5/21) (from Ch. 8, par. 37-21)

14 Sec. 21. (a) Applications for organization licenses must be

15 filed with the Board at a time and place prescribed by the

16 rules and regulations of the Board. The Board shall examine the

17 applications within 21 days after the date allowed for filing

18 with respect to their conformity with this Act and such rules

19 and regulations as may be prescribed by the Board. If any

20 application does not comply with this Act or the rules and

21 regulations prescribed by the Board, such application may be

22 rejected and an organization license refused to the applicant,

23 or the Board may, within 21 days of the receipt of such

24 application, advise the applicant of the deficiencies of the

25 application under the Act or the rules and regulations of the

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1 Board, and require the submittal of an amended application

2 within a reasonable time determined by the Board; and upon

3 submittal of the amended application by the applicant, the

4 Board may consider the application consistent with the process

5 described in subsection (e-5) of Section 20 of this Act. If it

6 is found to be in compliance with this Act and the rules and

7 regulations of the Board, the Board may then issue an

8 organization license to such applicant.

9 (b) The Board may exercise discretion in granting racing

10 dates to qualified applicants different from those requested by

11 the applicants in their applications. However, if all eligible

12 applicants for organization licenses whose tracks are located

13 within 100 miles of each other execute and submit to the Board

14 a written agreement among such applicants as to the award of

15 racing dates, including where applicable racing programs, for

16 up to 3 consecutive years, then subject to annual review of

17 each applicant's compliance with Board rules and regulations,

18 provisions of this Act and conditions contained in annual dates

19 orders issued by the Board, the Board may grant such dates and

20 programs to such applicants as so agreed by them if the Board

21 determines that the grant of these racing dates is in the best

22 interests of racing. The Board shall treat any such agreement

23 as the agreement signatories' joint and several application for

24 racing dates during the term of the agreement.

25 (c) Where 2 or more applicants propose to conduct horse

26 race meetings within 35 miles of each other, as certified to

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1 the Board under Section 19 (a) (1) of this Act, on conflicting

2 dates, the Board may determine and grant the number of racing

3 days to be awarded to the several applicants in accordance with

4 the provisions of subsection (e-5) of Section 20 of this Act.

5 (d) (Blank).

6 (e) Prior to the issuance of an organization license, the

7 applicant shall file with the Board a bond payable to the State

8 of Illinois in the sum of $200,000, executed by the applicant

9 and a surety company or companies authorized to do business in

10 this State, and conditioned upon the payment by the

11 organization licensee of all taxes due under Section 27, other

12 monies due and payable under this Act, all purses due and

13 payable, and that the organization licensee will upon

14 presentation of the winning ticket or tickets distribute all

15 sums due to the patrons of pari-mutuel pools. Beginning on the

16 date when any organization licensee begins conducting

17 electronic gaming pursuant to an electronic gaming license

18 issued under the Illinois Gambling Act, the amount of the bond

19 required under this subsection (e) shall be $500,000.

20 (f) Each organization license shall specify the person to

21 whom it is issued, the dates upon which horse racing is

22 permitted, and the location, place, track, or enclosure where

23 the horse race meeting is to be held.

24 (g) Any person who owns one or more race tracks within the

25 State may seek, in its own name, a separate organization

26 license for each race track.

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1 (h) All racing conducted under such organization license is

2 subject to this Act and to the rules and regulations from time

3 to time prescribed by the Board, and every such organization

4 license issued by the Board shall contain a recital to that

5 effect.

6 (i) Each such organization licensee may provide that at

7 least one race per day may be devoted to the racing of quarter

8 horses, appaloosas, arabians, or paints.

9 (j) In acting on applications for organization licenses,

10 the Board shall give weight to an organization license which

11 has implemented a good faith affirmative action effort to

12 recruit, train and upgrade minorities in all classifications

13 within the organization license.

14 (Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)

15 (230 ILCS 5/24) (from Ch. 8, par. 37-24)

16 Sec. 24. (a) No license shall be issued to or held by an

17 organization licensee unless all of its officers, directors,

18 and holders of ownership interests of at least 5% are first

19 approved by the Board. The Board shall not give approval of an

20 organization license application to any person who has been

21 convicted of or is under an indictment for a crime of moral

22 turpitude or has violated any provision of the racing law of

23 this State or any rules of the Board.

24 (b) An organization licensee must notify the Board within

25 10 days of any change in the holders of a direct or indirect

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1 interest in the ownership of the organization licensee. The

2 Board may, after hearing, revoke the organization license of

3 any person who registers on its books or knowingly permits a

4 direct or indirect interest in the ownership of that person

5 without notifying the Board of the name of the holder in

6 interest within this period.

7 (c) In addition to the provisions of subsection (a) of this

8 Section, no person shall be granted an organization license if

9 any public official of the State or member of his or her family

10 holds any ownership or financial interest, directly or

11 indirectly, in the person.

12 (d) No person which has been granted an organization

13 license to hold a race meeting shall give to any public

14 official or member of his family, directly or indirectly, for

15 or without consideration, any interest in the person. The Board

16 shall, after hearing, revoke the organization license granted

17 to a person which has violated this subsection.

18 (e) (Blank).

19 (f) No organization licensee or concessionaire or officer,

20 director or holder or controller of 5% or more legal or

21 beneficial interest in any organization licensee or concession

22 shall make any sort of gift or contributionthat is prohibited

23 under Article 10 of the State Officials and Employees Ethics

24 Act ~~of any kind~~or pay or give any money or other thing of value

25 to any person who is a public official, or a candidate or

26 nominee for public office if that payment or gift is prohibited

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1 under Article 10 of the State Officials and Employees Ethics

2 Act.

3 (Source: P.A. 89-16, eff. 5-30-95.)

4 (230 ILCS 5/25) (from Ch. 8, par. 37-25)

5 Sec. 25. Admission charge; bond; fine.

6 (a) There shall be paid to the Board at such time or times

7 as it shall prescribe, the sum of fifteen cents (15�) for each

8 person entering the grounds or enclosure of each organization

9 licensee and inter-track wagering licensee upon a ticket of

10 admission except as provided in subsection (g) of Section 27 of

11 this Act. If tickets are issued for more than one day then the

12 sum of fifteen cents (15�) shall be paid for each person using

13 such ticket on each day that the same shall be used. Provided,

14 however, that no charge shall be made on tickets of admission

15 issued to and in the name of directors, officers, agents or

16 employees of the organization licensee, or inter-track

17 wagering licensee, or to owners, trainers, jockeys, drivers and

18 their employees or to any person or persons entering the

19 grounds or enclosure for the transaction of business in

20 connection with such race meeting. The organization licensee or

21 inter-track wagering licensee may, if it desires, collect such

22 amount from each ticket holder in addition to the amount or

23 amounts charged for such ticket of admission.Beginning on the

24 date when any organization licensee begins conducting

25 electronic gaming pursuant to an electronic gaming license

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1 issued under the Illinois Gambling Act, the admission charge

2 imposed by this subsection (a) shall be 40 cents for each

3 person entering the grounds or enclosure of each organization

4 licensee and inter-track wagering licensee upon a ticket of

5 admission, and if such tickets are issued for more than one

6 day, 40 cents shall be paid for each person using such ticket

7 on each day that the same shall be used.

8 (b) Accurate records and books shall at all times be kept

9 and maintained by the organization licensees and inter-track

10 wagering licensees showing the admission tickets issued and

11 used on each racing day and the attendance thereat of each

12 horse racing meeting. The Board or its duly authorized

13 representative or representatives shall at all reasonable

14 times have access to the admission records of any organization

15 licensee and inter-track wagering licensee for the purpose of

16 examining and checking the same and ascertaining whether or not

17 the proper amount has been or is being paid the State of

18 Illinois as herein provided. The Board shall also require,

19 before issuing any license, that the licensee shall execute and

20 deliver to it a bond, payable to the State of Illinois, in such

21 sum as it shall determine, not, however, in excess of fifty

22 thousand dollars ($50,000), with a surety or sureties to be

23 approved by it, conditioned for the payment of all sums due and

24 payable or collected by it under this Section upon admission

25 fees received for any particular racing meetings. The Board may

26 also from time to time require sworn statements of the number

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1 or numbers of such admissions and may prescribe blanks upon

2 which such reports shall be made. Any organization licensee or

3 inter-track wagering licensee failing or refusing to pay the

4 amount found to be due as herein provided, shall be deemed

5 guilty of a business offense and upon conviction shall be

6 punished by a fine of not more than five thousand dollars

7 ($5,000) in addition to the amount due from such organization

8 licensee or inter-track wagering licensee as herein provided.

9 All fines paid into court by an organization licensee or

10 inter-track wagering licensee found guilty of violating this

11 Section shall be transmitted and paid over by the clerk of the

12 court to the Board. Beginning on the date when any organization

13 licensee begins conducting electronic gaming pursuant to an

14 electronic gaming license issued under the Illinois Gambling

15 Act, any fine imposed pursuant to this subsection (b) shall not

16 exceed $10,000.

17 (Source: P.A. 88-495; 89-16, eff. 5-30-95.)

18 (230 ILCS 5/26) (from Ch. 8, par. 37-26)

19 Sec. 26. Wagering.

20 (a) Any licensee may conduct and supervise the pari-mutuel

21 system of wagering, as defined in Section 3.12 of this Act, on

22 horse races conducted by an Illinois organization licensee or

23 conducted at a racetrack located in another state or country

24 ~~and televised in Illinois~~ in accordance with subsection (g) of

25 Section 26 of this Act. Subject to the prior consent of the

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1 Board, licensees may supplement any pari-mutuel pool in order

2 to guarantee a minimum distribution. Such pari-mutuel method of

3 wagering shall not, under any circumstances if conducted under

4 the provisions of this Act, be held or construed to be

5 unlawful, other statutes of this State to the contrary

6 notwithstanding. Subject to rules for advance wagering

7 promulgated by the Board, any licensee may accept wagers in

8 advance of the day of the race wagered upon occurs.

9 (b) Except for those gaming activities for which a license

10 is obtained and authorized under the Illinois Lottery Law, the

11 Charitable Games Act, the Raffles and Poker Runs Act, or the

12 Illinois Gambling Act, no ~~No~~ other method of betting, pool

13 making, wagering or gambling shall be used or permitted by the

14 licensee. Each licensee may retain, subject to the payment of

15 all applicable taxes and purses, an amount not to exceed 17% of

16 all money wagered under subsection (a) of this Section, except

17 as may otherwise be permitted under this Act.

18 (b-5) An individual may place a wager under the pari-mutuel

19 system from any licensed location authorized under this Act

20 provided that wager is electronically recorded in the manner

21 described in Section 3.12 of this Act. Any wager made

22 electronically by an individual while physically on the

23 premises of a licensee shall be deemed to have been made at the

24 premises of that licensee.

25 (c) Until January 1, 2000, the sum held by any licensee for

26 payment of outstanding pari-mutuel tickets, if unclaimed prior

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1 to December 31 of the next year, shall be retained by the

2 licensee for payment of such tickets until that date. Within 10

3 days thereafter, the balance of such sum remaining unclaimed,

4 less any uncashed supplements contributed by such licensee for

5 the purpose of guaranteeing minimum distributions of any

6 pari-mutuel pool, shall be paid to the Illinois Veterans'

7 Rehabilitation Fund of the State treasury, except as provided

8 in subsection (g) of Section 27 of this Act.

9 (c-5) Beginning January 1, 2000, the sum held by any

10 licensee for payment of outstanding pari-mutuel tickets, if

11 unclaimed prior to December 31 of the next year, shall be

12 retained by the licensee for payment of such tickets until that

13 date. Within 10 days thereafter, the balance of such sum

14 remaining unclaimed, less any uncashed supplements contributed

15 by such licensee for the purpose of guaranteeing minimum

16 distributions of any pari-mutuel pool, shall be evenly

17 distributed to the purse account of the organization licensee

18 and the organization licensee.

19 (d) A pari-mutuel ticket shall be honored until December 31

20 of the next calendar year, and the licensee shall pay the same

21 and may charge the amount thereof against unpaid money

22 similarly accumulated on account of pari-mutuel tickets not

23 presented for payment.

24 (e) No licensee shall knowingly permit any minor, other

25 than an employee of such licensee or an owner, trainer, jockey,

26 driver, or employee thereof, to be admitted during a racing

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1 program unless accompanied by a parent or guardian, or any

2 minor to be a patron of the pari-mutuel system of wagering

3 conducted or supervised by it. The admission of any

4 unaccompanied minor, other than an employee of the licensee or

5 an owner, trainer, jockey, driver, or employee thereof at a

6 race track is a Class C misdemeanor.

7 (f) Notwithstanding the other provisions of this Act, an

8 organization licensee may contract with an entity in another

9 state or country to permit any legal wagering entity in another

10 state or country to accept wagers solely within such other

11 state or country on races conducted by the organization

12 licensee in this State. Beginning January 1, 2000, these wagers

13 shall not be subject to State taxation. Until January 1, 2000,

14 when the out-of-State entity conducts a pari-mutuel pool

15 separate from the organization licensee, a privilege tax equal

16 to 7 1/2% of all monies received by the organization licensee

17 from entities in other states or countries pursuant to such

18 contracts is imposed on the organization licensee, and such

19 privilege tax shall be remitted to the Department of Revenue

20 within 48 hours of receipt of the moneys from the simulcast.

21 When the out-of-State entity conducts a combined pari-mutuel

22 pool with the organization licensee, the tax shall be 10% of

23 all monies received by the organization licensee with 25% of

24 the receipts from this 10% tax to be distributed to the county

25 in which the race was conducted.

26 An organization licensee may permit one or more of its

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1 races to be utilized for pari-mutuel wagering at one or more

2 locations in other states and may transmit audio and visual

3 signals of races the organization licensee conducts to one or

4 more locations outside the State or country and may also permit

5 pari-mutuel pools in other states or countries to be combined

6 with its gross or net wagering pools or with wagering pools

7 established by other states.

8 (g) A host track may accept interstate simulcast wagers on

9 horse races conducted in other states or countries and shall

10 control the number of signals and types of breeds of racing in

11 its simulcast program, subject to the disapproval of the Board.

12 The Board may prohibit a simulcast program only if it finds

13 that the simulcast program is clearly adverse to the integrity

14 of racing. The host track simulcast program shall include the

15 signal of live racing of all organization licensees. All

16 non-host licensees and advance deposit wagering licensees

17 shall carry the signal of and accept wagers on live racing of

18 all organization licensees. Advance deposit wagering licensees

19 shall not be permitted to accept out-of-state wagers on any

20 Illinois signal provided pursuant to this Section without the

21 approval and consent of the organization licensee providing the

22 signal. For one year after August 15, 2014 (the effective date

23 of Public Act 98-968) ~~this amendatory Act of the 98th General~~

24 ~~Assembly~~, non-host licensees may carry the host track simulcast

25 program and shall accept wagers on all races included as part

26 of the simulcast program of horse races conducted at race

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1 tracks located within North America upon which wagering is

2 permitted. For a period of one year after August 15, 2014 (the

3 effective date of Public Act 98-968) ~~this amendatory Act of the~~

4 ~~98th General Assembly~~, on horse races conducted at race tracks

5 located outside of North America, non-host licensees may accept

6 wagers on all races included as part of the simulcast program

7 upon which wagering is permitted. Beginning August 15, 2015

8 (one year after the effective date of Public Act 98-968) ~~this~~

9 ~~amendatory Act of the 98th General Assembly~~, non-host licensees

10 may carry the host track simulcast program and shall accept

11 wagers on all races included as part of the simulcast program

12 upon which wagering is permitted. All organization licensees

13 shall provide their live signal to all advance deposit wagering

14 licensees for a simulcast commission fee not to exceed 6% of

15 the advance deposit wagering licensee's Illinois handle on the

16 organization licensee's signal without prior approval by the

17 Board. The Board may adopt rules under which it may permit

18 simulcast commission fees in excess of 6%. The Board shall

19 adopt rules limiting the interstate commission fees charged to

20 an advance deposit wagering licensee. The Board shall adopt

21 rules regarding advance deposit wagering on interstate

22 simulcast races that shall reflect, among other things, the

23 General Assembly's desire to maximize revenues to the State,

24 horsemen purses, and organizational licensees. However,

25 organization licensees providing live signals pursuant to the

26 requirements of this subsection (g) may petition the Board to

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1 withhold their live signals from an advance deposit wagering

2 licensee if the organization licensee discovers and the Board

3 finds reputable or credible information that the advance

4 deposit wagering licensee is under investigation by another

5 state or federal governmental agency, the advance deposit

6 wagering licensee's license has been suspended in another

7 state, or the advance deposit wagering licensee's license is in

8 revocation proceedings in another state. The organization

9 licensee's provision of their live signal to an advance deposit

10 wagering licensee under this subsection (g) pertains to wagers

11 placed from within Illinois. Advance deposit wagering

12 licensees may place advance deposit wagering terminals at

13 wagering facilities as a convenience to customers. The advance

14 deposit wagering licensee shall not charge or collect any fee

15 from purses for the placement of the advance deposit wagering

16 terminals. The costs and expenses of the host track and

17 non-host licensees associated with interstate simulcast

18 wagering, other than the interstate commission fee, shall be

19 borne by the host track and all non-host licensees incurring

20 these costs. The interstate commission fee shall not exceed 5%

21 of Illinois handle on the interstate simulcast race or races

22 without prior approval of the Board. The Board shall promulgate

23 rules under which it may permit interstate commission fees in

24 excess of 5%. The interstate commission fee and other fees

25 charged by the sending racetrack, including, but not limited

26 to, satellite decoder fees, shall be uniformly applied to the

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1 host track and all non-host licensees.

2 Notwithstanding any other provision of this Act, ~~through~~

3 ~~December 31, 2018,~~ an organization licensee, with the consent

4 of the horsemen association representing the largest number of

5 owners, trainers, jockeys, or standardbred drivers who race

6 horses at that organization licensee's racing meeting, may

7 maintain a system whereby advance deposit wagering may take

8 place or an organization licensee, with the consent of the

9 horsemen association representing the largest number of

10 owners, trainers, jockeys, or standardbred drivers who race

11 horses at that organization licensee's racing meeting, may

12 contract with another person to carry out a system of advance

13 deposit wagering. Such consent may not be unreasonably

14 withheld. Only with respect to an appeal to the Board that

15 consent for an organization licensee that maintains its own

16 advance deposit wagering system is being unreasonably

17 withheld, the Board shall issue a final order within 30 days

18 after initiation of the appeal, and the organization licensee's

19 advance deposit wagering system may remain operational during

20 that 30-day period. The actions of any organization licensee

21 who conducts advance deposit wagering or any person who has a

22 contract with an organization licensee to conduct advance

23 deposit wagering who conducts advance deposit wagering on or

24 after January 1, 2013 and prior to June 7, 2013 (the effective

25 date of Public Act 98-18) ~~this amendatory Act of the 98th~~

26 ~~General Assembly~~ taken in reliance on the changes made to this

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1 subsection (g) by Public Act 98-18 ~~this amendatory Act of the~~

2 ~~98th General Assembly~~ are hereby validated, provided payment of

3 all applicable pari-mutuel taxes are remitted to the Board. All

4 advance deposit wagers placed from within Illinois must be

5 placed through a Board-approved advance deposit wagering

6 licensee; no other entity may accept an advance deposit wager

7 from a person within Illinois. All advance deposit wagering is

8 subject to any rules adopted by the Board. The Board may adopt

9 rules necessary to regulate advance deposit wagering through

10 the use of emergency rulemaking in accordance with Section 5-45

11 of the Illinois Administrative Procedure Act. The General

12 Assembly finds that the adoption of rules to regulate advance

13 deposit wagering is deemed an emergency and necessary for the

14 public interest, safety, and welfare. An advance deposit

15 wagering licensee may retain all moneys as agreed to by

16 contract with an organization licensee. Any moneys retained by

17 the organization licensee from advance deposit wagering, not

18 including moneys retained by the advance deposit wagering

19 licensee, shall be paid 50% to the organization licensee's

20 purse account and 50% to the organization licensee. With the

21 exception of any organization licensee that is owned by a

22 publicly traded company that is incorporated in a state other

23 than Illinois and advance deposit wagering licensees under

24 contract with such organization licensees, organization

25 licensees that maintain advance deposit wagering systems and

26 advance deposit wagering licensees that contract with

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1 organization licensees shall provide sufficiently detailed

2 monthly accountings to the horsemen association representing

3 the largest number of owners, trainers, jockeys, or

4 standardbred drivers who race horses at that organization

5 licensee's racing meeting so that the horsemen association, as

6 an interested party, can confirm the accuracy of the amounts

7 paid to the purse account at the horsemen association's

8 affiliated organization licensee from advance deposit

9 wagering. If more than one breed races at the same race track

10 facility, then the 50% of the moneys to be paid to an

11 organization licensee's purse account shall be allocated among

12 all organization licensees' purse accounts operating at that

13 race track facility proportionately based on the actual number

14 of host days that the Board grants to that breed at that race

15 track facility in the current calendar year. To the extent any

16 fees from advance deposit wagering conducted in Illinois for

17 wagers in Illinois or other states have been placed in escrow

18 or otherwise withheld from wagers pending a determination of

19 the legality of advance deposit wagering, no action shall be

20 brought to declare such wagers or the disbursement of any fees

21 previously escrowed illegal.

22 (1) Between the hours of 6:30 a.m. and 6:30 p.m. an

23 inter-track ~~intertrack~~wagering licensee other than the

24 host track may supplement the host track simulcast program

25 with additional simulcast races or race programs, provided

26 that between January 1 and the third Friday in February of

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1 any year, inclusive, if no live thoroughbred racing is

2 occurring in Illinois during this period, only

3 thoroughbred races may be used for supplemental interstate

4 simulcast purposes. The Board shall withhold approval for a

5 supplemental interstate simulcast only if it finds that the

6 simulcast is clearly adverse to the integrity of racing. A

7 supplemental interstate simulcast may be transmitted from

8 an inter-track ~~intertrack~~wagering licensee to its

9 affiliated non-host licensees. The interstate commission

10 fee for a supplemental interstate simulcast shall be paid

11 by the non-host licensee and its affiliated non-host

12 licensees receiving the simulcast.

13 (2) Between the hours of 6:30 p.m. and 6:30 a.m. an

14 inter-track ~~intertrack~~wagering licensee other than the

15 host track may receive supplemental interstate simulcasts

16 only with the consent of the host track, except when the

17 Board finds that the simulcast is clearly adverse to the

18 integrity of racing. Consent granted under this paragraph

19 (2) to any inter-track ~~intertrack~~ wagering licensee shall

20 be deemed consent to all non-host licensees. The interstate

21 commission fee for the supplemental interstate simulcast

22 shall be paid by all participating non-host licensees.

23 (3) Each licensee conducting interstate simulcast

24 wagering may retain, subject to the payment of all

25 applicable taxes and the purses, an amount not to exceed

26 17% of all money wagered. If any licensee conducts the

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1 pari-mutuel system wagering on races conducted at

2 racetracks in another state or country, each such race or

3 race program shall be considered a separate racing day for

4 the purpose of determining the daily handle and computing

5 the privilege tax of that daily handle as provided in

6 subsection (a) of Section 27. Until January 1, 2000, from

7 the sums permitted to be retained pursuant to this

8 subsection, eachinter-track ~~intertrack~~ wagering location

9 licensee shall pay 1% of the pari-mutuel handle wagered on

10 simulcast wagering to the Horse Racing Tax Allocation Fund,

11 subject to the provisions of subparagraph (B) of paragraph

12 (11) of subsection (h) of Section 26 of this Act.

13 (4) A licensee who receives an interstate simulcast may

14 combine its gross or net pools with pools at the sending

15 racetracks pursuant to rules established by the Board. All

16 licensees combining their gross pools at a sending

17 racetrack shall adopt the take-out percentages of the

18 sending racetrack. A licensee may also establish a separate

19 pool and takeout structure for wagering purposes on races

20 conducted at race tracks outside of the State of Illinois.

21 The licensee may permit pari-mutuel wagers placed in other

22 states or countries to be combined with its gross or net

23 wagering pools or other wagering pools.

24 (5) After the payment of the interstate commission fee

25 (except for the interstate commission fee on a supplemental

26 interstate simulcast, which shall be paid by the host track

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1 and by each non-host licensee through the host-track) and

2 all applicable State and local taxes, except as provided in

3 subsection (g) of Section 27 of this Act, the remainder of

4 moneys retained from simulcast wagering pursuant to this

5 subsection (g), and Section 26.2 shall be divided as

6 follows:

7 (A) For interstate simulcast wagers made at a host

8 track, 50% to the host track and 50% to purses at the

9 host track.

10 (B) For wagers placed on interstate simulcast

11 races, supplemental simulcasts as defined in

12 subparagraphs (1) and (2), and separately pooled races

13 conducted outside of the State of Illinois made at a

14 non-host licensee, 25% to the host track, 25% to the

15 non-host licensee, and 50% to the purses at the host

16 track.

17 (6) Notwithstanding any provision in this Act to the

18 contrary, non-host licensees who derive their licenses

19 from a track located in a county with a population in

20 excess of 230,000 and that borders the Mississippi River

21 may receive supplemental interstate simulcast races at all

22 times subject to Board approval, which shall be withheld

23 only upon a finding that a supplemental interstate

24 simulcast is clearly adverse to the integrity of racing.

25 (7) Notwithstanding any provision of this Act to the

26 contrary, after payment of all applicable State and local

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1 taxes and interstate commission fees, non-host licensees

2 who derive their licenses from a track located in a county

3 with a population in excess of 230,000 and that borders the

4 Mississippi River shall retain 50% of the retention from

5 interstate simulcast wagers and shall pay 50% to purses at

6 the track from which the non-host licensee derives its

7 license as follows:

8 (A) Between January 1 and the third Friday in

9 February, inclusive, if no live thoroughbred racing is

10 occurring in Illinois during this period, when the

11 interstate simulcast is a standardbred race, the purse

12 share to its standardbred purse account;

13 (B) Between January 1 and the third Friday in

14 February, inclusive, if no live thoroughbred racing is

15 occurring in Illinois during this period, and the

16 interstate simulcast is a thoroughbred race, the purse

17 share to its interstate simulcast purse pool to be

18 distributed under paragraph (10) of this subsection

19 (g);

20 (C) Between January 1 and the third Friday in

21 February, inclusive, if live thoroughbred racing is

22 occurring in Illinois, between 6:30 a.m. and 6:30 p.m.

23 the purse share from wagers made during this time

24 period to its thoroughbred purse account and between

25 6:30 p.m. and 6:30 a.m. the purse share from wagers

26 made during this time period to its standardbred purse

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1 accounts;

2 (D) Between the third Saturday in February and

3 December 31, when the interstate simulcast occurs

4 between the hours of 6:30 a.m. and 6:30 p.m., the purse

5 share to its thoroughbred purse account;

6 (E) Between the third Saturday in February and

7 December 31, when the interstate simulcast occurs

8 between the hours of 6:30 p.m. and 6:30 a.m., the purse

9 share to its standardbred purse account.

10 (7.1) Notwithstanding any other provision of this Act

11 to the contrary, if no standardbred racing is conducted at

12 a racetrack located in Madison County during any calendar

13 year beginning on or after January 1, 2002, all moneys

14 derived by that racetrack from simulcast wagering and

15 inter-track wagering that (1) are to be used for purses and

16 (2) are generated between the hours of 6:30 p.m. and 6:30

17 a.m. during that calendar year shall be paid as follows:

18 (A) If the licensee that conducts horse racing at

19 that racetrack requests from the Board at least as many

20 racing dates as were conducted in calendar year 2000,

21 80% shall be paid to its thoroughbred purse account;

22 and

23 (B) Twenty percent shall be deposited into the

24 Illinois Colt Stakes Purse Distribution Fund and shall

25 be paid to purses for standardbred races for Illinois

26 conceived and foaled horses conducted at any county

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1 fairgrounds. The moneys deposited into the Fund

2 pursuant to this subparagraph (B) shall be deposited

3 within 2 weeks after the day they were generated, shall

4 be in addition to and not in lieu of any other moneys

5 paid to standardbred purses under this Act, and shall

6 not be commingled with other moneys paid into that

7 Fund. The moneys deposited pursuant to this

8 subparagraph (B) shall be allocated as provided by the

9 Department of Agriculture, with the advice and

10 assistance of the Illinois Standardbred Breeders Fund

11 Advisory Board.

12 (7.2) Notwithstanding any other provision of this Act

13 to the contrary, if no thoroughbred racing is conducted at

14 a racetrack located in Madison County during any calendar

15 year beginning on or after January 1, 2002, all moneys

16 derived by that racetrack from simulcast wagering and

17 inter-track wagering that (1) are to be used for purses and

18 (2) are generated between the hours of 6:30 a.m. and 6:30

19 p.m. during that calendar year shall be deposited as

20 follows:

21 (A) If the licensee that conducts horse racing at

22 that racetrack requests from the Board at least as many

23 racing dates as were conducted in calendar year 2000,

24 80% shall be deposited into its standardbred purse

25 account; and

26 (B) Twenty percent shall be deposited into the

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1 Illinois Colt Stakes Purse Distribution Fund. Moneys

2 deposited into the Illinois Colt Stakes Purse

3 Distribution Fund pursuant to this subparagraph (B)

4 shall be paid to Illinois conceived and foaled

5 thoroughbred breeders' programs and to thoroughbred

6 purses for races conducted at any county fairgrounds

7 for Illinois conceived and foaled horses at the

8 discretion of the Department of Agriculture, with the

9 advice and assistance of the Illinois Thoroughbred

10 Breeders Fund Advisory Board. The moneys deposited

11 into the Illinois Colt Stakes Purse Distribution Fund

12 pursuant to this subparagraph (B) shall be deposited

13 within 2 weeks after the day they were generated, shall

14 be in addition to and not in lieu of any other moneys

15 paid to thoroughbred purses under this Act, and shall

16 not be commingled with other moneys deposited into that

17 Fund.

18 (7.3) If no live standardbred racing is conducted at a

19 racetrack located in Madison County in calendar year 2000

20 or 2001, an organization licensee who is licensed to

21 conduct horse racing at that racetrack shall, before

22 January 1, 2002, pay all moneys derived from simulcast

23 wagering and inter-track wagering in calendar years 2000

24 and 2001 and paid into the licensee's standardbred purse

25 account as follows:

26 (A) Eighty percent to that licensee's thoroughbred

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1 purse account to be used for thoroughbred purses; and

2 (B) Twenty percent to the Illinois Colt Stakes

3 Purse Distribution Fund.

4 Failure to make the payment to the Illinois Colt Stakes

5 Purse Distribution Fund before January 1, 2002 shall result

6 in the immediate revocation of the licensee's organization

7 license, inter-track wagering license, and inter-track

8 wagering location license.

9 Moneys paid into the Illinois Colt Stakes Purse

10 Distribution Fund pursuant to this paragraph (7.3) shall be

11 paid to purses for standardbred races for Illinois

12 conceived and foaled horses conducted at any county

13 fairgrounds. Moneys paid into the Illinois Colt Stakes

14 Purse Distribution Fund pursuant to this paragraph (7.3)

15 shall be used as determined by the Department of

16 Agriculture, with the advice and assistance of the Illinois

17 Standardbred Breeders Fund Advisory Board, shall be in

18 addition to and not in lieu of any other moneys paid to

19 standardbred purses under this Act, and shall not be

20 commingled with any other moneys paid into that Fund.

21 (7.4) If live standardbred racing is conducted at a

22 racetrack located in Madison County at any time in calendar

23 year 2001 before the payment required under paragraph (7.3)

24 has been made, the organization licensee who is licensed to

25 conduct racing at that racetrack shall pay all moneys

26 derived by that racetrack from simulcast wagering and

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1 inter-track wagering during calendar years 2000 and 2001

2 that (1) are to be used for purses and (2) are generated

3 between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or

4 2001 to the standardbred purse account at that racetrack to

5 be used for standardbred purses.

6 (8) Notwithstanding any provision in this Act to the

7 contrary, an organization licensee from a track located in

8 a county with a population in excess of 230,000 and that

9 borders the Mississippi River and its affiliated non-host

10 licensees shall not be entitled to share in any retention

11 generated on racing, inter-track wagering, or simulcast

12 wagering at any other Illinois wagering facility.

13 (8.1) Notwithstanding any provisions in this Act to the

14 contrary, if 2 organization licensees are conducting

15 standardbred race meetings concurrently between the hours

16 of 6:30 p.m. and 6:30 a.m., after payment of all applicable

17 State and local taxes and interstate commission fees, the

18 remainder of the amount retained from simulcast wagering

19 otherwise attributable to the host track and to host track

20 purses shall be split daily between the 2 organization

21 licensees and the purses at the tracks of the 2

22 organization licensees, respectively, based on each

23 organization licensee's share of the total live handle for

24 that day, provided that this provision shall not apply to

25 any non-host licensee that derives its license from a track

26 located in a county with a population in excess of 230,000

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1 and that borders the Mississippi River.

2 (9) (Blank).

3 (10) (Blank).

4 (11) (Blank).

5 (12) The Board shall have authority to compel all host

6 tracks to receive the simulcast of any or all races

7 conducted at the Springfield or DuQuoin State fairgrounds

8 and include all such races as part of their simulcast

9 programs.

10 (13) Notwithstanding any other provision of this Act,

11 in the event that the total Illinois pari-mutuel handle on

12 Illinois horse races at all wagering facilities in any

13 calendar year is less than 75% of the total Illinois

14 pari-mutuel handle on Illinois horse races at all such

15 wagering facilities for calendar year 1994, then each

16 wagering facility that has an annual total Illinois

17 pari-mutuel handle on Illinois horse races that is less

18 than 75% of the total Illinois pari-mutuel handle on

19 Illinois horse races at such wagering facility for calendar

20 year 1994, shall be permitted to receive, from any amount

21 otherwise payable to the purse account at the race track

22 with which the wagering facility is affiliated in the

23 succeeding calendar year, an amount equal to 2% of the

24 differential in total Illinois pari-mutuel handle on

25 Illinois horse races at the wagering facility between that

26 calendar year in question and 1994 provided, however, that

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1 a wagering facility shall not be entitled to any such

2 payment until the Board certifies in writing to the

3 wagering facility the amount to which the wagering facility

4 is entitled and a schedule for payment of the amount to the

5 wagering facility, based on: (i) the racing dates awarded

6 to the race track affiliated with the wagering facility

7 during the succeeding year; (ii) the sums available or

8 anticipated to be available in the purse account of the

9 race track affiliated with the wagering facility for purses

10 during the succeeding year; and (iii) the need to ensure

11 reasonable purse levels during the payment period. The

12 Board's certification shall be provided no later than

13 January 31 of the succeeding year. In the event a wagering

14 facility entitled to a payment under this paragraph (13) is

15 affiliated with a race track that maintains purse accounts

16 for both standardbred and thoroughbred racing, the amount

17 to be paid to the wagering facility shall be divided

18 between each purse account pro rata, based on the amount of

19 Illinois handle on Illinois standardbred and thoroughbred

20 racing respectively at the wagering facility during the

21 previous calendar year. Annually, the General Assembly

22 shall appropriate sufficient funds from the General

23 Revenue Fund to the Department of Agriculture for payment

24 into the thoroughbred and standardbred horse racing purse

25 accounts at Illinois pari-mutuel tracks. The amount paid to

26 each purse account shall be the amount certified by the

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1 Illinois Racing Board in January to be transferred from

2 each account to each eligible racing facility in accordance

3 with the provisions of this Section. Beginning in the

4 calendar year in which an organization licensee that is

5 eligible to receive payment under this paragraph (13)

6 begins to receive funds from electronic gaming, the amount

7 of the payment due to all wagering facilities licensed

8 under that organization licensee under this paragraph (13)

9 shall be the amount certified by the Board in January of

10 that year. An organization licensee and its related

11 wagering facilities shall no longer be able to receive

12 payments under this paragraph (13) beginning in the year

13 subsequent to the first year in which the organization

14 licensee begins to receive funds from electronic gaming.

15 (h) The Board may approve and license the conduct of

16 inter-track wagering and simulcast wagering by inter-track

17 wagering licensees and inter-track wagering location licensees

18 subject to the following terms and conditions:

19 (1) Any person licensed to conduct a race meeting (i)

20 at a track where 60 or more days of racing were conducted

21 during the immediately preceding calendar year or where

22 over the 5 immediately preceding calendar years an average

23 of 30 or more days of racing were conducted annually may be

24 issued an inter-track wagering license; (ii) at a track

25 located in a county that is bounded by the Mississippi

26 River, which has a population of less than 150,000

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1 according to the 1990 decennial census, and an average of

2 at least 60 days of racing per year between 1985 and 1993

3 may be issued an inter-track wagering license; or (iii) at

4 a track located in Madison County that conducted at least

5 100 days of live racing during the immediately preceding

6 calendar year may be issued an inter-track wagering

7 license, unless a lesser schedule of live racing is the

8 result of (A) weather, unsafe track conditions, or other

9 acts of God; (B) an agreement between the organization

10 licensee and the associations representing the largest

11 number of owners, trainers, jockeys, or standardbred

12 drivers who race horses at that organization licensee's

13 racing meeting; or (C) a finding by the Board of

14 extraordinary circumstances and that it was in the best

15 interest of the public and the sport to conduct fewer than

16 100 days of live racing. Any such person having operating

17 control of the racing facility may receive inter-track

18 wagering location licenses. An eligible race track located

19 in a county that has a population of more than 230,000 and

20 that is bounded by the Mississippi River may establish up

21 to 9 inter-track wagering locations, ~~and~~ an eligible race

22 track located in Stickney Township in Cook County may

23 establish up to 16 inter-track wagering locations, and an

24 eligible race track located in Palatine Township in Cook

25 County may establish up to 18 inter-track wagering

26 locations. An application for said license shall be filed

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1 with the Board prior to such dates as may be fixed by the

2 Board. With an application for an inter-track wagering

3 location license there shall be delivered to the Board a

4 certified check or bank draft payable to the order of the

5 Board for an amount equal to $500. The application shall be

6 on forms prescribed and furnished by the Board. The

7 application shall comply with all other rules, regulations

8 and conditions imposed by the Board in connection

9 therewith.

10 (2) The Board shall examine the applications with

11 respect to their conformity with this Act and the rules and

12 regulations imposed by the Board. If found to be in

13 compliance with the Act and rules and regulations of the

14 Board, the Board may then issue a license to conduct

15 inter-track wagering and simulcast wagering to such

16 applicant. All such applications shall be acted upon by the

17 Board at a meeting to be held on such date as may be fixed

18 by the Board.

19 (3) In granting licenses to conduct inter-track

20 wagering and simulcast wagering, the Board shall give due

21 consideration to the best interests of the public, of horse

22 racing, and of maximizing revenue to the State.

23 (4) Prior to the issuance of a license to conduct

24 inter-track wagering and simulcast wagering, the applicant

25 shall file with the Board a bond payable to the State of

26 Illinois in the sum of $50,000, executed by the applicant

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1 and a surety company or companies authorized to do business

2 in this State, and conditioned upon (i) the payment by the

3 licensee of all taxes due under Section 27 or 27.1 and any

4 other monies due and payable under this Act, and (ii)

5 distribution by the licensee, upon presentation of the

6 winning ticket or tickets, of all sums payable to the

7 patrons of pari-mutuel pools.

8 (5) Each license to conduct inter-track wagering and

9 simulcast wagering shall specify the person to whom it is

10 issued, the dates on which such wagering is permitted, and

11 the track or location where the wagering is to be

12 conducted.

13 (6) All wagering under such license is subject to this

14 Act and to the rules and regulations from time to time

15 prescribed by the Board, and every such license issued by

16 the Board shall contain a recital to that effect.

17 (7) An inter-track wagering licensee or inter-track

18 wagering location licensee may accept wagers at the track

19 or location where it is licensed, or as otherwise provided

20 under this Act.

21 (8) Inter-track wagering or simulcast wagering shall

22 not be conducted at any track less than4 ~~5~~ miles from a

23 track at which a racing meeting is in progress.

24 (8.1) Inter-track wagering location licensees who

25 derive their licenses from a particular organization

26 licensee shall conduct inter-track wagering and simulcast

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1 wagering only at locations that are within 160 miles of

2 that race track where the particular organization licensee

3 is licensed to conduct racing. However, inter-track

4 wagering and simulcast wagering shall not be conducted by

5 those licensees at any location within 5 miles of any race

6 track at which a horse race meeting has been licensed in

7 the current year, unless the person having operating

8 control of such race track has given its written consent to

9 such inter-track wagering location licensees, which

10 consent must be filed with the Board at or prior to the

11 time application is made. In the case of any inter-track

12 wagering location licensee initially licensed after

13 December 31, 2013, inter-track wagering and simulcast

14 wagering shall not be conducted by those inter-track

15 wagering location licensees that are located outside the

16 City of Chicago at any location within 8 miles of any race

17 track at which a horse race meeting has been licensed in

18 the current year, unless the person having operating

19 control of such race track has given its written consent to

20 such inter-track wagering location licensees, which

21 consent must be filed with the Board at or prior to the

22 time application is made.

23 (8.2) Inter-track wagering or simulcast wagering shall

24 not be conducted by an inter-track wagering location

25 licensee at any location within 500 feet of an existing

26 church, an ~~or~~ existing elementary or secondary public

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1 school, or an existing elementary or secondary private

2 school registered with or recognized by the State Board of

3 Education ~~school~~, nor within 500 feet of the residences of

4 more than 50 registered voters without receiving written

5 permission from a majority of the registered voters at such

6 residences. Such written permission statements shall be

7 filed with the Board. The distance of 500 feet shall be

8 measured to the nearest part of any building used for

9 worship services, education programs, residential

10 purposes, or conducting inter-track wagering by an

11 inter-track wagering location licensee, and not to

12 property boundaries. However, inter-track wagering or

13 simulcast wagering may be conducted at a site within 500

14 feet of a church, school or residences of 50 or more

15 registered voters if such church, school or residences have

16 been erected or established, or such voters have been

17 registered, after the Board issues the original

18 inter-track wagering location license at the site in

19 question. Inter-track wagering location licensees may

20 conduct inter-track wagering and simulcast wagering only

21 in areas that are zoned for commercial or manufacturing

22 purposes or in areas for which a special use has been

23 approved by the local zoning authority. However, no license

24 to conduct inter-track wagering and simulcast wagering

25 shall be granted by the Board with respect to any

26 inter-track wagering location within the jurisdiction of

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1 any local zoning authority which has, by ordinance or by

2 resolution, prohibited the establishment of an inter-track

3 wagering location within its jurisdiction. However,

4 inter-track wagering and simulcast wagering may be

5 conducted at a site if such ordinance or resolution is

6 enacted after the Board licenses the original inter-track

7 wagering location licensee for the site in question.

8 (9) (Blank).

9 (10) An inter-track wagering licensee or an

10 inter-track wagering location licensee may retain, subject

11 to the payment of the privilege taxes and the purses, an

12 amount not to exceed 17% of all money wagered. Each program

13 of racing conducted by each inter-track wagering licensee

14 or inter-track wagering location licensee shall be

15 considered a separate racing day for the purpose of

16 determining the daily handle and computing the privilege

17 tax or pari-mutuel tax on such daily handle as provided in

18 Section 27.

19 (10.1) Except as provided in subsection (g) of Section

20 27 of this Act, inter-track wagering location licensees

21 shall pay 1% of the pari-mutuel handle at each location to

22 the municipality in which such location is situated and 1%

23 of the pari-mutuel handle at each location to the county in

24 which such location is situated. In the event that an

25 inter-track wagering location licensee is situated in an

26 unincorporated area of a county, such licensee shall pay 2%

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1 of the pari-mutuel handle from such location to such

2 county.

3 (10.2) Notwithstanding any other provision of this

4 Act, with respect to inter-track~~intertrack~~ wagering at a

5 race track located in a county that has a population of

6 more than 230,000 and that is bounded by the Mississippi

7 River ("the first race track"), or at a facility operated

8 by an inter-track wagering licensee or inter-track

9 wagering location licensee that derives its license from

10 the organization licensee that operates the first race

11 track, on races conducted at the first race track or on

12 races conducted at another Illinois race track and

13 simultaneously televised to the first race track or to a

14 facility operated by an inter-track wagering licensee or

15 inter-track wagering location licensee that derives its

16 license from the organization licensee that operates the

17 first race track, those moneys shall be allocated as

18 follows:

19 (A) That portion of all moneys wagered on

20 standardbred racing that is required under this Act to

21 be paid to purses shall be paid to purses for

22 standardbred races.

23 (B) That portion of all moneys wagered on

24 thoroughbred racing that is required under this Act to

25 be paid to purses shall be paid to purses for

26 thoroughbred races.

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1 (11) (A) After payment of the privilege or pari-mutuel

2 tax, any other applicable taxes, and the costs and expenses

3 in connection with the gathering, transmission, and

4 dissemination of all data necessary to the conduct of

5 inter-track wagering, the remainder of the monies retained

6 under either Section 26 or Section 26.2 of this Act by the

7 inter-track wagering licensee on inter-track wagering

8 shall be allocated with 50% to be split between the 2

9 participating licensees and 50% to purses, except that an

10 inter-track ~~intertrack~~wagering licensee that derives its

11 license from a track located in a county with a population

12 in excess of 230,000 and that borders the Mississippi River

13 shall not divide any remaining retention with the Illinois

14 organization licensee that provides the race or races, and

15 an inter-track ~~intertrack~~ wagering licensee that accepts

16 wagers on races conducted by an organization licensee that

17 conducts a race meet in a county with a population in

18 excess of 230,000 and that borders the Mississippi River

19 shall not divide any remaining retention with that

20 organization licensee.

21 (B) From the sums permitted to be retained pursuant to

22 this Act each inter-track wagering location licensee shall

23 pay (i) the privilege or pari-mutuel tax to the State; (ii)

24 4.75% of the pari-mutuel handle oninter-track ~~intertrack~~

25 wagering at such location on races as purses, except that

26 an inter-track ~~intertrack~~ wagering location licensee that

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1 derives its license from a track located in a county with a

2 population in excess of 230,000 and that borders the

3 Mississippi River shall retain all purse moneys for its own

4 purse account consistent with distribution set forth in

5 this subsection (h), and inter-track~~intertrack~~ wagering

6 location licensees that accept wagers on races conducted by

7 an organization licensee located in a county with a

8 population in excess of 230,000 and that borders the

9 Mississippi River shall distribute all purse moneys to

10 purses at the operating host track; (iii) until January 1,

11 2000, except as provided in subsection (g) of Section 27 of

12 this Act, 1% of the pari-mutuel handle wagered on

13 inter-track wagering and simulcast wagering at each

14 inter-track wagering location licensee facility to the

15 Horse Racing Tax Allocation Fund, provided that, to the

16 extent the total amount collected and distributed to the

17 Horse Racing Tax Allocation Fund under this subsection (h)

18 during any calendar year exceeds the amount collected and

19 distributed to the Horse Racing Tax Allocation Fund during

20 calendar year 1994, that excess amount shall be

21 redistributed (I) to all inter-track wagering location

22 licensees, based on each licensee's pro-rata share of the

23 total handle from inter-track wagering and simulcast

24 wagering for all inter-track wagering location licensees

25 during the calendar year in which this provision is

26 applicable; then (II) the amounts redistributed to each

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1 inter-track wagering location licensee as described in

2 subpart (I) shall be further redistributed as provided in

3 subparagraph (B) of paragraph (5) of subsection (g) of this

4 Section 26 provided first, that the shares of those

5 amounts, which are to be redistributed to the host track or

6 to purses at the host track under subparagraph (B) of

7 paragraph (5) of subsection (g) of this Section 26 shall be

8 redistributed based on each host track's pro rata share of

9 the total inter-track wagering and simulcast wagering

10 handle at all host tracks during the calendar year in

11 question, and second, that any amounts redistributed as

12 described in part (I) to an inter-track wagering location

13 licensee that accepts wagers on races conducted by an

14 organization licensee that conducts a race meet in a county

15 with a population in excess of 230,000 and that borders the

16 Mississippi River shall be further redistributed as

17 provided in subparagraphs (D) and (E) of paragraph (7) of

18 subsection (g) of this Section 26, with the portion of that

19 further redistribution allocated to purses at that

20 organization licensee to be divided between standardbred

21 purses and thoroughbred purses based on the amounts

22 otherwise allocated to purses at that organization

23 licensee during the calendar year in question; and (iv) 8%

24 of the pari-mutuel handle on inter-track wagering wagered

25 at such location to satisfy all costs and expenses of

26 conducting its wagering. The remainder of the monies

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1 retained by the inter-track wagering location licensee

2 shall be allocated 40% to the location licensee and 60% to

3 the organization licensee which provides the Illinois

4 races to the location, except that an inter-track

5 ~~intertrack~~wagering location licensee that derives its

6 license from a track located in a county with a population

7 in excess of 230,000 and that borders the Mississippi River

8 shall not divide any remaining retention with the

9 organization licensee that provides the race or races and

10 an inter-track ~~intertrack~~ wagering location licensee that

11 accepts wagers on races conducted by an organization

12 licensee that conducts a race meet in a county with a

13 population in excess of 230,000 and that borders the

14 Mississippi River shall not divide any remaining retention

15 with the organization licensee. Notwithstanding the

16 provisions of clauses (ii) and (iv) of this paragraph, in

17 the case of the additional inter-track wagering location

18 licenses authorized under paragraph (1) of this subsection

19 (h) by Public Act 87-110 ~~this amendatory Act of 1991~~, those

20 licensees shall pay the following amounts as purses: during

21 the first 12 months the licensee is in operation, 5.25% of

22 the pari-mutuel handle wagered at the location on races;

23 during the second 12 months, 5.25%; during the third 12

24 months, 5.75%; during the fourth 12 months, 6.25%; and

25 during the fifth 12 months and thereafter, 6.75%. The

26 following amounts shall be retained by the licensee to

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1 satisfy all costs and expenses of conducting its wagering:

2 during the first 12 months the licensee is in operation,

3 8.25% of the pari-mutuel handle wagered at the location;

4 during the second 12 months, 8.25%; during the third 12

5 months, 7.75%; during the fourth 12 months, 7.25%; and

6 during the fifth 12 months and thereafter, 6.75%. For

7 additional inter-track ~~intertrack~~ wagering location

8 licensees authorized under Public Act 89-16 ~~this~~

9 ~~amendatory Act of 1995~~, purses for the first 12 months the

10 licensee is in operation shall be 5.75% of the pari-mutuel

11 wagered at the location, purses for the second 12 months

12 the licensee is in operation shall be 6.25%, and purses

13 thereafter shall be 6.75%. For additional inter-track

14 ~~intertrack~~location licensees authorized underPublic Act

15 89-16~~this amendatory Act of 1995~~, the licensee shall be

16 allowed to retain to satisfy all costs and expenses: 7.75%

17 of the pari-mutuel handle wagered at the location during

18 its first 12 months of operation, 7.25% during its second

19 12 months of operation, and 6.75% thereafter.

20 (C) There is hereby created the Horse Racing Tax

21 Allocation Fund which shall remain in existence until

22 December 31, 1999. Moneys remaining in the Fund after

23 December 31, 1999 shall be paid into the General Revenue

24 Fund. Until January 1, 2000, all monies paid into the Horse

25 Racing Tax Allocation Fund pursuant to this paragraph (11)

26 by inter-track wagering location licensees located in park

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1 districts of 500,000 population or less, or in a

2 municipality that is not included within any park district

3 but is included within a conservation district and is the

4 county seat of a county that (i) is contiguous to the state

5 of Indiana and (ii) has a 1990 population of 88,257

6 according to the United States Bureau of the Census, and

7 operating on May 1, 1994 shall be allocated by

8 appropriation as follows:

9 Two-sevenths to the Department of Agriculture.

10 Fifty percent of this two-sevenths shall be used to

11 promote the Illinois horse racing and breeding

12 industry, and shall be distributed by the Department of

13 Agriculture upon the advice of a 9-member committee

14 appointed by the Governor consisting of the following

15 members: the Director of Agriculture, who shall serve

16 as chairman; 2 representatives of organization

17 licensees conducting thoroughbred race meetings in

18 this State, recommended by those licensees; 2

19 representatives of organization licensees conducting

20 standardbred race meetings in this State, recommended

21 by those licensees; a representative of the Illinois

22 Thoroughbred Breeders and Owners Foundation,

23 recommended by that Foundation; a representative of

24 the Illinois Standardbred Owners and Breeders

25 Association, recommended by that Association; a

26 representative of the Horsemen's Benevolent and

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1 Protective Association or any successor organization

2 thereto established in Illinois comprised of the

3 largest number of owners and trainers, recommended by

4 that Association or that successor organization; and a

5 representative of the Illinois Harness Horsemen's

6 Association, recommended by that Association.

7 Committee members shall serve for terms of 2 years,

8 commencing January 1 of each even-numbered year. If a

9 representative of any of the above-named entities has

10 not been recommended by January 1 of any even-numbered

11 year, the Governor shall appoint a committee member to

12 fill that position. Committee members shall receive no

13 compensation for their services as members but shall be

14 reimbursed for all actual and necessary expenses and

15 disbursements incurred in the performance of their

16 official duties. The remaining 50% of this

17 two-sevenths shall be distributed to county fairs for

18 premiums and rehabilitation as set forth in the

19 Agricultural Fair Act;

20 Four-sevenths to park districts or municipalities

21 that do not have a park district of 500,000 population

22 or less for museum purposes (if an inter-track wagering

23 location licensee is located in such a park district)

24 or to conservation districts for museum purposes (if an

25 inter-track wagering location licensee is located in a

26 municipality that is not included within any park

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1 district but is included within a conservation

2 district and is the county seat of a county that (i) is

3 contiguous to the state of Indiana and (ii) has a 1990

4 population of 88,257 according to the United States

5 Bureau of the Census, except that if the conservation

6 district does not maintain a museum, the monies shall

7 be allocated equally between the county and the

8 municipality in which the inter-track wagering

9 location licensee is located for general purposes) or

10 to a municipal recreation board for park purposes (if

11 an inter-track wagering location licensee is located

12 in a municipality that is not included within any park

13 district and park maintenance is the function of the

14 municipal recreation board and the municipality has a

15 1990 population of 9,302 according to the United States

16 Bureau of the Census); provided that the monies are

17 distributed to each park district or conservation

18 district or municipality that does not have a park

19 district in an amount equal to four-sevenths of the

20 amount collected by each inter-track wagering location

21 licensee within the park district or conservation

22 district or municipality for the Fund. Monies that were

23 paid into the Horse Racing Tax Allocation Fund before

24 August 9, 1991 (the effective date ofPublic Act

25 87-110) ~~this amendatory Act of 1991~~ by an inter-track

26 wagering location licensee located in a municipality

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1 that is not included within any park district but is

2 included within a conservation district as provided in

3 this paragraph shall, as soon as practicable after

4 August 9, 1991 (the effective date of Public Act

5 87-110) ~~this amendatory Act of 1991~~, be allocated and

6 paid to that conservation district as provided in this

7 paragraph. Any park district or municipality not

8 maintaining a museum may deposit the monies in the

9 corporate fund of the park district or municipality

10 where the inter-track wagering location is located, to

11 be used for general purposes; and

12 One-seventh to the Agricultural Premium Fund to be

13 used for distribution to agricultural home economics

14 extension councils in accordance with "An Act in

15 relation to additional support and finances for the

16 Agricultural and Home Economic Extension Councils in

17 the several counties of this State and making an

18 appropriation therefor", approved July 24, 1967.

19 Until January 1, 2000, all other monies paid into the

20 Horse Racing Tax Allocation Fund pursuant to this paragraph

21 (11) shall be allocated by appropriation as follows:

22 Two-sevenths to the Department of Agriculture.

23 Fifty percent of this two-sevenths shall be used to

24 promote the Illinois horse racing and breeding

25 industry, and shall be distributed by the Department of

26 Agriculture upon the advice of a 9-member committee

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1 appointed by the Governor consisting of the following

2 members: the Director of Agriculture, who shall serve

3 as chairman; 2 representatives of organization

4 licensees conducting thoroughbred race meetings in

5 this State, recommended by those licensees; 2

6 representatives of organization licensees conducting

7 standardbred race meetings in this State, recommended

8 by those licensees; a representative of the Illinois

9 Thoroughbred Breeders and Owners Foundation,

10 recommended by that Foundation; a representative of

11 the Illinois Standardbred Owners and Breeders

12 Association, recommended by that Association; a

13 representative of the Horsemen's Benevolent and

14 Protective Association or any successor organization

15 thereto established in Illinois comprised of the

16 largest number of owners and trainers, recommended by

17 that Association or that successor organization; and a

18 representative of the Illinois Harness Horsemen's

19 Association, recommended by that Association.

20 Committee members shall serve for terms of 2 years,

21 commencing January 1 of each even-numbered year. If a

22 representative of any of the above-named entities has

23 not been recommended by January 1 of any even-numbered

24 year, the Governor shall appoint a committee member to

25 fill that position. Committee members shall receive no

26 compensation for their services as members but shall be

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1 reimbursed for all actual and necessary expenses and

2 disbursements incurred in the performance of their

3 official duties. The remaining 50% of this

4 two-sevenths shall be distributed to county fairs for

5 premiums and rehabilitation as set forth in the

6 Agricultural Fair Act;

7 Four-sevenths to museums and aquariums located in

8 park districts of over 500,000 population; provided

9 that the monies are distributed in accordance with the

10 previous year's distribution of the maintenance tax

11 for such museums and aquariums as provided in Section 2

12 of the Park District Aquarium and Museum Act; and

13 One-seventh to the Agricultural Premium Fund to be

14 used for distribution to agricultural home economics

15 extension councils in accordance with "An Act in

16 relation to additional support and finances for the

17 Agricultural and Home Economic Extension Councils in

18 the several counties of this State and making an

19 appropriation therefor", approved July 24, 1967. This

20 subparagraph (C) shall be inoperative and of no force

21 and effect on and after January 1, 2000.

22 (D) Except as provided in paragraph (11) of this

23 subsection (h), with respect to purse allocation from

24 inter-track ~~intertrack~~wagering, the monies so

25 retained shall be divided as follows:

26 (i) If the inter-track wagering licensee,

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1 except an inter-track ~~intertrack~~wagering licensee

2 that derives its license from an organization

3 licensee located in a county with a population in

4 excess of 230,000 and bounded by the Mississippi

5 River, is not conducting its own race meeting

6 during the same dates, then the entire purse

7 allocation shall be to purses at the track where

8 the races wagered on are being conducted.

9 (ii) If the inter-track wagering licensee,

10 except an inter-track ~~intertrack~~wagering licensee

11 that derives its license from an organization

12 licensee located in a county with a population in

13 excess of 230,000 and bounded by the Mississippi

14 River, is also conducting its own race meeting

15 during the same dates, then the purse allocation

16 shall be as follows: 50% to purses at the track

17 where the races wagered on are being conducted; 50%

18 to purses at the track where the inter-track

19 wagering licensee is accepting such wagers.

20 (iii) If the inter-track wagering is being

21 conducted by an inter-track wagering location

22 licensee, except an inter-track ~~intertrack~~

23 wagering location licensee that derives its

24 license from an organization licensee located in a

25 county with a population in excess of 230,000 and

26 bounded by the Mississippi River, the entire purse

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1 allocation for Illinois races shall be to purses at

2 the track where the race meeting being wagered on

3 is being held.

4 (12) The Board shall have all powers necessary and

5 proper to fully supervise and control the conduct of

6 inter-track wagering and simulcast wagering by inter-track

7 wagering licensees and inter-track wagering location

8 licensees, including, but not limited to the following:

9 (A) The Board is vested with power to promulgate

10 reasonable rules and regulations for the purpose of

11 administering the conduct of this wagering and to

12 prescribe reasonable rules, regulations and conditions

13 under which such wagering shall be held and conducted.

14 Such rules and regulations are to provide for the

15 prevention of practices detrimental to the public

16 interest and for the best interests of said wagering

17 and to impose penalties for violations thereof.

18 (B) The Board, and any person or persons to whom it

19 delegates this power, is vested with the power to enter

20 the facilities of any licensee to determine whether

21 there has been compliance with the provisions of this

22 Act and the rules and regulations relating to the

23 conduct of such wagering.

24 (C) The Board, and any person or persons to whom it

25 delegates this power, may eject or exclude from any

26 licensee's facilities, any person whose conduct or

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1 reputation is such that his presence on such premises

2 may, in the opinion of the Board, call into the

3 question the honesty and integrity of, or interfere

4 with the orderly conduct of such wagering; provided,

5 however, that no person shall be excluded or ejected

6 from such premises solely on the grounds of race,

7 color, creed, national origin, ancestry, or sex.

8 (D) (Blank).

9 (E) The Board is vested with the power to appoint

10 delegates to execute any of the powers granted to it

11 under this Section for the purpose of administering

12 this wagering and any rules and regulations

13 promulgated in accordance with this Act.

14 (F) The Board shall name and appoint a State

15 director of this wagering who shall be a representative

16 of the Board and whose duty it shall be to supervise

17 the conduct of inter-track wagering as may be provided

18 for by the rules and regulations of the Board; such

19 rules and regulation shall specify the method of

20 appointment and the Director's powers, authority and

21 duties.

22 (G) The Board is vested with the power to impose

23 civil penalties of up to $5,000 against individuals and

24 up to $10,000 against licensees for each violation of

25 any provision of this Act relating to the conduct of

26 this wagering, any rules adopted by the Board, any

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1 order of the Board or any other action which in the

2 Board's discretion, is a detriment or impediment to

3 such wagering.

4 (13) The Department of Agriculture may enter into

5 agreements with licensees authorizing such licensees to

6 conduct inter-track wagering on races to be held at the

7 licensed race meetings conducted by the Department of

8 Agriculture. Such agreement shall specify the races of the

9 Department of Agriculture's licensed race meeting upon

10 which the licensees will conduct wagering. In the event

11 that a licensee conducts inter-track pari-mutuel wagering

12 on races from the Illinois State Fair or DuQuoin State Fair

13 which are in addition to the licensee's previously approved

14 racing program, those races shall be considered a separate

15 racing day for the purpose of determining the daily handle

16 and computing the privilege or pari-mutuel tax on that

17 daily handle as provided in Sections 27 and 27.1. Such

18 agreements shall be approved by the Board before such

19 wagering may be conducted. In determining whether to grant

20 approval, the Board shall give due consideration to the

21 best interests of the public and of horse racing. The

22 provisions of paragraphs (1), (8), (8.1), and (8.2) of

23 subsection (h) of this Section which are not specified in

24 this paragraph (13) shall not apply to licensed race

25 meetings conducted by the Department of Agriculture at the

26 Illinois State Fair in Sangamon County or the DuQuoin State

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1 Fair in Perry County, or to any wagering conducted on those

2 race meetings.

3 (14) An inter-track wagering location license

4 authorized by the Board in 2016 that is owned and operated

5 by a race track in Rock Island County shall be transferred

6 to a commonly owned race track in Cook County on August 12,

7 2016 (the effective date of Public Act 99-757) ~~this~~

8 ~~amendatory Act of the 99th General Assembly~~. The licensee

9 shall retain its status in relation to purse distribution

10 under paragraph (11) of this subsection (h) following the

11 transfer to the new entity. The pari-mutuel tax credit

12 under Section 32.1 shall not be applied toward any

13 pari-mutuel tax obligation of the inter-track wagering

14 location licensee of the license that is transferred under

15 this paragraph (14).

16 (i) Notwithstanding the other provisions of this Act, the

17 conduct of wagering at wagering facilities is authorized on all

18 days, except as limited by subsection (b) of Section 19 of this

19 Act.

20 (Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 98-968,

21 eff. 8-15-14; 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;

22 revised 9-14-16.)

23 (230 ILCS 5/26.8)

24 Sec. 26.8. Beginning on February 1, 2014 ~~and through~~

25 ~~December 31, 2018~~, each wagering licensee may impose a

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1 surcharge of up to 0.5% on winning wagers and winnings from

2 wagers. The surcharge shall be deducted from winnings prior to

3 payout. All amounts collected from the imposition of this

4 surcharge shall be evenly distributed to the organization

5 licensee and the purse account of the organization licensee

6 with which the licensee is affiliated. The amounts distributed

7 under this Section shall be in addition to the amounts paid

8 pursuant to paragraph (10) of subsection (h) of Section 26,

9 Section 26.3, Section 26.4, Section 26.5, and Section 26.7.

10 (Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)

11 (230 ILCS 5/26.9)

12 Sec. 26.9. Beginning on February 1, 2014 ~~and through~~

13 ~~December 31, 2018~~, in addition to the surcharge imposed in

14 Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each

15 licensee shall impose a surcharge of 0.2% on winning wagers and

16 winnings from wagers. The surcharge shall be deducted from

17 winnings prior to payout. All amounts collected from the

18 surcharges imposed under this Section shall be remitted to the

19 Board. From amounts collected under this Section, the Board

20 shall deposit an amount not to exceed $100,000 annually into

21 the Quarter Horse Purse Fund and all remaining amounts into the

22 Horse Racing Fund.

23 (Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)

24 (230 ILCS 5/27) (from Ch. 8, par. 37-27)

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1 Sec. 27. (a) In addition to the organization license fee

2 provided by this Act, until January 1, 2000, a graduated

3 privilege tax is hereby imposed for conducting the pari-mutuel

4 system of wagering permitted under this Act. Until January 1,

5 2000, except as provided in subsection (g) of Section 27 of

6 this Act, all of the breakage of each racing day held by any

7 licensee in the State shall be paid to the State. Until January

8 1, 2000, such daily graduated privilege tax shall be paid by

9 the licensee from the amount permitted to be retained under

10 this Act. Until January 1, 2000, each day's graduated privilege

11 tax, breakage, and Horse Racing Tax Allocation funds shall be

12 remitted to the Department of Revenue within 48 hours after the

13 close of the racing day upon which it is assessed or within

14 such other time as the Board prescribes. The privilege tax

15 hereby imposed, until January 1, 2000, shall be a flat tax at

16 the rate of 2% of the daily pari-mutuel handle except as

17 provided in Section 27.1.

18 In addition, every organization licensee, except as

19 provided in Section 27.1 of this Act, which conducts multiple

20 wagering shall pay, until January 1, 2000, as a privilege tax

21 on multiple wagers an amount equal to 1.25% of all moneys

22 wagered each day on such multiple wagers, plus an additional

23 amount equal to 3.5% of the amount wagered each day on any

24 other multiple wager which involves a single betting interest

25 on 3 or more horses. The licensee shall remit the amount of

26 such taxes to the Department of Revenue within 48 hours after

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1 the close of the racing day on which it is assessed or within

2 such other time as the Board prescribes.

3 This subsection (a) shall be inoperative and of no force

4 and effect on and after January 1, 2000.

5 (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax

6 at the rate of 1.5% of the daily pari-mutuel handle is imposed

7 at all pari-mutuel wagering facilities and on advance deposit

8 wagering from a location other than a wagering facility, except

9 as otherwise provided for in this subsection (a-5). In addition

10 to the pari-mutuel tax imposed on advance deposit wagering

11 pursuant to this subsection (a-5), beginning on August 24, 2012

12 (the effective date of Public Act 97-1060) ~~and through December~~

13 ~~31, 2018~~, an additional pari-mutuel tax at the rate of 0.25%

14 shall be imposed on advance deposit wagering. Until August 25,

15 2012, the additional 0.25% pari-mutuel tax imposed on advance

16 deposit wagering by Public Act 96-972 shall be deposited into

17 the Quarter Horse Purse Fund, which shall be created as a

18 non-appropriated trust fund administered by the Board for

19 grants to thoroughbred organization licensees for payment of

20 purses for quarter horse races conducted by the organization

21 licensee. Beginning on August 26, 2012, the additional 0.25%

22 pari-mutuel tax imposed on advance deposit wagering shall be

23 deposited into the Standardbred Purse Fund, which shall be

24 created as a non-appropriated trust fund administered by the

25 Board, for grants to the standardbred organization licensees

26 for payment of purses for standardbred horse races conducted by

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1 the organization licensee. Thoroughbred organization licensees

2 may petition the Board to conduct quarter horse racing and

3 receive purse grants from the Quarter Horse Purse Fund. The

4 Board shall have complete discretion in distributing the

5 Quarter Horse Purse Fund to the petitioning organization

6 licensees. Beginning on July 26, 2010 (the effective date of

7 Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of

8 the daily pari-mutuel handle is imposed at a pari-mutuel

9 facility whose license is derived from a track located in a

10 county that borders the Mississippi River and conducted live

11 racing in the previous year. The pari-mutuel tax imposed by

12 this subsection (a-5) shall be remitted to the Department of

13 Revenue within 48 hours after the close of the racing day upon

14 which it is assessed or within such other time as the Board

15 prescribes.

16 (a-10) Beginning on the date when an organization licensee

17 begins conducting electronic gaming pursuant to an electronic

18 gaming license, the following pari-mutuel tax is imposed upon

19 an organization licensee on Illinois races at the licensee's

20 race track:

21 1.5% of the pari-mutuel handle at or below the average

22 daily pari-mutuel handle for 2011.

23 2% of the pari-mutuel handle above the average daily

24 pari-mutuel handle for 2011 up to 125% of the average daily

25 pari-mutuel handle for 2011.

26 2.5% of the pari-mutuel handle 125% or more above the

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1 average daily pari-mutuel handle for 2011 up to 150% of the

2 average daily pari-mutuel handle for 2011.

3 3% of the pari-mutuel handle 150% or more above the

4 average daily pari-mutuel handle for 2011 up to 175% of the

5 average daily pari-mutuel handle for 2011.

6 3.5% of the pari-mutuel handle 175% or more above the

7 average daily pari-mutuel handle for 2011.

8 The pari-mutuel tax imposed by this subsection (a-10) shall

9 be remitted to the Board within 48 hours after the close of the

10 racing day upon which it is assessed or within such other time

11 as the Board prescribes.

12 (b) On or before December 31, 1999, in the event that any

13 organization licensee conducts 2 separate programs of races on

14 any day, each such program shall be considered a separate

15 racing day for purposes of determining the daily handle and

16 computing the privilege tax on such daily handle as provided in

17 subsection (a) of this Section.

18 (c) Licensees shall at all times keep accurate books and

19 records of all monies wagered on each day of a race meeting and

20 of the taxes paid to the Department of Revenue under the

21 provisions of this Section. The Board or its duly authorized

22 representative or representatives shall at all reasonable

23 times have access to such records for the purpose of examining

24 and checking the same and ascertaining whether the proper

25 amount of taxes is being paid as provided. The Board shall

26 require verified reports and a statement of the total of all

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1 monies wagered daily at each wagering facility upon which the

2 taxes are assessed and may prescribe forms upon which such

3 reports and statement shall be made.

4 (d) Before a license is issued or re-issued, the licensee

5 shall post a bond in the sum of $500,000 to the State of

6 Illinois. The bond shall be used to guarantee that the licensee

7 faithfully makes the payments, keeps the books and records and

8 makes reports, and conducts games of chance in conformity with

9 this Act and the rules adopted by the Board. The bond shall not

10 be canceled by a surety on less than 30 days' notice in writing

11 to the Board. If a bond is canceled and the licensee fails to

12 file a new bond with the Board in the required amount on or

13 before the effective date of cancellation, the licensee's

14 license shall be revoked. The total and aggregate liability of

15 the surety on the bond is limited to the amount specified in

16 the bond. ~~Any licensee failing or refusing to pay the amount of~~

17 ~~any tax due under this Section shall be guilty of a business~~

18 ~~offense and upon conviction shall be fined not more than $5,000~~

19 ~~in addition to the amount found due as tax under this Section.~~

20 ~~Each day's violation shall constitute a separate offense. All~~

21 ~~fines paid into Court by a licensee hereunder shall be~~

22 ~~transmitted and paid over by the Clerk of the Court to the~~

23 ~~Board.~~

24 (e) No other license fee, privilege tax, excise tax, or

25 racing fee, except as provided in this Act, shall be assessed

26 or collected from any such licensee by the State.

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1 (f) No other license fee, privilege tax, excise tax or

2 racing fee shall be assessed or collected from any such

3 licensee by units of local government except as provided in

4 paragraph 10.1 of subsection (h) and subsection (f) of Section

5 26 of this Act. However, any municipality that has a Board

6 licensed horse race meeting at a race track wholly within its

7 corporate boundaries or a township that has a Board licensed

8 horse race meeting at a race track wholly within the

9 unincorporated area of the township may charge a local

10 amusement tax not to exceed 10� per admission to such horse

11 race meeting by the enactment of an ordinance. However, any

12 municipality or county that has a Board licensed inter-track

13 wagering location facility wholly within its corporate

14 boundaries may each impose an admission fee not to exceed $1.00

15 per admission to such inter-track wagering location facility,

16 so that a total of not more than $2.00 per admission may be

17 imposed. Except as provided in subparagraph (g) of Section 27

18 of this Act, the inter-track wagering location licensee shall

19 collect any and all such fees and~~within 48 hours~~ remit the

20 fees to the Board as the Board prescribes, which shall,

21 pursuant to rule, cause the fees to be distributed to the

22 county or municipality.

23 (g) Notwithstanding any provision in this Act to the

24 contrary, if in any calendar year the total taxes and feesfrom

25 wagering on live racing and from inter-track wagering required

26 to be collected from licensees and distributed under this Act

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1 to all State and local governmental authorities exceeds the

2 amount of such taxes and fees distributed to each State and

3 local governmental authority to which each State and local

4 governmental authority was entitled under this Act for calendar

5 year 1994, then the first $11 million of that excess amount

6 shall be allocated at the earliest possible date for

7 distribution as purse money for the succeeding calendar year.

8 Upon reaching the 1994 level, and until the excess amount of

9 taxes and fees exceeds $11 million, the Board shall direct all

10 licensees to cease paying the subject taxes and fees and the

11 Board shall direct all licensees to allocate any such excess

12 amount for purses as follows:

13 (i) the excess amount shall be initially divided

14 between thoroughbred and standardbred purses based on the

15 thoroughbred's and standardbred's respective percentages

16 of total Illinois live wagering in calendar year 1994;

17 (ii) each thoroughbred and standardbred organization

18 licensee issued an organization licensee in that

19 succeeding allocation year shall be allocated an amount

20 equal to the product of its percentage of total Illinois

21 live thoroughbred or standardbred wagering in calendar

22 year 1994 (the total to be determined based on the sum of

23 1994 on-track wagering for all organization licensees

24 issued organization licenses in both the allocation year

25 and the preceding year) multiplied by the total amount

26 allocated for standardbred or thoroughbred purses,

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1 provided that the first $1,500,000 of the amount allocated

2 to standardbred purses under item (i) shall be allocated to

3 the Department of Agriculture to be expended with the

4 assistance and advice of the Illinois Standardbred

5 Breeders Funds Advisory Board for the purposes listed in

6 subsection (g) of Section 31 of this Act, before the amount

7 allocated to standardbred purses under item (i) is

8 allocated to standardbred organization licensees in the

9 succeeding allocation year.

10 To the extent the excess amount of taxes and fees to be

11 collected and distributed to State and local governmental

12 authorities exceeds $11 million, that excess amount shall be

13 collected and distributed to State and local authorities as

14 provided for under this Act.

15 (Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756,

16 eff. 8-12-16.)

17 (230 ILCS 5/30) (from Ch. 8, par. 37-30)

18 Sec. 30. (a) The General Assembly declares that it is the

19 policy of this State to encourage the breeding of thoroughbred

20 horses in this State and the ownership of such horses by

21 residents of this State in order to provide for: sufficient

22 numbers of high quality thoroughbred horses to participate in

23 thoroughbred racing meetings in this State, and to establish

24 and preserve the agricultural and commercial benefits of such

25 breeding and racing industries to the State of Illinois. It is

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1 the intent of the General Assembly to further this policy by

2 the provisions of this Act.

3 (b) Each organization licensee conducting a thoroughbred

4 racing meeting pursuant to this Act shall provide at least two

5 races each day limited to Illinois conceived and foaled horses

6 or Illinois foaled horses or both. A minimum of 6 races shall

7 be conducted each week limited to Illinois conceived and foaled

8 or Illinois foaled horses or both. No horses shall be permitted

9 to start in such races unless duly registered under the rules

10 of the Department of Agriculture.

11 (c) Conditions of races under subsection (b) shall be

12 commensurate with past performance, quality, and class of

13 Illinois conceived and foaled and Illinois foaled horses

14 available. If, however, sufficient competition cannot be had

15 among horses of that class on any day, the races may, with

16 consent of the Board, be eliminated for that day and substitute

17 races provided.

18 (d) There is hereby created a special fund of the State

19 Treasury to be known as the Illinois Thoroughbred Breeders

20 Fund.

21 Beginning on the effective date of this amendatory Act of

22 the 100th General Assembly, the Illinois Thoroughbred Breeders

23 Fund shall become a non-appropriated trust fund held separately

24 from State moneys. Expenditures from this Fund shall no longer

25 be subject to appropriation.

26 Except as provided in subsection (g) of Section 27 of this

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1 Act, 8.5% of all the monies received by the State as privilege

2 taxes on Thoroughbred racing meetings shall be paid into the

3 Illinois Thoroughbred Breeders Fund.

4 Notwithstanding any provision of law to the contrary,

5 amounts deposited into the Illinois Thoroughbred Breeders Fund

6 from revenues generated by electronic gaming after the

7 effective date of this amendatory Act of the 100th General

8 Assembly shall be in addition to tax and fee amounts paid under

9 this Section for calendar year 2017 and thereafter.

10 (e) The Illinois Thoroughbred Breeders Fund shall be

11 administered by the Department of Agriculture with the advice

12 and assistance of the Advisory Board created in subsection (f)

13 of this Section.

14 (f) The Illinois Thoroughbred Breeders Fund Advisory Board

15 shall consist of the Director of the Department of Agriculture,

16 who shall serve as Chairman; a member of the Illinois Racing

17 Board, designated by it; 2 representatives of the organization

18 licensees conducting thoroughbred racing meetings, recommended

19 by them; 2 representatives of the Illinois Thoroughbred

20 Breeders and Owners Foundation, recommended by it; one

21 representative ~~and 2 representatives~~ of the Horsemen's

22 Benevolent Protective Association; and one representative from

23 the Illinois Thoroughbred Horsemen's Association ~~or any~~

24 ~~successor organization established in Illinois comprised of~~

25 ~~the largest number of owners and trainers, recommended by it,~~

26 ~~with one representative of the Horsemen's Benevolent and~~

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1 ~~Protective Association to come from its Illinois Division, and~~

2 ~~one from its Chicago Division~~. Advisory Board members shall

3 serve for 2 years commencing January 1 of each odd numbered

4 year. If representatives of the organization licensees

5 conducting thoroughbred racing meetings, the Illinois

6 Thoroughbred Breeders and Owners Foundation,~~and~~ the

7 Horsemen's Benevolent Protection Association, and the Illinois

8 Thoroughbred Horsemen's Associationhave not been recommended

9 by January 1, of each odd numbered year, the Director of the

10 Department of Agriculture shall make an appointment for the

11 organization failing to so recommend a member of the Advisory

12 Board. Advisory Board members shall receive no compensation for

13 their services as members but shall be reimbursed for all

14 actual and necessary expenses and disbursements incurred in the

15 execution of their official duties.

16 (g) ~~No monies shall be expended from the Illinois~~

17 ~~Thoroughbred Breeders Fund except as appropriated by the~~

18 ~~General Assembly.~~ Monies expended~~appropriated~~ from the

19 Illinois Thoroughbred Breeders Fund shall be expended by the

20 Department of Agriculture, with the advice and assistance of

21 the Illinois Thoroughbred Breeders Fund Advisory Board, for the

22 following purposes only:

23 (1) To provide purse supplements to owners of horses

24 participating in races limited to Illinois conceived and

25 foaled and Illinois foaled horses. Any such purse

26 supplements shall not be included in and shall be paid in

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1 addition to any purses, stakes, or breeders' awards offered

2 by each organization licensee as determined by agreement

3 between such organization licensee and an organization

4 representing the horsemen. No monies from the Illinois

5 Thoroughbred Breeders Fund shall be used to provide purse

6 supplements for claiming races in which the minimum

7 claiming price is less than $7,500.

8 (2) To provide stakes and awards to be paid to the

9 owners of the winning horses in certain races limited to

10 Illinois conceived and foaled and Illinois foaled horses

11 designated as stakes races.

12 (2.5) To provide an award to the owner or owners of an

13 Illinois conceived and foaled or Illinois foaled horse that

14 wins a maiden special weight, an allowance, overnight

15 handicap race, or claiming race with claiming price of

16 $10,000 or more providing the race is not restricted to

17 Illinois conceived and foaled or Illinois foaled horses.

18 Awards shall also be provided to the owner or owners of

19 Illinois conceived and foaled and Illinois foaled horses

20 that place second or third in those races. To the extent

21 that additional moneys are required to pay the minimum

22 additional awards of 40% of the purse the horse earns for

23 placing first, second or third in those races for Illinois

24 foaled horses and of 60% of the purse the horse earns for

25 placing first, second or third in those races for Illinois

26 conceived and foaled horses, those moneys shall be provided

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1 from the purse account at the track where earned.

2 (3) To provide stallion awards to the owner or owners

3 of any stallion that is duly registered with the Illinois

4 Thoroughbred Breeders Fund Program~~prior to the effective~~

5 ~~date of this amendatory Act of 1995~~whose duly registered

6 Illinois conceived and foaled offspring wins a race

7 conducted at an Illinois thoroughbred racing meeting other

8 than a claiming race, provided that the stallion stood

9 service within Illinois at the time the offspring was

10 conceived and that the stallion did not stand for service

11 outside of Illinois at any time during the year in which

12 the offspring was conceived. ~~Such award shall not be paid~~

13 ~~to the owner or owners of an Illinois stallion that served~~

14 ~~outside this State at any time during the calendar year in~~

15 ~~which such race was conducted.~~

16 (4) To provide $75,000 annually for purses to be

17 distributed to county fairs that provide for the running of

18 races during each county fair exclusively for the

19 thoroughbreds conceived and foaled in Illinois. The

20 conditions of the races shall be developed by the county

21 fair association and reviewed by the Department with the

22 advice and assistance of the Illinois Thoroughbred

23 Breeders Fund Advisory Board. There shall be no wagering of

24 any kind on the running of Illinois conceived and foaled

25 races at county fairs.

26 (4.1) To provide purse money for an Illinois stallion

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1 stakes program.

2 (5) No less than 90% ~~80%~~ of all monies appropriated

3 from the Illinois Thoroughbred Breeders Fund shall be

4 expended for the purposes in (1), (2), (2.5), (3), (4),

5 (4.1), and (5) as shown above.

6 (6) To provide for educational programs regarding the

7 thoroughbred breeding industry.

8 (7) To provide for research programs concerning the

9 health, development and care of the thoroughbred horse.

10 (8) To provide for a scholarship and training program

11 for students of equine veterinary medicine.

12 (9) To provide for dissemination of public information

13 designed to promote the breeding of thoroughbred horses in

14 Illinois.

15 (10) To provide for all expenses incurred in the

16 administration of the Illinois Thoroughbred Breeders Fund.

17 (h) The Illinois Thoroughbred Breeders Fund is not subject

18 to administrative charges or chargebacks, including, but not

19 limited to, those authorized under Section 8h of the State

20 Finance Act. ~~Whenever the Governor finds that the amount in the~~

21 ~~Illinois Thoroughbred Breeders Fund is more than the total of~~

22 ~~the outstanding appropriations from such fund, the Governor~~

23 ~~shall notify the State Comptroller and the State Treasurer of~~

24 ~~such fact. The Comptroller and the State Treasurer, upon~~

25 ~~receipt of such notification, shall transfer such excess amount~~

26 ~~from the Illinois Thoroughbred Breeders Fund to the General~~

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1 ~~Revenue Fund.~~

2 (i) A sum equal to 13% of the first prize money of every

3 purse won by an Illinois foaled or Illinois conceived and

4 foaled horse in races not limited to Illinois foaled horses or

5 Illinois conceived and foaled horses, or both, shall be paid by

6 the organization licensee conducting the horse race meeting.

7 Such sum shall be paid 50% from the organization licensee's

8 share of the money wagered and 50% from the purse account as

9 follows: 11 1/2% to the breeder of the winning horse and 1 1/2%

10 to the organization representing thoroughbred breeders and

11 owners who representative serves on the Illinois Thoroughbred

12 Breeders Fund Advisory Board for verifying the amounts of

13 breeders' awards earned, ensuring their distribution in

14 accordance with this Act, and servicing and promoting the

15 Illinois thoroughbred horse racing industry. Beginning in the

16 calendar year in which an organization licensee that is

17 eligible to receive payments under paragraph (13) of subsection

18 (g) of Section 26 of this Act begins to receive funds from

19 electronic gaming, a sum equal to 21 1/2% of the first prize

20 money of every purse won by an Illinois foaled or an Illinois

21 conceived and foaled horse in races not limited to an Illinois

22 conceived and foaled horse, or both, shall be paid 30% from the

23 organization licensee's account and 70% from the purse account

24 as follows: 20% to the breeder of the winning horse and 1 1/2%

25 to the organization representing thoroughbred breeders and

26 owners whose representatives serves on the Illinois

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1 Thoroughbred Breeders Fund Advisory Board for verifying the

2 amounts of breeders' awards earned, assuring their

3 distribution in accordance with this Act, and servicing and

4 promoting the Illinois Thoroughbred racing industry. ~~A sum~~

5 ~~equal to 12 1/2% of the first prize money of every purse won by~~

6 ~~an Illinois foaled or an Illinois conceived and foaled horse in~~

7 ~~races not limited to Illinois foaled horses or Illinois~~

8 ~~conceived and foaled horses, or both, shall be paid by the~~

9 ~~organization licensee conducting the horse race meeting. Such~~

10 ~~sum shall be paid from the organization licensee's share of the~~

11 ~~money wagered as follows: 11 1/2% to the breeder of the winning~~

12 ~~horse and 1% to the organization representing thoroughbred~~

13 ~~breeders and owners whose representative serves on the Illinois~~

14 ~~Thoroughbred Breeders Fund Advisory Board for verifying the~~

15 ~~amounts of breeders' awards earned, assuring their~~

16 ~~distribution in accordance with this Act, and servicing and~~

17 ~~promoting the Illinois thoroughbred horse racing industry.~~The

18 organization representing thoroughbred breeders and owners

19 shall cause all expenditures of monies received under this

20 subsection (i) to be audited at least annually by a registered

21 public accountant. The organization shall file copies of each

22 annual audit with the Racing Board, the Clerk of the House of

23 Representatives and the Secretary of the Senate, and shall make

24 copies of each annual audit available to the public upon

25 request and upon payment of the reasonable cost of photocopying

26 the requested number of copies. Such payments shall not reduce

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1 any award to the owner of the horse or reduce the taxes payable

2 under this Act. Upon completion of its racing meet, each

3 organization licensee shall deliver to the organization

4 representing thoroughbred breeders and owners whose

5 representative serves on the Illinois Thoroughbred Breeders

6 Fund Advisory Board a listing of all the Illinois foaled and

7 the Illinois conceived and foaled horses which won breeders'

8 awards and the amount of such breeders' awards under this

9 subsection to verify accuracy of payments and assure proper

10 distribution of breeders' awards in accordance with the

11 provisions of this Act. Such payments shall be delivered by the

12 organization licensee within 30 days of the end of each race

13 meeting.

14 (j) A sum equal to 13% of the first prize money won in

15 every race limited to Illinois foaled horses or Illinois

16 conceived and foaled horses, or both, shall be paid in the

17 following manner by the organization licensee conducting the

18 horse race meeting, 50% from the organization licensee's share

19 of the money wagered and 50% from the purse account as follows:

20 11 1/2% to the breeders of the horses in each such race which

21 are the official first, second, third, and fourth finishers and

22 1 1/2% to the organization representing thoroughbred breeders

23 and owners whose representatives serves on the Illinois

24 Thoroughbred Breeders Fund Advisory Board for verifying the

25 amounts of breeders' awards earned, ensuring their proper

26 distribution in accordance with this Act, and servicing and

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1 promoting the Illinois horse racing industry. Beginning in the

2 calendar year in which an organization licensee that is

3 eligible to receive payments under paragraph (13) of subsection

4 (g) of Section 26 of this Act begins to receive funds from

5 electronic gaming, a sum of 21 1/2% of every purse in a race

6 limited to Illinois foaled horses or Illinois conceived and

7 foaled horses, or both, shall be paid by the organization

8 licensee conducting the horse race meeting. Such sum shall be

9 paid 30% from the organization licensee's account and 70% from

10 the purse account as follows: 20% to the breeders of the horses

11 in each such race who are official first, second, third and

12 fourth finishers and 1 1/2% to the organization representing

13 thoroughbred breeders and owners whose representatives serve

14 on the Illinois Thoroughbred Breeders Fund Advisory Board for

15 verifying the amounts of breeders' awards earned, ensuring

16 their proper distribution in accordance with this Act, and

17 servicing and promoting the Illinois thoroughbred horse racing

18 industry. The organization representing thoroughbred breeders

19 and owners shall cause all expenditures of moneys received

20 under this subsection (j) to be audited at least annually by a

21 registered public accountant. The organization shall file

22 copies of each annual audit with the Racing Board, the Clerk of

23 the House of Representatives and the Secretary of the Senate,

24 and shall make copies of each annual audit available to the

25 public upon request and upon payment of the reasonable cost of

26 photocopying the requested number of copies. ~~A sum equal to 12~~

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1 ~~1/2% of the first prize money won in each race limited to~~

2 ~~Illinois foaled horses or Illinois conceived and foaled horses,~~

3 ~~or both, shall be paid in the following manner by the~~

4 ~~organization licensee conducting the horse race meeting, from~~

5 ~~the organization licensee's share of the money wagered: 11 1/2%~~

6 ~~to the breeders of the horses in each such race which are the~~

7 ~~official first, second, third and fourth finishers and 1% to~~

8 ~~the organization representing thoroughbred breeders and owners~~

9 ~~whose representative serves on the Illinois Thoroughbred~~

10 ~~Breeders Fund Advisory Board for verifying the amounts of~~

11 ~~breeders' awards earned, assuring their proper distribution in~~

12 ~~accordance with this Act, and servicing and promoting the~~

13 ~~Illinois thoroughbred horse racing industry. The organization~~

14 ~~representing thoroughbred breeders and owners shall cause all~~

15 ~~expenditures of monies received under this subsection (j) to be~~

16 ~~audited at least annually by a registered public accountant.~~

17 ~~The organization shall file copies of each annual audit with~~

18 ~~the Racing Board, the Clerk of the House of Representatives and~~

19 ~~the Secretary of the Senate, and shall make copies of each~~

20 ~~annual audit available to the public upon request and upon~~

21 ~~payment of the reasonable cost of photocopying the requested~~

22 ~~number of copies.~~

23 The amounts ~~11 1/2%~~ paid to the breeders in accordance with

24 this subsection shall be distributed as follows:

25 (1) 60% of such sum shall be paid to the breeder of the

26 horse which finishes in the official first position;

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1 (2) 20% of such sum shall be paid to the breeder of the

2 horse which finishes in the official second position;

3 (3) 15% of such sum shall be paid to the breeder of the

4 horse which finishes in the official third position; and

5 (4) 5% of such sum shall be paid to the breeder of the

6 horse which finishes in the official fourth position.

7 Such payments shall not reduce any award to the owners of a

8 horse or reduce the taxes payable under this Act. Upon

9 completion of its racing meet, each organization licensee shall

10 deliver to the organization representing thoroughbred breeders

11 and owners whose representative serves on the Illinois

12 Thoroughbred Breeders Fund Advisory Board a listing of all the

13 Illinois foaled and the Illinois conceived and foaled horses

14 which won breeders' awards and the amount of such breeders'

15 awards in accordance with the provisions of this Act. Such

16 payments shall be delivered by the organization licensee within

17 30 days of the end of each race meeting.

18 (k) The term "breeder", as used herein, means the owner of

19 the mare at the time the foal is dropped. An "Illinois foaled

20 horse" is a foal dropped by a mare which enters this State on

21 or before December 1, in the year in which the horse is bred,

22 provided the mare remains continuously in this State until its

23 foal is born. An "Illinois foaled horse" also means a foal born

24 of a mare in the same year as the mare enters this State on or

25 before March 1, and remains in this State at least 30 days

26 after foaling, is bred back during the season of the foaling to

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1 an Illinois Registered Stallion (unless a veterinarian

2 certifies that the mare should not be bred for health reasons),

3 and is not bred to a stallion standing in any other state

4 during the season of foaling. An "Illinois foaled horse" also

5 means a foal born in Illinois of a mare purchased at public

6 auction subsequent to the mare entering this Stateon or before

7 March 1 ~~prior to February 1~~of the foaling year providing the

8 mare is owned solely by one or more Illinois residents or an

9 Illinois entity that is entirely owned by one or more Illinois

10 residents.

11 (l) The Department of Agriculture shall, by rule, with the

12 advice and assistance of the Illinois Thoroughbred Breeders

13 Fund Advisory Board:

14 (1) Qualify stallions for Illinois breeding; such

15 stallions to stand for service within the State of Illinois

16 at the time of a foal's conception. Such stallion must not

17 stand for service at any place outside the State of

18 Illinois during the calendar year in which the foal is

19 conceived. The Department of Agriculture may assess and

20 collect an application fee of up to $500 ~~fees~~for the

21 registration of Illinois-eligible stallions. All fees

22 collected are to be held in trust accounts for the purposes

23 set forth in this Act and in accordance with Section 205-15

24 of the Department of Agriculture Law ~~paid into the Illinois~~

25 ~~Thoroughbred Breeders Fund~~.

26 (2) Provide for the registration of Illinois conceived

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1 and foaled horses and Illinois foaled horses. No such horse

2 shall compete in the races limited to Illinois conceived

3 and foaled horses or Illinois foaled horses or both unless

4 registered with the Department of Agriculture. The

5 Department of Agriculture may prescribe such forms as are

6 necessary to determine the eligibility of such horses. The

7 Department of Agriculture may assess and collect

8 application fees for the registration of Illinois-eligible

9 foals. All fees collected are to be held in trust accounts

10 for the purposes set forth in this Act and in accordance

11 with Section 205-15 of the Department of Agriculture Law

12 ~~paid into the Illinois Thoroughbred Breeders Fund~~. No

13 person shall knowingly prepare or cause preparation of an

14 application for registration of such foals containing

15 false information.

16 (m) The Department of Agriculture, with the advice and

17 assistance of the Illinois Thoroughbred Breeders Fund Advisory

18 Board, shall provide that certain races limited to Illinois

19 conceived and foaled and Illinois foaled horses be stakes races

20 and determine the total amount of stakes and awards to be paid

21 to the owners of the winning horses in such races.

22 In determining the stakes races and the amount of awards

23 for such races, the Department of Agriculture shall consider

24 factors, including but not limited to, the amount of money

25 appropriated for the Illinois Thoroughbred Breeders Fund

26 program, organization licensees' contributions, availability

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1 of stakes caliber horses as demonstrated by past performances,

2 whether the race can be coordinated into the proposed racing

3 dates within organization licensees' racing dates, opportunity

4 for colts and fillies and various age groups to race, public

5 wagering on such races, and the previous racing schedule.

6 (n) The Board and the organizational licensee shall notify

7 the Department of the conditions and minimum purses for races

8 limited to Illinois conceived and foaled and Illinois foaled

9 horses conducted for each organizational licensee conducting a

10 thoroughbred racing meeting. The Department of Agriculture

11 with the advice and assistance of the Illinois Thoroughbred

12 Breeders Fund Advisory Board may allocate monies for purse

13 supplements for such races. In determining whether to allocate

14 money and the amount, the Department of Agriculture shall

15 consider factors, including but not limited to, the amount of

16 money appropriated for the Illinois Thoroughbred Breeders Fund

17 program, the number of races that may occur, and the

18 organizational licensee's purse structure.

19 (o) (Blank).

20 (Source: P.A. 98-692, eff. 7-1-14.)

21 (230 ILCS 5/30.5)

22 Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.

23 (a) The General Assembly declares that it is the policy of

24 this State to encourage the breeding of racing quarter horses

25 in this State and the ownership of such horses by residents of

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1 this State in order to provide for sufficient numbers of high

2 quality racing quarter horses in this State and to establish

3 and preserve the agricultural and commercial benefits of such

4 breeding and racing industries to the State of Illinois. It is

5 the intent of the General Assembly to further this policy by

6 the provisions of this Act.

7 (b) There is hereby created non-appropriated trust ~~a~~

8 ~~special~~ fund ~~in the State Treasury~~to be known as the Illinois

9 Racing Quarter Horse Breeders Fund, which is held separately

10 from State moneys. Except as provided in subsection (g) of

11 Section 27 of this Act, 8.5% of all the moneys received by the

12 State as pari-mutuel taxes on quarter horse racing shall be

13 paid into the Illinois Racing Quarter Horse Breeders Fund.The

14 Illinois Racing Quarter Horse Breeders Fund shall not be

15 subject to administrative charges or chargebacks, including,

16 but not limited to, those authorized under Section 8h of the

17 State Finance Act.

18 (c) The Illinois Racing Quarter Horse Breeders Fund shall

19 be administered by the Department of Agriculture with the

20 advice and assistance of the Advisory Board created in

21 subsection (d) of this Section.

22 (d) The Illinois Racing Quarter Horse Breeders Fund

23 Advisory Board shall consist of the Director of the Department

24 of Agriculture, who shall serve as Chairman; a member of the

25 Illinois Racing Board, designated by it; one representative of

26 the organization licensees conducting pari-mutuel quarter

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1 horse racing meetings, recommended by them; 2 representatives

2 of the Illinois Running Quarter Horse Association, recommended

3 by it; and the Superintendent of Fairs and Promotions from the

4 Department of Agriculture. Advisory Board members shall serve

5 for 2 years commencing January 1 of each odd numbered year. If

6 representatives have not been recommended by January 1 of each

7 odd numbered year, the Director of the Department of

8 Agriculture may make an appointment for the organization

9 failing to so recommend a member of the Advisory Board.

10 Advisory Board members shall receive no compensation for their

11 services as members but may be reimbursed for all actual and

12 necessary expenses and disbursements incurred in the execution

13 of their official duties.

14 (e) Moneys in ~~No moneys shall be expended from the Illinois~~

15 ~~Racing Quarter Horse Breeders Fund except as appropriated by~~

16 ~~the General Assembly. Moneys appropriated from~~ the Illinois

17 Racing Quarter Horse Breeders Fund shall be expended by the

18 Department of Agriculture, with the advice and assistance of

19 the Illinois Racing Quarter Horse Breeders Fund Advisory Board,

20 for the following purposes only:

21 (1) To provide stakes and awards to be paid to the

22 owners of the winning horses in certain races. This

23 provision is limited to Illinois conceived and foaled

24 horses.

25 (2) To provide an award to the owner or owners of an

26 Illinois conceived and foaled horse that wins a race when

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1 pari-mutuel wagering is conducted; providing the race is

2 not restricted to Illinois conceived and foaled horses.

3 (3) To provide purse money for an Illinois stallion

4 stakes program.

5 (4) To provide for purses to be distributed for the

6 running of races during the Illinois State Fair and the

7 DuQuoin State Fair exclusively for quarter horses

8 conceived and foaled in Illinois.

9 (5) To provide for purses to be distributed for the

10 running of races at Illinois county fairs exclusively for

11 quarter horses conceived and foaled in Illinois.

12 (6) To provide for purses to be distributed for running

13 races exclusively for quarter horses conceived and foaled

14 in Illinois at locations in Illinois determined by the

15 Department of Agriculture with advice and consent of the

16 Illinois Racing Quarter Horse Breeders Fund Advisory

17 Board.

18 (7) No less than 90% of all moneys appropriated from

19 the Illinois Racing Quarter Horse Breeders Fund shall be

20 expended for the purposes in items (1), (2), (3), (4), and

21 (5) of this subsection (e).

22 (8) To provide for research programs concerning the

23 health, development, and care of racing quarter horses.

24 (9) To provide for dissemination of public information

25 designed to promote the breeding of racing quarter horses

26 in Illinois.

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1 (10) To provide for expenses incurred in the

2 administration of the Illinois Racing Quarter Horse

3 Breeders Fund.

4 (f) The Department of Agriculture shall, by rule, with the

5 advice and assistance of the Illinois Racing Quarter Horse

6 Breeders Fund Advisory Board:

7 (1) Qualify stallions for Illinois breeding; such

8 stallions to stand for service within the State of

9 Illinois, at the time of a foal's conception. Such stallion

10 must not stand for service at any place outside the State

11 of Illinois during the calendar year in which the foal is

12 conceived. The Department of Agriculture may assess and

13 collect application fees for the registration of

14 Illinois-eligible stallions. All fees collected are to be

15 paid into the Illinois Racing Quarter Horse Breeders Fund.

16 (2) Provide for the registration of Illinois conceived

17 and foaled horses. No such horse shall compete in the races

18 limited to Illinois conceived and foaled horses unless it

19 is registered with the Department of Agriculture. The

20 Department of Agriculture may prescribe such forms as are

21 necessary to determine the eligibility of such horses. The

22 Department of Agriculture may assess and collect

23 application fees for the registration of Illinois-eligible

24 foals. All fees collected are to be paid into the Illinois

25 Racing Quarter Horse Breeders Fund. No person shall

26 knowingly prepare or cause preparation of an application

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1 for registration of such foals that contains false

2 information.

3 (g) The Department of Agriculture, with the advice and

4 assistance of the Illinois Racing Quarter Horse Breeders Fund

5 Advisory Board, shall provide that certain races limited to

6 Illinois conceived and foaled be stakes races and determine the

7 total amount of stakes and awards to be paid to the owners of

8 the winning horses in such races.

9 (Source: P.A. 98-463, eff. 8-16-13.)

10 (230 ILCS 5/31) (from Ch. 8, par. 37-31)

11 Sec. 31. (a) The General Assembly declares that it is the

12 policy of this State to encourage the breeding of standardbred

13 horses in this State and the ownership of such horses by

14 residents of this State in order to provide for: sufficient

15 numbers of high quality standardbred horses to participate in

16 harness racing meetings in this State, and to establish and

17 preserve the agricultural and commercial benefits of such

18 breeding and racing industries to the State of Illinois. It is

19 the intent of the General Assembly to further this policy by

20 the provisions of this Section of this Act.

21 (b) Each organization licensee conducting a harness racing

22 meeting pursuant to this Act shall provide for at least two

23 races each race program limited to Illinois conceived and

24 foaled horses. A minimum of 6 races shall be conducted each

25 week limited to Illinois conceived and foaled horses. No horses

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1 shall be permitted to start in such races unless duly

2 registered under the rules of the Department of Agriculture.

3 (b-5) Organization licensees, not including the Illinois

4 State Fair or the DuQuoin State Fair, shall provide stake races

5 and early closer races for Illinois conceived and foaled horses

6 so that purses distributed for such races shall be no less than

7 17% of total purses distributed for harness racing in that

8 calendar year in addition to any stakes payments and starting

9 fees contributed by horse owners.

10 (b-10) Each organization licensee conducting a harness

11 racing meeting pursuant to this Act shall provide an owner

12 award to be paid from the purse account equal to 25% of the

13 amount earned by Illinois conceived and foaled horses in races

14 that are not restricted to Illinois conceived and foaled

15 horses. The owner awards shall not be paid on races below the

16 $10,000 claiming class.

17 (c) Conditions of races under subsection (b) shall be

18 commensurate with past performance, quality and class of

19 Illinois conceived and foaled horses available. If, however,

20 sufficient competition cannot be had among horses of that class

21 on any day, the races may, with consent of the Board, be

22 eliminated for that day and substitute races provided.

23 (d) There is hereby created a special fund of the State

24 Treasury to be known as the Illinois Standardbred Breeders

25 Fund.

26 During the calendar year 1981, and each year thereafter,

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1 except as provided in subsection (g) of Section 27 of this Act,

2 eight and one-half per cent of all the monies received by the

3 State as privilege taxes on harness racing meetings shall be

4 paid into the Illinois Standardbred Breeders Fund.

5 (e) The Illinois Standardbred Breeders Fund shall be

6 administered by the Department of Agriculture with the

7 assistance and advice of the Advisory Board created in

8 subsection (f) of this Section.

9 (f) The Illinois Standardbred Breeders Fund Advisory Board

10 is hereby created. The Advisory Board shall consist of the

11 Director of the Department of Agriculture, who shall serve as

12 Chairman; the Superintendent of the Illinois State Fair; a

13 member of the Illinois Racing Board, designated by it; a

14 representative of the largest association of Illinois

15 standardbred owners and breeders, recommended by it; a

16 representative of a statewide association representing

17 agricultural fairs in Illinois, recommended by it, such

18 representative to be from a fair at which Illinois conceived

19 and foaled racing is conducted; a representative of the

20 organization licensees conducting harness racing meetings,

21 recommended by them; a representative of the Breeder's

22 Committee of the association representing the largest number of

23 standardbred owners, breeders, trainers, caretakers, and

24 drivers, recommended by it; and a representative of the

25 association representing the largest number of standardbred

26 owners, breeders, trainers, caretakers, and drivers,

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1 recommended by it. Advisory Board members shall serve for 2

2 years commencing January 1 of each odd numbered year. If

3 representatives of the largest association of Illinois

4 standardbred owners and breeders, a statewide association of

5 agricultural fairs in Illinois, the association representing

6 the largest number of standardbred owners, breeders, trainers,

7 caretakers, and drivers, a member of the Breeder's Committee of

8 the association representing the largest number of

9 standardbred owners, breeders, trainers, caretakers, and

10 drivers, and the organization licensees conducting harness

11 racing meetings have not been recommended by January 1 of each

12 odd numbered year, the Director of the Department of

13 Agriculture shall make an appointment for the organization

14 failing to so recommend a member of the Advisory Board.

15 Advisory Board members shall receive no compensation for their

16 services as members but shall be reimbursed for all actual and

17 necessary expenses and disbursements incurred in the execution

18 of their official duties.

19 (g) No monies shall be expended from the Illinois

20 Standardbred Breeders Fund except as appropriated by the

21 General Assembly. Monies appropriated from the Illinois

22 Standardbred Breeders Fund shall be expended by the Department

23 of Agriculture, with the assistance and advice of the Illinois

24 Standardbred Breeders Fund Advisory Board for the following

25 purposes only:

26 1. To provide purses for races limited to Illinois

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1 conceived and foaled horses at the State Fairand the

2 DuQuoin State Fair.

3 2. To provide purses for races limited to Illinois

4 conceived and foaled horses at county fairs.

5 3. To provide purse supplements for races limited to

6 Illinois conceived and foaled horses conducted by

7 associations conducting harness racing meetings.

8 4. No less than 75% of all monies in the Illinois

9 Standardbred Breeders Fund shall be expended for purses in

10 1, 2 and 3 as shown above.

11 5. In the discretion of the Department of Agriculture

12 to provide awards to harness breeders of Illinois conceived

13 and foaled horses which win races conducted by organization

14 licensees conducting harness racing meetings. A breeder is

15 the owner of a mare at the time of conception. No more than

16 10% of all monies appropriated from the Illinois

17 Standardbred Breeders Fund shall be expended for such

18 harness breeders awards. No more than 25% of the amount

19 expended for harness breeders awards shall be expended for

20 expenses incurred in the administration of such harness

21 breeders awards.

22 6. To pay for the improvement of racing facilities

23 located at the State Fair and County fairs.

24 7. To pay the expenses incurred in the administration

25 of the Illinois Standardbred Breeders Fund.

26 8. To promote the sport of harness racing, including

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1 grants up to a maximum of $7,500 per fair per year for

2 conducting pari-mutuel wagering during the advertised

3 dates of a county fair.

4 9. To pay up to $50,000 annually for the Department of

5 Agriculture to conduct drug testing at county fairs racing

6 standardbred horses.

7 10. To pay up to $100,000 annually for distribution to

8 Illinois county fairs to supplement premiums offered in

9 junior classes.

10 11. To pay up to $100,000 annually for division and

11 equal distribution to the animal sciences department of

12 each Illinois public university system engaged in equine

13 research and education on or before the effective date of

14 this amendatory Act of the 100th General Assembly for

15 equine research and education.

16 (h) (Blank) ~~Whenever the Governor finds that the amount in~~

17 ~~the Illinois Standardbred Breeders Fund is more than the total~~

18 ~~of the outstanding appropriations from such fund, the Governor~~

19 ~~shall notify the State Comptroller and the State Treasurer of~~

20 ~~such fact. The Comptroller and the State Treasurer, upon~~

21 ~~receipt of such notification, shall transfer such excess amount~~

22 ~~from the Illinois Standardbred Breeders Fund to the General~~

23 ~~Revenue Fund~~.

24 (i) A sum equal to 13% ~~12 1/2%~~ of the first prize money of

25 the gross ~~every~~purse won by an Illinois conceived and foaled

26 horse shall be paid 50%by the organization licensee conducting

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1 the horse race meeting to the breeder of such winning horse

2 from the organization licensee's account and 50% from the purse

3 account of the licensee ~~share of the money wagered~~. Such

4 payment shall not reduce any award to the owner of the horse or

5 reduce the taxes payable under this Act. Such payment shall be

6 delivered by the organization licensee at the end of each

7 quarter ~~race meeting~~.

8 (j) The Department of Agriculture shall, by rule, with the

9 assistance and advice of the Illinois Standardbred Breeders

10 Fund Advisory Board:

11 1. Qualify stallions for Illinois Standardbred

12 Breeders Fund breeding~~; such stallion shall be owned by a~~

13 ~~resident of the State of Illinois or by an Illinois~~

14 ~~corporation all of whose shareholders, directors, officers~~

15 ~~and incorporators are residents of the State of Illinois~~.

16 Such stallion shall stand for service at and within the

17 State of Illinois at the time of a foal's conception, and

18 such stallion must not stand for service at any place~~, nor~~

19 ~~may semen from such stallion be transported,~~outside the

20 State of Illinois during that calendar year in which the

21 foal is conceived ~~and that the owner of the stallion was~~

22 ~~for the 12 months prior, a resident of Illinois~~. Foals

23 conceived outside the State of Illinois from shipped semen

24 from a stallion qualified for breeders' awards under this

25 Section are not eligible to participate in the Illinois

26 conceived and foaled program.~~The articles of agreement of~~

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1 ~~any partnership, joint venture, limited partnership,~~

2 ~~syndicate, association or corporation and any bylaws and~~

3 ~~stock certificates must contain a restriction that~~

4 ~~provides that the ownership or transfer of interest by any~~

5 ~~one of the persons a party to the agreement can only be~~

6 ~~made to a person who qualifies as an Illinois resident.~~

7 2. Provide for the registration of Illinois conceived

8 and foaled horses and no such horse shall compete in the

9 races limited to Illinois conceived and foaled horses

10 unless registered with the Department of Agriculture. The

11 Department of Agriculture may prescribe such forms as may

12 be necessary to determine the eligibility of such horses.

13 No person shall knowingly prepare or cause preparation of

14 an application for registration of such foals containing

15 false information. A mare (dam) must be in the state at

16 least 180 ~~30~~days prior to foaling or remain in the State

17 at least 30 days at the time of foaling. Beginning with the

18 1996 breeding season and for foals of 1997 and thereafter,

19 a foal conceived in the State of Illinois by transported

20 fresh semen may be eligible for Illinois conceived and

21 foaled registration provided all breeding and foaling

22 requirements are met. The stallion must be qualified for

23 Illinois Standardbred Breeders Fund breeding at the time of

24 conception and the mare must be inseminated within the

25 State of Illinois. The foal must be dropped in Illinois and

26 properly registered with the Department of Agriculture in

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1 accordance with this Act.

2 3. Provide that at least a 5 day racing program shall

3 be conducted at the State Fair each year, which program

4 shall include at least the following races limited to

5 Illinois conceived and foaled horses: (a) a two year old

6 Trot and Pace, and Filly Division of each; (b) a three year

7 old Trot and Pace, and Filly Division of each; (c) an aged

8 Trot and Pace, and Mare Division of each.

9 4. Provide for the payment of nominating, sustaining

10 and starting fees for races promoting the sport of harness

11 racing and for the races to be conducted at the State Fair

12 as provided in subsection (j) 3 of this Section provided

13 that the nominating, sustaining and starting payment

14 required from an entrant shall not exceed 2% of the purse

15 of such race. All nominating, sustaining and starting

16 payments shall be held for the benefit of entrants and

17 shall be paid out as part of the respective purses for such

18 races. Nominating, sustaining and starting fees shall be

19 held in trust accounts for the purposes as set forth in

20 this Act and in accordance with Section 205-15 of the

21 Department of Agriculture Law (20 ILCS 205/205-15).

22 5. Provide for the registration with the Department of

23 Agriculture of Colt Associations or county fairs desiring

24 to sponsor races at county fairs.

25 6. Provide for the promotion of producing standardbred

26 racehorses by providing a bonus award program for owners of

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1 2-year-old horses that win multiple major stakes races that

2 are limited to Illinois conceived and foaled horses.

3 (k) The Department of Agriculture, with the advice and

4 assistance of the Illinois Standardbred Breeders Fund Advisory

5 Board, may allocate monies for purse supplements for such

6 races. In determining whether to allocate money and the amount,

7 the Department of Agriculture shall consider factors,

8 including but not limited to, the amount of money appropriated

9 for the Illinois Standardbred Breeders Fund program, the number

10 of races that may occur, and an organizational licensee's purse

11 structure. The organizational licensee shall notify the

12 Department of Agriculture of the conditions and minimum purses

13 for races limited to Illinois conceived and foaled horses to be

14 conducted by each organizational licensee conducting a harness

15 racing meeting for which purse supplements have been

16 negotiated.

17 (l) All races held at county fairs and the State Fair which

18 receive funds from the Illinois Standardbred Breeders Fund

19 shall be conducted in accordance with the rules of the United

20 States Trotting Association unless otherwise modified by the

21 Department of Agriculture.

22 (m) At all standardbred race meetings held or conducted

23 under authority of a license granted by the Board, and at all

24 standardbred races held at county fairs which are approved by

25 the Department of Agriculture or at the Illinois or DuQuoin

26 State Fairs, no one shall jog, train, warm up or drive a

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1 standardbred horse unless he or she is wearing a protective

2 safety helmet, with the chin strap fastened and in place, which

3 meets the standards and requirements as set forth in the 1984

4 Standard for Protective Headgear for Use in Harness Racing and

5 Other Equestrian Sports published by the Snell Memorial

6 Foundation, or any standards and requirements for headgear the

7 Illinois Racing Board may approve. Any other standards and

8 requirements so approved by the Board shall equal or exceed

9 those published by the Snell Memorial Foundation. Any

10 equestrian helmet bearing the Snell label shall be deemed to

11 have met those standards and requirements.

12 (Source: P.A. 99-756, eff. 8-12-16.)

13 (230 ILCS 5/32.1)

14 Sec. 32.1. Pari-mutuel tax credit; statewide racetrack

15 real estate equalization.

16 (a) In order to encourage new investment in Illinois

17 racetrack facilities and mitigate differing real estate tax

18 burdens among all racetracks, the licensees affiliated or

19 associated with each racetrack that has been awarded live

20 racing dates in the current year shall receive an immediate

21 pari-mutuel tax credit in an amount equal to the greater of (i)

22 50% of the amount of the real estate taxes paid in the prior

23 year attributable to that racetrack, or (ii) the amount by

24 which the real estate taxes paid in the prior year attributable

25 to that racetrack exceeds 60% of the average real estate taxes

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1 paid in the prior year for all racetracks awarded live horse

2 racing meets in the current year.

3 Each year, regardless of whether the organization licensee

4 conducted live racing in the year of certification, the Board

5 shall certify in writing, prior to December 31, the real estate

6 taxes paid in that year for each racetrack and the amount of

7 the pari-mutuel tax credit that each organization licensee,

8 inter-track ~~intertrack~~wagering licensee, andinter-track

9 ~~intertrack~~wagering location licensee that derives its license

10 from such racetrack is entitled in the succeeding calendar

11 year. The real estate taxes considered under this Section for

12 any racetrack shall be those taxes on the real estate parcels

13 and related facilities used to conduct a horse race meeting and

14 inter-track wagering at such racetrack under this Act. In no

15 event shall the amount of the tax credit under this Section

16 exceed the amount of pari-mutuel taxes otherwise calculated

17 under this Act. The amount of the tax credit under this Section

18 shall be retained by each licensee and shall not be subject to

19 any reallocation or further distribution under this Act. The

20 Board may promulgate emergency rules to implement this Section.

21 (b) After the end of the 7-year period beginning on January

22 1 of the calendar year immediately following the effective date

23 of this amendatory Act of the 100th General Assembly, the

24 organization licensee shall be ineligible to receive a tax

25 credit under this Section.

26 (Source: P.A. 91-40, eff. 6-25-99; revised 9-2-16.)

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1 (230 ILCS 5/34.3 new)

2 Sec. 34.3. Drug testing. The Illinois Racing Board and the

3 Department of Agriculture shall jointly establish a program for

4 the purpose of conducting drug testing of horses at county

5 fairs and shall adopt any rules necessary for enforcement of

6 the program. The rules shall include appropriate penalties for

7 violations.

8 (230 ILCS 5/36) (from Ch. 8, par. 37-36)

9 Sec. 36. (a) Whoever administers or conspires to administer

10 to any horse a hypnotic, narcotic, stimulant, depressant or any

11 chemical substance which may affect the speed of a horse at any

12 time in any race where the purse or any part of the purse is

13 made of money authorized by any Section of this Act, except

14 those chemical substances permitted by ruling of the Board,

15 internally, externally or by hypodermic method in a race or

16 prior thereto, or whoever knowingly enters a horse in any race

17 within a period of 24 hours after any hypnotic, narcotic,

18 stimulant, depressant or any other chemical substance which may

19 affect the speed of a horse at any time, except those chemical

20 substances permitted by ruling of the Board, has been

21 administered to such horse either internally or externally or

22 by hypodermic method for the purpose of increasing or retarding

23 the speed of such horse shall be guilty of a Class 4 felony.

24 The Board shall suspend or revoke such violator's license.

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1 (b) The term "hypnotic" as used in this Section includes

2 all barbituric acid preparations and derivatives.

3 (c) The term "narcotic" as used in this Section includes

4 opium and all its alkaloids, salts, preparations and

5 derivatives, cocaine and all its salts, preparations and

6 derivatives and substitutes.

7 (d) The provisions of this Section 36 and the treatment

8 authorized herein apply to horses entered in and competing in

9 race meetings as defined in Section 3.07 of this Act and to

10 horses entered in and competing at any county fair.

11 (Source: P.A. 79-1185.)

12 (230 ILCS 5/40) (from Ch. 8, par. 37-40)

13 Sec. 40. (a) The imposition of any fine or penalty provided

14 in this Act shall not preclude the Board in its rules and

15 regulations from imposing a fine or penalty for any other

16 action which, in the Board's discretion, is a detriment or

17 impediment to horse racing.

18 (b) The Director of Agriculture or his or her authorized

19 representative shall impose the following monetary penalties

20 and hold administrative hearings as required for failure to

21 submit the following applications, lists, or reports within the

22 time period, date or manner required by statute or rule or for

23 removing a foal from Illinois prior to inspection:

24 (1) late filing of a renewal application for offering

25 or standing stallion for service:

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1 (A) if an application is submitted no more than 30

2 days late, $50;

3 (B) if an application is submitted no more than 45

4 days late, $150; or

5 (C) if an application is submitted more than 45

6 days late, if filing of the application is allowed

7 under an administrative hearing, $250;

8 (2) late filing of list or report of mares bred:

9 (A) if a list or report is submitted no more than

10 30 days late, $50;

11 (B) if a list or report is submitted no more than

12 60 days late, $150; or

13 (C) if a list or report is submitted more than 60

14 days late, if filing of the list or report is allowed

15 under an administrative hearing, $250;

16 (3) filing an Illinois foaled thoroughbred mare status

17 report after the statutory deadline as provided in

18 subsection (k) of Section 30 of this Act~~December 31~~:

19 (A) if a report is submitted no more than 30 days

20 late, $50;

21 (B) if a report is submitted no more than 90 days

22 late, $150;

23 (C) if a report is submitted no more than 150 days

24 late, $250; or

25 (D) if a report is submitted more than 150 days

26 late, if filing of the report is allowed under an

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1 administrative hearing, $500;

2 (4) late filing of application for foal eligibility

3 certificate:

4 (A) if an application is submitted no more than 30

5 days late, $50;

6 (B) if an application is submitted no more than 90

7 days late, $150;

8 (C) if an application is submitted no more than 150

9 days late, $250; or

10 (D) if an application is submitted more than 150

11 days late, if filing of the application is allowed

12 under an administrative hearing, $500;

13 (5) failure to report the intent to remove a foal from

14 Illinois prior to inspection, identification and

15 certification by a Department of Agriculture investigator,

16 $50; and

17 (6) if a list or report of mares bred is incomplete,

18 $50 per mare not included on the list or report.

19 Any person upon whom monetary penalties are imposed under

20 this Section 3 times within a5-year ~~5 year~~ period shall have

21 any further monetary penalties imposed at double the amounts

22 set forth above. All monies assessed and collected for

23 violations relating to thoroughbreds shall be paid into the

24 Illinois Thoroughbred Breeders Fund. All monies assessed and

25 collected for violations relating to standardbreds shall be

26 paid into the IllinoisStandardbred Breeders Fund.

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1 (Source: P.A. 87-397; revised 9-2-16.)

2 (230 ILCS 5/54.75)

3 Sec. 54.75. Horse Racing Equity Trust Fund.

4 (a) There is created a Fund to be known as the Horse Racing

5 Equity Trust Fund, which is a non-appropriated trust fund held

6 separate and apart from State moneys. The Fund shall consist of

7 moneys paid into it by owners licensees under theIllinois

8 ~~Riverboat~~ Gambling Act for the purposes described in this

9 Section. The Fund shall be administered by the Board. Moneys in

10 the Fund shall be distributed as directed and certified by the

11 Board in accordance with the provisions of subsection (b).

12 (b) The moneys deposited into the Fund, plus any accrued

13 interest on those moneys, shall be distributed within 10 days

14 after those moneys are deposited into the Fund as follows:

15 (1) Sixty percent of all moneys distributed under this

16 subsection shall be distributed to organization licensees

17 to be distributed at their race meetings as purses.

18 Fifty-seven percent of the amount distributed under this

19 paragraph (1) shall be distributed for thoroughbred race

20 meetings and 43% shall be distributed for standardbred race

21 meetings. Within each breed, moneys shall be allocated to

22 each organization licensee's purse fund in accordance with

23 the ratio between the purses generated for that breed by

24 that licensee during the prior calendar year and the total

25 purses generated throughout the State for that breed during

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1 the prior calendar year by licensees in the current

2 calendar year.

3 (2) The remaining 40% of the moneys distributed under

4 this subsection (b) shall be distributed as follows:

5 (A) 11% shall be distributed to any person (or its

6 successors or assigns) who had operating control of a

7 racetrack that conducted live racing in 2002 at a

8 racetrack in a county with at least 230,000 inhabitants

9 that borders the Mississippi River and is a licensee in

10 the current year; and

11 (B) the remaining 89% shall be distributed pro rata

12 according to the aggregate proportion of total handle

13 from wagering on live races conducted in Illinois

14 (irrespective of where the wagers are placed) for

15 calendar years 2004 and 2005 to any person (or its

16 successors or assigns) who (i) had majority operating

17 control of a racing facility at which live racing was

18 conducted in calendar year 2002, (ii) is a licensee in

19 the current year, and (iii) is not eligible to receive

20 moneys under subparagraph (A) of this paragraph (2).

21 The moneys received by an organization licensee

22 under this paragraph (2) shall be used by each

23 organization licensee to improve, maintain, market,

24 and otherwise operate its racing facilities to conduct

25 live racing, which shall include backstretch services

26 and capital improvements related to live racing and the

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1 backstretch. Any organization licensees sharing common

2 ownership may pool the moneys received and spent at all

3 racing facilities commonly owned in order to meet these

4 requirements.

5 If any person identified in this paragraph (2) becomes

6 ineligible to receive moneys from the Fund, such amount

7 shall be redistributed among the remaining persons in

8 proportion to their percentages otherwise calculated.

9 (c) The Board shall monitor organization licensees to

10 ensure that moneys paid to organization licensees under this

11 Section are distributed by the organization licensees as

12 provided in subsection (b).

13 (Source: P.A. 95-1008, eff. 12-15-08.)

14 (230 ILCS 5/56 new)

15 Sec. 56. Electronic gaming.

16 (a) A person, firm, corporation, or limited liability

17 company having operating control of a race track may apply to

18 the Gaming Board for an electronic gaming license. An

19 electronic gaming license shall authorize its holder to conduct

20 electronic gaming on the grounds of the race track controlled

21 by the licensee's race track. Only one electronic gaming

22 license may be awarded for any race track. A holder of an

23 electronic gaming license shall be subject to the Illinois

24 Gambling Act and rules of the Illinois Gaming Board concerning

25 electronic gaming. If the person, firm, corporation, or limited

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1 liability company having operating control of a race track is

2 found by the Illinois Gaming Board to be unsuitable for an

3 electronic gaming license under the Illinois Gambling Act and

4 rules of the Gaming Board, that person, firm, corporation, or

5 limited liability company shall not be granted an electronic

6 gaming license. Each license shall specify the number of gaming

7 positions that its holder may operate.

8 An electronic gaming licensee may not permit persons under

9 21 years of age to be present in its electronic gaming

10 facility, but the licensee may accept wagers on live racing and

11 inter-track wagers at its electronic gaming facility.

12 (b) For purposes of this subsection, "adjusted gross

13 receipts" means an electronic gaming licensee's gross receipts

14 less winnings paid to wagerers and shall also include any

15 amounts that would otherwise be deducted pursuant to subsection

16 (a-9) of Section 13 of the Illinois Gambling Act. The adjusted

17 gross receipts by an electronic gaming licensee from electronic

18 gaming remaining after the payment of taxes under Section 13 of

19 the Illinois Gambling Act shall be distributed as follows:

20 (1) Amounts shall be paid to the purse account at the

21 track at which the organization licensee is conducting

22 racing equal to the following:

23 12.75% of annual adjusted gross receipts up to and

24 including $75,000,000;

25 20% of annual adjusted gross receipts in excess of

26 $75,000,000 but not exceeding $100,000,000;

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1 26.5% of annual adjusted gross receipts in excess

2 of $100,000,000 but not exceeding $125,000,000; and

3 20.5% of annual adjusted gross receipts in excess

4 of $125,000,000.

5 (2) The remainder shall be retained by the electronic

6 gaming licensee.

7 (c) Electronic gaming receipts placed into the purse

8 account of an organization licensee racing thoroughbred horses

9 shall be used for purses, for health care services or worker's

10 compensation for racing industry workers, for equine research,

11 for programs to care for and transition injured and retired

12 thoroughbred horses that race at the race track, or for horse

13 ownership promotion, in accordance with the agreement of the

14 horsemen's association representing the largest number of

15 owners and trainers who race at that organization licensee's

16 race meetings.

17 Annually, from the purse account of an organization

18 licensee racing thoroughbred horses in this State, except for

19 in Madison County, an amount equal to 12% of the electronic

20 gaming receipts placed into the purse accounts shall be paid to

21 the Illinois Thoroughbred Breeders Fund and shall be used for

22 owner awards; a stallion program pursuant to paragraph (3) of

23 subsection (g) of Section 30 of this Act; and Illinois

24 conceived and foaled stakes races pursuant to paragraph (2) of

25 subsection (g) of Section 30 of this Act, as specifically

26 designated by the horsemen's association representing the

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1 largest number of owners and trainers who race at the

2 organization licensee's race meetings.

3 Annually, from the purse account of an organization

4 licensee racing thoroughbred horses in Madison County, an

5 amount equal to 10% of the electronic gaming receipts placed

6 into the purse accounts shall be paid to the Illinois

7 Thoroughbred Breeders Fund and shall be used for owner awards;

8 a stallion program pursuant to paragraph (3) of subsection (g)

9 of Section 30 of this Act; and Illinois conceived and foaled

10 stakes races pursuant to paragraph (2) of subsection (g) of

11 Section 30 of this Act, as specifically designated by the

12 horsemen's association representing the largest number of

13 owners and trainers who race at the organization licensee's

14 race meetings.

15 Annually, from the purse account of an organization

16 licensee conducting thoroughbred races at a race track in

17 Madison County, an amount equal to 1% of the electronic gaming

18 receipts distributed to purses per subsection (b) of this

19 Section 56 shall be paid as follows: 0.33 1/3% to Southern

20 Illinois University Department of Animal Sciences for equine

21 research and education, an amount equal to 0.33 1/3% of the

22 electronic gaming receipts shall be used to operate laundry

23 facilities or a kitchen for backstretch workers at that race

24 track, and an amount equal to 0.33 1/3% of the electronic

25 gaming receipts shall be paid to R.A.C.E., Inc., a 501(c)(3)

26 non-profit organization that cares for injured and unwanted

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1 horses that race at that race track.

2 Annually, from the purse account of organization licensees

3 conducting thoroughbred races at race tracks in Cook County,

4 $100,000 shall be paid for division and equal distribution to

5 the animal sciences department of each Illinois public

6 university system engaged in equine research and education on

7 or before the effective date of this amendatory Act of the

8 100th General Assembly for equine research and education.

9 (d) Annually, from the purse account of an organization

10 licensee racing standardbred horses, an amount equal to 15% of

11 the electronic gaming receipts placed into that purse account

12 shall be paid to the Illinois Colt Stakes Purse Distribution

13 Fund. Moneys deposited into the Illinois Colt Stakes Purse

14 Distribution Fund shall be used for standardbred racing as

15 authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of

16 subsection (g) of Section 31 of this Act and for bonus awards

17 as authorized under paragraph 6 of subsection (j) of Section 31

18 of this Act.

19 Section 90-40. The Riverboat Gambling Act is amended by

20 changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,

21 11.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,

22 and 24 and by adding Sections 5.3, 7.7, 7.8, 7.9, 7.10, 7.11,

23 7.12, and 7.13 as follows:

24 (230 ILCS 10/1) (from Ch. 120, par. 2401)

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1 Sec. 1. Short title. This Act shall be known and may be

2 cited as theIllinois ~~Riverboat~~ Gambling Act.

3 (Source: P.A. 86-1029.)

4 (230 ILCS 10/2) (from Ch. 120, par. 2402)

5 Sec. 2. Legislative Intent.

6 (a) This Act is intended to benefit the people of the State

7 of Illinois by assisting economic development, ~~and~~ promoting

8 Illinois tourism,and~~by~~ increasing the amount of revenues

9 available to the State to assist and support education, and to

10 defray State expenses, including unpaid bills.

11 (b) While authorization of riverboat and casino gambling

12 will enhance investment,beautification, development and

13 tourism in Illinois, it is recognized that it will do so

14 successfully only if public confidence and trust in the

15 credibility and integrity of the gambling operations and the

16 regulatory process is maintained. Therefore, regulatory

17 provisions of this Act are designed to strictly regulate the

18 facilities, persons, associations and practices related to

19 gambling operations pursuant to the police powers of the State,

20 including comprehensive law enforcement supervision.

21 (c) The Illinois Gaming Board established under this Act

22 should, as soon as possible, inform each applicant for an

23 owners license of the Board's intent to grant or deny a

24 license.

25 (Source: P.A. 93-28, eff. 6-20-03.)

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1 (230 ILCS 10/3) (from Ch. 120, par. 2403)

2 Sec. 3. ~~Riverboat~~ Gambling Authorized.

3 (a) Riverboat and casinogambling operationsand

4 electronic gaming operations ~~and the system of wagering~~

5 ~~incorporated therein~~, as defined in this Act, are hereby

6 authorized to the extent that they are carried out in

7 accordance with the provisions of this Act.

8 (b) This Act does not apply to the pari-mutuel system of

9 wagering used or intended to be used in connection with the

10 horse-race meetings as authorized under the Illinois Horse

11 Racing Act of 1975, lottery games authorized under the Illinois

12 Lottery Law, bingo authorized under the Bingo License and Tax

13 Act, charitable games authorized under the Charitable Games Act

14 or pull tabs and jar games conducted under the Illinois Pull

15 Tabs and Jar Games Act.This Act applies to electronic gaming

16 authorized under the Illinois Horse Racing Act of 1975 to the

17 extent provided in that Act and in this Act.

18 (c) Riverboat gambling conducted pursuant to this Act may

19 be authorized upon any water within the State of Illinois or

20 any water other than Lake Michigan which constitutes a boundary

21 of the State of Illinois.Notwithstanding any provision in this

22 subsection (c) to the contrary, a licensee that receives its

23 license pursuant to subsection (e-5) of Section 7 may conduct

24 riverboat gambling on Lake Michigan from a home dock located on

25 Lake Michigan subject to any limitations contained in Section

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1 7. Notwithstanding any provision in this subsection (c) to the

2 contrary, a licensee may conduct gambling at its home dock

3 facility as provided in Sections 7 and 11. A licensee may

4 conduct riverboat gambling authorized under this Act

5 regardless of whether it conducts excursion cruises. A licensee

6 may permit the continuous ingress and egress of passengers for

7 the purpose of gambling.

8 (d) Gambling that is conducted in accordance with this Act

9 using slot machines and video games of chance and other

10 electronic gambling games as defined in both this Act and the

11 Illinois Horse Racing Act of 1975 is authorized.

12 (Source: P.A. 91-40, eff. 6-25-99.)

13 (230 ILCS 10/4) (from Ch. 120, par. 2404)

14 Sec. 4. Definitions. As used in this Act:

15 ~~(a)~~ "Board" means the Illinois Gaming Board.

16 ~~(b)~~ "Occupational license" means a license issued by the

17 Board to a person or entity to perform an occupation which the

18 Board has identified as requiring a license to engage in

19 riverboat gambling, casino gambling, or electronic gaming in

20 Illinois.

21 ~~(c)~~ "Gambling game" includes, but is not limited to,

22 baccarat, twenty-one, poker, craps, slot machine, video game of

23 chance, roulette wheel, klondike table, punchboard, faro

24 layout, keno layout, numbers ticket, push card, jar ticket, or

25 pull tab which is authorized by the Board as a wagering device

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1 under this Act.

2 ~~(d)~~"Riverboat" means a self-propelled excursion boat, a

3 permanently moored barge, or permanently moored barges that are

4 permanently fixed together to operate as one vessel, on which

5 lawful gambling is authorized and licensed as provided in this

6 Act.

7 "Slot machine" means any mechanical, electrical, or other

8 device, contrivance, or machine that is authorized by the Board

9 as a wagering device under this Act which, upon insertion of a

10 coin, currency, token, or similar object therein, or upon

11 payment of any consideration whatsoever, is available to play

12 or operate, the play or operation of which may deliver or

13 entitle the person playing or operating the machine to receive

14 cash, premiums, merchandise, tokens, or anything of value

15 whatsoever, whether the payoff is made automatically from the

16 machine or in any other manner whatsoever. A slot machine:

17 (1) may utilize spinning reels or video displays or

18 both;

19 (2) may or may not dispense coins, tickets, or tokens

20 to winning patrons;

21 (3) may use an electronic credit system for receiving

22 wagers and making payouts; and

23 (4) may simulate a table game.

24 "Slot machine" does not include table games authorized by

25 the Board as a wagering device under this Act.

26 ~~(e)~~ "Managers license" means a license issued by the Board

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1 to a person or entity to manage gambling operations conducted

2 by the State pursuant to Section 7.3.

3 ~~(f)~~ "Dock" means the location where a riverboat moors for

4 the purpose of embarking passengers for and disembarking

5 passengers from the riverboat.

6 ~~(g)~~ "Gross receipts" means the total amount of money

7 exchanged for the purchase of chips, tokens, or electronic

8 cards by riverboat patrons.

9 ~~(h)~~"Adjusted gross receipts" means the gross receipts less

10 winnings paid to wagerers.

11 ~~(i)~~ "Cheat" means to alter the selection of criteria which

12 determine the result of a gambling game or the amount or

13 frequency of payment in a gambling game.

14 ~~(j) (Blank).~~

15 ~~(k)~~ "Gambling operation" means the conduct of ~~authorized~~

16 gambling games authorized under this Actupon a riverboator in

17 a casino or authorized under this Act and the Illinois Horse

18 Racing Act of 1975 at an electronic gaming facility.

19 ~~(l)~~ "License bid" means the lump sum amount of money that

20 an applicant bids and agrees to pay the State in return for an

21 owners license that is issued orre-issued on or after July 1,

22 2003.

23 "Table game" means a live gaming apparatus upon which

24 gaming is conducted or that determines an outcome that is the

25 object of a wager, including, but not limited to, baccarat,

26 twenty-one, blackjack, poker, craps, roulette wheel, klondike

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1 table, punchboard, faro layout, keno layout, numbers ticket,

2 push card, jar ticket, pull tab, or other similar games that

3 are authorized by the Board as a wagering device under this

4 Act. "Table game" does not include slot machines or video games

5 of chance.

6 ~~(m)~~ The terms "minority person", "female", and "person with

7 a disability" shall have the same meaning as defined in Section

8 2 of the Business Enterprise for Minorities, Females, and

9 Persons with Disabilities Act.

10 "Authority" means the Chicago Casino Development

11 Authority.

12 "Casino" means a facility at which lawful gambling is

13 authorized as provided in this Act.

14 "Owners license" means a license to conduct riverboat or

15 casino gambling operations, but does not include an electronic

16 gaming license.

17 "Licensed owner" means a person who holds an owners

18 license.

19 "Electronic gaming" means slot machine gambling, video

20 game of chance gambling, or gambling with electronic gambling

21 games as defined in this Act or defined by the Board that is

22 conducted at a race track pursuant to an electronic gaming

23 license.

24 "Electronic gaming facility" means the area where the Board

25 has authorized electronic gaming at a race track of an

26 organization licensee under the Illinois Horse Racing Act of

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1 1975 that holds an electronic gaming license.

2 "Electronic gaming license" means a license issued by the

3 Board under Section 7.7 of this Act authorizing electronic

4 gaming at an electronic gaming facility.

5 "Electronic gaming licensee" means an entity that holds an

6 electronic gaming license.

7 "Organization licensee" means an entity authorized by the

8 Illinois Racing Board to conduct pari-mutuel wagering in

9 accordance with the Illinois Horse Racing Act of 1975. With

10 respect only to electronic gaming, "organization licensee"

11 includes the authorization for electronic gaming created under

12 subsection (a) of Section 56 of the Illinois Horse Racing Act

13 of 1975.

14 "Casino operator license" means the license held by the

15 person or entity selected by the Authority to manage and

16 operate a riverboat or casino within the geographic area of the

17 authorized municipality pursuant to this Act and the Chicago

18 Casino Development Authority Act.

19 (Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)

20 (230 ILCS 10/5) (from Ch. 120, par. 2405)

21 Sec. 5. Gaming Board.

22 (a) (1) There is hereby established the Illinois Gaming

23 Board, which shall have the powers and duties specified in this

24 Act and in the Chicago Casino Development Authority Act, and

25 all other powers necessary and proper to fully and effectively

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1 execute this Act for the purpose of administering, regulating,

2 and enforcing the system of riverboat and casino gambling and

3 electronic gaming established by this Act and by the Chicago

4 Casino Development Authority Act. Its jurisdiction shall

5 extend under this Act and the Chicago Casino Development

6 Authority Actto every person, association, corporation,

7 partnership and trust involved in riverboat and casinogambling

8 operations and electronic gaming in the State of Illinois.

9 (2) The Board shall consist of 5 members to be appointed by

10 the Governor with the advice and consent of the Senate, one of

11 whom shall be designated by the Governor to bechairperson

12 ~~chairman~~. Each member shall have a reasonable knowledge of the

13 practice, procedure and principles of gambling operations.

14 Each member shall either be a resident of Illinois or shall

15 certify that he or shewill become a resident of Illinois

16 before taking office.

17 On and after the effective date of this amendatory Act of

18 the 100th General Assembly, new appointees to the Board must

19 include the following:

20 (A) One member who has received, at a minimum, a

21 bachelor's degree from an accredited school and at least 10

22 years of verifiable training and experience in the fields

23 of investigation and law enforcement.

24 (B) One member who is a certified public accountant

25 with experience in auditing and with knowledge of complex

26 corporate structures and transactions.

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1 (C) One member who has 5 years' experience as a

2 principal, senior officer, or director of a company or

3 business with either material responsibility for the daily

4 operations and management of the overall company or

5 business or material responsibility for the policy making

6 of the company or business.

7 (D) One member who is a lawyer licensed to practice law

8 in Illinois.

9 Notwithstanding any provision of this subsection (a), the

10 requirements of subparagraphs (A) through (D) of this paragraph

11 (2) shall not apply to any person reappointed pursuant to

12 paragraph (3).

13 No more than 3 members of the Board may be from the same

14 political party. The Board should reflect the ethnic, cultural,

15 and geographic diversity of the State. No Board member shall,

16 within a period of one year immediately preceding nomination,

17 have been employed or received compensation or fees for

18 services from a person or entity, or its parent or affiliate,

19 that has engaged in business with the Board, a licensee, or a

20 licensee under the Illinois Horse Racing Act of 1975. Board

21 members must publicly disclose all prior affiliations with

22 gaming interests, including any compensation, fees, bonuses,

23 salaries, and other reimbursement received from a person or

24 entity, or its parent or affiliate, that has engaged in

25 business with the Board, a licensee, or a licensee under the

26 Illinois Horse Racing Act of 1975. This disclosure must be made

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1 within 30 days after nomination but prior to confirmation by

2 the Senate and must be made available to the members of the

3 Senate. ~~At least one member shall be experienced in law~~

4 ~~enforcement and criminal investigation, at least one member~~

5 ~~shall be a certified public accountant experienced in~~

6 ~~accounting and auditing, and at least one member shall be a~~

7 ~~lawyer licensed to practice law in Illinois.~~

8 (3) The terms of office of the Board members shall be 3

9 years, except that the terms of office of the initial Board

10 members appointed pursuant to this Act will commence from the

11 effective date of this Act and run as follows: one for a term

12 ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for

13 a term ending July 1, 1993. Upon the expiration of the

14 foregoing terms, the successors of such members shall serve a

15 term for 3 years and until their successors are appointed and

16 qualified for like terms. Vacancies in the Board shall be

17 filled for the unexpired term in like manner as original

18 appointments. Each member of the Board shall be eligible for

19 reappointment at the discretion of the Governor with the advice

20 and consent of the Senate.

21 (4) Each member of the Board shall receive $300 for each

22 day the Board meets and for each day the member conducts any

23 hearing pursuant to this Act. Each member of the Board shall

24 also be reimbursed for all actual and necessary expenses and

25 disbursements incurred in the execution of official duties.

26 (5) No person shall be appointed a member of the Board or

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1 continue to be a member of the Board who is, or whose spouse,

2 child or parent is, a member of the board of directors of, or a

3 person financially interested in, any gambling operation

4 subject to the jurisdiction of this Board, or any race track,

5 race meeting, racing association or the operations thereof

6 subject to the jurisdiction of the Illinois Racing Board. No

7 Board member shall hold any other public office. No person

8 shall be a member of the Board who is not of good moral

9 character or who has been convicted of, or is under indictment

10 for, a felony under the laws of Illinois or any other state, or

11 the United States.

12 (5.5) No member of the Board shall engage in any political

13 activity. For the purposes of this Section, "political" means

14 any activity in support of or in connection with any campaign

15 for federal, State, or local elective office or any political

16 organization, but does not include activities (i) relating to

17 the support or opposition of any executive, legislative, or

18 administrative action (as those terms are defined in Section 2

19 of the Lobbyist Registration Act), (ii) relating to collective

20 bargaining, or (iii) that are otherwise in furtherance of the

21 person's official State duties or governmental and public

22 service functions.

23 (6) Any member of the Board may be removed by the Governor

24 for neglect of duty, misfeasance, malfeasance, or nonfeasance

25 in office or for engaging in any political activity.

26 (7) Before entering upon the discharge of the duties of his

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1 office, each member of the Board shall take an oath that he

2 will faithfully execute the duties of his office according to

3 the laws of the State and the rules and regulations adopted

4 therewith and shall give bond to the State of Illinois,

5 approved by the Governor, in the sum of $25,000. Every such

6 bond, when duly executed and approved, shall be recorded in the

7 office of the Secretary of State. Whenever the Governor

8 determines that the bond of any member of the Board has become

9 or is likely to become invalid or insufficient, he shall

10 require such member forthwith to renew his bond, which is to be

11 approved by the Governor. Any member of the Board who fails to

12 take oath and give bond within 30 days from the date of his

13 appointment, or who fails to renew his bond within 30 days

14 after it is demanded by the Governor, shall be guilty of

15 neglect of duty and may be removed by the Governor. The cost of

16 any bond given by any member of the Board under this Section

17 shall be taken to be a part of the necessary expenses of the

18 Board.

19 (7.5) For the examination of all mechanical,

20 electromechanical, or electronic table games, slot machines,

21 slot accounting systems, and other electronic gaming equipment

22 for compliance with this Act, the Board may utilize the

23 services of one or more independent outside testing

24 laboratories that have been accredited by a national

25 accreditation body and that, in the judgment of the Board, are

26 qualified to perform such examinations.

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1 (8) The Board shall employ such personnel as may be

2 necessary to carry out its functions and shall determine the

3 salaries of all personnel, except those personnel whose

4 salaries are determined under the terms of a collective

5 bargaining agreement. No person shall be employed to serve the

6 Board who is, or whose spouse, parent or child is, an official

7 of, or has a financial interest in or financial relation with,

8 any operator engaged in gambling operations within this State

9 or any organization engaged in conducting horse racing within

10 this State.For the one year immediately preceding employment,

11 an employee shall not have been employed or received

12 compensation or fees for services from a person or entity, or

13 its parent or affiliate, that has engaged in business with the

14 Board, a licensee, or a licensee under the Illinois Horse

15 Racing Act of 1975. Any employee violating these prohibitions

16 shall be subject to termination of employment.In addition, all

17 Board members and employees are subject to the restrictions set

18 forth in Section 5-45 of the State Officials and Employees

19 Ethics Act.

20 (9) An Administrator shall perform any and all duties that

21 the Board shall assign him. The salary of the Administrator

22 shall be determined by the Board and, in addition, he shall be

23 reimbursed for all actual and necessary expenses incurred by

24 him in discharge of his official duties. The Administrator

25 shall keep records of all proceedings of the Board and shall

26 preserve all records, books, documents and other papers

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1 belonging to the Board or entrusted to its care. The

2 Administrator shall devote his full time to the duties of the

3 office and shall not hold any other office or employment.

4 (b) The Board shall have general responsibility for the

5 implementation of this Act. Its duties include, without

6 limitation, the following:

7 (1) To decide promptly and in reasonable order all

8 license applications. Any party aggrieved by an action of

9 the Board denying, suspending, revoking, restricting or

10 refusing to renew a license may request a hearing before

11 the Board. A request for a hearing must be made to the

12 Board in writing within 5 days after service of notice of

13 the action of the Board. Notice of the action of the Board

14 shall be served either by personal delivery or by certified

15 mail, postage prepaid, to the aggrieved party. Notice

16 served by certified mail shall be deemed complete on the

17 business day following the date of such mailing. The Board

18 shall conduct all requested hearings promptly and in

19 reasonable order;

20 (2) To conduct all hearings pertaining to civil

21 violations of this Act or rules and regulations promulgated

22 hereunder;

23 (3) To promulgate such rules and regulations as in its

24 judgment may be necessary to protect or enhance the

25 credibility and integrity of gambling operations

26 authorized by this Act and the regulatory process

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1 hereunder;

2 (4) To provide for the establishment and collection of

3 all license and registration fees and taxes imposed by this

4 Act and the rules and regulations issued pursuant hereto.

5 All such fees and taxes shall be deposited into the State

6 Gaming Fund;

7 (5) To provide for the levy and collection of penalties

8 and fines for the violation of provisions of this Act and

9 the rules and regulations promulgated hereunder. All such

10 fines and penalties shall be deposited into the Education

11 Assistance Fund, created by Public Act 86-0018, of the

12 State of Illinois;

13 (6) To be present through its inspectors and agents any

14 time gambling operations are conducted on any riverboat, in

15 any casino, or at any electronic gaming facility for the

16 purpose of certifying the revenue thereof, receiving

17 complaints from the public, and conducting such other

18 investigations into the conduct of the gambling games and

19 the maintenance of the equipment as from time to time the

20 Board may deem necessary and proper;

21 (7) To review and rule upon any complaint by a licensee

22 regarding any investigative procedures of the State which

23 are unnecessarily disruptive of gambling operations. The

24 need to inspect and investigate shall be presumed at all

25 times. The disruption of a licensee's operations shall be

26 proved by clear and convincing evidence, and establish

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1 that: (A) the procedures had no reasonable law enforcement

2 purposes, and (B) the procedures were so disruptive as to

3 unreasonably inhibit gambling operations;

4 (8) To hold at least one meeting each quarter of the

5 fiscal year. In addition, special meetings may be called by

6 the Chairman or any 2 Board members upon 72 hours written

7 notice to each member. All Board meetings shall be subject

8 to the Open Meetings Act. Three members of the Board shall

9 constitute a quorum, and 3 votes shall be required for any

10 final determination by the Board. The Board shall keep a

11 complete and accurate record of all its meetings. A

12 majority of the members of the Board shall constitute a

13 quorum for the transaction of any business, for the

14 performance of any duty, or for the exercise of any power

15 which this Act requires the Board members to transact,

16 perform or exercise en banc, except that, upon order of the

17 Board, one of the Board members or an administrative law

18 judge designated by the Board may conduct any hearing

19 provided for under this Act or by Board rule and may

20 recommend findings and decisions to the Board. The Board

21 member or administrative law judge conducting such hearing

22 shall have all powers and rights granted to the Board in

23 this Act. The record made at the time of the hearing shall

24 be reviewed by the Board, or a majority thereof, and the

25 findings and decision of the majority of the Board shall

26 constitute the order of the Board in such case;

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1 (9) To maintain records which are separate and distinct

2 from the records of any other State board or commission.

3 Such records shall be available for public inspection and

4 shall accurately reflect all Board proceedings;

5 (10) To file a written annual report with the Governor

6 on or before March 1 each year and such additional reports

7 as the Governor may request. The annual report shall

8 include a statement of receipts and disbursements by the

9 Board, actions taken by the Board, and any additional

10 information and recommendations which the Board may deem

11 valuable or which the Governor may request;

12 (11) (Blank);

13 (12) (Blank);

14 (13) To assume responsibility for administration and

15 enforcement of the Video Gaming Act;~~and~~

16 (13.1) To assume responsibility for the administration

17 and enforcement of operations at electronic gaming

18 facilities pursuant to this Act and the Illinois Horse

19 Racing Act of 1975;

20 (13.2) To assume responsibility for the administration

21 and enforcement of gambling operations at the Chicago

22 Casino Development Authority's casino pursuant to this Act

23 and the Chicago Casino Development Authority Act; and

24 (14) To adopt, by rule, a code of conduct governing

25 Board members and employees that ensure, to the maximum

26 extent possible, that persons subject to this Code avoid

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1 situations, relationships, or associations that may

2 represent or lead to a conflict of interest.

3 Internal controls and changes submitted by licensees must

4 be reviewed and either approved or denied with cause within 90

5 days after receipt of submission is deemed final by the

6 Illinois Gaming Board. In the event an internal control

7 submission or change does not meet the standards set by the

8 Board, staff of the Board must provide technical assistance to

9 the licensee to rectify such deficiencies within 90 days after

10 the initial submission and the revised submission must be

11 reviewed and approved or denied with cause within 90 days after

12 the date the revised submission is deemed final by the Board.

13 For the purposes of this paragraph, "with cause" means that the

14 approval of the submission would jeopardize the integrity of

15 gaming. In the event the Board staff has not acted within the

16 timeframe, the submission shall be deemed approved.

17 (c) The Board shall have jurisdiction over and shall

18 supervise all gambling operations governed by this Actand the

19 Chicago Casino Development Authority Act. The Board shall have

20 all powers necessary and proper to fully and effectively

21 execute the provisions of this Actand the Chicago Casino

22 Development Authority Act, including, but not limited to, the

23 following:

24 (1) To investigate applicants and determine the

25 eligibility of applicants for licenses and to select among

26 competing applicants the applicants which best serve the

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1 interests of the citizens of Illinois.

2 (2) To have jurisdiction and supervision over all

3 ~~riverboat~~gambling operationsauthorized under this Act

4 and the Chicago Casino Development Authority Act ~~in this~~

5 ~~State~~ and all persons in places ~~on riverboats~~ where

6 gambling operations are conducted.

7 (3) To promulgate rules and regulations for the purpose

8 of administering the provisions of this Actand the Chicago

9 Casino Development Authority Act and to prescribe rules,

10 regulations and conditions under which all~~riverboat~~

11 gambling operations subject to this Act and the Chicago

12 Casino Development Authority Act ~~in the State~~shall be

13 conducted. Such rules and regulations are to provide for

14 the prevention of practices detrimental to the public

15 interest and for the best interests of~~riverboat~~ gambling,

16 including rules and regulations regarding the inspection

17 of electronic gaming facilities, casinos, and ~~such~~

18 riverboats,and the review of any permits or licenses

19 necessary to operate a riverboat, casino, or electronic

20 gaming facilitiesunder any laws or regulations applicable

21 to riverboats, casinos, or electronic gaming facilities

22 and to impose penalties for violations thereof.

23 (4) To enter the office, riverboats, casinos,

24 electronic gaming facilities, and other facilities, or

25 other places of business of a licensee, where evidence of

26 the compliance or noncompliance with the provisions of this

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1 Act and the Chicago Casino Development Authority Act is

2 likely to be found.

3 (5) To investigate alleged violations of this Act, the

4 Chicago Casino Development Authority Act,or the rules of

5 the Board and to take appropriate disciplinary action

6 against a licensee or a holder of an occupational license

7 for a violation, or institute appropriate legal action for

8 enforcement, or both.

9 (6) To adopt standards for the licensing of all persons

10 and entities under this Act and the Chicago Casino

11 Development Authority Act, as well as for electronic or

12 mechanical gambling games, and to establish fees for such

13 licenses.

14 (7) To adopt appropriate standards for all electronic

15 gaming facilities, riverboats, casinos,andother

16 facilities authorized under this Act and the Chicago Casino

17 Development Authority Act.

18 (8) To require that the records, including financial or

19 other statements of any licensee under this Actand the

20 Chicago Casino Development Authority Act, shall be kept in

21 such manner as prescribed by the Board and that any such

22 licensee involved in the ownership or management of

23 gambling operations submit to the Board an annual balance

24 sheet and profit and loss statement, list of the

25 stockholders or other persons having a 1% or greater

26 beneficial interest in the gambling activities of each

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1 licensee, and any other information the Board deems

2 necessary in order to effectively administer this Act and

3 the Chicago Casino Development Authority Actand all rules,

4 regulations, orders and final decisions promulgated under

5 this Act and the Chicago Casino Development Authority Act.

6 (9) To conduct hearings, issue subpoenas for the

7 attendance of witnesses and subpoenas duces tecum for the

8 production of books, records and other pertinent documents

9 in accordance with the Illinois Administrative Procedure

10 Act, and to administer oaths and affirmations to the

11 witnesses, when, in the judgment of the Board, it is

12 necessary to administer or enforce this Act, the Chicago

13 Casino Development Authority Act, or the Board rules.

14 (10) To prescribe a form to be used by any licensee

15 involved in the ownership or management of gambling

16 operations as an application for employment for their

17 employees.

18 (11) To revoke or suspend licenses, other than the

19 license issued to the Chicago Casino Development

20 Authority,as the Board may see fit and in compliance with

21 applicable laws of the State regarding administrative

22 procedures, and to review applications for the renewal of

23 licenses. The Board may suspend an owners license(other

24 than the license issued to the Chicago Casino Development

25 Authority), electronic gaming license, or casino operator

26 license, without notice or hearing upon a determination

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1 that the safety or health of patrons or employees is

2 jeopardized by continuing a gambling operation conducted

3 under that license ~~riverboat's operation~~. The suspension

4 may remain in effect until the Board determines that the

5 cause for suspension has been abated. The Board may revoke

6 an ~~the~~ owners license (other than the license issued to the

7 Chicago Casino Development Authority), electronic gaming

8 license, or casino operator licenseupon a determination

9 that the licensee ~~owner~~ has not made satisfactory progress

10 toward abating the hazard.

11 (12) To eject or exclude or authorize the ejection or

12 exclusion of, any person from~~riverboat~~ gambling

13 facilities where that ~~such~~person is in violation of this

14 Act or the Chicago Casino Development Authority Act, rules

15 and regulations thereunder, or final orders of the Board,

16 or where such person's conduct or reputation is such that

17 his or herpresence within the~~riverboat~~ gambling

18 facilities may, in the opinion of the Board, call into

19 question the honesty and integrity of the gambling

20 operations or interfere with the orderly conduct thereof;

21 provided that the propriety of such ejection or exclusion

22 is subject to subsequent hearing by the Board.

23 (13) To require all licensees of gambling operations to

24 utilize a cashless wagering system whereby all players'

25 money is converted to tokens, electronic cards, or chips

26 which shall be used only for wagering in the gambling

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1 establishment.

2 (14) (Blank).

3 (15) To suspend, revoke or restrict licenses, other

4 than the license issued to the Chicago Casino Development

5 Authority,to require the removal of a licensee or an

6 employee of a licensee for a violation of this Act, the

7 Chicago Casino Development Authority Act, or a Board rule

8 or for engaging in a fraudulent practice, and to impose

9 civil penalties of up to $5,000 against individuals and up

10 to $10,000 or an amount equal to the daily gross receipts,

11 whichever is larger, against licensees for each violation

12 of any provision of the Act, the Chicago Casino Development

13 Authority Act,any rules adopted by the Board, any order of

14 the Board or any other action which, in the Board's

15 discretion, is a detriment or impediment to ~~riverboat~~

16 gambling operations.

17 (16) To hire employees to gather information, conduct

18 investigations and carry out any other tasks contemplated

19 under this Act or the Chicago Casino Development Authority

20 Act.

21 (17) To establish minimum levels of insurance to be

22 maintained by licensees.

23 (18) To authorize a licensee to sell or serve alcoholic

24 liquors, wine or beer as defined in the Liquor Control Act

25 of 1934 on board a riverboat or in a casinoand to have

26 exclusive authority to establish the hours for sale and

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1 consumption of alcoholic liquor on board a riverboat or in

2 a casino, notwithstanding any provision of the Liquor

3 Control Act of 1934 or any local ordinance, and regardless

4 of whether the riverboat makes excursions. The

5 establishment of the hours for sale and consumption of

6 alcoholic liquor on board a riverboator in a casino is an

7 exclusive power and function of the State. A home rule unit

8 may not establish the hours for sale and consumption of

9 alcoholic liquor on board a riverboator in a casino. This

10 subdivision (18) ~~amendatory Act of 1991~~is a denial and

11 limitation of home rule powers and functions under

12 subsection (h) of Section 6 of Article VII of the Illinois

13 Constitution.

14 (19) After consultation with the U.S. Army Corps of

15 Engineers, to establish binding emergency orders upon the

16 concurrence of a majority of the members of the Board

17 regarding the navigability of water, relative to

18 excursions, in the event of extreme weather conditions,

19 acts of God or other extreme circumstances.

20 (20) To delegate the execution of any of its powers

21 under this Act or the Chicago Casino Development Authority

22 Actfor the purpose of administering and enforcing this

23 Act, the Chicago Casino Development Authority Act, and the

24 ~~its~~ rules adopted by the Board under both Acts ~~and~~

25 ~~regulations hereunder~~.

26 (20.5) To approve any contract entered into on its

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1 behalf.

2 (20.6) To appoint investigators to conduct

3 investigations, searches, seizures, arrests, and other

4 duties imposed under this Act, as deemed necessary by the

5 Board. These investigators have and may exercise all of the

6 rights and powers of peace officers, provided that these

7 powers shall be limited to offenses or violations occurring

8 or committed in a casino, in an electronic gaming facility,

9 or on a riverboat or dock, as defined in subsections (d)

10 and (f) of Section 4, or as otherwise provided by this Act,

11 the Chicago Casino Development Authority Act, or any other

12 law.

13 (20.7) To contract with the Department of State Police

14 for the use of trained and qualified State police officers

15 and with the Department of Revenue for the use of trained

16 and qualified Department of Revenue investigators to

17 conduct investigations, searches, seizures, arrests, and

18 other duties imposed under this Act or the Chicago Casino

19 Development Authority Act and to exercise all of the rights

20 and powers of peace officers, provided that the powers of

21 Department of Revenue investigators under this subdivision

22 (20.7) shall be limited to offenses or violations occurring

23 or committed in a casino, in an electronic gaming facility,

24 or on a riverboat or dock, as defined in subsections (d)

25 and (f) of Section 4, or as otherwise provided by this Act

26 or any other law. In the event the Department of State

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1 Police or the Department of Revenue is unable to fill

2 contracted police or investigative positions, the Board

3 may appoint investigators to fill those positions pursuant

4 to subdivision (20.6).

5 (21) To adopt rules concerning the conduct of

6 electronic gaming.

7 (22) To have the same jurisdiction and supervision over

8 casinos and electronic gaming facilities as the Board has

9 over riverboats, including, but not limited to, the power

10 to (i) investigate, review, and approve contracts as that

11 power is applied to riverboats, (ii) adopt rules for

12 administering the provisions of this Act or the Chicago

13 Casino Development Authority Act, (iii) adopt standards

14 for the licensing of all persons involved with a casino or

15 electronic gaming facility, (iv) investigate alleged

16 violations of this Act by any person involved with a casino

17 or electronic gaming facility, and (v) require that

18 records, including financial or other statements of any

19 casino or electronic gaming facility, shall be kept in such

20 manner as prescribed by the Board.

21 (23) To supervise and regulate the Chicago Casino

22 Development Authority in accordance with the Chicago

23 Casino Development Authority Act and the provisions of this

24 Act.

25 (24) ~~(21)~~ To take any other action as may be reasonable

26 or appropriate to enforce this Act, the Chicago Casino

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1 Development Authority Act, and the rules adopted by the

2 Board under both Acts ~~and regulations hereunder~~.

3 All Board powers enumerated in this Section in relation to

4 licensees shall apply equally to the holder of any casino

5 management contract entered into pursuant to the Chicago Casino

6 Development Authority Act.

7 (d) The Board may seek and shall receive the cooperation of

8 the Department of State Police in conducting background

9 investigations of applicants and in fulfilling its

10 responsibilities under this Section. Costs incurred by the

11 Department of State Police as a result of such cooperation

12 shall be paid by the Board in conformance with the requirements

13 of Section 2605-400 of the Department of State Police Law (20

14 ILCS 2605/2605-400).

15 (e) The Board must authorize to each investigator and to

16 any other employee of the Board exercising the powers of a

17 peace officer a distinct badge that, on its face, (i) clearly

18 states that the badge is authorized by the Board and (ii)

19 contains a unique identifying number. No other badge shall be

20 authorized by the Board.

21 (Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)

22 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)

23 Sec. 5.1. Disclosure of records.

24 (a) Notwithstanding any applicable statutory provision to

25 the contrary, the Board shall, on written request from any

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1 person, provide information furnished by an applicant or

2 licensee concerning the applicant or licensee, his products,

3 services or gambling enterprises and his business holdings, as

4 follows:

5 (1) The name, business address and business telephone

6 number of any applicant or licensee.

7 (2) An identification of any applicant or licensee

8 including, if an applicant or licensee is not an

9 individual, the names and addresses of all stockholders and

10 directors, if the entity is a corporation; the names and

11 addresses of all members, if the entity is a limited

12 liability company; the names and addresses of all partners,

13 both general and limited, if the entity is a partnership;

14 and the names and addresses of all beneficiaries, if the

15 entity is a trust ~~the state of incorporation or~~

16 ~~registration, the corporate officers, and the identity of~~

17 ~~all shareholders or participants~~. If an applicant or

18 licensee has a pending registration statement filed with

19 the Securities and Exchange Commission, only the names of

20 those persons or entities holding interest of 5% or more

21 must be provided.

22 (3) An identification of any business, including, if

23 applicable, the state of incorporation or registration, in

24 which an applicant or licensee or an applicant's or

25 licensee's spouse or children has an equity interest of

26 more than 1%. If an applicant or licensee is a corporation,

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1 partnership or other business entity, the applicant or

2 licensee shall identify any other corporation, partnership

3 or business entity in which it has an equity interest of 1%

4 or more, including, if applicable, the state of

5 incorporation or registration. This information need not

6 be provided by a corporation, partnership or other business

7 entity that has a pending registration statement filed with

8 the Securities and Exchange Commission.

9 (4) Whether an applicant or licensee has been indicted,

10 convicted, pleaded guilty or nolo contendere, or forfeited

11 bail concerning any criminal offense under the laws of any

12 jurisdiction, either felony or misdemeanor (except for

13 traffic violations), including the date, the name and

14 location of the court, arresting agency and prosecuting

15 agency, the case number, the offense, the disposition and

16 the location and length of incarceration.

17 (5) Whether an applicant or licensee has had any

18 license or certificate issued by a licensing authority in

19 Illinois or any other jurisdiction denied, restricted,

20 suspended, revoked or not renewed and a statement

21 describing the facts and circumstances concerning the

22 denial, restriction, suspension, revocation or

23 non-renewal, including the licensing authority, the date

24 each such action was taken, and the reason for each such

25 action.

26 (6) Whether an applicant or licensee has ever filed or

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1 had filed against it a proceeding in bankruptcy or has ever

2 been involved in any formal process to adjust, defer,

3 suspend or otherwise work out the payment of any debt

4 including the date of filing, the name and location of the

5 court, the case and number of the disposition.

6 (7) Whether an applicant or licensee has filed, or been

7 served with a complaint or other notice filed with any

8 public body, regarding the delinquency in the payment of,

9 or a dispute over the filings concerning the payment of,

10 any tax required under federal, State or local law,

11 including the amount, type of tax, the taxing agency and

12 time periods involved.

13 (8) A statement listing the names and titles of all

14 public officials or officers of any unit of government, and

15 relatives of said public officials or officers who,

16 directly or indirectly, own any financial interest in, have

17 any beneficial interest in, are the creditors of or hold

18 any debt instrument issued by, or hold or have any interest

19 in any contractual or service relationship with, an

20 applicant or licensee.

21 (9) Whether an applicant or licensee has made, directly

22 or indirectly, any political contribution, or any loans,

23 donations or other payments, to any candidate or office

24 holder, within 5 years from the date of filing the

25 application, including the amount and the method of

26 payment.

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1 (10) The name and business telephone number of the

2 counsel representing an applicant or licensee in matters

3 before the Board.

4 (11) A description of any proposed or approved

5 riverboat or casinogamingor electronic gaming operation,

6 including the type of boat, home dock or casino or

7 electronic gaminglocation, expected economic benefit to

8 the community, anticipated or actual number of employees,

9 any statement from an applicant or licensee regarding

10 compliance with federal and State affirmative action

11 guidelines, projected or actual admissions and projected

12 or actual adjusted gross gaming receipts.

13 (12) A description of the product or service to be

14 supplied by an applicant for a supplier's license.

15 (b) Notwithstanding any applicable statutory provision to

16 the contrary, the Board shall, on written request from any

17 person, also provide the following information:

18 (1) The amount of the wagering tax and admission tax

19 paid daily to the State of Illinois by the holder of an

20 owner's license.

21 (2) Whenever the Board finds an applicant for an

22 owner's license unsuitable for licensing, a copy of the

23 written letter outlining the reasons for the denial.

24 (3) Whenever the Board has refused to grant leave for

25 an applicant to withdraw his application, a copy of the

26 letter outlining the reasons for the refusal.

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1 (c) Subject to the above provisions, the Board shall not

2 disclose any information which would be barred by:

3 (1) Section 7 of the Freedom of Information Act; or

4 (2) The statutes, rules, regulations or

5 intergovernmental agreements of any jurisdiction.

6 (d) The Board may assess fees for the copying of

7 information in accordance with Section 6 of the Freedom of

8 Information Act.

9 (Source: P.A. 96-1392, eff. 1-1-11.)

10 (230 ILCS 10/5.3 new)

11 Sec. 5.3. Ethical conduct.

12 (a) Officials and employees of the corporate authority of a

13 host community must carry out their duties and responsibilities

14 in such a manner as to promote and preserve public trust and

15 confidence in the integrity and conduct of gaming.

16 (b) Officials and employees of the corporate authority of a

17 host community shall not use or attempt to use his or her

18 official position to secure or attempt to secure any privilege,

19 advantage, favor, or influence for himself or herself or

20 others.

21 (c) Officials and employees of the corporate authority of a

22 host community may not have a financial interest, directly or

23 indirectly, in his or her own name or in the name of any other

24 person, partnership, association, trust, corporation, or other

25 entity in any contract or subcontract for the performance of

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1 any work for a riverboat or casino that is located in the host

2 community. This prohibition shall extend to the holding or

3 acquisition of an interest in any entity identified by Board

4 action that, in the Board's judgment, could represent the

5 potential for or the appearance of a financial interest. The

6 holding or acquisition of an interest in such entities through

7 an indirect means, such as through a mutual fund, shall not be

8 prohibited, except that the Board may identify specific

9 investments or funds that, in its judgment, are so influenced

10 by gaming holdings as to represent the potential for or the

11 appearance of a conflict of interest.

12 (d) Officials and employees of the corporate authority of a

13 host community may not accept any gift, gratuity, service,

14 compensation, travel, lodging, or thing of value, with the

15 exception of unsolicited items of an incidental nature, from

16 any person, corporation, or entity doing business with the

17 riverboat or casino that is located in the host community.

18 (e) Officials and employees of the corporate authority of a

19 host community shall not, during the period that the person is

20 an official or employee of the corporate authority or for a

21 period of 2 years immediately after leaving such office,

22 knowingly accept employment or receive compensation or fees for

23 services from a person or entity, or its parent or affiliate,

24 that has engaged in business with the riverboat or casino that

25 is located in the host community that resulted in contracts

26 with an aggregate value of at least $25,000 or if that official

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1 or employee has made a decision that directly applied to the

2 person or entity, or its parent or affiliate.

3 (f) A spouse, child, or parent of an official or employee

4 of the corporate authority of a host community may not have a

5 financial interest, directly or indirectly, in his or her own

6 name or in the name of any other person, partnership,

7 association, trust, corporation, or other entity in any

8 contract or subcontract for the performance of any work for a

9 riverboat or casino in the host community. This prohibition

10 shall extend to the holding or acquisition of an interest in

11 any entity identified by Board action that, in the judgment of

12 the Board, could represent the potential for or the appearance

13 of a conflict of interest. The holding or acquisition of an

14 interest in such entities through an indirect means, such as

15 through a mutual fund, shall not be prohibited, expect that the

16 Board may identify specific investments or funds that, in its

17 judgment, are so influenced by gaming holdings as to represent

18 the potential for or the appearance of a conflict of interest.

19 (g) A spouse, child, or parent of an official or employee

20 of the corporate authority of a host community may not accept

21 any gift, gratuity, service, compensation, travel, lodging, or

22 thing of value, with the exception of unsolicited items of an

23 incidental nature, from any person, corporation, or entity

24 doing business with the riverboat or casino that is located in

25 the host community.

26 (h) A spouse, child, or parent of an official or employee

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1 of the corporate authority of a host community may not, during

2 the period that the person is an official of the corporate

3 authority or for a period of 2 years immediately after leaving

4 such office or employment, knowingly accept employment or

5 receive compensation or fees for services from a person or

6 entity, or its parent or affiliate, that has engaged in

7 business with the riverboat or casino that is located in the

8 host community that resulted in contracts with an aggregate

9 value of at least $25,000 or if that official or employee has

10 made a decision that directly applied to the person or entity,

11 or its parent or affiliate.

12 (i) Officials and employees of the corporate authority of a

13 host community shall not attempt, in any way, to influence any

14 person or entity doing business with the riverboat or casino

15 that is located in the host community or any officer, agent, or

16 employee thereof to hire or contract with any person or entity

17 for any compensated work.

18 (j) Any communication between an official of the corporate

19 authority of a host community and any applicant for an owners

20 license in the host community, or an officer, director, or

21 employee of a riverboat or casino in the host community,

22 concerning any matter relating in any way to gaming shall be

23 disclosed to the Board. Such disclosure shall be in writing by

24 the official within 30 days after the communication and shall

25 be filed with the Board. Disclosure must consist of the date of

26 the communication, the identity and job title of the person

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1 with whom the communication was made, a brief summary of the

2 communication, the action requested or recommended, all

3 responses made, the identity and job title of the person making

4 the response, and any other pertinent information. Public

5 disclosure of the written summary provided to the Board and the

6 Gaming Board shall be subject to the exemptions provided under

7 the Freedom of Information Act.

8 This subsection (j) shall not apply to communications

9 regarding traffic, law enforcement, security, environmental

10 issues, city services, transportation, or other routine

11 matters concerning the ordinary operations of the riverboat or

12 casino. For purposes of this subsection (j), "ordinary

13 operations" means operations relating to the casino or

14 riverboat facility other than the conduct of gambling

15 activities, and "routine matters" includes the application

16 for, issuance of, renewal of, and other processes associated

17 with municipal permits and licenses.

18 (k) Any official or employee who violates any provision of

19 this Section is guilty of a Class 4 felony.

20 (l) For purposes of this Section, "host community" or "host

21 municipality" means a unit of local government that contains a

22 riverboat or casino within its borders, but does not include

23 the City of Chicago or the Chicago Casino Development

24 Authority.

25 (230 ILCS 10/6) (from Ch. 120, par. 2406)

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1 Sec. 6. Application for Owners License.

2 (a) A qualified person may apply to the Board for an owners

3 license to conduct a riverboat gambling operation as provided

4 in this Act. The application shall be made on forms provided by

5 the Board and shall contain such information as the Board

6 prescribes, including but not limited to the identity of the

7 riverboat on which such gambling operation is to be conducted,

8 if applicable, and the exact location where such riverboat or

9 casino will be located ~~docked~~, a certification that the

10 riverboat will be registered under this Act at all times during

11 which gambling operations are conducted on board, detailed

12 information regarding the ownership and management of the

13 applicant, and detailed personal information regarding the

14 applicant. Any application for an owners license to be

15 re-issued on or after June 1, 2003 shall also include the

16 applicant's license bid in a form prescribed by the Board.

17 Information provided on the application shall be used as a

18 basis for a thorough background investigation which the Board

19 shall conduct with respect to each applicant. An incomplete

20 application shall be cause for denial of a license by the

21 Board.

22 (a-5) In addition to any other information required under

23 this Section, each application for an owners license must

24 include the following information:

25 (1) The history and success of the applicant and each

26 person and entity disclosed under subsection (c) of this

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1 Section in developing tourism facilities ancillary to

2 gaming, if applicable.

3 (2) The likelihood that granting a license to the

4 applicant will lead to the creation of quality, living wage

5 jobs and permanent, full-time jobs for residents of the

6 State and residents of the unit of local government that is

7 designated as the home dock of the proposed facility where

8 gambling is to be conducted by the applicant.

9 (3) The projected number of jobs that would be created

10 if the license is granted and the projected number of new

11 employees at the proposed facility where gambling is to be

12 conducted by the applicant.

13 (4) The record, if any, of the applicant and its

14 developer in meeting commitments to local agencies,

15 community-based organizations, and employees at other

16 locations where the applicant or its developer has

17 performed similar functions as they would perform if the

18 applicant were granted a license.

19 (5) Identification of adverse effects that might be

20 caused by the proposed facility where gambling is to be

21 conducted by the applicant, including the costs of meeting

22 increased demand for public health care, child care, public

23 transportation, affordable housing, and social services,

24 and a plan to mitigate those adverse effects.

25 (6) The record, if any, of the applicant and its

26 developer regarding compliance with:

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1 (A) federal, state, and local discrimination, wage

2 and hour, disability, and occupational and

3 environmental health and safety laws; and

4 (B) state and local labor relations and employment

5 laws.

6 (7) The applicant's record, if any, in dealing with its

7 employees and their representatives at other locations.

8 (8) A plan concerning the utilization of

9 minority-owned and female-owned businesses and concerning

10 the hiring of minorities and females.

11 (9) Evidence the applicant used its best efforts to

12 reach a goal of 25% ownership representation by minority

13 persons and 5% ownership representation by females.

14 (b) Applicants shall submit with their application all

15 documents, resolutions, and letters of support from the

16 governing body that represents the municipality or county

17 wherein the licensee will be located ~~dock~~.

18 (c) Each applicant shall disclose the identity of every

19 person or entity ~~, association, trust or corporation~~ having a

20 greater than 1% direct or indirect pecuniary interest in the

21 ~~riverboat~~gambling operation with respect to which the license

22 is sought. If the disclosed entity is a trust, the application

23 shall disclose the names and addresses of all ~~the~~

24 beneficiaries; if a corporation, the names and addresses of all

25 stockholders and directors; if a partnership, the names and

26 addresses of all partners, both general and limited.

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1 (d) An application shall be filed and considered in

2 accordance with the rules of the Board. Each application shall

3 be accompanied by a non-refundable ~~An~~application fee of

4 $100,000. In addition, a non-refundable fee of $50,000 shall be

5 paid at the time of filing to defray the costs associated with

6 the background investigation conducted by the Board. If the

7 costs of the investigation exceed $50,000, the applicant shall

8 pay the additional amount to the Boardwithin 7 days after

9 requested by the Board. If the costs of the investigation are

10 less than $50,000, the applicant shall receive a refund of the

11 remaining amount. All information, records, interviews,

12 reports, statements, memoranda or other data supplied to or

13 used by the Board in the course of its review or investigation

14 of an application for a license or a renewal under this Act

15 shall be privileged, strictly confidential and shall be used

16 only for the purpose of evaluating an applicant for a license

17 or a renewal. Such information, records, interviews, reports,

18 statements, memoranda or other data shall not be admissible as

19 evidence, nor discoverable in any action of any kind in any

20 court or before any tribunal, board, agency or person, except

21 for any action deemed necessary by the Board.The application

22 fee shall be deposited into the Gaming Facilities Fee Revenue

23 Fund.

24 (e) The Board shall charge each applicant a fee set by the

25 Department of State Police to defray the costs associated with

26 the search and classification of fingerprints obtained by the

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1 Board with respect to the applicant's application. These fees

2 shall be paid into the State Police Services Fund.

3 (f) The licensed owner shall be the person primarily

4 responsible for the boator casino itself. Only one ~~riverboat~~

5 gambling operation may be authorized by the Board on any

6 riverboat or in any casino. The applicant must identify the

7 ~~each~~ riverboat or premisesit intends to use and certify that

8 the riverboat or premises: (1) has the authorized capacity

9 required in this Act; (2) is accessible to persons with

10 disabilities; and (3) is fully registered and licensed in

11 accordance with any applicable laws.

12 (g) A person who knowingly makes a false statement on an

13 application is guilty of a Class A misdemeanor.

14 (Source: P.A. 99-143, eff. 7-27-15.)

15 (230 ILCS 10/7) (from Ch. 120, par. 2407)

16 Sec. 7. Owners Licenses.

17 (a) The Board shall issue owners licenses to persons or

18 entities ~~, firms or corporations~~ which apply for such licenses

19 upon payment to the Board of the non-refundable license feeas

20 provided in subsection (e) or (e-5) ~~set by the Board, upon~~

21 ~~payment of a $25,000 license fee for the first year of~~

22 ~~operation and a $5,000 license fee for each succeeding year~~ and

23 upon a determination by the Board that the applicant is

24 eligible for an owners license pursuant to this Act, the

25 Chicago Casino Development Authority Act,and the rules of the

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1 Board. From the effective date of this amendatory Act of the

2 95th General Assembly until (i) 3 years after the effective

3 date of this amendatory Act of the 95th General Assembly, (ii)

4 the date any organization licensee begins to operate a slot

5 machine or video game of chance under the Illinois Horse Racing

6 Act of 1975 or this Act, (iii) the date that payments begin

7 under subsection (c-5) of Section 13 of the Act, ~~or~~ (iv) the

8 wagering tax imposed under Section 13 of this Act is increased

9 by law to reflect a tax rate that is at least as stringent or

10 more stringent than the tax rate contained in subsection (a-3)

11 of Section 13, or (v) when an owners licensee holding a license

12 issued pursuant to Section 7.1 of this Act begins conducting

13 gaming, whichever occurs first, as a condition of licensure and

14 as an alternative source of payment for those funds payable

15 under subsection (c-5) of Section 13 of this ~~the Riverboat~~

16 ~~Gambling~~ Act, any owners licensee that holds or receives its

17 owners license on or after the effective date of this

18 amendatory Act of the 94th General Assembly, other than an

19 owners licensee operating a riverboat with adjusted gross

20 receipts in calendar year 2004 of less than $200,000,000, must

21 pay into the Horse Racing Equity Trust Fund, in addition to any

22 other payments required under this Act, an amount equal to 3%

23 of the adjusted gross receipts received by the owners licensee.

24 The payments required under this Section shall be made by the

25 owners licensee to the State Treasurer no later than 3:00

26 o'clock p.m. of the day after the day when the adjusted gross

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1 receipts were received by the owners licensee. A person~~, firm~~

2 or entity ~~corporation~~is ineligible to receive an owners

3 license if:

4 (1) the person has been convicted of a felony under the

5 laws of this State, any other state, or the United States;

6 (2) the person has been convicted of any violation of

7 Article 28 of the Criminal Code of 1961 or the Criminal

8 Code of 2012, or substantially similar laws of any other

9 jurisdiction;

10 (3) the person has submitted an application for a

11 license under this Actor the Chicago Casino Development

12 Authority Act which contains false information;

13 (4) the person is a member of the Board;

14 (5) a person defined in (1), (2), (3) or (4) is an

15 officer, director or managerial employee of theentity ~~firm~~

16 ~~or corporation~~;

17 (6) the entity ~~firm or corporation~~ employs a person

18 defined in (1), (2), (3) or (4) who participates in the

19 management or operation of gambling operations authorized

20 under this Act or the Chicago Casino Development Authority

21 Act;

22 (7) (blank); or

23 (8) a license of the person or entity ~~, firm or~~

24 ~~corporation~~issued under this Actor the Chicago Casino

25 Development Authority Act, or a license to own or operate

26 gambling facilities in any other jurisdiction, has been

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1 revoked.

2 The Board is expressly prohibited from making changes to

3 the requirement that licensees make payment into the Horse

4 Racing Equity Trust Fund without the express authority of the

5 Illinois General Assembly and making any other rule to

6 implement or interpret this amendatory Act of the 95th General

7 Assembly. For the purposes of this paragraph, "rules" is given

8 the meaning given to that term in Section 1-70 of the Illinois

9 Administrative Procedure Act.

10 (a-1) Upon approval of the members of the Chicago Casino

11 Development Board, the Chicago Casino Development Authority's

12 executive director, and the Chicago casino operator licensee,

13 the Board shall issue an owners license to the Chicago Casino

14 Development Authority that authorizes the conduct of gambling

15 operations in a casino located in the City of Chicago.

16 (b) In determining whether to grant an owners license to an

17 applicant other than the Chicago Casino Development Authority,

18 the Board shall consider:

19 (1) the character, reputation, experience and

20 financial integrity of the applicants and of any other or

21 separate person that either:

22 (A) controls, directly or indirectly, such

23 applicant, or

24 (B) is controlled, directly or indirectly, by such

25 applicant or by a person which controls, directly or

26 indirectly, such applicant;

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1 (2) the facilities or proposed facilities for the

2 conduct of ~~riverboat~~gambling;

3 (3) the highest prospective total revenue to be derived

4 by the State from the conduct of~~riverboat~~ gambling;

5 (4) the extent to which the ownership of the applicant

6 reflects the diversity of the State by including minority

7 persons, females, and persons with a disability and the

8 good faith affirmative action plan of each applicant to

9 recruit, train and upgrade minority persons, females, and

10 persons with a disability in all employment

11 classifications;

12 (5) the financial ability of the applicant to purchase

13 and maintain adequate liability and casualty insurance;

14 (6) whether the applicant has adequate capitalization

15 to provide and maintain, for the duration of a license, a

16 riverboat or casino;

17 (7) the extent to which the applicant exceeds or meets

18 other standards for the issuance of an owners license which

19 the Board may adopt by rule;~~and~~

20 (8) the ~~The~~ amount of the applicant's license bid; ~~.~~

21 (9) the extent to which the applicant or the proposed

22 host municipality plans to enter into revenue sharing

23 agreements with communities other than the host

24 municipality; and

25 (10) the extent to which the ownership of an applicant

26 includes the most qualified number of minority persons,

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1 females, and persons with a disability.

2 (c) Each owners license shall specify the place where the

3 casino ~~riverboats~~shall operateor the riverboat shall operate

4 and dock.

5 (d) Each applicant shall submit with his application, on

6 forms provided by the Board, 2 sets of his fingerprints.

7 (e) In addition to any licenses authorized under subsection

8 (e-5) of this Section, the ~~The~~ Board may issue up to 10

9 licenses authorizing the holders of such licenses to own

10 riverboats. In the application for an owners license, the

11 applicant shall state the dock at which the riverboat is based

12 and the water on which the riverboat will be located. The Board

13 shall issue 5 licenses to become effective not earlier than

14 January 1, 1991. Three of such licenses shall authorize

15 riverboat gambling on the Mississippi River, or, with approval

16 by the municipality in which the riverboat was docked on August

17 7, 2003 and with Board approval, be authorized to relocate to a

18 new location, in a municipality that (1) borders on the

19 Mississippi River or is within 5 miles of the city limits of a

20 municipality that borders on the Mississippi River and (2), on

21 August 7, 2003, had a riverboat conducting riverboat gambling

22 operations pursuant to a license issued under this Act; one of

23 which shall authorize riverboat gambling from a home dock in

24 the city of East St. Louis. One other license shall authorize

25 riverboat gambling on the Illinois Riverin Tazewell County or,

26 with Board approval, shall authorize the riverboat to relocate

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1 to a new location that is no more than 10 miles away from its

2 original location, in a municipality that borders on the

3 Illinois River or is within 5 miles of the city limits of a

4 municipality that borders on the Illinois River ~~south of~~

5 ~~Marshall County~~. The Board shall issue one additional license

6 to become effective not earlier than March 1, 1992, which shall

7 authorize riverboat gambling on the Des Plaines River in Will

8 County. The Board may issue 4 additional licenses to become

9 effective not earlier than March 1, 1992. In determining the

10 water upon which riverboats will operate, the Board shall

11 consider the economic benefit which riverboat gambling confers

12 on the State, and shall seek to assure that all regions of the

13 State share in the economic benefits of riverboat gambling.

14 In granting all licenses, the Board may give favorable

15 consideration to economically depressed areas of the State, to

16 applicants presenting plans which provide for significant

17 economic development over a large geographic area, and to

18 applicants who currently operate non-gambling riverboats in

19 Illinois. The Board shall review all applications for owners

20 licenses, and shall inform each applicant of the Board's

21 decision. The Board may grant an owners license to an applicant

22 that has not submitted the highest license bid, but if it does

23 not select the highest bidder, the Board shall issue a written

24 decision explaining why another applicant was selected and

25 identifying the factors set forth in this Section that favored

26 the winning bidder. The fee for issuance or renewal of a

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1 license pursuant to this subsection (e) shall be $100,000.

2 (e-5) In addition to licenses authorized under subsection

3 (e) of this Section:

4 (1) the Board shall issue one owners license

5 authorizing the conduct of casino gambling in the City of

6 Chicago;

7 (2) the Board may issue one owners license authorizing

8 the conduct of riverboat gambling in the City of Danville;

9 (3) the Board may issue one owners license authorizing

10 the conduct of riverboat gambling located in one of the

11 following municipalities in Lake County: Park City, North

12 Chicago, or Waukegan;

13 (4) the Board may issue one owners license authorizing

14 the conduct of riverboat gambling in the City of Rockford;

15 (5) the Board may issue one owners license authorizing

16 the conduct of riverboat gambling in a municipality that is

17 wholly or partially located in one of the following

18 townships of Cook County: Bloom, Bremen, Calumet, Rich,

19 Thornton, or Worth Township; and

20 (6) the Board may issue one owners license authorizing

21 the conduct of riverboat gambling in the unincorporated

22 area of Williamson County adjacent to the Big Muddy River.

23 Each application for a license pursuant to this subsection

24 (e-5) shall be submitted to the Board no later than 6 months

25 after the effective date of this amendatory Act of the 100th

26 General Assembly and shall include the non-refundable

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1 application fee and the non-refundable background

2 investigation fee as provided in subsection (d) of Section 6 of

3 this Act. In the event that an applicant submits an application

4 for a license pursuant to this subsection (e-5) prior to the

5 effective date of this amendatory Act of the 100th General

6 Assembly, such applicant shall submit the non-refundable

7 application fee and background investigation fee as provided in

8 subsection (d) of Section 6 of this Act no later than 6 months

9 after the effective date of this amendatory Act of the 100th

10 General Assembly.

11 The Board shall consider issuing a license pursuant to

12 paragraphs (2) through (6) of this subsection only after the

13 corporate authority of the municipality or the county board of

14 the county in which the riverboat shall be located has

15 certified to the Board the following:

16 (i) that the applicant has negotiated with the

17 corporate authority or county board in good faith;

18 (ii) that the applicant and the corporate authority or

19 county board have mutually agreed on the permanent location

20 of the riverboat;

21 (iii) that the applicant and the corporate authority or

22 county board have mutually agreed on the temporary location

23 of the riverboat;

24 (iv) that the applicant and the corporate authority or

25 the county board have mutually agreed on the percentage of

26 revenues that will be shared with the municipality or

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1 county, if any; and

2 (v) that the applicant and the corporate authority or

3 county board have mutually agreed on any zoning, licensing,

4 public health, or other issues that are within the

5 jurisdiction of the municipality or county.

6 At least 7 days before the corporate authority of a

7 municipality or county board of the county submits a

8 certification to the Board concerning items (i) through (v) of

9 this subsection, it shall hold a public hearing to discuss

10 items (i) through (v), as well as any other details concerning

11 the proposed riverboat in the municipality or county. The

12 corporate authority or county board must subsequently

13 memorialize the details concerning the proposed riverboat in a

14 resolution that must be adopted by a majority of the corporate

15 authority or county board before any certification is sent to

16 the Board. The Board shall not alter, amend, change, or

17 otherwise interfere with any agreement between the applicant

18 and the corporate authority of the municipality or county board

19 of the county regarding the location of any temporary or

20 permanent facility.

21 In addition, prior to the Board issuing the owners license

22 authorized under paragraph (4) of subsection (e-5), an impact

23 study shall be completed to determine what location in the city

24 will provide the greater impact to the region, including the

25 creation of jobs and the generation of tax revenue.

26 (e-10) The licenses authorized under subsection (e-5) of

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1 this Section shall be issued within 12 months after the date

2 the license application is submitted. If the Board does not

3 issue the licenses within that time period, then the Board

4 shall give a written explanation to the applicant as to why it

5 has not reached a determination and when it reasonably expects

6 to make a determination. The fee for the issuance or renewal of

7 a license issued pursuant to this subsection (e-10) shall be

8 $100,000. Additionally, a licensee located outside of Cook

9 County shall pay a minimum initial fee of $17,500 per gaming

10 position, and a licensee located in Cook County shall pay a

11 minimum initial fee of $30,000 per gaming position. The initial

12 fees payable under this subsection (e-10) shall be deposited

13 into the Gaming Facilities Fee Revenue Fund.

14 (e-15) Each licensee of a license authorized under

15 subsection (e-5) of this Section shall make a reconciliation

16 payment 3 years after the date the licensee begins operating in

17 an amount equal to 75% of the adjusted gross receipts for the

18 most lucrative 12-month period of operations, minus an amount

19 equal to the initial payment per gaming position paid by the

20 specific licensee. If this calculation results in a negative

21 amount, then the licensee is not entitled to any reimbursement

22 of fees previously paid. This reconciliation payment may be

23 made in installments over a period of no more than 2 years,

24 subject to Board approval. Any installment payments shall

25 include an annual market interest rate as determined by the

26 Board. All payments by licensees under this subsection (e-15)

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1 shall be deposited into the Gaming Facilities Fee Revenue Fund.

2 (e-20) In addition to any other revocation powers granted

3 to the Board under this Act, the Board may revoke the owners

4 license of a licensee, other than the Chicago Casino

5 Development Authority,which fails to begin conducting

6 gambling within 15 months of receipt of the Board's approval of

7 the application if the Board determines that license revocation

8 is in the best interests of the State.

9 (f) The first 10 owners licenses issued under this Act

10 shall permit the holder to own up to 2 riverboats and equipment

11 thereon for a period of 3 years after the effective date of the

12 license. Holders of the first 10 owners licenses must pay the

13 annual license fee for each of the 3 years during which they

14 are authorized to own riverboats.

15 (g) Upon the termination, expiration, or revocation of each

16 of the first 10 licenses, which shall be issued for a 3 year

17 period, all licenses are renewable annually upon payment of the

18 fee and a determination by the Board that the licensee

19 continues to meet all of the requirements of this Act and the

20 Board's rules. However, for licenses renewed on or after May 1,

21 1998, including casino operator licenses,renewal shall be for

22 a period of 4 years, unless the Board sets a shorter period.

23 Notwithstanding any provision in this subsection (g) to the

24 contrary, any license that is awarded to the Chicago Casino

25 Development Authority shall not expire, but it shall be subject

26 to the provisions of this Act and the rules of the Board.

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1 (h) An owners license, except for an owners license issued

2 under subsection (e-5) of this Section, shall entitle the

3 licensee to own up to 2 riverboats.

4 An owners licensee of a casino or riverboat that is located

5 in the City of Chicago pursuant to paragraph (1) of subsection

6 (e-5) of this Section shall limit the number of gaming

7 positions to 4,000 for such owner. An owners licensee

8 authorized under paragraphs (2) through (5) of subsection (e-5)

9 of this Section shall limit the number of gaming positions to

10 1,600 for any such owners license, except as further provided

11 in subsection (h-10) of this Section. An owners licensee

12 authorized under paragraph (6) of subsection (e-5) of this

13 Section ~~A licensee~~ shall limit the number of gaming positions

14 ~~gambling participants~~to 1,200 for~~any~~ such owner. The initial

15 fee for each gaming position obtained on or after the effective

16 date of this amendatory Act of the 100th General Assembly shall

17 be a minimum of $17,500 for licensees not located in Cook

18 County and a minimum of $30,000 for licensees located in Cook

19 County, in addition to the reconciliation payment, as set forth

20 in subsections (e-15) or (h-5) of this Section ~~owners license~~.

21 Each owners licensee shall reserve its gaming positions

22 within 90 days after issuance of its owners license. The Board

23 may grant an extension to this 90-day period, provided that the

24 owners licensee submits a written request and explanation as to

25 why it is unable to reserve its positions within the 90-day

26 period.

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1 A licensee may operate both of its riverboats concurrently,

2 provided that the total number ofgaming positions ~~gambling~~

3 ~~participants~~ on both riverboats does not exceed the limit

4 established pursuant to this subsection and subsection (h-10)

5 of this Section~~1,200~~. Riverboats licensed to operate on the

6 Mississippi River and the Illinois River south of Marshall

7 County shall have an authorized capacity of at least 500

8 persons. Any other riverboat licensed under this Act shall have

9 an authorized capacity of at least 400 persons.

10 (h-5) An owners licensee who conducted gambling operations

11 prior to January 1, 2012 and purchases positions pursuant to

12 subsection (h-10) of this Section on or after the effective

13 date of this amendatory Act of the 100th General Assembly must

14 pay a minimum initial fee of $17,500 per gaming position if the

15 licensee is located outside Cook County and a minimum initial

16 fee of $30,000 per gaming position if the licensee is located

17 in Cook County, as stated in subsection (h) of this Section.

18 These initial fees shall be deposited into the Gaming

19 Facilities Fee Revenue Fund. Additionally, that owners

20 licensee shall make a reconciliation payment 3 years after any

21 additional gaming positions obtained pursuant to subsection

22 (h-10) begin operating in an amount equal to 75% of the owners

23 licensee's average gross receipts for the most lucrative

24 12-month period of operations minus an amount equal to the

25 initial fee that the owners licensee paid per additional gaming

26 position. For purposes of this subsection (h-5), "average gross

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1 receipts" means (i) the increase in adjusted gross receipts for

2 the most lucrative 12-month period of operations over the

3 adjusted gross receipts for 2017, multiplied by (ii) the

4 percentage derived by dividing the number of additional gaming

5 positions that an owners licensee had obtained pursuant to

6 subsection (h-10) by the total number of gaming positions

7 operated by the owners licensee. If this calculation results in

8 a negative amount, then the owners licensee is not entitled to

9 any reimbursement of fees previously paid. This reconciliation

10 payment may be made in installments over a period of no more

11 than 2 years, subject to Board approval. Any installment

12 payments shall include an annual market interest rate as

13 determined by the Board. These reconciliation payments shall be

14 deposited into the Gaming Facilities Fee Revenue Fund.

15 (h-10) For owners licensees authorized under paragraphs

16 (2) through (5) of subsection (e-5) of this Section, the

17 application for such new owners licenses shall ask the

18 applicants to stipulate in their applications the number of

19 gaming positions each applicant would like to reserve, up to

20 1,600 gaming positions. Once the last winning applicant for

21 each of these owners licenses has been selected by the Board,

22 the Board shall publish the number of gaming positions reserved

23 and unreserved by each winning applicant, shall accept requests

24 for additional gaming positions from any winning applicants or

25 owners licensee who initially reserved 1,600 gaming positions,

26 and shall allocate expeditiously the unreserved gaming

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1 positions to such requesting winning applicants or owners

2 licensees in a manner to maximize revenue to the State;

3 provided, however, that no owners licensee (other than the

4 Chicago Casino Development Authority) shall obtain more than

5 2,000 positions total. The Board may allocate any such unused

6 gaming positions through a competitive bidding process

7 pursuant to Section 7.5 of this Act.

8 In the event that not all of the unreserved gaming

9 positions described in the first and second paragraphs of this

10 subsection (h-10) were requested by owners licensees and

11 applicants, then until there are no longer unreserved gaming

12 positions, the Board periodically shall govern a process to

13 allocate the unreserved gaming positions in a manner to

14 maximize revenue to the State.

15 Unreserved gaming positions retained from and allocated to

16 owners licensees by the Board pursuant to this subsection

17 (h-10) shall not be allocated to electronic gaming licensees

18 pursuant to subsection (e) of Section 7.7 of this Act.

19 (i) A licensed owner is authorized to apply to the Board

20 for and, if approved therefor, to receive all licenses from the

21 Board necessary for the operation of a riverboator a casino,

22 including a liquor license, a license to prepare and serve food

23 for human consumption, and other necessary licenses. All use,

24 occupation and excise taxes which apply to the sale of food and

25 beverages in this State and all taxes imposed on the sale or

26 use of tangible personal property apply to such sales aboard

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1 the riverboat or in the casino.

2 (j) The Board may issue or re-issue a license authorizing a

3 riverboat to dock in a municipality or approve a relocation

4 under Section 11.2 only if, prior to the issuance or

5 re-issuance of the license or approval, the governing body of

6 the municipality in which the riverboat will dock has by a

7 majority vote approved the docking of riverboats in the

8 municipality. The Board may issue or re-issue a license

9 authorizing a riverboat to dock in areas of a county outside

10 any municipality or approve a relocation under Section 11.2

11 only if, prior to the issuance or re-issuance of the license or

12 approval, the governing body of the county has by a majority

13 vote approved of the docking of riverboats within such areas.

14 (k) An owners licensee may conduct land-based gambling

15 operations upon approval by the Board.

16 (l) An owners licensee may conduct gaming at a temporary

17 facility pending the construction of a permanent facility or

18 the remodeling or relocation of an existing facility to

19 accommodate gaming participants for up to 24 months after the

20 temporary facility begins to conduct gaming. Upon request by an

21 owners licensee and upon a showing of good cause by the owners

22 licensee, the Board shall extend the period during which the

23 licensee may conduct gaming at a temporary facility by up to 12

24 months. The Board shall make rules concerning the conduct of

25 gaming from temporary facilities.

26 (Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)

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1 (230 ILCS 10/7.3)

2 Sec. 7.3. State conduct of gambling operations.

3 (a) If, after reviewing each application for a re-issued

4 license, the Board determines that the highest prospective

5 total revenue to the State would be derived from State conduct

6 of the gambling operation in lieu of re-issuing the license,

7 the Board shall inform each applicant of its decision. The

8 Board shall thereafter have the authority, without obtaining an

9 owners license, to conductcasino or riverboat gambling

10 operations as previously authorized by the terminated,

11 expired, revoked, or nonrenewed license through a licensed

12 manager selected pursuant to an open and competitive bidding

13 process as set forth in Section 7.5 and as provided in Section

14 7.4.

15 (b) The Board may locate any casino or riverboat on which a

16 gambling operation is conducted by the State in any home dock

17 or otherlocation authorized by Section 3(c) upon receipt of

18 approval from a majority vote of the governing body of the

19 municipality or county, as the case may be, in which the

20 riverboat will dock.

21 (c) The Board shall have jurisdiction over and shall

22 supervise all gambling operations conducted by the State

23 provided for in this Act and the Chicago Casino Development

24 Authority Actand shall have all powers necessary and proper to

25 fully and effectively execute the provisions of this Actand

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1 the Chicago Casino Development Authority Act relating to

2 gambling operations conducted by the State.

3 (d) The maximum number of owners licenses authorized under

4 Section 7~~7(e)~~shall be reduced by one for each instance in

5 which the Board authorizes the State to conduct acasino or

6 riverboat gambling operation under subsection (a) in lieu of

7 re-issuing a license to an applicant under Section 7.1.

8 (Source: P.A. 93-28, eff. 6-20-03.)

9 (230 ILCS 10/7.5)

10 Sec. 7.5. Competitive Bidding. When the Board determines

11 that (i)it will re-issue an owners license pursuant to an open

12 and competitive bidding process, as set forth in Section 7.1,

13 (ii) ~~or that~~it will issue a managers license pursuant to an

14 open and competitive bidding process, as set forth in Section

15 7.4, (iii) it will issue an owners license pursuant to an open

16 and competitive bidding process, as set forth in Section 7.12,

17 or (iv) it will allocate unused gaming positions pursuant to an

18 open and competitive bidding process, as set forth in

19 subsection (h-10) of Section 7, the open and competitive

20 bidding process shall adhere to the following procedures:

21 (1) The Board shall make applications for owners and

22 managers licenses available to the public and allow a

23 reasonable time for applicants to submit applications to the

24 Board.

25 (2) During the filing period for owners or managers license

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1 applications, the Board may retain the services of an

2 investment banking firm to assist the Board in conducting the

3 open and competitive bidding process.

4 (3) After receiving all of the bid proposals, the Board

5 shall open all of the proposals in a public forum and disclose

6 the prospective owners or managers names, venture partners, if

7 any, and, in the case of applicants for owners licenses, the

8 locations of the proposed development sites.

9 (4) The Board shall summarize the terms of the proposals

10 and may make this summary available to the public.

11 (5) The Board shall evaluate the proposals within a

12 reasonable time and select no more than 3 final applicants to

13 make presentations of their proposals to the Board.

14 (6) The final applicants shall make their presentations to

15 the Board on the same day during an open session of the Board.

16 (7) As soon as practicable after the public presentations

17 by the final applicants, the Board, in its discretion, may

18 conduct further negotiations among the 3 final applicants.

19 During such negotiations, each final applicant may increase its

20 license bid or otherwise enhance its bid proposal. At the

21 conclusion of such negotiations, the Board shall select the

22 winning proposal. In the case of negotiations for an owners

23 license, the Board may, at the conclusion of such negotiations,

24 make the determination allowed under Section 7.3(a).

25 (8) Upon selection of a winning bid, the Board shall

26 evaluate the winning bid within a reasonable period of time for

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1 licensee suitability in accordance with all applicable

2 statutory and regulatory criteria.

3 (9) If the winning bidder is unable or otherwise fails to

4 consummate the transaction, (including if the Board determines

5 that the winning bidder does not satisfy the suitability

6 requirements), the Board may, on the same criteria, select from

7 the remaining bidders or make the determination allowed under

8 Section 7.3(a).

9 (Source: P.A. 93-28, eff. 6-20-03.)

10 (230 ILCS 10/7.7 new)

11 Sec. 7.7. Electronic gaming.

12 (a) The General Assembly finds that the horse racing and

13 riverboat gambling industries share many similarities and

14 collectively comprise the bulk of the State's gaming industry.

15 One feature common to both industries is that each is highly

16 regulated by the State of Illinois. The General Assembly

17 further finds, however, that despite their shared features each

18 industry is distinct from the other in that horse racing is and

19 continues to be intimately tied to Illinois' agricultural

20 economy and is, at its core, a spectator sport. This

21 distinction requires the General Assembly to utilize different

22 methods to regulate and promote the horse racing industry

23 throughout the State. The General Assembly finds that in order

24 to promote live horse racing as a spectator sport in Illinois

25 and the agricultural economy of this State, it is necessary to

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1 allow electronic gaming at Illinois race tracks as an ancillary

2 use given the success of other states in increasing live racing

3 purse accounts and improving the quality of horses

4 participating in horse race meetings.

5 (b) The Illinois Gaming Board shall award one electronic

6 gaming license to each person or entity having operating

7 control of a race track that applies under Section 56 of the

8 Illinois Horse Racing Act of 1975, subject to the application

9 and eligibility requirements of this Section. Within 60 days

10 after the effective date of this amendatory Act of the 100th

11 General Assembly, a person or entity having operating control

12 of a race track may submit an application for an electronic

13 gaming license. The application shall be made on such forms as

14 provided by the Board and shall contain such information as the

15 Board prescribes, including, but not limited to, the identity

16 of any race track at which electronic gaming will be conducted,

17 detailed information regarding the ownership and management of

18 the applicant, and detailed personal information regarding the

19 applicant. The application shall specify the number of gaming

20 positions the applicant intends to use and the place where the

21 electronic gaming facility will operate. A person who knowingly

22 makes a false statement on an application is guilty of a Class

23 A misdemeanor.

24 Each applicant shall disclose the identity of every person

25 or entity having a direct or indirect pecuniary interest

26 greater than 1% in any race track with respect to which the

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1 license is sought. If the disclosed entity is a corporation,

2 the applicant shall disclose the names and addresses of all

3 stockholders and directors. If the disclosed entity is a

4 limited liability company, the applicant shall disclose the

5 names and addresses of all members and managers. If the

6 disclosed entity is a partnership, the applicant shall disclose

7 the names and addresses of all partners, both general and

8 limited. If the disclosed entity is a trust, the applicant

9 shall disclose the names and addresses of all beneficiaries.

10 An application shall be filed and considered in accordance

11 with the rules of the Board. Each application for an electronic

12 gaming license shall include a non-refundable application fee

13 of $100,000. In addition, a non-refundable fee of $50,000 shall

14 be paid at the time of filing to defray the costs associated

15 with background investigations conducted by the Board. If the

16 costs of the background investigation exceed $50,000, the

17 applicant shall pay the additional amount to the Board within 7

18 days after a request by the Board. If the costs of the

19 investigation are less than $50,000, the applicant shall

20 receive a refund of the remaining amount. All information,

21 records, interviews, reports, statements, memoranda, or other

22 data supplied to or used by the Board in the course of this

23 review or investigation of an applicant for an electronic

24 gaming license under this Act shall be privileged and strictly

25 confidential and shall be used only for the purpose of

26 evaluating an applicant for an electronic gaming license or a

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1 renewal. Such information, records, interviews, reports,

2 statements, memoranda, or other data shall not be admissible as

3 evidence nor discoverable in any action of any kind in any

4 court or before any tribunal, board, agency or person, except

5 for any action deemed necessary by the Board. The application

6 fee shall be deposited into the Gaming Facilities Fee Revenue

7 Fund.

8 Each applicant shall submit with his or her application, on

9 forms provided by the Board, 2 sets of his or her fingerprints.

10 The Board shall charge each applicant a fee set by the

11 Department of State Police to defray the costs associated with

12 the search and classification of fingerprints obtained by the

13 Board with respect to the applicant's application. This fee

14 shall be paid into the State Police Services Fund.

15 (c) The Board shall determine within 120 days after

16 receiving an application for an electronic gaming license

17 whether to grant an electronic gaming license to the applicant.

18 If the Board does not make a determination within that time

19 period, then the Board shall give a written explanation to the

20 applicant as to why it has not reached a determination and when

21 it reasonably expects to make a determination.

22 The electronic gaming licensee shall purchase up to the

23 amount of electronic gaming positions authorized under this Act

24 within 120 days after receiving its electronic gaming license.

25 If an electronic gaming licensee is prepared to purchase the

26 electronic gaming positions, but is temporarily prohibited

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1 from doing so by order of a court of competent jurisdiction or

2 the Board, then the 120-day period is tolled until a resolution

3 is reached.

4 An electronic gaming license shall authorize its holder to

5 conduct gaming under this Act at its racetracks on the same

6 days of the year and hours of the day that owner licenses are

7 allowed to operate under approval of the Board.

8 A license to conduct electronic gaming and any renewal of

9 an electronic gaming license shall authorize electronic gaming

10 for a period of 4 years. The fee for the issuance or renewal of

11 an electronic gaming license shall be $100,000.

12 (d) To be eligible to conduct electronic gaming, a person

13 or entity having operating control of a race track must (i)

14 obtain an electronic gaming license, (ii) hold an organization

15 license under the Illinois Horse Racing Act of 1975, (iii) hold

16 an inter-track wagering license, (iv) pay an initial fee of

17 $30,000 per gaming position from electronic gaming licensees

18 where electronic gaming is conducted in Cook County and $17,500

19 for electronic gaming licensees where electronic gaming is

20 located outside of Cook County before beginning to conduct

21 electronic gaming plus make the reconciliation payment

22 required under subsection (i), (v) conduct at least 240 live

23 races at each track per year or for a licensee that is only

24 authorized 350 gaming positions pursuant to subsection (d) of

25 Section 7.7 of this Act, have a fully operational facility

26 running at least 96 live races over a period of at least 15

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1 days per year until such time as the total number of gaming

2 positions is increased to 900, (vi) meet the requirements of

3 subsection (a) of Section 56 of the Illinois Horse Racing Act

4 of 1975, (vii) for organization licensees conducting

5 standardbred race meetings that had an open backstretch in

6 2009, keep backstretch barns and dormitories open and

7 operational year-round unless a lesser schedule is mutually

8 agreed to by the organization licensee and the horsemen's

9 association racing at that organization licensee's race

10 meeting, (viii) for organization licensees conducting

11 thoroughbred race meetings, the organization licensee must

12 maintain accident medical expense liability insurance coverage

13 of $1,000,000 for jockeys, and (ix) meet all other requirements

14 of this Act that apply to owners licensees. Only those persons

15 or entities (or its successors or assigns) that had operating

16 control of a race track and held an inter-track wagering

17 license authorized by the Illinois Racing Board in 2009 are

18 eligible.

19 An electronic gaming licensee may enter into a joint

20 venture with a licensed owner to own, manage, conduct, or

21 otherwise operate the electronic gaming licensee's electronic

22 gaming facilities, unless the electronic gaming licensee has a

23 parent company or other affiliated company that is, directly or

24 indirectly, wholly owned by a parent company that is also

25 licensed to conduct electronic gaming, casino gaming, or their

26 equivalent in another state.

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1 All payments by licensees under this subsection (c) shall

2 be deposited into the Gaming Facilities Fee Revenue Fund.

3 (e) A person or entity is ineligible to receive an

4 electronic gaming license if:

5 (1) the person or entity has been convicted of a felony

6 under the laws of this State, any other state, or the

7 United States, including a conviction under the Racketeer

8 Influenced and Corrupt Organizations Act;

9 (2) the person or entity has been convicted of any

10 violation of Article 28 of the Criminal Code of 2012, or

11 substantially similar laws of any other jurisdiction;

12 (3) the person or entity has submitted an application

13 for a license under this Act that contains false

14 information;

15 (4) the person is a member of the Board;

16 (5) a person defined in (1), (2), (3), or (4) of this

17 subsection (e) is an officer, director, or managerial

18 employee of the entity;

19 (6) the person or entity employs a person defined in

20 (1), (2), (3), or (4) of this subsection (e) who

21 participates in the management or operation of gambling

22 operations authorized under this Act; or

23 (7) a license of the person or entity issued under this

24 Act or a license to own or operate gambling facilities in

25 any other jurisdiction has been revoked.

26 (f) The Board may approve electronic gaming positions

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1 statewide as provided in this Section. The authority to operate

2 electronic gaming positions under this Section shall be

3 allocated as follows: up to 1,200 gaming positions for any

4 electronic gaming licensee in Cook County whose electronic

5 gaming license originates with an organization licensee that

6 conducted live racing in calendar year 2016; up to 900 gaming

7 positions for any electronic gaming licensee outside of Cook

8 County whose electronic gaming license originates with an

9 organization licensee that conducted live racing in calendar

10 year 2016; and up to 350 gaming positions for any electronic

11 gaming licensee whose electronic gaming license originates

12 with an organization licensee that did not conduct live racing

13 in calendar year 2010, which shall increase to 900 gaming

14 positions in the calendar year following the year in which the

15 electronic gaming licensee conducts 96 live races.

16 (g) Each applicant for an electronic gaming license shall

17 specify in its application for licensure the number of gaming

18 positions it will operate, up to the applicable limitation set

19 forth in subsection (f) of this Section. Any unreserved gaming

20 positions that are not specified shall be forfeited and

21 retained by the Board. For the purposes of this subsection (g),

22 an electronic gaming licensee that did not conduct live racing

23 in 2010 may reserve up to 900 positions and shall not be

24 penalized under this Section for not operating those positions

25 until it meets the requirements of subsection (f) of this

26 Section, but such licensee shall not request unreserved gaming

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1 positions under this subsection (g) until its 900 positions are

2 all operational.

3 Thereafter, the Board shall publish the number of

4 unreserved electronic gaming positions and shall accept

5 requests for additional positions from any electronic gaming

6 licensee that initially reserved all of the positions that were

7 offered. The Board shall allocate expeditiously the unreserved

8 electronic gaming positions to requesting electronic gaming

9 licensees in a manner that maximizes revenue to the State. The

10 Board may allocate any such unused electronic gaming positions

11 pursuant to an open and competitive bidding process, as

12 provided under Section 7.5 of this Act. This process shall

13 continue until all unreserved gaming positions have been

14 purchased. All positions obtained pursuant to this process and

15 all positions the electronic gaming licensee specified it would

16 operate in its application must be in operation within 18

17 months after they were obtained or the electronic gaming

18 licensee forfeits the right to operate those positions, but is

19 not entitled to a refund of any fees paid. The Board may, after

20 holding a public hearing, grant extensions so long as the

21 electronic gaming licensee is working in good faith to make the

22 positions operational. The extension may be for a period of 6

23 months. If, after the period of the extension, the electronic

24 gaming licensee has not made the positions operational, then

25 another public hearing must be held by the Board before it may

26 grant another extension.

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1 Unreserved gaming positions retained from and allocated to

2 electronic gaming licensees by the Board pursuant to this

3 subsection (g) shall not be allocated to owners licensees

4 pursuant to subsection (h-10) of Section 7 of this Act.

5 For the purpose of this subsection (g), the unreserved

6 gaming positions for each electronic gaming licensee shall be

7 the applicable limitation set forth in subsection (f) of this

8 Section, less the number of reserved gaming positions by such

9 electronic gaming licensee, and the total unreserved gaming

10 positions shall be the aggregate of the unreserved gaming

11 positions for all electronic gaming licensees.

12 (h) Subject to the approval of the Illinois Gaming Board,

13 an electronic gaming licensee may make modification or

14 additions to any existing buildings and structures to comply

15 with the requirements of this Act. The Illinois Gaming Board

16 shall make its decision after consulting with the Illinois

17 Racing Board. In no case, however, shall the Illinois Gaming

18 Board approve any modification or addition that alters the

19 grounds of the organizational licensee such that the act of

20 live racing is an ancillary activity to electronic gaming.

21 Electronic gaming may take place in existing structures where

22 inter-track wagering is conducted at the race track or a

23 facility within 300 yards of the race track in accordance with

24 the provisions of this Act and the Illinois Horse Racing Act of

25 1975.

26 (i) An electronic gaming licensee may conduct electronic

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1 gaming at a temporary facility pending the construction of a

2 permanent facility or the remodeling or relocation of an

3 existing facility to accommodate electronic gaming

4 participants for up to 24 months after the temporary facility

5 begins to conduct electronic gaming. Upon request by an

6 electronic gaming licensee and upon a showing of good cause by

7 the electronic gaming licensee, the Board shall extend the

8 period during which the licensee may conduct electronic gaming

9 at a temporary facility by up to 12 months. The Board shall

10 make rules concerning the conduct of electronic gaming from

11 temporary facilities.

12 Electronic gaming may take place in existing structures

13 where inter-track wagering is conducted at the race track or a

14 facility within 300 yards of the race track in accordance with

15 the provisions of this Act and the Illinois Horse Racing Act of

16 1975.

17 (j) The Illinois Gaming Board must adopt emergency rules in

18 accordance with Section 5-45 of the Illinois Administrative

19 Procedure Act as necessary to ensure compliance with the

20 provisions of this amendatory Act of the 100th General Assembly

21 concerning electronic gaming. The adoption of emergency rules

22 authorized by this subsection (j) shall be deemed to be

23 necessary for the public interest, safety, and welfare.

24 (k) Each electronic gaming licensee who obtains electronic

25 gaming positions must make a reconciliation payment 3 years

26 after the date the electronic gaming licensee begins operating

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1 the positions in an amount equal to 75% of the difference

2 between its adjusted gross receipts from electronic gaming and

3 amounts paid to its purse accounts pursuant to item (1) of

4 subsection (b) of Section 56 of the Illinois Horse Racing Act

5 of 1975 for the 12-month period for which such difference was

6 the largest, minus an amount equal to the initial per position

7 fee paid by the electronic gaming licensee. If this calculation

8 results in a negative amount, then the electronic gaming

9 licensee is not entitled to any reimbursement of fees

10 previously paid. This reconciliation payment may be made in

11 installments over a period of no more than 2 years, subject to

12 Board approval. Any installment payments shall include an

13 annual market interest rate as determined by the Board.

14 All payments by licensees under this subsection (i) shall

15 be deposited into the Gaming Facilities Fee Revenue Fund.

16 (l) As soon as practical after a request is made by the

17 Illinois Gaming Board, to minimize duplicate submissions by the

18 applicant, the Illinois Racing Board must provide information

19 on an applicant for an electronic gaming license to the

20 Illinois Gaming Board.

21 (230 ILCS 10/7.8 new)

22 Sec. 7.8. Home rule. The regulation and licensing of

23 electronic gaming and electronic gaming licensees are

24 exclusive powers and functions of the State. A home rule unit

25 may not regulate or license electronic gaming or electronic

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1 gaming licensees. This Section is a denial and limitation of

2 home rule powers and functions under subsection (h) of Section

3 6 of Article VII of the Illinois Constitution.

4 (230 ILCS 10/7.9 new)

5 Sec. 7.9. Casino operator license.

6 (a) A qualified person may apply to the Board for a casino

7 operator license to operate and manage any gambling operation

8 conducted by the Authority. The application shall be made on

9 forms provided by the Board and shall contain such information

10 as the Board prescribes, including but not limited to

11 information required in Sections 6(a), (b), and (c) and

12 information relating to the applicant's proposed price to

13 manage the Authority's gambling operations and to provide the

14 casino, gambling equipment, and supplies necessary to conduct

15 Authority gambling operations. The application shall also

16 include a non-refundable application fee of $100,000. This

17 application fee shall be deposited into the Gaming Facilities

18 Fee Revenue Fund.

19 (b) A person or entity is ineligible to receive a casino

20 operator license if:

21 (1) the person has been convicted of a felony under the

22 laws of this State, any other state, or the United States;

23 (2) the person has been convicted of any violation of

24 Article 28 of the Criminal Code of 2012, or substantially

25 similar laws of any other jurisdiction;

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1 (3) the person has submitted an application for a

2 license under this Act or the Chicago Casino Development

3 Authority Act which contains false information;

4 (4) the person is a member of the Board or the Chicago

5 Casino Development Board or the person is an official or

6 employee of the Chicago Casino Development Authority or the

7 City of Chicago;

8 (5) a person defined in (1), (2), (3), or (4) is an

9 officer, director, or managerial employee of the entity;

10 (6) the entity employs a person defined in (1), (2),

11 (3), or (4) who participates in the management or operation

12 of gambling operations authorized under this Act; or

13 (7) a license of the person or entity issued under this

14 Act, or a license to own or operate gambling facilities in

15 any other jurisdiction, has been revoked.

16 (c) In determining whether to grant a casino operator

17 license, the Board shall consider:

18 (1) the character, reputation, experience and

19 financial integrity of the applicants and of any other or

20 separate person that either:

21 (A) controls, directly or indirectly, such

22 applicant, or

23 (B) is controlled, directly or indirectly, by such

24 applicant or by a person which controls, directly or

25 indirectly, such applicant;

26 (2) the facilities or proposed facilities for the

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1 conduct of gambling;

2 (3) the preference of the municipality in which the

3 licensee will operate;

4 (4) the extent to which the ownership of the applicant

5 reflects the diversity of the State by including minority

6 persons and females and the good faith affirmative action

7 plan of each applicant to recruit, train, and upgrade

8 minority persons and females in all employment

9 classifications;

10 (5) the financial ability of the applicant to purchase

11 and maintain adequate liability and casualty insurance;

12 (6) whether the applicant has adequate capitalization

13 to provide and maintain, for the duration of a license, a

14 casino; and

15 (7) the extent to which the applicant exceeds or meets

16 other standards for the issuance of a casino operator

17 license that the Board may adopt by rule.

18 (d) Each applicant shall submit with his or her

19 application, on forms prescribed by the Board, 2 sets of his or

20 her fingerprints. The Board shall charge each applicant a fee

21 set by the Department of State Police to defray the costs

22 associated with the search and classification of fingerprints

23 obtained by the Board with respect to the applicant's

24 application. This fee shall be paid into the State Police

25 Services Fund.

26 (e) A person who knowingly makes a false statement on an

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1 application is guilty of a Class A misdemeanor.

2 (f) The Board shall charge each applicant a non-refundable

3 fee of $50,000 to defray the costs associated with the

4 background investigation conducted by the Board. This fee shall

5 be exclusive of any other fee or fees charged in connection

6 with an application for and, if applicable, the issuance of, a

7 casino operator license. If the costs of the investigation

8 exceed $50,000, the Board shall immediately notify the

9 applicant of the additional amount owed, payment of which must

10 be submitted to the Board within 7 days after such

11 notification. All information, records, interviews, reports,

12 statements, memoranda, or other data supplied to or used by the

13 Board in the course of its review or investigation of an

14 application for a license or a renewal under this Act shall be

15 privileged and strictly confidential and shall be used only for

16 the purpose of evaluating an applicant for a license or a

17 renewal. Such information, records, interviews, reports,

18 statements, memoranda, or other data shall not be admissible as

19 evidence, nor discoverable in any action of any kind in any

20 court or before any tribunal, board, agency, or person, except

21 for any action deemed necessary by the Board.

22 (g) The casino operator license shall be issued only upon

23 proof that the applicant has entered into a labor peace

24 agreement with each labor organization that is actively engaged

25 in representing and attempting to represent casino and

26 hospitality industry workers in this State. The labor peace

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1 agreement must be a valid and enforceable agreement under 29

2 U.S.C. 185 that protects the city's and State's revenues from

3 the operation of the casino facility by prohibiting the labor

4 organization and its members from engaging in any picketing,

5 work stoppages, boycotts, or any other economic interference

6 with the casino facility for at least the first 5 years of the

7 casino license and must cover all operations at the casino

8 facility that are conducted by lessees or tenants or under

9 management agreements.

10 (h) The casino operator license shall be for a term of 4

11 years, shall be renewable by the Board, and shall contain such

12 terms and provisions as the Board deems necessary to protect or

13 enhance the credibility and integrity of State gambling

14 operations, achieve the highest prospective total revenue to

15 the State, and otherwise serve the interests of the citizens of

16 Illinois. The Board may suspend, restrict, or revoke the

17 license:

18 (1) for violation of any provision of this Act;

19 (2) for violation of any rules of the Board;

20 (3) for any cause which, if known to the Board, would

21 have disqualified the applicant from receiving the

22 license; or

23 (4) for any other just cause.

24 (230 ILCS 10/7.10 new)

25 Sec. 7.10. Diversity program.

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1 (a) Each owners licensee, electronic gaming licensee,

2 casino operator licensee, and suppliers licensee shall

3 establish and maintain a diversity program to ensure

4 non-discrimination in the award and administration of

5 contracts. The programs shall establish goals of awarding not

6 less than 20% of the annual dollar value of all contracts,

7 purchase orders, or other agreements to minority-owned

8 businesses and 5% of the annual dollar value of all contracts

9 to female-owned businesses.

10 (b) Each owners licensee, electronic gaming licensee,

11 casino operator licensee, and suppliers licensee shall

12 establish and maintain a diversity program designed to promote

13 equal opportunity for employment. The program shall establish

14 hiring goals as the Board and each licensee determines

15 appropriate. The Board shall monitor the progress of the gaming

16 licensee's progress with respect to the program's goals.

17 (c) No later than May 31 of each year, each licensee shall

18 report to the Board (1) the number of respective employees and

19 the number of its respective employees who have designated

20 themselves as members of a minority group and gender and (2)

21 the total goals achieved under subsection (a) of this Section

22 as a percentage of the total contracts awarded by the license.

23 In addition, all licensees shall submit a report with respect

24 to the minority-owned and female-owned businesses program

25 created in this Section to the Board.

26 (d) When considering whether to re-issue or renew a license

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1 to an owners licensee, electronic gaming licensee, casino

2 operator licensee, or suppliers licensee, the Board shall take

3 into account the licensee's success in complying with the

4 provisions of this Section. If an owners licensee, electronic

5 gaming licensee, casino operator licensee, or suppliers

6 licensee has not satisfied the goals contained in this Section,

7 the Board shall require a written explanation as to why the

8 licensee is not in compliance and shall require the licensee to

9 file multi-year metrics designed to achieve compliance with the

10 provisions by the next renewal period, consistent with State

11 and federal law.

12 (230 ILCS 10/7.11 new)

13 Sec. 7.11. Annual report on diversity.

14 (a) Each licensee that receives a license under Sections 7,

15 7.1, and 7.7 shall execute and file a report with the Board no

16 later than December 31 of each year that shall contain, but not

17 be limited to, the following information:

18 (i) a good faith affirmative action plan to recruit,

19 train, and upgrade minority persons, females, and persons

20 with a disability in all employment classifications;

21 (ii) the total dollar amount of contracts that were

22 awarded to businesses owned by minority persons, females,

23 and persons with a disability;

24 (iii) the total number of businesses owned by minority

25 persons, females, and persons with a disability that were

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1 utilized by the licensee;

2 (iv) the utilization of businesses owned by minority

3 persons, females, and persons with disabilities during the

4 preceding year; and

5 (v) the outreach efforts used by the licensee to

6 attract investors and businesses consisting of minority

7 persons, females, and persons with a disability.

8 (b) The Board shall forward a copy of each licensee's

9 annual reports to the General Assembly no later than February 1

10 of each year.

11 (230 ILCS 10/7.12 new)

12 Sec. 7.12. Issuance of new owners licenses.

13 (a) Except for the owners license issued to the Chicago

14 Casino Development Authority, owners licenses newly authorized

15 pursuant to this amendatory Act of the 100th General Assembly

16 may be issued by the Board to a qualified applicant pursuant to

17 an open and competitive bidding process, as set forth in

18 Section 7.5, and subject to the maximum number of authorized

19 licenses set forth in subsection (e-5) of Section 7 of this

20 Act.

21 (b) To be a qualified applicant, a person or entity may not

22 be ineligible to receive an owners license under subsection (a)

23 of Section 7 of this Act and must submit an application for an

24 owners license that complies with Section 6 of this Act.

25 (c) In determining whether to grant an owners license to an

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1 applicant, the Board shall consider all of the factors set

2 forth in subsections (b) and (e-10) of Section 7 of this Act,

3 as well as the amount of the applicant's license bid. The Board

4 may grant the owners license to an applicant that has not

5 submitted the highest license bid, but if it does not select

6 the highest bidder, the Board shall issue a written decision

7 explaining why another applicant was selected and identifying

8 the factors set forth in subsections (b) and (e-10) of Section

9 7 of this Act that favored the winning bidder.

10 (230 ILCS 10/7.13 new)

11 Sec. 7.13. Environmental standards. All permanent

12 casinos, riverboats, and electronic gaming facilities shall

13 consist of buildings that are certified as meeting the U.S.

14 Green Building Council's Leadership in Energy and

15 Environmental Design standards. The provisions of this Section

16 apply to a holder of an owners license, casino operator

17 license, or electronic gaming license that (i) begins

18 operations on or after January 1, 2017 or (ii) relocates its

19 facilities on or after the effective date of this amendatory

20 Act of the 100th General Assembly.

21 (230 ILCS 10/8) (from Ch. 120, par. 2408)

22 Sec. 8. Suppliers licenses.

23 (a) The Board may issue a suppliers license to such

24 persons, firms or corporations which apply therefor upon the

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1 payment of a non-refundable application fee set by the Board,

2 upon a determination by the Board that the applicant is

3 eligible for a suppliers license and upon payment of a $5,000

4 annual license fee.

5 (b) The holder of a suppliers license is authorized to sell

6 or lease, and to contract to sell or lease, gambling equipment

7 and supplies to any licensee involved in the ownership or

8 management of gambling operations.

9 (c) Gambling supplies and equipment may not be distributed

10 unless supplies and equipment conform to standards adopted by

11 rules of the Board.

12 (d) A person, firm or corporation is ineligible to receive

13 a suppliers license if:

14 (1) the person has been convicted of a felony under the

15 laws of this State, any other state, or the United States;

16 (2) the person has been convicted of any violation of

17 Article 28 of the Criminal Code of 1961 or the Criminal

18 Code of 2012, or substantially similar laws of any other

19 jurisdiction;

20 (3) the person has submitted an application for a

21 license under this Act which contains false information;

22 (4) the person is a member of the Board;

23 (5) the entity ~~firm or corporation~~ is one in which a

24 person defined in (1), (2), (3) or (4), is an officer,

25 director or managerial employee;

26 (6) the firm or corporation employs a person who

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1 participates in the management or operation of riverboat

2 gambling authorized under this Act or the Chicago Casino

3 Development Authority Act;

4 (7) the license of the person, firm or corporation

5 issued under this Actor the Chicago Casino Development

6 Authority Act, or a license to own or operate gambling

7 facilities in any other jurisdiction, has been revoked.

8 (e) Any person that supplies any equipment, devices, or

9 supplies to a licensed riverboat gambling operationor casino

10 or electronic gaming operationmust first obtain a suppliers

11 license. A supplier shall furnish to the Board a list of all

12 equipment, devices and supplies offered for sale or lease in

13 connection with gambling games authorized under this Act. A

14 supplier shall keep books and records for the furnishing of

15 equipment, devices and supplies to gambling operations

16 separate and distinct from any other business that the supplier

17 might operate. A supplier shall file a quarterly return with

18 the Board listing all sales and leases. A supplier shall

19 permanently affix its name or a distinctive logo or other mark

20 or design element identifying the manufacturer or supplier to

21 all its equipment, devices, and supplies, except gaming chips

22 without a value impressed, engraved, or imprinted on it, for

23 gambling operations. The Board may waive this requirement for

24 any specific product or products if it determines that the

25 requirement is not necessary to protect the integrity of the

26 game. Items purchased from a licensed supplier may continue to

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1 be used even though the supplier subsequently changes its name,

2 distinctive logo, or other mark or design element; undergoes a

3 change in ownership; or ceases to be licensed as a supplier for

4 any reason. Any supplier's equipment, devices or supplies which

5 are used by any person in an unauthorized gambling operation

6 shall be forfeited to the State. A holder of an owners license

7 or an electronic gaming license ~~A licensed owner~~ may own its

8 own equipment, devices and supplies. Each holder of an owners

9 license or an electronic gaming license under the Act shall

10 file an annual report listing its inventories of gambling

11 equipment, devices and supplies.

12 (f) Any person who knowingly makes a false statement on an

13 application is guilty of a Class A misdemeanor.

14 (g) Any gambling equipment, devices and supplies provided

15 by any licensed supplier may either be repaired on the

16 riverboat, in the casino, or at the electronic gaming facility

17 orremoved from the riverboat, casino, or electronic gaming

18 facility to a ~~an on-shore~~ facility owned by the holder of an

19 owners licenseor electronic gaming license for repair.

20 (Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;

21 98-756, eff. 7-16-14.)

22 (230 ILCS 10/9) (from Ch. 120, par. 2409)

23 Sec. 9. Occupational licenses.

24 (a) The Board may issue an occupational license to an

25 applicant upon the payment of a non-refundable fee set by the

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1 Board, upon a determination by the Board that the applicant is

2 eligible for an occupational license and upon payment of an

3 annual license fee in an amount to be established. To be

4 eligible for an occupational license, an applicant must:

5 (1) be at least 21 years of age if the applicant will

6 perform any function involved in gaming by patrons. Any

7 applicant seeking an occupational license for a non-gaming

8 function shall be at least 18 years of age;

9 (2) not have been convicted of a felony offense, a

10 violation of Article 28 of the Criminal Code of 1961 or the

11 Criminal Code of 2012, or a similar statute of any other

12 jurisdiction;

13 (2.5) not have been convicted of a crime, other than a

14 crime described in item (2) of this subsection (a),

15 involving dishonesty or moral turpitude, except that the

16 Board may, in its discretion, issue an occupational license

17 to a person who has been convicted of a crime described in

18 this item (2.5) more than 10 years prior to his or her

19 application and has not subsequently been convicted of any

20 other crime;

21 (3) have demonstrated a level of skill or knowledge

22 which the Board determines to be necessary in order to

23 operate gambling aboard a riverboat, in a casino, or at an

24 electronic gaming facility; and

25 (4) have met standards for the holding of an

26 occupational license as adopted by rules of the Board. Such

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1 rules shall provide that any person or entity seeking an

2 occupational license to manage gambling operationsunder

3 this Act or the Chicago Casino Development Authority Act

4 ~~hereunder~~ shall be subject to background inquiries and

5 further requirements similar to those required of

6 applicants for an owners license. Furthermore, such rules

7 shall provide that each such entity shall be permitted to

8 manage gambling operations for only one licensed owner.

9 (b) Each application for an occupational license shall be

10 on forms prescribed by the Board and shall contain all

11 information required by the Board. The applicant shall set

12 forth in the application: whether he has been issued prior

13 gambling related licenses; whether he has been licensed in any

14 other state under any other name, and, if so, such name and his

15 age; and whether or not a permit or license issued to him in

16 any other state has been suspended, restricted or revoked, and,

17 if so, for what period of time.

18 (c) Each applicant shall submit with his application, on

19 forms provided by the Board, 2 sets of his fingerprints. The

20 Board shall charge each applicant a fee set by the Department

21 of State Police to defray the costs associated with the search

22 and classification of fingerprints obtained by the Board with

23 respect to the applicant's application. These fees shall be

24 paid into the State Police Services Fund.

25 (d) The Board may in its discretion refuse an occupational

26 license to any person: (1) who is unqualified to perform the

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1 duties required of such applicant; (2) who fails to disclose or

2 states falsely any information called for in the application;

3 (3) who has been found guilty of a violation of this Actor the

4 Chicago Casino Development Authority Act or whose prior

5 gambling related license or application therefor has been

6 suspended, restricted, revoked or denied for just cause in any

7 other state; or (4) for any other just cause.

8 (e) The Board may suspend, revoke or restrict any

9 occupational licensee: (1) for violation of any provision of

10 this Act; (2) for violation of any of the rules and regulations

11 of the Board; (3) for any cause which, if known to the Board,

12 would have disqualified the applicant from receiving such

13 license; or (4) for default in the payment of any obligation or

14 debt due to the State of Illinois; or (5) for any other just

15 cause.

16 (f) A person who knowingly makes a false statement on an

17 application is guilty of a Class A misdemeanor.

18 (g) Any license issued pursuant to this Section shall be

19 valid for a period of one year from the date of issuance.

20 (h) Nothing in this Act shall be interpreted to prohibit a

21 licensed owneror electronic gaming licensee from entering into

22 an agreement with a public community college or a school

23 approved under the Private Business and Vocational Schools Act

24 of 2012 for the training of any occupational licensee. Any

25 training offered by such a school shall be in accordance with a

26 written agreement between the licensed owner or electronic

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1 gaming licensee and the school.

2 (i) Any training provided for occupational licensees may be

3 conducted eitherat the site of the gambling facility ~~on the~~

4 ~~riverboat~~ or at a school with which a licensed owner or

5 electronic gaming licenseehas entered into an agreement

6 pursuant to subsection (h).

7 (Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;

8 97-1150, eff. 1-25-13.)

9 (230 ILCS 10/11) (from Ch. 120, par. 2411)

10 Sec. 11. Conduct of gambling. Gambling may be conducted by

11 licensed owners or licensed managers on behalf of the State

12 aboard riverboats. Gambling may be conducted by electronic

13 gaming licensees at electronic gaming facilities. Gambling may

14 be conducted by a casino operator licensee at a casino.

15 Gambling authorized under this Section is ~~,~~subject to the

16 following standards:

17 (1) A licensee may conduct riverboat gambling

18 authorized under this Act regardless of whether it conducts

19 excursion cruises. A licensee may permit the continuous

20 ingress and egress of patrons ~~passengers~~ on a riverboat not

21 used for excursion cruises for the purpose of gambling.

22 Excursion cruises shall not exceed 4 hours for a round

23 trip. However, the Board may grant express approval for an

24 extended cruise on a case-by-case basis.

25 (2) (Blank).

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1 (3) Minimum and maximum wagers on games shall be set by

2 the licensee.

3 (4) Agents of the Board and the Department of State

4 Police may board and inspect any riverboat, enter and

5 inspect any portion of a casino, or enter and inspect any

6 portion of an electronic gaming facility at any time for

7 the purpose of determining whether this Actor the Chicago

8 Casino Development Authority Act is being complied with.

9 Every riverboat, if under way and being hailed by a law

10 enforcement officer or agent of the Board, must stop

11 immediately and lay to.

12 (5) Employees of the Board shall have the right to be

13 present on the riverboator in the casino or on adjacent

14 facilities under the control of the licensee and at the

15 electronic gaming facility under the control of the

16 electronic gaming licensee.

17 (6) Gambling equipment and supplies customarily used

18 in conducting riverboator casino gambling or electronic

19 gaming must be purchased or leased only from suppliers

20 licensed for such purpose under this Act. The Board may

21 approve the transfer, sale, or lease of gambling equipment

22 and supplies by a licensed owner from or to an affiliate of

23 the licensed owner as long as the gambling equipment and

24 supplies were initially acquired from a supplier licensed

25 in Illinois.

26 (7) Persons licensed under this Act or the Chicago

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1 Casino Development Authority Act shall permit no form of

2 wagering on gambling games except as permitted by this Act.

3 (8) Wagers may be received only from a person present

4 on a licensed riverboat, in a casino, or at an electronic

5 gaming facility. No person present on a licensed riverboat,

6 in a casino, or at an electronic gaming facility shall

7 place or attempt to place a wager on behalf of another

8 person who is not present on the riverboat, in a casino, or

9 at the electronic gaming facility.

10 (9) Wagering, including electronic gaming, shall not

11 be conducted with money or other negotiable currency.

12 (10) A person under age 21 shall not be permitted on an

13 area of a riverboator casino where gambling is being

14 conducted or at an electronic gaming facility where

15 gambling is being conducted, except for a person at least

16 18 years of age who is an employee of the riverboat or

17 casino gambling operation or electronic gaming operation.

18 No employee under age 21 shall perform any function

19 involved in gambling by the patrons. No person under age 21

20 shall be permitted to make a wager under this Actor the

21 Chicago Casino Development Authority Act, and any winnings

22 that are a result of a wager by a person under age 21,

23 whether or not paid by a licensee, shall be treated as

24 winnings for the privilege tax purposes, confiscated, and

25 forfeited to the State and deposited into the Education

26 Assistance Fund.

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1 (11) Gambling excursion cruises are permitted only

2 when the waterway for which the riverboat is licensed is

3 navigable, as determined by the Board in consultation with

4 the U.S. Army Corps of Engineers. This paragraph (11) does

5 not limit the ability of a licensee to conduct gambling

6 authorized under this Act when gambling excursion cruises

7 are not permitted.

8 (12) All tokens, chips or electronic cards used to make

9 wagers must be purchased(i) from a licensed owner or

10 manager, in the case of a riverboat, either aboard a

11 riverboat or at an onshore facility which has been approved

12 by the Board and which is located where the riverboat

13 docks, (ii) in the case of a casino, from a licensed owner

14 or licensed casino operator at the casino, or (iii) from an

15 electronic gaming licensee at the electronic gaming

16 facility. The tokens, chips or electronic cards may be

17 purchased by means of an agreement under which the owner,

18 ~~or~~ manager, or licensed casino operatorextends credit to

19 the patron. Such tokens, chips or electronic cards may be

20 used while aboard the riverboat, in the casino, or at the

21 electronic gaming facility only for the purpose of making

22 wagers on gambling games.

23 (13) Notwithstanding any other Section of this Act or

24 the Chicago Casino Development Authority Act, in addition

25 to the other licenses authorized under this Actor the

26 Chicago Casino Development Authority Act, the Board may

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1 issue special event licenses allowing persons who are not

2 otherwise licensed to conduct riverboat gambling to

3 conduct such gambling on a specified date or series of

4 dates. Riverboat gambling under such a license may take

5 place on a riverboat not normally used for riverboat

6 gambling. The Board shall establish standards, fees and

7 fines for, and limitations upon, such licenses, which may

8 differ from the standards, fees, fines and limitations

9 otherwise applicable under this Act or the Chicago Casino

10 Development Authority Act. All such fees shall be deposited

11 into the State Gaming Fund. All such fines shall be

12 deposited into the Education Assistance Fund, created by

13 Public Act 86-0018, of the State of Illinois.

14 (14) In addition to the above, gambling must be

15 conducted in accordance with all rules adopted by the

16 Board.

17 (Source: P.A. 96-1392, eff. 1-1-11.)

18 (230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)

19 Sec. 11.1. Collection of amounts owing under credit

20 agreements. Notwithstanding any applicable statutory provision

21 to the contrary, a licensed owner, licensed ~~or~~ manager,

22 licensed casino operator, or electronic gaming licensee who

23 extends credit to a ~~riverboat~~ gambling patron or an electronic

24 gaming patronpursuant to Section 11 (a) (12) of this Act is

25 expressly authorized to institute a cause of action to collect

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1 any amounts due and owing under the extension of credit, as

2 well as the licensed owner's, licensed ~~or~~ manager's, licensed

3 casino operator's, or electronic gaming licensee's costs,

4 expenses and reasonable attorney's fees incurred in

5 collection.

6 (Source: P.A. 93-28, eff. 6-20-03.)

7 (230 ILCS 10/12) (from Ch. 120, par. 2412)

8 Sec. 12. Admission tax; fees.

9 (a) A tax is hereby imposed upon admissions to riverboat

10 and casino gambling facilities ~~riverboats~~operated by licensed

11 owners authorized pursuant to this Act and the Chicago Casino

12 Development Authority Act. Until July 1, 2002, the rate is $2

13 per person admitted. From July 1, 2002 until July 1, 2003, the

14 rate is $3 per person admitted. From July 1, 2003 until August

15 23, 2005 (the effective date of Public Act 94-673), for a

16 licensee that admitted 1,000,000 persons or fewer in the

17 previous calendar year, the rate is $3 per person admitted; for

18 a licensee that admitted more than 1,000,000 but no more than

19 2,300,000 persons in the previous calendar year, the rate is $4

20 per person admitted; and for a licensee that admitted more than

21 2,300,000 persons in the previous calendar year, the rate is $5

22 per person admitted. Beginning on August 23, 2005 (the

23 effective date of Public Act 94-673), for a licensee that

24 admitted 1,000,000 persons or fewer in calendar year 2004, the

25 rate is $2 per person admitted, and for all other licensees,

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1 including licensees that were not conducting gambling

2 operations in 2004, the rate is $3 per person admitted. This

3 admission tax is imposed upon the licensed owner conducting

4 gambling.

5 (1) The admission tax shall be paid for each admission,

6 except that a person who exits a riverboat gambling

7 facility and reenters that riverboat gambling facility

8 within the same gaming day shall be subject only to the

9 initial admission tax.

10 (2) (Blank).

11 (3) The riverboat licensee may issue tax-free passes to

12 actual and necessary officials and employees of the

13 licensee or other persons actually working on the

14 riverboat.

15 (4) The number and issuance of tax-free passes is

16 subject to the rules of the Board, and a list of all

17 persons to whom the tax-free passes are issued shall be

18 filed with the Board.

19 (a-5) A fee is hereby imposed upon admissions operated by

20 licensed managers on behalf of the State pursuant to Section

21 7.3 at the rates provided in this subsection (a-5). For a

22 licensee that admitted 1,000,000 persons or fewer in the

23 previous calendar year, the rate is $3 per person admitted; for

24 a licensee that admitted more than 1,000,000 but no more than

25 2,300,000 persons in the previous calendar year, the rate is $4

26 per person admitted; and for a licensee that admitted more than

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1 2,300,000 persons in the previous calendar year, the rate is $5

2 per person admitted.

3 (1) The admission fee shall be paid for each admission.

4 (2) (Blank).

5 (3) The licensed manager may issue fee-free passes to

6 actual and necessary officials and employees of the manager

7 or other persons actually working on the riverboat.

8 (4) The number and issuance of fee-free passes is

9 subject to the rules of the Board, and a list of all

10 persons to whom the fee-free passes are issued shall be

11 filed with the Board.

12 (b) Except as provided in subsection (b-5), from ~~From~~ the

13 tax imposed under subsection (a) and the fee imposed under

14 subsection (a-5), a municipality shall receive from the State

15 $1 for each person embarking on a riverboat docked within the

16 municipality or entering a casino located within the

17 municipality, and a county shall receive $1 for each person

18 entering a casino orembarking on a riverboat docked within the

19 county but outside the boundaries of any municipality. The

20 municipality's or county's share shall be collected by the

21 Board on behalf of the State and remitted quarterly by the

22 State, subject to appropriation, to the treasurer of the unit

23 of local government for deposit in the general fund.

24 (b-5) From the tax imposed under subsection (a) and the fee

25 imposed under subsection (a-5), $1 for each person embarking on

26 a riverboat designated in paragraph (4) of subsection (e-5) of

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1 Section 7 shall be divided as follows: $0.70 to the City of

2 Rockford, $0.05 to the City of Loves Park, $0.05 to the Village

3 of Machesney Park, and $0.20 to Winnebago County.

4 The municipality's or county's share shall be collected by

5 the Board on behalf of the State and remitted monthly by the

6 State, subject to appropriation, to the treasurer of the unit

7 of local government for deposit in the general fund.

8 (c) The licensed owner shall pay the entire admission tax

9 to the Board and the licensed manageror the casino operator

10 licenseeshall pay the entire admission fee to the Board. Such

11 payments shall be made daily. Accompanying each payment shall

12 be a return on forms provided by the Board which shall include

13 other information regarding admissions as the Board may

14 require. Failure to submit either the payment or the return

15 within the specified time may result in suspension or

16 revocation of the owners or managers license.

17 (c-5) A tax is imposed on admissions to electronic gaming

18 facilities at the rate of $3 per person admitted by an

19 electronic gaming licensee. The tax is imposed upon the

20 electronic gaming licensee.

21 (1) The admission tax shall be paid for each admission,

22 except that a person who exits an electronic gaming

23 facility and reenters that electronic gaming facility

24 within the same gaming day, as the term "gaming day" is

25 defined by the Board by rule, shall be subject only to the

26 initial admission tax. The Board shall establish, by rule,

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1 a procedure to determine whether a person admitted to an

2 electronic gaming facility has paid the admission tax.

3 (2) An electronic gaming licensee may issue tax-free

4 passes to actual and necessary officials and employees of

5 the licensee and other persons associated with electronic

6 gaming operations.

7 (3) The number and issuance of tax-free passes is

8 subject to the rules of the Board, and a list of all

9 persons to whom the tax-free passes are issued shall be

10 filed with the Board.

11 (4) The electronic gaming licensee shall pay the entire

12 admission tax to the Board.

13 Such payments shall be made daily. Accompanying each

14 payment shall be a return on forms provided by the Board, which

15 shall include other information regarding admission as the

16 Board may require. Failure to submit either the payment or the

17 return within the specified time may result in suspension or

18 revocation of the electronic gaming license.

19 From the tax imposed under this subsection (c-5), a

20 municipality other than the Village of Stickney or the City of

21 Collinsville in which an electronic gaming facility is located,

22 or if the electronic gaming facility is not located within a

23 municipality, then the county in which the electronic gaming

24 facility is located, except as otherwise provided in this

25 Section, shall receive, subject to appropriation, $1 for each

26 person who enters the electronic gaming facility. For each

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1 admission to the electronic gaming facility in excess of

2 1,500,000 in a year, from the tax imposed under this subsection

3 (c-5), the county in which the electronic gaming facility is

4 located shall receive, subject to appropriation, $0.30, which

5 shall be in addition to any other moneys paid to the county

6 under this Section.

7 From the tax imposed under this subsection (c-5) on an

8 electronic gaming facility located in the Village of Stickney,

9 $1 for each person who enters the electronic gaming facility

10 shall be distributed as follows, subject to appropriation:

11 $0.24 to the Village of Stickney, $0.49 to the Town of Cicero,

12 $0.05 to the City of Berwyn, and $0.17 to the Stickney Public

13 Health District, and $0.05 to the City of Bridgeview.

14 From the tax imposed under this subsection (c-5) on an

15 electronic gaming facility located in the City of Collinsville,

16 $1 for each person who enters the electronic gaming facility

17 shall be distributed as follows, subject to appropriation:

18 $0.45 to the City of Alton, $0.45 to the City of East St.

19 Louis, and $0.10 to the City of Collinsville.

20 After payments required under this subsection (c-5) have

21 been made, all remaining amounts shall be deposited into the

22 Education Assistance Fund.

23 (d) The Board shall administer and collect the admission

24 tax imposed by this Section, to the extent practicable, in a

25 manner consistent with the provisions of Sections 4, 5, 5a, 5b,

26 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the

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1 Retailers' Occupation Tax Act and Section 3-7 of the Uniform

2 Penalty and Interest Act.

3 (Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)

4 (230 ILCS 10/13) (from Ch. 120, par. 2413)

5 Sec. 13. Wagering tax; rate; distribution.

6 (a) Until January 1, 1998, a tax is imposed on the adjusted

7 gross receipts received from gambling games authorized under

8 this Act at the rate of 20%.

9 (a-1) From January 1, 1998 until July 1, 2002, a privilege

10 tax is imposed on persons engaged in the business of conducting

11 riverboat gambling operations, based on the adjusted gross

12 receipts received by a licensed owner from gambling games

13 authorized under this Act at the following rates:

14 15% of annual adjusted gross receipts up to and

15 including $25,000,000;

16 20% of annual adjusted gross receipts in excess of

17 $25,000,000 but not exceeding $50,000,000;

18 25% of annual adjusted gross receipts in excess of

19 $50,000,000 but not exceeding $75,000,000;

20 30% of annual adjusted gross receipts in excess of

21 $75,000,000 but not exceeding $100,000,000;

22 35% of annual adjusted gross receipts in excess of

23 $100,000,000.

24 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax

25 is imposed on persons engaged in the business of conducting

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1 riverboat gambling operations, other than licensed managers

2 conducting riverboat gambling operations on behalf of the

3 State, based on the adjusted gross receipts received by a

4 licensed owner from gambling games authorized under this Act at

5 the following rates:

6 15% of annual adjusted gross receipts up to and

7 including $25,000,000;

8 22.5% of annual adjusted gross receipts in excess of

9 $25,000,000 but not exceeding $50,000,000;

10 27.5% of annual adjusted gross receipts in excess of

11 $50,000,000 but not exceeding $75,000,000;

12 32.5% of annual adjusted gross receipts in excess of

13 $75,000,000 but not exceeding $100,000,000;

14 37.5% of annual adjusted gross receipts in excess of

15 $100,000,000 but not exceeding $150,000,000;

16 45% of annual adjusted gross receipts in excess of

17 $150,000,000 but not exceeding $200,000,000;

18 50% of annual adjusted gross receipts in excess of

19 $200,000,000.

20 (a-3) Beginning July 1, 2003, a privilege tax is imposed on

21 persons engaged in the business of conducting riverboat

22 gambling operations, other than licensed managers conducting

23 riverboat gambling operations on behalf of the State, based on

24 the adjusted gross receipts received by a licensed owner from

25 gambling games authorized under this Act at the following

26 rates:

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1 15% of annual adjusted gross receipts up to and

2 including $25,000,000;

3 27.5% of annual adjusted gross receipts in excess of

4 $25,000,000 but not exceeding $37,500,000;

5 32.5% of annual adjusted gross receipts in excess of

6 $37,500,000 but not exceeding $50,000,000;

7 37.5% of annual adjusted gross receipts in excess of

8 $50,000,000 but not exceeding $75,000,000;

9 45% of annual adjusted gross receipts in excess of

10 $75,000,000 but not exceeding $100,000,000;

11 50% of annual adjusted gross receipts in excess of

12 $100,000,000 but not exceeding $250,000,000;

13 70% of annual adjusted gross receipts in excess of

14 $250,000,000.

15 An amount equal to the amount of wagering taxes collected

16 under this subsection (a-3) that are in addition to the amount

17 of wagering taxes that would have been collected if the

18 wagering tax rates under subsection (a-2) were in effect shall

19 be paid into the Common School Fund.

20 The privilege tax imposed under this subsection (a-3) shall

21 no longer be imposed beginning on the earlier of (i) July 1,

22 2005; (ii) the first date after June 20, 2003 that riverboat

23 gambling operations are conducted pursuant to a dormant

24 license; or (iii) the first day that riverboat gambling

25 operations are conducted under the authority of an owners

26 license that is in addition to the 10 owners licenses initially

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1 authorized under this Act. For the purposes of this subsection

2 (a-3), the term "dormant license" means an owners license that

3 is authorized by this Act under which no riverboat gambling

4 operations are being conducted on June 20, 2003.

5 (a-4) Beginning on the first day on which the tax imposed

6 under subsection (a-3) is no longer imposedand ending upon the

7 imposition of the privilege tax under subsection (a-5) of this

8 Section, a privilege tax is imposed on persons engaged in the

9 business of conducting riverboat or casino gambling or

10 electronic gamingoperations, other than licensed managers

11 conducting riverboat gambling operations on behalf of the

12 State, based on the adjusted gross receipts received by a

13 licensed owner from gambling games authorized under this Act at

14 the following rates:

15 15% of annual adjusted gross receipts up to and

16 including $25,000,000;

17 22.5% of annual adjusted gross receipts in excess of

18 $25,000,000 but not exceeding $50,000,000;

19 27.5% of annual adjusted gross receipts in excess of

20 $50,000,000 but not exceeding $75,000,000;

21 32.5% of annual adjusted gross receipts in excess of

22 $75,000,000 but not exceeding $100,000,000;

23 37.5% of annual adjusted gross receipts in excess of

24 $100,000,000 but not exceeding $150,000,000;

25 45% of annual adjusted gross receipts in excess of

26 $150,000,000 but not exceeding $200,000,000;

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1 50% of annual adjusted gross receipts in excess of

2 $200,000,000.

3 For the imposition of the privilege tax in this subsection

4 (a-4), amounts paid pursuant to item (1) of subsection (b) of

5 Section 56 of the Illinois Horse Racing Act of 1975 shall not

6 be included in the determination of adjusted gross receipts.

7 (a-5) Beginning in the fiscal year following the opening of

8 the casino at which gambling operations are conducted pursuant

9 to the Chicago Casino Development Authority Act, but not before

10 July 1, 2019, a privilege tax is imposed on persons engaged in

11 the business of conducting riverboat or casino gambling or

12 electronic gaming operations, other than licensed managers

13 conducting riverboat gambling operations on behalf of the

14 State, based on the adjusted gross receipts received by such

15 licensee from the gambling games authorized under this Act and

16 the Chicago Casino Development Authority Act. The privilege tax

17 for all gambling games other than table games, including, but

18 not limited to, slot machines, video game of chance gambling,

19 and electronic gambling games shall be at the following rates:

20 10% of annual adjusted gross receipts up to and

21 including $25,000,000;

22 17.5% of annual adjusted gross receipts in excess of

23 $25,000,000 but not exceeding $50,000,000;

24 22.5% of annual adjusted gross receipts in excess of

25 $50,000,000 but not exceeding $75,000,000;

26 27.5% of annual adjusted gross receipts in excess of

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1 $75,000,000 but not exceeding $100,000,000;

2 32.5% of annual adjusted gross receipts in excess of

3 $100,000,000 but not exceeding $150,000,000;

4 35% of annual adjusted gross receipts in excess of

5 $150,000,000 but not exceeding $200,000,000;

6 40% of annual adjusted gross receipts in excess of

7 $200,000,000 but not exceeding $300,000,000;

8 30% of annual adjusted gross receipts in excess of

9 $300,000,000 but not exceeding $350,000,000;

10 20% of annual adjusted gross receipts in excess of

11 $350,000,000, but not exceeding $800,000,000;

12 50% of annual adjusted gross receipts in excess of

13 $800,000,000.

14 The privilege tax for table games shall be at the following

15 rates:

16 10% of annual adjusted gross receipts up to and

17 including $25,000,000;

18 17.5% of annual adjusted gross receipts in excess of

19 $25,000,000 but not exceeding $50,000,000;

20 22.5% of annual adjusted gross receipts in excess of

21 $50,000,000 but not exceeding $70,000,000;

22 16% of annual adjusted gross receipts in excess of

23 $70,000,000.

24 For the imposition of the privilege tax in this subsection

25 (a-5), amounts paid pursuant to item (1) of subsection (b) of

26 Section 56 of the Illinois Horse Racing Act of 1975 shall not

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1 be included in the determination of adjusted gross receipts.

2 (a-6) From the effective date of this amendatory Act of the

3 100th General Assembly until June 30, 2021, an owners licensee

4 that conducted gambling operations prior to January 1, 2011

5 shall receive a dollar-for-dollar credit against the tax

6 imposed under this Section for any renovation or construction

7 costs paid by the owners licensee, but in no event shall the

8 credit exceed $2,000,000.

9 Additionally, from the effective date of this amendatory

10 Act of the 100th General Assembly until December 31, 2020, an

11 owners licensee that (i) is located within 15 miles of the

12 Missouri border, and (ii) has at least 3 riverboats, casinos,

13 or their equivalent within a 45-mile radius, may be authorized

14 to relocate to a new location with the approval of both the

15 unit of local government designated as the home dock and the

16 Board, so long as the new location is within the same unit of

17 local government and no more than 3 miles away from its

18 original location. Such owners licensee shall receive a credit

19 against the tax imposed under this Section equal to 8% of the

20 total project costs, as approved by the Board, for any

21 renovation or construction costs paid by the owners licensee

22 for the construction of the new facility, provided that the new

23 facility is operational by July 1, 2020. In determining whether

24 or not to approve a relocation, the Board must consider the

25 extent to which the relocation will diminish the gaming

26 revenues received by other Illinois gaming facilities.

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1 (a-8) Riverboat gambling operations conducted by a

2 licensed manager on behalf of the State are not subject to the

3 tax imposed under this Section.

4 (a-9) Beginning on January 1, 2018, the calculation of

5 gross receipts or adjusted gross receipts, for the purposes of

6 this Section, for a riverboat, casino, or electronic gaming

7 facility shall not include the dollar amount of non-cashable

8 vouchers, coupons, and electronic promotions redeemed by

9 wagerers upon the riverboat, in the casino, or in the

10 electronic gaming facility up to and including an amount not to

11 exceed 30% of a riverboat casino or electronic gaming

12 facility's adjusted gross receipts.

13 The Illinois Gaming Board shall submit to the General

14 Assembly a comprehensive report no later than March 31, 2021

15 detailing, at a minimum, the effect of removing non-cashable

16 vouchers, coupons, and electronic promotions from this

17 calculation on net gaming revenues to the State in calendar

18 years 2018 through 2020, the increase or reduction in wagerers

19 as a result of removing non-cashable vouchers, coupons, and

20 electronic promotions from this calculation, the effect of the

21 tax rates in subsection (a-5) on net gaming revenues to the

22 State, and proposed modifications to the calculation.

23 (a-10) The taxes imposed by this Section shall be paid by

24 the licensed owneror the electronic gaming licensee to the

25 Board not later than 5:00 o'clock p.m. of the day after the day

26 when the wagers were made.

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1 (a-15) If the privilege tax imposed under subsection (a-3)

2 is no longer imposed pursuant to item (i) of the last paragraph

3 of subsection (a-3), then by June 15 of each year, each owners

4 licensee, other than an owners licensee that admitted 1,000,000

5 persons or fewer in calendar year 2004, must, in addition to

6 the payment of all amounts otherwise due under this Section,

7 pay to the Board a reconciliation payment in the amount, if

8 any, by which the licensed owner's base amount exceeds the

9 amount of net privilege tax paid by the licensed owner to the

10 Board in the then current State fiscal year. A licensed owner's

11 net privilege tax obligation due for the balance of the State

12 fiscal year shall be reduced up to the total of the amount paid

13 by the licensed owner in its June 15 reconciliation payment.

14 The obligation imposed by this subsection (a-15) is binding on

15 any person, firm, corporation, or other entity that acquires an

16 ownership interest in any such owners license. The obligation

17 imposed under this subsection (a-15) terminates on the earliest

18 of: (i) July 1, 2007, (ii) the first day after the effective

19 date of this amendatory Act of the 94th General Assembly that

20 riverboat gambling operations are conducted pursuant to a

21 dormant license, (iii) the first day that riverboat gambling

22 operations are conducted under the authority of an owners

23 license that is in addition to the 10 owners licenses initially

24 authorized under this Act, or (iv) the first day that a

25 licensee under the Illinois Horse Racing Act of 1975 conducts

26 gaming operations with slot machines or other electronic gaming

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1 devices. The Board must reduce the obligation imposed under

2 this subsection (a-15) by an amount the Board deems reasonable

3 for any of the following reasons: (A) an act or acts of God,

4 (B) an act of bioterrorism or terrorism or a bioterrorism or

5 terrorism threat that was investigated by a law enforcement

6 agency, or (C) a condition beyond the control of the owners

7 licensee that does not result from any act or omission by the

8 owners licensee or any of its agents and that poses a hazardous

9 threat to the health and safety of patrons. If an owners

10 licensee pays an amount in excess of its liability under this

11 Section, the Board shall apply the overpayment to future

12 payments required under this Section.

13 For purposes of this subsection (a-15):

14 "Act of God" means an incident caused by the operation of

15 an extraordinary force that cannot be foreseen, that cannot be

16 avoided by the exercise of due care, and for which no person

17 can be held liable.

18 "Base amount" means the following:

19 For a riverboat in Alton, $31,000,000.

20 For a riverboat in East Peoria, $43,000,000.

21 For the Empress riverboat in Joliet, $86,000,000.

22 For a riverboat in Metropolis, $45,000,000.

23 For the Harrah's riverboat in Joliet, $114,000,000.

24 For a riverboat in Aurora, $86,000,000.

25 For a riverboat in East St. Louis, $48,500,000.

26 For a riverboat in Elgin, $198,000,000.

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1 "Dormant license" has the meaning ascribed to it in

2 subsection (a-3).

3 "Net privilege tax" means all privilege taxes paid by a

4 licensed owner to the Board under this Section, less all

5 payments made from the State Gaming Fund pursuant to subsection

6 (b) of this Section.

7 The changes made to this subsection (a-15) by Public Act

8 94-839 are intended to restate and clarify the intent of Public

9 Act 94-673 with respect to the amount of the payments required

10 to be made under this subsection by an owners licensee to the

11 Board.

12 (b) Until January 1, 1998, 25% of the tax revenue deposited

13 in the State Gaming Fund under this Section shall be paid,

14 subject to appropriation by the General Assembly, to the unit

15 of local government which is designated as the home dock of the

16 riverboat. Beginning January 1, 1998, from the tax revenue from

17 riverboat or casino gamblingdeposited in the State Gaming Fund

18 under this Section, an amount equal to 5% of adjusted gross

19 receipts generated by a riverboat or a casino other than a

20 riverboat designated in paragraph (3) or (4) of subsection

21 (e-5) of Section 7,shall be paid monthly, subject to

22 appropriation by the General Assembly, to the unit of local

23 government in which the casino is located orthat is designated

24 as the home dock of the riverboat. From the tax revenue

25 deposited in the State Gaming Fund pursuant to riverboat or

26 casinogambling operations conducted by a licensed manager on

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1 behalf of the State, an amount equal to 5% of adjusted gross

2 receipts generated pursuant to those riverboat or casino

3 gambling operations shall be paid monthly, subject to

4 appropriation by the General Assembly, to the unit of local

5 government that is designated as the home dock of the riverboat

6 upon which those riverboat gambling operations are conductedor

7 in which the casino is located. From the tax revenue from

8 riverboat or casino gambling deposited in the State Gaming Fund

9 under this Section, an amount equal to 5% of the adjusted gross

10 receipts generated by a riverboat designated in paragraph (3)

11 of subsection (e-5) of Section 7 shall be divided and remitted

12 monthly, subject to appropriation, as follows: 50% to Waukegan,

13 25% to Park City, and 25% to North Chicago. From the tax

14 revenue from riverboat or casino gambling deposited in the

15 State Gaming Fund under this Section, an amount equal to 5% of

16 the adjusted gross receipts generated by a riverboat designated

17 in paragraph (4) of subsection (e-5) of Section 7 shall be

18 remitted monthly, subject to appropriation, as follows: 70% to

19 the City of Rockford, 5% to the City of Loves Park, 5% to the

20 Village of Machesney, and 20% to Winnebago County. Units of

21 local government may refund any portion of the payment that

22 they receive pursuant to this subsection (b) to the riverboat

23 or casino.

24 (b-5) Beginning on the effective date of this amendatory

25 Act of the 100th General Assembly, from the tax revenue

26 deposited in the State Gaming Fund under this Section, an

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1 amount equal to 3% of adjusted gross receipts generated by each

2 electronic gaming facility located outside Madison County

3 shall be paid monthly, subject to appropriation by the General

4 Assembly, to a municipality other than the Village of Stickney

5 in which each electronic gaming facility is located or, if the

6 electronic gaming facility is not located within a

7 municipality, to the county in which the electronic gaming

8 facility is located, except as otherwise provided in this

9 Section. From the tax revenue deposited in the State Gaming

10 Fund under this Section, an amount equal to 3% of adjusted

11 gross receipts generated by an electronic gaming facility

12 located in the Village of Stickney shall be paid monthly,

13 subject to appropriation by the General Assembly, as follows:

14 25% to the Village of Stickney, 5% to the City of Berwyn, 50%

15 to the Town of Cicero, and 20% to the Stickney Public Health

16 District.

17 From the tax revenue deposited in the State Gaming Fund

18 under this Section, an amount equal to 5% of adjusted gross

19 receipts generated by an electronic gaming facility located in

20 the City of Collinsville shall be paid monthly, subject to

21 appropriation by the General Assembly, as follows: 45% to the

22 City of Alton, 45% to the City of East St. Louis, and 10% to the

23 City of Collinsville.

24 Municipalities and counties may refund any portion of the

25 payment that they receive pursuant to this subsection (b-5) to

26 the electronic gaming facility.

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1 (b-6) Beginning on the effective date of this amendatory

2 Act of the 100th General Assembly, from the tax revenue

3 deposited in the State Gaming Fund under this Section, an

4 amount equal to 2% of adjusted gross receipts generated by an

5 electronic gaming facility located outside Madison County

6 shall be paid monthly, subject to appropriation by the General

7 Assembly, to the county in which the electronic gaming facility

8 is located for the purposes of its criminal justice system or

9 health care system.

10 Counties may refund any portion of the payment that they

11 receive pursuant to this subsection (b-6) to the electronic

12 gaming facility.

13 (c) Appropriations, as approved by the General Assembly,

14 may be made from the State Gaming Fund to the Board (i) for the

15 administration and enforcement of this Act, the Chicago Casino

16 Development Authority Act, and the Video Gaming Act, (ii) for

17 distribution to the Department of State Police and to the

18 Department of Revenue for the enforcement of this Act, the

19 Chicago Casino Development Authority Act, and the Video Gaming

20 Act, and (iii) to the Department of Human Services for the

21 administration of programs to treat problem gambling.The

22 Board's annual appropriations request must separately state

23 its funding needs for the regulation of electronic gaming,

24 riverboat gaming, casino gaming within the City of Chicago, and

25 video gaming. From the tax revenue deposited in the Gaming

26 Facilities Fee Revenue Fund, the first $50,000,000 shall be

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1 paid to the Board, subject to appropriation, for the

2 administration and enforcement of the provisions of this

3 amendatory Act of the 100th General Assembly.

4 (c-3) Appropriations, as approved by the General Assembly,

5 may be made from the tax revenue deposited into the State

6 Gaming Fund from electronic gaming pursuant to this Section for

7 the administration and enforcement of this Act.

8 (c-4) After payments required under subsections (b),

9 (b-5), (b-6), (c), and (c-3) have been made from the tax

10 revenue from electronic gaming deposited into the State Gaming

11 Fund under this Section, all remaining amounts from electronic

12 gaming shall be deposited into the Education Assistance Fund.

13 (c-5) Before May 26, 2006 (the effective date of Public Act

14 94-804) and beginning on the effective date of this amendatory

15 Act of the 95th General Assembly, unless any organization

16 licensee under the Illinois Horse Racing Act of 1975 begins to

17 operate a slot machine or video game of chance under the

18 Illinois Horse Racing Act of 1975 or this Act, after the

19 payments required under subsections (b) and (c) have been made,

20 an amount equal to 15% of the adjusted gross receipts of (1) an

21 owners licensee that relocates pursuant to Section 11.2, (2) an

22 owners licensee conducting riverboat gambling operations

23 pursuant to an owners license that is initially issued after

24 June 25, 1999, or (3) the first riverboat gambling operations

25 conducted by a licensed manager on behalf of the State under

26 Section 7.3, whichever comes first, shall be paid from the

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1 State Gaming Fund into the Horse Racing Equity Fund.

2 (c-10) Each year the General Assembly shall appropriate

3 from the General Revenue Fund to the Education Assistance Fund

4 an amount equal to the amount paid into the Horse Racing Equity

5 Fund pursuant to subsection (c-5) in the prior calendar year.

6 (c-15) After the payments required under subsections (b),

7 (c), and (c-5) have been made, an amount equal to 2% of the

8 adjusted gross receipts of (1) an owners licensee that

9 relocates pursuant to Section 11.2, (2) an owners licensee

10 conducting riverboat gambling operations pursuant to an owners

11 license that is initially issued after June 25, 1999, or (3)

12 the first riverboat gambling operations conducted by a licensed

13 manager on behalf of the State under Section 7.3, whichever

14 comes first, shall be paid, subject to appropriation from the

15 General Assembly, from the State Gaming Fund to each home rule

16 county with a population of over 3,000,000 inhabitants for the

17 purpose of enhancing the county's criminal justice system.

18 (c-20) Each year the General Assembly shall appropriate

19 from the General Revenue Fund to the Education Assistance Fund

20 an amount equal to the amount paid to each home rule county

21 with a population of over 3,000,000 inhabitants pursuant to

22 subsection (c-15) in the prior calendar year.

23 (c-25) On July 1, 2013 and each July 1 thereafter,

24 $1,600,000 shall be transferred from the State Gaming Fund to

25 the Chicago State University Education Improvement Fund.

26 (c-30) On July 1, 2013 or as soon as possible thereafter,

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1 $92,000,000 shall be transferred from the State Gaming Fund to

2 the School Infrastructure Fund and $23,000,000 shall be

3 transferred from the State Gaming Fund to the Horse Racing

4 Equity Fund.

5 (c-35) Beginning on July 1, 2013, in addition to any amount

6 transferred under subsection (c-30) of this Section,

7 $5,530,000 shall be transferred monthly from the State Gaming

8 Fund to the School Infrastructure Fund.

9 (d) From time to time, the Board shall transfer the

10 remainder of the funds generated by this Act into the Education

11 Assistance Fund, created by Public Act 86-0018, of the State of

12 Illinois.

13 (e) Nothing in this Act shall prohibit the unit of local

14 government designated as the home dock of the riverboat from

15 entering into agreements with other units of local government

16 in this State or in other states to share its portion of the

17 tax revenue.

18 (f) To the extent practicable, the Board shall administer

19 and collect the wagering taxes imposed by this Section in a

20 manner consistent with the provisions of Sections 4, 5, 5a, 5b,

21 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the

22 Retailers' Occupation Tax Act and Section 3-7 of the Uniform

23 Penalty and Interest Act.

24 (Source: P.A. 98-18, eff. 6-7-13.)

25 (230 ILCS 10/14) (from Ch. 120, par. 2414)

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1 Sec. 14. Licensees - Records - Reports - Supervision.

2 (a) Licensed owners and electronic gaming licensees ~~A~~

3 ~~licensed owner~~ shall keep ~~his~~ books and records so as to

4 clearly show the following:

5 (1) The amount received daily from admission fees.

6 (2) The total amount of gross receipts.

7 (3) The total amount of the adjusted gross receipts.

8 (b) Licensed owners and electronic gaming licensees ~~The~~

9 ~~licensed owner~~ shall furnish to the Board reports and

10 information as the Board may require with respect to its

11 activities on forms designed and supplied for such purpose by

12 the Board.

13 (c) The books and records kept by a licensed owner as

14 provided by this Section are public records and the

15 examination, publication, and dissemination of the books and

16 records are governed by the provisions of The Freedom of

17 Information Act.

18 (Source: P.A. 86-1029.)

19 (230 ILCS 10/15) (from Ch. 120, par. 2415)

20 Sec. 15. Audit of Licensee Operations. Annually, the

21 licensed owner, ~~or~~ manager, or electronic gaming licenseeshall

22 transmit to the Board an audit of the financial transactions

23 and condition of the licensee's or manager's total operations.

24 Additionally, within 90 days after the end of each quarter of

25 each fiscal year, the licensed owner, ~~or~~ manager, or electronic

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1 gaming licensee shall transmit to the Board a compliance report

2 on engagement procedures determined by the Board. All audits

3 and compliance engagements shall be conducted by certified

4 public accountants selected by the Board. Each certified public

5 accountant must be registered in the State of Illinois under

6 the Illinois Public Accounting Act. The compensation for each

7 certified public accountant shall be paid directly by the

8 licensed owner, ~~or~~ manager, or electronic gaming licensee to

9 the certified public accountant.

10 (Source: P.A. 96-1392, eff. 1-1-11.)

11 (230 ILCS 10/16) (from Ch. 120, par. 2416)

12 Sec. 16. Annual Report of Board. The Board shall make an

13 annual report to the Governor, for the period ending December

14 31 of each year. Included in the report shall be an account of

15 the Board actions, its financial position and results of

16 operation under this Act and the Chicago Casino Development

17 Authority Act, the practical results attained under this Act

18 and the Chicago Casino Development Authority Act and any

19 recommendations for legislation which the Board deems

20 advisable.

21 (Source: P.A. 86-1029.)

22 (230 ILCS 10/17) (from Ch. 120, par. 2417)

23 Sec. 17. Administrative Procedures. The Illinois

24 Administrative Procedure Act shall apply to all administrative

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1 rules and procedures of the Board under this Act, the Chicago

2 Casino Development Authority Act, and ~~or~~ the Video Gaming Act,

3 except that: (1) subsection (b) of Section 5-10 of the Illinois

4 Administrative Procedure Act does not apply to final orders,

5 decisions and opinions of the Board; (2) subsection (a) of

6 Section 5-10 of the Illinois Administrative Procedure Act does

7 not apply to forms established by the Board for use under this

8 Act, the Chicago Casino Development Authority Act, and or the

9 Video Gaming Act; (3) the provisions of Section 10-45 of the

10 Illinois Administrative Procedure Act regarding proposals for

11 decision are excluded under this Act, the Chicago Casino

12 Development Authority Act, and ~~or~~ the Video Gaming Act; and (4)

13 the provisions of subsection (d) of Section 10-65 of the

14 Illinois Administrative Procedure Act do not apply so as to

15 prevent summary suspension of any license pending revocation or

16 other action, which suspension shall remain in effect unless

17 modified by the Board or unless the Board's decision is

18 reversed on the merits upon judicial review.

19 (Source: P.A. 96-34, eff. 7-13-09.)

20 (230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)

21 Sec. 17.1. Judicial Review.

22 (a) Jurisdiction and venue for the judicial review of a

23 final order of the Board relating to licensed owners,

24 suppliers, electronic gaming licensees, and ~~or~~special event

25 licenses is vested in the Appellate Court of the judicial

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1 district in which Sangamon County is located. A petition for

2 judicial review of a final order of the Board must be filed in

3 the Appellate Court, within 35 days from the date that a copy

4 of the decision sought to be reviewed was served upon the party

5 affected by the decision.

6 (b) Judicial review of all other final orders of the Board

7 shall be conducted in accordance with the Administrative Review

8 Law.

9 (Source: P.A. 88-1.)

10 (230 ILCS 10/18) (from Ch. 120, par. 2418)

11 Sec. 18. Prohibited Activities - Penalty.

12 (a) A person is guilty of a Class A misdemeanor for doing

13 any of the following:

14 (1) Conducting gambling where wagering is used or to be

15 used without a license issued by the Board.

16 (2) Conducting gambling where wagering is permitted

17 other than in the manner specified by Section 11.

18 (b) A person is guilty of a Class B misdemeanor for doing

19 any of the following:

20 (1) permitting a person under 21 years to make a wager;

21 or

22 (2) violating paragraph (12) of subsection (a) of

23 Section 11 of this Act.

24 (c) A person wagering or accepting a wager at any location

25 outside the riverboat, casino, or electronic gaming facility in

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1 violation of paragraph ~~is subject to the penalties in~~

2 ~~paragraphs~~(1) or (2) of subsection (a) of Section 28-1 of the

3 Criminal Code of 2012 is subject to the penalties provided in

4 that Section.

5 (d) A person commits a Class 4 felony and, in addition,

6 shall be barred for life fromgambling operations ~~riverboats~~

7 under the jurisdiction of the Board, if the person does any of

8 the following:

9 (1) Offers, promises, or gives anything of value or

10 benefit to a person who is connected with a riverboator

11 casino owner or electronic gaming licensee,including, but

12 not limited to, an officer or employee of a licensed owner,

13 electronic gaming licensee,or holder of an occupational

14 license pursuant to an agreement or arrangement or with the

15 intent that the promise or thing of value or benefit will

16 influence the actions of the person to whom the offer,

17 promise, or gift was made in order to affect or attempt to

18 affect the outcome of a gambling game, or to influence

19 official action of a member of the Board.

20 (2) Solicits or knowingly accepts or receives a promise

21 of anything of value or benefit while the person is

22 connected with a riverboat, casino, or electronic gaming

23 facility,including, but not limited to, an officer or

24 employee of a licensed owner or electronic gaming licensee,

25 or the holder of an occupational license, pursuant to an

26 understanding or arrangement or with the intent that the

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1 promise or thing of value or benefit will influence the

2 actions of the person to affect or attempt to affect the

3 outcome of a gambling game, or to influence official action

4 of a member of the Board.

5 (3) Uses or possesses with the intent to use a device

6 to assist:

7 (i) In projecting the outcome of the game.

8 (ii) In keeping track of the cards played.

9 (iii) In analyzing the probability of the

10 occurrence of an event relating to the gambling game.

11 (iv) In analyzing the strategy for playing or

12 betting to be used in the game except as permitted by

13 the Board.

14 (4) Cheats at a gambling game.

15 (5) Manufactures, sells, or distributes any cards,

16 chips, dice, game or device which is intended to be used to

17 violate any provision of this Act or the Chicago Casino

18 Development Authority Act.

19 (6) Alters or misrepresents the outcome of a gambling

20 game on which wagers have been made after the outcome is

21 made sure but before it is revealed to the players.

22 (7) Places a bet after acquiring knowledge, not

23 available to all players, of the outcome of the gambling

24 game which is subject of the bet or to aid a person in

25 acquiring the knowledge for the purpose of placing a bet

26 contingent on that outcome.

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1 (8) Claims, collects, or takes, or attempts to claim,

2 collect, or take, money or anything of value in or from the

3 gambling games, with intent to defraud, without having made

4 a wager contingent on winning a gambling game, or claims,

5 collects, or takes an amount of money or thing of value of

6 greater value than the amount won.

7 (9) Uses counterfeit chips or tokens in a gambling

8 game.

9 (10) Possesses any key or device designed for the

10 purpose of opening, entering, or affecting the operation of

11 a gambling game, drop box, or an electronic or mechanical

12 device connected with the gambling game or for removing

13 coins, tokens, chips or other contents of a gambling game.

14 This paragraph (10) does not apply to a gambling licensee

15 or employee of a gambling licensee acting in furtherance of

16 the employee's employment.

17 (e) The possession of more than one of the devices

18 described in subsection (d), paragraphs (3), (5), or (10)

19 permits a rebuttable presumption that the possessor intended to

20 use the devices for cheating.

21 (f) A person under the age of 21 who, except as authorized

22 under paragraph (10) of Section 11, enters upon a riverboat or

23 in a casino or electronic gaming facility commits a petty

24 offense and is subject to a fine of not less than $100 or more

25 than $250 for a first offense and of not less than $200 or more

26 than $500 for a second or subsequent offense.

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1 An action to prosecute any crime occurring on a riverboat

2 shall be tried in the county of the dock at which the riverboat

3 is based. An action to prosecute any crime occurring in a

4 casino or electronic gaming facility shall be tried in the

5 county in which the casino or electronic gaming facility is

6 located.

7 (Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)

8 (230 ILCS 10/18.1)

9 Sec. 18.1. Distribution of certain fines. If a fine is

10 imposed on an owner licensee or an electronic gaming licensee

11 for knowingly sending marketing or promotional materials to any

12 person placed on the self-exclusion list, then the Board shall

13 distribute an amount equal to 15% of the fine imposed to the

14 unit of local government in which the casino, riverboat, or

15 electronic gaming facility is located for the purpose of

16 awarding grants to non-profit entities that assist gambling

17 addicts.

18 (Source: P.A. 96-224, eff. 8-11-09.)

19 (230 ILCS 10/19) (from Ch. 120, par. 2419)

20 Sec. 19. Forfeiture of property.

21 (a) Except as provided in subsection (b), any riverboat,

22 casino, or electronic gaming facilityused for the conduct of

23 gambling games in violation of this Act shall be considered a

24 gambling place in violation of Section 28-3 of the Criminal

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1 Code of 2012. Every gambling device found on a riverboat, in a

2 casino, or at an electronic gaming facility operating gambling

3 games in violation of this Actand every slot machine and video

4 game of chance found at an electronic gaming facility operating

5 gambling games in violation of this Act or the Chicago Casino

6 Development Authority Act shall be subject to seizure,

7 confiscation and destruction as provided in Section 28-5 of the

8 Criminal Code of 2012.

9 (b) It is not a violation of this Act for a riverboat or

10 other watercraft which is licensed for gaming by a contiguous

11 state to dock on the shores of this State if the municipality

12 having jurisdiction of the shores, or the county in the case of

13 unincorporated areas, has granted permission for docking and no

14 gaming is conducted on the riverboat or other watercraft while

15 it is docked on the shores of this State. No gambling device

16 shall be subject to seizure, confiscation or destruction if the

17 gambling device is located on a riverboat or other watercraft

18 which is licensed for gaming by a contiguous state and which is

19 docked on the shores of this State if the municipality having

20 jurisdiction of the shores, or the county in the case of

21 unincorporated areas, has granted permission for docking and no

22 gaming is conducted on the riverboat or other watercraft while

23 it is docked on the shores of this State.

24 (Source: P.A. 97-1150, eff. 1-25-13.)

25 (230 ILCS 10/20) (from Ch. 120, par. 2420)

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1 Sec. 20. Prohibited activities - civil penalties. Any

2 person who conducts a gambling operation without first

3 obtaining a license to do so, or who continues to conduct such

4 games after revocation of his license, or any licensee who

5 conducts or allows to be conducted any unauthorized gambling

6 games on a riverboat, in a casino, or at an electronic gaming

7 facilitywhere it is authorized to conduct its~~riverboat~~

8 gambling operation, in addition to other penalties provided,

9 shall be subject to a civil penalty equal to the amount of

10 gross receipts derived from wagering on the gambling games,

11 whether unauthorized or authorized, conducted on that day as

12 well as confiscation and forfeiture of all gambling game

13 equipment used in the conduct of unauthorized gambling games.

14 (Source: P.A. 86-1029.)

15 (230 ILCS 10/21) (from Ch. 120, par. 2421)

16 Sec. 21. Limitation on taxation of licensees. Licensees

17 shall not be subjected to any excise tax, license tax, permit

18 tax, privilege tax, occupation tax or excursion tax which is

19 imposed exclusively upon the licensee by the State or any

20 political subdivision thereof, except as provided in this Act

21 or the Chicago Casino Development Authority Act.

22 (Source: P.A. 86-1029.)

23 (230 ILCS 10/23) (from Ch. 120, par. 2423)

24 Sec. 23. The State Gaming Fund. On or after the effective

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1 date of this Act, except as provided for payments into the

2 Horse Racing Equity Trust Fund under subsection (a) of Section

3 7, all of the fees and taxes collected pursuant to this Actor

4 the Chicago Casino Development Authority Act shall be deposited

5 into the State Gaming Fund, a special fund in the State

6 Treasury, which is hereby created. The adjusted gross receipts

7 of any riverboat gambling operations conducted by a licensed

8 manager on behalf of the State remaining after the payment of

9 the fees and expenses of the licensed manager shall be

10 deposited into the State Gaming Fund. Fines and penalties

11 collected pursuant to this Act or the Chicago Casino

12 Development Authority Actshall be deposited into the Education

13 Assistance Fund, created by Public Act 86-0018, of the State of

14 Illinois.

15 (Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)

16 (230 ILCS 10/24)

17 Sec. 24. Applicability of this ~~Illinois Riverboat Gambling~~

18 Act. The provisions of the this ~~Illinois Riverboat Gambling~~

19 Act, and all rules promulgated thereunder, shall apply to the

20 Chicago Casino Development Authority Act and the Video Gaming

21 Act, except where there is a conflict between the ~~2~~ Acts. In

22 the event of a conflict between this Act and the Chicago Casino

23 Development Authority Act, the terms of the Chicago Casino

24 Development Authority Act shall prevail. In the event of a

25 conflict between this Act and the Video Gaming Act, the terms

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1 of this Act shall prevail.

2 (Source: P.A. 96-37, eff. 7-13-09.)

3 Section 90-42. The Video Gaming Act is amended by changing

4 Sections 5, 25, 45, 79, and 80 as follows:

5 (230 ILCS 40/5)

6 Sec. 5. Definitions. As used in this Act:

7 "Board" means the Illinois Gaming Board.

8 "Credit" means one, 5, 10, or 25 cents either won or

9 purchased by a player.

10 "Distributor" means an individual, partnership,

11 corporation, or limited liability company licensed under this

12 Act to buy, sell, lease, or distribute video gaming terminals

13 or major components or parts of video gaming terminals to or

14 from terminal operators.

15 "Electronic card" means a card purchased from a licensed

16 establishment, licensed fraternal establishment, licensed

17 veterans establishment, or licensed truck stop establishment

18 for use in that establishment as a substitute for cash in the

19 conduct of gaming on a video gaming terminal.

20 "Electronic voucher" means a voucher printed by an

21 electronic video game machine that is redeemable in the

22 licensed establishment for which it was issued.

23 "Terminal operator" means an individual, partnership,

24 corporation, or limited liability company that is licensed

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1 under this Act and that owns, services, and maintains video

2 gaming terminals for placement in licensed establishments,

3 licensed truck stop establishments, licensed fraternal

4 establishments, or licensed veterans establishments.

5 "Licensed technician" means an individual who is licensed

6 under this Act to repair, service, and maintain video gaming

7 terminals.

8 "Licensed terminal handler" means a person, including but

9 not limited to an employee or independent contractor working

10 for a manufacturer, distributor, supplier, technician, or

11 terminal operator, who is licensed under this Act to possess or

12 control a video gaming terminal or to have access to the inner

13 workings of a video gaming terminal. A licensed terminal

14 handler does not include an individual, partnership,

15 corporation, or limited liability company defined as a

16 manufacturer, distributor, supplier, technician, or terminal

17 operator under this Act.

18 "Manufacturer" means an individual, partnership,

19 corporation, or limited liability company that is licensed

20 under this Act and that manufactures or assembles video gaming

21 terminals.

22 "Supplier" means an individual, partnership, corporation,

23 or limited liability company that is licensed under this Act to

24 supply major components or parts to video gaming terminals to

25 licensed terminal operators.

26 "Net terminal income" means money put into a video gaming

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1 terminal minus credits paid out to players.

2 "Video gaming terminal" means any electronic video game

3 machine that, upon insertion of cash, electronic cards or

4 vouchers, or any combination thereof, is available to play or

5 simulate the play of a video game, including but not limited to

6 video poker, line up, and blackjack, as authorized by the Board

7 utilizing a video display and microprocessors in which the

8 player may receive free games or credits that can be redeemed

9 for cash. The term does not include a machine that directly

10 dispenses coins, cash, or tokens or is for amusement purposes

11 only.

12 "Licensed establishment" means any licensed retail

13 establishment where alcoholic liquor is drawn, poured, mixed,

14 or otherwise served for consumption on the premises, whether

15 the establishment operates on a nonprofit or for-profit basis.

16 "Licensed establishment" includes any such establishment that

17 has a contractual relationship with an inter-track wagering

18 location licensee licensed under the Illinois Horse Racing Act

19 of 1975, provided any contractual relationship shall not

20 include any transfer or offer of revenue from the operation of

21 video gaming under this Act to any licensee licensed under the

22 Illinois Horse Racing Act of 1975. Provided, however, that the

23 licensed establishment that has such a contractual

24 relationship with an inter-track wagering location licensee

25 may not, itself, be (i) an inter-track wagering location

26 licensee, (ii) the corporate parent or subsidiary of any

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1 licensee licensed under the Illinois Horse Racing Act of 1975,

2 or (iii) the corporate subsidiary of a corporation that is also

3 the corporate parent or subsidiary of any licensee licensed

4 under the Illinois Horse Racing Act of 1975. "Licensed

5 establishment" does not include a facility operated by an

6 organization licensee, an inter-track wagering licensee, or an

7 inter-track wagering location licensee licensed under the

8 Illinois Horse Racing Act of 1975 or a riverboat licensed under

9 the Illinois ~~Riverboat~~ Gambling Act, except as provided in this

10 paragraph. The changes made to this definition by Public Act

11 98-587 are declarative of existing law.

12 "Licensed fraternal establishment" means the location

13 where a qualified fraternal organization that derives its

14 charter from a national fraternal organization regularly

15 meets.

16 "Licensed veterans establishment" means the location where

17 a qualified veterans organization that derives its charter from

18 a national veterans organization regularly meets.

19 "Licensed truck stop establishment" means a facility (i)

20 that is at least a 3-acre facility with a convenience store,

21 (ii) with separate diesel islands for fueling commercial motor

22 vehicles, (iii) that sells at retail more than 10,000 gallons

23 of diesel or biodiesel fuel per month, and (iv) with parking

24 spaces for commercial motor vehicles. "Commercial motor

25 vehicles" has the same meaning as defined in Section 18b-101 of

26 the Illinois Vehicle Code. The requirement of item (iii) of

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1 this paragraph may be met by showing that estimated future

2 sales or past sales average at least 10,000 gallons per month.

3 (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;

4 98-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.

5 7-16-14.)

6 (230 ILCS 40/25)

7 Sec. 25. Restriction of licensees.

8 (a) Manufacturer. A person may not be licensed as a

9 manufacturer of a video gaming terminal in Illinois unless the

10 person has a valid manufacturer's license issued under this

11 Act. A manufacturer may only sell video gaming terminals for

12 use in Illinois to persons having a valid distributor's

13 license.

14 (b) Distributor. A person may not sell, distribute, or

15 lease or market a video gaming terminal in Illinois unless the

16 person has a valid distributor's license issued under this Act.

17 A distributor may only sell video gaming terminals for use in

18 Illinois to persons having a valid distributor's or terminal

19 operator's license.

20 (c) Terminal operator. A person may not own, maintain, or

21 place a video gaming terminal unless he has a valid terminal

22 operator's license issued under this Act. A terminal operator

23 may only place video gaming terminals for use in Illinois in

24 licensed establishments, licensed truck stop establishments,

25 licensed fraternal establishments, and licensed veterans

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1 establishments. No terminal operator may give anything of

2 value, including but not limited to a loan or financing

3 arrangement, to a licensed establishment, licensed truck stop

4 establishment, licensed fraternal establishment, or licensed

5 veterans establishment as any incentive or inducement to locate

6 video terminals in that establishment. Of the after-tax profits

7 from a video gaming terminal, 50% shall be paid to the terminal

8 operator and 50% shall be paid to the licensed establishment,

9 licensed truck stop establishment, licensed fraternal

10 establishment, or licensed veterans establishment,

11 notwithstanding any agreement to the contrary. A video terminal

12 operator that violates one or more requirements of this

13 subsection is guilty of a Class 4 felony and is subject to

14 termination of his or her license by the Board.

15 (d) Licensed technician. A person may not service,

16 maintain, or repair a video gaming terminal in this State

17 unless he or she (1) has a valid technician's license issued

18 under this Act, (2) is a terminal operator, or (3) is employed

19 by a terminal operator, distributor, or manufacturer.

20 (d-5) Licensed terminal handler. No person, including, but

21 not limited to, an employee or independent contractor working

22 for a manufacturer, distributor, supplier, technician, or

23 terminal operator licensed pursuant to this Act, shall have

24 possession or control of a video gaming terminal, or access to

25 the inner workings of a video gaming terminal, unless that

26 person possesses a valid terminal handler's license issued

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1 under this Act.

2 (e) Licensed establishment. No video gaming terminal may be

3 placed in any licensed establishment, licensed veterans

4 establishment, licensed truck stop establishment, or licensed

5 fraternal establishment unless the owner or agent of the owner

6 of the licensed establishment, licensed veterans

7 establishment, licensed truck stop establishment, or licensed

8 fraternal establishment has entered into a written use

9 agreement with the terminal operator for placement of the

10 terminals. A copy of the use agreement shall be on file in the

11 terminal operator's place of business and available for

12 inspection by individuals authorized by the Board. A licensed

13 establishment, licensed truck stop establishment, licensed

14 veterans establishment, or licensed fraternal establishment

15 may operate up to 5 video gaming terminals on its premises at

16 any time.

17 (f) (Blank).

18 (g) Financial interest restrictions. As used in this Act,

19 "substantial interest" in a partnership, a corporation, an

20 organization, an association, a business, or a limited

21 liability company means:

22 (A) When, with respect to a sole proprietorship, an

23 individual or his or her spouse owns, operates, manages, or

24 conducts, directly or indirectly, the organization,

25 association, or business, or any part thereof; or

26 (B) When, with respect to a partnership, the individual

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1 or his or her spouse shares in any of the profits, or

2 potential profits, of the partnership activities; or

3 (C) When, with respect to a corporation, an individual

4 or his or her spouse is an officer or director, or the

5 individual or his or her spouse is a holder, directly or

6 beneficially, of 5% or more of any class of stock of the

7 corporation; or

8 (D) When, with respect to an organization not covered

9 in (A), (B) or (C) above, an individual or his or her

10 spouse is an officer or manages the business affairs, or

11 the individual or his or her spouse is the owner of or

12 otherwise controls 10% or more of the assets of the

13 organization; or

14 (E) When an individual or his or her spouse furnishes

15 5% or more of the capital, whether in cash, goods, or

16 services, for the operation of any business, association,

17 or organization during any calendar year; or

18 (F) When, with respect to a limited liability company,

19 an individual or his or her spouse is a member, or the

20 individual or his or her spouse is a holder, directly or

21 beneficially, of 5% or more of the membership interest of

22 the limited liability company.

23 For purposes of this subsection (g), "individual" includes

24 all individuals or their spouses whose combined interest would

25 qualify as a substantial interest under this subsection (g) and

26 whose activities with respect to an organization, association,

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1 or business are so closely aligned or coordinated as to

2 constitute the activities of a single entity.

3 (h) Location restriction. A licensed establishment,

4 licensed truck stop establishment, licensed fraternal

5 establishment, or licensed veterans establishment that is (i)

6 located within 1,000 feet of a facility operated by an

7 organization licensee licensed under the Illinois Horse Racing

8 Act of 1975 or the home dock of a riverboat licensed under the

9 Illinois ~~Riverboat~~Gambling Act or (ii) located within 100 feet

10 of a school or a place of worship under the Religious

11 Corporation Act, is ineligible to operate a video gaming

12 terminal. The location restrictions in this subsection (h) do

13 not apply if (A) a facility operated by an organization

14 licensee, a school, or a place of worship moves to or is

15 established within the restricted area after a licensed

16 establishment, licensed truck stop establishment, licensed

17 fraternal establishment, or licensed veterans establishment

18 becomes licensed under this Act or (B) a school or place of

19 worship moves to or is established within the restricted area

20 after a licensed establishment, licensed truck stop

21 establishment, licensed fraternal establishment, or licensed

22 veterans establishment obtains its original liquor license.

23 For the purpose of this subsection, "school" means an

24 elementary or secondary public school, or an elementary or

25 secondary private school registered with or recognized by the

26 State Board of Education.

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1 Notwithstanding the provisions of this subsection (h), the

2 Board may waive the requirement that a licensed establishment,

3 licensed truck stop establishment, licensed fraternal

4 establishment, or licensed veterans establishment not be

5 located within 1,000 feet from a facility operated by an

6 organization licensee licensed under the Illinois Horse Racing

7 Act of 1975 or the home dock of a riverboat licensed under the

8 Illinois ~~Riverboat~~ Gambling Act. The Board shall not grant such

9 waiver if there is any common ownership or control, shared

10 business activity, or contractual arrangement of any type

11 between the establishment and the organization licensee or

12 owners licensee of a riverboat. The Board shall adopt rules to

13 implement the provisions of this paragraph.

14 (i) Undue economic concentration. In addition to

15 considering all other requirements under this Act, in deciding

16 whether to approve the operation of video gaming terminals by a

17 terminal operator in a location, the Board shall consider the

18 impact of any economic concentration of such operation of video

19 gaming terminals. The Board shall not allow a terminal operator

20 to operate video gaming terminals if the Board determines such

21 operation will result in undue economic concentration. For

22 purposes of this Section, "undue economic concentration" means

23 that a terminal operator would have such actual or potential

24 influence over video gaming terminals in Illinois as to:

25 (1) substantially impede or suppress competition among

26 terminal operators;

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1 (2) adversely impact the economic stability of the

2 video gaming industry in Illinois; or

3 (3) negatively impact the purposes of the Video Gaming

4 Act.

5 The Board shall adopt rules concerning undue economic

6 concentration with respect to the operation of video gaming

7 terminals in Illinois. The rules shall include, but not be

8 limited to, (i) limitations on the number of video gaming

9 terminals operated by any terminal operator within a defined

10 geographic radius and (ii) guidelines on the discontinuation of

11 operation of any such video gaming terminals the Board

12 determines will cause undue economic concentration.

13 (j) The provisions of the Illinois Antitrust Act are fully

14 and equally applicable to the activities of any licensee under

15 this Act.

16 (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,

17 eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)

18 (230 ILCS 40/45)

19 Sec. 45. Issuance of license.

20 (a) The burden is upon each applicant to demonstrate his

21 suitability for licensure. Each video gaming terminal

22 manufacturer, distributor, supplier, operator, handler,

23 licensed establishment, licensed truck stop establishment,

24 licensed fraternal establishment, and licensed veterans

25 establishment shall be licensed by the Board. The Board may

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1 issue or deny a license under this Act to any person pursuant

2 to the same criteria set forth in Section 9 of the Illinois

3 ~~Riverboat~~ Gambling Act.

4 (a-5) The Board shall not grant a license to a person who

5 has facilitated, enabled, or participated in the use of

6 coin-operated devices for gambling purposes or who is under the

7 significant influence or control of such a person. For the

8 purposes of this Act, "facilitated, enabled, or participated in

9 the use of coin-operated amusement devices for gambling

10 purposes" means that the person has been convicted of any

11 violation of Article 28 of the Criminal Code of 1961 or the

12 Criminal Code of 2012. If there is pending legal action against

13 a person for any such violation, then the Board shall delay the

14 licensure of that person until the legal action is resolved.

15 (b) Each person seeking and possessing a license as a video

16 gaming terminal manufacturer, distributor, supplier, operator,

17 handler, licensed establishment, licensed truck stop

18 establishment, licensed fraternal establishment, or licensed

19 veterans establishment shall submit to a background

20 investigation conducted by the Board with the assistance of the

21 State Police or other law enforcement. To the extent that the

22 corporate structure of the applicant allows, the background

23 investigation shall include any or all of the following as the

24 Board deems appropriate or as provided by rule for each

25 category of licensure: (i) each beneficiary of a trust, (ii)

26 each partner of a partnership, (iii) each member of a limited

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1 liability company, (iv) each director and officer of a publicly

2 or non-publicly held corporation, (v) each stockholder of a

3 non-publicly held corporation, (vi) each stockholder of 5% or

4 more of a publicly held corporation, or (vii) each stockholder

5 of 5% or more in a parent or subsidiary corporation.

6 (c) Each person seeking and possessing a license as a video

7 gaming terminal manufacturer, distributor, supplier, operator,

8 handler, licensed establishment, licensed truck stop

9 establishment, licensed fraternal establishment, or licensed

10 veterans establishment shall disclose the identity of every

11 person, association, trust, corporation, or limited liability

12 company having a greater than 1% direct or indirect pecuniary

13 interest in the video gaming terminal operation for which the

14 license is sought. If the disclosed entity is a trust, the

15 application shall disclose the names and addresses of the

16 beneficiaries; if a corporation, the names and addresses of all

17 stockholders and directors; if a limited liability company, the

18 names and addresses of all members; or if a partnership, the

19 names and addresses of all partners, both general and limited.

20 (d) No person may be licensed as a video gaming terminal

21 manufacturer, distributor, supplier, operator, handler,

22 licensed establishment, licensed truck stop establishment,

23 licensed fraternal establishment, or licensed veterans

24 establishment if that person has been found by the Board to:

25 (1) have a background, including a criminal record,

26 reputation, habits, social or business associations, or

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1 prior activities that pose a threat to the public interests

2 of the State or to the security and integrity of video

3 gaming;

4 (2) create or enhance the dangers of unsuitable,

5 unfair, or illegal practices, methods, and activities in

6 the conduct of video gaming; or

7 (3) present questionable business practices and

8 financial arrangements incidental to the conduct of video

9 gaming activities.

10 (e) Any applicant for any license under this Act has the

11 burden of proving his or her qualifications to the satisfaction

12 of the Board. The Board may adopt rules to establish additional

13 qualifications and requirements to preserve the integrity and

14 security of video gaming in this State.

15 (f) A non-refundable application fee shall be paid at the

16 time an application for a license is filed with the Board in

17 the following amounts:

18 (1) Manufacturer..........................$5,000

19 (2) Distributor...........................$5,000

20 (3) Terminal operator.....................$5,000

21 (4) Supplier..............................$2,500

22 (5) Technician..............................$100

23 (6) Terminal Handler..............................$50

24 (g) The Board shall establish an annual fee for each

25 license not to exceed the following:

26 (1) Manufacturer.........................$10,000

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1 (2) Distributor..........................$10,000

2 (3) Terminal operator.....................$5,000

3 (4) Supplier..............................$2,000

4 (5) Technician..............................$100

5 (6) Licensed establishment, licensed truck stop

6 establishment, licensed fraternal establishment,

7 or licensed veterans establishment..............$100

8 (7) Video gaming terminal...................$100

9 (8) Terminal Handler..............................$50

10 (h) A terminal operator and a licensed establishment,

11 licensed truck stop establishment, licensed fraternal

12 establishment, or licensed veterans establishment shall

13 equally split the fees specified in item (7) of subsection (g).

14 (Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;

15 98-587, eff. 8-27-13; 98-756, eff. 7-16-14.)

16 (230 ILCS 40/79)

17 Sec. 79. Investigators. Investigators appointed by the

18 Board pursuant to the powers conferred upon the Board by

19 paragraph (20.6) of subsection (c) of Section 5 of the Illinois

20 ~~Riverboat~~ Gambling Act and Section 80 of this Act shall have

21 authority to conduct investigations, searches, seizures,

22 arrests, and other duties imposed under this Act and the

23 Illinois ~~Riverboat~~ Gambling Act, as deemed necessary by the

24 Board. These investigators have and may exercise all of the

25 rights and powers of peace officers, provided that these powers

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1 shall be (1) limited to offenses or violations occurring or

2 committed in connection with conduct subject to this Act,

3 including, but not limited to, the manufacture, distribution,

4 supply, operation, placement, service, maintenance, or play of

5 video gaming terminals and the distribution of profits and

6 collection of revenues resulting from such play, and (2)

7 exercised, to the fullest extent practicable, in cooperation

8 with the local police department of the applicable municipality

9 or, if these powers are exercised outside the boundaries of an

10 incorporated municipality or within a municipality that does

11 not have its own police department, in cooperation with the

12 police department whose jurisdiction encompasses the

13 applicable locality.

14 (Source: P.A. 97-809, eff. 7-13-12.)

15 (230 ILCS 40/80)

16 Sec. 80. Applicability of Illinois ~~Riverboat~~ Gambling Act.

17 The provisions of the Illinois ~~Riverboat~~ Gambling Act, and all

18 rules promulgated thereunder, shall apply to the Video Gaming

19 Act, except where there is a conflict between the 2 Acts. In

20 the event of a conflict between the 2 Acts, the provisions of

21 the Illinois Gambling Act shall prevail. All provisions of the

22 Uniform Penalty and Interest Act shall apply, as far as

23 practicable, to the subject matter of this Act to the same

24 extent as if such provisions were included herein.

25 (Source: P.A. 96-37, eff. 7-13-09.)

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1 Section 90-45. The Liquor Control Act of 1934 is amended by

2 changing Sections 5-1 and 6-30 as follows:

3 (235 ILCS 5/5-1) (from Ch. 43, par. 115)

4 Sec. 5-1. Licenses issued by the Illinois Liquor Control

5 Commission shall be of the following classes:

6 (a) Manufacturer's license - Class 1. Distiller, Class 2.

7 Rectifier, Class 3. Brewer, Class 4. First Class Wine

8 Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.

9 First Class Winemaker, Class 7. Second Class Winemaker, Class

10 8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class

11 10. Class 1 Brewer, Class 11. Class 2 Brewer,

12 (b) Distributor's license,

13 (c) Importing Distributor's license,

14 (d) Retailer's license,

15 (e) Special Event Retailer's license (not-for-profit),

16 (f) Railroad license,

17 (g) Boat license,

18 (h) Non-Beverage User's license,

19 (i) Wine-maker's premises license,

20 (j) Airplane license,

21 (k) Foreign importer's license,

22 (l) Broker's license,

23 (m) Non-resident dealer's license,

24 (n) Brew Pub license,

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1 (o) Auction liquor license,

2 (p) Caterer retailer license,

3 (q) Special use permit license,

4 (r) Winery shipper's license,

5 (s) Craft distiller tasting permit.

6 No person, firm, partnership, corporation, or other legal

7 business entity that is engaged in the manufacturing of wine

8 may concurrently obtain and hold a wine-maker's license and a

9 wine manufacturer's license.

10 (a) A manufacturer's license shall allow the manufacture,

11 importation in bulk, storage, distribution and sale of

12 alcoholic liquor to persons without the State, as may be

13 permitted by law and to licensees in this State as follows:

14 Class 1. A Distiller may make sales and deliveries of

15 alcoholic liquor to distillers, rectifiers, importing

16 distributors, distributors and non-beverage users and to no

17 other licensees.

18 Class 2. A Rectifier, who is not a distiller, as defined

19 herein, may make sales and deliveries of alcoholic liquor to

20 rectifiers, importing distributors, distributors, retailers

21 and non-beverage users and to no other licensees.

22 Class 3. A Brewer may make sales and deliveries of beer to

23 importing distributors and distributors and may make sales as

24 authorized under subsection (e) of Section 6-4 of this Act.

25 Class 4. A first class wine-manufacturer may make sales and

26 deliveries of up to 50,000 gallons of wine to manufacturers,

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1 importing distributors and distributors, and to no other

2 licensees.

3 Class 5. A second class Wine manufacturer may make sales

4 and deliveries of more than 50,000 gallons of wine to

5 manufacturers, importing distributors and distributors and to

6 no other licensees.

7 Class 6. A first-class wine-maker's license shall allow the

8 manufacture of up to 50,000 gallons of wine per year, and the

9 storage and sale of such wine to distributors in the State and

10 to persons without the State, as may be permitted by law. A

11 person who, prior to June 1, 2008 (the effective date of Public

12 Act 95-634), is a holder of a first-class wine-maker's license

13 and annually produces more than 25,000 gallons of its own wine

14 and who distributes its wine to licensed retailers shall cease

15 this practice on or before July 1, 2008 in compliance with

16 Public Act 95-634.

17 Class 7. A second-class wine-maker's license shall allow

18 the manufacture of between 50,000 and 150,000 gallons of wine

19 per year, and the storage and sale of such wine to distributors

20 in this State and to persons without the State, as may be

21 permitted by law. A person who, prior to June 1, 2008 (the

22 effective date of Public Act 95-634), is a holder of a

23 second-class wine-maker's license and annually produces more

24 than 25,000 gallons of its own wine and who distributes its

25 wine to licensed retailers shall cease this practice on or

26 before July 1, 2008 in compliance with Public Act 95-634.

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1 Class 8. A limited wine-manufacturer may make sales and

2 deliveries not to exceed 40,000 gallons of wine per year to

3 distributors, and to non-licensees in accordance with the

4 provisions of this Act.

5 Class 9. A craft distiller license shall allow the

6 manufacture of up to 100,000 ~~March 1, 2013 (Public Act 97-1166)~~

7 gallons of spirits by distillation per year and the storage of

8 such spirits. If a craft distiller licensee, including a craft

9 distiller licensee who holds more than one craft distiller

10 license, is not affiliated with any other manufacturer of

11 spirits, then the craft distiller licensee may sell such

12 spirits to distributors in this State and up to 2,500 gallons

13 of such spirits to non-licensees to the extent permitted by any

14 exemption approved by the Commission pursuant to Section 6-4 of

15 this Act. A craft distiller license holder may store such

16 spirits at a non-contiguous licensed location, but at no time

17 shall a craft distiller license holder directly or indirectly

18 produce in the aggregate more than 100,000 gallons of spirits

19 per year.

20 A craft distiller licensee may hold more than one craft

21 distiller's license. However, a craft distiller that holds more

22 than one craft distiller license shall not manufacture, in the

23 aggregate, more than 100,000 gallons of spirits by distillation

24 per year and shall not sell, in the aggregate, more than 2,500

25 gallons of such spirits to non-licensees in accordance with an

26 exemption approved by the State Commission pursuant to Section

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1 6-4 of this Act.

2 Any craft distiller licensed under this Act who on July 28,

3 2010 (the effective date of Public Act 96-1367) was licensed as

4 a distiller and manufactured no more spirits than permitted by

5 this Section shall not be required to pay the initial licensing

6 fee.

7 Class 10. A class 1 brewer license, which may only be

8 issued to a licensed brewer or licensed non-resident dealer,

9 shall allow the manufacture of up to 930,000 gallons of beer

10 per year provided that the class 1 brewer licensee does not

11 manufacture more than a combined 930,000 gallons of beer per

12 year and is not a member of or affiliated with, directly or

13 indirectly, a manufacturer that produces more than 930,000

14 gallons of beer per year or any other alcoholic liquor. A class

15 1 brewer licensee may make sales and deliveries to importing

16 distributors and distributors and to retail licensees in

17 accordance with the conditions set forth in paragraph (18) of

18 subsection (a) of Section 3-12 of this Act.

19 Class 11. A class 2 brewer license, which may only be

20 issued to a licensed brewer or licensed non-resident dealer,

21 shall allow the manufacture of up to 3,720,000 gallons of beer

22 per year provided that the class 2 brewer licensee does not

23 manufacture more than a combined 3,720,000 gallons of beer per

24 year and is not a member of or affiliated with, directly or

25 indirectly, a manufacturer that produces more than 3,720,000

26 gallons of beer per year or any other alcoholic liquor. A class

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1 2 brewer licensee may make sales and deliveries to importing

2 distributors and distributors, but shall not make sales or

3 deliveries to any other licensee. If the State Commission

4 provides prior approval, a class 2 brewer licensee may annually

5 transfer up to 3,720,000 gallons of beer manufactured by that

6 class 2 brewer licensee to the premises of a licensed class 2

7 brewer wholly owned and operated by the same licensee.

8 (a-1) A manufacturer which is licensed in this State to

9 make sales or deliveries of alcoholic liquor to licensed

10 distributors or importing distributors and which enlists

11 agents, representatives, or individuals acting on its behalf

12 who contact licensed retailers on a regular and continual basis

13 in this State must register those agents, representatives, or

14 persons acting on its behalf with the State Commission.

15 Registration of agents, representatives, or persons acting

16 on behalf of a manufacturer is fulfilled by submitting a form

17 to the Commission. The form shall be developed by the

18 Commission and shall include the name and address of the

19 applicant, the name and address of the manufacturer he or she

20 represents, the territory or areas assigned to sell to or

21 discuss pricing terms of alcoholic liquor, and any other

22 questions deemed appropriate and necessary. All statements in

23 the forms required to be made by law or by rule shall be deemed

24 material, and any person who knowingly misstates any material

25 fact under oath in an application is guilty of a Class B

26 misdemeanor. Fraud, misrepresentation, false statements,

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1 misleading statements, evasions, or suppression of material

2 facts in the securing of a registration are grounds for

3 suspension or revocation of the registration. The State

4 Commission shall post a list of registered agents on the

5 Commission's website.

6 (b) A distributor's license shall allow the wholesale

7 purchase and storage of alcoholic liquors and sale of alcoholic

8 liquors to licensees in this State and to persons without the

9 State, as may be permitted by law. No person licensed as a

10 distributor shall be granted a non-resident dealer's license.

11 (c) An importing distributor's license may be issued to and

12 held by those only who are duly licensed distributors, upon the

13 filing of an application by a duly licensed distributor, with

14 the Commission and the Commission shall, without the payment of

15 any fee, immediately issue such importing distributor's

16 license to the applicant, which shall allow the importation of

17 alcoholic liquor by the licensee into this State from any point

18 in the United States outside this State, and the purchase of

19 alcoholic liquor in barrels, casks or other bulk containers and

20 the bottling of such alcoholic liquors before resale thereof,

21 but all bottles or containers so filled shall be sealed,

22 labeled, stamped and otherwise made to comply with all

23 provisions, rules and regulations governing manufacturers in

24 the preparation and bottling of alcoholic liquors. The

25 importing distributor's license shall permit such licensee to

26 purchase alcoholic liquor from Illinois licensed non-resident

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1 dealers and foreign importers only. No person licensed as an

2 importing distributor shall be granted a non-resident dealer's

3 license.

4 (d) A retailer's license shall allow the licensee to sell

5 and offer for sale at retail, only in the premises specified in

6 the license, alcoholic liquor for use or consumption, but not

7 for resale in any form. Nothing in Public Act 95-634 shall

8 deny, limit, remove, or restrict the ability of a holder of a

9 retailer's license to transfer, deliver, or ship alcoholic

10 liquor to the purchaser for use or consumption subject to any

11 applicable local law or ordinance. Any retail license issued to

12 a manufacturer shall only permit the manufacturer to sell beer

13 at retail on the premises actually occupied by the

14 manufacturer. For the purpose of further describing the type of

15 business conducted at a retail licensed premises, a retailer's

16 licensee may be designated by the State Commission as (i) an on

17 premise consumption retailer, (ii) an off premise sale

18 retailer, or (iii) a combined on premise consumption and off

19 premise sale retailer.

20 Notwithstanding any other provision of this subsection

21 (d), a retail licensee may sell alcoholic liquors to a special

22 event retailer licensee for resale to the extent permitted

23 under subsection (e).

24 (e) A special event retailer's license (not-for-profit)

25 shall permit the licensee to purchase alcoholic liquors from an

26 Illinois licensed distributor (unless the licensee purchases

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1 less than $500 of alcoholic liquors for the special event, in

2 which case the licensee may purchase the alcoholic liquors from

3 a licensed retailer) and shall allow the licensee to sell and

4 offer for sale, at retail, alcoholic liquors for use or

5 consumption, but not for resale in any form and only at the

6 location and on the specific dates designated for the special

7 event in the license. An applicant for a special event retailer

8 license must (i) furnish with the application: (A) a resale

9 number issued under Section 2c of the Retailers' Occupation Tax

10 Act or evidence that the applicant is registered under Section

11 2a of the Retailers' Occupation Tax Act, (B) a current, valid

12 exemption identification number issued under Section 1g of the

13 Retailers' Occupation Tax Act, and a certification to the

14 Commission that the purchase of alcoholic liquors will be a

15 tax-exempt purchase, or (C) a statement that the applicant is

16 not registered under Section 2a of the Retailers' Occupation

17 Tax Act, does not hold a resale number under Section 2c of the

18 Retailers' Occupation Tax Act, and does not hold an exemption

19 number under Section 1g of the Retailers' Occupation Tax Act,

20 in which event the Commission shall set forth on the special

21 event retailer's license a statement to that effect; (ii)

22 submit with the application proof satisfactory to the State

23 Commission that the applicant will provide dram shop liability

24 insurance in the maximum limits; and (iii) show proof

25 satisfactory to the State Commission that the applicant has

26 obtained local authority approval.

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1 (f) A railroad license shall permit the licensee to import

2 alcoholic liquors into this State from any point in the United

3 States outside this State and to store such alcoholic liquors

4 in this State; to make wholesale purchases of alcoholic liquors

5 directly from manufacturers, foreign importers, distributors

6 and importing distributors from within or outside this State;

7 and to store such alcoholic liquors in this State; provided

8 that the above powers may be exercised only in connection with

9 the importation, purchase or storage of alcoholic liquors to be

10 sold or dispensed on a club, buffet, lounge or dining car

11 operated on an electric, gas or steam railway in this State;

12 and provided further, that railroad licensees exercising the

13 above powers shall be subject to all provisions of Article VIII

14 of this Act as applied to importing distributors. A railroad

15 license shall also permit the licensee to sell or dispense

16 alcoholic liquors on any club, buffet, lounge or dining car

17 operated on an electric, gas or steam railway regularly

18 operated by a common carrier in this State, but shall not

19 permit the sale for resale of any alcoholic liquors to any

20 licensee within this State. A license shall be obtained for

21 each car in which such sales are made.

22 (g) A boat license shall allow the sale of alcoholic liquor

23 in individual drinks, on any passenger boat regularly operated

24 as a common carrier on navigable waters in this State or on any

25 riverboat operated under theIllinois ~~Riverboat~~ Gambling Act,

26 which boat or riverboat maintains a public dining room or

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1 restaurant thereon.

2 (h) A non-beverage user's license shall allow the licensee

3 to purchase alcoholic liquor from a licensed manufacturer or

4 importing distributor, without the imposition of any tax upon

5 the business of such licensed manufacturer or importing

6 distributor as to such alcoholic liquor to be used by such

7 licensee solely for the non-beverage purposes set forth in

8 subsection (a) of Section 8-1 of this Act, and such licenses

9 shall be divided and classified and shall permit the purchase,

10 possession and use of limited and stated quantities of

11 alcoholic liquor as follows:

12 Class 1, not to exceed .........................500 gallons

13 Class 2, not to exceed .......................1,000 gallons

14 Class 3, not to exceed .......................5,000 gallons

15 Class 4, not to exceed ......................10,000 gallons

16 Class 5, not to exceed ....................... 50,000 gallons

17 (i) A wine-maker's premises license shall allow a licensee

18 that concurrently holds a first-class wine-maker's license to

19 sell and offer for sale at retail in the premises specified in

20 such license not more than 50,000 gallons of the first-class

21 wine-maker's wine that is made at the first-class wine-maker's

22 licensed premises per year for use or consumption, but not for

23 resale in any form. A wine-maker's premises license shall allow

24 a licensee who concurrently holds a second-class wine-maker's

25 license to sell and offer for sale at retail in the premises

26 specified in such license up to 100,000 gallons of the

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1 second-class wine-maker's wine that is made at the second-class

2 wine-maker's licensed premises per year for use or consumption

3 but not for resale in any form. A wine-maker's premises license

4 shall allow a licensee that concurrently holds a first-class

5 wine-maker's license or a second-class wine-maker's license to

6 sell and offer for sale at retail at the premises specified in

7 the wine-maker's premises license, for use or consumption but

8 not for resale in any form, any beer, wine, and spirits

9 purchased from a licensed distributor. Upon approval from the

10 State Commission, a wine-maker's premises license shall allow

11 the licensee to sell and offer for sale at (i) the wine-maker's

12 licensed premises and (ii) at up to 2 additional locations for

13 use and consumption and not for resale. Each location shall

14 require additional licensing per location as specified in

15 Section 5-3 of this Act. A wine-maker's premises licensee shall

16 secure liquor liability insurance coverage in an amount at

17 least equal to the maximum liability amounts set forth in

18 subsection (a) of Section 6-21 of this Act.

19 (j) An airplane license shall permit the licensee to import

20 alcoholic liquors into this State from any point in the United

21 States outside this State and to store such alcoholic liquors

22 in this State; to make wholesale purchases of alcoholic liquors

23 directly from manufacturers, foreign importers, distributors

24 and importing distributors from within or outside this State;

25 and to store such alcoholic liquors in this State; provided

26 that the above powers may be exercised only in connection with

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1 the importation, purchase or storage of alcoholic liquors to be

2 sold or dispensed on an airplane; and provided further, that

3 airplane licensees exercising the above powers shall be subject

4 to all provisions of Article VIII of this Act as applied to

5 importing distributors. An airplane licensee shall also permit

6 the sale or dispensing of alcoholic liquors on any passenger

7 airplane regularly operated by a common carrier in this State,

8 but shall not permit the sale for resale of any alcoholic

9 liquors to any licensee within this State. A single airplane

10 license shall be required of an airline company if liquor

11 service is provided on board aircraft in this State. The annual

12 fee for such license shall be as determined in Section 5-3.

13 (k) A foreign importer's license shall permit such licensee

14 to purchase alcoholic liquor from Illinois licensed

15 non-resident dealers only, and to import alcoholic liquor other

16 than in bulk from any point outside the United States and to

17 sell such alcoholic liquor to Illinois licensed importing

18 distributors and to no one else in Illinois; provided that (i)

19 the foreign importer registers with the State Commission every

20 brand of alcoholic liquor that it proposes to sell to Illinois

21 licensees during the license period, (ii) the foreign importer

22 complies with all of the provisions of Section 6-9 of this Act

23 with respect to registration of such Illinois licensees as may

24 be granted the right to sell such brands at wholesale, and

25 (iii) the foreign importer complies with the provisions of

26 Sections 6-5 and 6-6 of this Act to the same extent that these

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1 provisions apply to manufacturers.

2 (l) (i) A broker's license shall be required of all persons

3 who solicit orders for, offer to sell or offer to supply

4 alcoholic liquor to retailers in the State of Illinois, or who

5 offer to retailers to ship or cause to be shipped or to make

6 contact with distillers, rectifiers, brewers or manufacturers

7 or any other party within or without the State of Illinois in

8 order that alcoholic liquors be shipped to a distributor,

9 importing distributor or foreign importer, whether such

10 solicitation or offer is consummated within or without the

11 State of Illinois.

12 No holder of a retailer's license issued by the Illinois

13 Liquor Control Commission shall purchase or receive any

14 alcoholic liquor, the order for which was solicited or offered

15 for sale to such retailer by a broker unless the broker is the

16 holder of a valid broker's license.

17 The broker shall, upon the acceptance by a retailer of the

18 broker's solicitation of an order or offer to sell or supply or

19 deliver or have delivered alcoholic liquors, promptly forward

20 to the Illinois Liquor Control Commission a notification of

21 said transaction in such form as the Commission may by

22 regulations prescribe.

23 (ii) A broker's license shall be required of a person

24 within this State, other than a retail licensee, who, for a fee

25 or commission, promotes, solicits, or accepts orders for

26 alcoholic liquor, for use or consumption and not for resale, to

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1 be shipped from this State and delivered to residents outside

2 of this State by an express company, common carrier, or

3 contract carrier. This Section does not apply to any person who

4 promotes, solicits, or accepts orders for wine as specifically

5 authorized in Section 6-29 of this Act.

6 A broker's license under this subsection (l) shall not

7 entitle the holder to buy or sell any alcoholic liquors for his

8 own account or to take or deliver title to such alcoholic

9 liquors.

10 This subsection (l) shall not apply to distributors,

11 employees of distributors, or employees of a manufacturer who

12 has registered the trademark, brand or name of the alcoholic

13 liquor pursuant to Section 6-9 of this Act, and who regularly

14 sells such alcoholic liquor in the State of Illinois only to

15 its registrants thereunder.

16 Any agent, representative, or person subject to

17 registration pursuant to subsection (a-1) of this Section shall

18 not be eligible to receive a broker's license.

19 (m) A non-resident dealer's license shall permit such

20 licensee to ship into and warehouse alcoholic liquor into this

21 State from any point outside of this State, and to sell such

22 alcoholic liquor to Illinois licensed foreign importers and

23 importing distributors and to no one else in this State;

24 provided that (i) said non-resident dealer shall register with

25 the Illinois Liquor Control Commission each and every brand of

26 alcoholic liquor which it proposes to sell to Illinois

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1 licensees during the license period, (ii) it shall comply with

2 all of the provisions of Section 6-9 hereof with respect to

3 registration of such Illinois licensees as may be granted the

4 right to sell such brands at wholesale, and (iii) the

5 non-resident dealer shall comply with the provisions of

6 Sections 6-5 and 6-6 of this Act to the same extent that these

7 provisions apply to manufacturers. No person licensed as a

8 non-resident dealer shall be granted a distributor's or

9 importing distributor's license.

10 (n) A brew pub license shall allow the licensee to only (i)

11 manufacture up to 155,000 gallons of beer per year only on the

12 premises specified in the license, (ii) make sales of the beer

13 manufactured on the premises or, with the approval of the

14 Commission, beer manufactured on another brew pub licensed

15 premises that is wholly owned and operated by the same licensee

16 to importing distributors, distributors, and to non-licensees

17 for use and consumption, (iii) store the beer upon the

18 premises, (iv) sell and offer for sale at retail from the

19 licensed premises for off-premises consumption no more than

20 155,000 gallons per year so long as such sales are only made

21 in-person, (v) sell and offer for sale at retail for use and

22 consumption on the premises specified in the license any form

23 of alcoholic liquor purchased from a licensed distributor or

24 importing distributor, and (vi) with the prior approval of the

25 Commission, annually transfer no more than 155,000 gallons of

26 beer manufactured on the premises to a licensed brew pub wholly

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1 owned and operated by the same licensee.

2 A brew pub licensee shall not under any circumstance sell

3 or offer for sale beer manufactured by the brew pub licensee to

4 retail licensees.

5 A person who holds a class 2 brewer license may

6 simultaneously hold a brew pub license if the class 2 brewer

7 (i) does not, under any circumstance, sell or offer for sale

8 beer manufactured by the class 2 brewer to retail licensees;

9 (ii) does not hold more than 3 brew pub licenses in this State;

10 (iii) does not manufacture more than a combined 3,720,000

11 gallons of beer per year, including the beer manufactured at

12 the brew pub; and (iv) is not a member of or affiliated with,

13 directly or indirectly, a manufacturer that produces more than

14 3,720,000 gallons of beer per year or any other alcoholic

15 liquor.

16 Notwithstanding any other provision of this Act, a licensed

17 brewer, class 2 brewer, or non-resident dealer who before July

18 1, 2015 manufactured less than 3,720,000 gallons of beer per

19 year and held a brew pub license on or before July 1, 2015 may

20 (i) continue to qualify for and hold that brew pub license for

21 the licensed premises and (ii) manufacture more than 3,720,000

22 gallons of beer per year and continue to qualify for and hold

23 that brew pub license if that brewer, class 2 brewer, or

24 non-resident dealer does not simultaneously hold a class 1

25 brewer license and is not a member of or affiliated with,

26 directly or indirectly, a manufacturer that produces more than

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1 3,720,000 gallons of beer per year or that produces any other

2 alcoholic liquor.

3 (o) A caterer retailer license shall allow the holder to

4 serve alcoholic liquors as an incidental part of a food service

5 that serves prepared meals which excludes the serving of snacks

6 as the primary meal, either on or off-site whether licensed or

7 unlicensed.

8 (p) An auction liquor license shall allow the licensee to

9 sell and offer for sale at auction wine and spirits for use or

10 consumption, or for resale by an Illinois liquor licensee in

11 accordance with provisions of this Act. An auction liquor

12 license will be issued to a person and it will permit the

13 auction liquor licensee to hold the auction anywhere in the

14 State. An auction liquor license must be obtained for each

15 auction at least 14 days in advance of the auction date.

16 (q) A special use permit license shall allow an Illinois

17 licensed retailer to transfer a portion of its alcoholic liquor

18 inventory from its retail licensed premises to the premises

19 specified in the license hereby created, and to sell or offer

20 for sale at retail, only in the premises specified in the

21 license hereby created, the transferred alcoholic liquor for

22 use or consumption, but not for resale in any form. A special

23 use permit license may be granted for the following time

24 periods: one day or less; 2 or more days to a maximum of 15 days

25 per location in any 12-month ~~12 month~~period. An applicant for

26 the special use permit license must also submit with the

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1 application proof satisfactory to the State Commission that the

2 applicant will provide dram shop liability insurance to the

3 maximum limits and have local authority approval.

4 (r) A winery shipper's license shall allow a person with a

5 first-class or second-class wine manufacturer's license, a

6 first-class or second-class wine-maker's license, or a limited

7 wine manufacturer's license or who is licensed to make wine

8 under the laws of another state to ship wine made by that

9 licensee directly to a resident of this State who is 21 years

10 of age or older for that resident's personal use and not for

11 resale. Prior to receiving a winery shipper's license, an

12 applicant for the license must provide the Commission with a

13 true copy of its current license in any state in which it is

14 licensed as a manufacturer of wine. An applicant for a winery

15 shipper's license must also complete an application form that

16 provides any other information the Commission deems necessary.

17 The application form shall include all addresses from which the

18 applicant for a winery shipper's license intends to ship wine,

19 including the name and address of any third party, except for a

20 common carrier, authorized to ship wine on behalf of the

21 manufacturer. The application form shall include an

22 acknowledgement consenting to the jurisdiction of the

23 Commission, the Illinois Department of Revenue, and the courts

24 of this State concerning the enforcement of this Act and any

25 related laws, rules, and regulations, including authorizing

26 the Department of Revenue and the Commission to conduct audits

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1 for the purpose of ensuring compliance with Public Act 95-634,

2 and an acknowledgement that the wine manufacturer is in

3 compliance with Section 6-2 of this Act. Any third party,

4 except for a common carrier, authorized to ship wine on behalf

5 of a first-class or second-class wine manufacturer's licensee,

6 a first-class or second-class wine-maker's licensee, a limited

7 wine manufacturer's licensee, or a person who is licensed to

8 make wine under the laws of another state shall also be

9 disclosed by the winery shipper's licensee, and a copy of the

10 written appointment of the third-party wine provider, except

11 for a common carrier, to the wine manufacturer shall be filed

12 with the State Commission as a supplement to the winery

13 shipper's license application or any renewal thereof. The

14 winery shipper's license holder shall affirm under penalty of

15 perjury, as part of the winery shipper's license application or

16 renewal, that he or she only ships wine, either directly or

17 indirectly through a third-party provider, from the licensee's

18 own production.

19 Except for a common carrier, a third-party provider

20 shipping wine on behalf of a winery shipper's license holder is

21 the agent of the winery shipper's license holder and, as such,

22 a winery shipper's license holder is responsible for the acts

23 and omissions of the third-party provider acting on behalf of

24 the license holder. A third-party provider, except for a common

25 carrier, that engages in shipping wine into Illinois on behalf

26 of a winery shipper's license holder shall consent to the

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1 jurisdiction of the State Commission and the State. Any

2 third-party, except for a common carrier, holding such an

3 appointment shall, by February 1 of each calendar year, file

4 with the State Commission a statement detailing each shipment

5 made to an Illinois resident. The State Commission shall adopt

6 rules as soon as practicable to implement the requirements of

7 Public Act 99-904 ~~this amendatory Act of the 99th General~~

8 ~~Assembly~~ and shall adopt rules prohibiting any such third-party

9 appointment of a third-party provider, except for a common

10 carrier, that has been deemed by the State Commission to have

11 violated the provisions of this Act with regard to any winery

12 shipper licensee.

13 A winery shipper licensee must pay to the Department of

14 Revenue the State liquor gallonage tax under Section 8-1 for

15 all wine that is sold by the licensee and shipped to a person

16 in this State. For the purposes of Section 8-1, a winery

17 shipper licensee shall be taxed in the same manner as a

18 manufacturer of wine. A licensee who is not otherwise required

19 to register under the Retailers' Occupation Tax Act must

20 register under the Use Tax Act to collect and remit use tax to

21 the Department of Revenue for all gallons of wine that are sold

22 by the licensee and shipped to persons in this State. If a

23 licensee fails to remit the tax imposed under this Act in

24 accordance with the provisions of Article VIII of this Act, the

25 winery shipper's license shall be revoked in accordance with

26 the provisions of Article VII of this Act. If a licensee fails

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1 to properly register and remit tax under the Use Tax Act or the

2 Retailers' Occupation Tax Act for all wine that is sold by the

3 winery shipper and shipped to persons in this State, the winery

4 shipper's license shall be revoked in accordance with the

5 provisions of Article VII of this Act.

6 A winery shipper licensee must collect, maintain, and

7 submit to the Commission on a semi-annual basis the total

8 number of cases per resident of wine shipped to residents of

9 this State. A winery shipper licensed under this subsection (r)

10 must comply with the requirements of Section 6-29 of this Act.

11 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of

12 Section 3-12, the State Commission may receive, respond to, and

13 investigate any complaint and impose any of the remedies

14 specified in paragraph (1) of subsection (a) of Section 3-12.

15 (s) A craft distiller tasting permit license shall allow an

16 Illinois licensed craft distiller to transfer a portion of its

17 alcoholic liquor inventory from its craft distiller licensed

18 premises to the premises specified in the license hereby

19 created and to conduct a sampling, only in the premises

20 specified in the license hereby created, of the transferred

21 alcoholic liquor in accordance with subsection (c) of Section

22 6-31 of this Act. The transferred alcoholic liquor may not be

23 sold or resold in any form. An applicant for the craft

24 distiller tasting permit license must also submit with the

25 application proof satisfactory to the State Commission that the

26 applicant will provide dram shop liability insurance to the

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1 maximum limits and have local authority approval.

2 (Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;

3 98-756, eff. 7-16-14; 99-448, eff. 8-24-15; 99-642, eff.

4 7-28-16; 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904,

5 eff. 1-1-17; revised 9-15-16.)

6 (235 ILCS 5/6-30) (from Ch. 43, par. 144f)

7 Sec. 6-30. Notwithstanding any other provision of this Act,

8 the Illinois Gaming Board shall have exclusive authority to

9 establish the hours for sale and consumption of alcoholic

10 liquor on board a riverboat during riverboat gambling

11 excursions and in a casino conducted in accordance with the

12 Illinois ~~Riverboat~~Gambling Act.

13 (Source: P.A. 87-826.)

14 Section 90-46. The Illinois Public Aid Code is amended by

15 changing Section 10-17.15 as follows:

16 (305 ILCS 5/10-17.15)

17 Sec. 10-17.15. Certification of information to State

18 gaming licensees.

19 (a) For purposes of this Section, "State gaming licensee"

20 means, as applicable, an organization licensee or advance

21 deposit wagering licensee licensed under the Illinois Horse

22 Racing Act of 1975, an owners licensee licensed under the

23 Illinois ~~Riverboat~~ Gambling Act, or a licensee that operates,

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1 under any law of this State, one or more facilities or gaming

2 locations at which lawful gambling is authorized and licensed

3 as provided in the Illinois ~~Riverboat~~ Gambling Act.

4 (b) The Department may provide, by rule, for certification

5 to any State gaming licensee of past due child support owed by

6 a responsible relative under a support order entered by a court

7 or administrative body of this or any other State on behalf of

8 a resident or non-resident receiving child support services

9 under this Article in accordance with the requirements of Title

10 IV-D, Part D, of the Social Security Act. The State gaming

11 licensee shall have the ability to withhold from winnings

12 required to be reported to the Internal Revenue Service on Form

13 W-2G, up to the full amount of winnings necessary to pay the

14 winner's past due child support. The rule shall provide for

15 notice to and an opportunity to be heard by each responsible

16 relative affected and any final administrative decision

17 rendered by the Department shall be reviewed only under and in

18 accordance with the Administrative Review Law.

19 (c) For withholding of winnings, the State gaming licensee

20 shall be entitled to an administrative fee not to exceed the

21 lesser of 4% of the total amount of cash winnings paid to the

22 gambling winner or $150.

23 (d) In no event may the total amount withheld from the cash

24 payout, including the administrative fee, exceed the total cash

25 winnings claimed by the obligor. If the cash payout claimed is

26 greater than the amount sufficient to satisfy the obligor's

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1 delinquent child support payments, the State gaming licensee

2 shall pay the obligor the remaining balance of the payout, less

3 the administrative fee authorized by subsection (c) of this

4 Section, at the time it is claimed.

5 (e) A State gaming licensee who in good faith complies with

6 the requirements of this Section shall not be liable to the

7 gaming winner or any other individual or entity.

8 (Source: P.A. 98-318, eff. 8-12-13.)

9 Section 90-47. The Firearm Concealed Carry Act is amended

10 by changing Section 65 as follows:

11 (430 ILCS 66/65)

12 Sec. 65. Prohibited areas.

13 (a) A licensee under this Act shall not knowingly carry a

14 firearm on or into:

15 (1) Any building, real property, and parking area under

16 the control of a public or private elementary or secondary

17 school.

18 (2) Any building, real property, and parking area under

19 the control of a pre-school or child care facility,

20 including any room or portion of a building under the

21 control of a pre-school or child care facility. Nothing in

22 this paragraph shall prevent the operator of a child care

23 facility in a family home from owning or possessing a

24 firearm in the home or license under this Act, if no child

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1 under child care at the home is present in the home or the

2 firearm in the home is stored in a locked container when a

3 child under child care at the home is present in the home.

4 (3) Any building, parking area, or portion of a

5 building under the control of an officer of the executive

6 or legislative branch of government, provided that nothing

7 in this paragraph shall prohibit a licensee from carrying a

8 concealed firearm onto the real property, bikeway, or trail

9 in a park regulated by the Department of Natural Resources

10 or any other designated public hunting area or building

11 where firearm possession is permitted as established by the

12 Department of Natural Resources under Section 1.8 of the

13 Wildlife Code.

14 (4) Any building designated for matters before a

15 circuit court, appellate court, or the Supreme Court, or

16 any building or portion of a building under the control of

17 the Supreme Court.

18 (5) Any building or portion of a building under the

19 control of a unit of local government.

20 (6) Any building, real property, and parking area under

21 the control of an adult or juvenile detention or

22 correctional institution, prison, or jail.

23 (7) Any building, real property, and parking area under

24 the control of a public or private hospital or hospital

25 affiliate, mental health facility, or nursing home.

26 (8) Any bus, train, or form of transportation paid for

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1 in whole or in part with public funds, and any building,

2 real property, and parking area under the control of a

3 public transportation facility paid for in whole or in part

4 with public funds.

5 (9) Any building, real property, and parking area under

6 the control of an establishment that serves alcohol on its

7 premises, if more than 50% of the establishment's gross

8 receipts within the prior 3 months is from the sale of

9 alcohol. The owner of an establishment who knowingly fails

10 to prohibit concealed firearms on its premises as provided

11 in this paragraph or who knowingly makes a false statement

12 or record to avoid the prohibition on concealed firearms

13 under this paragraph is subject to the penalty under

14 subsection (c-5) of Section 10-1 of the Liquor Control Act

15 of 1934.

16 (10) Any public gathering or special event conducted on

17 property open to the public that requires the issuance of a

18 permit from the unit of local government, provided this

19 prohibition shall not apply to a licensee who must walk

20 through a public gathering in order to access his or her

21 residence, place of business, or vehicle.

22 (11) Any building or real property that has been issued

23 a Special Event Retailer's license as defined in Section

24 1-3.17.1 of the Liquor Control Act during the time

25 designated for the sale of alcohol by the Special Event

26 Retailer's license, or a Special use permit license as

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1 defined in subsection (q) of Section 5-1 of the Liquor

2 Control Act during the time designated for the sale of

3 alcohol by the Special use permit license.

4 (12) Any public playground.

5 (13) Any public park, athletic area, or athletic

6 facility under the control of a municipality or park

7 district, provided nothing in this Section shall prohibit a

8 licensee from carrying a concealed firearm while on a trail

9 or bikeway if only a portion of the trail or bikeway

10 includes a public park.

11 (14) Any real property under the control of the Cook

12 County Forest Preserve District.

13 (15) Any building, classroom, laboratory, medical

14 clinic, hospital, artistic venue, athletic venue,

15 entertainment venue, officially recognized

16 university-related organization property, whether owned or

17 leased, and any real property, including parking areas,

18 sidewalks, and common areas under the control of a public

19 or private community college, college, or university.

20 (16) Any building, real property, or parking area under

21 the control of a gaming facility licensed under the

22 Illinois ~~Riverboat~~ Gambling Act or the Illinois Horse

23 Racing Act of 1975, including an inter-track wagering

24 location licensee.

25 (17) Any stadium, arena, or the real property or

26 parking area under the control of a stadium, arena, or any

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1 collegiate or professional sporting event.

2 (18) Any building, real property, or parking area under

3 the control of a public library.

4 (19) Any building, real property, or parking area under

5 the control of an airport.

6 (20) Any building, real property, or parking area under

7 the control of an amusement park.

8 (21) Any building, real property, or parking area under

9 the control of a zoo or museum.

10 (22) Any street, driveway, parking area, property,

11 building, or facility, owned, leased, controlled, or used

12 by a nuclear energy, storage, weapons, or development site

13 or facility regulated by the federal Nuclear Regulatory

14 Commission. The licensee shall not under any circumstance

15 store a firearm or ammunition in his or her vehicle or in a

16 compartment or container within a vehicle located anywhere

17 in or on the street, driveway, parking area, property,

18 building, or facility described in this paragraph.

19 (23) Any area where firearms are prohibited under

20 federal law.

21 (a-5) Nothing in this Act shall prohibit a public or

22 private community college, college, or university from:

23 (1) prohibiting persons from carrying a firearm within

24 a vehicle owned, leased, or controlled by the college or

25 university;

26 (2) developing resolutions, regulations, or policies

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1 regarding student, employee, or visitor misconduct and

2 discipline, including suspension and expulsion;

3 (3) developing resolutions, regulations, or policies

4 regarding the storage or maintenance of firearms, which

5 must include designated areas where persons can park

6 vehicles that carry firearms; and

7 (4) permitting the carrying or use of firearms for the

8 purpose of instruction and curriculum of officially

9 recognized programs, including but not limited to military

10 science and law enforcement training programs, or in any

11 designated area used for hunting purposes or target

12 shooting.

13 (a-10) The owner of private real property of any type may

14 prohibit the carrying of concealed firearms on the property

15 under his or her control. The owner must post a sign in

16 accordance with subsection (d) of this Section indicating that

17 firearms are prohibited on the property, unless the property is

18 a private residence.

19 (b) Notwithstanding subsections (a), (a-5), and (a-10) of

20 this Section except under paragraph (22) or (23) of subsection

21 (a), any licensee prohibited from carrying a concealed firearm

22 into the parking area of a prohibited location specified in

23 subsection (a), (a-5), or (a-10) of this Section shall be

24 permitted to carry a concealed firearm on or about his or her

25 person within a vehicle into the parking area and may store a

26 firearm or ammunition concealed in a case within a locked

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1 vehicle or locked container out of plain view within the

2 vehicle in the parking area. A licensee may carry a concealed

3 firearm in the immediate area surrounding his or her vehicle

4 within a prohibited parking lot area only for the limited

5 purpose of storing or retrieving a firearm within the vehicle's

6 trunk. For purposes of this subsection, "case" includes a glove

7 compartment or console that completely encloses the concealed

8 firearm or ammunition, the trunk of the vehicle, or a firearm

9 carrying box, shipping box, or other container.

10 (c) A licensee shall not be in violation of this Section

11 while he or she is traveling along a public right of way that

12 touches or crosses any of the premises under subsection (a),

13 (a-5), or (a-10) of this Section if the concealed firearm is

14 carried on his or her person in accordance with the provisions

15 of this Act or is being transported in a vehicle by the

16 licensee in accordance with all other applicable provisions of

17 law.

18 (d) Signs stating that the carrying of firearms is

19 prohibited shall be clearly and conspicuously posted at the

20 entrance of a building, premises, or real property specified in

21 this Section as a prohibited area, unless the building or

22 premises is a private residence. Signs shall be of a uniform

23 design as established by the Department and shall be 4 inches

24 by 6 inches in size. The Department shall adopt rules for

25 standardized signs to be used under this subsection.

26 (Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)

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1 Section 90-50. The Criminal Code of 2012 is amended by

2 changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as

3 follows:

4 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)

5 Sec. 28-1. Gambling.

6 (a) A person commits gambling when he or she:

7 (1) knowingly plays a game of chance or skill for money

8 or other thing of value, unless excepted in subsection (b)

9 of this Section;

10 (2) knowingly makes a wager upon the result of any

11 game, contest, or any political nomination, appointment or

12 election;

13 (3) knowingly operates, keeps, owns, uses, purchases,

14 exhibits, rents, sells, bargains for the sale or lease of,

15 manufactures or distributes any gambling device;

16 (4) contracts to have or give himself or herself or

17 another the option to buy or sell, or contracts to buy or

18 sell, at a future time, any grain or other commodity

19 whatsoever, or any stock or security of any company, where

20 it is at the time of making such contract intended by both

21 parties thereto that the contract to buy or sell, or the

22 option, whenever exercised, or the contract resulting

23 therefrom, shall be settled, not by the receipt or delivery

24 of such property, but by the payment only of differences in

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1 prices thereof; however, the issuance, purchase, sale,

2 exercise, endorsement or guarantee, by or through a person

3 registered with the Secretary of State pursuant to Section

4 8 of the Illinois Securities Law of 1953, or by or through

5 a person exempt from such registration under said Section

6 8, of a put, call, or other option to buy or sell

7 securities which have been registered with the Secretary of

8 State or which are exempt from such registration under

9 Section 3 of the Illinois Securities Law of 1953 is not

10 gambling within the meaning of this paragraph (4);

11 (5) knowingly owns or possesses any book, instrument or

12 apparatus by means of which bets or wagers have been, or

13 are, recorded or registered, or knowingly possesses any

14 money which he has received in the course of a bet or

15 wager;

16 (6) knowingly sells pools upon the result of any game

17 or contest of skill or chance, political nomination,

18 appointment or election;

19 (7) knowingly sets up or promotes any lottery or sells,

20 offers to sell or transfers any ticket or share for any

21 lottery;

22 (8) knowingly sets up or promotes any policy game or

23 sells, offers to sell or knowingly possesses or transfers

24 any policy ticket, slip, record, document or other similar

25 device;

26 (9) knowingly drafts, prints or publishes any lottery

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1 ticket or share, or any policy ticket, slip, record,

2 document or similar device, except for such activity

3 related to lotteries, bingo games and raffles authorized by

4 and conducted in accordance with the laws of Illinois or

5 any other state or foreign government;

6 (10) knowingly advertises any lottery or policy game,

7 except for such activity related to lotteries, bingo games

8 and raffles authorized by and conducted in accordance with

9 the laws of Illinois or any other state;

10 (11) knowingly transmits information as to wagers,

11 betting odds, or changes in betting odds by telephone,

12 telegraph, radio, semaphore or similar means; or knowingly

13 installs or maintains equipment for the transmission or

14 receipt of such information; except that nothing in this

15 subdivision (11) prohibits transmission or receipt of such

16 information for use in news reporting of sporting events or

17 contests; or

18 (12) knowingly establishes, maintains, or operates an

19 Internet site that permits a person to play a game of

20 chance or skill for money or other thing of value by means

21 of the Internet or to make a wager upon the result of any

22 game, contest, political nomination, appointment, or

23 election by means of the Internet. This item (12) does not

24 apply to activities referenced in items (6) and (6.1) of

25 subsection (b) of this Section.

26 (b) Participants in any of the following activities shall

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1 not be convicted of gambling:

2 (1) Agreements to compensate for loss caused by the

3 happening of chance including without limitation contracts

4 of indemnity or guaranty and life or health or accident

5 insurance.

6 (2) Offers of prizes, award or compensation to the

7 actual contestants in any bona fide contest for the

8 determination of skill, speed, strength or endurance or to

9 the owners of animals or vehicles entered in such contest.

10 (3) Pari-mutuel betting as authorized by the law of

11 this State.

12 (4) Manufacture of gambling devices, including the

13 acquisition of essential parts therefor and the assembly

14 thereof, for transportation in interstate or foreign

15 commerce to any place outside this State when such

16 transportation is not prohibited by any applicable Federal

17 law; or the manufacture, distribution, or possession of

18 video gaming terminals, as defined in the Video Gaming Act,

19 by manufacturers, distributors, and terminal operators

20 licensed to do so under the Video Gaming Act.

21 (5) The game commonly known as "bingo", when conducted

22 in accordance with the Bingo License and Tax Act.

23 (6) Lotteries when conducted by the State of Illinois

24 in accordance with the Illinois Lottery Law. This exemption

25 includes any activity conducted by the Department of

26 Revenue to sell lottery tickets pursuant to the provisions

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1 of the Illinois Lottery Law and its rules.

2 (6.1) The purchase of lottery tickets through the

3 Internet for a lottery conducted by the State of Illinois

4 under the program established in Section 7.12 of the

5 Illinois Lottery Law.

6 (7) Possession of an antique slot machine that is

7 neither used nor intended to be used in the operation or

8 promotion of any unlawful gambling activity or enterprise.

9 For the purpose of this subparagraph (b)(7), an antique

10 slot machine is one manufactured 25 years ago or earlier.

11 (8) Raffles and poker runs when conducted in accordance

12 with the Raffles and Poker Runs Act.

13 (9) Charitable games when conducted in accordance with

14 the Charitable Games Act.

15 (10) Pull tabs and jar games when conducted under the

16 Illinois Pull Tabs and Jar Games Act.

17 (11) Gambling games ~~conducted on riverboats~~when

18 authorized by the Illinois ~~Riverboat~~ Gambling Act.

19 (12) Video gaming terminal games at a licensed

20 establishment, licensed truck stop establishment, licensed

21 fraternal establishment, or licensed veterans

22 establishment when conducted in accordance with the Video

23 Gaming Act.

24 (13) Games of skill or chance where money or other

25 things of value can be won but no payment or purchase is

26 required to participate.

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1 (14) Savings promotion raffles authorized under

2 Section 5g of the Illinois Banking Act, Section 7008 of the

3 Savings Bank Act, Section 42.7 of the Illinois Credit Union

4 Act, Section 5136B of the National Bank Act (12 U.S.C.

5 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.

6 1463).

7 (c) Sentence.

8 Gambling is a Class A misdemeanor. A second or subsequent

9 conviction under subsections (a)(3) through (a)(12), is a Class

10 4 felony.

11 (d) Circumstantial evidence.

12 In prosecutions under this Section circumstantial evidence

13 shall have the same validity and weight as in any criminal

14 prosecution.

15 (Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)

16 (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)

17 Sec. 28-1.1. Syndicated gambling.

18 (a) Declaration of Purpose. Recognizing the close

19 relationship between professional gambling and other organized

20 crime, it is declared to be the policy of the legislature to

21 restrain persons from engaging in the business of gambling for

22 profit in this State. This Section shall be liberally construed

23 and administered with a view to carrying out this policy.

24 (b) A person commits syndicated gambling when he or she

25 operates a "policy game" or engages in the business of

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1 bookmaking.

2 (c) A person "operates a policy game" when he or she

3 knowingly uses any premises or property for the purpose of

4 receiving or knowingly does receive from what is commonly

5 called "policy":

6 (1) money from a person other than the bettor or player

7 whose bets or plays are represented by the money; or

8 (2) written "policy game" records, made or used over

9 any period of time, from a person other than the bettor or

10 player whose bets or plays are represented by the written

11 record.

12 (d) A person engages in bookmaking when he or she knowingly

13 receives or accepts more than five bets or wagers upon the

14 result of any trials or contests of skill, speed or power of

15 endurance or upon any lot, chance, casualty, unknown or

16 contingent event whatsoever, which bets or wagers shall be of

17 such size that the total of the amounts of money paid or

18 promised to be paid to the bookmaker on account thereof shall

19 exceed $2,000. Bookmaking is the receiving or accepting of bets

20 or wagers regardless of the form or manner in which the

21 bookmaker records them.

22 (e) Participants in any of the following activities shall

23 not be convicted of syndicated gambling:

24 (1) Agreements to compensate for loss caused by the

25 happening of chance including without limitation contracts

26 of indemnity or guaranty and life or health or accident

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1 insurance;

2 (2) Offers of prizes, award or compensation to the

3 actual contestants in any bona fide contest for the

4 determination of skill, speed, strength or endurance or to

5 the owners of animals or vehicles entered in the contest;

6 (3) Pari-mutuel betting as authorized by law of this

7 State;

8 (4) Manufacture of gambling devices, including the

9 acquisition of essential parts therefor and the assembly

10 thereof, for transportation in interstate or foreign

11 commerce to any place outside this State when the

12 transportation is not prohibited by any applicable Federal

13 law;

14 (5) Raffles and poker runs when conducted in accordance

15 with the Raffles and Poker Runs Act;

16 (6) Gambling games conducted on riverboats, in

17 casinos, or at electronic gaming facilitieswhen

18 authorized by the Illinois ~~Riverboat~~ Gambling Act;

19 (7) Video gaming terminal games at a licensed

20 establishment, licensed truck stop establishment, licensed

21 fraternal establishment, or licensed veterans

22 establishment when conducted in accordance with the Video

23 Gaming Act; and

24 (8) Savings promotion raffles authorized under Section

25 5g of the Illinois Banking Act, Section 7008 of the Savings

26 Bank Act, Section 42.7 of the Illinois Credit Union Act,

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1 Section 5136B of the National Bank Act (12 U.S.C. 25a), or

2 Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).

3 (f) Sentence. Syndicated gambling is a Class 3 felony.

4 (Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)

5 (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)

6 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is

7 any real estate, vehicle, boat or any other property whatsoever

8 used for the purposes of gambling other than gambling conducted

9 in the manner authorized by theIllinois ~~Riverboat~~ Gambling Act

10 or the Video Gaming Act. Any person who knowingly permits any

11 premises or property owned or occupied by him or under his

12 control to be used as a gambling place commits a Class A

13 misdemeanor. Each subsequent offense is a Class 4 felony. When

14 any premises is determined by the circuit court to be a

15 gambling place:

16 (a) Such premises is a public nuisance and may be proceeded

17 against as such, and

18 (b) All licenses, permits or certificates issued by the

19 State of Illinois or any subdivision or public agency thereof

20 authorizing the serving of food or liquor on such premises

21 shall be void; and no license, permit or certificate so

22 cancelled shall be reissued for such premises for a period of

23 60 days thereafter; nor shall any person convicted of keeping a

24 gambling place be reissued such license for one year from his

25 conviction and, after a second conviction of keeping a gambling

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1 place, any such person shall not be reissued such license, and

2 (c) Such premises of any person who knowingly permits

3 thereon a violation of any Section of this Article shall be

4 held liable for, and may be sold to pay any unsatisfied

5 judgment that may be recovered and any unsatisfied fine that

6 may be levied under any Section of this Article.

7 (Source: P.A. 96-34, eff. 7-13-09.)

8 (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)

9 Sec. 28-5. Seizure of gambling devices and gambling funds.

10 (a) Every device designed for gambling which is incapable

11 of lawful use or every device used unlawfully for gambling

12 shall be considered a "gambling device", and shall be subject

13 to seizure, confiscation and destruction by the Department of

14 State Police or by any municipal, or other local authority,

15 within whose jurisdiction the same may be found. As used in

16 this Section, a "gambling device" includes any slot machine,

17 and includes any machine or device constructed for the

18 reception of money or other thing of value and so constructed

19 as to return, or to cause someone to return, on chance to the

20 player thereof money, property or a right to receive money or

21 property. With the exception of any device designed for

22 gambling which is incapable of lawful use, no gambling device

23 shall be forfeited or destroyed unless an individual with a

24 property interest in said device knows of the unlawful use of

25 the device.

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1 (b) Every gambling device shall be seized and forfeited to

2 the county wherein such seizure occurs. Any money or other

3 thing of value integrally related to acts of gambling shall be

4 seized and forfeited to the county wherein such seizure occurs.

5 (c) If, within 60 days after any seizure pursuant to

6 subparagraph (b) of this Section, a person having any property

7 interest in the seized property is charged with an offense, the

8 court which renders judgment upon such charge shall, within 30

9 days after such judgment, conduct a forfeiture hearing to

10 determine whether such property was a gambling device at the

11 time of seizure. Such hearing shall be commenced by a written

12 petition by the State, including material allegations of fact,

13 the name and address of every person determined by the State to

14 have any property interest in the seized property, a

15 representation that written notice of the date, time and place

16 of such hearing has been mailed to every such person by

17 certified mail at least 10 days before such date, and a request

18 for forfeiture. Every such person may appear as a party and

19 present evidence at such hearing. The quantum of proof required

20 shall be a preponderance of the evidence, and the burden of

21 proof shall be on the State. If the court determines that the

22 seized property was a gambling device at the time of seizure,

23 an order of forfeiture and disposition of the seized property

24 shall be entered: a gambling device shall be received by the

25 State's Attorney, who shall effect its destruction, except that

26 valuable parts thereof may be liquidated and the resultant

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1 money shall be deposited in the general fund of the county

2 wherein such seizure occurred; money and other things of value

3 shall be received by the State's Attorney and, upon

4 liquidation, shall be deposited in the general fund of the

5 county wherein such seizure occurred. However, in the event

6 that a defendant raises the defense that the seized slot

7 machine is an antique slot machine described in subparagraph

8 (b) (7) of Section 28-1 of this Code and therefore he is exempt

9 from the charge of a gambling activity participant, the seized

10 antique slot machine shall not be destroyed or otherwise

11 altered until a final determination is made by the Court as to

12 whether it is such an antique slot machine. Upon a final

13 determination by the Court of this question in favor of the

14 defendant, such slot machine shall be immediately returned to

15 the defendant. Such order of forfeiture and disposition shall,

16 for the purposes of appeal, be a final order and judgment in a

17 civil proceeding.

18 (d) If a seizure pursuant to subparagraph (b) of this

19 Section is not followed by a charge pursuant to subparagraph

20 (c) of this Section, or if the prosecution of such charge is

21 permanently terminated or indefinitely discontinued without

22 any judgment of conviction or acquittal (1) the State's

23 Attorney shall commence an in rem proceeding for the forfeiture

24 and destruction of a gambling device, or for the forfeiture and

25 deposit in the general fund of the county of any seized money

26 or other things of value, or both, in the circuit court and (2)

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1 any person having any property interest in such seized gambling

2 device, money or other thing of value may commence separate

3 civil proceedings in the manner provided by law.

4 (e) Any gambling device displayed for sale to a riverboat

5 gambling operation, casino gambling operation, or electronic

6 gaming facility or used to train occupational licensees of a

7 riverboat gambling operation, casino gambling operation, or

8 electronic gaming facility as authorized under the Illinois

9 ~~Riverboat~~Gambling Act is exempt from seizure under this

10 Section.

11 (f) Any gambling equipment, devices and supplies provided

12 by a licensed supplier in accordance with theIllinois

13 ~~Riverboat~~Gambling Act which are removed froma ~~the~~ riverboat,

14 casino, or electronic gaming facility for repair are exempt

15 from seizure under this Section.

16 (g) The following video gaming terminals are exempt from

17 seizure under this Section:

18 (1) Video gaming terminals for sale to a licensed

19 distributor or operator under the Video Gaming Act.

20 (2) Video gaming terminals used to train licensed

21 technicians or licensed terminal handlers.

22 (3) Video gaming terminals that are removed from a

23 licensed establishment, licensed truck stop establishment,

24 licensed fraternal establishment, or licensed veterans

25 establishment for repair.

26 (Source: P.A. 98-31, eff. 6-24-13.)

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1 (720 ILCS 5/28-7) (from Ch. 38, par. 28-7)

2 Sec. 28-7. Gambling contracts void.

3 (a) All promises, notes, bills, bonds, covenants,

4 contracts, agreements, judgments, mortgages, or other

5 securities or conveyances made, given, granted, drawn, or

6 entered into, or executed by any person whatsoever, where the

7 whole or any part of the consideration thereof is for any money

8 or thing of value, won or obtained in violation of any Section

9 of this Article are null and void.

10 (b) Any obligation void under this Section may be set aside

11 and vacated by any court of competent jurisdiction, upon a

12 complaint filed for that purpose, by the person so granting,

13 giving, entering into, or executing the same, or by his

14 executors or administrators, or by any creditor, heir, legatee,

15 purchaser or other person interested therein; or if a judgment,

16 the same may be set aside on motion of any person stated above,

17 on due notice thereof given.

18 (c) No assignment of any obligation void under this Section

19 may in any manner affect the defense of the person giving,

20 granting, drawing, entering into or executing such obligation,

21 or the remedies of any person interested therein.

22 (d) This Section shall not prevent a licensed owner of a

23 riverboat gambling operation, casino gambling operation, or an

24 electronic gaming licensee under the Illinois Gambling Act and

25 the Illinois Horse Racing Act of 1975 from instituting a cause

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1 of action to collect any amount due and owing under an

2 extension of credit to a~~riverboat~~ gambling patron as

3 authorized under Section 11.1 of the Illinois~~Riverboat~~

4 Gambling Act.

5 (Source: P.A. 87-826.)

6 Section 90-55. The Eminent Domain Act is amended by adding

7 Section 15-5-48 as follows:

8 (735 ILCS 30/15-5-48 new)

9 Sec. 15-5-48. Eminent domain powers in new Acts. The

10 following provisions of law may include express grants of the

11 power to acquire property by condemnation or eminent domain:

12 Chicago Casino Development Authority Act; City of Chicago; for

13 the purposes of the Act.

14 Section 90-60. The Payday Loan Reform Act is amended by

15 changing Section 3-5 as follows:

16 (815 ILCS 122/3-5)

17 Sec. 3-5. Licensure.

18 (a) A license to make a payday loan shall state the

19 address, including city and state, at which the business is to

20 be conducted and shall state fully the name of the licensee.

21 The license shall be conspicuously posted in the place of

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1 business of the licensee and shall not be transferable or

2 assignable.

3 (b) An application for a license shall be in writing and in

4 a form prescribed by the Secretary. The Secretary may not issue

5 a payday loan license unless and until the following findings

6 are made:

7 (1) that the financial responsibility, experience,

8 character, and general fitness of the applicant are such as

9 to command the confidence of the public and to warrant the

10 belief that the business will be operated lawfully and

11 fairly and within the provisions and purposes of this Act;

12 and

13 (2) that the applicant has submitted such other

14 information as the Secretary may deem necessary.

15 (c) A license shall be issued for no longer than one year,

16 and no renewal of a license may be provided if a licensee has

17 substantially violated this Act and has not cured the violation

18 to the satisfaction of the Department.

19 (d) A licensee shall appoint, in writing, the Secretary as

20 attorney-in-fact upon whom all lawful process against the

21 licensee may be served with the same legal force and validity

22 as if served on the licensee. A copy of the written

23 appointment, duly certified, shall be filed in the office of

24 the Secretary, and a copy thereof certified by the Secretary

25 shall be sufficient evidence to subject a licensee to

26 jurisdiction in a court of law. This appointment shall remain

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1 in effect while any liability remains outstanding in this State

2 against the licensee. When summons is served upon the Secretary

3 as attorney-in-fact for a licensee, the Secretary shall

4 immediately notify the licensee by registered mail, enclosing

5 the summons and specifying the hour and day of service.

6 (e) A licensee must pay an annual fee of $1,000. In

7 addition to the license fee, the reasonable expense of any

8 examination or hearing by the Secretary under any provisions of

9 this Act shall be borne by the licensee. If a licensee fails to

10 renew its license by December 31, its license shall

11 automatically expire; however, the Secretary, in his or her

12 discretion, may reinstate an expired license upon:

13 (1) payment of the annual fee within 30 days of the

14 date of expiration; and

15 (2) proof of good cause for failure to renew.

16 (f) Not more than one place of business shall be maintained

17 under the same license, but the Secretary may issue more than

18 one license to the same licensee upon compliance with all the

19 provisions of this Act governing issuance of a single license.

20 The location, except those locations already in existence as of

21 June 1, 2005, may not be within one mile of a horse race track

22 subject to the Illinois Horse Racing Act of 1975, within one

23 mile of a facility at which gambling is conducted under the

24 Illinois~~Riverboat~~ Gambling Act, within one mile of the

25 location at which a riverboat subject to theIllinois ~~Riverboat~~

26 Gambling Act docks, or within one mile of any State of Illinois

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1 or United States military base or naval installation.

2 (g) No licensee shall conduct the business of making loans

3 under this Act within any office, suite, room, or place of

4 business in which (1) any loans are offered or made under the

5 Consumer Installment Loan Act other than title secured loans as

6 defined in subsection (a) of Section 15 of the Consumer

7 Installment Loan Act and governed by Title 38, Section 110.330

8 of the Illinois Administrative Code or (2) any other business

9 is solicited or engaged in unless the other business is

10 licensed by the Department or, in the opinion of the Secretary,

11 the other business would not be contrary to the best interests

12 of consumers and is authorized by the Secretary in writing.

13 (g-5) Notwithstanding subsection (g) of this Section, a

14 licensee may obtain a license under the Consumer Installment

15 Loan Act (CILA) for the exclusive purpose and use of making

16 title secured loans, as defined in subsection (a) of Section 15

17 of CILA and governed by Title 38, Section 110.300 of the

18 Illinois Administrative Code. A licensee may continue to

19 service Consumer Installment Loan Act loans that were

20 outstanding as of the effective date of this amendatory Act of

21 the 96th General Assembly.

22 (h) The Secretary shall maintain a list of licensees that

23 shall be available to interested consumers and lenders and the

24 public. The Secretary shall maintain a toll-free number whereby

25 consumers may obtain information about licensees. The

26 Secretary shall also establish a complaint process under which

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1 an aggrieved consumer may file a complaint against a licensee

2 or non-licensee who violates any provision of this Act.

3 (Source: P.A. 96-936, eff. 3-21-11.)

4 Section 90-65. The Travel Promotion Consumer Protection

5 Act is amended by changing Section 2 as follows:

6 (815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)

7 Sec. 2. Definitions.

8 (a) "Travel promoter" means a person, including a tour

9 operator, who sells, provides, furnishes, contracts for,

10 arranges or advertises that he or she will arrange wholesale or

11 retail transportation by air, land, sea or navigable stream,

12 either separately or in conjunction with other services.

13 "Travel promoter" does not include (1) an air carrier; (2) a

14 sea carrier; (3) an officially appointed agent of an air

15 carrier who is a member in good standing of the Airline

16 Reporting Corporation; (4) a travel promoter who has in force

17 $1,000,000 or more of liability insurance coverage for

18 professional errors and omissions and a surety bond or

19 equivalent surety in the amount of $100,000 or more for the

20 benefit of consumers in the event of a bankruptcy on the part

21 of the travel promoter; or (5) a riverboat subject to

22 regulation under theIllinois ~~Riverboat~~ Gambling Act.

23 (b) "Advertise" means to make any representation in the

24 solicitation of passengers and includes communication with

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1 other members of the same partnership, corporation, joint

2 venture, association, organization, group or other entity.

3 (c) "Passenger" means a person on whose behalf money or

4 other consideration has been given or is to be given to

5 another, including another member of the same partnership,

6 corporation, joint venture, association, organization, group

7 or other entity, for travel.

8 (d) "Ticket or voucher" means a writing or combination of

9 writings which is itself good and sufficient to obtain

10 transportation and other services for which the passenger has

11 contracted.

12 (Source: P.A. 91-357, eff. 7-29-99.)

13 (30 ILCS 105/5.490 rep.)

14 Section 90-70. The State Finance Act is amended by

15 repealing Section 5.490.

16 (230 ILCS 5/54 rep.)

17 Section 90-75. The Illinois Horse Racing Act of 1975 is

18 amended by repealing Section 54.

19 ARTICLE 99.

20 Section 99-97. Severability. The provisions of this Act are

21 severable under Section 1.31 of the Statute on Statutes.

22 Section 99-99. Effective date. This Act takes effect upon

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1 becoming law, but this Act does not take effect at all unless

2 Senate Bills 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, and 13 of the

3 100th General Assembly become law.

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1 INDEX

2 Statutes amended in order of appearance

3 New Act

4 5 ILCS 430/5-45

5 5 ILCS 430/20-10

6 20 ILCS 301/5-20

7 20 ILCS 605/605-530 new

8 20 ILCS 605/605-535 new

9 20 ILCS 1605/9.1

10 20 ILCS 2505/2505-305 was 20 ILCS 2505/39b15.1

11 30 ILCS 5/3-1 from Ch. 15, par. 303-1

12 30 ILCS 105/5.878 new

13 30 ILCS 105/5.879 new

14 30 ILCS 105/5.880 new

15 30 ILCS 105/6z-45

16 30 ILCS 105/6z-102 new

17 35 ILCS 5/201 from Ch. 120, par. 2-201

18 35 ILCS 5/303 from Ch. 120, par. 3-303

19 35 ILCS 5/304 from Ch. 120, par. 3-304

20 35 ILCS 5/710 from Ch. 120, par. 7-710

21 35 ILCS 200/15-144 new

22 65 ILCS 5/8-10-2.6 new

23 70 ILCS 1825/5.1 from Ch. 19, par. 255.1

24 205 ILCS 670/12.5

25 230 ILCS 5/1.2

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1 230 ILCS 5/3.11 from Ch. 8, par. 37-3.11

2 230 ILCS 5/3.12 from Ch. 8, par. 37-3.12

3 230 ILCS 5/3.31 new

4 230 ILCS 5/3.32 new

5 230 ILCS 5/3.33 new

6 230 ILCS 5/3.35 new

7 230 ILCS 5/3.36 new

8 230 ILCS 5/6 from Ch. 8, par. 37-6

9 230 ILCS 5/9 from Ch. 8, par. 37-9

10 230 ILCS 5/15 from Ch. 8, par. 37-15

11 230 ILCS 5/18 from Ch. 8, par. 37-18

12 230 ILCS 5/19 from Ch. 8, par. 37-19

13 230 ILCS 5/20 from Ch. 8, par. 37-20

14 230 ILCS 5/21 from Ch. 8, par. 37-21

15 230 ILCS 5/24 from Ch. 8, par. 37-24

16 230 ILCS 5/25 from Ch. 8, par. 37-25

17 230 ILCS 5/26 from Ch. 8, par. 37-26

18 230 ILCS 5/26.8

19 230 ILCS 5/26.9

20 230 ILCS 5/27 from Ch. 8, par. 37-27

21 230 ILCS 5/30 from Ch. 8, par. 37-30

22 230 ILCS 5/30.5

23 230 ILCS 5/31 from Ch. 8, par. 37-31

24 230 ILCS 5/32.1

25 230 ILCS 5/34.3 new

26 230 ILCS 5/36 from Ch. 8, par. 37-36

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1 230 ILCS 5/40 from Ch. 8, par. 37-40

2 230 ILCS 5/54.75

3 230 ILCS 5/56 new

4 230 ILCS 10/1 from Ch. 120, par. 2401

5 230 ILCS 10/2 from Ch. 120, par. 2402

6 230 ILCS 10/3 from Ch. 120, par. 2403

7 230 ILCS 10/4 from Ch. 120, par. 2404

8 230 ILCS 10/5 from Ch. 120, par. 2405

9 230 ILCS 10/5.1 from Ch. 120, par. 2405.1

10 230 ILCS 10/5.3 new

11 230 ILCS 10/6 from Ch. 120, par. 2406

12 230 ILCS 10/7 from Ch. 120, par. 2407

13 230 ILCS 10/7.3

14 230 ILCS 10/7.5

15 230 ILCS 10/7.7 new

16 230 ILCS 10/7.8 new

17 230 ILCS 10/7.9 new

18 230 ILCS 10/7.10 new

19 230 ILCS 10/7.11 new

20 230 ILCS 10/7.12 new

21 230 ILCS 10/7.13 new

22 230 ILCS 10/8 from Ch. 120, par. 2408

23 230 ILCS 10/9 from Ch. 120, par. 2409

24 230 ILCS 10/11 from Ch. 120, par. 2411

25 230 ILCS 10/11.1 from Ch. 120, par. 2411.1

26 230 ILCS 10/12 from Ch. 120, par. 2412

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1 230 ILCS 10/13 from Ch. 120, par. 2413

2 230 ILCS 10/14 from Ch. 120, par. 2414

3 230 ILCS 10/15 from Ch. 120, par. 2415

4 230 ILCS 10/16 from Ch. 120, par. 2416

5 230 ILCS 10/17 from Ch. 120, par. 2417

6 230 ILCS 10/17.1 from Ch. 120, par. 2417.1

7 230 ILCS 10/18 from Ch. 120, par. 2418

8 230 ILCS 10/18.1

9 230 ILCS 10/19 from Ch. 120, par. 2419

10 230 ILCS 10/20 from Ch. 120, par. 2420

11 230 ILCS 10/21 from Ch. 120, par. 2421

12 230 ILCS 10/23 from Ch. 120, par. 2423

13 230 ILCS 10/24

14 230 ILCS 40/5

15 230 ILCS 40/25

16 230 ILCS 40/45

17 230 ILCS 40/79

18 230 ILCS 40/80

19 235 ILCS 5/5-1 from Ch. 43, par. 115

20 235 ILCS 5/6-30 from Ch. 43, par. 144f

21 305 ILCS 5/10-17.15

22 430 ILCS 66/65

23 720 ILCS 5/28-1 from Ch. 38, par. 28-1

24 720 ILCS 5/28-1.1 from Ch. 38, par. 28-1.1

25 720 ILCS 5/28-3 from Ch. 38, par. 28-3

26 720 ILCS 5/28-5 from Ch. 38, par. 28-5

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