100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2498

 

Introduced , by Rep. Chad Hays

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Chicago Casino Development Authority Act. Provides for the creation of the Chicago Casino Development Authority, whose duties include promotion and maintenance of a casino. Amends the Illinois Horse Racing Act of 1975 and the Riverboat Gambling Act to authorize electronic gaming at race tracks (and makes conforming changes in various Acts). Further amends the Illinois Horse Racing Act of 1975. Makes various changes concerning Board members. Contains provisions concerning testing of horses at county fairs and standardbred horses. Provides that the Illinois Racing Board shall submit a report to the General Assembly on or before December 31, 2018 that examines the feasibility of conducting electronic gaming at the Illinois State Fairgrounds. 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. Amends the Illinois Horse Racing Act of 1975, the Riverboat Gambling Act, and the Video Gaming Act to prohibit political contributions from certain licensees. Makes other changes. Contains a severability provision. Effective immediately.


LRB100 03891 AMC 13896 b

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2498LRB100 03891 AMC 13896 b

1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
ARTICLE 1.

 
5    Section 1-1. Short title. This Article may be cited as the
6Chicago Casino Development Authority Act. References in this
7Article to "this Act" mean this Article.
 
8    Section 1-2. Legislative intent.
9    (a) This Act is intended to benefit the people of the City
10of Chicago and the State of Illinois by assisting economic
11development and promoting tourism and by increasing the amount
12of revenues available to the City and the State to assist and
13support education.
14    (b) While authorization of casino gambling in Chicago will
15enhance investment, development, and tourism in Illinois, it is
16recognized that it will do so successfully only if public
17confidence and trust in the credibility and integrity of the
18gambling operations and the regulatory process is maintained.
19Therefore, the provisions of this Act are designed to allow the
20Illinois Gaming Board to strictly regulate the facilities,
21persons, associations, and practices related to gambling
22operations pursuant to the police powers of the State,

 

 

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1including comprehensive law enforcement supervision.
2Consistent with the Gaming Board's authority, the Gaming Board
3alone shall regulate any Chicago casino, just as it now
4regulates every other casino in Illinois.
 
5    Section 1-5. Definitions. As used in this Act:
6    "Authority" means the Chicago Casino Development Authority
7created by this Act.
8    "Casino" means one temporary land-based or water-based
9facility and one permanent land-based or water-based facility
10and airport gaming locations pursuant to Section 1-67 of this
11Act at which lawful gambling is authorized and licensed as
12provided in the Illinois Gambling Act.
13    "Casino Board" means the board appointed pursuant to this
14Act to govern and control the Authority.
15    "Casino management contract" means a legally binding
16agreement between the Authority and a casino operator licensee
17to operate or manage a casino.
18    "Casino operator licensee" means any person or entity
19selected by the Authority and approved and licensed by the
20Gaming Board to manage and operate a casino within the City of
21Chicago pursuant to a casino management contract.
22    "City" means the City of Chicago.
23    "Entity" means a corporation, joint venture, partnership,
24limited liability company, trust, or unincorporated
25association.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB2498- 21 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 22 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 23 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 24 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

HB2498- 26 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 27 -LRB100 03891 AMC 13896 b

1General Assembly. The Advisory Committee shall meet
2periodically and shall report the information to the Mayor of
3the City and to the General Assembly by December 31st of every
4year.
5    The Advisory Committee shall be dissolved on the date that
6casino gambling operations are first conducted at a permanent
7facility under the license authorized under Section 7 of the
8Illinois Gambling Act. For the purposes of this Section, the
9terms "female" and "minority person" have the meanings provided
10in Section 2 of the Business Enterprise for Minorities,
11Females, and Persons with Disabilities Act.
 
12    Section 1-65. Acquisition of property; eminent domain
13proceedings. For the lawful purposes of this Act, the City may
14acquire, by eminent domain or by condemnation proceedings in
15the manner provided by the Eminent Domain Act, real or personal
16property or interests in real or personal property located in
17the City, and the City may convey to the Authority property so
18acquired. The acquisition of property under this Section is
19declared to be for a public use.
 
20    Section 1-67. Limitations on gaming at Chicago airports.
21The Authority may conduct gaming operations in an airport under
22the administration or control of the Chicago Department of
23Aviation. Gaming operations may be conducted pursuant to this
24Section so long as (i) gaming operations are conducted in a

 

 

HB2498- 28 -LRB100 03891 AMC 13896 b

1secured area that is beyond the Transportation Security
2Administration security checkpoints and only available to
3airline passengers at least 21 years of age who are members of
4a private club, and not to the general public, (ii) gaming
5operations are limited to slot machines, as defined in Section
64 of the Illinois Gambling Act, and (iii) the combined number
7of gaming positions operating in the City at the airports and
8at the temporary and permanent casino facility does not exceed
9the maximum number of gaming positions authorized pursuant to
10subsection (h) of Section 7 of the Illinois Gambling Act.
11Gaming operations at an airport are subject to all applicable
12laws and rules that apply to any other gaming facility under
13this Act or the Illinois Gambling Act.
 
14    Section 1-70. Local regulation. In addition to this Act,
15the Illinois Gambling Act, and all of the rules of the Gaming
16Board, the casino facilities and operations therein shall be
17subject to all ordinances and regulations of the City. The
18construction, development, and operation of the casino shall
19comply with all ordinances, regulations, rules, and controls of
20the City, including, but not limited to, those relating to
21zoning and planned development, building, fire prevention, and
22land use. However, the regulation of gaming operations is
23subject to the exclusive jurisdiction of the Gaming Board. The
24Gaming Board shall be responsible for the investigation for and
25issuance of all licenses required by this Act and the Illinois

 

 

HB2498- 29 -LRB100 03891 AMC 13896 b

1Gambling Act.
 
2    Section 1-75. Borrowing.
3    (a) The Authority may borrow money and issue bonds as
4provided in this Section. Bonds of the Authority may be issued
5to provide funds for land acquisition, site assembly and
6preparation, and the design and construction of the casino, as
7defined in the Illinois Gambling Act, all ancillary and related
8facilities comprising the casino complex, and all on-site and
9off-site infrastructure improvements required in connection
10with the development of the casino; to refund (at the time or
11in advance of any maturity or redemption) or redeem any bonds
12of the Authority; to provide or increase a debt service reserve
13fund or other reserves with respect to any or all of its bonds;
14or to pay the legal, financial, administrative, bond insurance,
15credit enhancement, and other legal expenses of the
16authorization, issuance, or delivery of bonds. In this Act, the
17term "bonds" also includes notes of any kind, interim
18certificates, refunding bonds, or any other evidence of
19obligation for borrowed money issued under this Section. Bonds
20may be issued in one or more series and may be payable and
21secured either on a parity with or separately from other bonds.
22    (b) The bonds of the Authority shall be payable from one or
23more of the following sources: (i) the property or revenues of
24the Authority; (ii) revenues derived from the casino; (iii)
25revenues derived from any casino operator licensee; (iv) fees,

 

 

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1bid proceeds, charges, lease payments, payments required
2pursuant to any casino management contract or other revenues
3payable to the Authority, or any receipts of the Authority; (v)
4payments by financial institutions, insurance companies, or
5others pursuant to letters or lines of credit, policies of
6insurance, or purchase agreements; (vi) investment earnings
7from funds or accounts maintained pursuant to a bond resolution
8or trust indenture; (vii) proceeds of refunding bonds; (viii)
9any other revenues derived from or payments by the City; and
10(ix) any payments by any casino operator licensee or others
11pursuant to any guaranty agreement.
12    (c) Bonds shall be authorized by a resolution of the
13Authority and may be secured by a trust indenture by and
14between the Authority and a corporate trustee or trustees,
15which may be any trust company or bank having the powers of a
16trust company within or without the State. Bonds shall meet the
17following requirements:
18        (1) Bonds may bear interest payable at any time or
19    times and at any rate or rates, notwithstanding any other
20    provision of law to the contrary, and may be subject to
21    such other terms and conditions as may be provided by the
22    resolution or indenture authorizing the issuance of such
23    bonds.
24        (2) Bonds issued pursuant to this Section may be
25    payable on such dates and times as may be provided for by
26    the resolution or indenture authorizing the issuance of

 

 

HB2498- 31 -LRB100 03891 AMC 13896 b

1    such bonds; provided, however, that such bonds shall mature
2    no later than 30 years from the date of issuance.
3        (3) Bonds issued pursuant to this Section may be sold
4    pursuant to notice of sale and public bid or by negotiated
5    sale.
6        (4) Bonds shall be payable at a time or times, in the
7    denominations and form, including book entry form, either
8    coupon, registered, or both, and carry the registration and
9    privileges as to exchange, transfer or conversion, and
10    replacement of mutilated, lost, or destroyed bonds as the
11    resolution or trust indenture may provide.
12        (5) Bonds shall be payable in lawful money of the
13    United States at a designated place.
14        (6) Bonds shall be subject to the terms of purchase,
15    payment, redemption, refunding, or refinancing that the
16    resolution or trust indenture provides.
17        (7) Bonds shall be executed by the manual or facsimile
18    signatures of the officers of the Authority designated by
19    the Board, which signatures shall be valid at delivery even
20    for one who has ceased to hold office.
21        (8) Bonds shall be sold at public or private sale in
22    the manner and upon the terms determined by the Authority.
23        (9) Bonds shall be issued in accordance with the
24    provisions of the Local Government Debt Reform Act.
25    (d) The Authority shall adopt a procurement program with
26respect to contracts relating to underwriters, bond counsel,

 

 

HB2498- 32 -LRB100 03891 AMC 13896 b

1financial advisors, and accountants. The program shall include
2goals for the payment of not less than 30% of the total dollar
3value of the fees from these contracts to minority-owned
4businesses and female-owned businesses as defined in the
5Business Enterprise for Minorities, Females, and Persons with
6Disabilities Act. The Authority shall conduct outreach to
7minority-owned businesses and female-owned businesses.
8Outreach shall include, but is not limited to, advertisements
9in periodicals and newspapers, mailings, and other appropriate
10media. The Authority shall submit to the General Assembly a
11comprehensive report that shall include, at a minimum, the
12details of the procurement plan, outreach efforts, and the
13results of the efforts to achieve goals for the payment of
14fees.
15    (e) Subject to the Illinois Gambling Act and rules of the
16Gaming Board regarding pledging of interests in holders of
17owners licenses, any resolution or trust indenture may contain
18provisions that may be a part of the contract with the holders
19of the bonds as to the following:
20        (1) Pledging, assigning, or directing the use,
21    investment, or disposition of revenues of the Authority or
22    proceeds or benefits of any contract, including without
23    limitation any rights in any casino management contract.
24        (2) The setting aside of loan funding deposits, debt
25    service reserves, replacement or operating reserves, cost
26    of issuance accounts and sinking funds, and the regulation,

 

 

HB2498- 33 -LRB100 03891 AMC 13896 b

1    investment, and disposition thereof.
2        (3) Limitations on the purposes to which or the
3    investments in which the proceeds of sale of any issue of
4    bonds or the Authority's revenues and receipts may be
5    applied or made.
6        (4) Limitations on the issue of additional bonds, the
7    terms upon which additional bonds may be issued and
8    secured, the terms upon which additional bonds may rank on
9    a parity with, or be subordinate or superior to, other
10    bonds.
11        (5) The refunding, advance refunding, or refinancing
12    of outstanding bonds.
13        (6) The procedure, if any, by which the terms of any
14    contract with bondholders may be altered or amended and the
15    amount of bonds and holders of which must consent thereto
16    and the manner in which consent shall be given.
17        (7) Defining the acts or omissions that shall
18    constitute a default in the duties of the Authority to
19    holders of bonds and providing the rights or remedies of
20    such holders in the event of a default, which may include
21    provisions restricting individual rights of action by
22    bondholders.
23        (8) Providing for guarantees, pledges of property,
24    letters of credit, or other security, or insurance for the
25    benefit of bondholders.
26    (f) No member of the Casino Board, nor any person executing

 

 

HB2498- 34 -LRB100 03891 AMC 13896 b

1the bonds, shall be liable personally on the bonds or subject
2to any personal liability by reason of the issuance of the
3bonds.
4    (g) The Authority may issue and secure bonds in accordance
5with the provisions of the Local Government Credit Enhancement
6Act.
7    (h) A pledge by the Authority of revenues and receipts as
8security for an issue of bonds or for the performance of its
9obligations under any casino management contract shall be valid
10and binding from the time when the pledge is made. The revenues
11and receipts pledged shall immediately be subject to the lien
12of the pledge without any physical delivery or further act, and
13the lien of any pledge shall be valid and binding against any
14person having any claim of any kind in tort, contract, or
15otherwise against the Authority, irrespective of whether the
16person has notice. No resolution, trust indenture, management
17agreement or financing statement, continuation statement, or
18other instrument adopted or entered into by the Authority need
19be filed or recorded in any public record other than the
20records of the Authority in order to perfect the lien against
21third persons, regardless of any contrary provision of law.
22    (i) Bonds that are being paid or retired by issuance, sale,
23or delivery of bonds, and bonds for which sufficient funds have
24been deposited with the paying agent or trustee to provide for
25payment of principal and interest thereon, and any redemption
26premium, as provided in the authorizing resolution, shall not

 

 

HB2498- 35 -LRB100 03891 AMC 13896 b

1be considered outstanding for the purposes of this subsection.
2    (j) The bonds of the Authority shall not be indebtedness of
3the State. The bonds of the Authority are not general
4obligations of the State and are not secured by a pledge of the
5full faith and credit of the State and the holders of bonds of
6the Authority may not require the application of State revenues
7or funds to the payment of bonds of the Authority. The
8foregoing non-recourse language must be printed in bold-face
9type on the face of the bonds and in the preliminary and final
10official statements on the bonds.
11    (k) The State of Illinois pledges and agrees with the
12owners of the bonds that it will not limit or alter the rights
13and powers vested in the Authority by this Act so as to impair
14the terms of any contract made by the Authority with the owners
15or in any way impair the rights and remedies of the owners
16until the bonds, together with interest on them, and all costs
17and expenses in connection with any action or proceedings by or
18on behalf of the owners, are fully met and discharged. The
19Authority is authorized to include this pledge and agreement in
20any contract with the owners of bonds issued under this
21Section.
22    (l) No person holding an elective office in the City, in
23Cook County, or in this State, holding a seat in the General
24Assembly, or serving as a board member, trustee, officer, or
25employee of the Authority, including the spouse of that person,
26may receive a legal, banking, consulting, or other fee related

 

 

HB2498- 36 -LRB100 03891 AMC 13896 b

1to the issuance of bonds. This prohibition shall also apply to
2a company or firm that employs a person holding an elective
3office in the City, in Cook County, or in this State, holding a
4seat in the General Assembly, or serving as a board member,
5trustee, officer, or employee of the Authority, including the
6spouse of that person, if the person or his or her spouse has
7greater than 7.5% ownership of the company or firm.
 
8    Section 1-85. Derivative products. With respect to all or
9part of any issue of its bonds, the Authority may enter into
10agreements or contracts with any necessary or appropriate
11person, which will have the benefit of providing to the
12Authority an interest rate basis, cash flow basis, or other
13basis different from that provided in the bonds for the payment
14of interest. Such agreements or contracts may include, without
15limitation, agreements or contracts commonly known as
16"interest rate swap agreements", "forward payment conversion
17agreements", "futures", "options", "puts", or "calls" and
18agreements or contracts providing for payments based on levels
19of or changes in interest rates, agreements or contracts to
20exchange cash flows or a series of payments, or to hedge
21payment, rate spread, or similar exposure. Any such agreement
22or contract shall be solely an obligation or indebtedness of
23the Authority and shall not be an obligation or indebtedness of
24the State, nor shall any party thereto have any recourse
25against the State in connection with the agreement or contract.
 

 

 

HB2498- 37 -LRB100 03891 AMC 13896 b

1    Section 1-90. Legality for investment. The State of
2Illinois, all governmental entities, all public officers,
3banks, bankers, trust companies, savings banks and
4institutions, building and loan associations, savings and loan
5associations, investment companies, and other persons carrying
6on a banking business, insurance companies, insurance
7associations, and other persons carrying on an insurance
8business, and all executors, administrators, guardians,
9trustees, and other fiduciaries may legally invest any sinking
10funds, moneys, or other funds belonging to them or within their
11control in any bonds issued under this Act. However, nothing in
12this Section shall be construed as relieving any person or
13entity from any duty of exercising reasonable care in selecting
14securities for purchase or investment.
 
15    Section 1-105. Budgets and reporting.
16    (a) The Casino Board shall annually adopt a budget for each
17fiscal year. The budget may be modified from time to time in
18the same manner and upon the same vote as it may be adopted.
19The budget shall include the Authority's available funds and
20estimated revenues and shall provide for payment of its
21obligations and estimated expenditures for the fiscal year,
22including, without limitation, expenditures for
23administration, operation, maintenance and repairs, debt
24service, and deposits into reserve and other funds and capital

 

 

HB2498- 38 -LRB100 03891 AMC 13896 b

1projects.
2    (b) The Casino Board shall annually cause the finances of
3the Authority to be audited by a firm of certified public
4accountants selected by the Casino Board in accordance with the
5rules of the Gaming Board and post on the Authority's Internet
6website such financial information as is required to be posted
7by all other owners licensees under the Illinois Gambling Act.
8    (c) The Casino Board shall, for each fiscal year, prepare
9an annual report setting forth information concerning its
10activities in the fiscal year and the status of the development
11of the casino. The annual report shall include financial
12information of the Authority consistent with that which is
13required for all other owners licensees under the Illinois
14Gambling Act, the budget for the succeeding fiscal year, and
15the current capital plan as of the date of the report. Copies
16of the annual report shall be made available to persons who
17request them and shall be submitted not later than 120 days
18after the end of the Authority's fiscal year or, if the audit
19of the Authority's financial statements is not completed within
20120 days after the end of the Authority's fiscal year, as soon
21as practical after completion of the audit, to the Governor,
22the Mayor, the General Assembly, and the Commission on
23Government Forecasting and Accountability.
 
24    Section 1-110. Deposit and withdrawal of funds.
25    (a) All funds deposited by the Authority in any bank or

 

 

HB2498- 39 -LRB100 03891 AMC 13896 b

1savings and loan association shall be placed in the name of the
2Authority and shall be withdrawn or paid out only by check or
3draft upon the bank or savings and loan association, signed by
42 officers or employees designated by the Casino Board.
5Notwithstanding any other provision of this Section, the Casino
6Board may designate any of its members or any officer or
7employee of the Authority to authorize the wire transfer of
8funds deposited by the secretary-treasurer of funds in a bank
9or savings and loan association for the payment of payroll and
10employee benefits-related expenses.
11    No bank or savings and loan association shall receive
12public funds as permitted by this Section unless it has
13complied with the requirements established pursuant to Section
146 of the Public Funds Investment Act.
15    (b) If any officer or employee whose signature appears upon
16any check or draft issued pursuant to this Act ceases (after
17attaching his signature) to hold his or her office before the
18delivery of such a check or draft to the payee, his or her
19signature shall nevertheless be valid and sufficient for all
20purposes with the same effect as if he or she had remained in
21office until delivery thereof.
 
22    Section 1-112. Contracts with the Authority or casino
23operator licensee; disclosure requirements.
24    (a) A bidder, respondent, offeror, or contractor for
25contracts with the Authority or casino operator licensee shall

 

 

HB2498- 40 -LRB100 03891 AMC 13896 b

1disclose the identity of all officers and directors and every
2owner, beneficiary, or person with beneficial interest of more
3than 1% or shareholder entitled to receive more than 1% of the
4total distributable income of any corporation having any
5interest in the contract or in the bidder, respondent, offeror,
6or contractor. The disclosure shall be in writing and attested
7to by an owner, trustee, corporate official, or agent. If stock
8in a corporation is publicly traded and there is no readily
9known individual having greater than a 1% interest, then a
10statement to that effect attested to by an officer or agent of
11the corporation shall fulfill the disclosure statement
12requirement of this Section. A bidder, respondent, offeror, or
13contractor shall notify the Authority of any changes in
14officers, directors, ownership, or individuals having a
15beneficial interest of more than 1%. Notwithstanding the
16provisions of this subsection (a), the Gaming Board may adopt
17rules in connection with contractors for contracts with the
18Authority or the casino operator licensee.
19    (b) A bidder, respondent, offeror, or contractor for
20contracts with an annual value of $25,000 or more or for a
21period to exceed one year shall disclose all political
22contributions of the bidder, respondent, offeror, or
23contractor and any affiliated person or entity. Disclosure
24shall include at least the names and addresses of the
25contributors and the dollar amounts of any contributions to any
26political committee made within the previous 2 years. The

 

 

HB2498- 41 -LRB100 03891 AMC 13896 b

1disclosure must be submitted to the Gaming Board with a copy of
2the contract. All such disclosures shall be posted on the
3websites of the Authority and the Gaming Board.
4    (c) As used in this Section:
5    "Contribution" means contribution as defined in Section
69-1.4 of the Election Code.
7    "Affiliated person" means (i) any person with any ownership
8interest or distributive share of the bidding, responding, or
9contracting entity in excess of 1%, (ii) executive employees of
10the bidding, responding, or contracting entity, and (iii) the
11spouse, minor children, and parents of any such persons.
12    "Affiliated entity" means (i) any parent or subsidiary of
13the bidding or contracting entity, (ii) any member of the same
14unitary business group, or (iii) any political committee for
15which the bidding, responding, or contracting entity is the
16sponsoring entity.
17    (d) The Gaming Board may direct the Authority or a casino
18operator licensee to void a contract if a violation of this
19Section occurs. The Authority may direct a casino operator
20licensee to void a contract if a violation of this Section
21occurs.
22    (e) All contracts pertaining to the actual operation of the
23casino and related gaming activities shall be entered into by
24the casino operator licensee and not the Authority and shall be
25subject to the regulation, oversight, and approval of the
26Gaming Board, applying the same regulation, oversight, and

 

 

HB2498- 42 -LRB100 03891 AMC 13896 b

1approval requirements as would be applied to any other owners
2licensee under the Illinois Gambling Act.
 
3    Section 1-115. Purchasing.
4    (a) The Casino Board shall designate an officer of the
5Authority to serve as the Chief Procurement Officer for the
6Authority. The Chief Procurement Officer shall have all powers
7and duties set forth in Section 15 of Division 10 of Article 8
8of the Illinois Municipal Code. Except as otherwise provided in
9this Section, the Chief Procurement Officer of the Authority
10shall conduct procurements on behalf of the Authority subject
11to Title 2, Chapter 92 of the Municipal Code of Chicago, which
12by its terms incorporates Division 10 of Article 8 of the
13Illinois Municipal Code.
14    (b) All contracts for amounts greater than $25,000 must be
15approved by the Casino Board and executed by the chairperson of
16the Casino Board and executive director of the Authority.
17Contracts for amounts of $25,000 or less may be approved and
18executed by the Chief Procurement Officer for the Authority and
19executive director of the Authority, with approval by the chief
20legal counsel for the Authority as to form and legality.
21    (c) All construction contracts and contracts for supplies,
22materials, equipment, and services for amounts greater than
23$25,000 shall be let by a competitive selection process to the
24lowest responsible proposer, after advertising for proposals,
25except for the following:

 

 

HB2498- 43 -LRB100 03891 AMC 13896 b

1        (1) when repair parts, accessories, equipment, or
2    services are required for equipment or services previously
3    furnished or contracted for;
4        (2) when services such as water, light, heat, power,
5    telephone (other than long-distance service), or telegraph
6    are required;
7        (3) casino management contracts, which shall be
8    awarded as set forth in Section 1-45 of this Act;
9        (4) contracts where there is only one economically
10    feasible source;
11        (5) when a purchase is needed on an immediate,
12    emergency basis because there exists a threat to public
13    health or public safety, or when immediate expenditure is
14    necessary for repairs to Authority property in order to
15    protect against further loss of or damage to Authority
16    property, to prevent or minimize serious disruption in
17    Authority services or to ensure the integrity of Authority
18    records;
19        (6) contracts for professional services other than for
20    management of the casino, except such contracts described
21    in subsection (d) of this Section; and
22        (7) contracts for the use, purchase, delivery,
23    movement, or installation of (i) data processing
24    equipment, software, and services and (ii)
25    telecommunications equipment, software, and services.
26    (d) Contracts for professional services for a term of more

 

 

HB2498- 44 -LRB100 03891 AMC 13896 b

1than one year or contracts that may require payment in excess
2of $25,000 in one year shall be let by a competitive bidding
3process to the most highly qualified firm that agrees to
4compensation and other terms of engagement that are both
5reasonable and acceptable to the Casino Board.
6    (e) All contracts involving less than $25,000 shall be let
7by competitive selection process whenever possible, and in any
8event in a manner calculated to ensure the best interests of
9the public.
10    (f) In determining the responsibility of any proposer, the
11Authority may take into account the proposer's (or an
12individual having a beneficial interest, directly or
13indirectly, of more than 1% in such proposing entity) past
14record of dealings with the Authority, the proposer's
15experience, adequacy of equipment, and ability to complete
16performance within the time set, and other factors besides
17financial responsibility. No such contract shall be awarded to
18any proposer other than the lowest proposer (in case of
19purchase or expenditure) unless authorized or approved by a
20vote of at least 3 members of the Casino Board and such action
21is accompanied by a written statement setting forth the reasons
22for not awarding the contract to the highest or lowest
23proposer, as the case may be. The statement shall be kept on
24file in the principal office of the Authority and open to
25public inspection.
26    (g) The Authority shall have the right to reject all

 

 

HB2498- 45 -LRB100 03891 AMC 13896 b

1proposals and to re-advertise for proposals. If after any such
2re-advertisement, no responsible and satisfactory proposals,
3within the terms of the re-advertisement, is received, the
4Authority may award such contract without competitive
5selection. The contract must not be less advantageous to the
6Authority than any valid proposal received pursuant to
7advertisement.
8    (h) Advertisements for proposals and re-proposals shall be
9published at least once in a daily newspaper of general
10circulation published in the City at least 10 calendar days
11before the time for receiving proposals and in an online
12bulletin published on the Authority's website. Such
13advertisements shall state the time and place for receiving and
14opening of proposals and, by reference to plans and
15specifications on file at the time of the first publication or
16in the advertisement itself, shall describe the character of
17the proposed contract in sufficient detail to fully advise
18prospective proposers of their obligations and to ensure free
19and open competitive selection.
20    (i) All proposals in response to advertisements shall be
21sealed and shall be publicly opened by the Authority. All
22proposers shall be entitled to be present in person or by
23representatives. Cash or a certified or satisfactory cashier's
24check, as a deposit of good faith, in a reasonable amount to be
25fixed by the Authority before advertising for proposals, shall
26be required with the proposal. A bond for faithful performance

 

 

HB2498- 46 -LRB100 03891 AMC 13896 b

1of the contract with surety or sureties satisfactory to the
2Authority and adequate insurance may be required in reasonable
3amounts to be fixed by the Authority before advertising for
4proposals.
5    (j) The contract shall be awarded as promptly as possible
6after the opening of proposals. The proposal of the successful
7proposer, as well as the bids of the unsuccessful proposers,
8shall be placed on file and be open to public inspection
9subject to the exemptions from disclosure provided under
10Section 7 of the Freedom of Information Act. All proposals
11shall be void if any disclosure of the terms of any proposals
12in response to an advertisement is made or permitted to be made
13by the Authority before the time fixed for opening proposals.
14    (k) Notice of each and every contract that is offered,
15including renegotiated contracts and change orders, shall be
16published in an online bulletin. The online bulletin must
17include at least the date first offered, the date submission of
18offers is due, the location that offers are to be submitted to,
19a brief purchase description, the method of source selection,
20information of how to obtain a comprehensive purchase
21description and any disclosure and contract forms, and
22encouragement to prospective vendors to hire qualified
23veterans, as defined by Section 45-67 of the Illinois
24Procurement Code, and Illinois residents discharged from any
25Illinois adult correctional center subject to Gaming Board
26licensing and eligibility rules. Notice of each and every

 

 

HB2498- 47 -LRB100 03891 AMC 13896 b

1contract that is let or awarded, including renegotiated
2contracts and change orders, shall be published in the online
3bulletin and must include at least all of the information
4specified in this subsection (k), as well as the name of the
5successful responsible proposer or offeror, the contract
6price, and the number of unsuccessful responsive proposers and
7any other disclosure specified in this Section. This notice
8must be posted in the online electronic bulletin prior to
9execution of the contract.
 
10    Section 1-130. Affirmative action and equal opportunity
11obligations of Authority.
12    (a) The Authority is subject to the requirements of Article
13IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720
14inclusive) of the Chicago Municipal Code, as now or hereafter
15amended, renumbered, or succeeded, concerning a Minority-Owned
16and Women-Owned Business Enterprise Procurement Program for
17construction contracts, and Section 2-92-420 et seq. of the
18Chicago Municipal Code, as now or hereafter amended,
19renumbered, or succeeded, concerning a Minority-Owned and
20Women-Owned Business Enterprise Procurement Program.
21    (b) The Authority is authorized to enter into agreements
22with contractors' associations, labor unions, and the
23contractors working on the development of the casino to
24establish an apprenticeship preparedness training program to
25provide for an increase in the number of minority and female

 

 

HB2498- 48 -LRB100 03891 AMC 13896 b

1journeymen and apprentices in the building trades and to enter
2into agreements with community college districts or other
3public or private institutions to provide readiness training.
4The Authority is further authorized to enter into contracts
5with public and private educational institutions and persons in
6the gaming, entertainment, hospitality, and tourism industries
7to provide training for employment in those industries.
 
8    Section 1-135. Transfer of interest. Neither the Authority
9nor the City may sell, lease, rent, transfer, exchange, or
10otherwise convey any interest that they have in the casino
11without prior approval of the General Assembly.
 
12    Section 1-140. Home rule. The regulation and licensing of
13casinos and casino gaming, casino gaming facilities, and casino
14operator licensees under this Act are exclusive powers and
15functions of the State. A home rule unit may not regulate or
16license casinos, casino gaming, casino gaming facilities, or
17casino operator licensees under this Act, except as provided
18under this Act. This Section is a denial and limitation of home
19rule powers and functions under subsection (h) of Section 6 of
20Article VII of the Illinois Constitution.
 
21    Section 1-145. Prohibition of political contributions from
22casino operator licensees and applicants.
23    (a) The General Assembly has a compelling interest in

 

 

HB2498- 49 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 50 -LRB100 03891 AMC 13896 b

1contracts and pending bids or proposals for contracts of over
2$50,000 and certain individuals and entities affiliated with
3such persons. Certain gaming licensees will receive receipts
4far in excess of the base level of contract amounts subject to
5such other campaign contribution prohibitions.
6    (b) As used in this Section:
7    "Affiliated entity" means (i) any corporate parent and
8operating subsidiary of the business entity applying for or
9holding a license, (ii) each operating subsidiary of the
10corporate parent of the business entity applying for or holding
11a license, (iii) any organization recognized by the United
12States Internal Revenue Service as a tax-exempt organization
13described in Section 501(c) of the Internal Revenue Code of
141986 (or any successor provision of federal tax law)
15established by one or more business entities seeking or holding
16a license, any affiliated entity of such business entity, or
17any affiliated person of such business entity, and (iv) any
18political committee for which the business entity applying for
19or holding a license, or any 501(c) organization described in
20item (iii) related to that business entity, is the sponsoring
21entity as defined in Section 9-3 of the Election Code. For
22purposes of item (iv), the funding of all business entities
23applying for or holding a license shall be aggregated in
24determining whether such political committee is an affiliated
25entity.
26    "Affiliated person" means (i) any person with any ownership

 

 

HB2498- 51 -LRB100 03891 AMC 13896 b

1interest or distributive share in excess of 7.5% of any
2business entity applying for or holding a license, (ii)
3executive employees of any such business entity, (iii) any
4person designated as a key person under the Illinois Gambling
5Act, and (iv) the spouse of the persons described in items (i)
6through (iii).
7    "Business entity" means any entity doing business for
8profit, whether organized as a corporation, partnership, sole
9proprietorship, limited liability company, or partnership or
10otherwise.
11    "Contribution" means a contribution as defined in Section
129-1.4 of the Election Code.
13    "Declared candidate" means a person who has filed a
14statement of candidacy and petition for nomination or election
15in the principal office of the State Board of Elections, or in
16the office of the appropriate election authority for any county
17or municipality in which a casino is located or proposed or
18which receives any gaming revenue.
19    "Executive employee" means (i) any person who is an officer
20or director or who fulfills duties equivalent to those of an
21officer or director of a business entity applying for or
22holding a license and (ii) any employee of such business entity
23who is required to register under the Lobbyist Registration
24Act.
25    "License" means the casino operator license issued
26pursuant to this Act.

 

 

HB2498- 52 -LRB100 03891 AMC 13896 b

1    "Officeholder" means the Governor, Lieutenant Governor,
2Attorney General, Secretary of State, Comptroller, Treasurer,
3member of the General Assembly, or any officeholder in any
4county or municipality in which a riverboat, casino, or
5electronic gaming device is located or proposed or that
6receives any gaming revenue.
7    (c) Any person or business entity applying for or holding a
8license, any affiliated entities or persons of such business
9entity, and any entities or persons soliciting a contribution
10or causing a contribution to be made on behalf of such person
11or business entity, are prohibited from making any contribution
12to any officeholder or declared candidate or any political
13committee affiliated with any officeholder or declared
14candidate, as defined in Section 9-1.8 of the Election Code.
15This prohibition shall commence upon filing of an application
16for a license and shall continue for a period of 2 years after
17termination, suspension or revocation of the license.
18    The Gaming Board shall have authority to suspend, revoke,
19or restrict the license and to impose civil penalties of up to
20$100,000 for each violation of this subsection (c). A notice of
21each such violation and the penalty imposed shall be published
22on the Gaming Board's Internet website and in the Illinois
23Register. Payments received by the State pursuant to this
24subsection (c) shall be deposited into the General Revenue
25Fund.
26    Any officeholder or declared candidate or any political

 

 

HB2498- 53 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 54 -LRB100 03891 AMC 13896 b

1invalidity of that provision or application does not affect the
2other provisions or applications of this Section that can be
3given effect without the invalid application or provision.
 
4
ARTICLE 90.

 
5    Section 90-1. Findings. The General Assembly makes all of
6the following findings:
7        (1) That the cumulative reduction to pre-K through 12
8    education funding since 2009 is approximately
9    $861,000,000.
10        (2) That during the last 2 years, general state aid to
11    Illinois common schools has been underfunded as a result of
12    budget cuts, resulting in pro-rated payments to school
13    districts that are less than the foundational level of
14    $6,119 per pupil, which represents the minimum each pupil
15    needs to be educated.
16        (3) That a significant infusion of new revenue is
17    necessary in order to fully fund the foundation level and
18    to maintain and support education in Illinois.
19        (4) That the decline of the Illinois horse racing and
20    breeding program, a $2.5 billion industry, would be
21    reversed if this amendatory Act of the 100th General
22    Assembly would be enacted.
23        (5) That the Illinois horse racing industry is on the
24    verge of extinction due to fierce competition from fully

 

 

HB2498- 55 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 56 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 57 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 58 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 59 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 60 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 61 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 62 -LRB100 03891 AMC 13896 b

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

 

 

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1Governor, Attorney General, Secretary of State, Comptroller,
2or Treasurer of any other inspector general required or
3permitted by law. The Governor, Attorney General, Secretary of
4State, Comptroller, and Treasurer each may appoint an existing
5inspector general as the Executive Inspector General required
6by this Article, provided that such an inspector general is not
7prohibited by law, rule, jurisdiction, qualification, or
8interest from serving as the Executive Inspector General
9required by this Article. An appointing authority may not
10appoint a relative as an Executive Inspector General.
11    Each Executive Inspector General shall have the following
12qualifications:
13        (1) has not been convicted of any felony under the laws
14    of this State, another State, or the United States;
15        (2) has earned a baccalaureate degree from an
16    institution of higher education; and
17        (3) has 5 or more years of cumulative service (A) with
18    a federal, State, or local law enforcement agency, at least
19    2 years of which have been in a progressive investigatory
20    capacity; (B) as a federal, State, or local prosecutor; (C)
21    as a senior manager or executive of a federal, State, or
22    local agency; (D) as a member, an officer, or a State or
23    federal judge; or (E) representing any combination of (A)
24    through (D).
25    The term of each initial Executive Inspector General shall
26commence upon qualification and shall run through June 30,

 

 

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12008. The initial appointments shall be made within 60 days
2after the effective date of this Act.
3    After the initial term, each Executive Inspector General
4shall serve for 5-year terms commencing on July 1 of the year
5of appointment and running through June 30 of the fifth
6following year. An Executive Inspector General may be
7reappointed to one or more subsequent terms.
8    A vacancy occurring other than at the end of a term shall
9be filled by the appointing authority only for the balance of
10the term of the Executive Inspector General whose office is
11vacant.
12    Terms shall run regardless of whether the position is
13filled.
14    (c) The Executive Inspector General appointed by the
15Attorney General shall have jurisdiction over the Attorney
16General and all officers and employees of, and vendors and
17others doing business with, State agencies within the
18jurisdiction of the Attorney General. The Executive Inspector
19General appointed by the Secretary of State shall have
20jurisdiction over the Secretary of State and all officers and
21employees of, and vendors and others doing business with, State
22agencies within the jurisdiction of the Secretary of State. The
23Executive Inspector General appointed by the Comptroller shall
24have jurisdiction over the Comptroller and all officers and
25employees of, and vendors and others doing business with, State
26agencies within the jurisdiction of the Comptroller. The

 

 

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

 

 

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1this purpose. Subject to Section 20-45 of this Act, each
2Executive Inspector General has full authority to organize his
3or her Office of the Executive Inspector General, including the
4employment and determination of the compensation of staff, such
5as deputies, assistants, and other employees, as
6appropriations permit. A separate appropriation shall be made
7for each Office of Executive Inspector General.
8    (e) No Executive Inspector General or employee of the
9Office of the Executive Inspector General may, during his or
10her term of appointment or employment:
11        (1) become a candidate for any elective office;
12        (2) hold any other elected or appointed public office
13    except for appointments on governmental advisory boards or
14    study commissions or as otherwise expressly authorized by
15    law;
16        (3) be actively involved in the affairs of any
17    political party or political organization; or
18        (4) advocate for the appointment of another person to
19    an appointed or elected office or position or actively
20    participate in any campaign for any elective office.
21    In this subsection an appointed public office means a
22position authorized by law that is filled by an appointing
23authority as provided by law and does not include employment by
24hiring in the ordinary course of business.
25    (e-1) No Executive Inspector General or employee of the
26Office of the Executive Inspector General may, for one year

 

 

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1after the termination of his or her appointment or employment:
2        (1) become a candidate for any elective office;
3        (2) hold any elected public office; or
4        (3) hold any appointed State, county, or local judicial
5    office.
6    (e-2) The requirements of item (3) of subsection (e-1) may
7be waived by the Executive Ethics Commission.
8    (f) An Executive Inspector General may be removed only for
9cause and may be removed only by the appointing constitutional
10officer. At the time of the removal, the appointing
11constitutional officer must report to the Executive Ethics
12Commission the justification for the removal.
13(Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)
 
14    Section 90-5. The Alcoholism and Other Drug Abuse and
15Dependency Act is amended by changing Section 5-20 as follows:
 
16    (20 ILCS 301/5-20)
17    Sec. 5-20. Compulsive gambling program.
18    (a) Subject to appropriation, the Department shall
19establish a program for public education, research, and
20training regarding problem and compulsive gambling and the
21treatment and prevention of problem and compulsive gambling.
22Subject to specific appropriation for these stated purposes,
23the program must include all of the following:
24        (1) Establishment and maintenance of a toll-free "800"

 

 

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1    telephone number to provide crisis counseling and referral
2    services to families experiencing difficulty as a result of
3    problem or compulsive gambling.
4        (2) Promotion of public awareness regarding the
5    recognition and prevention of problem and compulsive
6    gambling.
7        (3) Facilitation, through in-service training and
8    other means, of the availability of effective assistance
9    programs for problem and compulsive gamblers.
10        (4) Conducting studies to identify adults and
11    juveniles in this State who are, or who are at risk of
12    becoming, problem or compulsive gamblers.
13    (b) Subject to appropriation, the Department shall either
14establish and maintain the program or contract with a private
15or public entity for the establishment and maintenance of the
16program. Subject to appropriation, either the Department or the
17private or public entity shall implement the toll-free
18telephone number, promote public awareness, and conduct
19in-service training concerning problem and compulsive
20gambling.
21    (c) Subject to appropriation, the Department shall produce
22and supply the signs specified in Section 10.7 of the Illinois
23Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
241975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
25of the Charitable Games Act, and Section 13.1 of the Illinois
26Riverboat Gambling Act.

 

 

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1(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 
2    Section 90-6. The Department of Commerce and Economic
3Opportunity Law of the Civil Administrative Code of Illinois is
4amended by adding Sections 605-530 and 605-535 as follows:
 
5    (20 ILCS 605/605-530 new)
6    Sec. 605-530. The Depressed Communities Economic
7Development Board.
8    (a) The Depressed Communities Economic Development Board
9is created as an advisory board within the Department of
10Commerce and Economic Opportunity. The Board shall consist of
11the following members:
12        (1) 3 members appointed by the Governor, one of whom
13    shall be appointed to serve an initial term of one year and
14    2 of whom shall be appointed to serve an initial term of 2
15    years;
16        (2) 2 members appointed by the Speaker of the House of
17    Representatives, one of whom shall be appointed to serve an
18    initial term of one year and one of whom shall be appointed
19    to serve an initial term of 2 years;
20        (3) 2 members appointed by the President of the Senate,
21    one of whom shall be appointed to serve an initial term of
22    one year and one of whom shall be appointed to serve an
23    initial term of 2 years;
24        (4) 2 members appointed by the Minority Leader of the

 

 

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

 

 

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

 

 

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

 

 

HB2498- 73 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

HB2498- 75 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB2498- 81 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

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

 

 

HB2498- 84 -LRB100 03891 AMC 13896 b

1    upon the management agreement.
2        (21) Right of use of copyrights, trademarks, and
3    service marks held by the Department in the name of the
4    State. The agreement must provide that any use of them by
5    the manager shall only be for the purpose of fulfilling its
6    obligations under the management agreement during the term
7    of the agreement.
8        (22) The disclosure of any information requested by the
9    Department to enable it to comply with the reporting
10    requirements and information requests provided for under
11    subsection (p) of this Section.
12    (e) Notwithstanding any other law to the contrary, the
13Department shall select a private manager through a competitive
14request for qualifications process consistent with Section
1520-35 of the Illinois Procurement Code, which shall take into
16account:
17        (1) the offeror's ability to market the Lottery to
18    those residents who are new, infrequent, or lapsed players
19    of the Lottery, especially those who are most likely to
20    make regular purchases on the Internet;
21        (2) the offeror's ability to address the State's
22    concern with the social effects of gambling on those who
23    can least afford to do so;
24        (3) the offeror's ability to provide the most
25    successful management of the Lottery for the benefit of the
26    people of the State based on current and past business

 

 

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

 

 

HB2498- 86 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 87 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 88 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 89 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 90 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 91 -LRB100 03891 AMC 13896 b

1adopted selection process upon the termination of a private
2management agreement. The Department, after the Chief
3Procurement Officer certifies that the procurement process has
4been followed in accordance with the rules adopted under this
5subsection (o), shall select a final offeror as the private
6manager and sign the management agreement with the private
7manager.
8    Except as provided in Sections 21.2, 21.5, 21.6, 21.7,
921.8, and 21.9, the Department shall distribute all proceeds of
10lottery tickets and shares sold in the following priority and
11manner:
12        (1) The payment of prizes and retailer bonuses.
13        (2) The payment of costs incurred in the operation and
14    administration of the Lottery, including the payment of
15    sums due to the private manager under the management
16    agreement with the Department.
17        (3) On the last day of each month or as soon thereafter
18    as possible, the State Comptroller shall direct and the
19    State Treasurer shall transfer from the State Lottery Fund
20    to the Common School Fund an amount that is equal to the
21    proceeds transferred in the corresponding month of fiscal
22    year 2009, as adjusted for inflation, to the Common School
23    Fund.
24        (4) On or before the last day of each fiscal year,
25    deposit any remaining proceeds, subject to payments under
26    items (1), (2), and (3) into the Capital Projects Fund each

 

 

HB2498- 92 -LRB100 03891 AMC 13896 b

1    fiscal year.
2    (p) The Department shall be subject to the following
3reporting and information request requirements:
4        (1) the Department shall submit written quarterly
5    reports to the Governor and the General Assembly on the
6    activities and actions of the private manager selected
7    under this Section;
8        (2) upon request of the Chief Procurement Officer, the
9    Department shall promptly produce information related to
10    the procurement activities of the Department and the
11    private manager requested by the Chief Procurement
12    Officer; the Chief Procurement Officer must retain
13    confidential, proprietary, or trade secret information
14    designated by the Department in complete confidence
15    pursuant to subsection (g) of Section 7 of the Freedom of
16    Information Act; and
17        (3) at least 30 days prior to the beginning of the
18    Department's fiscal year, the Department shall prepare an
19    annual written report on the activities of the private
20    manager selected under this Section and deliver that report
21    to the Governor and General Assembly.
22(Source: P.A. 97-464, eff. 8-19-11; 98-463, eff. 8-16-13;
2398-649, eff. 6-16-14.)
 
24    Section 90-10. The Department of Revenue Law of the Civil
25Administrative Code of Illinois is amended by changing Section

 

 

HB2498- 93 -LRB100 03891 AMC 13896 b

12505-305 as follows:
 
2    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
3    Sec. 2505-305. Investigators.
4    (a) The Department has the power to appoint investigators
5to conduct all investigations, searches, seizures, arrests,
6and other duties imposed under the provisions of any law
7administered by the Department. Except as provided in
8subsection (c), these investigators have and may exercise all
9the powers of peace officers solely for the purpose of
10enforcing taxing measures administered by the Department.
11    (b) The Director must authorize to each investigator
12employed under this Section and to any other employee of the
13Department exercising the powers of a peace officer a distinct
14badge that, on its face, (i) clearly states that the badge is
15authorized by the Department and (ii) contains a unique
16identifying number. No other badge shall be authorized by the
17Department.
18    (c) The Department may enter into agreements with the
19Illinois Gaming Board providing that investigators appointed
20under this Section shall exercise the peace officer powers set
21forth in paragraph (20.6) of subsection (c) of Section 5 of the
22Illinois Riverboat Gambling Act.
23(Source: P.A. 96-37, eff. 7-13-09.)
 
24    Section 90-12. The Illinois State Auditing Act is amended

 

 

HB2498- 94 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 95 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 96 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 97 -LRB100 03891 AMC 13896 b

1    The Auditor General of the State of Illinois shall annually
2conduct or cause to be conducted a financial and compliance
3audit of the books and records of any county water commission
4organized pursuant to the Water Commission Act of 1985 and
5shall file a copy of the report of that audit with the Governor
6and the Legislative Audit Commission. The filed audit shall be
7open to the public for inspection. The cost of the audit shall
8be charged to the county water commission in accordance with
9Section 6z-27 of the State Finance Act. The county water
10commission shall make available to the Auditor General its
11books and records and any other documentation, whether in the
12possession of its trustees or other parties, necessary to
13conduct the audit required. These audit requirements apply only
14through July 1, 2007.
15    The Auditor General must conduct audits of the Rend Lake
16Conservancy District as provided in Section 25.5 of the River
17Conservancy Districts Act.
18    The Auditor General must conduct financial audits of the
19Southeastern Illinois Economic Development Authority as
20provided in Section 70 of the Southeastern Illinois Economic
21Development Authority Act.
22    The Auditor General shall conduct a compliance audit in
23accordance with subsections (d) and (f) of Section 30 of the
24Innovation Development and Economy Act.
25(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
2696-939, eff. 6-24-10.)
 

 

 

HB2498- 98 -LRB100 03891 AMC 13896 b

1    Section 90-15. The State Finance Act is amended by adding
2Sections 5.878, 5.879, 5.880, 5.881, 6z-102, and 6z-103 and by
3changing 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 State Fairgrounds Capital Improvement
8Fund.
 
9    (30 ILCS 105/5.880 new)
10    Sec. 5.880. The Depressed Communities Economic Development
11Fund.
 
12    (30 ILCS 105/5.881 new)
13    Sec. 5.881. The Latino Community Economic Development
14Fund.
 
15    (30 ILCS 105/6z-45)
16    Sec. 6z-45. The School Infrastructure Fund.
17    (a) The School Infrastructure Fund is created as a special
18fund in the State Treasury.
19    In addition to any other deposits authorized by law,
20beginning January 1, 2000, on the first day of each month, or

 

 

HB2498- 99 -LRB100 03891 AMC 13896 b

1as soon thereafter as may be practical, the State Treasurer and
2State Comptroller shall transfer the sum of $5,000,000 from the
3General Revenue Fund to the School Infrastructure Fund, except
4that, notwithstanding any other provision of law, and in
5addition to any other transfers that may be provided for by
6law, before June 30, 2012, the Comptroller and the Treasurer
7shall transfer $45,000,000 from the General Revenue Fund into
8the School Infrastructure Fund, and, for fiscal year 2013 only,
9the Treasurer and the Comptroller shall transfer $1,250,000
10from the General Revenue Fund to the School Infrastructure Fund
11on the first day of each month; provided, however, that no such
12transfers shall be made from July 1, 2001 through June 30,
132003.
14    (b) Subject to the transfer provisions set forth below,
15money in the School Infrastructure Fund shall, if and when the
16State of Illinois incurs any bonded indebtedness for the
17construction of school improvements under the School
18Construction Law, be set aside and used for the purpose of
19paying and discharging annually the principal and interest on
20that bonded indebtedness then due and payable, and for no other
21purpose.
22    In addition to other transfers to the General Obligation
23Bond Retirement and Interest Fund made pursuant to Section 15
24of the General Obligation Bond Act, upon each delivery of bonds
25issued for construction of school improvements under the School
26Construction Law, the State Comptroller shall compute and

 

 

HB2498- 100 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 101 -LRB100 03891 AMC 13896 b

1calculation of the amounts to be transferred under this
2subsection.
3    (b-5) The money deposited into the School Infrastructure
4Fund from transfers pursuant to subsections (c-30) and (c-35)
5of Section 13 of the Illinois Riverboat Gambling Act shall be
6applied, without further direction, as provided in subsection
7(b-3) of Section 5-35 of the School Construction Law.
8    (c) The surplus, if any, in the School Infrastructure Fund
9after payments made pursuant to subsections (b) and (b-5) of
10this Section shall, subject to appropriation, be used as
11follows:
12    First - to make 3 payments to the School Technology
13Revolving Loan Fund as follows:
14        Transfer of $30,000,000 in fiscal year 1999;
15        Transfer of $20,000,000 in fiscal year 2000; and
16        Transfer of $10,000,000 in fiscal year 2001.
17    Second - to pay the expenses of the State Board of
18Education and the Capital Development Board in administering
19programs under the School Construction Law, the total expenses
20not to exceed $1,200,000 in any fiscal year.
21    Third - to pay any amounts due for grants for school
22construction projects and debt service under the School
23Construction Law.
24    Fourth - to pay any amounts due for grants for school
25maintenance projects under the School Construction Law.
26(Source: P.A. 97-732, eff. 6-30-12; 98-18, eff. 6-7-13.)
 

 

 

HB2498- 102 -LRB100 03891 AMC 13896 b

1    (30 ILCS 105/6z-102 new)
2    Sec. 6z-102. The Gaming Facilities Fee Revenue Fund.
3    (a) The Gaming Facilities Fee Revenue Fund is created as a
4special fund in the State treasury.
5    (b) The revenues in the Fund shall be used, subject to
6appropriation, by the Comptroller for the purpose of (i)
7providing appropriations to the Illinois Gaming Board for the
8administration and enforcement of the Illinois Gambling Act and
9the applicable provisions of the Chicago Casino Development
10Authority Act and (ii) payment of vouchers that are outstanding
11for more than 60 days. Whenever practical, the Comptroller must
12prioritize voucher payments for expenses related to medical
13assistance under the Illinois Public Aid Code, the Children's
14Health Insurance Program Act, the Covering ALL KIDS Health
15Insurance Act, and the Senior Citizens and Disabled Persons
16Property Tax Relief and Pharmaceutical Assistance Act.
17    (c) The Fund shall consist of fee revenues received
18pursuant to subsection (e) of Section 1-45 of the Chicago
19Casino Development Authority Act and pursuant to subsections
20(e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections
21(b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling
22Act. All interest earned on moneys in the Fund shall be
23deposited into the Fund.
24    (d) The Fund shall not be subject to administrative charges
25or chargebacks, including, but not limited to, those authorized

 

 

HB2498- 103 -LRB100 03891 AMC 13896 b

1under subsection (h) of Section 8 of this Act.
 
2    (30 ILCS 105/6z-103 new)
3    Sec. 6z-103. The State Fairgrounds Capital Improvement
4Fund. There is created the State Fairgrounds Capital
5Improvement Fund, a special fund in the State treasury. Moneys
6in the Fund may be used by the Department of Agriculture,
7subject to appropriation, solely for infrastructure
8improvements to the Illinois State Fairgrounds in Sangamon
9County, including, but not limited to, track surfaces (main
10track and practice track), grandstands, audio and visual
11systems, paddocks and barns and associated surface areas,
12restroom facilities on the backstretch, and roadway surfaces
13around the racing facility. In addition, no more than 5% of the
14moneys annually transferred into the Fund may be used by the
15Department for all costs associated with fire protection and
16fire protection services for the Illinois State Fairgrounds.
17The State Fairgrounds Capital Improvement Fund is not subject
18to administrative chargebacks, including, but not limited to,
19those authorized under Section 8h of the State Finance Act.
 
20    Section 90-20. The Illinois Income Tax Act is amended by
21changing Sections 201, 303, 304 and 710 as follows:
 
22    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
23    Sec. 201. Tax Imposed.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB2498- 113 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

HB2498- 115 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 116 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 117 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 118 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 119 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 120 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 121 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 122 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB2498- 129 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 130 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 131 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

HB2498- 133 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 134 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 135 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 136 -LRB100 03891 AMC 13896 b

1    be claimed for the taxable year in which Agency approval of
2    the eligible remediation costs is granted. The credit is
3    not available to any taxpayer if the taxpayer or any
4    related party caused or contributed to, in any material
5    respect, a release of regulated substances on, in, or under
6    the site that was identified and addressed by the remedial
7    action pursuant to the Site Remediation Program of the
8    Environmental Protection Act. Determinations as to credit
9    availability for purposes of this Section shall be made
10    consistent with rules adopted by the Pollution Control
11    Board pursuant to the Illinois Administrative Procedure
12    Act for the administration and enforcement of Section 58.9
13    of the Environmental Protection Act. For purposes of this
14    Section, "taxpayer" includes a person whose tax attributes
15    the taxpayer has succeeded to under Section 381 of the
16    Internal Revenue Code and "related party" includes the
17    persons disallowed a deduction for losses by paragraphs
18    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
19    Code by virtue of being a related taxpayer, as well as any
20    of its partners. The credit allowed against the tax imposed
21    by subsections (a) and (b) shall be equal to 25% of the
22    unreimbursed eligible remediation costs in excess of
23    $100,000 per site.
24        (ii) A credit allowed under this subsection that is
25    unused in the year the credit is earned may be carried
26    forward to each of the 5 taxable years following the year

 

 

HB2498- 137 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 138 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 139 -LRB100 03891 AMC 13896 b

1        publicly traded company;
2            (F) a transfer by a parent company to a wholly
3        owned subsidiary; or
4            (G) the transfer or sale to or by one person to
5        another person where both persons were initial owners
6        of the registration when the registration was issued;
7        or
8        (2) the cannabis cultivation center registration,
9    medical cannabis dispensary registration, or the
10    controlling interest in a registrant's property is
11    transferred in a transaction to lineal descendants in which
12    no gain or loss is recognized or as a result of a
13    transaction in accordance with Section 351 of the Internal
14    Revenue Code in which no gain or loss is recognized.
15(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
16eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,
17eff. 7-16-14.)
 
18    (35 ILCS 5/303)  (from Ch. 120, par. 3-303)
19    Sec. 303. (a) In general. Any item of capital gain or loss,
20and any item of income from rents or royalties from real or
21tangible personal property, interest, dividends, and patent or
22copyright royalties, and prizes awarded under the Illinois
23Lottery Law, and, for taxable years ending on or after December
2431, 2017, wagering and gambling winnings from Illinois sources
25as set forth in subsection (e-1) of this Section, to the extent

 

 

HB2498- 140 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 141 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB2498- 150 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 151 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 152 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 153 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 154 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 155 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 156 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 157 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 158 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 159 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 160 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB2498- 169 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 170 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 171 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 172 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 173 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 174 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 175 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 176 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 177 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 178 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 179 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 180 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

HB2498- 182 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

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

 

 

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

 

 

HB2498- 186 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 187 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 188 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 189 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 190 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 191 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 192 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 193 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 194 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 195 -LRB100 03891 AMC 13896 b

1    (35 ILCS 200/15-144 new)
2    Sec. 15-144. Chicago Casino Development Authority. All
3property owned by the Chicago Casino Development Authority is
4exempt. Any property owned by the Chicago Casino Development
5Authority and leased to any other entity is not exempt.
 
6    Section 90-24. The Illinois Municipal Code is amended by
7adding Section 8-10-2.6 as follows:
 
8    (65 ILCS 5/8-10-2.6 new)
9    Sec. 8-10-2.6. Chicago Casino Development Authority.
10Except as otherwise provided in the Chicago Casino Development
11Authority Act, this Division 10 applies to purchase orders and
12contracts relating to the Chicago Casino Development
13Authority.
 
14    Section 90-25. The Joliet Regional Port District Act is
15amended by changing Section 5.1 as follows:
 
16    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
17    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
18any other provision of this Act, the District may not regulate
19the operation, conduct, or navigation of any riverboat gambling
20casino licensed under the Illinois Riverboat Gambling Act, and
21the District may not license, tax, or otherwise levy any
22assessment of any kind on any riverboat gambling casino

 

 

HB2498- 196 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 197 -LRB100 03891 AMC 13896 b

1    (c) The books, accounts, records, and files of the limited
2purpose branch's transactions shall be maintained at the
3licensee's licensed location. The licensee shall notify the
4Director of the licensed location at which the books, accounts,
5records, and files shall be maintained.
6    (d) The licensee shall prominently display at the limited
7purpose branch the address and telephone number of the
8licensee's licensed location.
9    (e) No other business shall be conducted at the site of the
10limited purpose branch unless authorized by the Director.
11    (f) The Director shall make and enforce reasonable rules
12for the conduct of a limited purpose branch.
13    (g) A limited purpose branch may not be located within
141,000 feet of a facility operated by an inter-track wagering
15licensee or an organization licensee subject to the Illinois
16Horse Racing Act of 1975, on a riverboat or in a casino subject
17to the Illinois Riverboat Gambling Act, or within 1,000 feet of
18the location at which the riverboat docks or within 1,000 feet
19of a casino.
20(Source: P.A. 90-437, eff. 1-1-98.)
 
21    Section 90-35. The Illinois Horse Racing Act of 1975 is
22amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
2320, 21, 24, 25, 26, 27, 30, 30.5, 31, 31.1, 32.1, 36, 40, and
2454.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
2534.3, 39.2, and 56 as follows:
 

 

 

HB2498- 198 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

HB2498- 200 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 201 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 202 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 203 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

HB2498- 205 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 206 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 207 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 208 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 209 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 210 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 211 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 212 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 213 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 214 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 215 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 216 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 217 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 218 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 219 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 220 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 221 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 222 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 223 -LRB100 03891 AMC 13896 b

1    preceding complete calendar year when the combined
2    adjusted gross receipts of the electronic gaming licensees
3    operating at Cook County race tracks total in excess of
4    $300,000,000, but do not exceed $350,000,000;
5        (iv) 2,300 races in any year following the most recent
6    preceding complete calendar year when the combined
7    adjusted gross receipts of the electronic gaming licensees
8    operating at Cook County race tracks total in excess of
9    $350,000,000, but do not exceed $400,000,000;
10        (v) 2,375 races in any year following the most recent
11    preceding complete calendar year when the combined
12    adjusted gross receipts of the electronic gaming licensees
13    operating at Cook County race tracks total in excess of
14    $400,000,000, but do not exceed $450,000,000;
15        (vi) 2,450 races in any year following the most recent
16    preceding complete calendar year when the combined
17    adjusted gross receipts of the electronic gaming licensees
18    operating at Cook County race tracks total in excess of
19    $450,000,000, but do not exceed $500,000,000;
20        (vii) 2,550 races in any year following the most recent
21    preceding complete calendar year when the combined
22    adjusted gross receipts of the electronic gaming licensees
23    operating at Cook County race tracks exceeds $500,000,000.
24    In awarding racing dates under this subsection (e-2), the
25Board shall have the discretion to allocate those thoroughbred
26racing dates among these Cook County organization licensees.

 

 

HB2498- 224 -LRB100 03891 AMC 13896 b

1    (e-3) In awarding racing dates for calendar year 2018 and
2thereafter in connection with a race track in Madison County,
3the Board shall award racing dates and such organization
4licensee shall run at least 700 thoroughbred races at the race
5track in Madison County each year.
6    Notwithstanding Section 7.7 of the Illinois Gambling Act or
7any provision of this Act other than subsection (e-4.5), for
8each calendar year for which an electronic gaming licensee
9located in Madison County requests racing dates resulting in
10less than 700 live thoroughbred races at its race track
11facility, the electronic gaming licensee may not conduct
12electronic gaming for the calendar year of such requested live
13races.
14    (e-4) Notwithstanding the provisions of Section 7.7 of the
15Illinois Gambling Act or any provision of this Act other than
16subsections (e-3) and (e-4.5), for each calendar year for which
17an electronic gaming licensee requests racing dates for a
18specific horse breed which results in a number of live races
19for that specific breed under its organization license that is
20less than the total number of live races for that specific
21breed which it conducted in 2011 for standardbred racing and in
222009 for thoroughbred racing at its race track facility, the
23electronic gaming licensee may not conduct electronic gaming
24for the calendar year of such requested live races.
25    (e-4.5) The Board shall ensure that each organization
26licensee shall individually run a sufficient number of races

 

 

HB2498- 225 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 226 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 227 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 228 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 229 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 230 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 231 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 232 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 233 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 234 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 235 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 236 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 237 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 238 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

HB2498- 240 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 241 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 242 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

HB2498- 244 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 245 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 246 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 247 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 248 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 249 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 250 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 251 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 252 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 253 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 254 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 255 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 256 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 257 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 258 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 259 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 260 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

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

 

 

HB2498- 263 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 264 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 265 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 266 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 267 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 268 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 269 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 270 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 271 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 272 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 273 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 274 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 275 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 276 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 277 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 278 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 279 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 280 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 281 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 282 -LRB100 03891 AMC 13896 b

1        (14) An inter-track wagering location license
2    authorized by the Board in 2016 that is owned and operated
3    by a race track in Rock Island County shall be transferred
4    to a commonly owned race track in Cook County on August 12,
5    2016 (the effective date of Public Act 99-757) this
6    amendatory Act of the 99th General Assembly. The licensee
7    shall retain its status in relation to purse distribution
8    under paragraph (11) of this subsection (h) following the
9    transfer to the new entity. The pari-mutuel tax credit
10    under Section 32.1 shall not be applied toward any
11    pari-mutuel tax obligation of the inter-track wagering
12    location licensee of the license that is transferred under
13    this paragraph (14).
14    (i) Notwithstanding the other provisions of this Act, the
15conduct of wagering at wagering facilities is authorized on all
16days, except as limited by subsection (b) of Section 19 of this
17Act.
18(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 98-968,
19eff. 8-15-14; 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;
20revised 9-14-16.)
 
21    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
22    Sec. 27. (a) In addition to the organization license fee
23provided by this Act, until January 1, 2000, a graduated
24privilege tax is hereby imposed for conducting the pari-mutuel
25system of wagering permitted under this Act. Until January 1,

 

 

HB2498- 283 -LRB100 03891 AMC 13896 b

12000, except as provided in subsection (g) of Section 27 of
2this Act, all of the breakage of each racing day held by any
3licensee in the State shall be paid to the State. Until January
41, 2000, such daily graduated privilege tax shall be paid by
5the licensee from the amount permitted to be retained under
6this Act. Until January 1, 2000, each day's graduated privilege
7tax, breakage, and Horse Racing Tax Allocation funds shall be
8remitted to the Department of Revenue within 48 hours after the
9close of the racing day upon which it is assessed or within
10such other time as the Board prescribes. The privilege tax
11hereby imposed, until January 1, 2000, shall be a flat tax at
12the rate of 2% of the daily pari-mutuel handle except as
13provided in Section 27.1.
14    In addition, every organization licensee, except as
15provided in Section 27.1 of this Act, which conducts multiple
16wagering shall pay, until January 1, 2000, as a privilege tax
17on multiple wagers an amount equal to 1.25% of all moneys
18wagered each day on such multiple wagers, plus an additional
19amount equal to 3.5% of the amount wagered each day on any
20other multiple wager which involves a single betting interest
21on 3 or more horses. The licensee shall remit the amount of
22such taxes to the Department of Revenue within 48 hours after
23the close of the racing day on which it is assessed or within
24such other time as the Board prescribes.
25    This subsection (a) shall be inoperative and of no force
26and effect on and after January 1, 2000.

 

 

HB2498- 284 -LRB100 03891 AMC 13896 b

1    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
2at the rate of 1.5% of the daily pari-mutuel handle is imposed
3at all pari-mutuel wagering facilities and on advance deposit
4wagering from a location other than a wagering facility, except
5as otherwise provided for in this subsection (a-5). In addition
6to the pari-mutuel tax imposed on advance deposit wagering
7pursuant to this subsection (a-5), beginning on August 24, 2012
8(the effective date of Public Act 97-1060) and through December
931, 2018, an additional pari-mutuel tax at the rate of 0.25%
10shall be imposed on advance deposit wagering. Until August 25,
112012, the additional 0.25% pari-mutuel tax imposed on advance
12deposit wagering by Public Act 96-972 shall be deposited into
13the Quarter Horse Purse Fund, which shall be created as a
14non-appropriated trust fund administered by the Board for
15grants to thoroughbred organization licensees for payment of
16purses for quarter horse races conducted by the organization
17licensee. Beginning on August 26, 2012, the additional 0.25%
18pari-mutuel tax imposed on advance deposit wagering shall be
19deposited into the Standardbred Purse Fund, which shall be
20created as a non-appropriated trust fund administered by the
21Board, for grants to the standardbred organization licensees
22for payment of purses for standardbred horse races conducted by
23the organization licensee. Thoroughbred organization licensees
24may petition the Board to conduct quarter horse racing and
25receive purse grants from the Quarter Horse Purse Fund. The
26Board shall have complete discretion in distributing the

 

 

HB2498- 285 -LRB100 03891 AMC 13896 b

1Quarter Horse Purse Fund to the petitioning organization
2licensees. Beginning on July 26, 2010 (the effective date of
3Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of
4the daily pari-mutuel handle is imposed at a pari-mutuel
5facility whose license is derived from a track located in a
6county that borders the Mississippi River and conducted live
7racing in the previous year. The pari-mutuel tax imposed by
8this subsection (a-5) shall be remitted to the Department of
9Revenue within 48 hours after the close of the racing day upon
10which it is assessed or within such other time as the Board
11prescribes.
12    (a-10) Beginning on the date when an organization licensee
13begins conducting electronic gaming pursuant to an electronic
14gaming license, the following pari-mutuel tax is imposed upon
15an organization licensee on Illinois races at the licensee's
16race track:
17        1.5% of the pari-mutuel handle at or below the average
18    daily pari-mutuel handle for 2011.
19        2% of the pari-mutuel handle above the average daily
20    pari-mutuel handle for 2011 up to 125% of the average daily
21    pari-mutuel handle for 2011.
22        2.5% of the pari-mutuel handle 125% or more above the
23    average daily pari-mutuel handle for 2011 up to 150% of the
24    average daily pari-mutuel handle for 2011.
25        3% of the pari-mutuel handle 150% or more above the
26    average daily pari-mutuel handle for 2011 up to 175% of the

 

 

HB2498- 286 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 287 -LRB100 03891 AMC 13896 b

1shall post a bond in the sum of $500,000 to the State of
2Illinois. The bond shall be used to guarantee that the licensee
3faithfully makes the payments, keeps the books and records and
4makes reports, and conducts games of chance in conformity with
5this Act and the rules adopted by the Board. The bond shall not
6be canceled by a surety on less than 30 days' notice in writing
7to the Board. If a bond is canceled and the licensee fails to
8file a new bond with the Board in the required amount on or
9before the effective date of cancellation, the licensee's
10license shall be revoked. The total and aggregate liability of
11the surety on the bond is limited to the amount specified in
12the bond. Any licensee failing or refusing to pay the amount of
13any tax due under this Section shall be guilty of a business
14offense and upon conviction shall be fined not more than $5,000
15in addition to the amount found due as tax under this Section.
16Each day's violation shall constitute a separate offense. All
17fines paid into Court by a licensee hereunder shall be
18transmitted and paid over by the Clerk of the Court to the
19Board.
20    (e) No other license fee, privilege tax, excise tax, or
21racing fee, except as provided in this Act, shall be assessed
22or collected from any such licensee by the State.
23    (f) No other license fee, privilege tax, excise tax or
24racing fee shall be assessed or collected from any such
25licensee by units of local government except as provided in
26paragraph 10.1 of subsection (h) and subsection (f) of Section

 

 

HB2498- 288 -LRB100 03891 AMC 13896 b

126 of this Act. However, any municipality that has a Board
2licensed horse race meeting at a race track wholly within its
3corporate boundaries or a township that has a Board licensed
4horse race meeting at a race track wholly within the
5unincorporated area of the township may charge a local
6amusement tax not to exceed 10¢ per admission to such horse
7race meeting by the enactment of an ordinance. However, any
8municipality or county that has a Board licensed inter-track
9wagering location facility wholly within its corporate
10boundaries may each impose an admission fee not to exceed $1.00
11per admission to such inter-track wagering location facility,
12so that a total of not more than $2.00 per admission may be
13imposed. Except as provided in subparagraph (g) of Section 27
14of this Act, the inter-track wagering location licensee shall
15collect any and all such fees and within 48 hours remit the
16fees to the Board, which shall, pursuant to rule, cause the
17fees to be distributed to the county or municipality.
18    (g) Notwithstanding any provision in this Act to the
19contrary, if in any calendar year the total taxes and fees from
20wagering on live racing and from inter-track wagering required
21to be collected from licensees and distributed under this Act
22to all State and local governmental authorities exceeds the
23amount of such taxes and fees distributed to each State and
24local governmental authority to which each State and local
25governmental authority was entitled under this Act for calendar
26year 1994, then the first $11 million of that excess amount

 

 

HB2498- 289 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 290 -LRB100 03891 AMC 13896 b

1    subsection (g) of Section 31 of this Act, before the amount
2    allocated to standardbred purses under item (i) is
3    allocated to standardbred organization licensees in the
4    succeeding allocation year.
5    To the extent the excess amount of taxes and fees to be
6collected and distributed to State and local governmental
7authorities exceeds $11 million, that excess amount shall be
8collected and distributed to State and local authorities as
9provided for under this Act.
10(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756,
11eff. 8-12-16.)
 
12    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
13    Sec. 30. (a) The General Assembly declares that it is the
14policy of this State to encourage the breeding of thoroughbred
15horses in this State and the ownership of such horses by
16residents of this State in order to provide for: sufficient
17numbers of high quality thoroughbred horses to participate in
18thoroughbred racing meetings in this State, and to establish
19and preserve the agricultural and commercial benefits of such
20breeding and racing industries to the State of Illinois. It is
21the intent of the General Assembly to further this policy by
22the provisions of this Act.
23    (b) Each organization licensee conducting a thoroughbred
24racing meeting pursuant to this Act shall provide at least two
25races each day limited to Illinois conceived and foaled horses

 

 

HB2498- 291 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 292 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 293 -LRB100 03891 AMC 13896 b

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

 

 

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1    supplements for claiming races in which the minimum
2    claiming price is less than $7,500.
3        (2) To provide stakes and awards to be paid to the
4    owners of the winning horses in certain races limited to
5    Illinois conceived and foaled and Illinois foaled horses
6    designated as stakes races.
7        (2.5) To provide an award to the owner or owners of an
8    Illinois conceived and foaled or Illinois foaled horse that
9    wins a maiden special weight, an allowance, overnight
10    handicap race, or claiming race with claiming price of
11    $10,000 or more providing the race is not restricted to
12    Illinois conceived and foaled or Illinois foaled horses.
13    Awards shall also be provided to the owner or owners of
14    Illinois conceived and foaled and Illinois foaled horses
15    that place second or third in those races. To the extent
16    that additional moneys are required to pay the minimum
17    additional awards of 40% of the purse the horse earns for
18    placing first, second or third in those races for Illinois
19    foaled horses and of 60% of the purse the horse earns for
20    placing first, second or third in those races for Illinois
21    conceived and foaled horses, those moneys shall be provided
22    from the purse account at the track where earned.
23        (3) To provide stallion awards to the owner or owners
24    of any stallion that is duly registered with the Illinois
25    Thoroughbred Breeders Fund Program prior to the effective
26    date of this amendatory Act of 1995 whose duly registered

 

 

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1    Illinois conceived and foaled offspring wins a race
2    conducted at an Illinois thoroughbred racing meeting other
3    than a claiming race, provided that the stallion stood
4    service within Illinois at the time the offspring was
5    conceived and that the stallion did not stand for service
6    outside of Illinois at any time during the year in which
7    the offspring was conceived. Such award shall not be paid
8    to the owner or owners of an Illinois stallion that served
9    outside this State at any time during the calendar year in
10    which such race was conducted.
11        (4) To provide $75,000 annually for purses to be
12    distributed to county fairs that provide for the running of
13    races during each county fair exclusively for the
14    thoroughbreds conceived and foaled in Illinois. The
15    conditions of the races shall be developed by the county
16    fair association and reviewed by the Department with the
17    advice and assistance of the Illinois Thoroughbred
18    Breeders Fund Advisory Board. There shall be no wagering of
19    any kind on the running of Illinois conceived and foaled
20    races at county fairs.
21        (4.1) To provide purse money for an Illinois stallion
22    stakes program.
23        (5) No less than 90% 80% of all monies appropriated
24    from the Illinois Thoroughbred Breeders Fund shall be
25    expended for the purposes in (1), (2), (2.5), (3), (4),
26    (4.1), and (5) as shown above.

 

 

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

 

 

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1by the organization licensee conducting the horse race meeting.
2Such sum shall be paid 50% from the organization licensee's
3account and 50% from the purse account of the licensee share of
4the money wagered as follows: 11 1/2% to the breeder of the
5winning horse and 1 1/2% 1% to the organization representing
6thoroughbred breeders and owners whose representative serves
7on the Illinois Thoroughbred Breeders Fund Advisory Board for
8verifying the amounts of breeders' awards earned, assuring
9their distribution in accordance with this Act, and servicing
10and promoting the Illinois thoroughbred horse racing industry.
11The organization representing thoroughbred breeders and owners
12shall cause all expenditures of monies received under this
13subsection (i) to be audited at least annually by a registered
14public accountant. The organization shall file copies of each
15annual audit with the Racing Board, the Clerk of the House of
16Representatives and the Secretary of the Senate, and shall make
17copies of each annual audit available to the public upon
18request and upon payment of the reasonable cost of photocopying
19the requested number of copies. Such payments shall not reduce
20any award to the owner of the horse or reduce the taxes payable
21under this Act. Upon completion of its racing meet, each
22organization licensee shall deliver to the organization
23representing thoroughbred breeders and owners whose
24representative serves on the Illinois Thoroughbred Breeders
25Fund Advisory Board a listing of all the Illinois foaled and
26the Illinois conceived and foaled horses which won breeders'

 

 

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1awards and the amount of such breeders' awards under this
2subsection to verify accuracy of payments and assure proper
3distribution of breeders' awards in accordance with the
4provisions of this Act. Such payments shall be delivered by the
5organization licensee within 30 days of the end of each race
6meeting.
7    (j) A sum equal to 13% 12 1/2% of the first prize money won
8in each race limited to Illinois foaled horses or Illinois
9conceived and foaled horses, or both, shall be paid in the
10following manner by the organization licensee conducting the
11horse race meeting, 50% from the organization licensee's
12account and 50% from the purse account of the licensee share of
13the money wagered: 11 1/2% to the breeders of the horses in
14each such race which are the official first, second, third and
15fourth finishers and 1 1/2% 1% to the organization representing
16thoroughbred breeders and owners whose representative serves
17on the Illinois Thoroughbred Breeders Fund Advisory Board for
18verifying the amounts of breeders' awards earned, assuring
19their proper distribution in accordance with this Act, and
20servicing and promoting the Illinois thoroughbred horse racing
21industry. The organization representing thoroughbred breeders
22and owners shall cause all expenditures of monies received
23under this subsection (j) to be audited at least annually by a
24registered public accountant. The organization shall file
25copies of each annual audit with the Racing Board, the Clerk of
26the House of Representatives and the Secretary of the Senate,

 

 

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1and shall make copies of each annual audit available to the
2public upon request and upon payment of the reasonable cost of
3photocopying the requested number of copies.
4    The 11 1/2% paid to the breeders in accordance with this
5subsection shall be distributed as follows:
6        (1) 60% of such sum shall be paid to the breeder of the
7    horse which finishes in the official first position;
8        (2) 20% of such sum shall be paid to the breeder of the
9    horse which finishes in the official second position;
10        (3) 15% of such sum shall be paid to the breeder of the
11    horse which finishes in the official third position; and
12        (4) 5% of such sum shall be paid to the breeder of the
13    horse which finishes in the official fourth position.
14    Such payments shall not reduce any award to the owners of a
15horse or reduce the taxes payable under this Act. Upon
16completion of its racing meet, each organization licensee shall
17deliver to the organization representing thoroughbred breeders
18and owners whose representative serves on the Illinois
19Thoroughbred Breeders Fund Advisory Board a listing of all the
20Illinois foaled and the Illinois conceived and foaled horses
21which won breeders' awards and the amount of such breeders'
22awards in accordance with the provisions of this Act. Such
23payments shall be delivered by the organization licensee within
2430 days of the end of each race meeting.
25    (k) The term "breeder", as used herein, means the owner of
26the mare at the time the foal is dropped. An "Illinois foaled

 

 

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1horse" is a foal dropped by a mare which enters this State on
2or before December 1, in the year in which the horse is bred,
3provided the mare remains continuously in this State until its
4foal is born. An "Illinois foaled horse" also means a foal born
5of a mare in the same year as the mare enters this State on or
6before March 1, and remains in this State at least 30 days
7after foaling, is bred back during the season of the foaling to
8an Illinois Registered Stallion (unless a veterinarian
9certifies that the mare should not be bred for health reasons),
10and is not bred to a stallion standing in any other state
11during the season of foaling. An "Illinois foaled horse" also
12means a foal born in Illinois of a mare purchased at public
13auction subsequent to the mare entering this State on or before
14March 1 prior to February 1 of the foaling year providing the
15mare is owned solely by one or more Illinois residents or an
16Illinois entity that is entirely owned by one or more Illinois
17residents.
18    (l) The Department of Agriculture shall, by rule, with the
19advice and assistance of the Illinois Thoroughbred Breeders
20Fund Advisory Board:
21        (1) Qualify stallions for Illinois breeding; such
22    stallions to stand for service within the State of Illinois
23    at the time of a foal's conception. Such stallion must not
24    stand for service at any place outside the State of
25    Illinois during the calendar year in which the foal is
26    conceived. The Department of Agriculture may assess and

 

 

HB2498- 301 -LRB100 03891 AMC 13896 b

1    collect an application fee of up to $500 fees for the
2    registration of Illinois-eligible stallions. All fees
3    collected are to be held in trust accounts for the purposes
4    set forth in this Act and in accordance with Section 205-15
5    of the Department of Agriculture Law paid into the Illinois
6    Thoroughbred Breeders Fund.
7        (2) Provide for the registration of Illinois conceived
8    and foaled horses and Illinois foaled horses. No such horse
9    shall compete in the races limited to Illinois conceived
10    and foaled horses or Illinois foaled horses or both unless
11    registered with the Department of Agriculture. The
12    Department of Agriculture may prescribe such forms as are
13    necessary to determine the eligibility of such horses. The
14    Department of Agriculture may assess and collect
15    application fees for the registration of Illinois-eligible
16    foals. All fees collected are to be held in trust accounts
17    for the purposes set forth in this Act and in accordance
18    with Section 205-15 of the Department of Agriculture Law
19    paid into the Illinois Thoroughbred Breeders Fund. No
20    person shall knowingly prepare or cause preparation of an
21    application for registration of such foals containing
22    false information.
23    (m) The Department of Agriculture, with the advice and
24assistance of the Illinois Thoroughbred Breeders Fund Advisory
25Board, shall provide that certain races limited to Illinois
26conceived and foaled and Illinois foaled horses be stakes races

 

 

HB2498- 302 -LRB100 03891 AMC 13896 b

1and determine the total amount of stakes and awards to be paid
2to the owners of the winning horses in such races.
3    In determining the stakes races and the amount of awards
4for such races, the Department of Agriculture shall consider
5factors, including but not limited to, the amount of money
6appropriated for the Illinois Thoroughbred Breeders Fund
7program, organization licensees' contributions, availability
8of stakes caliber horses as demonstrated by past performances,
9whether the race can be coordinated into the proposed racing
10dates within organization licensees' racing dates, opportunity
11for colts and fillies and various age groups to race, public
12wagering on such races, and the previous racing schedule.
13    (n) The Board and the organizational licensee shall notify
14the Department of the conditions and minimum purses for races
15limited to Illinois conceived and foaled and Illinois foaled
16horses conducted for each organizational licensee conducting a
17thoroughbred racing meeting. The Department of Agriculture
18with the advice and assistance of the Illinois Thoroughbred
19Breeders Fund Advisory Board may allocate monies for purse
20supplements for such races. In determining whether to allocate
21money and the amount, the Department of Agriculture shall
22consider factors, including but not limited to, the amount of
23money appropriated for the Illinois Thoroughbred Breeders Fund
24program, the number of races that may occur, and the
25organizational licensee's purse structure.
26    (o) (Blank).

 

 

HB2498- 303 -LRB100 03891 AMC 13896 b

1(Source: P.A. 98-692, eff. 7-1-14.)
 
2    (230 ILCS 5/30.5)
3    Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
4    (a) The General Assembly declares that it is the policy of
5this State to encourage the breeding of racing quarter horses
6in this State and the ownership of such horses by residents of
7this State in order to provide for sufficient numbers of high
8quality racing quarter horses in this State and to establish
9and preserve the agricultural and commercial benefits of such
10breeding and racing industries to the State of Illinois. It is
11the intent of the General Assembly to further this policy by
12the provisions of this Act.
13    (b) There is hereby created non-appropriated trust a
14special fund in the State Treasury to be known as the Illinois
15Racing Quarter Horse Breeders Fund, which is held separately
16from State moneys. Except as provided in subsection (g) of
17Section 27 of this Act, 8.5% of all the moneys received by the
18State as pari-mutuel taxes on quarter horse racing shall be
19paid into the Illinois Racing Quarter Horse Breeders Fund. The
20Illinois Racing Quarter Horse Breeders Fund shall not be
21subject to administrative charges or chargebacks, including,
22but not limited to, those authorized under Section 8h of the
23State Finance Act.
24    (c) The Illinois Racing Quarter Horse Breeders Fund shall
25be administered by the Department of Agriculture with the

 

 

HB2498- 304 -LRB100 03891 AMC 13896 b

1advice and assistance of the Advisory Board created in
2subsection (d) of this Section.
3    (d) The Illinois Racing Quarter Horse Breeders Fund
4Advisory Board shall consist of the Director of the Department
5of Agriculture, who shall serve as Chairman; a member of the
6Illinois Racing Board, designated by it; one representative of
7the organization licensees conducting pari-mutuel quarter
8horse racing meetings, recommended by them; 2 representatives
9of the Illinois Running Quarter Horse Association, recommended
10by it; and the Superintendent of Fairs and Promotions from the
11Department of Agriculture. Advisory Board members shall serve
12for 2 years commencing January 1 of each odd numbered year. If
13representatives have not been recommended by January 1 of each
14odd numbered year, the Director of the Department of
15Agriculture may make an appointment for the organization
16failing to so recommend a member of the Advisory Board.
17Advisory Board members shall receive no compensation for their
18services as members but may be reimbursed for all actual and
19necessary expenses and disbursements incurred in the execution
20of their official duties.
21    (e) Moneys in No moneys shall be expended from the Illinois
22Racing Quarter Horse Breeders Fund except as appropriated by
23the General Assembly. Moneys appropriated from the Illinois
24Racing Quarter Horse Breeders Fund shall be expended by the
25Department of Agriculture, with the advice and assistance of
26the Illinois Racing Quarter Horse Breeders Fund Advisory Board,

 

 

HB2498- 305 -LRB100 03891 AMC 13896 b

1for the following purposes only:
2        (1) To provide stakes and awards to be paid to the
3    owners of the winning horses in certain races. This
4    provision is limited to Illinois conceived and foaled
5    horses.
6        (2) To provide an award to the owner or owners of an
7    Illinois conceived and foaled horse that wins a race when
8    pari-mutuel wagering is conducted; providing the race is
9    not restricted to Illinois conceived and foaled horses.
10        (3) To provide purse money for an Illinois stallion
11    stakes program.
12        (4) To provide for purses to be distributed for the
13    running of races during the Illinois State Fair and the
14    DuQuoin State Fair exclusively for quarter horses
15    conceived and foaled in Illinois.
16        (5) To provide for purses to be distributed for the
17    running of races at Illinois county fairs exclusively for
18    quarter horses conceived and foaled in Illinois.
19        (6) To provide for purses to be distributed for running
20    races exclusively for quarter horses conceived and foaled
21    in Illinois at locations in Illinois determined by the
22    Department of Agriculture with advice and consent of the
23    Illinois Racing Quarter Horse Breeders Fund Advisory
24    Board.
25        (7) No less than 90% of all moneys appropriated from
26    the Illinois Racing Quarter Horse Breeders Fund shall be

 

 

HB2498- 306 -LRB100 03891 AMC 13896 b

1    expended for the purposes in items (1), (2), (3), (4), and
2    (5) of this subsection (e).
3        (8) To provide for research programs concerning the
4    health, development, and care of racing quarter horses.
5        (9) To provide for dissemination of public information
6    designed to promote the breeding of racing quarter horses
7    in Illinois.
8        (10) To provide for expenses incurred in the
9    administration of the Illinois Racing Quarter Horse
10    Breeders Fund.
11    (f) The Department of Agriculture shall, by rule, with the
12advice and assistance of the Illinois Racing Quarter Horse
13Breeders Fund Advisory Board:
14        (1) Qualify stallions for Illinois breeding; such
15    stallions to stand for service within the State of
16    Illinois, at the time of a foal's conception. Such stallion
17    must not stand for service at any place outside the State
18    of Illinois during the calendar year in which the foal is
19    conceived. The Department of Agriculture may assess and
20    collect application fees for the registration of
21    Illinois-eligible stallions. All fees collected are to be
22    paid into the Illinois Racing Quarter Horse Breeders Fund.
23        (2) Provide for the registration of Illinois conceived
24    and foaled horses. No such horse shall compete in the races
25    limited to Illinois conceived and foaled horses unless it
26    is registered with the Department of Agriculture. The

 

 

HB2498- 307 -LRB100 03891 AMC 13896 b

1    Department of Agriculture may prescribe such forms as are
2    necessary to determine the eligibility of such horses. The
3    Department of Agriculture may assess and collect
4    application fees for the registration of Illinois-eligible
5    foals. All fees collected are to be paid into the Illinois
6    Racing Quarter Horse Breeders Fund. No person shall
7    knowingly prepare or cause preparation of an application
8    for registration of such foals that contains false
9    information.
10    (g) The Department of Agriculture, with the advice and
11assistance of the Illinois Racing Quarter Horse Breeders Fund
12Advisory Board, shall provide that certain races limited to
13Illinois conceived and foaled be stakes races and determine the
14total amount of stakes and awards to be paid to the owners of
15the winning horses in such races.
16(Source: P.A. 98-463, eff. 8-16-13.)
 
17    (230 ILCS 5/31)  (from Ch. 8, par. 37-31)
18    Sec. 31. (a) The General Assembly declares that it is the
19policy of this State to encourage the breeding of standardbred
20horses in this State and the ownership of such horses by
21residents of this State in order to provide for: sufficient
22numbers of high quality standardbred horses to participate in
23harness racing meetings in this State, and to establish and
24preserve the agricultural and commercial benefits of such
25breeding and racing industries to the State of Illinois. It is

 

 

HB2498- 308 -LRB100 03891 AMC 13896 b

1the intent of the General Assembly to further this policy by
2the provisions of this Section of this Act.
3    (b) Each organization licensee conducting a harness racing
4meeting pursuant to this Act shall provide for at least two
5races each race program limited to Illinois conceived and
6foaled horses. A minimum of 6 races shall be conducted each
7week limited to Illinois conceived and foaled horses. No horses
8shall be permitted to start in such races unless duly
9registered under the rules of the Department of Agriculture.
10    (b-5) Organization licensees, not including the Illinois
11State Fair or the DuQuoin State Fair, shall provide stake races
12and early closer races for Illinois conceived and foaled horses
13so that purses distributed for such races shall be no less than
1417% of total purses distributed for harness racing in that
15calendar year in addition to any stakes payments and starting
16fees contributed by horse owners.
17    (b-10) Each organization licensee conducting a harness
18racing meeting pursuant to this Act shall provide an owner
19award to be paid from the purse account equal to 25% of the
20amount earned by Illinois conceived and foaled horses in races
21that are not restricted to Illinois conceived and foaled
22horses. The owner awards shall not be paid on races below the
23$10,000 claiming class.
24    (c) Conditions of races under subsection (b) shall be
25commensurate with past performance, quality and class of
26Illinois conceived and foaled horses available. If, however,

 

 

HB2498- 309 -LRB100 03891 AMC 13896 b

1sufficient competition cannot be had among horses of that class
2on any day, the races may, with consent of the Board, be
3eliminated for that day and substitute races provided.
4    (d) There is hereby created a special fund of the State
5Treasury to be known as the Illinois Standardbred Breeders
6Fund.
7    During the calendar year 1981, and each year thereafter,
8except as provided in subsection (g) of Section 27 of this Act,
9eight and one-half per cent of all the monies received by the
10State as privilege taxes on harness racing meetings shall be
11paid into the Illinois Standardbred Breeders Fund.
12    (e) The Illinois Standardbred Breeders Fund shall be
13administered by the Department of Agriculture with the
14assistance and advice of the Advisory Board created in
15subsection (f) of this Section.
16    (f) The Illinois Standardbred Breeders Fund Advisory Board
17is hereby created. The Advisory Board shall consist of the
18Director of the Department of Agriculture, who shall serve as
19Chairman; the Superintendent of the Illinois State Fair; a
20member of the Illinois Racing Board, designated by it; a
21representative of the largest association of Illinois
22standardbred owners and breeders, recommended by it; a
23representative of a statewide association representing
24agricultural fairs in Illinois, recommended by it, such
25representative to be from a fair at which Illinois conceived
26and foaled racing is conducted; a representative of the

 

 

HB2498- 310 -LRB100 03891 AMC 13896 b

1organization licensees conducting harness racing meetings,
2recommended by them; a representative of the Breeder's
3Committee of the association representing the largest number of
4standardbred owners, breeders, trainers, caretakers, and
5drivers, recommended by it; and a representative of the
6association representing the largest number of standardbred
7owners, breeders, trainers, caretakers, and drivers,
8recommended by it. Advisory Board members shall serve for 2
9years commencing January 1 of each odd numbered year. If
10representatives of the largest association of Illinois
11standardbred owners and breeders, a statewide association of
12agricultural fairs in Illinois, the association representing
13the largest number of standardbred owners, breeders, trainers,
14caretakers, and drivers, a member of the Breeder's Committee of
15the association representing the largest number of
16standardbred owners, breeders, trainers, caretakers, and
17drivers, and the organization licensees conducting harness
18racing meetings have not been recommended by January 1 of each
19odd numbered year, the Director of the Department of
20Agriculture shall make an appointment for the organization
21failing to so recommend a member of the Advisory Board.
22Advisory Board members shall receive no compensation for their
23services as members but shall be reimbursed for all actual and
24necessary expenses and disbursements incurred in the execution
25of their official duties.
26    (g) No monies shall be expended from the Illinois

 

 

HB2498- 311 -LRB100 03891 AMC 13896 b

1Standardbred Breeders Fund except as appropriated by the
2General Assembly. Monies appropriated from the Illinois
3Standardbred Breeders Fund shall be expended by the Department
4of Agriculture, with the assistance and advice of the Illinois
5Standardbred Breeders Fund Advisory Board for the following
6purposes only:
7        1. To provide purses for races limited to Illinois
8    conceived and foaled horses at the State Fair and the
9    DuQuoin State Fair.
10        2. To provide purses for races limited to Illinois
11    conceived and foaled horses at county fairs.
12        3. To provide purse supplements for races limited to
13    Illinois conceived and foaled horses conducted by
14    associations conducting harness racing meetings.
15        4. No less than 75% of all monies in the Illinois
16    Standardbred Breeders Fund shall be expended for purses in
17    1, 2 and 3 as shown above.
18        5. In the discretion of the Department of Agriculture
19    to provide awards to harness breeders of Illinois conceived
20    and foaled horses which win races conducted by organization
21    licensees conducting harness racing meetings. A breeder is
22    the owner of a mare at the time of conception. No more than
23    10% of all monies appropriated from the Illinois
24    Standardbred Breeders Fund shall be expended for such
25    harness breeders awards. No more than 25% of the amount
26    expended for harness breeders awards shall be expended for

 

 

HB2498- 312 -LRB100 03891 AMC 13896 b

1    expenses incurred in the administration of such harness
2    breeders awards.
3        6. To pay for the improvement of racing facilities
4    located at the State Fair and County fairs.
5        7. To pay the expenses incurred in the administration
6    of the Illinois Standardbred Breeders Fund.
7        8. To promote the sport of harness racing, including
8    grants up to a maximum of $7,500 per fair per year for
9    conducting pari-mutuel wagering during the advertised
10    dates of a county fair.
11        9. To pay up to $50,000 annually for the Department of
12    Agriculture to conduct drug testing at county fairs racing
13    standardbred horses.
14        10. To pay up to $100,000 annually for distribution to
15    Illinois county fairs to supplement premiums offered in
16    junior classes.
17        11. To pay up to $100,000 annually for division and
18    equal distribution to the animal sciences department of
19    each Illinois public university system engaged in equine
20    research and education on or before the effective date of
21    this amendatory Act of the 100th General Assembly for
22    equine research and education.
23    (h) (Blank) Whenever the Governor finds that the amount in
24the Illinois Standardbred Breeders Fund is more than the total
25of the outstanding appropriations from such fund, the Governor
26shall notify the State Comptroller and the State Treasurer of

 

 

HB2498- 313 -LRB100 03891 AMC 13896 b

1such fact. The Comptroller and the State Treasurer, upon
2receipt of such notification, shall transfer such excess amount
3from the Illinois Standardbred Breeders Fund to the General
4Revenue Fund.
5    (i) A sum equal to 13% 12 1/2% of the first prize money of
6the gross every purse won by an Illinois conceived and foaled
7horse shall be paid 50% by the organization licensee conducting
8the horse race meeting to the breeder of such winning horse
9from the organization licensee's account and 50% from the purse
10account of the licensee share of the money wagered. Such
11payment shall not reduce any award to the owner of the horse or
12reduce the taxes payable under this Act. Such payment shall be
13delivered by the organization licensee at the end of each
14quarter race meeting.
15    (j) The Department of Agriculture shall, by rule, with the
16assistance and advice of the Illinois Standardbred Breeders
17Fund Advisory Board:
18        1. Qualify stallions for Illinois Standardbred
19    Breeders Fund breeding; such stallion shall be owned by a
20    resident of the State of Illinois or by an Illinois
21    corporation all of whose shareholders, directors, officers
22    and incorporators are residents of the State of Illinois.
23    Such stallion shall stand for service at and within the
24    State of Illinois at the time of a foal's conception, and
25    such stallion must not stand for service at any place, nor
26    may semen from such stallion be transported, outside the

 

 

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1    State of Illinois during that calendar year in which the
2    foal is conceived and that the owner of the stallion was
3    for the 12 months prior, a resident of Illinois. Foals
4    conceived outside the State of Illinois from shipped semen
5    from a stallion qualified for breeders' awards under this
6    Section are not eligible to participate in the Illinois
7    conceived and foaled program. The articles of agreement of
8    any partnership, joint venture, limited partnership,
9    syndicate, association or corporation and any bylaws and
10    stock certificates must contain a restriction that
11    provides that the ownership or transfer of interest by any
12    one of the persons a party to the agreement can only be
13    made to a person who qualifies as an Illinois resident.
14        2. Provide for the registration of Illinois conceived
15    and foaled horses and no such horse shall compete in the
16    races limited to Illinois conceived and foaled horses
17    unless registered with the Department of Agriculture. The
18    Department of Agriculture may prescribe such forms as may
19    be necessary to determine the eligibility of such horses.
20    No person shall knowingly prepare or cause preparation of
21    an application for registration of such foals containing
22    false information. A mare (dam) must be in the state at
23    least 180 30 days prior to foaling or remain in the State
24    at least 30 days at the time of foaling. Beginning with the
25    1996 breeding season and for foals of 1997 and thereafter,
26    a foal conceived in the State of Illinois by transported

 

 

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

 

 

HB2498- 316 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 317 -LRB100 03891 AMC 13896 b

1States Trotting Association unless otherwise modified by the
2Department of Agriculture.
3    (m) At all standardbred race meetings held or conducted
4under authority of a license granted by the Board, and at all
5standardbred races held at county fairs which are approved by
6the Department of Agriculture or at the Illinois or DuQuoin
7State Fairs, no one shall jog, train, warm up or drive a
8standardbred horse unless he or she is wearing a protective
9safety helmet, with the chin strap fastened and in place, which
10meets the standards and requirements as set forth in the 1984
11Standard for Protective Headgear for Use in Harness Racing and
12Other Equestrian Sports published by the Snell Memorial
13Foundation, or any standards and requirements for headgear the
14Illinois Racing Board may approve. Any other standards and
15requirements so approved by the Board shall equal or exceed
16those published by the Snell Memorial Foundation. Any
17equestrian helmet bearing the Snell label shall be deemed to
18have met those standards and requirements.
19(Source: P.A. 99-756, eff. 8-12-16.)
 
20    (230 ILCS 5/31.1)  (from Ch. 8, par. 37-31.1)
21    Sec. 31.1. (a) Organization licensees collectively shall
22contribute annually to charity the sum of $1,000,000 $750,000
23to non-profit organizations that provide medical and family,
24counseling, and similar services to persons who reside or work
25on the backstretch of Illinois racetracks. These contributions

 

 

HB2498- 318 -LRB100 03891 AMC 13896 b

1shall be collected as follows: (i) no later than July 1st of
2each year the Board shall assess each organization licensee,
3except those tracks which are not within 100 miles of each
4other which tracks shall pay $40,000 $30,000 annually apiece
5into the Board charity fund, that amount which equals $920,000
6$690,000 multiplied by the amount of pari-mutuel wagering
7handled by the organization licensee in the year preceding
8assessment and divided by the total pari-mutuel wagering
9handled by all Illinois organization licensees, except those
10tracks which are not within 100 miles of each other, in the
11year preceding assessment; (ii) notice of the assessed
12contribution shall be mailed to each organization licensee;
13(iii) within thirty days of its receipt of such notice, each
14organization licensee shall remit the assessed contribution to
15the Board. If an organization licensee wilfully fails to so
16remit the contribution, the Board may revoke its license to
17conduct horse racing.
18    (b) No later than October 1st of each year, any qualified
19charitable organization seeking an allotment of contributed
20funds shall submit to the Board an application for those funds,
21using the Board's approved form. No later than December 31st of
22each year, the Board shall distribute all such amounts
23collected that year to such charitable organization
24applicants.
25(Source: P.A. 87-110.)
 

 

 

HB2498- 319 -LRB100 03891 AMC 13896 b

1    (230 ILCS 5/32.1)
2    Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
3real estate equalization.
4    (a) In order to encourage new investment in Illinois
5racetrack facilities and mitigate differing real estate tax
6burdens among all racetracks, the licensees affiliated or
7associated with each racetrack that has been awarded live
8racing dates in the current year shall receive an immediate
9pari-mutuel tax credit in an amount equal to the greater of (i)
1050% of the amount of the real estate taxes paid in the prior
11year attributable to that racetrack, or (ii) the amount by
12which the real estate taxes paid in the prior year attributable
13to that racetrack exceeds 60% of the average real estate taxes
14paid in the prior year for all racetracks awarded live horse
15racing meets in the current year.
16    Each year, regardless of whether the organization licensee
17conducted live racing in the year of certification, the Board
18shall certify in writing, prior to December 31, the real estate
19taxes paid in that year for each racetrack and the amount of
20the pari-mutuel tax credit that each organization licensee,
21inter-track intertrack wagering licensee, and inter-track
22intertrack wagering location licensee that derives its license
23from such racetrack is entitled in the succeeding calendar
24year. The real estate taxes considered under this Section for
25any racetrack shall be those taxes on the real estate parcels
26and related facilities used to conduct a horse race meeting and

 

 

HB2498- 320 -LRB100 03891 AMC 13896 b

1inter-track wagering at such racetrack under this Act. In no
2event shall the amount of the tax credit under this Section
3exceed the amount of pari-mutuel taxes otherwise calculated
4under this Act. The amount of the tax credit under this Section
5shall be retained by each licensee and shall not be subject to
6any reallocation or further distribution under this Act. The
7Board may promulgate emergency rules to implement this Section.
8    (b) Beginning on January 1 following the calendar year
9during which an organization licensee begins conducting
10electronic gaming operations pursuant to an electronic gaming
11license issued under the Illinois Gambling Act, the
12organization licensee shall be ineligible to receive a tax
13credit under this Section.
14(Source: P.A. 91-40, eff. 6-25-99; revised 9-2-16.)
 
15    (230 ILCS 5/34.3 new)
16    Sec. 34.3. Drug testing. The Illinois Racing Board and the
17Department of Agriculture shall jointly establish a program for
18the purpose of conducting drug testing of horses at county
19fairs and shall adopt any rules necessary for enforcement of
20the program. The rules shall include appropriate penalties for
21violations.
 
22    (230 ILCS 5/36)   (from Ch. 8, par. 37-36)
23    Sec. 36. (a) Whoever administers or conspires to administer
24to any horse a hypnotic, narcotic, stimulant, depressant or any

 

 

HB2498- 321 -LRB100 03891 AMC 13896 b

1chemical substance which may affect the speed of a horse at any
2time in any race where the purse or any part of the purse is
3made of money authorized by any Section of this Act, except
4those chemical substances permitted by ruling of the Board,
5internally, externally or by hypodermic method in a race or
6prior thereto, or whoever knowingly enters a horse in any race
7within a period of 24 hours after any hypnotic, narcotic,
8stimulant, depressant or any other chemical substance which may
9affect the speed of a horse at any time, except those chemical
10substances permitted by ruling of the Board, has been
11administered to such horse either internally or externally or
12by hypodermic method for the purpose of increasing or retarding
13the speed of such horse shall be guilty of a Class 4 felony.
14The Board shall suspend or revoke such violator's license.
15    (b) The term "hypnotic" as used in this Section includes
16all barbituric acid preparations and derivatives.
17    (c) The term "narcotic" as used in this Section includes
18opium and all its alkaloids, salts, preparations and
19derivatives, cocaine and all its salts, preparations and
20derivatives and substitutes.
21    (d) The provisions of this Section 36 and the treatment
22authorized herein apply to horses entered in and competing in
23race meetings as defined in Section 3.07 of this Act and to
24horses entered in and competing at any county fair.
25(Source: P.A. 79-1185.)
 

 

 

HB2498- 322 -LRB100 03891 AMC 13896 b

1    (230 ILCS 5/39.2 new)
2    Sec. 39.2. Prohibition of political contributions from
3certain licensees and applicants.
4    (a) The General Assembly has a compelling interest in
5protecting the integrity of both the electoral process and the
6legislative process by preventing corruption and the
7appearance of corruption which may arise through permitting
8certain political campaign contributions by certain persons
9involved in the horse racing industry and regulated by the
10State. Unlike most other regulated industries, horse racing is
11especially susceptible to corruption and potential criminal
12influence. In Illinois, only licensed horse racing is legal and
13all other such activities are strictly prohibited. Given these
14circumstances, it is imperative to eliminate any potential
15corrupt influence in the horse racing industry and the
16electoral process.
17    Banning political campaign contributions by certain
18persons subject to this Section to State officeholders and
19candidates for such offices and to county and municipal
20officeholders and candidates for such offices in counties and
21municipalities that receive financial benefits from horse
22racing is necessary to prevent corruption and the appearance of
23corruption that may arise when political campaign
24contributions and horse racing that is regulated by the State
25and that confers benefits on counties and municipalities are
26intermingled.

 

 

HB2498- 323 -LRB100 03891 AMC 13896 b

1    (b) As used in this Section:
2    "Affiliated entity" means (i) any corporate parent and each
3operating subsidiary of the business entity applying for or
4holding a license, (ii) each operating subsidiary of the
5corporate parent of the business entity applying for or holding
6a license, (iii) any organization recognized by the United
7States Internal Revenue Service as a tax-exempt organization
8described in Section 501(c) of the Internal Revenue Code of
91986 (or any successor provision of federal tax law)
10established by one or more business entities seeking or holding
11a license, any affiliated entity of such business entity, or
12any affiliated person of such business entity, and (iv) any
13political committee for which the business entity applying for
14or holding a license, or any 501(c) organization described in
15item (iii) related to that business entity, is the sponsoring
16entity, as defined in Section 9-3 of the Election Code. For
17purposes of item (iv), the funding of all business entities
18applying for or holding a license shall be aggregated in
19determining whether such political committee is an affiliated
20entity.
21    "Affiliated person" means (i) any person with any ownership
22interest or distributive share in excess of 7.5% of any
23business entity applying for or holding a license, (ii)
24executive employees of any such business entity, and (iii) the
25spouse of the persons described in items (i) and (ii).
26    "Business entity" means any entity doing business for

 

 

HB2498- 324 -LRB100 03891 AMC 13896 b

1profit, whether organized as a corporation, partnership, sole
2proprietorship, limited liability company, or otherwise.
3    "Contribution" means a contribution as defined in Section
49-1.4 of the Election Code.
5    "Declared candidate" means a person who has filed a
6statement of candidacy and petition for nomination or election
7in the principal office of the State Board of Elections, or in
8the office of the appropriate election authority for any county
9or municipality in which a race track is located.
10    "Executive employee" means (i) any person who is an officer
11or director or who fulfills duties equivalent to those of an
12officer or director of a business entity applying for or
13holding a license and (ii) any employee of such business entity
14who is required to register under the Lobbyist Registration
15Act.
16    "License" means any organization, inter-track wagering,
17inter-track wagering location, advance deposit wagering or
18concessionaire license issued pursuant to this Act.
19    "Officeholder" means the Governor, Lieutenant Governor,
20Attorney General, Secretary of State, Comptroller, Treasurer,
21member of the General Assembly, or any officeholder in any
22county or municipality in which a race track is located.
23    (c) Any person or business entity applying for or holding a
24license, any affiliated entities or persons of such business
25entity, any horsemen's association, and any entities or persons
26soliciting a contribution or causing a contribution to be made

 

 

HB2498- 325 -LRB100 03891 AMC 13896 b

1on behalf of such person, business entity, or horsemen's
2association, are prohibited from making any contribution to any
3officeholder or declared candidate or any political committee
4affiliated with any officeholder or declared candidate, as
5defined in Section 9-1.8 of the Election Code. This prohibition
6shall commence upon filing of an application for a license and
7shall continue for a period of 2 years after termination,
8suspension or revocation of the license.
9    The Board shall have authority to suspend, revoke, or
10restrict the license and to impose civil penalties of up to
11$100,000 for each violation of this subsection (c). A notice of
12each such violation and the penalty imposed shall be published
13on the Board's Internet website and in the Illinois Register.
14Payments received by the State pursuant to this subsection
15shall be deposited into the General Revenue Fund.
16    Any officeholder or declared candidate or any political
17committee affiliated with any officeholder or declared
18candidate that has received a contribution in violation of this
19subsection (c) shall pay an amount equal to the value of the
20contribution to the State no more than 30 days after notice of
21the violation concerning the contribution appears in the
22Illinois Register. Payments received by the State pursuant to
23this subsection (c) shall be deposited into the General Revenue
24Fund.
25    (d) The Board shall post on its website a list of all
26persons, business entities, horsemen's associations, and

 

 

HB2498- 326 -LRB100 03891 AMC 13896 b

1affiliated entities prohibited from making contributions to
2any officeholder or declared candidate political committee
3pursuant to subsection (c), which list shall be updated and
4published, at a minimum, every 6 months.
5    Any person, business entity, horsemen's association, or
6affiliated entity prohibited from making contributions to any
7officeholder or declared candidate political committee
8pursuant to subsection (c) shall notify the Board within 7 days
9after discovering any necessary change or addition to the
10information relating to that person, business entity,
11horsemen's association, or affiliated entity contained in the
12list.
13    An individual who acts in good faith and in reliance on any
14information contained in the list shall not be subject to any
15penalties or liability imposed for a violation of this Section.
16    (e) If any provision of this Section is held invalid or its
17application to any person or circumstance is held invalid, the
18invalidity of that provision or application does not affect the
19other provisions or applications of this Section that can be
20given effect without the invalid application or provision.
 
21    (230 ILCS 5/40)  (from Ch. 8, par. 37-40)
22    Sec. 40. (a) The imposition of any fine or penalty provided
23in this Act shall not preclude the Board in its rules and
24regulations from imposing a fine or penalty for any other
25action which, in the Board's discretion, is a detriment or

 

 

HB2498- 327 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 328 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 329 -LRB100 03891 AMC 13896 b

1    $50 per mare not included on the list or report.
2    Any person upon whom monetary penalties are imposed under
3this Section 3 times within a 5-year 5 year period shall have
4any further monetary penalties imposed at double the amounts
5set forth above. All monies assessed and collected for
6violations relating to thoroughbreds shall be paid into the
7Illinois Thoroughbred Breeders Fund. All monies assessed and
8collected for violations relating to standardbreds shall be
9paid into the Illinois Standardbred Breeders Fund.
10(Source: P.A. 87-397; revised 9-2-16.)
 
11    (230 ILCS 5/54.75)
12    Sec. 54.75. Horse Racing Equity Trust Fund.
13    (a) There is created a Fund to be known as the Horse Racing
14Equity Trust Fund, which is a non-appropriated trust fund held
15separate and apart from State moneys. The Fund shall consist of
16moneys paid into it by owners licensees under the Illinois
17Riverboat Gambling Act for the purposes described in this
18Section. The Fund shall be administered by the Board. Moneys in
19the Fund shall be distributed as directed and certified by the
20Board in accordance with the provisions of subsection (b).
21    (b) The moneys deposited into the Fund, plus any accrued
22interest on those moneys, shall be distributed within 10 days
23after those moneys are deposited into the Fund as follows:
24        (1) Sixty percent of all moneys distributed under this
25    subsection shall be distributed to organization licensees

 

 

HB2498- 330 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 331 -LRB100 03891 AMC 13896 b

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

 

 

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1company having operating control of a race track may apply to
2the Gaming Board for an electronic gaming license. An
3electronic gaming license shall authorize its holder to conduct
4electronic gaming on the grounds of the race track controlled
5by the licensee's race track. Only one electronic gaming
6license may be awarded for any race track. A holder of an
7electronic gaming license shall be subject to the Illinois
8Gambling Act and rules of the Illinois Gaming Board concerning
9electronic gaming. If the person, firm, corporation, or limited
10liability company having operating control of a race track is
11found by the Illinois Gaming Board to be unsuitable for an
12electronic gaming license under the Illinois Gambling Act and
13rules of the Gaming Board, that person, firm, corporation, or
14limited liability company shall not be granted an electronic
15gaming license. Each license shall specify the number of gaming
16positions that its holder may operate.
17    An electronic gaming licensee may not permit persons under
1821 years of age to be present in its electronic gaming
19facility, but the licensee may accept wagers on live racing and
20inter-track wagers at its electronic gaming facility.
21    (b) For purposes of this subsection, "adjusted gross
22receipts" means an electronic gaming licensee's gross receipts
23less winnings paid to wagerers and shall also include any
24amounts that would otherwise be deducted pursuant to subsection
25(a-9) of Section 13 of the Illinois Gambling Act. The adjusted
26gross receipts by an electronic gaming licensee from electronic

 

 

HB2498- 333 -LRB100 03891 AMC 13896 b

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

 

 

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

 

 

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1receipts distributed to purses per subsection (b) of this
2Section 56 shall be paid as follows: 0.33 1/3% to Southern
3Illinois University Department of Animal Sciences for equine
4research and education, an amount equal to 0.33 1/3% of the
5electronic gaming receipts shall be used to operate laundry
6facilities or a kitchen for backstretch workers at that race
7track, and an amount equal to 0.33 1/3% of the electronic
8gaming receipts shall be paid to R.A.C.E., Inc., a 501(c)(3)
9non-profit organization that cares for injured and unwanted
10horses that race at that race track.
11    Annually, from the purse account of organization licensees
12conducting thoroughbred races at race tracks in Cook County,
13$100,000 shall be paid for division and equal distribution to
14the animal sciences department of each Illinois public
15university system engaged in equine research and education on
16or before the effective date of this amendatory Act of the
17100th General Assembly for equine research and education.
18    (d) Annually, from the purse account of an organization
19licensee racing standardbred horses, an amount equal to 15% of
20the electronic gaming receipts placed into that purse account
21shall be paid to the Illinois Colt Stakes Purse Distribution
22Fund. Moneys deposited into the Illinois Colt Stakes Purse
23Distribution Fund shall be used for standardbred racing as
24authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of
25subsection (g) of Section 31 of this Act and for bonus awards
26as authorized under paragraph 6 of subsection (j) of Section 31

 

 

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1of this Act.
2    (e) The Illinois Gaming Board shall submit a report to the
3General Assembly on or before December 31, 2018 that examines
4the feasibility of conducting electronic gaming at the Illinois
5State Fairgrounds in Sangamon County. At a minimum, this report
6shall analyze the projected revenues that will be generated,
7the potential for cannibalization of existing riverboats,
8casinos, or other electronic gaming facilities, and the
9potential detriment to the surrounding area and its population.
10The report shall include the Illinois Gaming Board's findings
11together with appropriate recommendations for legislative
12action.
 
13    Section 90-40. The Riverboat Gambling Act is amended by
14changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,
1511.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,
16and 24 and by adding Sections 5.3, 7.7, 7.8, 7.9, 7.10, 7.11,
177.12, 7.13, and 18.2 as follows:
 
18    (230 ILCS 10/1)  (from Ch. 120, par. 2401)
19    Sec. 1. Short title. This Act shall be known and may be
20cited as the Illinois Riverboat Gambling Act.
21(Source: P.A. 86-1029.)
 
22    (230 ILCS 10/2)  (from Ch. 120, par. 2402)
23    Sec. 2. Legislative Intent.

 

 

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1    (a) This Act is intended to benefit the people of the State
2of Illinois by assisting economic development, and promoting
3Illinois tourism, and by increasing the amount of revenues
4available to the State to assist and support education, and to
5defray State expenses, including unpaid bills.
6    (b) While authorization of riverboat and casino gambling
7will enhance investment, beautification, development and
8tourism in Illinois, it is recognized that it will do so
9successfully only if public confidence and trust in the
10credibility and integrity of the gambling operations and the
11regulatory process is maintained. Therefore, regulatory
12provisions of this Act are designed to strictly regulate the
13facilities, persons, associations and practices related to
14gambling operations pursuant to the police powers of the State,
15including comprehensive law enforcement supervision.
16    (c) The Illinois Gaming Board established under this Act
17should, as soon as possible, inform each applicant for an
18owners license of the Board's intent to grant or deny a
19license.
20(Source: P.A. 93-28, eff. 6-20-03.)
 
21    (230 ILCS 10/3)  (from Ch. 120, par. 2403)
22    Sec. 3. Riverboat Gambling Authorized.
23    (a) Riverboat and casino gambling operations and
24electronic gaming operations and the system of wagering
25incorporated therein, as defined in this Act, are hereby

 

 

HB2498- 338 -LRB100 03891 AMC 13896 b

1authorized to the extent that they are carried out in
2accordance with the provisions of this Act.
3    (b) This Act does not apply to the pari-mutuel system of
4wagering used or intended to be used in connection with the
5horse-race meetings as authorized under the Illinois Horse
6Racing Act of 1975, lottery games authorized under the Illinois
7Lottery Law, bingo authorized under the Bingo License and Tax
8Act, charitable games authorized under the Charitable Games Act
9or pull tabs and jar games conducted under the Illinois Pull
10Tabs and Jar Games Act. This Act applies to electronic gaming
11authorized under the Illinois Horse Racing Act of 1975 to the
12extent provided in that Act and in this Act.
13    (c) Riverboat gambling conducted pursuant to this Act may
14be authorized upon any water within the State of Illinois or
15any water other than Lake Michigan which constitutes a boundary
16of the State of Illinois. Notwithstanding any provision in this
17subsection (c) to the contrary, a licensee that receives its
18license pursuant to subsection (e-5) of Section 7 may conduct
19riverboat gambling on Lake Michigan from a home dock located on
20Lake Michigan subject to any limitations contained in Section
217. Notwithstanding any provision in this subsection (c) to the
22contrary, a licensee may conduct gambling at its home dock
23facility as provided in Sections 7 and 11. A licensee may
24conduct riverboat gambling authorized under this Act
25regardless of whether it conducts excursion cruises. A licensee
26may permit the continuous ingress and egress of passengers for

 

 

HB2498- 339 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 340 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 341 -LRB100 03891 AMC 13896 b

1exchanged for the purchase of chips, tokens, or electronic
2cards by riverboat patrons.
3    (h) "Adjusted gross receipts" means the gross receipts less
4winnings paid to wagerers.
5    (i) "Cheat" means to alter the selection of criteria which
6determine the result of a gambling game or the amount or
7frequency of payment in a gambling game.
8    (j) (Blank).
9    (k) "Gambling operation" means the conduct of authorized
10gambling games authorized under this Act upon a riverboat or in
11a casino or authorized under this Act and the Illinois Horse
12Racing Act of 1975 at an electronic gaming facility.
13    (l) "License bid" means the lump sum amount of money that
14an applicant bids and agrees to pay the State in return for an
15owners license that is issued or re-issued on or after July 1,
162003.
17    "Table game" means a live gaming apparatus upon which
18gaming is conducted or that determines an outcome that is the
19object of a wager, including, but not limited to, baccarat,
20twenty-one, blackjack, poker, craps, roulette wheel, klondike
21table, punchboard, faro layout, keno layout, numbers ticket,
22push card, jar ticket, pull tab, or other similar games that
23are authorized by the Board as a wagering device under this
24Act. "Table game" does not include slot machines or video games
25of chance.
26    (m) The terms "minority person", "female", and "person with

 

 

HB2498- 342 -LRB100 03891 AMC 13896 b

1a disability" shall have the same meaning as defined in Section
22 of the Business Enterprise for Minorities, Females, and
3Persons with Disabilities Act.
4    "Authority" means the Chicago Casino Development
5Authority.
6    "Casino" means a facility at which lawful gambling is
7authorized as provided in this Act.
8    "Owners license" means a license to conduct riverboat or
9casino gambling operations, but does not include an electronic
10gaming license.
11    "Licensed owner" means a person who holds an owners
12license.
13    "Electronic gaming" means slot machine gambling, video
14game of chance gambling, or gambling with electronic gambling
15games as defined in this Act or defined by the Board that is
16conducted at a race track pursuant to an electronic gaming
17license.
18    "Electronic gaming facility" means the area where the Board
19has authorized electronic gaming at a race track of an
20organization licensee under the Illinois Horse Racing Act of
211975 that holds an electronic gaming license.
22    "Electronic gaming license" means a license issued by the
23Board under Section 7.7 of this Act authorizing electronic
24gaming at an electronic gaming facility.
25    "Electronic gaming licensee" means an entity that holds an
26electronic gaming license.

 

 

HB2498- 343 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 344 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 345 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 346 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 347 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 348 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 349 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 350 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 351 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 352 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 353 -LRB100 03891 AMC 13896 b

1    as the Governor may request. The annual report shall
2    include a statement of receipts and disbursements by the
3    Board, actions taken by the Board, and any additional
4    information and recommendations which the Board may deem
5    valuable or which the Governor may request;
6        (11) (Blank);
7        (12) (Blank);
8        (13) To assume responsibility for administration and
9    enforcement of the Video Gaming Act; and
10        (13.1) To assume responsibility for the administration
11    and enforcement of operations at electronic gaming
12    facilities pursuant to this Act and the Illinois Horse
13    Racing Act of 1975;
14        (13.2) To assume responsibility for the administration
15    and enforcement of gambling operations at the Chicago
16    Casino Development Authority's casino pursuant to this Act
17    and the Chicago Casino Development Authority Act; and
18        (14) To adopt, by rule, a code of conduct governing
19    Board members and employees that ensure, to the maximum
20    extent possible, that persons subject to this Code avoid
21    situations, relationships, or associations that may
22    represent or lead to a conflict of interest.
23    Internal controls and changes submitted by licensees must
24be reviewed and either approved or denied with cause within 90
25days after receipt of submission is deemed final by the
26Illinois Gaming Board. In the event an internal control

 

 

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

 

 

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1        (3) To promulgate rules and regulations for the purpose
2    of administering the provisions of this Act and the Chicago
3    Casino Development Authority Act and to prescribe rules,
4    regulations and conditions under which all riverboat
5    gambling operations subject to this Act and the Chicago
6    Casino Development Authority Act in the State shall be
7    conducted. Such rules and regulations are to provide for
8    the prevention of practices detrimental to the public
9    interest and for the best interests of riverboat gambling,
10    including rules and regulations regarding the inspection
11    of electronic gaming facilities, casinos, and such
12    riverboats, and the review of any permits or licenses
13    necessary to operate a riverboat, casino, or electronic
14    gaming facilities under any laws or regulations applicable
15    to riverboats, casinos, or electronic gaming facilities
16    and to impose penalties for violations thereof.
17        (4) To enter the office, riverboats, casinos,
18    electronic gaming facilities, and other facilities, or
19    other places of business of a licensee, where evidence of
20    the compliance or noncompliance with the provisions of this
21    Act and the Chicago Casino Development Authority Act is
22    likely to be found.
23        (5) To investigate alleged violations of this Act, the
24    Chicago Casino Development Authority Act, or the rules of
25    the Board and to take appropriate disciplinary action
26    against a licensee or a holder of an occupational license

 

 

HB2498- 356 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 357 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 358 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 359 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 360 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 361 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 362 -LRB100 03891 AMC 13896 b

1        (22) To have the same jurisdiction and supervision over
2    casinos and electronic gaming facilities as the Board has
3    over riverboats, including, but not limited to, the power
4    to (i) investigate, review, and approve contracts as that
5    power is applied to riverboats, (ii) adopt rules for
6    administering the provisions of this Act or the Chicago
7    Casino Development Authority Act, (iii) adopt standards
8    for the licensing of all persons involved with a casino or
9    electronic gaming facility, (iv) investigate alleged
10    violations of this Act by any person involved with a casino
11    or electronic gaming facility, and (v) require that
12    records, including financial or other statements of any
13    casino or electronic gaming facility, shall be kept in such
14    manner as prescribed by the Board.
15        (23) To supervise and regulate the Chicago Casino
16    Development Authority in accordance with the Chicago
17    Casino Development Authority Act and the provisions of this
18    Act.
19        (24) (21) To take any other action as may be reasonable
20    or appropriate to enforce this Act, the Chicago Casino
21    Development Authority Act, and the rules adopted by the
22    Board under both Acts and regulations hereunder.
23    All Board powers enumerated in this Section in relation to
24licensees shall apply equally to the holder of any casino
25management contract entered into pursuant to the Chicago Casino
26Development Authority Act.

 

 

HB2498- 363 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 364 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 365 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 366 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 367 -LRB100 03891 AMC 13896 b

1    electronic gaming location, expected economic benefit to
2    the community, anticipated or actual number of employees,
3    any statement from an applicant or licensee regarding
4    compliance with federal and State affirmative action
5    guidelines, projected or actual admissions and projected
6    or actual adjusted gross gaming receipts.
7        (12) A description of the product or service to be
8    supplied by an applicant for a supplier's license.
9    (b) Notwithstanding any applicable statutory provision to
10the contrary, the Board shall, on written request from any
11person, also provide the following information:
12        (1) The amount of the wagering tax and admission tax
13    paid daily to the State of Illinois by the holder of an
14    owner's license.
15        (2) Whenever the Board finds an applicant for an
16    owner's license unsuitable for licensing, a copy of the
17    written letter outlining the reasons for the denial.
18        (3) Whenever the Board has refused to grant leave for
19    an applicant to withdraw his application, a copy of the
20    letter outlining the reasons for the refusal.
21    (c) Subject to the above provisions, the Board shall not
22disclose any information which would be barred by:
23        (1) Section 7 of the Freedom of Information Act; or
24        (2) The statutes, rules, regulations or
25    intergovernmental agreements of any jurisdiction.
26    (d) The Board may assess fees for the copying of

 

 

HB2498- 368 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 369 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 370 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 371 -LRB100 03891 AMC 13896 b

1business with the riverboat or casino that is located in the
2host community that resulted in contracts with an aggregate
3value of at least $25,000 or if that official or employee has
4made a decision that directly applied to the person or entity,
5or its parent or affiliate.
6    (i) Officials and employees of the corporate authority of a
7host community shall not attempt, in any way, to influence any
8person or entity doing business with the riverboat or casino
9that is located in the host community or any officer, agent, or
10employee thereof to hire or contract with any person or entity
11for any compensated work.
12    (j) Any communication between an official of the corporate
13authority of a host community and any applicant for an owners
14license in the host community, or an officer, director, or
15employee of a riverboat or casino in the host community,
16concerning any matter relating in any way to gaming shall be
17disclosed to the Board. Such disclosure shall be in writing by
18the official within 30 days after the communication and shall
19be filed with the Board. Disclosure must consist of the date of
20the communication, the identity and job title of the person
21with whom the communication was made, a brief summary of the
22communication, the action requested or recommended, all
23responses made, the identity and job title of the person making
24the response, and any other pertinent information. Public
25disclosure of the written summary provided to the Board and the
26Gaming Board shall be subject to the exemptions provided under

 

 

HB2498- 372 -LRB100 03891 AMC 13896 b

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

 

 

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1riverboat on which such gambling operation is to be conducted,
2if applicable, and the exact location where such riverboat or
3casino will be located docked, a certification that the
4riverboat will be registered under this Act at all times during
5which gambling operations are conducted on board, detailed
6information regarding the ownership and management of the
7applicant, and detailed personal information regarding the
8applicant. Any application for an owners license to be
9re-issued on or after June 1, 2003 shall also include the
10applicant's license bid in a form prescribed by the Board.
11Information provided on the application shall be used as a
12basis for a thorough background investigation which the Board
13shall conduct with respect to each applicant. An incomplete
14application shall be cause for denial of a license by the
15Board.
16    (a-5) In addition to any other information required under
17this Section, each application for an owners license must
18include the following information:
19        (1) The history and success of the applicant and each
20    person and entity disclosed under subsection (c) of this
21    Section in developing tourism facilities ancillary to
22    gaming, if applicable.
23        (2) The likelihood that granting a license to the
24    applicant will lead to the creation of quality, living wage
25    jobs and permanent, full-time jobs for residents of the
26    State and residents of the unit of local government that is

 

 

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1    designated as the home dock of the proposed facility where
2    gambling is to be conducted by the applicant.
3        (3) The projected number of jobs that would be created
4    if the license is granted and the projected number of new
5    employees at the proposed facility where gambling is to be
6    conducted by the applicant.
7        (4) The record, if any, of the applicant and its
8    developer in meeting commitments to local agencies,
9    community-based organizations, and employees at other
10    locations where the applicant or its developer has
11    performed similar functions as they would perform if the
12    applicant were granted a license.
13        (5) Identification of adverse effects that might be
14    caused by the proposed facility where gambling is to be
15    conducted by the applicant, including the costs of meeting
16    increased demand for public health care, child care, public
17    transportation, affordable housing, and social services,
18    and a plan to mitigate those adverse effects.
19        (6) The record, if any, of the applicant and its
20    developer regarding compliance with:
21            (A) federal, state, and local discrimination, wage
22        and hour, disability, and occupational and
23        environmental health and safety laws; and
24            (B) state and local labor relations and employment
25        laws.
26        (7) The applicant's record, if any, in dealing with its

 

 

HB2498- 375 -LRB100 03891 AMC 13896 b

1    employees and their representatives at other locations.
2        (8) A plan concerning the utilization of
3    minority-owned and female-owned businesses and concerning
4    the hiring of minorities and females.
5        (9) Evidence the applicant used its best efforts to
6    reach a goal of 25% ownership representation by minority
7    persons and 5% ownership representation by females.
8    (b) Applicants shall submit with their application all
9documents, resolutions, and letters of support from the
10governing body that represents the municipality or county
11wherein the licensee will be located dock.
12    (c) Each applicant shall disclose the identity of every
13person or entity , association, trust or corporation having a
14greater than 1% direct or indirect pecuniary interest in the
15riverboat gambling operation with respect to which the license
16is sought. If the disclosed entity is a trust, the application
17shall disclose the names and addresses of all the
18beneficiaries; if a corporation, the names and addresses of all
19stockholders and directors; if a partnership, the names and
20addresses of all partners, both general and limited.
21    (d) An application shall be filed and considered in
22accordance with the rules of the Board. Each application shall
23be accompanied by a non-refundable An application fee of
24$100,000. In addition, a non-refundable fee of $50,000 shall be
25paid at the time of filing to defray the costs associated with
26the background investigation conducted by the Board. If the

 

 

HB2498- 376 -LRB100 03891 AMC 13896 b

1costs of the investigation exceed $50,000, the applicant shall
2pay the additional amount to the Board within 7 days after
3requested by the Board. If the costs of the investigation are
4less than $50,000, the applicant shall receive a refund of the
5remaining amount. All information, records, interviews,
6reports, statements, memoranda or other data supplied to or
7used by the Board in the course of its review or investigation
8of an application for a license or a renewal under this Act
9shall be privileged, strictly confidential and shall be used
10only for the purpose of evaluating an applicant for a license
11or a renewal. Such information, records, interviews, reports,
12statements, memoranda or other data shall not be admissible as
13evidence, nor discoverable in any action of any kind in any
14court or before any tribunal, board, agency or person, except
15for any action deemed necessary by the Board. The application
16fee shall be deposited into the Gaming Facilities Fee Revenue
17Fund.
18    (e) The Board shall charge each applicant a fee set by the
19Department of State Police to defray the costs associated with
20the search and classification of fingerprints obtained by the
21Board with respect to the applicant's application. These fees
22shall be paid into the State Police Services Fund.
23    (f) The licensed owner shall be the person primarily
24responsible for the boat or casino itself. Only one riverboat
25gambling operation may be authorized by the Board on any
26riverboat or in any casino. The applicant must identify the

 

 

HB2498- 377 -LRB100 03891 AMC 13896 b

1each riverboat or premises it intends to use and certify that
2the riverboat or premises: (1) has the authorized capacity
3required in this Act; (2) is accessible to persons with
4disabilities; and (3) is fully registered and licensed in
5accordance with any applicable laws.
6    (g) A person who knowingly makes a false statement on an
7application is guilty of a Class A misdemeanor.
8(Source: P.A. 99-143, eff. 7-27-15.)
 
9    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
10    Sec. 7. Owners Licenses.
11    (a) The Board shall issue owners licenses to persons or
12entities , firms or corporations which apply for such licenses
13upon payment to the Board of the non-refundable license fee as
14provided in subsection (e) or (e-5) set by the Board, upon
15payment of a $25,000 license fee for the first year of
16operation and a $5,000 license fee for each succeeding year and
17upon a determination by the Board that the applicant is
18eligible for an owners license pursuant to this Act, the
19Chicago Casino Development Authority Act, and the rules of the
20Board. From the effective date of this amendatory Act of the
2195th General Assembly until (i) 3 years after the effective
22date of this amendatory Act of the 95th General Assembly, (ii)
23the date any organization licensee begins to operate a slot
24machine or video game of chance under the Illinois Horse Racing
25Act of 1975 or this Act, (iii) the date that payments begin

 

 

HB2498- 378 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 379 -LRB100 03891 AMC 13896 b

1    Article 28 of the Criminal Code of 1961 or the Criminal
2    Code of 2012, or substantially similar laws of any other
3    jurisdiction;
4        (3) the person has submitted an application for a
5    license under this Act or the Chicago Casino Development
6    Authority Act which contains false information;
7        (4) the person is a member of the Board;
8        (5) a person defined in (1), (2), (3) or (4) is an
9    officer, director or managerial employee of the entity firm
10    or corporation;
11        (6) the entity firm or corporation employs a person
12    defined in (1), (2), (3) or (4) who participates in the
13    management or operation of gambling operations authorized
14    under this Act or the Chicago Casino Development Authority
15    Act;
16        (7) (blank); or
17        (8) a license of the person or entity , firm or
18    corporation issued under this Act or the Chicago Casino
19    Development Authority Act, or a license to own or operate
20    gambling facilities in any other jurisdiction, has been
21    revoked.
22    The Board is expressly prohibited from making changes to
23the requirement that licensees make payment into the Horse
24Racing Equity Trust Fund without the express authority of the
25Illinois General Assembly and making any other rule to
26implement or interpret this amendatory Act of the 95th General

 

 

HB2498- 380 -LRB100 03891 AMC 13896 b

1Assembly. For the purposes of this paragraph, "rules" is given
2the meaning given to that term in Section 1-70 of the Illinois
3Administrative Procedure Act.
4    (a-1) Upon approval of the members of the Chicago Casino
5Development Board, the Chicago Casino Development Authority's
6executive director, and the Chicago casino operator licensee,
7the Board shall issue an owners license to the Chicago Casino
8Development Authority that authorizes the conduct of gambling
9operations in a casino or in an airport located in the City of
10Chicago.
11    (b) In determining whether to grant an owners license to an
12applicant other than the Chicago Casino Development Authority,
13the Board shall consider:
14        (1) the character, reputation, experience and
15    financial integrity of the applicants and of any other or
16    separate person that either:
17            (A) controls, directly or indirectly, such
18        applicant, or
19            (B) is controlled, directly or indirectly, by such
20        applicant or by a person which controls, directly or
21        indirectly, such applicant;
22        (2) the facilities or proposed facilities for the
23    conduct of riverboat gambling;
24        (3) the highest prospective total revenue to be derived
25    by the State from the conduct of riverboat gambling;
26        (4) the extent to which the ownership of the applicant

 

 

HB2498- 381 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 382 -LRB100 03891 AMC 13896 b

1forms provided by the Board, 2 sets of his fingerprints.
2    (e) In addition to any licenses authorized under subsection
3(e-5) of this Section, the The Board may issue up to 10
4licenses authorizing the holders of such licenses to own
5riverboats. In the application for an owners license, the
6applicant shall state the dock at which the riverboat is based
7and the water on which the riverboat will be located. The Board
8shall issue 5 licenses to become effective not earlier than
9January 1, 1991. Three of such licenses shall authorize
10riverboat gambling on the Mississippi River, or, with approval
11by the municipality in which the riverboat was docked on August
127, 2003 and with Board approval, be authorized to relocate to a
13new location, in a municipality that (1) borders on the
14Mississippi River or is within 5 miles of the city limits of a
15municipality that borders on the Mississippi River and (2), on
16August 7, 2003, had a riverboat conducting riverboat gambling
17operations pursuant to a license issued under this Act; one of
18which shall authorize riverboat gambling from a home dock in
19the city of East St. Louis. One other license shall authorize
20riverboat gambling on the Illinois River in Tazewell County or,
21with Board approval, shall authorize the riverboat to relocate
22to a new location that is no more than 10 miles away from its
23original location, in a municipality that borders on the
24Illinois River or is within 5 miles of the city limits of a
25municipality that borders on the Illinois River south of
26Marshall County. The Board shall issue one additional license

 

 

HB2498- 383 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 384 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 385 -LRB100 03891 AMC 13896 b

1after the effective date of this amendatory Act of the 100th
2General Assembly.
3    The Board shall consider issuing a license pursuant to
4paragraphs (2) through (5) of this subsection only after the
5corporate authority of the municipality in which the riverboat
6shall be located has certified to the Board the following:
7        (i) that the applicant has negotiated with the
8    corporate authority in good faith;
9        (ii) that the applicant and the corporate authority
10    have mutually agreed on the permanent location of the
11    riverboat;
12        (iii) that the applicant and the corporate authority
13    have mutually agreed on the temporary location of the
14    riverboat;
15        (iv) that the applicant and the corporate authority
16    have mutually agreed on the percentage of revenues that
17    will be shared with the municipality, if any; and
18        (v) that the applicant and the corporate authority have
19    mutually agreed on any zoning, licensing, public health, or
20    other issues that are within the jurisdiction of the
21    municipality.
22    At least 7 days before the corporate authority of a
23municipality submits a certification to the Board concerning
24items (i) through (v) of this subsection, it shall hold a
25public hearing to discuss items (i) through (v), as well as any
26other details concerning the proposed riverboat in the

 

 

HB2498- 386 -LRB100 03891 AMC 13896 b

1municipality. The corporate authority must subsequently
2memorialize the details concerning the proposed riverboat or
3casino in a resolution that must be adopted by a majority of
4the corporate authority before any certification is sent to the
5Board. The Board shall not alter, amend, change, or otherwise
6interfere with any agreement between the applicant and the
7corporate authority of the municipality regarding the location
8of any temporary or permanent facility.
9    (e-10) The licenses authorized under subsection (e-5) of
10this Section shall be issued within 12 months after the date
11the license application is submitted. If the Board does not
12issue the licenses within that time period, then the Board
13shall give a written explanation to the applicant as to why it
14has not reached a determination and when it reasonably expects
15to make a determination. The fee for the issuance or renewal of
16a license issued pursuant to this subsection (e-10) shall be
17$100,000. Additionally, a licensee located outside of Cook
18County shall pay a minimum initial fee of $17,500 per gaming
19position, and a licensee located in Cook County shall pay a
20minimum initial fee of $30,000 per gaming position. The initial
21fees payable under this subsection (e-10) shall be deposited
22into the Gaming Facilities Fee Revenue Fund.
23    (e-15) Each licensee of a license authorized under
24subsection (e-5) of this Section shall make a reconciliation
25payment 3 years after the date the licensee begins operating in
26an amount equal to 75% of the adjusted gross receipts for the

 

 

HB2498- 387 -LRB100 03891 AMC 13896 b

1most lucrative 12-month period of operations, minus an amount
2equal to the initial payment per gaming position paid by the
3specific licensee. If this calculation results in a negative
4amount, then the licensee is not entitled to any reimbursement
5of fees previously paid. This reconciliation payment may be
6made in installments over a period of no more than 2 years,
7subject to Board approval. Any installment payments shall
8include an annual market interest rate as determined by the
9Board. All payments by licensees under this subsection (e-15)
10shall be deposited into the Gaming Facilities Fee Revenue Fund.
11    (e-20) In addition to any other revocation powers granted
12to the Board under this Act, the Board may revoke the owners
13license of a licensee, other than the Chicago Casino
14Development Authority, which fails to begin conducting
15gambling within 15 months of receipt of the Board's approval of
16the application if the Board determines that license revocation
17is in the best interests of the State.
18    (f) The first 10 owners licenses issued under this Act
19shall permit the holder to own up to 2 riverboats and equipment
20thereon for a period of 3 years after the effective date of the
21license. Holders of the first 10 owners licenses must pay the
22annual license fee for each of the 3 years during which they
23are authorized to own riverboats.
24    (g) Upon the termination, expiration, or revocation of each
25of the first 10 licenses, which shall be issued for a 3 year
26period, all licenses are renewable annually upon payment of the

 

 

HB2498- 388 -LRB100 03891 AMC 13896 b

1fee and a determination by the Board that the licensee
2continues to meet all of the requirements of this Act and the
3Board's rules. However, for licenses renewed on or after May 1,
41998, including casino operator licenses, renewal shall be for
5a period of 4 years, unless the Board sets a shorter period.
6Notwithstanding any provision in this subsection (g) to the
7contrary, any license that is awarded to the Chicago Casino
8Development Authority shall not expire, but it shall be subject
9to the provisions of this Act and the rules of the Board.
10    (h) An owners license, except for an owners license issued
11under subsection (e-5) of this Section, shall entitle the
12licensee to own up to 2 riverboats.
13    An owners licensee of a casino or riverboat that is located
14in the City of Chicago pursuant to paragraph (1) of subsection
15(e-5) of this Section shall limit the number of gaming
16positions to 4,000 for such owner. All other owners licensees A
17licensee shall limit the number of gaming positions gambling
18participants to 1,600 1,200 for any such owners license, except
19as further provided in subsection (h-10) of this Section. The
20initial fee for each gaming position obtained on or after the
21effective date of this amendatory Act of the 100th General
22Assembly shall be a minimum of $17,500 for licensees not
23located in Cook County and a minimum of $30,000 for licensees
24located in Cook County, in addition to the reconciliation
25payment, as set forth in subsections (e-15) or (h-5) of this
26Section.

 

 

HB2498- 389 -LRB100 03891 AMC 13896 b

1    Each owners licensee shall reserve its gaming positions
2within 90 days after issuance of its owners license. The Board
3may grant an extension to this 90-day period, provided that the
4owners licensee submits a written request and explanation as to
5why it is unable to reserve its positions within the 90-day
6period.
7    A licensee may operate both of its riverboats concurrently,
8provided that the total number of gaming positions gambling
9participants on both riverboats does not exceed the limit
10established pursuant to this subsection and subsection (h-10)
11of this Section 1,200. Riverboats licensed to operate on the
12Mississippi River and the Illinois River south of Marshall
13County shall have an authorized capacity of at least 500
14persons. Any other riverboat licensed under this Act shall have
15an authorized capacity of at least 400 persons.
16    (h-5) An owners licensee who conducted gambling operations
17prior to January 1, 2012 and purchases positions pursuant to
18subsection (h-10) of this Section on or after the effective
19date of this amendatory Act of the 100th General Assembly must
20pay a minimum initial fee of $17,500 per gaming position if the
21licensee is located outside Cook County and a minimum initial
22fee of $30,000 per gaming position if the licensee is located
23in Cook County, as stated in subsection (h) of this Section.
24These initial fees shall be deposited into the Gaming
25Facilities Fee Revenue Fund. Additionally, that owners
26licensee shall make a reconciliation payment 3 years after any

 

 

HB2498- 390 -LRB100 03891 AMC 13896 b

1additional gaming positions obtained pursuant to subsection
2(h-10) begin operating in an amount equal to 75% of the owners
3licensee's average gross receipts for the most lucrative
412-month period of operations minus an amount equal to the
5initial fee that the owners licensee paid per additional gaming
6position. For purposes of this subsection (h-5), "average gross
7receipts" means (i) the increase in adjusted gross receipts for
8the most lucrative 12-month period of operations over the
9adjusted gross receipts for 2017, multiplied by (ii) the
10percentage derived by dividing the number of additional gaming
11positions that an owners licensee had obtained pursuant to
12subsection (h-10) by the total number of gaming positions
13operated by the owners licensee. If this calculation results in
14a negative amount, then the owners licensee is not entitled to
15any reimbursement of fees previously paid. This reconciliation
16payment may be made in installments over a period of no more
17than 2 years, subject to Board approval. Any installment
18payments shall include an annual market interest rate as
19determined by the Board. These reconciliation payments shall be
20deposited into the Gaming Facilities Fee Revenue Fund.
21    (h-10) For owners licensees authorized under paragraphs
22(2) through (5) of subsection (e-5) of this Section, the
23application for such new owners licenses shall ask the
24applicants to stipulate in their applications the number of
25gaming positions each applicant would like to reserve, up to
261,600 gaming positions. Once the last winning applicant for

 

 

HB2498- 391 -LRB100 03891 AMC 13896 b

1each of these owners licenses has been selected by the Board,
2the Board shall publish the number of gaming positions reserved
3and unreserved by each winning applicant, shall accept requests
4for additional gaming positions from any winning applicants or
5owners licensee who initially reserved 1,600 gaming positions,
6and shall allocate expeditiously the unreserved gaming
7positions to such requesting winning applicants or owners
8licensees in a manner to maximize revenue to the State;
9provided, however, that no owners licensee (other than the
10Chicago Casino Development Authority) shall obtain more than
112,000 positions total. The Board may allocate any such unused
12gaming positions through a competitive bidding process
13pursuant to Section 7.5 of this Act.
14    In the event that not all of the unreserved gaming
15positions described in the first and second paragraphs of this
16subsection (h-10) were requested by owners licensees and
17applicants, then until there are no longer unreserved gaming
18positions, the Board periodically shall govern a process to
19allocate the unreserved gaming positions in a manner to
20maximize revenue to the State.
21    Unreserved gaming positions retained from and allocated to
22owners licensees by the Board pursuant to this subsection
23(h-10) shall not be allocated to electronic gaming licensees
24pursuant to subsection (e) of Section 7.7 of this Act.
25    (i) A licensed owner is authorized to apply to the Board
26for and, if approved therefor, to receive all licenses from the

 

 

HB2498- 392 -LRB100 03891 AMC 13896 b

1Board necessary for the operation of a riverboat or a casino,
2including a liquor license, a license to prepare and serve food
3for human consumption, and other necessary licenses. All use,
4occupation and excise taxes which apply to the sale of food and
5beverages in this State and all taxes imposed on the sale or
6use of tangible personal property apply to such sales aboard
7the riverboat or in the casino.
8    (j) The Board may issue or re-issue a license authorizing a
9riverboat to dock in a municipality or approve a relocation
10under Section 11.2 only if, prior to the issuance or
11re-issuance of the license or approval, the governing body of
12the municipality in which the riverboat will dock has by a
13majority vote approved the docking of riverboats in the
14municipality. The Board may issue or re-issue a license
15authorizing a riverboat to dock in areas of a county outside
16any municipality or approve a relocation under Section 11.2
17only if, prior to the issuance or re-issuance of the license or
18approval, the governing body of the county has by a majority
19vote approved of the docking of riverboats within such areas.
20    (k) An owners licensee may conduct land-based gambling
21operations upon approval by the Board.
22    (l) An owners licensee may conduct gaming at a temporary
23facility pending the construction of a permanent facility or
24the remodeling or relocation of an existing facility to
25accommodate gaming participants for up to 24 months after the
26temporary facility begins to conduct gaming. Upon request by an

 

 

HB2498- 393 -LRB100 03891 AMC 13896 b

1owners licensee and upon a showing of good cause by the owners
2licensee, the Board shall extend the period during which the
3licensee may conduct gaming at a temporary facility by up to 12
4months. The Board shall make rules concerning the conduct of
5gaming from temporary facilities.
6(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
 
7    (230 ILCS 10/7.3)
8    Sec. 7.3. State conduct of gambling operations.
9    (a) If, after reviewing each application for a re-issued
10license, the Board determines that the highest prospective
11total revenue to the State would be derived from State conduct
12of the gambling operation in lieu of re-issuing the license,
13the Board shall inform each applicant of its decision. The
14Board shall thereafter have the authority, without obtaining an
15owners license, to conduct casino or riverboat gambling
16operations as previously authorized by the terminated,
17expired, revoked, or nonrenewed license through a licensed
18manager selected pursuant to an open and competitive bidding
19process as set forth in Section 7.5 and as provided in Section
207.4.
21    (b) The Board may locate any casino or riverboat on which a
22gambling operation is conducted by the State in any home dock
23or other location authorized by Section 3(c) upon receipt of
24approval from a majority vote of the governing body of the
25municipality or county, as the case may be, in which the

 

 

HB2498- 394 -LRB100 03891 AMC 13896 b

1riverboat will dock.
2    (c) The Board shall have jurisdiction over and shall
3supervise all gambling operations conducted by the State
4provided for in this Act and the Chicago Casino Development
5Authority Act and shall have all powers necessary and proper to
6fully and effectively execute the provisions of this Act and
7the Chicago Casino Development Authority Act relating to
8gambling operations conducted by the State.
9    (d) The maximum number of owners licenses authorized under
10Section 7 7(e) shall be reduced by one for each instance in
11which the Board authorizes the State to conduct a casino or
12riverboat gambling operation under subsection (a) in lieu of
13re-issuing a license to an applicant under Section 7.1.
14(Source: P.A. 93-28, eff. 6-20-03.)
 
15    (230 ILCS 10/7.5)
16    Sec. 7.5. Competitive Bidding. When the Board determines
17that (i) it will re-issue an owners license pursuant to an open
18and competitive bidding process, as set forth in Section 7.1,
19(ii) or that it will issue a managers license pursuant to an
20open and competitive bidding process, as set forth in Section
217.4, (iii) it will issue an owners license pursuant to an open
22and competitive bidding process, as set forth in Section 7.11,
23or (iv) it will allocate unused gaming positions pursuant to an
24open and competitive bidding process, as set forth in
25subsection (h-10) of Section 7, the open and competitive

 

 

HB2498- 395 -LRB100 03891 AMC 13896 b

1bidding process shall adhere to the following procedures:
2    (1) The Board shall make applications for owners and
3managers licenses available to the public and allow a
4reasonable time for applicants to submit applications to the
5Board.
6    (2) During the filing period for owners or managers license
7applications, the Board may retain the services of an
8investment banking firm to assist the Board in conducting the
9open and competitive bidding process.
10    (3) After receiving all of the bid proposals, the Board
11shall open all of the proposals in a public forum and disclose
12the prospective owners or managers names, venture partners, if
13any, and, in the case of applicants for owners licenses, the
14locations of the proposed development sites.
15    (4) The Board shall summarize the terms of the proposals
16and may make this summary available to the public.
17    (5) The Board shall evaluate the proposals within a
18reasonable time and select no more than 3 final applicants to
19make presentations of their proposals to the Board.
20    (6) The final applicants shall make their presentations to
21the Board on the same day during an open session of the Board.
22    (7) As soon as practicable after the public presentations
23by the final applicants, the Board, in its discretion, may
24conduct further negotiations among the 3 final applicants.
25During such negotiations, each final applicant may increase its
26license bid or otherwise enhance its bid proposal. At the

 

 

HB2498- 396 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 397 -LRB100 03891 AMC 13896 b

1economy and is, at its core, a spectator sport. This
2distinction requires the General Assembly to utilize different
3methods to regulate and promote the horse racing industry
4throughout the State. The General Assembly finds that in order
5to promote live horse racing as a spectator sport in Illinois
6and the agricultural economy of this State, it is necessary to
7allow electronic gaming at Illinois race tracks as an ancillary
8use given the success of other states in increasing live racing
9purse accounts and improving the quality of horses
10participating in horse race meetings.
11    (b) The Illinois Gaming Board shall award one electronic
12gaming license to each person or entity having operating
13control of a race track that applies under Section 56 of the
14Illinois Horse Racing Act of 1975, subject to the application
15and eligibility requirements of this Section. Within 60 days
16after the effective date of this amendatory Act of the 100th
17General Assembly, a person or entity having operating control
18of a race track may submit an application for an electronic
19gaming license. The application shall be made on such forms as
20provided by the Board and shall contain such information as the
21Board prescribes, including, but not limited to, the identity
22of any race track at which electronic gaming will be conducted,
23detailed information regarding the ownership and management of
24the applicant, and detailed personal information regarding the
25applicant. The application shall specify the number of gaming
26positions the applicant intends to use and the place where the

 

 

HB2498- 398 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 399 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 400 -LRB100 03891 AMC 13896 b

1it reasonably expects to make a determination.
2    The electronic gaming licensee shall purchase up to the
3amount of electronic gaming positions authorized under this Act
4within 120 days after receiving its electronic gaming license.
5If an electronic gaming licensee is prepared to purchase the
6electronic gaming positions, but is temporarily prohibited
7from doing so by order of a court of competent jurisdiction or
8the Board, then the 120-day period is tolled until a resolution
9is reached.
10    An electronic gaming license shall authorize its holder to
11conduct electronic gaming at its race track at the following
12times:
13        (1) On days when it conducts live racing at the track
14    where its electronic gaming facility is located, from 8:00
15    a.m. until 3:00 a.m. on the following day.
16        (2) On days when it is scheduled to conduct simulcast
17    wagering on races run in the United States, from 8:00 a.m.
18    until 3:00 a.m. on the following day.
19    Additionally, the Board may extend these days of operation
20and hours upon request by an organization licensee as the Board
21sees fit.
22    A license to conduct electronic gaming and any renewal of
23an electronic gaming license shall authorize electronic gaming
24for a period of 4 years. The fee for the issuance or renewal of
25an electronic gaming license shall be $100,000.
26    (d) To be eligible to conduct electronic gaming, a person

 

 

HB2498- 401 -LRB100 03891 AMC 13896 b

1or entity having operating control of a race track must (i)
2obtain an electronic gaming license, (ii) hold an organization
3license under the Illinois Horse Racing Act of 1975, (iii) hold
4an inter-track wagering license, (iv) pay an initial fee of
5$30,000 per gaming position from electronic gaming licensees
6where electronic gaming is conducted in Cook County and $17,500
7for electronic gaming licensees where electronic gaming is
8located outside of Cook County before beginning to conduct
9electronic gaming plus make the reconciliation payment
10required under subsection (i), (v) conduct at least 240 live
11races at each track per year or for a licensee that is only
12authorized 350 gaming positions pursuant to subsection (d) of
13Section 7.7 of this Act, have a fully operational facility
14running at least 96 live races over a period of at least 15
15days per year until such time as the total number of gaming
16positions is increased to 900, (vi) meet the requirements of
17subsection (a) of Section 56 of the Illinois Horse Racing Act
18of 1975, (vii) for organization licensees conducting
19standardbred race meetings that had an open backstretch in
202009, keep backstretch barns and dormitories open and
21operational year-round unless a lesser schedule is mutually
22agreed to by the organization licensee and the horsemen's
23association racing at that organization licensee's race
24meeting, (viii) for organization licensees conducting
25thoroughbred race meetings, the organization licensee must
26maintain accident medical expense liability insurance coverage

 

 

HB2498- 402 -LRB100 03891 AMC 13896 b

1of $1,000,000 for jockeys, and (ix) meet all other requirements
2of this Act that apply to owners licensees. Only those persons
3or entities (or its successors or assigns) that had operating
4control of a race track and held an inter-track wagering
5license authorized by the Illinois Racing Board in 2009 are
6eligible.
7    An electronic gaming licensee may enter into a joint
8venture with a licensed owner to own, manage, conduct, or
9otherwise operate the electronic gaming licensee's electronic
10gaming facilities, unless the electronic gaming licensee has a
11parent company or other affiliated company that is, directly or
12indirectly, wholly owned by a parent company that is also
13licensed to conduct electronic gaming, casino gaming, or their
14equivalent in another state.
15    All payments by licensees under this subsection (c) shall
16be deposited into the Gaming Facilities Fee Revenue Fund.
17    (e) A person or entity is ineligible to receive an
18electronic gaming license if:
19        (1) the person or entity has been convicted of a felony
20    under the laws of this State, any other state, or the
21    United States, including a conviction under the Racketeer
22    Influenced and Corrupt Organizations Act;
23        (2) the person or entity has been convicted of any
24    violation of Article 28 of the Criminal Code of 2012, or
25    substantially similar laws of any other jurisdiction;
26        (3) the person or entity has submitted an application

 

 

HB2498- 403 -LRB100 03891 AMC 13896 b

1    for a license under this Act that contains false
2    information;
3        (4) the person is a member of the Board;
4        (5) a person defined in (1), (2), (3), or (4) of this
5    subsection (e) is an officer, director, or managerial
6    employee of the entity;
7        (6) the person or entity employs a person defined in
8    (1), (2), (3), or (4) of this subsection (e) who
9    participates in the management or operation of gambling
10    operations authorized under this Act; or
11        (7) a license of the person or entity issued under this
12    Act or a license to own or operate gambling facilities in
13    any other jurisdiction has been revoked.
14    (f) The Board may approve electronic gaming positions
15statewide as provided in this Section. The authority to operate
16electronic gaming positions under this Section shall be
17allocated as follows: up to 1,200 gaming positions for any
18electronic gaming licensee in Cook County whose electronic
19gaming license originates with an organization licensee that
20conducted live racing in calendar year 2010; up to 900 gaming
21positions for any electronic gaming licensee outside of Cook
22County whose electronic gaming license originates with an
23organization licensee that conducted live racing in calendar
24year 2010; and up to 350 gaming positions for any electronic
25gaming licensee whose electronic gaming license originates
26with an organization licensee that did not conduct live racing

 

 

HB2498- 404 -LRB100 03891 AMC 13896 b

1in calendar year 2010, which shall increase to 900 gaming
2positions in the calendar year following the year in which the
3electronic gaming licensee conducts 96 live races.
4    (g) Each applicant for an electronic gaming license shall
5specify in its application for licensure the number of gaming
6positions it will operate, up to the applicable limitation set
7forth in subsection (f) of this Section. Any unreserved gaming
8positions that are not specified shall be forfeited and
9retained by the Board. For the purposes of this subsection (g),
10an electronic gaming licensee that did not conduct live racing
11in 2010 may reserve up to 900 positions and shall not be
12penalized under this Section for not operating those positions
13until it meets the requirements of subsection (f) of this
14Section, but such licensee shall not request unreserved gaming
15positions under this subsection (g) until its 900 positions are
16all operational.
17    Thereafter, the Board shall publish the number of
18unreserved electronic gaming positions and shall accept
19requests for additional positions from any electronic gaming
20licensee that initially reserved all of the positions that were
21offered. The Board shall allocate expeditiously the unreserved
22electronic gaming positions to requesting electronic gaming
23licensees in a manner that maximizes revenue to the State. The
24Board may allocate any such unused electronic gaming positions
25pursuant to an open and competitive bidding process, as
26provided under Section 7.5 of this Act. This process shall

 

 

HB2498- 405 -LRB100 03891 AMC 13896 b

1continue until all unreserved gaming positions have been
2purchased. All positions obtained pursuant to this process and
3all positions the electronic gaming licensee specified it would
4operate in its application must be in operation within 18
5months after they were obtained or the electronic gaming
6licensee forfeits the right to operate those positions, but is
7not entitled to a refund of any fees paid. The Board may, after
8holding a public hearing, grant extensions so long as the
9electronic gaming licensee is working in good faith to make the
10positions operational. The extension may be for a period of 6
11months. If, after the period of the extension, the electronic
12gaming licensee has not made the positions operational, then
13another public hearing must be held by the Board before it may
14grant another extension.
15    Unreserved gaming positions retained from and allocated to
16electronic gaming licensees by the Board pursuant to this
17subsection (g) shall not be allocated to owners licensees
18pursuant to subsection (h-10) of Section 7 of this Act.
19    For the purpose of this subsection (g), the unreserved
20gaming positions for each electronic gaming licensee shall be
21the applicable limitation set forth in subsection (f) of this
22Section, less the number of reserved gaming positions by such
23electronic gaming licensee, and the total unreserved gaming
24positions shall be the aggregate of the unreserved gaming
25positions for all electronic gaming licensees.
26    (h) Subject to the approval of the Illinois Gaming Board,

 

 

HB2498- 406 -LRB100 03891 AMC 13896 b

1an electronic gaming licensee may make modification or
2additions to any existing buildings and structures to comply
3with the requirements of this Act. The Illinois Gaming Board
4shall make its decision after consulting with the Illinois
5Racing Board. In no case, however, shall the Illinois Gaming
6Board approve any modification or addition that alters the
7grounds of the organizational licensee such that the act of
8live racing is an ancillary activity to electronic gaming.
9Electronic gaming may take place in existing structures where
10inter-track wagering is conducted at the race track or a
11facility within 300 yards of the race track in accordance with
12the provisions of this Act and the Illinois Horse Racing Act of
131975.
14    (i) An electronic gaming licensee may conduct electronic
15gaming at a temporary facility pending the construction of a
16permanent facility or the remodeling or relocation of an
17existing facility to accommodate electronic gaming
18participants for up to 24 months after the temporary facility
19begins to conduct electronic gaming. Upon request by an
20electronic gaming licensee and upon a showing of good cause by
21the electronic gaming licensee, the Board shall extend the
22period during which the licensee may conduct electronic gaming
23at a temporary facility by up to 12 months. The Board shall
24make rules concerning the conduct of electronic gaming from
25temporary facilities.
26    Electronic gaming may take place in existing structures

 

 

HB2498- 407 -LRB100 03891 AMC 13896 b

1where inter-track wagering is conducted at the race track or a
2facility within 300 yards of the race track in accordance with
3the provisions of this Act and the Illinois Horse Racing Act of
41975. Any electronic gaming conducted at a permanent facility
5within 300 yards of the race track in accordance with this Act
6and the Illinois Horse Racing Act of 1975 shall have an
7all-weather egress connecting the electronic gaming facility
8and the race track facility or, on days and hours of live
9racing, a complimentary shuttle service between the permanent
10electronic gaming facility and the race track facility and
11shall not charge electronic gaming participants an additional
12admission fee to the race track facility.
13    (j) The Illinois Gaming Board must adopt emergency rules in
14accordance with Section 5-45 of the Illinois Administrative
15Procedure Act as necessary to ensure compliance with the
16provisions of this amendatory Act of the 100th General Assembly
17concerning electronic gaming. The adoption of emergency rules
18authorized by this subsection (j) shall be deemed to be
19necessary for the public interest, safety, and welfare.
20    (k) Each electronic gaming licensee who obtains electronic
21gaming positions must make a reconciliation payment 3 years
22after the date the electronic gaming licensee begins operating
23the positions in an amount equal to 75% of the difference
24between its adjusted gross receipts from electronic gaming and
25amounts paid to its purse accounts pursuant to item (1) of
26subsection (b) of Section 56 of the Illinois Horse Racing Act

 

 

HB2498- 408 -LRB100 03891 AMC 13896 b

1of 1975 for the 12-month period for which such difference was
2the largest, minus an amount equal to the initial per position
3fee paid by the electronic gaming licensee. If this calculation
4results in a negative amount, then the electronic gaming
5licensee is not entitled to any reimbursement of fees
6previously paid. This reconciliation payment may be made in
7installments over a period of no more than 2 years, subject to
8Board approval. Any installment payments shall include an
9annual market interest rate as determined by the Board.
10    All payments by licensees under this subsection (i) shall
11be deposited into the Gaming Facilities Fee Revenue Fund.
12    (l) As soon as practical after a request is made by the
13Illinois Gaming Board, to minimize duplicate submissions by the
14applicant, the Illinois Racing Board must provide information
15on an applicant for an electronic gaming license to the
16Illinois Gaming Board.
17    (m) Subject to the approval of the Illinois Gaming Board,
18an organization licensee that has received an electronic gaming
19license under this Act and has operating control of a race
20track facility located in Cook County may relocate its race
21track facility as follows:
22        (1) the organization licensee may relocate within a
23    3-mile radius of its existing race track facility so long
24    as the organization licensee remains in Cook County and
25    submits its plan to construct a new structure to conduct
26    electronic gaming operations; and

 

 

HB2498- 409 -LRB100 03891 AMC 13896 b

1        (2) the organization licensee may not relocate within a
2    5-mile radius of a riverboat if the owners license was
3    issued prior to December 31, 2011.
4The relocation must include the race track facility, including
5the race track operations used to conduct live racing and the
6electronic gaming facility in its entirety. For the purposes of
7this subsection (m), "race track facility" means all operations
8conducted on the race track property for which it was awarded a
9license for pari-mutuel wagering and live racing in the year
102010, except for the real estate itself. The Illinois Gaming
11Board shall make its decision after consulting with the
12Illinois Racing Board, and any relocation application shall be
13subject to all of the provisions of this Act and the Illinois
14Horse Racing Act of 1975.
 
15    (230 ILCS 10/7.8 new)
16    Sec. 7.8. Home rule. The regulation and licensing of
17electronic gaming and electronic gaming licensees are
18exclusive powers and functions of the State. A home rule unit
19may not regulate or license electronic gaming or electronic
20gaming licensees. This Section is a denial and limitation of
21home rule powers and functions under subsection (h) of Section
226 of Article VII of the Illinois Constitution.
 
23    (230 ILCS 10/7.9 new)
24    Sec. 7.9. Casino operator license.

 

 

HB2498- 410 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 411 -LRB100 03891 AMC 13896 b

1    City of Chicago;
2        (5) a person defined in (1), (2), (3), or (4) is an
3    officer, director, or managerial employee of the entity;
4        (6) the entity employs a person defined in (1), (2),
5    (3), or (4) who participates in the management or operation
6    of gambling operations authorized under this Act; or
7        (7) a license of the person or entity issued under this
8    Act, or a license to own or operate gambling facilities in
9    any other jurisdiction, has been revoked.
10    (c) In determining whether to grant a casino operator
11license, the Board shall consider:
12        (1) the character, reputation, experience and
13    financial integrity of the applicants and of any other or
14    separate person that either:
15            (A) controls, directly or indirectly, such
16        applicant, or
17            (B) is controlled, directly or indirectly, by such
18        applicant or by a person which controls, directly or
19        indirectly, such applicant;
20        (2) the facilities or proposed facilities for the
21    conduct of gambling;
22        (3) the preference of the municipality in which the
23    licensee will operate;
24        (4) the extent to which the ownership of the applicant
25    reflects the diversity of the State by including minority
26    persons and females and the good faith affirmative action

 

 

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1    plan of each applicant to recruit, train, and upgrade
2    minority persons and females in all employment
3    classifications;
4        (5) the financial ability of the applicant to purchase
5    and maintain adequate liability and casualty insurance;
6        (6) whether the applicant has adequate capitalization
7    to provide and maintain, for the duration of a license, a
8    casino; and
9        (7) the extent to which the applicant exceeds or meets
10    other standards for the issuance of a casino operator
11    license that the Board may adopt by rule.
12    (d) Each applicant shall submit with his or her
13application, on forms prescribed by the Board, 2 sets of his or
14her fingerprints. The Board shall charge each applicant a fee
15set by the Department of State Police to defray the costs
16associated with the search and classification of fingerprints
17obtained by the Board with respect to the applicant's
18application. This fee shall be paid into the State Police
19Services Fund.
20    (e) A person who knowingly makes a false statement on an
21application is guilty of a Class A misdemeanor.
22    (f) The Board shall charge each applicant a non-refundable
23fee of $50,000 to defray the costs associated with the
24background investigation conducted by the Board. This fee shall
25be exclusive of any other fee or fees charged in connection
26with an application for and, if applicable, the issuance of, a

 

 

HB2498- 413 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 414 -LRB100 03891 AMC 13896 b

1casino license and must cover all operations at the casino
2facility that are conducted by lessees or tenants or under
3management agreements.
4    (h) The casino operator license shall be for a term of 4
5years, shall be renewable by the Board, and shall contain such
6terms and provisions as the Board deems necessary to protect or
7enhance the credibility and integrity of State gambling
8operations, achieve the highest prospective total revenue to
9the State, and otherwise serve the interests of the citizens of
10Illinois. The Board may suspend, restrict, or revoke the
11license:
12        (1) for violation of any provision of this Act;
13        (2) for violation of any rules of the Board;
14        (3) for any cause which, if known to the Board, would
15    have disqualified the applicant from receiving the
16    license; or
17        (4) for any other just cause.
 
18    (230 ILCS 10/7.10 new)
19    Sec. 7.10. Diversity program.
20    (a) Each owners licensee, electronic gaming licensee,
21casino operator licensee, and suppliers licensee shall
22establish and maintain a diversity program to ensure
23non-discrimination in the award and administration of
24contracts. The programs shall establish goals of awarding not
25less than 20% of the annual dollar value of all contracts,

 

 

HB2498- 415 -LRB100 03891 AMC 13896 b

1purchase orders, or other agreements to minority-owned
2businesses and 5% of the annual dollar value of all contracts
3to female-owned businesses.
4    (b) Each owners licensee, electronic gaming licensee,
5casino operator licensee, and suppliers licensee shall
6establish and maintain a diversity program designed to promote
7equal opportunity for employment. The program shall establish
8hiring goals as the Board and each licensee determines
9appropriate. The Board shall monitor the progress of the gaming
10licensee's progress with respect to the program's goals.
11    (c) No later than May 31 of each year, each licensee shall
12report to the Board the number of respective employees and the
13number of their respective employees who have designated
14themselves as members of a minority group and gender. In
15addition, all licensees shall submit a report with respect to
16the minority-owned and female-owned businesses program created
17in this Section to the Board.
 
18    (230 ILCS 10/7.11 new)
19    Sec. 7.11. Annual report on diversity.
20    (a) Each licensee that receives a license under Sections 7,
217.1, and 7.7 shall execute and file a report with the Board no
22later than December 31 of each year that shall contain, but not
23be limited to, the following information:
24        (i) a good faith affirmative action plan to recruit,
25    train, and upgrade minority persons, females, and persons

 

 

HB2498- 416 -LRB100 03891 AMC 13896 b

1    with a disability in all employment classifications;
2        (ii) the total dollar amount of contracts that were
3    awarded to businesses owned by minority persons, females,
4    and persons with a disability;
5        (iii) the total number of businesses owned by minority
6    persons, females, and persons with a disability that were
7    utilized by the licensee;
8        (iv) the utilization of businesses owned by minority
9    persons, females, and persons with disabilities during the
10    preceding year; and
11        (v) the outreach efforts used by the licensee to
12    attract investors and businesses consisting of minority
13    persons, females, and persons with a disability.
14    (b) The Board shall forward a copy of each licensee's
15annual reports to the General Assembly no later than February 1
16of each year.
 
17    (230 ILCS 10/7.12 new)
18    Sec. 7.12. Issuance of new owners licenses.
19    (a) Except for the owners license issued to the Chicago
20Casino Development Authority, owners licenses newly authorized
21pursuant to this amendatory Act of the 100th General Assembly
22may be issued by the Board to a qualified applicant pursuant to
23an open and competitive bidding process, as set forth in
24Section 7.5, and subject to the maximum number of authorized
25licenses set forth in subsection (e-5) of Section 7 of this

 

 

HB2498- 417 -LRB100 03891 AMC 13896 b

1Act.
2    (b) To be a qualified applicant, a person or entity may not
3be ineligible to receive an owners license under subsection (a)
4of Section 7 of this Act and must submit an application for an
5owners license that complies with Section 6 of this Act.
6    (c) In determining whether to grant an owners license to an
7applicant, the Board shall consider all of the factors set
8forth in subsections (b) and (e-10) of Section 7 of this Act,
9as well as the amount of the applicant's license bid. The Board
10may grant the owners license to an applicant that has not
11submitted the highest license bid, but if it does not select
12the highest bidder, the Board shall issue a written decision
13explaining why another applicant was selected and identifying
14the factors set forth in subsections (b) and (e-10) of Section
157 of this Act that favored the winning bidder.
 
16    (230 ILCS 10/7.13 new)
17    Sec. 7.13. Environmental standards. All permanent
18casinos, riverboats, and electronic gaming facilities shall
19consist of buildings that are certified as meeting the U.S.
20Green Building Council's Leadership in Energy and
21Environmental Design standards. The provisions of this Section
22apply to a holder of an owners license, casino operator
23license, or electronic gaming license that (i) begins
24operations on or after January 1, 2017 or (ii) relocates its
25facilities on or after the effective date of this amendatory

 

 

HB2498- 418 -LRB100 03891 AMC 13896 b

1Act of the 100th General Assembly.
 
2    (230 ILCS 10/8)  (from Ch. 120, par. 2408)
3    Sec. 8. Suppliers licenses.
4    (a) The Board may issue a suppliers license to such
5persons, firms or corporations which apply therefor upon the
6payment of a non-refundable application fee set by the Board,
7upon a determination by the Board that the applicant is
8eligible for a suppliers license and upon payment of a $5,000
9annual license fee.
10    (b) The holder of a suppliers license is authorized to sell
11or lease, and to contract to sell or lease, gambling equipment
12and supplies to any licensee involved in the ownership or
13management of gambling operations.
14    (c) Gambling supplies and equipment may not be distributed
15unless supplies and equipment conform to standards adopted by
16rules of the Board.
17    (d) A person, firm or corporation is ineligible to receive
18a suppliers license if:
19        (1) the person has been convicted of a felony under the
20    laws of this State, any other state, or the United States;
21        (2) the person has been convicted of any violation of
22    Article 28 of the Criminal Code of 1961 or the Criminal
23    Code of 2012, or substantially similar laws of any other
24    jurisdiction;
25        (3) the person has submitted an application for a

 

 

HB2498- 419 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 420 -LRB100 03891 AMC 13896 b

1all its equipment, devices, and supplies, except gaming chips
2without a value impressed, engraved, or imprinted on it, for
3gambling operations. The Board may waive this requirement for
4any specific product or products if it determines that the
5requirement is not necessary to protect the integrity of the
6game. Items purchased from a licensed supplier may continue to
7be used even though the supplier subsequently changes its name,
8distinctive logo, or other mark or design element; undergoes a
9change in ownership; or ceases to be licensed as a supplier for
10any reason. Any supplier's equipment, devices or supplies which
11are used by any person in an unauthorized gambling operation
12shall be forfeited to the State. A holder of an owners license
13or an electronic gaming license A licensed owner may own its
14own equipment, devices and supplies. Each holder of an owners
15license or an electronic gaming license under the Act shall
16file an annual report listing its inventories of gambling
17equipment, devices and supplies.
18    (f) Any person who knowingly makes a false statement on an
19application is guilty of a Class A misdemeanor.
20    (g) Any gambling equipment, devices and supplies provided
21by any licensed supplier may either be repaired on the
22riverboat, in the casino, or at the electronic gaming facility
23or removed from the riverboat, casino, or electronic gaming
24facility to a an on-shore facility owned by the holder of an
25owners license or electronic gaming license for repair.
26(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;

 

 

HB2498- 421 -LRB100 03891 AMC 13896 b

198-756, eff. 7-16-14.)
 
2    (230 ILCS 10/9)  (from Ch. 120, par. 2409)
3    Sec. 9. Occupational licenses.
4    (a) The Board may issue an occupational license to an
5applicant upon the payment of a non-refundable fee set by the
6Board, upon a determination by the Board that the applicant is
7eligible for an occupational license and upon payment of an
8annual license fee in an amount to be established. To be
9eligible for an occupational license, an applicant must:
10        (1) be at least 21 years of age if the applicant will
11    perform any function involved in gaming by patrons. Any
12    applicant seeking an occupational license for a non-gaming
13    function shall be at least 18 years of age;
14        (2) not have been convicted of a felony offense, a
15    violation of Article 28 of the Criminal Code of 1961 or the
16    Criminal Code of 2012, or a similar statute of any other
17    jurisdiction;
18        (2.5) not have been convicted of a crime, other than a
19    crime described in item (2) of this subsection (a),
20    involving dishonesty or moral turpitude, except that the
21    Board may, in its discretion, issue an occupational license
22    to a person who has been convicted of a crime described in
23    this item (2.5) more than 10 years prior to his or her
24    application and has not subsequently been convicted of any
25    other crime;

 

 

HB2498- 422 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 423 -LRB100 03891 AMC 13896 b

1of State Police to defray the costs associated with the search
2and classification of fingerprints obtained by the Board with
3respect to the applicant's application. These fees shall be
4paid into the State Police Services Fund.
5    (d) The Board may in its discretion refuse an occupational
6license to any person: (1) who is unqualified to perform the
7duties required of such applicant; (2) who fails to disclose or
8states falsely any information called for in the application;
9(3) who has been found guilty of a violation of this Act or the
10Chicago Casino Development Authority Act or whose prior
11gambling related license or application therefor has been
12suspended, restricted, revoked or denied for just cause in any
13other state; or (4) for any other just cause.
14    (e) The Board may suspend, revoke or restrict any
15occupational licensee: (1) for violation of any provision of
16this Act; (2) for violation of any of the rules and regulations
17of the Board; (3) for any cause which, if known to the Board,
18would have disqualified the applicant from receiving such
19license; or (4) for default in the payment of any obligation or
20debt due to the State of Illinois; or (5) for any other just
21cause.
22    (f) A person who knowingly makes a false statement on an
23application is guilty of a Class A misdemeanor.
24    (g) Any license issued pursuant to this Section shall be
25valid for a period of one year from the date of issuance.
26    (h) Nothing in this Act shall be interpreted to prohibit a

 

 

HB2498- 424 -LRB100 03891 AMC 13896 b

1licensed owner or electronic gaming licensee from entering into
2an agreement with a public community college or a school
3approved under the Private Business and Vocational Schools Act
4of 2012 for the training of any occupational licensee. Any
5training offered by such a school shall be in accordance with a
6written agreement between the licensed owner or electronic
7gaming licensee and the school.
8    (i) Any training provided for occupational licensees may be
9conducted either at the site of the gambling facility on the
10riverboat or at a school with which a licensed owner or
11electronic gaming licensee has entered into an agreement
12pursuant to subsection (h).
13(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;
1497-1150, eff. 1-25-13.)
 
15    (230 ILCS 10/11)  (from Ch. 120, par. 2411)
16    Sec. 11. Conduct of gambling. Gambling may be conducted by
17licensed owners or licensed managers on behalf of the State
18aboard riverboats. Gambling may be conducted by electronic
19gaming licensees at electronic gaming facilities. Gambling may
20be conducted by a casino operator licensee at a casino.
21Gambling authorized under this Section is , subject to the
22following standards:
23        (1) A licensee may conduct riverboat gambling
24    authorized under this Act regardless of whether it conducts
25    excursion cruises. A licensee may permit the continuous

 

 

HB2498- 425 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 426 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 427 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 428 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 429 -LRB100 03891 AMC 13896 b

1agreements. Notwithstanding any applicable statutory provision
2to the contrary, a licensed owner, licensed or manager,
3licensed casino operator, or electronic gaming licensee who
4extends credit to a riverboat gambling patron or an electronic
5gaming patron pursuant to Section 11 (a) (12) of this Act is
6expressly authorized to institute a cause of action to collect
7any amounts due and owing under the extension of credit, as
8well as the licensed owner's, licensed or manager's, licensed
9casino operator's, or electronic gaming licensee's costs,
10expenses and reasonable attorney's fees incurred in
11collection.
12(Source: P.A. 93-28, eff. 6-20-03.)
 
13    (230 ILCS 10/12)  (from Ch. 120, par. 2412)
14    Sec. 12. Admission tax; fees.
15    (a) A tax is hereby imposed upon admissions to riverboat
16and casino gambling facilities riverboats operated by licensed
17owners authorized pursuant to this Act and the Chicago Casino
18Development Authority Act. Until July 1, 2002, the rate is $2
19per person admitted. From July 1, 2002 until July 1, 2003, the
20rate is $3 per person admitted. From July 1, 2003 until August
2123, 2005 (the effective date of Public Act 94-673), for a
22licensee that admitted 1,000,000 persons or fewer in the
23previous calendar year, the rate is $3 per person admitted; for
24a licensee that admitted more than 1,000,000 but no more than
252,300,000 persons in the previous calendar year, the rate is $4

 

 

HB2498- 430 -LRB100 03891 AMC 13896 b

1per person admitted; and for a licensee that admitted more than
22,300,000 persons in the previous calendar year, the rate is $5
3per person admitted. Beginning on August 23, 2005 (the
4effective date of Public Act 94-673), for a licensee that
5admitted 1,000,000 persons or fewer in calendar year 2004, the
6rate is $2 per person admitted, and for all other licensees,
7including licensees that were not conducting gambling
8operations in 2004, the rate is $3 per person admitted. This
9admission tax is imposed upon the licensed owner conducting
10gambling.
11        (1) The admission tax shall be paid for each admission,
12    except that a person who exits a riverboat gambling
13    facility and reenters that riverboat gambling facility
14    within the same gaming day shall be subject only to the
15    initial admission tax.
16        (2) (Blank).
17        (3) The riverboat licensee may issue tax-free passes to
18    actual and necessary officials and employees of the
19    licensee or other persons actually working on the
20    riverboat.
21        (4) The number and issuance of tax-free passes is
22    subject to the rules of the Board, and a list of all
23    persons to whom the tax-free passes are issued shall be
24    filed with the Board.
25    (a-5) A fee is hereby imposed upon admissions operated by
26licensed managers on behalf of the State pursuant to Section

 

 

HB2498- 431 -LRB100 03891 AMC 13896 b

17.3 at the rates provided in this subsection (a-5). For a
2licensee that admitted 1,000,000 persons or fewer in the
3previous calendar year, the rate is $3 per person admitted; for
4a licensee that admitted more than 1,000,000 but no more than
52,300,000 persons in the previous calendar year, the rate is $4
6per person admitted; and for a licensee that admitted more than
72,300,000 persons in the previous calendar year, the rate is $5
8per person admitted.
9        (1) The admission fee shall be paid for each admission.
10        (2) (Blank).
11        (3) The licensed manager may issue fee-free passes to
12    actual and necessary officials and employees of the manager
13    or other persons actually working on the riverboat.
14        (4) The number and issuance of fee-free passes is
15    subject to the rules of the Board, and a list of all
16    persons to whom the fee-free passes are issued shall be
17    filed with the Board.
18    (b) Except as provided in subsection (b-5), from From the
19tax imposed under subsection (a) and the fee imposed under
20subsection (a-5), a municipality shall receive from the State
21$1 for each person embarking on a riverboat docked within the
22municipality or entering a casino located within the
23municipality, and a county shall receive $1 for each person
24entering a casino or embarking on a riverboat docked within the
25county but outside the boundaries of any municipality. The
26municipality's or county's share shall be collected by the

 

 

HB2498- 432 -LRB100 03891 AMC 13896 b

1Board on behalf of the State and remitted quarterly by the
2State, subject to appropriation, to the treasurer of the unit
3of local government for deposit in the general fund.
4    (b-5) From the tax imposed under subsection (a) and the fee
5imposed under subsection (a-5), $1 for each person embarking on
6a riverboat designated in paragraph (4) of subsection (e-5) of
7Section 7 shall be divided equally and remitted monthly,
8subject to appropriation, to the City of Rockford and Winnebago
9County.
10    The municipality's or county's share shall be collected by
11the Board on behalf of the State and remitted quarterly by the
12State, subject to appropriation, to the treasurer of the unit
13of local government for deposit in the general fund.
14    (c) The licensed owner shall pay the entire admission tax
15to the Board and the licensed manager or the casino operator
16licensee shall pay the entire admission fee to the Board. Such
17payments shall be made daily. Accompanying each payment shall
18be a return on forms provided by the Board which shall include
19other information regarding admissions as the Board may
20require. Failure to submit either the payment or the return
21within the specified time may result in suspension or
22revocation of the owners or managers license.
23    (c-5) A tax is imposed on admissions to electronic gaming
24facilities at the rate of $3 per person admitted by an
25electronic gaming licensee. The tax is imposed upon the
26electronic gaming licensee.

 

 

HB2498- 433 -LRB100 03891 AMC 13896 b

1        (1) The admission tax shall be paid for each admission,
2    except that a person who exits an electronic gaming
3    facility and reenters that electronic gaming facility
4    within the same gaming day, as the term "gaming day" is
5    defined by the Board by rule, shall be subject only to the
6    initial admission tax. The Board shall establish, by rule,
7    a procedure to determine whether a person admitted to an
8    electronic gaming facility has paid the admission tax.
9        (2) An electronic gaming licensee may issue tax-free
10    passes to actual and necessary officials and employees of
11    the licensee and other persons associated with electronic
12    gaming operations.
13        (3) The number and issuance of tax-free passes is
14    subject to the rules of the Board, and a list of all
15    persons to whom the tax-free passes are issued shall be
16    filed with the Board.
17        (4) The electronic gaming licensee shall pay the entire
18    admission tax to the Board.
19    Such payments shall be made daily. Accompanying each
20payment shall be a return on forms provided by the Board, which
21shall include other information regarding admission as the
22Board may require. Failure to submit either the payment or the
23return within the specified time may result in suspension or
24revocation of the electronic gaming license.
25    From the tax imposed under this subsection (c-5), a
26municipality other than the Village of Stickney or the City of

 

 

HB2498- 434 -LRB100 03891 AMC 13896 b

1Collinsville in which an electronic gaming facility is located,
2or if the electronic gaming facility is not located within a
3municipality, then the county in which the electronic gaming
4facility is located, except as otherwise provided in this
5Section, shall receive, subject to appropriation, $1 for each
6person who enters the electronic gaming facility. For each
7admission to the electronic gaming facility in excess of
81,500,000 in a year, from the tax imposed under this subsection
9(c-5), the county in which the electronic gaming facility is
10located shall receive, subject to appropriation, $0.30, which
11shall be in addition to any other moneys paid to the county
12under this Section.
13    From the tax imposed under this subsection (c-5) on an
14electronic gaming facility located in the Village of Stickney,
15$1 for each person who enters the electronic gaming facility
16shall be distributed as follows, subject to appropriation:
17$0.24 to the Village of Stickney, $0.49 to the Town of Cicero,
18$0.05 to the City of Berwyn, and $0.17 to the Stickney Public
19Health District, and $0.05 to the City of Bridgeview.
20    From the tax imposed under this subsection (c-5) on an
21electronic gaming facility located in the City of Collinsville,
22$1 for each person who enters the electronic gaming facility
23shall be distributed as follows, subject to appropriation:
24$0.45 to the City of Alton, $0.45 to the City of East St.
25Louis, and $0.10 to the City of Collinsville.
26    From the tax imposed under this subsection (c-5) on an

 

 

HB2498- 435 -LRB100 03891 AMC 13896 b

1electronic gaming facility that is located in an unincorporated
2area of Cook County and has been awarded standardbred racing
3dates during 2011 by the Illinois Racing Board, $1 for each
4person who enters the electronic gaming facility shall be
5divided equally and distributed, subject to appropriation, to
6the Village of Melrose Park, the Village of Maywood, and Cook
7County.
8    After payments required under this subsection (c-5) have
9been made, all remaining amounts shall be deposited into the
10Education Assistance Fund.
11    (d) The Board shall administer and collect the admission
12tax imposed by this Section, to the extent practicable, in a
13manner consistent with the provisions of Sections 4, 5, 5a, 5b,
145c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
15Retailers' Occupation Tax Act and Section 3-7 of the Uniform
16Penalty and Interest Act.
17(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
 
18    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
19    Sec. 13. Wagering tax; rate; distribution.
20    (a) Until January 1, 1998, a tax is imposed on the adjusted
21gross receipts received from gambling games authorized under
22this Act at the rate of 20%.
23    (a-1) From January 1, 1998 until July 1, 2002, a privilege
24tax is imposed on persons engaged in the business of conducting
25riverboat gambling operations, based on the adjusted gross

 

 

HB2498- 436 -LRB100 03891 AMC 13896 b

1receipts received by a licensed owner from gambling games
2authorized under this Act at the following rates:
3        15% of annual adjusted gross receipts up to and
4    including $25,000,000;
5        20% of annual adjusted gross receipts in excess of
6    $25,000,000 but not exceeding $50,000,000;
7        25% of annual adjusted gross receipts in excess of
8    $50,000,000 but not exceeding $75,000,000;
9        30% of annual adjusted gross receipts in excess of
10    $75,000,000 but not exceeding $100,000,000;
11        35% of annual adjusted gross receipts in excess of
12    $100,000,000.
13    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
14is imposed on persons engaged in the business of conducting
15riverboat gambling operations, other than licensed managers
16conducting riverboat gambling operations on behalf of the
17State, based on the adjusted gross receipts received by a
18licensed owner from gambling games authorized under this Act at
19the following rates:
20        15% of annual adjusted gross receipts up to and
21    including $25,000,000;
22        22.5% of annual adjusted gross receipts in excess of
23    $25,000,000 but not exceeding $50,000,000;
24        27.5% of annual adjusted gross receipts in excess of
25    $50,000,000 but not exceeding $75,000,000;
26        32.5% of annual adjusted gross receipts in excess of

 

 

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1    $75,000,000 but not exceeding $100,000,000;
2        37.5% of annual adjusted gross receipts in excess of
3    $100,000,000 but not exceeding $150,000,000;
4        45% of annual adjusted gross receipts in excess of
5    $150,000,000 but not exceeding $200,000,000;
6        50% of annual adjusted gross receipts in excess of
7    $200,000,000.
8    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
9persons engaged in the business of conducting riverboat
10gambling operations, other than licensed managers conducting
11riverboat gambling operations on behalf of the State, based on
12the adjusted gross receipts received by a licensed owner from
13gambling games authorized under this Act at the following
14rates:
15        15% of annual adjusted gross receipts up to and
16    including $25,000,000;
17        27.5% of annual adjusted gross receipts in excess of
18    $25,000,000 but not exceeding $37,500,000;
19        32.5% of annual adjusted gross receipts in excess of
20    $37,500,000 but not exceeding $50,000,000;
21        37.5% of annual adjusted gross receipts in excess of
22    $50,000,000 but not exceeding $75,000,000;
23        45% of annual adjusted gross receipts in excess of
24    $75,000,000 but not exceeding $100,000,000;
25        50% of annual adjusted gross receipts in excess of
26    $100,000,000 but not exceeding $250,000,000;

 

 

HB2498- 438 -LRB100 03891 AMC 13896 b

1        70% of annual adjusted gross receipts in excess of
2    $250,000,000.
3    An amount equal to the amount of wagering taxes collected
4under this subsection (a-3) that are in addition to the amount
5of wagering taxes that would have been collected if the
6wagering tax rates under subsection (a-2) were in effect shall
7be paid into the Common School Fund.
8    The privilege tax imposed under this subsection (a-3) shall
9no longer be imposed beginning on the earlier of (i) July 1,
102005; (ii) the first date after June 20, 2003 that riverboat
11gambling operations are conducted pursuant to a dormant
12license; or (iii) the first day that riverboat gambling
13operations are conducted under the authority of an owners
14license that is in addition to the 10 owners licenses initially
15authorized under this Act. For the purposes of this subsection
16(a-3), the term "dormant license" means an owners license that
17is authorized by this Act under which no riverboat gambling
18operations are being conducted on June 20, 2003.
19    (a-4) Beginning on the first day on which the tax imposed
20under subsection (a-3) is no longer imposed and ending upon the
21imposition of the privilege tax under subsection (a-5) of this
22Section, a privilege tax is imposed on persons engaged in the
23business of conducting riverboat or casino gambling or
24electronic gaming operations, other than licensed managers
25conducting riverboat gambling operations on behalf of the
26State, based on the adjusted gross receipts received by a

 

 

HB2498- 439 -LRB100 03891 AMC 13896 b

1licensed owner from gambling games authorized under this Act at
2the following rates:
3        15% of annual adjusted gross receipts up to and
4    including $25,000,000;
5        22.5% of annual adjusted gross receipts in excess of
6    $25,000,000 but not exceeding $50,000,000;
7        27.5% of annual adjusted gross receipts in excess of
8    $50,000,000 but not exceeding $75,000,000;
9        32.5% of annual adjusted gross receipts in excess of
10    $75,000,000 but not exceeding $100,000,000;
11        37.5% of annual adjusted gross receipts in excess of
12    $100,000,000 but not exceeding $150,000,000;
13        45% of annual adjusted gross receipts in excess of
14    $150,000,000 but not exceeding $200,000,000;
15        50% of annual adjusted gross receipts in excess of
16    $200,000,000.
17    For the imposition of the privilege tax in this subsection
18(a-4), amounts paid pursuant to item (1) of subsection (b) of
19Section 56 of the Illinois Horse Racing Act of 1975 shall not
20be included in the determination of adjusted gross receipts.
21    (a-5) Beginning in the fiscal year following the opening of
22the casino at which gambling operations are conducted pursuant
23to the Chicago Casino Development Authority Act, but not before
24July 1, 2019, a privilege tax is imposed on persons engaged in
25the business of conducting riverboat or casino gambling or
26electronic gaming operations, other than licensed managers

 

 

HB2498- 440 -LRB100 03891 AMC 13896 b

1conducting riverboat gambling operations on behalf of the
2State, based on the adjusted gross receipts received by such
3licensee from the gambling games authorized under this Act and
4the Chicago Casino Development Authority Act. The privilege tax
5for all gambling games other than table games, including, but
6not limited to, slot machines, video game of chance gambling,
7and electronic gambling games shall be at the following rates:
8        10% of annual adjusted gross receipts up to and
9    including $25,000,000;
10        17.5% of annual adjusted gross receipts in excess of
11    $25,000,000 but not exceeding $50,000,000;
12        22.5% of annual adjusted gross receipts in excess of
13    $50,000,000 but not exceeding $75,000,000;
14        27.5% of annual adjusted gross receipts in excess of
15    $75,000,000 but not exceeding $100,000,000;
16        32.5% of annual adjusted gross receipts in excess of
17    $100,000,000 but not exceeding $150,000,000;
18        35% of annual adjusted gross receipts in excess of
19    $150,000,000 but not exceeding $200,000,000;
20        40% of annual adjusted gross receipts in excess of
21    $200,000,000 but not exceeding $300,000,000;
22        30% of annual adjusted gross receipts in excess of
23    $300,000,000 but not exceeding $350,000,000;
24        20% of annual adjusted gross receipts in excess of
25    $350,000,000, but not exceeding $800,000,000;
26        50% of annual adjusted gross receipts in excess of

 

 

HB2498- 441 -LRB100 03891 AMC 13896 b

1    $800,000,000.
2    The privilege tax for table games shall be at the following
3rates:
4        10% of annual adjusted gross receipts up to and
5    including $25,000,000;
6        17.5% of annual adjusted gross receipts in excess of
7    $25,000,000 but not exceeding $50,000,000;
8        22.5% of annual adjusted gross receipts in excess of
9    $50,000,000 but not exceeding $70,000,000;
10        16% of annual adjusted gross receipts in excess of
11    $70,000,000.
12    For the imposition of the privilege tax in this subsection
13(a-5), amounts paid pursuant to item (1) of subsection (b) of
14Section 56 of the Illinois Horse Racing Act of 1975 shall not
15be included in the determination of adjusted gross receipts.
16    (a-6) From the effective date of this amendatory Act of the
17100th General Assembly until June 30, 2021, an owners licensee
18that conducted gambling operations prior to January 1, 2011
19shall receive a dollar-for-dollar credit against the tax
20imposed under this Section for any renovation or construction
21costs paid by the owners licensee, but in no event shall the
22credit exceed $2,000,000.
23    Additionally, from the effective date of this amendatory
24Act of the 100th General Assembly until December 31, 2020, an
25owners licensee that (i) is located within 15 miles of the
26Missouri border, and (ii) has at least 3 riverboats, casinos,

 

 

HB2498- 442 -LRB100 03891 AMC 13896 b

1or their equivalent within a 45-mile radius, may be authorized
2to relocate to a new location with the approval of both the
3unit of local government designated as the home dock and the
4Board, so long as the new location is within the same unit of
5local government and no more than 3 miles away from its
6original location. Such owners licensee shall receive a credit
7against the tax imposed under this Section equal to 8% of the
8total project costs, as approved by the Board, for any
9renovation or construction costs paid by the owners licensee
10for the construction of the new facility, provided that the new
11facility is operational by July 1, 2020. In determining whether
12or not to approve a relocation, the Board must consider the
13extent to which the relocation will diminish the gaming
14revenues received by other Illinois gaming facilities.
15    (a-8) Riverboat gambling operations conducted by a
16licensed manager on behalf of the State are not subject to the
17tax imposed under this Section.
18    (a-9) Beginning on January 1, 2018, the calculation of
19gross receipts or adjusted gross receipts, for the purposes of
20this Section, for a riverboat, casino, or electronic gaming
21facility shall not include the dollar amount of non-cashable
22vouchers, coupons, and electronic promotions redeemed by
23wagerers upon the riverboat, in the casino, or in the
24electronic gaming facility up to and including an amount not to
25exceed 30% of a riverboat casino or electronic gaming
26facility's adjusted gross receipts.

 

 

HB2498- 443 -LRB100 03891 AMC 13896 b

1    The Illinois Gaming Board shall submit to the General
2Assembly a comprehensive report no later than March 31, 2021
3detailing, at a minimum, the effect of removing non-cashable
4vouchers, coupons, and electronic promotions from this
5calculation on net gaming revenues to the State in calendar
6years 2018 through 2020, the increase or reduction in wagerers
7as a result of removing non-cashable vouchers, coupons, and
8electronic promotions from this calculation, the effect of the
9tax rates in subsection (a-5) on net gaming revenues to the
10State, and proposed modifications to the calculation.
11    (a-10) The taxes imposed by this Section shall be paid by
12the licensed owner or the electronic gaming licensee to the
13Board not later than 5:00 o'clock p.m. of the day after the day
14when the wagers were made.
15    (a-15) If the privilege tax imposed under subsection (a-3)
16is no longer imposed pursuant to item (i) of the last paragraph
17of subsection (a-3), then by June 15 of each year, each owners
18licensee, other than an owners licensee that admitted 1,000,000
19persons or fewer in calendar year 2004, must, in addition to
20the payment of all amounts otherwise due under this Section,
21pay to the Board a reconciliation payment in the amount, if
22any, by which the licensed owner's base amount exceeds the
23amount of net privilege tax paid by the licensed owner to the
24Board in the then current State fiscal year. A licensed owner's
25net privilege tax obligation due for the balance of the State
26fiscal year shall be reduced up to the total of the amount paid

 

 

HB2498- 444 -LRB100 03891 AMC 13896 b

1by the licensed owner in its June 15 reconciliation payment.
2The obligation imposed by this subsection (a-15) is binding on
3any person, firm, corporation, or other entity that acquires an
4ownership interest in any such owners license. The obligation
5imposed under this subsection (a-15) terminates on the earliest
6of: (i) July 1, 2007, (ii) the first day after the effective
7date of this amendatory Act of the 94th General Assembly that
8riverboat gambling operations are conducted pursuant to a
9dormant license, (iii) the first day that riverboat gambling
10operations are conducted under the authority of an owners
11license that is in addition to the 10 owners licenses initially
12authorized under this Act, or (iv) the first day that a
13licensee under the Illinois Horse Racing Act of 1975 conducts
14gaming operations with slot machines or other electronic gaming
15devices. The Board must reduce the obligation imposed under
16this subsection (a-15) by an amount the Board deems reasonable
17for any of the following reasons: (A) an act or acts of God,
18(B) an act of bioterrorism or terrorism or a bioterrorism or
19terrorism threat that was investigated by a law enforcement
20agency, or (C) a condition beyond the control of the owners
21licensee that does not result from any act or omission by the
22owners licensee or any of its agents and that poses a hazardous
23threat to the health and safety of patrons. If an owners
24licensee pays an amount in excess of its liability under this
25Section, the Board shall apply the overpayment to future
26payments required under this Section.

 

 

HB2498- 445 -LRB100 03891 AMC 13896 b

1    For purposes of this subsection (a-15):
2    "Act of God" means an incident caused by the operation of
3an extraordinary force that cannot be foreseen, that cannot be
4avoided by the exercise of due care, and for which no person
5can be held liable.
6    "Base amount" means the following:
7        For a riverboat in Alton, $31,000,000.
8        For a riverboat in East Peoria, $43,000,000.
9        For the Empress riverboat in Joliet, $86,000,000.
10        For a riverboat in Metropolis, $45,000,000.
11        For the Harrah's riverboat in Joliet, $114,000,000.
12        For a riverboat in Aurora, $86,000,000.
13        For a riverboat in East St. Louis, $48,500,000.
14        For a riverboat in Elgin, $198,000,000.
15    "Dormant license" has the meaning ascribed to it in
16subsection (a-3).
17    "Net privilege tax" means all privilege taxes paid by a
18licensed owner to the Board under this Section, less all
19payments made from the State Gaming Fund pursuant to subsection
20(b) of this Section.
21    The changes made to this subsection (a-15) by Public Act
2294-839 are intended to restate and clarify the intent of Public
23Act 94-673 with respect to the amount of the payments required
24to be made under this subsection by an owners licensee to the
25Board.
26    (b) Until January 1, 1998, 25% of the tax revenue deposited

 

 

HB2498- 446 -LRB100 03891 AMC 13896 b

1in the State Gaming Fund under this Section shall be paid,
2subject to appropriation by the General Assembly, to the unit
3of local government which is designated as the home dock of the
4riverboat. Beginning January 1, 1998, from the tax revenue from
5riverboat or casino gambling deposited in the State Gaming Fund
6under this Section, an amount equal to 5% of adjusted gross
7receipts generated by a riverboat or a casino other than a
8riverboat designated in paragraph (3) or (4) of subsection
9(e-5) of Section 7, shall be paid monthly, subject to
10appropriation by the General Assembly, to the unit of local
11government in which the casino is located or that is designated
12as the home dock of the riverboat. From the tax revenue
13deposited in the State Gaming Fund pursuant to riverboat or
14casino gambling operations conducted by a licensed manager on
15behalf of the State, an amount equal to 5% of adjusted gross
16receipts generated pursuant to those riverboat or casino
17gambling operations shall be paid monthly, subject to
18appropriation by the General Assembly, to the unit of local
19government that is designated as the home dock of the riverboat
20upon which those riverboat gambling operations are conducted or
21in which the casino is located. From the tax revenue from
22riverboat or casino gambling deposited in the State Gaming Fund
23under this Section, an amount equal to 5% of the adjusted gross
24receipts generated by a riverboat designated in paragraph (3)
25of subsection (e-5) of Section 7 shall be divided and remitted
26monthly, subject to appropriation, as follows: 50% to Waukegan,

 

 

HB2498- 447 -LRB100 03891 AMC 13896 b

125% to Park City, and 25% to North Chicago. From the tax
2revenue from riverboat or casino gambling deposited in the
3State Gaming Fund under this Section, an amount equal to 5% of
4the adjusted gross receipts generated by a riverboat designated
5in paragraph (4) of subsection (e-5) of Section 7 shall be
6divided equally and remitted monthly, subject to
7appropriation, to the City of Rockford and Winnebago County.
8Units of local government may refund any portion of the payment
9that they receive pursuant to this subsection (b) to the
10riverboat or casino.
11    (b-5) Beginning on the effective date of this amendatory
12Act of the 100th General Assembly, from the tax revenue
13deposited in the State Gaming Fund under this Section, an
14amount equal to 3% of adjusted gross receipts generated by each
15electronic gaming facility located outside Madison County
16shall be paid monthly, subject to appropriation by the General
17Assembly, to a municipality other than the Village of Stickney
18in which each electronic gaming facility is located or, if the
19electronic gaming facility is not located within a
20municipality, to the county in which the electronic gaming
21facility is located, except as otherwise provided in this
22Section. From the tax revenue deposited in the State Gaming
23Fund under this Section, an amount equal to 3% of adjusted
24gross receipts generated by each electronic gaming facility
25that is located in an unincorporated area of Cook County and
26has been awarded standardbred racing dates during 2011 by the

 

 

HB2498- 448 -LRB100 03891 AMC 13896 b

1Illinois Racing Board shall be divided equally and distributed,
2subject to appropriation, to the Village of Melrose Park, the
3Village of Maywood, and Cook County. From the tax revenue
4deposited in the State Gaming Fund under this Section, an
5amount equal to 3% of adjusted gross receipts generated by an
6electronic gaming facility located in the Village of Stickney
7shall be paid monthly, subject to appropriation by the General
8Assembly, as follows: 25% to the Village of Stickney, 5% to the
9City of Berwyn, 50% to the Town of Cicero, and 20% to the
10Stickney Public Health District.
11    From the tax revenue deposited in the State Gaming Fund
12under this Section, an amount equal to 5% of adjusted gross
13receipts generated by an electronic gaming facility located in
14the City of Collinsville shall be paid monthly, subject to
15appropriation by the General Assembly, as follows: 45% to the
16City of Alton, 45% to the City of East St. Louis, and 10% to the
17City of Collinsville.
18    Municipalities and counties may refund any portion of the
19payment that they receive pursuant to this subsection (b-5) to
20the electronic gaming facility.
21    (b-6) Beginning on the effective date of this amendatory
22Act of the 100th General Assembly, from the tax revenue
23deposited in the State Gaming Fund under this Section, an
24amount equal to 2% of adjusted gross receipts generated by an
25electronic gaming facility located outside Madison County
26shall be paid monthly, subject to appropriation by the General

 

 

HB2498- 449 -LRB100 03891 AMC 13896 b

1Assembly, to the county in which the electronic gaming facility
2is located for the purposes of its criminal justice system or
3health care system.
4    Counties may refund any portion of the payment that they
5receive pursuant to this subsection (b-6) to the electronic
6gaming facility.
7    (b-7) Beginning on the effective date of this amendatory
8Act of the 100th General Assembly, from the tax revenue
9deposited in the State Gaming Fund under this Section,
10$5,000,000 shall be paid annually, subject to appropriation, to
11the Department of Human Services for the administration of
12programs to treat problem gambling.
13    (b-8) Beginning in the fiscal year following the opening of
14the casino at which gambling operations are conducted pursuant
15to the Chicago Casino Development Authority Act, but not before
16July 1, 2019, from the tax revenue deposited in the State
17Gaming Fund under this Section, $5,000,000 shall be transferred
18into the State Fairgrounds Capital Improvements Fund annually.
19    (b-9) Beginning in the fiscal year following the opening of
20the casino at which gambling operations are conducted pursuant
21to the Chicago Casino Development Authority Act, but not before
22July 1, 2019, from the tax revenue deposited in the State
23Gaming Fund under this Section, an amount equal to 5% of the
24wagering taxes paid by the riverboats and casino created
25pursuant to subsection (e-5) of Section 7 shall be transferred
26into the Depressed Communities Economic Development Fund

 

 

HB2498- 450 -LRB100 03891 AMC 13896 b

1annually.
2    (b-10) Beginning in the fiscal year following the opening
3of the casino at which gambling operations are conducted
4pursuant to the Chicago Casino Development Authority Act, but
5not before July 1, 2019, from the tax revenue deposited in the
6State Gaming Fund under this Section, an amount equal to 2.5%
7of the wagering taxes paid by the riverboats and casino created
8pursuant to subsection (e-5) of Section 7 shall be transferred
9into the Latino Community Economic Development Fund annually.
10    (b-11) The State and County Fair Assistance Fund is created
11as a special fund in the State treasury. The Fund shall be
12administered by the Department of Agriculture. Beginning in the
13fiscal year following the opening of the casino at which
14gambling operations are conducted pursuant to the Chicago
15Casino Development Authority Act, but not before July 1, 2019,
16from the tax revenue deposited in the State Gaming Fund under
17this Section, an amount equal to 1% of adjusted gross receipts,
18not to exceed $3,000,000, shall be transferred into the State
19and County Fair Assistance Fund annually. No moneys shall be
20expended from the State and County Fair Assistance Fund except
21as appropriated by the General Assembly. Deposits made pursuant
22to this subsection (b-11) shall supplement, and not supplant,
23other State funding for these purposes.
24    The Department of Agriculture shall award grants from the
25moneys appropriated from the State and County Fair Assistance
26Fund for the development, expansion, or support of county fairs

 

 

HB2498- 451 -LRB100 03891 AMC 13896 b

1that showcase Illinois agriculture products or byproducts. No
2grant may exceed $100,000, except for an annual grant of
3$1,000,000 that shall be made to the Illinois Standardbred
4Breeders Fund and used for Illinois-bred harness racing purses
5and the Illinois State Fair race track. Not more than one grant
6under this Section may be made to any one county fair board.
7Additionally, grants under this subsection (b-11) shall be
8available to the Illinois State Fair and the DuQuoin State
9Fair.
10    (b-12) Beginning in the fiscal year following the opening
11of the casino at which gambling operations are conducted
12pursuant to the Chicago Casino Development Authority Act, but
13not before July 1, 2019, from the tax revenue from electronic
14gaming deposited in the State Gaming Fund under this Section,
15(i) $6,250,000 shall be transferred annually into the Partners
16for Conservation Fund for grants to soil and water conservation
17districts and (ii) $2,500,000 shall be transferred annually
18into the State Cooperative Service Trust Fund for grants to the
19State's cooperative extensions. Transfers made pursuant to
20this subsection (b-12) shall supplement, and not supplant,
21other State funding for these purposes.
22    (b-13) Beginning in the fiscal year following the opening
23of the casino at which gambling operations are conducted
24pursuant to the Chicago Casino Development Authority Act, but
25not before July 1, 2019, from the tax revenue deposited in the
26State Gaming Fund under this Section, $75,000 shall be paid

 

 

HB2498- 452 -LRB100 03891 AMC 13896 b

1annually, subject to appropriation, to a county forest preserve
2district for the maintenance of a botanic garden that was
3created by Section 43 of the Cook County Forest Preserve
4District Act.
5    (b-14) Beginning in the fiscal year following the opening
6of the casino at which gambling operations are conducted
7pursuant to the Chicago Casino Development Authority Act, but
8not before July 1, 2019, from the tax revenue deposited in the
9State Gaming Fund under this Section, $125,000 shall be
10transferred annually into the Illinois Racing Quarter Horse
11Breeders Fund.
12    (b-15) From January 1, 2019 until December 31, 2021, if the
13total amount paid to the Education Assistance Fund annually
14pursuant to this Act will result in the Education Assistance
15Fund receiving less revenue from the State Gaming Fund than it
16received in calendar year 2011, an amount equal to that
17shortfall shall be transferred from the Capital Projects Fund
18to the Education Assistance Fund, except that no such transfer
19shall exceed the amount deposited into the Capital Projects
20Fund pursuant to subsection (c-4) of this Section.
21    (c) Appropriations, as approved by the General Assembly,
22may be made from the State Gaming Fund to the Board (i) for the
23administration and enforcement of this Act, the Chicago Casino
24Development Authority Act, and the Video Gaming Act, (ii) for
25distribution to the Department of State Police and to the
26Department of Revenue for the enforcement of this Act, the

 

 

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1Chicago Casino Development Authority Act, and the Video Gaming
2Act, and (iii) to the Department of Human Services for the
3administration of programs to treat problem gambling. The
4Board's annual appropriations request must separately state
5its funding needs for the regulation of electronic gaming,
6riverboat gaming, casino gaming within the City of Chicago, and
7video gaming. From the tax revenue deposited in the Gaming
8Facilities Fee Revenue Fund, the first $50,000,000 shall be
9paid to the Board, subject to appropriation, for the
10administration and enforcement of the provisions of this
11amendatory Act of the 100th General Assembly.
12    (c-3) Appropriations, as approved by the General Assembly,
13may be made from the tax revenue deposited into the State
14Gaming Fund from electronic gaming pursuant to this Section for
15the administration and enforcement of this Act.
16    (c-4) After payments required under subsection (b-5), (c),
17and (c-3) have been made from the tax revenue from electronic
18gaming deposited into the State Gaming Fund under this Section,
19all remaining amounts from electronic gaming shall be deposited
20into the Education Assistance Fund.
21    (c-5) Before May 26, 2006 (the effective date of Public Act
2294-804) and beginning on the effective date of this amendatory
23Act of the 95th General Assembly, unless any organization
24licensee under the Illinois Horse Racing Act of 1975 begins to
25operate a slot machine or video game of chance under the
26Illinois Horse Racing Act of 1975 or this Act, after the

 

 

HB2498- 454 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 455 -LRB100 03891 AMC 13896 b

1from the General Revenue Fund to the Education Assistance Fund
2an amount equal to the amount paid to each home rule county
3with a population of over 3,000,000 inhabitants pursuant to
4subsection (c-15) in the prior calendar year.
5    (c-25) On July 1, 2013 and each July 1 thereafter,
6$1,600,000 shall be transferred from the State Gaming Fund to
7the Chicago State University Education Improvement Fund.
8    (c-30) On July 1, 2013 or as soon as possible thereafter,
9$92,000,000 shall be transferred from the State Gaming Fund to
10the School Infrastructure Fund and $23,000,000 shall be
11transferred from the State Gaming Fund to the Horse Racing
12Equity Fund.
13    (c-35) Beginning on July 1, 2013, in addition to any amount
14transferred under subsection (c-30) of this Section,
15$5,530,000 shall be transferred monthly from the State Gaming
16Fund to the School Infrastructure Fund.
17    (d) From time to time, the Board shall transfer the
18remainder of the funds generated by this Act into the Education
19Assistance Fund, created by Public Act 86-0018, of the State of
20Illinois.
21    (e) Nothing in this Act shall prohibit the unit of local
22government designated as the home dock of the riverboat from
23entering into agreements with other units of local government
24in this State or in other states to share its portion of the
25tax revenue.
26    (f) To the extent practicable, the Board shall administer

 

 

HB2498- 456 -LRB100 03891 AMC 13896 b

1and collect the wagering taxes imposed by this Section in a
2manner consistent with the provisions of Sections 4, 5, 5a, 5b,
35c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
4Retailers' Occupation Tax Act and Section 3-7 of the Uniform
5Penalty and Interest Act.
6(Source: P.A. 98-18, eff. 6-7-13.)
 
7    (230 ILCS 10/14)  (from Ch. 120, par. 2414)
8    Sec. 14. Licensees - Records - Reports - Supervision.
9    (a) Licensed owners and electronic gaming licensees A
10licensed owner shall keep his books and records so as to
11clearly show the following:
12    (1) The amount received daily from admission fees.
13    (2) The total amount of gross receipts.
14    (3) The total amount of the adjusted gross receipts.
15    (b) Licensed owners and electronic gaming licensees The
16licensed owner shall furnish to the Board reports and
17information as the Board may require with respect to its
18activities on forms designed and supplied for such purpose by
19the Board.
20    (c) The books and records kept by a licensed owner as
21provided by this Section are public records and the
22examination, publication, and dissemination of the books and
23records are governed by the provisions of The Freedom of
24Information Act.
25(Source: P.A. 86-1029.)
 

 

 

HB2498- 457 -LRB100 03891 AMC 13896 b

1    (230 ILCS 10/15)  (from Ch. 120, par. 2415)
2    Sec. 15. Audit of Licensee Operations. Annually, the
3licensed owner, or manager, or electronic gaming licensee shall
4transmit to the Board an audit of the financial transactions
5and condition of the licensee's or manager's total operations.
6Additionally, within 90 days after the end of each quarter of
7each fiscal year, the licensed owner, or manager, or electronic
8gaming licensee shall transmit to the Board a compliance report
9on engagement procedures determined by the Board. All audits
10and compliance engagements shall be conducted by certified
11public accountants selected by the Board. Each certified public
12accountant must be registered in the State of Illinois under
13the Illinois Public Accounting Act. The compensation for each
14certified public accountant shall be paid directly by the
15licensed owner, or manager, or electronic gaming licensee to
16the certified public accountant.
17(Source: P.A. 96-1392, eff. 1-1-11.)
 
18    (230 ILCS 10/16)  (from Ch. 120, par. 2416)
19    Sec. 16. Annual Report of Board. The Board shall make an
20annual report to the Governor, for the period ending December
2131 of each year. Included in the report shall be an account of
22the Board actions, its financial position and results of
23operation under this Act and the Chicago Casino Development
24Authority Act, the practical results attained under this Act

 

 

HB2498- 458 -LRB100 03891 AMC 13896 b

1and the Chicago Casino Development Authority Act and any
2recommendations for legislation which the Board deems
3advisable.
4(Source: P.A. 86-1029.)
 
5    (230 ILCS 10/17)  (from Ch. 120, par. 2417)
6    Sec. 17. Administrative Procedures. The Illinois
7Administrative Procedure Act shall apply to all administrative
8rules and procedures of the Board under this Act, the Chicago
9Casino Development Authority Act, and or the Video Gaming Act,
10except that: (1) subsection (b) of Section 5-10 of the Illinois
11Administrative Procedure Act does not apply to final orders,
12decisions and opinions of the Board; (2) subsection (a) of
13Section 5-10 of the Illinois Administrative Procedure Act does
14not apply to forms established by the Board for use under this
15Act, the Chicago Casino Development Authority Act, and or the
16Video Gaming Act; (3) the provisions of Section 10-45 of the
17Illinois Administrative Procedure Act regarding proposals for
18decision are excluded under this Act, the Chicago Casino
19Development Authority Act, and or the Video Gaming Act; and (4)
20the provisions of subsection (d) of Section 10-65 of the
21Illinois Administrative Procedure Act do not apply so as to
22prevent summary suspension of any license pending revocation or
23other action, which suspension shall remain in effect unless
24modified by the Board or unless the Board's decision is
25reversed on the merits upon judicial review.

 

 

HB2498- 459 -LRB100 03891 AMC 13896 b

1(Source: P.A. 96-34, eff. 7-13-09.)
 
2    (230 ILCS 10/17.1)  (from Ch. 120, par. 2417.1)
3    Sec. 17.1. Judicial Review.
4    (a) Jurisdiction and venue for the judicial review of a
5final order of the Board relating to licensed owners,
6suppliers, electronic gaming licensees, and or special event
7licenses is vested in the Appellate Court of the judicial
8district in which Sangamon County is located. A petition for
9judicial review of a final order of the Board must be filed in
10the Appellate Court, within 35 days from the date that a copy
11of the decision sought to be reviewed was served upon the party
12affected by the decision.
13    (b) Judicial review of all other final orders of the Board
14shall be conducted in accordance with the Administrative Review
15Law.
16(Source: P.A. 88-1.)
 
17    (230 ILCS 10/18)  (from Ch. 120, par. 2418)
18    Sec. 18. Prohibited Activities - Penalty.
19    (a) A person is guilty of a Class A misdemeanor for doing
20any of the following:
21        (1) Conducting gambling where wagering is used or to be
22    used without a license issued by the Board.
23        (2) Conducting gambling where wagering is permitted
24    other than in the manner specified by Section 11.

 

 

HB2498- 460 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 461 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 462 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 463 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 464 -LRB100 03891 AMC 13896 b

1(Source: P.A. 96-224, eff. 8-11-09.)
 
2    (230 ILCS 10/18.2 new)
3    Sec. 18.2. Prohibition on political contributions from
4certain licensees and applicants.
5    (a) The General Assembly has a compelling interest in
6protecting the integrity of both the electoral process and the
7legislative process by preventing corruption and the
8appearance of corruption which may arise through permitting
9certain political campaign contributions by certain persons
10involved in the gaming industry and regulated by the State.
11Unlike most other regulated industries, gaming is especially
12susceptible to corruption and potential criminal influence.
13    In Illinois, only licensed gaming activities are legal and
14all other gaming activities are strictly prohibited. Given
15these circumstances, it is imperative to eliminate any
16potential corrupt influence in the gaming industry and the
17electoral process. Banning political campaign contributions by
18certain persons subject to this Section to State officeholders
19and candidates for such offices and to county and municipal
20officeholders and candidates for such offices in counties and
21municipalities that receive financial benefits from gaming
22activities is necessary to prevent corruption and the
23appearance of corruption that may arise when political campaign
24contributions and gaming that is regulated by the State and
25that confers benefits on counties and municipalities are

 

 

HB2498- 465 -LRB100 03891 AMC 13896 b

1intermingled.
2    The General Assembly has prohibited political campaign
3contributions to certain State and local officeholders and
4candidates for such offices by certain persons with State of
5Illinois and Metropolitan Pier and Exposition Authority
6contracts and pending bids or proposals for contracts of over
7$50,000 and certain individuals and entities affiliated with
8such persons. Certain gaming licensees will receive receipts
9far in excess of the base level of contract amounts subject to
10such other campaign contribution prohibitions.
11    (b) As used in this Section:
12    "Affiliated entity" means (i) any corporate parent and each
13operating subsidiary of the business entity applying for or
14holding a license, (ii) each operating subsidiary of the
15corporate parent of the business entity applying for or holding
16a license, (iii) any organization recognized by the United
17States Internal Revenue Service as a tax-exempt organization
18described in Section 501(c) of the Internal Revenue Code of
191986 (or any successor provision of federal tax law)
20established by one or more business entities seeking or holding
21a license, any affiliated entity of such business entity, or
22any affiliated person of such business entity, and (iv) any
23political committee for which the business entity applying for
24or holding a license, or any 501(c) organization described in
25item (iii) related to that business entity, is the sponsoring
26entity, as defined in Section 9-3 of the Election Code. For

 

 

HB2498- 466 -LRB100 03891 AMC 13896 b

1purposes of item (iv), the funding of all business entities
2applying for or holding a license shall be aggregated in
3determining whether such political committee is an affiliated
4entity.
5    "Affiliated person" means (i) any person with any ownership
6interest or distributive share in excess of 7.5% of any
7business entity applying for or holding a license, (ii)
8executive employees of any such business entity, (iii) any
9person designated as a key person under this Act, and (iv) the
10spouse of such persons.
11    "Contribution" means a contribution as defined in Section
129-1.4 of the Election Code.
13    "Declared candidate" means a person who has filed a
14statement of candidacy and petition for nomination or election
15in the principal office of the State Board of Elections, or in
16the office of the appropriate election authority for any county
17or municipality in which a casino or electronic gaming device
18is located or proposed or which receives any gaming revenue.
19    "Executive employee" means any person who is (i) an officer
20or director or who fulfills duties equivalent to those of an
21officer or director of a business entity applying for or
22holding a license and (ii) any employee of such business entity
23who is required to register under the Lobbyist Registration
24Act.
25    "License" means any owner, electronic gaming, or manager
26license issued pursuant to this Act.

 

 

HB2498- 467 -LRB100 03891 AMC 13896 b

1    "Officeholder" means the Governor, Lieutenant Governor,
2Attorney General, Secretary of State, Comptroller, Treasurer,
3member of the General Assembly, or any officeholder in any
4county or municipality in which a riverboat, casino, or
5electronic gaming device is located or proposed or which
6receives any gaming revenue.
7    "Business entity" means any entity doing business for
8profit, whether organized as a corporation, partnership, sole
9proprietorship, limited liability company, or partnership or
10otherwise.
11    (c) Any person or business entity applying for or holding a
12license, any affiliated entities or persons of such business
13entity, and any entities or persons soliciting a contribution
14or causing a contribution to be made on behalf of such person
15or business entity, are prohibited from making any contribution
16to any officeholder or declared candidate or any political
17committee affiliated with any officeholder or declared
18candidate, as defined in Section 9-1.8 of the Election Code.
19This prohibition shall commence upon filing of an application
20for a license and shall continue for a period of 2 years after
21termination, suspension, or revocation of the license.
22    The Board shall have authority to suspend, revoke, or
23restrict the license and to impose civil penalties of up to
24$100,000 for each violation of this subsection (c). A notice of
25each such violation and the penalty imposed shall be published
26on the Board's website and in the Illinois Register. Payments

 

 

HB2498- 468 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 469 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 470 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 471 -LRB100 03891 AMC 13896 b

1(Source: P.A. 86-1029.)
 
2    (230 ILCS 10/21)  (from Ch. 120, par. 2421)
3    Sec. 21. Limitation on taxation of licensees. Licensees
4shall not be subjected to any excise tax, license tax, permit
5tax, privilege tax, occupation tax or excursion tax which is
6imposed exclusively upon the licensee by the State or any
7political subdivision thereof, except as provided in this Act
8or the Chicago Casino Development Authority Act.
9(Source: P.A. 86-1029.)
 
10    (230 ILCS 10/23)  (from Ch. 120, par. 2423)
11    Sec. 23. The State Gaming Fund. On or after the effective
12date of this Act, except as provided for payments into the
13Horse Racing Equity Trust Fund under subsection (a) of Section
147, all of the fees and taxes collected pursuant to this Act or
15the Chicago Casino Development Authority Act shall be deposited
16into the State Gaming Fund, a special fund in the State
17Treasury, which is hereby created. The adjusted gross receipts
18of any riverboat gambling operations conducted by a licensed
19manager on behalf of the State remaining after the payment of
20the fees and expenses of the licensed manager shall be
21deposited into the State Gaming Fund. Fines and penalties
22collected pursuant to this Act or the Chicago Casino
23Development Authority Act shall be deposited into the Education
24Assistance Fund, created by Public Act 86-0018, of the State of

 

 

HB2498- 472 -LRB100 03891 AMC 13896 b

1Illinois.
2(Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)
 
3    (230 ILCS 10/24)
4    Sec. 24. Applicability of this Illinois Riverboat Gambling
5Act. The provisions of the this Illinois Riverboat Gambling
6Act, and all rules promulgated thereunder, shall apply to the
7the Chicago Casino Development Authority Act and the Video
8Gaming Act, except where there is a conflict between the 2
9Acts. In the event of a conflict between this Act and the
10Chicago Casino Development Authority Act, the terms of the
11Chicago Casino Development Authority Act shall prevail. In the
12event of a conflict between this Act and the Video Gaming Act,
13the terms of this Act shall prevail.
14(Source: P.A. 96-37, eff. 7-13-09.)
 
15    Section 90-42. The Video Gaming Act is amended by changing
16Sections 5, 25, 45, 79, and 80 and by adding Section 81 as
17follows:
 
18    (230 ILCS 40/5)
19    Sec. 5. Definitions. As used in this Act:
20    "Board" means the Illinois Gaming Board.
21    "Credit" means one, 5, 10, or 25 cents either won or
22purchased by a player.
23    "Distributor" means an individual, partnership,

 

 

HB2498- 473 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 474 -LRB100 03891 AMC 13896 b

1workings of a video gaming terminal. A licensed terminal
2handler does not include an individual, partnership,
3corporation, or limited liability company defined as a
4manufacturer, distributor, supplier, technician, or terminal
5operator under this Act.
6    "Manufacturer" means an individual, partnership,
7corporation, or limited liability company that is licensed
8under this Act and that manufactures or assembles video gaming
9terminals.
10    "Supplier" means an individual, partnership, corporation,
11or limited liability company that is licensed under this Act to
12supply major components or parts to video gaming terminals to
13licensed terminal operators.
14    "Net terminal income" means money put into a video gaming
15terminal minus credits paid out to players.
16    "Video gaming terminal" means any electronic video game
17machine that, upon insertion of cash, electronic cards or
18vouchers, or any combination thereof, is available to play or
19simulate the play of a video game, including but not limited to
20video poker, line up, and blackjack, as authorized by the Board
21utilizing a video display and microprocessors in which the
22player may receive free games or credits that can be redeemed
23for cash. The term does not include a machine that directly
24dispenses coins, cash, or tokens or is for amusement purposes
25only.
26    "Licensed establishment" means any licensed retail

 

 

HB2498- 475 -LRB100 03891 AMC 13896 b

1establishment where alcoholic liquor is drawn, poured, mixed,
2or otherwise served for consumption on the premises, whether
3the establishment operates on a nonprofit or for-profit basis.
4"Licensed establishment" includes any such establishment that
5has a contractual relationship with an inter-track wagering
6location licensee licensed under the Illinois Horse Racing Act
7of 1975, provided any contractual relationship shall not
8include any transfer or offer of revenue from the operation of
9video gaming under this Act to any licensee licensed under the
10Illinois Horse Racing Act of 1975. Provided, however, that the
11licensed establishment that has such a contractual
12relationship with an inter-track wagering location licensee
13may not, itself, be (i) an inter-track wagering location
14licensee, (ii) the corporate parent or subsidiary of any
15licensee licensed under the Illinois Horse Racing Act of 1975,
16or (iii) the corporate subsidiary of a corporation that is also
17the corporate parent or subsidiary of any licensee licensed
18under the Illinois Horse Racing Act of 1975. "Licensed
19establishment" does not include a facility operated by an
20organization licensee, an inter-track wagering licensee, or an
21inter-track wagering location licensee licensed under the
22Illinois Horse Racing Act of 1975 or a riverboat licensed under
23the Illinois Riverboat Gambling Act, except as provided in this
24paragraph. The changes made to this definition by Public Act
2598-587 are declarative of existing law.
26    "Licensed fraternal establishment" means the location

 

 

HB2498- 476 -LRB100 03891 AMC 13896 b

1where a qualified fraternal organization that derives its
2charter from a national fraternal organization regularly
3meets.
4    "Licensed veterans establishment" means the location where
5a qualified veterans organization that derives its charter from
6a national veterans organization regularly meets.
7    "Licensed truck stop establishment" means a facility (i)
8that is at least a 3-acre facility with a convenience store,
9(ii) with separate diesel islands for fueling commercial motor
10vehicles, (iii) that sells at retail more than 10,000 gallons
11of diesel or biodiesel fuel per month, and (iv) with parking
12spaces for commercial motor vehicles. "Commercial motor
13vehicles" has the same meaning as defined in Section 18b-101 of
14the Illinois Vehicle Code. The requirement of item (iii) of
15this paragraph may be met by showing that estimated future
16sales or past sales average at least 10,000 gallons per month.
17(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
1898-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
197-16-14.)
 
20    (230 ILCS 40/25)
21    Sec. 25. Restriction of licensees.
22    (a) Manufacturer. A person may not be licensed as a
23manufacturer of a video gaming terminal in Illinois unless the
24person has a valid manufacturer's license issued under this
25Act. A manufacturer may only sell video gaming terminals for

 

 

HB2498- 477 -LRB100 03891 AMC 13896 b

1use in Illinois to persons having a valid distributor's
2license.
3    (b) Distributor. A person may not sell, distribute, or
4lease or market a video gaming terminal in Illinois unless the
5person has a valid distributor's license issued under this Act.
6A distributor may only sell video gaming terminals for use in
7Illinois to persons having a valid distributor's or terminal
8operator's license.
9    (c) Terminal operator. A person may not own, maintain, or
10place a video gaming terminal unless he has a valid terminal
11operator's license issued under this Act. A terminal operator
12may only place video gaming terminals for use in Illinois in
13licensed establishments, licensed truck stop establishments,
14licensed fraternal establishments, and licensed veterans
15establishments. No terminal operator may give anything of
16value, including but not limited to a loan or financing
17arrangement, to a licensed establishment, licensed truck stop
18establishment, licensed fraternal establishment, or licensed
19veterans establishment as any incentive or inducement to locate
20video terminals in that establishment. Of the after-tax profits
21from a video gaming terminal, 50% shall be paid to the terminal
22operator and 50% shall be paid to the licensed establishment,
23licensed truck stop establishment, licensed fraternal
24establishment, or licensed veterans establishment,
25notwithstanding any agreement to the contrary. A video terminal
26operator that violates one or more requirements of this

 

 

HB2498- 478 -LRB100 03891 AMC 13896 b

1subsection is guilty of a Class 4 felony and is subject to
2termination of his or her license by the Board.
3    (d) Licensed technician. A person may not service,
4maintain, or repair a video gaming terminal in this State
5unless he or she (1) has a valid technician's license issued
6under this Act, (2) is a terminal operator, or (3) is employed
7by a terminal operator, distributor, or manufacturer.
8    (d-5) Licensed terminal handler. No person, including, but
9not limited to, an employee or independent contractor working
10for a manufacturer, distributor, supplier, technician, or
11terminal operator licensed pursuant to this Act, shall have
12possession or control of a video gaming terminal, or access to
13the inner workings of a video gaming terminal, unless that
14person possesses a valid terminal handler's license issued
15under this Act.
16    (e) Licensed establishment. No video gaming terminal may be
17placed in any licensed establishment, licensed veterans
18establishment, licensed truck stop establishment, or licensed
19fraternal establishment unless the owner or agent of the owner
20of the licensed establishment, licensed veterans
21establishment, licensed truck stop establishment, or licensed
22fraternal establishment has entered into a written use
23agreement with the terminal operator for placement of the
24terminals. A copy of the use agreement shall be on file in the
25terminal operator's place of business and available for
26inspection by individuals authorized by the Board. A licensed

 

 

HB2498- 479 -LRB100 03891 AMC 13896 b

1establishment, licensed truck stop establishment, licensed
2veterans establishment, or licensed fraternal establishment
3may operate up to 5 video gaming terminals on its premises at
4any time.
5    (f) (Blank).
6    (g) Financial interest restrictions. As used in this Act,
7"substantial interest" in a partnership, a corporation, an
8organization, an association, a business, or a limited
9liability company means:
10        (A) When, with respect to a sole proprietorship, an
11    individual or his or her spouse owns, operates, manages, or
12    conducts, directly or indirectly, the organization,
13    association, or business, or any part thereof; or
14        (B) When, with respect to a partnership, the individual
15    or his or her spouse shares in any of the profits, or
16    potential profits, of the partnership activities; or
17        (C) When, with respect to a corporation, an individual
18    or his or her spouse is an officer or director, or the
19    individual or his or her spouse is a holder, directly or
20    beneficially, of 5% or more of any class of stock of the
21    corporation; or
22        (D) When, with respect to an organization not covered
23    in (A), (B) or (C) above, an individual or his or her
24    spouse is an officer or manages the business affairs, or
25    the individual or his or her spouse is the owner of or
26    otherwise controls 10% or more of the assets of the

 

 

HB2498- 480 -LRB100 03891 AMC 13896 b

1    organization; or
2        (E) When an individual or his or her spouse furnishes
3    5% or more of the capital, whether in cash, goods, or
4    services, for the operation of any business, association,
5    or organization during any calendar year; or
6        (F) When, with respect to a limited liability company,
7    an individual or his or her spouse is a member, or the
8    individual or his or her spouse is a holder, directly or
9    beneficially, of 5% or more of the membership interest of
10    the limited liability company.
11    For purposes of this subsection (g), "individual" includes
12all individuals or their spouses whose combined interest would
13qualify as a substantial interest under this subsection (g) and
14whose activities with respect to an organization, association,
15or business are so closely aligned or coordinated as to
16constitute the activities of a single entity.
17    (h) Location restriction. A licensed establishment,
18licensed truck stop establishment, licensed fraternal
19establishment, or licensed veterans establishment that is (i)
20located within 1,000 feet of a facility operated by an
21organization licensee licensed under the Illinois Horse Racing
22Act of 1975 or the home dock of a riverboat licensed under the
23Illinois Riverboat Gambling Act or (ii) located within 100 feet
24of a school or a place of worship under the Religious
25Corporation Act, is ineligible to operate a video gaming
26terminal. The location restrictions in this subsection (h) do

 

 

HB2498- 481 -LRB100 03891 AMC 13896 b

1not apply if (A) a facility operated by an organization
2licensee, a school, or a place of worship moves to or is
3established within the restricted area after a licensed
4establishment, licensed truck stop establishment, licensed
5fraternal establishment, or licensed veterans establishment
6becomes licensed under this Act or (B) a school or place of
7worship moves to or is established within the restricted area
8after a licensed establishment, licensed truck stop
9establishment, licensed fraternal establishment, or licensed
10veterans establishment obtains its original liquor license.
11For the purpose of this subsection, "school" means an
12elementary or secondary public school, or an elementary or
13secondary private school registered with or recognized by the
14State Board of Education.
15    Notwithstanding the provisions of this subsection (h), the
16Board may waive the requirement that a licensed establishment,
17licensed truck stop establishment, licensed fraternal
18establishment, or licensed veterans establishment not be
19located within 1,000 feet from a facility operated by an
20organization licensee licensed under the Illinois Horse Racing
21Act of 1975 or the home dock of a riverboat licensed under the
22Illinois Riverboat Gambling Act. The Board shall not grant such
23waiver if there is any common ownership or control, shared
24business activity, or contractual arrangement of any type
25between the establishment and the organization licensee or
26owners licensee of a riverboat. The Board shall adopt rules to

 

 

HB2498- 482 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 483 -LRB100 03891 AMC 13896 b

1    (j) The provisions of the Illinois Antitrust Act are fully
2and equally applicable to the activities of any licensee under
3this Act.
4(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
5eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 
6    (230 ILCS 40/45)
7    Sec. 45. Issuance of license.
8    (a) The burden is upon each applicant to demonstrate his
9suitability for licensure. Each video gaming terminal
10manufacturer, distributor, supplier, operator, handler,
11licensed establishment, licensed truck stop establishment,
12licensed fraternal establishment, and licensed veterans
13establishment shall be licensed by the Board. The Board may
14issue or deny a license under this Act to any person pursuant
15to the same criteria set forth in Section 9 of the Illinois
16Riverboat Gambling Act.
17    (a-5) The Board shall not grant a license to a person who
18has facilitated, enabled, or participated in the use of
19coin-operated devices for gambling purposes or who is under the
20significant influence or control of such a person. For the
21purposes of this Act, "facilitated, enabled, or participated in
22the use of coin-operated amusement devices for gambling
23purposes" means that the person has been convicted of any
24violation of Article 28 of the Criminal Code of 1961 or the
25Criminal Code of 2012. If there is pending legal action against

 

 

HB2498- 484 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 485 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 486 -LRB100 03891 AMC 13896 b

1qualifications and requirements to preserve the integrity and
2security of video gaming in this State.
3    (f) A non-refundable application fee shall be paid at the
4time an application for a license is filed with the Board in
5the following amounts:
6        (1) Manufacturer..........................$5,000
7        (2) Distributor...........................$5,000
8        (3) Terminal operator.....................$5,000
9        (4) Supplier..............................$2,500
10        (5) Technician..............................$100
11        (6) Terminal Handler..............................$50
12    (g) The Board shall establish an annual fee for each
13license not to exceed the following:
14        (1) Manufacturer.........................$10,000
15        (2) Distributor..........................$10,000
16        (3) Terminal operator.....................$5,000
17        (4) Supplier..............................$2,000
18        (5) Technician..............................$100
19        (6) Licensed establishment, licensed truck stop
20    establishment, licensed fraternal establishment,
21    or licensed veterans establishment..............$100
22        (7) Video gaming terminal...................$100
23        (8) Terminal Handler..............................$50
24    (h) A terminal operator and a licensed establishment,
25licensed truck stop establishment, licensed fraternal
26establishment, or licensed veterans establishment shall

 

 

HB2498- 487 -LRB100 03891 AMC 13896 b

1equally split the fees specified in item (7) of subsection (g).
2(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
398-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
 
4    (230 ILCS 40/79)
5    Sec. 79. Investigators. Investigators appointed by the
6Board pursuant to the powers conferred upon the Board by
7paragraph (20.6) of subsection (c) of Section 5 of the Illinois
8Riverboat Gambling Act and Section 80 of this Act shall have
9authority to conduct investigations, searches, seizures,
10arrests, and other duties imposed under this Act and the
11Illinois Riverboat Gambling Act, as deemed necessary by the
12Board. These investigators have and may exercise all of the
13rights and powers of peace officers, provided that these powers
14shall be (1) limited to offenses or violations occurring or
15committed in connection with conduct subject to this Act,
16including, but not limited to, the manufacture, distribution,
17supply, operation, placement, service, maintenance, or play of
18video gaming terminals and the distribution of profits and
19collection of revenues resulting from such play, and (2)
20exercised, to the fullest extent practicable, in cooperation
21with the local police department of the applicable municipality
22or, if these powers are exercised outside the boundaries of an
23incorporated municipality or within a municipality that does
24not have its own police department, in cooperation with the
25police department whose jurisdiction encompasses the

 

 

HB2498- 488 -LRB100 03891 AMC 13896 b

1applicable locality.
2(Source: P.A. 97-809, eff. 7-13-12.)
 
3    (230 ILCS 40/80)
4    Sec. 80. Applicability of Illinois Riverboat Gambling Act.
5The provisions of the Illinois Riverboat Gambling Act, and all
6rules promulgated thereunder, shall apply to the Video Gaming
7Act, except where there is a conflict between the 2 Acts. In
8the event of a conflict between the 2 Acts, the provisions of
9the Illinois Gambling Act shall prevail. All provisions of the
10Uniform Penalty and Interest Act shall apply, as far as
11practicable, to the subject matter of this Act to the same
12extent as if such provisions were included herein.
13(Source: P.A. 96-37, eff. 7-13-09.)
 
14    (230 ILCS 40/81 new)
15    Sec. 81. Prohibition of political contributions from
16certain licensees and applicants.
17    (a) The General Assembly has a compelling interest in
18protecting the integrity of both the electoral process and the
19legislative process by preventing corruption and the
20appearance of corruption which may arise through permitting
21certain political campaign contributions by certain persons
22involved in the gaming industry and regulated by the State.
23Unlike most other regulated industries, gaming is especially
24susceptible to corruption and potential criminal influence.

 

 

HB2498- 489 -LRB100 03891 AMC 13896 b

1    In Illinois, only licensed gaming activities are legal and
2all other gaming activities are strictly prohibited. Given
3these circumstances, it is imperative to eliminate any
4potential corrupt influence in the gaming industry and the
5electoral process. Banning political campaign contributions by
6certain persons subject to this Section to State officeholders
7and candidates for such offices and, where necessary, to county
8and municipal officeholders and candidates for such offices in
9counties and municipalities that receive financial benefits
10from gaming activities is necessary to prevent corruption and
11the appearance of corruption that may arise when political
12campaign contributions and gaming that is regulated by the
13State and that confers benefits on counties and municipalities
14are intermingled.
15    (b) As used in this Section:
16    "Affiliated entity" means (i) any corporate parent and each
17operating subsidiary of the business entity applying for or
18holding a license, (ii) each operating subsidiary of the
19corporate parent of the business entity applying for or holding
20a license, (iii) any organization recognized by the United
21States Internal Revenue Service as a tax-exempt organization
22described in Section 501(c) of the Internal Revenue Code of
231986 (or any successor provision of federal tax law)
24established by one or more business entities seeking or holding
25a license, any affiliated entity of such business entity, or
26any affiliated person of such business entity, and (iv) any

 

 

HB2498- 490 -LRB100 03891 AMC 13896 b

1political committee for which the business entity applying for
2or holding a license, or any 501(c) organization described in
3item (iii) related to that business entity, is the sponsoring
4entity, as defined in Section 9-3 of the Election Code. For
5purposes of item (iv), the funding of all business entities
6applying for or holding a license shall be aggregated in
7determining whether such political committee is an affiliated
8entity.
9    "Affiliated person" means (i) any person with any ownership
10interest or distributive share in excess of 7.5% of any
11business entity applying for or holding a license, (ii)
12executive employees of any such business entity, (iii) any
13person designated as a person of significant influence and
14control under the Video Gaming Act, and (iv) the spouse of such
15persons.
16    "Business entity" means any entity doing business for
17profit, whether organized as a corporation, partnership, sole
18proprietorship, limited liability company, or partnership or
19otherwise.
20    "Contribution" means a contribution as defined in Section
219-1.4 of the Election Code.
22    "Declared candidate" means a person who has filed a
23statement of candidacy and petition for nomination or election
24in the principal office of the State Board of Elections, or in
25the office of the appropriate election authority for any county
26or municipality in which a video gaming terminal is located or

 

 

HB2498- 491 -LRB100 03891 AMC 13896 b

1proposed or which receives any video gaming revenue, for the
2office of Governor, Lieutenant Governor, Attorney General,
3Secretary of State, Comptroller, Treasurer, member of the
4General Assembly, chief executive or any member of the
5legislative body of any municipality in which a video gaming
6terminal is located or proposed or which receives any video
7gaming revenue, or chief executive or any member of the
8legislative body of any county containing any unincorporated
9area in which a video gaming terminal is located or which
10receives any video gaming revenue.
11    "Executive employee" means any person who is an officer or
12director or who fulfills duties equivalent to those of an
13officer or director of a business entity applying for or
14holding a license; and (ii) any employee of such business
15entity who is required to register under the Lobbyist
16Registration Act.
17    "License" means any license issued pursuant to this Act.
18    "Officeholder" means the Governor, the Lieutenant
19Governor, the Attorney General, the Secretary of State, the
20Comptroller, the Treasurer, a member of the General Assembly,
21the chief executive or any member of the legislative body of
22any municipality in which a video gaming terminal is located or
23proposed or which receives any video gaming revenue, or the
24chief executive or any member of the legislative body of any
25county containing any unincorporated area in which a video
26gaming terminal is located or which receives any video gaming

 

 

HB2498- 492 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 493 -LRB100 03891 AMC 13896 b

1contribution to the chief executive or any member of the
2legislative body of any municipality in which a video gaming
3terminal is located or proposed or which receives any video
4gaming revenue, the chief executive or any member of the
5legislative body of any county containing any unincorporated
6area in which a video gaming terminal is located or which
7receives any video gaming revenue, or any declared candidates
8for such offices, so long as the video gaming terminal
9associated with the terminal operator license held or applied
10for is not located in the same municipality or county in which
11the officeholder or declared candidate holds or is seeking
12office. This prohibition shall commence upon filing of an
13application for a license and shall continue for a period of 2
14years after termination, suspension, or revocation of the
15license.
16    Any officeholder or declared candidate or any political
17committee affiliated with any officeholder or declared
18candidate that has received a contribution in violation of this
19subsection (c) shall pay an amount equal to the value of the
20contribution to the State no more than 30 days after notice of
21the violation concerning the contribution appears in the
22Illinois Register. Payments received by the State pursuant to
23this subsection shall be deposited into the General Revenue
24Fund.
25    (d) The Board shall post on its website a list of all
26persons, business entities, and affiliated entities prohibited

 

 

HB2498- 494 -LRB100 03891 AMC 13896 b

1from making contributions to any officeholder or declared
2candidate political committee pursuant to subsection (c),
3which list shall be updated and published on, at a minimum, a
4semiannual basis.
5    Any person, business entity, or affiliated entity
6prohibited from making contributions to any officeholder or
7declared candidate political committee pursuant to subsection
8(c) of this Section shall notify the Board within 7 days after
9discovering any necessary change or addition to the information
10relating to that person, business entity, or affiliated entity
11contained in the list.
12    An individual who acts in good faith and in reliance on any
13information contained in the list shall not be subject to any
14penalties or liability imposed for a violation of this Section.
15    (e) If any provision of this Section is held invalid or its
16application to any person or circumstance is held invalid, the
17invalidity of that provision or application does not affect the
18other provisions or applications of this Section that can be
19given effect without the invalid application or provision.
 
20    Section 90-45. The Liquor Control Act of 1934 is amended by
21changing Sections 5-1 and 6-30 as follows:
 
22    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
23    Sec. 5-1. Licenses issued by the Illinois Liquor Control
24Commission shall be of the following classes:

 

 

HB2498- 495 -LRB100 03891 AMC 13896 b

1    (a) Manufacturer's license - Class 1. Distiller, Class 2.
2Rectifier, Class 3. Brewer, Class 4. First Class Wine
3Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
4First Class Winemaker, Class 7. Second Class Winemaker, Class
58. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
610. Class 1 Brewer, Class 11. Class 2 Brewer,
7    (b) Distributor's license,
8    (c) Importing Distributor's license,
9    (d) Retailer's license,
10    (e) Special Event Retailer's license (not-for-profit),
11    (f) Railroad license,
12    (g) Boat license,
13    (h) Non-Beverage User's license,
14    (i) Wine-maker's premises license,
15    (j) Airplane license,
16    (k) Foreign importer's license,
17    (l) Broker's license,
18    (m) Non-resident dealer's license,
19    (n) Brew Pub license,
20    (o) Auction liquor license,
21    (p) Caterer retailer license,
22    (q) Special use permit license,
23    (r) Winery shipper's license,
24    (s) Craft distiller tasting permit.
25    No person, firm, partnership, corporation, or other legal
26business entity that is engaged in the manufacturing of wine

 

 

HB2498- 496 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 497 -LRB100 03891 AMC 13896 b

1manufacture of up to 50,000 gallons of wine per year, and the
2storage and sale of such wine to distributors in the State and
3to persons without the State, as may be permitted by law. A
4person who, prior to June 1, 2008 (the effective date of Public
5Act 95-634), is a holder of a first-class wine-maker's license
6and annually produces more than 25,000 gallons of its own wine
7and who distributes its wine to licensed retailers shall cease
8this practice on or before July 1, 2008 in compliance with
9Public Act 95-634.
10    Class 7. A second-class wine-maker's license shall allow
11the manufacture of between 50,000 and 150,000 gallons of wine
12per year, and the storage and sale of such wine to distributors
13in this State and to persons without the State, as may be
14permitted by law. A person who, prior to June 1, 2008 (the
15effective date of Public Act 95-634), is a holder of a
16second-class wine-maker's license and annually produces more
17than 25,000 gallons of its own wine and who distributes its
18wine to licensed retailers shall cease this practice on or
19before July 1, 2008 in compliance with Public Act 95-634.
20    Class 8. A limited wine-manufacturer may make sales and
21deliveries not to exceed 40,000 gallons of wine per year to
22distributors, and to non-licensees in accordance with the
23provisions of this Act.
24    Class 9. A craft distiller license shall allow the
25manufacture of up to 100,000 March 1, 2013 (Public Act 97-1166)
26gallons of spirits by distillation per year and the storage of

 

 

HB2498- 498 -LRB100 03891 AMC 13896 b

1such spirits. If a craft distiller licensee, including a craft
2distiller licensee who holds more than one craft distiller
3license, is not affiliated with any other manufacturer of
4spirits, then the craft distiller licensee may sell such
5spirits to distributors in this State and up to 2,500 gallons
6of such spirits to non-licensees to the extent permitted by any
7exemption approved by the Commission pursuant to Section 6-4 of
8this Act. A craft distiller license holder may store such
9spirits at a non-contiguous licensed location, but at no time
10shall a craft distiller license holder directly or indirectly
11produce in the aggregate more than 100,000 gallons of spirits
12per year.
13    A craft distiller licensee may hold more than one craft
14distiller's license. However, a craft distiller that holds more
15than one craft distiller license shall not manufacture, in the
16aggregate, more than 100,000 gallons of spirits by distillation
17per year and shall not sell, in the aggregate, more than 2,500
18gallons of such spirits to non-licensees in accordance with an
19exemption approved by the State Commission pursuant to Section
206-4 of this Act.
21    Any craft distiller licensed under this Act who on July 28,
222010 (the effective date of Public Act 96-1367) was licensed as
23a distiller and manufactured no more spirits than permitted by
24this Section shall not be required to pay the initial licensing
25fee.
26    Class 10. A class 1 brewer license, which may only be

 

 

HB2498- 499 -LRB100 03891 AMC 13896 b

1issued to a licensed brewer or licensed non-resident dealer,
2shall allow the manufacture of up to 930,000 gallons of beer
3per year provided that the class 1 brewer licensee does not
4manufacture more than a combined 930,000 gallons of beer per
5year and is not a member of or affiliated with, directly or
6indirectly, a manufacturer that produces more than 930,000
7gallons of beer per year or any other alcoholic liquor. A class
81 brewer licensee may make sales and deliveries to importing
9distributors and distributors and to retail licensees in
10accordance with the conditions set forth in paragraph (18) of
11subsection (a) of Section 3-12 of this Act.
12    Class 11. A class 2 brewer license, which may only be
13issued to a licensed brewer or licensed non-resident dealer,
14shall allow the manufacture of up to 3,720,000 gallons of beer
15per year provided that the class 2 brewer licensee does not
16manufacture more than a combined 3,720,000 gallons of beer per
17year and is not a member of or affiliated with, directly or
18indirectly, a manufacturer that produces more than 3,720,000
19gallons of beer per year or any other alcoholic liquor. A class
202 brewer licensee may make sales and deliveries to importing
21distributors and distributors, but shall not make sales or
22deliveries to any other licensee. If the State Commission
23provides prior approval, a class 2 brewer licensee may annually
24transfer up to 3,720,000 gallons of beer manufactured by that
25class 2 brewer licensee to the premises of a licensed class 2
26brewer wholly owned and operated by the same licensee.

 

 

HB2498- 500 -LRB100 03891 AMC 13896 b

1    (a-1) A manufacturer which is licensed in this State to
2make sales or deliveries of alcoholic liquor to licensed
3distributors or importing distributors and which enlists
4agents, representatives, or individuals acting on its behalf
5who contact licensed retailers on a regular and continual basis
6in this State must register those agents, representatives, or
7persons acting on its behalf with the State Commission.
8    Registration of agents, representatives, or persons acting
9on behalf of a manufacturer is fulfilled by submitting a form
10to the Commission. The form shall be developed by the
11Commission and shall include the name and address of the
12applicant, the name and address of the manufacturer he or she
13represents, the territory or areas assigned to sell to or
14discuss pricing terms of alcoholic liquor, and any other
15questions deemed appropriate and necessary. All statements in
16the forms required to be made by law or by rule shall be deemed
17material, and any person who knowingly misstates any material
18fact under oath in an application is guilty of a Class B
19misdemeanor. Fraud, misrepresentation, false statements,
20misleading statements, evasions, or suppression of material
21facts in the securing of a registration are grounds for
22suspension or revocation of the registration. The State
23Commission shall post a list of registered agents on the
24Commission's website.
25    (b) A distributor's license shall allow the wholesale
26purchase and storage of alcoholic liquors and sale of alcoholic

 

 

HB2498- 501 -LRB100 03891 AMC 13896 b

1liquors to licensees in this State and to persons without the
2State, as may be permitted by law. No person licensed as a
3distributor shall be granted a non-resident dealer's license.
4    (c) An importing distributor's license may be issued to and
5held by those only who are duly licensed distributors, upon the
6filing of an application by a duly licensed distributor, with
7the Commission and the Commission shall, without the payment of
8any fee, immediately issue such importing distributor's
9license to the applicant, which shall allow the importation of
10alcoholic liquor by the licensee into this State from any point
11in the United States outside this State, and the purchase of
12alcoholic liquor in barrels, casks or other bulk containers and
13the bottling of such alcoholic liquors before resale thereof,
14but all bottles or containers so filled shall be sealed,
15labeled, stamped and otherwise made to comply with all
16provisions, rules and regulations governing manufacturers in
17the preparation and bottling of alcoholic liquors. The
18importing distributor's license shall permit such licensee to
19purchase alcoholic liquor from Illinois licensed non-resident
20dealers and foreign importers only. No person licensed as an
21importing distributor shall be granted a non-resident dealer's
22license.
23    (d) A retailer's license shall allow the licensee to sell
24and offer for sale at retail, only in the premises specified in
25the license, alcoholic liquor for use or consumption, but not
26for resale in any form. Nothing in Public Act 95-634 shall

 

 

HB2498- 502 -LRB100 03891 AMC 13896 b

1deny, limit, remove, or restrict the ability of a holder of a
2retailer's license to transfer, deliver, or ship alcoholic
3liquor to the purchaser for use or consumption subject to any
4applicable local law or ordinance. Any retail license issued to
5a manufacturer shall only permit the manufacturer to sell beer
6at retail on the premises actually occupied by the
7manufacturer. For the purpose of further describing the type of
8business conducted at a retail licensed premises, a retailer's
9licensee may be designated by the State Commission as (i) an on
10premise consumption retailer, (ii) an off premise sale
11retailer, or (iii) a combined on premise consumption and off
12premise sale retailer.
13    Notwithstanding any other provision of this subsection
14(d), a retail licensee may sell alcoholic liquors to a special
15event retailer licensee for resale to the extent permitted
16under subsection (e).
17    (e) A special event retailer's license (not-for-profit)
18shall permit the licensee to purchase alcoholic liquors from an
19Illinois licensed distributor (unless the licensee purchases
20less than $500 of alcoholic liquors for the special event, in
21which case the licensee may purchase the alcoholic liquors from
22a licensed retailer) and shall allow the licensee to sell and
23offer for sale, at retail, alcoholic liquors for use or
24consumption, but not for resale in any form and only at the
25location and on the specific dates designated for the special
26event in the license. An applicant for a special event retailer

 

 

HB2498- 503 -LRB100 03891 AMC 13896 b

1license must (i) furnish with the application: (A) a resale
2number issued under Section 2c of the Retailers' Occupation Tax
3Act or evidence that the applicant is registered under Section
42a of the Retailers' Occupation Tax Act, (B) a current, valid
5exemption identification number issued under Section 1g of the
6Retailers' Occupation Tax Act, and a certification to the
7Commission that the purchase of alcoholic liquors will be a
8tax-exempt purchase, or (C) a statement that the applicant is
9not registered under Section 2a of the Retailers' Occupation
10Tax Act, does not hold a resale number under Section 2c of the
11Retailers' Occupation Tax Act, and does not hold an exemption
12number under Section 1g of the Retailers' Occupation Tax Act,
13in which event the Commission shall set forth on the special
14event retailer's license a statement to that effect; (ii)
15submit with the application proof satisfactory to the State
16Commission that the applicant will provide dram shop liability
17insurance in the maximum limits; and (iii) show proof
18satisfactory to the State Commission that the applicant has
19obtained local authority approval.
20    (f) A railroad license shall permit the licensee to import
21alcoholic liquors into this State from any point in the United
22States outside this State and to store such alcoholic liquors
23in this State; to make wholesale purchases of alcoholic liquors
24directly from manufacturers, foreign importers, distributors
25and importing distributors from within or outside this State;
26and to store such alcoholic liquors in this State; provided

 

 

HB2498- 504 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 505 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 506 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 507 -LRB100 03891 AMC 13896 b

1but shall not permit the sale for resale of any alcoholic
2liquors to any licensee within this State. A single airplane
3license shall be required of an airline company if liquor
4service is provided on board aircraft in this State. The annual
5fee for such license shall be as determined in Section 5-3.
6    (k) A foreign importer's license shall permit such licensee
7to purchase alcoholic liquor from Illinois licensed
8non-resident dealers only, and to import alcoholic liquor other
9than in bulk from any point outside the United States and to
10sell such alcoholic liquor to Illinois licensed importing
11distributors and to no one else in Illinois; provided that (i)
12the foreign importer registers with the State Commission every
13brand of alcoholic liquor that it proposes to sell to Illinois
14licensees during the license period, (ii) the foreign importer
15complies with all of the provisions of Section 6-9 of this Act
16with respect to registration of such Illinois licensees as may
17be granted the right to sell such brands at wholesale, and
18(iii) the foreign importer complies with the provisions of
19Sections 6-5 and 6-6 of this Act to the same extent that these
20provisions apply to manufacturers.
21    (l) (i) A broker's license shall be required of all persons
22who solicit orders for, offer to sell or offer to supply
23alcoholic liquor to retailers in the State of Illinois, or who
24offer to retailers to ship or cause to be shipped or to make
25contact with distillers, rectifiers, brewers or manufacturers
26or any other party within or without the State of Illinois in

 

 

HB2498- 508 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 509 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 510 -LRB100 03891 AMC 13896 b

1non-resident dealer shall be granted a distributor's or
2importing distributor's license.
3    (n) A brew pub license shall allow the licensee to only (i)
4manufacture up to 155,000 gallons of beer per year only on the
5premises specified in the license, (ii) make sales of the beer
6manufactured on the premises or, with the approval of the
7Commission, beer manufactured on another brew pub licensed
8premises that is wholly owned and operated by the same licensee
9to importing distributors, distributors, and to non-licensees
10for use and consumption, (iii) store the beer upon the
11premises, (iv) sell and offer for sale at retail from the
12licensed premises for off-premises consumption no more than
13155,000 gallons per year so long as such sales are only made
14in-person, (v) sell and offer for sale at retail for use and
15consumption on the premises specified in the license any form
16of alcoholic liquor purchased from a licensed distributor or
17importing distributor, and (vi) with the prior approval of the
18Commission, annually transfer no more than 155,000 gallons of
19beer manufactured on the premises to a licensed brew pub wholly
20owned and operated by the same licensee.
21    A brew pub licensee shall not under any circumstance sell
22or offer for sale beer manufactured by the brew pub licensee to
23retail licensees.
24    A person who holds a class 2 brewer license may
25simultaneously hold a brew pub license if the class 2 brewer
26(i) does not, under any circumstance, sell or offer for sale

 

 

HB2498- 511 -LRB100 03891 AMC 13896 b

1beer manufactured by the class 2 brewer to retail licensees;
2(ii) does not hold more than 3 brew pub licenses in this State;
3(iii) does not manufacture more than a combined 3,720,000
4gallons of beer per year, including the beer manufactured at
5the brew pub; and (iv) is not a member of or affiliated with,
6directly or indirectly, a manufacturer that produces more than
73,720,000 gallons of beer per year or any other alcoholic
8liquor.
9    Notwithstanding any other provision of this Act, a licensed
10brewer, class 2 brewer, or non-resident dealer who before July
111, 2015 manufactured less than 3,720,000 gallons of beer per
12year and held a brew pub license on or before July 1, 2015 may
13(i) continue to qualify for and hold that brew pub license for
14the licensed premises and (ii) manufacture more than 3,720,000
15gallons of beer per year and continue to qualify for and hold
16that brew pub license if that brewer, class 2 brewer, or
17non-resident dealer does not simultaneously hold a class 1
18brewer license and is not a member of or affiliated with,
19directly or indirectly, a manufacturer that produces more than
203,720,000 gallons of beer per year or that produces any other
21alcoholic liquor.
22    (o) A caterer retailer license shall allow the holder to
23serve alcoholic liquors as an incidental part of a food service
24that serves prepared meals which excludes the serving of snacks
25as the primary meal, either on or off-site whether licensed or
26unlicensed.

 

 

HB2498- 512 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 513 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 514 -LRB100 03891 AMC 13896 b

1make wine under the laws of another state shall also be
2disclosed by the winery shipper's licensee, and a copy of the
3written appointment of the third-party wine provider, except
4for a common carrier, to the wine manufacturer shall be filed
5with the State Commission as a supplement to the winery
6shipper's license application or any renewal thereof. The
7winery shipper's license holder shall affirm under penalty of
8perjury, as part of the winery shipper's license application or
9renewal, that he or she only ships wine, either directly or
10indirectly through a third-party provider, from the licensee's
11own production.
12    Except for a common carrier, a third-party provider
13shipping wine on behalf of a winery shipper's license holder is
14the agent of the winery shipper's license holder and, as such,
15a winery shipper's license holder is responsible for the acts
16and omissions of the third-party provider acting on behalf of
17the license holder. A third-party provider, except for a common
18carrier, that engages in shipping wine into Illinois on behalf
19of a winery shipper's license holder shall consent to the
20jurisdiction of the State Commission and the State. Any
21third-party, except for a common carrier, holding such an
22appointment shall, by February 1 of each calendar year, file
23with the State Commission a statement detailing each shipment
24made to an Illinois resident. The State Commission shall adopt
25rules as soon as practicable to implement the requirements of
26Public Act 99-904 this amendatory Act of the 99th General

 

 

HB2498- 515 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 516 -LRB100 03891 AMC 13896 b

1number of cases per resident of wine shipped to residents of
2this State. A winery shipper licensed under this subsection (r)
3must comply with the requirements of Section 6-29 of this Act.
4    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
5Section 3-12, the State Commission may receive, respond to, and
6investigate any complaint and impose any of the remedies
7specified in paragraph (1) of subsection (a) of Section 3-12.
8    (s) A craft distiller tasting permit license shall allow an
9Illinois licensed craft distiller to transfer a portion of its
10alcoholic liquor inventory from its craft distiller licensed
11premises to the premises specified in the license hereby
12created and to conduct a sampling, only in the premises
13specified in the license hereby created, of the transferred
14alcoholic liquor in accordance with subsection (c) of Section
156-31 of this Act. The transferred alcoholic liquor may not be
16sold or resold in any form. An applicant for the craft
17distiller tasting permit license must also submit with the
18application proof satisfactory to the State Commission that the
19applicant will provide dram shop liability insurance to the
20maximum limits and have local authority approval.
21(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
2298-756, eff. 7-16-14; 99-448, eff. 8-24-15; 99-642, eff.
237-28-16; 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904,
24eff. 1-1-17; revised 9-15-16.)
 
25    (235 ILCS 5/6-30)  (from Ch. 43, par. 144f)

 

 

HB2498- 517 -LRB100 03891 AMC 13896 b

1    Sec. 6-30. Notwithstanding any other provision of this Act,
2the Illinois Gaming Board shall have exclusive authority to
3establish the hours for sale and consumption of alcoholic
4liquor on board a riverboat during riverboat gambling
5excursions and in a casino conducted in accordance with the
6Illinois Riverboat Gambling Act.
7(Source: P.A. 87-826.)
 
8    Section 90-46. The Illinois Public Aid Code is amended by
9changing Section 10-17.15 as follows:
 
10    (305 ILCS 5/10-17.15)
11    Sec. 10-17.15. Certification of information to State
12gaming licensees.
13    (a) For purposes of this Section, "State gaming licensee"
14means, as applicable, an organization licensee or advance
15deposit wagering licensee licensed under the Illinois Horse
16Racing Act of 1975, an owners licensee licensed under the
17Illinois Riverboat Gambling Act, or a licensee that operates,
18under any law of this State, one or more facilities or gaming
19locations at which lawful gambling is authorized and licensed
20as provided in the Illinois Riverboat Gambling Act.
21    (b) The Department may provide, by rule, for certification
22to any State gaming licensee of past due child support owed by
23a responsible relative under a support order entered by a court
24or administrative body of this or any other State on behalf of

 

 

HB2498- 518 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 519 -LRB100 03891 AMC 13896 b

1(Source: P.A. 98-318, eff. 8-12-13.)
 
2    Section 90-47. The Firearm Concealed Carry Act is amended
3by changing Section 65 as follows:
 
4    (430 ILCS 66/65)
5    Sec. 65. Prohibited areas.
6    (a) A licensee under this Act shall not knowingly carry a
7firearm on or into:
8        (1) Any building, real property, and parking area under
9    the control of a public or private elementary or secondary
10    school.
11        (2) Any building, real property, and parking area under
12    the control of a pre-school or child care facility,
13    including any room or portion of a building under the
14    control of a pre-school or child care facility. Nothing in
15    this paragraph shall prevent the operator of a child care
16    facility in a family home from owning or possessing a
17    firearm in the home or license under this Act, if no child
18    under child care at the home is present in the home or the
19    firearm in the home is stored in a locked container when a
20    child under child care at the home is present in the home.
21        (3) Any building, parking area, or portion of a
22    building under the control of an officer of the executive
23    or legislative branch of government, provided that nothing
24    in this paragraph shall prohibit a licensee from carrying a

 

 

HB2498- 520 -LRB100 03891 AMC 13896 b

1    concealed firearm onto the real property, bikeway, or trail
2    in a park regulated by the Department of Natural Resources
3    or any other designated public hunting area or building
4    where firearm possession is permitted as established by the
5    Department of Natural Resources under Section 1.8 of the
6    Wildlife Code.
7        (4) Any building designated for matters before a
8    circuit court, appellate court, or the Supreme Court, or
9    any building or portion of a building under the control of
10    the Supreme Court.
11        (5) Any building or portion of a building under the
12    control of a unit of local government.
13        (6) Any building, real property, and parking area under
14    the control of an adult or juvenile detention or
15    correctional institution, prison, or jail.
16        (7) Any building, real property, and parking area under
17    the control of a public or private hospital or hospital
18    affiliate, mental health facility, or nursing home.
19        (8) Any bus, train, or form of transportation paid for
20    in whole or in part with public funds, and any building,
21    real property, and parking area under the control of a
22    public transportation facility paid for in whole or in part
23    with public funds.
24        (9) Any building, real property, and parking area under
25    the control of an establishment that serves alcohol on its
26    premises, if more than 50% of the establishment's gross

 

 

HB2498- 521 -LRB100 03891 AMC 13896 b

1    receipts within the prior 3 months is from the sale of
2    alcohol. The owner of an establishment who knowingly fails
3    to prohibit concealed firearms on its premises as provided
4    in this paragraph or who knowingly makes a false statement
5    or record to avoid the prohibition on concealed firearms
6    under this paragraph is subject to the penalty under
7    subsection (c-5) of Section 10-1 of the Liquor Control Act
8    of 1934.
9        (10) Any public gathering or special event conducted on
10    property open to the public that requires the issuance of a
11    permit from the unit of local government, provided this
12    prohibition shall not apply to a licensee who must walk
13    through a public gathering in order to access his or her
14    residence, place of business, or vehicle.
15        (11) Any building or real property that has been issued
16    a Special Event Retailer's license as defined in Section
17    1-3.17.1 of the Liquor Control Act during the time
18    designated for the sale of alcohol by the Special Event
19    Retailer's license, or a Special use permit license as
20    defined in subsection (q) of Section 5-1 of the Liquor
21    Control Act during the time designated for the sale of
22    alcohol by the Special use permit license.
23        (12) Any public playground.
24        (13) Any public park, athletic area, or athletic
25    facility under the control of a municipality or park
26    district, provided nothing in this Section shall prohibit a

 

 

HB2498- 522 -LRB100 03891 AMC 13896 b

1    licensee from carrying a concealed firearm while on a trail
2    or bikeway if only a portion of the trail or bikeway
3    includes a public park.
4        (14) Any real property under the control of the Cook
5    County Forest Preserve District.
6        (15) Any building, classroom, laboratory, medical
7    clinic, hospital, artistic venue, athletic venue,
8    entertainment venue, officially recognized
9    university-related organization property, whether owned or
10    leased, and any real property, including parking areas,
11    sidewalks, and common areas under the control of a public
12    or private community college, college, or university.
13        (16) Any building, real property, or parking area under
14    the control of a gaming facility licensed under the
15    Illinois Riverboat Gambling Act or the Illinois Horse
16    Racing Act of 1975, including an inter-track wagering
17    location licensee.
18        (17) Any stadium, arena, or the real property or
19    parking area under the control of a stadium, arena, or any
20    collegiate or professional sporting event.
21        (18) Any building, real property, or parking area under
22    the control of a public library.
23        (19) Any building, real property, or parking area under
24    the control of an airport.
25        (20) Any building, real property, or parking area under
26    the control of an amusement park.

 

 

HB2498- 523 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 524 -LRB100 03891 AMC 13896 b

1    purpose of instruction and curriculum of officially
2    recognized programs, including but not limited to military
3    science and law enforcement training programs, or in any
4    designated area used for hunting purposes or target
5    shooting.
6    (a-10) The owner of private real property of any type may
7prohibit the carrying of concealed firearms on the property
8under his or her control. The owner must post a sign in
9accordance with subsection (d) of this Section indicating that
10firearms are prohibited on the property, unless the property is
11a private residence.
12    (b) Notwithstanding subsections (a), (a-5), and (a-10) of
13this Section except under paragraph (22) or (23) of subsection
14(a), any licensee prohibited from carrying a concealed firearm
15into the parking area of a prohibited location specified in
16subsection (a), (a-5), or (a-10) of this Section shall be
17permitted to carry a concealed firearm on or about his or her
18person within a vehicle into the parking area and may store a
19firearm or ammunition concealed in a case within a locked
20vehicle or locked container out of plain view within the
21vehicle in the parking area. A licensee may carry a concealed
22firearm in the immediate area surrounding his or her vehicle
23within a prohibited parking lot area only for the limited
24purpose of storing or retrieving a firearm within the vehicle's
25trunk. For purposes of this subsection, "case" includes a glove
26compartment or console that completely encloses the concealed

 

 

HB2498- 525 -LRB100 03891 AMC 13896 b

1firearm or ammunition, the trunk of the vehicle, or a firearm
2carrying box, shipping box, or other container.
3    (c) A licensee shall not be in violation of this Section
4while he or she is traveling along a public right of way that
5touches or crosses any of the premises under subsection (a),
6(a-5), or (a-10) of this Section if the concealed firearm is
7carried on his or her person in accordance with the provisions
8of this Act or is being transported in a vehicle by the
9licensee in accordance with all other applicable provisions of
10law.
11    (d) Signs stating that the carrying of firearms is
12prohibited shall be clearly and conspicuously posted at the
13entrance of a building, premises, or real property specified in
14this Section as a prohibited area, unless the building or
15premises is a private residence. Signs shall be of a uniform
16design as established by the Department and shall be 4 inches
17by 6 inches in size. The Department shall adopt rules for
18standardized signs to be used under this subsection.
19(Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)
 
20    Section 90-50. The Criminal Code of 2012 is amended by
21changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as
22follows:
 
23    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
24    Sec. 28-1. Gambling.

 

 

HB2498- 526 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 527 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 528 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 529 -LRB100 03891 AMC 13896 b

1    determination of skill, speed, strength or endurance or to
2    the owners of animals or vehicles entered in such contest.
3        (3) Pari-mutuel betting as authorized by the law of
4    this State.
5        (4) Manufacture of gambling devices, including the
6    acquisition of essential parts therefor and the assembly
7    thereof, for transportation in interstate or foreign
8    commerce to any place outside this State when such
9    transportation is not prohibited by any applicable Federal
10    law; or the manufacture, distribution, or possession of
11    video gaming terminals, as defined in the Video Gaming Act,
12    by manufacturers, distributors, and terminal operators
13    licensed to do so under the Video Gaming Act.
14        (5) The game commonly known as "bingo", when conducted
15    in accordance with the Bingo License and Tax Act.
16        (6) Lotteries when conducted by the State of Illinois
17    in accordance with the Illinois Lottery Law. This exemption
18    includes any activity conducted by the Department of
19    Revenue to sell lottery tickets pursuant to the provisions
20    of the Illinois Lottery Law and its rules.
21        (6.1) The purchase of lottery tickets through the
22    Internet for a lottery conducted by the State of Illinois
23    under the program established in Section 7.12 of the
24    Illinois Lottery Law.
25        (7) Possession of an antique slot machine that is
26    neither used nor intended to be used in the operation or

 

 

HB2498- 530 -LRB100 03891 AMC 13896 b

1    promotion of any unlawful gambling activity or enterprise.
2    For the purpose of this subparagraph (b)(7), an antique
3    slot machine is one manufactured 25 years ago or earlier.
4        (8) Raffles and poker runs when conducted in accordance
5    with the Raffles and Poker Runs Act.
6        (9) Charitable games when conducted in accordance with
7    the Charitable Games Act.
8        (10) Pull tabs and jar games when conducted under the
9    Illinois Pull Tabs and Jar Games Act.
10        (11) Gambling games conducted on riverboats when
11    authorized by the Illinois Riverboat Gambling Act.
12        (12) Video gaming terminal games at a licensed
13    establishment, licensed truck stop establishment, licensed
14    fraternal establishment, or licensed veterans
15    establishment when conducted in accordance with the Video
16    Gaming Act.
17        (13) Games of skill or chance where money or other
18    things of value can be won but no payment or purchase is
19    required to participate.
20        (14) Savings promotion raffles authorized under
21    Section 5g of the Illinois Banking Act, Section 7008 of the
22    Savings Bank Act, Section 42.7 of the Illinois Credit Union
23    Act, Section 5136B of the National Bank Act (12 U.S.C.
24    25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
25    1463).
26    (c) Sentence.

 

 

HB2498- 531 -LRB100 03891 AMC 13896 b

1    Gambling is a Class A misdemeanor. A second or subsequent
2conviction under subsections (a)(3) through (a)(12), is a Class
34 felony.
4    (d) Circumstantial evidence.
5    In prosecutions under this Section circumstantial evidence
6shall have the same validity and weight as in any criminal
7prosecution.
8(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
 
9    (720 ILCS 5/28-1.1)   (from Ch. 38, par. 28-1.1)
10    Sec. 28-1.1. Syndicated gambling.
11    (a) Declaration of Purpose. Recognizing the close
12relationship between professional gambling and other organized
13crime, it is declared to be the policy of the legislature to
14restrain persons from engaging in the business of gambling for
15profit in this State. This Section shall be liberally construed
16and administered with a view to carrying out this policy.
17    (b) A person commits syndicated gambling when he or she
18operates a "policy game" or engages in the business of
19bookmaking.
20    (c) A person "operates a policy game" when he or she
21knowingly uses any premises or property for the purpose of
22receiving or knowingly does receive from what is commonly
23called "policy":
24        (1) money from a person other than the bettor or player
25    whose bets or plays are represented by the money; or

 

 

HB2498- 532 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 533 -LRB100 03891 AMC 13896 b

1        (4) Manufacture of gambling devices, including the
2    acquisition of essential parts therefor and the assembly
3    thereof, for transportation in interstate or foreign
4    commerce to any place outside this State when the
5    transportation is not prohibited by any applicable Federal
6    law;
7        (5) Raffles and poker runs when conducted in accordance
8    with the Raffles and Poker Runs Act;
9        (6) Gambling games conducted on riverboats, in
10    casinos, or at electronic gaming facilities when
11    authorized by the Illinois Riverboat Gambling Act;
12        (7) Video gaming terminal games at a licensed
13    establishment, licensed truck stop establishment, licensed
14    fraternal establishment, or licensed veterans
15    establishment when conducted in accordance with the Video
16    Gaming Act; and
17        (8) Savings promotion raffles authorized under Section
18    5g of the Illinois Banking Act, Section 7008 of the Savings
19    Bank Act, Section 42.7 of the Illinois Credit Union Act,
20    Section 5136B of the National Bank Act (12 U.S.C. 25a), or
21    Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).
22    (f) Sentence. Syndicated gambling is a Class 3 felony.
23(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
 
24    (720 ILCS 5/28-3)   (from Ch. 38, par. 28-3)
25    Sec. 28-3. Keeping a Gambling Place. A "gambling place" is

 

 

HB2498- 534 -LRB100 03891 AMC 13896 b

1any real estate, vehicle, boat or any other property whatsoever
2used for the purposes of gambling other than gambling conducted
3in the manner authorized by the Illinois Riverboat Gambling Act
4or the Video Gaming Act. Any person who knowingly permits any
5premises or property owned or occupied by him or under his
6control to be used as a gambling place commits a Class A
7misdemeanor. Each subsequent offense is a Class 4 felony. When
8any premises is determined by the circuit court to be a
9gambling place:
10    (a) Such premises is a public nuisance and may be proceeded
11against as such, and
12    (b) All licenses, permits or certificates issued by the
13State of Illinois or any subdivision or public agency thereof
14authorizing the serving of food or liquor on such premises
15shall be void; and no license, permit or certificate so
16cancelled shall be reissued for such premises for a period of
1760 days thereafter; nor shall any person convicted of keeping a
18gambling place be reissued such license for one year from his
19conviction and, after a second conviction of keeping a gambling
20place, any such person shall not be reissued such license, and
21    (c) Such premises of any person who knowingly permits
22thereon a violation of any Section of this Article shall be
23held liable for, and may be sold to pay any unsatisfied
24judgment that may be recovered and any unsatisfied fine that
25may be levied under any Section of this Article.
26(Source: P.A. 96-34, eff. 7-13-09.)
 

 

 

HB2498- 535 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 536 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 537 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 538 -LRB100 03891 AMC 13896 b

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

 

 

HB2498- 539 -LRB100 03891 AMC 13896 b

1whole or any part of the consideration thereof is for any money
2or thing of value, won or obtained in violation of any Section
3of this Article are null and void.
4    (b) Any obligation void under this Section may be set aside
5and vacated by any court of competent jurisdiction, upon a
6complaint filed for that purpose, by the person so granting,
7giving, entering into, or executing the same, or by his
8executors or administrators, or by any creditor, heir, legatee,
9purchaser or other person interested therein; or if a judgment,
10the same may be set aside on motion of any person stated above,
11on due notice thereof given.
12    (c) No assignment of any obligation void under this Section
13may in any manner affect the defense of the person giving,
14granting, drawing, entering into or executing such obligation,
15or the remedies of any person interested therein.
16    (d) This Section shall not prevent a licensed owner of a
17riverboat gambling operation, casino gambling operation, or an
18electronic gaming licensee under the Illinois Gambling Act and
19the Illinois Horse Racing Act of 1975 from instituting a cause
20of action to collect any amount due and owing under an
21extension of credit to a riverboat gambling patron as
22authorized under Section 11.1 of the Illinois Riverboat
23Gambling Act.
24(Source: P.A. 87-826.)
 
25    Section 90-55. The Eminent Domain Act is amended by adding

 

 

HB2498- 540 -LRB100 03891 AMC 13896 b

1Section 15-5-48 as follows:
 
2    (735 ILCS 30/15-5-48 new)
3    Sec. 15-5-48. Eminent domain powers in new Acts. The
4following provisions of law may include express grants of the
5power to acquire property by condemnation or eminent domain:
 
6    Chicago Casino Development Authority Act; City of Chicago; for
7    the purposes of the Act.
 
8    Section 90-60. The Payday Loan Reform Act is amended by
9changing Section 3-5 as follows:
 
10    (815 ILCS 122/3-5)
11    Sec. 3-5. Licensure.
12    (a) A license to make a payday loan shall state the
13address, including city and state, at which the business is to
14be conducted and shall state fully the name of the licensee.
15The license shall be conspicuously posted in the place of
16business of the licensee and shall not be transferable or
17assignable.
18    (b) An application for a license shall be in writing and in
19a form prescribed by the Secretary. The Secretary may not issue
20a payday loan license unless and until the following findings
21are made:
22        (1) that the financial responsibility, experience,

 

 

HB2498- 541 -LRB100 03891 AMC 13896 b

1    character, and general fitness of the applicant are such as
2    to command the confidence of the public and to warrant the
3    belief that the business will be operated lawfully and
4    fairly and within the provisions and purposes of this Act;
5    and
6        (2) that the applicant has submitted such other
7    information as the Secretary may deem necessary.
8    (c) A license shall be issued for no longer than one year,
9and no renewal of a license may be provided if a licensee has
10substantially violated this Act and has not cured the violation
11to the satisfaction of the Department.
12    (d) A licensee shall appoint, in writing, the Secretary as
13attorney-in-fact upon whom all lawful process against the
14licensee may be served with the same legal force and validity
15as if served on the licensee. A copy of the written
16appointment, duly certified, shall be filed in the office of
17the Secretary, and a copy thereof certified by the Secretary
18shall be sufficient evidence to subject a licensee to
19jurisdiction in a court of law. This appointment shall remain
20in effect while any liability remains outstanding in this State
21against the licensee. When summons is served upon the Secretary
22as attorney-in-fact for a licensee, the Secretary shall
23immediately notify the licensee by registered mail, enclosing
24the summons and specifying the hour and day of service.
25    (e) A licensee must pay an annual fee of $1,000. In
26addition to the license fee, the reasonable expense of any

 

 

HB2498- 542 -LRB100 03891 AMC 13896 b

1examination or hearing by the Secretary under any provisions of
2this Act shall be borne by the licensee. If a licensee fails to
3renew its license by December 31, its license shall
4automatically expire; however, the Secretary, in his or her
5discretion, may reinstate an expired license upon:
6        (1) payment of the annual fee within 30 days of the
7    date of expiration; and
8        (2) proof of good cause for failure to renew.
9    (f) Not more than one place of business shall be maintained
10under the same license, but the Secretary may issue more than
11one license to the same licensee upon compliance with all the
12provisions of this Act governing issuance of a single license.
13The location, except those locations already in existence as of
14June 1, 2005, may not be within one mile of a horse race track
15subject to the Illinois Horse Racing Act of 1975, within one
16mile of a facility at which gambling is conducted under the
17Illinois Riverboat Gambling Act, within one mile of the
18location at which a riverboat subject to the Illinois Riverboat
19Gambling Act docks, or within one mile of any State of Illinois
20or United States military base or naval installation.
21    (g) No licensee shall conduct the business of making loans
22under this Act within any office, suite, room, or place of
23business in which (1) any loans are offered or made under the
24Consumer Installment Loan Act other than title secured loans as
25defined in subsection (a) of Section 15 of the Consumer
26Installment Loan Act and governed by Title 38, Section 110.330

 

 

HB2498- 543 -LRB100 03891 AMC 13896 b

1of the Illinois Administrative Code or (2) any other business
2is solicited or engaged in unless the other business is
3licensed by the Department or, in the opinion of the Secretary,
4the other business would not be contrary to the best interests
5of consumers and is authorized by the Secretary in writing.
6    (g-5) Notwithstanding subsection (g) of this Section, a
7licensee may obtain a license under the Consumer Installment
8Loan Act (CILA) for the exclusive purpose and use of making
9title secured loans, as defined in subsection (a) of Section 15
10of CILA and governed by Title 38, Section 110.300 of the
11Illinois Administrative Code. A licensee may continue to
12service Consumer Installment Loan Act loans that were
13outstanding as of the effective date of this amendatory Act of
14the 96th General Assembly.
15    (h) The Secretary shall maintain a list of licensees that
16shall be available to interested consumers and lenders and the
17public. The Secretary shall maintain a toll-free number whereby
18consumers may obtain information about licensees. The
19Secretary shall also establish a complaint process under which
20an aggrieved consumer may file a complaint against a licensee
21or non-licensee who violates any provision of this Act.
22(Source: P.A. 96-936, eff. 3-21-11.)
 
23    Section 90-65. The Travel Promotion Consumer Protection
24Act is amended by changing Section 2 as follows:
 

 

 

HB2498- 544 -LRB100 03891 AMC 13896 b

1    (815 ILCS 420/2)  (from Ch. 121 1/2, par. 1852)
2    Sec. 2. Definitions.
3    (a) "Travel promoter" means a person, including a tour
4operator, who sells, provides, furnishes, contracts for,
5arranges or advertises that he or she will arrange wholesale or
6retail transportation by air, land, sea or navigable stream,
7either separately or in conjunction with other services.
8"Travel promoter" does not include (1) an air carrier; (2) a
9sea carrier; (3) an officially appointed agent of an air
10carrier who is a member in good standing of the Airline
11Reporting Corporation; (4) a travel promoter who has in force
12$1,000,000 or more of liability insurance coverage for
13professional errors and omissions and a surety bond or
14equivalent surety in the amount of $100,000 or more for the
15benefit of consumers in the event of a bankruptcy on the part
16of the travel promoter; or (5) a riverboat subject to
17regulation under the Illinois Riverboat Gambling Act.
18    (b) "Advertise" means to make any representation in the
19solicitation of passengers and includes communication with
20other members of the same partnership, corporation, joint
21venture, association, organization, group or other entity.
22    (c) "Passenger" means a person on whose behalf money or
23other consideration has been given or is to be given to
24another, including another member of the same partnership,
25corporation, joint venture, association, organization, group
26or other entity, for travel.

 

 

HB2498- 545 -LRB100 03891 AMC 13896 b

1    (d) "Ticket or voucher" means a writing or combination of
2writings which is itself good and sufficient to obtain
3transportation and other services for which the passenger has
4contracted.
5(Source: P.A. 91-357, eff. 7-29-99.)
 
6    (30 ILCS 105/5.490 rep.)
7    Section 90-70. The State Finance Act is amended by
8repealing Section 5.490.
 
9    (230 ILCS 5/54 rep.)
10    Section 90-75. The Illinois Horse Racing Act of 1975 is
11amended by repealing Section 54.
 
12
ARTICLE 99.

 
13    Section 99-97. Severability. The provisions of this Act are
14severable under Section 1.31 of the Statute on Statutes.
 
15    Section 99-99. Effective date. This Act takes effect upon
16becoming law.

 

 

HB2498- 546 -LRB100 03891 AMC 13896 b

1 INDEX
2 Statutes amended in order of appearance
3    New Act
4    5 ILCS 430/5-45
5    5 ILCS 430/20-10
6    20 ILCS 301/5-20
7    20 ILCS 605/605-530 new
8    20 ILCS 605/605-535 new
9    20 ILCS 1605/9.1
10    20 ILCS 2505/2505-305was 20 ILCS 2505/39b15.1
11    30 ILCS 5/3-1from Ch. 15, par. 303-1
12    30 ILCS 105/5.878 new
13    30 ILCS 105/5.879 new
14    30 ILCS 105/5.880 new
15    30 ILCS 105/5.881 new
16    30 ILCS 105/6z-45
17    30 ILCS 105/6z-102 new
18    30 ILCS 105/6z-103 new
19    35 ILCS 5/201from Ch. 120, par. 2-201
20    35 ILCS 5/303from Ch. 120, par. 3-303
21    35 ILCS 5/304from Ch. 120, par. 3-304
22    35 ILCS 5/710from Ch. 120, par. 7-710
23    35 ILCS 200/15-144 new
24    65 ILCS 5/8-10-2.6 new
25    70 ILCS 1825/5.1from Ch. 19, par. 255.1

 

 

HB2498- 547 -LRB100 03891 AMC 13896 b

1    205 ILCS 670/12.5
2    230 ILCS 5/1.2
3    230 ILCS 5/3.11from Ch. 8, par. 37-3.11
4    230 ILCS 5/3.12from Ch. 8, par. 37-3.12
5    230 ILCS 5/3.31 new
6    230 ILCS 5/3.32 new
7    230 ILCS 5/3.33 new
8    230 ILCS 5/3.35 new
9    230 ILCS 5/3.36 new
10    230 ILCS 5/6from Ch. 8, par. 37-6
11    230 ILCS 5/9from Ch. 8, par. 37-9
12    230 ILCS 5/15from Ch. 8, par. 37-15
13    230 ILCS 5/18from Ch. 8, par. 37-18
14    230 ILCS 5/19from Ch. 8, par. 37-19
15    230 ILCS 5/20from Ch. 8, par. 37-20
16    230 ILCS 5/21from Ch. 8, par. 37-21
17    230 ILCS 5/24from Ch. 8, par. 37-24
18    230 ILCS 5/25from Ch. 8, par. 37-25
19    230 ILCS 5/26from Ch. 8, par. 37-26
20    230 ILCS 5/27from Ch. 8, par. 37-27
21    230 ILCS 5/30from Ch. 8, par. 37-30
22    230 ILCS 5/30.5
23    230 ILCS 5/31from Ch. 8, par. 37-31
24    230 ILCS 5/31.1from Ch. 8, par. 37-31.1
25    230 ILCS 5/32.1
26    230 ILCS 5/34.3 new

 

 

HB2498- 548 -LRB100 03891 AMC 13896 b

1    230 ILCS 5/36from Ch. 8, par. 37-36
2    230 ILCS 5/39.2 new
3    230 ILCS 5/40from Ch. 8, par. 37-40
4    230 ILCS 5/54.75
5    230 ILCS 5/56 new
6    230 ILCS 10/1from Ch. 120, par. 2401
7    230 ILCS 10/2from Ch. 120, par. 2402
8    230 ILCS 10/3from Ch. 120, par. 2403
9    230 ILCS 10/4from Ch. 120, par. 2404
10    230 ILCS 10/5from Ch. 120, par. 2405
11    230 ILCS 10/5.1from Ch. 120, par. 2405.1
12    230 ILCS 10/5.3 new
13    230 ILCS 10/6from Ch. 120, par. 2406
14    230 ILCS 10/7from Ch. 120, par. 2407
15    230 ILCS 10/7.3
16    230 ILCS 10/7.5
17    230 ILCS 10/7.7 new
18    230 ILCS 10/7.8 new
19    230 ILCS 10/7.9 new
20    230 ILCS 10/7.10 new
21    230 ILCS 10/7.11 new
22    230 ILCS 10/7.12 new
23    230 ILCS 10/7.13 new
24    230 ILCS 10/8from Ch. 120, par. 2408
25    230 ILCS 10/9from Ch. 120, par. 2409
26    230 ILCS 10/11from Ch. 120, par. 2411

 

 

HB2498- 549 -LRB100 03891 AMC 13896 b

1    230 ILCS 10/11.1from Ch. 120, par. 2411.1
2    230 ILCS 10/12from Ch. 120, par. 2412
3    230 ILCS 10/13from Ch. 120, par. 2413
4    230 ILCS 10/14from Ch. 120, par. 2414
5    230 ILCS 10/15from Ch. 120, par. 2415
6    230 ILCS 10/16from Ch. 120, par. 2416
7    230 ILCS 10/17from Ch. 120, par. 2417
8    230 ILCS 10/17.1from Ch. 120, par. 2417.1
9    230 ILCS 10/18from Ch. 120, par. 2418
10    230 ILCS 10/18.1
11    230 ILCS 10/18.2 new
12    230 ILCS 10/19from Ch. 120, par. 2419
13    230 ILCS 10/20from Ch. 120, par. 2420
14    230 ILCS 10/21from Ch. 120, par. 2421
15    230 ILCS 10/23from Ch. 120, par. 2423
16    230 ILCS 10/24
17    230 ILCS 40/5
18    230 ILCS 40/25
19    230 ILCS 40/45
20    230 ILCS 40/79
21    230 ILCS 40/80
22    230 ILCS 40/81 new
23    235 ILCS 5/5-1from Ch. 43, par. 115
24    235 ILCS 5/6-30from Ch. 43, par. 144f
25    305 ILCS 5/10-17.15
26    430 ILCS 66/65

 

 

HB2498- 550 -LRB100 03891 AMC 13896 b

1    720 ILCS 5/28-1from Ch. 38, par. 28-1
2    720 ILCS 5/28-1.1from Ch. 38, par. 28-1.1
3    720 ILCS 5/28-3from Ch. 38, par. 28-3
4    720 ILCS 5/28-5from Ch. 38, par. 28-5
5    720 ILCS 5/28-7from Ch. 38, par. 28-7
6    735 ILCS 30/15-5-48 new
7    815 ILCS 122/3-5
8    815 ILCS 420/2from Ch. 121 1/2, par. 1852
9    30 ILCS 105/5.490 rep.
10    230 ILCS 5/54 rep.